Buying your first home is exciting — but if you’re not prepared, unexpected costs can catch you off guard. I work with first-time buyers every week across Metro Phoenix, Gilbert, Chandler, Mesa, Queen Creek, and Scottsdale, and the same thing happens over and over: the price of the home looks manageable… but the additional expenses weren’t part of the original plan.

When you understand these costs early, you stay in control and make confident decisions. Here’s a clear breakdown of what first-time buyers often overlook — and how to plan for it.

1. Earnest Money Deposit (EMD)

Many buyers don’t realize they need this upfront.

A typical earnest money deposit in Arizona ranges from 1%–3% of the purchase price and is due within a few days of signing the contract. It’s not an extra fee — it goes toward your closing costs — but you still need to have it liquid and ready.

2. Inspections (and Re-Inspections)

Home inspections are essential, not optional.

Common inspection costs:

• General home inspection: $350–$500

• Termite inspection: $75–$125

• Sewer scope: $200–$300

• Re-inspection after repairs: $100–$150

Skipping inspections often costs buyers far more later.

3. Appraisal Fees

Required by lenders, paid by the buyer.

In Arizona, an appraisal typically costs $550–$800 depending on location and home type. This fee is usually due upfront.

4. Closing Costs You Didn’t Expect

Most first-time buyers estimate down payment only — but closing costs add another 2%–3% of the purchase price.

These can include:

• Lender fees

• Title fees

• Escrow fees

• Prepaid taxes

• Homeowners insurance

• HOA charges (if applicable)

And yes — these fees vary depending on the city, community, and your loan type.

5. HOA Move-In Fees

If the home is in an HOA community, expect initial fees that may include:

• Transfer fee

• Capital improvement fee

• Processing fee

These can range from $200 to over $2,000, depending on the community.

6. Utilities & Deposits

Even utilities can surprise first-time buyers.

If you’ve never opened accounts for:

• Water

• Electric

• Gas

• Trash

• Internet

…you may be asked to pay a deposit. In many Arizona cities, that can be $150–$300 per utility, depending on credit.

7. New Home Essentials

Even a move-in-ready home needs basics.

Most first-time buyers forget costs like:

• Window coverings

• Lawn care tools

• Small repairs

• New locks

• Smart-home setup

• Appliances (if not included)

These everyday items add up fast.

8. Maintenance & Unexpected Repairs

Whether the home is new or older, things will come up.

Typical early expenses include:

• AC servicing

• Water heater check

• Pool cleaning (if applicable)

• Landscape upkeep

In Arizona, I always recommend planning for routine AC maintenance — our heat is no joke.

9. Moving Costs

Whether you’re hiring movers or renting a truck, plan for:

• Labor

• Supplies

• Transportation

• Storage (if needed)

A full-service move in the East Valley can run $600–$2,000 depending on size.

10. Furniture and Space Needs

Your new home may have more space than your rental — which means extra furnishings.

Buyers commonly need to add:

• Guest bedroom furniture

• Patio furniture

• Additional seating

• Storage shelving

• Area rugs

Budgeting ahead makes the transition smoother.

FAQs: Hidden Costs for First-Time Arizona Buyers

Q: How much should I save beyond my down payment?
A: A safe target is 3%–5% of the purchase price for fees, inspections, and move-in essentials.

Q: Can closing costs be negotiated?
A: Sometimes. It depends on the market, the seller’s motivation, and your loan program.

Q: Are inspection costs worth it?
A: Always. Inspections protect your investment and provide valuable information.

Q: Should I expect higher utility bills when moving into a house?
A: Often, yes — especially in the summer months.

Q: Can first-time buyer programs help with costs?
A: Absolutely. Arizona has several assistance options, and I can help you explore them.

The Bottom Line

Buying your first home is a major milestone — and with the right preparation, it doesn’t need to feel overwhelming. When you understand the full financial picture upfront, your path becomes clear, calm, and completely manageable.

I walk my clients through every detail so there are no surprises — just smart decisions and a smooth move into your next chapter.

Ready to Start Your Homebuying Journey in Gilbert, Chandler, Mesa, Queen Creek, Scottsdale, or Phoenix?

Let’s walk through the numbers together and create a plan that fits your goals and your budget.

📞 480-980-4400
📧 [email protected]
🌐 www.denisehurd.com

You deserve clarity. Let’s get started.