How to reduce expenditures on repairs and maintenance: A guide for homeowners
Some costs associated with homeownership can frequently be unpredictably high. According to a recent research by insurance company Hippo, homeowners spent an average of $6,000 on upkeep and repairs last year. According to a different survey by the home services company Angi, equivalent 2022 expenditures for maintenance totaled $2,467, and home emergencies, such as unanticipated repairs, cost an average of $1,953 ($4,420 overall).
Whatever you decide to spend on such things, if they come as a surprise, they might completely wreck a household's budget. While certain expenditures can be unforeseen, there are steps you can do to minimize their impact, according to experts.
Aim to save at least 1% of the value of your house
Angie Hicks, chief customer officer of Angi, stated that the standard recommendation is to set aside 1% to 3% of your house's purchase price each year to pay for a combination of home upkeep, enhancements, and repairs. Hicks confirmed that would be enough for all procedures.
According to Redfin, the median selling price of a property was $393,756 as of November. That's $3,937 for one percent of that amount.
Repair costs might be decreased by maintenance costs
Although it's a good idea to have money set aside, upkeep can help you spend less on unplanned repairs, according to Hicks.
It's encouraging to see that maintenance tasks are receiving more attention, according to Hicks. People start completing more maintenance-type work that they would have previously ignored when there are inflationary pressures.
Additionally, certain tasks may frequently be completed by the homeowner, such as remembering to routinely replace the furnace filter to maintain the system's performance.
According to the Hippo research, which was based on a survey of nearly 1,000 homeowners, 65% of respondents who experienced a problem with their property in the previous year felt that preventative maintenance would have been able to stop it.
As an illustration, Hicks suggested performing a visual examination of your roof a few times a year to make sure you don't notice any missing or curled shingles that necessitate a repair before the issue develops and you end up with significant water damage. Hicks remarked, you don't want a leak. The deadliest enemy of your home is water.
The price of a necessary roofing project depends on the circumstances, but thisoldhouse.com estimates that the average cost is $1,000. According to Angi, the typical amount spent for water damage repairs is $3,342.
Observe and maintain the systems in your home
According to Courtney Klosterman, a home insights specialist at Hippo, it's important to have annual maintenance performed on your major systems, such as heating and cooling.
Additionally, Klosterman advised that you learn the basics of the important systems in your house, such as the plumbing, electrical, and main appliances, so you can check them for signs of deterioration over time.
You might wish to keep a record of how long your home's key appliances will endure. For instance, according to home appliance manufacturer Carrier, furnaces typically have a lifespan of 15 to 20 years with proper maintenance. If yours is getting close to that age, you'll be aware of the need to be financially prepared to replace or repair it rather than being caught off guard by its demise.
According to Klosterman, unforeseen expenditures associated with a property tend to burden homeowners more.
She said that when anything goes wrong, it causes a surge of dread and anxiety about what can go wrong next. A proactive approach to home care may save money, time, and worry in addition to the latter two.