ST. LOUIS, Missouri — Buying a home today is more expensive than ever, and new research from St. Louis-based Clever Real Estate underscores just how substantial these additional costs can be. Beyond the traditional down payment, homebuyers spend an average of $31,975 on necessary home-buying expenses, including closing costs, repairs, and moving expenses.

The Clever Real Estate study breaks down these extra expenses as follows:

  • Repairs and renovations: $13,498
  • Furniture, fixtures, and appliances: $6,446
  • Closing costs: $4,754
  • Seller concessions: $3,943
  • Moving expenses: $2,670
  • Private mortgage insurance: $387 annually
  • Home inspection: $277

When combined with a 15% down payment on a typical U.S. home, priced at $501,500, the total upfront cost for the average buyer is approximately $107,230.

These high costs are catching many by surprise: Nearly half (48%) of buyers say their expenses were higher than anticipated, with 39% exceeding their initial budgets. First-time buyers, in particular, felt the financial strain, with 63% stating they were unprepared for the total costs involved. Younger buyers struggled the most, as 49% of Gen Z buyers went over budget, compared to just 31% of baby boomers.

Facing these unexpected expenses, more than three-quarters (79%) of buyers reported compromising on at least one priority, with staying within budget being a top goal for 57% of respondents. However, 11% of those budget-focused buyers were forced to exceed their limit. Despite the added costs, 52% of buyers negotiated with sellers, and among those, 94% were able to reach an agreement, helping to offset some expenses.

The real estate market has shifted in recent years, with more buyers now managing to purchase below the asking price. In 2024, 34% of homebuyers reported paying less than the asking price, compared to 27% in 2022 when sellers held a stronger market position.

The study also reveals that nearly three-quarters (72%) of buyers expressed some regret, with the leading reason being the high overall cost of purchasing a home. Many buyers felt unprepared for the financial burden, with 68% stating they would have taken a different approach if they had known the true costs, potentially saving up to $24,000.

Additionally, buyers may face even more expenses in the future if sellers no longer cover the buyer’s agent commission, as a recent ruling by the National Association of Realtors could shift this cost to the buyer, potentially adding $12,944 to the final price.

For more insights from the Clever Real Estate report, visit https://listwithclever.com/research/cost-of-buying-a-house/.