3 Often Overlooked Costs Associated with Buying a Home

Posted by Dan Wolf on Monday, November 10th, 2014 at 8:31am.

 

 

Home buying in the twenty-first century should come with a handbook of do's and don'ts!

While it's true that planning can help out tremendously for first time homebuyers, even those who are armed with the previous knowledge can sometimes get into trouble. Which is to say, people so often get in over their heads when they buy their first home, they have no resources to help dig themselves out when times are tough.   

That's because (unfortunately) there are more costs associated with owning a home than just a mortgage, a fact that is overlooked far too often.

Here are three often overlooked costs of owning a home that you should be aware of.

Taxes on Property

New homeowners sign the dotted line for their lender, but ultimately forget about the taxman; until he shows up at the door. Because even after you pay off your mortgage, in most municipalities, you will still owe property taxes for the lifetime of the home. Research costs and tax rates associated with your new home with the local city hall before you make the final decision.

Insurance and Risk

Renters have nothing to worry about when it comes to risk. For example, if someone falls on their property, they are not beholden to paying insurance fees, etc. But for a homeowner, the same situation may result in a lawsuit. This means that your insurance could shoot through the roof, more so if medical bills are included. Homeowners often forget how important adequate insurance premiums cost.

Maintenance

When a home is freshly placed on the market, it is staged to look maintenance-free. Staging is a common home selling practice.

But don't let the wool get pulled too far over your eyes. It's important for any person who is buying a home to look into the future. In 15, 20, or even 30-years from now, what maintenance costs will you have to put into your home. A new roof? Furnace? What amenities will you afford yourself? Finished basement? Home addition? Finished attic?

These costs can add up fast, and are rarely incorporated into the initial costs of buying a home.

 

Remember, buying a home is a commitment, one that can sometimes last a lifetime. So before you get blinded by the excitement of buying a new home, do your research. Your future depends on it.

For more information on how we can help you, please contact us any time at 907-248-9653 or visit us online at www.anchoragehomesearch.com



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