Hidden Home “Money Sucks” with Desrochers Realty Group

When buying, building or just owning a home, there are often “hidden” costs that go way beyond the purchase price. Julie and Daniel Desrochers from Desrochers Realty Group and Coldwell Banker Burnet share what you should watch for and how to get ready.

Closing Costs/Purchasing Costs: All Buyers will have closing fees and purchasing costs when they purchase a home, depending on the type of financing those costs may be higher. For example, a cash buyer’s closing costs will be lower than a buyer that is taking out a mortgage. Some example of these fees and costs:

  • Lender fees
  • Appraisal
  • Title fees
  • Insurance and tax escrows
  • Inspection costs
  • Homeowners Association transfer fees
  • HOA fees paid upfront

Most will be paid at closing but some items like inspections are out of pocket expenses before the purchase. Home inspections can cost anywhere from $300 to over $1,000. Keep cash on hand for maintenance and repairs. Home ownership is a lot different than renting. No longer is there a landlord to pay for that furnace repair or to replace the broken water heater. Buyers need to have money saved up to pay for yearly maintenance issues and what ifs. A buyer can also purchase a home warranty to cover items like appliances and HVAC system. It seems to never fail that if buying a previously owned home something will fail in that first year. Dishwasher may be 4 years old and have been working great and then you close on the house and week later it stops working! Maintenance items that should be done throughout the year that cost money:

  • Changing filters, ex furnace, air exchanger, kitchen exhaust
  • Exterior paint touch ups and siding repair, caulking
  • Should have your furnace & A/C cleaned and serviced once a year
  • Chimney cleaning & Gas fireplace cleaning
  • Clean dryer vent
  • Smoke & CO detectors checked and switched out if not working
  • Shower/bath caulk and grout
  • Pest control

Buying a new construction home can be a great way to not have to worry about that water heater going our right after you purchase or having to replace the roof within a couple of years but there are other costs to prepare for.

  • Blinds/window treatments
  • Landscaping
  • Patio or deck
  • Washer and dryer
  • Shed

Yard Maintenance & Exterior Costs:

  • Lawn maintenance and landscaping – need to budget for spring and fall cleanup, annuals, flower pots, etc.
  • Lawn fertilization
  • Do you have a sprinkler system – need to have that blown out/winterized each year
  • Snow removal in the winter
  • Cleaning of gutters
  • Re-sealing of driveway
  • Staining/painting of decks
  • Maintain landscape grading

Most Common Repair Items in Older Homes:

  • Furnace or a/c
  • Hot water heater
  • Roof
  • Replacing of windows
  • Chimney exteriors needing to be tuckpointed or rebuilt
  • Plumbing repairs (leaks, toilet mechanisms, etc.)
  • Clogged main drain – need to have it professionally cleaned
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