Little Known Real Estate Costs That Can Push You Over Budget
There are many different expenses involved when buying a home, and some of these costs can blindside new homeowners who are on a strict budget. The mortgage is not the only expense that you can expect to incur when you purchase a new piece of real estate. In fact, the average homeowner spends about $9000 more than the cost of their mortgage every year.
Homebuyers constantly face the challenge of determining all the costs that they can expect to incur. It is therefore important to be aware of some of these expenses in order to adequately prepare for them and avoid going over budget.
When buying a new home, it is critical to have it properly inspected so you can identify any flaws with the home in advance. A home inspection can cost several hundred dollars, but it can prevent you from incurring significantly more in repairs in the future. Be prepared to incur the cost of having the home inspected, as well as looking for a good inspector.
Many homebuyers get sucked into the excitement of their new home that they forget to budget for moving expenses. Moving is always a stressful and expensive exercise, especially when you’re not adequately prepared. Take some time to look into how much stuff you will need to transport, the cost of hiring movers, and the cost of packaging materials such as boxes and containers.
The total costs incurred at closing can extend beyond the official closing costs. In some cases, lenders may require you to pay up to a year of taxes upfront. Sellers may also request payment for any prorated taxes that they already paid for, in addition to prepaid dues for homeowners associations.
Closing costs such as the application fee and originator fees can further drive up how much you need to pay a closing. As a result, you should be prepared to cough up several thousand dollars during closing.
If you’re moving to a new home from an apartment or other smaller space, you will most likely need new furniture to suit your new home. You may need more couches, larger dressers or more tables to properly furnish your new house. You may also want newer or better-suited furniture to complement a new look that you’re going for. Either way, furniture costs can be expensive and should be properly budgeted for.
For more on this subject read our recent blog, “Real Estate Mistakes Millennials Often Make”
Thinking of buying or selling a home in the La Jolla area? As consistent top producers in real estate, Linda Daniels and The Daniels Group are your La Jolla housing specialists. Our team of local experts will ensure that you have a successful real estate transaction. Call us today at (858) 361-5561 or email us anytime by clicking here.