New Home Costs

So What's the Cost?

There is nothing more stressful than having large costs that you were not expecting.  Buying a home is one of the most expensive and significant purchases you can make. But the home price is only the start of your costs. When budgeting for a home purchase, there are a number of other costs to consider beyond the home price.

1. Closing costs: Closing costs are the fees associated with processing a home sale. Closing costs usually range from 2-5% of the home’s purchase price.  Make sure you know what the closing costs will be for the price range you are looking at – this is money you will have to have upfront!

2. Home inspection: A home inspection is a thorough inspection of a home’s condition and  typically cost anywhere from $200-$800.  This is a cost that you will not get back if you decide not to move forward with a purchase.

3. Home repairs/renovations: Depending on the condition of the home, you may need to make repairs or renovations after purchase. Starting work on a home almost always ends up finding more issues, which means it will cost more than expected.  

4. Moving costs: When considering moving costs it is more than just packers, trucks, and boxes.  You need to think about the cost of furnishing a new, potentially larger home.  If your current possessions will fit the spaces of the new home.  All this can add up and should be considered.

6. New Bills:  It is very important to know how your budget will be affected.  Is there a difference in cost of taxes, HOA, cable, electric for a different size home or different neighborhood.  Making sure you think about these costs when planning your budget.

These will help you make sure you are comfortable and ready to purchase a new home!

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