So, you have been house hunting for a while and finally found one you fell in love with. The realtor might say that the house costs $200,000. Most prospective homeowners would think that they will need to have a conversation with a lender about getting a loan for that amount.
If you are a veteran homebuyer though, you will know that the cost will be much higher than what the realtor tells you.
Like nearly everything else we buy, there are costs that are hidden. Consider that you might buy a toothbrush for a couple of dollars. Then, you have to also buy toothpaste. This means that owning that toothbrush will ultimately cost you more than a couple of bucks, especially if you purchase a toothbrush holder to put it in when it is not in use. You can probably guess that the hidden costs of owning a home will be more complex than this, but you get the idea.
Mitigating a Bit of the Costs with Solar Energy
If you decide to install residential solar energy panels on your home, you will immediately be able to save on your energy bills because the energy will be provided by the sun. The more solar energy panels you install, the more energy they will produce. If you install enough of these panels, you will have excess energy. This can actually generate a bit of passive income because many states offer energy incentives. If you qualify, the local energy company will actually pay you for the energy produced by the solar panels you installed. Solar panels also serve to raise the value of your property while making your carbon footprint a bit smaller.
The true cost of owning a home cannot be calculated correctly if you don’t add taxes to the mix. While you might be aware that you will have to pay property taxes on the home, you might forget about having to pay taxes that might need to be prepaid at the time you close on the home. When you begin a mortgage, it might come as a bit of a shock that you will pay a couple of months of property taxes as well as a years worth of insurance for the property along with any dues for the homeowner’s association.
This is another one of the hidden costs of owning a home, but thankfully, it is one that you only need to pay for once… twice if you ever move again. This is a cost that can surprise you with the amount. That said, there are ways to cut down on this cost. You can get free boxes from your local grocery and liquor stores for example. You might have a few friends willing to lend their muscles and their trucks for the move or you might have to go out and rent a truck or hire professional movers. Consider all of the options and make an informed decision and you will be able to save a bit of money in the process.
Remodeling and Maintenance
These can be some of the major expenses that owning a home incurs. Some people make a living out of buying homes, remodeling or improving them and then selling them for a higher price. However, unless you have experience at this, it can really cost you. Just making sure that you maintain a home can cost you thousands of dollars every year. This can include having a contract with a pest control company to make sure that your home remains free from pests, and an HVAC company to ensure that your home is always able to maintain the ideal temperature.
There are many homeowners out there who either don’t relish working in their yards or don’t have the time and energy for it. The same holds true when it comes to cleaning the house. In cases like these, the common solution is to hire domestic labor individuals or companies. Hiring someone to come and clean your house once a week or to cut the grass once a week can add up throughout the year to an amount that might shock you.