Buyers should watch out for these costs when purchasing a home.
It’s not cheap to buy a home these days. Even still, most buyers only look at the sticker price and mortgage payment when determining their budget. There are a lot of additional costs when it comes to buying a home. These four unexpected costs could pop up and put a strain on your savings if you’re not prepared:
1. The inspection. Once you’ve made an offer, you usually need to pay up to $500 for a general home inspection. If the inspector finds any major problems, you may have to find another specialist to come in and offer their professional opinion.
“Expect to pay at least a few thousand dollars for professional movers.”
2. Bringing cash to the table. Many buyers are surprised about the extra cash beyond the closing costs that they need at the closing table. Many lenders require six months or a year’s worth of taxes and insurance upfront. If the seller prepaid any taxes or homeowners association dues, you’ll have to pay the prorated amount for the rest of the year or quarter.
3. The move. Once you’ve officially closed, you’ll need to pay for the move. This can vary widely depending on where you’re moving and how much stuff you need to haul. Expect to pay at least a few thousand dollars if you hire professional movers.
4. The immediate costs. There are some costs that you’ll have to incur right away after closing. For example, you may need to handle utility deposits, set up fees, or hire a locksmith to change the locks. As a homeowner, be on the lookout for both routine and unplanned maintenance costs. You should expect something to break within the first year, it happens. Set up an emergency savings account with at least six months of expenses to cover unexpected costs.
If you have any questions for me about buying a home or real estate in general, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.
