Buyers are responsible for additional costs they often overlook when shopping
Annual costs for necessary expenses and maintenance can total about $9,390 for the average American homeowner -- but homebuyers usually overlook these additional costs when shopping for a home, according to an analysis released by Zillow and Thumbtack.
These costs – such as property taxes, insurance and maintenance – are associated with owning and caring for a home.
With a third of home shoppers finding budget a challenge during the process, Zillow and Thumbtack looked at several common costs to calculate how much homeowners around the country can expect to pay in annual expenses. The analysis also took into account utility cost estimates from UtilityScore.
Necessary expenses for property taxes, utilities, and homeowners insurance totaled $6,327 per year. Expensive markets like San Jose, Calif., can see higher necessary expenses. With typical San Jose homes worth $1.3 million, necessary costs in the city add up to $17,255 per year, the highest for any market in the analysis.
Maintaining a home covers house cleaning, lawn care, carpet cleaning, central air and heating system repairs, gutter cleaning, and pressure washing. With many homeowners opting to hire professionals for these projects, these tasks add up to a nationwide average of $3,067 per year.
"Ongoing maintenance costs and annual fees are some of the most common surprises for first-time home buyers after they finally become homeowners. While they are shopping, buyers tend to focus on their monthly mortgage payments, but other needs quickly add up after move-in," Zillow Senior Economist Aaron Terrazas said. "The list price is just the beginning of understanding the costs that come with being a homeowner, and it's important to understand what other expenses you may have to account for when determining what you can afford."
