Are you aware of the hidden costs that often come with buying a home?
Everyone knows buying a home is not a cheap nor simple endeavor—it's an investment in your future, after all. But the cost of purchasing a new home goes beyond the transaction itself.
Here are five unexpected costs you should prepare for when looking to buy a home:
Cost of Home Renovations
Unless you are buying a custom-built home, there are probably some things you'll want to change in your future house. Make sure to write the big ones down, like changing the flooring or opening up rooms.
Create a list of projects you would like to do around your potential new home and prioritize them based on both cost & time for completion, then how important the change is to you. This will help you budget and plan accordingly, as well as figure out if the benefits of the renovations are worth the work.
The most common home update we see is flooring changes. If this is a renovation you'd like done in the home you want to buy, it's highly recommended to have it done before moving in, if possible. It is so much easier to rip out old flooring and replace it with a new flooring of your choice without having to move furniture around or work around people living there. Also, you'll be surprised at the amount of dust these projects create! On the flip side, many other renovation choices, such as lighting fixture updates, can easily be done after you move in.
Cost of Moving to a New Home
Buying a new house means deposits and installation fees for utilities like electricity, cable, water, and gas—all of which can easily be forgotten in the excitement of your new home. In some cases, these items can be avoided if your current provider services your new home too, but if not, you most likely have to pay:
- to break your current contract, and
- to start another contract with your new provider.
If you're buying a home in Texas, you can check electricity service provider areas here.
Also, boxes and tape will be your life for the next couple of weeks or even months after buying a home. These items cost more than you think—whether you hire someone to pack and move for you or choose to do it yourself. You can save money by seeing if anyone you know might have extra supplies. There are actually several social media groups organized around this exact need! Reusing someone else's moving boxes is not only good for the environment but also great on the wallet.
Cost of New Home Furniture
Whether you're buying a new home with more space or not, we're all guilty of wanting to purchase new furniture! After all, who wouldn't want a fresh, new look to go with their fresh, new home? While this is an extra cost most people are excited about, new furniture can cause a little bit of sticker shock... Price out these items in advance to see what additional cushion your budget might need and prioritize your list (we love our lists!) so you know which items to replace first.
Cost of Yard Maintenance
Many people love the idea of a big, spacious yard, especially if you're a first-time homebuyer or didn't have much of a green space before. But these lush outdoor spaces require maintenance and upkeep, and this cost will now fall on you!
From landscaping aspects (like flowers and mulch) to water usage to pest control, this is an additional expense that is often much higher than you would expect. Whether you hire someone or buy the equipment to do it yourself, think about the cost of maintenance before you say yes to the yard and buy a new home.
Cost of Home Maintenance
Try as you might, sometimes accidents happen or things break in your home. It's life—there's no way to avoid it. Plus, the way it often works out is that the problem isn't covered by your home warranty or, even more annoyingly, the problem happens as soon as your warranty is up! So, it is always recommended to have a "home maintenance" fund for unexpected costs, repairs, or replacements that might come up after buying a new home.
Some common home maintenance costs to prepare for are water leaks or plumbing issues, A/C replacements (especially if you're buying a home in Texas), foundation repairs (common in older homes), and roofing or other exterior repairs. These all can run a pretty penny, so preparing for them ahead of time can ensure you aren't scrambling later.
If you're looking to buy a home and want help through the process, we'd love to elevate your experience! Contact us today to get started.
Ronda's extensive business experience contributes a well-rounded dimension as the broker for Texas Living Company. Her passion for architectural design motivated her advancement from a career in marketing, business development and supply chain management in the oil and gas industry to residential real estate.