How Inflation Affects Home Values

When most people think about buying a home, they focus on the down payment and monthly mortgage. But there are several lesser-known costs that can catch buyers off guard if they’re not prepared. Being aware of these hidden expenses can help you budget more accurately and avoid surprises after closing.

Here are five hidden costs of buying a home that every buyer should know.

1. Closing Costs

Closing costs typically range from 2% to 5% of the home’s purchase price. These fees cover a variety of services and are due at the time of closing.

Examples include:

• Loan origination fees

• Appraisal and home inspection fees

• Title insurance and attorney fees

• Prepaid property taxes and homeowners insurance

• Escrow fees

Tip: Ask your lender for a Loan Estimate early on so you know what to expect. Some costs are negotiable, and you may be able to get seller credits to offset a portion.

2. Moving Expenses

Whether you’re hiring professional movers, renting a truck, or doing it all yourself, moving isn’t free—and the costs can add up fast.

Potential costs:

• Packing supplies and boxes

• Professional movers or truck rental

• Storage unit (if there's a gap between closings)

• Temporary lodging if your move-in date is delayed

Tip: Get estimates from at least two moving companies and budget a little extra for last-minute changes or delays.

3. Homeowners Association (HOA) Fees

If you’re buying a home or condo in a community with an HOA, you’ll be responsible for monthly or quarterly fees. These cover maintenance of common areas, amenities, and sometimes utilities or security.

What to ask before buying:

• How much are the HOA fees and how often are they paid?

• What services are included?

• Are there any upcoming assessments or rule changes?

Tip: Review the HOA’s financials and bylaws. A well-managed association is crucial for your property’s value and resale potential.

4. Repairs and Maintenance

Even a move-in-ready home may require some work—especially in the first year of ownership.

Examples of early costs:

• Replacing locks or rekeying doors

• Buying a lawnmower, tools, or equipment

• Minor repairs like leaking faucets, damaged outlets, or paint touch-ups

• Routine maintenance: HVAC servicing, pest control, gutter cleaning

account. But many buyers are surprised when their lender reassesses escrow needs and raises payments mid-year due to rising costs.Tip: Budget at least 1% of the home’s purchase price annually for ongoing maintenance. If you're buying an older home, increase that number.

5. Property Taxes and Insurance Escrow Shortages

Property taxes and homeowners insurance are usually paid monthly through your escrow

What to expect:

• Annual tax increases depending on your location

• Insurance premium hikes, especially in storm-prone areas

• One-time escrow shortages that can lead to an unexpected bill or higher monthly payments

Tip: Review your tax history and ask your lender about projected escrow requirements. Having a small emergency fund can soften the impact of any unexpected increases.

Final Thoughts

Buying a home is a major investment, and it’s important to look beyond just the purchase price. These hidden costs are normal—but being prepared for them will help you stay on track financially and enjoy your new home without added stress.

Thinking about buying soon? I’m happy to walk you through the full cost breakdown and help you create a smart, realistic budget.

Let me know if you’d like a free homebuyer consultation or a personalized cost estimate based on your location and goals.