owner is something many people aspire to be. We grow up dreaming about the style of home we want to own, what it looks like, how it feels and all the memories and moments we’ll spend in our home with family and friends. On the other side of all those exciting feelings and thoughts is the reality that being a home owner costs money…and it’s more than a mortgage payment.

Once you’ve found a house you want to call home and purchase, it’s exciting to have your Realtor present the offer, negotiate the terms and remove conditions. It’s even more exciting to get the keys on possession day and move in.

For most people, purchasing a home will likely be the biggest purchase of their life. On top of the purchase price of the home, there are a number of other costs (expected and unexpected) you should be aware of. These costs can add up and if they’re not included in your monthly budget they can create major stress. Most people are aware of their mortgage payment amount, but owning a home is much more than just mortgage payments.

 It’s important to consider the following six costs when purchasing a home, because they can add up quickly:

  1. Property taxes: The annual property taxes are based on the assessed value of the home and are usually included in the MLS listing. By dividing the annual amount by 12 you’ll know how much the cost of the taxes will be each month. Taxes are calculated based on the size of the home and the lot, so if you’re shopping for a larger home, it’s important to check the annual tax amount as it can be a significant cost over and above you mortgage payment.
  2. Utilities: If you’re buying your first home and have been renting in the past, you might not have ever paid utilities as they were included in your monthly rent. If you’ve owned a home before you know you’re going to pay for water, power and gas. Depending on the age of the home you buy and the square footage it may cost more for the utilities as consumption will go up based on the size of the home.
  3. Maintenance costs: Just like taxes are certain, so is home maintenance. A home is going to require consistent upkeep, whether it’s appliances needing replaced or annual maintenance of the fence, deck and yard, there will always be something to do or replace. Maintenance costs will cost you time and money and it’s best to be prepared. Having a savings account and putting money in an emergency fund to use for maintenance costs as they come up is a smart way to be prepared.
  4. Repair costs: A house is meant to be lived in and when that happens, items are going to break down. From minor repairs like replacing a burnt-out light bulb to major repairs like shingles or new flooring, there will be repairs needed and the cost of these repairs will be up to the home owner to cover. Just like being prepared for maintenance costs, having an emergency savings account for repair costs will help you sleep easier at night.
  5. Insurance: In order to get a mortgage, you’ll need to have home owners’ insurance. Your monthly insurance premium will be based on the age, location, value of the property, claim history and other features of the home.
  6. Condo fees: Depending on the type of home you buy; you’ll want to find out if there are condo fees. In the event you do purchase a home/apartment/condo that includes this type of fee you’ll be required to pay these monthly fees. The fees are paid by all owners in the building or within the building complex and go towards to the maintenance and upkeep of the property. It also means you won’t be required to do some of the work these fees will cover. This may include garbage pickup, snow removal, landscaping, replacement of building items, etc. The condo fees are a predetermined monthly amount and may increase if the property managers decide to make an increase.

When you factor all of the above costs into your monthly budget, on top of your monthly mortgage payment, you’ll be more prepared for the costs of home ownership. To make sure you have all the information you’ll need to make an informed decision, it’s important to work with a licensed Realtor.

I’d love to work for you and help find you a home. Let’s make things happen.

Have an amaZing day!

People First. Homes second. 

Garrett Zimmerman

Realtor

403.506.5795