As a homeowner, there are five hidden costs that you might run into:
1. Closing costs: Everyone knows about the down payment when you buy a house, but many forget about the closing costs like the transfer tax, title insurance, and lender fees to name a few.
2. Furniture:Study after study has shown that the amount you’ll spend on furniture is the most commonly underestimated cost in buying a home. Make sure you consider (and overestimate) the money you’ll spend on furniture and decor before you get a mortgage pre-approval and decide on your purchase price range.
“Don’t forget about the maintenance costs you could have five to 10 years down the road.”
3. Ongoing maintenance: Most people think about paint, carpet, and other things that you take care of when you first buy a home. However, many people also forget that the furnace might go out after 10 years or the roof will need to be replaced. These things can sneak up on you if you’re not saving money each month in an account for emergencies and deferred maintenance.
4. Taxes and insurance: Property tax, school tax, county tax, and insurance are often overlooked and cost a good bit of money.
5. Utilities: Most people think of electric and heat, but you can’t forget to factor in costs like your water and trash bills if you’re in a public municipality.
Make sure you know everything you need to calculate before you decide how much you want to spend on a home. If you have any questions about figuring out these costs or you’re thinking of buying or selling a home, give us a call or send us an email soon. We’d be happy to help.