Avoid Debt and Save Money with Home Maintenance & Repair

Steve — Tue, 29 Jan 2008 23:54:00 GMT

hello all,

So often when I conduct home inspections for home buyers, the buyer is concerned or worried about the prospect of any expenditure for a home repair. While their concerns are definitely warranted, I like to soothe their worries (somewhat) and help them to think about homes a lot like the way most of us think about cars (well everyone except my girlfriend anyway, who I can't get to check the oil to save her life or her car for that matter). And that is....

Maintaining a car to keep it functioning properly requires normal maintenance ie: changing oil,filters,spark plugs, and tune ups ect. Sure a home has different components than a car, but it must be maintained to function properly and maintenance can even extend the serviceable life of mechanical components---saving you money. For example, a little trick I learned to lengthen the life of my hot water heater is to:

Every month drain a few gallons of water out of the tank from the service valve (at the bottom) into a bucket. This gets rid of sediment and build-up. This little trick works and has made my tank last much longer than my last one, which stopped working after only 4 years but that is a whole other story....

My point is just like a car, aside from all of the shiny, pretty aspects like pergo floors or corian counter tops, a house consists of many systems and components. Think about it. You've got the exterior which includes the foundation structure, siding, roof. etc...

You've also got systems like heating, cooling, and plumbing and electrical. All of these systems and components have a statistical life span and will eventually wear out at some point in time. Fortunately, they don't usually tend to break all at once.

The rule of thumb that I've always gone by is that you should save at least 1 percent of the value of the property per year for home repairs, updates, etc. So if you have a $250,000 home that means putting aside $2500 a year to maintain your home.

I know that is not always an easy feat for most people in our debt ridden society and current state of the economy. But consider skipping the latte, dining out or staying in a renting a movie so you can fund your home maintenance and make your house more appealing when its time for you to put it on the market.

Recently, an acquaintance of mine spent almost an arm and a leg on a 20 year old house in a popular Chicago suburb. And guess what after only 2 years in the home, windows need replacing and the roof is starting to show signs of wear. However, it is a good house. And because they were smart and had a home inspection, they knew some of the issues with the home going in and have been planning for them.

So the moral of the story is:

1-Do regular maintenance

2-Be realistic about the types of expenses you may need to incur to keep your home in good shape. A home inspection won't always reveal every little thing, but will most likely ensure you aren't surprised by a major problem

3-The 1 percent rule is a good rule and will help you to plan for repair expenses and avoid going into debt to fix "surprises"

All homes will have problems at some time or another The trick is to be prepared. So, here is a link to a very comprehensive report done on the typical life spans of major house components by the National Association of Home Builders NAHB Life Span Report

I hope you refer to it when planning the use of your 1% fund.

-Steve

Northern Illinois Real Estate

Avoid Debt and Save Money with Home Maintenance & Repair