First-time homeowners may be caught off guard by unexpected maintenance and repair expenses. Here are some tips to prevent bill shock.

First-time homeowners may be caught off guard by unexpected maintenance and repair expenses. Here are some tips to prevent bill shock.
First-time homeowners may be caught off guard by unexpected maintenance and repair expenses. Here are some tips to prevent bill shock.
  • A recent report by Angi found that 19% of homeowners were surprised by the cost of home improvement projects during the first six months of homeownership.
  • The average annual "hidden costs" of homeownership across the country is estimated to be around $18,000, according to a report by Bankrate.com.
  • Here are ways buyers can prepare and potentially reduce unexpected costs.

This spring, in Coral Springs, Florida, Alex Marrero and his spouse purchased their first home. Since then, the couple has spent approximately $17,000 on home maintenance, repairs, and installations.

Some improvements turned out to be more costly than expected, Marrero stated, despite their knowledge that they needed to make changes from the moment they purchased the house.

After receiving multiple quotes from contractors, he ended up paying $9,800 for four hurricane impact-resistant windows and a garage door.

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The couple spent a total of $6,793 on home improvements since their April purchase, including refinishing their scratched-up wood floors, installing a pool safety fence, removing popcorn finishing from the garage ceiling, priming and painting ceiling texture, and replacing cracked roof tiles.

"Marrero, 33, stated that they are still expecting additional expenses. "I know the pool pump is near the end of its life. So, we're preparing ourselves," he said."

'Understanding that process is enlightening'

Marrero's experience isn't unique.

Homeowners may be caught off guard by the unexpected expenses associated with maintaining and repairing their homes, according to experts.

A recent report by Angi, an online platform that connects homeowners with contractors for home maintenance or renovations, found that 19% of homeowners were surprised by the cost of home improvement projects in the first six months of homeownership. The study was conducted in late May and involved a survey of 1,000 Americans who purchased a home in the past five years.

Angie Hicks, co-founder of Angi, stated that since they live in an apartment, they are unlikely to hire home improvement contractors. As a result, they realized the cost of hiring a plumber.

"Understanding that process is enlightening for them," she said.

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The average annual "hidden costs" of homeownership across the country is estimated to be around $18,000, according to a report by Bankrate.com. This report suggests that home maintenance costs are 2% of the value of a home each year.

The estimated annual maintenance costs in some states with high home prices, such as California, Hawaii, and Massachusetts, can exceed $26,000.

In Kentucky, the least expensive state according to Bankrate, annual car maintenance might cost approximately $5,000.

Angi discovered that first-time homeowners are less knowledgeable about the costs associated with home ownership than repeat homeowners, and more likely to report spending more than anticipated on home maintenance, improvements, and emergencies.

Jeff Ostrowski, an analyst at Bankrate.com, recently told CNBC that after being a homeowner for some time, you become aware of all the potential issues that can arise.

To minimize maintenance surprises as a new homeowner, consider these things when shopping for a home.

1. Have a home inspector lined up

In April, the percentage of buyers who waived the home inspection decreased from 22% the previous month and 21% a year prior, according to the National Association of Realtors.

Due to the pressure of completing home inspections quickly, individuals may make hasty decisions, according to Hicks.

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A home inspector is crucial, according to Dan Bawden, a residential construction expert and president of Legal Eagle Contractors, Co. in Bellaire, Texas.

He stated that it was likely the most crucial action to take.

On average, home inspectors require one week's notice, so remember to factor this in when searching for homes.

Bawden advised seeking recommendations from real estate agents for licensed home inspectors in your area who offer comprehensive services.

"Instead of spending $450, you might spend $600 for someone who is better, but that's money well spent," he said. "You want them to find as many things as possible."

2. Look for 'deal breakers' in the home inspection

The home inspection is crucial in the home buying process as it can reveal deal breakers in a house, according to Hicks.

Be present for the inspection, if you can.

Bawden stated that if you're present with them, they will disclose what requires immediate attention or is critical.

If the house has cracks along the door way or windows, or feels a downward slope as you walk across a floor, it may have foundational issues, he said.

Bawden stated that buying a house with foundation problems is not advisable as the issues will worsen and be costly to repair.

Other notable deal breakers include termite damage and water damage, he explained.

An inspection can help you understand the age of important elements, such as the roof. During the inspection process, you can ask questions about these elements and assess if you have the budget to cover any necessary repairs or if it's worth discussing with the seller, as Hicks explained.

Noting all problem areas during an inspection can aid in prioritizing repairs and potentially lowering the home purchase price, according to Bawden.

3. Keep your 'critical eye' as a homeowner

As a homeowner, it's crucial to prioritize routine maintenance in your home, including having your air conditioner or furnace serviced regularly, just like changing the oil in your car, advised Hicks.

Homeowners are the most critical of a house when they're buying, but they often don't keep a critical eye after moving in, said Hicks.

Bowden advised having mechanical, plumbing, and electrical system check-ups at least once a year.

"You need to be vigilant," he said.

by Ana Teresa Solá

Investing