Selling an Apartment and Buying a House? 3 Things You Must Know

You don't want to get caught off-guard financially.

Buying an apartment could be a wise financial decision, as it could allow you to build equity in a home at a time when you want to live in a city or you don't have a need for so much space. But once your circumstances change, such as if your family starts growing, then you may be inclined to sell that apartment and upsize to a detached house. Doing so could result in a lot more room and a lot more comfort.

Now, you may be aware that your mortgage costs might go up when you move from, say, an apartment 1,200 feet in size to a home of 3,000 square feet. And your property taxes might follow suit.

But there are a few lesser-known costs you might encounter when you're selling an apartment and buying a house. Here are a few to keep on your radar.

1. You'll need more furniture

There's a strong chance a house is going to have more rooms than an apartment. And you probably don't want those rooms sitting empty. Make sure you budget money for furniture so you're not forced to finance it and rack up interest in the process.

Of course, you don't necessarily have to furnish your entire home at once if money is tight. You could order your empty rooms by usage and priority and furnish them one at a time. But either way, it's an expense you should plan for.

2. You should expect your utility bills to rise

Heating and cooling an apartment is apt to be less expensive than covering utility costs for a house. That's something you'll want to budget for, too.

Calculating your utility bills for your new home may be tricky. One option, though, is to try talking to property owners in the neighborhood you're moving to so you can get a sense of their costs. The seller of the house you're buying might also be willing to share information on average utility costs so you know what to expect.

You can also take a look at the most recent SaveOnEnergy.com® Electricity Bill Report, which will give you an overview of average utility costs by state. But the numbers you see there should really only serve as a baseline, with the understanding that your utility bills will hinge heavily on the size of your home, the efficiency of your appliances, and your personal usage.

3. Extra storage space might lead to added spending

Buying a house might leave you with a lot more storage space than you're used to having if you've been living in an apartment. But the more room you have, the more stuff you might buy to fill it.

Granted, this issue is easily solvable by exercising self-control. But you may need to make a conscious effort to limit your shopping and spending once you discover the beauty of having a house full of closets.

Moving from an apartment to a house might lead to a better quality of life for you. Just be sure to fully account for the various extra costs involved.