Home Operating & Other Costs
And here are those pesky property taxes. Taxes might be unavoidable, but you often have some options around payment plans. Property owners can pay their property taxes in twelve installments over the course of the calendar year.
With that, mortgage companies may request to pay the property tax themselves and collect it with your monthly mortgage payment. However they’re paid, taxes can range from $2,500 to $6,500 a year. The price can also fluctuate year-to-year as the city reassesses. Likewise, taxes may be affected by the size and location of your home
Insurance: an essential product for all homeowners. Required by mortgage companies before they’ll release the funds and close the deal, insurance is just another financial commitment you need to prepare for. With that, insurance companies base premiums on the replacement cost of the building. Often, premiums start around $350 to $700 per year.
You don’t want to move into a home that hasn’t been inspected. In fact, professionals will strongly recommend against that. As such, home inspections are considered a must. This is often one of the conditions placed on a home offer. The cost of this service ranges from $250 – $500, depending on the size and value of the property.
When you apply for a mortgage, the lender will want to see an appraisal on the property. This appraisal ensures you’re paying a fair price: one that falls in the accepted range of value. Often, this accepted range depends on the property type and location. Another necessary step, appraisal fees start at $275 for residential properties and $400 for rural.
Making an offer on a freehold property usually requires the Seller to provide a copy of the property’s survey. This survey shows a number of details regarding the property. For example, it should outline the boundaries, as well as the footprint, of the building on the site. If there is no survey available, you may wish to hire a surveyor to prepare one. For this service, the cost generally falls between $1,000 to $1,500.
Your home needs heat. Unfortunately, that costs more money. Natural gas and electricity tend to be two common choices. Depending on the type of fuel, size of the home, amount of insulation, exposure and usage, the cost for this can vary greatly. It’s definitely something to keep in mind when looking at larger homes.
Let there be light! Electricity is never an easy cost to estimate. In fact, it can vary depending on a number of factors. For example, you need to consider the number of people living in the house. You’ll also want to look at the building size and the amount of energy-efficient devices you use.
When paying for electricity, most companies will allow you to choose between different payment options. This usually means either monthly or bi-monthly bills.
Water & Solid Waste Management
Most properties are now on water meters. Because of this, companies tend to charge you per usage. Usually, your water bill also includes a fee for Solid Waste Management. For example, this fee would likely cover garbage service and bins, recycling service and bins, your green bin, litter prevention, landfill management and other diversion programs. Generally speaking, your waste and solid management company will bill you monthly.
Title insurance is a somewhat complex product. It provides insurance against the future costs of remedying most problems with the title on your property.
Title insurance is hard to recommend without knowing more details about the property. Sometimes it’s necessary. Othertimes, it’s not. The best course of action is discussing it with your estate agent. By asking them, you’ll receive recommendations tailored to your specific property. In saying that, costs do generally run around $275.
Understand the Costs?
Understand the costs of becoming a homeowner? Well, then let’s discuss the ins-and-outs of making an offer on a home.
Want more information on hidden housing costs? Check out this blog article!
Have an unusual question? Contact Sherri and ask away!