4 Sneaky Expenses for New Homeowners

When budgeting for a new home, there’s a tendency to focus on saving up for the down payment and closing costs. You may have also factored in the ongoing costs of your mortgage, insurance and property taxes.

But those aren’t the only expenses you need to consider — here are four first-year expenses that should be included in every new home budget that are often overlooked.

1. Furniture

Even if you own furniture, it may not suit or properly fill your new living space. The National Association of Home Builders (NAHB) estimates that the typical buyer spends up to $3,000 or more on furnishings within the first year of homeownership. Keep in mind that this estimate is based on pre-pandemic data and doesn’t account for post-pandemic inflation.

2. Appliances

According to the NAHB, the typical homeowner spends anywhere from $768 to $1,870 on appliances within the first year. But that cost can go much higher depending on the type and number of appliances required.

Since large appliances like refrigerators, washers and dryers aren’t always included in the home sale, it’s best to estimate on the high end. Even if appliances are included in the sale, many buyers find themselves replacing or upgrading in the first year.

3. Lawn Care

Forbes estimates that the typical lawn mowing service charges between $50 and $250 per visit. A quick online search reveals that push mowers cost around $200 while riding mowers cost around $2,000 or more. Despite the steep upfront costs, doing it yourself could net significant long-term savings.

4. Remodeling

Your average remodel can cost anywhere from about $3,000 to $30,000 depending on which room you’re remodeling and the materials involved. Generally speaking, bedrooms are the least expensive projects, while kitchens and bathrooms tend to be more expensive.

Planning a home improvement project of your own? Reach out to discuss your financing options.