+1. In our experience as first-time homebuyers, we didn't factor in maintenance costs, and it's been a bit of a shock. But the 1% minimum rule seems to be bearing out for us.
One of the reasons we jumped on this house was that it was only 10 yrs old at the time. In our fairly high COL area, where our fairly modest house cost $400K, we were looking at some major fixer-uppers, and this one blew the competition away because it looked like the work needed was mostly cosmetic; everything was structurally sound.
Despite that, though, we soon realized that 10 yrs is about the lifespan for a lot of things. We've spent 5 years replacing appliances, put in a wood stove and worked on the property (and painted, and replaced cosmetic things like light fixtures, faucets, etc), and had to do some work on our septic system. Then everything was 15 yrs old, so next was the hot water heater, and now we need a new roof, deck, kitchen countertops, and flooring.
Some of these things weren'/aren'tt NEEDS, and we've defintely been prioritizing. Lots of things don't cost $400/month. But some things cost $5000-10000, which means that money needs to be saved up in that home maintenance fund. And, of course, emergencies do come up too.
As waltworks said, some of this is just to keep in mind as you look at what you can afford in your price range; newer or renovated homes have more flexible needs, and 1% should work. But a fixer-upper can be a huge money pit.
As for the varied costs, while it's true that some things like appliances might be priced similarly across the country, installation and servicing costs are definitely going to be higher in the higher COL area. Keep in mind that our 1% budget is entirely based on the fact that DH is a carpenter and comfortable with plumbing and electrics. He does ALL regular maintenance, most repairs, all installation, and also knows how to do the research and use industry contacts to find the best deals. If that weren't the case, our budget would need to be a lot bigger.
Homeownership is wonderful in many ways, and I have few regrets. But it ain't cheap! :)