Unexpected & Hidden Costs When Buying Your First Home
Buying a home for the first time is exciting but can also be a scary experience. You are excited to redecorate, paint, get new furniture, and settle in!
But unfortunately, there are often a lot of hidden costs when buying a home that you may not have budgeted for when you determined your mortgage terms and homeownership costs. Zillow estimates that homeowners, on average, end up spending around $9,000 the first year on hidden costs!
There are some unavoidable hidden costs that you may not have factored in when you purchased your home and signed on for a mortgage.
These costs come in the form of closing costs, hiring a moving company, home inspection, hiring a painter, lender fees, property taxes, homeowner’s insurance, setting up internet, cable, and utilities which will be more expensive than your renter’s utilities. These costs are unavoidable and may be a one-time cost or reoccur monthly/yearly. Zillow estimates that you should be prepared to spend an average of $6,000 a year on these unavoidable costs.
When you first buy your home, you dream up all of the project and upgrades you want to do once you move in. Unfortunately, these costs add up and will almost always cost more then what you budgeted. These projects could be as simple as repainting the master or as technical as blowing out a wall in your living room to open it up to the kitchen.
Home DIY TV shows make us think that these projects are simple, inexpensive, fast, and easy to do yourself, but that is not always the case.
We are not all Chip Gaines or have the skills and knowledge to redo the plumbing in your bathroom to expand the shower. For these projects, you would want to hire help and labor rates are the quickest rising cost in your remodeling budget.
Another cost that most new homeowners do not think about it the cost of maintenance. This comes in the form of having to buy a lawnmower or a snow blower, getting the carpets cleaned, having someone clean out your gutters, HVAC maintenance, pest removal, house cleaning, pressure washing, and window cleaning.
For most of these, you can learn how to do them yourselves, which will only cost you money in materials and a few hours, or reading or watching videos to learn the best techniques. If the projects get to intensive it is better to higher a professional in the field.
Buying a home, for the first time is overwhelming, especially when you take a look at the long list of expenses and costs that add up before you can even move into your new home! But don’t be overwhelmed. By planning a budget for your home, and making a list of all costs that are needed you can make sure that you have smooth sailing every step of the way in your first year and every year afterward.
Here are the main costs to remember again: home inspection, closing costs, property taxes, lending fees, maintenance cost, and upgrades.
Before you close on a deal, grab some advice from your Nestlewood Realty Agent! We are here not only to help you find your dream home, but also to make sure you’re fully prepared for the costs you will incur.
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