2026 Data: Buying a Home Costs $32,000 in Extra Costs Beyond the Down Payment

Home-Buying Costs | Renovation Costs | Concession Costs | Closing Costs | Moving Costs | First-Time vs. Repeat Buyer Costs | Most Surprising Costs | Homeownership's Impact on Finances | Home-Buying Regrets | Alternate Approach

Buying a home isn't just expensive. It's also a serious financial commitment that extends well beyond the formidably high purchase price. Although home buyers often view the down payment as the most daunting expense, it is only one of many upfront charges involved in the purchase. 

In addition to their down payment, buyers spent an average of $31,502 on upfront home-buying expenses, according to a new survey of 1,000 recent home buyers from Best Interest Financial and Clever Real Estate. 

Many home shoppers start the process feeling financially prepared, with 64% saying they initially felt fully informed about the total cost of buying. But 81% were still surprised by at least one home-buying expense beyond the sale price. 

Without a full understanding of the costs, the average buyer spent about 4x more than expected on upfront home-buying costs. 

Americans who are already struggling with the rising cost of living have little capacity to absorb large unplanned housing costs, and 75% of respondents say the cost of buying a home significantly impacted their finances in the first year of owning it.

Had they known the true cost of buying a home, 73% would have made different decisions. With a different approach, buyers think they could have saved an average of $38,082 on their purchase.

Keep reading to learn more about the true cost of purchasing a home and how buyers would have approached the process if they had been better informed.

Home Buyers Spend More Than $30,000 in Extra Costs on Top of Their Down Payment

The true cost of buying a home extends well beyond the down payment. 

Recent buyers spent an average of $31,502 on upfront home-buying expenses on top of their down payment.

The cost of purchasing a home varies among buyers, but on average, they spent the following amount on these expenses:

• Repairs and improvements during their first year of ownership: $15,073 
• Concessions to the seller: $7,678
• Closing costs: $5,719 
• Moving costs: $3,032

These additional expenses can be a significant financial burden, but buyers have traditionally been spared from paying one of the largest upfront costs: their real estate agent's commission.

Sellers have historically paid the buyer's agent, but this long-standing arrangement changed in 2024 when a legal settlement with the National Association of Realtors eliminated the requirement that sellers cover the buyer's agent's fee. 

Although most sellers continue to pay the buyer's commission cost as a way to attract home shoppers, some buyers may be responsible for their agent's compensation. 

If buyers had to pay the average buyer's commission rate of 2.82% on the average-priced home, that would cost an additional $15,058 and push total home-buying expenses to $46,560 on top of the down payment.

Despite the heavy price tag, a home purchase is still worth the investment to buyers, with 70% saying they are satisfied with the final purchase price of their home.

Renovation Costs: Buyers Spend More Than $15,000 on Home Improvements in Their First Year of Ownership

High home prices and interest rates have buyers rethinking what kind of house they can afford. Instead of move-in ready homes, many buyers are targeting fixer-uppers as a way to save money on their purchase.

These buyers expect to spend additional time and money on renovations, but even those who purchase turnkey properties usually encounter unexpected repairs or renovations. More than two-thirds of buyers (69%) say they made repairs and improvements within one year of moving into their home.

Home buyers spent an average of $15,073 on repairs and improvements in their first year of ownership. That number jumps to $16,152 among first-time buyers (38%) who are nearly 2x more likely to purchase a fixer-upper than repeat buyers (20%). 

Repair and renovation costs are an unavoidable homeownership expense, though, regardless of a buyer's experience level. Repeat buyers still spent a significant $14,368 on their home within the first year. 

Although many home buyers start home projects with a set budget, unexpected problems often arise and cause costs to surpass initial expectations. More than half of buyers (55%) say they spent more on home repairs and maintenance in their first year than they planned. 

In fact, out of all the home-buying expenses, repair and upgrade costs were the most surprising to buyers. 

Repair costs often come as a shock because most buyers pay for a home inspection that assures them their home is in good condition. However, home inspectors don't catch everything, and nearly 1 in 3 buyers (30%) say their home inspector missed problems that ended up being costly. 

It's no surprise, then, that 1 in 10 buyers (10%) regret not hiring a more thorough home inspector.

Concession Costs: Buyers Pay Nearly $8,000 in Concessions to the Seller

Home sellers don't have the advantage they once did, but they still have the upper hand in many markets because of low housing inventory. 

To make their offer more appealing, two-thirds of buyers (67%) had to make concessions to the seller. 

Although some concessions require only a sacrifice of time and convenience, others have real monetary value, such as paying some of the seller's closing costs or paying more than the appraised value of a home.

Buyers paid an average of $7,678 in concession to the seller. 

First-time buyers, in particular, had to pay more in concessions to compete. Those who purchased a home for the first time spent an average of $10,928 in concessions to the seller — nearly double the $5,556 repeat buyers spent.

In the heat of the moment, first-time buyers are so desperate to own homes they'd willingly pay more to make it happen. But 68% wish they'd negotiated more with their seller, compared to 55% of repeat buyers.

Closing Costs: Buyers Pay Almost $6,000 in Transaction Fees

Closing costs are full of mysterious fees that few buyers understand — often making the final total an unwelcome surprise to buyers who aren’t sure what they're paying for. In fact, 1 in 6 buyers (16%) say closing costs were the most surprising home-buying expense beyond the initial sale price.

The average home buyer spent about $5,719 on closing costs, which include title fees, appraisal fees, underwriting fees, and various other expenses. 

However, the total amount buyers pay in closing costs can vary depending on several factors, such as the loan type, loan amount, location of the home, and size of their down payment. 

First-timers typically end up spending more, with those buyers paying $6,333 in closing costs on average. Repeat buyers, who are better equipped to compare lenders, negotiate fees, and put down a larger amount, report spending a slightly lower $5,319. 

Regardless of the amount, about 1 in 6 buyers (16%) who are still reeling from their down payment regret that closing costs were too high.

Moving Costs: Buyers Spend Roughly $3,000 to Move Into Their New Home

Spending doesn't stop once the closing documents are signed, with nearly all buyers (95%) paying to relocate.

The cost of moving depends on a variety of factors, such as the amount of belongings and the length of the move. But on average, home buyers spent $3,032 to relocate. 

Large upfront expenses, such as the down payment and closing costs, tend to dominate buyers' attention. Smaller expenses, such as moving costs, can seem minor in comparison and not receive the same level of planning.

Relocation costs can add up quickly, however, and catch buyers by surprise. Approximately 1 in 8 buyers (12%) say moving costs were the single most surprising home-buying expense beyond the sale price.

First-Time Buyers Spend 30% More on Additional Costs Than Repeat Buyers

Although first-time buyers typically purchase less expensive homes, they face steeper upfront costs that strain their meager budgets. 

Buyers purchasing a home for the first time spent $36,460 on additional home-buying expenses beyond the sale price — about 30% more than the $28,260 repeat buyers spent.

First-time buyers are often unprepared for this major expense, with 41% saying they did not feel fully informed about the total cost of buying a home before making an offer. 

Without a complete understanding of the cost, many first-timers miscalculated how much they'd need for their home purchase. Nearly two-thirds of first-time buyers (61%) say they went over budget, compared to 44% of repeat buyers.

First-time buyers who overextend their limited budgets often have to rely on financial assistance. Approximately 41% say family or friends helped them financially with their home purchase, and 32% used a down payment assistance program. 

Repeat buyers, on the other hand, were 2x less likely to need financial help from family or friends (16%) and 4x less likely to need a down payment assistance program (8%).

Even with financial help, more than half of first-time buyers (56%) say monthly housing costs are more than they expected, and another half (58%) say the cost of purchasing their home forced them to put other financial goals on hold. 

Meanwhile, just 36% and 38% of repeat buyers say the same, respectively.

Buyers Spent 4x More Than Expected on Costs Beyond the Sale Price

An abundance of educational resources exist to help inform buyers about the cost of purchasing a home, but 81% of recent buyers were still surprised by at least one home-buying expense beyond the initial sale price. 

Buyers say the most surprising costs were:

• Repair and upgrade costs (18%)
• Closing costs (16%)
• Property taxes (14%)
• Moving costs (12%)
• Homeowners insurance (9%)
• Ongoing maintenance costs (8%)

With so many costs exceeding buyers' expectations, more than half (51%) went over budget on their home purchase — sometimes significantly. The average home buyer expected to spend $8,083 on costs beyond the sale price but actually spent nearly 4x that much — $31,502.

Buyers who exceed their budget are often left in a precarious financial position with little money left over for savings or emergencies. 

Creating an accurate budget can help avoid this problem, but it's not easy when the true cost of buying a home isn't always clear. In the end, more than 1 in 10 buyers (11%) regret that they didn't understand all the costs involved in the home-buying process.

3 in 4 Buyers Say Additional Home-Buying Costs Negatively Impacted Their Finances

With many buyers failing to understand the true cost of buying a home, the financial impact of their decisions can be surprising and painful. Approximately 75% of buyers say the cost of buying significantly impacted their finances in the first year of owning their home. 

That percentage jumps to 85% among first-timers, who often have fewer financial reserves to fall back on after depleting their savings for a home purchase. Repeat buyers are better positioned to absorb the large expense, but 69% still say buying a home negatively affected their finances.

As a result of stretching their finances to cover upfront expenses and ongoing mortgage payments, buyers were most likely to:

• Reduce their discretionary spending (32%)
• Deplete all or most of their savings (26%)
• Take on additional debt (18%)

First-time buyers were most likely to feel the financial strain, having to cut spending (36%), exhaust their savings (32%), and take on additional debt to afford their purchase (20%) at higher rates than repeat buyers. 

First-time buyers were also:

• 3x more likely than repeat buyers to delay or cancel a major life event (20% vs. 7%)
• 2.5x more likely than repeat buyers to rely on family and friends for financial assistance (18% vs. 7%)
• 2.5x more likely than repeat buyers to work a side gig (23% vs. 9%)
• 2x more likely than repeat buyers to reduce payments to other debt (21% vs. 10%)

Nearly Three-Fourths of Buyers Have Regrets About Their Purchase

In today's challenging real estate market, buyers often have to make difficult choices — with nearly half (48%) saying they had to make financial compromises when purchasing their home. 

Although sacrifices are often necessary to secure a home, they don't always sit comfortably. Nearly 3 in 4 home buyers (72%) have regrets about their purchase. 

As the market evolves, many buyers wish they had leveraged their newfound negotiating power more effectively. Although 60% of buyers say they negotiated with the seller, about 1 in 5 (21%) regret not negotiating more — making it the most common regret.

Home buyers most regret that:

• They didn't negotiate more (21%)
• They underestimated post-purchase expenses (18%)
• They exceeded their budget (17%)
• They paid too much for their home (16%)
• Closing costs were too high (16%)

With first-time buyers spending more on upfront costs beyond the purchase price, it's no surprise they tend to feel more remorse about their financial decisions. Approximately 85% of first-time buyers report having regrets, compared to 65% of repeat buyers.

Although a majority of both groups feel remorse, they tend to regret different aspects of their purchase.

Like the overall respondent pool, repeat buyers most commonly regret not using their financial strength to negotiate more with the seller (20%). In contrast, first-time buyers are more likely to regret decisions with direct financial consequences, such as buying before interest rates dropped (23%) and underestimating post-purchase expenses (23%).

If They Could Do It Again, 73% of Buyers Would Make Different Decisions

Had they known the true cost of purchasing a home, 73% of buyers would have made different buying decisions — resulting in fewer regrets. 

Due to their inexperience, first-time buyers are the most likely to reconsider their approach, with 85% saying they would change their strategy. But previous home-buying experience doesn't guarantee a regret-free process. Nearly two-thirds of repeat buyers (66%) would still make different choices if given the chance. 

In hindsight, buyers would take steps to mitigate their current regret. If they'd had a better understanding of home-buying costs, buyers would have:

• Tried to bargain more aggressively (22%)
• Made lower offers (20%)
• Planned for higher post-purchase expenses (17%)
• Asked for more concessions from the seller (17%)
• Waited to buy until interest rates decreased (14%)
• Waited to buy until they had more money saved (14%)

Had they approached the process differently, buyers think they could have saved a whopping $38,082 on average if they had made better decisions. 

First-time buyers, in particular, think their poor choices cost them $45,009. Despite their previous experience, even repeat buyers aren't immune from second-guessing their decisions, believing a different approach would have saved them $32,257.

Methodology

Clever Real Estate and Best Interest Financial surveyed 947 American adults who purchased a home in 2023, 2024, or 2025 to ask about their home-buying experience. The survey was conducted Jan. 16 to Jan. 30, 2026.

About Best Interest Financial

Mortgages are complicated. Choosing a lender shouldn't be. At Best Interest Financial, borrowers come first, with personalized guidance and tailored mortgage options. Since 2024, hundreds of families have trusted Best Interest Financial to achieve their dream of homeownership. Now an affiliate of Clever Real Estate, a free agent-matching service that's saved consumers $210 million on Realtor fees since 2017, Best Interest shares a mission to connect people with the best solutions for every step of their real estate journey.

About Clever Real Estate

Since 2017, Clever Real Estate has been on a mission to make selling or buying a home easier and more affordable for everyone. 12 million annual readers rely on Clever's library of educational content and data-driven research to make smarter real estate decisions—and to date, Clever has helped consumers save more than $220 million on realtor fees. Clever's research has been featured in The New York Times, Business Insider, Inman, Housing Wire, and many more.

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