If you are considering purchasing your first home this year, there has never been a better time to do so. Like many other first time buyers, you have probably saved up some money in anticipation of the big purchase. There are some little talked about expenses to homeownership you may not be prepared for.
Here are a few home costs that can take first-time buyers by surprise.
Many home buyers know there will be taxes on the property purchase, but what some do not account for is the appreciation in value of the property and tax rate increases that will both require more money to be paid than originally budgeted for. Another thing that is rarely thought of when it comes to property taxes is the effect making home improvements has on the value of the home and therefore the property taxes as well.
Landscape Maintenance Costs
A nicely cared for lawn does so much to add to curb appeal and draw you into loving a home, but landscape maintenance does not come without its costs. If you have never had a lawn to care for on your own there will be required tools to purchase to keep your lawn in shape or the hiring of professional help to do so.
When renting, security costs are most often included in the monthly rent. With a home these services are paid for solely by the homeowner. When you move in you will definitely want to change all of the locks on your home and you may want to add extra measures like motion sensor lights or cameras.
Maintaining More Space
Not in all cases, but in some, when moving from a rental to your own home you move up to a bigger space. With more square footage comes more space to furnish and to clean. Setting up the extra space and keeping it clean will require more money and some patience if you do not have the money to purchase all the things you need to decorate these spaces right away.
Larger Insurance Policy
Purchasing home owner’s insurance is no mystery cost, but it is not generally thought about when first purchasing a home, but it should be. The reason that the cost of home owner’s insurance should be factored into the cost of purchasing a home, is that it is a monthly cost you will want to have. If you had a rental policy you will want to contact your agent and upgrade your coverage to homeowners. You also want to ensure that everything at your new home is covered. This includes things like the backyard shed.
Pest control is no longer something that just magically isn’t an issue. There are pests everywhere and every home will have its own pest fighting battles depending upon its location. Whether you choose to find do it yourself methods or seek professional measures, it will cost a bit of money.
We are not talking about things that were brought up in the inspection or items that the insurance will cover should something huge happen. This pertains to items that the inspector could not get to, to inspect such as pipes, creaky stairs, etc. It is a good idea to tuck away about 1% of the home’s purchase price to be prepared for surprise maintenance costs.
For more information on homes for sale in Carmel please contact us any time or for help buying a home in Central Indiana please contact us any time. We would love to help you find a home you love in today’s sellers’ market.
More Tips for Home Buyers:
- 9 Valuable Tips for Moving Into Your First Home
- How to Start or Win a Bidding War
- 3 Things to Do Now if You Want to Buy a Home Later
- 5 Ways to Avoid Damage When Moving
- 10 Ways to Rejuvinate Your Home
- How to Pandemic is Helping First Time Buyers