If you’re getting ready to buy your first home in Boulder, you’ve probably already saved up for a down payment and put money aside for renovations and new furniture.
But have you thought about all the costs that come with buying a home?
There are a lot of hidden expenses many first-time buyers don’t know to budget for, and they’re left short at the end of the sale.
To help you plan a full budget, we’ve covered all the unexpected costs of buying a home in Boulder in this guide.
If you’re still looking for the perfect place to live in Boulder, here are the best Boulder neighborhoods for families.
Asa first-time buyer, one of the first hidden costs you’ll be hit with is the closing fees. These are the fees you pay so the title of the property can be transferred to you, including an application fee and homeowners insurance premiums.
On average, you’ll pay between 2% and 5% of the purchase price in closing costs.
It’s always advisable to get a home inspection before you buy a house. This will let you know if there are any hidden problems that could end up costing you a lot of money to repair once you’re the owner.
It might even highlight a dealbreaker that means you walk away from the sale.
Anything from cracks in the foundation to issues with the roof will be picked up on a house inspection, so you’ll be glad you invested in it.
On average, you’ll pay between $300 and $450 for a standard home inspection.
Many lenders roll the property taxes into the monthly mortgage payment, so you might not notice this when you’re budgeting. However, it’s still important to know what you’re paying in property taxes.
The price you pay varies depending on where you live, but it works out at around 1.1% of the property value. You’ll find property tax estimates on most real estate listings so you’re not caught off guard.
Many people forget to budget for this hidden cost, but you have to get all your stuff to your new home!
Whether you hire a moving team or rent a truck, there will be moving costs involved. On average, you’ll spend around $1400 on moving expenses in the US.
When you move in, your new home will need maintenance, especially if it’s older and has been poorly maintained. From replacing a water heater to getting the gutters cleaned, there are countless home maintenance tasks you’ll need to budget for.
It’s difficult to give a number for this one. Your maintenance costs will depend on the age and size of the home, but you’ll want to put some money aside for updates and repairs.
If you’re a home buyer moving from a rental property to a home, or even moving from a smaller home to a larger one, you might be shocked by the increase in utility costs.
On average, utilities cost a family $2060 a year, but these numbers are going up with the rising cost of fuel.
When you’re planning your budget, don’t forget to factor in:
- Water and sewer
Look up the average cost of each in your state to get an idea of what you’ll need to spend every month.
Homeowners Association Fees
Many neighborhoods charge a monthly or annual HOA fee. This is collected by the neighborhood homeowners association and the funds are then used for groundskeeping, community facilities, lawn care, etc.
This is a separate expense from your property tax and mortgage, so you’ll need to budget this on top. They can range from $200 to $3000 a month, depending on your neighborhood.
A home appraisal is an integral part of the buying process, but most buyers don’t know they need to pay for one to be carried out.
It’s important because it’s an unbiased, professional review of the home value. This ensures you’re not overpaying and lets the bank know that your mortgage is suitable for the property you’re buying.
A home appraisal costs between $300 and $425, depending on who you use to carry out the service.
Work Out the Cost of Your Move
As you can see, there are a lot of unexpected costs that come with moving home. In fact, when you add them all up, you’ll spend an additional $5000+ on moving and closing fees.
Don’t let that stress you though – knowing about all the fees in advance means you can save up a little extra and be prepared when you’re ready to make an offer.
If you want to work out exactly how much it will cost to move to your new home, here’s an easy moving cost guide to help you figure it out.