I have had buyers moving everywhere from Southfield to Northville who have called me after a move saying they forgot to factor a moving cost and now are using credit to get by. So whether you are a first time homebuyer considering making the move from renter to homeowner or you are a homeowner looking to buy a new home, there are certain costs associated with a move that need to be considered. These costs are both directly and indirectly related to moving and can impact both your cash flow and cash reserves, leaving you in a less than desirable place if you do not factor them in from the beginning.

When it comes to moving costs, the first thing you want to consider is the move itself. And this can mean a lot of things to a lot of different people, but generally it is either the cost to hire professional movers to pack, move, and unpack your stuff, or the costs associated with doing it yourself. If you go the professional route, you want to know if your quote is an estimate or a firm quote; if it is an estimate based on hours, you should probably account for several extra hours. You will also need to account for a tip (which I would always recommend), and potentially food for the movers.

If you go the self-move route, you will need to pay for boxes, tape, packing supplies, a truck or van, gas for said truck or van, manual help (whether friends or paid movers), and food during the move. Additionally, if you have your friends helping, you will probably want to compensate them in some way.

After you figure out these costs, you will need to consider what costs will be associated with furnishing your new home. Unless you are moving into a house that is the same size and layout as your current home, you will likely need at least a few pieces of furniture and some decor. Factoring in what that will cost ahead of time will mean you don’t have a living room without a couch or a credit card with a balance. When making these considerations, you also want to think about your current furniture and what is likely to be damaged or to break during the trip – it can never hurt to over-budget, but if you don’t budget enough, it can be stressful.

Then there are the less obvious costs. Are you taking time off from work to move? If so, is it covered by vacation time or will it impact your paycheck? A few days of work can add up if you’re eating the days off. You’ll also (probably) want to have the old and new houses professionally cleaned. And during the week or so before and after the move, you will have larger-than-normal food bills, as you will be eating out more frequently, and spending more money than you normally would. Finally, you need to consider whether or not any of your new utility companies will want a deposit. Some companies in the area demand a deposit in exchange for service, regardless of your past history or credit.

There are, of course, far more potential costs than these (moving out of state, hotel rooms, storing your stuff, etc.), but this gives you a good starting point. If you want a more personalized list of what you will need to account for, you should contact a mortgage professional who can help you determine what your costs will be.

If you have any questions about moving, or if you need a prequalification letter, please contact me. If you have any other costs to consider when moving that you would like to add, please leave a comment.