4 unexpected first-time homebuyer costs in North Hampton

Relocating to a new home for the first time can be a very expensive experience. Mainly, there is the cost of moving itself and everything that goes with it. From getting the proper materials for packing to finding the best movers in NH for the job. But before that, you actually have to purchase a home itself. Many people don’t often realize just how high homebuyer costs in North Hampton can be. Some costs, such as mortgages, for example, are pretty predictable. Others, however, like taxes, insurance, and utilities, often catch people by surprise. According to research from 2017, an average homeowner can spend over $9000 per year on hidden and unexpected maintenance costs. The last thing you want is to fall in love with a home and then realize that you simply can’t afford to live there. We’re here to help you prepare for when the bills start arriving.

Homeowners insurance is among the highest homebuyer costs in North Hampton

The very next step after getting a mortgage is to get homeowners insurance. Even if you’re not getting a mortgage and paying for your home in cash, you should still get insured. The best method is to buy a replacement cost policy. This form of insurance covers the cost of replacing all the items that get damaged or lost. This is a much better alternative to insurance which only gives you the depreciated value of your lost items. According to research, the average annual insurance in 2018 was around $1200. Of course, the final results varied based on the area and value of the listed homes. To save yourself a lot of time doing research and making phone calls, be open with your insurance agency.

person trying to calculate homebuyer costs in North Hampton
Prepare to tackle insurance fees when buying a home for the first time

Ask about the discounts you can get, which include premium reductions for security systems, and bundling your home and auto insurance policies. Lastly, be aware that the homeowners’ insurance has its limits. Just like with using storage North Hampton NH, the contract protects your home and anything within it. However, if you’re buying a condominium, a liability rider might be necessary for accidents that happen on shared property. Furthermore, if you live in a flood zone or an area with a risk of earthquakes, you will need additional protection.

Closing costs are a tricky hurdle to overcome

Once you’re done dealing with all of the papers you need for your house mortgage, the last step you have to go through is Closing. This step stands between you and your house keys after your loan is approved and the home inspection is over. When everything is good and done, you’ll have a closing meeting with your agent. Here, you will sign the final paperwork and pay a long list of expenses, which include, but are not limited to:

  • Mortgage interests
  • Tax, insurance, and other escrow payments
  • Attorney’s fee
  • Lender application fee
  • The insurance policy for the house deed
  • Recording fees for the county clerk’s office
  • Any real estate tax reimbursements, in case the seller has paid them upfront
small plant stemming from a pile of coins
Plan your moving budget with closing costs in mind

All things considered, you’ll be looking at numbers averaging around 2 to 5% of your home’s total cost. Still, keep in mind that these costs can vary from state to state. While one county might charge you $20 per page in recording fees, another county might charge you as low as $5. Keep this in mind when planning your family move budget. It is also important to note that your initial loan estimate will have a rough figure of your total closing costs. However, these prices won’t be final until the official closing time. Although they are a good estimate for planning your budget, don’t rely on them as the final number.

Home maintenance is among the most common homebuyer costs in North Hampton

When you do all of the calculations, you can expect to pay around 1% of your home’s total value on maintenance per year. However, as with all other costs, this number can vary. The yearly upkeep of attached townhomes and condominiums tend to be much lower than those of single-family homes on their own piece of land. In most cases, the maintenance costs for a homebuyer in North Hampton are yard cleaning, house care, pressure washing, and gutter cleaning. But again, even these prices vary depending on the area you’re in. When it comes to first-year costs, your real estate agent and home inspector can help you figure out the routine maintenance costs in your area.

family home in the suburbs
Maintenance costs are always present and constantly vary

These costs can be around a few hundred dollars per month and should be considered in the long-distance house-hunting process. The national average for all of the maintenance and utility costs is around $6000. The best way to get a better picture of just how much you will have to pay is to compare notes with a friend who lives in your neighborhood. Ask them to take a look at their monthly maintenance costs and see what you can expect on a yearly level. Of course, take into consideration the differences in your home sizes, as well as any added services they might have compared to you.

Property taxes are a constantly varying factor

One of the ever-present and unavoidable homebuyer costs in North Hampton is property taxes. These calculations come from the value of your property, as well as the size of your home, among other things. The tricky thing with property taxes is that they don’t vary from state to state, but from town to town. And even then, they aren’t stagnant. They can increase or decrease based on many different factors. Anything from city regulations to the tax values of different neighborhoods can have an effect on the final number. Luckily, the Tax Foundation has developed a tax data lookup tool with which you can see the numbers for your area, and plan your budget. If you think your taxes are higher than they should be compared to neighboring homes, you can hire a lawyer to help with tax assessment. Alternatively, you can do this yourself and avoid the legal fees.