Friday, March 14, 2008

Setting Money Aside for Home Expenses

Some first time home buyers believe that the only expense they need to worry about is how to finance the cost of their home. Many do not realize that there are many auxiliary expense that appear once you buy and move into your dream home.

For example, shutters are not included with the purchase of many new developments. Because of the unique nature of most homes, blinds/shutters will need to be custom made and fitted to your house. Hunter Douglas blinds/shutters can easily run you over $2,000 for only 3 windows.

Most apartments and rental units include water and garbage as part of the rental fees, while the renter pays for gas and electricity. You will need to take into account as a new home owner that you will be paying for all of them. This can easily double your monthly utility expense.

Most importantly, almost all new homes and some pre-occupied homes do not include with the purchase a refrigerator, washer, or dryer. That will be an additional $3,000-$5,000, depending on what brand and style you get.

One way of mitigating these expenses is to negotiate the cost into your final purchase price. Many new developments have on site "design centers" that can help make your new home "turn key" ready. The cost of this is incorporated into your final price and mortgage.

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