If you’re a first-time buyer then it’s easier for your excitement to get carried away. Unfortunately, this can result in standard tests and observations not being conducted as you are simply eager to get into your new home. To an extent, the same is true if you’re purchasing your second or even third home.
Of course, missing critical details means that you may move in, and find an array of hidden costs. It can be enough to seriously affect your ability to live in the home and destroy your finances! That’s why you should always be aware of the hidden costs before you buy.
Closing Costs
The asking price is negotiable. However, once you’ve agreed on a price there are several fees that you can’t escape. These are known as the closing costs. Your estate agent will want a commission for the job they’ve done selling a house to you, there are legal fees, surveys, and other potential costs that can add thousands to your price. You need to be aware of them and the fact that it’s generally cheaper to buy through a reputable auctioneer.
Emergency Repairs
When you buy a house you should have a survey done as this will help to highlight any issues with your home? A good survey will cover construction issues, electrical problems, etc. Without this, you may not realize how many issues have to be dealt with. Dealing with a plumbing or electrical emergency a week after moving in can be costly!
Homeowner Association Fees
If you’re purchasing a home in a community that has a homeowners association you’ll be expected to pay into the association. This is an organization that will take care of the area, including shared facilities such as swimming pools or a clubhouse. These fees can be significant, especially if you’re buying in an expensive area or have a large property.
Insurance
Purchasing a house means buying insurance. This is to cover anything happening to your personal items in the house or to the house itself. It’s obligatory if you have a mortgage and recommended if you don’t.
Should you have an issue you’ll be grateful for the insurance. If not, it’s still an expense you have to payout.
Maintenance
Emergency costs cover burst water pipes, trees falling in a storm, and similar, unexpected issues. But, owning a house also means you have to look after all the maintenance. That’s trimming the hedges and trees, painting the house, repairing the roof, etc. There is an almost never-ending list of tasks to be done. Doing will cost you a significant sum, especially if you pay tradespeople to do them all for you.
Entertainment
This is a hidden cost that you don’t have to adhere to but most people believe is necessary. In order to build rapport with your neighbors and ensure it’s pleasant to live in your new home, you’re going to need to entertain them all. That can be surprisingly expensive but pays off in the goodwill it generates.
