It is no secret that the current market is a Seller’s Market. Bidding wars have become the norm, and homebuyers have stretched their budgets to the limit. In a recent survey conducted by Consumer Affairs, homebuyers reported spending an average of $10,334 over what they initially budgeted. Going over budget has left new homeowners unprepared for the most unexpected housing costs.  

Property Taxes

This year, property taxes were the most unexpected housing costs for new home buyers. The spike in housing prices has increased property value, which has caused an increase in property taxes. 

Utilities

With 26% of those surveyed saying they hadn’t budgeted enough for their utilities, this bill came second as the most unexpected housing cost for new homeowners.

Maintenance & Repairs

The recent market has not been favorable of contingencies in offers to purchase, allowing sellers to decline repair requests.  New buyers have been left to fend for themselves to repair items that due diligence would have handled in a less competitive market. 

HOA Fees

While HOA fees were an expense on the survey, they weren’t necessarily unexpected.  Still, 7% of homeowners surveyed said they are among the most expensive costs of owning a home.

Landscaping

First-time home-buyers who have rented since leaving their childhood homes were reported to be caught off guard by the expense of landscaping and yard maintenance.

While costs are rising for homeownership, Americans still want to buy.  Those surveyed said that owning a home made them feel proud, independent, and satisfied despite the financial strain.

If you need help creating a financial plan to buy a home this year, we are happy to help!  Contact the David Morris Group.  Or give us a call at (775) 828-3292.