Hidden Costs of Buying a Home Most Buyers Don’t Know

Mark Hicks
Jun 18
2 min read

Buying a home is one of the biggest milestones in life—and one of the largest financial decisions. While most buyers focus on the down payment and monthly mortgage, they often overlook the hidden costs of buying a home that can catch them off guard.

At Seabrooke Group, we’re here to ensure our clients are fully informed and financially prepared before making the leap into homeownership. Let’s break down the unexpected home buying expenses you should know about.

Hidden Costs of Buying a Home Most Buyers Don’t Know

1. Closing Costs for Home Buyers

Closing costs typically range from 2% to 5% of the home’s purchase price. These include:

Title insurance fees
Escrow fees
Loan origination charges
Attorney fees (if applicable)

At Seabrooke Group, we help you review these documents in detail so there are no surprises at the closing table.

2. Home Inspection and Appraisal Fees

Before you finalize your purchase, you’ll need:

A home inspection, which can cost anywhere from $300–$600
A home appraisal, often required by lenders, costing $400–$700

While these may seem like small amounts compared to the home price, they are non-refundable, even if the deal doesn’t close.

3. Property Taxes When Buying a Home

Property taxes are pro-rated at closing and vary widely by location. In California, the average property tax rate is about 0.73%, but this can differ depending on the county or city.

With Seabrooke Group, you’ll get a clear estimate of what your yearly and monthly property tax bills will look like so you can plan ahead.

4. HOA Fees Explained

If you're buying in a planned community or condo, you may be subject to Homeowners Association (HOA) fees. These cover shared services like:

Landscaping
Pool/gym maintenance
Community repairs

Some HOAs charge a few hundred dollars per month, so it’s essential to factor this into your monthly budget.

5. Maintenance Costs for New Homeowners

Your new home may be move-in ready, but no house is maintenance-free. Expect to spend:

About 1% of the home’s value annually on maintenance
Immediate fixes like plumbing, HVAC servicing, or appliance replacements

We help our clients prepare for these long-term homeownership costs, especially first-time buyers.

6. Moving and Utility Setup Costs

Don’t forget:

Moving expenses (truck rental, movers, packing supplies)
Utility setup fees (electricity, water, internet, trash services)

These costs can easily add up to $1,000–$3,000, depending on the size of your move and distance.

7. Homeowners Insurance Cost

Most lenders require homeowners insurance before finalizing your loan. Premiums vary based on:

Location
Property value
Coverage type

Our team at Seabrooke Group can connect you with trusted insurance partners to help you compare and save.

Let Seabrooke Group Guide You Every Step of the Way

At Seabrooke Group, we believe an informed buyer is a successful homeowner. Our team walks you through every step of the process—from budgeting for mortgage-related fees to understanding unexpected home buying expenses.

We serve clients across California, specializing in first-time buyers, relocation assistance, and tailored home searches to fit your lifestyle and budget.