10 Expenses Every Homeowner Should Expect

Closing on your home is an exciting milestone, but it also raises an important question: What bills do you pay when you own a house? Beyond the mortgage, there are several ongoing homeowner expenses that new buyers should anticipate. Here are 10 of the most common costs every homeowner faces. 

1. Property Taxes: How Much Will You Pay?

Property taxes are one of the largest recurring homeowner bills. The exact amount depends on your state, county, and sometimes even your neighborhood. For instance, New York homeowners pay over three times the property taxes of Neveda homeowners, despite having nearly identical home values. 

Source: WalletHub.com 

Because these costs can add thousands to your annual budget, it’s important to confirm estimates with your real estate agent before closing. 

2. Homeowners Insurance: But Do You Need It?

Yes. Most lenders require homeowners insurance, and it’s a smart safeguard even after your mortgage is paid off.  

Insurance protects your investment and is a non-negotiable homeowner expense. 

3. Utilities: What Should You Expect to Pay?

Unlike some rentals where some utilities are bundled, homeowners are responsible for separate bills such as: 

• Electricity 

• Gas 

• Water 

• Trash and recycling 

These homeowner bills often add several hundred dollars each month, and costs fluctuate depending on season and usage.  

Consider an example of the difference in utility costs between John the Renter and John the Homeowner in the same month. These numbers are based on a real Colorado resident’s utilities^*: 

^* https://www.apartments.com/rent-market-trends/denver-co/ 

As you can see, utilities as a homeowner can really add up. And the cost can fluctuate depending on the season. 

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4. Repairs and DIY Projects: Why Do They Add Up?

As a homeowner, you’re responsible for all repairs. Even small fixes require money for tools, supplies, or professional help. While DIY projects can save money compared to hiring a contractor, they still represent an ongoing homeowner expense. On average, DIY projects cost about $2,700 each, whereas professional projects run $8,100. 

5. Systems and Appliances: What Happens When They Break?

Every major system or appliance eventually wears out. Replacing an HVAC unit, water heater, or refrigerator can cost thousands.^* 

That's why homeowners purchase a 2-10 Home Buyers Warranty (2-10 HBW) . A 2-10 home warranty could help reduce the costs to address breakdowns to covered parts of important systems and appliances. It's a smart way to manage some of the most expensive, unexpected bills you'll face as a homeowner.   

6. Renovations: How Do They Impact Expenses?

Whether it’s a kitchen remodel or backyard upgrade, most homeowners eventually invest in renovations. These projects raise upfront costs—and because they often increase your home’s value, they can also raise your property taxes over time. Kitchens and bath renovations are often a solid investment, where you get all or most of your money back. So are maintenance projects like new roofs and French drains that keep water out of a basement. 

7. Lawn and Garden: A Hidden Cost of Homeownership

Maintaining a yard can quickly become expensive. Equipment like mowers, sprinklers, and fertilizer add up, and professional lawn services bring recurring monthly bills. Even low-maintenance landscaping requires an investment of time and money. Lawn care may cost $4,000 or more depending on how intense the care is.  

8. Pest Control: Why It Matters for Your Budget

Pest problems are your responsibility as a homeowner. Termites, rodents, and other pests can cause structural or electrical damage. Regular pest control services are a smart way to prevent larger, more expensive problems. 

9. Radon Mitigation: Is It Necessary?

Radon, a naturally occurring gas, is the second leading cause of lung cancer in the U.S. While not every homeowner faces this bill, it’s important to be aware of the potential risk. 

10. Routine Maintenance: What’s the Rule of Thumb?

A common guideline is to budget about 1% of your home’s value annually for maintenance. For a $400,000 home, that’s roughly $4,000 per year for things like plumbing fixes, painting, or small replacements. Regular upkeep helps you avoid bigger, costlier repairs down the line. 

Final Thoughts: How Can Homeowners Manage All These Bills? 

Owning a home provides freedom and stability but it also comes with ongoing expenses.  – Whether it’s an air conditioner, refrigerator or water heater, can you afford a breakdown?   

By understanding what bills you pay when you own a house, you can budget wisely and avoid surprises. 

And when it comes to some of the most expensive homeowner expenses, like systems and appliances, a 2-10 Home Warranty can help protect your budget. 

^*Repair/replacement cost is the eightieth percentile as reported in a nationwide survey of homeowners conducted in 2024 by ClearVantage for Frontdoor, Inc.