When buying a home there are so many things to consider, especially when it comes to budget and what expenses to expect. Here are just some of the main expenses that you will need to plan for when purchasing your house.
1. Property Taxes
Property Taxes in Arizona are relatively low compared to other states in the U.S. For many, your property taxes will be rolled in with your mortgage payment, which is important to keep in mind when figuring out what you can get approved for. Leaving the Phoenix city limits can also effect how much you will pay in taxes. For example, Scottsdale pays two types of taxes. Make sure to ask the Barbie Lindsey Team for what the taxes are when you are looking in a specific area.
2. Home Owner’s Insurance
Home Owner’s Insurance is a required expense if you are a planning to have a mortgage. The purpose of Home Owner’s insurance is to protect their asset (your home). The cost can vary depending on the value of your home and what type of insurance you need. This expense is often lumped in with your mortgage payment as well.
3. Home Owner’s Association Dues
This is an expense you will need to take into consideration if you choose a home, townhouse, or condo that has an HOA. This expense gets factored into what your mortgage lender will approve you for. This expense can vary by community, make sure to factor in the cost along with your monthly mortgage to make sure you can afford the added expense. If you are looking for a home with little to no maintenance homes with HOAs can be a great option. Often HOAs for Town homes and condos will cover exterior maintenance, pools and exterior of homes.
4. Home Warranties
A Home Warranty is different from your Home Insurance. It is extra protection on things such as garbage disposals, appliances, toilets, leaks and more. Cost can vary depending on what you would like covered. Home Warranties often cover things that your Home Insurance does not. You can expect to pay a small service fee for every time you utilize your Home Warranty.
5. Basic Utilities
It’s always a good idea to get an estimate on what your monthly utility costs will be. Some homes with HOAs will include trash pickup and water which, while owning your own home with no HOA you will need to calculate those costs. You can contact utility companies to learn what the average monthly cost is for a property so you can get an idea of what utility expenses you will have each month. You can also contact the owner who may be able to provide you this information as well.
6. Appliances and Fixtures
Some homes are not sold with all appliances, whether it’s the fridge or washer and dryer. These would be added expenses that can cost thousands of dollars. These are not just initial costs but also to factor in over time. Appliances and fixtures are the most common items that need replacing in a home. Factoring in what appliances or fixtures you may need to replace in the future will help you plan ahead.
7. Property Maintenance & Repairs
Owning your home comes with great responsibility. You now need to figure out how to fix and maintain everything within your home. If you are not handy with tools you should factor in costs for a handyman for when/if something malfunctions. It’s wise to set aside money to save for things that may unexpectedly break.
8. Property Updates
If you are looking for a fixer upper make sure to have a renovation budget in mind before you purchase a home, while also planning for contingency.
If you are looking to buy a home you’ll want to think about the future. If you know you will eventually sell your home think about what other homes are offering in the neighborhood. You may need to think about what updates your home will need to sell in the future and should plan accordingly. Know kitchens and bathrooms will provide you the best return on investment.
9. Landscaping and/or Pool
If you are not purchasing a home with an HOA you may need to figure landscaping and pool maintenance into your monthly budget. Pools require maintenance throughout the year requiring chemicals, equipment, and if heated, higher electricity bills. When it comes to landscaping you can hire a company or purchase equipment yourself. Research costs and plan for what works for you and your budget.
These are some of the main expenses you can expect when purchasing a home and what to prepare for. It’s important to plan ahead in case any unwanted expenses pop up.
If you are in the market for a new home, make sure to Contact the Barbie Lindsey Team today!