New Home Costs You Should Plan For
One of the most important aspects of the home-buying process is knowing what to expect. The thought of buying a home can be daunting, and you don’t want to be taken by surprise with any unexpected fees.
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!
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.
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, however, this is an added expense you won’t have to worry about.
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.
If you want to skip the hired help, the price of renting a van or truck is about $40 per day, plus the cost of fuel, and 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 and you’ll feel it the day after.
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 cost will vary because of the many factors involved but this link will give you an indication on what to expect, so be sure to take this into consideration when you’re determining how much to spend on a new home.
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.
Property taxes are put in place by the government to cover important programs and services such as snow removal, transit and police duties. Your property taxes will be due in June and will cover your share of both municipal and education dues.
The amount you pay is determined by your assessed property value and a percentage of both contributions. If you would like to know what your property tax is, you can use this estimator on the City of Edmonton website.
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.
Costs of Utilities
Utility costs can take you by surprise if you don’t have at least one months’ 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.
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 nothing unexpected you haven’t budgeted for.
We hope that after reviewing these costs you’ll have a better idea of what to expect when you move into your beautiful new home!
Originally published Jun 21, 2017, updated Jan 21, 2020