How to Prepare for Unexpected Home Repairs
How to Prepare for Unexpected Home
One of the most challenging aspects
of homeownership is the unexpected added costs. When calculating monthly
expenses to maintain a home, it's important to include not only everyday costs
such as mortgage payments, utilities and property taxes, but also to factor in
possible home repair expenses. Some of the most common home repairs are done on
plumbing fixtures, patios, fences and driveways, heating and air conditioning
systems, and painting the interior or exterior of your home.
Keeping your home in good working
order can add value to a home; however, it's crucial that homeowners plan ahead
for costs associated with unexpected repairs. Contributing small amounts
regularly to an emergency fund for maintenance and repairs can go a long way in
preparing for unforeseen expenses.
By adding in the cost of a reserve
fund to the monthly household budget, homeowners can prevent a financial blow
from unplanned additional costs.
BMO Harris Bank offers the following
financial tips to homeowners looking to make home repairs:
- Understand how a renovation will impact the value of
your home by researching which renovations create increased value and are
popular selling features.
- Think long term when making financial decisions --
whether you are using savings or borrowing to renovate, take the time to
meet with a financial expert to ensure your renovation meets your long
term financial objectives.
- Expect the unexpected -- be financially prepared for
the unexpected such as a leaky roof, broken pipe or other course
corrections that may occur during the project.
- Get renovation quotes in writing and understand what
guarantees they provide – for example, if the cost of the plumbing in your
renovation is more work than expected, will the quote go up?
Although no one has a crystal ball
to foresee what repairs you may encounter during the time you own your home,
financially preparing for the unexpected is a smart move.
Reprinted with permission from RISMedia. ©2013. All rights reserved.