![]() ![]() “Then, there are ongoing costs that buyers need to prepare for.” Among these are the down payment, closing costs, inspection fees and appraisal,” he says. “The first is one-time costs you’ll face the first year. “You would possibly also miss out on building equity and long-term profits from the home.” Expenses to expectĭiBugnara notes that there are two different types of costs owners face. “Then you may find yourself in a situation where you are forced to sell,” says Ralph DiBugnara with Residential Home Funding. Worst-case scenario? You learn too late that you lack the funds to handle these bills. But a first-time buyer may not fully understand the cost of these items.” ![]() “Those used to renting take for granted that maintenance, repairs and upgrades are covered by the landlord. “A buyer should never get in over his or her head,” says Ailion. This is because they actually could not afford the total cost of ownership.”īruce Ailion, real estate attorney and Realtor with RE/MAX Town and Country in Atlanta, agrees. “The result is that some first-time buyers overbuy. This is due to lack of ownership experience,” he says. “True long-term costs often exceed expectations. Joshua Harris, clinical assistant professor of real estate at NYU’s Schack Institute of Real Estate, says learning the often overlooked costs of ownership is crucial. You want to ensure that your future earnings and savings will cover these outlays. Crunch the numbers and forecast the costs. Know what you’re getting into before committing to a purchase. And their costs can vary widely, depending on your home and location. These include property taxes, insurance, repairs and upkeep. This starts the very first year of ownership. Owners need to cover an array of continuing expenses. That’s why it’s important to understand the true costs of owning a home before buying. But your financial duties won’t stop there. The first goal is to afford the upfront charges, like the closing costs. Still, coming up with the initial money needed isn’t easy. The true costs of owning a homeīuying a home can be exciting. The first year of homeownership can get costly, so make a budget and stick to it. In addition, there may be HOA dues, and many buyers find they need more furniture or other upgrades.
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