“The Most Overlooked Costs When Buying a Home”

Buying a home is one of life’s most exciting milestones — but it’s also one of the biggest financial commitments you’ll ever make. Most buyers focus on the down payment and monthly mortgage, but there are many other costs that can sneak up if you’re not prepared.

To help you plan with confidence, here are the most common (and often overlooked) expenses that come with buying a home.

1️⃣ Closing Costs

Once your offer is accepted, you’ll face closing costs — the collection of fees paid to finalize the sale. These typically range from 2% to 5% of the home’s purchase price and can include:

• Loan origination fees

• Title insurance and escrow fees

• Appraisal and inspection costs

• Attorney or notary fees

• Prepaid property taxes and homeowner’s insurance

💡 Pro Tip: Ask your lender for a Loan Estimate early in the process — it breaks down your expected closing costs so you’re not caught off guard.

2️⃣ Home Inspections & Appraisals

Even though inspections and appraisals are smaller one-time expenses, they’re essential for protecting your investment.

• Home inspection: ₱15,000–₱25,000 on average (depending on size and complexity)

• Appraisal: ₱10,000–₱20,000 depending on your lender and location

Skipping these can cost you much more later if hidden issues arise.

3️⃣ Moving Expenses

From hiring movers to setting up utilities, the cost of moving can quickly add up.

• Professional movers: ₱20,000–₱60,000+ depending on distance and volume

• Packing materials, truck rentals, and temporary storage can add thousands more

• Don’t forget deposits for electricity, water, and internet setup

Planning ahead helps keep moving day stress (and costs) under control.

4️⃣ Property Taxes & Homeowner’s Insurance

Many first-time buyers forget that owning a home means recurring annual costs:

• Property taxes are usually paid monthly through your mortgage escrow and vary by location.

• Homeowner’s insurance protects your property and is required by lenders.

💡 Tip: In areas like coastal Florida, you may also need flood or hurricane insurance, which can be a significant additional expense.

5️⃣ HOA Fees (If Applicable)

If you’re buying in a condominium or planned community, expect Homeowners Association (HOA) fees. These cover shared amenities, maintenance, and security — and can range from ₱5,000 to ₱25,000+ per month, depending on the property.

Always review HOA rules and budgets before you buy to avoid unpleasant surprises.

6️⃣ Maintenance & Repairs

After you move in, the real expenses begin — maintenance. Experts recommend budgeting 1–3% of your home’s value each year for repairs and upkeep.

Examples include:

• Routine servicing (aircon, plumbing, pest control)

• Appliance replacements

• Roof, paint, or landscaping upkeep

Older homes and larger properties generally cost more to maintain.

7️⃣ Utilities & Upgrades

From higher utility bills to personalization projects, homeowners often underestimate these costs:

• Water, power, garbage, and internet services

• Furniture, curtains, and décor for extra rooms

• Upgrades like smart thermostats, security systems, or energy-efficient lighting

Small improvements can add up — but planning for them in advance makes them manageable.

✅ Final Thoughts

Buying a home isn’t just about affording the down payment — it’s about being financially ready for everything that comes after.

By planning ahead for these often-overlooked costs, you’ll avoid financial strain, enjoy your new home stress-free, and feel truly ready for homeownership.

A great realtor and lender can help you understand these costs upfront — so your dream home doesn’t come with unexpected surprises.