REAL TipS: BUYING

Real costs of homeownership

Most consumers are overwhelmed when they write that big check for a downpayment on a home purchase. It's typically a lot of money, and one of the biggest barriers to homeownership for many people. But as intimidating as the downpayment might be, some homeowners are surprised by other costs associated with owning a home. There are many items that go beyond traditional expenses like mortgage payments, taxes, and insurance.

Many people overlook necessities such as general maintenance and repairs, home improvements, and decorating costs. Experts estimate that homeowners should set aside 1% of the cost of the home for general maintenance and repairs each year. For example, if you buy a $150,000 home, you should set aside at least $1,500 a year.

Buying a home often spurs homeowners to make improvements right off the bat. These costs can add up quickly. Painting a few rooms won't seriously dent your improvement budget, but  it's easy to go overboard. Talk to your Texas REALTOR® about home improvements that give you more bang for your buck in increasing or maintaining your home’s value.

Finally, there are decorating costs associated with buying a house. Don’t forget things like window treatments, lighting fixtures, carpet or area rugs, and appliances. Budgeting for these necessities will prepare you for what’s to come and help you feel more comfortable with the overall costs of homeownership.

Texas Association of Realtors®