7 Expenses Of Being A Homeowner To Prepare For

Becoming a homeowner is the biggest moment of relief for many, as it comes with a sense of freedom and peace of mind. No more worries about getting permission before installing your favorite painting or having to pack and move once the lease expires. However, the path to owning a home can be stressful and requires impeccable planning to avoid getting into debt. 

While many first-time homeowners consider opting for Missouri down payment assistance to ease the financial burden, there are still other expenses that one should diligently budget and prepare for. These expenses can range from getting your home inspected for safety purposes to making modifications to suit your needs or even renovating parts of the home to your liking. Nevertheless, these expenses can become overwhelming for a first-time property owner, making planning, saving, and spending wisely pivotal. 

Here are the key expenses you must prepare for:

1. Home inspection

Getting your home inspected professionally is crucial to ensuring you’re investing in a home that’s in top-notch condition. These inspections also help you understand the real value of your home on the market. 

During the inspection process, the house will be inspected for structural defects like cracks, damages, and leakages, along with systems like HVAC systems, plumbing lines, electrical systems, and other appliances that are part of the home. 

These inspections ensure you're getting your money’s worth and won’t have to shell out extra money to get things repaired on your own. They usually cost up to $500. 

2. Homeowners’ insurance costs

For homes in Missouri, homeowners' insurance can protect against financial losses during events like storms, theft, and fire. The insurance offers repair or replacement of damaged belongings, ensuring peace of mind and assurance that you will not have to bear the burden of putting together your home. 

However, with average homeowners’ insurance costing as much as $3,420.00 per year, you must budget your expenses well to save up without compromising your quality of life. 

3. Miscellaneous expenses 

Surprise expenses can pop up every now and then for the first three to six months. Keeping a separate budget ensures that you won’t have to worry about exhausting your savings. Additionally, consider hiring professionals to avoid the hassle of endless breakdown cycles. 

4. Repairs, renovations, and upgrades

There’s always a chance that your dream home will need repairs and upgrades to suit your lifestyle. Common home repairs can range from roof insulation, fixing the floor, modifying the HVAC system, or getting the plumbing right. 

Meanwhile, upgrades can be as simple as getting the backyard ready for gardening and other activities, installing security systems, and even getting outdoor gates to prevent intruders from accessing your property. These changes can cost a lot, and it is always best to create a separate budget to cover them.

5. Property Taxes and HOA Fees

As a homeowner, you will have to pay property tax every year, depending on the market value of your property. On the other hand, the HOA, or “homeowners association fee,” refers to the amount that needs to be paid to the homeowners association. These fees are then directed toward maintaining and updating the properties. Not all properties must pay this fee; it is always best to check. 

6. Closing costs

These costs are associated with paying different stakeholders to finalize the real estate transaction and transfer ownership to your name. They are to be paid along with the net property amount. Aside from the taxes charged, the closing costs are usually negotiable. 

7. House move-in costs

Once all settlements are completed, you will finally be required to move into your new home. Consider hiring a professional moving company with comprehensive pricing that has insurance and is known for top-notch services. The moving charges can be anywhere between $400 and $5000. 

Bottomline

Owning a home is a bucket list wish that has come true for many. However, the associated costs can be daunting and frustrating sometimes. Preparing, saving in advance, and seeking financial assistance can help you claim your dream home without stressing your financial stability. 

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