"Hidden" costs of homeownership in Seattle area tops $20K
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The "hidden costs" of homeownership in the Seattle metro area is nearly $21,000 a year on top of mortgage prices, the fourth highest in the nation, a recent real estate analysis has found.
Driving the news: That's an extra $1,750 every month most homeowners are paying on top of what is likely an already expensive mortgage payment, according to the report by Seattle-based Zillow and Thumbtack, a home maintenance app.
- Those costs include maintenance, utilities, property tax and insurance.
Why it matters: Nearly half of all home shoppers are first-time buyers who are facing affordability challenges in today’s market, and may be caught off guard by these expenses or fail to account for them when figuring out how much home they can afford, Zillow spokesperson Gina Cole told Axios.
The big picture: Nationally, homeowners can expect to pay $14,155 a year in additional costs related to owning a home.
- In San Francisco, New York and Los Angeles, those additional costs top $22,000 annually. They, along with Seattle, have the highest extra costs among the 39 metro areas analyzed.
- The extra costs are lowest in Las Vegas ($9,886); Asheville, N.C. ($11,318); and St. Louis ($11,824), the analysis found.
But, but, but: Technically speaking, these are not really "hidden costs," John Manning, the managing broker of RE/MAX Gateway in Seattle, told Axios.
- Insurance and property taxes are highlighted by mortgage lenders, and buyers should know what they are paying each month in principal, interest, insurance and property tax before they sign on the dotted line.
- But what people may not account for, he said, is how much some of those costs, particularly property taxes, can go up in a given year.
- King County is the largest property tax base in all of Washington and has the highest levies as well, he said, sometimes leading to increases that surpass inflation.
Be smart: When Manning talks to potential homeowners, he first discusses rainy day funds and budgeting for the unexpected.
- "Many of my clients are worried about the cost of acquisition, but that's like thinking of the wedding and not the marriage, or buying a Ferrari without having the budget to maintain it."