You’ve saved up for the down payment, researched mortgage rates, and figured out how much house you can afford—great! But just when you think you're financially ready to buy a home, a few surprise expenses can pop up and throw your budget off balance.

Buying a home in Tennessee (or anywhere, really) comes with hidden costs that many first-time buyers overlook. The good news? You can absolutely prepare for them. Here’s a breakdown of the most common unexpected expenses—and how to plan for them like a pro.

🕵️ 1. Home Inspection Costs

Before finalizing a deal, you’ll want to hire a professional home inspector. This step is crucial—it can reveal issues with plumbing, roofing, HVAC, or structure that could save you thousands later.

Estimated Cost: $300–$600
According to the U.S. Department of Housing and Urban Development, the average home inspection costs around $500 depending on property size and location (HUD.gov, 2024).
💡 Budget Tip: Add an extra $100–$200 for specialized inspections (radon, mold, or pest).

🧾 2. Closing Costs

Closing costs usually run between 2%–5% of the home’s purchase price and include everything from attorney fees to title insurance and appraisal fees.

Estimated Cost: $4,000–$10,000 on a $250K home
According to the National Association of Realtors, the average buyer pays approximately $6,905 in closing costs on a median-priced home (NAR, 2024).
💡 Budget Tip: Ask your realtor about negotiating seller concessions to offset some of these fees.

🛠 3. Immediate Repairs & Move-In Fixes

Even “move-in ready” homes often need small fixes like paint, locks, curtain rods, or new light fixtures. For older homes, you may face more urgent upgrades—like a new water heater or appliance.

Estimated Cost: $500–$2,500+
In a 2023 survey by Zillow, more than 60% of buyers reported spending over $1,200 on repairs or updates within the first year of moving in (Zillow Consumer Housing Trends Report, 2023).
💡 Budget Tip: Set aside at least 1% of the purchase price for unexpected fixes.

🚛 4. Moving Expenses

Moving across town is one thing—relocating across counties or states is another. Movers, boxes, truck rentals, storage, and even temporary lodging or pet boarding can add up quickly.

Estimated Cost: $500–$3,000
According to Moving.com, the average local move costs $1,250, while long-distance moves can exceed $4,890 depending on distance and size (Moving.com, 2024).
💡 Budget Tip: Compare quotes from movers, and ask about weekday discounts or off-season deals.

🏡 5. Utility Setup & Deposits

Many utility providers charge setup or transfer fees. If your credit isn’t stellar, you may be required to pay deposits for electricity, water, or gas.

Estimated Cost: $100–$400
Utility providers often charge connection fees ranging from $25 to $100 per service, and some may require deposits of up to $200 per utility depending on your credit (Energy.gov, 2023).
💡 Budget Tip: Contact providers before closing so you’re not caught off guard at move-in.

📦 6. Furniture & Decor Temptations

Once you're in your new home, it’s tempting to fill every corner with new furniture and trendy décor. But furnishing a home is a marathon, not a sprint.

Estimated Cost: Varies widely ($500–$10,000+)
A 2023 LendingTree study found that 52% of new homeowners spent more than expected on furniture and décor—averaging nearly $4,000 post-purchase (LendingTree, 2023).
💡 Budget Tip: Prioritize must-haves, like a bed or fridge, and build out slowly.

🔐 7. Homeowners Insurance & Property Taxes

While often included in your monthly mortgage payment, these costs can spike based on location, square footage, or flood zones—especially in certain Tennessee areas.

Estimated Cost: $1,000–$3,000 annually
The Insurance Information Institute reports that the national average for homeowners insurance is $1,428 per year, but Tennessee tends to be slightly higher due to severe weather risks (III.org, 2024).
💡 Budget Tip: Ask your lender for an estimate of your full monthly “PITI” (Principal, Interest, Taxes, Insurance).

Final Thoughts

Buying a home is an exciting milestone—but it's also a financial commitment that goes far beyond your down payment. The more you prepare for these “hidden” costs, the more confident and stress-free your transition will be.

Have questions about budgeting or buying your first home? Let’s talk—we’ll walk you through every number so there are no surprises.

🏡
Partners Realty Group
(865) 789 – 6677
"Plan smart. Buy smart. Live confidently."

📚 Sources

1. U.S. Department of Housing and Urban Development (HUD)
   Home Inspections – What Buyers Should Know
   https://www.hud.gov

2. National Association of Realtors (NAR)
   2024 Profile of Home Buyers and Sellers – Closing Cost Data
   https://www.nar.realtor

3. Zillow Consumer Housing Trends Report 2023
   Homeowner Spending on Repairs and Upgrades
   https://www.zillow.com/research

4. Moving.com by Realtor.com
   How Much Does It Cost to Move?
   https://www.moving.com/movers/moving-cost-calculator.asp

5. U.S. Department of Energy (Energy.gov)
   Utility Connection Fees and Energy Costs Guide
   https://www.energy.gov

6. LendingTree Study – Homebuyer Spending Habits (2023)
   Home Furnishing Costs After Purchase
   https://www.lendingtree.com

7. Insurance Information Institute (III)
   Homeowners Insurance Premiums by State – 2024 Report
   https://www.iii.org/fact-statistic/facts-statistics-homeowners-and-renters-insurance