In this post, we provide an overview of these often-overlooked expenses to give you a better idea of what to expect as you plan and save to buy a home. We\u2019ll also share money-saving tips and how to find a home for sale with a lower interest rate.<\/p>\n\n\n\n\n\n
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\n <\/div>\n \n Save thousands when buying a home<\/h3>\n
HomeLight-recommended real estate agents are top-tier negotiators who understand the market data that helps you save as much as possible when buying your dream home.<\/p>\n \n
1. Property taxes<\/h2>\n
Property taxes are a significant annual expense for homeowners. These taxes are based on the assessed value of your property<\/a> and can vary widely depending on your location. On average, property taxes can range from $1,000 to over $9,000 per year, with some states like New Jersey and Illinois<\/a> having the highest rates. Some states with the lowest property tax rates include Hawaii and Alabama. A local real estate agent can give you a ballpark estimate of what you might pay in taxes on a house in your desired market.<\/p>\n The average annual cost of homeowners insurance in the U.S. is around $2,728<\/a>, or about $227 per month. What you pay will vary based on based on factors like the location of your home, its size and age, and the coverage limits<\/a> you choose.<\/p>\n You\u2019ll need to budget more for home insurance in Disaster-prone states like Florida, Louisiana, and Oklahoma. For example, some homeowners in South Florida are paying an extra $500 a month<\/a> in insurance costs. Because of the increasing risk to insurance companies, homeowners nationwide are expected to see a 6% increase<\/a> in average premiums before the end of the year.<\/p>\n Ask your agent about homes for sale that might have more affordable insurance rates or features that qualify for discounts, and shop around for the best rates and policies to keep your expenses manageable.<\/p>\n Regular home maintenance<\/a> is necessary to keep your property in good condition and prevent costly repairs down the line. These costs can include routine tasks like cleaning gutters, servicing HVAC systems, painting, and maintaining the landscaping. On average, homeowners should budget around 1% to 4%<\/a> of their home’s purchase price annually for maintenance. For a median-priced $436,000 home, this means setting aside $4,360 to $17,440 each year for upkeep \u2014 or a minimum of $363 per month.<\/p>\n You may not always need these funds, but they play a key role in maintaining your investment. Once you become a homeowner, following a home maintenance schedule<\/a> can help you protect the value of your property and avoid costly repairs.<\/p>\n All combined, Americans pay an average of around $429 per month<\/a> for their utility bills, according to Forbes. These costs can be higher in larger homes, regions with extreme weather conditions, or areas with limited utility options. For example, homeowners in Hawaii pay the highest monthly energy bill ($177.78), and homeowners in Utah pay the lowest ($80.87).<\/p>\n2. Homeowners insurance<\/h2>\n
3. Home maintenance costs<\/h2>\n
4. Utility costs (electricity, gas, internet, cable)<\/h2>\n