You have finally found the perfect home, the perfect neighbourhood at a budget that you can afford. Purchasing your first home is an exciting time as well as a busy time with deadlines and paperwork as well as some hidden costs. As the premier real estate agent for Penticton, I would like to share some of the costs that are associated with first time homeownership to better prepare you for the entire buying process.
Expect the Unexpected
The initial down payment of your home is only the first of many costs that will be part of your overall purchase price. When making a budget, make sure to include costs such as:
- Home insurance – you will want to insure your new home against fire, disaster as well as theft. Talk to your local insurance provider and get a quote.
- Closing costs – appraisals, lender fees and lawyer fees need to be considered. Sometimes these fees are part of the home buying process, but make sure they are included in your homebuyer’s budget.
These fees can quickly add up and become a burden if you have not taken them into consideration and included them in your budget. It is also a good idea to hire a home inspector to ensure that your dream home is in good working order. A home inspection can tell you:
- If your home is structurally sound.
- If there is any rot in the wood or behind the siding.
- If the renovations are up to city building codes.
- If the wiring in the electrical is properly done.
If there are any problems with the home, they are rarely covered by home insurance and you should either renegotiate the price or walk away from the house.
Services and Connection Fees
The true cost of your first home doesn’t stop at a few unexpected closing costs. You will also be responsible for service costs, such as cable and the internet as well as connection or reconnection costs associated with each. In addition to simple services, as a homeowner, you are expected to pay property tax as well as city services such as garbage collection and water. These costs can be averaged out over 12 months or paid all at once. Contact the City of Penticton for more information about municipal services.
Here’s the Deal:
You may be surprised about the cost of utilities as it will cost more to heat your new home as well as keep it properly lit – Expect larger utility bills.
Before buying your dream home, make sure to account for the items that need to be changed, renovated or fixed up and budget accordingly. You do not want to be house poor and not be able to afford to landscape your yard. Make sure to plan accordingly.
The right real estate agent should be able to help you navigate the sometime tricky world of hidden home buying costs and help you properly budget for all of them. If you would like more information about the true cost of buying a home or would like to view some of the exciting new real estate opportunities in Penticton, please contact me today. I look forward to helping you with your first home.