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This week’s Q&A column is sponsored and written by Darlene Duffett of Corcoran McEnearney, the leading real estate firm in Alexandria. To learn more about this article and relevant Alexandria market news, contact Darlene at 703-969-9015 or visit her website, darleneduffettrealestate.com. You may also submit your questions to Corcoran McEnearney via email for response in future columns.

Question: I’ve heard there are lots of hidden costs when buying a home. Can you tell me what they are?

Answer: When most people start their homebuying journey, they tend to focus on the headline numbers—purchase price, down payment, and mortgage rates. But there’s a whole category of additional costs that some people like to consider “hidden” costs. But after reading this article you will now know them, so they will not be “hidden” anymore. I’m hoping this helps buyers be prepared and not surprised as these expenses aren’t necessarily secret, but they’re easy to overlook if you’ve never gone through the process before. The good news? With a little planning and guidance, you can stay ahead of them and move into your new home with financial confidence.

INSPECTION COSTS

One of the first out-of-pocket costs you’ll encounter is the cost of any inspections. This can include, but is not limited to, home inspection, wood destroying insect inspection (often called termite inspection), radon inspection, mold inspection, chimney inspection, sewer scope inspection, and well or septic inspection (which we don’t encounter often inside the beltway).

As you construct your offer to purchase a home you may include one or some of these. We have seen them far less in the last few years with the competitive market but if the market shifts, we will see more. The most common type of inspection is the home inspection. A typical home inspection is performed by a licensed inspector who will assess the condition of the property and look for issues that could end up costing you money if left unaddressed—things like roof problems, foundation cracks, outdated electrical systems, or plumbing issues. These can add a few hundred dollars to your upfront costs, but they’re well worth it for peace of mind. It’s tough to list prices for each of these inspections as they are based on the size of the home or system, but a typical home inspection can run from $300 for a 1-bedroom condo into thousands for luxury homes.

HOME APPRAISAL

Another expense that could catch buyers off guard is the home appraisal. If you’re financing your purchase with a mortgage, your lender will most likely require an appraisal to confirm the value of the home. This protects both you and the lender by ensuring the loan amount aligns with the property’s market value and the bank will only lend on the appraised value. Although it’s part of the loan process, the appraisal fee is typically paid by the buyer out of pocket and usually ranges between $500 and $800 or higher for luxury properties.

On occasion the lender may be able to obtain an appraisal waiver if the property is valued under one million dollars. Many factors play into this as the loan is run through an Automated Underwriting System, and there are many requirements including percent down, credit score, income, debt-to-income ratio, and if it is a primary residence or secondary home.

CLOSING COSTS

Perhaps the most significant hidden costs are what’s known as closing costs. These are the fees and charges associated with finalizing the home purchase, and they can add up quickly. Closing costs usually include things like loan origination fees, title insurance, title search, escrow fees, attorney fees (if applicable), transfer taxes, and prepaid expenses such as homeowners’ insurance and property taxes. In our market, buyers can expect to pay between 2% and 4% of the purchase price in closing costs. On a $600,000 home, that’s anywhere from $12,000 to $30,000—an amount that should be factored into your homebuying budget.

MOVING COSTS

Once you’ve made it through closing, it’s time to move—and that comes with its own set of expenses. Moving costs vary greatly depending on how far you’re going, how much you’re moving, and whether you hire professional movers. Local moves may cost a few hundred dollars, while long-distance or full-service moves can run into the thousands. Don’t forget to consider other move-related expenses too, such as storage fees if you’re in transition, utility connection deposits, or temporary lodging if your move-in date doesn’t line up perfectly with your closing date.

IMMEDIATE HOME EXPENSES

Immediate home expenses are usually personal decisions if your home is not new or move-in-ready. Decide what you can live with for a little while or if it is something you can do yourself in your free time. These can include new appliances, painting, replacing flooring, window treatments, or updating fixtures. You might need to buy basic tools, lawn equipment, or hire landscapers to maintain the property if you are moving from a condo to a detached home.

Personal Note: The first thing I recommend is having the locks changed right away for security. You have no idea what neighbors or friends have keys to your home.

HOA OR CONDO FEES

If you’re buying a home in a planned community, condo building, or townhome development, you’ll also need to pay for Homeowners Association (HOA) or Condo fees. These are recurring fees that cover the maintenance of shared spaces and amenities. In some cases, they also include services like snow removal, trash pickup, or exterior maintenance. HOA dues and condo fees can vary significantly—from as low as $50 a month to several hundred dollars—and should be factored into your monthly budget just like utilities or a car payment.

In the end, buying a home is a powerful and rewarding step toward building long-term wealth—but it’s also a financial commitment that extends beyond the purchase price. By budgeting for these ahead of time, you’ll not only be prepared—you’ll be positioned for success and stability in your new home.

If you’re starting the homebuying process and want expert guidance every step of the way, I’d love to help! From budgeting tips to referrals for trusted lenders and inspectors, I make sure my clients have the full picture—so there are no surprises, just smart decisions.

Darlene Duffett is a licensed real estate agent in Virginia with Corcoran McEnearney in Old Town, Alexandria. She is licensed in Virginia and Washington, D.C. She has built a reputation of partnering with her friends and clients throughout the home buying or selling process. If you would like more information on selling or buying in today’s complex market, contact Darlene at 703-969-9015, [email protected], or visit her website DarleneDuffettRealEstate.com.

If you would like a question answered in our weekly column or to set up an appointment with one of our associates, please email: [email protected] or call 703-549-9292.

Corcoran McEnearney, 109 S. Pitt Street, Alexandria, VA 22314, corcoranmce.com. Each office is independently owned and operated. Equal Housing Opportunity.