Home repairs require a delicate balance when it comes to financing. You have a list of immediate needs, such as fixing leaky windows or repairing a broken fence. Then you have the upgrades of your dreams, such as installing a pool heater or furnishing your basement. The challenge is often not deciding what to do, but when to do it.
You’ll need to make sure that you choose the best time to make improvements or repairs while keeping your finances stable. If you plan and modify your home budget, you probably won’t have to worry about repairs or improvements. Here are some tips on how to prepare for a major home repair. Repair nail holes and minor dents and dents on drywall.
If you see discoloration, such as water damage that has been repaired, repaint your walls. Painting is one of the cheapest and easiest ways to renovate a room. Massachusetts-based real estate agent Bill Gassett recommends removing the wallpaper, as buyers are unlikely to share your style. While an older home may have a lower initial cost, the additional repairs and maintenance that are needed can really add up.
They’re an important part of your home’s defense against insects, so when window screens catch on, repair them. In addition to performing routine maintenance when you’re in a home, one of the best ways to avoid unexpected repairs is to perform a proper home inspection before closing the deal on a new home. Most financial advisors recommend that you spend between one and four percent of your income each year to home repairs and maintenance. The most important thing to remember is that doing repairs the right way will affect the total value of your home, so plan carefully.
With the right financial planning and knowing what improvements your home needs, you can create a calendar to manage repairs. If any of the recommended home repairs and maintenance are beyond your skill level or lead to more complicated projects, consider hiring a professional to help you. However, if you’re already in your home and are facing a major repair that you can’t afford, there are still options for you. One way to start saving for home repair costs is by identifying potential problems that may arise.
You can cover small tasks as they arise and save for a major improvement by setting aside a few hundred dollars a month for home repairs. Buyers are often looking for homes that require few repairs, and no one wants a deal to fail because the home inspector found a problem that buyers can’t handle. To begin with, Collins recommends evaluating the repair and determining if it’s a self-made solution or if you need professional services. Some people prefer to store their savings for home repairs in a specific savings account in case they need access to it.
If you have repair needs in your home that aren’t immediate, try to get an idea in advance of how much it will cost, so you’ll have more time to save, research contractors and find the best price. Collins also recommends, as do many financial experts, that homeowners save and set aside 1 to 3 percent of the purchase price of their home each year for home maintenance and repairs.
