This summer is still a great time to buy a home in Andover as we see low mortgage rates and homes ideally priced on the Andover Real Estate market. As Andover Real Estate agents, we’ve seen the market continue its upswing towards full recovery and many are opting to buy now before home prices rise.
If you are considering buying an Andover home soon; there may be a few hidden costs that are easy to overlook; especially if you’re a first time home buyer. We wanted to point these 12 hidden costs out to you so that there are no surprises as you venture through the home buying process.
1. Home Inspection- It is a great idea to hire a professional to inspect a home before you purchase as they can bring your attention to any major or long term issues. Let us know if you need a recommendation for an Andover home inspector; we’d be happy to help!
2. Pest Inspection- Buyers should consider having the wood of the home inspected for termites or other wood-destroying bugs. These inspections can run between $50-$200, but can save your home from further damage and larger costs.
3. Appraisal Fees- Before a purchase, your home must be inspected by a professional real estate appraiser as this helps lenders determine the amount of money to lend borrowers.
4. Closing Costs- At the final closing meeting in which you sign all documents, you should be prepared to pay closing costs which can be a few thousand dollars. These fees include processing fees, underwriting fees, recording, survey and title insurance fees. Many buyers roll these fees into their offer on the home and can be discussed with the seller and the participating agents.
5. Moving Expenses- Unless you are moving down the street, you will have to be prepared for moving expenses such as renting movers, a moving truck, and any possible shipping costs depending on how far you are moving.
6. Furniture- You may come to realize that in buying a bigger home, you’ll have space to fill. Buying additional furniture is an expense that can oftentimes be overlooked, but can be necessary in moving to your new Andover home.
7. Property taxes and homeowners insurance- First time home buyers should be aware that your monthly bill will not only include the loan amount plus interest, but also the property taxes and premiums for homeowners insurance, which all mortgage borrowers are required to obtain.
8. Supplemental insurance- Buyers who are purchasing a home in a flood zone may have to buy supplemental insurance. There are tools online to help determine if your home is in a flood zone or we can discuss this as you view the homes in the Andover area that interest you.
9. Homeowners association fees- There are many great neighborhoods and condos in Andover and the surrounding areas, some of which will have a monthly HOA fee. While you may not be keen on paying this additional cost, oftentimes it covers items such as trash removal, landscaping, or even golf fees.
10. Utilities- These costs vary from city to city so it’s always good to expect to see a difference in monthly bills. We can help answer questions on the average costs of utilities in the Andover area!
11. Ongoing maintenance- You may love the thought of a large backyard, but keeping in mind the cost of maintaining your yard or garden. If you are buying your first home you may not have all of the tools such as a hedge trimmer or lawn mower to keep your Andover yard looking fresh. Also keep in mind any type of exterior or interior maintenance you noticed about your new home and factor in the additional costs.
12. Repairs- Covering all repairs tends to be one of the larger transitional points for those first time home owners. It’s wise to set aside a small amount each month to ensure that if additional repairs are required, the funds are already in place to cover the extra expense.
As you think through the costs of home ownership and prepare for this big step in your life; we hope these tips will help you along the way. If you haven’t started your Andover home search yet, or have questions about the Andover Real Estate market; we’d love to help! Please don’t hesitate to contact us at any time with your questions or to get started.
We hope to hear from you soon!
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