Being a homeowner comes with a variety of benefits, including the pride of ownership, predictable costs (mortgage payment plus estimated bills and maintenance), greater privacy, an opportunity to build equity, tax breaks, and an overall sense of accomplishment!
Unfortunately, homeowners also face a few disadvantages – one particular barrier to happy homeownership tends to stick out to Americans: the burden of expensive repairs.
As the economy has improved in the United States, inflation has had a tremendous impact on the price of services for home repairs. Although many individuals appreciate a DIY project and may roll up their sleeves to complete their own repairs, renovations, and upgrades, plenty of others lack either the time or knowledge to execute the job successfully. They therefore must turn to hiring a professional. Let’s take a look at what the most expensive home repairs can cost:
- Fixing The Foundation: Average Repair – Roughly $7,000
A damaged foundation can necessitate a costly repair – sometimes it’s the most expensive project a homeowner is confronted with; therefore, it can create great financial strain on any family. Foundation damage often appears as cracks along the walls or uneven floors, and depending on the extent of the damage, costs of repairs can vary significantly. To determine the source of the problem, a homeowner must first hire an engineer to complete a structural report. The extent of the damage will determine the cost of repair – in some cases, homes may even be deemed unsafe if the foundation is particularly unstable. To address minor repairs like cracks, homeowners can anticipate paying around $500 for repairs. However, for extensive damage to the foundation, homeowners can expect to shell out an average of $4,000 – $10,000 for the repairs, depending on whether or not the repair requires the use of hydraulic piers (*Note: Some reports indicate damages can cost upwards of $100,000 in severe cases).
- New HVAC System: Average Repair – Roughly $11,000
The HVAC (heating, ventilation, and air conditioning) system encompasses the network of systems, machines, and technologies used to regulate environmental features in the home. The variation in prices related to this repair typically depends on the quality of work that the user is looking for. For eco-friendly, high-end systems, homeowners could spend up to $50,000. However, for the average system, homeowners will spend between $6,500 – $15,500 for an entirely new system (central air conditioning, $3,000-$5,000; central furnace, $2,500-$7,500; ductwork, $1,000-$3,000). To save on this expense, homeowners should consider researching rebates and incentives that may be provided by their local community.
- New Roof: Average Repair – $6,200
The average price of a new roof can vary depending on the damages to the existing roof and the material used on the roof. Homeowners must ask themselves, Am I using steel or aluminum shingle? Tiles made of concrete or clay? However, so far in 2019 in Harris County, the average cost for homeowners has been $6,213, an estimate which includes material, labor, and equipment costs, as well as project costs and cleanup fees. This does not include fees for permits, inspections, taxes, and/or contractor fees.
As A Homeowner in Texas, Consider The Following:
- If you have had to make repairs to the foundation of your home, Texas law requires that you report it to the new homeowner. Unfortunately, this repair can negatively impact the value of your home.
- Today’s homebuyers are generally looking for homes with eco-friendly systems installed. Newer homes are typically constructed with these systems, which contractors are able to purchase in large quantities at discounted prices. Should you have to replace your system, you will want to bear in mind your future competition and consider installing a more upgraded system as an investment.
- Roofing is a major concern in Texas, specifically because of unfavorable weather patterns. Annual storms can decrease the number of years a roof can be expected to last; therefore, homeowners are highly sensitive to the construction and warranty on the roof.
Do You Want to Avoid These Repairs?
As you can see, the above repairs and projects can certainly be expensive and impact your ability to sell and market your home in the future. One promising alternative, which many community members are considering, is to sell their home without making the repairs – that is, selling their home as-is. Their choice is allowing them to avoid giving up the time and money it takes to address the issues with their homes. Instead, they’ll be able to move into a new home with appropriate upgrades.
There are two primary avenues for selling a home as-is:
- Sell on the market as a fixer-upper
- Sell to an all-cash investor. Scenario one often leaves money on the table in the sale, while scenario two, when executed correctly, gives homeowners an advantage the market will not offer them.
If you are confronted with unwanted home repairs and want to learn how you can sell your home and save money, contact us today!