What Is the Cost of Buying a Home?

by Doris Arnold 02/04/2020

Before you embark on a search for your dream house, it helps to know what to expect during the homebuying journey. If you understand the true cost of purchasing a home, you can map out your property buying strategy accordingly.

Now, let's take a look at three factors that may impact how much you spend to acquire your ideal residence.

1. The Price of a Home

The initial asking price for a house is not necessarily set in stone. In some instances, you may be able to negotiate with a seller and receive a lower price.

However, regardless of the price you negotiate with a seller, you are responsible for paying for a residence. And if you fail to receive a mortgage, you may struggle to make your homeownership dream come true.

It often helps to get pre-approved for a mortgage. That way, you can enter the housing market with a budget in hand. Pre-approval for a mortgage also may enable you to speed up your home search and ensure you can quickly discover a residence that falls within your price range.

2. Closing Costs and Other Homebuying Fees

After a seller accepts your offer to purchase his or her home, there may be various fees that you'll need to pay to finalize your house purchase.

For instance, a buyer who conducts a home inspection will need to pay for this evaluation. He or she likely will need to pay for an appraisal and any closing costs as well.

As you get ready to pursue a house, you may want to put aside extra funds for any potential costs you may encounter throughout the homebuying cycle. Because if you have the necessary funds at your disposal, you may be better equipped than ever before to seamlessly navigate the homebuying journey.

3. Moving Expenses

After you buy a home, you will need to relocate all of your belongings to your new address. To do so, you probably will require moving boxes and packing supplies to ensure your personal belongings can safely reach your new house. As such, you should account for these expenses prior to starting a house search.

Of course, you may want to hire a moving company too. If you want to find out what it costs to hire professional movers, you may want to receive quotes from multiple local moving companies sooner rather than later.

If you need help getting ready to search for a home, a real estate agent is happy to assist you. A real estate agent can offer lots of insights into the potential costs you may encounter at each stage of the property buying journey. In addition, a real estate agent will help you narrow your search for your dream house, conduct home showings and much more.

Start planning for potential costs associated with the homebuying journey – you'll be glad you did. If you budget for the property buying journey, you could increase the likelihood of enjoying a quick, stress-free homebuying experience.

About the Author
Author

Doris Arnold

Real Estate is, if nothing else a people business. For me as a leading real estate professional, my work is not so much about buildings, contracts and inspections; it's about people, their dreams, aspirations and the most important place in their world- their home. I am a people person through and through. Simply put, people fascinate me... spend a few minutes with me and you can sense this unique attribute. I listen intently to you and most importantly, I have a genuine interest in what you have to say. Follow me around for a day and you will witness the powerful and positive effect I have on the people around me, whether it's my family, close friends, or a community acquaintance. Undoubtedly, you will see a caring and committed woman who makes a difference in people's lives. If you ask my past clients what they liked about working with me, some would say it was my business savvy and real estate expertise that impressed them, but most of them would comment on how much I cared about them. I really listen to what my clients want and do what I can to anticipate their needs. I always try to stay one step ahead and keep in constant contact. My clients know I am always working for them to keep them informed and up-to-date, and I have a highly organized way of walking my clients throughout the process of buying or selling their home that makes them feel confident nothing will slip through the cracks. I absolutely love what I do and I can tell you "I'm in The Business of People." What that means to me is that I have the privilege of helping my clients achieve their dreams. What that means to you is that you can count on me to care about what matters most to you because I make your real estate needs my top priority.