However, there may also be some overwhelming expenses to go along with your new home, and it’s something you’ll want to plan for so it isn’t a big surprise. The most recent Consumer Expenditure Survey shows what buyers typically spend on appliances, furniture, and remodeling. It focuses on the first two years after a buyer closes on a home, and the survey indicates new or first-time homebuyers spend the most. First-time homeowners spend an average of $4,500, while the average second or several-time buyer will spend less than $3,000.
So, what are new or first-time buyers spending hard-earned cash on?
According to the survey, the biggest chunk of it (about $3,778) goes to furnishings, and the biggest ticket item is a sofa at approximately $750. The rest of the furnishing purchases include living room chairs and tables at another $687, and kitchen or dining room furniture worth close to $400. These expenses are 12 times greater for new buyers than for those who have owned a home in the past.
Second, in new homeowner spending is appliances at an average of $1,250. Laundry equipment tops the list, followed by refrigerators and televisions. It may seem surprising to many new buyers, but not all homes automatically come with a washer and dryer. And depending on where you purchase your home, a refrigerator isn’t always guaranteed to come with the sale of a home.
Topping the survey are items for remodeling. For a first-time homebuyer, these items range from window coverings to lawn or yard care items and tools. It’s another big difference for the new buyer, and the survey shows a first-time homeowner will spend 10 times more on these items than the person who has already owned a home.
In the end, the survey supports the idea that buying a home can alter your spending behavior, and in a way you may not be able to afford. Let us help you figure it out! Contact us today, and we can talk about your finances and any potential expenses you may need to consider for your new home.