The hidden costs of buying a home

The hidden costs of buying a home
 OMG John 8/8/2018 11:01 AM

Alright, things are going smoothly! You’re in the process of being pre-approved or still hunting for the best home. Either way, there is something lurking in the shadows you might not realize. Hidden costs.

Homeowners insurance

If you live in the Midwest, specifically tornado valley, then you know there is always the chance of tornados, wind damage and hail. This is one reason why you need homeowners insurance.

In this situation, you will always want full replacement coverage. You want to make sure it isn’t super specific. (We all know Nebraska is unpredictable). The best part about all of this is  the average price tag in Nebraska is about $82 per month!

Paying for homeowners association fee (HOA)

Depending on where you buy your home or condo, be sure to know whether there is a homeowners associations fees! This monthly fee helps with maintenance in your gated community. It also pays for new sidewalks, lawn care, onsite amenities and other things we all enjoy.

Property taxes

No matter where you live, you will pay property taxes. We love our state. We are proud Nebraskans at heart, but Nebraska has some of the highest property tax rates in the U.S. This is always changing depending on the county you live in and how the taxes are divvied up. Douglas County has the highest property tax while Platte County has the lowest.

Maintenance on your home

The best part about owning a home is  it is ALL yours! The worst part is the maintenance. If the hot water tank goes, it is coming out of your wallet. There is no longer a landlord or property manager to call.

Even simple tasks can cost a large amount of money like gutter cleaning, carpet cleaning, pressure washing, lawn care and more. Maintenance can cost an average home in the U.S. about $3,435 each year! You can always do these things yourself to save a little bit of cash.

Renovations will happen

Whether you buy a fixer-upper or your dream home, you will eventually want to do renovations. This HUGE expense  is often forgotten about with newer homes.

The average cost for a kitchen remodel is anywhere from $12,594 to more than $50,000! This doesn’t even include the bathroom, master bedroom, new roof, new appliances and other wants and needs in your home.

Utility Bills

If you are locating to a new state, then this will be expensive. In most cases, the utility provider is not located in another state. You will have to provide the security deposit up front with last month’s payment.

This can be up to $400 or more to pay up front just for electricity! This doesn’t include: water, sewer, cable and other needs.

If you are relocating to a new city in the same state, then the provider should be the same. (Whew)! This means just call and get the account switched to the new address. Just remember it costs more to heat and cool, run lights and more in a home versus an apartment.

A new home is an exciting moment in life, but can come with a number of different expenses involved!

Be sure to add this to your budgeting spreadsheet while searching for your dream home.

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If you are in the process of looking to sell or buy a new home contact us - the Fairfield team! Our professionals are experts on finding the best home for you in the Omaha area.