Unexpected first-time home buyer expenses catch many people by surprise. In just a matter of days, these add-up quickly to help drain more out of bank accounts. After shelling out money for inspections, moving, down payments and closing costs, and more, these extra expenses often materialize. This is why it’s very important to know what to expect so you aren’t caught completely off guard.
Common First-Time Homebuyer Expenses
The expenses most homebuyers plan for are the down payment, home inspection, wind mitigation inspection, pest inspection, earnest money deposit, and move. But, there are several more minor ones that come along the way from the purchase offer acceptance to the closing table. And, if you aren’t prepared it’s likely these will put the squeeze on your wallet.
“If you’re considering becoming a homeowner, even years from now, recognize that there’s a lot more to purchasing a house than saving enough money for a down payment. Additional expenses come up throughout the home-buying process. Some of these are upfront, out-of-pocket costs that are non-refundable even if you end up not closing the deal. Others will hit your wallet after the home is in your possession. Experienced buyers probably are familiar with these charges, but first-time buyers can be caught off-guard.” —Kiplinger.com
But, if you know what’s in-store through the homebuying process and beyond moving day, you can effectively plan ahead. Which means avoiding unnecessary stress and anxiety. However, if you don’t take the time to understand what’s typically involved, you’re likely to experience some unpleasant surprises. So, that’s obviously a scenario you want to avoid, if at all possible.
Unexpected First-Time Home Buyer Expenses
When you buy a house, you’re ready to start a new chapter in your life. But, it’s not without its nuance. You should expect a few snags along the way. With that in-mind, let’s take a look at the top unexpected first-time home buyer expenses you need to know about:
- Exterior door locks. Now that it’s your home, you want it to be safe. One of the first things you need to do is change the locks because who knows how many duplicate keys are out there. What’s more, how many people possess those keys. Expect to pay between $100to $200 per set. (Skip the high-tech stuff because it’s much more costly to buy and to repair.)
- Window treatments. It’s common for home sellers to take just about everything with them when they vacate the property. That generally includes window treatments, which means another added expense for you.
- Kitchen appliances. Most purchase agreements stipulate the kitchen and other major appliances will remain in the home. But, this isn’t always the case. So, you might need to replace the kitchen appliances after you move into the house. (Here again, go with standard equipment and take pass on the high-tech, expensive models.)
- Lawn equipment. If you’re not coming from a single family home, you might already have lawn equipment (or, perhaps not). But, if you don’t have a lawnmower and more, you’ll need it to maintain the curb appeal.
- Safety equipment. Usually sellers don’t remove smoke alarms, carbon monoxide alarms, and fire extinguishers. However, these aren’t usually tested on a regular basis. So, have the local fire department take a look and replace what’s necessary. Additionally, have extra batteries ready-to-go to replace them every six months. (Test the alarms every six months, as well.)
If you’re going to sell your home in the near future and buy a new house, please don’t hesitate to phone me at 407-616-7286, I’ll be happy to speak with you.