As if sticker shock wasn’t enough, the average American home buyer spends $31,975 beyond their down payment on upfront homebuying expenses, such as closing fees, repairs, moving, and other miscellaneous costs, according to Clever Real Estate. The survey says 48% of people who have bought a home since 2022 were surprised by how much these unexpected transactions cost, leading 72% of buyers to regret their homebuying experience. These costs often surprise buyers, not because they’re uninformed but because they have a lot on their plate during the whirlwind homebuying process. “Agents usually prepare them for [these costs],” says Brett Rosenthal, a Philadelphia-based real estate agent, “but until they see the actual amount, they don’t really listen.” Breaking down the Costs of Home Buying Homeownership costs typically center around home prices, but purchasing a home comes with other significant and unexpected transactions. Buyers stretched thin by down payments are often ill-equipped to handle an extra $32,000 in fees, but that’s exactly what the average American home buyer experiences. These fees make the already-high barrier to homeownership even higher. A 15% down payment on the average-priced U.S. home adds $75,255, bringing the total to $107,230. “When buyers go to buy a home, they speak with a lender and get the basic costs to get the loan,” Rosenthal says. “However, there are many other costs involved when buying. Many homes require work, which will cost money, and there are moving costs, setup costs, etc.”   According to Clever, the average cost of buying a home includes: Home inspection: $278 Private mortgage insurance: $387 annually Moving costs: $2,670 Concessions to the seller: $3,943 Closing costs: $4,754 Appliances, fixtures, and furniture: $6,446 Repairs and renovations: $13,948   Even though they can be expensive, Rosenthal cautions frugal buyers against skipping some specific costs. “Title insurance and transfer tax surprise buyers,” he says, “but title insurance is definitely worth the cost.” Buyers stressed about closing costs can always ask for a seller concession. Nearly 1 in 4 buyers asked the seller to cover some or all of their closing costs; of successful buyers, the average seller paid $4,752 toward their closing costs, according to Clever. For buyers looking to save money, Rosenthal recommended cutting back on the most expensive cost: home renovations. Buyers spend an average of $13,498 on repairs and improvements during their first year of ownership, more than 42% of buyers expected. “Buyers can go without non-immediate repairs — as long as they’re not safety concerns,” he explains. Commission Changes Could Burden Buyers A federal lawsuit against the National Association of Realtors reshaped real estate commissions, which could make it more expensive for buyers to purchase a home. Historically, sellers paid a commission for both the buyer’s and seller’s agent, but under the settlement terms, buyers are responsible for paying their own agent. If buyers paid the average commission rate of 2.58% on the typical home — around $12,944 — that would bring the total upfront cost to $44,919. The added expense could block prospective buyers, but for now, most buyers are still able to avoid paying their agent out of pocket. About 2 in 3 buyers said the seller paid some or all of their agent’s commission. This is especially true in competitive markets where buyers and their agents have leverage to negotiate the buyer’s agent commission. “In my market, [buyers paying their agents out of pocket] is just not happening,” Rosenthal said. However, markets change, and each sale is unique, so Rosenthal concedes that seller concessions shouldn’t be taken for granted. Nearly Three-Quarters of Buyers Have Regrets 72% of buyers express remorse about some aspect of their homebuying experience. About 17% of buyers say purchasing a home was just too expensive, making it the most common regret. Overall, 39% of buyers went over budget on their home purchase, and 38% say it affected their ability to maintain savings or emergency funds. Young buyers were especially impacted, with 70% of Gen Z buyers saying additional costs surprised them. In fact, 49% went over budget, and 55% tapped into their emergency fund because of their home purchase. About 1 in 6 buyers also regret underestimating post-purchase expenses, not negotiating enough with the seller, and simply paying too much. If they could do it differently, buyers would take steps to mitigate their current regrets. About 25% of recent buyers would have negotiated more, 20% would have made a lower offer, 17% would have looked at more homes, and 16% would have planned for much higher post-purchase expenses. Overall, recent buyers think they could have saved $24,000 by making different decisions during the homebuying process.   This article was produced by Media Decision and syndicated by Wealth of Geeks.