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Posted On November 14, 2019

4 Hidden Costs to Consider When Buying a Home

4 Hidden Costs to Consider When Buying a Home

 

No matter who you are or what you do, buying a house can always be a tiresome and frustrating affair. Beginning with financial documents that need clarification before you submit the same, applications that require to be filled out and every other detail that needs to be mulled over carefully, and it goes on and on. While a great deal is being talked and worked upon, the home buying process still doesn’t cover many hidden costs, which at a later stage take away a large chunk of income from the home buyer side. Before you take a leap, you need to understand that buying a house is probably one of the biggest decisions of your life and is as important as other major decisions, like marriage, for instance. If you are a first-time buyer, it actually helps in the long run. Especially if you’re a first-time buyer, it helps to know what you’re getting into. Your home is probably the most expensive thing you’ll ever own, and that expense goes beyond the closing price. There’s the cost of the house, but then there are other ongoing and upfront expenses that can catch you off guard. Especially if you’re a first-time buyer, it actually makes sense to have a comprehensive understanding of things before you invest in the same. On average, people tend to pay a lot of money as an extra cost for ownership of a home. However, that varies widely from where one chooses to live and intends to buy. In essence, the prices are never hidden but mostly overlooked. Here’s a look at four such hidden costs that you need to take into consideration while buying a home. 

Inspecting and Appraising

 A lot of people tend to overlook or forget to consider the cost of inspection as well as appraisal while they estimate the expense for their new home. Inspection is vital in order to help ensure that the intended property for purchase doesn’t have any issue that you one might be unaware of like that of war damage, termite infestation, or major structural damage or issues like mold. Also, consider appraising your property from a professional before lending out to release the money to purchase the home. Never proceed to buy a home unless it has been appraised and inspected by a professional, even if you have the capacity to buy it straight away in cash from the builder. If you are considering taking a loan from a bank, such pre-buying checks become all the way more important.

Cost of Moving 

The cost of moving is yet another essential element of consideration when looking to buy a home. It all depends on the moving method that one chooses. If you are keen on using a professional moving and packing service, it might incur a little heavy on your expense as such companies operate on their own terms, and generally charge by the hour or the number of trips needed to shift all your belongings from one place to another. Another option is to pack all supplies by yourself and renting out a truck to transport your belongings. It will still save you quite a bit of money that you would otherwise pay to a professional who will charge you more, adding other costs. Before you move, think over and factor all such expenses, so you don’t have to go through the trouble when it’s time to choose.

Fees and Taxes 

One of the biggest expenses while purchasing a house is probably, one having to deal with taxes and fees that are paid on an annual basis. Comparatively, property taxes are higher in certain places than others and should be treated as one of the most important costs that you need to cover. At times, your new home might require you to pay towards your homeowner’s association or for the general upkeep of the neighborhood. Such payments can sometimes be a lump sum amount for the whole year and can burn a hole in your pockets, especially when you are running low on funds and have moved recently.

Cost Towards Home Maintenance 

While looking to purchase a home, a lot of people choose to neglect the maintenance cost for a home in their calculations. However, when you finally own a house, you will need to maintain the area around the premises or take towards repairing of associated items. For instance, equipment for lawn mowing, tools for minor repairs, paying professionals to handle tasks that are more complex in nature. On average, it is estimated that a homeowner pays for at least 6 percent of the value for the home in the shape of maintenance costs when calculated annually.

Bottom Line

While buying a house has its own merits and demerits, having a comprehensive idea of costs and expenses actually helps. If you are looking to buy a property for the very first time, have an open chat with the builder or developer and let him know what exactly you want and what all you can afford to spend. It is always advised that you work with renowned builders in Kolkata to have a clear understanding of facts and figures before you take a step ahead.

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