Thinking of taking the next steps to become a homeowner in Southern Maryland? Before you commit to anything, it’s important to understand the costs associated with owning a home that go beyond the mortgage. There are fees, taxes, and expenses that come with homeownership that all need to be taken into account. Here are some things to keep in mind:

Taxes and Assessments

Property taxes are set by the local government, and they are assessed annually based on the home’s value. This is one of the largest ongoing costs when it comes to owning a home in Southern Maryland; they can range anywhere from 0.7%-3% of your home’s market value, plus any additional taxes imposed by special districts. Property tax assessments can also increase over time as your home increases in value due to renovations or appreciation. Be sure to factor this into your budget when you’re searching for a home to call your own.

Homeowners Insurance

All homeowners must carry basic homeowners insurance coverage when they buy a house — usually around $1,000 per year, depending on where you live and how much coverage you choose. Apart from that, if you have valuable possessions like jewelry or artwork, you may want to consider adding an umbrella policy for extra protection beyond your standard plan. Be sure to shop around so you can find the best rates before signing on with any specific provider.

Utility Costs

Utilities such as gas, electricity, water, sewage, and garbage collection have to be paid for each month. If you rent, these costs will sometimes be included in your lease; but when you own the home, they are your responsibility. It’s important to do research into what services may be required and how much they cost before agreeing to buy a home, so there aren’t any unexpected surprises.

Maintenance and Repairs

The costs associated with maintaining and repairing your property depend largely on the age and condition of your house prior to purchase. Older homes will require more frequent maintenance than newer homes, so keep this in mind when house shopping.  Additionally, if there are any major repairs needed (roof, plumbing, etc.), those costs can add up quickly; so be prepared to budget appropriately each month for things like that.

 

 

Buying a new home is an exciting milestone, but it comes with some responsibilities beyond just paying your mortgage every month. It’s important for potential buyers to understand all of the additional costs associated with owning a home, as well as how much these costs may fluctuate over time. By understanding these upfront costs, you can ensure you are correctly budgeting each month and protecting your investment.

If you’d like to get pre-approved for a mortgage you can do that here (my contact information is there too, if you want to talk more about your options). I’d also be happy to recommend some experienced, local Realtors. Just reach out — I’d love to help in any way I can.