Top 5 Hidden Costs of Buying a Home in Northern California

By Shawn Hermosillo

Shawn Hermosillo, founder of Hermosillo Real Estate Group (HRE), is a Sonoma County native with deep roots in the community and a passion for real estate.

Thinking about buying a home? Let me share a story…

These buyers did everything right; they saved $58,000, got pre-approved, and set aside money for closing. But just days before finalizing their home purchase, an extra $6,000 in unexpected expenses caught them off guard. They weren’t prepared, so they had to dip into their emergency fund. This delayed their closing, too.

Stories like this are more common than you’d think, but this is preventable with the right preparation.

In 2025, buying a home means budgeting beyond the down payment. Let’s break down five hidden costs every buyer should be ready for, so you don’t end up surprised when it matters most.

1. Appraisals, escrow, and fees can add up. Closing costs typically range from 2% to 5% of the purchase price and include fees like appraisals, escrow, and title insurance. For a $600,000 home, that’s $12,000 to $20,000. It’s a major number that surprises many buyers, so get a detailed estimate from your lender before you make an offer.

2. Expect to pay insurance and taxes at closing. Lenders usually require 6 to 12 months of homeowner’s insurance and property taxes to be paid upfront at closing. These aren’t optional. And if you’re buying in a flood zone or wildfire area, insurance premiums could be even higher in 2025.

3. Inspections reveal hidden expenses. A general home inspection can range from $500 to $2,000, depending on location, size, and age of the home. Specialized tests for mold, radon, septic systems, or wells can drive costs even higher. After inspections, negotiated repairs, pest treatments, or appliance replacements are common. Don’t forget new-home costs like blinds, landscaping, and minor repairs; these add up fast.

4. HOAs charge more than dues. Buying into a homeowner’s association? Be ready for upfront fees like HOA transfer, initiation, or capital contribution fees, which can range from $250 to $1,500. These fees are non-negotiable and due at settlement—make sure you understand the HOA’s full financial requirements before you go under contract.

5. Utilities come with setup costs. Moving in means activating utilities like water, gas, and electricity, and most providers charge a deposit based on your credit history. These fees can range from $100 to several hundred dollars, and there may also be installation or activation costs. These aren’t typically factored into a buyer’s upfront budget but are very real expenses.

Buying a home in 2025 is an exciting step, but without a full financial picture, it can quickly become overwhelming. If you’re serious about buying smart, let’s make sure you’ve covered all the costs. I offer a no-obligation, one-on-one consultation to walk you through everything. Schedule your buyer planning session today at (707) 280-5040 or send an email to shawn@hermosillogroup.com. I’d be happy to help you plan with confidence!