With fluctuations in mortgage rates and a shifting real estate market, many first-time home buyers feel overwhelmed when considering buying their first home.
That is why it is critical to research and prepare for the exciting journey ahead and work with an experienced real estate agent you can trust. Here is some of what you can expect when buying a home:
Understanding the financial costs and expenses
Buying a home is typically the largest investment a person can make, so it is natural to feel nervous about upcoming expenses. Homeownership has both initial costs, as well as ongoing expenses.
Initial Costs
When you purchase a property or new home, there is the obvious deposit and purchase price of the home. However, beyond this, there are other costs to consider.
- Home Inspection: When purchasing a home, many prospective homebuyers like to have a home inspector walk through the property. It is important to select an inspector who has expertise and is specially trained in the type of dwelling you are looking to purchase. . An inspection report can cost anywhere from $300 to $600 or more.
- Legal fees: once you have found the right home for you, a real estate lawyer will work to finalize your legal documentation. This can cost from $500 to $1,500 on average.
- Moving costs: Moving costs will be attached whether you decide to hire movers or move on your own. Truck rentals, boxes and supplies are all needed when moving. Depending on the quantity of items and time, movers can cost on the upwards of $750.
Ongoing Expenses
Once the initial impact of the deposit and closing costs are over, there are ongoing expenses that you should be ready for, typically paid monthly.
- Mortgage: While this is assumed, you must make your mortgage payments. Scheduling for this is typically either bi-weekly or monthly.
- Condo fees: Most condo owners pay a monthly maintenance fee once they take ownership. The fee is charged based on the square-foot size of the unit and goes towards everyday building costs and maintenance and repairs. Maintenance fees are an essential consideration for buying a condo. Depending on the building, there can also be an extra monthly fee for a parking spot.
- Insurance: As a homeowner, you will need to purchase insurance for your home. This will include mortgage protection insurance and home insurance.
- Taxes: All properties will require that you pay property taxes. This is calculated based on the size of the home and its location. This can be paid in a variety of ways, so find the right payment schedule for you.
- Utilities: water, hydro, internet, phone, and cable are all services that are billed monthly. Costs for each vary depending on the area and type of property.
- Renovations and home maintenance of a property are critical. If you previously rented a property, you might only know of some things that can pop up when owning a home. Houses may require new roofs, windows, plumbing, or electrical wiring. Remember your budget and overall resale value when updating and maintaining your home.
New home, new beginnings: The emotional side of real estate
Buying your first home can be a very emotional time for everyone involved. Ownership and moving can come with a wide range of emotions and it’s important to enlist the help of a professional who can guide you through the process to ensure you are making well-informed decisions.
Right at Home Realty is here to support you during this exciting time. Have questions? Speak with one of our agents today.