Top 20 Things to Know Before Owning a Home

If you’re a first-time homebuyer, the whole process can seem overwhelming, almost too intimidating. Which means dragging your feet more and more when you could be turning your cash into equity. But luckily, our team has a little experience in purchasing a home. We’ve compiled the top 20 things that can help ease your worries during the buying process. And while not one of the major points of this article, we’ll kick off our discussion by addressing a very common question – “When is the right time to buy?” 

There’s no “perfect” time of year (or even time in life) to buy a home, so we can’t give you a blanket answer, but understanding market patterns can help. Keep in mind that prices tend to be lowest in winter when demand drops, whereas spring and summer offer more listings but stiffer competition. Beyond seasons, consider broader factors like interest rates (on a four-month low at the time of this article's publishing) and your personal readiness. Compare rental prices in your area compared to what a realistic monthly mortgage payment would be. Ultimately, the best time to buy is when you’re financially prepared and find a home that meets your needs, not just when the market says so. 

Now, let’s dive into the top 20 things YOU should know before owning a home.

1. Tax Breaks When Selling Your Primary Home

One huge perk of homeownership comes at resale: the primary residence capital gains exclusion. If you’ve owned and lived in your home for at least 2 out of the 5 years before selling, you can exclude up to $250,000 of profit from taxes (or $500,000 for married couples). In plain English, that means many home sellers pay zero tax on the gain when selling their primary house. This tax break can significantly boost your net proceeds when you move. Just remember that you generally must have used the home as your main residence and not claimed this exclusion on another sale in the last two years. It’s a nice reward for homeowners and something renters don’t get to enjoy!

2. PMI Adds to Your Monthly Costs

If you can’t put down 20% when buying, be prepared for Private Mortgage Insurance (PMI). PMI is an extra fee tacked onto your mortgage when your down payment is low – it protects the lender, not you. This insurance typically comes in the form of a monthly premium and can range from about 0.3% to 1.5% of the loan per year, depending on factors like your credit and down payment. The good news is, PMI won’t last forever. By law, lenders must cancel PMI automatically once your loan balance drops to 78% of the home’s purchase price. You can even request cancellation earlier, as soon as you reach 20% equity (i.e., your balance is 80% of the original value) and have a good payment history. In other words, PMI is a temporary cost on the path to building equity. Still, it’s smart to factor it into your budget now so you’re not caught off guard by a higher monthly payment.

3. Never Skip the Home Inspection

When you’re excited about a house, it’s tempting to rush, but always get a home inspection. A professional inspector will examine the home’s structure and systems (roof, foundation, plumbing, electrical, HVAC, etc.) and report any issues. This isn’t just a formality; it can save you from expensive surprises. For a few hundred dollars, an inspection provides peace of mind and bargaining power – you can negotiate repairs or credits for problems found, or walk away if the house has major defects. In competitive markets, some buyers waive inspections to win a bid, but that’s a big risk and usually only a good idea if you’re going in with all cash or high liquidity. Especially as a first-timer, you’ll sleep better knowing a pro has vetted the home. 

Pro tip: Attend the inspection if you can. You’ll learn a ton about the house, and inspectors often give home maintenance tips during the walk-through.

4. Don’t Overlook Title Insurance and Title Searches

“Title” refers to your legal ownership of the property. Before closing, a title company will do a title search to make sure there are no issues, like old liens, boundary disputes, or claims from previous owners, that could threaten your ownership. Surprises do happen (for example, an heir of a past owner could surface, or a clerical error in a deed could cloud the title). That’s why most buyers purchase title insurance. There are two types: lender’s title insurance (required by your mortgage lender to protect their loan interest) and owner’s title insurance (optional but highly recommended to protect you). Title insurance is a one-time premium paid at closing that covers you as long as you own the home. It’s essentially a safety net against unforeseen title problems – if someone later challenges your ownership or a hidden defect comes up, the title insurance will cover legal fees or losses. Bottom line: do the title homework. Ensure a thorough title search is done, and strongly consider an owner’s title policy for peace of mind. It’s a small cost to avoid a potential property nightmare.

5. Budget for Ongoing Maintenance

When you own a home, there’s no landlord to call – upkeep is on you. Homes require continual TLC, and maintenance costs can add up. A common rule of thumb is to set aside about 1%–2% of the home’s value per year for maintenance and repairs. For example, a $300,000 home might need $3,000–$6,000 annually for things like painting, fixing appliances, yard work, HVAC servicing, etc. Some years you’ll spend less, other years more (a new roof or HVAC can blow a budget). National data from Thumbtack shows average maintenance and upkeep runs around $6,400 a year, but it varies by region and home age. The key is to plan ahead: build an emergency fund for home issues, and address small problems early before they become big ones. Regularly check the roof for missing shingles, clean gutters, and service your furnace – these little chores prevent expensive repairs down the road. 

6. Condo Association or HOA Rules Apply

If you’re buying a condo or a home in a community with a homeowners association (HOA), be prepared to follow the rules. Condos and some neighborhoods have governing documents (CC&Rs, bylaws, etc.) that dictate what you can and can’t do. This can cover anything from pet sizes, rental restrictions, where you can park, to what color you paint your door. It’s essential to read those rules before you buy, so there are no unhappy surprises. Also, HOAs/condo associations charge fees (monthly or annual dues) to maintain common areas or services. Those fees can change and sometimes spike if major repairs are needed – associations can even levy special assessments (one-time big fees) if, say, the condo roof needs replacement and reserves are short. On the bright side, a well-run association takes care of exterior maintenance or amenities, freeing you from some chores. Just go in with eyes open: you’ll be trading a bit of autonomy for convenience. For East Coast buyers, also note that some older co-ops/condos may have strict policies (e.g., on renovations or noise). 

7. Parking Can Be a Big Deal

It might seem minor, but parking is a quality-of-life issue, especially in urban areas. Always check what the parking situation is at any home you’re considering. Does it have a garage or driveway (and how many cars fit)? If it’s street parking only, do you need a city permit? Is it usually easy to find a spot, or will you be circling the block for 20 minutes every night? In dense East Coast cities or older neighborhoods, off-street parking is golden and can even boost home value by 5–10%. Conversely, a lack of parking can detract from value and daily convenience. Also consider guests: ample guest parking is a nice perk. If the home is part of an association, see if it assigns parking spots or has rules against commercial vehicles, etc. This sounds picky, but trust us – coming home to a guaranteed spot (or lack thereof) can affect your happiness. 

8. Mind the Trees and Easements on the Property

Pay attention to what’s on (and above) the land you’re buying. Mature trees are lovely for shade and curb appeal, but they come with responsibilities. Large tree roots can invade pipes or undermine your foundation, and overhanging limbs require pruning (or could crash down in a storm). If the property has big trees, factor in maintenance like trimming. Also, check if any trees are partially on a neighbor’s property or along power lines, as you may need permission to remove or trim those.

Equally important are easements – legal rights others might have to use a part of your property. Common easements include utility companies’ right to access lines or pipes in your yard, or a neighbor’s right-of-way to a shared driveway. Easements should be disclosed in the home sale. They’re usually not a big deal, but you need to know about them because they can limit what you can do. For example, if there’s a sewer line easement, you typically can’t build a pool or garage on that section of your lot. Some easements are obvious (like a utility pole), others are “invisible” (underground pipes). The key is to ask for and review the county records. And if you’re unsure, consult your title report or attorney.

9. Renovation Hurdles Are Real

Planning to customize or fix up your new home? Great – just go in prepared. Renovations often take longer and cost more than anticipated (the old rule of adding 10% contingency is there for a reason). Older homes, in particular, can hide surprises behind the walls. It’s common to start a project and discover outdated wiring or plumbing that isn’t up to code and must be upgraded, or find hidden water damage or even asbestos that requires professional remediation. Before you swing that sledgehammer, check what permits you’ll need. Getting permits isn’t just “red tape” – it ensures the work is done safely and legally, and it protects you when you go to resell (unpermitted work can complicate sales or insurance). Also, factor in the inconvenience: renovating your only bathroom, for example, might mean arranging temporary housing or a very close relationship with the gym shower. If you’re in a condo or co-op, there may be additional hurdles like board approval or limited hours when contractors can work.

10. Homeowners Insurance – Don’t Skimp and Know What It Covers

Your lender will require it, and you’ll want it: homeowners insurance protects your investment (and your wallet) from disasters big and small. Be aware of how much it costs and what it does and doesn’t cover. The average home insurance premium in the U.S. is roughly $2,000–$2,400 per year (around $170–$200 a month) for a policy covering a $300,000 home. This can vary widely: if you’re in a region prone to hurricanes, wildfires, or crime, expect higher rates, whereas newer homes with safety features might be cheaper. Importantly, a standard policy covers fire, theft, wind, and so on, but usually does not cover flooding or earthquakes. If your home is in a FEMA flood zone or an area with frequent earthquakes, you’ll need a separate flood or earthquake policy. On the flip side, if you buy in a low-risk area, don’t assume you’re immune; Mother Nature can surprise you. When shopping for insurance, compare coverage options and deductibles, not just price. And once you have a policy, keep an inventory of your valuables and be proactive about home safety (some insurers give discounts for alarm systems or wind-mitigating improvements).

11. Fences and Property Lines – Good Fences Make Good Neighbors

That old saying holds: fences can be both a blessing and a source of neighborly strife. First, know where your property lines are – a survey will show the exact boundaries. If there’s an existing fence, it may or may not sit exactly on the line. Typically, a fence right on the boundary is considered shared, and both neighbors jointly own and maintain it. In many places, neighbors split the cost of repairs for a shared fence, but laws vary (and some neighbors are friendlier than others). If a fence is just inside one side’s property, it legally belongs to that homeowner, and they’re responsible. When you move in, take note of any fence condition issues: wobbly posts, missing boards, etc. Address them early – a falling-down fence can cause disputes or safety issues (especially if you have pets or kids). If you want to build a new fence or replace one, talk to your neighbor about it beforehand. Even if not legally required, it’s courteous and can save headaches. A five-minute chat and mutual agreement can prevent five years of feuding. Also, confirm any underground utilities before digging fence post holes. 

12. Electrical Systems – Check the Wiring (Safety First!)

Homes run on electricity, and you want to be sure your new home’s system is up to the task. Older homes (looking at you, pre-1970s houses) might have outdated wiring that isn’t equipped for today’s appliances and devices. Faulty or old wiring is one of the leading causes of house fires, so this is about safety as much as convenience. When touring a home, peek at the electrical panel – does it look modern or like something Benjamin Franklin wired up? Many old homes had 60-amp or 100-amp service, which may be insufficient if you have central A/C, high-wattage gadgets, etc. Upgrading to a 200-amp service is common in modern homes. During your inspection, the inspector should test outlets and note any issues like ungrounded plugs or dated breaker panels (certain old panel brands are known fire hazards and should be replaced). If problems are found, you can negotiate for fixes or plan to hire an electrician soon after moving in.

13. Foundation and Settling – Look for Warning Signs

The foundation is literally what your house is built on, so it must be in good shape. Over time, houses do settle – a bit of cracking here and there can be normal. But you want to distinguish hairline cosmetic cracks from serious structural issues. Big red flags include cracks in the basement walls or floor that are widening, doors or windows that jam and won’t close properly, and cracks appearing at the corners of doors or windows upstairs. These can indicate the foundation has shifted or is under stress. Also, if floors are significantly sloping or bouncy, that’s worth checking out. During your inspection, if the inspector suspects foundation problems, they’ll recommend a structural engineer evaluation. It’s better to know the extent – some foundation fixes are minor (like adding support posts or epoxy-filling cracks), while others are major (like underpinning the foundation with piers, which can be very costly). On the East Coast, many older homes have stone or brick foundations or shallow basements; some might have water intrusion issues if not properly waterproofed. Always check the basement or crawl space for signs of moisture or past flooding, as chronic water can erode or weaken a foundation. 

14. Plumbing – More Than Just Leaky Faucets

Water is essential in a home – until it’s not where it’s supposed to be. When evaluating a house, consider both the supply plumbing and the drainage. Older homes (pre-1960s) often had galvanized steel pipes for water supply, which corrode and clog over decades. Low water pressure at fixtures could hint at old galvanized pipes that may need replacement. Some very old homes might even have lead pipes (or lead solder in copper pipes) – a health hazard, though most have been updated by now. It’s wise to ask what the pipes are made of: copper, PEX, and PVC are common modern materials. On the drain side, find out if the home is connected to a sewer (common in urban or higher populated areas) or uses a septic system (common in more suburban/rural areas). A sewer line inspection (scoping with a camera) is a smart move for houses older than 30-40 years or those with big trees. Replacing a main sewer line can cost thousands, so you’d rather know beforehand. If the home has a septic tank, you should get the tank inspected and know the maintenance schedule (they need periodic pumping). Also, check for any signs of past water damage or active leaks – stains on ceilings, under sinks, around the water heater. 

15. Don’t Forget the “Hidden” Areas (Attic, Basement, Crawlspace)

When visiting homes, it’s easy to focus on the lovely kitchen or spacious bedrooms. But be sure to check the less glamorous spaces too – the attic, basement, and crawlspace can tell you a lot about a house’s condition. These hidden areas often hide issues (or, hopefully, lack thereof). For example, in the attic, look for signs of roof leaks (stains on wood, wet insulation), ventilation (it shouldn’t feel like a sauna in summer), or even pests (critters often leave droppings up there). Attics can also have mold if there’s poor ventilation or past water intrusion. 

Similarly, basements and crawlspaces can reveal if there’s been water entry (look for water marks on walls or a sump pump, which indicates the area can get water). Mold, mildew smell, or efflorescence (white powdery residue on foundation walls) are clues to moisture issues. Also, home inspectors can’t see through walls – if something is concealed, it might go unnoticed. That’s why paying attention to these accessible but out-of-sight areas is key. 

16. HVAC Systems – Know the Age and Type of Your Heating/Cooling

Your home’s furnace, air conditioner, or heat pump keeps you comfy – and they’re expensive to replace. Always check the HVAC (Heating, Ventilation, and Air Conditioning) details. Ask about the age of the furnace and AC. A well-maintained furnace typically lasts about 15–20 years, and central AC around 12–17 years. If the ones in the home are already near or beyond that age, you should budget for a new system in the not-so-distant future. Also note the fuel type: gas (common in many areas), electric, or oil. On the East Coast, especially in older New England homes, oil heat is still fairly common, meaning there’s an oil storage tank (sometimes in the basement, or even underground) and you have to get oil deliveries. Oil furnaces can be very warm and cozy, but oil prices fluctuate, and tanks need maintenance (an old underground oil tank can be an environmental hazard if it leaks). Many homeowners eventually convert oil systems to gas or electric heat pumps for efficiency and ease. 

17. Roof and Windows – Watch for Age and Efficiency

Two big-ticket items that eventually need replacement are the roof and the windows. Let’s talk roof first: find out what type it is (most likely asphalt shingles) and how old. Standard asphalt shingle roofs last around 20 years for 3-tab shingles and up to ~30 years for architectural shingles. If the roof is nearing the end of its life (or you see curled, cracked, or missing shingles), that’s a significant cost you’ll face. A new roof can easily run five figures, depending on size and materials. Look for signs of past or current leaks – stains on ceilings, or patches in the attic. Also, check if there is one or multiple layers of shingles. If the home has a unique roof (tile, metal, slate), those last longer but are pricey to fix if damaged. It’s perfectly fine to ask the seller or agent, “How old is the roof?” If they don’t know, a home inspector can often estimate.

Now, windows: Windows affect your comfort, energy bills, and noise levels. Modern double-pane windows are far better insulated than old single-pane ones. Many home windows have an average lifespan of around 15–20 years before they start to degrade (seals fail, frames warp). Replacing a house full of windows can be as expensive as a new roof, so it’s a factor. However, you don’t necessarily need to replace old windows unless they’re drafty or non-functional. Check if the windows open and close smoothly, and if they’re caulked well with no obvious gaps. In cold climates, drafty windows can be a big source of heat loss. If the home has newer vinyl or fiberglass windows, great – just verify any warranty transfer. 

18. Property Taxes – Know Your Yearly Obligation

Beyond your mortgage, property taxes will be a significant ongoing cost of homeownership. These taxes fund schools, local government, etc., and they vary widely depending on location. It’s crucial to research the annual property tax bill for the home (your agent can provide this, or it’s on the listing or public record). In some areas, it might be a couple thousand a year; in others, five figures. For instance, states like New Jersey have some of the highest property taxes, with average annual bills around the low five figures. Meanwhile, a similarly priced home in a state like Alabama might have a tax bill under $1,000. Also, note that when a home changes ownership, the assessed value might reset. Some locales have assessment caps or homestead exemptions for owner-occupied homes, which can help. If the seller has owned for decades, the taxes you’ll pay could be higher if the home gets reassessed at a higher value when you buy. 

On the flip side, as a homeowner, you may get to deduct property taxes on your tax returns (subject to federal limits), which softens the blow a bit. Keep in mind that property tax rates can change over time – if the city votes a levy for a new school, your taxes could go up. When budgeting, don’t just look at principal and interest on your loan; include taxes and insurance to calculate your full monthly payment (many mortgages bundle these into escrow). 

19. School District – It Matters, Even If You Don’t Have Kids Yet

If you have young kids or plan to, you’re probably already tuned into checking school ratings and districts. But even if you don’t, you should realize school district can affect resale value and neighborhood vibe. A home in a top-rated school district can be in high demand. Now, “good” school district can be subjective – some may value test scores, others arts or sports programs. You can research metrics like GreatSchools ratings or state report cards, but also consider visiting the schools or talking to neighbors. Another angle: even if you don’t have kids, schools will still affect you via those property taxes we just discussed (a new school bond can raise taxes, for example). For East Coast buyers, note that school quality can vary street by street in some cities due to zoning, so it’s worth confirming exactly which school a house is zoned for, not just assuming from the general area.

20. Commute and Transportation – Test Drive Your Route

Last but definitely not least: your daily commute. When you buy a home, you’re also “buying” a certain commute to work (unless you’re fully remote). Don’t underestimate how much a long or difficult commute can wear you down. In fact, among homeowners with regrets, the number one regret cited was buying a house with a longer commute than they like. To avoid this, simulate your commute during the house-hunting phase. If you tour a home on a Sunday afternoon, that 30-minute drive to downtown might turn into 60+ minutes in rush hour. Try driving from the prospective house to your workplace at 8 AM, or whatever the peak time is, to gauge it. Also consider access to highways or public transit. 

And remember, commute isn’t just work: consider how far the house is from groceries, doctors, your friends and family, etc. Some folks intentionally trade a longer work commute for more space or a cheaper price, which is fine, just be sure you’re okay with that trade-off daily. A trick: quantify it. “If I add 20 minutes each way, that’s ~40 minutes a day, ~3+ hours a week, ~170 hours a year I’m on the road/train.” Is that worth it for you for what you gain in house features? Only you can decide. 

Conclusion

Buying your first home is exciting and a bit overwhelming – there’s so much to learn. But knowledge is power (and savings, and peace of mind). By keeping the above points in mind – from financial perks like tax breaks to practical considerations like maintenance, insurance, and commute – you’ll be better prepared to choose wisely and avoid common pitfalls. 

Homeownership is a journey with new lessons at every turn, but with a little homework and planning, you’ll navigate it like a pro. Welcome to the world of having your own home – it’s one of the best investments and adventures you’ll ever make. Happy homebuying!