6 Types of Reservations Owners Must Create!

Many people are attracted to being part of the so-called American Dream and owning a home of their own! As a licensed real estate seller in New York State for over 15 years, I have witnessed many unprepared homeowners who end up being, House – Rich, but financially – poor! This is often because they lack the knowledge to effectively and thoroughly prepare for several key realities associated with homeownership! Although many realize that they will need to have sufficient funds for a down payment and closing costs, many do not adequately consider and prepare for other financial needs. With that in mind, this article will briefly attempt to consider, examine, review, and discuss 6 types of reservations smart owners should create and prepare for.

1. 6 months Mortgage payments: Doesn’t it make sense to be prepared for whatever life throws your way and have at least 6 months of mortgage payments set aside and readily available? Contingency planning is the smartest approach!

two. Reserve for contingencies/occurrences: While we realize that at some point we will need to replace appliances, roof, etc., we often don’t consider how to prepare for potential and unexpected events. What if one needs to, for example, pay for damages that exceed insurance coverage, as well as meet deductibles? There are many examples of these kinds of possibilities!

3. Appliance reservations: Don’t be surprised when you need (or want) to replace some appliances, like refrigerators, dishwashers, ovens/ranges, washers, dryers, etc.! It is wise to have a reserve, ready, when this happens!

Four. Main reserves of the system: The main systems of a house include: air conditioning (heating and air conditioning); plumbing, roofing, sewage, etc. This can often lead to higher expenses than anticipated, which must be planned for!

5, Repair: The difference between repairs and renovations is that the latter is often voluntary, while the former may not be expected. Some repairs may be minor while others may be major! Homeowners often find it necessary to repair items such as plumbing leaks (pipes, toilets, etc.), exterior damage (including driveways, driveways, walkways, etc.), periodic painting (interior and exterior), repairs to ceilings etc.

6. Improvements / renovations: People often want to improve certain parts of their home, especially kitchens and bathrooms! This includes: kitchen cabinets; flooring and countertop replacement; bathroom vanities; whole house painting/re-flooring/carpeting, etc. Some decide to renovate areas, including: enlarge/enlarge, etc.

Smart homeowners prepare so they can reduce stress by having funds available when needed. Using specific, dedicated reserves is often a smart process, etc!