Purchasing a new home is an exciting time and a chance to start fresh with decor. However, moving can be a downside, especially when there are unanticipated aspects like the cost. A new study from Forbes Advisor reveals just how much of a financial strain underestimating costs is. According to the study, an overwhelming 80% of people fell short of their moving budget estimates by an average of $723.

The survey, conducted by market research company OnePoll and commissioned by Forbes Advisor, highlights the common miscalculation of moving expenses. The actual average cost hits $1,035, excluding costs like deposits and rent or mortgage payments. Half of the study’s participants initially believed their moving costs would be under $500.

Coping with Unexpected Costs

The study also examined how people deal with these extra moving costs. Around 40% use their savings, and about 25% borrow money from friends or family. Moving is generally more expensive for people buying a new home than for those who rent. First-time movers, especially, end up spending a lot more than they expect.

Costs Vary by Location and Choices

Where you move from and how you decide to move can change the cost. For example, moving costs less in the Southwest, around $930, and more in the West, about $1,180. Most people try to save money by moving their own things instead of hiring movers to cut costs.

First-Time Movers

First-time movers encountered the steepest unexpected costs, averaging $1,239, unlike seasoned movers who reported much lower unforeseen expenses. The lack of experience could lead to underestimating costs such as packing materials, utility fees, and even gas for travel.

Understanding that moving expenses often exceed initial expectations can help movers better prepare and budget. Consider all potential costs, including easily overlooked expenses such as time off work and post-move cleaning.