Finding the Hidden Costs
Finding out how much a home costs is trickier than it first sounds, especially for potential first-time home owners. The asking price is easy enough to find. Your Summit NJ real estate agent can get that to you in an instant. The value of the home can be determined by checking area comps and comparing features, a service your agent will provide. The cost of actually living in the home is another matter. Estimate the hidden costs of home ownership when you are planning you budget, long before making any offers. There are several areas which can bump your monthly bills out of your budget.
Utilities
The monthly utilities bills should be the first things you budget. These will likely make the biggest budgetary dent after the mortgage payment. If you have never owned a home, you’ll want to seek expert help in gauging these costs. Call your local power and water companies and find out what the average bill is in a particular neighborhood. Find out if your current usage is considered high compared to others in a similar home. If you have a property in mind, ask the seller if they will give you an estimate of the utilities. Keep in mind, your habits will be the biggest factors in your bills so don’t expect a perfect match. They may set their winter thermostat on 65 while you keep it at 72. You can also ask your Summit NJ real estate agent for a ballpark figure considering the age of the home and the type of system it employs.
Exterior Maintenance
Every home needs at least some exterior maintenance. The type of exterior will dictate how much. Brick requires only minimal rinsing with an ordinary hose. Vinyl siding may need pressure washing after 3 to 5 years to prevent mold and mildew formation. Wood siding and trim may need to be scraped and painted after only a few years, depending on the climate. The yard will need upkeep as well, so keep the cost of mowing and watering in mind when looking at properties.
Insurance
Talk to your insurance agent about the type of policy you will need as a home owner and how much the premiums will be. Certain properties, like waterfront homes, may cost more than others to insure. Do not under-insure your home.
Incidentals
Cable, phone and internet services vary widely from town to town and owner to owner. The local providers can easily quote rates by phone or e-mail. Look for bundled service packages to save money.
Home ownership means more than just paying the mortgage payment. Budget all your expenses to avoid future financial woes.