April 11th, 2019

Remember those 7 Financial Asset Questions? Well, here’s one to add to the list: surprise home repairs. A recently conducted survey by HomeServe USA sought responses from homeowners on their plans for dealing with home repairs, and what they found leaves some room for concern. The survey found that although more than 50% of respondents stated they had a home repair emergency in the past 12 months (the rising median age of homes might have something to do with this), a large chunk of respondents (18%) said they don’t have any money set aside for surprise home repairs. And repairs can be costly. For instance, small repairs such as replacing faucets and fixing pipes average around $304. Other repairs, such as installing asphalt shingle roofing, can easily cost thousands of dollars for homeowners, and if they haven’t budgeted for those surprise fixes, they may find themselves in a tough financial predicament. As a mortgage professional, you should view it as your job to educate your clients on how to properly plan for the unexpected. You could save many borrowers from big financial risks by simply walking them through the different expenses of homeownership, suggesting they do a budget, and advising them to keep money aside for future emergencies. (Sources: HomeServe USA, HomeAdvisor)