Home Help: 5 reasons you need an emergency home repair fund

Home Help: 5 reasons you need an emergency home repair fund

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Homeownership is expensive. In addition to you mortgage, insurance and taxes, you also need to pay for repairs when things break. Having and maintaining a home repair emergency fund can help when unexpected costs arise.

BobVila.com recommends setting aside either 1% of your home’s value every year for home repair or 10% of the total cost of your mortgage, insurance payment and property taxes for a repair fund. Here are five home repairs an emergency fund can help you pay for:

• Replacing a roof. This is not only one of the most expensive repairs a homeowner can be forced to make, its cost can vary wildly. The cost is influenced by factors such as size, pitch and materials used and more. The average cost of a roof replacement runs between $4,900 and $14,100, according to Angie’s List.

• Replacing a leaky faucet. Most homeowners, at one point or another, will have to repair or replace a leaky faucet. Though repairing a faucet isn’t too expensive, a replacement runs an average of $239, according to HomeAdvisor.

• Furnace or AC replacement. “Your furnace and air conditioner work to keep your home and its occupants at the ideal temperature,” according to BobVila.com. “Regular maintenance will help keep these fixtures running efficiently, but there may come a time when they need to be replaced. The average cost of replacing your furnace or central air conditioning system, depending on the complexity of the work, could easily exceed $10,000, according to realtor.com.”

• Replacing a garbage disposal. Another common problem for homeowners, you will likely have to repair or replace your garbage disposal at some point. Though fixing a clog is usually simple and inexpensive, replacing a garbage disposal can be pricey, especially if you want a higher-end model. Farmers Insurance puts the average cost of a new garbage disposal at between $100 and $1,000.

• Hot water heater repair or replacement. “A traditional tank-style water heater has an average lifespan of eight to 12 years and regular maintenance can help extend the life of the unit,” according to BobVila.com. “Not to mention, regular maintenance may help you avoid the dreaded water heater leaks and floods that can occur. On average, the annual maintenance cost for a water heater should run you $80 to $100, while the average replacement cost will set you back $750 to $1,400, according to American Family Insurance.”

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INSPECTIONS SAVE MONEY

When buying a home, don’t skimp on the inspection.

If you’re in the process of buying a home, you’ll need a home inspection. Here are the basics, according to Fox Business:

“Before your lender approves your loan, they’ll ask for a home inspection. During the inspection, you’ll discover any faults in the property. The inspector will look for critical issues, including water damage, structural issues, damaged electrical systems, plumbing concerns, roofing concerns and pest issues. You’ll receive a document detailing anything that is broken or hazardous. The inspector focuses on issues that are safety concerns, not cosmetic.”

Fox Business recommends attending the inspection if possible so you can ask questions. Following the inspection, you can add conditions to your offer, such as repairing the roof or replacing a broken water heater.

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Published at Sat, 16 Jan 2021 00:00:00 +0000