6 Hidden Costs to Consider When Buying a Home
You’ve saved a down payment, chosen an experienced local Realtor, set your budget, and you know how much you can afford to pay for a home. But your mortgage is not the only cost you need to consider when buying a home. There are many other costs. Here are six expenses you might not think about but should plan for:
- Transportation costs: In the greater Seattle area, transportation costs can be quite expensive, especially if you have a long commute, use the toll lanes or take the ferry to and from work each day. Mass transit is also an option, but it isn’t free. Regardless of your method of transportation, you’ll want to budget for transportation expenses, including parking, car insurance, fuel and car maintenance if you’ll be driving yourself to and from work.
- Taxes: There are many kinds of taxes (e.g., property taxes, income taxes, personal property taxes, etc.), and they will vary by state and local jurisdiction. Before moving to a brand new area, especially if you are moving out of state, make sure you know what all of the taxes are that you will be responsible for paying.
- Utilities: The types of utilities you’ll pay will depend on where you’re located and the types of services you need (e.g., gas, electric, water, sewer, stormwater, etc.) In addition to the monthly expenses, some utilities will require a deposit, especially if you are moving from outside the area.
- HOA fees: If the home you are buying or building belongs to an HOA, there will be HOA dues. Find out what these are in advance and under what circumstances the fees can be raised.
- Moving: Are you hiring a moving company to help you get from home A to home B? Are you moving yourself? Consider the costs of a moving company or truck rental, packing materials, gas, mileage, etc.
- Cleaning: If you are moving from a rental apartment or home, you may have cleaning or repair fees to cover.
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