Buying your first home is a huge achievement. Although the biggest expenses are behind you, are you financially prepared to deal with unexpected expenses? Here are three common expenses that new homeowners likely will find surprising (and depressing).
Replacing your HVAC system
The HVAC system in your home is responsible for heating and cooling. If you’re like most people, you live in an area that experiences extreme temperature changes. A new air conditioner or heater can cost a few thousand dollars, depending on the size of your house and the efficiency and quality of the system. While a new heating or cooling system is usually tested during the home inspection, there is no guarantee of how long it will last. An AC, furnace, or heat pump that’s nearing the end of its useful service life often will operate inefficiently and experience frequent breakdowns.
Buying New Appliances
Perhaps the appliances in your new home are a bit dated but in working order. If you’re lucky, these appliances will continue to work for several years to come, or until you can afford to replace them. Sadly, this is not always the case. Appliances can break without warning and need to be replaced. Buying a new dishwasher or refrigerator can cost hundreds of dollars, if not more. A new washing machine or dryer is another significant out-of-pocket expense.
Regular Upkeep and Maintenance
If issues arise, you’ll need to consult an expert before making any major decisions. Are you aware that many maintenance companies charge a service fee just for showing up? If you call someone to look at your air conditioner, they will probably charge you a fee to diagnose the problem in addition to the actual repair costs. If the problem is more serious, you might want a second opinion. The costs can add up.
Owning a home can be exciting, but it can be challenging, too. An emergency fund can give you peace of mind. In case you have not purchased a home yet, but are looking, be sure to factor these potential expenses into your budget.
