My Zeo

  • Home
  • About
  • Blog
  • Lifestyle
  • Health
  • House
  • Pets
  • Fitness
  • Money
  • Contact

The True Cost of Home Ownership: 6 Unexpected Costs of Owning a Home

February 19, 2020

The True Cost of Home Ownership: 6 Unexpected Costs of Owning a Home - My Zeo

Hispanic couple outside home with sold sign

Now that you’ve found your dream home and made an offer, there are quite a few expenses that come after. We’re talking a long laundry list of costs.

Did you know that the average American pays around $9,000 in homeowner costs? Of course, this varies depending on location. But what’s for certain is that the hidden and unexpected expenses can add up over time.

Keep reading to find out more about the overlooked cost of home ownership.

1. Property Tax

One expense that many new homeowners underestimate is property tax. When calculating mortgage payments, it’s essential to add property taxes. This is paid separately, but it’s sometimes amortized over the course of the year.

The cost of property tax varies by state, and they tend to increase or decrease based on city and ordinance. The Tax Foundation data lookup tool gives you an estimate of how much property tax you would have to pay.

2. Homeowners Insurance

Another overlooked expense of owning a home is homeowners insurance. If you’re getting a mortgage, you will be required to get homeowners insurance. Even if you pay for your home in cash, you will still need it.

Homeowners insurance covers the cost of replacing items that get stolen or damaged. The average annual premium for homeowner insurance is $1,130. However, you may get a better deal if you shop around.

3. Closing Costs

As you close on your mortgage, there are many other expenses to be paid. Closing costs for a home are typically 2 to 5 percent of the total cost of the home. Sometimes the closing cost is as high as 10 percent of the home’s value.

4. Home Maintenance

Even if you had your home build from the ground up, you would need to dedicate a spending budget for maintenance and upkeep. You should plan to pay at least 1 to 2 percent of the value of your home every year.

Home maintenance includes house cleaning, gutter cleaning, pressure washing, and water heater replacement. The cost of hiring contractors like an installation company may vary.

5. Utilities

Utilities cost for a home can be almost as expensive as property taxes. Homeowners can expect to pay over a few hundred dollars on utilities. Not to mention, estimates vary depending on location and climate.

Utility cost also includes relocation or transfer fees from your old place to your new home. Some companies may waive this fee under certain circumstances but, for the most part, expect to pay for relocation requests.

6. Home Inspections

Once your offer on a home gets accepted, the next step is to get a home inspection. Often you may need more than one inspection. This can add up to over a few thousand dollars. A positive is that if the home requires a lot of repairs and maintenance, you could renegotiate with the seller.

Are You Ready for the Cost of Home Ownership?

Although owning a home is generally cheaper than renting, it is very expensive. When looking for a home, be sure to factor in the cost of home ownership and budget accordingly.

For more content like this, follow our blog and subscribe to our newsletter!

Leave a Comment · House

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

About Me

Hello all!!!! I'm Darcy and I recently started writing on My Zeo about health and fitness (and part of that important health equation is sleep!). As we are all super busy with life, I try to integrate how to stay fit, relax and be healthy and happy through everyday life.

Facebook

My Zeo

NEWSLETTER

TeraHemp

Sustainable Tree Care Practices for a Greener Tomorrow

The Role of Trees in Sustainable Environments Trees are vital natural allies in combating . . .

Read the Post

On-the-Go Wellness: Why 7-OH Shots Are the Wellness Hack You Need

Let’s be honest: maintaining wellness in a busy world is a full-time job. Between work, workouts, s . . .

Read the Post

Satta Matka Result: Biggest Winner of 2025 Claims Record Payout

Have you ever wondered what it feels like to win a life-changing amount of money with just a simple . . .

Read the Post

Discover Why the SBLA Beauty Liquid Facelift Wand Was Named Serum Product of the Year

When it comes to anti-aging innovation, few products make a mark as swiftly and effectively as the . . .

Read the Post

Looking for a New Style? 5 Options to Consider

Tired of opening your closet and seeing the same outfits on repeat? Style ruts sneak up . . .

Read the Post

Follow Us Online

  • Facebook
  • Instagram
  • LinkedIn

Copyright © 2018 myzeo.com

Copyright © 2025 · Simply Pro by Bloom Blog Shop.