First-Time Homebuyer? Plan for These Hidden Costs. | Smith Mountain Lake Real Estate | Vicki Millehan

First-Time Homebuyer? Plan for These Hidden Costs.

Preparing to move in to your first home is exhilarating. It can also be expensive, and with just cause. Buying a home is the biggest investment you’ll likely make, but it’s also the most rewarding. That said, new home expenses can blindside you if you’re not prepared. Below is a list of common unforeseen expenses for new homeowners:

Appliances

Hopefully you’re aware of which appliances are staying with the home and which are heading out with the previous homeowners. You also have no real idea of how much wear and tear the appliances have seen, so be prepared to fork out some savings to replace them in the future.

Utility Bills

Unlike renting, all of your utility bills are now your responsibility. Monthly fees for water, electricity, and trash pickup are now going to be delivered to your mailbox. Also, if your home isn’t set up for cable, internet, or satellite, you’re going to have to invest in those areas as well.

Taxes and Insurance

Surprise! You’re a property owner now! Which means that you are now responsible for paying local property taxes and keeping your home insured. Be mindful of home improvements that may cause your insurance company to up your premium or drop you. Examples include adding a trampoline, pool, or wood stove.

Collectively, these expenses are far less costly than purchasing a home. However, if you plan for them in the early stages of buying a home, you’ll be prepared.