with Jacquelyn Smith, Remax Achievers Inc.
One way to prepare for the costs of owning a home beyond the mortgage payment, insurance and taxes is to know the expected life expectancy of your home’s components.
Such knowledge doesn’t supersede the use of a home inspector when buying a home, but it can help you develop a savings plan so you are prepared for the inevitable. Sooner or later you’ll have to repair or replace many of your home’s parts – inside and out.
Knowledge of components’ life expectancies is what homeowner associations use, in part, to build a reserve fund designed to spread out the cost of the inevitable. When the roof goes, the appliances conk out, or the paint begins to fade, it’s a lot easier to come up with the cash if you’ve already got some socked away for just that kind of rainy day.
The National Association of Home Builders, along with the Bank of America, has developed the “NAHB/BoA Home Equity Study of Life Expectancy of Home Components” to help you take the guesswork out of preparing for the worst. The report suggests you use the timelines as a general guideline. Local weather conditions, use habits, regular maintenance – or the lack thereof – can all affect the life expectancy of many components. Personal tastes for contemporary upgrades, remodeling needs and other factors may also dictate replacing parts before their useful life span is up.
ROOFING - Is it new, or ready to be replaced in 5 years, what type of roof? The cost of your new roof may depend on material and size.
HVAC - Heating, ventilation and air conditioning systems require a religious regimen of maintenance. Still, most components give up within 25 years. Furnaces break down in 15 to 20 years, heat pumps 16 years, and air conditioning units 10 to 15 years. Tankless water heaters can go for 20 years or more, but electric or gas water heaters only 10 years. Thermostats have a 35-year lifespan but are often replaced for more efficient models.
These are all items that you will have evaluate to see when you will need to address repair or replacement and budget yourself accordingly.
Looking to sell or buy a home with an agent who will work hard for you please don’t hesitate to make an appointment with me or my team-Jackie Smith, Nancy and Don Peters.
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