Buying your first home is not only an exciting time, but it can also be a busy time with many deadlines and dates. Unfortunately, there are also many hidden or unexpected costs that are part of the overall home buying experience. As the premier real estate agent for UBC homes, I would like to offer you the following list of some of the hidden costs that you will incur as a first time home buyer.
Prepare for the Unexpected
The initial down payment of your home is not the only cost that you will incur as a first time home buyer. It is always a good idea to have a contingency fund that will cover costs such as:
- Homeowner’s insurance – you will want to insure your new home as well as your belongings against fire, natural disasters and theft.
- Closing costs – costs such as lender fees, lawyer transfer fees, appraisals fees. Sometimes these fees are part of the closing cost, but make sure that you know how much each fee is and that you have the funds to cover these costs.
Before purchasing a home, make sure to hire an inspector. Although this is another cost, it may save you considerable money in the long run. A home inspector will be able to tell you if there is any damage to the foundation or structure of the home, rot or poor electrical wiring. If any serious problems are found, you can either renegotiate the purchase price or walk away from the house.
Services and Hook Ups
Keep in mind that once you move in, you may have to pay for connection fees for many of the services that you will want in your home such as cable, electricity and internet. If you are moving from the rent world your utility bills are going to be far higher. You are responsible for heating your home now as well as paying for water and garbage pickup.
As a homeowner, you will also be paying property taxes to your local municipality. This cost can be broken down over the course of 12 months or paid as one lump sum.
When you are factoring the costs into your home purchase budget, do not forget to look past the initial home cost and factor in all the costs of improvements, upgrades or renovations. If you know that your dream home will need to be landscaped, make sure that you properly budgeted for that yard work. There is nothing worse than buying a home and hot having the funds to cover general upkeep or improvement projects. You do not want to be house poor, so budget accordingly.
There are many factors to keep in mind when you are buying your first home. That is why the right real estate agent is important. They can help you and offer advice as well as help you plan a budget so that the hidden costs of a first time home are fully understood.
If you would like any more information on the hidden costs associated with a first time home or would like to see some of the new and exciting listings that are available in and around UBC, please call me today. I look forward to working with you soon.