What to Expect After Buying a House: Costs New Homeowners Often Overlook

Maybe you’re shopping for your first home. Maybe you just bought one and are wondering, “What expenses didn’t I think about?”

Your mortgage is usually your biggest monthly payment, but it isn’t the only cost of homeownership. Utilities, maintenance, seasonal upkeep and unexpected repairs all need a place in your budget.

Knowing what to expect before these expenses pop up can help you plan ahead, and avoid unpleasant surprises and unnecessary stress.

Still in the preparing-to-buy stages? I also broke down the expenses you may need to pay before you ever reach the closing table in What You’ll Pay Before Closing Day.

1. Property Taxes & Homeowners Insurance

Depending on your mortgage, your property taxes and homeowners insurance may be included in your monthly payment through an escrow account, which is included in their monthly mortgage payment.

While that makes budgeting easier, but it’s important to remember that these expenses can change.

Property taxes will most likely increase, as will insurance costs. Your lender will typically review it each year and adjust your monthly payment based on the amount needed for upcoming taxes and insurance.

This means that even with a fixed-rate mortgage, your total monthly payment isn’t necessarily fixed forever.

2. Recurring Household Bills

I could say “utilities”, but there are more recurring expenses that come with owning a home.

First, you have the essentials. The house-won’t-function-without-them expenses:

• Electricity
• Natural gas
• Water
• Sewer
• Trash service

Then there are the bills that are easy to overlook when you’re creating a budget. Depending on your lifestyle and the property, you may also have recurring expenses for:

• Internet
• Cable or streaming services
• Home Cleaners
• Trash Can Cleaning
• Lawn care or mowing
• Snow removal
• Pest control
• Pet Sitting

Before buying a home, you can ask about average utility costs and services the current owner uses. Just remember that their bills won’t necessarily look like yours.

A family of six is going to use a home very differently than one person who travels half the month. Use the information as a rough estimate, not a guarantee of what your bills will be.

3. Routine Home Maintenance

Owning a home means caring for the property year-round. If you are coming from a great rental, think about the times that maintenance came to your home.

Likely, Changing filters. Checking the HVAC system. Testing alarms. Cleaning gutters. Fixing small leaks before they became big ones.

Once you own the home, those things become your responsibility. Some common home maintenance tasks include:

• Furnace/HVAC filters: Check them regularly and replace according to the filter and system manufacturer’s recommendations. Many common filters need replacement every 1 to 3 months, although homes with pets, allergies or heavy system use may need more frequent changes.
• HVAC maintenance: Consider having the air conditioner checked before cooling season and the furnace before heating season.
• Clean gutters and downspouts: Clean them as needed, particularly after leaves fall and before periods of heavy rain. Clogged gutters are at the top of the list when people have water in the basement, and clogged gutters can sometimes cause roof leaks.
• Drainage around the foundation: Make sure downspouts discharge water well away from the foundation, at least 6 feet, and that the ground doesn’t slope back toward the house.
• Check the sump pump: Test it before spring rains and periodically during wet seasons. If you have a battery backup, test that too.
• Smoke and carbon monoxide detectors: Test regularly and replace batteries as needed. Modern alarms have a fixed battery life (either 7 or 10 years). When they start chirping, it’s time to replace them.
• Water heater: Check periodically for leaks, rust or corrosion around the tank and connections. Pay attention to changes in performance, such as running out of hot water faster than usual, water not getting as hot as it once did, or unusual noises. These may be signs that the water heater needs maintenance or repair—not necessarily replacement. Depending on the type of water heater and the manufacturer’s recommendations, periodic flushing may also help reduce sediment buildup and extend its life.
• Trees: This one is often overlooked, and we saw firsthand how much damage falling trees and limbs can cause during the downburst that hit our area a few months ago. Periodically look for dead or damaged limbs, especially anything hanging over your house, garage, driveway or utility lines. If you’re not sure who to call, I’m happy to share a few local tree companies I’ve worked with, email me for suggestions.

Think of maintenance as protecting your investment, and preventing a small, inexpensive problem from becoming a much bigger one.

4. Seasonal Upkeep

Then there are the things your house and yard need throughout the year. While these aren’t necessarily bills you’ll incur, they’re still worth considering when you create your homeownership budget.

• Lawn mowing
• Spring cleanup and mulching
• Landscaping or garden maintenance
• Fall leaf removal
• Snow shoveling or plowing
• De-icing sidewalks and driveways
• Cleaning gutters
• Recaulking around windows and doors
• Minor handyman work
• Exterior cleaning and maintenance

You may be able to do many of these things yourself, which can save quite a bit of money.

But even DIY isn’t always free. Suddenly you’re the proud owner of a lawn mower, snow shovel, ladder, rake, garden hose and approximately 47 other things you never thought about while renting.

Whether you’re paying someone else or buying the equipment to do it yourself, leave some room in your budget for seasonal upkeep.

5. Plan for Home Repairs

Nothing in a house lasts forever.

Eventually, the water heater will quit. The refrigerator will stop cooling. The sump pump will fail. The furnace will need a repair. Something will leak.

Hopefully, these things don’t all happen on the same Tuesday.

Setting aside money regularly for home maintenance and repairs can make those surprises much easier to handle. Even if you start small, having a dedicated home repair fund gives you somewhere to turn when something inevitably needs attention.

The age and condition of your home should also influence how much you prepare. A home with an older roof, HVAC system, water heater or appliances may need more repairs or replacements in the coming years than a home where those major components have recently been updated.

A home warranty may also provide some coverage for certain systems and appliances. However, plans, exclusions, deductibles and coverage limits vary considerably, so it’s important to understand exactly what a particular warranty does, and doesn’t, cover.

If you’re considering a home warranty and aren’t sure what to look for, I’m happy to help you understand the questions you should ask before choosing one.

6. Don’t Forget the Little Stuff

This category doesn’t get talked about nearly enough.

When you move into a home, there is often an entire parade of smaller purchases:

Curtains. Blinds. Rugs. Shelving. A lawn mower. A ladder. Tools. Hoses. Filters. Trash cans. Storage. Furniture for that room you didn’t have before.

Individually, they may not seem like major expenses. Together, they can put a surprisingly large dent in your bank account right after closing.

You do not have to finish your entire house immediately.

Give yourself permission to live in it for a while. Figure out how you actually use the space before buying everything you think you need.

Homeownership Is Still Worth It

We often hear these called the hidden costs of homeownership, but I don’t think they’re really hidden. They’re overlooked costs.

When you’re excited about buying your first home, it’s easy to focus on the big things like the down payment, mortgage payment and closing costs, and forget about all the smaller expenses that come with actually owning and maintaining a home.

The good news is that most of these expenses are predictable and manageable when you plan for them. Knowing what to expect and setting aside a little money along the way can help you enjoy your home without every unexpected expense feeling like an emergency.

As your Realtor, one of my jobs isn’t just helping you buy a house. It’s helping you understand the whole process, before, during and after, so you can feel confident long after closing day.

Thinking about buying a home? Let’s make sure you’re financially prepared for more than just closing day.