Buying a home is a big expense. But the purchase price isn’t the only cost to weigh when looking for a home. Here are some other expenses to consider.
Taxes: Property taxes can take a heavy toll on your housing budget. Keep in mind that your taxes can vary widely from previous property tax bills. The previous owner may have had exemptions you don’t qualify for, such as those for the elderly or disabled veterans. Additionally, a 10% cap on property appraisal values ââfor family properties will not remain in place when the property changes hands.
Assurance: Most lenders will require you to purchase home insurance. Even if you pay cash for your home, insurance will protect you against losses from disasters and accidents. There are many factors that determine the cost of your insurance, including deductible amounts, whether you want – or are required – to get flood coverage, home materials and location, and more.
Owner associations: Monthly fees for homeowners associations can be less than $ 100 or greater than $ 1,000. Before buying a home in an area with a homeowners association, find out if the HOA is mandatory or voluntary, what amenities it offers, and the cost of the fees.
Repair, renovation and maintenance: Many home buyers visit big box stores frequently after moving in. The cost of new furniture and home improvement projects can add up quickly. Remember to also budget for major items needing repairs – like a new roof or a new air conditioning unit – and ongoing costs to keep your home in good condition.
Your real estate agent can discuss the various costs associated with buying and owning a home to make sure you find the right property for you and within your budget.
The MetroTex Association of Realtors is the largest association of real estate agents in North Texas and the sixth largest real estate association in the United States. For more information, visit www.dfwrealestate.com.