TDF homebuying tip: When factoring mortgage, HOA and utility expenses into your budget, don’t forget to include transportation expenses like gas, tolls, and auto maintenance like the frequency of oil, brake pads and fluid changes you’ll need. You’re thinking these things are unrelated, but as I always tell my clients, that daily commute can really hurt your pockets, AND steal your time.
You think you want to be down the road, in that new-build, near the new mixed-use development, with the fancy amenities, the new grocery store, etc. Looks amazing; they do that on purpose to draw you in. But don’t forget that you work 5 seconds from the District of Columbia, or Baltimore! And the traffic coming and going around the city is ALWAYS treacherous the closer you get. Add to that the neighbors going and coming alongside you, and the whole trip is a mess. Oh, and parking.
That return to office could cost you plenty if you’re driving an hour each way, 3-4 days per week. Not to mention the accident risk increases. Insurance is already ridiculous due to car thefts in the area, and homeowner’s insurance is climbing to record highs due to environmental factors and inflation. Oh yeah, and things always break down or pop up when you own a home. Heating, pipes, or pests can be a financial problem on any given day when you’re a homeowner. Did you budget for that?
Am I saying don’t buy a house? Absolutely not! I’m saying choose the location more wisely. What areas do you frequent for work and pleasure? How close do you need to be to your relatives/elders? Who’s close enough to grab your kids from school in case of emergency? What if you’re at work, and there is no one else? Can it wait 1.5 hours for you to get to the emergency?
You’ll also want to consider your options for insuring all your things to make sure that cost fits your budget. Check the deductibles and coverages closely. Home warranties aren’t as extensive as they used to be; there are usually costs you’ll still incur with the policy in place for big ticket items like HVAC replacement. That’s an easy $10K minimum. They may deny your claim altogether because of some obscure rule you missed in the fine print, or the age of your roof. Stash some cash for those instances. And keep your credit up. You can finance repairs. But that’s another monthly expense. Holler at your girl, though; I’m amazing at research, and there are state and local programs that help homeowners with such things, either through a loan or a grant.
Buying a home is a wonderful milestone that should be celebrated. The preparation, the budgeting, the anticipation, the precision used to orchestrate that move…. It’s all pretty awesome. Don’t complicate things by choosing the wrong location. Be open to exploring areas suggested by your real estate agent. They no doubt have preferred areas they’re super familiar with, that may be off the beaten path and still have everything you want, plus a nice yard or something you didn’t know you wanted. I know I do. Give it a chance. Count the cost. Be well. Onward….
From the Mind of Tonya D Floyd, REALTOR