I think it’s fair to say that most people know about down payments and closing costs when it comes to buying a house. However, there are some costs that are not as well known, especially when you’re a first time home buyer. I want to share two of those with you today.
First off would be the home inspection. Though not required, I very much recommend sending in a good home inspector (anywhere from $300 to $1,000, depending on how thorough you want to be) to check the condition of the home you want to buy. You can ask for additional tests such as radon and mold to be done.
Secondly, I’d like to draw your attention to long-term maintenance items. I recently showed a house in Park City that was built in 1979. Speaking to the homeowner, I learned that in the 24 years they had owned the home, they had updated the windows and kitchen, moved electric and plumbing, and the furnace and water heater were just a few years old. This, of course, was great news for my client who wanted to buy the home.
However, if you’re looking at a home that is 25 years or older and DOESN’T have updates to major systems, then you can plan on some major expenses in updating or replacing them (think heating and air, water heater, roof, etc.) in the next few years, which can cost thousands. It may be in your best interest to find another similar home that might even cost a bit more that DOES have those updates, which can save you thousands of dollars down the road.
Many first time home buyers are so excited about the process, they don’t know to consider these major systems that they will be responsible for as soon as they buy the home.
Do you have any questions about the costs to buy a home? Feel free to send me a message!