Bianca Fabian and her husband are first-time homeowners who have lived in their East Northport, Long Island, New York, home for a little more than a year. During this time, the couple have spent at least $5,000 to repair two rotting chimneys that their home inspector didn’t notice. Both are entrepreneurs with their own businesses, but like many new homeowners across the United States, they weren’t prepared to spend extra money after saving for years to afford a single-family home.
“We now have to pick and choose what we can afford to do, and what can wait,” Fabian told The Epoch Times.
“Plus, a lot of vendors want cash—they charge a lot more for using a credit card, so we really had to ask around and do our homework to educate ourselves about what repairs like this should cost.”
The Millennial couple is just one of thousands of new American homeowners who have been walloped with unexpected but necessary home improvement costs during their first year of ownership.
As a result, the report shows that one in 10 regrets their decision to buy after spending an average of $5,719 in major repairs during that first year.
Based in Memphis, Tennessee, American Home Shield home warranty firm surveyed more than 1,000 new homeowners across America, with an average age of 45.
The top five expenditures included appliances that needed to be replaced, leaks, pests and infestations, roof issues, and electrical issues. More than 22 percent were forced to go into debt to pay for repairs, some totaling more than $10,000.
Emily Fanous, spokesperson for American Home Shield, told The Epoch Times that more than 44 percent of those surveyed did not budget for unexpected repairs.
“A lot of people were already digging deep into their pockets to buy a home, so they may not have been thinking about possible repairs at the closing,” she said.
Fanous is a new homeowner in suburban Chicago and so far has been lucky enough to avoid any major home repairs.
“The whole process felt very quick—you have just a few days to pick a home inspector and that doesn’t give you a lot of time to do your research,” she said.
In many cases, real estate agents will recommend inspectors, but that still may not guarantee that homeowners are getting the best choices.
For Fabian and her husband, the chimneys were just the beginning.
“There’s also a huge leak in our pool skimmer that will cost about $8,000 to fix,” she said.
“Right now, we can take care of it manually, which means cleaning out the pool every day, but it’s manageable. The couple may also eventually need to replace the pool deck, and Fabian is worried that could open Pandora’s box.
“Once you decide to have something fixed, you never know what else that’s related to the problem may also need to be repaired.”
Their driveway is also cracked in several areas, and their backyard may need to be leveled.
“Sometimes, I think it’s a big sinkhole that’s caving in,” she said.
Pests are also a common problem.
“There’s a neighborhood squirrel who has been feasting on part of our roof, so we’ll have to get some filler for that. Every time I go into the basement, I wonder when I’m going to find another mouse,” she said.
American Home Shield’s survey also indicated that 21 percent believe their home inspector did not do a good job, and 20 percent actually regret hiring that person.
“Our study revealed that 1 in 4 inspectors missed major issues,” Fanous said.
Mark Aakjar, owner of Mark’s Inspections in Ossining, New York, told The Epoch Times that in this market, many people are so desperate to buy a house that they often overlook potential problems.
“Their biggest concern is usually the age of the roof, which can be a major expense to replace,” he said. “Still, a lot of people are at the top of their budget and can’t afford to do anything else after purchase.”
In the New York metro area, even homes listed at $1.5 million can have major problems, he noted.
Aakjar recently inspected a $3.2 million home where the owners had not made any improvements since 1990.
“It was like a time capsule with lots of old appliances,” he said.
“It all depends on what people are willing to live with. If the refrigerator and stove work, they could wait to replace them, but I always tell them to replace an old dishwasher since they can leak.”
Other big cost items are wet basements, mold, and older HVAC systems, which often require extensive repairs.
“The biggest disaster is structural damage, but that is rare,” he said.
After almost 20 years in the business, Aakjar advises potential new homeowners to first seek out a reputable real estate agent who knows the business and has had great reviews.
Most likely, he said, they will recommend a good inspector, but it’s important for people to research and talk with potential inspectors even before they begin their home search.
“Get a list of good contractors from your agent and research them as well,” he said. “You want someone who can communicate with you in a way you can understand.”
Fabian doesn’t blame her home inspector for missing the chimney issue.
“Inspectors usually look at things on the surface level, and we didn’t know about the chimney until we had someone come in to clean out our fireplace,” she said. “They actually sent a camera down the chimney that showed us all of the problems.”
Fanous said those homeowners who did go into debt to cover major repairs were forced to either take out home equity loans, max out their credit cards, or borrow the money from family.
“Some 40 percent of those surveyed believe the home sellers didn’t take proper care of the home and cut corners when it came to repair,” she said.
Additional problems cited in the survey included garage door issues, cracked windows, broken water heaters, and flooring problems.
Almost 19 percent surveyed believed that the prior homeowners willfully deceived them about the condition of the home.
With the housing market still a challenge for first-time buyers, some would-be homeowners were willing to make sacrifices to have their offers accepted. Nearly one in 5 waived appliance replacements or general repairs to buy the home, and some 15 percent actually waived home inspections. Even more surprising, 17 percent still paid above the asking price for their homes.
While home insurance will cover specific types of damage such as fire, water, theft, and vandalism, it may not cover other items such as central air conditioning, heating systems, and appliances. Home warranties typically cover these ancillary items in addition to water heaters, interior plumbing and electrical lines, exhaust fans, and other items.
“New homeowners may want to consider a home warranty, especially if it’s an older home with an aging boiler,” Aakjar said. “It could pay for itself if that boiler goes.”
Fabian said despite all of the issues they have faced and the money they’ve spent on repairs so far, they don’t regret their decision to buy a home.
“We would have been paying a lot more for rent here in the New York metro area, and we’re confident that our investment will appreciate in value,” she said. “It’s a great neighborhood in a really good school district.”
Because they both have family living in the area, moving to another state was not an option.
The best advice she has for other new potential homeowners is to do research on home inspectors, contractors, and the cost of common repairs so that they don’t go into home ownership blindly.
“Sometimes, it can be like the Wild West when it comes to getting some straight answers on home repairs, but the more people you talk to, the more educated you’ll be about it,” Fabian said.
