The Hidden Costs of Buying a Home (and How to Prepare for Them)

Spoiler alert: It’s not just the down payment.

Buying your first home is exciting—like Pinterest boards, open house tours, and imagining where the couch will go. But as dreamy as it is, it’s also one of the biggest financial moves you’ll ever make. And while most buyers focus on the down payment, there are quite a few hidden costs that can sneak up if you're not prepared.

Don’t worry—I’ve got you covered. Here are the most common hidden costs of buying a home and how I help you plan for them so there are no surprises at closing.

1. Closing Costs

What it is: Fees tied to finalizing the purchase—think lender fees, attorney fees, title insurance, and taxes.
What to expect: Typically 2–5% of the purchase price.
How I help: I’ll provide an estimate early on so you’re not blindsided, and I’ll help negotiate seller contributions whenever possible.

2. Home Inspections & Appraisals

What it is: A professional home inspection (paid by the buyer) uncovers any potential issues, while the appraisal confirms the home’s value for the lender.
What to expect: $400–$700 combined.
How I help: I connect you with trusted, local inspectors and make sure you understand every part of the process—and the report.

3. Earnest Money Deposit/ Due Diligence Fee

What it is: Earnest Money is a “good faith” deposit showing you’re serious about buying—applied to your closing costs later.

Due Diligence is is a non-refundable fee paid by the buyer directly to the seller at the time a home purchase contract is signed. It gives the buyer the exclusive right to investigate the property (inspect, appraise, secure financing, etc.) during a negotiated due diligence period—essentially buying time to decide whether to move forward with the purchase. If the buyer closes on the home, the fee is credited toward the purchase price. If the buyer backs out after the due diligence period, they lose both the fee and any earnest money. If they back out during the due diligence period, they only lose the due diligence fee.

What to expect: Earnest Money is typically 1–2% of the purchase price, due soon after your offer is accepted.  In North Carolina, typical due diligence fees range from $500 to $2,000, but the exact amount can vary based on market conditions, location, and price point. In competitive markets it’s not uncommon to see $3,000–$10,000+ in due diligence for highly desirable homes. Higher fees can make offers more attractive to sellers because it shows the buyer is serious.

Ultimately, both amounts are negotiable—but the stronger the market, the higher these costs tends to be in order to make your offer competitive.

How I help: I guide you on how much to offer, when it's due, and what protections are in place to keep it secure.

4. Moving Expenses

What it is: The cost of getting your belongings from A to B (and possibly into temporary storage).
What to expect: Varies by distance and services—but often a few hundred to a few thousand dollars.
How I help: I can recommend reliable local movers and help you create a moving timeline that reduces stress and surprise costs.

5. Utility Setups & Deposits

What it is: Starting service for water, electric, gas, internet, etc., often requires setup fees or deposits.
What to expect: $200–$500 or more, depending on providers.
How I help: I provide a checklist with contact info for local providers so you’re not scrambling at the last minute.

6. HOA Fees (If Applicable)

What it is: Monthly, quarterly, or annual fees for neighborhood amenities or maintenance.
What to expect: Can range from $100 to $600/month (or more).
How I help: I make sure HOA details are disclosed upfront and factored into your monthly budget.

7. Immediate Repairs or Upgrades

What it is: That leaky faucet, outdated light fixture, or new locks you want to install right away.
What to expect: Varies—but plan to set aside $500–$2,000 just in case.
How I help: During inspections, I’ll help you identify what’s urgent vs. what can wait, and we’ll negotiate with the seller for necessary repairs.

💡 Pro Tip: Plan for the "After" Budget Too

Once you're in the home, you may want new furniture, fresh paint, or landscaping. It adds up quickly. Let’s build a budget together that includes the fun stuff too—without draining your savings.

🤝 Buying Your First Home? You’re Not Alone.

I love working with first-time buyers because I remember exactly how it felt—exciting, confusing, and a little overwhelming. My job is to make sure you feel confident at every step, including the financial side.

If you’re thinking about buying but not sure where to start, let’s connect. No pressure, just real talk—and a plan you can trust.

And remember, there are lots of programs, loan types and financial assistance to make purchasing a home less costly for first time homebuyers! I can help you with that!

Ready to chat about your homeownership goals?
👉 [Let’s schedule a no-stress buyer consult today.]