You’re a new homeowner now. Congratulations! It’s not always the easiest or cheapest path, but owning property is exciting! To save yourself time and money, don’t believe these five myths new homeowners receive:
1. Worry about maintenance later.
Wrong! Your home budget should include a maintenance and repair fund. A majority of homes will require a little work before becoming move-in ready. Even if it is move-in ready, expect to pay 1-4% of the home’s value on maintenance each year. Another thing to keep in mind is how old the house is. If it’s older, you’re more likely to spend more money on maintenance. No matter the age, wear and tear will quickly show in a home.
If you do worry about maintenance later, it will be a costly fix down the road. Instead, save yourself time and money by preventing these expensive repairs. Some preventative work you can do are cleaning the gutters, small paint touch-ups, replacing the filters on your HVAC system every 30 days to six months (depending on the system), and cleaning out the swimming pool and fireplace regularly if you have those features.
2. Decorate and buy everything before moving in.
Also wrong! Many new homeowners think that a new home means new furniture. But let’s put that into perspective. You just made the biggest purchase of your life and acquired a lot of debt. This might not be the time to buy more if you’re not financial or even emotionally stable. Plus, it could be better to wait before buying furnishings. That way, you have time to explore the new home and how you use the space before purchasing items that might not fit in the home or your lifestyle.
3. It’s okay to skip the inspection.
To compete in today’s competitive market, many new homebuyers forgo a home inspection to make their offer more appealing to sellers. While it could’ve saved them time and money then, it can be a problem later on, which is why you should do an inspection now. As a new homeowner, you need to know the state and performance of your home. An inspection will catch things that are hard to see, like foundational, electrical, or plumbing problems. It gives you the necessary peace of mind for only a few hundred dollars for this inspection.
4. You don’t need a home warranty because it’s the same as home insurance.
False! Home insurance and home warranties are two different protection plans. You’ll need home insurance to even purchase the house, as most mortgage lenders require it. But home warranties are different and aren’t required by lenders. Homeowners insurance only covers repairs and replacements costs of the property if it’s damaged due to weather, like fire or natural disasters, or theft. Home warranties will protect the repairs or replacements of items like appliances, heating and air conditioning, electrical and plumbing systems, water heaters, and ductwork. A home warranty will save you money on your maintenance since you’ll typically pay just the cost of bringing the worker to the home, and the home warranty will usually cover everything else.
5. All home improvement projects add value to your home.
Incorrect! While we would all love this to be true, it is unfortunately not. Some projects will improve your home’s value, like adding another bathroom, new flooring, or a kitchen remodel. But it’s all about the house and the area it’s in. Luxury improvements won’t be as effective if it’s a median home in a less affluent area. And home improvement projects that are personal to the homeowner might not add value either as they won’t apply to new buyers. Some examples would be adding a climbing wall in your home, adding high-end landscaping, or a pool in the backyard. Those can all be seen as expensive, unwanted maintenance to a buyer.
If you need help becoming a new homeowner or looking for home improvement projects to increase your value, contact us!
