Now that you have found your dream home in the perfect neighbourhood at a price that you can afford, what’s next? There is so much more to buying your first home than just the down payment. As the premier real estate agent for Niagara on the Lake, I would like to share some of the hidden costs that are associated with a first-time home purchase to better prepare you for the process.
Prepare for the Unexpected
The down payment is just one of the many costs that is part of the entire home buying process. Other unexpected or hidden costs that you will incur include:
- Closing costs – such as appraisals, lender fees and lawyer fees. These fees are sometimes included in the overall purchase price, but make sure that you have included them in your budget if they are not.
- Home insurance – you will want to insure your new home against fire, theft and other disasters. You will also want to insure your personal belongings. Get a quote from your local insurance provider.
Another unforeseen but necessary cost associated with any home is hiring a home inspector. They will be able to tell you if the home is:
- Structurally sound.
- Has any rot in the wood or under the siding.
- The condition of the roof.
- Any faulty or poor wiring.
Here’s the Deal:
Many of the major faults that a home inspector may find are not covered under your house insurance. It may be a good idea to either renegotiate the purchase price or to walk away from the home and start your search again.
Services and Hook-Ups
Even after taking possession of your home, there are hidden costs. The connection fees for your cable, internet and electricity need to be accounted for and part of your purchase budget. Now that you are a homeowner, you will also be responsible for paying the property tax on your home as well as the services such as water or recycling and garbage collection.
It will cost more to heat and cool your home, so prepare yourself for larger utility fees. This may come as a shock if you were renting and utilities were included in your rent.
When you are looking at homes, make sure include in your purchasing budget any renovations, repairs or landscape work that needs to be done. You do not want to be house poor without the necessary funds to make your home livable.
Finding the right real estate agent is also a key part in understanding the true cost of purchasing your first home. Allow them to help you budget for all the hidden costs.
If you would like more information about any of the hidden costs of first time homeownership or would like to see some of the new and exciting Niagara on the Lake real estate options, please contact me today. I look forward to working with you soon.