Remind Your Clients: Budget for Home Repairs

December 15, 2015

Fifty-seven percent of recent home buyers say they encountered unexpected home projects within first 12 months of moving into their new home, according to a new study by HomeAdvisor’s True Cost Guide. For more than three-fourths of buyers it was an emergency home repair too, the survey showed.

The average home owner spends 1 percent of their home purchase price on unforeseen repairs and emergencies each year.

The most common emergency repairs reported by home owners were from broken heating and cooling systems, water leaks, and blocked pipes. The costs ranged from $199 to repair a clogged drain to $2,068 to fix water damage, according to the study. Home owners reported spending the most following move in on landscape projects. For those tackling large-scale landscaping projects, the owners spent an average of $12,850 on outdoor projects, such as in installing a wood fence, adding a deck, or hiring a lawn care professional, according to HomeAdvisor’s True Cost Guide.

To avoid financial surprises, Marianne Cusato, a designer and special housing advisor to HomeAdvisor, suggests educating buyers on the lifespan and warranty of elements in the home, such as appliances, mechanical features, roofs, and windows. Also, a home inspection prior to purchase may help buyers prepare for some costs of repairs.

Source: “Preparing Buyers for the True Costs of Home Ownership,” BUILDER (July 1, 2015)