Video Transcript: Homeowner costs
Stacey: Home ownership comes with a host of expenses beyond your fixed monthly payments. What are those additional costs? Let's find out on "What Works Now."
Voice Over: AOL and Bank of America Home Loans – helping you find out what works now.
Stacey: Few things are as exciting as buying your first home, but it's important that you have a clear understanding of all your monthly expenses. So let's put together a budget. Keep in mind, your expenses may vary depending on the county and state you live in.
Narrator: Right off the bat, there are two big expenses you need to prepare for. The first one is homeowner's insurance. According to the National Association of Insurance Commissioners, the average homeowner's policy costs about $820 a year.
Stacey: The second is taxes. When you were renting, your landlord picked this up for you. Now, it's your responsibility.
Narrator: Taxes and insurance will vary in rates, depending on the area you live in and the size of your home. Utilities are next on the list. Be prepared to pay for everything from electricity and gas to water.
Stacey: Even if you paid your own utilities as a renter, don't be surprised to find your bills are higher. If you're moving, let's say, from a one-bedroom apartment to a four-bedroom home.
Stacey: Don't forget to factor in outdoor maintenance as well. Garbage pickup, snow removal and sewage are often part of a town's fees.
Stacey: Home maintenance is the biggest unknown expense for homeowners. That's because you have to cover all of your own repairs. While you never know when the roof will start leaking or an appliance will break, you can anticipate and budget monthly for necessary home upgrades
During the home inspection, ask the inspector when he thinks key components, such as the boiler or furnace, will need to be replaced.
Stacey: While it may seem like there are a lot of costs to keep straight, your real estate agent and the seller can provide you with an estimate, so you can budget appropriately.
Voice Over: For more great videos, log on to realestate.aol.com.