Secrets To Managing Surprise Home Repairs For First-Time Owners

Many new homeowners are caught off guard by unexpected repair expenses, facing potentially overwhelming financial challenges.

At a Glance

New homeowners spend an average of $5,719 on repairs in their first year.
92% encounter major issues within the first year of ownership.
22% go into debt over repair costs, with some exceeding $10,000.
Proactive maintenance can prevent extensive future repairs.
Inspectors often miss significant issues, leading to regret over hiring decisions.

The Unexpected Burden of Home Repairs

Bianca Fabian and her husband experienced the reality of unexpected repair costs firsthand when facing over $5,000 in chimney repairs in their Long Island home. Their story reflects the findings of a study by American Home Shield, indicating that a staggering 92% of new homeowners encounter significant repair challenges within the first year, with repair expenses averaging $5,719. These costs can strain finances, particularly for those unprepared to manage such unforeseen challenges.

A significant portion of homeowners, over 22%, incur debt because of unexpected repair costs, with some spending amounts exceeding $10,000. Despite these daunting challenges, homeownership reportedly offers long-term benefits that far outweigh initial burdens for those who plan adequately.

The Importance of Research and Planning

Preparation plays a key role in mitigating these unexpected costs. Bianca Fabian emphasized, “We now have to pick and choose what we can afford to do, and what can wait.” Proper research before purchasing a home and hiring trustworthy inspectors are crucial steps in avoiding additional repair costs. Homebuyers often have little time to vet inspectors, with reports showing that 21% of new homeowners regret their choice. A thorough evaluation can save thousands.

“A lot of people were already digging deep into their pockets to buy a home, so they may not have been thinking about possible repairs at the closing,” said Emily Fanous.

Home insurance may not cover all repairs. Considering a home warranty could offer additional protection against unexpected repair expenses, covering items that standard insurance policies do not.

The Rising Cost of Homeownership

Home maintenance costs have reached unprecedented levels, with recent increases bringing the average amount for single-family homes to a record high. In addition to these ongoing costs, factors such as inflation and material shortages have compounded the burden on new homeowners. A proactive approach to home maintenance is highly recommended to reduce the risk of incurring large unexpected expenses.

“Inflation has increased the overall cost of goods and services, while ongoing labor and material shortages have also driven up the price,” said Jack Erb.

Regular upkeep can extend the life of essential home systems and structure, ultimately saving homeowners money. According to experts, preventive steps such as regular heating and cooling system maintenance are vital. These measures help avoid exacerbating minor issues that could become major, costly repairs.