How Inflation Affects Home Values
- Mike and Elke
- Jul 18
- 3 min read

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.
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