Unexpected Moving Costs: What Buyers and Sellers Need to Know
Moving to a new home can bring about more than just packing boxes and loading up the truck. The associated costs can quickly add up, and it’s important for both buyers and sellers to understand these potential expenses so they aren’t caught off guard. Here are five unexpected moving costs to be aware of:
1. Insurance Coverage and Rates
Homes that are mortgaged must be insured, but your insurance rates can change when you move to a new property. For example, if you’re relocating to a more expensive neighborhood or upgrading to a larger home, your insurance costs are likely to increase. Insurance providers adjust their rates based on property values and the amount of coverage required.
Before choosing a new insurance provider, take time to review your homeowners insurance policy carefully. Be sure that the coverage matches the value of your new home and fully protects your property and belongings.
2. Utility Fees and Costs
One of the most overlooked costs during a move is the expense related to utilities. Whether you’re moving in or out, you may encounter connection or disconnection fees. Different areas have varying fees for services like electricity, gas, water, and internet, and some utility companies require a deposit when you set up new accounts.
Before your move, contact the local utility companies to inquire about fees for connecting and disconnecting services. This will help you plan your budget more accurately.
3. Replacing Items
Sometimes, your old furniture just doesn’t fit in the new space, or it’s simply too worn out to use. Moving is often a time when people realize that certain items need to be replaced—whether it’s a couch that no longer fits or appliances that don’t function properly.
From small items like picture frames or kitchenware to larger pieces like bedroom sets or appliances, it’s important to factor these unexpected costs into your budget. Make sure you have a financial cushion for replacing items that don’t make the move.
4. Storage Costs
If you’re downsizing or don’t have immediate plans for your next home, storage can become a necessary expense. You might find yourself needing to rent a storage unit to keep furniture or belongings that no longer fit in your new place.
Storage unit costs vary depending on size and location, but they can quickly add up. Plan ahead and budget for storage if you anticipate needing it during the moving process.
5. Miscellaneous Expenses
Even the best-laid plans can encounter unexpected costs. Setting up your new home may involve things like repainting rooms, replacing broken fixtures, or repairing minor damages.
Additionally, don’t forget about non-home-related expenses that may pop up, such as cancelling or transferring memberships, updating your address with the DMV, or paying for professional cleaning services. Having a small contingency fund for these “just-in-case” expenses can help keep your move on track.
And if you don’t need to use your contingency fund, treat yourself to a few nice meals out—moving is stressful, and you deserve a break!