When most buyers sit down to plan their home purchase, they focus on the big-ticket numbers — the price of the house, the down payment, and the monthly mortgage. But here’s the truth: those are only part of the story. Owning a home is a bit like owning a car — the purchase price gets you in the door, but the ongoing costs are what keep it running smoothly.
If you don’t plan for these recurring expenses, you may find yourself stretched thin down the road. Let’s talk about the big three (and a few extras) that should be in every homeowner’s budget.
1. Property Taxes
Your property taxes are not a one-and-done expense. They’re due every year, and they can change over time. A newly purchased home might have lower taxes based on the seller’s assessment, but after the county reassesses the property (often after a sale), your tax bill could go up.
Pro Tip: Ask your agent or lender for the current tax rate and check recent reassessments in the neighborhood so you can budget more accurately.
2. Homeowners Insurance
This is your safety net. It protects you against losses from fire, theft, certain natural disasters, and liability issues. Premiums vary based on the home’s value, location, age, and even your credit score.
Pro Tip: Get a quote early in your home search and factor it into your monthly costs. Also, shop around — not all policies are created equal.
3. Maintenance & Repairs
Even brand-new homes need maintenance — think HVAC servicing, gutter cleaning, landscaping, and pest control. And let’s be honest, older homes will have more wear-and-tear surprises. A good rule of thumb is to set aside 1–3% of your home’s purchase price each year for maintenance.
Pro Tip: Start a dedicated home maintenance fund so you’re ready for the day your water heater decides to quit mid-shower.
Don’t Forget the Extras
- HOA fees (if applicable)
- Utility bills (which might be higher than you expect if moving from an apartment)
- Upgrades and improvements (because no one buys a home and never changes a thing)
A smart homebuyer isn’t just thinking about the mortgage — they’re looking at the total cost of ownership. By factoring in property taxes, insurance, and maintenance from the start, you’ll protect your budget, avoid nasty surprises, and truly enjoy the home you worked so hard to buy.
If you’re considering a move or investment and require a trusted Real Estate Broker, we’re here to assist you. Contact us via email at TEAM@McDanielCallahan.com, complete the form below, or give us a call at 925-838-4300. We are ready to provide expert guidance and support for all your real estate needs. Terry McDaniel DRE License #00941526
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