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The 7 Hidden Costs of Buying a Home

Kevin Johnson Buyer Advice Leave a Comment

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Letting go of your bachelor/bachelorette pad and moving into your first home is a major step. But buying a home is more than getting a mortgage and paying 20% down payment. It is best to do your homework on the costs well in advance so there are no unwanted surprises at the last minute! Here are some common hidden costs that come with buying a home – take a look:
HOME INSPECTION
You may think of this as an added burden, but getting a home inspection done before you close the deal can actually save you from a lot of hassle and maintenance later. Your mortgage lender may also ask for a home appraisal done by a professional.
INSURANCE
Before the property is transferred in your name, there are a few unavoidable expenses that require payment – including the appraisal fee, title insurance, attorney fees etc. In total, all of these closing costs may account for somewhere between 2-2.5% of your total property value.
CLOSING COSTS AND FEES
Getting home insurance is an essential step, and the total costs may vary depending on the overall value, condition and location of your property.
TAXES
Property tax and land tax depend upon the total valuation of your home and are subject to change depending upon the county and area you are living in.
MAINTENANCE AND RENOVATION
No matter how good the condition of your newly bought property is, be prepared for maintenance and renovation needs. Whether it is new furniture, the replacement of pipes or other matters in the house or even a fresh coat of paint – the total of all the maintenance overhead may sometimes account for more than what you have anticipated.
MOVING COSTS
Another hidden cost that is usually overlooked is that of moving, especially if you are moving from another city or state. Keep in mind that moving companies will charge you according to how much furniture you have, so either get rid of old stuff or be ready to pay a higher amount to the movers.
UTILITIES
The costs of utility bills for power and water supply in Orlando may vary depending upon the area you live in or your consumption.
Always remember that the quoted price for a house may not always be the final amount you’ll pay. Ask the seller or agent for a general idea of other hidden costs so you can plan your budget accordingly. Happy house hunting!

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