The Costs to Buy a Home and Other New Home Costs You Should Plan For
One of the most important aspects of the home-buying process is knowing what to expect — especially when it comes to new home costs. The thought of buying a home can be daunting, and you don’t want to be taken by surprise with any unexpected fees. Knowing potential surprises in regards to the costs of buying a home will help you prepare financially and mentally.
While these extra fees are perfectly normal, if you’re not prepared for them, they could be a shock. Let’s review what you’ll want to plan for when purchasing your new home!
One-Time Costs of Buying a Home
There are a few other one-time closing costs that come with a new home, and they include the following:
A mortgage lender will want to be sure you have your home appraised. With this, you’re paying someone to estimate the worth of your home. The lender needs this because they haven’t seen the home and need someone to verify the actual value.
The required amount depending on where you’re wanting to live can range from $350 to $500 and is one of the necessary costs when purchasing a home.
In some cases, an inspection may be a requirement to complete your offer. Similar to an appraisal fee, this would mean hiring a professional to come in and do a report on the condition of the home. The value of this service is dependent on how old the home is, where it’s located, and the square footage. If you choose to purchase a brand new home, this is an added expense you won’t have to worry about. Sometimes, new home costs are lower.
There’s a good chance you’re going to need movers to transport your items from your old house to the new one. Do a little research ahead of time and compare prices, but keep in mind the cheapest mover may not be the best option. Trying to save costs when purchasing a home is economic, but don’t do it at the expense of your possessions. Damaged or lost goods may end up costing you more.
If you don’t want to hire movers, the price of renting a van or truck is about $40 per day, plus the cost of fuel. That can really add up if you have a lot of items to be transported over the course of a week. It also means lifting all those heavy items yourself, which you’ll feel the day after. Sometimes, the tax on your body isn’t worth the money you’ll save on new home costs.
For this reason, you may want to ask if your friends and family can help you out first. Either way, these costs are important to add to your budget so you’re prepared when it comes time to pack up and move.
Depending on where you buy, there may be some yard work involved. Landscaping can be as simple as a luscious green lawn or as elaborate as you wish.
You’ll want to factor this into your budget with a new home especially. These costs when buying a home will vary because of the many factors involved, but this link will give you an indication on what to expect. Be sure to take this into consideration when you’re determining how much to spend on your new home costs.
Having a well-landscaped garden doesn’t just provide you with a nice place to entertain and hang out in during the summer months – it’s also important for maintaining the curb appeal of your home, which will be crucial if you ever decide to sell in the future. Taking care of your landscaping may mean you can recoup some of the costs spent when buying the home.
This type of insurance covers the amount it would be to replace your home if anything should happen and it’s important to work these into your closing costs when buying a home. This includes the exterior and your possession of the home, which is typically a reasonable cost if you choose to pay monthly. You’ll need to contact your insurance provider for an exact quote, but there are many online calculators available to give you a general idea of how much you can expect to pay.
This type of insurance covers the amount it would be to replace your home if anything should happen. This includes the exterior and your possession and is a reasonable cost if you choose to pay monthly. You’ll need to contact your insurance provider for an exact quote, but there are many online calculators available to give you a general idea of how much you can expect to pay. This is different from homeowners insurance, so don’t mix these two up.
Related article: Title Insurance in Alberta: Everything You Need to Know
Costs of Utilities
Some new home costs can be unexpected. Utility costs can take you by surprise if you don’t have at least one month’s worth set aside for when you first occupy the home. Otherwise, you may find yourself struggling with start-up fees and whatever other initial expenses your providers may require. This is especially true if you were previously renting and your utilities were included. For renters especially, new costs when buying a home can add up.
If you’re curious about what the current costs of living are, there are several online resources that will keep you up to date. Keep in mind that Alberta’s weather will lead to inconsistent payment amounts throughout the seasons.
Once you’ve thought through any added expenses, it will be easier to focus on moving into your fantastic new home. This way, there will be no unexpected costs for buying a home you haven’t budgeted for.
Or, if you’re still looking for a beautiful new home to move into, explore our newest home builds today!
Related article: Not Married But Want to Buy a Home? Here’s What You Need to Know
Originally published Jun 21, 2017, updated Nov 19, 2021
About the Author:
At Sterling Homes, our mission is to provide the opportunity for affordable homeownership without compromise. Over the last 70 years, Sterling Edmonton has quickly become one of Edmonton’s most popular builders. We bring more than seven decades worth of exceptional customer service, superior design and unparalleled craftsmanship to the greater Edmonton area. As a member of the Qualico Group, Sterling Homes focuses on greater Edmonton’s finest family communities, while being able to offer some of the region’s most family friendly prices thanks to volume purchasing power for materials, trades and land. This has not only made Sterling one of Edmonton’s bestselling, move-up builders, but also one of the industry’s most respected home providers. It is through our uncompromising commitment to our customers that we proudly deliver the Sterling Advantage – that’s why each and every home we build includes a 10-year home warranty, a completion guarantee and new home warranty excellence rating. Our Advantage is our pledge that, when you build your dream home with Sterling, we will deliver a timely, well-built home you’re sure to enjoy for years to come.
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