Many homeowners not financially prepared for unexpected repairs

Forty-eight percent of homeowners said that an unexpected home repair has caused them anxiety.

According to NerdWallet’s 2018 Pulse on Homeownership, nearly one-third of homeowners said they do not have funds for home repairs and improvements. Yet, 44 percent of homeowners said they had an unexpected repair within 12 months of purchasing their home.

Is it worth it to hire a professional? Eighty percent of consumers said that professionals are too expensive, but 68 percent said it’s worth it. And for those that opt for the do-it-yourself route, it doesn’t always work out. Seventy-three percent of homeowners said they can figure out how to repair something thanks to resources, like YouTube and blogs, but 35 percent said they have had at least one DIY attempt end poorly.

While 38 percent of home improvement projects are DIY, they only make up 18 percent of home improvement spending, and those who DIY are more likely to be under 35 years old. Homeowners are most likely to attempt a DIY project for their bedroom or a landscaping project, compared to other areas of the properties. The report found that a kitchen room addition or renovation could save a homeowner $22,000 if they did it themselves instead of hiring a professional, while a rec room addition or renovation DIY project could save $21,250. A bedroom addition or renovation project could save $21,000 by DIY methods.

Despite some homeowners’ lack of preparedness for repairs or updates, 72 percent of homeowners reported they believe spending money to update or improve a home always will increase the value. More than half of homeowners (56 percent) said they would borrow money to do improvements or repairs that would increase the value of their home and 33 percent said they would borrow from their retirement fund for a repair or improvement.