Owning a home is a great investment, but it can come with hidden costs. While there are obvious expenses like mortgages and property taxes, homeowners can face expensive foundation issues, roof repairs, water damage, heating and air conditioning issues, electrical, plumbing, mold removal, and more. There is a gender.
According to Angi’s State of Home Spending Report, homeowners spend an average of $13,667 on emergency repairs, maintenance, and improvements, which can be a major financial pain.
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It’s recommended that you save 1% to 4% of your home’s value each year for unforeseen problems, but that’s not always achievable, especially with high living costs and inflation. If you’re dealing with an expensive repair that’s out of your reach, there’s no need to panic.
According to real estate agents interviewed by GOBankingRates, here are six things you should do right now to avoid draining your savings on home repairs.
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If you’re looking to sell your home but know it needs expensive repairs, consider an interest-free loan with your real estate agent. It may offer a way to pay for all necessary maintenance and avoid taking out a high-interest loan.
“In most cases, unless the home is being demolished, the buyer will conduct a thorough inspection of the home with a qualified inspector, checking every corner of the property, from the foundation to electrical boxes to any signs of mold. It’s leaking,” said Lauren Hurwitz, a licensed real estate agent in Westchester County, New York.
“If you know there are things in your home that could be improved, but you don’t want or can’t commit the money to fix the problems before you put your home on the market, consider working with an agent. Please offer assistance,” she explained.
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Hurwitz, who works with Compass, a real estate company that combines top agents and technology to create the ideal customer experience, has a program that can help.
“Compass Concierge offers interest-free loans to help sellers pay for a variety of home improvements, including appearance, structure, and safety. With this loan, sellers can purchase new appliances, , can pay for things like painting, replacing light fixtures, roofing, landscaping, and even post-inspection repairs, Hurwitz said.
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Interest-free loans are already big savings, but Compass Concierge offers sellers even more peace of mind with repayment plans.
“Costs are paid to Compass at closing, so sellers don’t have to worry about putting money into their own pockets to make their home really shine before buyers or inspectors come knocking.” she said.
We all want a beautiful home that reflects our personal style, but dealing with potentially dangerous problems comes before fun projects around the house. The good news is that if it’s not a crisis, “you can quickly (and safely!) put a Band-Aid on it while you make plans,” says Christie’s International Real Estate (Southern California). )’s real estate manager Yawar Charlie said.
“Let’s be real: safety always trumps style,” he said. “You still don’t have to sacrifice the safety of your home or peace of mind for a perfect Pinterest-worthy moment.”
However, Charlie stressed that if it is life-threatening or serious, it needs to be addressed immediately and there is no temporary solution.
If you need major repairs and your bank account isn’t prepared for the big hit, consider financing.
According to Charlie, “Many companies spread out payments, because who says you have to pay for a new roof all at once?”
He also suggested inspecting your home’s assets for quick resolution.
“Check out your home equity line of credit (HELOC). It can feel like a financial lifeline when repairs occur without notice,” Charlie said. “Remember, don’t make any purchases with that line of credit. Keep your eye on the prize!”
Another effective way to pay for home improvements is through government assistance.
“There are government programs that can provide financial relief for critical repairs, such as HUD’s Title I Real Estate Improvement Loan Program,” Charlie explained. “You’d be surprised how many local programs and grants are out there, especially when it comes to major fixes. You’re paying taxes anyway, so you can use some of that money to keep your home in tip-top shape. What do you think?”
Hiring contractors and professionals to repair your home can be expensive, but Charlie suggested “smart” ways to avoid those costs.
“Can’t afford to hire a contractor? Consider a community repair group or a barter service with a neighbor who’s always tinkering in their garage. For smaller jobs, roll up your sleeves and try DIY. Please, be confident in what you’re doing. This is your home, not a weekend arts and crafts project.
One way to avoid the shock of major repairs is to plan for and stay on top of small issues that can lead to big problems.
“Repairs are like a surprise party, you never know when it’s going to happen,” Charlie said. “That’s why testing can be your secret weapon. Know what’s urgent and what’s not, and start saving for future fixes before problems occur.”
But to stay ahead of the curve, instead of desperately hiring someone at the last minute who might not be the best fit for the job, you can raise your emergency funds and figure out who you want to hire ahead of time. , you can prepare.
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This article originally appeared on GOBankingRates.com: I’m a Realtor: 6 Things to Do Immediately If You Can’t Afford to Fix Your Home
