- Free Consultation: (202) 448-5136 Tap Here To Call Us
The Hidden Costs of Owning a Home
According to the Urban Institute, 63 percent of millennials who bought homes have regrets resulting from underestimating the hidden costs.
Zillow found that American homeowners spend nearly $9,400 in hidden costs to own and care for a median-priced home. Let’s first differentiate hidden costs from not-so-hidden costs.
Not-so-hidden costs: Mortgage, taxes, and insurance
Your mortgage payment is not a hidden cost. If you take out a loan to buy real property, then you will have a monthly mortgage payment.
Likewise, taxes and insurance are not hidden costs and are often (but not always) covered in your mortgage payment. An understanding of how much taxes and insurance will cost is an important part of the decision to buy a property.
Hidden cost: HOA fees
HOA fees. When you buy real property governed by a homeowners association, then you will have to pay a monthly or quarterly fee (or “assessment”). You agree to be bound by the HOA at closing on the property, so HOA fees are not hidden. But less obvious is how often and by what percentage the fees are increased. Only by reviewing the association’s documents will you be able to determine how often the HOA raises its rates (and by how much). Also look into the association’s history of “special assessments,” which is an amount additional to regular fees, charged
to make up for budget shortfalls for big-ticket items like roofs or boilers. Special assessments can be very costly.
Hidden cost: Maintenance
Fixtures and appliances periodically break down and need to be replaced. Know the age and replacement value of appliances and fixtures before you purchase the property. Upkeep and repairs can run thousands of dollars per year, depending on the property. Plan on spending between 1 percent and 3 percent of the total purchase price every year on home upkeep and maintenance. Roofs last about 20 years, refrigerators about 13 years. Eventually everything will need replacement.
Hidden cost: Closing costs
These costs include application and appraisal fees, attorney and/or title fees, courier, credit report, home inspection, etc. Estimate approximately 2 percent to 5 percent of the purchase price for closing fees. Zillow says that on average buyers pay about $3,700 in closing fees.
Hidden cost: Utilities
Water, garbage, cable and internet, electricity, gas. No one considers these costs “hidden.” But know before you buy what the average utility bills run for the property. Some HOAs include some of these costs in their fees. But other properties require enormous expenditures on utilities, especially for heat and electrical. Find out beforehand how much you will need to budget for ongoing utility bills, and where you may be able to trim.
They Called. They're Glad They Did.
Brian Lee from Lee Legal was an amazing attorney to work with. He took his time, reviewed my documents and we discussed my situation thoroughly. He explained the process and my options as well as gave his recommendation. Not only did he assist, but he ensured that I knew this...
Brian handled a legal matter for me and he was fantastic. He kept me informed of all updates and resolved all issues that were presented. I highly recommend Brian to all seeking legal advice and services.
I was very nervous and scared about going through this process. But Brian was very knowledgeable and helped me through it. I was notified about any and all updates to my case and he was very responsive when I had questions regarding any concerns I had. Although a bit nerve...
I've had the pleasure of working alongside Brian V. Lee for several years, and I can say without hesitation that he is one of the most knowledgeable bankruptcy attorneys in the DMV area. Brian's command of Chapter 7, 11, and 13 practice is exceptional, and his clients in the DC...
I wanted to share my sincere appreciation for Brian and the support he provided during a very difficult time for my grandmother. We were not wealthy, but Brian treated us with genuine kindness and respect, making sure we felt comfortable throughout the entire process. He took the...
Still several years from Public Service Student Loan Forgiveness and saddled with significant student loan payments in proportion to my income, I came to Lee Legal to explore the bankruptcy path. Through his counsel, Brian took the fear out of the process and helped me to...
Brian provided me with a very detailed analysis about my potential case after our first consultation. He promptly responded to all my complex questions, especially navigating student loans and some tax discussions. He is very professional and experienced at what he does, I would...
I had the opportunity to work with Brian at a time when I was challenged by a professional setback and forced with the challenge of making some very difficult legal decisions. Additionally, I worked with him again as I was dealing with some financial issues pertaining to my...
Brian has the amazing talent of taking complicated legal matters and distilling them down to seamless, frictionless resolutions. He is a phenomenal problem solver and a trusted advisor.
I came to Mr. Lee in a panic when I was experiencing health problems and the walls seemed to be closing in on me. Initially, I interviewed four attorneys seeking assistance with my situation. He was one of the most thorough and thoughtful people I’ve ever met. His kindness and...
Brian is both warm and professional. He helped me navigate a financial issue that I had not been looking forward to working on and he made the entire experience non-stressful, receiving a lot of anxiety I had around the matter. He is straight forward and a fantastic problem...
Brian is an amazing lawyer. He was referred to me by a friend who was also pleased with his work. I found him to be affordable, efficient, understanding, and easy to talk to. He really cares for his clients and is very committed to doing his best. He is very knowledgeable and...
This is your last stop in your searches for an attorney. After numerous research and interview with many lawyers, I decided to hire attorney Brian Lee. He is extremely knowledgeable, personable, attentive and diligent. He went above and beyond to file my ch 7 bankruptcy and get a...
