Hidden Costs - Oro Valley Homes for Sale
Oro Valley Homes for Sale, Oro Valley Real Estate in Oro Valley Arizona AZ. Search Oro Valley Homes and Real Estate, Oro Valley Realtor Ian Taylor
While most prospective buyers are familiar with big ticket items such as mortgage payments and property taxes, smaller costs such as homeowner’s insurance, utility bills and repairs also add to the cost of owning a home. Taking them into account before you begin shopping can help prevent unpleasant surprises that drain your finances.
Here are some common “hidden costs” you might run into, and some ways you could prepare for them.
Home repairs and cosmetic updates:
Depending on the age and condition of the home, you’re likely to run into things you want to update or have to fix. Research and survey data shows that 65% of active shoppers are not looking for a fixer-upper. Yet the research found that the typical for-sale home could need nearly $30,000 worth of work, and that new homeowners should expect to spend $26,900 to make their new home move-in ready. That’s substantially more than the $10,000 to $15,000 the average millennial expects to pay for repairs and updates. The most expensive project — evaluating, repairing or replacing heating and air conditioning systems — clocked in at a national average of $3,615.
Everything in a home has a lifespan, and appliances are no exception. If you’re buying a newly built home, the appliances should be new and under warranty. If you’re buying a resale home, the need to replace or repair an appliance can vary widely depending on the age and condition of the appliances. At a minimum, most appliances will run you several hundreds of dollars for the most basic models. Add bells and whistles, and you could be looking at thousands of dollars to replace a refrigerator. You also could have to pay for installation, a pricey proposition if it involves changes to electrical wiring or plumbing.
If you’re a first-time buyer, the cost of utilities could surprise you, especially if your previous rental home included utilities.
For people in urban areas, utilities could include Water and sewer, Garbage pickup, Electric, Natural gas, Cable, Internet and maybe Septic and Propane.
Larger homes are likely to cost more to heat and cool, and older homes may be less energy efficient unless they’ve had new windows installed and/or the insulation upgraded.
The cost of homeowners’ insurance will vary depending on your location, the type of coverage you’re buying and any discounts you might qualify for, and your insurer. Broadly speaking, you can expect to pay about $35 a month for every $100,000 in home value. For instance, if your home is valued at $300,000, you’ll be paying about $105 a month for basic coverage. The cost is likely to be higher in areas prone to hazards. Coverage for rebuilding or repairs after an earthquake or flood is usually not included in standard homeowners’ policies, so you may want to — or in the case of flood insurance, have to — buy a separate policy. If you’re buying with a mortgage, the lender will typically roll the cost of insurance into the monthly mortgage payment and pay the premiums on your behalf.
Homeowner association fees:
Homeowner associations or HOAs are non-profit entities that can establish and enforce rules, provide basic services such as water and tend to the maintenance and repair of community amenities such as pools, roads and landscaping. Commonly found in condominium, townhome and planned single-family home communities, HOAs are run by a board of homeowners and typically charge dues that you will be required to pay monthly or annually. Dues vary widely, and can change depending on the community needs. For instance, an association that has neglected maintenance or wants to undertake development of something such as a new park can raise dues or levy special assessments.