The desire to purchase a new home automatically creates a laundry list of tasks and decisions you must make to make your dream a reality. Like it or not, finances are (or should be) a primary concern for all home buyers. Whether you’re relocating within the state or are buying a home for the first time in South Carolina, the cost of living is something to consider when determining if you can afford a specific house on the market.
Many people are familiar with the phrase “cost of living” without fully understanding what it means. In relation to real estate sales, there are six separate factors that are typically included when calculating the cost of living in a particular South Carolina region.
Think about these issues when calculating cost of living for buying a home
While additional factors may be relevant to determining the cost of living in a specific South Carolina community, the following list provides a basic overview of priority issues to consider when calculating how much you can spend on a house:
- Education—does anyone in the household attend a private school?
- Health care—do you have insurance? What are your premium costs?
- Food—this is a major cost-of-living issue and varies greatly throughout the state.
- Transportation—do you have a company vehicle, or do you cover travel expenses for commuting to and from work each day?
- Housing—this includes everything from the cost of a home for sale to mortgage or rental expenses, property taxes, maintenance and more.
Once you estimate what your expenses will be in a particular community, you can compare it to other regions to determine how much “bang” you’ll get “for a buck” in a specific area.
Cost of living affects home-purchase power
You might find that you cannot afford a house in one neighborhood (due to the cost of living) but can afford a similar home in the surrounding region. It’s a mistake to sign a real estate deal without calculating the cost of living in the area to help determine if you can afford the purchase.
South Carolina’s cost of living is lower than the national average
You’ll be glad to know that the cost of buying a home in South Carolina is typically more than 20% less than average home costs throughout the country. Health care and transportation costs are also lower here than the national average. However, you might pay more for food and utilities if you buy a home in the Palmetto state than you might in Utah (which has the lowest utility rate) or Wisconsin, where food costs less.
You can find a home for sale that fits your budget by discussing your needs with a real estate agent who knows the area—or, better yet, lives in the same community. Creating a list of must-haves and budget needs helps streamline your home search and ensures that you will strike a deal you can afford.