When planning to own a home, it is essential to budget for all ongoing and one-time expenses. A first step towards doing this efficiently is having an estimation of all costs that will be incurred during the time that you live in your house. Here are some things that every homeowner should be aware of when considering the cost of maintaining your home:
- Home maintenance tasks including lawn care and cleaning services
- Improvements such as adding central air conditioning or flooring
- Specialty products used around the house
- Miscellaneous items like furniture, art, or appliances.
- Utilities
Consider any factors that may affect these costs at different times of the year. Prices for items like electricity are often highest in the summer and winter when they’re in greatest demand. These items are also heavily affected by location, but be sure to average it over a year for a more accurate figure. When budgeting for your home consider these factors to have a better idea of what your maintenance cost will be.
Deciding how much you need to save and creating a plan
Many homeowners are likely to have home maintenance items on their long-term home improvement plan. But how much should you have in your home maintenance fund? That’s the question many homeowners will be asking themselves.
Before you start saving for home maintenance, it is essential to understand that professionals generally recommend keeping a maintenance fund worth 2-3% of your home value. When considering the average lifespan of furnishings and general wear and tear, repairs can run into thousands of dollars over several decades. It is recommended you attempt to save monthly, and if you already have savings, put money away in a lump sum. This will help start your home improvement fund, seed it, and provide extra flexibility when it comes time to home maintenance, home renovations, or home replacements.
The rule of thumb for home renovations is that you should never pay out of your home equity. Instead, save up and use home equity as a last resort if you don’t have enough money saved otherwise. Dipping into your home equity for minor repairs isn’t recommended since it provides no future home value. Larger projects such as home renovations can make sense because they increase the value of your property, which you can either put towards selling your home or take out against other investments. The problem with using it on smaller items is that if you need to repair them again in another few years, then you’ll have no home equity left at all!
Try to focus on saving monthly for home maintenance to ensure you have the funds ready when you need them. Maintain your home correctly while saving up for larger projects like renovations. By planning how much you should save every month to reach your goals. As always, maintain full coverage home insurance so that unexpected expenses can be covered easily.
Taking inventory of your current systems and appliances to create a timeline
When creating a home maintenance budget, it’s essential to take inventory of all home systems and appliances and their current condition, giving a clearer picture of how much you will need to spend on home repairs and home maintenance in the future. Create a timeline of your maintenance goals to reach them efficiently.
Home maintenance may not be the first thing you think of doing at home, but it is just as important as your home buying process. Sometimes home buyers are so focused on their home inspection that they forget about the timeline of home systems and appliances.
Creating a home maintenance timeline can also help you track when upgrades should be happening in the home. When creating a home maintenance timeline, you should start with the most significant maintenance tasks and work your way down like this:
- Age of roof
- Age of HVAC
- Age of plumbing
- Appliances
You will want to know the age of these items because coming across an older home often comes with older systems and appliances that need updating or replacing. Knowing how the age of your roof, heating system, plumbing system, and appliances will allow you to have an effective plan when it comes to home maintenance.
When purchasing a home, there are several pieces of home maintenance homeowners do not always think about. The exterior is a crucial part of any home and you should not forget it in your inventory plan. If you have brick or siding exteriors, there are many items that you should inspect closely.
In addition to taking inventory of appliances and systems within your home, take note of the current weather conditions for your area, helping you determine what type of heating system would best work for your home. The same goes for air conditioning—an excellent time to inspect annual upkeep on your current system is when the weather starts to change, but take note of what type of climate you have before investing in a unit that will not adequately service your home.
Let OJO Homeowner do the work for you with our smart checklist
After a day of work, the last thing a homeowner wants to do is complete a lengthy list of tasks for home maintenance. OJO Homeowner has solved this common problem with our smart checklist. We have created tools that save time and money to enjoy your free time
Our digital maintenance management solution points out the use of over 700 products that are available online. This is done through an inventory system that tracks all purchases made by owners in your neighborhood. This allows them to use their intelligent matching technology which instantly matches up compatible products when you purchase something new. By utilizing a home maintenance plan using tools like a smart checklist from OJO Homeowner you are prepared for future maintenance costs on your home.
