Published: August 11, 2026
Buying a home will be one of the most significant financial decisions you will make in your life. With this decision also comes a lot of responsibility—the ability to pay your monthly payment, keep up with maintenance and repairs, and ultimately, the home you get to make memories in throughout the years.
While dreaming of your new home is exciting and a joyful milestone, you must be fully aware of all the costs that go into homeownership, not just the mortgage, down payment, and closing costs. Don’t worry, we’ll share things you need to consider for your budget, so you can be better prepared and ready to pursue your dreams of owning a home!
Key Takeaways
- Repair costs can add up quickly when buying a home, since you are fully responsible for them, as opposed to renting.
- Appliances, whether new or old, will definitely take a chunk out of your savings if you’re choosing to buy, especially if you need essentials like a new refrigerator, washer/dryer, or air conditioner.
- Lawn care and landscaping may come as a surprise if you’re used to renting an apartment or haven’t had any land to take care of and include in your previous budget.
- Property taxes can vary depending on your state, city, and county, and they can contribute significantly to your everyday budget.
Hidden Cost #1: Home Repairs
One of the major expenses that could come with owning a house is repairs. Whether you’re buying a 100-year-old home or new construction, every house is guaranteed to have things that will break or need to be updated. That’s why you must consider the following for your budget:
- Electrical maintenance is important for your home's safety. Some things to consider for repairs or replacements are circuit breakers, the electric meter box, the fuse box, and the main breaker.
- Plumbing issues can come out of nowhere or be caused by inclement weather. Broken pipes, running water, low water pressure, and clogged drains are all plumbing issues that could arise in your home.
- Renovations, whether a major upgrade or a simple fix, can be costly if not accounted for. Some home renovations are necessary. Older homes might require more upkeep if there are issues with mold or water damage, so it’s important to consider the total cost of the home you’re looking to buy’s renovation costs as well. On average, home renovations can cost around $22,000.
- Storm damage is another cost to keep in mind. While insurance can cover some things like ice, hail, snow, and wind damage, it doesn’t cover everything. For example, some things that may not be included are earthquakes and flooding, so you’ll need to be sure you’re covered for those events depending on where you live.
Hidden Cost #2: Appliances
Appliances play a significant role in owning a home. If you’ve only been renting, you might be used to having a fridge, washer and dryer, and dishwasher included, but when you buy, there’s no guarantee that your new house will include these necessities. You might have to negotiate with the seller for the current appliances in the house. While this may not be an issue with your homebuying journey, it is something to be aware of, so you’re not caught off guard. It’s also good to keep these prices in mind in case you need a sudden repair after buying your new home.
Here are the average costs of home appliances:
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Refrigerator - $600-$2,300
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Washer - $700-$1,300
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Dryer - $800-$1,200
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Dishwasher - $800-$1,200
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Microwave - $100-$600
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Garbage Disposal - $100-$300
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Wall Oven - $1,100-$3,400
Pro Tip: As a reminder, emergency funds are essential for your financial well-being. Being financially prepared when unexpected and urgent expenses arise is important for your financial stability and to keep you out of unnecessary debt. For tips about building an emergency fund, read this article: "The Importance of Creating an Emergency Fund Savings Account."
Hidden Cost #3: Lawn Care
Taking care of your yard and lawn is a key part of homeownership, and the costs can vary depending on whether you have several acres on your property or a small yard. Things like landscaping, mowing the lawn, caring for flower beds, or handling downed limbs are just some of the responsibilities you’ll need to keep in mind. Lawn care could cost $100 to $410 per month depending on your home, where you live, and the type of yard you have.
A key financial decision to consider is whether you’re going to take care of your lawn yourself or hire others to do it for you. Depending on your life situation, you may already know the answer to this question…but it’s important to consider the financial aspect of how much you could save or lose based on your decision.
For example, mowing your own lawn could cost only $100-$300 per year compared to $1,150-$1,450 per year if you hire someone else. While buying a new lawn mower upfront could cost $300-$800 on average, it could be worth the investment to prevent spending more in the long run.
Hidden Cost #4: Property Taxes
Property taxes could be a hidden cost of homeownership, especially if you’re moving to a new place. On average, you could be paying $500 to $1,000 a month depending on where you live.
What goes into property taxes?
Property taxes are set by the city, county, or state where your home is located, and they serve as a key source of revenue for them. Typically, if your house is located in a county and not the city limits, your property taxes could decrease since you’re not receiving the same services as you would in the city.
Hidden Cost #5: HOA Fees
An unexpected expense for your new home could be Homeowners Association (HOA) fees. HOAs enforce rules and maintenance for neighborhoods, and they typically require fees for their services, which could range from $200 to $400 monthly. These costs can vary depending on your neighborhood and the amenities your neighborhood offers, such as playgrounds, clubhouses, or swimming pools.
It’s important to note that not every neighborhood or home has HOA fees. Only around 30% of homes in the United States have HOAs. However, newly constructed single-family homes within HOA communities are on the rise, with 65% of new single-family homes built in the U.S. having them.
Hidden Cost #6: Homeowners Insurance
Another hidden cost to look out for when buying a home is homeowners insurance. Similar to property taxes, the price of homeowners insurance can change depending on where you’re moving to or live. On average, Americans spend $2,490 per year on homeowners insurance; that’s around $208 per month! These are just some of the things that are covered in your homeowners insurance:
- Personal Property (furniture, clothing, etc.)
- Dwelling Coverage (rebuilding your home, structural damage, roof)
- Loss of Use (living expenses if you’ve lost your home or it’s being rebuilt)
- Liability (covers cost if you hurt someone else or break something)
It's important to mention that certain natural disasters like floods and earthquakes are not typically included with homeowners insurance and might have to be bought through a separate policy.
Pro Tip: To know further details about how much homeowners insurance costs in your area, get a quote to see how you can find the best deals on NerdWallet.
How Do You Budget for These Hidden Costs?
Now that you have a better understanding of what your hidden costs are of homeownership, you must be able to see the big picture of what you should try to aim to budget for monthly and yearly for these expenses.
| Pricing Tier | House | Hidden Yearly Costs | Hidden Monthly Costs |
| Lower | $100K-$300K | $12,000 | $1,000 |
| Median | $301K-$500K | $18,000-$24,000 | $1,500-$2,000 |
| Higher | $501K-$1.1M+ | $30,000 | $2,500 |
FAQs about Hidden Costs of Homeownership
Q: What is the average cost of home renovations?
A: The average cost of a home renovation could cost around $22,000, so you'll want to have room in your budget to save up for any foreseeable repairs or upgrades for your house.
Q: Are appliances always included when you buy a new house?
A: Not always. Some sellers might bring their washer, dryer, or other major appliances with them when they move, but they could be willing to negotiate with you to include in the home sale.
Q: Is it cheaper to pay for lawn care services or to take care of your lawn yourself?
A: This could depend on your situation, but in general, it is cheaper to mow your lawn yourself instead of hiring someone else to do it. The average cost of taking care of your own yard per year is $100-$300 compared to $1,150-$1,450 for hired services.
Q: What is the average cost of homeowners insurance?
A: The average cost for homeowners insurance is $2,490 per year in the United States, but it can vary depending on where you live. It's important to note that earthquakes and flood insurance is typically separate, so that might be something to consider depending on if you live in a flood zone or area where earthquakes are common.
Discover If You're Ready to Buy a Home with Leaders Credit Union
Are you ready for the next step of buying a home, but want to be sure you can fully afford all the costs that come your way? Reach out to one of our Financial Champions or Mortgage Champions to have a conversation about what changes you need to make to your budget, what savings goals you need to make a priority, and discover any habits you need to change to improve your financial situation.
Ready to get pre-qualified for a home loan? Check out our free resource: “Step-by-Step Guide to Get Pre-Qualified for Your Mortgage.” Also, take a look at these articles:
- “How to Buy Your First House in 2 Years: Step-By-Step Guide”
- “What Makes Up a Mortgage Payment? 4 Things You Need to Know”
Leaders is federally insured by the NCUA and is an equal housing lender.
