The Hidden Costs of Buying a Home (That No One Tells You About!)

Thinking about buying a home? Your down payment isn’t the only cost to prepare for. Here are 5 expenses buyers often overlook:

1. Closing Costs

While your down payment often gets the spotlight, closing costs are a significant part of the equation. These typically range from 2–5% of the home’s purchase price and include:

• Lender fees

• Title insurance

• Escrow fees

• Attorney fees (in some states)

• Prepaid property taxes and insurance

Example: On a $400,000 home, closing costs could run between $8,000 and $20,000!

2. Home Inspections & Appraisals 

Before you finalize your purchase, your lender will likely require an appraisal—and you should definitely invest in a home inspection, too.

• Home Inspection: $400–$600

  
  

  A thorough inspection can help you spot major issues before you buy (think roof repairs, plumbing problems, or structural damage).

  
  

• Appraisal: $300–$500

  
  

  This is a professional estimate of your home’s value to ensure the price matches what the bank is lending.

  
  

These two steps can save you thousands—or even help you back out of a bad deal.

3. Property Taxes & HOA Fees 

Once you're a homeowner, you're responsible for ongoing property taxes, which vary by location and home value. In Central Florida, you might expect to pay around 1%–2% annually.

And if your dream home is in a community with amenities (like a pool, gym, or landscaping services), you're probably looking at HOA (Homeowners Association) fees—sometimes monthly, quarterly, or annually.

4. Moving Expenses 

Whether you're hiring professional movers or just renting a U-Haul and bribing friends with pizza, moving comes with a price.

Think about:

• Moving truck rental or mover fees

• Packing supplies

• Cleaning services

• Utility setup fees

• New furniture or appliances for your space

It adds up fast—especially if you're relocating across town or out of state.

5. Maintenance & Repairs 

Owning a home means you’re the landlord now. That leaky faucet, busted AC, or broken fence? That’s on you. A good rule of thumb:
Set aside 1% of your home’s value annually for maintenance.

For a $350,000 home, that’s $3,500/year just to keep things running smoothly. And that's not even counting larger renovations or emergencies.

Buying a home is one of the biggest financial moves you'll ever make—and being prepared for these extra costs will help you enjoy your new space without stress.

✅ Pro Tip: Before making an offer, connect with a local real estate expert (hi! 👋) to get a full picture of what your true costs will look like.