Buying a home is exciting! And we love helping clients find their dream home. But as home buying and selling experts, we know all of the unexpected costs that come with buying a home. At PC275, we like to be transparent so that your entire experience, even after you’ve moved in is positive. So, here is an inside look at all of the costs that most homebuyers don’t account for.
You’re excited because you just found the perfect home. The neighbourhood is great, the house is charming and the price is right.
When buying a home, the asking price is just the beginning. Even if you think it is the perfect home you may not be able to afford it. As a home buyer, you need to be educated and prepared for ALL of the additional (and often unexpected) home-buying costs that could leave you deep in the red.
- Expect Unexpected Fee’s
We recommend having an additional 20 percent in money left aside for unexpected costs and fees. These can include homeowners’ insurance, transfer costs, and closing costs. Fee’s like appraisal and lender fees are typically easy to plan for because they’re lumped into the home-buying process, but there’s a ton of other costs you can’t plan for and can vary greatly.
- Not Great Appliance’s
When you are touring a new home, you don’t have time to check out the washer/dryer, oven, fridge, and other appliances. Some owners may even take their appliances when they move out. In both cases, you are stuck with added on fees that you didn’t initially account for.
- Home Improvements
Like appliances, you can notice small improvements once you’re living in the home that you didn’t notice in the showing. These improvements can also add up and deplete your funds.
- Hiring an Inspector
We always recommend hiring a home inspector (which also costs money). Home inspectors look at every aspect in the house and identify what’s faulty, or what will need replacing/fixing. Home inspectors may find serious problems that may force you to walk away from the home—but they are still an additional cost. Additionally, if you choose to still buy the house, the issues are often not covered by your insurance, which again will cost you more money!
- Small Things That You Have to Live With
There are small things that we often don’t think about when we move into a home that we just can’t live without. TV service is one example. Many may be used to having cable TV. Some homes may not be wired for cable. Technicians often bust holes in the wall that you need to repair yourself, which is again, another hidden cost!
- Bills Can Rise
Additionally, moving into a home versus the condo you lived in during your early twenties often incurs very different utility bills. The difference in your bill payments in addition to everything else could be enough to sink you. So, plan for the increased cost of bills!
The bottom line is you want to plan ahead, it’s the only way to prepare for the unknown and unexpected. We seriously recommend budgeting before you even start looking for houses.
There’s really no limit to how prepared you can be!
For a complimentary buying or selling consultation contact PC275 Today!