Buying your first home is a very exciting time, but just like a freshman entering high school for the first time, it can be confusing and throw unexpected things your way. Don’t be caught in a whirlwind of unexpected costs and fees and educate yourself with the homebuying process.
Cheyenne is a great location to settle and set your roots down in — there is the beautiful great outdoors and in-town attractions that boast Cheyenne as one of the best small towns to live in! At Homes By Guardian, we’re here to support home buyers with all experience — from new to the seasoned. Find expert advice on and how to strategize hidden costs in today’s post.
The New Home Price is As Advertised, Right?
When preparing to purchase your first home, there is much more involved than putting in an offer and having it accepted — there can be many hidden costs involved that you may have not planned for. So, with some smart strategizing and planning, you can be prepared and able to conquer unforeseen costs.
Costs to Expect in a New Home
News to newbs — the homebuying costs don’t stop at the down payment. Typically homeowners insurance, closing costs, and lender and appraisal fees are all lumped together in the initial process so those won’t be too far off base, but anything else and you may start to see hidden costs.
What affects the costs?
If you’re moving into a new home sometimes you can negotiate appliances, but most likely you’ll have to supply your own, and they’re not the cheapest things to have to buy brand new. Common appliances include a dishwasher, refrigerator, and washer and dryer — expect to pay a minimum of $5,000 to furnish your new home with basic appliances.
You’ll also be responsible for urgent improvements that may be needed, unless they were negotiated in the price. Most home builders are upfront with any issues, but always hire a home inspector (an additional cost) to ensure that everything is good to go and your stairs won’t cave in the moment you move in!
It’s important to take this step no matter how much you love the house because your excitement can be clouded and miss faulty wiring and or a weak foundation that isn’t typically covered in homeowner insurance.
The Cost of Comfort
Perhaps you came from a home where water and trash were paid for or you were in a smaller space, so gas and electrical were minimal. Realize that living in comfort comes with its own costs. If you just bought a home with exquisite wood flooring and vaulted ceilings, be prepared to pay a premium to heat and cool the home — as Cheyenne has four seasons and see extreme lows in the winter and highs in the summer. Just as a rule, expect your utilities to be quite a bit higher than if you were renting before.
There are also little things like paying for cable and internet, and everyone’s favorite fee, the HOA costs!
Strategies to Combat Hidden Costs
The best offense in combating hidden costs is through proper planning and research. This means budgeting for the known and unknown. Consider the worst case scenario in your home buying situation and research costs of new appliances, electrical rewiring, and what other improvements may cost.
The positive perspective in this is, the more you research, plan, and budget, the less shocked or overburdened you’ll feel. And, if everything goes as planned, you’ll have money left over for a rainy day!