Know All The Options to Sell Your Home. Schedule a free home-selling strategy consultation. Schedule a Call
You’ve saved up for a down payment, gotten pre-approved, and found your dream home. Great! Now, you’re ready to buy your dream home, right? That’s what most people believe. However, in 2025, the price of the home is just the starting point.
Right now, the real estate market is shifting into a buyer’s market. That means there are more homes for sale, and you might find a great deal. But even with more options, there are hidden costs that can sneak up on you if you’re not prepared. So, here are some key expenses you should be aware of if you’re considering buying a home today:
1. Mortgage-related costs. One of the biggest hidden costs I see people overlook is their mortgage. Many assume a 30-year fixed-rate mortgage is the best choice, but that isn’t always true. Depending on your situation, an adjustable-rate mortgage or a shorter-term loan, like a five to seven-year product, might actually save you money.
There are also different loan types, like FHA loans, that could fit your goals better. Talk to more than one lender so you can see all your options and pick the loan that works best for you.
2. Closing costs. When you buy a home, you can sometimes negotiate for the seller to cover a portion of these fees. If you include that in your deal, it can save you a significant amount of money.
3. Home inspection costs. A professional home inspection usually costs between $600 and $900, depending on the size of the house. I always recommend additional inspections, like a sewer scope test, to make sure the sewer line is in good working order.
If the house has a septic system, that’s a separate inspection that’s just as important. Most buyers also do a radon test, which is quick and simple but necessary in areas where radon levels are high. Depending on the property, an underground tank locate search is also smart to avoid costly cleanup if an old oil or septic tank was abandoned on the land.
4. Buyer’s agent commission. With new rules this year, buyers need a written agreement with their agent called the Buyer’s Representation Agreement. This agreement specifies the agent’s commission, usually around 2.5%, though it can be higher or lower. If the seller doesn’t cover the full commission, the buyer may need to pay the difference unless the agent agrees to reduce it. It’s important to be aware of this so you’re not caught off guard.
5. Moving costs. Moving is another hidden cost that can add up fast. Those storage pods you see in driveways or hiring a national moving company can get expensive. Sometimes, a local mover for a short move is more affordable, but you have to plan ahead. Budgeting and shopping around for different movers can save you a lot.
6. HOA fees and transfer charges. If you’re buying a property with an HOA or certain condominium buildings, there are extra fees to consider. For example, in Lake Oswego, Oregon, a waterfront home comes with a $7,500 transfer fee to the Lake Corporation. There may also be ongoing HOA or property management fees. Doing your research beforehand can prevent unexpected costs later.
7. Utilities and services setup. Finally, don’t forget about the costs of setting up utilities and services. Electricity, natural gas, water, home security systems, and even gardening help can really add up each month. One tip: title companies often have lists of service providers that can help you estimate your total monthly costs before you buy.
Buying a home in 2025 is exciting, but it’s easy to get blindsided by these hidden costs. If you’d like to have an exploratory conversation about buying a home in the current market, feel free to send me a message at [email protected]. I’ll get right back to you.
