When I recently moved, I overlooked some of the expenses that can come up. This is why I want to share some of the expenses you may be forgetting.
Looking to sell a home in Southern California?
Looking to buy a home in Southern California?
Today I want to talk to you about how you can prepare yourself for an upcoming move. As someone who recently moved myself, I know what you need to budget for that most people forget. In fact, I forgot about them myself!
Most people are aware of the financial expenses of the closing costs and down payment. Typically closing costs range from 1% to 3% of the purchase price. When you are budgeting your down payment allocation, you want to be prepared with the additional money for your closing costs as well as your inspection and appraisal.
For the actual moving, many people tend to forget about some of the costs including movers. Although there are a lot of people who do it themselves, you still have to budget for boxes, packing supplies, a U-Haul or Budget truck, etc.
If you have friends help, there is the risk of something that is uninsured falling and breaking. In addition to that, you will probably need pizza and beer money if you hire your friends.
Meanwhile, if you hire movers, you will want to do your research. I find that they run the gamut as far as pricing and professionalism. If you can have them come out and give you a quote beforehand, that is great. Be careful of movers charging by the hour as time can go very quickly. Even if you are packed and ready to go when they show up, I know from experience that it can take a lot longer than you think.
The American Movers and Storage Association says that the average move costs about $1,200 when staying in-state. For an out-of-state move, this increases to about $5,600.
The American Movers and Storage Association says that the average move costs about $1,200 when staying in-state.
Utilities are another expense to be aware of when moving. If you move to a larger or smaller home, the amount that you pay is going to change from that set amount you are used to paying. Plus, many companies require deposits upfront, especially if you're moving to a new area with new service providers. In addition to the upfront expenses from the deposits, you may also have to buy out a cable contract.
Lost wages are commonly overlooked as well. If you have to take time off work to meet movers, pack boxes, etc., this can affect your income. Also, know that something always breaks. In my case, it was my water heater that broke three days after we closed. I had to purchase a new one and was left without a water heater for almost a week.
Little things that you have to buy for your new home can add up as well. You may have to buy a new garden hose, screens, window treatments, shower curtains, etc. When you walk into the home, you don't necessarily see that those things have to be done, but they do.
If you're moving into a home that needs some work, hopefully you already planned for the repairs. And, if you bought a new home, you may want to buy some new furniture and decor, especially if you are moving into a bigger home.
If you have any additional questions or are interested in buying or selling, please feel free to contact me. I look forward to speaking with you soon.
