Perhaps you are planning to buy a home priced at $400K. If we go see a house listed at $400K that has a newer roof, updated HVAC, and no major needed upgrades on the horizon -- that house could work well for you.

But what if we visit a $400K house with a 27-year-old roof and a 22-year-old heat pump? We might discover that the roof is not leaking and the heat pump is working properly -- but both are likely getting close to the end of their functional lives.

If there aren't any current issues with either the roof or heat pump, the seller probably won't want to fix or replace them just because those updates will be needed in a few years. 

Still, those future costs will be real costs that you will have to pay -- and thus it is important to factor them into your home buying plans.

This might mean adjusting your planned purchase price or downpayment amount.

For example...

1. Lower Your Target Purchase Price

If you're looking at a home with some significant expenses in the near future, maybe we ought to be aiming for a purchase price of $380K or $390K instead of $400K -- so you'll have money available in a few years to take care of the roof or heat pump -- or both.

2. Adjust Your Down Payment

Maybe you are still comfortable paying $400K for the house -- but instead of putting $100K down, you should put $80K down, and set aside $20K for those upcoming upgrades. That way, the cash is already available and ready to go when the time comes to make the repairs.

Or Do a Bit of Both

Perhaps we aim to lower the purchase price a bit and hold back a bit of your down payment to account for the upcoming expenses.

Some $400K homes will need very little investment for the foreseeable future. Others will require $10K or more within the first few years of homeownership. We must try to factor these costs in as we determine an offer that you are comfortable with today and that will still leave you in a comfortable spot over the first few years of owning the home.