Homeownership: Eyes Wide Open
Nations Lending’s Personal Mortgage Advisors pride themselves on offering concierge services. This often includes helping potential borrowers when they are beginning their house hunt all the way through home ownership into the future. We’re in it for the long haul, which is why we often discuss future costs with our clients – no one likes those kinds of surprises. Homeowners can expect to spend about $9,390 every year on costs associated with owning and caring for a home, according to a recent analysis by Zillow and Thumbtack. Almost $1k a month!
Zillow reported that one-third of buyers said that determining their home buying budget was a challenge during the home shopping process. With this in mind,additional common costs homeowners around the country can expect to pay annually were calculated. The analysis also includes utility cost estimates from UtilityScore.
The analysis found that on average property taxes, utilities and homeowners insurance costs add up to $6,327 per year, but can be much higher in more expensive markets. In San Jose, for example, where the typical home is worth $1,287,600these costs add up to $17,255 per year, the highest of any market analyzed. By contrast, these costs add up to $5,540 annually in Indianapolis, less than one-third of the San Jose total.
Many of NLC’s clients also opt to hire professionals for a variety of common home-maintenance projects including house cleaning, lawn care, carpet cleaning, central air and heating system repairs, gutter cleaning and pressure washing. The nationwide average cost of these tasks is $3,067 per year. Labor costs vary, however, in different parts of the country. In Portland Oregon homeowners can expect to pay $3,810 per year for these projects, compared with the $2,570 owners in Miami can expect to spend. Ongoing maintenance costs and annual fees are some of the most common surprises for first-time home buyers after they finally become homeowners. NLC’s Personal Mortgage Advisors know that while clients are home shopping, buyers tend to focus on their monthly mortgage payments, but other needs quickly add up after move-in.