Published Date 5/31/2022

So you won the house. Congratulations! The bidding is over and the keys are yours. If you are a first time home owner, however, be aware that your work has just begun —things like moving, decorating, and protecting your investment are just ahead. Put aside conventional wisdom about home ownership, and pay attention to a few of the common myths that keep floating around out there, as offered by Money’s Leslie Cook.

The first is that maintenance is something you can think about later. Whether your house is newer or older, wear and tear begins to take its toll, so taking steps to keep your home in great shape can help prevent costly repairs later on. “Gutters get clogged, paint can start peeling and concrete can start cracking,” says Cook. “It won’t hurt to routinely walk around the home to make sure the exterior is in good shape. Small paint touch-ups, for example, are easier to take care of than redoing the whole exterior.” She goes on to say that a few other items may not be obvious, but to plan for them anyway, such as changing out your home’s HVAC filters every 6 weeks or so, your septic tank (if it applies) every 3-5 years, and your swimming pool regularly. Now throw in fireplaces, smoke alarms, and carbon monoxide detectors, stocking up on batteries.

The next myth is that decorating the whole place and buying furniture for it right away is a wise thing. New homeowners should take their time, adjusting their budgets to new issues of payments, taxes, and maintenance fees or repairs, and ease into filling up the house with furniture. See how you use spaces in the house first. And if you simply need the basic necessities, like a place to sleep or sit, order the stuff early, since supply chain issues have not yet gone away.

Did you skip the inspection to win the bid? “This may have helped you win the home, but now it’s time to learn the truth,” says Cook. “An inspection can catch things like drainage problems in the yard, uneven flooring or improperly installed plumbing fixtures. If you skipped the inspection contingency, it’s not too late to get an assessment of the homes — though now that you’re the owner you’ll be responsible for paying for any repairs. Inspections cost between $300 and $500, which is a small price to pay for the peace of mind they provide.”

Next — don’t assume home warranties are the same as home insurance. Home warranties, which cost about $300-$600 per year, are service contracts made up to cover the repair or replacement cost of items like appliances, HVAC, electrical, or plumbing systems, water heaters and ductwork. A homeowners insurance policy (about $1,000 per year), however, covers the “what ifs” — things such as repairs and replacements due to first, theft, liability if someone is injured on your property, fires, and some but not all natural disasters.

The last myth is that whatever you do to improve your home will add value to it. While adding an extra bathroom or bedroom definitely will add value — only if done properly and not crowding an already small home — do it for your own comfort instead of concentrating on a return or even a profit on your investment. “Any improvements made should be in line with the market value and location of your home,” says Cook. “Luxury upgrades, such as top of the line kitchen appliances and exotic countertops, may add value in a high end home in an upscale neighborhood, but may not be as effective if you have a median home in a less affluent spot. The same goes for landscaping. Keeping a yard clean and well kept will add value, but water features and high end landscaping such as topiaries could just become an unwanted maintenance expense in the eyes of a future buyer.”

Money, TBWS

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