Buying a house comes with a sense of pride and accomplishment, and it can also bring a few surprises. One of the most common mistakes of first-time home buyers is forgetting to factor in the cost of utilities when searching for and purchasing their new house. The cost of homeownership involves much more than making a monthly mortgage payment, and planning for utility costs as a part of your overall budget makes finding the right home a lot less frustrating.
Hidden Costs Can Sack Your Budget
It’s important to look at the big picture once you decide you are ready to become a homeowner. You’ve likely already thought about how much you can afford to spend on a mortgage payment, and you may have even obtained a pre-approval from your bank. However, there are additional factors that will affect what you have to spend each month once you close on your new home. Some home buyers take utility costs for granted assuming that the costs will be similar to what they currently pay.
If the home you are considering is larger than your current home or apartment, keep in mind that more square footage will likely mean higher bills for heating and cooling. Buying a house in a city or town could come with a water bill if the property accesses the local water system instead of a private well and sewer system. Natural gas or propane availability for heating and cooking should be considered when figuring a budget to purchase a home. The last thing you want as a homeowner is the surprise of utility bills you cannot afford after you’ve settled into your new house.
Be a Smart Shopper
Your real estate agent is your biggest ally while searching for your perfect home. Be open and honest about your budget, and ask plenty of questions regarding utility costs for any home that catches your attention. Your agent can help you obtain utility costs from the seller for the past year to give you an idea of what you can expect regarding monthly expenses. You may need to adjust the figure according to personal factors such as the size of your family and the way you will use your home, but a the very least, you have a starting point to help you plan your budget.
Once you find a home that you are seriously considering, you might find ways to make the home more energy efficient to save you money on utilities for years to come. A home inspection is one of the best ways to pinpoint its areas that could be improved to make it more comfortable for your family and your budget. Windows, doors, and insulation are all areas that can make a huge difference in energy costs. Major systems in the home such as the heating and cooling system and water heater should be considered for efficiency and a possible upgrade if necessary. If your budget will allow it, addressing these repairs early on makes way for ongoing savings.
Be a good neighbor and share this:
CBR, SRES - Licensed Real Estate Salesperson
Phone: 516.849.5895 | [email protected]
As an experienced professional Neil will do the leg work, keeping you up-to-date with new listings and the various market conditions that may impact the home purchase process. Sellers can also benefit from his skills in finance, negotiation, contractual agreements, and RE marketing. Call today and allow Neil to guide you through the complexities of buying or selling your home, eliminating hassles, and stress.
Member of:
National Association of Realtors
Long Island Board of Realtors
Multiple listing service of long Island
New York State Association of Realtors