1 00:00:00,080 --> 00:00:02,760 Speaker 1: Welcome to How the Money. I'm Joel and I am Matt, 2 00:00:02,880 --> 00:00:05,760 Speaker 1: and today we're discussing the actual costs of owning a home. 3 00:00:25,120 --> 00:00:26,680 Speaker 1: So just before we hit record, you and I were 4 00:00:26,680 --> 00:00:29,920 Speaker 1: talking and we were considering naming this episode houses cost 5 00:00:30,000 --> 00:00:33,560 Speaker 1: more than You Think, because that is that's basically what 6 00:00:33,560 --> 00:00:35,400 Speaker 1: we're gonna cover this episode. We did an episode back 7 00:00:35,400 --> 00:00:37,760 Speaker 1: in the day called everything Costs more Than You Think 8 00:00:38,159 --> 00:00:40,159 Speaker 1: It does, and it does, and we wanted people to 9 00:00:40,240 --> 00:00:44,040 Speaker 1: think through just all the additional aspects that go into 10 00:00:44,120 --> 00:00:47,320 Speaker 1: whatever purchase that you're making. There are always these auxiliary 11 00:00:47,520 --> 00:00:50,240 Speaker 1: tertiary you know. They're all of these additional expenses that 12 00:00:50,280 --> 00:00:52,720 Speaker 1: accompany those things that we just don't think about. And 13 00:00:52,800 --> 00:00:54,040 Speaker 1: if we would think of think about them in the 14 00:00:54,040 --> 00:00:57,320 Speaker 1: moment before we make the purchase, if we take just 15 00:00:57,440 --> 00:00:59,360 Speaker 1: a couple of minutes to think about is just thinking 16 00:00:59,440 --> 00:01:02,080 Speaker 1: to add any other costs in my life besides just 17 00:01:02,200 --> 00:01:04,720 Speaker 1: the cost of buying this item. It's really helpful because 18 00:01:04,760 --> 00:01:07,000 Speaker 1: it could make us think twice before actually doing it. Yeah, 19 00:01:07,040 --> 00:01:09,800 Speaker 1: there's a lot of baggage, right that comes with owning 20 00:01:09,800 --> 00:01:12,640 Speaker 1: a home. That being said, we're not hating on homeownership. 21 00:01:12,720 --> 00:01:15,200 Speaker 1: You and I we are all about home ownership. Ownership 22 00:01:15,240 --> 00:01:18,200 Speaker 1: in general is great, but homes are an incredible asset 23 00:01:18,280 --> 00:01:20,520 Speaker 1: that so many people have been able to increase their 24 00:01:20,560 --> 00:01:23,040 Speaker 1: net worth, their wealth, you know, because of their homes. 25 00:01:23,040 --> 00:01:26,360 Speaker 1: And so all let's say we're not completely knocking home ownership, 26 00:01:26,400 --> 00:01:28,000 Speaker 1: but we do want to make sure that folks are 27 00:01:28,040 --> 00:01:30,880 Speaker 1: aware of the additional costs associated with them. Yeah, it's 28 00:01:30,880 --> 00:01:34,120 Speaker 1: just important to go into it with your eyes wide open, exactly. 29 00:01:34,160 --> 00:01:35,840 Speaker 1: All right, let's before we get to that mat though, 30 00:01:35,880 --> 00:01:37,600 Speaker 1: I wanted to mention. I want to ask you if 31 00:01:37,600 --> 00:01:40,319 Speaker 1: I've been frugal or cheap. All right, So basically we 32 00:01:40,360 --> 00:01:45,200 Speaker 1: have our two thousand six Honda Odyssey minivan that's frugal. 33 00:01:45,600 --> 00:01:48,080 Speaker 1: But the problem with it is that it doesn't have 34 00:01:48,120 --> 00:01:50,800 Speaker 1: an auxiliary input. U there's no place for me to 35 00:01:51,240 --> 00:01:53,520 Speaker 1: for the fear tunes. Yeah, plug in my phone and 36 00:01:53,680 --> 00:01:56,639 Speaker 1: play my Future Islands or whatever. Right, And so because 37 00:01:56,680 --> 00:02:00,240 Speaker 1: of that, we've been forced to listen to traditional deo 38 00:02:00,440 --> 00:02:05,080 Speaker 1: and it's dude, there's too many ads and I hate 39 00:02:05,080 --> 00:02:08,200 Speaker 1: traditional radio. Sucks. You can't find great bands like Future 40 00:02:08,200 --> 00:02:10,040 Speaker 1: Islands on the radio. Cannot think of the last time 41 00:02:10,040 --> 00:02:12,200 Speaker 1: I actually listened to the radio. The car that we 42 00:02:12,200 --> 00:02:14,200 Speaker 1: have right now. I mean we've owned for years now. 43 00:02:14,800 --> 00:02:17,160 Speaker 1: I know that I don't have the presets, you know, 44 00:02:17,320 --> 00:02:18,840 Speaker 1: like it's just got it's all. It always has the 45 00:02:18,880 --> 00:02:20,840 Speaker 1: numbers up there where you can like preset you know, 46 00:02:20,880 --> 00:02:23,600 Speaker 1: your your favorite radio stations. Yeah, I have never done 47 00:02:23,600 --> 00:02:25,040 Speaker 1: that because we just don't listen to the radio. You're 48 00:02:25,040 --> 00:02:27,440 Speaker 1: either listening to a podcast you enjoy or two tunes, right, 49 00:02:27,919 --> 00:02:31,640 Speaker 1: and so yeah, for us, it's been annoying. And I'm 50 00:02:31,680 --> 00:02:33,440 Speaker 1: trying to remedy that, right, I want to try to 51 00:02:33,440 --> 00:02:36,560 Speaker 1: get us on the radio. No, that that's not what 52 00:02:36,560 --> 00:02:39,000 Speaker 1: I'm gonna do. Uh So I was like, all right, 53 00:02:39,000 --> 00:02:41,240 Speaker 1: how how can I actually like find a way to 54 00:02:41,280 --> 00:02:43,120 Speaker 1: create an OX input here? I could either get like 55 00:02:43,120 --> 00:02:45,360 Speaker 1: a new head unit installed, right, which is kind of 56 00:02:45,360 --> 00:02:48,480 Speaker 1: a pain. There's like factory things where I can take 57 00:02:48,520 --> 00:02:50,440 Speaker 1: apart my head my current head unit and I can 58 00:02:50,440 --> 00:02:53,120 Speaker 1: plug something in the back, and that just takes some 59 00:02:53,160 --> 00:02:56,000 Speaker 1: time and some effort, and so I haven't been ready 60 00:02:56,040 --> 00:02:58,520 Speaker 1: to commit to that yet. And so I went kind 61 00:02:58,520 --> 00:03:00,560 Speaker 1: of old school and I got an FM transmitter and 62 00:03:00,600 --> 00:03:03,359 Speaker 1: I figured I'll give it a shot. So it's it's 63 00:03:03,360 --> 00:03:05,960 Speaker 1: like twenty bucks to get the STEFIM transmitter, and I 64 00:03:06,000 --> 00:03:08,840 Speaker 1: can listen to my stuff now on my car, but 65 00:03:08,880 --> 00:03:10,679 Speaker 1: it sounds like you're listening to the radio, right, Yeah, 66 00:03:10,680 --> 00:03:13,960 Speaker 1: it's like staticky and stuff in the background. Transmitters suck 67 00:03:14,400 --> 00:03:17,080 Speaker 1: like Okay, well, I'll go ahead and tell you what 68 00:03:17,080 --> 00:03:20,400 Speaker 1: I think. I think cheap, I think. Uh, it just 69 00:03:20,440 --> 00:03:22,160 Speaker 1: reminds me. I mean way back in the day. I 70 00:03:22,160 --> 00:03:24,080 Speaker 1: guess we were in a similar situation. I could have 71 00:03:24,120 --> 00:03:27,280 Speaker 1: gotten an aftermarket stereo put in our old vehicle, but 72 00:03:27,320 --> 00:03:28,600 Speaker 1: we were in a similar boat, right, we did. We 73 00:03:28,600 --> 00:03:30,960 Speaker 1: didn't have the auxiliary input, and I was still rocking 74 00:03:31,000 --> 00:03:35,240 Speaker 1: my old school click wheel iPod photo. It was like 75 00:03:35,240 --> 00:03:38,480 Speaker 1: the first release, the first version of the iPod that 76 00:03:38,520 --> 00:03:41,840 Speaker 1: was in color were awesome. Yeah, it was so thick. 77 00:03:42,000 --> 00:03:44,880 Speaker 1: It was the sixty gig so it was huge, dude. 78 00:03:45,120 --> 00:03:47,360 Speaker 1: But because of that, I had my entire library on there, 79 00:03:47,360 --> 00:03:49,440 Speaker 1: and I would sink podcasts and other things on there, 80 00:03:49,640 --> 00:03:51,160 Speaker 1: and so of course I got one of those dongles 81 00:03:51,160 --> 00:03:53,120 Speaker 1: on there you kind of slap on the top, dude. 82 00:03:53,640 --> 00:03:55,160 Speaker 1: It was always such a pain in the butt to 83 00:03:55,200 --> 00:03:57,200 Speaker 1: actually get it to connect. And then you're driving along 84 00:03:57,200 --> 00:03:59,800 Speaker 1: and somebody else is also broadcasting on that channel, and 85 00:04:00,040 --> 00:04:02,240 Speaker 1: here's some other tunes. I honestly feel like most of 86 00:04:02,240 --> 00:04:05,160 Speaker 1: our listeners probably don't even know what an FM transmitter is. 87 00:04:05,240 --> 00:04:07,160 Speaker 1: They're like, wait, what, like, what did you do? Because 88 00:04:07,160 --> 00:04:10,000 Speaker 1: if you own a car that's from the last decade, 89 00:04:10,040 --> 00:04:12,960 Speaker 1: which I do not, it automatically comes with an auxiliary 90 00:04:13,000 --> 00:04:16,080 Speaker 1: and a Bluetoo connectivity, right, and my car just sudden 91 00:04:16,120 --> 00:04:17,680 Speaker 1: have those things. So all right, I think I need 92 00:04:17,720 --> 00:04:19,320 Speaker 1: to go back to the drawing board on this. You 93 00:04:19,360 --> 00:04:21,160 Speaker 1: can send it back, right, Yeah, I can, I can, 94 00:04:22,440 --> 00:04:23,920 Speaker 1: and uh, and I think what I'm have to do 95 00:04:24,080 --> 00:04:27,440 Speaker 1: is just yeah, by the part that Honda makes and 96 00:04:27,560 --> 00:04:30,440 Speaker 1: open up my dashboard and do the install of my own. 97 00:04:30,480 --> 00:04:31,960 Speaker 1: So you think that's something you can do on your own, 98 00:04:32,040 --> 00:04:34,360 Speaker 1: I think, so okay, Yeah, Well, I guarantee that there's 99 00:04:34,400 --> 00:04:37,320 Speaker 1: a video on YouTube where somebody has done this exact thing, right, 100 00:04:37,360 --> 00:04:39,640 Speaker 1: And so it's not like you have some obscure vehicle, 101 00:04:40,080 --> 00:04:42,560 Speaker 1: you know, you don't have some like Fiat, you know, 102 00:04:42,680 --> 00:04:44,480 Speaker 1: made from the seventies or something like that, where it's 103 00:04:44,480 --> 00:04:47,000 Speaker 1: like that there's there's nobody wanting to put an auxiliary 104 00:04:47,000 --> 00:04:50,160 Speaker 1: input on a Fiat from nine. Yeah, maybe there is. 105 00:04:50,200 --> 00:04:52,080 Speaker 1: I don't know, but I guarantee there's someone who's done 106 00:04:52,080 --> 00:04:54,640 Speaker 1: that on a Honda Odyssey that's about the age of years. Man. 107 00:04:55,080 --> 00:04:57,400 Speaker 1: I bet you're right. So I'm gonna scour YouTube find 108 00:04:57,400 --> 00:04:58,960 Speaker 1: the right part. I'll report back and let you know 109 00:04:59,000 --> 00:05:01,160 Speaker 1: how the instat goes. So and to find an hour 110 00:05:01,240 --> 00:05:02,919 Speaker 1: and a half or two hours to like commit to 111 00:05:03,080 --> 00:05:05,200 Speaker 1: doing the job. Okay, So the joke is in our house. 112 00:05:05,200 --> 00:05:06,560 Speaker 1: When I tell Kate, when she's like, all right, how 113 00:05:06,560 --> 00:05:09,000 Speaker 1: long is this project gonna take? I immediately have like 114 00:05:09,040 --> 00:05:11,520 Speaker 1: a knee jerk amount of time, and then we multiply 115 00:05:11,640 --> 00:05:15,039 Speaker 1: by three because in reality, I'm like, oh, yeah, this 116 00:05:15,080 --> 00:05:16,800 Speaker 1: is just a thirty minute project. That's how long I 117 00:05:16,839 --> 00:05:18,320 Speaker 1: think it's gonna take. But in reality it's more like 118 00:05:18,320 --> 00:05:20,440 Speaker 1: an hour. And Aga always takes always, and when he 119 00:05:20,480 --> 00:05:22,040 Speaker 1: does take what I think it's gonna do, I'm like 120 00:05:22,680 --> 00:05:26,120 Speaker 1: so thankful to thank I believe, but that really happens. Well, man, 121 00:05:26,120 --> 00:05:28,200 Speaker 1: I'm bummed to hear that the FM transmitter didn't work out, 122 00:05:28,200 --> 00:05:30,039 Speaker 1: but it's worth revisiting, you know. It's like maybe they 123 00:05:30,080 --> 00:05:32,599 Speaker 1: got better, like you know, like they're the technology would 124 00:05:32,600 --> 00:05:33,920 Speaker 1: have would have gotten better, and it's like, oh, No, 125 00:05:34,000 --> 00:05:37,000 Speaker 1: it's like Cede quality. Not quite though I was hoping. 126 00:05:37,000 --> 00:05:38,640 Speaker 1: I was hoping, and based on the reviews, I was 127 00:05:38,680 --> 00:05:41,080 Speaker 1: like thinking that maybe but not quite didn't live up 128 00:05:41,120 --> 00:05:43,360 Speaker 1: to the hype. Uh and not that there's much hype 129 00:05:43,360 --> 00:05:45,640 Speaker 1: surrounding get it, transmitter spy. All right, let's mention the 130 00:05:45,640 --> 00:05:47,479 Speaker 1: beer we're having on the show today. This one's called 131 00:05:47,520 --> 00:05:50,320 Speaker 1: from and Derby Brewing. It's called Derby Juice, I p ak. 132 00:05:50,360 --> 00:05:52,840 Speaker 1: Thanks to my little sister Sally for donating this beer 133 00:05:53,120 --> 00:05:54,880 Speaker 1: to you and I to have on the show today. 134 00:05:55,000 --> 00:05:58,440 Speaker 1: Thanks Aunt Sal Sal that's how she's known. That's what 135 00:05:58,440 --> 00:06:01,120 Speaker 1: our girls call her. Yeah, all right, let's move on 136 00:06:01,160 --> 00:06:02,839 Speaker 1: to the topic in hand, though, Matt. We're talking about 137 00:06:02,880 --> 00:06:05,799 Speaker 1: the actual cost of owning a home. I remember buying 138 00:06:05,800 --> 00:06:08,680 Speaker 1: my first home, and I was so naive when I 139 00:06:08,720 --> 00:06:10,800 Speaker 1: did it. I felt like I knew a little bit. 140 00:06:10,800 --> 00:06:14,600 Speaker 1: I did some research, but I still honestly was lacking 141 00:06:14,839 --> 00:06:17,760 Speaker 1: so much information in order to make a smart purchase. 142 00:06:18,040 --> 00:06:19,960 Speaker 1: I was careful to buy a home that cost less 143 00:06:20,040 --> 00:06:21,520 Speaker 1: than what the bank was willing to lend me, so 144 00:06:21,560 --> 00:06:23,280 Speaker 1: that was a good start, but I did a really 145 00:06:23,279 --> 00:06:25,760 Speaker 1: poor job at thinking through the other expenses that I 146 00:06:25,800 --> 00:06:28,560 Speaker 1: wouldn't incur now that I was a homeowner. Back then, 147 00:06:28,680 --> 00:06:30,800 Speaker 1: I was more cheap than frugal. I guess I still 148 00:06:30,839 --> 00:06:33,680 Speaker 1: am sometimes, as we just found out. But uh yeah, 149 00:06:33,760 --> 00:06:35,240 Speaker 1: So I was able to get some of the furnishings 150 00:06:35,240 --> 00:06:37,560 Speaker 1: in the kitchen necessities for free or close to it, 151 00:06:37,839 --> 00:06:41,400 Speaker 1: donations from friends and you know, free websites and stuff 152 00:06:41,440 --> 00:06:44,039 Speaker 1: like that. It helps a lot. But there are other 153 00:06:44,080 --> 00:06:46,320 Speaker 1: costs of homeownership that I was also learning about on 154 00:06:46,360 --> 00:06:48,760 Speaker 1: the fly, and I just wasn't prepared for them. So 155 00:06:48,880 --> 00:06:50,839 Speaker 1: this episode is for all of you out there who 156 00:06:50,880 --> 00:06:53,039 Speaker 1: have the goal of purchasing a home, which is an 157 00:06:53,040 --> 00:06:55,920 Speaker 1: awesome goal, so that you have a better understanding of 158 00:06:55,960 --> 00:06:58,800 Speaker 1: the overall costs that are involved with that purchase. Yeah, 159 00:06:58,839 --> 00:07:01,000 Speaker 1: it's it's so important to know what it is that 160 00:07:01,000 --> 00:07:03,160 Speaker 1: you're getting into ahead of time. You know, many first 161 00:07:03,200 --> 00:07:05,599 Speaker 1: time home buyers, in particular, I think that they're just 162 00:07:05,880 --> 00:07:08,800 Speaker 1: basically swapping out their rent for a mortgage, you know, 163 00:07:08,839 --> 00:07:10,320 Speaker 1: and they're like, all of a sudden, I'm not throwing 164 00:07:10,320 --> 00:07:12,200 Speaker 1: away my rent instead, now this is building up my 165 00:07:12,240 --> 00:07:14,320 Speaker 1: net worth. And they think that as long as the 166 00:07:14,400 --> 00:07:17,600 Speaker 1: numbers are fairly equal, then they won't feel as much 167 00:07:17,640 --> 00:07:20,200 Speaker 1: of an impact. But of course, you know, many know 168 00:07:20,280 --> 00:07:23,880 Speaker 1: that you'll now be responsible for repairs and upkeep, et cetera. 169 00:07:24,160 --> 00:07:25,920 Speaker 1: Of course they don't assume that their current landlord is 170 00:07:25,920 --> 00:07:27,880 Speaker 1: gonna come over and fix a leaky faucet, but they 171 00:07:27,920 --> 00:07:31,480 Speaker 1: still don't factor in the myriad costs, and you know, 172 00:07:31,520 --> 00:07:34,119 Speaker 1: they quickly will find out that their housing budget wasn't 173 00:07:34,200 --> 00:07:36,760 Speaker 1: quite up to snuff. And so we're gonna address that today. 174 00:07:36,760 --> 00:07:39,760 Speaker 1: We're gonna talk through all the different ways where essentially 175 00:07:39,800 --> 00:07:41,840 Speaker 1: we're getting kind of like nickeled and dimed when it 176 00:07:41,840 --> 00:07:44,320 Speaker 1: comes to owning a home. Yeah, and again, it's important 177 00:07:44,360 --> 00:07:46,120 Speaker 1: to go into it with eyes open. And part of 178 00:07:46,160 --> 00:07:47,600 Speaker 1: the reason we want to talk about this today was 179 00:07:47,640 --> 00:07:49,240 Speaker 1: that a lot of people are buying homes right now, 180 00:07:49,480 --> 00:07:51,440 Speaker 1: like the housing market continues to be a bright spot 181 00:07:51,440 --> 00:07:54,040 Speaker 1: for the economy as a whole, even as in inventory 182 00:07:54,080 --> 00:07:56,760 Speaker 1: remains kind of low. There are a lot of people 183 00:07:56,800 --> 00:07:59,520 Speaker 1: out there shopping and just a handful of years ago, Matt, 184 00:07:59,560 --> 00:08:01,400 Speaker 1: I feel like all the finance writers made it sound 185 00:08:01,400 --> 00:08:03,640 Speaker 1: like millennials would never be interested in owning a home, 186 00:08:03,880 --> 00:08:06,480 Speaker 1: like this is the generation that's always gonna rent, and 187 00:08:06,640 --> 00:08:08,480 Speaker 1: that turned out not to be true. Our generation is 188 00:08:08,520 --> 00:08:11,119 Speaker 1: now buying homes in big numbers these days, and in fact, 189 00:08:11,360 --> 00:08:16,040 Speaker 1: millennials purchased almost of the homes available for purchase that 190 00:08:16,080 --> 00:08:19,600 Speaker 1: were for sale in twenty nineteen. But no matter your age, 191 00:08:19,640 --> 00:08:22,680 Speaker 1: wherever you're at on the home buying spectrum, whether you're 192 00:08:22,680 --> 00:08:25,280 Speaker 1: saving up hoping to buy your first home soon, or 193 00:08:25,320 --> 00:08:27,559 Speaker 1: whether you've been renting for a while and you're thinking 194 00:08:27,600 --> 00:08:29,600 Speaker 1: you'd like to own a home again, there's a lot 195 00:08:29,640 --> 00:08:31,760 Speaker 1: of stuff you're gonna need to consider, and also if 196 00:08:31,760 --> 00:08:34,040 Speaker 1: you're considering purchasing a home, we wanted to get this 197 00:08:34,040 --> 00:08:37,640 Speaker 1: episode out there sooner this year than later because when 198 00:08:37,760 --> 00:08:39,400 Speaker 1: it is that you purchase a home, you can have 199 00:08:39,440 --> 00:08:42,080 Speaker 1: a pretty significant effect on the overall price that you 200 00:08:42,120 --> 00:08:45,480 Speaker 1: pay for that house. Depending on the specific market you're 201 00:08:45,520 --> 00:08:48,640 Speaker 1: looking to buy in, it can vary, but typically April, 202 00:08:48,720 --> 00:08:51,400 Speaker 1: May and June are going to be the most profitable 203 00:08:51,480 --> 00:08:55,480 Speaker 1: months for sellers. Homes are listed for less time on 204 00:08:55,520 --> 00:08:58,880 Speaker 1: the market, and sellers received higher premiums than other times 205 00:08:58,880 --> 00:09:01,440 Speaker 1: of the year. So this is me that as a buyer, 206 00:09:01,760 --> 00:09:05,160 Speaker 1: you likely want to avoid these months. You want to 207 00:09:05,200 --> 00:09:07,480 Speaker 1: look to the other months of the year in order 208 00:09:07,480 --> 00:09:09,480 Speaker 1: to score a deal. So the sooner the better, and 209 00:09:09,520 --> 00:09:11,160 Speaker 1: that's part of why I wanted to get this episode 210 00:09:11,160 --> 00:09:14,439 Speaker 1: out there here at the end of February. Oftentimes November 211 00:09:14,600 --> 00:09:17,440 Speaker 1: through January are great times to buy home. So yeah, 212 00:09:17,520 --> 00:09:20,040 Speaker 1: especially if you're in the process of saving up, you 213 00:09:20,200 --> 00:09:22,960 Speaker 1: probably don't want to hit the spring home buying season 214 00:09:23,000 --> 00:09:24,760 Speaker 1: when everyone else says you might. What are we looking 215 00:09:24,800 --> 00:09:27,200 Speaker 1: at the off peak times? And of course, to total 216 00:09:27,240 --> 00:09:30,240 Speaker 1: costs attributed to housing continue to easily be the largest 217 00:09:30,240 --> 00:09:34,080 Speaker 1: expense that we as Americans have in our budget. According 218 00:09:34,080 --> 00:09:37,040 Speaker 1: to the twenty nineteen Expenditure Survey from the Bureau of 219 00:09:37,160 --> 00:09:40,000 Speaker 1: Labor Statistics, the average house is a whopping thirty three 220 00:09:40,400 --> 00:09:42,800 Speaker 1: of what we spend our money on. That's not ideal. 221 00:09:43,080 --> 00:09:44,920 Speaker 1: In Matt and Ey's opinion, it should be. We think 222 00:09:44,960 --> 00:09:47,000 Speaker 1: it's best to cut down the cost of housing in 223 00:09:47,040 --> 00:09:49,560 Speaker 1: your life whenever you can. But when we're pouring so 224 00:09:49,640 --> 00:09:52,440 Speaker 1: much of our income into one specific category, let's make 225 00:09:52,480 --> 00:09:54,720 Speaker 1: sure that we know where all that money is going 226 00:09:54,760 --> 00:09:57,120 Speaker 1: and how we can take steps now to prepare for 227 00:09:57,320 --> 00:09:59,400 Speaker 1: those expenses. All right, so let's go ahead and dive 228 00:09:59,440 --> 00:10:01,760 Speaker 1: into it. The first sort of category of expenses that 229 00:10:01,800 --> 00:10:03,760 Speaker 1: we wanted to address when it comes to home ownership 230 00:10:03,920 --> 00:10:06,440 Speaker 1: is when it comes to purchasing that home. Right, let's 231 00:10:06,440 --> 00:10:09,320 Speaker 1: talk about the costs associated with buying a home. Uh. 232 00:10:09,320 --> 00:10:10,640 Speaker 1: And first of all, you know you want to make 233 00:10:10,679 --> 00:10:14,320 Speaker 1: sure that your overall finances are in solid shape. An 234 00:10:14,320 --> 00:10:17,000 Speaker 1: emergency fund is going to come in major league handy 235 00:10:17,120 --> 00:10:19,120 Speaker 1: for some of the costs that we're about to detail 236 00:10:19,240 --> 00:10:21,000 Speaker 1: later in this episode. But you know, you also don't 237 00:10:21,000 --> 00:10:23,559 Speaker 1: want to have loads of other debt obligations that you 238 00:10:23,600 --> 00:10:25,640 Speaker 1: can barely keep up with when you are looking to 239 00:10:25,679 --> 00:10:27,640 Speaker 1: purchase a home. If you were to do that, you 240 00:10:27,640 --> 00:10:30,520 Speaker 1: wouldn't put yourself in a very strong financial position. Uh. 241 00:10:30,559 --> 00:10:33,120 Speaker 1: And as you start saving up for that home, you 242 00:10:33,120 --> 00:10:34,560 Speaker 1: you know you also might need to make some some 243 00:10:34,640 --> 00:10:38,439 Speaker 1: real sacrifices in order to become a homeowner. If it's 244 00:10:38,440 --> 00:10:40,599 Speaker 1: truly a high priority for you, you might need to 245 00:10:40,720 --> 00:10:44,000 Speaker 1: downgrade other priorities in your life, Like maybe that's gonna 246 00:10:44,040 --> 00:10:48,080 Speaker 1: involve trimming your beer budget, maybe scaling back on your 247 00:10:48,080 --> 00:10:50,000 Speaker 1: travel plans, which has been a lot easier for folks 248 00:10:50,160 --> 00:10:52,120 Speaker 1: in the past year. Uh. And so this comes down 249 00:10:52,160 --> 00:10:54,920 Speaker 1: to personal priorities. But most people have to make some 250 00:10:54,960 --> 00:10:58,480 Speaker 1: budget changes in order to afford that new place. Yeah, 251 00:10:58,520 --> 00:11:00,400 Speaker 1: you also need to make sure that you have solid 252 00:11:00,520 --> 00:11:04,480 Speaker 1: down payment in hand. That involves many months, often years, 253 00:11:04,520 --> 00:11:06,960 Speaker 1: of saving up in order to have that down payment 254 00:11:07,040 --> 00:11:10,560 Speaker 1: in your hands. Ideally, Matt and I suggest so that 255 00:11:10,559 --> 00:11:13,520 Speaker 1: you can avoid paying private mortgage insurance p m I. 256 00:11:13,720 --> 00:11:16,440 Speaker 1: But there are some cases in special mortgage products that 257 00:11:16,520 --> 00:11:18,280 Speaker 1: you can use where it might make sense to purchase 258 00:11:18,320 --> 00:11:20,360 Speaker 1: when you haven't been able to save up quite that much. 259 00:11:20,559 --> 00:11:22,240 Speaker 1: We won't get into that in this episode. We've talked 260 00:11:22,280 --> 00:11:24,959 Speaker 1: about it before. But the more you can put down, 261 00:11:25,040 --> 00:11:27,439 Speaker 1: the better off you're gonna be. Not only can you 262 00:11:27,480 --> 00:11:30,559 Speaker 1: avoid p m I every single month, but your monthly 263 00:11:30,559 --> 00:11:32,720 Speaker 1: payment is going to be lower two and you'll also 264 00:11:32,800 --> 00:11:36,160 Speaker 1: score the lowest interest rate possible when you're putting down 265 00:11:36,160 --> 00:11:39,200 Speaker 1: at least. So there's so many reasons that that's a 266 00:11:39,200 --> 00:11:41,640 Speaker 1: good idea, But that's a huge thing that you need 267 00:11:41,679 --> 00:11:44,400 Speaker 1: to be saving for when you're talking about buying a home. Yeah, 268 00:11:44,440 --> 00:11:47,679 Speaker 1: and once you have that saved up, closing costs those 269 00:11:47,720 --> 00:11:50,440 Speaker 1: are what need to think about next. There's a whole 270 00:11:50,480 --> 00:11:53,240 Speaker 1: host of fees and costs associated with buying at home, 271 00:11:53,280 --> 00:11:56,320 Speaker 1: but typically they're gonna run anywhere between two and five. 272 00:11:57,240 --> 00:12:00,200 Speaker 1: So that means you're looking at between fifty dollars in 273 00:12:00,320 --> 00:12:03,920 Speaker 1: fourteen thousand dollars on closing costs. That's for the cost 274 00:12:04,040 --> 00:12:06,840 Speaker 1: of the median home that's sold in America last year. 275 00:12:06,920 --> 00:12:08,400 Speaker 1: So you're saying it's really cheap to buy a home, 276 00:12:08,640 --> 00:12:12,200 Speaker 1: totally cheap, fourteen thousand dollars, super cheap, right, No, So yeah, 277 00:12:12,400 --> 00:12:14,760 Speaker 1: those are the kind of things that I think a 278 00:12:14,760 --> 00:12:17,040 Speaker 1: lot of first time homebuyers especially are maybe a little 279 00:12:17,080 --> 00:12:19,679 Speaker 1: blindsided by. They They're like, I've saved up five percent 280 00:12:20,080 --> 00:12:22,640 Speaker 1: as a down payment, and then they don't have the 281 00:12:22,640 --> 00:12:25,160 Speaker 1: other cash on hand to pay for the closing costs, 282 00:12:25,160 --> 00:12:27,080 Speaker 1: so they have to roll them into the loan or 283 00:12:27,320 --> 00:12:30,280 Speaker 1: they opt instead to put down less of a down 284 00:12:30,280 --> 00:12:32,320 Speaker 1: payment in order to put money towards those closing costs, 285 00:12:32,360 --> 00:12:34,680 Speaker 1: and that just puts you in a weaker position when 286 00:12:34,679 --> 00:12:38,320 Speaker 1: it comes to your personal finances. And since these closing 287 00:12:38,360 --> 00:12:41,640 Speaker 1: costs are one time costs, ideally you'll want to minimize 288 00:12:41,800 --> 00:12:43,640 Speaker 1: how often you pay these costs, and you do that 289 00:12:43,720 --> 00:12:46,320 Speaker 1: by purchasing a home that you plan on owning for 290 00:12:46,360 --> 00:12:49,079 Speaker 1: a minimum of seven years. The longer the better, really, 291 00:12:49,400 --> 00:12:52,559 Speaker 1: because the transaction costs of real estate are just so high. 292 00:12:52,880 --> 00:12:55,040 Speaker 1: And it's okay too. If you don't plan on living 293 00:12:55,120 --> 00:12:57,240 Speaker 1: in that home the entire time you own it, you 294 00:12:57,280 --> 00:12:59,320 Speaker 1: might decide to move into another home, and right, not 295 00:12:59,400 --> 00:13:02,199 Speaker 1: the one you've been living in. But the ownership timeline 296 00:13:02,240 --> 00:13:04,480 Speaker 1: is crucial in order to make sure that you're not 297 00:13:04,600 --> 00:13:07,640 Speaker 1: getting hosed on a home purchase. Yeah, that's right. And 298 00:13:07,679 --> 00:13:09,520 Speaker 1: so these are kind of like these one time upfront 299 00:13:09,559 --> 00:13:12,920 Speaker 1: costs associated with becoming a homeowner. But after that there 300 00:13:12,960 --> 00:13:15,200 Speaker 1: are additional costs, and we're gonna get to all of those, 301 00:13:15,240 --> 00:13:18,480 Speaker 1: including maintenance costs and what it costs to sell your home. 302 00:13:18,559 --> 00:13:21,120 Speaker 1: That's right, it costs you money to sell your home. 303 00:13:21,880 --> 00:13:23,520 Speaker 1: We're gonna get to all of that right after the break. 304 00:13:32,880 --> 00:13:34,680 Speaker 1: All right, we're back to the break. And again I 305 00:13:34,679 --> 00:13:37,040 Speaker 1: want to reiterate, Matt that we are not trying to 306 00:13:37,120 --> 00:13:40,280 Speaker 1: dissuade people from home ownership. We just want people to 307 00:13:40,320 --> 00:13:43,480 Speaker 1: know how much it actually costs before you decide to 308 00:13:43,559 --> 00:13:46,280 Speaker 1: jump in. There's a strong case to be made that 309 00:13:46,440 --> 00:13:49,640 Speaker 1: running a home is just as smart as buying a home, 310 00:13:49,720 --> 00:13:52,520 Speaker 1: and maybe smarter um. But I think also there are 311 00:13:52,559 --> 00:13:54,080 Speaker 1: a ton of reasons to own a home, and I 312 00:13:54,160 --> 00:13:57,319 Speaker 1: understand that we both own our own homes. We love it. 313 00:13:57,360 --> 00:13:58,880 Speaker 1: We own other homes too that we run out, so 314 00:13:59,240 --> 00:14:02,679 Speaker 1: we're not against huge fans of homeownership, right, But it's like, 315 00:14:02,840 --> 00:14:04,800 Speaker 1: I don't know, I see home ownership almost as bad 316 00:14:04,840 --> 00:14:06,960 Speaker 1: as like, no, it's not quite as it's not quite 317 00:14:06,960 --> 00:14:09,480 Speaker 1: as bad, but almost like buying a boat, where it's 318 00:14:09,520 --> 00:14:11,320 Speaker 1: just like what do you what are you about to do? 319 00:14:11,400 --> 00:14:13,160 Speaker 1: Like have you thought through this? Like have you thought 320 00:14:13,200 --> 00:14:15,800 Speaker 1: about the additional costs, the amount of time that it's 321 00:14:15,800 --> 00:14:18,160 Speaker 1: going to take out of your weekends? I mean, actually 322 00:14:18,160 --> 00:14:19,840 Speaker 1: owning a boat is a lot like I would not 323 00:14:19,920 --> 00:14:23,160 Speaker 1: put it on boat level, though it's not that bad, 324 00:14:23,160 --> 00:14:25,280 Speaker 1: owning a boats like the worst thing you can do. 325 00:14:25,400 --> 00:14:27,160 Speaker 1: It's it's really is one of the worst things. It 326 00:14:27,200 --> 00:14:29,320 Speaker 1: truly has to be like your passion. It's got to 327 00:14:29,320 --> 00:14:31,200 Speaker 1: be your craft beer equivalent. If you're going to own 328 00:14:31,240 --> 00:14:32,960 Speaker 1: a boat, but you can't casually go into it, and 329 00:14:33,200 --> 00:14:35,400 Speaker 1: in the same way you can't just casually purchase a home. 330 00:14:35,720 --> 00:14:37,320 Speaker 1: It is something that you could easily get into, it's 331 00:14:37,360 --> 00:14:39,560 Speaker 1: something you could rush into, but it's not something that 332 00:14:39,600 --> 00:14:41,520 Speaker 1: you can easily get out of. And we're actually gonna 333 00:14:41,520 --> 00:14:43,320 Speaker 1: get to that later in the show. But first, man, 334 00:14:43,400 --> 00:14:45,840 Speaker 1: let's dive into these recurring costs. Yeah, let's do that 335 00:14:45,880 --> 00:14:48,800 Speaker 1: on once you've purchased a home, there are ongoing costs 336 00:14:48,880 --> 00:14:51,520 Speaker 1: I think can be really easy to overlook. You're gonna 337 00:14:51,600 --> 00:14:54,400 Speaker 1: end up paying them, but you might bust your budget 338 00:14:54,640 --> 00:14:56,680 Speaker 1: paying them if you haven't factored them in ahead of time, 339 00:14:57,040 --> 00:14:59,520 Speaker 1: and especially if you're a newer homeowner. There are lots 340 00:14:59,520 --> 00:15:01,880 Speaker 1: of aspect of home ownership that you may not even 341 00:15:01,960 --> 00:15:05,440 Speaker 1: realize are necessary. Some are required by law, you've gotta 342 00:15:05,480 --> 00:15:07,320 Speaker 1: have an insurance on that home and when when you 343 00:15:07,360 --> 00:15:10,280 Speaker 1: have a mortgage. But other basic tasks like cleaning at 344 00:15:10,280 --> 00:15:13,360 Speaker 1: your gutters might seem more optional, but they're still important 345 00:15:13,560 --> 00:15:15,680 Speaker 1: in preserving and growing the value of your home. If 346 00:15:15,680 --> 00:15:17,880 Speaker 1: you don't clean the gutters, you're gonna have other issues. 347 00:15:18,080 --> 00:15:20,640 Speaker 1: Water build up, which leads to rot, which leads to termites, 348 00:15:21,080 --> 00:15:23,160 Speaker 1: lots of issues. And you know, not cleaning the gutters 349 00:15:23,240 --> 00:15:25,840 Speaker 1: leads to um more expense when it comes to maintaining 350 00:15:25,840 --> 00:15:28,440 Speaker 1: your home, and maintaining your home in general just isn't cheap. 351 00:15:28,480 --> 00:15:30,320 Speaker 1: So let's get down to brass tacks. The age of 352 00:15:30,360 --> 00:15:32,720 Speaker 1: your property, the condition it's in, when you purchase it, 353 00:15:32,880 --> 00:15:35,560 Speaker 1: and the location where you're buying your home will have 354 00:15:35,840 --> 00:15:38,400 Speaker 1: a massive impact on the specific costs you'll be facing. 355 00:15:38,600 --> 00:15:41,920 Speaker 1: But let's talk about those specific recurring costs mat. Yeah, 356 00:15:42,000 --> 00:15:44,640 Speaker 1: and so you know, as we talk about maintaining a home, like, 357 00:15:44,680 --> 00:15:46,760 Speaker 1: there's a good rule of thumb. It's it's a rule 358 00:15:46,760 --> 00:15:49,240 Speaker 1: of thumb that we recommend for folks, which is that 359 00:15:49,320 --> 00:15:52,440 Speaker 1: one percent of the cost of the home annually is 360 00:15:52,560 --> 00:15:55,400 Speaker 1: one that you can use to estimate the costs that 361 00:15:55,480 --> 00:15:58,000 Speaker 1: are going to be associated with maintaining your house. Right. So, 362 00:15:58,080 --> 00:15:59,520 Speaker 1: let's say you bought a home that was maybe a 363 00:15:59,560 --> 00:16:01,840 Speaker 1: little bit hier than the median household cost last year. 364 00:16:02,000 --> 00:16:04,400 Speaker 1: Let's see about a home that costs three hundred thousand dollars, 365 00:16:04,560 --> 00:16:07,040 Speaker 1: you should be expecting to set aside around three thousand 366 00:16:07,040 --> 00:16:10,520 Speaker 1: dollars for just ongoing maintenance costs. Uh. And so that's 367 00:16:10,560 --> 00:16:12,600 Speaker 1: kind of one rule of thumb. Another is if you 368 00:16:12,680 --> 00:16:16,400 Speaker 1: set aside one dollar per square foot every year. Right, 369 00:16:16,440 --> 00:16:18,880 Speaker 1: So again, if you live in a six square foot home, 370 00:16:19,280 --> 00:16:21,640 Speaker 1: maybe you can estimate to to set aside sixteen hundred 371 00:16:21,640 --> 00:16:23,600 Speaker 1: dollars every year in order to keep your home in 372 00:16:23,680 --> 00:16:25,680 Speaker 1: top top shape. And so you know, when we say 373 00:16:25,720 --> 00:16:28,200 Speaker 1: general maintenance costs to you know, we're talking about stuff 374 00:16:28,520 --> 00:16:31,400 Speaker 1: uh as small as a leaky faucet uh and h 375 00:16:31,480 --> 00:16:34,240 Speaker 1: fact filters, all the way up to even bigger expenses 376 00:16:34,280 --> 00:16:37,640 Speaker 1: that you might face like roof repair or replacement predictable 377 00:16:37,640 --> 00:16:41,200 Speaker 1: things um or even like a new HVAC system altogether. Right, So, 378 00:16:41,240 --> 00:16:42,880 Speaker 1: of course these are rules of thumb, and they're not 379 00:16:42,920 --> 00:16:44,880 Speaker 1: always gonna apply. There's gonna be some years where the 380 00:16:44,920 --> 00:16:47,000 Speaker 1: expenses are a lot lower. There's gonna be some years, 381 00:16:47,200 --> 00:16:49,080 Speaker 1: you know, like maybe if there's a hurricane or something 382 00:16:49,120 --> 00:16:51,840 Speaker 1: like that and your roof is already getting old, a 383 00:16:51,840 --> 00:16:54,160 Speaker 1: tree comes down, which was also getting old, Like you 384 00:16:54,200 --> 00:16:56,920 Speaker 1: might have a really expensive year when it comes to 385 00:16:56,960 --> 00:16:59,760 Speaker 1: your house. H. It's gonna fluctuate uh and so kind 386 00:16:59,760 --> 00:17:01,240 Speaker 1: of ends on the home that you pick, as well 387 00:17:01,240 --> 00:17:03,040 Speaker 1: as a little bit of luck as well. Yeah. Then 388 00:17:03,160 --> 00:17:07,160 Speaker 1: another recurrent costs you're gonna deal with every month is utilities, 389 00:17:07,200 --> 00:17:08,560 Speaker 1: and that's a cost that you need to budget for. 390 00:17:08,960 --> 00:17:11,119 Speaker 1: Don't assume either that it's going to be roughly the 391 00:17:11,160 --> 00:17:13,119 Speaker 1: same as what you spent when you were renting a place, 392 00:17:13,440 --> 00:17:15,960 Speaker 1: depending on the size, age and weather proofing. That's been done, 393 00:17:16,000 --> 00:17:19,080 Speaker 1: you might find yourself with far more expensive monthly utility 394 00:17:19,119 --> 00:17:21,960 Speaker 1: bills than what you had at the last place you lived. 395 00:17:22,200 --> 00:17:24,800 Speaker 1: Hopefully that's not the case, but move dot org has 396 00:17:24,800 --> 00:17:27,880 Speaker 1: a great resource where they've calculated the average costs of 397 00:17:27,920 --> 00:17:30,680 Speaker 1: all the different utilities and they've ranked each state. Will 398 00:17:30,720 --> 00:17:32,520 Speaker 1: link to that in our show notes. But especially if 399 00:17:32,520 --> 00:17:35,199 Speaker 1: you're moving into a place that's bigger, and especially if 400 00:17:35,200 --> 00:17:38,600 Speaker 1: you're moving into a place that's older, you're you're likely 401 00:17:38,640 --> 00:17:42,000 Speaker 1: going to see your utility bills go up from the 402 00:17:42,119 --> 00:17:44,480 Speaker 1: levels you were used to seeing them at, and especially 403 00:17:44,520 --> 00:17:46,080 Speaker 1: if you used to live in an apartment where all 404 00:17:46,080 --> 00:17:48,680 Speaker 1: of your utilities, including internet, were included, because that was 405 00:17:48,760 --> 00:17:50,840 Speaker 1: Kate and I before we purchased our first home, we 406 00:17:50,880 --> 00:17:54,720 Speaker 1: realized how spoiled we were, and honestly, it's it's kind 407 00:17:54,720 --> 00:17:57,119 Speaker 1: of shameful, but how wasteful we were. We moved in 408 00:17:57,200 --> 00:17:58,800 Speaker 1: or it's like, oh my gosh, it's so hot, and 409 00:17:58,800 --> 00:18:00,840 Speaker 1: then we look at our hility bill, we're like, oh 410 00:18:00,840 --> 00:18:03,840 Speaker 1: my gosh, electricity costs so much money, and so it 411 00:18:03,840 --> 00:18:06,080 Speaker 1: almost seems like a given right people are expecting to 412 00:18:06,080 --> 00:18:08,720 Speaker 1: pay utilities. In our case, man, we we literally weren't 413 00:18:09,320 --> 00:18:10,960 Speaker 1: I mean we knew that, like, oh, yeah, there will 414 00:18:11,000 --> 00:18:13,320 Speaker 1: be some increased costs because of utilities, but yeah, it 415 00:18:13,680 --> 00:18:15,600 Speaker 1: really did come as a shock to us. But in 416 00:18:15,640 --> 00:18:17,040 Speaker 1: a way, man, all of these sort of categories that 417 00:18:17,080 --> 00:18:19,679 Speaker 1: were mentioning right now, like they're somewhat optional, right, Like, 418 00:18:19,680 --> 00:18:23,320 Speaker 1: we have control over those expenses. Um, And this one 419 00:18:23,400 --> 00:18:25,240 Speaker 1: in particular is one that you probably have the most 420 00:18:25,240 --> 00:18:28,000 Speaker 1: control over. You certainly have control over your utilities, but 421 00:18:28,040 --> 00:18:30,320 Speaker 1: when it comes to what you put inside of your house, 422 00:18:30,359 --> 00:18:33,160 Speaker 1: your furnishing is your furniture. You know what what poster 423 00:18:33,280 --> 00:18:36,399 Speaker 1: you decided to hang up on the water But you know, 424 00:18:36,480 --> 00:18:38,560 Speaker 1: this is something to keep in mind though too, because 425 00:18:38,720 --> 00:18:41,520 Speaker 1: like especially too if you're upgrading in size, this can 426 00:18:41,560 --> 00:18:43,280 Speaker 1: really get out of hand if you're not being careful. 427 00:18:43,359 --> 00:18:46,199 Speaker 1: You know, for instance, if you're moving from uh like 428 00:18:46,240 --> 00:18:50,080 Speaker 1: a studio apartment to a three or four bedroom home, well, Dan, like, 429 00:18:50,160 --> 00:18:52,760 Speaker 1: now you need new beds, new mattresses, you know, some 430 00:18:52,840 --> 00:18:55,280 Speaker 1: other odds and ends to tie the room together. You're 431 00:18:55,280 --> 00:18:57,480 Speaker 1: gonna need another dresser, things like that the rug from 432 00:18:57,480 --> 00:18:59,639 Speaker 1: the big Lebowski which really ties the room together, you 433 00:18:59,640 --> 00:19:02,720 Speaker 1: know exactly. But again, luckily we do have a decent 434 00:19:02,760 --> 00:19:06,000 Speaker 1: bit of control over these categories. Um. The thing is though, 435 00:19:06,400 --> 00:19:08,000 Speaker 1: something to keep in mind. And I think we actually 436 00:19:08,040 --> 00:19:10,199 Speaker 1: did talk about this in the Everything Costs More Than 437 00:19:10,280 --> 00:19:12,520 Speaker 1: You Think episode, But the did a Row effect remember 438 00:19:12,600 --> 00:19:14,920 Speaker 1: this role? Yeah, basically you get one nice new thing 439 00:19:14,920 --> 00:19:17,119 Speaker 1: and then everything else around it needs to be upgraded 440 00:19:17,160 --> 00:19:18,960 Speaker 1: to yea. It was like he was a French philosopher 441 00:19:19,000 --> 00:19:21,600 Speaker 1: and he basically had this theory or I mean, I 442 00:19:21,640 --> 00:19:25,320 Speaker 1: guess the philosophy. It actually happened to him and they 443 00:19:25,400 --> 00:19:27,200 Speaker 1: named it after it wasn't so. I think he got 444 00:19:27,240 --> 00:19:29,639 Speaker 1: a new robe. Maybe that was it was something that 445 00:19:29,720 --> 00:19:31,320 Speaker 1: new that he got, and then it was like, man, 446 00:19:31,359 --> 00:19:32,960 Speaker 1: everything else around me feel shabby now that I have 447 00:19:33,000 --> 00:19:34,720 Speaker 1: this fancy new robe or a night shirt or something. 448 00:19:34,800 --> 00:19:36,920 Speaker 1: And I think he was like previously a frugal dude, 449 00:19:36,960 --> 00:19:39,760 Speaker 1: and then he upended everything because he got one nice 450 00:19:39,800 --> 00:19:41,120 Speaker 1: new thing. Yeah, and so that's the thing. I mean, 451 00:19:41,119 --> 00:19:42,640 Speaker 1: the same thing is true when it comes to your home, 452 00:19:42,680 --> 00:19:44,239 Speaker 1: Like you move in and you're like, oh man, all 453 00:19:44,280 --> 00:19:46,720 Speaker 1: of our old furniture looks really crappy in this place, 454 00:19:46,800 --> 00:19:49,000 Speaker 1: and so you upgrade one item and then you realize, 455 00:19:49,000 --> 00:19:51,520 Speaker 1: oh man, that rug looks really good. We should really 456 00:19:51,720 --> 00:19:53,560 Speaker 1: get a new coffee table, And then you get the 457 00:19:53,560 --> 00:19:55,600 Speaker 1: new coffee table and you're like, oh man, it'd be 458 00:19:55,600 --> 00:19:57,200 Speaker 1: great if we had a leather couch to to kind 459 00:19:57,200 --> 00:19:59,640 Speaker 1: of tie it together in a big screen TV. Yes, 460 00:20:00,240 --> 00:20:02,040 Speaker 1: and so like I think you run into the did 461 00:20:02,200 --> 00:20:04,240 Speaker 1: Row effect and I'll spell it. It's d I d 462 00:20:04,440 --> 00:20:06,480 Speaker 1: E r O dido. I think it was a t 463 00:20:06,600 --> 00:20:08,720 Speaker 1: at the end. Two. That's not like parad Oh, I know, 464 00:20:08,760 --> 00:20:10,720 Speaker 1: I think I think I don't know well link to 465 00:20:10,800 --> 00:20:13,640 Speaker 1: something in the show, not like explaining it Wikipedia articles. 466 00:20:14,560 --> 00:20:16,240 Speaker 1: But it's definitely something to keep an eye out for 467 00:20:16,320 --> 00:20:18,199 Speaker 1: when it comes to buying a home, because I think 468 00:20:18,240 --> 00:20:21,440 Speaker 1: we can easily fall susceptible to that habit of consumption 469 00:20:21,480 --> 00:20:23,560 Speaker 1: if we're not being careful, No doubt, Matt. So, maintaining 470 00:20:23,560 --> 00:20:25,640 Speaker 1: a home not cheap. Some of the ones that we 471 00:20:25,880 --> 00:20:28,199 Speaker 1: just mentioned, some of the recurring costs that we that 472 00:20:28,240 --> 00:20:30,080 Speaker 1: we just talked about, we have some more control over, 473 00:20:30,320 --> 00:20:32,199 Speaker 1: and we can lower the cost of those things. But 474 00:20:32,200 --> 00:20:34,960 Speaker 1: then there are other costs associated with owning a home 475 00:20:35,280 --> 00:20:37,879 Speaker 1: that we have far less control over, and but we 476 00:20:37,920 --> 00:20:39,600 Speaker 1: need to factor to those in just as well. Right, 477 00:20:40,119 --> 00:20:42,680 Speaker 1: property taxes is one of those things, and they're often 478 00:20:42,720 --> 00:20:45,800 Speaker 1: included in your overall payment if you decide to escrow 479 00:20:45,920 --> 00:20:47,840 Speaker 1: that payment. It's a good idea to look into the 480 00:20:47,840 --> 00:20:50,719 Speaker 1: average property tax costs where you live because that's going 481 00:20:50,760 --> 00:20:53,679 Speaker 1: to have a major impact when it comes to affordability. 482 00:20:53,960 --> 00:20:55,920 Speaker 1: And when you find a specific house that you want 483 00:20:55,920 --> 00:20:58,040 Speaker 1: to make an offer on, definitely check to see what 484 00:20:58,080 --> 00:21:01,160 Speaker 1: the taxes were on that home last year, because that 485 00:21:01,280 --> 00:21:04,160 Speaker 1: alone can make a big difference in your monthly payment. 486 00:21:04,200 --> 00:21:06,880 Speaker 1: What you're gonna owe on that house every single month. Yeah, 487 00:21:06,920 --> 00:21:08,640 Speaker 1: and chances are too unless you get a really good 488 00:21:08,640 --> 00:21:11,200 Speaker 1: deal on the house your purchase price, the price that 489 00:21:11,240 --> 00:21:13,840 Speaker 1: you're paying for that house will likely increase the property 490 00:21:13,920 --> 00:21:17,119 Speaker 1: tax based on its appraise value. Uh And insurance is 491 00:21:17,160 --> 00:21:19,840 Speaker 1: another kind of major cost of homeownership that is also 492 00:21:19,960 --> 00:21:23,920 Speaker 1: rolled into your your escrow rolled into your mortgage payment. Typically, 493 00:21:24,119 --> 00:21:26,800 Speaker 1: you know renters insurance is cheap. You might have paid 494 00:21:26,840 --> 00:21:29,320 Speaker 1: as little as ten dollars a month for that coverage 495 00:21:29,359 --> 00:21:32,040 Speaker 1: as a renter, but homeowners insurance will cost you a 496 00:21:32,080 --> 00:21:35,920 Speaker 1: good bit more. Rates obviously vary by hundreds or even 497 00:21:35,960 --> 00:21:38,360 Speaker 1: more every year, but it often depends on the insurance 498 00:21:38,359 --> 00:21:40,359 Speaker 1: company who you go with, so make sure that you 499 00:21:40,359 --> 00:21:42,800 Speaker 1: shop around. It's really helpful if you go to one 500 00:21:42,840 --> 00:21:45,640 Speaker 1: of those sites that aggregate multiple quotes. You definitely want 501 00:21:45,640 --> 00:21:47,399 Speaker 1: to make sure that you're getting the best deal before 502 00:21:47,400 --> 00:21:50,080 Speaker 1: you purchase at home. Yep, that's another recurring cost, uh, 503 00:21:50,320 --> 00:21:52,840 Speaker 1: and you do have some control over that one. Let's 504 00:21:52,840 --> 00:21:55,639 Speaker 1: talk about home ownership association fees to Matt, A lot 505 00:21:55,720 --> 00:21:57,840 Speaker 1: of people, especially if you're looking to buy a condo, 506 00:21:58,160 --> 00:22:01,400 Speaker 1: you're gonna encounter paying h o A fee. Also, folks 507 00:22:01,440 --> 00:22:03,560 Speaker 1: that live in a single family home live in places 508 00:22:03,600 --> 00:22:05,560 Speaker 1: with an h A f two. But if you choose 509 00:22:05,600 --> 00:22:08,080 Speaker 1: to live somewhere that charges one, be sure to know 510 00:22:08,119 --> 00:22:12,959 Speaker 1: what's included in that h o A payment, pool access, landscaping, sanitation, 511 00:22:13,000 --> 00:22:15,240 Speaker 1: your water bill. Those might all be things that are included, 512 00:22:15,440 --> 00:22:17,280 Speaker 1: but it's important to find out because they might not be. 513 00:22:18,040 --> 00:22:20,720 Speaker 1: And h o A fees can change based on how 514 00:22:20,760 --> 00:22:23,400 Speaker 1: things are run, too, So take note of the financial 515 00:22:23,400 --> 00:22:26,000 Speaker 1: health of your homeowners association and take an active role 516 00:22:26,080 --> 00:22:29,160 Speaker 1: in the association. To Matt, my mother in law owns 517 00:22:29,160 --> 00:22:31,280 Speaker 1: a condo not too far from where we live, and 518 00:22:31,320 --> 00:22:34,400 Speaker 1: the building is adorable, but it needs a lot of help, 519 00:22:34,440 --> 00:22:36,280 Speaker 1: and you need some love and the h A fees 520 00:22:36,320 --> 00:22:38,240 Speaker 1: have been too low throughout the years. So in the 521 00:22:38,240 --> 00:22:40,800 Speaker 1: past couple of years they've had to charge special assessments 522 00:22:40,840 --> 00:22:43,480 Speaker 1: to all the owners of the of the properties in 523 00:22:43,600 --> 00:22:45,879 Speaker 1: order to keep up the building and keep it from 524 00:22:45,920 --> 00:22:48,160 Speaker 1: falling apart. And so, yeah, you want to make sure 525 00:22:48,200 --> 00:22:50,840 Speaker 1: that the h o A has plenty of funds in reserve, 526 00:22:50,960 --> 00:22:53,320 Speaker 1: that they're being run well, because the h o A 527 00:22:53,359 --> 00:22:56,240 Speaker 1: fees could jump dramatically if that's not the case. Yeah, 528 00:22:56,240 --> 00:22:58,240 Speaker 1: and that's something that you can ask them directly. It's 529 00:22:58,240 --> 00:23:00,320 Speaker 1: not something that they will always share with you, but 530 00:23:00,320 --> 00:23:01,800 Speaker 1: see if you can get ahold of their budget or 531 00:23:01,840 --> 00:23:04,680 Speaker 1: their h o A report for the year. Similarly, you know, 532 00:23:04,720 --> 00:23:06,359 Speaker 1: when now we're looking at our first time, we actually 533 00:23:06,359 --> 00:23:08,720 Speaker 1: looked at a loft not too not too far from here, uh, 534 00:23:08,760 --> 00:23:11,280 Speaker 1: and we were able to quickly figure out that the 535 00:23:11,480 --> 00:23:13,520 Speaker 1: h o A did not have any reserves in it. Uh, 536 00:23:13,520 --> 00:23:16,200 Speaker 1: And they were assessing they were like levying or whatever, 537 00:23:16,240 --> 00:23:18,480 Speaker 1: like a special assessment because the entire roof needed to 538 00:23:18,520 --> 00:23:20,399 Speaker 1: be completely redone and it was going to increase the 539 00:23:20,480 --> 00:23:24,400 Speaker 1: estimated mortgages that we're gonna be paying. And so we're 540 00:23:24,400 --> 00:23:26,480 Speaker 1: just like, oh, this isn't nearly the deal that we 541 00:23:26,520 --> 00:23:28,680 Speaker 1: thought was gonna be. This is gonna cost a lot 542 00:23:28,760 --> 00:23:30,359 Speaker 1: to live here, you know, over the course of the 543 00:23:30,359 --> 00:23:32,440 Speaker 1: next ten years. So yeah, that's definitely something to keep 544 00:23:32,440 --> 00:23:34,000 Speaker 1: an eye out for. Yeah, and and I guess a 545 00:23:34,040 --> 00:23:37,120 Speaker 1: special assessment like that could be considered an emergency, which 546 00:23:37,160 --> 00:23:39,320 Speaker 1: is the next thing you really need to budget for 547 00:23:39,680 --> 00:23:42,440 Speaker 1: is potential emergencies things is that you can't fir see 548 00:23:42,440 --> 00:23:45,760 Speaker 1: happening your own emergencies And yeah, on your specific house exactly, 549 00:23:46,080 --> 00:23:49,480 Speaker 1: and and so yeah, that's another reality when it comes 550 00:23:49,520 --> 00:23:52,000 Speaker 1: to budgeting for the actual cost of homeownership. Most things 551 00:23:52,440 --> 00:23:55,120 Speaker 1: you can plan for by saving every month in your 552 00:23:55,119 --> 00:23:58,959 Speaker 1: maintenance fund, right, you can plan for the eventual demise 553 00:23:59,000 --> 00:24:01,359 Speaker 1: of your HVAC system. But it's important to have savings 554 00:24:01,440 --> 00:24:04,960 Speaker 1: beyond just those maintenance fees for unexpected things that that 555 00:24:05,040 --> 00:24:07,680 Speaker 1: come up that aren't so big that you'll be filing 556 00:24:07,680 --> 00:24:10,439 Speaker 1: an insurance claim, and hopefully you're not filing an insurance 557 00:24:10,440 --> 00:24:14,119 Speaker 1: claim for smaller emergencies that pop up. A downtree limb 558 00:24:14,200 --> 00:24:16,399 Speaker 1: that hits your roof and does you know, I don't know, 559 00:24:16,520 --> 00:24:18,920 Speaker 1: five six eight hundred dollars a thousand dollars worth the 560 00:24:18,960 --> 00:24:22,480 Speaker 1: damage or a waterline busting would fall into this category. 561 00:24:22,640 --> 00:24:25,040 Speaker 1: That's an emergency and it's important to have the savings 562 00:24:25,119 --> 00:24:27,200 Speaker 1: on hand to be able to deal with it. Dude, 563 00:24:27,200 --> 00:24:29,000 Speaker 1: as you're talking through these things, that makes me realize 564 00:24:29,200 --> 00:24:31,639 Speaker 1: two things, right. First of all, that we have lots 565 00:24:31,680 --> 00:24:35,200 Speaker 1: of threats around our own house, and we've got lots 566 00:24:35,240 --> 00:24:38,200 Speaker 1: of hundred year old oaks with branches that extend kind 567 00:24:38,200 --> 00:24:40,320 Speaker 1: of out towards our house that could potentially you know, 568 00:24:40,359 --> 00:24:42,800 Speaker 1: following us a little bit, uh, as well as on 569 00:24:42,920 --> 00:24:44,280 Speaker 1: us a little bit. I like the way you said 570 00:24:44,280 --> 00:24:48,880 Speaker 1: that's potentially crushed me in my sleep. But also say, 571 00:24:48,920 --> 00:24:50,840 Speaker 1: like the old water lines, I mean, these are all 572 00:24:50,920 --> 00:24:54,000 Speaker 1: things that in particular, like if you have an older home, 573 00:24:54,280 --> 00:24:56,320 Speaker 1: I mean, you should definitely be setting aside the proper 574 00:24:56,359 --> 00:24:58,600 Speaker 1: amount every month to make sure that you're gonna be 575 00:24:58,600 --> 00:25:01,160 Speaker 1: able to cover these these potential expenses. And I'm I'm 576 00:25:01,200 --> 00:25:03,840 Speaker 1: realizing too that I think I am underfunding our house 577 00:25:03,880 --> 00:25:05,639 Speaker 1: maintenance budget. Like I think I put like a hundred 578 00:25:05,640 --> 00:25:07,880 Speaker 1: bucks maybe a hundred fifty into that you know category 579 00:25:07,920 --> 00:25:11,720 Speaker 1: every single month. That No, seriously, I like I think 580 00:25:11,720 --> 00:25:14,520 Speaker 1: over I mean over the years, because we renovated, I 581 00:25:14,560 --> 00:25:17,439 Speaker 1: guess not all that long ago. I'm like, Okay, a 582 00:25:17,480 --> 00:25:19,159 Speaker 1: lot of stuff is kind of good to go, but like, 583 00:25:19,200 --> 00:25:21,520 Speaker 1: you never know, there's there could be something else. And 584 00:25:21,560 --> 00:25:23,479 Speaker 1: it's not like we replaced every single system in our 585 00:25:23,480 --> 00:25:25,640 Speaker 1: house like we didn't. We honestly, we didn't touch hardly 586 00:25:25,640 --> 00:25:27,399 Speaker 1: any of these systems. We just added on just a 587 00:25:27,400 --> 00:25:29,240 Speaker 1: little bit. And I am a pretty handy dude, and 588 00:25:29,280 --> 00:25:30,959 Speaker 1: so I feel like a lot of times I'm like, well, 589 00:25:31,000 --> 00:25:32,639 Speaker 1: there's a lot of these maintenance things that can kind 590 00:25:32,640 --> 00:25:34,000 Speaker 1: of do on my own. I'm not, you know, paying 591 00:25:34,040 --> 00:25:35,960 Speaker 1: for somebody else. So and so obviously I'm kind of 592 00:25:35,960 --> 00:25:37,640 Speaker 1: in the frugal camp when it comes to stuff like that, 593 00:25:37,840 --> 00:25:38,920 Speaker 1: but you want to make sure that you have those 594 00:25:38,960 --> 00:25:41,840 Speaker 1: funds on hand, that you have those your own personal reserves. 595 00:25:41,880 --> 00:25:44,040 Speaker 1: That way, when something does come up, you don't cheap 596 00:25:44,040 --> 00:25:46,280 Speaker 1: out right, Like you don't want to avoid making a 597 00:25:46,320 --> 00:25:48,600 Speaker 1: repair or something that you know needs to be fixed 598 00:25:48,840 --> 00:25:50,440 Speaker 1: because you don't have any money. And then that problem 599 00:25:50,440 --> 00:25:52,080 Speaker 1: continues to get worse and before you know, it's gonna 600 00:25:52,119 --> 00:25:54,320 Speaker 1: end up costing you way more. Yeah, duct tape doesn't 601 00:25:54,359 --> 00:25:58,760 Speaker 1: fix everything. Um, it fixes some things, but not many things. 602 00:25:58,760 --> 00:26:01,120 Speaker 1: So if that's your goal, or if that's how you're 603 00:26:01,160 --> 00:26:04,320 Speaker 1: avoiding having an emergency fund, well you're you're gonna be 604 00:26:04,320 --> 00:26:05,719 Speaker 1: out of luck at some point for Yeah. And when 605 00:26:05,720 --> 00:26:08,760 Speaker 1: it comes to home ownership, it's not duct tape, it's cock. Yeah. Yeah, 606 00:26:10,000 --> 00:26:12,359 Speaker 1: like like duct tape like fixes all of the like 607 00:26:12,400 --> 00:26:14,080 Speaker 1: the rest of life problems, but when it comes at homes, 608 00:26:14,119 --> 00:26:15,879 Speaker 1: it's like nothing. A little bit of paint and some 609 00:26:15,920 --> 00:26:19,000 Speaker 1: cock can't fix, just like cover up everything. That's true. 610 00:26:19,119 --> 00:26:20,960 Speaker 1: That does work in a number of cases, it doesn't 611 00:26:20,960 --> 00:26:23,360 Speaker 1: always work and probably shouldn't. Yeah, And nerve Wall has 612 00:26:23,359 --> 00:26:25,240 Speaker 1: a solid calculator for you to use. You can see 613 00:26:25,240 --> 00:26:28,679 Speaker 1: that total costs you're likely to incur all in one place. 614 00:26:28,960 --> 00:26:30,840 Speaker 1: Will link to that in our show notes. Not to 615 00:26:30,920 --> 00:26:32,919 Speaker 1: scare folks, but there are of course a lot of 616 00:26:32,920 --> 00:26:35,040 Speaker 1: things you're gonna need to consider before you take the 617 00:26:35,080 --> 00:26:38,959 Speaker 1: plunge into home ownership. And so hopefully our little laundry 618 00:26:39,000 --> 00:26:41,440 Speaker 1: list of things you need to budget for didn't scare 619 00:26:41,480 --> 00:26:43,640 Speaker 1: you too much. That being said, we're going to dig 620 00:26:43,680 --> 00:26:45,679 Speaker 1: into the cost of selling a home right after the 621 00:26:45,680 --> 00:26:48,440 Speaker 1: break just in case you thought owning a home wasn't 622 00:26:48,520 --> 00:26:51,320 Speaker 1: daunting enough. Selling a home has its own costs associated 623 00:26:51,320 --> 00:26:53,439 Speaker 1: with it, and we'll talk about that right after this. 624 00:27:03,359 --> 00:27:05,400 Speaker 1: All right, we are back and we are talking through 625 00:27:05,440 --> 00:27:08,800 Speaker 1: the actual costs of home ownership. And Joel, we have 626 00:27:08,840 --> 00:27:12,480 Speaker 1: gotten to our third and final category of expenses associated 627 00:27:12,480 --> 00:27:15,320 Speaker 1: with home ownership, and of course you know what they 628 00:27:15,320 --> 00:27:18,119 Speaker 1: are because we worked on this together. We plan this 629 00:27:18,160 --> 00:27:20,280 Speaker 1: out a little bit. But we're gonna talk about the 630 00:27:20,320 --> 00:27:23,600 Speaker 1: costs associated with selling your home when it's time to uproot, 631 00:27:23,960 --> 00:27:26,600 Speaker 1: maybe move states, move cities, or maybe just move down 632 00:27:26,640 --> 00:27:28,720 Speaker 1: the block, which you and I have both done within 633 00:27:28,760 --> 00:27:30,800 Speaker 1: our neighborhood. All of my moving in the past twelve 634 00:27:30,880 --> 00:27:33,840 Speaker 1: years has been done in a very very small vicinity, 635 00:27:33,920 --> 00:27:36,360 Speaker 1: right like within a mile of each other. So yeah, 636 00:27:36,400 --> 00:27:39,280 Speaker 1: but the thing is, we've never sold homes because again, 637 00:27:39,400 --> 00:27:42,440 Speaker 1: we like homes. We we like to own homes. There's 638 00:27:42,480 --> 00:27:44,320 Speaker 1: a lot of good that comes from home ownership. But 639 00:27:44,359 --> 00:27:46,480 Speaker 1: we just want to make sure that folks have open 640 00:27:46,520 --> 00:27:48,960 Speaker 1: eyes when it comes to the costs associated with owning 641 00:27:48,960 --> 00:27:50,600 Speaker 1: a home. But when it does come time to sell 642 00:27:50,640 --> 00:27:51,639 Speaker 1: at home, we want to make sure that you know 643 00:27:51,680 --> 00:27:54,119 Speaker 1: what those costs are as well. Selling at home does 644 00:27:54,200 --> 00:27:56,360 Speaker 1: come with this fair share of costs, and so just 645 00:27:56,520 --> 00:27:59,160 Speaker 1: Getting a home ready to sell is going to cost 646 00:27:59,160 --> 00:28:01,760 Speaker 1: you money. You know, you will want to gussie it 647 00:28:01,880 --> 00:28:04,320 Speaker 1: up in order to get top dollar from a buyer. 648 00:28:04,960 --> 00:28:06,760 Speaker 1: And if you do this well, you're likely to get 649 00:28:06,800 --> 00:28:09,639 Speaker 1: every dollar and then more from those minor improvements on 650 00:28:09,680 --> 00:28:12,000 Speaker 1: the back end. Forking out a little dough to de 651 00:28:12,040 --> 00:28:14,000 Speaker 1: freshen up the paint and stage the home a little 652 00:28:14,000 --> 00:28:16,880 Speaker 1: bit like that's going to entice more buyers to make 653 00:28:16,920 --> 00:28:18,800 Speaker 1: an offer. If you're selling and you're lucky, maybe we'll 654 00:28:18,840 --> 00:28:20,960 Speaker 1: even have a bidding war. Yeah, that's what you're going for, 655 00:28:21,119 --> 00:28:23,320 Speaker 1: and you really want man um and and that's too. 656 00:28:23,320 --> 00:28:25,840 Speaker 1: That's because we came across the stat and seven out 657 00:28:25,880 --> 00:28:27,919 Speaker 1: of ten buyers are focused on buying a home that 658 00:28:28,000 --> 00:28:30,840 Speaker 1: is moving ready. They're even willing to own a smaller 659 00:28:30,880 --> 00:28:34,400 Speaker 1: home if it's moving ready versus repairing. Folks don't want 660 00:28:34,440 --> 00:28:36,280 Speaker 1: to deal with you know what, you know what they 661 00:28:36,280 --> 00:28:38,720 Speaker 1: would consider a headache. They just want things to be easy. 662 00:28:38,760 --> 00:28:40,400 Speaker 1: But if you put a little bit of elbow grease 663 00:28:40,440 --> 00:28:42,240 Speaker 1: into it, if you're willing to to put forth a 664 00:28:42,240 --> 00:28:44,680 Speaker 1: little bit of you know, mental space, some thought as 665 00:28:44,720 --> 00:28:46,560 Speaker 1: well as a little bit of money, you are likely 666 00:28:46,600 --> 00:28:48,160 Speaker 1: to get more money for your home and it does 667 00:28:48,200 --> 00:28:49,600 Speaker 1: come time to sell, all right, you just keep a 668 00:28:49,600 --> 00:28:52,200 Speaker 1: good stat. Now I am going to return the favor 669 00:28:52,320 --> 00:28:54,719 Speaker 1: and provide another stat please do two thirds of buyers 670 00:28:54,720 --> 00:28:57,360 Speaker 1: are making an offer without even seeing your house same 671 00:28:57,360 --> 00:29:00,640 Speaker 1: person these days. Yeah, so it's like literally really the 672 00:29:00,680 --> 00:29:03,240 Speaker 1: amount of people making an offer without having seen the 673 00:29:03,280 --> 00:29:06,360 Speaker 1: home has doubled in recent years, and so much of 674 00:29:06,360 --> 00:29:09,040 Speaker 1: that is because of the pandemic. Of course, right, those 675 00:29:09,160 --> 00:29:11,360 Speaker 1: updates that you're doing to your home could mean even 676 00:29:11,360 --> 00:29:13,400 Speaker 1: more than they did in the past. The way your 677 00:29:13,440 --> 00:29:17,120 Speaker 1: home shows online is incredibly crucial in today's market. You 678 00:29:17,200 --> 00:29:20,080 Speaker 1: might even need to spend more to get great pictures 679 00:29:20,200 --> 00:29:22,400 Speaker 1: up there, right. You don't want to take them with 680 00:29:22,560 --> 00:29:25,000 Speaker 1: a flip phone or even maybe your own smartphone. You 681 00:29:25,080 --> 00:29:28,160 Speaker 1: might want professional pictures up there, right. Uh, if nobody 682 00:29:28,160 --> 00:29:30,720 Speaker 1: has a fliphone anymore, nobody, you know, But I bet 683 00:29:30,760 --> 00:29:32,800 Speaker 1: some of our listeners do, because you know, they want 684 00:29:32,840 --> 00:29:34,560 Speaker 1: to be analogued. They don't want all the notifications and 685 00:29:34,600 --> 00:29:36,120 Speaker 1: all the buzzing and all that all that jazz that 686 00:29:36,120 --> 00:29:37,480 Speaker 1: we have with smartphones. Are you be able to listen 687 00:29:37,520 --> 00:29:39,600 Speaker 1: to podcasts on the flip phone? I don't think so. 688 00:29:39,760 --> 00:29:43,240 Speaker 1: I don't think we should promote flipphones. I would not 689 00:29:43,280 --> 00:29:45,640 Speaker 1: go back to one, but I understand if you're you're 690 00:29:45,680 --> 00:29:47,239 Speaker 1: into that. I think one of the reasons we talk 691 00:29:47,280 --> 00:29:49,040 Speaker 1: about smartphones and how great they are too. Like you 692 00:29:49,080 --> 00:29:51,600 Speaker 1: and I we had this conversation recently. Smartphones are so 693 00:29:51,600 --> 00:29:54,000 Speaker 1: amazing because of all the pieces of technology that they've 694 00:29:54,000 --> 00:29:56,520 Speaker 1: made obsolete in this one small device that you keep 695 00:29:56,520 --> 00:29:59,719 Speaker 1: in your podcast. True, like the calculator, the flashlight, uh 696 00:29:59,800 --> 00:30:02,720 Speaker 1: may dream devices, notepads, I mean the whole world, you know, 697 00:30:02,760 --> 00:30:05,920 Speaker 1: the internet is that your fingertips. It truly is so amazing. 698 00:30:05,920 --> 00:30:07,520 Speaker 1: And I don't feel like it's even necessary for me 699 00:30:07,560 --> 00:30:09,920 Speaker 1: to continue because because like I don't need to sell 700 00:30:10,080 --> 00:30:12,200 Speaker 1: anybody on the idea that smartphones are a good idea. 701 00:30:12,280 --> 00:30:14,560 Speaker 1: We get it, Matt, like, oh yeah, we've all got one. 702 00:30:14,560 --> 00:30:15,800 Speaker 1: They were great and they do a lot for us. 703 00:30:16,200 --> 00:30:17,480 Speaker 1: But but yeah, I think like that's one of the 704 00:30:17,480 --> 00:30:19,000 Speaker 1: things that people do need to be consider when they're 705 00:30:19,000 --> 00:30:21,120 Speaker 1: selling a home. There might be an increased cost to 706 00:30:21,160 --> 00:30:23,160 Speaker 1: get good photos and a good video up, and that 707 00:30:23,320 --> 00:30:25,280 Speaker 1: is going to be worth it because it's gonna bring 708 00:30:25,320 --> 00:30:26,960 Speaker 1: the interest is It's gonna be a big reason that 709 00:30:27,000 --> 00:30:29,840 Speaker 1: you actually sell your home, especially with everyone being more 710 00:30:29,920 --> 00:30:32,480 Speaker 1: focused on what your home looks like on a site 711 00:30:32,480 --> 00:30:35,640 Speaker 1: like red fin or Zillo and less focused on what 712 00:30:35,680 --> 00:30:37,160 Speaker 1: it looks like when you walk through the door, like 713 00:30:37,160 --> 00:30:39,600 Speaker 1: it needs to look beautiful on the internet. That's right, Yeah, 714 00:30:39,600 --> 00:30:41,160 Speaker 1: you want to create the buzz uh and kind of 715 00:30:41,160 --> 00:30:43,040 Speaker 1: on the flip side of things here. So that means 716 00:30:43,120 --> 00:30:45,480 Speaker 1: when if you are a buyer and you're looking for homes, 717 00:30:45,800 --> 00:30:49,080 Speaker 1: don't be turned off by the homes the listings where 718 00:30:49,160 --> 00:30:51,800 Speaker 1: it looks like, I don't know, really dusty, the image 719 00:30:51,840 --> 00:30:53,880 Speaker 1: quality is terrible, and you're kind of like, this doesn't 720 00:30:53,880 --> 00:30:55,560 Speaker 1: look very shiny, Like that's how you get a deal. 721 00:30:55,640 --> 00:30:57,600 Speaker 1: That's how you're gonna deal exactly Like those are the 722 00:30:57,600 --> 00:31:00,000 Speaker 1: houses you should be thinking. Okay, nobody else is very 723 00:31:00,040 --> 00:31:01,880 Speaker 1: excited to see this place. I bet there's a good 724 00:31:01,960 --> 00:31:03,800 Speaker 1: chance we could even get an offering that gets accepted 725 00:31:03,880 --> 00:31:06,200 Speaker 1: that's even lower than asking price potentially. That's how you 726 00:31:06,200 --> 00:31:08,520 Speaker 1: need to think about it. But again, we're not going 727 00:31:08,520 --> 00:31:10,040 Speaker 1: back here. We're not we're not talking about buying, we're 728 00:31:10,040 --> 00:31:12,560 Speaker 1: talking about selling a home. Uh. And you know, if 729 00:31:12,560 --> 00:31:14,280 Speaker 1: you're selling your home, you need to keep in mind 730 00:31:14,320 --> 00:31:16,000 Speaker 1: that your home could sit on the market for a 731 00:31:16,040 --> 00:31:19,200 Speaker 1: few months. In that right, there will also cost you money. 732 00:31:19,200 --> 00:31:21,800 Speaker 1: We're talking about carrying costs. Uh. There are ways to 733 00:31:21,800 --> 00:31:23,600 Speaker 1: sell your home faster, you know, just like you said, Joel, 734 00:31:23,840 --> 00:31:26,200 Speaker 1: taking you know, better pictures and pricing it well. But 735 00:31:26,360 --> 00:31:29,400 Speaker 1: it's important to know that selling your home isn't always 736 00:31:29,480 --> 00:31:32,920 Speaker 1: quick and straightforward, and you'll need to be financially prepared 737 00:31:33,000 --> 00:31:35,560 Speaker 1: for the entire process. You know, you might be stuck 738 00:31:35,560 --> 00:31:38,360 Speaker 1: for a while where you're paying to mortgages. Perhaps maybe 739 00:31:38,400 --> 00:31:40,480 Speaker 1: you've got your possessions in a pod that you're paying 740 00:31:40,520 --> 00:31:43,080 Speaker 1: for every single week. We are in a seller's market 741 00:31:43,120 --> 00:31:45,960 Speaker 1: these days, so this really hasn't been as much of 742 00:31:45,960 --> 00:31:48,920 Speaker 1: a concern, but buyers who who do ask too much 743 00:31:48,960 --> 00:31:52,040 Speaker 1: for their place could still experience the pain of you know, 744 00:31:52,080 --> 00:31:54,320 Speaker 1: they're listening, hanging out for longer than they hope for. 745 00:31:54,640 --> 00:31:56,960 Speaker 1: They start seeing the days on market start to tick upwards. 746 00:31:57,120 --> 00:31:59,080 Speaker 1: And when you're selling, that's never a good look. Yeah, 747 00:31:59,080 --> 00:32:01,000 Speaker 1: that's true. At a certain point, gets like snake bitten 748 00:32:01,320 --> 00:32:03,160 Speaker 1: and it's gonna stale. You're like, oh if if that 749 00:32:03,200 --> 00:32:04,920 Speaker 1: thing has been up there for forty five days, and 750 00:32:05,160 --> 00:32:07,600 Speaker 1: like it's still listed. Maybe not. I better see a 751 00:32:07,640 --> 00:32:09,520 Speaker 1: meaningful price shot before I go take a look at 752 00:32:09,560 --> 00:32:12,600 Speaker 1: that place. Yeah all right, Yeah. Another cost you'll incur 753 00:32:12,720 --> 00:32:15,040 Speaker 1: when selling a home is real turfees. That's a major 754 00:32:15,080 --> 00:32:17,360 Speaker 1: cost when you sell. If you followed our advice and 755 00:32:17,360 --> 00:32:20,080 Speaker 1: you've owned your home for at least seven years, that 756 00:32:20,200 --> 00:32:23,360 Speaker 1: home has likely seen some appreciation, which is great. So 757 00:32:23,520 --> 00:32:26,520 Speaker 1: those real turfees will be deducted from the profit that 758 00:32:26,560 --> 00:32:28,800 Speaker 1: you're making on your home, but you won't actually have 759 00:32:28,840 --> 00:32:30,880 Speaker 1: to write a check, which which is which is nice, 760 00:32:31,120 --> 00:32:33,920 Speaker 1: But that doesn't mean that those costs aren't there. Right 761 00:32:34,280 --> 00:32:36,760 Speaker 1: on the sale of a three thousand dollar home, you're 762 00:32:36,880 --> 00:32:40,160 Speaker 1: most likely looking at roughly eighteen thousand dollars in real turfees, 763 00:32:40,360 --> 00:32:42,160 Speaker 1: and that's an important cost to keep in mind. Yeah, 764 00:32:42,200 --> 00:32:43,720 Speaker 1: you might be doing the quick mental math of of 765 00:32:43,760 --> 00:32:45,320 Speaker 1: how much you might be able to walk away from 766 00:32:45,320 --> 00:32:47,320 Speaker 1: the table with, you know, like or it to sell 767 00:32:47,440 --> 00:32:49,120 Speaker 1: at that amount, and you're thinking, man, I'm gonna be 768 00:32:49,160 --> 00:32:51,160 Speaker 1: able to pocket a lot of money here, But don't 769 00:32:51,200 --> 00:32:53,600 Speaker 1: forget about those realtors fees. They definitely take a pretty 770 00:32:53,600 --> 00:32:55,920 Speaker 1: big bites out of that amount. And another expense when 771 00:32:55,920 --> 00:32:57,640 Speaker 1: it comes to selling your home is the cost of 772 00:32:57,640 --> 00:32:59,960 Speaker 1: moving your stuff if you're not you hauling in right, 773 00:33:00,040 --> 00:33:02,160 Speaker 1: like you know, even just running your own truck to 774 00:33:02,160 --> 00:33:05,040 Speaker 1: to move across the country. It's not cheap, but hiring 775 00:33:05,080 --> 00:33:08,800 Speaker 1: movers is far more costly, and the price really does vary. 776 00:33:08,840 --> 00:33:12,600 Speaker 1: It depends on how full service you want to go. Yeah, 777 00:33:12,640 --> 00:33:14,400 Speaker 1: you can hire the movers who are like pack everything 778 00:33:14,440 --> 00:33:16,840 Speaker 1: for you too, right, Yes, yeah, that's like the premium 779 00:33:16,880 --> 00:33:19,960 Speaker 1: movers is really nice, but it's also really expensive. Yeah, 780 00:33:19,960 --> 00:33:21,360 Speaker 1: it comes with a pretty steep fee. That's one of 781 00:33:21,360 --> 00:33:23,920 Speaker 1: the things to consider. Also consider the size of your 782 00:33:23,960 --> 00:33:26,280 Speaker 1: home as well as the distance of the move that 783 00:33:26,320 --> 00:33:29,000 Speaker 1: you're planning to make. Um. You know, if you hire movers, 784 00:33:29,000 --> 00:33:32,160 Speaker 1: it can easily run into the many thousands of dollars. Yes, 785 00:33:32,200 --> 00:33:35,200 Speaker 1: it can also to just real quickly list dwell on 786 00:33:35,280 --> 00:33:38,280 Speaker 1: moving for a second match. Complaints about moving companies have 787 00:33:38,360 --> 00:33:41,840 Speaker 1: soared during the pandemic, and even before COVID it was 788 00:33:41,880 --> 00:33:44,480 Speaker 1: an industry or rife with problems. A lot of people 789 00:33:44,520 --> 00:33:48,080 Speaker 1: got scammed out of money or possessions from moving companies, 790 00:33:48,480 --> 00:33:50,960 Speaker 1: and you might find your possessions being held hostage if 791 00:33:51,000 --> 00:33:53,280 Speaker 1: you hire the wrong mover too. So it's really important 792 00:33:53,320 --> 00:33:56,000 Speaker 1: to research any company before you end up using them. 793 00:33:56,280 --> 00:33:58,840 Speaker 1: Check what's being said about them online and on the 794 00:33:58,880 --> 00:34:01,160 Speaker 1: website of the Better Busy This Bureau. Make sure that 795 00:34:01,200 --> 00:34:04,320 Speaker 1: the company is licensed. And also to consider finding a 796 00:34:04,360 --> 00:34:07,640 Speaker 1: moving company on moving dot org because it's a trade 797 00:34:07,680 --> 00:34:11,000 Speaker 1: association that vets movers. If you're just looking in the 798 00:34:11,040 --> 00:34:14,480 Speaker 1: Yellow Pages or seeing companies maybe that advertise on Facebook, 799 00:34:14,719 --> 00:34:16,080 Speaker 1: you might be in for a rough time. What about 800 00:34:16,080 --> 00:34:18,279 Speaker 1: a piece of plastic tape to a tree at the 801 00:34:18,320 --> 00:34:22,359 Speaker 1: exit by the interstate. Probably not a good idea. Do 802 00:34:22,400 --> 00:34:24,279 Speaker 1: not choose your mover that way. Yeah, So that was 803 00:34:24,360 --> 00:34:25,759 Speaker 1: kind of like a lot of bad news, right, a 804 00:34:25,760 --> 00:34:27,759 Speaker 1: lot of expensive things. So let's maybe end on a 805 00:34:27,760 --> 00:34:31,279 Speaker 1: more positive note. Fortunately for most folks when it when 806 00:34:31,280 --> 00:34:33,480 Speaker 1: it does come time to sell your home, taxes are 807 00:34:33,480 --> 00:34:36,600 Speaker 1: typically non existent on the sale of our principal residents 808 00:34:37,080 --> 00:34:41,080 Speaker 1: unless your home has appreciated a massive amount. You will 809 00:34:41,120 --> 00:34:45,080 Speaker 1: receive gains tax free up to two fifty dollars as 810 00:34:45,080 --> 00:34:47,560 Speaker 1: a single person, and five thousand dollars if you're married, 811 00:34:47,560 --> 00:34:49,239 Speaker 1: And so that's definitely a good thing that you at 812 00:34:49,320 --> 00:34:51,640 Speaker 1: least don't have to worry about Uncle Sam taking taking 813 00:34:51,640 --> 00:34:53,160 Speaker 1: a little bit of cut a little bit a piece 814 00:34:53,160 --> 00:34:55,479 Speaker 1: of the action. Get out of here, Uncle Sam, slap 815 00:34:55,520 --> 00:34:58,319 Speaker 1: slap that hand away? Yeah, and that again. I think 816 00:34:58,640 --> 00:35:00,640 Speaker 1: we've tried to reiterate a couple of to this episode, 817 00:35:00,640 --> 00:35:03,120 Speaker 1: even though I feel like this is like bad news 818 00:35:03,440 --> 00:35:05,359 Speaker 1: for the most part. Hey, it's really expensive to own 819 00:35:05,360 --> 00:35:08,560 Speaker 1: a home. You should really reconsider. But owning home is great. 820 00:35:08,719 --> 00:35:11,040 Speaker 1: I am so glad that our family has put down 821 00:35:11,120 --> 00:35:13,360 Speaker 1: roots in a community. We've lived in our neighborhood for 822 00:35:13,360 --> 00:35:15,880 Speaker 1: like twelve years now, in our specific house for almost 823 00:35:15,960 --> 00:35:18,480 Speaker 1: seven years. And and even though we would do it 824 00:35:18,520 --> 00:35:21,120 Speaker 1: again in a heartbeat, that doesn't mean that it came 825 00:35:21,160 --> 00:35:24,520 Speaker 1: without real monetary costs associated with it. And the key 826 00:35:24,640 --> 00:35:26,839 Speaker 1: is knowing what the actual costs of owning the home 827 00:35:27,000 --> 00:35:29,560 Speaker 1: you're looking at will be before you go all in 828 00:35:29,680 --> 00:35:32,160 Speaker 1: and make an offer, before you upgrade a house either, 829 00:35:32,440 --> 00:35:34,840 Speaker 1: it's important to know the actual the true costs of 830 00:35:34,840 --> 00:35:38,279 Speaker 1: homeownership before you make the plunge. Knowledge is power, you know, 831 00:35:38,360 --> 00:35:41,160 Speaker 1: have your eyes open. The more cognizant you are of 832 00:35:41,200 --> 00:35:43,080 Speaker 1: all of these different ways a home is going to 833 00:35:43,160 --> 00:35:45,520 Speaker 1: cost you money, the more you'll be prepared to make 834 00:35:45,520 --> 00:35:47,960 Speaker 1: the move. Yes, that is right, man, All right, let's 835 00:35:48,000 --> 00:35:49,440 Speaker 1: go ahead and take it back to the beer that 836 00:35:49,440 --> 00:35:51,799 Speaker 1: you and I shared on this episode. Uh, and that 837 00:35:51,960 --> 00:35:55,839 Speaker 1: was a Derby Juice by and Derby Brewing. And they're 838 00:35:55,840 --> 00:35:58,239 Speaker 1: actually here out of Atlanta. They're looking at up in 839 00:35:58,239 --> 00:36:01,160 Speaker 1: Peach Street Corners, Georgia, which I don't even know where 840 00:36:01,160 --> 00:36:03,239 Speaker 1: that is, but I think it's technically kind of within 841 00:36:03,280 --> 00:36:05,920 Speaker 1: the greater Atlanta area. I've never been there. Have you 842 00:36:05,960 --> 00:36:08,120 Speaker 1: been there? No? I'm not. This was again a beer 843 00:36:08,160 --> 00:36:10,680 Speaker 1: that my little sister tossed our way, and I've never 844 00:36:10,719 --> 00:36:12,479 Speaker 1: had any other beers before, so it was a joy 845 00:36:12,520 --> 00:36:13,960 Speaker 1: to get to try one. Would you think about it? 846 00:36:14,040 --> 00:36:15,399 Speaker 1: I mean, I thought it was a nice local brew 847 00:36:15,800 --> 00:36:19,120 Speaker 1: and it wasn't magically delicious like Lucky Charms or anything 848 00:36:19,120 --> 00:36:21,360 Speaker 1: like that, but I thought it was a really solid 849 00:36:21,360 --> 00:36:23,600 Speaker 1: I p a And again, Matt, there are so many 850 00:36:23,640 --> 00:36:26,200 Speaker 1: local breweries now. Literally, I did not know this brewery 851 00:36:26,200 --> 00:36:28,680 Speaker 1: existed until my little sister pointed out. She's like more 852 00:36:28,719 --> 00:36:30,440 Speaker 1: into it, like we're in the craft beer, in the 853 00:36:30,520 --> 00:36:32,200 Speaker 1: craft beer, and she knows more than I do for 854 00:36:32,239 --> 00:36:34,160 Speaker 1: sure at this point she knows at least about them. 855 00:36:34,560 --> 00:36:36,799 Speaker 1: But there's folks who you know about this? She doesn't know. 856 00:36:37,000 --> 00:36:39,120 Speaker 1: You're probably right, but for the most part, she is 857 00:36:39,160 --> 00:36:41,520 Speaker 1: more knowledgeable, and I'm willing to admit it. I love 858 00:36:41,600 --> 00:36:43,959 Speaker 1: I love craft beer. Obviously it's a part of our show. 859 00:36:44,239 --> 00:36:46,680 Speaker 1: But I think with three kids and her having none, 860 00:36:46,719 --> 00:36:48,359 Speaker 1: it's probably a little easier for her to get out 861 00:36:48,400 --> 00:36:49,680 Speaker 1: to the bruise than it is for me. Yeah, I 862 00:36:49,719 --> 00:36:51,200 Speaker 1: heard Evan. They get out to the bruise maybe a 863 00:36:51,239 --> 00:36:54,279 Speaker 1: little bit more than than we do these days. But yeah, 864 00:36:54,280 --> 00:36:56,040 Speaker 1: So this was a hazy so poured a nice kind 865 00:36:56,040 --> 00:36:58,560 Speaker 1: of hazy colored. It definitely sets the expectations as to 866 00:36:58,560 --> 00:37:00,200 Speaker 1: what it's gonna taste like. But I was actually rise 867 00:37:00,239 --> 00:37:02,040 Speaker 1: that had a decent amount of bitterness going on. A 868 00:37:02,040 --> 00:37:03,800 Speaker 1: lot of times, some of these hazies can come across 869 00:37:03,840 --> 00:37:08,080 Speaker 1: maybe a little more uh full and body, but sometimes 870 00:37:08,080 --> 00:37:09,799 Speaker 1: they lack in the bitterness. But I felt listen, this 871 00:37:09,800 --> 00:37:11,600 Speaker 1: one kind of brought some of the West Coast bitterness 872 00:37:11,760 --> 00:37:13,800 Speaker 1: to the hazy game a little bit, a little style 873 00:37:13,840 --> 00:37:15,920 Speaker 1: mixture they're going on, maybe so, But at the same time, 874 00:37:15,960 --> 00:37:18,479 Speaker 1: it wasn't overly heavy. I'll tell you Before the show, 875 00:37:18,520 --> 00:37:21,160 Speaker 1: I had a massive lunch. Kate and the girls made 876 00:37:21,160 --> 00:37:23,200 Speaker 1: this chocolate granola and so when I went up for lunch, 877 00:37:23,200 --> 00:37:24,440 Speaker 1: as soon as I cracked open the door, it just 878 00:37:24,440 --> 00:37:26,520 Speaker 1: smell like brownies. And I was just like, I don't 879 00:37:26,520 --> 00:37:28,600 Speaker 1: know what that is, but I'm gonna eat it. Must 880 00:37:28,600 --> 00:37:30,200 Speaker 1: shovel it into my mouth. My gosh, I don't know 881 00:37:30,239 --> 00:37:32,319 Speaker 1: how many bowls of granola with yogurt I had, but 882 00:37:32,400 --> 00:37:34,760 Speaker 1: I kind of came back down. I was just like, oh, 883 00:37:34,880 --> 00:37:36,880 Speaker 1: I do not feel like drinking beer today, which I 884 00:37:36,960 --> 00:37:39,040 Speaker 1: rarely ever say, but sometimes when you eat a bunch 885 00:37:39,080 --> 00:37:40,680 Speaker 1: of food, you're kind of like, I don't know if 886 00:37:40,680 --> 00:37:43,239 Speaker 1: I should put more calories into my body. But this 887 00:37:43,280 --> 00:37:45,360 Speaker 1: one was great though, because it wasn't too filling. And 888 00:37:45,360 --> 00:37:47,000 Speaker 1: I'm glad that you and I shared this one, no doubt. 889 00:37:47,080 --> 00:37:49,080 Speaker 1: And thanks again to my little sister. Yeah, thanks sally 890 00:37:49,160 --> 00:37:51,040 Speaker 1: AND's house Alf for dropping it our way. All right, 891 00:37:51,040 --> 00:37:53,440 Speaker 1: that's gonna do it for this episode, though, And if 892 00:37:53,480 --> 00:37:56,040 Speaker 1: you want show notes for this episode links to some 893 00:37:56,080 --> 00:37:58,600 Speaker 1: of the stuff we mentioned, including that nerd wallet calculator, 894 00:37:58,760 --> 00:38:01,000 Speaker 1: we'll have those up on our website at how to 895 00:38:01,080 --> 00:38:03,560 Speaker 1: money dot com. That's right, So we hope you've enjoyed 896 00:38:03,560 --> 00:38:07,440 Speaker 1: this deep dive into the expenses associated with owning a home. Uh. 897 00:38:07,520 --> 00:38:09,440 Speaker 1: And we will see you back here on Friday for 898 00:38:09,600 --> 00:38:12,520 Speaker 1: our Friday Flight where we tackle the this week's news 899 00:38:12,520 --> 00:38:14,440 Speaker 1: and personal finance. All right, Juel, that's gonna be it 900 00:38:14,480 --> 00:38:17,960 Speaker 1: for this episode until next time. Best Friends Out, Best 901 00:38:18,160 --> 00:38:18,959 Speaker 1: Friends Out,