Patty Manzi's Tri-Valley Real Estate Blog

There has been much publicity in the media, and no doubt from your local real estate agent, that the time has come that house payments may be less expensive than rent payments.

While this is certainly true in some geographic areas, like right here in the Pleasanton & Tri-Valley areas, there is more to maintaining a household than the actual house payment itself.  Once you make the leap from renter to homeowner, many maintenance issues and expenses that a landlord has taken care of now become the responsibility of the homeowner.  These additional expenses could wipe out any monthly savings you were expecting to gain in your reduced payment.

For example:

• Utilities – as a homeowner these are now solely your responsibility (water, garbage, gas/electric, cable, phone, internet) .
• Property Taxes – in Alameda County, taxes are approximately 1.25% of the purchase price of the home.  ($500,000 home = $6250 year in property taxes, or $520.84 per month).
• HOA Fees – if you buy in a homeowners association, be prepared to pay monthly.  The cost depends on amenities at the complex (pool, common areas, maintenance, etc.)  Do your homework on this!
• Yard maintenance – you now have to buy a lawn mower, edger, blower, tree/shrub trimmer OR hire a gardener
• Pool maintenance – you must consult with an expert at your local pool store on how to maintain your pool, then purchase chlorine, a brush, net, and other chemicals and cleaning supplies OR hire a pool service to maintain your pool.
• General Home Repairs and Appliances – the home you buy might be in great shape when you buy it, but over time, you will need to maintain many things that may have been taken care of by a landlord while you were renting.  New water heater = $1000; New heater = $3000; new air conditioner = $5000 +; new refrigerator = $2500; washer/dryer=$1500, New Roof – $10,000+; along with various other repairs like, leaky faucets, plumbing leaks, plumbing stoppages, electrical issues, painting, flooring, garage doors/openers, leaky windows, roof leaks, chimney cracks, fences & gates,  the list goes on.
• Insurance – if you have a mortgage, you will be required to carry homeowners insurance on your property. The cost of the insurance is based on the replacement value of your home.  For example on my 1800 sf home in Pleasanton, my annual insurance is approximately $700.  If you are in a flood zone, add another $500+ per year.  If you want Earthquake Insurance, add some more $$.

So, when you are planning to make the leap from renting to homeownership, make sure you consider ALL the expenses you will incur, not just the amount of your house payment. Some of the expenses can be tax deductible, but many are not.

As always, it is a good idea to consult with a real estate professional, professional lender, and CPA to help you gather information to assist you in your home buying decision.

Electronic “E-Cycle” Event:  Today starts the weekend E-Cycle event at the Alameda County Fairgrounds. Drop off hours are 9am – 3pm daily today and tomorrow and 9am – 1pm Sunday (5/02).  Almost any type of electronic equipment will be accepted including;  televisions, toner cartridges, florescent bulbs, and batteries.   If you are in doubt about a particular item call (866) 335-3373 to inquire.  On Saturday only the Dublin San Ramon Service District (DSRSD) will be accepting unused prescription medications for disposal.  Mercury thermometers can be disposed of on Saturday only as well.

Meat Sale at Foothill High School:  Foothill Athletic Boosters Club (FAB) will host a meat sale on Saturday and Sunday, May 1 & 2, from 10am – 5pm in the parking lot of Foothill High School , 4375 Foothill Road, Pleasanton.  They will be selling a variety of USDA inspected choice meats (NY steaks, rib eye, filet mignon) and seafood (shrimp and scallop) purchased directly from wholesale suppliers.  Call (925) 989-2036 or visit www.foothillsports.com for more information.

Bark & Brew tonight at Murphy’s Paw:  Drinks and refreshments for you and your canine companion at Yappy Hour tonight from 6-9 p.m. April 30, at Murphy’s Paw, 410 Main St. Enjoy a cocktail-wagging evening in downtown. This event is free, but donations will be accepted for Tri-Valley Animal Rescue. Call 600-8925 or visit www.murphyspaw.com.