Making the jump from renting to owning a Bethesda home, like any other, is a big step. Many Americans are eager to take the leap into homeownership because it’s one of the factors that embodies the “American Dream”. Unfortunately, many people don’t go into this huge undertaking with the knowledge and information they need to fully understand what they’re getting themselves into. Because of this, new research shows that many new homeowners are suddenly having home buyer’s remorse. Read on to discover why certain people are feeling this way and what you can do to ensure you're happy with your Bethesda home purchase!
A recent Bankrate survey shows that 44% of all Americans have some regrets when it comes to their home purchase. What’s even more surprising is that, when broken down generationally, a whopping 63% of millennials regretted buying their home. A few of the main reasons for this included the size of the house not meeting their needs, bad location, and mortgage payments being too high. However, their biggest gripe was related to unexpected maintenance costs.
Often times, new homeowners are unfamiliar with the extent of the costs required to maintain a home, including utilities, taxes and insurance, and unexpected repairs or replacements. As any seasoned homeowner will tell you, surprises are unavoidable, so it pays to be prepared. Whether you’re a new or prospective home buyer, we’ve provided a few helpful tips to hopefully take away any unexpected costs along the way — take heed and spare yourself the trouble down the road!
What? There’s more?
So you reserved a huge chunk of your savings for that large down payment — great! But you’re not quite done yet… Be prepared for closing costs that’ll range from roughly 2% to 5% of the home’s purchase price.
Maintaining your Home and your Happiness
It’s just a fact of homeownership that things are bound to break or give out, and they eventually will need repairing or replacing. It may be tough after a down payment and closing costs, but expecting the unexpected by keeping a reserve for repairs can make the difference between heartache and happiness. It's recommended to save 1% of your home's purchase price each year for upkeep costs. Take some time each month to inspect the pain points around your home and you can rest assured.
Don't Forget Those Taxes
One of the biggest mistakes millennials make is only factoring in the cost of their mortgage into their monthly budget. Property taxes and insurance can be a hidden cost that can create an extra burden if you’re not prepared. Avoid this by remembering when Property Tax is due in your area! (Or for those that happen to be in MD!)
Don't Get Stuck in the Dark
New homeowners often times come from situations where they were living in a smaller space or renting somewhere that many of the utilities were covered for them. This leads to unexpected costs when maintaining the utilities of your home. It is good to keep in mind that you will typically be paying for electric, gas, and water, some of which may be higher than what you’re used to paying depending on if you’re upsizing or not.
Home ownership should be an amazing and rewarding experience, a dream come true for most Americans. Buying a home puts your monthly payments to work as an investment, by building your own equity instead of your landlord’s. And, as a homeowner, you have total freedom to make the choices you want and live the life you envision for yourself and your family! Just keep in mind that a prepared homeowner is a happy homeowner. While we can’t rid you of property taxes, at The Washingtonian Group we promise to find you a Metro DC home that's a perfect fit for your lifestyle and your budget! Let us know how we can help.