9 Hidden Costs of Buying a Home That Might Surprise You

Buying a home is one of the most important financial and emotional decisions you’ll ever make, and we want to ensure you have all the information you need as you move through the home-buying process. Let’s take a look at some lesser-known expenses to help you make the best decision for your situation.

Maintenance and Upkeep
As a homeowner, you’re responsible for regular maintenance and unexpected repairs. Mowing the lawn, fixing a leaky roof, or replacing a broken water heater — these all cost money and it can add up quickly. Be sure to budget for these expenses to avoid any financial surprises.

Monthly Costs of Home Ownership
In addition to your monthly mortgage payment, owning a home comes with additional monthly expenses. Remember to account for utilities such as electricity, water, and gas, as well as cable, internet, and association dues if you live in a community with a homeowners’ association.

Neighborhood Dynamics
Believe it or not, your neighbors can have a significant impact on your quality of life. Bad neighbors (think loud or inconsiderate) can take a toll on your emotional health and overall well-being. From noise complaints to property disagreements, the dynamics of your neighborhood can affect your day-to-day life more than you might expect. Be sure to take the time to get to know some of the people and chat with your real estate agent to understand the dynamics of the neighborhood.

Cost of Living
Cost of living can vary greatly from one town to another. The cost of groceries, gas, restaurants, clothing stores can be much higher in some areas. Before buying a home in your favorite town, take a look at the cost of living in the area to ensure it aligns with your budget and lifestyle.

Property Taxes
Property taxes are an easy expense to overlook and they can have a big impact on your bottom line. These taxes can vary depending on the location and the assessed value of your home. Consider the property tax rates in the area you want to live in and budget for them.

Insurance Costs
Everyone needs homeowners insurance, but it can be expensive, especially in areas prone to natural disasters like floods, earthquakes, or hurricanes. Additionally, you may need extra coverage for valuable items, which can drive up your insurance premiums. Check with some local insurance agencies to get a better understanding of how much home insurance will cost.

Homeowners Association Fees
If you’re moving into a neighborhood with a homeowners’ association (HOA), you’ll likely have to pay monthly or annual fees. These fees cover the cost of maintaining common areas and amenities and have the potential to add a significant amount to your expenses. Be sure to ask your realtor about any HOA dues before signing on the dotted line.

Moving Expenses
The cost of moving can be a big surprise for a lot of new home buyers. Hiring professional movers, renting a moving truck, and buying packing supplies can all contribute to the total expense of relocating.

Renovation and Furnishing Costs
After moving in, you’ll likely want to personalize your new home. Renovations, even minor ones like painting or replacing light fixtures, can add up quickly. Furnishing your new home can also be a significant expense, so do the math ahead of time and come up with a game plan on how and when to renovate and furnish your new home.

By thinking about these hidden costs before you purchase your new home, you’ll be better prepared for the financial investment that comes with homeownership. And remember, the more informed you are, the more confident you’ll feel in making one of the most significant decisions of your life.