A new study released on Mar. 25 reveals that recent homebuyers spent an average of $31,502 on additional expenses beyond their down payment, nearly four times the roughly $8,000 they had expected to pay.
The findings highlight the importance for buyers to plan for significant extra costs when purchasing a home. Many first-time buyers were caught off guard by these expenses and found themselves exceeding their budgets.
According to the report from Best Interest Financial and Clever Real Estate, based on a survey of 1,000 recent home buyers, common post-purchase expenses included about $15,073 for repairs and improvements during the first year of ownership. Buyers also reported paying an average of $7,678 in concessions to sellers, $5,719 in closing costs and $3,032 in moving costs. First-time buyers spent even more on repairs—an average of $16,000—and were more likely than repeat buyers to purchase fixer-uppers.
Overall, 73% of surveyed buyers said they would have made different decisions if they had known about these extra costs beforehand. Many expressed regret over not negotiating more or underestimating post-purchase expenses. The most surprising costs reported were repair and upgrade fees (18%), closing costs (16%), property taxes (14%), moving expenses (12%), homeowners insurance (9%) and ongoing maintenance (8%). Looking back, many said they would have budgeted around $38,000 for additional home-buying costs.
Real estate professionals can help clients better prepare by reviewing inspection reports closely with them or bringing contractors in early to estimate potential repair bills. Agents are also encouraged to help buyers gather estimates for utilities as well as homeowner association fees and insurance while planning their budgets.
Ohio Realtors supports the real estate community through charitable efforts like the Ohio REALTORS Foundation which offers scholarships and assistance according to the official website. The organization represents more than 40,000 real estate professionals across all 88 counties via 30 local boards according to its official website. It is directed by a board comprising elected leaders from within the sector according to its official website and aims to empower professionals with advocacy efforts at both state and federal levels while upholding high ethical standards according to its official website.
