When you’re shopping for a home, you’re likely focused on the list price and down payment. But don’t overlook utility bills. From electricity and water to internet and trash service, these monthly costs can add up fast, and vary a lot depending on the home.
Whether you’re eyeing a home in El Paso, TX or New Haven, CT, understanding what utilities might cost can help you budget smart from the start. This Redfin guide covers how to estimate utility costs, what factors influence them, and what the typical homeowner pays each month.
Key takeaways
- The average monthly cost for the six most common utilities is about $523.
- Get utility estimates early from your agent, the seller, or local providers..
- For the top 6 household utilities, the average cost is $523/month.
- Costs vary based on location, home size, usage habits, and climate.
Table of contents
3 ways to estimate utility costs
If you’re looking to get a general idea of how much you’ll spend per month on utilities in your new home, there are three main ways to obtain this information:
1. Ask your real estate agent
Real estate agents can help estimate utility costs by reviewing historical data from the seller’s agent or annual utility costs of comparables. If you’re looking to estimate utility costs for a rental home or apartment, you can ask a landlord or apartment manager instead.
2. Ask the current resident
If possible, ask the current homeowner what they typically pay each month. You don’t need exact bills – even a ballpark range can be helpful. “The most reliable way to estimate monthly utility expenses before purchasing a home is to request a 12-month usage history from the current owner.” says Kelly Bedrich, the cofounder of ElectricityPlans.com, a comparison site for electricity in states where energy choice is deregulated. “While this will not account for differences like thermostat settings or number of occupants, it’s the best way to approximate your usage. “
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