The Hidden Costs of Buying a Home (And How to Prepare for Them)

Buying a home is one of the most exciting—and financially significant—decisions you’ll ever make. While the down payment and monthly mortgage payments get most of the attention, a number of additional costs often catch buyers by surprise. Understanding these “hidden” expenses in advance empowers you to budget wisely, make more confident decisions, and enjoy your new home without unnecessary stress.

Below, we walk you through the most common surprise expenses you’re likely to encounter during the buying process—and share proactive ways to prepare for them.

1. Home Inspections

A thorough home inspection isn’t just a box to check—it’s your safeguard against unexpected problems that could cost thousands down the line. This professional evaluation reviews the property’s structure and systems so you know exactly what you’re buying.

Additional Home Inspection Costs:

• Radon Testing: Radon is a naturally occurring, colorless, odorless gas that can seep into homes—especially common in Western NY. Long-term exposure is a health risk, so separate radon testing (usually $100-$200) is highly recommended. If radon shows up in testing, don’t worry—it’s common and usually costs $1,000–$2,000 to take care of.

• Pest Inspections: While termites, carpenter ants, and other pests can cause hidden structural damage—especially in homes with wood framing or in older, established neighborhoods—a pest inspection (typically $100–$200) offers added peace of mind. That said, pest issues are relatively uncommon in the Rochester area, and pest inspections aren’t typically required in most transactions.

• Chimney Inspection: In older homes, chimneys can sometimes have deferred maintenance or structural wear. A professional chimney inspection is often recommended and typically costs between $150 and $300.

• Septic / Well Inspection: For homes with a septic system, it’s often recommended to schedule the inspection and pump-out once the property is under contract. Some lenders require the inspection to be completed within 30 days of closing, though requirements can vary. Expect costs to range between $500 and $1,000.

Pro Tip: Inspections are critical, even in competitive markets. If you’re worried about losing out in a bidding war, ask about scheduling a pre-inspection before making an offer, or arrange a walk-and-talk (verbal summary only) with an inspector if full reports are not possible.

2. Closing Costs

Closing costs encompass the various fees due at the end of your real estate transaction, and they can add up fast. In New York State, these are often higher than national averages, so it pays to understand every item.

On a $300,000 home, closing costs could be anywhere from $6,000 to $15,000, depending on your financing.

What’s Included in Closing Costs:

• Loan Origination Fees: Charged by your lender to process your new loan, these can range from 0.5%–1% of the mortgage.

• Title Insurance: Protects you and your lender from any disputes over property ownership or outstanding liens. Standard in most transactions.

• Appraisal Fees: Lenders require a professional appraisal ($400–$600) to confirm the home’s value matches your offer.

• Escrow Deposits: Funds held by a third party for property taxes and insurance, ensuring these bills are paid on time.

• Attorney Fees: In New York, attorney representation is customary at closing to review contracts, handle title work, and ensure legal compliance. Fees usually start around $750 and can be higher for complex transactions.

• Transfer Taxes: Some towns or counties impose a transfer tax based on the home’s sale price. This varies but can amount to thousands in additional expense.

Pro Tip: Get a Loan Estimate from your lender early so you know what to expect. Your agent may also be able to negotiate seller concessions, where the seller helps cover some of these costs.

3. Moving Expenses

Moving can be one of the most unexpectedly expensive parts of buying a new home—especially if you haven’t planned for it in advance. The total cost can vary widely depending on your specific needs and choices, such as whether you hire professional movers, rent a truck, or handle everything yourself.

What Impacts Moving Expenses:

• Distance: Local moves are much less expensive than long-distance or out-of-state moves, which may be charged by weight, volume, and mileage.

• Volume of Belongings: More furniture and boxes require more labor, larger trucks, and sometimes additional trips—all of which add to your cost.

• Time of Year: Summer is peak moving season, with higher rates and limited availability. Weekends also tend to be more expensive.

• Storage or Interim Housing Needs: If your move-in date doesn’t line up perfectly, you may need short-term storage or a hotel stay, adding to your moving budget.

Pro Tip: Always get quotes from multiple movers and read reviews. Don’t forget to factor in the cost of supplies (boxes, bubble wrap, tape), tips for your moving crew, and incidental expenses like meals or cleaning.

4. Immediate Maintenance & Repairs

Even brand-new or recently updated homes usually require some immediate work. Anticipating these costs can make your transition smoother and provide a sense of security to your budget and moving experience.

Common Early Repair and Maintenance Expenses:

• Changing Locks: Prioritize your safety by replacing or re-keying all exterior locks. Costs vary based on the number and type of locks.

• Touch-Up Paint: Cover scuffs, chips, or colors that don’t suit your taste. Even if minor, paint, brushes, and materials add up.

• Deep Cleaning or Carpet Replacement: Professional cleaning or new carpet ensures a fresh start and can improve the health of your new environment.

• HVAC Servicing: Routine service and filter replacement for heating and cooling systems can prevent bigger (and costlier) problems later.

• Appliance Upgrades: Sometimes, older or basic appliances aren’t up to your standard or energy efficiency preferences. Swapping out a refrigerator or washer/dryer can be a significant one-time expense.

  
  

First-Time Buyer Reminder: As a homeowner, you’re financially responsible for any and all repairs. An emergency fund is invaluable for peace of mind and unexpected issues.

5. Ongoing Costs of Buying a Home (Varies Widely)

Your monthly costs of buying a home reach beyond your mortgage. Planning for the routine (and not-so-routine) costs of ownership keeps your finances on track and your home in top shape.

Key Ongoing Costs of Buying a Home:

• Property Taxes: In Monroe County and across the Rochester area, property taxes are significant and may be paid through your mortgage or directly—know your local rates and payment schedule.

• Homeowners Insurance: This protects your investment from major hazards and may also be required by your lender. Rates vary based on location, size, and coverage levels.

• Utility Bills: Homeownership generally brings higher electric, gas, water, and garbage bills than apartment living. Factor this into your monthly budget.

• HOA Fees: If you buy in a community with a homeowners association, monthly or annual fees support shared amenities and services.

• Lawn Care, Snow Removal, and Maintenance: Rochester’s climate means budgeting for seasonal work like leaf removal, snow plowing, lawn mowing, and general upkeep.

Pro Tip: Ask sellers for 12 months of utility bills and tax records before you buy. Set up automatic savings for home maintenance and consider a checklist for seasonal tasks to avoid deferred maintenance.

Final Thoughts: Plan Ahead to Buy Confidently

Buying a home doesn’t mean writing just one big check; it’s about being ready for an ongoing series of expenses, both up front and over time. The good news? With awareness, preparation, and professional guidance, you can navigate these costs with confidence and certainty.

Want help building a custom plan for your home purchase? Whether you’re dreaming, searching, or already under contract, Team Hilbert is here to make every step clear—including budgeting for all the costs of homeownership. We’ll help you make smart moves for your future.

This blog post is for informational purposes only and should not be considered legal, financial, or professional advice. Always consult with a licensed attorney, financial advisor, or real estate professional before making any decisions related to home buying.