While buying a home may seem like an excellent idea and the perfect way to save money without throwing it away to a landlord, it can still be pricey. On top of the cost of a mortgage, first time home buyers should be aware of the small, hidden costs that can cause them to spend a lot of money on their own home.
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Utility Bills
While not as common as it was in the past, many landlords still include utilities in the cost of the rent. This ensures that the utilities are always paid as long as the rent is and can help renters lower the amount of bills they are paying. Home owners do not have any choice when it comes to utility bills, everything that is associated with the home will be billed to the owner.
Repairs
When renting a home, it is generally required that landlords fix major house repairs that aren’t the result of neglect or targeted at harming the integrity of the home. Home owners that were previously renters may be shell shocked the first time they have to pull money out of their pockets to fix a leaky sewage system or repair a collapsing roof. However, it pays to know of good repairs companies, like CampbellCare Plumbing, Heating and Air, that you can call in a pinch when you really need the help.
Furnishings
Many people that choose to go from a rented home to a owned home will upgrade the size of their home. Whether you are going from a small apartment to a house or simply adding an extra bedroom, furniture is something you should consider when purchasing your home. It may seem like a small expense, but furniture prices can add up in a big way over time.
Inspection
This point is something for buyers to consider before they buy their first home. Any reputable real estate agent will suggest that the home be inspected and appraised before purchase to ensure that the buyers are not getting charged too much for something that is not liveable or a sound structure. These fees are generally paid out of pocket by the purchaser and are usually not refundable if the home does not pass an inspection.
Taxes and Homeowner Fees
Many neighborhoods require that home owners within the neighborhood pay a required HOA fee that helps keep the streets and other features looking nice and functioning properly. Another thing most home owners will have to consider is the yearly property taxes that are enforced in most states. Both of these yearly costs can add up.
