The thought of buying your very first home is exciting! Home ownership is in your future! Its hard to believe sometimes. You can’t wait to begin shopping every home improvement store looking for decor and furniture. And with good reason. Not only is it exciting to have your very own home, but your on your way to owning an investment that historically has shown to appreciate consistently and make you money – whether that is equity when you sell or one day as a rental property.
What else should you keep in mind? Here are the top 3 things to prepare for!
1. You are responsible for repairs. Unlike renting, where you perhaps called your landlord or the homeowner to report a repair, you are now responsible for all repairs and the costs that come with them, including all major components of a home. So, it is important to take a good look at a home you are considering purchasing and obtaining a detailed home inspection. And remember, home warranties don’t always cover everything 100%!
2. Utilities are now your responsibility. You may have been used to paying only power, gas and water. But don’t forget the sewer and trash! Flushing the toilet costs money. While that may seem obvious, if you never owned a home you may have never paid for the sewer and simply got used to paying only 2 or 3 utilities. The same is true with HOA dues. That is an additional expense each month / quarter or year, depending on the community.
3. Buying a home comes with additional costs. Beyond the price agreed to between you and the seller of a home, there are expenses related to your future mortgage and escrow that may be few thousand dollars! Many of those costs have to be covered before you close on your home. Additionally, the home inspection will require payment at the time of it being done. These and other expenses are part of the buying process. So, be sure to get with your Realtor for a breakdown of these so you are prepared!
While home buying is exciting, being prepared is key. Disappointment and frustration can overshadow the process if you don’t know what to expect. So, prepare and prosper!
Contributed by Nicklin Property Management.