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November 21, 2024
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6 Things Do Immediately If You Can’t Afford To Fix Home Repair


neirfy / iStock.com

neirfy / iStock.com

Owning a home is a great investment, but hidden costs can add up. While there are obvious expenses like mortgage and property taxes, homeowners can face pricey foundation issues, roof repairs, water damage, heating and AC problems, electrical, plumbing, mold removal, and more.

According to Angi’s State of Home Spending report, homeowners spent an average of $13,667 on emergency repairs, maintenance, and improvements, which can be a major financial woe.

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While it’s advised to save 1% to 4% of your home’s value each year for unforeseen problems, that’s not always achievable, especially with the high cost of living and inflation. If you’re dealing with unaffordable, costly repairs, don’t panic.

Here are six things to do immediately without emptying your savings for home repairs, according to real estate agents GOBankingRates spoke with.

Interest-Free Loans

If you’re selling your home but know expensive repairs need to be made, look into interest-free loans with the real estate company you hire. They might be able to offer you a way to pay for all the needed maintenance and avoid taking out a high-interest loan.

“Most of the time, unless the home is a teardown, the buyer will conduct a thorough inspection of the home with a licensed inspector who will look into every nook and cranny of the property from the foundation to the electrical box to evidence of mold and leaks,” said Lauren Hurwitz, a licensed realtor in Westchester County, New York.

“If you know there are things in your home that can be improved upon but don’t want to or can’t shell out the funds to fix things that are wrong before putting your home on the market, consider working with a brokerage that will offer assistance,” she explained.

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Hurwitz, who works with Compass, a real estate company that pairs top agents with technology to create an ideal customer experience, has a program to help.

“Compass Concierge offers interest-free loans to sellers to help them pay for various improvements for the home for cosmetic, structural, safety and beyond. Having this loan allows sellers to pay for things such as new appliances, painting, replacing light fixtures, roofing, landscaping, and even post-inspection repairs,” said Hurwitz.

While an interest-free loan is already a huge savings, Compass Concierge provides sellers more relief with their pay-back plan.

“The costs are paid back to Compass at closing, so sellers never have to worry about dipping into their own pockets to make their home really sparkle before the buyers and inspectors come knocking,” she stated.

Safety First, Glamour Second

We all want a beautiful home that reflects our style, but addressing potentially dangerous issues comes before fun projects around the house. The good news is, if it’s not a crisis, you can “put a quick (and safe!) bandaid on it while you figure out a plan,” said Yawar Charlie, director of estates at Christie’s International Real Estate of Southern California.

“Let’s be real: safety trumps style every time,” he said. “No need to sacrifice your home’s safety or your peace of mind for a perfect Pinterest-worthy moment just yet.”

But Charlie emphasized if it is life-threatening or serious, it must be handled right away-no temporary solutions.

Financing Can Be Your Best Friend

If a big repair does come up, and your bank account isn’t prepared for a massive hit, check into financing.

According to Charlie, “Many companies let you spread out payments–because who said you need to pay for that new roof all at once?”

He also suggested looking into your home’s equity for a quick resolution.

“Check out home equity lines of credit (HELOCs); they can feel like a financial lifeline when repairs pop up unannounced,” Charlie said. “Just remember, no shopping sprees with that credit line–keep your eye on the prize!”

Government Help

Another resourceful way to pay for home repairs is with government assistance.

“There are government programs, like HUD’s Title I Property Improvement Loan Program, that can provide financial relief for critical repairs,” Charlie explained. “You’d be surprised at how many local programs and grants are floating around–especially for essential fixes. You’re paying taxes anyway, so why not use some of that to keep your home in tip-top shape?”

Get Creative With Alternatives

Hiring contractors and professionals to do home repairs rack up hefty bills, but Charlie suggested being “crafty” to get around those costs.

“Can’t afford a contractor? Look into community repair groups or barter services with that neighbor who’s always tinkering in their garage. And for smaller jobs, roll up your sleeves and dive into DIY. Just make sure you’re confident in what you’re doing–this is your home, not a weekend arts-and-crafts project,” he said.

Plan Ahead and Inspect Often

One way to avoid being shocked by a major repair is to plan and stay on top of small issues that could lead to big ones.

“Repairs are like surprise parties–you never know when they’re going to pop up,” Charlie stated. “That’s why an inspection can be your secret weapon. Know what’s urgent, what’s not, and start saving for future fixes before they come knocking.”

But staying one step ahead, you can be prepared by getting an emergency fund together and finding who you want to hire in advance instead of hiring someone out of desperation at the last minute who might not be the best person for the job.

More From GOBankingRates

This article originally appeared on GOBankingRates.com: I’m a Real Estate Agent: 6 Things Do Immediately If You Can’t Afford To Fix Home Repair



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