Palmer Harned, Realtor®
Palmer Harned
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Costs & Benefits of Homeownership

The sales price isn’t the only cost you will encounter during your purchase transaction, and homeownership costs don’t end at the settlement table. On the other hand, there are some incredible tax benefits and financial as well as emotional upsides to owning a home. We’ll review both below:


Home Inspection Usually depends on the size of the home, anywhere from $300-$1,000.

Termite Inspection – Can be paid by either the buyer or seller, usually around $50.

Appraisal – Also can depend on the size of the home, averaging $200-$400.

Closing costs – As mentioned in a previous post, around 2-4% of the sales price.

Movers – Assuming you hire professional movers & move nearby from a 1-bedroom condo, expect to pay around $1,500 (not including tip).

Mortgage – Each monthly payment is made up of 4 parts – Principle, Interest, Taxes, Insurance (PITI). Principle goes towards paying down the actual loan amount. Interest is similar to how you pay interest on a credit card and determined by the rate you locked with your lender. Taxes are your property taxes. Insurance is homeowners insurance, and mortgage insurance if applicable.

HOA/Condo Fees – Varies by neighborhood. HOA fees can range from around $70-$200/month. Condo fees can range from around $100-$500/month or more – something to carefully consider if looking at condos!

Furnishings – Don’t forget you need a couch to put in that nice new house!

Utilities – In a 3-bedroom townhouse, expect to pay somewhere in the ballpark of $300-$400/month.

Maintenance – Yard work, changing filters, replacing appliances, etc. Stay tuned for next week’s blog post with a homeowner maintenance checklist.


Tax benefits – You know all that interest and taxes you pay each month on your mortgage? You get to write it off. This can amount to nice returns.

Appreciation – In a healthy market in this area, homes appreciate by roughly 5% per year. So if you own a $400,000 home for 5 years, you could make up to $100,000 simply by owning it.

Investment – Along the lines of appreciation, your money is now going towards earning equity in your home rather than towards rent that you will never get back.

Borrowing Power – You can open up a line of credit with the equity you build in your home.

Move-up Potential – The equity you build can also be used towards the purchase of another home, which makes it easier to move up to a larger property.

Sense of Confidence and Community – The positive emotional impact of owning a home is unmatched to any other form of housing lifestyle.


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