Published on March 25, 2026 by Candace Tillery — featuring Enpo Tu’s Quote
Buying a home is an exciting milestone—and likely one of the biggest purchases you’ll ever make. But here’s the thing: owning a home comes with ongoing costs that aren’t always obvious at first.
If you’re thinking about buying, it’s important to understand the costs of owning a home so you’re not caught off guard later and can budget accordingly. In this Redfin article we’ll walk you through the costs of buying a home whether you’re in Seattle, WA or Houston, TX.
So how much does it cost to buy a house? Most people think the biggest cost of homeownership is their mortgage payment — and yes, that’s a big one. But it’s just the start. There are plenty of upfront costs you’ll want to be aware of and we listed a few of them.
Here’s a breakdown of what to expect:
This is your biggest upfront cost—and it goes straight toward your ownership stake (equity) in the home. Most buyers put down somewhere between 3% and 20% of the purchase price. On a $300,000 home, that’s anywhere from $9,000 to $60,000. The more you put down, the less you’ll borrow (and the lower your monthly payments will be).
Your lender wants to make sure the home is worth what you’re paying—so they’ll require an appraisal. This typically costs between $300 and $700+, depending on your location, the size of the home, and how complex the property is. It’s a one-time fee, usually paid before closing.
An inspection helps you spot problems before you commit—like structural issues, pests, or outdated systems. A basic home inspection usually costs $300 to $600, but extras like radon, mold, or sewer line checks can add $75 to $500 more. It’s optional but highly recommended.
These are the final costs to make the home officially yours. They include things like loan origination fees, title insurance, taxes, and more. Expect to pay about 2% to 5% of the home’s purchase price. For that $300,000 home, that’s $6,000 to $15,000 at closing.
Now that we’ve covered the upfront costs of buying a home, don’t forget there are also ongoing expenses you’ll need to budget for. These are the recurring costs that come with homeownership. Here’s a quick rundown of what to expect:
These vary a lot depending on where you live, but a good rule of thumb is to expect 1–2% of your home’s value each year. For a $300,000 home, that’s $3,000–$6,000 annually. And yes, they usually go up over time.
Your lender will require it, but even if they didn’t, you’d want it. Insurance protects you from major damage and disasters—and the average cost runs anywhere from $1,500 to $3,000 per year. That number depends on your home’s location, age, and what kind of coverage you choose.
Spoiler alert: Something will break. And even if it doesn’t, homes need regular upkeep. Enpo T., Chief Operating Officer at My Financial Coach, notes that many clients are blindsided by special assessments and maintenance costs on buildings. These unexpected costs, such as a broken water heater or plumbing work, tend to come at inconvenient times, often leading to unwanted high-interest credit card debt. He recommends that “most clients keep an emergency savings account with at least 2-4% of their home’s value to cover these expenses as they come up.”
Water, gas, electric, trash, internet, plus HOA fees if your community has them, can vary a lot. But they’re part of your monthly reality. Kristin McGlothlin, of My Budget Coach, suggests that for bills like annual HOA dues, you should divide the total amount by twelve and set aside that sum each month to ensure the full bill is covered. She states, “Your budget should include a section for these infrequent expenses so that you treat them like monthly bills.”
Buying a home is a big deal — and yes, the mortgage is a huge part of it. But it’s definitely not the only cost you’ll face. From upfront costs like your down payment and closing fees to ongoing bills like property taxes, insurance, maintenance, and utilities, there’s a lot to budget for.
The good news? If you know what’s coming and plan for it, you can avoid a lot of headaches down the road.
Upfront costs typically include your down payment, appraisal and inspection fees, and closing costs. These can range from a few thousand dollars to tens of thousands depending on the price of the home and your loan type. A good rule of thumb is to expect 3–20% of the home price for the down payment and another 2–5% for closing costs.
Not hidden exactly, but often overlooked. In addition to the upfront costs, you’ll need to budget for ongoing expenses like property taxes, homeowners insurance, utilities, and maintenance. Some neighborhoods also come with HOA fees. These can sneak up on new homeowners if you don’t plan ahead.
A general rule is to set aside 1–4% of your home’s value each year for maintenance and repairs. So, for a $300,000 home, that’s about $3,000 to $12,000 annually. Some years you
