Survey: The Hidden Costs of Homeownership

Thirty-five percent of homeowners surveyed by Motley Fool Money say their home purchase came with a hidden or unexpected expense -- an unwelcome surprise after making what is often their largest purchase.

Unexpected home-buying costs can turn an exciting milestone into a stressful one. From overlooked repairs to missing appliances, it's not uncommon for new homeowners to face surprise expenses after closing the deal.

The most common hidden costs of buying a home

The need for repairs and maintenance is the most common hidden expense encountered by new homeowners. Twenty-eight percent of all homeowners surveyed by Motley Fool Money said they faced that type of unexpected cost after buying a home.

Similarly, 11% of homeowners surveyed said hidden lawncare and landscaping costs cropped up after their purchase. It can be difficult to assess the state of a yard depending on the time of year, for example during the winter when the yard is covered in snow. Rotting trees and a yard that leaks water into the basement after rain or snowmelt can also be difficult to spot.

Ten percent said they had unplanned spending on appliances. Some sellers do take pricey appliances like washing machines, clothing dryers, and even fridges with them when they move.

Property taxes, homeowners insurance, HOA fees, and private mortgage insurance were cited as hidden expenses by a smaller percentage of homeowners.

Millennials and to a lesser extent Gen Z respondents were more likely to have had to shell out for repairs and maintenance they weren't expecting. Thirty-two percent of Gen Z and 37% of millennial homeowners surveyed said they had a hidden repair or maintenance cost, compared to 27% of Gen X and 20% of baby boomers.

Gen Z respondents were also slightly more surprised by HOA fees. Thirteen percent of that generation said HOA fees came as a surprise compared to 5% or less of each other generation.

Most homeowners that encountered a hidden expense spent more than $5,000 to address it

Sixty-nine percent of homeowners that faced a hidden expense after their purchase spent more than $5,000 to address it. Ten percent spent more than $30,000 -- which is roughly 7% of the median home sales price in the United States and half the value of the average down payment on a home.

These costs aren't shocking given that the most common unexpected expense falls into the maintenance and repairs category, which can be expensive.

How to plan for hidden costs of homeownership

With 35% of homeowners surveyed by Motley Fool Money encountering a hidden expense after buying their home and over 90% of them spending over $1,000 to fix it, prospective home buyers would be wise to set aside some cash to cover any unexpected costs that come up after closing.

Undertaking a comprehensive home inspection and checking the property's history for permitted work, and understanding any unpermitted work that may have been done, are other ways to get ahead of maintenance that may need to be completed after moving in.

Finally, being clear with the sellers about which appliances they intend to leave in the home after closing shouldn't be overlooked.

No home purchase is without risks, but careful planning can minimize costly surprises. Putting aside some extra money, taking the time for due diligence, and clarifying expectations can go a long way towards reducing the pesky hidden costs of homeownership.