Need the right budget to deal with expenses from unexpected home repairs? We explore various ideas on how you can prepare an efficient home maintenance budget.
You’ve realized your dream to become a homeowner and are ready to enjoy the exciting times ahead. Here’s when you’ll expect to live a joyous life, but there might be a few roadblocks along the way. These are the home repairs.
Along with all the advantages of being a homeowner, there are several expenses as well, and home maintenance cost is one of them. And the thing is, most of these expenses are unexpected. So, how do you prepare for such uncertainty?
Answer, to proactively plan your home repair budget, and account for uncertainties.
That’s what we’ll explore. You’ll understand how to organize your budget and manage your home maintenance costs.
Before we talk about how to make your budget, you’d want to know the reason why you need a home repair budget in the first place.
Here’s your answer.
Let’s look at some ways why home repairs are important for homeowners and how having a budget can make things easier.
Remember, you’ve made a significant investment to buy your home. Now is the time to protect it. You can start with time home repairs when they’re needed to keep your home in top condition.
Making a home repair budget ensures you don’t run out of finances and maintain your property value.
If you procrastinate and don’t address the repairs on time, all you’re doing is waiting for the situation to worsen. The later you wait, the higher the maintenance cost you’ll have to bear.
And expensive maintenance isn’t the only thing you need to worry about. Not addressing the home repairs can negatively impact your home and resale value.
Unlike the surprises we get on our birthday, the surprise of an unexpected home maintenance cost might not be as pleasing. When you’ve developed a budget, you can easily deal with the unexpected home maintenance costs that come your way.
You can seamlessly handle the home repairs, instead of worrying about the cost at the last moment.
Pipes leaking, air conditioner not working, water heater malfunctioning, and more, are just some of the small things which can be extremely frustrating. And these are only the items needing regular maintenance. If you add the unexpected ones, it’ll be an even longer list
All these unaddressed maintenance issues can spoil your day-to-day activities. Before that happens, the better option is to have your home repairs done and enjoy your new home to the fullest. Take the first step by developing a home budget and effortlessly manage your finances easier.
Explore: Hire Experienced Home Inspectors Today
After understanding the importance of a home repair budget, it’s time to move to your next question, “How can I create a sustainable home repair budget?”
Seeing all those dollars in your bank account can tempt you to spend them. That’s where you can think about having a different bank account, dedicated to your home repair expenses. It can also give you better tracking as you’ll know the money spent on home repairs and maintenance.
And that’s not all. Another benefit of having an account for your home repairs is when the tax season is near, you can easily view your spending pattern and the home maintenance costs.
There’s a common saying, “The writing’s on the wall.”
When you talk about your home, you can literally see the writing on the wall and what home repairs are required.
Once you know the maintenance needed for your home, start creating your home repair budget accordingly. You can also hire a professional inspector at the time of buying the house.
Generally in the real estate industry, your total home repair budget needs to be 1% of its purchase price. That should be enough to manage your home expenses.
A common negotiation rule is to never take the first offer.
When you’ve figured out the home maintenance cost, you might now need the services of a plumber, electrician, carpenter, and other skilled professionals. That’s where you should use the negotiation rule we told you about.
Reach out to various skilled professionals and ask for their cost of service. Remember, going for the cheapest option and saving your home maintenance cost is not always the right choice. If you hire them and their services don’t meet your expectations, you’ll be wasting your time and money.
Instead, we suggest you go for professionals offering reasonable prices and having a decent name in your neighborhood. To assess how good or not so good the skilled professional is, you can ask the people in your neighborhood.
As we’ve told you throughout, you can only predict the unexpected home maintenance cost. You can’t be certain and be fully prepared for it.
In such a situation, we suggest having an emergency budget as a wiggle room for your existing home repair budget. This can be done to deal with all the necessary expenses that may exceed your budget and avoid causing you a headache.
This can be 20% of your existing home repair budget, which you can have for about 4 to 6 months.
Your emergency fund might even help you deal with the home maintenance issues arising after your inspection and before closing. This emergency fund can also help you stay afloat if your income stream stops or if you lose your job. You can still handle minor expenses.
There might be numerous expenses on your list, but you’ll have some which are more important than others. Especially when an unexpected expense pop’s up on your home maintenance cost, ask yourself the question, “Does it require an immediate fix, or it can wait?” The same goes for all other expenses on the repair list.
This can help you achieve two benefits.
For example, if your water is leaking, and you need to repaint your house, you’d likely want to call a plumber and get a leakage fix. After that, you can call the painter.
If you want something done right, do it yourself
Those words of Napoléon applies to almost all walks of our life. For property maintenance, you don’t always need a professional for the job. There are often tasks that you can do yourself to cut down the home maintenance cost.
Things like fixing a leaky faucet, caulking a window, or installing a ceiling fan can be done yourself, instead of calling for outside support.
That said, be careful with the projects you’re doing yourself. Dangerous activities might make it necessary for you to call the experts.
After every month, review your home maintenance expenses. Keep an eye on the routine and unexpected maintenance items that you’ve spent money on. This can improve your budget and plan better for the following month.
We suggest you don’t perform this review alone. You can have your spouse (if you’re married) alongside you. You both can decide on which expenses were necessary and the ones which can be cut off in the months to come.
Tired of dealing with all the home maintenance costs? If so, purchasing a reliable home warranty is a good idea to have everything covered. But how to find the right home warranty provider?
You can start by asking your friends and family to recommend a renowned home warranty provider and make your search easier. You can also consult with your neighbors. As them if they know a good home warranty provider.
Just like everything, it’s not all about going for the cheapest warranty. If the people in your network vouch for a certain warranty provider, we suggest you go for it.
When you’re buying warranty coverage, here’s what you’d want to know. They don’t cover any abuse or neglect that’s led to the repair being necessary.
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It’s time to efficiently deal with the uncertainties that come with your home repairs and plan for them. Now that you can make your home maintenance budget, there will be fewer surprises coming your way.
Did you know your home maintenance cost depends on your home buying process? If find the right property that meets your preferences and doesn’t need extensive maintenance, HAR is the place for you.
Our inspectors make sure to reduce your home maintenance cost with a thorough assessment of the property before you close the deal.
Having a home repair budget is crucial for homeowners because it helps maintain home value, prevents unpleasant surprises, sustains quality of life, and ensures timely maintenance. A budget allows you to proactively manage home maintenance costs and avoid costly, neglected repairs.
To create an effective home repair budget, consider the following steps:
It's advisable to set aside approximately 20% of your existing home repair budget as an emergency fund, which can cover expenses for about 4 to 6 months. This fund serves as a safety net for unexpected costs and can also help with minor expenses or income disruptions
To find the right home warranty provider, seek recommendations from friends, family, and neighbors. Choose a reputable provider with a track record of reliability. Be aware that home warranties typically do not cover repairs due to abuse or neglect.
Inspectors from HAR conduct thorough assessments of properties before purchase, helping potential buyers identify any existing issues or maintenance needs. This reduces the likelihood of unexpected maintenance costs and assists in making informed property decisions.
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