Photo Courtesy: TierraMallorca / Pixabay
It’s simple to calculate the costs of buying a new house. A quick search online will tell you you’ll need a down payment and enough funding to pay closing costs, including appraisal, lender fees, and any inspections you must get before closing.
What’s more difficult is to calculate the hidden expenses that accompany every new home purchase. These expenditures creep up after the fact; the ones you don’t anticipate yet can cost you thousands of dollars.
While saving money for your down payment and closing costs, you might want to build up your savings to where you can cover these expenses.
Moving costs
Moving costs money whether you do the work yourself or hire a professional to do it for you.
You’ll need boxes, packing materials, a truck, gas, professional help for large, bulky items … the list continues to grow the closer you get to moving day. The average cost to move within your local community can quickly surpass $2,000. If you’re moving a long distance, it can escalate well into the thousands.
Many factors play into how high your moving costs will grow. You can save money by picking up used boxes from a friend or selling items beforehand, so you have less to move. Nonetheless, in the end, there will be expenses you have little control over.
You may budget for a moving company to help you with the move. However, did you add additional fees depending on the time of year? Moving companies often assess additional fees when moving services are in high demand. They may also tack on additional charges depending on location.
As soon as you decide to move, get a few quotes so you won’t be caught off guard by how much relocating will cost you. It can help you solidify more of your moving plans to create a more seamless move.
Decorating costs
As a new homeowner, you’ll have fun decorating and personalizing your new home according to your specifications. Whether new or new to you, you’ll likely find some of your current furnishings no longer fit within your new decor plans. You’ll also start creating a list of items you need as you settle into your new surroundings.
As you move in, try to use things you already have to complete your new home. Move items around – what once worked as a dresser in a bedroom might be a perfect addition to a media room. With a bit of ingenuity and a gallon of paint, you’ll be surprised at how handy you can become at repurposing.
You can also use sites like eBay and Craigslist to sell off things you can no longer use and look for new pieces that will make perfect additions. Check out the consignment stores in your areas for high-quality merchandise at low prices.
If you like specific pieces used by the previous owner, you can always ask if they’re willing to part with them. They’re also moving to a new location, so they might find it beneficial to part with items that might not fit in their new home.
Home maintenance and repairs
You move in, and the dishwasher breaks. You drop a box, and it dents the hardwood floor. You carry in a heavy piece of furniture and damage a wall.
You’ll be surprised at how quickly you start to notice the little things that need fixing soon after you move in. Even small maintenance projects can break the bank if you aren’t prepared.
A good rule of thumb is to expect to spend 1 to 4 percent of the home’s value each year on maintenance items. Having this on hand as you move in will make those unexpected surprises a bit more manageable. You can always turn them into DIY projects and get the supplies at your local hardware store to save money where you can.
Utility costs
Depending on where you live, you’ll have to connect to the local utilities such as electric, gas, water, sewer, cable, internet, and telephone. You’ll have to plan for the monthly expenses and cover hookup fees to get the services turned on.
Many local utility providers may also require a deposit for the use of their equipment. Some will allow you to purchase equipment for an additional fee. These costs are usually due at the time of hookup, so you’ll have to have the money on hand for the connection.
Are you ready to move?
Moving can be a lot of fun. It can also be one of the most expensive processes you’ll face. You might be prepared for the down payment and closing costs, but don’t be caught off-guard by forgetting all the other expenses you’ll face as you settle into your new surroundings.