Coming up with a budget is important when making plans to buy a home, but it’s not enough that you prepare only for the closing costs. You also need to allot a portion of it for other expenses that come with the home-buying transaction.
So, before you start computing a budget to finance your plans, read through these tips before buying a house in New Jersey:
Know the property taxes in your area
As a New Jersey homeowner, you are required to pay property taxes. The average effective property tax rate in New Jersey is 2.42%, which can vary depending on factors such as:
- Your home’s market value,
- The cost of municipal and county services,
- The costs of the local public school system,
- The availability of other revenues that cover the previously mentioned costs, and
- The total value of tax-exempt and taxable properties in your municipality.
Make sure to discuss with your Realtor all the property tax benefits that you can qualify for to cut down on hefty expenses. In New Jersey, veterans, senior citizens, and disabled persons, as well as their surviving spouses, qualify for property tax deductions and exemptions.
Learn more about the state’s property tax benefits and exemptions here.
Factor in homeowners’ association fees
In many exclusive communities and condominium complexes, homeowners are required to pay a monthly or quarterly fee. This covers community amenities and services like garbage collection and snow plowing, as well as the maintenance of shared areas like clubhouses, security gates, swimming pools, lounges, and outdoor spaces.
HOA fees in Central New Jersey can fall anywhere between $200 and $500, depending on the type of property you own, as well as the number and quality of amenities provided by your community or complex. Ask your Realtor for a breakdown of these fees before making an offer or closing on a deal.
Shop for the best insurance rates
Like property taxes, home insurance is another expected expense. However, you can save on this if you compare rates and coverages among several policies before making your purchase. Note that some banks and mortgage companies might also require you to have an insurance policy before they issue a loan.
Ask your Realtor for New Jersey insurance companies they trust or choose from the Department of Banking & Insurance’s list of Homeowners’ Insurers in New Jersey.
Set aside money for emergency repairs
You’ll never know when an unexpected issue will arise in your new home. It could range from a simple pipe leak to your HVAC breaking down in the middle of winter. Whether the issue needs repair or replacement is something best decided on and resolved by a professional. Thus, it’s best to set aside a separate budget for this.
Consider home maintenance costs and utility bills
Home maintenance costs and utility fees can come as a shock, especially for first-time home buyers or those who have upsized to a bigger home. If you bought a house in Central New Jersey, the bigger property sizes here are bound to incur higher fees for maintenance. Utility costs like electric and water bills can also depend on your new home’s size and location.
Enjoy a smooth, stress-free homebuying experience by working with Pagnotta Homes. Schedule a consultation today! Contact us by calling 908.436.7947 or by sending an email to info(at)pagnottahomes(dotted)com. You can also send us a message here.