Owning a home is a lot more attractive to many people these days in the Denver market. With lower mortgage rates and the ever increasing rent prices, many young people are looking at buying a house as the best option for their living needs and also as a great way to start investing in their future. While buying your first house is a wonderful thing many new homebuyers don’t factor in a lot of costs that go beyond that of the actual house price. These are what we call ‘hidden fees’ or things that are not necessarily thought about when looking to purchase a home. Below I have compiled a list of some of the costs I remind my clients about when they are looking to purchase a home:
Buyer costs – Remember, as the buyer there are a lot of extra costs you are coming to the closing table with such as the appraisal, inspections or even fees to such things as a homeowners association.
Moving costs – If you are going to be moving into a home that means you are moving out of somewhere else. Moving can be expensive from the actual movers to the supplies to pack everything up. I recommend shopping around moving companies or even seeing if it makes more sense to ask your friends and family to help you move (always offer free beer and pizza as a thank you for helping us move).
Utility bills – Take into consideration that your utility bills will probably be different when you move, especially if you make the jump to your own home. Also remember there will be fees to set everything up again like your Internet and cable.
Home repairs – Hopefully a lot of the home repairs will be made before the move in but always be prepared for things to happen in the first year of ownership. Your roof may start leaking, the heater might go out or even a tree might need to be removed from your lawn. There is a long list of possible repairs that you need to save money for and many financial experts recommend budgeting 1%-2% of your mortgage balance as a maintenance and repair fund.
Lawn care – Whether you take care of your own lawn or have someone else take care of it, the lawn can be an expense many people forget about. Maintaining your lawn is important and that takes work and tools or money to pay someone who will do the work and has the tools.
New stuff – Moving into a new house probably means you want to also bring some new things with you from furniture to carpet to paint and accessories. It can be easy to get caught up in the excitement of furnishing a place with all new things but make sure to have the budget for that before you go spending money you don’t really have.
Buying a new home is an exciting time but as your agent I want you to be prepared for whatever costs might come with it. Make sure to start saving for the purchase of your home as well as the extra costs that tend to present themselves throughout the buying process.