How to Pay for Major Home Repairs: A Quick Guide
Written by Alejandro/Sir Fix-a-Lot
Home ownership isn’t cheap, especially when you’re dealing with major — and oftentimes unexpected — home repairs like roof replacements, foundation issues, and water damages. Plus, many repair issues need to be dealt with immediately — even if they’re not in the budget. But with these tips from the team at Lodestone Real Estate, you’ll learn how to cover the cost of major repairs, find and hire a qualified contractor, and boost the value of your home.
Home Repair Budgeting Tips
These resources will help you to budget for major home repairs like roof replacements, structural repairs, mold removal, and HVAC issues.
- Research the average cost of common home repairs. A new roof, for example, costs $11,095 on average.
- Learn how to successfully budget for your home repairs if you have some time before your project needs to be completed. Ideally, you should save around $2,000 annually if your home is worth $200,000.
- Find the right bank account for your emergency savings fund. The Balance recommends high-yield savings accounts, money markets, certificates of deposit (CDs), and Roth individual retirement accounts (Roth IRAs).
- If you don’t have money saved for your repairs, you could pay for emergency repairs with a home equity line of credit (HELOC), cash-out refinance — or in some cases — a homeowners insurance claim.
Hiring a Home Contractor
Once you’re ready to make your home repairs, you’ll need to begin your search for a qualified contractor.
- Check out the Better Business Bureau's guide to finding, hiring, and working with a qualified home contractor.
- Wondering how long your home repair will take to complete? Some projects can take up to three months to complete, while others can be done in several weeks.
- Should you hire a contractor or save money by doing it yourself? These tips from Money Crashers will help you to decide.
Selling Your Home? Consider These Value-Boosting Repairs
If you’re getting ready to sell your home, you’ll need to complete a few repairs and upgrades — especially if you’re hoping to boost your home’s value.
- Complete 34 important tasks, like finishing any ongoing projects, decluttering your belongings, and cleaning the home to perfection.
- Tackle a few essential upgrades and repairs, such as painting the walls, replacing outdated windows, and upgrading broken or worn bathroom fixtures.
- Invest in landscaping design to boost curb appeal and increase the value of your home.
While the joys of homeownership are vast, they come at a high price. From roof replacements to structural damages, some home repairs can be planned and budgeted for — while others cannot. However, these resources will help you to pay for major home repairs and replacements, find the right contractor for the job, and even boost the value of your home.
Whether you’re selling, buying or staying put, turn to Lodestone Real Estate to find ideas, information and inspiration for your journey as a homeowner.