Top 5 Overlooked Home Buying Expenses

Are you currently in the market to purchase a home? If so, you’re probably really excited about researching things like the neighborhood and looking for features like the amount of bedrooms and the kind of appliances that are within the home.

However, before you settle on what you consider to be the home of your dreams, there are some home buying expenses that you might be tempted to overlook that we think that you should consider; ones that, if you have knowledge about them, you can be better prepared when it comes to making negotiations:

Have you thought about homeowner’s insurance, and property tax when buying?

Image via: Celtic Custom Homes

Homeowner’s insurance.

Although you can get a policy that is extremely comparable (somewhere between $50-150 per month), the reason why we put this on the list is that just like car insurance, there are some people who try and skimp on purchasing it. You never know what could happen (an electric fire, flooding, theft) and so it’s always smart to get homeowner’s insurance.

Property tax.

Now, this is one expense that tends to affect people in the opposite way that homeowner’s insurance does; that’s because it’s definitely not cheap nor is there any way that it can be avoided. In figuring out how much your annual property tax bill would be, it’s basically 1-2 percent of the property value of your home. So, if your house is $350,000, be prepared to pay $3,500-6,500 around tax time.

Repairs.

Owning a home is, without a doubt, a part of the American Dream. Don’t forget about the fact that it’s also a major responsibility. When something breaks down or needs to be repaired, whether it’s something as simple as a broken faucet or as costly as new plumbing, that totally falls on you (and in some cases, your insurance company). This means that while you’re factoring in all of the costs that come with having your own house, don’t forget that there needs to be some money set aside for repairs. You’ll be glad that you did.

Before you buy a home look at these hidden expenses

Image via: CGA Partners

Utility bills.

As you’re speaking with a real estate agent or title agency about signing the final paperwork on the house, one thing that you also might want to inquire about is what the average cost of the utility bills are during the peak summer and winter months. Some people have been known to pay as much as half of their mortgage in one really hot or cold month and that can get quite costly.

Lawn care.

When you purchase a home, it’s not like renting an apartment (or sometimes even a house or townhouse). Once you own the property, you are responsible for the upkeep of it. This may not be much of a big deal if you live on a small lot, but if you have a few acres, between cutting the grass and keeping the trees and shrubs well-manicured, it could cost you a few (unbudgeted) dollars. A lot of neighborhoods have home owners associations that make regular lawn upkeep a mandatory thing, so if you don’t plan on doing it yourself, do a bit of research on the best kind of lawn care that there is in your area.

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