Being a homeowner is one of life’s most rewarding experiences! But the decision to buy a home should not be taken lightly. The last thing you want is to jeopardize your financial wellbeing by purchasing a home without a sufficient budget.
To help you save appropriately, we’ve compiled a list of all the different costs home buyers can expect when they move into a new home.
Costs of Moving & Buying a Home
As a potential home buyer, you need to save up a good chunk of money before you move and close on a home. We have divided your possible costs into 5 categories:
- Home-buying costs
- General moving costs
- Professional moving costs
- DIY moving costs
- Costs AFTER move-in
1. Home-buying costs
Earnest Money Deposit – This is one of the first costs you’ll face in the home-buying process. Also called a “good faith deposit,” earnest money can help make your offer more appealing to sellers. This deposit could be as much as 10% of the listing price in a seller’s market, but it generally falls between 1% and 3%.
Home Inspection – Before closing on a home, buyers typically get an inspection of the home’s physical condition. Home inspections can cost up to $400.
Down Payment – Depending whether you qualify for more specialized loans (like USDA or first-time home buyer loans), your down payment may fall anywhere between 0% and 20% of the purchase price.
Closing Costs – Before you become the legal owner of your new home, you’ll need to pay some fees. Generally between 2% and 5% of your loan amount, closing costs include appraisal and attorney fees, loan origination fees, homeowner’s and title insurance, property taxes, escrow fees, and more.
MORE FIRST-TIME WILMINGTON HOME BUYER RESOURCES
2. General moving costs
Packing Materials – Don’t forget about the boxes, tape, packing blankets, packing paper, and packing wrap you’ll need. Although you probably can’t calculate a definite cost of packing materials until you are actually boxing up your belongings, you can make a rough estimate of the supplies you’ll need.
Vehicle Shipping – Moving to a different state? Shipping your vehicle may make more sense than driving it yourself. This option will generally put you out about $1,500.
Personal Travel Expenses – If your new home is a long drive away, you’ll need to think about any necessary gas and overnight accommodations.
Storage Expenses – Not traveling with all of your stuff? You can get a storage unit or a storage container for anywhere between 50 bucks and a few hundred dollars.
3. Professional moving costs
Standard Moving Fee – Moving companies will charge you a base fee. Movers typically base this fee on the amount of stuff you have, the amount of labor needed to move it, and the length of your journey. Local moves generally cost no more than a couple thousand dollars. But long-distance moves can be much more expensive.
Mover’s Insurance – Most professional movers offer mover’s insurance. This policy will come into play if something happens to your stuff during transport.
Multi-Day or Time Overage Fees – The more time your move takes, the more you will be charged. If your move spans over the course of two days or lasts longer than originally estimated, you can expect extra fees.
4. DIY moving costs
Truck Rental – If you are a do-it-yourself kind of mover, you can rent a Penske, U-Haul, or other moving truck for a relatively affordable rate. Just like moving companies, local moves will cost far less than cross-country moves.
Fuel – Don’t forget to consider gas expenses when renting a moving truck. Most moving truck companies require you to return your truck with plenty of fuel.
Moving Equipment – Handling the move yourself can save you some money. But you will probably want to rent some moving blankets and dollies from the moving truck company to make the job easier.
5. Costs AFTER move-in
Cleaning & Repairs – Your home inspection will be able to give you a good idea what kind of initial repairs you will need to make to your new home. It is also a good idea to set aside some money for things like professional carpet cleaning.
Utility Set-Up – If it’s your first time buying a home, you may be surprised how quickly monthly costs build up when you are a homeowner. From waste management to pest control to home security, there are a whole slew of utility expenses you may not be used to if you’ve only ever lived in an apartment.
New Furniture & Appliances – You’ll probably have a list of items you want to get for your new home – a fridge, dishwasher, new couch, window treatments, you name it! Determine which items you need to purchase right away (and which ones can wait until you’ve rebuilt your savings post-move).
Network Real Estate | Wilmington, NC Real Estate
Need help finding a home in the Wilmington, NC area under your budget? The agents here at Network Real Estate have years of experience under their belts and can help you find some fantastic home options within your price range.
Call us at 910-395-4100 today to start working with one of our dedicated agents.
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