5 Costs That Shock First-Time Homebuyers

Hoboken Real Estate Podcast with Brett Sikora

Your mortgage isn’t the only thing you’ll have to pay when you buy a home. Here are five unexpected costs.

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If you’re thinking about buying a home, you need to be aware of all of the costs associated before you decide to take the leap. Here are five expenses that typically shock and/or creep up on first-time buyers.
1. Closing costs. These include mortgage taxes, lender application fees, attorney fees, and more. They vary from state to state and lending company to lending company, so make sure you get an accurate estimate of what yours will be.
2. Home improvements. According to a study by the Harvard University Joint Center on housing studies, the average home maintenance is 1% to 2% of the value of the home per year. For a $300,000 home, that’s around $3,000 per year. A condo will have slightly lower maintenance costs.
3. Property taxes. They vary from town to town and tend to go up most years. However, if you feel like what you’re paying is too high, you can appeal your property taxes on your own or with the help of an attorney.

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Closing costs vary from state to state.

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4. Utilities. These also vary based on the climate and the city you’re living in. In Atlanta, utilities are around $2,600 per year. In Portland, they are closer to $3,800.
5. Homeowners insurance. If you’re getting a mortgage, you’re going to be required to have homeowners insurance regardless. The annual premium is around $1,132 per year.
If you have any questions for us about any of these costs or anything else relating to real estate, give us a call or send us an email. We look forward to hearing from you.