Video: Biggest Buyer Blunder | Overlooking Total Costs Of Homeownership

Nice sprinkler system...I wonder what the water bill is during the spring and summer.

The master bedroom has a sitting room...I wonder what the average electric bill is for this home.Oh, the basement is fully finished...Can the heating/AC system support all of this square footage efficiently?We're looking for a fixer-upper...Can we really afford to do more than carpet and paint?These appliances are nearing the end of their expected usefulness...How much will it cost to replace all of the appliances?Whether is a foreclosure, short sale, or traditional home,buyers should factor in the total cost of homeownership.  The lender will give you a pre-approval amount, but there are other fees that will never appear on your Good Faith Estimate of Closing Costs, that you will have to factor into your monthly and yearly costs of homeownership such as:

  • Utilities:Does the home require gas and electric?  Is the water included or is it separately metered?
  • Maintenance:Your home inspection should provide you with an opportunity to gauge maintenance costs.  The home inspector should be able to identify what appliances are running properly, and provide estimates on replacement costs.
  • Association fees:What are the condo or association fees and how often are they paid?  Is the home located within a community that requires two fees?  Do the fees include any utilities or yard maintenance?
  • Yard upkeep and maintenance:How much does it cost to maintain the pool? If you're too busy to mow the lawn, how much does it cost to keep up the curb appeal?
And most importantly,can I maintain my current lifestyle if I buy this home?                            Free Worksheet   Free Loan Analysis                                            Search The MLS