Home repairs can be a major expense, but with a little planning and smart spending habits, you can save money on those unexpected costs. A home warranty company can help you with decisions on home repairs. But without a warranty, here are six tips to help you get started.
Avoiding putting home repair costs on credit cards should be your first priority. A personal loan or home equity line of credit are much better options.
Keep a regular maintenance schedule
Keeping up with routine maintenance can prevent small problems from becoming much bigger issues. A leaky pipe or a chipped section of paint could lead to significant, costly repairs if left unattended.
Homeowners can save money on maintenance fees by staying up to date with the schedule for home system inspections, HVAC tune-ups and other seasonal projects. It is also helpful to keep a record of all completed tasks, as well as a list of priority projects that need to be addressed soon.
DIYers can save even more by learning basic repair skills. Watching videos on YouTube or checking out instructional books can help homeowners learn how to make simple fixes, such as snaking drains or redoing a patch of chipped paint.
DIY when you can
It’s no secret that hiring a professional to do home repairs or improvements can cost thousands of dollars. However, many homeowners can save hundreds by doing it themselves. Of course, you need to choose projects that are within your skill set. Otherwise, you’ll end up spending even more by screwing up and having to re-do the work.
For example, you can learn to fix simple plumbing leaks or paint your own walls instead of paying a contractor to do it for you. The key is to plan ahead and establish a budget for the project. This will help you stay on track and avoid surprises that can wreak havoc on your finances. To further minimize expenses, shop around and use quality products. Lastly, consider financing your project with a low-interest credit card.
Shop around
When you’re planning to tackle a home repair project, it’s important to know what the average costs are. This will help you decide how you want to pay for those expenses. For example, a credit card might make sense for smaller repairs, while a personal loan may be more suitable for major renovations.
Many experts recommend saving between 1% and 4% of your home’s purchase price each year for home repairs. However, this method doesn’t take into account that your home’s age and square footage play a significant role in its maintenance
costs.
Use quality products
Using cheap or low-quality materials and products for home repairs may save you money upfront, but it will cost you more in the long run. Inevitably, these lower quality solutions will require more frequent repairs and replacements than higher quality alternatives.
Invest in sustainable home repair solutions that will not only help you save money but also reduce your environmental impact. For example, installing solar panels is an affordable alternative to traditional energy sources and can lead to significant savings on your electricity bills.
Remember that it is important to be realistic about your budget and set achievable savings goals. Cutting too many expenses can strain your finances and compromise the quality of your home repairs. Make sure to monitor your progress on a regular basis and adjust your savings plan accordingly.
Plan for repairs in advance
Home repair costs can be a real budget buster for new homeowners. Unlike renters, homeowners are responsible for almost all of their repair and maintenance costs (unless the damage was caused by something covered by homeowner’s insurance). Consequently, it is important to plan ahead by setting aside a significant amount of money to cover these expenses.
One of the best ways to do this is by starting to save as soon as possible. Ideally, you should try to set aside around $100 each month for these costs.
Another thing that you can do is to look for a reputable contractor that offers financing options. This way, you can spread the cost of your repairs over time and not be caught off guard by unexpected expenses later on.
