GREENSBORO, NC – You know that feeling you get when you find $20 in your jean pocket? Great, right? But, what if you pulled out a huge bill instead, except this is the kind of bill you pay for.
Not the best feeling, but real estate site, Zillow, show homeowners are constantly finding hidden costs after purchasing a house. Zillow’s analysis revealed unexpected repairs and bills that on average, add up to $9,000 a year. On top of that, one in four new homeowners quickly exceed their annual budgets.
“Often times, when you buy a new home, you think, I want to buy all this furniture and all the things I want in the new house. But, you also have to take into consideration those things that aren’t fun to purchase,” said MVB Mortgage Senior Loan Officer, Daniel McCoy.
Someone who rented previously to owning a home, might simply forget to budget for costs like the sewer bill, lawn care, property tax hikes and repairs like an AC or large appliance breaking.
But, McCoy explained there are options to prepare for the unknown, like saving two to three months’ worth of rent. If that’s not possible, he said, consider a smaller down payment.
“If you can put down $20,000, maybe only put down $10,000 and keep the rest in a reserve.”
Another option, a home warranty, which is optional, renewed every year and can cost between $300 and $600 annually.
“If the refrigerator breaks or the air conditioners foes out, it would be covered by that home warranty.”
McCoy also recommended getting a list ready after purchasing a home; find a plumber or find an AC repair guy and research them before something breaks.
“Many times, when something breaks, we’re panicked, so we’re not doing the best research and we just settle on the first person we can get ahold of.”