Buying a home is one of the most exciting—and financially significant—decisions you'll ever make. But while many buyers focus on saving for the down payment and calculating their monthly mortgage, there’s a lot more to the picture than just the loan.
As a local real estate professional, I work with buyers every day who are surprised by just how many hidden costs come with owning a home. These aren’t deal-breakers—but they’re definitely budget items you’ll want to plan for upfront.
Here’s a breakdown of the most commonly overlooked expenses—and how to stay ahead of them.
What to expect: Property taxes vary widely based on location, home value, and local assessments. In New York, particularly in areas like Westchester or Long Island, taxes can range from several thousand to over $20,000 a year.
Pro tip: Always request the seller’s most recent tax bill and ask your lender to factor this into your pre-approval estimate. Keep in mind taxes can increase after a sale, especially if the property was previously undervalued.
What to expect: If you're buying a condo, co-op, or a home in a gated community, monthly fees can range from $200 to over $1,500, depending on amenities, staffing, and building upkeep.
Pro tip: These fees often cover snow removal, garbage, landscaping, and even water or heating. But they can also increase—so review the building or HOA’s financials and reserve fund before signing.
What to expect: Even newer homes require regular upkeep. From furnace filters and roof cleanings to plumbing and appliances, the typical homeowner should budget at least 1% of the home’s value annually for maintenance.
Pro tip: Set aside a rainy-day fund. Big-ticket items like boilers, water heaters, and roofs eventually need replacing—and costs can range from $3,000 to $25,000+.
What to expect: Your mortgage lender will require homeowners insurance, and in many areas, additional coverage for floods or windstorms may be needed. Premiums in NYC and Westchester typically range from $1,000 to $2,500+ annually.
Pro tip: Ask your insurance agent about bundling with auto coverage for discounts. Also consider loss-of-use coverage in case repairs make your home temporarily unlivable.
What to expect: Heat, electricity, water, and internet can add up quickly—especially in older homes that aren’t energy efficient. Monthly utilities may run $300–$700 or more, depending on square footage and energy habits.
Pro tip: Before buying, ask for the seller’s utility bills. Then consider budgeting for upgrades like insulation, programmable thermostats, or solar panels to reduce long-term costs.
Homeownership is a powerful way to build wealth, gain stability, and have a place that’s truly your own. But don’t let hidden costs catch you off guard. By preparing for these expenses upfront, you can make confident decisions and avoid financial stress down the road.
As always, I’m here to help you navigate the full picture of homeownership—not just the mortgage.
š² Connect with me at 917-254-2103. My goal is to help you accomplish yours!
To connect with me directly, contact me at 917-254-2103. For your FREE Home Evaluation to learn the value of your home, your Homeowner Resource Guide, or your Home Buying/Down Payment Assistance Guide, use this link:
š https://bit.ly/45URvuV
or text HomeswithJustin to 85377.
To connect with me directly, contact me at 917-254-2103. For your FREE Home evaluation to learn the value of your home, your Homeowner Resource Guide, or your Home Buying/Down Payment Assistance Guide, use this link: https://bit.ly/45URvuV or text Ho
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To connect with me directly, contact me at 917-254-2103. For your FREE Home evaluation to learn the value of your home, your Homeowner Resource Guide, or your Home Buying/Down Payment Assistance Guide, use this link: https://bit.ly/45URvuV or text Ho
If you want to buy a home, it's important to know how mortgage rates impact what you can afford and how much youāll pay each month. Fortunately, rates for 30-year fixed mortgages have come down significantly since the end of October and are cur