Buying a home in Orlando is an exciting step—but it’s also a big financial move. While most buyers focus on the down payment and monthly mortgage, there are several other costs that can sneak up on you. Being prepared for these hidden expenses can help you avoid surprises and stay within your budget.
Let’s break down the most common hidden costs—and how you can prepare for them when buying a home in Central Florida.
Closing Costs
Closing costs are fees paid at the end of the home buying process. They typically range from 2% to 5% of the home’s purchase price and include:
- Loan origination fees
- Title insurance
- Appraisal fees
- Attorney fees (if needed)
- Recording fees
- Escrow deposits for taxes and insurance
If you’re buying a $350,000 home, expect closing costs to be anywhere from $7,000 to $17,500. Some sellers may agree to help cover part of these costs—but not always. Talk with your agent and lender early to get a clear estimate.
Home Inspections and Repairs
A home inspection is a must. It usually costs between $300 and $500, depending on the size of the home. If the inspection reveals issues, you might need to pay for repairs before closing—or negotiate with the seller.
Common repairs include plumbing, roof patches, HVAC service, or pest treatment. It’s smart to have a cushion of a few thousand dollars just in case.
Moving Expenses
Don’t forget the cost of moving. Whether you rent a truck and do it yourself or hire professionals, moving costs can add up quickly. Local moves in Orlando may cost $500–$2,000 depending on the size of the home and services needed.
Utility Setups and Deposits
When you move into a new home, you’ll need to set up utilities like electricity, water, gas, internet, and trash service. Some providers charge setup fees or require deposits for new accounts.
Also, depending on where you live, you may need to pay fees to a Homeowners Association (HOA), which can be monthly or quarterly.
Furnishings and Upgrades
Once you move in, you might want to buy new furniture or appliances. Even if the home is move-in ready, buyers often spend money making it their own. Budget for window treatments, minor upgrades, or decorating.
Some buyers also face costs for fencing, landscaping, or security systems—especially if the home is new construction.
Homeowners Insurance and Property Taxes
Homeowners insurance is required by lenders and can vary depending on the home’s size, age, and location. In Florida, the cost can be higher due to weather risks like hurricanes.
You’ll also need to pay property taxes. In Orange County and surrounding areas, property taxes are typically about 1%–1.5% of the home’s value each year. These may be included in your monthly mortgage payment through escrow.
HOA Fees
Many neighborhoods in Orlando, especially newer communities, have HOAs. Fees vary widely, from $50 to $300 per month or more. Make sure you understand what the fee covers—like lawn care, pool access, or security—and whether it fits your budget.
How to Prepare for the Extras
- Get a Full Estimate Early**: Ask your lender for a Loan Estimate document to see all projected closing costs.
- Create a Moving Budget**: Include moving, furniture, deposits, and essentials.
- Keep a Cash Cushion**: It’s wise to set aside 3%–5% of your home’s price for extras, repairs, or emergencies.
- Work with a Local Agent**: A good agent will help you understand costs specific to your neighborhood.
Buying a home doesn’t have to be stressful—but it does require planning. The more you know, the better prepared you’ll be to enjoy your new home without financial strain.
At Megan Dowdy Realty, we guide buyers through every step—from finding the right home to understanding every cost. Contact us today or message us on Facebook. We’re here to help you start your homebuying journey the smart way.
