When you’re working with a real estate agents in you area, things will go much more smoothly if you’ve thought about the budget you will have from month to month. Realtors and vendors we work with will do what they can to accommodate your needs and help you understand the various budgetary items you’re likely to see as a Napa homeowner.
We hate seeing people experience “sticker shock” once they break down their monthly expenses. In effort to prevent that, we’ve compiled some of the most common expenses recent home-buyers generally incur from their new Napa property.
Common Expenses After Buying Napa Property – Tips from your Napa Real Estate Advisors
1 – Property Taxes
Napa County uses a fairly complicated formula for working out property taxes, so, unfortunately, we can’t quickly break it down in a blog. The average is approximately 1.25% of the sales price, but that can vary between properties. However, once you start looking at specific homes, your Napa real estate professional or mortgage professional will be able to give you a pretty good estimate of what your property taxes will be.
2 – Mortgage Insurance
If you are putting less than 20% down on your home, then your lender will require you to carry mortgage insurance. If you are borrowing through the Federal Housing Administration (FHA), you won’t have to get private insurance (PMI), but insurance premiums will be automatically added to your monthly installments. Again, your Napa Realtor or mortgage professional can help you estimate your insurance costs before you purchase.
3 – Homeowners Insurance
Lenders in the area will require you carry homeowners’ insurance before signing off on your loan, so that will have to be obtained before you even complete the sale. The insurance costs will vary greatly depending on the property, the location, and its history.
4 – HOA Fees
Homeowner’s Associations (HOA) and similar entities are common in Napa, so expect to have to pay a little extra if you opt to purchase a home in an HOA. If you have preferences regarding the type of HOA you want (ie: age restricted, condo/PUD, or single family home community), having experienced real estate agents in Napa will help match you with the type of community you are looking for.
5 – Utilities
Finally, don’t forget to factor in your utility bills. Fortunately, it’s not hard to obtain numbers for specific properties, so your Napa real estate agent should be able to give you a very good idea of what your monthly costs will be. They can also give you information on other local utilities and their fees, such as broadband Internet services.
Find the Perfect Napa Home with Connie And Jamie
We are two Napa Valley realtors with a family-focused approach to Napa property. If you’re looking for an investment and a home for your family, contact us to explore your Napa possibilities!