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Navigating Post-Closing Expenses: Budgeting for Home Renovation, Moving, Furnishings, and More!


While closing your new home is an exciting milestone, it’s crucial to understand that the financial commitment doesn't end at closing. Homeowners should anticipate and budget for various costs of home repairs that inevitably arise, such as home renovation, furnishings, moving, and maintenance costs.

Age and Lifespan

Upon acquiring a house that isn't brand new, it’s essential to note its age as this impacts the cost of home repairs. The age of the house often dictates the life expectancy and imminent replacement needs of critical home components such as the roof, furnace, hot water heater, AC unit, and septic tank.


Roofs, depending on the materials used and the environmental conditions of the area, have an average lifespan of 20-30 years. According to HomeAdvisor, the cost of roof replacement varies between $5,000 and $25,000. This range is broad due to factors like the type of roofing materials (asphalt, metal, or tile), the roof’s size and complexity, and labor costs in your locality.


Furnaces have a typical life expectancy of 15-20 years. When it's time for replacement, you should anticipate bearing costs ranging between $2,500 and $7,000. This cost variation is influenced by the furnace type (gas, electric, or oil), its efficiency rating, and the installation complexity.

Hot Water Heater

These appliances generally have a lifespan of 8-12 years. Replacement costs for hot water heaters hover around $800 to $1,500, based on information from Consumer Reports. Factors influencing these costs include the unit’s capacity, type (tank or tankless), and the installation charges.

AC Unit

Air conditioning units typically have a service life of about 15-20 years. When their service life comes to an end, the cost to replace them typically falls between $2,500 and $7,500. The cost depends on the unit's size, efficiency, brand, and installation requirements.

Septic Tank

Well-maintained septic tanks can function effectively for up to 40 years. The cost to replace a septic tank ranges widely from $3,000 to $10,000. The Environmental Protection Agency suggests that replacement costs vary depending on the system type, installation complexity, and geographic location.

Understanding these costs is crucial when planning for the ongoing maintenance and eventual replacement of these key home components. As always, local market conditions, technological advancements, and specific house characteristics may lead to variations in these costs and life expectancies.

Home Renovations and Remodeling

Whether it's for comfort or enhancing the home's value, home renovations are common endeavors homeowners embark on.

Bathroom Remodel

Revamping a bathroom can greatly enhance your home’s appeal. According to HomeAdvisor, the average cost of a bathroom remodel ranges from $6,000 to $15,000. This can depend on the extent of the renovation and the quality of materials chosen. It’s crucial to remember that prices vary significantly based on location and specific project details.

Kitchen Remodel

The kitchen is often considered the heart of the home. For a minor kitchen remodel, HomeAdvisor suggests you might spend between $10,000 to $15,000. However, a major overhaul can set you back from $30,000 to $60,000 or even more. These costs are influenced by the chosen materials, appliances, and the complexity of the work required.

Miscellaneous Costs

Home renovation projects often include replacing doors, refinishing floors, or updating hardware. HomeAdvisor estimates that doors can cost between $500 to $3,000 each (installed), while floor refinishing ranges from $1,500 to $3,500 for a standard space. These miscellaneous expenses can add up, so planning and budgeting carefully is key.

Planning for Other Post-Closing Expenses

Beyond maintenance and home renovation costs, other post-closing expenses include:


Filling your new space with furniture and decor can be pricier than expected. Set aside a reasonable budget, possibly between $5,000 and $20,000, to furnish your home comfortably and stylishly.


Hiring professional movers can greatly simplify your relocation process. Depending on the distance and amount of belongings, moving services can range from $500 to $5,000.

Explore Renovation Loans

Before diving into extensive home renovation projects, consult with a financial expert about renovation loans. These specialized loans can provide the funding needed for significant home repairs and upgrades, enabling you to transform your new house into a dream home without financial strain. Experts on renovation loans can offer invaluable advice and guide you through the various options available to fund your impending home projects. Taking the time to understand and secure the right financing can set you up for a smoother and more enjoyable home renovation experience.

Final Thought

Owning a home comes with a series of ongoing expenses and responsibilities. From maintenance to home renovation, each cost of home repairs contributes to the preservation and enhancement of your property’s value and livability. With prudent planning and consideration of the various post-closing costs, you'll be better prepared to navigate the financial landscape of homeownership confidently and wisely. For tailored advice and support, consider speaking to an expert on renovation loans to explore the best financing options for your unique needs and goals.

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