13 Hidden Costs to Buying a Home

A common misconception of buying a home is that all you need is a down payment. This is not the case. We want to make sure you are completely prepared with all of the possible costs you might run into during the home buying process. Being more financially prepared to buy a home will prevent stress and issues during and after you buy a home. So what are the hidden costs that you need to be aware of?

Here are 13 Hidden Costs to Buying a Home…

1. Downpayment – typically 3.5% and up.

2. Cost of hiring an appraiser to make sure that the house you’re considering buying is priced appropriately.

 

3. Cost of hiring a home inspector to check for any serious problems with the home (usually structural problems are inspected).

 

4. Local and State taxes on the purchase; property taxes are, on average, 1.38% of the value of the home.

 

5. Closing Costs are sometimes paid by the seller if negotiated into the contract, but you need to be prepared to pay them if they don’t.

 

6. Homeowners Association fees or Condo fees, depending on where you are moving.

 

7. Moving costs, including transportation of furniture, cars, and other belongings. The cost of moving will vary based on what you’re moving and the distance you’re moving.

 

8. Costs of replacing faulty or out-of-date appliances or fixtures in your new home.

 

9. Cost of installation of cable, internet, and/or phone services in the new home.

 

10. Regular maintenance costs, such as repainting, replacing roof shingles, replacing furnace and air filters, and more. Realtor.com advises budgeting at least 1% of the home’s sticker price to pay for home maintenance costs.

 

11. Costs for renovations/remodeling/repairing. Depending on the age and condition of the home you buy, you may need to set aside money to cover the costs of repairing, renovating, and/or remodeling parts of your home.

 

12. Homeowners insurance covers both the property and its contents. You may need to pay more for insurance if you live in an area that is prone to floods, tornados, earthquakes, or other natural disasters not covered in standard insurance packages.

 

13. Private Mortgage Insurance (PMI) if your down payment was less than 20% of the purchase price of the home.

 

For more information on the costs to buying a home in Central Ohio, Contact an experienced real estate agent at Keller Williams Capital Partners!

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