12 Hidden Costs of Homeownership

Here at CFHomes, we are excited to support homeownership; yet we want to make sure all of our homebuyers know about all the costs of buying a home, so that buying a home is a great and prosperous experience for them.  I wanted to share an interesting article in US News and World Report about the 12 Hidden Costs of Homeownership.  They are:

1. Home Inspection: A home inspection helps to ensure the home is fit and habitable.  In addition, this can help the buyer determine if the home is worth buying, and potential flaws can possibly be used as leverage when negotiating the price.

2. Pest Inspection: While this may not be required, some buyers choose to pay for a pest inspection as a means to ensure your home is not riddled with termites or other insects.

3. Appraisal Fees: The home must be valued by a professional appraiser, to make sure that the price you are buying the home for is close to the actual market value of the home.


4. Closing Costs: Title companies charge fees in order to prepare, process and record your closing documents.


5. Moving Expenses: Note that buying a home includes the costs of moving!  Try to limit costs by asking family or friends to help you; or if you are relocating for a new job, see if your new employer will chip in.


6. Furniture


7. Property Taxes and Homeowners Insurance: Your monthly mortgage will include two specific costs - property taxes, charged by the local jurisdiction, and homeowner's insurance, which most lenders require.


8. Supplemental Insurance: There are supplemental types of insurance available for those interested in further protection. For example, purchasers buying in areas with high risk for flooding might consider flood insurance.


9. Condo Fees (if purchasing a condo): If you choose to purchase a condominium (in other words, a unit that is part of a larger complex of units), then you are likely to be charged condo fees to cover the expense of maintaining common areas, such as the lawn outside or the front desk.  Quick Tip: Join your condo association, so that you can have a voice when decisions are made regarding raising or lowering condo fees.


10. Utilities: As you put together your budget, don't forget to factor in your utility bills. If you are moving to a new city, find out what the typical utility costs are in that area with some internet research.  Costs can vary.


11. Ongoing maintenance: Now that you are no longer renting, you'll be responsible for all the costs and burdens of owning a home, including maintaining the lawn and cleaning out the gutter. Even to accomplish these tasks may require purchasing equipment you had not anticipated, such as snow shovels or leafblowers.


12. Repairs:  Now that you're not renting, all the sudden emergencies that pop up will have to be covered by you.  It's always smart to put aside some money in case your home needs some unexpected repairs.

For buyers who purchase with CFHomes, we will be there every step of the way to answer questions and provide clear and detailed support.  Curious to read the full article? Click here.

- Jyothi Ramakrishnan