Homeowner expectations shift dramatically between the time of purchase and the day they realize they are behind on house payments.
Inevitably the costs associated with owning a home are higher than they originally thought.
This is one area where I wish I could turn back the hands of time and explain the hidden costs of home ownership before the unsuspecting homeowner’s finances spiral out of control.
I always wonder if this subject were more widely talked about, would we be seeing fewer homeowners in trouble with their mortgage companies? Maybe fewer people would get behind on house payments.
The extra baggage are those expenses that are related to the home. While not exactly the mortgage itself, they are assumed the homeowner will take care of them. But boy, can they add up!
Some of these can be trimmed, but some are just as important as the mortgage payment itself.
When finances get tight, you can group house-related expenses into three categories based on necessity. Knowing these will help you adjust how and where to spend your money.
For example, your first house-related priorities are property taxes and insurance — both required. Both amounts are easily obtained before closing, too. They should be divided by twelve and tacked on to your total right off the bat. These mandatory fees can add thousands to your payments over the course of one year.
Besides those expenses, there are others that while necessary and routine, can be put off for a little while. These include:
- Maintenance (leaky faucets, air filters, water softener parts, cleaning supplies, pet and kid-related disasters, etc.)
- Appliance repairs (furnaces, AC units, refrigerators)
- Pest control (Once termites start eating floorboards you only have so much time before you have to replace them.)
- Technology expenses like phone, cable/dish and computer wiring (How many people do you know would go without cable until the shower was re-grouted? I rest my case.)
Finally, there are the costs associated with the lifestyle of the homeowner. New furniture, groundskeeping, yard maintenance, upgrades to the basics (light fixtures, energy saving programmable thermostats, window coverings) and things you never thought you needed until you bought your home (the dog, the grill).
I usually meet the homeowner right about the time they are trying to find a solution to avoid a foreclosure. The subject always turns to the expectations they had when they bought the home.
If this stuff were commonly known, they wouldn’t feel so “stuck” now. If they would have been prepared for these three groups of expenses, from the most important to the least urgent, they might not be in this position.
The source of worry and dread of making house payments is usually accompanied by those other house-related expenses becoming less important. Repairs and maintenance fall behind. Just when you think you need to sell your house fast, the house has started to fall into disrepair. As a result, most buyers tend to pass it by.
The good news is that some investing firms like Markette Properties purchase properties regardless of the condition. Markette Properties, for example, buys houses in less than “retail-ready” condition, when the hidden costs of home ownership start to add up and those little repairs are neglected.
Sometimes the last step — making a phone call to explore alternative mortgage solutions — is the way to get out in front of all those hidden costs. And unlike all those hidden costs you never expected, it doesn’t cost you a dime to just pick up the phone.
We can buy your house fast in Texas! Markette Properties presents an unique, simple approach for selling your home! We are real estate investors. We buy houses in Texas just like yours! We are dedicated to the highest professional real estate standards for all of our clients.
Do you want to sell your house fast in Texas for top dollar with the least hassle? Give us a call! (210) 853-2788 or click the button below.
Photo Credit Flickr CC: chanderpur