While shopping for a home to purchase you’ve likely done a lot of research. Part of this research usually includes learning about the costs associated with purchasing a home. The most frequently discussed costs are the downpayment and closing costs. For example, the appraisal and lender fees can actually be built into your loan – making them easy to handle. What about other costs? The ones you may not know about….
Hidden Costs of Home Ownership
If you’re transitioning from renting to owning, you may be unfamiliar with what to expect and how it may be different. Let’s go over some costs you may not have accounted for in your initial calculations:
Costs Discovered During An Inspection
We highly recommend hiring a professional Home Inspector before going into contract. A Home Inspector will check for bad electrical wiring, weak foundations, rotting wood, termite damage, and other potentially hidden problems. In the event that problems do arise, you’ll need to decide whether you want to move forward with the purchase. This is where your Realtor® can come in and possibly negotiate a new purchase price on your behalf and save you money on these costs.
Costs From Mistakes Sellers Make
What happens if there was a misunderstanding with the seller and they took the refrigerator with them when they moved out? Depending on the situation, you’ll need to replace that appliance which will be an unexpected expense.
Costs From Lifestyle Transition Shock
If you’re transitioning from renting to owning, you’re going to have to adjust to the change in utility costs. Previously, you likely were not responsible for the water bill or garbage pick up. Utilities in the home are typically higher than those a renter would handle. Your rental was likely already setup for cable…your new home may not be and this could have a cost associated with the setup.
Costs From Underestimating Renovations
When you fall in love with a home that needs some TLC, there will be costs associated with renovating. Unfortunately, many first-time home buyers try and estimate the costs on their own which can lead to major underestimates and uncomfortable surprise costs down the line. It is always a great idea to consult with your Realtor® for Professional Referral Partners who can provide you with FREE renovations estimates.
Planning Ahead
There is no such thing as being over-prepared for the purchase of your first, or even second home. As a team of creative real estate professionals here at Ian Alexander Realty Group we have prided ourselves on being able to save our clients thousands of dollars! This is all through properly educating them and putting our expertise to good use on their behalf.
Do you have questions about how to plan for the costs associated with purchasing a home?
Call us today at 347-707-3098.
