Overlooked Costs of Home Ownership

moneyYou are ready to buy a home.  How Exciting!  Have you thought about the other expenses that could go along with home ownership?  Many home owners go over their budget because they were only counting on the mortgage payments and not the day to day expenses of owning a home.  You should have at least a three month cushion so that if an emergency comes along you will be prepared.   Here are a few things that are often overlooked and that you should consider when buying your next home:

Insurance

This is a cost that can vary per home.  Remember, home owners insurance covers structure and possessions not the problem that causes the damage

Natural Disasters

Many home owner insurance policies cover basic natural disasters, for example hail and fire, but will not cover floods, surface water, or earthquakes. Before you buy a home, contact your insurance agent to see what kind of coverage you would need.

Insurance deductible 

Home owners will have to pay a deductible on any damages.  A deductible is often paid before insurance will pay what they owe.  This is another cost that varies so you MUST read your home owners insurance policy so you know what your responsible for.

Maintenance

Budgeting for the maintenance of systems and appliances will save a lot of money in the long run for home owners.  Air conditioners, furnaces and washing machines will run longer and more efficient if it is has preventative maintenance done.  Home owners insurance won’t cover the cost of replacing broken appliances so if you maintain or service what you already have it will save some green.

Association Dues and Property Taxes

When buyers are looking at houses they sometimes miss the fact that there are association dues and property taxes.  These cost vary depending on the association.  You can always ask to have access to the association fees for the last 10 years to see how much they have gone up and what they cover to help your budget.

Property taxes are due on March 31st and September 31st.  If sign up for homestead by June 30th this can save a little on your taxes.  Just a word of advice – if you do improvements to your home it will raise the value of your home but your taxes will increase as well.

Waste Management

You can’t forget the cost of garbage and Recycling pick up services.  This can vary from town to town.

**Be sure to contact your insurance agent to make sure you have thecoverage you need for inside and out.

**all information provided by the National Association of REALTORS®

Buying a home can be a BIG step but if you don’t know what to look for.  Call me today!!  I can help you navigate through the buying process and make your dream of owning a home a reality.

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