By. Megan Mollova

Buying a home is an exciting milestone, but it’s essential to consider the costs beyond the purchase price. In Massachusetts, like in most places, there are several additional expenses to account for when budgeting for your new home. In this blog post, we’ll explore some of the key expenses you should be aware of so you are ready and prepared to shop!

1) Deposit:

When purchasing a home, it’s customary to provide a deposit as a sign of your commitment to the transaction. In Massachusetts, the typical deposit ranges from 3% to 5% of the purchase price. This deposit is usually submitted along with your offer and is held in an escrow account until the closing. The deposit demonstrates your seriousness as a buyer and is applied towards the down payment or closing costs at the time of closing. It’s important to carefully review the terms of the purchase agreement to understand the deposit requirements and any contingencies related to its refund or forfeiture. (At closing, this money is typically used as the down payment or payment towards your new home)

2) Home Inspection:

Before finalizing the purchase, a thorough home inspection is highly recommended to identify any potential issues or repairs needed. In Massachusetts, the cost of a home inspection typically ranges from $500 to $800, depending on the size and complexity of the tests done on the property.

3) Home Appraisal:

Lenders often require a home appraisal to determine the fair market value of the property. In Massachusetts, the cost of a home appraisal typically ranges from $600 to $700. This expense helps ensure that you are not overpaying for the property and assists in securing a mortgage loan.

4) Moving Expenses:
Once you’ve sealed the deal, you’ll need to consider the cost of moving your belongings to your new home. In Massachusetts, professional movers can charge anywhere from $100 to $300 per hour, with full-service movers costing around $2,000 on average. It’s advisable to obtain multiple quotes and compare services to find the most suitable and affordable option.

5.) Closing Costs:
This is often payed, or partially paid, with the same money used as the deposit on the home
Closing costs encompass various fees associated with finalizing the home purchase. In Massachusetts, closing costs typically amount to around 3% of the total home price. These expenses include your Real Estate attorney loan origination fees, title insurance, prepaid taxes, recording fees, and other administrative costs. It’s vital to factor in these costs when budgeting for your home purchase to avoid any last-minute surprises.

Buying a home in Massachusetts involves more than just the purchase price. It’s crucial to consider the additional expenses, such as interest rates, home inspections, attorneys, appraisals, moving costs, and closing costs.
By being aware of these costs upfront and including them in your budget, you can better prepare yourself for a successful homebuying experience in the Bay State.

**Remember to consult with professionals, such as real estate agents, attorneys, and mortgage lenders, to ensure you have a clear understanding of all the costs involved.