People are often surprised by how much it costs them to move house. It’s common to underestimate the expenses and be unprepared for the move. If you’re planning on moving home soon, don’t get caught out. You can make sure you have enough money saved up by knowing the typical expenses involved. Whether you rent or own your home, there are a number of costs that can all add up until you spend more than you thought you would. From mortgage costs to movers, more money can go into it than you might expect. Think about the typical expenses below to make sure you don’t get caught out.
Estate Agent and Letting Fees
Whether you’re buying or renting your new home, you’ll have to pay a fee to the agency you use. You won’t pay the agent for helping you find somewhere to buy, but chances are you’re selling at the same time. And the realtor will be taking a percentage of the sale price, so don’t forget to factor that in. When you rent, you’ll need to pay when you sign the contract, and there could be other costs too. You might have to pay property management fees, for example.
Deposit/Down Payment
Most of the time, you’re not going to be able to rent or buy a home without securing your place. And you have to do that with money. You’ll need a down payment if you’re buying, and a security deposit if you’re renting. The average down payment on a house fluctuates, but it’s usually between 15% and 20%. When you’re renting, the security deposit can vary. Make sure you check your state’s rules on how much your landlord can charge and what they have to do with your money.
Mortgage Costs
Your mortgage costs can add up too, whether you’re moving it over from your old property or getting a new one. There can be various fees and insurance to cover to make sure both you and the bank are protected. Plus, you might want to use a mortgage broker to help you get the best deal.
Moving Costs
When it’s finally time to move into your new home, the expenses can add up. Even if you decide to do it all yourself, you need to hire a truck to move everything. Choosing some movers to help you will make things easier, and you can look for the best deal available. They can also help you pack and provide you with boxes, which can reduce the cost of moving materials. You might also need to buy extra insurance for your things, although the movers often provide it.
Utilities
When you get to your new home, it can cost more money to get it set up. You need to get your utilities switched on, and perhaps choose a better provider. Sort out your energy, internet and anything else you need to switch over to make your home habitable.
Make a list of all the things you need to pay for when you leave to make your budget more accurate. Moving will be less stressful if you’re prepared for the financial side of it.
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