Buying a home is exciting but costly. It is important for homebuyers to factor more than just the mortgage bill into their budget. Owners usually find that after adding in association fees, property taxes, utility bills, and home maintenance that they are seeing a much larger price than they originally intended.
Realtors can help buyers get an accurate estimate of how much ownership will cost them by filling them in on a few common expenses they will want to add to their budget.
(Disclaimer: costs can vary dramatically from region to region; prices listed are based on national averages)
- Closing costs: Add in an estimated 2% to 5% of home price.
- Homeowners insurance: Add $1,100-plus per year.
- Homeowners association fees: Add $10 to $575 per month.
- Property taxes: Add $1,000-plus per $100,000 per year.
- Home maintenance and repairs: Add several hundred to several thousand dollars.
- Home furnishings: Add several hundred to several thousand dollars.
- Lawn care and outdoor maintenance: Add $100 to $200 per month.
- Utility bills: Add $180-plus per month.