7 Hidden Costs of Homeownership

Buying a home is exciting, whether you’re a first-time homebuyer or you’ve been through the process before. But it can also be overwhelming, because owning a home comes with a lot of expenses: home repairs, property taxes, HOA fees, home maintenance and more. Some home buyers are caught off guard by just how quickly it can all add up.

So before you start the home buying process, it’s important to sit down and clearly map out the costs of owning a home. All of the added responsibilities and expenses will stick around long past the time your offer is accepted, and you’ll want to have your budget in place. 

Before you pack up your belongings and get the keys to your new home, be sure you’ve considered — and prepared for — these seven hidden costs of homeownership. And to make sure what’s going in your new home is protected, speak to a Farm Bureau agent.

Hidden Cost #1: Property Taxes

When deciding how much house you can afford, don’t forget to factor in your home’s property taxes. Your property tax will depend on how much your home is assessed at and your property tax rate — and you could find yourself paying $500–$1,000 a month in property taxes.

Property tax rates vary from place to place, so the best way to figure out your tax rates is to search your local government’s website. Be sure you know what you’re likely to be paying, and whether you can afford that cost every month.

Hidden Cost #2: Homeowners Association (HOA) or Condo Fees

Are you moving into a planned neighborhood? Or is your new home a condo? Be sure to ask your real estate agent if there is a homeowners association (HOA). If there is, you’ll want to know how much your HOA dues will be and what they cover. Depending on your specific HOA, your dues may cover landscaping for communal areas, snow removal or maintenance to shared spaces like a pool or park.

If you’re buying a condo, ask how much the condo fees are and what the fees cover. It’s also important to understand what expenses, services and repairs the condo association covers and which you’ll be responsible for. 

Hidden Cost #3: Home Repairs

Home repairs can rack up quickly. Before you sign on the dotted line, be sure to have a home inspection completed on your new home. A home inspection can help you identify any expensive repairs or replacements — roof, HVAC and so on — that might need to be completed prior to your purchase. Without an inspection, you may not know your home could need an expensive repair or replacement, and you don’t want to get caught with a big bill on your hands right after you bought a house.

Hidden Cost #4: Landscaping and Lawn Maintenance

If you’ll be responsible for caring for a yard, you’ll need to budget for expenses like mowing, fertilizing, watering, aerating and landscaping.  These costs can quickly add up, especially if you choose to hire a lawn service to perform these routine tasks. You could be paying $50–$100 or more a month to keep your yard in tip-top condition. Research rates in your area and think about what you’re willing to pay for and what you can afford. 

If you choose to do the lawncare yourself, think about the cost of equipment (such as a lawnmower and weed eater), inputs (such as fertilizer) and plants/decor as you build your budget.

Hidden Cost #5: DIY Projects

Making your new house a home could mean taking on some renovations or new additions, like a pool, a patio or a garden. But while you’re dreaming, be realistic. DIY projects can sometimes become bigger than you planned. Each project you take on comes with a time commitment and extra expenses. Be prepared to raise your DIY budget or call in a professional if your project doesn’t go smoothly.

Hidden Cost #6: Security Systems

Installing a security system yourself or signing up for a security service can provide you with peace of mind, ensuring that your home and those in it have an extra layer of security. But these home systems and devices vary in cost, and some can be expensive. If you choose to go with a security service, you could be paying $50–$100 a month, so research security systems before you choose the best option for your needs.

Hidden Cost #7: Basic Home Needs

When you move to a new house, you may need new furnishings, and those can be expensive. From buying furniture and decorations to getting new appliances, you could easily spend $10,000 or more once you move into your new home. Be sure to review what the seller will be leaving behind (refrigerator, washer and dryer, etc.).

If you’re building a new house or buying an already built builder model, ask what the new home will come with. Consider whether you plan to furnish all at once or can move more slowly, whether you’ll be hunting for deals or buying new and other factors that might affect the cost.

If this is your first home, you may also need to buy basic necessities that add up: think kitchen tools like a can opener, toaster and baking sheets or bathroom basics like a shower curtain, trash can and rugs.

Make Your House a Forever Home

Your new house will be a place you make memories you’ll cherish for years to come. Protect the things that matter most in your world: connect with Farm Bureau to see how we can help.