The real cost of Buying a House.....
We all know the easy components of what makes up the cost of a house, principle and interest. These can be found easily and are one of the first things that a house buyer figures out when looking for a house. The other items are not that hard to find and should be in the equation when buying a house.
1.) Taxes. On many homes or properties just a few hundred yards can mean the difference in just county taxes and having to pay both county and city taxes. Now you sometimes do get some benefit from the additional taxes, fire protection, trash pickup, additional police etc, but the additional cost can sometimes make a big difference in what you will pay every month.
2.) Insurance. Get a quote on what insurance will cost you. Many times things like what county and how close you are to a fire hydrant can make a difference in the cost of Insurance. Also if you are looking at a condo or PUD see what insurance the association has and what it covers, sometimes it can make a difference.
3.) Association Dues. These can add hundreds of dollars a month to your cost of living. See what you are getting and the cost before signing on the line.
4.) Energy costs. Now we are hitting the costs that are a little harder to get and quantify. You usually can get a maximum and minimum monthly utility bill for the last year from the Utility provider. Ask for a copy of last years utility bills so you can budget how much it will cost. Adding these costs in can level the field of an older, but less energy efficient, home and a more costly but much more energy friendly home.
5.) Daily commute. Factor in how much living here will affect the cost of driving to the places you go. Work, daycare, entertainment, and shopping are just some of the drives that you need to take into consideration.
Now many of these costs the mortgage underwriters will not take into account but you as a home buyer need to include them in your own budget to make sure the house you are buying is the right one for you.
If you are in the Knoxville area and are looking for a home, and are not presently working with a Real Estate Professional, please contact me and let me show you how I can help you in your home search. If you are looking now please go to my Home Search Engine and search for homes in Knoxville. When you contact me please request your free "8 Things to do to Prepare your House for Sale" as my gift to you.
To view my other blog posts please follow the link "Living in the Tennessee Valley".