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October 21, 2017

8 Items Buyers Need to Add to Their Budgets

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8 Items Buyers Need to Add to Their Budgets

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.

Read more: 10 Budget-Friendly Home Improvements This Winter

Help your buyers get an accurate estimate of how much ownership will truly cost them. Here are a few of the common expenses they’ll want to add to their budget, along with estimations of costs (note: costs can vary dramatically from region to region; prices listed are based on national averages):

  1. Closing costs: Add in an estimated 2% to 5% of home price.
  2. Homeowners insurance: Add $1,100-plus per year.
  3. Homeowners association fees: Add $10 to $575 per month.
  4. Property taxes: Add $1,000-plus per $100,000 per year.
  5. Home maintenance and repairs: Add several hundred to several thousand dollars.
  6. Home furnishings: Add several hundred to several thousand dollars.
  7. Lawn care and outdoor maintenance: Add $100 to $200 per month.
  8. 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 (Jan. 25, 2017)