It’s no secret that home repairs can be expensive. And while it may seem like an impossible task to save enough for unforeseen repairs, the reality is that a little planning and discipline can help you keep your wallet intact.
Many experts recommend that homeowners set aside 1% to 4% of their home’s purchase price each year in a dedicated repair fund. This article will explore 4 simple ways to save big on home repairs.
1. Get a Realistic Estimate
It’s important to get a realistic estimate for home repairs before proceeding with the work. This will ensure that the project is completed within budget and that any additional expenses are accounted for. This will also help establish a good working relationship with the homeowner and maintain transparency throughout the repair process.
Start by taking measurements and gathering specifications of the area that needs to be repaired. Then, identify the materials that will be needed and their costs. Compare prices to find the best deals, and consider factors like quality and durability.
Next, calculate labor costs by multiplying the hourly rate of contractors or professionals by the estimated number of hours required to complete the work. Then, add any additional expenses that are required to complete the work, such as permits or subcontractor fees. Finally, include a reasonable profit margin to cover overhead costs and ensure that the contractor is compensated for their services. This will help them remain competitive and maintain a high level of quality.
2. Shop Around
Owning a home can be a significant financial investment, especially when unexpected repair costs arise. However, preparing ahead of time and taking steps like creating a rainy day fund and purchasing a home warranty plan can help you manage these expenses more easily.
Before hiring a contractor for a project, shop around. This doesn’t just mean choosing the lowest price, but it also means picking a company that stands behind their work and has a good reputation in the community.
Also, if you’re doing renovations yourself, shop around for the best prices on materials. A little online comparison shopping (and a smart credit card) could save you money on everything from drywall to new cabinet fixtures. Also, don’t be afraid to shop the mis-tinted paint rack at Home Depot – you may be able to find perfectly good paint that just happened to be mixed in the wrong color for someone else. This can often be half the cost of buying a new gallon.
3. Build a Contingency Line
One of the best ways to deal with surprise home repairs is to build a contingency line. This is a percentage of the project budget that is set aside for unanticipated costs. This helps prevent contractors from taking out loans or going over their budgets.
While a lot of structural projects tend to have very clear price tags, such as replacing a roof or adding new windows, many other repair tasks can be much more unpredictable in terms of pricing. This is particularly true for labor-intensive projects like electrical work or plumbing repairs.
These expenses can push renovations over their intended budgets quickly, especially if you choose the cheapest contractor to do the job. To avoid this, it’s a good idea to thoroughly vet contractors on the front end and get references before hiring them for any project. Some general contractors also recommend using a range estimate to incorporate risk factors into their contingency calculations, which gives them both a minimum and maximum impact of the potential costs that may arise during a project.
4. Do It Yourself
Nothing cramps your homeowner style more than a surprise visit from unwanted repairs. They always show up just when you least expect them and he never leaves until your budget is busted.
You can save money on labor costs by taking on small repair jobs yourself. Online tutorials and home improvement stores can teach you how to do simple tasks like painting or tiling a backsplash. You can also save by tackling renovation projects during the winter when contractors are less busy and retailers have more sales.
It’s important to consider the long-term value of your home when making renovation decisions. It’s not worth spending a lot of money on a project that’ll only add a little to the value of your home. It’s also important to avoid putting off maintenance and repairs, as the longer you wait the more it will cost. This is why having a contingency line is so important. It’s a smart way to prevent dipping into your emergency fund for unplanned expenses. Making the decision to buy home warranty could be very beneficial and save money on those unplanned repairs.