How to Handle Unexpected Home Repairs Without Draining Your Savings

Sharing is caring!

Every property will eventually need major repairs, but sometimes they hit unexpectedly. No matter how well you track your maintenance needs, something will slip through the cracks, and you’ll be left with a big bill. While certain repairs are inevitable, you don’t need to drain your savings account to cover the cost. 

 

Here are some strategies you can apply to handle big home repairs on a tight budget.

 

  1. Consider all of your options

 

Before paying for full repairs, consider all the possibilities to see if there’s a way to save some cash. While you want to avoid taking a band-aid approach to home repairs, sometimes partial repairs are adequate. For example, if getting a new roof isn’t in your budget, ask about other options. Some roofing companies offer roof restorations where you might have the option to replace just a portion of your roof. It all depends on the company, your property, and your current roofing system. If you just get a section of shingles replaced, you’ll still need to get a new roof eventually, but you’ll have time to save up for it.

 

  1. Take advantage of a personal loan

 

Going into debt isn’t exactly a money-saving strategy, but it can be if you genuinely need a repair. For example, if your plumbing is outdated and your pipes keep leaking or bursting, taking out a loan to invest in new plumbing will save you a lot of money by preventing future damage. It can also help you get a higher sale price if you choose to sell your home.

 

  1. Prioritize

 

Not all repairs are urgent. Some issues, like a leaky roof or bad electrical wiring, require immediate attention, but cosmetic updates can wait. Address safety hazards right away, but wait on issues that only impact aesthetics and aren’t going to lead to more extensive damage if postponed. By prioritizing your repairs, you’ll have more time to save money for those cosmetic issues that can wait.

 

  1. Pursue financial support programs

 

You might qualify for local or federal financial aid programs reserved for essential home repairs. For example, the U.S. Department of Agriculture offers loans and grants to rural homeowners who meet certain qualifications.

 

  1. Offset the purchase with energy-efficient upgrades

 

If you have the budget to cover a big home repair, offset the cost by investing in an energy-efficient solution. For example, if you need to replace your HVAC system, get a unit that will reduce your energy bills in the future.

 

  1. Start creating a home repair fund

 

If you don’t already have a separate savings account for home repairs, now is the time to start creating one. Tuck away a set amount of each paycheck, tax refunds, employment bonuses, or deposit contributions whenever possible. Even if it’s just $20 or $100, even the smallest amount of money will add up over time. This fund will cushion the blow of unexpected repairs in the future.

 

  1. Consider DIY options

 

In most states, you’re allowed to perform your own repairs, as long as you follow building codes and get the proper permits. If that’s an option, consider a DIY approach to repairs that don’t require advanced skills or repairs where there isn’t much at stake if you make a mistake. Alternatively, you can hire a friend who knows how to get the job done.

 

  1. Get multiple quotes

 

Professional contractor fees vary, so shop around to get a good deal. However, don’t choose the cheapest option just to save money. Sometimes lower prices reflect a lack of experience and professionalism, so evaluate each option individually.

 

  1. Negotiate your contract

 

Once you find a contractor you’d like to work with, negotiate the terms of your agreement and ask if they’ll accept a payment plan or offer you a bundled deal that includes other services at a slight discount. It may not save you a ton of money, but you’ll avoid having to pay everything upfront.

 

  1. Consider a Home Equity Line of Credit (HELOC)

 

If you’ve built equity in your home, a HELOC can provide you with the funds you need for repairs at a low interest rate. Just be aware that taking out this type of loan uses your home as collateral.

 

  1. Ask about financing

 

Some contractors, especially roofers, partner with financing companies to offer payment plans to their clients. This can be a great way to get repairs taken care of without having to pay the entire bill at once.

 

Stay proactive

 

Tackling major home repairs on a tight budget can feel impossible, but by prioritizing critical repairs, negotiating, and employing DIY solutions, you can fix your property without draining your savings account.