Hidden Expenses in Buying a Home
Hidden Expenses in Buying a Home
Some might say that buying a home is one of the biggest purchases of their lifetime. Not only does a home’s price need to be considered, but the total cost of ownership extends far beyond the purchase price. After closing on a home, there are several expenses that need to be accounted for to ensure that the budget is sufficient.
Whether it’s done with a moving company or a few friends, this expense can range from a few hundred dollars to several thousand. Once you’ve moved in, you probably expect the costs to stop, right? Many are surprised when they purchase their first home to find out that the expenses only keep coming.
Splurging To Make It Your Own
Oftentimes homeowners are in love with a specific floor plan or special features their home in the Minneapolis area offers, but they aren’t as crazy about the paint colors or the fixtures. This leads individuals to tackle home improvement projects right away, and it only adds to the overall cost of the home purchase. However, this doesn’t have to drain your bank account, as many do-it-yourself options can save quite a bit of money.
Moving into a home that has been decorated in a decor that is totally different than your preferred style doesn’t have to be a deal-breaker. Gathering friends for a painting party can easily complete this big task in a day or two, and will only cost a few hundred dollars. Bathroom and kitchen fixtures can be as simple or elegant as one likes, and redoing a room can range from several hundred to several thousand dollars depending on the quality of the items.
New furniture is also a cost to consider, especially for those people who are moving from a smaller apartment into a larger home. Garage sales, thrift stores, or retail sales can all help with this expense, and furnishing a Minnesota home in style doesn’t have to take up a huge chunk of savings.
Preparing For Unexpected Expenses
Similar to the idea of having to maintain a vehicle and dealing with surprise repairs, owning a home can offer the same experience. While some extra costs might be predictable, it’s in homeowner’s best interests to have an emergency fund available should something come up unexpectedly.
Moving from a small apartment into a multi-bedroom home will naturally bring along increased utility costs, so this should be factored into one’s budget when considering the overall price of a new home, be it in Carver, Minnesota or elsewhere. Things like landscaping expenses or HOA fees are also fairly regular to predict and should have their own place in the monthly cost of maintaining a home.
However, surprises can happen and homeowners should realize that repairs are a natural part of owning a home. For example, tree roots can often invade sewer lines and are issues that need to be dealt with immediately. It’s nearly impossible to predict this type of problem, and it can cost several thousand dollars to remedy.
Other larger repairs like a new roof or heating and air condition system can take people by surprise too. These expenses are huge and can run over $15,000.
Plan And Prepare
Owning a home doesn’t mean one has to have a huge savings account to be ready for anything that comes up, but it does require a little extra forethought. When calculating how much of a mortgage you can afford, make sure to add at least a few hundred dollars to that number to account for small upgrades and building up savings for larger repairs. In the end, purchasing a home or condo in Minnesota is a big decision and can be costly, but the rewards of ownership are very worth it!