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How Much Money Do I Need?

By
Real Estate Agent with RE/Max Associates DE#RA-0003085 PA#RS347136

I've been working with a Buyer for several months. We've actually written a few offers already but nothing has come together. As with all my Buyers, we've reviewed the process from A to Z but while out looking at a property the other day that he really likes, I realized that some of the things we've reviewed just haven't sunk in yet.

I like check lists and furnish them to my clients. Lists of things they need to do, lists of things they can expect. What I hadn't furnished yet though was a list of costs associated with being a home owner. Now I have one.

There are the obvious costs of the Mortgage Payment, Homeowner's Insurance, and Property Taxes. And there are what I thought were obvious costs but really might not be for the first-time buyer. Plus, if you're renting right now, a lot of things might be included in your rent.

 

budget

Therefore, here's the list!

 

o Mortgage payment (which may include your homeowner's insurance and property taxes)

o Electricity

o Fuel (gas, oil, propane or electric powered heat)

o Water (public, private, or well)

o Sewer

o Trash (if not covered by your property taxes)

o Telephone

o Television (cable, via your phone provider, satellite)

o Internet

o Homeowner's Association, Condo Fees, Neighborhood Association

o Security system

o Maintenance (interior and exterior)

o Tools (for interior and exterior... things like a lawnmower, clippers, and tools for minor jobs in the property, too)

o Appliances (if they're not included) and maintenance of them

o Window treatments (if they're not included)

 

And whenever you move, there are always incidental costs of the move itself plus furnishings. Make your own list and then move forward with confidence in your purchase. With rates as low as they are, if you keep yourself within your buying budget, all the rest will fall into place.

 

 

 

 

 

 

Joan Congilose
New Jersey Properties - Manalapan, NJ
Helping Sellers & Buyers

Hi Monica This is a good list for every first time buyer to have. It reminds me of my Mom's  advice way back when  I was  considering getting married and buying my 1st house.   

Feb 28, 2013 09:51 PM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

This subject needs to surface every once in a while so others can get on board...good post

Feb 28, 2013 09:59 PM
Monica Hill
RE/Max Associates - Wilmington, DE
the REALTOR to help you discover Delaware

Joan, I agree. And I took it for granted that everyone's parents had them prepared. 

Valerie, I'm seeing more and more of that, too. Some of the internet options pivot around having a land line so I at least bring it up for discussion. And... I've shown houses where there's no cell reception.

Richie, Thanks. And you're right!

Feb 28, 2013 10:08 PM