5 years, 8 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.
- 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
- 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.
- 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.
-The Kavanewsky Team
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