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The Hidden Costs to Buying a Home

Buying a house is a lot more expensive than what you see on the listing. There are so many other costs to consider, but are often forgotten under the huge listing price staring you in the face. But these hidden fees are not something you should neglect. When budgeting for your home, you also need to budget for the following additional expenses that you might not have considered.

Inspection fee

Getting your home inspected is a given. You hire an inspector to come in, evaluate the home and tell you what major issues you would be facing with the home. I’m sure you could try to do the job yourself, but there might be things that you miss, or things you think are an issue, but aren’t really. A home inspector is able to determine issues from the roof down to the boiler room.

Insurance fees

When you go to buy your first home and this thing about home insurance comes up, take notes. Definitely do your research when selecting the right coverage, but whatever you do, do not turn it down. Home insurance will keep you covered if something bad were to happen to your home. Freak accidents can happen and you don’t want to be the one stuck without insurance if it does come knocking.

Movers fees

Just take a moment and think about how you will be moving your belongings from point A to point B. Yup, that’s right. Unless everything you own can fit in the trunk of your car, or your friend’s pickup, you’ll probably need to hire some movers. And then you’ll need to think about how many items you have, how many trips it’ll take, what valuable items need to be specially taken and what big items will require special moving.

Moving insurance

Most moving companies have packages that include moving insurance. Definitely look into those companies that provide them to get a good deal. If the company you select doesn’t include insurance, you can get it separately. You don’t want someone to have an accident moving your belongings without insurance. That could leave you in a bit of a bind.

Packing supplies

Some moving companies include a number of different packing services. But packing a home is quite personal, so you probably want to do most of it on your own. In which case you’ll need some packing supplies, such as boxes, bubble wrap, tape, etc.

Legal fees

The actual transfer of home ownership from seller to buyer needs to be recorded on official legal documents. It often requires the services of a notary public or lawyer. You will need to consider the legal fees for having the documents prepared and for other miscellaneous charges that may apply.

Mortgage fees

Most people have to take out a mortgage from the bank in order to pay for their house. This is probably one of the more predictable costs associated with buying a house.

Property tax

Don’t forget the property taxes you’ll have to continue paying after purchasing your home. The rate you pay is determined by the assessed value of your property. 

Renovations

Imagine that you’ve bought your home, and then you realize that there are a few more little alterations than you imagined. Or maybe you knew about the changes you wanted to make before hand. In either case, to make the home truly yours, you should budget for renovations. Make a list of things that you can do yourself, and what you need to hire someone to do for you, and budget accordingly.

Utilities

I’m sure you want hot water, gas and electricity in your homes too. Unless you want to try living the old “caveman” lifestyle. If that’s the case, we respect your tenacity. But for the more modern people out there, you might want to do a little bit of research on the average utilities bill for the type of home you’re thinking of purchasing.

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