Moving to a new home is undoubtedly expensive — the average cost of an interstate move in the United States is roughly $4,300, the American Moving and Storage Association reveals.
Before you decide to purchase a new home, there are a number of financial responsibilities you need to consider.
Making a researched and informed decision about moving can help you avoid expensive and common mistakes.
Are You in a Good Position to Move?
It’s important to take stock of your current commitments and move house only when you’re in a good financial position to do so.
If you’re currently renting, check when your lease comes to an end.
What are the terms if you need to end it early? Additionally, consider how soon you (and your partner) are able to leave your jobs and under what conditions.
It’s also important to settle any financial obligations like debts or bank loans before moving.
Make sure your relocation doesn’t hinder any previous engagements or obligations you need to first fulfill.
The season you move during can also affect the financial side of moving — it’s cheaper to do so in the winter months, although the colder conditions may not be ideal.
Take Account of Moving Expenses
Moving to a new home involves paying for packing materials, shipping your belongings, travel expenses, required insurance, and potential storage expenses.
Hiring an experienced and reputable mover can be a worthwhile investment for a smooth and safe moving experience.
Alternatively, if you’re doing a self-move, you’ll need to budget for associated hidden costs — for example, road taxes and tolls, insurance, fuel, and van rental fees.
You’ll also need to budget for urgent post-relocation expenses, including mortgage, rent, or security payments, the cost of reconnecting utilities, insurance paperwork, and new furniture and household appliances.
Don’t forget to set money aside for everyday expenses like food, cleaning supplies, and general emergency savings.
Do You Need a Home Warranty?
A home warranty is essentially a protection plan for basic home appliances like dishwashers, washing machines, electrical systems, HVAC units, and plumbing systems.
It covers the cost of repairs and replacements caused by malfunction or general wear and tear.
If you’re considering getting a home warranty for your new home, research different providers and what each plan specifically does and doesn’t cover.
Before purchasing a home, get a home inspector to thoroughly assess the condition of the home’s appliances and features; home warranties make the most sense in older homes with outdated appliances.
Also ask the seller if any appliances already have individual warranties, which may make a general home warranty less needed. Some sellers offer to pay for one year of the home warranty either partially or in full.
Moving to a new home is certainly an exciting yet stressful and expensive time in life.
By making sure you’re in a good position to move and taking important financial considerations into account, you can better keep to budget and make the moving process as inexpensive as possible.