Buying a home is much more than just paying a mortgage bill. Once you factor in association fees, property taxes, utility bills, and home maintenance, owners are often facing a much steeper price that is hundreds of dollars more.
Do you have an accurate estimate of how much ownership will truly cost you? Here are a few of the common expenses you’ll want to add to your budget, along with estimations of costs (note: costs can vary dramatically from region to region; prices listed are based on national averages):
- Closing costs: Add in an estimated 2% to 5% of home price.
- Homeowners insurance: Add $1,100-plus per year.
- Homeowners association fees: Add $10 to $575 per month.
- Property taxes: Add $1,000-plus per $100,000 per year.
- Home maintenance and repairs: Add several hundred to several thousand dollars.
- Home furnishings: Add several hundred to several thousand dollars.
- Lawn care and outdoor maintenance: Add $100 to $200 per month.
- Utility bills: Add $180-plus per month.
Source: “From Closing Costs to Association Dues: The True Price Tag of a New Home,” AOL Real Estate