Just when you thought your down payment was the last big check leaving your bank account, you’re hit with more fees at the end of the home buying process. From closings costs to moving expenses, the amount of money often required to actually buy and move to a new home can be downright staggering. Purchasing a new home is only half the battle. The other half is figuring out how to physically move your belongings (and yourself) in the most economical and efficient way possible. Unfortunately, these moving expenses and closings costs add up quickly. Below, we’ve included a list of important expenses to consider before you decide to buy and move to a new home.
9 Moving Expenses Involved When Buying and Moving to a New Home
Your moving expenses may include making necessary home repairs
If you’re selling a house, you’ll likely need to make necessary repairs before listing your home. The reason? Discerning buyers are sure to notice loose door knobs, cracked walls or broken appliances. To optimize your chances of selling a house, it’s best to repair your structural items first. This includes electrical, HVAC, plumbing and roof issues. Next, those moving should replace broken light bulbs, repair damaged drywall and fix broken appliances. Failing to repair any or all of these items will likely result in a buyer believing that the house has not been well maintained (read: not attractive). Even if the property manages to go under contract with a buyer, the damage will inevitably come to light during the official home inspection anyways. For these reasons, it’s best to handle all repairs before listing your home.
You may have to pay for a home appraisal
Buying a home with credit? If you’re seeking a mortgage, you’ll have to pay for an appraisal of the house. A home appraisal is performed by a third-party real estate appraiser who determines the value of the property based on nearby comps (comparable sales) and the condition of the house itself. The appraised value of the home determines how much a bank is willing to lend the buyer. If the home appraises for less than the agreed upon price, the buyer will have to make up the difference out-of-pocket. Home buyers usually pay several hundred dollars for this appraisal.
You’ll have to pay for a home inspection
In addition to paying for an appraisal, home buyers are also responsible for covering the home inspection (assuming they wish to have one). A home inspection is performed by a certified home inspector who assesses the condition of the home. While it’s not a requirement in the home buying process, most buyers do opt for a home inspection, as they wish to know about any problems before purchasing the home (think: a damaged roof or termites). Home inspections usually cost several hundred dollars. However, an inspection of a larger home, which takes more time to inspect, can cost upwards of $400.
You may have to pay Realtor fees
If you’re the seller, you’ll be expected to pay all real estate agent fees. This commission is paid to both the listing broker and the buyer’s agent (also known as the selling agent). Both real estate agents involved in the deal typically receive a 3 percent commission – although, this can change depending on the agreement. Sometimes Realtors agree to take less commission in order to reach a deal.
You may have to pay mortgage broker fees
Planning to use a mortgage broker to obtain a home loan? Expect to pay your mortgage broker between one and two percent of the total loan amount. When seeking a mortgage from a bank, these brokers can help home buyers find and assess the many different loan options. Mortgage brokers will contact various banks on your behalf to find the best rate for your specific needs. Of course, this convenient, go-between service will cost you a small percentage of the loan come closing day.
You may have to pay for a moving company or DIY moving services
Hiring a full-service moving company? While certainly convenient, this service typically costs big bucks. According to the American Moving and Storage Association, the average cost of a local household move is $2,300 for four movers at $200 per hour. For long distance moves, customers pay an average of $4,300 (yikes!). Many will tell you though that the ease and convenience of hiring professional movers is well worth the high cost. While do-it-yourself moves tend to be much less expensive, there are still a long list of expenses you’ll have to pay. These could include truck rental fees, moving container costs, shipping costs, packing services and loading/unloading assistance. It’s safe to say that moving expenses can add up quickly.
You’ll probably have to buy moving supplies
From cardboard boxes and packing tape to plastic wrap and packing paper, moving supplies aren’t cheap. In fact, you can expect to pay over $100 to pack up the contents of a large household. In addition, you may need to pay for certain moving equipment rentals, such as a dolly or moving straps, to assist with heavy lifting. Of course, one way to save money on moving supplies is to seek out free moving boxes from friends, schools and stores. For more advice on where to find free moving supplies, check here.
Your new place may require new furniture
Moving to a new home often means having to buy new furniture. For example, those downsizing to a smaller home may need to invest in space-saving furnishings. Those upgrading to larger home may need to purchase additional furniture and decor to fill the new rooms. Finally, those ready for a fresh start in a new home may simply choose to replace their old furniture with new sofas, tables and chairs. Fortunately, there are a number of stores that offer moderately priced, high quality furniture. If you’re budget-minded and looking for affordable furniture to outfit the new abode, check here for our advice on where to find it.
You may need a storage unit
If your move involves temporary housing, renovations or downsizing, you may need to rent a storage unit – at least, temporarily. The cost of renting a storage unit is usually based on how long and how much you plan to store. Contracts are typically offered on a month-to-month basis, however, some facilities insist on a minimum number of months. The total cost of renting a storage unit undoubtedly adds up over time. If you plan to rent a storage unit, make sure you budget accordingly. To find storage in your area, use Moving.com’s Storage Center. Just type in the zip code or your city and state of residence and click the ‘find storage’ button. Moving.com will pull quotes from the closest storage unit facilities near your new home to compare. For more advice on renting a storage unit.