92% of Homeowners Experience a Home-Related Issue in Year One

In a survey of over 1,000 homeowners last year, 92% reported encountering a home-related issue in their first year of homeownership, according to American Home Shield. 

The survey findings reveal why it’s so important for prospective homebuyers and new homeowners to budget for first-year maintenance/repair tasks. Although first-year expenses are common, 44% of respondents said they did not budget for them, and 82% had to pay out of pocket (an average of $5,719). 

The top issues new homeowners faced in their first year were: 

1. Appliances needed to be replaced (47%)
2. Leaks (22%) 
3. Pests and/or infestation (21%) 
4. Roof issues (21%) 
5. Electrical issues (20%) 
6. HVAC system died (16%) 
7. Garage door problems (15%) 
8. Windows needed to be replaced (14%) 
9. Water heater broke (14%) 
10. Flooring problems (13%) 

Some respondents blamed their high first-year expenses on their home inspectors, as 23% said their inspectors missed major issues. However, while a good home inspection can point out issues with a home (amongst other things), it’s not an insurance policy against repairs. Homebuyers should learn about home inspections and research inspectors thoroughly before choosing one to work with. 

Overall, homeownership is an investment, and waiving some of the costs may save money upfront, but it can lead to other expenses later down the road. Homeowners who responded to this survey most waived: 

1. Appliance replacement (47%) 
2. Repairs (18%) 
3. Inspection (15%) 
4. Cleaning (15%) 

Whether homebuyers waive costs or not, first-year repair expenses are very common. It’s important to budget for these expenses to avoid financial strain while maintaining the home’s safety, comfort and functionality.