KLC Realty | Kasey Cohen

If there’s one thing I hear all the time from buyers, it’s this:

“I knew I’d need a down payment, but I had no idea about all the other costs.”

And honestly, that’s completely normal.

Buying a home is exciting, but there are a few expenses that catch many buyers off guard if no one prepares them ahead of time. My job isn’t just to help you find the perfect home. It’s to make sure you know exactly what to expect so there are no surprises along the way.

Here’s a breakdown of some of the most common costs you’ll want to plan for before buying a home in California.

Earnest Money Deposit

Once your offer is accepted, you’ll typically submit what’s called an earnest money deposit, sometimes referred to as a “good faith deposit.” This lets the seller know you’re serious about moving forward.

The amount can vary, but in California it’s often around 1% to 3% of the purchase price.

The good news? This isn’t an extra fee. That money is typically applied toward your down payment or closing costs at the end of the transaction.

Home Inspection

I always recommend a home inspection, even if the home looks absolutely perfect.

An inspector can identify issues you may never notice during a showing, from roofing concerns to plumbing, electrical systems, and everything in between.

Spending a few hundred dollars on an inspection today can potentially save you thousands down the road. It also gives us the opportunity to negotiate repairs or credits with the seller if anything significant comes up.

Appraisal Fee

If you’re financing your purchase, your lender will require an appraisal.

The appraisal helps confirm that the home’s value matches what you’re paying for it. It’s another important step that protects both you and your lender during the transaction.

Closing Costs

Closing costs are probably the biggest surprise for most first-time buyers.

These costs can include things like loan fees, escrow fees, title insurance, prepaid property taxes, homeowners insurance, recording fees, and a few other items required to finalize your purchase.

While every transaction is different, buyers should generally plan for closing costs that are around 2% to 5% of the purchase price.

The good news is that, depending on the market, we may be able to negotiate for the seller to help cover some of these costs.

Moving Expenses

It sounds obvious, but moving itself can become expensive pretty quickly.

Whether you’re hiring movers, renting a truck, buying boxes, or replacing furniture that doesn’t quite fit your new home, these are expenses worth budgeting for ahead of time.

Making the House Feel Like Home

Even when buyers fall in love with a home, there are usually a few things they want to change after moving in.

Maybe it’s fresh paint, new flooring, updated light fixtures, or changing the locks for peace of mind.

None of these projects have to happen immediately, but it’s nice to leave yourself a little room in the budget so you can truly make the house your own.

The Ongoing Costs of Homeownership

Owning a home comes with responsibilities beyond your monthly mortgage payment.

Things like homeowners insurance, property taxes, utilities, routine maintenance, and HOA dues (if applicable) are all part of homeownership.

I always tell my clients that every home will eventually need something. Setting aside money each year for maintenance can help you avoid unnecessary stress when that day comes.

Can You Lower Some of These Costs?

In many cases, yes.

Every transaction is different, but depending on the market, we may be able to negotiate seller credits toward your closing costs, request repairs, ask for repair credits instead of having work completed, or even include a home warranty.

There are also programs available that may help qualified buyers with down payment or closing cost assistance.

That’s one of the reasons having a knowledgeable Realtor matters. My goal is always to help you keep as much money in your pocket as possible while still putting together a strong offer.

Final Thoughts

Buying a home is a big milestone, and I truly believe that informed buyers make the best decisions.

When you know what to expect financially, the process becomes much less overwhelming and a whole lot more exciting.

If you’re thinking about buying a home anywhere in Southern California, I’d love to help you understand your options, answer your questions, and put together a game plan that fits your goals and your budget.

Whether you’re six months away from buying or ready to start looking this weekend, I’m always happy to help.

Kasey Cohen, REALTOR®
Helping buyers and sellers throughout Southern California find more than just a house… a place to call home.