The Hidden Costs of Owning a Home

In addition to my mortgage payment, what other costs will I need to consider?

Well, of course you'll have your monthly utilities. If your utilities have been covered in your rent, this may be new for you. Your Quadrant Homebuyer's Consultant will be able to help you estimate how much utilities normally cost. You'll have property taxes, and you also may have city or county taxes. Taxes normally are rolled into your mortgage payment. Again, we will be able to help you anticipate these costs.

The true costs of owning a home can be overwhelming for a first-time homeowner. In addition to the expenses you might expect (like the mortgage) other costs, like maintenance and utilities, can run up the bill. Here's a list of what you can expect to pay beyond the traditional mortgage and property tax bills.

• Homeowner's insurance
  Average yearly premiums go up every year, so prepare for slightly higher costs than you may be seeing statistically for the previous year.
• Utility bills
  When you own a home, you'll be paying for electricity, heating, cooling, garbage collection, water and sewer. While utility prices vary widely, expect to pay several hundred dollars for these services throughout the year.
• Internet/cable/phone bills
  Unless you drop your land line and go Internet- and cable-free at home, you'll have to pay for these services as well. Expect to pay from $100 to $150 a month for all three services.
• Repair/maintenance costs
  You may be surprised as a homeowner at how often things break or need replacing. And when repairmen charge a fee just to examine a problem (not to mention the cost of fixing it), a homeowner should always hold money in reserve to cover unforeseen expenses and emergencies around the house.
• Cleaning supplies
  Keeping a home clean costs money. There's the expense of buying a vacuum cleaner (and keeping it in good repair), plus the extra cost of must-haves like vacuum bags, sponges, paper towels, cleansers, etc. Even going green still costs you something, so maintain a budget for cleaning supplies.
• Lawn maintenance/cleaning services
  Or if you'd rather bring in a cleaning service, expect to pay about $80 a week or more. If you don't want to cut the lawn, either, throw in an extra $20 to $40 a week.
• Decorating/furnishing/landscaping expenses
  Once you’ve purchased your dream home, you're going to want to furnish and decorate it. You may also want to improve the landscaping or add a deck or patio. Furnishing just a single room doesn't come cheap -- think a few hundred dollars if you buy new. Be sure to have a budget in place for furnishings and other improvements.
• Homeowners' association fees
  If you live in a community with a homeowner's association (HOA), you'll also need to pay homeowners' association fees. These fees vary according to where you live and the services offered by the HOA. They are worth what you pay – just be sure to budget accordingly.