Hidden Costs When Buying or Owning a New Home to Be Aware of

Buying a home can turn out to be more expensive than you expect, especially if you aren’t aware of the many hidden fees involved in the process. These hidden costs can actually add up to around 10% of the total cost of your property. If you don’t budget for these expenses in advance, for the first few years you will have a hard time managing your other daily or monthly expenses.

You may have saved enough money for a down payment and figured out the amount of mortgage you need. At the same time, you should also be prepared to pay all the hidden costs that you will incur when buying a property.

Hidden costs of buying a house

Home Inspection Fee – You can avoid spending a lot of money on repairs and replacement costs by hiring professionals to do your home inspection. They will unearth all the underlying problems in your home that you would not have known about without a close inspection. That will help you decide if you are really getting a good deal or not.

Attorney Fees – These fees can vary based on the purchase price of your home. If you choose to hire the same legal representative as the seller, you could get good discounts on legal costs.

Stamp Duty – This can add up to 7% to the total cost of your home.

Home insurance: home coverage protects your property against unforeseen incidents such as floods, fires, etc. You will need to consult a good insurance agent to get the best policy.

Appraisal Fee: Some of the lenders require an appraisal of the house you are willing to buy.

Utility and maintenance costs: You must also budget monthly for electricity, cooling and heating, and other expenses. If you are buying a condo, you should also arrange the monthly maintenance fees.

Moving Costs: You can take time to pack and move all your belongings yourself, or hire movers and packers to do the job more efficiently. A moving company generally charges you based on the size of your home and the distance to cover between the old and new residence. Hiring professionals will be a reasonable and less tiring option.

Redecorating: Ideally, most new homes don’t need any work. However, some may need some minor construction or redecoration work. Doing it yourself may sound cost-effective, but if you’re not skilled, you’ll end up spending more than you expect.

Closing costs of the sale: Finally, you will need to have enough funds for closing costs, which add up to between 2% and 5% of the total price of your house.