How Much Are Average Home Maintenance Costs?
If you take a look around your neighborhood, you’ll probably see many different homes — and odds are some of those homes will look better than others. Every homeowner has their own style when it comes to maintaining their home.
Depending on how a home’s been cared for, you can expect to pay about one percent of your home’s current market value in annual maintenance expenses. But there are other ways to think about saving for the inevitable repair or replacement of your home’s big ticket items.
The One Percent Rule
There are many ways to consider saving up and budgeting for home maintenance repair expenses. The one percent rule is a good standard because it’s so easy to remember. Just put aside one percent of the total purchase price of your home for home maintenance repairs. A $250,000 home would require you to save $2,500 annually, or about $209 per month.
It’s a rough estimate that doesn’t take into account labor costs or materials, and other factors can contribute to this base price.
The Square Foot Rule
Budgeting for the eventual breakdown and replacement of major home systems like a new roof or replacing a sump pump may not be easy, but it is possible. If you’re wondering about how to estimate property maintenance costs, the square foot rule can be helpful, and it’s another really easy way to put money away for repairs and home maintenance.
Budget about $1 for every square foot of livable space, every year, for maintenance costs. And this rule is also applicable for estimating new home maintenance costs. So, a 2,500 square foot home would require a $2,500 budget annually, or about $209 per month.
What Are the Hidden Costs of Buying a Home?
Although you may ready yourself to pay for upgrades after purchasing a home, many unexpected costs can surface right at the closing table. Want to learn more about what your potential home-buying costs might be? Check out our Hidden Costs of Buying a Home Calculator and feel more prepared, confident and ready for closing day!
There are a lot of ways to put away money for home maintenance and repair costs. The important part is that you do it, one way or another. When the time comes, you’ll have a head start on funding repairs for the replacement of your home’s major systems. As you consider your budgeting options, do yourself a favor and reach out to your American Family Insurance agent. You’ll find they’re a great resource for helping you develop an insurance policy that covers your home carefully.