Many homebuyers look at the price of a home and also at the closing costs if a loan is needed. But what about all of the other costs involved? What, you may ask, are those?
During the Buying Process: Once you find your home, whether it is a single family, duplex, condo, or townhome, there are necessary costs in the buying process. The home inspection is your biggest cost, which can run anywhere from $350-$600, depending on the size of the home. Then there is the sewer scoping, usually around $100-$125, and the radon test, if done, which is also about $125. And these are paid at the time of the inspection.
Appraisal: After these inspections are done, the lender will order an appraisal, which is often paid upfront. That can run $550-$800—definitely an expensive, but required cost.
Energy: Think about the energy costs of your new home. If it is larger than where you live now, the heating and cooling will be more expensive. Homes listed in the City of Portland require an energy audit, so you will have a report on the status of the energy and the monthly costs. If there are solar panels, there may be monthly lease payments which you may inherit. And if an appliance is old, you may want to replace it.
Repairs: You may be buying a home that needs some immediate repairs, such as flooring, paint, electrical, or siding. Some of these are expensive, but some may be needed right now. Consider those expenses and how you will pay for them. Those would be very nice house warming gifts.
Moving: The cost of a move may not be huge, but that depends on how far away you are moving from, and the amount of furniture you have. You may also decide to rent a storage unit to house some of your unused items.
Consider all of these items as you take the plunge into home ownership.