Want some builder insights on home maintenance costs and how to spend less? You’ve come to the right place.
The leading method for calculating home maintenance costs suggests you set aside 1% of your home’s value as a budget number. We see that as a good starting point, but studies show homeowners actually spend 1-4% on home repairs, so how do you create an educated budget that’s friends with reality?
Here’s a suggestion based upon our experience – follow this form to calculate an estimated budget based on your home’s specifics.
That calculation should get you in the ballpark. But whatever your number, we would encourage that you do not view this as a fixed annual expense, but rather as an annual average over a 10-year period. Not everything costs the same amount to repair or replace, and there’s always the potential “cluster effect” – the reality that not everything that could go wrong does so at a metered pace. Some years you’ll spend more, some less.
Another suggestion. If you have money left over in this line-item after 10 years – hang on to it! Your roof, windows, siding and several other home components will probably be on an every-other-decade or so cycle. You’ll need the left-over savings for those.
But we can’t stop there. Even if you check every one of the “extra” boxes in the formula, with a quick run on a calculator, you’ll notice that you’d still max out only at the 1.4% mark when the average homeowner ends up spending between 1-4%. That’s a big swing. Begged question – why? We’d like to suggest that the additional percent is likely spent by homeowners who, well, “forget” about taking care of their home, or do not engage in a proactive home maintenance program.
Reality: no home is maintenance-free. Things do and will move, wear out, stain, break, leak, and more. Accidents happen, as does the freak thing. So if something is not addressed or if issues are unknown, the costs for repairs grow exponentially.
Solution: proactive home maintenance.
It may be hard to qualify precisely how much a proactive home maintenance program may save you in the long run, but it can be illustrated as a financial win. Try this. Calculate the difference between your suggested Annual Budget (line “d”), and what 4X’s that number would be (the 4% of what some end up paying for repairs and replacements). In our estimation, thats a fair chunk of money, and the potential extra cash which you just might not have to shell out for unnecessary damage if proactive home maintenance were a regular staple.
The bottom line? You can make money by saving money. That’s why home maintenance make solid financial sense. That’s what we, at Scott Christopher Homes, offer you. We offer to save you money by partnering with you in the proactive maintenance of your home. Let us help you by providing the “heads-up” insight and trustworthy, one-call service to mitigate the expensive side of risk.