The expenses don’t stop once you’ve put an offer on a house and it’s been accepted. That’s just the beginning of what seems like an endless fountain of added costs. To make sure you’re not blindsided by the hidden costs that come with buying a house, here’s everything you need to know.
The Home Inspection
Paying to have a home inspection done is necessary after putting a serious offer on a home and having it approved. This will be your first big expense in the house buying process and it will determine whether or not you’ll keep the home or back out due to major unforeseen problems. Depending on the age and condition of the home, you may need to hire more than one type of inspector. As there are general inspectors, wood and insect specialists and sewer inspectors, scheduling one (or more if necessary) will run you hundreds of dollars per inspection. While it seems like a lot, it’ll prevent you from moving into a home that needs thousands of dollars of work to be safe and liveable.
Once your offer has been accepted, numbers are crunched to determine what your closing costs will be. You can expect closing costs to be two to five percent of the house’s purchase cost. Closing costs include lender fees, the home’s appraisal, title fees, escrow fees and interest. There are calculates to give you an idea of what the costs may be in relation to your budget, so you can better prepare yourself for the extra expense.
Higher Utility Bills
If you’re moving from a small apartment into a decently sized home, then expect for your utility bills to be higher than they once were. It’s common for gas, electricity and water to increase once you move into a house or space that’s bigger than your previous one. Compared to renters, it’s estimated that homeowners pay several thousand dollars more in utilities every year. To determine how much you could be spending each year, see if your realtor can ask the seller to see a few of their past utility bills. While this may be a long shot, it’ll be the most accurate estimate as to what you could potentially be paying.
Ongoing Taxes and Insurance
Property taxes and home insurance always add up at the end of the day, and many monthly mortgage calculators don’t include them when determining your expected payments. Taxes and insurance vary depending on where you live, but it could easily add $1,000 or more to your monthly payments. It’s important to budget for this expense, as not paying it will land you in a heap of trouble.
Maintenance and Repair Fund
Repairs have to be paid for yourself when you own a home, as opposed to having a landlord fix the problem for free. While this is generally common knowledge, the amount of money that these repairs can cost is not. It’s easy to underestimate how much a leaky faucet or jammed disposal will cost to fix, especially if it all happens at once. There’s no single answer as to how much yearly maintenance will cost homeowners, as every house is different. Several sources are available to help you calculate these funds, but try to save about three to four percent of the homes purchase price to keep as your yearly repair fund.
With Cherry Yeung as your Burnaby real estate agent, you’re guaranteed to find the perfect home. Experienced and knowledgeable about the Vancouver real estate market, Yeung knows all the ins and outs of buying and selling in Vancouver. Whether it’s a house or condo, Yeung has an excellent track record and is dedicated to helping clients find their dream property. Contact Cherry Yeung, Burnaby realtor today to get started!