The Hidden Costs of Buying A Home That Many Buyers Miss

Buying a home is an exciting step in life, but sometimes, buyers get so excited they miss certain fees that come with closing on a home. Many buyers only focus on the down payment and monthly mortgage, but there are several hidden costs that can catch you off guard when going through the process of buying. Understanding these upfront costs will help with a smoother buying process and less financial stress down the road.

Closing Costs

The amount that buyers must bring to the table when closing on a home in addition to the down payment is what surprises many the most. The average range of closing expenses are between 2%-5% of the buying price of the home. Lender fees, title services, appraisal fees, and prepayments for things like homeowners insurance and property taxes are some of these expenses. This could cost anywhere between $5,000 and $12,500 on a $250,000 home, for example. So, it's important to be aware and budget for these costs before closing on a home.

Home Inspection and Appraisal Fee

Buyers typically have to cover the cost of an appraisal and a home inspection before completing a purchase. While the appraisal is needed by the lender to verify the home’s value, the home inspection assists in identifying possible problems with the property. These costs are typically paid upfront and are non-refundable even if the deal falls through. While they might seem like much when compared to other prices, they can still add several hundred dollars to your upfront costs.

Repairs and Immediate Fixes

Even supposedly move-in ready homes frequently need some update or repair. Many buyers find themselves spending money on things such as replacing old appliances, correcting minor issues, or making cosmetic improvements such as painting or updating the flooring. Specifically in older homes, these expenses can add up quickly. It’s a good idea to set aside a portion of your budget for these initial expenses and continuing maintenance in your new home.

Moving and Setup Costs

The cost of moving is also an overlooked expense. Hiring professional movers or handling the moving yourself can still run up a pretty penny. With truck rentals, moving materials, and transportation, the cost of moving can sneak up on you. In addition to this, many buyers end up purchasing new furniture, appliances, or other necessities for their new home. Depending on the location and size of the home, moving costs can easily reach upwards of $1,000.

Final Thoughts

The key to a successful homebuying experience is planning for more than just the purchase price of a home. Understanding the hidden costs while purchasing a home will provide a smoother buying process and as stress free as possible. Contact an agent here with The SELLING Team at Keller Williams today to get you started on finding your forever home! 


Written by Jada Mohon
The Selling Team with Keller Williams Realty