Purchasing a home in Chicago can be a thrilling experience. But do you know all the costs associated with home ownership? According to a recent Zillow report, Chicago is the 10th most expensive city in the U.S. for homeowners.
In fact, Chicago homeownerspay, on average, around $10,423 annually on home-related fees—roughly $1,500 more than the national average ($9,080).
If you’re looking to buy a home in the Windy City, you must familiarize yourself with these expenses, otherwise you may find yourself in the unfortunate situation of being unable to pay your bills after you move in.
1. Property Taxes
Property taxes are among the costliest expenses for Chicago homeowners. They are determined by the city and based on the assessed value of your home. Most Chicago homeowners pay 0.7%-3% of their homes’ current market value in property taxes.
And if you live in a certain district, you may even have to pay more!
Keep in mind, property taxes will rise over time, so long as your home’s value continues to increase. This means you may find yourself in a situation where your mortgage payment stays the same, but you have to pay more in property taxes every few years.
2. Monthly Utility Bills
Whereas renters are only responsible for paying some utilities, homeowners have to pay all of them. Specifically, you’ll have topay for gas, electricity, water, sewage, and trash removal.
And, in some places, you may have to pay for internet, cable, or home security systems.
3. Homeowners Insurance
Most Chicago homeowners pay around $1,000 a year for homeowners insurance, though how much you pay is determined by the size of your home, the location, and the kind of coverage you have.
You may even need more insurance if your home is full of valuables, such as jewelry or art. Shopping around to get the best rate is advised. Also, you must understand the terms, otherwise you may get hit with a financial surprise down the road.
4. Lawn Maintenance & Snow Clearance
When you’re renting, you don’t have to do yard work, as the landlord handles it. But as a homeowner, you’ll need a lawnmower, snow blower, rakes, and shovels. Or, of course, you can hire professional snow remover sand landscapers.
5. HVAC Maintenance
Your furnace and air conditioners are essential. After all, Chicago is known for its unpredictable weather. If your furnace or air conditioners break down, and you don’t have a warranty, repairs or replacement may cost thousands of dollars.
Even the little things, like regular replacement of furnace filters, can cost a lot in the long run.
6. General Repairs & Maintenance
Older houses in Chicago need repairs more often, and even simple repair jobs can cost a bit. Repairing leaky faucets, caulking windows,repainting walls—the costs add up, especially if you need these services often.
More significant repairs, such as roof replacement or electrical system rewiring, can be even more expensive. This is why it’s practical to put aside a small amount of money each month for home repairs.
Overwhelmed By The Cost Of Your Home?
If the costs of homeownership are depleting your savings, selling your property may be your best choice. At Diamond Equity Investments, we know how frustrating it is to have a house that’s costing you more than you expected.
If you have to sell a house fast in Chicago, we’ll make the process quick and easy. We’ll pay 100% in cash, and you won’t have to spend a dime on costly repairs. Plus, we can close in just two weeks!
Call us today to get a fair, no-obligation cash offer in under 24 hours!
