Don’t let commonly overlooked expenses derail your budget when buying a home.

The costs of homeownership go beyond mortgage, taxes, utilities and insurance—especially in the first year. Plan for the expenses many people overlook to reduce or avoid budget strains.

Moving expenses

Even a DIY move a mile away will incur expenses. At a minimum, you’ll use packing supplies and will want to thank the friends helping you with a meal and beverages—pizza and beer, traditionally.

If your move includes a rental truck or movers, you should expect to pay at least $150 plus tips for those doing the heavy lifting of moving your stuff.

Furniture that functions in your new space

Furniture usually fits in a new home but not always. An oversized sectional may be out of scale in your living room. Or, your new home may feature a patio that needs comfy deck chairs to be fully enjoyed.

Every home gets organized differently

There’s no standardization when it comes to home storage. For example, your new home’s bathroom may lack built-in storage, requiring the purchase of storage containers, shelves or cabinets to keep your towels and toiletries organized. Plan on the need to buy at least a few organizational items.

Appliances

Often, large appliances like washers, dryers, dishwashers and refrigerators are included with a home sale but not always. Sometimes a microwave is built in or left by the former homeowners. Any appliances not included in the sale need to be included in a homebuyer’s budget.

Also, be prepared that any appliance, new or used, may need repair at any time.

Professional services

Certain home systems work best with annual servicing by a professional, like HVAC systems. A sprinkler system may need spring and fall services. If pests like ants or mice try to move in, you may need a pest control expert. Expect each service to be between $100 and $250 at the least.

Décor updates

One of the most attractive things about owning a home for many people is controlling the décor. New paint, carpet, window coverings and accessories all help make a house feel like home. They also need to be included in your budget.

Lawn and exterior care

If you previously rented your home, the cost of lawn and exterior care can be a surprise. Mowing, power washing, snow removal, landscaping and driveway maintenance are the typical tasks. Hiring professionals is always an option, but if you’re able to, doing these jobs yourself can help save a lot of money.

One way to reduce the sting of first-year home expenses is to set aside money in a dedicated savings account ahead of time. Then, as the need for things like furniture and professional services arise, you can do what needs to be done without worrying about finances.

 

All loans subject to approval. Rates, terms and conditions are subject to change and may vary based on credit worthiness, qualifications and collateral conditions. Federally insured by NCUA.