Hidden Costs of Buying a House

Upfront (closing costs)

• Loan origination fees: 0.5–1% of loan
• Appraisal: $400–$700
• Home inspection: $400–$600
• Title insurance: 0.5–1% of price
• Recording and transfer taxes: varies, $500–$3,000
• Prepaid taxes and insurance escrow: 2–6 months in advance
• Attorney fees (where applicable): $500–$1,500

Total: 3–6% of the purchase price. On a $350K home, expect $10,500–$21,000 on top of the down payment.

Move-in costs

• Movers: $500–$3,000
• Utility deposits / setup: $100–$500
• Initial repairs and upgrades: $1,000–$10,000+
• New furniture and appliances: $2,000–$15,000
• Window treatments, paint, basic décor: $500–$5,000

Ongoing annual costs

• Property taxes: 0.5–2.5% of value (varies widely by state)
• Homeowner's insurance: $1,200–$3,000/year
• HOA fees (if applicable): $200–$700/month
• Routine maintenance: 1% of home value annually as a rule of thumb
• Utilities: typically 30–50% higher than renting (you cover everything)
• Lawn / pest / pool service: $500–$3,000/year

Surprise expenses

• Roof replacement: $8,000–$25,000 (every 20–30 years)
• HVAC: $5,000–$10,000 (every 15–20 years)
• Water heater: $1,500–$3,500 (every 8–12 years)
• Major appliance replacement: $1,000–$3,000
• Plumbing emergency: $500–$5,000+

Most homeowners face at least one $5,000+ unplanned repair within the first 5 years. Build a separate home maintenance fund of $5K–$10K early.

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Frequently Asked Questions