Then again, what isn’t, right? Is anyone finding inexpensive rentals out there, and obtaining leases where the rent never goes up? Didn’t think so. How homeownership benefits you over time as opposed to renting has been written about over and over, including by me, so this is not about that. I’m assuming that you understand the value and importance of owning your own home, whether you already do or aspire to. This is intended to address the many expenses that accompany homeownership.
So, let’s make a list. We’ll start with taxes and insurance as just two of the expenses that have taken a big jump in recent years. Property taxes follow property values, so with home values in Colorado up 40 percent in the last five years, it’s fair to assume property taxes have increased similarly. Data shows that property insurance in Colorado increased over 60 percent in the last five years! Next is electricity. Xcel Energy’s published annual reports show electric bills up over 25 percent over five years. Natural gas has gone up almost 65 per-cent! Water, 23 percent. In fairness, gas and electric bills are up just as much for renters as they are for homeowners, of course. Still, they’re relevant to my point here.
Home maintenance is, of course, an area of significant difference for the homeowner versus the renter. I suggest you sit down for this part. Need a plumber? You’ll pay 15 to 20 percent more than you did five years ago. Electrician? Upwards of 20 percent higher. General handyman prices are up more than 50 percent in this period! Those just speak to labor, though some grace is due for the fact that these folks are themselves now paying 65 percent more for gasoline than they were back then, plus inflation on everything from groceries to clothing to housing, just like you and me. Of course, none of that work gets done without materials, right? Well, be it supply chain, shipping, labor costs or whatever, building materials are 65 percent more expensive than five years ago! Yeah, homeowner-ship is expensive. But I swear on Mother Butler’s grave, it’s still worth it.
Apologies if I’ve bummed you out. Let’s push forward to the positive. Assuming you’re interested in dialing back as many of those expenses as possible, I have good news. Here are my best hacks for getting the most bang for your homeowner buck.
Taxes: If they go up, challenge your tax assessment every two years when the new assessments come out. Your real estate professional can help you with that. And if you’re over 65 years old and have owned your home for 10 years or more, the first $200,000 in value is exempt from property tax with application to the state. Every bit helps.
Insurance: There are many discounts available for using the right building practices and materials on the exterior of your home including roof, siding, landscape, and especially fire mitigation for all of us foothills dwellers. Here are two more property insurance tips you should write down on your to-do list right now. Obtain, if you don’t have it already (and you probably don’t), Sewer Line Insurance. It’s cheap and sewer lines wear out and break over time. The repair can be very expensive. This tip has saved my clients tens of thousands of dollars since I discovered and began recommending it in recent years. The other is, if your home is within a homeowner’s association (HOA), obtain Special Assessment Insurance today! Many HOAs are struggling financially, and special assessments are becoming more and more commonplace. Insurance is cheap compared to losses.
“Get a professional home energy audit.”
Utilities: Get a profession-al home energy audit. DOE will give you a 30 percent rebate on the cost, and Xcel offers 60 per-cent up to $200. It may be as simple as updating thresholds, insulating your water heater and exposed pipes, or adding a bit of insulation in your attic to save you a lot. You’ll find out what sucks the most energy out of your house and how to correct it. They will give you lots of specific tips. You can also find a lot of suggestions with a simple internet search. Oh, and trade your water-guzzling toilets in for new dual-flush toilets and get rebates for that too.
Maintenance: If you can handle an electric drill, a tape measure, and a few other tools, then YouTube is your new best friend! There are DIY videos that can help you fix literally anything! Your next best friend is Nextdoor. If you need a handyman or a con-tractor, just search the keyword, be it plumber, handyman, landscaper, etc., and you will find numerous threads where someone else has already asked for the same, and dozens of your neighbors and community members have shared their experiences with ones they’ve used. Skip the flashy ads.
Home Upgrades: This one begs prudence and outright restraint. Often, we make improvements on a whim that add little or no value or, worse yet, diminish the value of our home should we ever decide to sell it. And yet, if it makes you happy, go for it. Happiness is valuable. Just know there is a cost-benefit fac-tor to your home. Also, be aware that every-thing you do to upgrade your home will illu-minate those things that have not been upgrad-ed, and this is where the prudence comes in. New kitchens beg new fixtures, and new floors. And honestly, you’ll not get the full value out of a new kitchen unless your bath-rooms are up to the same standard. One more thing: Google the term “over-improvement,” then don’t do that.
Another tip. Accomplished real estate professionals are experts on everything home-related, and most of us welcome calls from our clients, friends and prospective clients to offer tips on making the most of owning your home.
