Buying a home is exciting, but it’s not something you can take lightly. While your home can act as a great long-term investment, this is only true if you properly care for the property. Owning a home is a costly task with many expenses new homeowners don’t think to expect. Following is a list of the 5 most substantial costs.
Buying and Selling Costs
Although these costs aren’t recurring, you should carefully consider the expenses associated with both buying and selling a home. Before you invest in a home, you must have adequate funds to cover your down payment as well as the home value appraisal, property inspection, escrow fees, origination fees, document preparation fees, and more.
Even if you plan to stay in your home for decades, you never know when an unexpected event like a job transfer could force you to sell. When you sell the home, you’ll need to pay a commission to agents, a transfer tax, and other costs.
Mortgage companies require that you carry homeowners insurance, but it’s still a smart investment to have this insurance even if you’ve paid off your home. This necessary cost protects you in unexpected emergencies and catastrophic disasters.
Also, you can always rest a little easier when you know that there’s a solution available if your home or belongings get damaged. A site like homeownersinsurance.com will help you find the best plans. This is an essential expense all homeowners need to consider.
Your utilities are a major cost that you’ll have to deal with every month. Homes are usually larger than apartments, so water and power typically cost more. If you didn’t have to pay for water and sewer with your rental, then you suddenly have a whole new bill to contend with in your home.
Trash pick-up is another common expense. Fortunately, you can cut these expenses somewhat by investing in energy-efficient appliances and home management practices.
Appliance Care and Repair
When you’re a homeowner, you also own all the appliances on the property. You’ll need to invest some time and effort in maintaining them with regular jobs like vacuuming the coils on your refrigerator.
When something breaks, you have to pay to repair it. Even DIY jobs need certain tools and parts. As a homeowner, one of the first things you should invest in is a well-rounded tool kit so you can manage minor problems like leaky pipes on your own.
Maintenance and Lawn Care
Regular home maintenance is no small task. Until you’re caring for a home and its associated property on your own, you may not realize just how expensive the job is. A great deal of time and work will go into mowing the lawn, trimming trees and bushes, and maintaining flower beds.
Pest control is another concern you must address regularly, whether you hire a company to spray regularly or use DIY methods at home. From time to time, you’ll also need to repaint the exterior of the home, repair or replace roofing, and maintain the driveway.
Prepare for these expenses before you invest in your first home and you’ll find that you’re well-prepared for financially responsible homeownership that makes the most of your investment.
Joe Fortunato is a freelance writer from Tampa, Florida. He enjoys learning about new subjects, following his Baltimore Orioles, and traveling the country for fishing. You can find Joe on Twitter at@joey_fort.
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