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3 Hidden Costs Of A New Home And How You Can Avoid Them

Nobody in their right mind would say that buying a home is inexpensive or cheap. In fact, it’s probably one of the most expensive purchases a person will make in their lifetime. In 2014, the average sale price of a home was $311,400. That’s no mere drop in the bucket for the majority of homeowners, yet, on average, new homebuyers spend $7,400 more in the first two years of ownership than existing homeowners.

The National Home Buyers Association (NAHB) has found that a home purchase has a ripple effect and makes most new homeowners spend more money on average. This begs the question: where are these hidden costs, and how can you avoid them?

1. Don’t Buy Furniture To Fill Up The Extra Space

A majority of new homeowners buy a house that has more space than where they were living previously. Of course, the natural inclination is to fill up that empty space with furniture. According to the Consumer Expenditure Survey from the Bureau of Labor Statistics and the NAHB, new homeowners spend $5,025 on average on new furnishings. That’s $3,364 more than people who are existing homeowners.

Much of this is spent on bedroom furnishings, specifically mattresses. New homeowners outspend existing homeowners six times when purchasing bedroom furniture. Spending a bit more money on bedroom furniture than an existing homeowner seems logical, though. Sometimes families purchase a new home because they’re adding a new family member and they need more room – with that new family member comes a new bed and new bedroom furniture.

However, another big-ticket item that new homeowners purchase is...  Read More

Whitney Bennett




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