Moving into a new house, whether an apartment, a rental property, or a new home that you are buying, can be one of the essential financial investments you will ever make. This new chapter of your life is an exciting time, but hidden costs can dampen your mood. Don't let sticker shock over hidden fees catch you off guard.
We'll provide a checklist of what to include in your budget when you're moving, what to research, and what questions to ask, from moving costs to renters or home insurance rates.
Hidden Costs Within the Home Buying Process
Most prospective buyers know the high costs of buying or renting a home, like your mortgage, rent payments, or even your taxes.
But what about heating and cooling? If you did an inspection, you would have a better idea of how long your heating and cooling are likely to last, but that is just a guess. The average cost of replacing, repairing, or evaluating your heating and air cooling systems is roughly $4,000.
If you buy a home that was just built, you shouldn't have to think about replacing appliances such as your stove, fridge, or dishwasher. If you are purchasing a home that has already been lived in, replacing appliances should be on your radar at some point. Prices for these particular items can vary depending on whether you want the base model or an appliance that has it all.
If you want a gas stove, but the home you are moving into has an electric stove, you will want to see how much it will cost to put in a gas line. If your current fridge doesn't have a water/ice option, you will want to double-check that a water line can be added to that spot in your kitchen before purchasing a new fridge with those options.
New owners are generally prepared for gas, water, and electricity. Sewer, trash, cable, internet, and pellets if you have a wood-burning stove are items that get lost in the shuffle. If you are buying an old home, the chances are that the windows are energy efficient. It may cost you more to heat and cool your house. Replacing windows is a hefty cost but may save you money in the long run.
Depending on the area you are buying a home in, if it's in a hazard area or flood zone will likely increase your home insurance rates, but typically you should expect to spend around $35 for every $100,000 you have in your home value.
Before you sign the paperwork to purchase a home, you will know if that home is in a homeowners association (HOA). Those neighborhoods have fees that are due monthly, quarterly, or yearly. These are flat rates you can prepare for and factor into your family's budget.
Do your research before purchasing a home. These hidden costs can be crippling to your finances if you aren't expecting them. All of the items above should be considered when you are planning a budget. You can put money aside each paycheck or each month to go toward these future purchases to help lessen the blow.
Hidden Costs When Moving Into a New Rental Property
Renting an apartment or home brings flexibility; renting allows for a better understanding of what monthly and future funds you will need for this expense. However, there are still a few items renters tend to forget about when creating a budget for moving to a new home.
Most rentals require a security deposit that you will receive back at the end of your lease if the property is returned in the same manner given to you. Sometimes the first and last month's rent costs are required. This provides additional financial security to the property owner if the tenant leaves suddenly or stops making payments.
The proximity to a major city, type of rental, and state you live in may cause you to pay for parking. If you have a pet, many places require a pet deposit.
Not all properties will require you to purchase renters insurance. However, it is best to factor this into your budget and be ready to buy. If there were a fire, storm damage, or other damages to your rental, your belongings would not be covered by your landlord's property insurance.
Whether you are moving into a new home you are purchasing or a new home you are renting, there will be additional expenses you were not prepared for.
You can try to save time and money by doing things by yourself, but be aware of how much you can manage on your own.
Hidden Costs When Moving Into Your New Home
Boxes, tape, and packing paper may not stick out to you as being expensive, and individually they usually are not, but when moving, you will be using multiples of each.
You can save some money by using boxes that have already been used. Check your local neighborhood group pages to see if anyone has used boxes they are looking to get rid of. Grocery stores and other shops may have boxes you can have for little to no cost.
Stores would otherwise be throwing these boxes away. Calling in the mornings after their items have been stocked is the best way to see what, if anything, is available.
You wouldn't want to move into a dirty house, and if you are selling your previous home, the new owners wouldn't want to do that either. Clean it before you leave. Cleaning takes time, and with all the boxing up you are doing, it may be wise to look into a professional cleaning company to clean for you.
Hiring a professional cleaning service is not a requirement when buying and selling houses, and it comes with a price tag, but it can save you time. Allow yourself to focus on packing and unpacking.
Depending on your age and physical health, moving big furniture and boxes from one home to the next may be out of the question. If friends and family are not near and can't help, look into professional moving companies.
Hiring movers will cost you more than it would if you moved your belongings yourself, but it will also be faster. It can cut down on the stress of managing the move yourself. Most moving companies come with damage protection coverage if anything were to break during the move. Additional costs won't seem as overwhelming when you are prepared for them.
In addition, you may need to budget for costs involved with moving a car from state to state, including transportation if you can't drive it and out-of-state insurance costs.
Packing and unpacking can be very time consuming, and who wants to spend the evenings digging through unpacked boxes? Food from your old fridge may be thrown out during the move, and purchasing groceries becomes a lower priority than packing or unpacking your belongings. Be prepared for additional take-out meals during your move.
Put aside some funds to allow you to have wiggle room in your budget for expenses that may pop up. If you don't use the money, you can use the extra for an emergency fund. It's better to be overprepared than underprepared when moving and buying.
(Photo : Kalyn Johnson)
Kalyn Johnson writes and researches for the insurance comparison site ExpertInsuranceReviews.com. Having moved as a child multiple times Kalyn is committed to finding and sharing the most cost-effective ways to do so.
* This is a contributed article and this content does not necessarily represent the views of realtytoday.com
