A recent study of 1000 homeowners by Real Estate Witch found that nearly 9 in 10 say that owning a home was more expensive than they expected. Two-thirds of the homeowners who participated in this study admitted to having buyer’s remorse.
Many of those homeowners underestimated the expenses of owning a home, aside from the mortgage. These expenses include maintenance, improvements, utilities, property taxes, and insurance. According to Real Estate Witch, they average $17,958 annually.
The highest expense was for utilities: electricity, gas, water, sewer, and trash collection, which cost on average around $5,362 annually.
The most unpleasant surprise for new homeowners was the property tax. These taxes are often included in the monthly mortgage payment. However, even if the mortgage loan has a fixed rate, increases in the property tax can raise the monthly payment. Quicken Loans states that changes in property taxes depend on a variety of factors.
Homebuyers should consider various factors before purchasing a home, including price, location, size, property taxes, amenities, and homeowners association fees.