Budgeting for repairs before they happen
Repairs are the cost new homeowners forget most. They don’t arrive evenly: a quiet year, then a $15,000 roof. Setting aside a steady amount each month turns surprises into planned expenses.
The two common rules of thumb
- The 1% rule: budget about 1% of the home’s value each year.
- The square-foot rule: budget about $1 per square foot each year.
Each misses something: the 1% rule overstates costs where land is expensive, and the square-foot rule understates them for older homes. We blend the two, then adjust for the home’s age and type: newer homes need less, older ones more, and condos less because the HOA handles the exterior.
The big-ticket items
Most of the money goes to a few systems with predictable lifespans: the roof (about 20 to 30 years), heating and cooling (15 to 20), the water heater (10 to 12), exterior paint (7 to 10), appliances (10 to 15) and windows (25 to 30). If you know their ages, enter them; otherwise we estimate from the year built. Anything likely due within five years is added to your monthly set-aside.
Before you buy
Ask the sellers how old the roof, heating, cooling and water heater are, and read the inspection report with replacement dates in mind. A system near the end of its life is a fair reason to negotiate; see home inspections. Then add the monthly amount to the house-poor check to see your full budget.
Questions buyers ask
How much should I save for home maintenance?
A common target is about 1% of the home’s value a year, more for older homes and less for condos and newer homes.
How long does a roof last?
An asphalt shingle roof typically lasts about 20 to 30 years, depending on climate, material and upkeep.
Should I negotiate if a system is old?
Often yes. A roof or furnace near the end of its life is a fair reason to ask for a credit or a lower price after the inspection.