Surprising Home Repairs: Essential Advice For New Homeowners To Manage Costs

Modern bathroom with blue walls and white fixtures.

Bianca Fabian’s unexpected repair costs after buying her first home illustrate a widespread challenge that many new homeowners face.

At a Glance

New homeowners often face average repair costs of $5,719 in their first year.
Miscalculating repair budgets can lead to significant debt and financial strain.
Home warranties can provide additional protection not covered by insurance.
Proactive maintenance helps extend a home’s lifespan and prevent major issues.

Understanding the Repair Costs

After purchasing their home on Long Island, Bianca Fabian and her husband encountered unexpected costs of over $5,000 for chimney repairs, an issue overlooked by their inspector. Such situations reflect a common hurdle many new homeowners face. A study by American Home Shield found 92% of new homeowners experience major repairs within the first year, with costs averaging $5,719.

Reports show that a significant percentage of these repairs can plunge homeowners into debt. Approximately 22% of newly-minted homeowners have had to take on debt, with repair bills for some exceeding $10,000. Such unexpected expenses underscore the necessity of setting a realistic repair budget when buying a home.

Choosing the Right Inspector and Contractor

Bianca Fabian’s experience highlights the critical importance of selecting the right home inspector. Among those surveyed, 21% felt their chosen inspector performed poorly, and 20% regretted hiring them. Commonly overlooked issues include the condition of the roof, the presence of mold, and HVAC system ages. While the homebuying process often feels rushed, potential buyers should prioritize researching qualified inspectors and contractors to avoid hidden hazards.

“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.

Additional strategies include opting for home warranties, which can cover expenses insurance does not typically handle. This added layer of security can be a game-changer for those unforeseen costs that crop up.

Managing Maintenance and Hidden Costs

Homeownership inevitably brings hidden costs beyond initial purchase and repairs, such as property taxes, utilities, and ongoing maintenance. Average annual costs are estimated to be $14,155. From Q3 2022 to Q3 2023, maintenance costs climbed by $400, reaching $6,548, driven by inflation and labor material shortages.

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

Proactive maintenance is a simple yet effective measure to mitigate these expenses. Regular upkeep extends a property’s life span, and identifying and addressing minor problems early can prevent larger, costlier issues later. This philosophy of maintenance mirrors maintaining a body’s circulatory system for cost-effective longevity.