You have decided to leave your renter’s life behind and enter the wonderful world of home ownership. But are you truly prepared for your new endeavor? There are several expenses renters do not pay that a homeowner must take care of. Let’s talk about some of them!
One of the biggest things that scare people once they decide to buy a home is maintenances. Things are guaranteed to break and your toilet and skinks will clog. There isn’t a landlord to call when things go wrong, so what do you do? You have to fix them on your own or pay for a repair person. Before finding a house to buy, make sure your monthly budget can afford monthly repairs.
In 2013, the average American spent $2,132 on property taxes. Estimate your new home’s taxes by using an online guide to help you. Add the cost of these taxes into your monthly expenses to make sure you can afford your payments.
The average insurance is $35 per month for every $100,000 of your home’s value. It could be more depending on the area and age of your house.
Many neighborhoods have a Homeowners’ Association attached to the home. Some perks of belonging to an HOA is neighborhood landscaping, community pools, and use of common areas. While these luxuries are paid for with your monthly rent, these amenities are paid for through a separate bill when you own a home.
When you are renting, some or all of your apartment’s utilities are being taken care of. But when you own a house, you will be in charge of water, electric, phone, gas, internet, cable, and yard maintenance. When approaching your budget, make sure to factor these into your monthly costs so you know exactly how much you will be paying each month.
Living in a home is vastly different than living in that one bedroom apartment. You must be prepared to pay these expenses as well as the house payment when you move. To help you prepare for these changes, set aside the difference between your future expenses and your current expenses for a down payment. For more information or to start your home buying process, speak with a Clagett Enterprises real estate agent today!
Buying a Residential Property with Clagett Enterprises
At Clagett Enterprises, we have extensive experience serving the greater Frederick area and Western Maryland, since 1987. Our team is a full service real estate company that’s ready to help you with your real estate needs. Speak with a Clagett professional at 301-665-6009, or request a proposal for preventive maintenance here.