Home Buyers Face Nearly $32,000 in Additional Costs Beyond the Down Payment

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Nov 12, 2024, 08:44 ET

The average home buyer spends $13,498 in repairs and renovations, $4,754 on closing costs, $3,943 in concessions, and another $9,780 in miscellaneous expenses — after making their down payment.

ST. LOUIS, Nov. 12, 2024 /PRNewswire/ -- Home buyers spend an average of $31,975 in home-buying expenses such as closing costs, repairs, and moving, in addition to their down payment, according to new research from Clever Real Estate, a St. Louis-based real estate company.

The costs are broken down into the following:

Repairs and renovations: $13,498
Furniture, fixtures, and appliances: $6,446
Closing costs: $4,754
Concessions to seller: $3,943
Moving costs: $2,670
Private mortgage insurance: $387 annually
Home inspection: $277

With a 15% down payment on the average-priced U.S. home ($501,500) adding $75,255, the upfront cost totals a staggering $107,230.

Unsurprisingly, 48% of buyers say costs were higher than expected, with 39% exceeding their budget and 38% reporting impacts on their savings. Notably, 63% of first-time buyers were surprised by the cost. Among Gen Z, 49% exceeded their budget — over 1.5 times more than boomers (31%).

Further, 79% of buyers compromised on at least one priority. Buying within budget was the most common priority but also the most likely to be compromised. Of the 57% who prioritized their budget, more than 1 in 10 (11%) went over their limit.

More than half of home buyers (52%) negotiated with the seller, with 94% of those who did achieving success. About 34% of buyers paid below the asking price in 2024 — up from 27% in 2022, when the market was more favorable to sellers.

Had buyers known the true cost of purchasing a home, 68% would have taken a different approach — believing they could have saved an average of $24,000.

Moreover, buyers could incur an additional $12,944 in commission costs on the average home if sellers opt not to pay the buyer's agent commission following the National Association of Realtors settlement in August. Although 66% of buyers with agents in 2024 had their commissions covered by sellers, this is no longer required.

About 72% of buyers have regrets, with the most common being that buying a home is too expensive.

Read the full report at: https://listwithclever.com/research/cost-of-buying-a-house/

About Clever Real Estate

Clever Real Estate is a technology company that produces educational real estate content reaching over 10 million readers annually, and its nationwide agent matching service has a 5.0-star Trustpilot rating across 3,000+ customer reviews. Since launching in 2017, Clever has reached $11.4 billion in real estate sold, matched 138,000+ customers with realtors, and saved consumers over $170 million on commission fees. Clever's network spans 15,000 agents across all 50 states.

Please contact Alyssa Evans at with any questions or to arrange an interview.

CONTACT:
Alyssa Evans
Clever Real Estate
[email protected]
315-690-1518

SOURCE Clever Real Estate