you’re an owner trying to sell — it is.
DISADVANTAGES OF OWNING
Maintenance. The renter’s largest advantage might just be the homeowner’s major disadvantage. While insurance might be available to protect against expense from major catastrophe, usual maintenance items are on the homeowners’ dime. Maintenance and repair can be as simple as repainting the baseboards or can also be as extensive and expensive as replacing an HVAC system, replacing a roof or sewer pipe. The expense will vary from year-to-year; if you're a homeowner you should establish a reserve account that you contribute a fixed amount every month to cover unexpected maintenance and repair costs. Keep in mind the usual homeowner’s chores of lawn care, gutter cleaning, roof maintenance and other regular home maintenance needs. Upfront and closing costs. Buying a home entails numerous upfront costs. Some are paid out-of-pocket after the seller accepts your purchase offer, while others are paid at closing. These include earnest money, down payment (typically ranges from 3.5% for FHA [Federal Housing Administration] loans to 20% or more of the purchase price), home appraisal, home inspection, property taxes, and first year’s homeowner’s insurance. Loss of relocation flexibility. It’s much easier to break a lease and move out of town than to arrange for the sale of a residence. Selling the home from out-of-town involves its special logistics and financial problems, such a dealing with the mortgage while the home is on the market. Financial loss potential. Homeownership builds equity over time; however, equity doesn’t equate to profit. If home values in your area go down or remain stagnant during your time as a
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