Short Answer
Beyond the down payment and closing costs, budget for moving expenses, immediate repairs, new furniture, utility deposits, homeowners insurance, property taxes, and ongoing maintenance. Many first-time buyers underestimate how much they need for the first year of homeownership. Plan to set aside 1% to 2% of the home's value annually for maintenance and repairs.
The hidden costs of homeownership catch many buyers off guard. Moving expenses can range from $500 for a local move to $5,000 or more for a long-distance move. You may need to buy new appliances, window treatments, lawn equipment, and furniture. Utility deposits for electric, gas, water, and internet may be required if you are a new customer. Property taxes in New Jersey are among the highest in the country, averaging 2% to 3% of the home's value annually. Homeowners insurance is required by your lender and typically costs $800 to $1,500 per year in South Jersey. You will also need to budget for ongoing maintenance, including lawn care, snow removal, HVAC servicing, gutter cleaning, and pest control. Major repairs like a new roof ($8,000 to $15,000), HVAC replacement ($5,000 to $10,000), or water heater ($800 to $1,500) can happen at any time. An emergency fund of 3% to 5% of the home's value is recommended for the first year.
Bob's Advice
Redfin Senior Agent · AI Certified Agent
I want my buyers to go into homeownership with their eyes wide open. The mortgage payment is just the beginning. I always recommend setting aside a cushion for the unexpected. In New Jersey, property taxes are a significant factor, and I make sure my clients understand exactly what they will owe before they make an offer. Let us run through a full budget together so you know exactly what to expect.
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