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ArtistGNDphotography/Getty Images April 26, 2022 Checkmark Bankrate logo How is this page expert verified? At Bankrate, we take the accuracy of our content seriously. "Expert verified" means that our Financial Review Board thoroughly evaluated the article for accuracy and clarity. The Review Board comprises a panel of financial experts whose objective is to ensure that our content is always objective and balanced. Their reviews hold us accountable for publishing high-quality and trustworthy content. Miranda Marquit is a contributing writer for Bankrate. Miranda writes about topics related to investing, saving and homebuying. Troy Segal is Bankrate's Senior Homeownership Editor, focusing on everything from upkeep and maintenance to building equity and enhancing value. John Stearns, CMC, CRMS is a Senior Mortgage Loan Originator with American Fidelity Mortgage. Bankrate logo The Bankrate promise
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You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Your house isn’t just one of the biggest purchases you’ll likely make; there are ongoing expenses that come with homeownership, as well. You know about your , of course. But In addition to that, there are ongoing costs of maintenance and upkeep. And some of these can be hidden costs—that is, less obvious to the naked eye and not necessarily encountered in everyday life.
The most common home maintenance expenses
One of the biggest costs of owning a home is maintenance and routine upkeep. includes some obvious and not so obvious things. Obvious home maintenance costs
Lawn care, including mowing and watering Keeping exterior paint fresh, siding in good condition Keeping the home clean Hidden home maintenance costs
Pest prevention Clearing rain gutters Replacing smoke alarm batteries Roof repair Roof Repair Replacement
Keeping your roof in good shape, and eventually replacing it, is one of the more expensive maintenance costs that you’ll incur on your house — but it’s also one of the most vital. In many cases, a roof can be expected to last 20 years (if kept in good condition), but some roofing materials like copper and tile can last up to 50 years. Within a range of $5,609 and $11,845, the average cost of is $8,688 reports, with about 60% of the cost coming from labor — though of course it’ll vary depending on on the size and slope of your roof, and the materials you use. HVAC wiring plumbing systems
You’ll also want to consider the cost of maintaining systems like your heating, ventilation and air conditioning (. According to , having your air conditioning serviced can cost between $75 to $200, and hiring a technician for a repair can run you $50 to $150 per hour. At some point, you might also need to check for and plumbing issues to make sure those systems are still in good shape. Having any issues addressed or older systems upgraded will likely require a professional, which also comes at a cost. The average cost of a wiring project is about $2,000, , while single fixture issues can range from $600 to $1,600, .
Other ongoing home maintenance expenses
Homeowners Association HOA fees
If you live in a homeowners association (HOA), you’ll likely need to pay , which could be charged monthly, quarterly or annually. Depending on where you live and the association, HOA fees can amount to thousands of dollars per year, and may include some maintenance, such as snow removal and lawn care, or you may have to pay extra for those services. You can check with the association to find out what fees you’re required to pay and which are optional add-ons. Homeowners insurance
As you add up the cost of owning a home, don’t forget to include . Homeowners insurance coverage and premiums vary widely, so it’s important to shop around and compare offers. Generally speaking, if you want to save money on premiums, you can increase your deductible. Most require that you carry a certain amount of homeowners insurance to protect the value of the home, but the policy also protects you. When a covered event happens, you can rely on the insurance payout to help you make repairs rather than paying the whole cost out of pocket. Property taxes
For many homeowners, there’s a good chance they’ll live in an area where they’ll need to pay . Property taxes are determined by your city or county’s effective tax rate and your home’s value, which may be evaluated based on fair market value in the area or by the home’s individually assessed value. Depending on your city or county, you might pay each month, or you might end up with a bill every year or twice a year.
Repairs vs maintenance
Unlike maintenance expenses, a can be the result of a natural disaster or a major failure of a system. Depending on the situation, you might be able to get help from your homeowners insurance policy — but if a major issue, such as a termite infestation or a tree branch falling on your roof, requires repair, that can cost you significantly. Other issues, like flooding or water damage, can erode a home’s foundation and require significant repair. A January 2022 survey by James Hardie Industries found that report needing to make major repairs as a result of extreme weather events, which can often do lots of damage to yards and exteriors of homes. How to budget for homeownership costs
Once you have a handle on the full costs of owning a home, creating a budget is key. For some costs, like homeowners insurance, HOA fees and property taxes, you might be able to include a regular line item in your budget and plan for it each month. If you have a mortgage, you’ll likely be able to include them in that payment. Figuring out ongoing maintenance costs and future repairs can be a little trickier. One suggestion, provided by , is to set aside about 1 percent of your home’s value each year for maintenance and repairs; other insurers, such as , recommend up to 4 percent. For example, if your home’s value is $375,000, the current average home value in America, you’d want to budget about $3,750 per year. You could break that down into a monthly budget item of $312.50, and keep the money in a until it’s needed. Gauging your budget for repairs may be more challenging. If you’re buying a fixer-upper, a home inspection report can provide you with an idea of how much to budget for repairs and upgrades. You can also build an to help you pay for home repairs and maintenance — many people find that having a separate savings account for the unexpected costs of owning a home can be helpful. SHARE: Miranda Marquit is a contributing writer for Bankrate. Miranda writes about topics related to investing, saving and homebuying. Troy Segal is Bankrate's Senior Homeownership Editor, focusing on everything from upkeep and maintenance to building equity and enhancing value. John Stearns, CMC, CRMS is a Senior Mortgage Loan Originator with American Fidelity Mortgage. Related Articles