How to Prepare for a Major Home Repair

Owning a home is a huge milestone, but let’s be honest—when things start breaking down, it can feel overwhelming. Whether it’s a leaky roof, a broken HVAC system, or outdated plumbing, a major home repair can become a huge burden both financially and emotionally. Fortunately, with a little direction and preparation, you can tackle these projects with confidence.

Planning ahead is one of the best ways to avoid costly home repairs and future headaches. By taking the time to get ready now, you can save money, reduce stress, and keep your home in great shape for years to come. Learn more about ways to prepare for home repairs—from creating a dedicated budget to figuring out which repairs come first. 

Create a home repair budget

Home repairs are inevitable, and creating a home repair budget is the first step to making sure you’re not caught off guard when things go wrong.  Consider the following:

• How much to save: A good rule of thumb is to save about 1-4% of your home’s value each year for repairs. For a $300,000 home, that’s $3,000-$12,000 annually.
• Separate your funds: Divide your budget into emergency repairs (like a leaky water heater) and planned repairs (like updating your kitchen). For your emergency fund, it’s smart to have $5,000-$10,000 set aside for when something breaks. 
• Make it automatic: Set up automatic transfers to your home repair fund each month and forget about it. You’ll build your savings effortlessly.  

As you get familiar with your home’s needs, you might need to adjust your budget. Remember—it’s always better to save a bit extra than to be caught off guard by a big surprise repair.

Catch problems early with regular inspections

The sooner you know about potential issues, the better you can plan for them. Regular maintenance is your best friend when it comes to staying ahead of costly home repairs.

• Do your own inspections: Walk through your home every 6 months, looking for cracks, leaks, or other damage. Don’t forget hidden spots like the attic or behind big appliances.
• Know key items’ lifespans: Every part of your home has a lifespan, and knowing the timelines helps you plan for replacements. For example, your roof could last 20-30 years, HVAC systems about 15-20 years, and water heaters around 8-12 years.
• Bring in the pros: Every few years, it’s worth bringing in a professional inspector. They’ll spot things you might miss and give you an expert assessment of your home’s condition. 

By staying proactive with inspections, you’ll spot issues before they become costly. Now, let’s dive into how you should prioritize repairs when issues are found.

Prioritize high-impact repairs

Not every repair is an emergency—some can wait, while others need immediate attention. Prioritizing the most urgent repairs means your home stays safe and functional without causing unnecessary stress. Here’s how to figure out what to tackle first:

• Safety comes first: If there’s an issue that could put your family at risk, like an electrical problem, gas leak, or structural damage, take care of it immediately. No time to waste!
• Consider long-term damage: Some repairs might not seem urgent, but if you put them off, they can get worse over time. A small roof leak could lead to major water damage if ignored. 
• Balance needs with wants: While essential repairs should be a priority, don’t neglect simple upgrades that make your home more enjoyable—like a fresh coat of paint or bathroom remodel.

Once you’ve decided what needs attention, it’s time to find reliable professionals who can get the job done.

Finding reliable contractors

Choosing the right contractor makes all the difference when tackling big home repairs. By finding trusted professionals ahead of time, you’ll be ready for any project without the pressure of searching last minute.

1. Ask around: Start with recommendations from friends, family, or neighbors. Online reviews on platforms like Angi or Yelp can also be helpful.
2. Check their credentials: Always verify that contractors are licensed, insured, and certified for the work they’re doing.
3. Compare estimates: Request at least 3 detailed quotes so you can compare costs, timelines, and warranties.
4. Talk to references: Reach out to past clients to ask about their experience. Were they happy with the work? Did the contractor meet deadlines?
5. Choose good communicators: Look for someone who listens to your concerns, answers your questions, and explains their plan clearly. How they treat you will tell you about the quality of their work.

Understanding warranties and insurance

Warranties and insurance can help cushion the blow of unexpected home repairs but knowing what’s covered is key. Review your protections regularly to make sure you’re maximizing your benefits.

• Home warranties: These can cover big-ticket items like your HVAC or appliances but read the fine print. Not all repairs are covered, and service fees can add up.
• Homeowners insurance: Your insurance typically covers damage from fire, wind, hail, water (not from flooding), and theft. Check your policy to find out what’s included in yours.
• Additional coverage: If you live in a flood-prone area or need specific coverage, like sewer line insurance, explore extra coverage options for added protection.

Keep in mind, these shouldn’t replace your emergency fund or regular maintenance efforts. Use them as part of a comprehensive strategy for managing your home repair costs.

Avoid home repairs with preventative maintenance 

Routine maintenance is your best defense against expensive repairs. By staying on top of regular tasks, you’ll prevent small issues from turning into bigger, more expensive issues in the future.

• Create a maintenance schedule: Create a checklist of monthly, seasonal, and annual house maintenance tasks and stick to it. For example, check your chimney once a year. Clean your gutters twice a year. Test your smoke detectors monthly.
• DIY vs. professional help: Some maintenance tasks are easy to do yourself, but for more complex jobs like plumbing or electric work, call in a professional. It’s worth the cost to ensure everything’s safe and in good shape, including you.
• Focus on the big stuff: Keep a special eye on your home’s roof, plumbing, HVAC system, and foundation. These are the most expensive to repair if something goes wrong.  

Home repairs may be prevented with proper upkeep, but sometimes you need extra support for larger projects. Let’s explore financing options that can help when major home repair costs come your way.

Financing options for major home repairs

Even with careful planning and budgeting, there may be times you need a little help to cover major home repairs. Here’s how to decide on the best financing option for your situation:

Home equity loans and lines of credit:These options let you borrow against the equity in your home, making them ideal for bigger projects where you need a large amount of money.

• Home equity loans are lump sum loans with a fixed-interest rate and a set repayment schedule.
• Home equity lines of credit (HELOC) work like a credit card, with a revolving credit line and variable interest rates.

Pros:

• Typically, lower interest rates than personal loans or credit cards
• Large loan amounts based on amount of equity in home

Cons:

• Your home is used as collateral, risk of foreclosure if you can’t repay
• There may be closing costs and fees involved

Personal loans: If you don’t need a huge sum and prefer a straightforward solution, an unsecured personal loan could be a good choice.  

Pros:

• No collateral required
• Fixed interest rates and clear repayment terms
• Funds can be used for anything, including home repairs

Cons:

• Higher interest rates than home equity loans
• May come with origination fees

Credit cards: While credit cards are generally not the best for big expenses, they can be a useful option for smaller repairs or short-term fixes.

Pros:

• Easy access to funds, available right away
• Some cards offer rewards or cash back
• 0% APR introductory offers provide interest-free financing for a short time

Cons:

• High interest rates after the introductory period
• Can lead to long-term debt if not managed carefully

Contractor financing: Some contractors offer financing plans for their services. This can be an easy way to fund bigger projects if you want to pay in installments instead of upfront.

Pros:

• Easy, one-stop financing for large projects
• May offer promotional rates that reduce costs

Cons:

• Interest rates are often higher than alternatives
• Terms might not be as flexible as other options

When considering financing, compare interest rates, terms, and fees from different sources, and always read the fine print. Your best option is the one that helps you cover the repair costs without adding unnecessary strain.

Conclusion

Your home is more than just a financial asset—it’s where life’s most important moments happen, and maintaining it properly ensures those moments are safe and enjoyable. By staying prepared and addressing repairs before they become bigger problems, you can protect your home’s value, comfort, and functionality for the long term.  

This article is for educational purposes only and is not intended to provide financial, tax or legal advice. You should consult a professional for specific advice. Best Egg is not responsible for the information contained in third-party sites cited or hyperlinked in this article. Best Egg is not responsible for, and does not provide or endorse third party products, services or other third-party content.