Hidden Costs of Buying a Home in Lee’s Summit

Hidden Costs of Buying a Home in Lee’s Summit

Buying a home in Lee’s Summit is an exciting milestone, but many first-timeand even repeat buyers underestimate the extra expenses beyond the purchase price. From closingcosts to maintenance and insurance, these hidden costs can add thousands of dollars to your budget. Knowing what to expect early helps you plan wisely and avoid unpleasant surprises during your homebuying journey.

This guide covers the hidden costs of buying a home in Lee’s Summit, breaking down every potential fee, expense, and financial consideration you should be aware of before closing.

Understanding Why Hidden Costs Matter

Homeownershipbrings stability and long-term value, but it also involves more than just your down payment and mortgage. Many buyers focus on the listing price and forget about additional costs that appear before, during, and after closing.

Factoring in these hidden costs helps you:

• Set a realistic budget. 
• Avoid financial stress after moving in. 
• Make smarter decisions about loan programs and property types.

Closing Costs: The Biggest Surprise for Many Buyers

Closing costs typically range from 2% to 5% of your home’s purchase price. They include fees paid to finalize your loan and transfer ownership.

Common Closing Costs

• Loan Origination Fee: Charged by your lender for processing the loan. 
• Appraisal Fee: Covers professional property valuation. 
• Title Search and Insurance: Ensures your property ownership is clear. 
• Escrow Fees: Paid to manage the transaction and disburse funds. 
• Attorney Fees: Required in some cases for reviewing contracts. 

In Lee’s Summit, these costs can range from $6,000 to $12,000 on a $300,000 home—so it’s wise to plan ahead.

Home Inspection and Appraisal Fees

Before finalizing your loan, most lenders require a home inspection and appraisal.

Inspection Costs

A home inspection identifies potential issues such as roof leaks, plumbing problems, or electrical hazards. Expect to pay between $400 and $700, depending on the home’s size.

Appraisal Costs

Appraisalsdetermine the property’s fair market value to ensure the loan amount matches the home’s worth. These typically cost between $500 and $800 in Lee’s Summit.

Both are essential to protect your investment and avoid overpaying.

Property Taxes in Lee’s Summit

Property taxesare a recurring cost that varies based on home value and location.

In Jackson County, where Lee’s Summit is located, property tax rates average around 1.3% of your home’s assessed value. Lenders often include property taxes in your monthly mortgage payment through an escrow account, which helps you manage the expense throughout the year.

Before buying, check the property’s tax history to estimate your annual cost accurately.

Homeowners Insurance

Most lenders require homeowners insurance before closing. This policy protects your home from damage caused by fire, storms, theft, and other risks.

Factors That Affect Insurance Costs

• Home size and construction materials. 
• Local weather and risk of natural disasters. 
• Coverage amount and deductible level. 

In Lee’s Summit, annual premiums typically range from $1,200 to $2,000, but this can vary depending on the property’s age and location.

Private Mortgage Insurance (PMI)

If your down payment is less than 20%, your lender will likely require private mortgage insurance (PMI).

PMI protects the lender in case of default and typically costs 0.5% to 1% of the loan amount per year. It can add $150–$300 to your monthly payment, depending on your loan size.

The good news is that PMI can usually be canceled once you reach 20% equity in your home.

Utilities, Maintenance, and Repairs

Once you move in, ongoing costs quickly add up. Many first-time homeowners underestimate these regular expenses.

Common Maintenance Costs

• Lawn care and landscaping. 
• HVAC servicing and filter replacement. 
• Gutter cleaning, pest control, and plumbing upkeep. 
• Roof, driveway, and paint maintenance. 

A good rule of thumb is to budget 1%–2% of your home’s value per year for maintenance. For a $350,000 home, that’s roughly $3,500 annually.

Homeowners Association (HOA) Fees

If your new home is in a planned community or subdivision, you may need to pay HOA fees. These fees cover shared amenities like pools, playgrounds, and neighborhood upkeep.

HOA dues in Lee’s Summit typically range from $300 to $800 per year, but upscale communities may charge more. Always review the HOA agreement before making an offer.

Moving and Furnishing Costs

Beyond the purchase, you’ll also need to budget for the physical move and new furnishings.

Additional Costs to Consider

• Moving services or truck rental. 
• New furniture, appliances, and décor. 
• Utility deposits and setup fees. 

Even small items like curtains or a lawn mower can add up quickly.

Work With the Molly Dean Mortgage Team

Buying a home in Lee’s Summit is an exciting investment, but preparation is key to financial comfort. The Molly Dean Mortgage Team helps you estimate total homeownership costs, choose the right loan, and budget effectively before closing.

Ready to buy smart and plan ahead? Contact the Molly Dean Mortgage Team todayfor a consultation and full cost breakdown for your next home purchase.