When you’re budgeting for a home, it’s easy to focus on the down payment and monthly mortgage–ensuring you get the lowest mortgage rate is undoubtedly crucial. But there are other costs — often in the thousands — that catch buyers off guard. Here are three of the biggest (and most common) ones, with realistic numbers so you can plan ahead.
1. Keeping the place running
Your mortgage payment is just the start. Property taxes, homeowners insurance, and utilities combined can add hundreds — even thousands — to your monthly costs. Bankrate puts the average annual “hidden” cost of homeownership at about $21,400 nationwide. That includes:
- Taxes & insurance — often $2,000–$6,000/year depending on your home and location
- Utilities — around $4,500/year for electricity, gas, water, and sewer (closer to $6,000–$7,000/year if you include internet, phone, and streaming)
And these aren’t fixed forever — taxes and insurance almost always creep up over time.
2. The never-ending maintenance list
Even new homes need ongoing care. Gutters clog, paint peels, water heaters fail — and none of it is cheap.
- Bankrate puts the average at $8,800/year for maintenance and repairs.
- Fannie Mae suggests planning for 1–3% of your home’s value annually. On a $400K home, that’s $4,000–$12,000 every year.
The challenge? Most new owners don’t set aside money until the first big repair hits — which is usually when the water heater quits in the middle of winter.
3. The “we need this now” shopping spree
You move in thinking you’re set — then realize you need blinds for eight windows, a lawn mower, a couch that fits the space, maybe even a new fridge.
- NAHB surveys show buyers typically spend $3,000–$7,000 in the first year on furniture, appliances, and décor.
- Even if you try to reuse what you have, most people underestimate how much it costs to make a new place livable.
A Quick Cost Breakdown for a $400K Home
| Expense Category | Monthly | Annual | Source |
| Taxes & Insurance | $200–$500 | $2,400–$6,000 | Bankrate |
| Utilities | ~$375 | ~$4,500 | Bankrate / Energy.gov |
| Maintenance & Repairs | $333–$1,000 | $4,000–$12,000 | Freddie Mac / Bankrate |
| Furnishings/Appliances | One-time | $3,000–$7,000+ | NAR |
Bottom line
These costs aren’t meant to scare you off — they’re meant to keep you from being blindsided. Many homeowners say their first surprise wasn’t the mortgage, but the $2,000 HVAC repair or $1,200 trip to Home Depot in month one. If you plan for them from the start, you’ll have a much smoother (and less stressful) first year in your new home.