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Shopping for your first house can be delightful. You get to immerse yourself in listing photos, tour promising properties, and envision your new life. But submitting a purchase offer and going through with the transaction? That can be nerve-racking.
One of the best ways to feel confident that the house you buy will be an oasis of comfort and security is to do some serious due diligence beyond the standard process for buying your first home. Here are some important things to consider that may not occur to you as someone who hasn’t owned a house before.
Insurability
Before committing to a property, investigate whether it could be challenging or costly to insure. The market for homeowners insurance can be chaotic at times, especially in places like California and Florida where insurers find themselves repeatedly paying out huge sums.
Properties that have premiums you can afford today can become prohibitively expensive to insure after a nearby disaster. You may not be able to get out of this problem by selling; your pool of potential buyers will be limited to those who can afford the premiums or are willing to risk going uninsured. Keep this in mind before buying a house in an area prone to wildfires or hurricanes.
Even if your house isn’t in an area directly affected by a disaster, you’ll pay for the losses indirectly; insurance is all about sharing risk with others. Your budget needs to be able to accommodate annual premium increases of hundreds of dollars.
In some cases, your only option may be to buy a policy from your state’s insurer of last resort or a nonadmitted carrier. Such coverage tends to have more limitations and higher premiums than standard, state-regulated policies.
Premium increases
The national average homeowners insurance premium increase for mortgaged single-family homes was 14 percent ($276) in 2024, according to ICE’s March 2025 Mortgage Monitor. Premiums increased by 61 percent ($872) over the past five years. Once you own a home, you won’t want to be complacent about your insurance.
“Homeowners tend to forget about these policies because [premiums are] typically paid out of their escrow account,” said Katie Wethman, managing director of My Move DMV Real Estate Professionals, serving Northern Virginia and Washington, D.C. “But with prices going up so much, it pays to keep an eye on it and be proactive.”
Homeowners insurance can vary widely in cost from one insurer to another, even for similar coverage.
“It's best to work with a broker who can shop multiple big carriers and also discuss with you some options that can keep costs lower where it makes sense — for example, electing a higher deductible,” Wethman said.
This is also a good point to check your own life insurance and disability insurance coverage. Such protection can help make sure partners or family won’t be left in the lurch should something happen to you.
Flood insurance and more
Even in a stable insurance market, natural disaster risks in your area might require extra coverage or separate, higher deductibles. For example:
● If your house is in a FEMA-designated high-risk flood zone anywhere in the country, your lender will require you to carry flood insurance.
● If your house is downhill from the wildland-urban interface, you might want to buy flood insurance even if it’s not required. It protects against losses from destructive mudflows that can start in wildfire burn scars when it rains — a risk not covered by homeowners insurance.
● In many states, homeowners are subject to separate hurricane and/or windstorm and hail deductibles or must buy an additional policy to cover these risks.
Costly overhauls
Depending on when the house was built and what’s been done to it since, you might face expensive repairs.
Roofing. “Here, it seems like roofs are the ‘gotcha’ item,” said Cari McGee, a Realtor with the Cari McGee Real Estate Team serving Kennewick and the Tri-Cities area of Washington state. “Almost all inspections will show a roof issue of some kind.”
“I don't know if it's our windy days or the sun in the summer, but oftentimes, roofs here should be replaced before the end of the 20- or 30-year standard lifespan,” she said. “That's easily a $15,000, often more, fix. Unless my client is buying new construction, I advise them to start putting money into a roof fund the year they move in: $25 a week, over a year, is $1,300, and so in 10 years, you've almost got what you need to replace the roof, if necessary.”
Electrical. A home built before 1950 may have knob-and-tube wiring, which means the entire home’s wiring may need replacement — at a cost of $10,000 or more — to reduce the risk of an electrical fire or even to be insurable. For an issue like this that could make the home difficult to sell, you may be able to negotiate a price reduction or closing cost credit with the seller.
With or without knob-and-tube wiring, the home’s electrical panel may need replacement if it can only service 100 amps. With the number of devices modern homes use, 200-amp panels have become standard and are often essential if you want to install solar panels or an electric vehicle charger. Replacement can cost several thousand dollars.
Plumbing. Before the 1970s, a home’s plumbing system was often composed of galvanized steel pipes, which are prone to corrosion, reduced water pressure, and leaks. Replacing these pipes with copper, PVC, or PEX can also be a several-thousand-dollar job.
“A thorough home inspection can help you prepare for items that might be at the end of their useful lives or are already showing signs of a problem,” Wethman said. “Most home inspectors will give you a general idea of what repairs will cost, as well as which items might be a DIY candidate vs. a hire-a-professional requirement.”
Windows. Old windows don’t necessarily require replacement, but newer windows offer better protection against extreme weather, reduced exposure to outdoor sounds, and superior energy efficiency (meaning they can reduce your heating and cooling bills). They can also be more secure and easier to operate.
Replacing even a single window with a new, energy-efficient one can cost $1,000 or more. Cost varies significantly by window size, features, and your location. However, energy-efficiency tax credits can save you 30 percent, up to an annual limit of $600, through 2032. (Related: How to make sure your home improvement pays off)
Utilities, maintenance, and minor repairs
Think carefully about ongoing costs, too.
“Many home buyers underestimate the cost of utilities, and since many are upgrading from a small rental to a larger place, that can make a big difference in the monthly budget,” Wethman said. “They also underestimate the costs of small repairs that just need to happen in the course of homeownership. A leaky faucet can end up being a $300 expense if you aren't handy.”
It is important to budget for the maintenance expenses of owning a house. This can include:
● HVAC filters
● Other HVAC maintenance
● Lawn care
● Fertilizer and other supplies
● Ornamental plants
● Pest control
● Gutter cleaning
● Trash pickup
These are the type of expenses that you may not have paid directly as a renter or condo owner. (Learn more: Owning vs. renting: A guide for renters considering homeownership)
Easements
A big financial advantage of buying a house is that you usually own the land the house sits on. But just because you own the land doesn’t mean you’ll have the exclusive right to use it. Many properties have easements that grant someone else legal access for specific purposes.
For example, if you have a power pole in your backyard, the electric company will have the right to enter your backyard to inspect, maintain, or replace the pole. They will also be allowed to prune (and sometimes remove) any trees in your yard that threaten power line safety, and you’ll need to make careful choices when planting new trees.
If interruptions and restrictions like these will bother you, look for a property with no existing or planned easements. Information about easements may be obvious or available from the existing owner; it should also turn up during a title search once you’re under contract on a property. You may be able to find it earlier in the process — or confirm what the existing owner or your real estate agent tells you — by checking with the county land records office or city hall.
Existing noise and new developments
You won’t have much control over the use of nearby land, so do your best to scope out what you’re getting into. For example:
● A house near a freeway, major thoroughfare, police station, fire station, hospital, school, or train tracks may mean living with regular traffic noise, sirens, vibrations, light pollution, or helicopter sounds.
● A peaceful vacant lot that’s used as a seasonal pumpkin patch and Christmas tree lot could become a townhome development that obstructs your mountain view and increases traffic.
Visit any property you’re considering at different times of day and different days of the week to get a better idea of what that location is like. Many external irritations aren’t immediately apparent.
“I'll never forget trying to put my first baby down for a nap, and not being successful due to the local transit line's bus stop that was at the corner where we lived,” McGee said. “And because his room was in the corner of the house right by the bus stop, the sounds of the bus were very noticeable.”
Here’s another way to learn more about a property: Local planning commission, neighborhood council, and city council meeting agendas are often available online; sometimes entire recorded meetings are available. Learning about the issues they’ve discussed over the past year or two may give you a better idea of what you’re signing up for if you buy a house in that jurisdiction. You may also be able to obtain the latest general plan for the city or county to see how local leaders envision future development.
Preparing for homeownership
Buying a house is a big deal. The more you educate yourself, the better prepared you’ll be to choose a house that lives up to your hopes and dreams and doesn’t come with unwanted surprises after you move in.
Buying a house is also a major financial commitment. If you’d like an expert opinion on how prepared you are, reach out to a MassMutual financial professional. They can help you see the big picture, point out risks and opportunities you may not have considered, and help you build a financial plan to help you move forward with confidence.
Discover more from MassMutual…
What to consider when buying your first home
Unmarried couple buying a house? Consider the pros and cons
Behind on life’s milestones? Maybe not so much
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