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What is the True Cost of Home Ownership in Massachusetts?

By
Real Estate Agent with The Buyers' Counsel

Cost of Home Ownership in MAWhat is the True Cost of Home Ownership in Massachusetts? 

 

As a home buyer in Massachusetts you will need to know the total upfront costs of maintaining a home.  After all, this will be part of your total monthly budget as an owner.  In order to effectively determine a home's affordability you will need to determine the following information: 

 

 

 

  • Monthly mortgage payment
  • Taxes
  • Insurance
  • Landscaping
  • Maintenance
  • Electric Bill
  • Gas or oil expense
  • Trash removal expense
  • Water & sewer bill
  • Snow plowing costs
  • Miscellaneous expenses

There is no obligation in Massachusetts for the seller to provide the costs of utilities to a potential home buyer (althought the State of Hawaii has now made this mandatory in real estate transactions.)  The responsibility falls to you or your buyer agent to request the utility costs and copies of the electric bills from the owner.

Depending on the rules of the energy providing company, you can sometimes call them with the address of the property and ask them for the seasonal costs.  However, some energy companies will not release the actual costs of their customers to an outside inquiry; they will only give you an estimate.  The best way to discover the true  expense of the utilities for a home is the have the seller provide you with copies of their monthly bills. 

Heating and utility costs are also contingent on how well a property is insulated or whether it has energy efficient windows, new Energy Star-compliant appliances or a newer heating system.  Having this information ahead of time will help you to better plan your overall budget.  It can also be a make-or-break item if you are choosing between two similar properties.  

By this same reasoning, if you are getting ready to put your home on the market any time soon, be sure to keep all the records of your utility costs.  

A smart buyer will surely ask for them.

 

Copyright 2010 "What is the True Cost of Home Ownership in Massachusetts?"

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Claudette Millette, Broker, Owner, The Buyers' Counsel - a Buyer Broker Since 1992

If you have questions about buying a home in Massachusetts please give me a call at  508-881-6230        or Email Me. It will be my pleasure to talk with you.

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Posted by

 

Steve Shatsky
Dallas, TX

Hi Claudette... Utility costs can be a huge component of home ownership.  Here in Dallas, it's less about heat than air conditioning, but the result is still the same! 

Feb 27, 2010 10:59 AM
Claudette Millette
The Buyers' Counsel - Ashland, MA
Buyer, Broker - Metrowest Mass

Hi, Steve:

The cost of air conditioning in a hot state like Texas must be exhorbitant. But, right now, that sounds pretty good since we have been hit with yet more snow this weekend.

Feb 27, 2010 11:07 AM
Toula Rosebrock
Diane Turton, Realtors, Forked River, NJ - Lacey Township, NJ
Broker/Sales Associate, Realtor, Lacey Township,

Hi Claudette:

Great list...

So often homeowners forget to budget in maintenance!

Feb 27, 2010 12:42 PM
Claudette Millette
The Buyers' Counsel - Ashland, MA
Buyer, Broker - Metrowest Mass

Hi, Toula:

All of the unexpected costs can come as a surprise to someone who has previously lived in an apartment and has not planned for them.

Thanks, as always.

 

 

 

Feb 27, 2010 01:55 PM
Dale Terry
Yadkinville, NC

Part of the problem of our rea estate collapse was loans being made that did not take into account those expenses.  Not one of the ideas that has been floated by experts in Washington to make sure we don't get into this mess again includes a full budget of expenses for home ownership.  Might have stopped a number of foreclosures.

Feb 28, 2010 01:12 AM