Posted 4 years, 7 months ago

If you are actively shopping for a new home, below are some items to keep in mind when calculating your homeowner’s budget.

Monthly Expenses

  • Principal and interest payment on your mortgage
  • Real estate taxes
  • Homeowner’s Insurance: ask insurance agent for an estimate
  • Heat: check owner's current bills
  • Electricity: check owner's current bills
  • Additional costs: water, sewer, trash collection, homeowner’s association dues

 Repairs 

  • Go to your home inspection appointment.  Ask questions, and hold on to the report.  Some repairs may be done by the seller.  But some things may be future concerns, like a roof, furnace, or water heater.  Inspectors can tell you when major components may need replacing.  A furnace can last 12 to 15 years, a water heater, 10 to 12 years.
  • Address all problems when they come up.  A loose bathroom tile can be fixed for a few dollars.  Ignore it and you may wind up rebuilding a wall.  Set aside $500 to $1,000 a year for these small repairs. 

Improvements 

  • Estimate when you'd like upgrades done.  Can you live with those kitchen countertops another two years, or another two months?  When will you need a new deck?  What about landscaping?  Will you put on an addition down the road?  Decide what you want, get rough estimates, and start putting money aside.
  • Experts suggest homeowners have 1% to 3% of the purchase price of the home socked away for improvements and surprise expenses. 

We hope that you find this information useful.  Please don’t hesitate to contact us with questions anytime.

Sincerely,

-The Kavanewsky Team