The purchase price is often the biggest number home buyers focus on. But there are far more expenses, including the hidden costs of buying a home. Recent home buyers spent an average of about $31,500 on expenses beyond their down payment. That was nearly four times what they expected, according to a 2026 survey from Best Interest Financial and Clever Real Estate.
In addition to planning for home buying costs, you’ll want to prepare for the full costs of home ownership to avoid surprises, advises Mary Harmon Young, an associate broker with eXp Realty in Tuscaloosa, Ala. “My goal is always for a buyer to understand not only ‘can I afford to buy this house?’ but also ‘can I comfortably own this house?’”
Costs Beyond the Down Payment
Home buyers participating in the survey pointed out some of the steepest expenses beyond their down payment:
- Repairs and improvements during the first year of ownership: $15,073
- Concessions to the seller (for example, paying the seller’s closing costs or paying more than the appraised value): $7,678
- Closing costs: $5,719
- Moving costs: $3,032
Costs of Owning a Home
Figuring long-term costs is part of planning. “We’re trying to understand what that house will likely ask of them financially over the next five, 10 or 20 years,” Young says.
These areas can have strong impact:
- Taxes: “Taxes can materially change what a house actually costs every month,” says Shane Brady, a real estate professional with Keller Williams in Boston. For example, he himself recently bought a condo with property taxes of about $13,000 annually.
- Homeowner association and condo fees: One of Brady’s real estate buyers was drawn to a Boston-area condo with a lower list price, but the property carried $2,700 monthly in condo fees. That totaled about $32,000 a year, making the home unaffordable to his buyer.
- Home construction, systems and features: Age and condition affect current and future costs. Older windows may be less energy-efficient and lead to higher utility bills. Brick homes may cost more upfront but require less routine maintenance.
How a Home Inspection Can Help You Prepare
Repairs and renovations were the largest unexpected expense buyers encountered, according to the survey. Home inspections can help you identify immediate repairs, anticipate future expenses and cover the costs.
- Negotiate seller credits: Melissa Bailey, a sales team lead at Real Broker in Phoenix, says she used her buyer’s inspection results to negotiate $3,500 in seller credits for repairs.
- Bring in inspection specialists: Bailey encourages buyers to hire specialists when needed, such as a structural engineer for a foundation crack or an HVAC professional to evaluate an aging system.
- Create a five-year capital plan: Use the inspection to create a five-year capital plan, accounting for the age and condition of the home’s major systems, like the HVAC, windows and appliances, Brady says. A 20-year-old roof, for example, isn’t reason to walk away from a home, but buyers should anticipate replacing it soon and budget accordingly, he adds.
- Get a home warranty: A home warranty can cover certain repairs or replacements of systems and appliances that break down from normal wear and tear. Bailey says one of her clients had a water heater that exploded two nights after moving in, and the warranty helped cover the repair.
How Much Money Should I Have to Buy a House?
A rookie mistake is putting every last dollar toward the down payment. That leaves little cash for after closing. More than 80% of homeowners say they’ve experienced a home repair emergency in the past year, yet 30% had $500 or less saved for repairs, according to HomeServe’s 2026 State of the Home Survey. More than 12% had nothing saved, the survey found.
Fannie Mae recommends annually budgeting a percentage of a home’s value for maintenance and repairs — 1% for newer homes and 4% for homes 30 years or older. On a $350,000 home, that’s $3,500 to $14,000 a year.
Plan for These Expenses When Buying a House
Here are basic expenses to plan on when buying a home:
- Mortgage principal and interest, plus private mortgage insurance if applicable
- Property taxes
- Homeowners insurance
- HOA dues and potential special assessments
- Utilities
- Routine maintenance
- Expected repairs based on the home’s age and condition
- Closing costs
- Moving expenses
- An emergency fund covering three to six months of expenses
Overall, recent buyers surveyed said they wished they had saved about $38,000 beyond their down payment for additional expenses. But the costs of owning a home can vary widely by property, location, age and condition.
Real estate agents say they can help buyers identify hidden costs of buying a home. “We can help buyers notice the things that may eventually affect their budget,” Young says. “And [we’ll] encourage them to get estimates, insurance quotes, utility information or additional expenses before making a final decision.”
Melissa Dittmann Tracey is an award-winning journalist covering the housing market. You can hear her weekly as the host of Real Estate Today. She is also the creator of the Styled, Staged & Sold blog and a contributing editor for REALTOR® News. Follow her on Instagram @housingmuse.
