The Most Overlooked Costs of Owning a Home

owning a home

Owning a home comes with a lot of costs. It’s important to know everything ahead of time.

When you are searching for the perfect home for your family, there are undoubtedly many different costs running through your mind. More than anything else, you are looking at the cost of the mortgage you will be taking on in order to live in your home. Unfortunately, many homeowners don’t look beyond the mortgage when assessing the true cost of home ownership. Here are some of the costs of home ownership that you will be glad you planned for beforehand.

Homeowners Insurance

Homeowners insurance is something that, well, homeowners need to have! The cost can vary, but on average, homeowners pay $35 every month per $100,000 of home value. This can add up if you are living in an expensive area, like the Washington, D.C. metropolitan area. A new home that is $350,000 on paper can cost you about $1,500 a year in insurance costs alone—and this isn’t taking into account the cost of actually fixing whatever item caused the initial damage to your home or belongings.

Insurance Deductible

Beyond the bill costs of homeowners insurance, if your home is damaged and you need to call on the benefits of the insurance, you will have to pay a deductible for damages before you get the insurance money in your pocket. Not sure what a deductible is? It is the amount, set on your insurance contract, that you must pay before the insurance company will contribute to cover the remaining expenses. Chances are, your deductible could mean you will have to pay $1,000 or more before your insurance kicks in.

Homeowners Association Fees and Property Taxes

You may have fallen in love with a home existing in a beautiful community with a great community center, picnic tables in the park, and a well-maintained gate at the entrance to your community. However, that community typically doesn’t come without a cost. Homeowner’s association fees can add up easily to over a hundred dollars a month. Before moving or closing on your home, ask about the dues over the past 10 years so that you can determine, on average, how much they fluctuate and what benefits you receive by paying them. Property taxes are also assessed based on your homes value and can easily total hundreds of dollars a month. The kitchen you are planning to renovate will do great things for your property value, but will also increase the taxes you are paying on your property.

A Title Company You Can Trust: Colony Title

At Colony Title, we will help you through the process of getting your property’s title and help you avoid the pitfalls of hidden costs while you buy your home. We specialize in real estate title insurance in both Maryland and Washington, D.C., and we will perform an expert title search, check through all past documentation, and examine records for any fraud or forgery. For more information on how we can get you into the home of your dreams, contact us online or give us a call at (410) 884-1160. To get more updates on housing markets and how to get into your home, follow us on Facebook, Twitter, LinkedIn, and Google+.

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