When you buy a home, the biggest expense you need to worry about other than paying for credit repair services if your score is low is saving for your down payment, right? Not exactly. Home ownership comes with many costs, from routine maintenance to extensive repairs upwards of $10,000 or more. Before buying a home, it's critical to be aware of the additional prices you may need to pay.
What are some of the most common costs of home ownership? While some, like termite removal, typically happen prior to the sale with seller assistance, in most, the onus falls upon you to cover the full cost. Taking proper precautions when buying can help, but it can only do so much — things will, inevitably, break down a few months or years after your purchase.
1. Home Inspections and Termite Removal
In many jurisdictions, obtaining a mortgage means paying for a termite inspection certificate. Without such documentation, many lenders will turn you down for a loan as these tiny terrors can destroy the value of your investment and render it unfit for habitation in extreme cases.
In many areas, the seller pays for the basic inspection and treatment if termites are found. However, home buyers do retain the right to request additional repairs such as removing shrubbery and trees near the property. If they make such demands, these can become basis for negotiations, or the seller may decline to provide the services requested, leaving the cost to the buyer.
2. Paint and Flooring Upgrades
Even the tidiest homes need occasional upgrades to keep them looking up to date, and any surface hands or feet touch eventually need freshening up. While paint costs relatively little, unless you are very handy with tape and patient with your weekend time being usurped, you'll have to budget for a painter.
Some flooring choices do last longer than others. Carpet is a popular choice due to softness underfoot and insulating reasons, but those with pets can find allergies exacerbated when fur gets trapped the nap over time. Hardwood looks beautiful, but claws can scratch it. Tile lasts a very long time, but can feel cold on bare feet.
3. Roofing and Gutter Repair and Maintenance
Your roof is one of the most important parts of your home, but anything designed to keep the rain and snow off your head bear the brunt of the weather itself. This means, sooner or later, you will need to replace your roof. You have several roofing choices. Traditional asphalt shingles need replacing most often, but nevertheless remain popular due to their lightweight nature. Tile roofs last longer, and repairs to individual pieces can be made without replacing the entirety of the roof.
Your gutters will need regular cleaning to avoid leaky roofs and water damage. If you are nervous about heights, you will need to budget for a cleaner every three to six months, depending upon the amount of foliage surrounding your home.
4. Keeping Warm (or Cool) and Cozy
Heater, water heater and air conditioning repairs can cost a pretty penny. In the cooler northeast, many homes are built without central air, but in warmer parts of the country, it's a must. Staying warm matters no matter where you live, and heating repairs can cost a small fortune.
Your furnace breaking creates the most problems, but the thermostat can cause issues, too. Furthermore, failure to change your filters regularly can result in clogged ducts requiring professional cleaning.
5. Fridge on the Fritz? Appliance Repairs
Anyone who has ever wasted a Saturday morning cruising the aisles of their local big box home improvement store knows appliances can cost quite a bit. So when the refrigerator goes on the fritz, this means breaking out the credit card if you've failed to save for the eventuality or haven't covered your appliances under your homeowners' warranty.
Experts recommend budgeting anywhere from $900 to $8,000 for a new refrigerator. They also suggest budgeting approximately $1,000 for each additional appliance, although some, such as a new stove or a new washer and dryer may cost more.
Those with bigger kitchens with more top-of-the-line appliances benefit from covering them under their home warranty. While this may cost a few additional dollars monthly, if your budget is tight, you will save big time in the long run. And, in today's modern world, investing in internet security for your home automation system, if you own one, can keep your data and property safe from hackers.
Preparing for the Costs of Home Ownership
Your home is your biggest investment in many cases, and you want to keep it functioning perfectly and looking beautiful. By budgeting in advance for some of the most common big ticket home repair costs, you'll be able to enjoy pride of ownership for years to come.
