Thoughts on house maintenance budget..?

[Maistre Gracey]

We are building a house in Sebastian, Florida.
We have owned before, but it was a townhouse so much of the maintenance was covered through fees
I’m at a loss of how to budget for maintenance... everything from everyday small stuff, through a new roof every 25 years.
I’m fortunate that I’m starting out with all brand new stuff, but I realize I should put x amount of dollars away every year/month. Does anyone have a plan or spreadsheet for such a thing?
I’m really new to the house thing and NOT computer savvy.
I want to be prepared for the expenses in my future and not have an “oh shoot” moment.

Thanks for your help.

 

[barkley]

it's really going to vary depending on how much different types of maintenance services/repairs/replacements run where your new home will be (and there's the unknown of how much costs will go up over the years for big stuff). that said-since it's new construction you could buy a home warranty through one the companies like american home shield. that way if something breaks down (that's outside of your original builder/manufacturer warranty for certain items) you would pay a co-pay and they would cover the remainder. we had one on both our homes in california but found where we moved in washington there weren't enough local contracted providers to make it worthwhile (we do have a service contract on our hvac system though-it runs us $250 per year, includes a yearly system check and covers parts and labor-also bumps us to the top of the list for service call appointments).

i do a yearly budget for 'household upkeep' that i put 1/12th per month into. the money sits in a bank account until a particular expense comes up (with some they are mostly summer). my home maintainance over the course of a year includes-

pest service
yard service (weed spray/aeration/spring prep/winter prep-we do all mowing and such ourselves)
hvac service contract
generator servicing (we have a whole house and get it checked once a month).

as for the BIG STUFF (and i got hit with a couple of those this past month to the tune of over $5000 but one will likely last another 20 years the other 7-10), i put a couple hundred per month extra into that bank account and just let it sit and grow. granted, it's not earning much in interest but when we got hit with a one-two punch this past month the money was available from building up over a couple of years.

 

[RamblingMad]

I spend anywhere from $1000 to $5000 a year. I already had to have my AC repaired, and that set me back $1200.

 

[Jax1023]

On another budgeting board I have seen them say to set aside 1-3% of the house value per year for mantenance. Higher end in a lower cost house- cause 1% of a 80k house isn’t gonna cover much.

I’ve found about 2% of my house value per year to be fairly accurate and allow the money to build up for larger replacement items like appliances, roof etc.

With a new build, you’ve probably got 7-10 years before things need to be replaced, but they are probably more likely to all start going at the same time.

 

[RamblingMad]

On another budgeting board I have seen them say to set aside 1-3% of the house value per year for mantenance. Higher end in a lower cost house- cause 1% of a 80k house isn’t gonna cover much.

I’ve found about 2% of my house value per year to be fairly accurate and allow the money to build up for larger replacement items like appliances, roof etc.

With a new build, you’ve probably got 7-10 years before things need to be replaced, but they are probably more likely to all start going at the same time.

You’ll have builders special stuff that just won’t last long. However, if you go too high end with the replacements, then maintenance will get you. That’s the problem I’m having with my AC. The previous owner put in a complicated system that’s expensive to maintain.

 

[tvguy]

You’ll have builders special stuff that just won’t last long. However, if you go too high end with the replacements, then maintenance will get you. That’s the problem I’m having with my AC. The previous owner put in a complicated system that’s expensive to maintain.

I'll tell you from personal experience. "builders special stuff" can last a long time with care. Our house was built in 1979, we bought it in 1983. The cheap carpet, flooring, cabinets etc. weren't replaced until we remodeled in 2013. We raised two kids, and had 5 cats in those years and it held up. And we're all about function, not what is in style, so that helps.
I'm nursing along a 28 year old Trane Heat Pump. I have it serviced twice a year for $75 and the repair guy says it's worth it because replacing it will cost close to $15,000, and even a top of the line replacement isn't likely to last more than 10 years these days, and it won't save me $15,000 on my energy bill!

 

[RamblingMad]

I'll tell you from personal experience. "builders special stuff" can last a long time with care. Our house was built in 1979, we bought it in 1983. The cheap carpet, flooring, cabinets etc. weren't replaced until we remodeled in 2013. We raised two kids, and had 5 cats in those years and it held up. And we're all about function, not what is in style, so that helps.
I'm nursing along a 28 year old Trane Heat Pump. I have it serviced twice a year for $75 and the repair guy says it's worth it because replacing it will cost close to $15,000, and even a top of the line replacement isn't likely to last more than 10 years these days, and it won't save me $15,000 on my energy bill!

New homes aren’t built as well. I have a second AC unit that is older than the one causing me maintenance issues. The HVAC told me that it was built with much better parts than the new stuff. He said to keep it as long as I can.

 

[miztressuz]

Agree with @Jax1023 . Personally I think 1% is too little but if it's all someone can do it's better than nothing and not a bad place to start. There will be years where you may use very little out of the maintenance fund but you will want to steadily grow it so that it'll cover those big expenses like the new roof 20 years down the road or all new appliances in 10 years. And most likely since you are putting everything in at the same time they may reach the fail point around the same time. I put in all new appliances at the same time and half failed within a year of each other.

The percentage of house value is just a rough estimate to get started. If you have unique or specific features of the home that may be more costly to repair or replace, then I'd estimate at least what it would cost you today and plan to have that at minimum ready for it's estimated end of life. For example if it'll take 50k to replace the roof, and it's expected to last 25 years, I'd try to set aside 2k per year for that as a goal. Things change so I'd keep an eye on pricing as the years go on to see what changes are happening to adjust as it goes.

You could also use your previous fees for the townhouse as a guide to start for the everyday small stuff. A lot of that is going to depend on how DIY you plan to be - doing your own yard maintenance? need pool maintenance? heating/ac contracts? etc - so it could be over or under, but it's somewhere to start.

 

[SteveH]

A percentage or a flat amount put aside, either way if you do something you're better off then most of your neighbors. Most new home buyers put all of their savings into their new home, furnishings and landscaping. You need to have the rainy day repair fund of say $5,000 (depending on your home's value) so you can keep on repairs.

You can make a list of the major items in your home and their life expectancy. Roof, water heater, A/C & heating system, water softener/water filter, appliances, etc. Then begin to figure out replacement costs and time frame, build a your budget to replace things like that over a period of time.

Most new homes around here come with a 1 year warranty, some you can extend by another 4+ years for a reasonable cost, this isn't a bad idea if money will be short - things do go wrong on new homes. If this is a stock house I find most use pretty low-end items, try to upgrade the water heater, appliances, etc now.

The lesson I learned is to ask the repair companies about the quality of the appliances. Our A/C was undersized and cheap. The HVAC company said they to reviews for new home buyers even for new construction, it was cheap and would have found out that it was undersized and not a quality system before I signed off. I had no idea for a few $ I could have had that done.

 

[Mackenzie Click-Mickelson]

You’ll have builders special stuff that just won’t last long. However, if you go too high end with the replacements, then maintenance will get you. That’s the problem I’m having with my AC. The previous owner put in a complicated system that’s expensive to maintain.

It depends on if they have a warranty which typically new builds come with some sort of warranty. Ours was 1 year for cosmetic, appliances, grass/lawn. 5 year warranty on some other things that are escaping my mind right now and 10 year warranty on structural. It's also a transferable warranty in case we sell the home.

In our home appliances were 1 year warranty..now wouldn't you know the microwave goes out a couple weeks before the warranty ends. BUT when the repair guy comes (for free too) it's not doing what it was doing so there was nothing to fix. About a month later it started acting up again so we just turned the breaker off to the microwave and have been using a spare one. Not ideal but it's better than several hundred on a new microwave. That would be something I would likely include in a maintenance budget.

Furnace is covered under a 5 year warranty that will run out in the next month or so. The furnace is actually a very good one that is about as energy efficient as you can get. Last year in cooler but thankfully not freezing cold temps it stopped working and was blowing fuses and stopped working. We called repair people listed for the furnace and they fixed it for free (after several times coming out in 1 1/2 days) other than the first time had a service fee for coming out. The issue actually was not with the furnace itself but rather wires pinched in the wall towards the thermostat. Since they loosened the wires we've not had an issue. We believe as the home breathed the wires got pinched over time.

Our fridge was not included with the home when it was built and we bought that separately. That is covered under a 5 year warranty as well. Fridges however these days don't tend to last uber long so I'm already expecting that.

Our new build had a 3 month inspection and then an 11 month inspection, things like nail pops, floor repair, grout repair and issues we had with the lawn were all fixed then. If our microwave had had issues prior to several weeks before the warranty ending it would have been replaced/repaired too.

 

[starry_solo]

Home warranty is probably a good way to go, although my family has never had one.
Add up the cost to replace all the appliances - stove, microwave, dishwasher, washer, dryer, HVAC - and save about 10% of that cost per year
Lawn maintenance - depends on how big your property will be, but budget $100/month
What deductible do you plan to have for your home insurance policy? Save that amount too.

 

[Mackenzie Click-Mickelson]

Probably the most expensive thing in our new home (just over 4 1/2 years old at this point) is lawn care. That's because of a couple of things:

1) We have bluegrass. Bluegrass is temperamental in our area. Technically fescue is better suited to deal with our climate but fescue, especially thick blade, IMO is ugly and not as soft. Bluegrass, when it looks good, is just so pretty. One of our neighbors has a thin blade fescue and it at least looks prettier than thick blad. Bluegrass can work in our area but the upkeep is more labor intensive than fescue. Check what grass you might be getting. It may take living in the home for a while to figure out what trouble spots you may have. Plus a home can alter the soil conditions too.

2) We have two different conditions: front of the house is full sun, back of the house is more shaded because we back up to trees.

3) Moles. They are the bane of good lawn care here. They are extremely destructive and hard to get rid of. People also have issues with voles but ours in particular are moles.

We do our own lawn care with products bought from a local company (Grass Pad). They have a year round program plus other things. We've always been able to go in or call them and get great advice particular to our area. If you have a local company you might try that. I really like how ours knows our area and climate and can give us more specialized advice than just going to Home Depot and getting Scotts.

Don't get sticker shock with your first couple months of watering your lawn (depending on when you move in). Ours was probably on the lower side as we moved in in September when the grass is starting to wind down but the first water bill was over $300. Other people we know have gone into the $600-$700 range. New sod costs $$$ on the water front.

On the topic of roof our neighborhood required a 50 year architectural/dimensional roofing. Do you have any such requirements there? In my area for the most part it's going to be hail damage though wind is a factor there if it tears off shingles.

 

[ldo]

Ballpark for big items, many might last longer and then that $ is reserves for future use:
Roof 20 years
Ac 10 years
Water heater 15 years
Furnace 15-20 years
Carpet 15 years
Appliances 10 years-some will last longer and some shorter lifespans.
Exterior paint 7 years
Tree trimming 5 years.

 

[Maistre Gracey]

Many, many great responses here.
Thank you all !

My initial plan (before I asked the question here) was to sock away $5k per year. That’s only about 1%, but all my lawn/yard/pool care is already factored into my normal monthly budget.
Sounds like I’m at least in the ballpark...

 

[Anthony1971]

First WHY...Have seen you on the boards for a looong time and know you always owned a Condo. A lot of people own and as they age want to not own a house.
With that it has a lot of good as well....
What you speak of is so IF......
As one person stated what materials you choose for the builder to use..... This however is not always a deciding factor on how long it is how you maintain things. Will you clean your ac compressor on a regular basis? how cool do you keep it in your house changing the filter... this can extend how long it lasts by multiple years in fact here I have seen them go after 7-8 years and other 30+ years and we only use them 4 maybe 5 months out of the year and 2-3 are low usage.
a roof if the attic is vented correctly it will last long past the fake warranty you are quoted... do you clean the leaves and ??? off it in a timely manner is it shaded and even the slope....

spend time and some of the money you are saving to research and understand how to maintain what you own it will last a lot longer.....

 

[_19disnA]

If currently building a new home, I would start by working with the builder and upgrades/options that will result in lower maintenance. Having the right Rvalue of insulation can lower you cooling/heating bill. Is the exterior stone/siding/??? and will it require periodic painting? Does the builder offer grass/landscaping or is that something you do on your own? What grade of shingles do they put on the roof? Make sure to plant shrubs/grass appropriate for your area and look at ease of maintenance. Is the HVAC appropriately sized for your sq footage? Builders often try to put in the smallest possible unit and if it has to run continuously to keep the house comfortable, it won't last as long.

New homes typically have a 1 yr builder warranty. Extended warranties sometimes come with a lot of disclaimers and exclusions and may be more hassle then they are worth.

 

[Maistre Gracey]

First WHY...Have seen you on the boards for a looong time and know you always owned a Condo. A lot of people own and as they age want to not own a house.
With that it has a lot of good as well....
What you speak of is so IF......
As one person stated what materials you choose for the builder to use..... This however is not always a deciding factor on how long it is how you maintain things. Will you clean your ac compressor on a regular basis? how cool do you keep it in your house changing the filter... this can extend how long it lasts by multiple years in fact here I have seen them go after 7-8 years and other 30+ years and we only use them 4 maybe 5 months out of the year and 2-3 are low usage.
a roof if the attic is vented correctly it will last long past the fake warranty you are quoted... do you clean the leaves and ??? off it in a timely manner is it shaded and even the slope....

spend time and some of the money you are saving to research and understand how to maintain what you own it will last a lot longer.....

Why..?? Well I guess we are doing it backwards. We are buildilding our forever home. I am 55 and wife is 48. We are not *that* old.
Our builder has been fantastic with advice.
We are not super handy with repairs, but can certainly change a filter.
We will leave the rest to the pros. I’m not climbing on the roof. I’ll leave that to others.

Thanks for your input.

 

[MillauFr]

Probably the most expensive thing in our new home (just over 4 1/2 years old at this point) is lawn care.

I guess we are lucky to live where we do. You are expected to never water your lawn, put any chemicals on it, and not use a gas powered mower. It costs nearly zero to "maintain" your lawn here. You run the risk of upsetting the enviro-freaks around here if you spend anything on it. You will get a visit from them if you break their "rules".

 

[MillauFr]

Our Nextdoor neighborhood group is blowing up this afternoon that even manually popping out dandelions is "bad" for bees. LOL

 

[Mackenzie Click-Mickelson]

I guess we are lucky to live where we do. You are expected to never water your lawn, put any chemicals on it, and not use a gas powered mower. It costs nearly zero to "maintain" your lawn here. You run the risk of upsetting the enviro-freaks around here if you spend anything on it. You will get a visit from them if you break their "rules".

We do have a battery powered lawn mower which I do really like. It's a lot quieter with virtually no maintenance (other than blade sharpening) on the machine itself.

Technically for the city you're to try not to wash chemicals into the storm drain systems at least as much as possible.

We're in an HOA and part of that is to maintain a lawn mostly free of weeds, regularly mowed, and overall in good shape. Droughts put a strain on it (like last year) but they understand that at least to a point.

While we haven't done it yet our city gives you up to $75 or 50% whichever is less back if you install a rain barrel and it's for up to 2 rain barrels and have it inspected by them. The rain barrel wouldn't really be enough at all to water your lawn it may help water plants that might help reduce costs just a wee bit. A rain garden, bioswale, stream buffer or native plantings will get you up to $1,000 or 50% whichever is less.