Sandi Boucini & Michelle Granger - RE/MAX Executive Realty



Posted by Sandi Boucini & Michelle Granger on 10/11/2017

When you budget to buy a home, you sit down, do the math, and try to estimate what all of your monthly costs will be. There are so many monthly costs that come with being a homeowner that can make the whole process complicated. Sure, you have taken the standard costs into account like home insurance, property taxes, and even utilities. But there are a few out-of-the-box costs that youíll need to consider for your house hunt.


Flood Or Other Natural Disaster Insurance


Natural disasters are costly and devastating. Many homeowners who live in areas that are affected by natural disasters like floods and earthquakes often opt for additional coverage for their homes. Premiums for earthquake and flood insurance often end up being very high. As a natural disaster strikes, these premiums can go up even more. If you live in one of the high-risk areas for natural disasters, youíll want to check with your insurance agent ahead of time to plan for the additional costs that these special kinds of insurance will incur.


Water Costs During A Drought


There are many areas across the US that suffer drought conditions from time to time. Your water bill can skyrocket during these times. Itís best to continue conserving water and watch your bill closely in order to try and save some costs. Thereís not a whole lot you can do otherwise to control your bill. Youíll need to stay prepared with some extra cash on hand in case of these emergencies and know that costs can rise due to different environmental conditions.  


Tax Hikes And Special Assessments 


As a homeowner, youíll need to prepare for different kinds of assessments and tax increases. If your condominium complex needs significant repairs then youíll probably end up paying an assessment to help offset the costs. This is what comes with belonging to a homeownerís association. 


You canít prevent that the town is building a brand new school that requires a tax increase, nor can you prevent roof damage on one of the buildings in your complex. Financially, this is a hidden cost of homeownership that you should be prepared for. 


Unexpected Maintenance Costs And Home Furnishings


Once you move into a home, youíll need to prepare for the unexpected. The dishwasher may need to be replaced. The roof may need repair. The walls may need some paint. 


When you buy a home you may also need a bunch of things to furnish the home. These could include dishes, pots and pans, sofas, beds, and more. You donít want to leave your new home completely empty! You also donít want to be without vital appliances like an oven or a sink for too long if they are outdated or in disrepair. This is why itís a good idea to have extra money on hand to deal with any of these costs.


The best rule of thumb to follow when buying a home is to always be prepared with a but of extra cash on hand to avoid major issues down the road.