4 Expenses To Think About Before Closing

by Rose Wolkins 11/08/2020

Image by mohamed Hassan from Pixabay

Purchasing a new home is an exciting and life-changing event. While you likely know that you'll need to be able to afford to pay your mortgage each month, there might be other expenses that you aren't as familiar with.

1. Maintenance Costs

It makes sense that you'd need to include money to address the inevitable maintenance costs that a home requires. After all, you probably perform routine maintenance on your car if you own one.

For many people, though, the fact that home maintenance occurs so often and that it takes a sizable amount of money is a surprise. A good rule of them is to plan on spending one to two percent of your home's value in maintenance costs every year. 

2. Utilities

Whether you've never had to contend with utility bills directly before or you're moving from an apartment or condo into the larger space a home provides, your monthly costs for heating, cooling, natural gas and the like could come as a shock. There's a huge discrepancy between costs according to where you live as well. 

Expect to pay more for utilities in large metro areas like New York, Los Angeles and Chicago, for example. Homes in southern states that don't have much of a range in temperatures will likely cost you less in utilities. 

3. Property Taxes

Property taxes are another expense that can span a huge range depending on where you live, the state of the economy and the size of the dwelling. Property taxes can fluctuate frequently when the municipality where your home is located reassesses the homes. 

4. Homeowners Insurance

Homeowners insurance is a must for your home if you are getting a mortgage to pay it off. Even if you are fortunate enough to have the cash to purchase the home in full, opting for homeowners insurance is still a smart move. 

Homeowners insurance that offers you the replacement cost of items that are damaged in a fire or stolen provides you with a better deal. When shopping around for homeowners insurance, ask about any discounts you might qualify for. For example, you might try bundling your vehicle and homeowners insurance together for a discounted rate. 

Plan ahead by exploring what these five expenses could mean for your budget after you become a homeowner. Setting aside a small amount each month can keep them from making such a big dent in your wallet. 

About the Author
Author

Rose Wolkins

REALTOR® Rose Wolkins has been building a long list of satisfied San Diego home buyers and sellers since she began her real estate career in 1988.

Her motto “Building lifelong relationships one home at a time” exemplifies both her attitude and the care and commitment with which she serves each client. It all begins with communication – in listening well, being readily available to answer questions, and keeping clients fully informed throughout their transactions. She’s also known for staying one step ahead of things, so she can keep transactions on track and address issues before they become problems.

Always striving to do the best for her clients, Rose stays current with changes in laws and technology through taking numerous classes throughout the year. She also stays current with the ever-changing San Diego housing market.

While she thoroughly enjoys using her advertising, photography, staging, marketing, and negotiating skills to successfully sell her listings, her favorite part of the business is handing overjoyed buyers the keys to their new home. She loves sharing the joy.

In addition to supporting her clients, Rose supports the real estate industry and was voted chairperson for the North County Real Estate District Coordinating Committee several years in a row. Voted a 5 Star Top Real Estate Agent for the past several years and now again in 2020, she’s also a member of the Women’s Council of Realtors.

In her free time, Rose enjoys reading, gardening, exercising, using her considerable photography skills, and spending quality time with friends and family. When you’re looking for a San Diego agent who knows the territory well and who will dedicate herself to turning your real estate goals in to reality, take this advice from her past clients: “Call Rose Wolkins.”