Thinking of buying a bigger home? Does your current house feel too cramped?
Before making the leap to larger accommodations, factor in these 13 added costs that come with upsizing. By putting together a realistic estimate of how much more money you will spend when going bigger, you can determine if an upgrade will work financially.
Consider These Buying Bigger Home Costs
Moving Expenses-Off the top, calculate what you reasonably expect it will cost to move your stuff to a larger place. Get actual estimates so that you have a realistic idea of the costs. Factor into expenses, what you will need to pay to get services disconnected and reconnected at the new abode.
Increased Mortgage Payments-Unless your are transitioning to a significantly lower interest rate on your mortgage loan or have a big down payment to offer, expect higher monthly mortgage payments. Also, if you will be borrowing a greater sum than on your current home, expect increased closing costs on the purchase.
Higher Property Taxes-With a bigger house comes a larger property tax bill as taxes are generally levied based on the value of the property.
Growing Home Insurance Premiums-Stepping up in square footage means paying more for coverage.
Larger Energy Bills-The more square feet to heat and cool, the higher the cost.
Potentially Higher Water Bills-Does the larger home you are considering, come with a bigger lawn? If so, factor in considerable increases in your water bill to keep the grass green and the shrubbery looking pretty. Also, if the upgrade includes a pool, expect that water bill to head skyward.
Greater Replacement Costs-For example, putting a new roof on a 1600 sq. ft house generally will cost quite a bit less than on a 3000 sq ft. house. The bigger house requires more materials and man hours for a roof replacement.
Another example is replacement of the air conditioning or heating unit. A bigger place means a bigger unit(s) and greater sticker prices.
Increased Furniture Bills-Unless the smaller place that you are moving from is already crammed to the ceiling with furniture and other home decor, you can count on needing to purchase more to help fill up your larger place. And in all likelihood, even if you do have lots of furnishing already, you will want some new things to jazz up the place.
Other costs to research before buying a bigger home include neighborhood association fees, renovation expenses, lawn service, housekeeping, and new equipment (taller ladders, riding law mower, etc..) that you will need to maintain your home.
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