The Hidden Costs of Buying a Home in Central Oregon

Buying a home is one of the most exciting milestones in life, but many first-time and even experienced buyers are surprised by the hidden costs of buying a home. While most people plan for the down payment and monthly mortgage, additional expenses can quickly add up—especially in Central Oregon, where factors like rural utilities, wildfire insurance, and seasonal maintenance come into play.

If you’re planning to buy in Bend, Redmond, Prineville, or the surrounding areas, here’s what you need to know about the unexpected expenses of homeownership.

1. Closing Costs: More Than Just Paperwork

When the deal closes, buyers are responsible for closing costs, which usually range from 2–5% of the loan amount. These fees cover:

• Loan origination

• Title search and insurance

• Appraisal and inspection

• Escrow and recording fees

For a $450,000 home in Redmond, that could mean an extra $9,000–$22,500 out of pocket at closing.

2. Home Inspections & Repairs

Most buyers in Central Oregon wisely invest in a home inspection ($400–$700 on average). However, if the inspector finds issues—like a failing septic system in Prineville, or a roof needing replacement in Bend—you could be facing thousands in immediate repair costs.

3. Property Taxes

Property taxes vary significantly across Deschutes, Crook, and Jefferson counties. Buyers relocating from outside the region are often surprised at how these costs impact their monthly payments. Be sure to confirm the annual property tax rate for the neighborhood you’re considering.

4. Insurance & Special Coverage

Standard homeowners insurance won’t always cover unique risks in Central Oregon. Many rural or wooded areas may require wildfire insurance, and homes with wells or septic systems sometimes need additional protection.

5. HOA Fees

Buying a townhome in Redmond or a planned community near Bend? You may have Homeowners Association (HOA) fees. These can range from $50 to several hundred dollars per month, covering amenities like parks, trails, or community centers.

6. Utilities & Setup Costs

New homeowners often underestimate utility costs—especially for rural properties. You may need to budget for:

• Well and septic servicing

• Propane or heating oil

• Snow removal in winter months

• Internet setup (sometimes more expensive in remote areas)

7. Maintenance & Ongoing Upkeep

A good rule of thumb is to set aside 1–2% of your home’s purchase price annually for maintenance. For a $500,000 house in Bend, that’s $5,000–$10,000 per year. Think roof repairs, HVAC servicing, landscaping, irrigation system fixes, or exterior painting.

8. Moving Expenses & New Essentials

Moving costs in Central Oregon can add up quickly, especially if you’re relocating from out of state. Beyond movers and trucks, you’ll likely spend on new locks, window coverings, furniture, or outdoor gear for your new property.

The dream of homeownership in Central Oregon is within reach, but it’s important to prepare for more than just your mortgage. By understanding the hidden costs of buying a home, you’ll be better prepared financially and able to enjoy your new property without unexpected stress.

FAQs

1. How much should I budget for hidden costs when buying a home?

Plan for an extra 3–5% of the purchase price to comfortably cover closing costs, maintenance, and unexpected expenses.

2. Are closing costs negotiable?

Yes—sometimes sellers agree to cover part of the buyer’s closing costs, especially in a slower market.

3. Do all homes in Central Oregon require wildfire insurance?

Not all, but many homes near wooded areas or the outskirts of Bend, Redmond, and Sisters may need additional coverage.

4. How do HOA fees affect affordability?

HOA fees add to your monthly housing cost, so factor them into your budget just like your mortgage and taxes.

5. What’s the most common hidden cost for Central Oregon buyers?

Many buyers overlook septic inspections and repairs, especially when buying rural homes outside Bend or Redmond.