Congratulations on the purchase of your first home! Unfortunately, buying a home doesn’t mean the end of significant cash outlays. How well would you be prepared for the routine expenses (and unpleasant surprises) that come with homeownership?
Let’s imagine you’re under contract on a $450,000, three-bedroom home in Coppell, Texas, a family-friendly suburb northwest of Dallas. It has a red brick exterior, real wood floors, a working fireplace, and a backyard with lots of potential.
What’s next?
1. You made a 10% down payment, secured a mortgage, and now it’s time for closing costs. How much are they likely to total?
a) $5,000 to $8,000
b) $12,000 to $20,000
c) $25,000 to $35,000
2. It’s almost time to move in. Your new home is only 20 miles from your old two-bedroom apartment, but you’ve decided to hire professional movers. What will that cost?
a) $400 to $600
b) $1,200 to $1,800
c) $4,000
3. Wait! Before you move in, you want to get the interior repainted. The new house is 1,800 square feet and the walls are in pretty good shape. The cost of professional painters varies, but you should expect to pay:
a) at least $1,800
b) $6,000, which is reasonable
c) as much as $12,000
4. Good news: No more trips to the laundromat because your new home came with an old washer/dryer set (and a vintage refrigerator, to boot). The bad news is that they work but are outdated. How much would it cost to replace all three with new basic models?
a) $2,600 to $3,600
b) $3,000 to $4,500
c) $4,000 to $6,000
5. As the movers are bringing in your furniture, a bookcase falls over and puts a hole in the drywall. Ugh! Hopefully, your movers’ insurance covers the repair, but if not, having an experienced maintenance person fix it will run you at least:
a) $25 an hour
b) $35 an hour
c) $75 an hour
6. Spring comes, your flowers bloom, and your trees leaf out — except for one. If it’s dead, how much will it cost to remove it?
a) $1,000
b) $3,000
c) $6,000
7. The new house is so cozy, even mice find it irresistible. You saw a couple of them in the kitchen. How much will the exterminator cost?
a) $300
b) $650
c) $2,500
8. After the mouse episode, you could use a little help to bring back the good vibes. Which of these are real professionals one can hire?
a) Digital handyman
b) Feng shui consultant
c) A baby-proofing expert
d) Ghost nanny
9. Summer was scorching, and it would be great to have a pool to cool off in next year. What’s the minimum it will cost to have one put in?
a) $10,000
b) $35,000
c) $75,000
10. Speaking of temperature, autumn brings cooler weather and vibrant colors to the trees in your yard, but when their leaves fall they can clog your gutters. Your house is one-story, with a gently sloped roof and a simple rectangular form. What is the cost of getting the gutters cleaned and serviced?
a) $400
b) $800
c) $1,500
11. Pumpkin-spice lattes are back on the menu in the fall, but just when the cold weather makes a hot bath sound nice, your water heater goes out. How much will a new one cost?
a) $700
b) $1,200
c) $2,500
12. How lovely, your home has a working fireplace! But the previous owners hadn’t used it in years, so before you light up, have it inspected and get any necessary repairs done. The cost?
a) $100
b) $1,000
c) $5,000
Answers
1) b Exact closing costs vary, but 3% to 5% is typical. These costs cover inspections, lawyer fees, interest adjustments and other final flourishes. Although these expenses can’t be avoided, they can sometimes be rolled into the mortgage loan — something to inquire about at the start of the process.
2) b You can avoid some moving costs by packing your own boxes or using casual for-hire services. But one important reason that professional movers are more expensive is that they typically provide insurance. Ask what’s included in the coverage and whether they are familiar with your new neighborhood. Some communities also put restrictions on the times and days when move-ins are allowed.
3) All of the above! When you hire painters, you’re paying for their skill and experience. You’re also paying for the paint itself, and the price per gallon has gone up considerably this decade. Expect to pay $2.50 to $6 per square foot, depending on the complexity of the job and optional add-ons like having the doors painted. Good luck choosing which white shade you want for the ceilings and trim, though.
4) a Expect to spend at least $700 apiece on a new dryer and washer and $1,200 for a basic French-door refrigerator (though tariffs may soon increase those figures). With budget a priority, the smart money is to replace the always-running refrigerator first. A Department of Energy calculator lets you estimate the five-year electricity savings from a new Energy Star fridge based on the age of the one it replaces. It can be hundreds of dollars.
5) c Having reliable maintenance people can be essential to homeownership. Asking neighbors for personal recommendations is the classic way to find help, but don’t hire people without interviewing them first. Do they guarantee their work? Accept electronic payments or only cash? Have a list of references to share? And of course, there are a lot of projects you can tackle yourself. Including patching walls.
6) All of the above Any of the above, and possibly less or more, depending on many factors: the size of the tree, whether it is overhanging your home or a neighbor’s, the ease of access for the felling equipment, and so on. Get several estimates, and ask whether the whole tree needs to come down or a trim is enough to make it safe. You might even choose to leave it standing.
7) a Many exterminators operate on a subscription model, with a fee for initial inspection and treatment, followed by inexpensive monthly upkeep visits. But you may not need an exterminator at all. If it’s just a few mice in one room, set traps and then make your home inhospitable to newcomers. Be diligent about kitchen cleanliness, and use stainless-steel wool to block entryways, like the gaps where under-sink plumbing enters the wall.
8) Not d, as far as we know But handling things with a little DIY can produce professional results, too. Plumbing fixtures, doorknobs and cabinet handles are easy to swap out and will give your place a fresh look. The same goes for ceiling fixtures — lights and fans both. Add smart bulbs and dimmer switches: They let you customize the lighting to suit your taste.
9) c Pools are truly a big-ticket item, and $75,000 is about the floor for a complete, well-built and code-compliant installation. You can expect to pay $50 to $125 per square foot for the pool itself, depending on the material it is made of (fiberglass is cheaper, concrete is more durable). Decks and fences, which are often required by law, can double the total.
10) a But only because your home’s specific structure is the simplest and cheapest kind to service. Gutters are there to protect your home’s foundation from water damage, so keeping them in good condition is a low-cost insurance policy against potential five-figure structural repairs.
11) a At least $700. If you’re replacing it like for like (electric for electric, natural gas for natural gas), expect to pay about $700 for a no-frills 50-gallon model, and several hundred more for installation. Looking to upgrade? A hybrid water heater, also called a heat pump water heater, can cost $1,700 to $2,200 before installation but can save you thousands of dollars in electricity over a 10-year period.
12) a Your home is in fine structural shape, so your fireplace will most likely require a Level 1 inspection. A certified chimney sweep will check the interior and exterior masonry for basic soundness and ensure that the damper is working and the flue is unobstructed. A chimney in poorer condition would need a Level 2 or 3 inspection. The latter may involve opening interior walls and can cost thousands — even before any repairs are made.
How good is your knowledge of potential homeowner costs?
A) 10-12 Fiscally fantastic! You know what to expect and won’t get sticker shock when bad luck arises.
B) 7-9 Despite a few misses, you understand that surprise expenses are part of owning a home. You just might need to adjust your expectations a little.
C) 4-6 Don’t be discouraged, but do start making a plan. Prioritize necessary — which includes preventive — projects and begin saving for future cosmetic upgrades.
D) 0-3 Hopefully this means you’ve used up your bad luck. But take heart: It’s unlikely your new home will face all these costs in the first year, if ever.