Buying or selling a home in Irvine, Newport Beach, or anywhere in Orange County is exciting, but it comes with costs you might not expect. Maybe. Planning ahead can help you stay on budget and avoid or minimize surprises.
While this IS NOT an exhaustive list of costs, it is simply a sample of some costs that people sometimes don’t find out until later…possibly by surprise.
Yikes.
To make things easier, here are some common expenses to keep in mind when buying or selling a home!
- Upfront Costs to Prepare For:
- Closing costs: Expect to pay fees during and when finalizing a home purchase. Both Sellers and Buyers cover certain costs, which often include mortgage processing, escrow fees, concessions, appraisal fees, inspections, wire transfer fees, and more. Even with a low or zero down payment mortgage, plan to pay these costs upfront to ensure a smooth sale. A good agent can walk you through the details.
- Moving Expenses: Whether you rent a truck or hire movers, budget for moving your belongings to your new home. Professional movers offer convenient, time-saving services but come at a higher cost, so choose based on your needs and budget.
- Closing costs: Expect to pay fees during and when finalizing a home purchase. Both Sellers and Buyers cover certain costs, which often include mortgage processing, escrow fees, concessions, appraisal fees, inspections, wire transfer fees, and more. Even with a low or zero down payment mortgage, plan to pay these costs upfront to ensure a smooth sale. A good agent can walk you through the details.
- Ongoing Homeownership Expenses:
- Property Taxes: Learn your property tax responsibilities. Depending on your mortgage setup, you may pay taxes directly or through an escrow account. Understand the home’s tax details before buying, and check for any Mello-Roos tax obligations.
- Utility Bills: Plan for monthly utility expenses like electricity, water, internet, gas, solar, and more. Some utilities may require deposits, especially if you’re establishing credit.
- Homeowner Association (HOA) Fees: If your new home is in a community with an HOA, monthly, or annual fees may apply. Sometimes there may be 2 separate HOAs. These fees help maintain shared spaces but can vary greatly — be sure to factor them into your budget.
- Property Taxes: Learn your property tax responsibilities. Depending on your mortgage setup, you may pay taxes directly or through an escrow account. Understand the home’s tax details before buying, and check for any Mello-Roos tax obligations.
- Furnishing & Maintenance Costs:
- Furnishing Your Home: Factor in the cost of furnishing your new space, and consider costs of furniture, appliances, and household items you’ll need when your sell and are moving to a new home. Sell some of what you have and buy new?
- Yard Maintenance: Unless covered by your housing community or HOA (Home Owners Association), budget for tools, materials, or services to maintain your yard and outdoor spaces. Especially important to know if you are moving from a Condo with an HOA and into your first single-family home ever!
- Appliance Maintenance: Even if your home comes with appliances, they won’t last forever. Budget for routine maintenance or inevitable replacements for items like water heaters, dishwashers, or air conditioning units.
- Furnishing Your Home: Factor in the cost of furnishing your new space, and consider costs of furniture, appliances, and household items you’ll need when your sell and are moving to a new home. Sell some of what you have and buy new?
- Protecting Your Home:
- Home Insurance: Protect your investment with home insurance. Costs vary based on location, home size, and coverage type. Shop for quotes and understand your coverage — especially for natural disasters like earthquakes, fires, and floods, which may require separate or dedicated policies.
- Security Systems: Protecting your home may involve installing a security system, cameras, or smart locks. While some options are DIY and affordable, others may require monthly monitoring fees.
- Lock Replacement: For peace of mind, consider replacing the locks on your new home. This ensures you know exactly who has access to your property and adds an extra layer of security.
- Home Insurance: Protect your investment with home insurance. Costs vary based on location, home size, and coverage type. Shop for quotes and understand your coverage — especially for natural disasters like earthquakes, fires, and floods, which may require separate or dedicated policies.
- Unexpected & Emergency Costs:
- Emergency Repairs Fund: Homes can be unpredictable. Setting aside funds for unexpected repairs — like a leaky roof, urgent plumbing issues, or a failing HVAC system — can save you from financial stress and chaos down the road.
- Pest Control: Depending on your area, you may need routine pest prevention services to avoid issues with ants, termites, or rodents. Catching these problems early may prevent expensive, destructive damage later.
- Emergency Repairs Fund: Homes can be unpredictable. Setting aside funds for unexpected repairs — like a leaky roof, urgent plumbing issues, or a failing HVAC system — can save you from financial stress and chaos down the road.
- Extra Touches:
- Cleaning Costs: Whether you’re moving in or out, cleaning expenses can add up. You may need to hire professional cleaners or buy supplies for deep cleaning carpets, floors, and appliances.
- Change of Address with Post Office: check with your local post office. Sometimes there may be a fee for them to automatically forward mail from your prior address to your new address. It is unlikely to be indefinitely, so find out what, if any, cost and for how long.
- Cleaning Costs: Whether you’re moving in or out, cleaning expenses can add up. You may need to hire professional cleaners or buy supplies for deep cleaning carpets, floors, and appliances.
By adding these tips to your plan, you’ll be better prepared for many costs that come with homeownership — helping you stay on track and enjoy your new home with confidence.
As your local real estate agent in Irvine, Newport Beach, and of Orange County, I specialize in using these proven marketing strategies to showcase homes as a listing agent to my sellers. I put in the work to create engaging content, promote listings with strategic social media campaigns, and ensure properties get the exposure they deserve.
Hiring me means choosing dedicated representation that can give your home a powerful online presence, attracting serious buyers and work toward securing the best possible offers!
Let’s talk about what we can do together.
For you.
For your family.
Thoughts of Selling or Buying a Home?
Call/Text Tony at 949-633-6741
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