4 Expenses New Homeowners Don't Think About Before Closing

by Carolyn Kay 07/12/2020

Purchasing a new home is an exciting and life-changing event. While you likely know that you'll need to be able to afford to pay your mortgage each month, there might be other expenses that you aren't as familiar with.

1. Maintenance Costs

It makes sense that you'd need to include money to address the inevitable maintenance costs that a home requires. After all, you probably perform routine maintenance on your car if you own one.

For many people, though, the fact that home maintenance occurs so often and that it takes a sizable amount of money is a surprise. A good rule of them is to plan on spending one to two percent of your home's value in maintenance costs every year.

2. Utilities

Whether you've never had to contend with utility bills directly before or you're moving from an apartment or condo into the larger space a home provides, your monthly costs for heating, cooling, natural gas and the like could come as a shock. There's a huge discrepancy between costs according to where you live as well.

Expect to pay more for utilities in large metro areas like New York, Los Angeles and Chicago, for example. Homes in southern states that don't have much of a range in temperatures will likely cost you less in utilities.

3. Property Taxes

Property taxes are another expense that can span a huge range depending on where you live, the state of the economy and the size of the dwelling. Property taxes can fluctuate frequently when the municipality where your home is located reassesses the homes.

4. Homeowners Insurance

Homeowners insurance is a must for your home if you are getting a mortgage to pay it off. Even if you are fortunate enough to have the cash to purchase the home in full, opting for homeowners insurance is still a smart move.

Homeowners insurance that offers you the replacement cost of items that are damaged in a fire or stolen provides you with a better deal. When shopping around for homeowners insurance, ask about any discounts you might qualify for. For example, you might try bundling your vehicle and homeowners insurance together for a discounted rate.

Plan ahead by exploring what these five expenses could mean for your budget after you become a homeowner. Setting aside a small amount each month can keep them from making such a big dent in your wallet.

Expenses

Closing On A Home

New Homeowners

About the Author

Carolyn Kay

As a Real Estate professional, I specialize in helping my clients buy, rent or sell properties in Westchester County. I am passionate, dedicated and committed to my clients and my first priority is to provide them with first class service and guidance throughout the entire process. It has been said that I go above and beyond for my clients to get the deal closed! I have experience working with clients who have financed their purchases with either a conventional, VA or FHA loan and have a good understanding of how they work; no sale is too big or too small for me to take on. My family and I relocated to England for 2 ½ years, this was a wonderful experience but at the same time, it was overwhelming. I have first hand knowledge of the challenges as well as the positives in discovering a new community. I was born and raised in Scarsdale and once married, my husband and I decided to raise our two daughters here. Both of our daughters successfully graduated from the Scarsdale schools and are both married, living and working in Manhattan. After living in the same house for 30 years my husband and I took the leap, sold our home and bought and renovated a condo townhouse in another town. Once again we are discovering a new community and fully understand the highs and lows of selling a home we loved and buying and making a new home. I feel that my personal real estate experiences have made me more in tune with my client’s needs and therefore better able to help them navigate through the complex process. Please call me so that I can put my knowledge and experience to work for you.