April 02, 2025
Buying a home is exciting—but if you’re only looking at the sale price, you could be setting yourself up for a surprise. As a realtor, I’ve seen plenty of buyers caught off guard by the real costs that come with closing on a house.
Here’s the truth: there’s more to the deal than your down payment and mortgage. If you're not prepared for these extra costs, they can hit hard and fast.
Let’s walk through the hidden expenses every buyer should budget for:
Closing Costs
Expect to pay around 2–5% of the purchase price in closing costs. These can include lender fees, title insurance, attorney fees (especially in NYC), and prepaid taxes or insurance. Even with good credit, this adds up fast.
Home Inspections
Never skip a home inspection. It’s a few hundred dollars up front that can save you thousands later. In NYC, you might also need specialty inspections—like termites, mold, or structural assessments—depending on the property type.
Appraisal Fee
Your lender will require an appraisal to make sure the home is worth what you’re borrowing. This usually runs $400–$700, depending on the property.
Moving Costs
Don’t underestimate what it takes to move—especially in NYC. Whether you hire movers, rent a truck, or need storage for a few weeks, this cost can sneak up quickly.
Repairs & Immediate Upgrades
Even if the home is in decent shape, there’s usually something you’ll want to update right away—like paint, fixtures, or appliances. Build a small buffer for these cosmetic improvements.
Property Taxes & Homeowners Insurance
These get rolled into your monthly payment, but the upfront portion (usually the first year) is often due at closing. And in some neighborhoods, taxes can be a lot higher than buyers expect.
HOA Fees or Co-Op Maintenance
If you’re buying into a condo or co-op, don’t forget the monthly maintenance or HOA fees. These aren’t included in your mortgage and can easily run $500–$2,000+ per month in NYC buildings.
Buying a home is one of the biggest financial decisions you’ll make—and the smartest buyers are the ones who know what to expect. If you're starting the process, let’s walk through the numbers together so you're not blindsided when it’s time to sign.
Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.
