On a tight budget? Be sure you know about the hidden costs of owning a home. It’s still better than renting over time but you want to be prepared as a homeowner… you can’t just call the landlord (YOU are your landlord!).
Owning Your Home is Great but Know This...
I saw this article from Realtor.com about the “hidden costs” of owning a home. A couple things come to mind; how much of this “hidden” cost can you know before you buy a home; and also, what decisions can you make before you buy that will influence how much you’ll have to pay over the years.
This article gives the example for these “hidden” costs of maintenance or repair items such as broken water heater, refrigerator or leaky roof. How soon and how much these things will cost you depends on the home you buy. When you buy a NEW home, the funny thing about that is… EVERYTHING is NEW (and is often covered by a builder’s warranty). If you buy a home that is 30 years old or more, your maintenance and repair costs will be a lot more, and more frequent, than a home that’s only a few years old. Your “hidden costs” can be mitigated substantially by the decision you make BEFORE buying.
Another decision you can make BEFORE buying that will hugely impact your “hidden costs” is where you move to! This article shows how much “hidden costs” are by state; with Idaho coming in at $16,197 per year compared to California at $28,790. Hawaii is the most expensive, just edging out California, at $29,015 while Kentucky is the lowest at $11,559.
But how many of these “hidden costs” are actually hidden? This article includes in these costs property taxes, homeowners insurance, and utility costs. All of these costs can be pretty much known, at least for the near future, before you actually buy the home. Costs that are not included in these calculations are those maintenance and repair costs we just talked about… even though those can be costly (depending on what you buy).
Treasure Valley Dave's Thoughts
There are costs that come along with owning a home. Hidden costs? Not really. Property taxes, HOA, insurance and utilities are not hidden at all and you and your real estate agent (me!) can get those numbers before you buy a home. Maintenance and repairs costs will depend largely on the age of the home you buy and where it’s located. Before you close on your home, I suggest you have a home inspection done to give you a good idea of the repairs the home needs now or in the near future (we may be able to get the seller to pay for some of those costs). And lastly, if you buy a home in, for example, Idaho, many of your “hidden costs” will be a whole lot less than is some other places!
