Homeownership Expenses That Your Clients May Overlook

By the time buyers contact you for help in making a real estate purchase, they’ve probably crunched the numbers and determined how much they can afford to spend on a new home. They’ve likely factored in the down payment, mortgage payments, closing costs, taxes, and insurance. Your buyers even may have obtained pre-approval from a lender. Even the most meticulous buyers can overlook or underestimate some common home ownership expenses.

In this article, we’ll take a look at:

• The Ongoing Costs of Owning a Home
• Hidden Homeownership Costs

Annual homeownership expenses

General maintenance

Depending on the size and condition of the property, homeowners can expect a variety of seasonal and annual expenses. These may include routine tasks like filter changes and caulking, as well as more significant upkeep such as roof repairs for leaky roofs and HVAC system tune-ups. Properly addressing these general maintenance tasks helps keep the property in good condition and can prevent more costly repairs in the future.

Lawn care

Caring for turf, gardens, shrubbery, and trees can add up, even for do-it-yourself homeowners and for those with smaller yards. Buyers will likely have expenses for gardening equipment, fertilizer, weed killer, mulch, plants, lawn and garden products, plus any professional care. If there are trees on the property, buyers will need to budget for regular trimming, fertilization, and removal of hanging tree limbs that can fall and damage roofs, windows, and other trees, shrubbery, and plants.  

Termite and pest control

Protecting a home from termite and other pest infestations can vary according to region. Still most homes need some level of protection from termites as well as other common household nuisances, including rodents, ants, flies, roaches, bed bugs, and others.

Chimney cleaning

If the home has a wood-burning fireplace, regular chimney maintenance is necessary for fire safety. According to the Chimney Safety Institute of America (CSIA), the National Fire Protection Association (NFPA) Standard 211 says, "Chimneys, fireplaces, and vents shall be inspected at least once a year for soundness, freedom from deposits, and correct clearances. Cleaning, maintenance, and repairs shall be done if necessary." The Chimney Safety Institute of America also recommends that open masonry fireplaces should be swept at 1/8" of sooty buildup and sooner if there is any glaze present in the system.  

Swimming pool/spa maintenance

If the property has a swimming pool and/or spa, there will be costs associated with cleaning, chemicals, filters, pump maintenance and repairs, and possibly winterization in some climates.

Unexpected costs of owning a home

Repair or replacement costs

Home system and appliance breakdowns due to normal wear and tear are an inevitable part of homeownership. Significant and semi-common unexpected costs can include plumbing repairs, heating unit malfunctions, and air conditioner breakdowns, all of which can be costly to address without proper support.

Estimated repair or replacement costs* that homeowners without home warranty coverage could experience include:

• Air conditioner - up to $5,000
• Heating unit - up to $6,000
• Refrigerator - up to $1,700
• Water Heater - up to $1,500
• Range/Cooktop - up to $1,100
• Oven - up to $1,000
• Dishwasher - up to $800
• Washer - up to $850
• Dryer - up to $800

Repair/replacement cost is the eightieth percentile as reported in a nationwide survey of homeowners conducted in 2022 by ClearVantage for American Home Shield.

Don’t worry, be warranty

An American Home Shield® home warranty offers your clients budget protection for covered home systems and appliances with real estate plans specifically tailored for home buyers and sellers. When your clients fully grasp the expenses required in homeownership, they’re much more likely to enjoy their new home and feel great about their real estate purchase.

*Based on the 2022 ClearVantage report “A Study of Homeowners’ Appliance and Home System Service Experiences.” The “up to” costs listed above are in the 80th percentile of repair or replacement of high cost items in each category.

AHS assumes no responsibility, and specifically disclaims all liability, for your use of any and all information contained herein.