How to Plan for Your Home's Fixed Costs

By: Holly Grate 

So you’ve searched Zillow until your eyeballs are dry. The perfect house ACTUALLY exists and you are days from making a new life in that house. Congratulations! Happy days! Life is good!

Fast forward six months…y’all are eating macaroni and cheese from a box every night in order to pay the colossal electric bill that keeps the pool and hot tub you were so excited about running 24/7. 

True story. It happened to me. My husband and I had searched high and low for a solid year for the perfect place to continue raising our three munchkins. We found a beautiful ranch on 2 acres with a pool, barns, wood burning fireplace and ENORMOUS costs. We are both excitable people and never gave one thought to what it would cost to maintain a home like this. Oops.

How can you side step this scenario? Plan my friends, PLAN. Each home has a different set of fixed costs. Understanding them before you purchase will be greatly beneficial to your bottom line. Here are a few that you should consider as you search for that perfect place.

UTILITIES - Each home and their utilities are different. Be sure to check with the current owners of the home about the cost of gas, electricity, and water. Our home has a well, which saves us on the water bill but also boosts our electric bill as it costs to run the well pump. Inquire about the availability of garbage removal and recycling. What type of cable and internet are provided? Will you be utilizing a home phone? Be thorough!

HOA OR CONDO FEES - Seeing this monthly fee can be intimidating. Considering what the fees cover can be beneficial. We lived in a community where the HOA fees seemed quite steep until you discovered they included access to a world class gym, indoor pool and covered tennis courts. Decide what’s important to you and if it’s worth it for your particular lifestyle.

PROPERTY TAXES - The home you’ve decided to buy is in THE BEST school district. Most likely your property tax bill will reflect that. Be sure to consider the size of your home as that will often affect your property tax bill as well. Here’s to finding the perfect home AND having steak for dinner! Cheers!