Accurate home repair costs can be difficult to estimate.
Home repairs are a necessary part of home ownership. Most homeowner's make repairs as needed and those repairs can come as an unexpected surprise at the most inconvenient times. Having a home repair budget in place, along with an estimate for general home repair items, maintenance items and upgrades will save time and money when it comes to making the repair and adding up the cost. Does this Spark an idea?
Instructions
1. Use your mortgage as a guide in setting your budget, advised HSH Associates in the MSN Real Estate article, "What Will it Cost to Maintain that Home?" HSH, a mortgage information provider, notes that the best rule of thumb is to anticipate putting approximately 27 percent of your monthly mortgage payment aside for home repair and maintenance costs. For example, on a mortgage payment of $1,000 per month, a home repair budget should start at $270 per month.
2. Think outside of the house --- not the box. Since home maintenance items will most likely not run the full gamut of 27 percent per month for the majority of projects, a homeowner could take that budget and place the funds in a high-yield money market account or CD. Earning interest on a home repair budget can offset expenses such as having to replace major appliances or plumbing problems in a home. They can also be a great resource to tap into when completing home improvements, as an alternative to tapping into a home's valuable equity by taking out a high-interest loan.
3. Be aware of the cost of materials. The first step in any home repair or improvement project will always be to obtain materials. In most repair scenarios, materials will account for 50 to 60 percent of the entire budget for a project, and the rest will be the costs of labor. For homeowners who are handy, labor may not be a consideration, but the best advice is starting an estimate for home improvement costs based on the materials needed to complete the repair or improvement, and keep that information up-to-date by checking it regularly against the market costs of repairs.
4. Estimate waste. Approximately 10 percent of materials used in home repair or improvement projects will be wasted due to mistakes or unused product. When creating a budget for materials, account for a portion of those materials to remain unused in order to come up with the closest estimate.
5. Use a price-per-square-foot calculation. Contractors all over the U.S. will typically base an estimate on the scope of work that needs to be completed using a price-per-square-foot calculation. The best way to obtain this information is to call at least three contractors and ask them to prepare a price-per-square-foot calculation for carpentry, plumbing and electrical services --- major home repair and service items. This will provide you with a solid baseline from which to gauge a budget.
Tags: home repair, home repair budget, price-per-square-foot calculation, repair budget, repair improvement, budget place
