• Skip to main navigation
  • Skip to content
  • Skip to primary sidebar
  • Skip to footer

Realty Solutions Group

Service Beyond Expectations

SearchClose

Tackle This Common Home Worry With a Plan

If a dripping faucet wakes you up at night, the thought of paying a plumber may be what keeps you from falling back asleep. Most homeowners have experienced anxiety related to their home, according to a new report, with home repairs and maintenance topping the list of stressors.

NerdWallet’s 2018 Pulse on Homeownership reports that nearly two-thirds (65%) of homeowners say they’ve experienced anxiety related to their home. Of those, 75% say unexpected home repair costs were the culprit. Maintenance was the second most common stressor, with 52% citing it, according to an online survey, conducted by The Harris Poll, of 2,036 U.S. adults in March.

“When you buy a home, you take a leap into the unknown. So it’s no wonder that homeowners say they’re anxious in our survey,” says Holden Lewis, NerdWallet’s home analyst. “Don’t spend your last dime on the down payment. Instead, set aside a few thousand dollars to take care of unexpected maintenance and repairs. Having an emergency stash will help you sleep better.”

You may not be able to completely eradicate your anxiety around home repair and maintenance costs, but you can lessen the gut-wrenching effects. Here’s how:

1. Create a home maintenance budget

Properly maintaining your home can prevent bigger repairs down the road. For example, fixing that leaky pipe right away could save you from having to spend hundreds or thousands of dollars later to replace a damaged wall, ceiling or floor.

For most owners, funding an annual maintenance budget that equals 2% of your home’s value is reasonable. The expenses covered would include small repairs, regular servicing of your HVAC and other home systems, repairing and cleaning gutters, having your chimney inspected and cleaned, and other tasks to keep your home safe and problem-free.

» MORE: Budgeting for new homeowners

2. Build and maintain an emergency fund

When an unexpected repair pops up and it’s not covered by your home maintenance budget, an emergency fund allows you to address it without racking up credit card debt.

Ideally, you’ll have several months of living expenses saved up that you can easily access. If you don’t have an emergency fund, set small, attainable goals to build one. Start with $500, and work your way up to two months’ worth of living expenses. Amassing this fund shouldn’t take precedence over paying your bills, but the more you have set aside, the easier it will be to manage your expenses and anxiety when life (or your home) throws you a curveball.

3. Plan for bigger, unexpected costs

Finding out your home’s previous owner did a hack job on the roof or learning your foundation is sinking could leave you with costs far exceeding your emergency fund. Long before a problem like this arises, know your options for financing these big-ticket repairs.

“If savings and insurance don’t cover these high costs, your best bet might be to finance the repairs with a home equity line of credit, or HELOC,” Lewis says. “A HELOC acts like a credit card and is backed by your home’s equity. We’ve found that many homeowners get HELOCs just so they’ll have a readily available source of money in case of emergency.”

» MORE: How to pay for emergency home repairs

A separate NerdWallet survey of U.S. adults conducted by The Harris Poll in March found that 27% of homeowners have taken out a HELOC and 25% haven’t used it. Nearly two-thirds (63%) of those who have opened a HELOC did so to cover the costs of home repairs.

More From NerdWallet

  • Lay Groundwork for Better Home Value With Artful Landscaping
  • Take Your Basement From Fright to Functional on a Budget
  • Student Loans: Are You Making Repayment Harder?

Elizabeth Renter is a writer at NerdWallet. Email: [email protected] Twitter: @elizabethrenter.

The article Tackle This Common Home Worry With a Plan originally appeared on NerdWallet.

Realty Solutions Group was built around a simple but elusive concept: provide brokers and clients with the highest level of service in the industry through cutting-edge sales, marketing programs and a culture that values innovation, relationships and a strong local focus.

In less than 5 years, Realty Solutions Group is among the top independent brokerage firms in S/E Wisconsin.

As a locally-owned, independent company, Realty Solutions Group is deeply committed to supporting the communities and clients we serve. We are constantly evolving, but remain focused on that one simple idea behind our founding.

We are a full service brokerage with discounted commissions. We offer no long term listing contracts, a Performance Guarantee, Smart Seller Program and a Communication Guarantee. Contact us today and let us provide you with the very best real estate experience.

Powered by WPeMatico

Table of Contents

  • 1. Create a home maintenance budget
  • 2. Build and maintain an emergency fund
  • 3. Plan for bigger, unexpected costs

Post navigation

« Lay Groundwork for Better Home Value With Artful Landscaping
A Home Buyer’s Guide to Motivated Sellers »
Search for:

Recent Posts

  • Bright Days Are Ahead When You Move Up This Summer [INFOGRAPHIC] May 27, 2022
  • Why Summer Is a Great Time To Buy a Vacation Home May 26, 2022
  • How Buying or Selling a Home Benefits the Economy and Your Community May 25, 2022
  • Sellers Have an Opportunity with Today’s Home Prices May 24, 2022
  • Sellers Have an Opportunity as Home Prices Re-Accelerate May 24, 2022

Recent Comments

    Archives

    • May 2022
    • April 2022
    • March 2022
    • February 2022
    • January 2022
    • December 2021
    • November 2021
    • October 2021
    • September 2021
    • August 2021
    • July 2021
    • June 2021
    • May 2021
    • April 2021
    • March 2021
    • February 2021
    • January 2021
    • March 2020
    • February 2020
    • January 2020
    • December 2019
    • November 2019
    • October 2019
    • September 2019
    • August 2019
    • March 2019
    • February 2019
    • January 2019
    • December 2018
    • November 2018
    • October 2018
    • July 2018
    • June 2018
    • May 2018
    • April 2018
    • March 2018
    • February 2018
    • January 2018
    • December 2017
    • November 2017
    • October 2017
    • September 2017
    • August 2017
    • July 2017
    • June 2017
    • May 2017
    • April 2017
    • March 2017
    • February 2017
    • January 2017
    • December 2016
    • February 2016
    • 0

    Categories

    • Baby Boomers
    • Buying Myths
    • Demographics
    • Distressed Properties
    • Down Payments
    • First Time Home Buyers
    • For Buyers
    • For Sellers
    • Foreclosures
    • FSBOs
    • Gen Z
    • Generation X
    • Holidays
    • Housing Market Updates
    • Infographics
    • Interest Rates
    • Luxury Market
    • Millennials
    • Move-Up Buyers
    • New Construction
    • Pricing
    • Rent vs. Buy
    • Selling Myths
    • Senior Market
    • Short Sales
    • Time-sensitive
    • Uncategorized

    Meta

    • Log in
    • Entries feed
    • Comments feed
    • WordPress.org
    Search for:

    Meta

    • Log in
    • Entries feed
    • Comments feed
    • WordPress.org

    Go to mobile version