5 unforeseen costs of buying a house
Last Modified 16th of February 2021
When you are buying a house for the first time, or upgrading from an older house to a newer one, there are going to be large costs associated with this move. However, the costs that end up putting families in financial difficulty are unforeseen costs that they did not think about and might not be available as a costing option on a mortgage calculator. Here are five unforeseen costs that you should think about before you venture into buying a new house.
1. Solicitor costs
When you are dealing with buying a house, there is a chance that your solicitor costs will rise far above what you anticipated. There are cases where conveyance solicitors will charge you exorbitantly high extra amounts if the housing deal is not completed by a certain date. What’s worse is that these extra charges are only made known when you get your legal bill; there is little prior warning. It is important to talk with your solicitor about this and be 100% clear on what charges you can expect.
2. Repair costs
After a first examination is complete on the property, you may get a fair idea of what repairs are needed. However, it is not possible to check every part of a house before you are buying it. Often, it is only possible to tell what repairs are needed after you live somewhere for a few days. These repair costs can add up to thousands of pounds, depending on the property.
Whether you are decorating your bedroom, living room, outside balcony, or lawn/porch/garden, there are going to be heavy costs associated with this. Moving into a new home is only part of the process: the real challenge (and cost) comes when you are setting up the place with furniture and decorations.
4. Temporary housing
Even if you time your move in the best way possible, it is likely that you will have to spend a few days (or weeks) in temporary accommodations. If you are lucky, you may be able to stay with a family member. When that is not possible, you will have to pay for hotel/motel costs for days until your new place is ready to move into.
5. Miscellaneous costs
There are various licenses and other hoops that must be jumped through when you are moving into a new house. For example, some places have new license requirements, money transfer costs and other permits/regulations that must be filled out and completed.
While the unforeseen costs above can seem daunting, they can be managed if you plan correctly. It is vital that you get a handle for all the costs of moving before you finalise a deal. Look beyond the down payment on your house, and plan as best as possible for the above unforeseen costs.