12 Hidden Costs of Homeownership in Houston

There is more to homeownership than meets the eye! The costs of homeownership go beyond a home’s selling price. There are closing costs, home inspection costs, the costs of repairs, improvements or painting, to name a few. Take a look at this list of 12 hidden costs of homeownership in Houston. Can you afford to move from renting a home to owning in Houston?

1. Appraisal. Lenders require buyers to have a professional real estate appraisal done on a home before the buyers can purchase the home. Home appraisals can cost between $350 and $400.

2. Home inspection. The responsibility of the cost of a home inspection usually falls to the buyers before closing on the home. It can cost hundreds of dollars.

3. Pest Inspection. If a pest inspection is obtained before closing on a home, buyers can negotiate to have an infestation taken care of by the seller. Termite inspections can cost anywhere from $50 to $200 and should be considered in addition to obtaining a home inspection.

4. Closing. Closing costs include processing fees, underwriting fees, recording fees, survey fees and title insurance fees. All these fees add up to about 2 to 3 percent of the amount of the home loan and land closing costs on the list of hidden costs of homeownership.

5. Property taxes and homeowners insurance. A monthly house payment doesn’t reflect the home loan and interest only. Property taxes and homeowner insurance premiums will be added to the monthly mortgage payment as well.

6. Supplemental insurance. Umbrella insurance and flood insurance are types of supplemental insurance. There are also home related insurance add-ons for things like valuable jewelry. Read the fine print of each policy for supplemental insurance and find out what is included with each policy. (Click this link for information on different types of insurance related to homeownership.)

7. Professional movers or moving truck rentals. If a move requires more than the help of friends and family and their trucks, the costs of hiring a professional mover or rental moving truck can be significant. Renting a moving truck will cost hundreds of dollars compared to hiring professional movers. Professional movers can add up to several thousands of dollars. The cost of either option will vary depending on the miles travelled to move household belongings.

8. New furniture. Unless buyers are downsizing, the move into a new home may reveal lots of empty space. The furniture that filled up an 1800-sq ft home just doesn’t seem to cut it in a 2500-sq ft home. The cost of adding new furniture could add up to a hefty sum and should certainly be considered as one of the hidden costs of homeownership.

9. Monthly utilities. Utility costs vary depending on where the buyer lives and how much the buyer uses. How warm the house is in the winter or how cool the house is in the summer affects the monthly cost of utilities. Buyers should ask the sellers for monthly utilities estimates before closing on the house. This will give buyers an idea about how much to budget for utilities and keep this monthly bill from being yet another one of the hidden costs of homeownership.

10. Homeowners association (HOA)/condo fees. Some housing developments require an additional monthly fee on top of the buyers’ payments for principal, interest, taxes and insurance making these fees one of the hidden costs of homeownership. Monthly HOA fees can be a significant monthly expense.

11. Repairs. Homeownership means the buyer is the landlord. Calling a landlord to come fix a leaky toilet or drippy faucet is now a thing of the past. As the homeowner, the buyer will fix things around the house or pay someone to come fix the problem. Home repairs are hidden costs of homeownership.

12. Yard maintenance. A properly maintained yard is one of the costs of homeownership. Raking leaves, mowing the lawn, trimming bushes, cleaning gutters and watering means buyers must purchase rakes, lawnmowers, hoses and the like.

The Pikoff Team knows real estate and the costs of homeownership in Houston. Our knowledge and expertise make us the buyers’ best choice for a REALTOR in your corner. Contact The Pikoff Team at (281) 670-1910 today. We’ll help you find the home of your dreams and reveal the costs of homeownership. No hidden surprises thanks to The Pikoff Team!