There are several things a buyer (and renter) needs to consider when buying or renting a home related to monthly costs, something that often matters much more than the asking price:
1. Monthly mortgage payment.
2. Monthly real estate taxes
3. Monthly maintenance costs or HOA fees.
Now there is a fourth one that till recently did not count that much and was often barely noticed, Insurance Costs.
In most parts of the US insurance premiums are rising. They are rising much faster than the rate of inflation and in some areas they are rising at a pace whereby owners cannot keep pace with them. There are multiple reasons for this including too many homes in areas prone to nature's extremes including fires, hurricanes, tornadoes and flooding. Add insurance fraud, large litigation claims, higher building and repair costs, financing costs and the list goes on.
No buyer or renter should ignore what their monthly insurance cost will be, and what exactly that will cover. What are the deductibles and do you have sufficient funds to cover that? Is your property fully insured for replacement value and are you updating this annually? Do you live in a very wealthy area where some may self-insure?
This aspect is just another area where professional agents with real-time, outstanding knowledge and resources can assist the consumer.....besides opening that door, of course!
