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Buying a new home can be very expensive. We all know about things like a down payment, closing costs, realtor fees, and your mortgage. And while those costs all add up, there are still other costs associated with buying a home that are often forgotten or overlooked, especially for first-time home buyers. So to help ensure that you don’t find yourself in over your head as all of these financial responsibilities start piling up, here are three additional costs to consider when you’re buying a new home.
Taxes For Your New Property
Now that you’ve got a new piece of property to your name, you’ll also have to start paying the taxes for that piece of property. According to NerdWallet.com, all the information about property taxes will vary widely based on exactly where you live. That being said, most people are required to pay their property taxes either once a year or every six months. Additionally, property taxes aren’t something that’s likely to stay consistent the entire time you’re living in your home. Things like the housing market, the value of your particular home, and your local tax laws can change exactly how much you’re paying in property taxes from year to year.
Homeowners Insurance Coverage
While you might like to hope that nothing would ever go wrong with your home to the extent that you’d need to make a claim with your homeowners insurance, it’s much safer to have this coverage than to not have it. And if you’re not buying your home in cash, your mortgage lender will require to have homeowners insurance as part of your contract. Although the cost for homeowners insurance will vary, AJ Smith, a contributor to Forbes.com, shares that the average homeowner spends about $1,200 a year on their insurance policy. But before you settle with one company, make sure you do your due diligence and compare using Pretected to ensure you’re getting the best deal.
The Cost To Physically Move
In addition to the above mentioned costs and the other costs or fees that are added together when buying a home, you also need to consider how much it’s going to cost you to physically move your family and your belongings from one home to another. If you’re moving just a short way and you’re able to move your belongings on your own, your costs will likely be relatively low. But if you’re moving far away and are needing the help of professional movers, Beth Braverman, a contributor to CNN Money, recommends that you budget at least a few thousand dollars to cover these costs as well.
If you’re going to be buying a new home soon, consider using the information mentioned above to help you plan for all potential costs associated with this purchase and life event.