As a home buyer, home maintenance is key to keeping your property in good condition for years to come, but without a solid plan, those costs can increase quickly.
The most effective way to budget for home maintenance is to secure around 1% to 4% of your home’s value each year (or break it down into monthly amounts) and adjust it according to your home’s age, size and location. Keep this money in a dedicated fund for unexpected repairs.
Whether you budget for home maintenance in Richmond, Virginia, Salisbury, Maryland, or Irvine, California, this Redfin guide explains how to effectively budget your home maintenance budget so you can avoid unexpected future costs.
How to budget for home maintenance
Maintaining your property is important for home buyers, and a clear financial plan will prevent unexpected costs. The rule of thumb is to budget between 1% and 4% of your home’s value each year for maintenance. For example, if your home is worth $600,000, plan to save between $6,000 and $24,000 each year.
Another easy budgeting method is to use the size and area of your home. So if your home is 3,000 square feet, make sure you set aside about $3,000 a year for maintenance costs.
Choose a method you find more manageable for your budget, consider setting up auto-forwarding and consider savings to be less thoughtful.
How much do I need to save every year for home maintenance?
When you know how much you budget for your home maintenance, the “1% rule” is a useful starting point, but take into consideration the age, size, location and materials of your home.
The age and condition of the house
While new homes usually only require daily maintenance costs, older homes often require more frequent and large maintenance, which requires a large allocation in the home maintenance budget.
The size and complexity of the house
Maintenance costs are usually higher in large homes and homes with complex features such as multiple HVAC systems, extensive landscaping, swimming pools, and smart home technology.
Climate and location
If your home is in an area with extreme weather conditions such as heavy snow, excessive rain, or heat waves, these conditions can accelerate wear on your home’s exterior, roof, HVAC system, etc. This means that you will face higher maintenance costs over time and you should plan to budget accordingly.
Types and quality of materials used
Houses built with high quality or low maintenance materials (such as composite decks or metal roofs) may reduce annual maintenance costs compared to houses with cheaper or more maintenance.
Long-term home planning
If you are planning on staying for a long period of time, it may make sense to invest more in preventive maintenance and renewals. For short-term housing or rentals, only essential maintenance costs may be prioritized.
>>Discovery: How long should I live in my house before selling?
Monthly and annual budget
There is no right way to budget for home maintenance. It really depends on what’s best for you. Two general approaches to consider are:
Monthly Budget: Start small and automate. Even $50-100 a month can build cushions over time. Ideal: spreading the cost of large maintenance projects for unexpected repairs of ongoing tasks such as lawn care and air filter changes
Annual Budget: Perfect for planning predictable seasonal tasks and big ticket items. Ideal: HVAC Service Gutter Cleaning Appearance Exterior Painting Major Upgrades such as new appliances and roof replacements
Using a combination of monthly and annual budgeting gives you the flexibility to handle surprise repairs while planning bigger projects ahead of time.
Expected general housing maintenance costs
Planning ahead for home repairs can save a lot of stress (and money) in the future. Prices will vary depending on where you live and how busy the local contractor is, but having a ballpark idea about whether a major exchange will take will be helpful. Prices vary depending on your location and market demand, but here are some general cost ranges to keep in mind.
HVAC Services: Heating and cooling systems usually require professional inspection and cleaning once or twice a year. Expect to pay around $150-300 per visit. Roof repairs: Basic repairs like shingles and minor leaks can cost between $200 and $500, but more damage can reach thousands. Piping fix: Whether it’s a dripping faucet or clogged drain, plumbing issues are most common. Minor repairs usually range from $180 to $600. Water Heater Maintenance or Replacement: Regular flushing and inspections can extend the life of your water heater, but replacement is inevitable. Maintenance costs around $100 a year, but a complete replacement costs between $800 and $1,500. Groove cleaning: Plan cleaning at least twice a year as clogged grooves can lead to flooding. This service usually costs between $50 and $175 per hour to clean the grooves. Pest control: Seasonal pest prevention or removal may be necessary. These costs range from $100 to $600, depending on the type of pest, severity and frequency of service. Deck (Wood/Composite): Power cleaning, sealing, or dyeing a deck usually costs $300-1,000, while deck replacements can be performed between $4,125-11,650. Furnace: Annual furnace maintenance is usually between $100 and $300, while furnace replacements range from $2,500 to $7,500. Windows: Minor window repairs can cost between $100 and $500. Complete replacements for particularly energy-efficient models range from $400 to $1,200 per window. Appliances: Common appliances such as dishwashers, ovens, and refrigerators can cost between $100 and $400 to repair. Exchanges can vary widely from $500 to $3,000, depending on the brand and feature.
Creating a home maintenance checklist
Maintaining your home’s maintenance can feel overwhelming, but checklists can simplify the process. By breaking down tasks by season and prioritization, you reduce the risk of overlooking important maintenance costs and capture small issues before they turn into costly repairs.
monthly
HVAC Filter Change Test Check for Smoke and Signs of Leakage Under Carbon Monoxide Detector Sink
Seasons: spring and autumn)
Inspect the roof and grooves.
Every year
Flash Water Heater Clean Dryer Vents and Exhaust Pipe Inspection Chimneys and Fireplaces (If Applicable) Test and Reset GFCI Outlet Deep Clean Carpets and Flooring Reviews and Home Maintenance Budget Update
as needed
Exterior Paint and Siding Power Wash Driveway, Paneling, Deck Replacement Weather Strip Checks attic and basement for pests and moisture
Other ways to prepare for housing expenses
Beyond regular maintenance, unexpected housing costs can always be shown. Having a dedicated maintenance fund is essential, but here are some additional ways to keep you financially prepared.
Investing in Home Guarantees: Home Guarantees cover repairs or replacements of major systems and appliances due to normal wear and tear, reducing out-of-pocket costs. Check your homeowner’s insurance: Make sure your coverage reflects current home value and local risks (for example, floods, earthquakes). Add riders to high value items or certain private listing risks. Planning a long-term replacement: Beware of the age of the home components (electrical appliances, roofs, HVAC, water heater) and save for a final replacement. Keeps a list of repairs and upgrades performed. Documenting past work and future needs will help you prioritize spending and avoid surprising costs.
>>Read: Family Guarantee vs. Family Insurance: Do you need both?
Final Thoughts: Stay First and Save More
Homeowners have many responsibilities, but planning ahead can make all the difference. You will be equipped with equipment to handle your way by putting your funds aside and following a maintenance checklist to prepare for both your daily and unexpected costs.
FAQS: How to budget for home maintenance
1. What if I can’t afford to save the recommended amount now?
A best practice for budgeting is to start with things that save you, even if it’s small. In the meantime, look for low-cost or DIY ways to keep your home as you save, save and increase contributions, as much as your budget allows.
2. Should I increase my maintenance budget as my home gets older?
yes. As your system gets older, it may even require more frequent repairs or replacements. It is wise to reassess your budget every few years and gradually increase it based on the condition of your home.
3. Is household maintenance tax deductible?
Regular maintenance for general residents is not usually deductible. However, if you rent a portion of your home or have a home office, some maintenance costs associated with those areas may be tax-deductible.
4. What is the difference between maintenance and home improvement?
Maintenance involves storing things that already exist in your home to prevent wear and tear. Meanwhile, improvements will add value and functionality to your home, such as finishing the basement and installing solar panels. It’s best to budget both of these apart from each other.
5. How can I track maintenance tasks and costs over time?
Consider using the Home Maintenance app or create a spreadsheet to record your tasks, due dates, and receipts. This makes budget planning easier, costs can be tracked, and records can be kept for resale and guarantee purposes.
