The Hidden Costs of Buying a Home in North Dakota (and How to Prepare)
- Amanda Wolf
- Nov 19
- 3 min read
Buying a home is one of the most exciting milestones in life, but if you're not prepared, the extra costs can sneak up on you. In North Dakota, there are some unique expenses buyers should plan for, depending on the area, utilities, and property type. Knowing these ahead of time can make your home search smoother, your budget clearer, and your experience a whole lot less stressful.
1. Home Inspections & Specialty Inspections
A standard home inspection is a must, but in ND, buyers often need additional inspections depending on the property.
Common inspections include:
General home inspection
Radon testing
Sewer scope
Well water testing (rural)
Septic inspection (rural)
Average range: $350–$1,000+
These inspections protect your investment by uncovering potential issues BEFORE closing day. Note: Make sure you know your contingency deadline.
2. Appraisal Costs
If you're using financing, the bank will order an appraisal to determine the value.
Typical cost: $650–$ 850. If it's a rural property or farther from town, this can run higher due to travel fees. This is often added to the closing costs.
3. Closing Costs
Closing costs vary depending on the lender, loan type, and property. In general, ND buyers should plan for:
Loan origination fees
Title insurance
Recording fees
Escrows for taxes & insurance
Credit report fees
Pro-rated taxes and specials
Estimated total: 2–4% of the purchase price
Bonus tip: Ask your lender for a detailed estimate early so you can budget confidently.
4. Specials & Property Taxes
North Dakota is known for special assessments, especially in developing communities.
These may include:
Street improvements
Sewer/water lines
Sidewalks
Streetlights
Drainage projects
It is always a good idea to contact the city for any upcoming or pending specials that may not be listed on the website or the current taxes and specials invoice. Both taxes and specials can vary significantly by county and city. Unfortunately, not all upcoming specials are predictable or known. If you are buying in a new community or one that may need updated infrastructure, it is a good idea not to push your mortgage payment to the limit.
➡️ Always review specials and tax amounts before writing an offer. These numbers will help you understand your actual monthly payment.
5. Rural Water, Septic Tanks, and Propane Tanks
Buying outside city limits? Budget for rural living essentials:
Propane tanks: If there is one on the property, is it owned, rented, or out of service?
Propane fills: Sometimes this can be negotiated in the purchase agreement
Septic pump & inspection: Required by some lenders
Rural water hook-up fees or monthly minimums
Well water tests
These are costs often overlooked when purchasing a home, but can certainly add to your monthly or annual expenses.
6. HOA Fees
Whether it's a condo or a development with covenants, HOAs can cover:
Lawn care
Snow removal
Exterior maintenance
Garbage
Community amenities
Monthly estimates: $125–$350+
7. Immediate Move-In Costs
Even "move-in ready" homes come with a few expenses:
Lightbulbs, batteries, filters
Garage door openers
Minor repairs
Professional cleaning
Appliances (if not included)
Changing locks
Internet setup
Utility deposits
These small items add up quickly when you're settling into a new space.
8. Winterization or Seasonal Costs
ND weather is its own category. Buyers may encounter:
Heat tape installation
Roof rakes
Furnace tune-ups
AC service
Snow removal equipment - hello snow blower & shovels!
Sump pump backups
Sprinkler winterization
These aren't required, but they help protect your new home—especially during our unpredictable winters.
How to Prepare (Without Stressing Out)
Here's what we recommend to all our buyers:
✔️ Meet with a lender early
Get a full breakdown of closing costs and monthly payments.
✔️ Add an extra $1,000–$2,000 cushion
Even if you don't use it, it's nice knowing you're covered.
✔️ Ask for a CLUE report
It shows the insurance claim history so you know what repairs were made. Check out our blog on this!
✔️ Review taxes & specials before writing an offer
This is part of our standard process at Rafter Real Estate.
✔️ Use your inspection period wisely
This is your chance to uncover major issues—not cosmetic blemishes.
Final Thoughts
Buying a home is a big step, but it doesn't have to be overwhelming. When you understand the hidden costs ahead of time, you can shop confidently and make a smart, informed decision.
At Rafter Real Estate, we guide you through every step—from your pre-approval to closing day—so there are no surprises, only excitement about your next chapter.
If you're ready to start your home search or want a personalized cost estimate for the area you're interested in, we are here to help every step of the way!
CONTACT US
Amanda Wolf - Fargo Area
701-200-6048
Kelsi Hach - Central, ND
701-471-6198
Danny Imdieke - Central & South Central, ND
701-321-0414