There are number of home costs that you should be aware of before you decide to buy a house. It is especially important to be vigilant if you are a first-time home buyer.
Home valuation fees
Before you agree to buy a house, your financier would almost certainly ask for a valuation of the home, and this could set you back a pretty penny. You will have to hire a qualified home valuer to assess your house if you want to avoid buying a beautifully painted junk of a house. A professional valuer knows what to look out for.
Trust their judgment.
Your mortgage provider would want to be sure that you fully understand where your boundaries are. Again, a professional surveyor would be required to perform this exercise. Of course you will have to pick up the bill for this; which could be another couple of hundred dollars.
You bet you will have to pay your government – it exists, and thrives, on the taxes you pay; and there is no way you will escape this when buying a house. And these taxes are paid upfront at the point of buying a house. In some countries they call these taxes stamp-duty, but they all mean the same thing – they are added costs that you have to pay your government.
You will need to take out a home insurance; which should comprehensively cover your house for fires, flooding, disasters such as tornadoes and typhoons, etc.
The term hidden cost is actually a misnomer as these costs are more apparent today than they were in the past – but perhaps they are referred to as hidden because most home buyers, especially first-timers are almost only preoccupied with the listed price of the property they intend to buy.
The closing costs of buying a house can be anywhere between 2 and 6 percent of the home’s listed price. These cost can be very distressing especially if you had not expected and prepared for them.
Moving into your new house costs
You have just signed on the last dotted line and, with a generous smile on your face, the next step is to move in. Well, there is that movers and packaging company in your neighborhood that is eager to help you out – at a cost of course! What about the party you plan to throw for your friends to celebrate (or is it to show off?) your new-found freedom. Well, this too comes with some damage to your wallet or purse!
Other not-so-visible costs
Just before you move in, you notice something that needs to be mended; or changed to conform to your taste. Or perhaps the compound is overgrown with vegetation and requires weeding or trimming. Maybe you need to enhance the look and feel of the compound, and so you phone a landscaping specialist, or gardener, or whoever does whatever needs to be fixed.
Then you need to furnish the house to your taste. All these are expenditure areas associated with moving into a new house. Bottom line is; before you sign along that last dotted line on that last page, make sure you know what you are getting into; and use any house defect; or any element of the house that will require you to spend money, as leverage to drive the home cost down.