The “Other” Costs of Buying a Home

When you purchase a home, it marks a significant time in your life. The endless saving and tireless work that you put into your house fund has finally paid off. Now, this may still be far out of reach for you, but it’s important that you strategize and allocate your capital correctly so you don’t walk into a financial whirlwind. Below are some costs that you should consider prior to purchasing a home.

Closing Costs

When you purchase a home, you’re going to have to worry more about paying for the house itself. Other fees include the house’s appraisal, inspection, credit check, and more. Closing costs can amount to anywhere from 3% to 8% of the home’s actual price.

Utilities

Utilities may not be high on your list, but it’s definitely something that you should keep an eye out for. Water, gas, and heat can add up quite quickly without you even being fully aware of it. A cost-efficient strategy that helps homeowners keep their utility bills down is by replacing windows and doors with a more insulated replacement to prevent warmth or coolness from escaping.

Home Maintenance

Damages and accident happen when you least expect it. Setting aside an emergency fund is crucial, especially when you own a home. Roofs need to be maintained, appliances require repairs, and air conditioning systems can sometime be faulty. All of these costs can add up to a hefty amount. Additionally, you’ll also have to worry about the occasional ant or termite infestation which requires monthly or quarterly visits from your local exterminator.

Bio: Kuba Jewgieniew, CEO of Realty ONE Group, is a real-estate brokerage that has been listed as one of the fastest-growing companies by INC. 500 for six consecutive years.