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AVOIDING SURPRISES: HOME MAINTENANCE AND REAL ESTATE

QDO I NEED TO REPAIR EVERYTHING IN MY HOME BEFORE SELLING IT? WHAT ARE THE RISKS IF THERE ARE SOME DEFERRED MAINTENANCE ISSUES?

The cost of neglecting home maintenance can have far-reaching consequences on real estate transactions. When it comes time to sell your property and your home has signs of potential maintenance issues, buyers may perceive it as a risky investment or demand price reductions. Here are some strategies to mitigate these risks. And if you are currently shopping around for a new place to call home, here is how much you should set aside each year in your budget for home maintenance.

The Price Of Neglect

Deferred maintenance can have a detrimental impact on a real estate transaction, both in terms of financial implications and the overall viability of the deal. When a property exhibits maintenance issues potential buyers may perceive it as a risky investment. Buyers will likely demand price reductions to compensate for the anticipated repair costs. Signs of neglect can discourage buyers and even lead to failed transactions.

GET A PRE-SALE HOME INSPECTION

If you are thinking of selling, you may want to consider getting a home inspection before listing your property. One of the benefits to this is that you can identify and address any potential issues or defects that may raise concerns for potential buyers. Avoiding last minute surprises and price negotiations during the process minimizes complications and stress.

Key Areas For Yearly Maintenance

These three crucial areas of your home require your attention each year: furnace filters, gutters and plumbing leaks. Clogged furnace filters strain the HVAC system and can reduce its lifespan. Dirty gutters can lead to water damage, foundation issues and roof leaks. And even minor plumbing leaks can escalate into major problems over time causing water damage and mold growth. By proactively managing these areas you can minimize the risk of significant home maintenance expenses.

Budget For Home Maintenance When Buying

When buying a home, it is extremely important to think about how much home maintenance will cost in addition to your downpayment, mortgage payments, taxes and HOA fees. Typically, I suggest an amount of 1-3% of your home’s value each year. This amount will vary depending on age, size and location of your property. Newer homes will require less for maintenance than an older home. A very large home will require more money than a smaller home. Acreage properties will cost more than a home on a small lot. This budget should be enough to cover basic home maintenance as well as any unexpected repairs that pop up.

Consulting with an experienced and knowledgeable real estate agent is crucial when it comes to preparing your home for sale. Get guidance on which home maintenance issues should be prioritized and addressed, how you can mitigate any potential issues and develop a plan that ensures deferred maintenance does not sabotage your sale.

MINIMIZE RISKS AND MAXIMIZE VALUE.

LET’S CONNECT AND TAKE CHARGE OF YOUR REAL ESTATE SUCCESS.