Buying a new home is exciting! It’s also complicated. Whether you’re moving for a new job, making room for a growing family or upgrading from an apartment, you have a long list of factors to consider!
One aspect of buying a new home might leave you less than thrilled: hidden costs. Preparing for these unexpected expenses early on can make the home-buying process far less stressful.
With that in mind, here are some of the hidden costs associated with buying a home.
1. Property Taxes
Property taxes are highly important to the schools, libraries and other programs that make your community a great place to live. But an unexpectedly high property tax added onto your mortgage can wreak havoc on your budget and long-term financial goals.
These property tax rates vary based on location, so do some research before buying a home to make sure you know how much you can expect to pay.
2. Insurance Fees
If this is your first time buying a home, you might not be familiar with homeowners’ insurance. It’s an essential investment, nonetheless. In addition to being a legal requirement in many cases, homeowners’ insurance can save you a lot of money in the long run, even though it might not feel like it when you’re paying the monthly fee.
Depending on your new home’s location, you might want to get additional insurance for disasters like hurricanes, flooding and tornadoes. This might feel like one of the scarier aspects of buying a home, but insurance will give you peace of mind whether you need to use it or not.
3. Closing Costs
You might think that closing costs are only paid by sellers, but that’s not the case. While buyers shouldn’t expect to pay as much as sellers, you should be aware of costs such as application fees, appraisal fees, credit report fees and more.
4. Creature Comforts
If you’re moving from a rented apartment or a smaller house, it’s easy to underestimate the furniture and decor you’ll need to fill the space in your new home! These costs aren’t essential, and you might not be paying a lot of them upfront. After all, a bed is pretty important to have when you move in, but a giant beanbag chair for your office can probably wait.
If you’re used to renting, you might also be surprised by increased utility costs. You may have been paying for electric back at your old place, but were you paying for utilities like garbage pickup? It’s essential to factor these utilities into your budget before buying a new home.
5. Working With a Real Estate Agent
Working with an experienced agent can save you a lot of frustration, whether this is your first time buying a home or not. That said, not all agents are worth the cost. Do your homework and make sure you’re dealing with a reputable agency!
For example, some agents will charge a higher fee depending on how much you spend on your home. They won’t have any incentive to save you money. These little details can add up, so make sure to check them!
REALTORS® You Can Trust
At CENTURY 21 Core Partners, we’re not just your typical real estate brokers. We know the ins and outs of buying a new home. We’re here to help you get the lifestyle you want now while investing in your future!
Reach out today if you have more questions about hidden costs or anything else related to the process of buying or selling a home.