While selling your old home to buy a new one may sound like a simple process, multiple factors constitute towards the moving costs. It isn’t just the difference between the sale price of your old home versus the money spent to buy the new property. In fact, there are numerous hidden costs to consider.
Home Buying Costs
Apart from the mortgage costs that you will be paying in principal and interest per month, services like the buyer’s agent fee, appraisal, and inspection costs along with the real estate attorney fees have to be considered as well.
Moving costs are usually disregarded as one-time costs but if you haven’t planned it well, things can go wrong. Expenditures for packing, storing and transporting your belongings can be significant, especially if one is moving across the country.
Remodeling and Maintenance Costs
As you move into your new home, remodeling or upgrading the property along with the maintenance costs can cause a serious dent in your pocket. It is therefore advisable to follow the standard rule of thumb of budgeting at least 1% of your home’s purchase price per year as home maintenance costs.
A new home will need setting up your telephone, cable TV, electricity, the Internet, gas and water and hence you need to consider a budget for the same. The costs could go higher if you are moving into a bigger house.
Property taxes along with other taxes vary from region to region. If higher tax rate in your new location affects your purchasing power significantly, the savings get disturbed, thus derailing your meticulous planning.