Unfortunately, first time homeowners are usually devastated by the unexpected costs that come along with buying your first home.
For your benefit, we have created this list of the six most common expenses for first time home buyers so you can prepare for them and enjoy the feeling of being a homeowner.
⦁ Closing Costs
The first cost you are certain to experience is what is known as a closing cost.
Closing costs are fees paid when a real estate transaction closes. Closing costs usually range from 2 to 5 percent, depending on the size of your loan. While they can seem like a disaster if unexpected, they aren’t too much to handle when properly planned for.
⦁ Property Taxes
The next necessary cost that catches new homeowners by surprise is the property tax, which is a local government tax that is based on the value of your entire property.
Property taxes have quite a wide range from state to state, so it is hard to give an accurate assessment of how much you can expect to pay. However, you can find out a tentative estimation by using the Smart Asset property tax calculator.
⦁ Homeowners Insurance
Another unexpected, yet necessary, homeowner cost is homeowners insurance.
While homeowners insurance isn’t required in the same manner car insurance is, it is highly recommended that you have homeowners insurance. Otherwise, you are at risk of losing your entire home in the event of a disaster.
The cost of homeowners insurance varies depending on various factors, including your location and risk of experiencing a damaging event, such as a hurricane or tornado.
⦁ Home Inspection
Although a much smaller expense, the home inspection is a necessary cost that catches many homeowners off guard.
On average, home inspections cost a little over $300. It is important to have a thorough home inspection conducted before moving into your new home in order to ensure all is well with the foundation and long-term stability of the overall infrastructure.
While it is a major cost that will delay you from moving in, it is a necessary cost that should be properly planned for.
⦁ Moving Expenses
Moving expenses will not only cost you monetarily, but they will also cost you valuable time.
Depending on the relocation distance and amount of furniture, appliances, etc. that need to be moved, the amount of time it takes to move can even draw you away from your work and cause you to lose money as a result.
As far as the monetary cost, you will need to plan for Uhaul rentals, gas expenses and any moving equipment that may be required, such as a dollie.
⦁ Maintenance Costs
I wish I were able to tell you that the unexpected costs stop after you officially move in.
Unfortunately, however, they continue in the form of maintenance cost. Since it is your very first home, you are going to want to keep it looking great – and rightfully so.
However, keeping your home and land in good condition comes at a cost. Be sure to budget monthly for landscaping, minor repairs and those moments when you simply want to paint the walls a different color.
EXIT Realty Bob Lamb & Associates is Murfreesboro’s most innovative real estate team.
EXIT Realty Bob Lamb & Associates
2630 Memorial Blvd, Murfreesboro, TN 37129