Home Add-Ons That Trip Some Buyers Up

Blog

Some first-time buyers are nearly beside themselves in excitement at owning their first home. Read on and find out about some home add-ons that could surprise buyers that are not unaware of the accurate cost of owning a home.

Utilities may be more costly. One of the biggest motivators for those who move into their own home is the quest for more room. Growing families need room to spread out. Just be sure you are prepared for the differences in heating, cooling, gas, water, and other utility costs in your new home. Larger homes will take more money to heat and cool but other factors can influence costs as well:

• Some acclaimed school districts got that way via large property tax costs.
• Buyers who fill a pool might want to check with the water company to find out about the costs first.
• Gas stoves are the preference of home chefs everywhere, but be sure you understand the cost if you are not accustomed to that bill each month.
• Various cities and counties have diverse surcharges that come with the monthly electricity, internet, cable, or water bill. Ask for a summary of last year's utility costs so you aren't shocked by a big bill.

Surprise! Your monthly mortgage payment could be a bit higher than you at first thought it would be. The amount you are approved to spend for a home is based, among other things, on your projected monthly budget. Some buyers fail to take into consideration the issue of escrow. The word escrow, in this instance, is a sum of money set aside in a special account. From this account, your lender will pay your property taxes and sometimes, your homeowners' insurance premiums. Once you receive your first mortgage billing statement, you may see how your payment breaks down. Most buyers receive a statement each year with the escrow information reported. Be sure to budget for the full amount you need to pay your lender each month and not just for the mortgage.

No calling the landlord now. When something stops working, you must deal with it and pay for it yourself. It's best to set aside about 3% of the value of your home for repairs and maintenance needs. Add to that yard maintenance costs, homeowners' association (HOA) fees, pest control, and more.

Most of the add-ons mentioned here are far from optional, however, many can be estimated in advance. Speak to your residential real estate agent about avoiding surprises with the add-ons and that way you can be prepared to budget for them

Share

15 March 2022