Why manage your home like an HOA?


This year my family and I started to notice that our house needed painting, so a few weeks ago we started getting quotes. During that same time our hot water heater went out that was put in about 13 years ago. Both big ticket items. Luckily we had some money saved for repairs but what if we hadn’t?  That got me thinking…


Why don’t homeowners forecast and budget home repairs like an HOA (Homeowners Association) does for a community?


Let me explain…an HOA is an organization in a neighborhood that is formed to manage the properties within its community. That includes things like handling maintenance repairs in that neighborhood among other things.


The HOA will forecast future repairs and then create a monthly savings requirement needed in order to take care of those said repairs as they come up. Amazing idea right!!


Why wouldn’t homeowners and buyers do the same thing??


This is what I purpose- draft a list of potential repair/replacement items for the property for the estimated time you will be living there. Some examples may be:


  • Interior paint
  • Exterior paint
  • Flooring
  • Water heater
  • AC or Heater
  • Windows
  • Appliances
  • Landscaping
  • Roof


For instance if you plan on living at the house for 5 years and know that you will likely have to replace the roof, water heater, and paint the exterior, you could assign a monthly savings value for that.


Just for illustration purposes, let’s say the roof will cost $10,000 (around year 5), water heater $1,500, and the paint $3,500 (around year 2). That’s a total cost of $15,000.


Take the total cost of repairs ($15,000) and divide that by the 5 years you will be at the property and then again by 12 months in a year.  That amount equals the monthly required savings, $250, in order to handle the repairs during the time living there. You may want to add a 10% contingency to the $250 to be safe, which would equal a monthly savings requirement of $275. ($250 x 1.10)

Most home buyers budget for things like the mortgage, taxes, and utilities but not for future repairs on a monthly basis. Wouldn’t doing so make those unexpected repairs less of a problem? Would budgeting for future repairs BEFORE purchasing a property make a difference on what home you would consider buying?

If your looking to buy a home in the future please don’t hesitate to call me. I will walk you through the process step by step and explain the in’s & out’s of buying a property. I have been in the business for over 20 years, let me put my knowledge to work for you…


Anthony Pigati

Broker Owner   | NextHome Town & Country |
cell | 925.383.5590