Maintaining a Home

Home maintenance and repair is a critical part of homeownership. Proper maintenance of a home:

• Keeps the property value stable.

• Saves money, because small issues addressed during regular maintenance do not turn into bigger, more expensive issues later.

• Helps sell a home, since potential homeowners are more likely to purchase a home that doesn't require large projects and has been well cared for.

Plan to do a comprehensive "audit" of your house annually to see what work needs to be done. Make home maintenance part of your budget – experts estimate that 1–3% of the market value of the home is the typical amount spent on maintenance annually.

Plan ahead – if you know that your hot water heater is old and probably only has a year before it needs to be replaced, start budgeting for its replacement now. Keep track of the age of appliances, the roof, decks, etc. By knowing when things are likely to need maintenance or replacement you can avoid unpleasant, and expensive, surprises that can impact your finances.

The Home Maintenance Warning Sign

An early warning sign that you may have financial challenges is when you have difficulty finding money for home maintenance. If several years go by without proper maintenance the house may begin to lose its market value and small fixes may turn into major repairs. This can be a warning that you are unable to afford your home.

If this happens to you, don't ignore the problem. Take an honest look at your financial picture. If you have been lagging on home maintenance because you have reallocated funds to non-necessities, now is the time to make home maintenance a priority before problems arise that are too expensive to fix. However, if home maintenance has been neglected because there just isn't enough money, you may be overextended.

Consider your options and talk to a housing counselor or credit counselor. If you find yourself in a house too expensive to care for properly, you may be able to sell it and downsize before major expenses and financial set backs limit your options.