6 types of reservations that owners must create!

Many people are drawn to being participants in 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 under-prepared homeowners end up being, House – Rich, but financially – poor! This is often because they lack the knowledge to prepare effectively and thoroughly for several key realities associated with home ownership! Although many realize that they will need to have sufficient funds for a down payment and closing costs, many do not adequately consider or prepare for other financial needs. With that in mind, this article will attempt to briefly consider, examine, review, and discuss 6 types of reservations smart homeowners should create and prepare for.

1. 6 months Mortgage Payments: Doesn’t it make sense to be prepared for whatever life throws at us and have at least 6 months of mortgage payments tucked away and readily available? Contingency planning is the smart approach!

two. Reserve for unforeseen events / occurrences: While we realize that at some point we will have to replace appliances, roof, etc., we often don’t consider how to prepare for potential and unexpected events. What if one needs, for example, to 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, such as refrigerators, dishwashers, ovens/ranges, washers, dryers, etc.! It’s wise to have a reserve, ready, when this happens!

Four. Main reservations of the system: The main systems in a house include: air conditioning (heating and air conditioning); plumbing, roofs, sewers, etc. This can often bring higher than anticipated expenses, which need to be planned for, stop!

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 the need to repair items such as plumbing leaks (pipes, toilets, etc.), exterior damage (including driveways, walkways, walkways, etc.), periodic painting (interior and exterior), window repairs, roofs etc

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

Smart homeowners prepare to be able to reduce stress by having funds available when needed. Using dedicated, specific reservations is often a smart process, etc.!