Buying a home is one of the most exciting milestones in life! Whether you're dreaming of your first home, upsizing for a growing family, or finally investing in your own place after years of renting, there's something undeniably rewarding about owning your space.
But as many soon realize, the mortgage payment is only part of the cost of homeownership. While it's easy to focus on your monthly principal and interest payment, owning a home comes with other financial responsibilities that every buyer should be aware of - and plan for.
That said, don’t let these extra costs discourage you! Owning a home is an investment that often builds wealth, offers stability, and gives you more freedom than renting ever could. At Romney 4 Realty, we believe knowledge is power - and we’re here to help you prepare for a smooth, confident transition into homeownership.
Beyond the Mortgage: What Homeownership Really Costs
1. Property Taxes
Property taxes are paid annually or semi-annually and vary depending on where your home is located. In Prescott and the surrounding areas, taxes are generally lower than the national average, but are still something to budget for.
Tip: Your lender may include property taxes in your monthly mortgage escrow account.
2. Homeowners Insurance
This is a must-have for any mortgage lender, and peace of mind for you! Homeowners insurance typically costs $1,000+ per year, depending on the home’s value, location, and coverage needs.
Tip: Be sure to shop around for the best rates and bundle with auto insurance if possible!
3. HOA Fees (if applicable)
Many homes in Prescott, Prescott Valley, Chino Valley, or Dewey are part of communities with Homeowners Associations (HOAs) that maintain common areas and amenities. Fees can range from $50 to $300+ per month. However, there are plenty of area communities and properties that do not belong to HOAs.
Tip: Ask Romney 4 Realty to help identify homes with or without HOA requirements based on your preferences.
4. Maintenance & Repairs
As a homeowner, you're now in charge of upkeep. While some years may be maintenance-light, others may require a new water heater, roof repair, or appliance replacement. From changing air filters to landscaping or hiring a handyman - those little costs can add up!
Tip: Plan to budget about 1% of your home’s value annually for repairs and maintenance.
5. Utilities & Services
While renters may have shared utilities or even some costs covered, homeowners are on the hook for all of it: electricity, water, trash, internet, and possibly propane or sewer. In the Prescott area, don't forget seasonal cooling and heating costs too!
6. Pest Control, Landscaping & Seasonal Services
If you're moving to a larger home or buying a property with a yard, you may need regular pest control, yard maintenance, or even snow removal depending on location. In the Prescott area, yard care and tree trimming are common routine expenses.
7. Furnishings & Home Improvements
Whether it’s curtains, a patio set, or painting a few rooms to match your taste, there’s often a wave of small improvements that come with a new home.
Good news: You can do it at your own pace, and it could add a long-term value!
Why It’s Still Worth It: Owning vs. Renting
While the upfront and ongoing costs of homeownership may seem daunting, the benefits often outweigh the expenses, especially over time:
- Build equity instead of paying someone else’s mortgage
- Stable monthly payments (vs. rising rent)
- Tax advantages like mortgage interest deductions
- Creative control to renovate, decorate, and truly make it your own
- Potential long-term wealth-building and increased net worth
Renting may offer short-term flexibility, but owning a home gives you roots, financial security, and a place that’s truly yours!
Ready to Own a Piece of Prescott?
At Romney 4 Realty, we help you navigate not just the home search, but the real costs and responsibilities of homeownership. We’ll make sure you're confident, informed, and prepared every step of the way.
📍 Serving Prescott, Prescott Valley, Chino Valley, Dewey-Humboldt & the surrounding communities.
📞 Thinking of buying? Let's chat about your budget and goals, and find the perfect Prescott area home that fits both. Contact us today to get started on your homeownership journey!
