Purchasing a home is a serious financial commitment; however, many home buyers only think about the price they pay for the home and forget about a number of other costs that come along with the purchase of a new home. Don’t let these “forgotten costs” take you by surprise; and take the opportunity to prepare to take them on before it is too late.
Ask a Pro
Any time a potential buyer tours a home they are interested in, they likely create a list of upgrades, changes and fixes that they would like to make to the home right away. With that list in mind, bring in a professional to get their opinion on how much these issues may cost to resolve. The project that is thought to be a quick, affordable expense could turn out to be much costlier – in both time and money – than originally expected. After the price tags for the project are factored in, the “low” price tag on the home may not be so affordable after all.
Yes, that’s plural. It isn’t uncommon to have multiple inspections before moving into your new home. These inspections are not something to skimp on or completely skip, though. They can uncover very important issues about the house. By knowing what you’re getting into right away, you know which projects to address or save funds for. This way, you will not be surprised down the road if something major goes wrong. With the inspections, these issues will be on your radar, and you will be able to address them before they turn into serious problems.
Ask your realtor for a history of taxes, insurance and utility bills. If they can compile this information, it will be very helpful in the buying decision. Armed with this information, potential buyers are not blindsided by hefty bills after closing. High utility bills could also be a sign of a bigger problem such as faulty insulation, water leaks or outdated appliances. Location, age and type of home can greatly affect homeowners’ insurance. Taxes can take an affordable property and push it far out of your budget. Don’t let these continual costs surprise you.
You found the perfect home, scheduled the inspections and started the closing process, now the fun really begins: moving. This is a cost that is commonly forgotten about. Depending on the size of the home, distance of the move and the level of services desired, this could be a significant cost. If you choose to have a do-it-yourself move, it will take much more time and energy but save money. However, if a full moving crew is desired, the bill will be considerably higher, yet the move itself will be considerably less stressful and tiring. Don’t forget about the cost of taking your things with you.
If the new home is considerably larger than the home you are moving from, additional and updated furnishings will be a significant cost. You will not want to wait long after moving in to furnish the home. This is something you will want to tackle soon after moving in.
Don’t let these hidden costs take you by surprise when the time comes to buy a new home. Start saving for these costs in addition to saving for your new home, you will thank yourself later and this will make the move a breeze.