If you’re buying a home, there are additional expenses you may want to budget for beyond the down payment and monthly mortgage. Home projects, even small ones, can really add up.
Recent data from HomeAdvisor, a leading home services marketplace, reveals that 75 percent of homebuyers will face a costly emergency within the first 12 months of moving into a new home. From unplanned projects to unexpected emergencies, most homebuyers reported spending more time and money on projects than they initially anticipated.
The most frequent emergency projects reported by homebuyers in the first year of owning a new home included blocked toilets and pipes, a clogged drain, a broken heating or cooling system and water leaks. These unexpected projects can cost homeowners anywhere from $199 to fix a clogged drain to $2,068 to repair water damage according to HomeAdvisor’s True Cost Guide.
“To help prepare for these unexpected costs, homebuyers should plan to spend one-percent of their home purchase price on repairs and emergencies each year,” says Marianne Cusato, special housing advisor to HomeAdvisor.