I learned a lot (I think) when I bought my current house, which is also my first house. I really had little/no idea of some of the post-purchase costs beyond the insurance, taxes, etc. and really learned, and still learning, about costs involved with home-life.
After the first couple of years I started to see these costs that previously never crossed my mind prior to purchasing this first house and I observed this with friends when they bought their first house.
I remember upon closing on my home in December 2000 I would be buying something to handle the yard-work. I didn’t think about a $400 mower, and never gave thought about the trimmer, edger, spreader, etc. nor did I think about how soon I would need them.
I’ve now been in the house a little more than four years and some of the bigger expensies are coming up. Because it was a cookie-cutter home the cook’s paint, if you will, has failed. Found my painter and now need to make sure when the best time is to actually have them repaint the house … at a cost of $3500. Nope, I never gave that potential expense a thought prior to closing on the home.
Repairing roof shingles was a treat, as was resealing a couple of eye-brows (architectural pieces on front of house) when the flashing failed. Not bad as a contractor got me for only $300. And this is only the beginning as the costs of cheap cookie dough sets in. For instance, its soon to be time to start pulling up the contractor carpet in high-wear areas and put down something like hardwood.
I remember my first gas bill, too. Happened to be a first Winter that was also a cold one (abnormal, I am told). and the two occupants wound up with a $300 gas bill for enjoying that 65ºF temperature. Of course, this was complimented bu Spring’s watering bill (for the yard) which produced a $175 water bill for two people (and this is Atlanta).
Its surprising how these little costs can be add up over time. No seller, real estate agent, or even your buyer’s agent will ever inform to the first-time buyer. I am sure i missed a lot of the other types of potential hidden costs that first-time buyers run across in surprise. Anyone care to share?
Replies
I think the main cost is what it costs in terms of the loss of mental health! ;-)
I have alot of gray hairs .
I'm just surprised that no one cared enough in my little world to 'enlighten' me so that I would be better [mentally] prepared when I had bought my first home. I think some people make the mistake and live beyond their means because of poor planning and ignorance. The industry, including homeopwners looking to sell their home, all seem to keep hush-hush to the first-time homebuyer. That's really unfortunate.
I have not taken the path those people took with me. Instead, if I know someone that is buying their first home I try to pass along information that I found helpful, all be it late in the game.
Ialso tryed to pass on the things I learned from buying a home,(Live and Learn).
When I got married the first time we bought a house through a finance company whose CEO had just been found guilty of a bunch of offenses. The company was asking me stuff that bordered on how many squares of TP I used in a week (like, "We see that on January 7th, 1989, you put $250 in your bank account--what was that money from?"). I said, "If you had investigated your CEO the way you're investigating me, you wouldn't have had all the trouble you've had!" The reply was, "Unfortunately, our CEO wasn't trying to finance a house with us, as you are." Woah! Then the day before closing my wife was fired from her job. I tried to get out of the deal, but they wouldn't let me and told me they had financed the house based on only one of us working anyway.
Moved in and found out the wood burning stove smoked and was too close to combustables, roof leaked around the chimney (so I ended up yanking the stove and the several hundred pounds of brick around it that wasn't supported) and re-roofed (despite being assured that the roof was in good condition when I asked before buying the house). The wiring was a total disaster and not to code--which of course I had to fix in order to sell the house later.
Yeah, home ownership can be challenging.
We have friends that was going to lend us some money for closing cost.the bank acted as if we were laundrying money. I forgot about that one.We didnt need the money.
On the house I mentioned, the day before closing, the financing company called and said, "Oh, by the way, we need another $600 to close." For me, coming up with $600 was a trick, especially when I'd pretty much drained my bank account to come up with the first bunch of money they wanted!
Brings back memories.All these things just cant happen to just us. Heres one, How about when the bank called me and the house didnt appraise at the money the seller was selling the house for and I had to come up with 5,000 dollars. lucky for me the seller wanted to sell and lowered the price.
Edited 4/14/2005 11:29 pm ET by Superman
Welcome to home ownership.I bought my first house with no help from friends or family.I think people know but dont want to say what your in for.As for our second house we had a home inspector 500.00 dollars. What a piece of work he was. The little things didnt seem to matter until you start fixing them,and the money starts flowing. like our driveway needed a little repair now should be replaced. heating bill 380.00 electric per month(winter).So we had gas put in 12,0000 dollars later gas prices went up all time high. And how about the 1% sales tax for selling and 1% for buying a home.Is it worth it. Painting,drywall, lawn work,bills,bills,bills. And you need to go to work,work overtime just to fix things and have have your family always needing and wanting things. Welcome to home ownership and life.
Edited 4/13/2005 11:46 am ET by Superman
When we closed on our house the mortgage company had 3 months to research my finances. Then 3 days before closing they said they needed some paperwork, and they charged an extra fee because it had to be fed-exed from Florida.
Just wait until you try to refinance - they have more hidden costs there that you don't expect. My mortgage company offered a 'no-fee' refinance, but they told me farther down in the process that it didn't apply to me because my house is held in a trust, so instead I ended up paying through the nose for a refi. Then, on the day of closing, they're all like 'what, your house is held in a trust? that will be an extra $100 for the title company to take the house out of trust for the closing and put it back in after'. So the extra fees I was paying for the refi to the mortgage company were wasted - they just wanted an excuse not to hold up their end of the deal. Then after closing they waited THREE WEEKS to file, so I had to make a payment (and interest) on the old load as well as having had to make the first payment on the new one. Guess those several hundred extra dollars of fees buy real first class service.
I hate bankers. I'll finance my car with a car dealership just so I don't have to talk to them. So I end up paying more, it keeps me from jumping across the desk and strangling somebody.
Here's one ...
You are at the attorney's office for closing and the mortgage company faxes over the wrong mortgage. Only problem is that a) this is discovered half-way through signing documents, and b) take almost two hours to get the new documents to the attorney's office. And what should have been a rather short experience, turned out to be four hours in an office full of stuffy people.
Thankfully our refinance experience went much, much smoother and we wer in & out in under 30-minutes.
ever heard of a "wink fee" I had to pay it when i was raising some money to carry a spec home . At the time of recieving the money i was tolld there was a wink fee as in give us a $1000.00 more for handling this tranaction plus the stated fee & we will wink when we recieve it , i paid because i needed it . Two years later on sale of the house i owed $2000.00 more than i had borrowed . Lifes a bitch sometimes
What kind of house do you live in, a cardboard box. I saved my money and bought a 55 thousand dollar home. put alot of money into it sold it for64 thousand. and bought a 175 thousand home and still fixing things.
Johnny doesn't have a family, so it makes it easier to get those savings to build a home. I couldn't afford to buy a lot around here without financing, much less the materials for even a small home. And since he works in the industry, he has some of the knowledge and tools to do it himself.
Frankly, I don't think it matters if you build it yourself - there are always costs that the inexperienced don't expect, even if all the materials you use are free and you build it yourself. If you build, there are costs for sewer hookup or septic install, electric hookup, water hookup - just prepping a lot around here is very expensive. Then once you've built there is landscaping (unless you like plain dirt), window covering (unless you are an exhibitionist), and a host of other little 'hidden costs'. Not to mention the fact that people who have never owned a home or worked in the construction industry should think twice about building for themselves!
My wife tells me I complain alot. But there are people out there who have the same problems with home owning. Things cost and cost and cost. And when you pay one bill another one is waiting. Its good to know that Im not the only one out there trying to keep my head above water.
What else is a person to do? Rent a home? That's usually worse. No matter what, it costs money to put a roof over ones head. I do think it would be nice to require classes in high school for this type of stuff. Mike.
We think alike.
I do not think its that people were decided upon a complaint as their intention of reply, but rather the youthful ignorance of why was ahead when they bought their first home.
At least that was the intention of my posting this thread. I also wanted any first-time homebuyer to consider reading this thread and maybe not be surprised as we all were.
I'm happy that what you are doing works for you . I have kids and every time I have savings my cousin MURPHY : his law causes it to deplete. So that wasn't an option. I live well within my means but still have issues with my home.The $500 dollar electric bill in one month the $116 the next month, the fence falling every other week and poles breaking in the ground the wind carrying it all down the street ,add all this and being a single parent to boot it gets kind of hectic.While I see what you mean when you say save then buy, those who can't have to do something.
Edited 4/21/2005 4:00 pm ET by carmel