Utility bills … are they important when considering which home to buy?

Occasionally, I’ll have the agents that are representing buyers, call me to ask what the average monthly utility bills are for a home I have listed. I’ve never quite understood why buyers ask that question because there are SO-O-O many variables to what a family can expect to spend.

• How many are in the family?
• How many daily showers, dishwasher loads, laundry loads do they do?
• How hot or cold do they keep the temp of the home?
• Do they adjust the thermostat for the times they’re not in the home (away at work) or is someone in the home all day and do they keep the setting constant?
• Do they cook or bake a lot and use the range, or are they nukers?

With the increases we’ve been experiencing … or are projected to experience this coming winter … whenever I have to get this info from my sellers, I tend to compare it to my own bills to see if I need to work on my own home’s efficiency.

Recently I obtained the utility info for a VERY LARGE home (5190 sq ft) I have listed. The home has 3 heating/cooling units/zones (using propane for the heat), plus electric baseboard heat in a couple rooms, and there is a wood stove. The wood for the stove comes from a general clean-up of fallen or dead trees on the 3 wooded acres that surround the home. Due to the 2-story room the stove is located in, it sends heat to two floors. It’s a custom home so the windows are low-e Anderson windows – and there are LOTS of them because the owners wanted a great view of the wooded ravine.

Generally, my thoughts were that the utility bills for this home would be quite high. Boy, was I surprised when I received their utility info. On a $/sq ft basis, my small 2052 sq ft mass-builder home’s monthly average utility costs run 48% more than this more efficient custom home. So where’s the difference?

• Their propane expense is half per sq ft versus my Columbia Gas natural gas cost. Of course, they also have free wood to use for the stove, which brings their propane usage down. Their higher quality windows also would make a substantial difference.
• The electric cost per sq ft was very similar. Mine was 2¢/sq ft and theirs was 1.8¢/sq ft.
• On a per-person basis my water/sewer/trash averaged $34.56 per month. Theirs averaged $31 per person because they don’t have to pay sewer fees and can negotiate trash fees. I have city services so I can’t negotiate anything!
• I also must pay a city income tax and an HOA fee - they don’t pay either of those since the home is in a township*.

If a buyer is considering one home vs another in the same subdivision, there may not be much difference because the builder and the building materials are apt to be similar. However, if a buyer is considering a tract home in a subdivision to an outlying custom home or a home in a township, it’s probably worthwhile to consider the TOTAL expenses – not just the utility bills. Another routine expense that buyers might consider is the cost of home insurance. Insurers may have different rates based on the access to fire hydrants (or water to pump) and perhaps whether there is a city, township or volunteer fire department.

So if you’re closely watching your budget, do your homework so you can make a good buying decision – without surprises later.Of course, if money is no object then buy whatever suits your fancy! BTW, if you fall into this latter category, would you like to adopt me?

* While townships may not have an income tax, a person may still pay an income tax based on where their income is earned, if earned in a location where an income tax is charged.

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