How much should you budget for home repairs?
If you're planning to purchase a new home in the coming year, money is probably on your mind. A house for your family is an exciting, but often intimidating, investment. Once you have financing for the initial investment squared away, it's important to consider the additional costs that you'll incur each year. If you're wondering how much to budget for home maintenance and repairs, here are a few statistics to give you an idea of the unexpected costs you may face.
Annual maintenance costs
The bills you'll receive for home maintenance and repairs will vary depending on the age and condition of your property. However, researchers at the University of Illinois estimated that homeowners can expect to spend 1 to 2 percent of their home's purchase price on these costs each year. If you paid $200,000 for your house, that means you should budget approximately $2,000 to $4,000 each year for repairs and maintenance. The report also noted that these expenses may be higher if your home or appliances are older.
To frame these costs in a different way, The Nest suggested that homeowners allocate $250 from their monthly income for ongoing home repairs. It may seem like a lot, but according to House Logic, large projects like updating an old electrical system can cost up to $20,000 in big houses. It's best to have extra money tucked away for these expenses, else you may be unprepared and underfunded.
Benefits of home warranties
If these costs seem daunting, you may want to consider investing in a TotalProtect® Home Warranty. With this service, you'll typically pay just a small deductible† when an appliance or system needs repairs. There are different TotalProtect coverage plans that will fit your budget, and our repair technicians are pre-screened so you won't need to worry about who is coming into your home. Look into a home warranty today and you'll see why so many of our customers recommend the service to their friends and family. TotalProtect offers affordable home protection solutions and peace of mind when it comes to your big investment!
The information in this article is intended to provide guidance on the proper maintenance and care of systems and appliances in the home. Not all of the topics mentioned are covered by our home warranty or maintenance plans. Please review your home warranty contract carefully to understand your coverage.