Costs homebuyers often don’t think about

RICHMOND, Va. (WWBT) - The low supply and high demand have made home buying challenging this year. So, it’s good to go into the housing market knowing all the costs associated with a home that a lot of people forget or are unprepared for.

Many home buyers focus on the sale price and forget about the fees involved in the closing process.

Mortgage insurance is a cost that sometimes takes people by surprise. The same goes for title insurance and homeowners insurance.

These are things you will pay for on top of the sale price.

Michael Joyce, of the Richmond Financial firm Agili, says you also should factor in property taxes to the cost of your home. With property values going up, assessments are going up - which means you’ll end up paying more over time.

And Joyce said not to forget about the cost of ongoing maintenance.

“We recommend having a certain percentage of the home value that’s dedicated towards home maintenance every year because things wear out, you’re going to have to upgrade things over time,” added Joyce.

You never know when you’ll need a new roof or when your AC unit will go out. It helps to save up for potential costs like that.

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