Ownership Responsibilities

Home Maintenance

You need to educate yourself on the basic skills of owning a home. As the proud new owner, it is your responsibility to take care of home maintenance and most repairs.

As part of your pre-purchase activities, it is important to be present during the inspection – a good time to learn the intimate details of your home and how to care for it.

• Locate important controls. Switches and valves for electricity, water and gas within the home. Know where the control or service panel is located, determine where the circuit breaker is in case a circuit is tripped or a fuse is blown. It is important to know where these valves and switches are and how to operate them…in the dark.
• Develop a maintenance and inspection schedule. Regular inspection and maintenance is important to be aware of and prevent possible problems. This can be your biggest money saver yet! Have a professional check out the following:
  • Roof
  • Chimneys
  • Gutters
  • Siding
  • Foundation
  • Interior walls and ceilings
  • Tub & shower areas
  • Doors & windows
  • Heating system & equipment
  • Plumbing
  • Safety equipment
  • Basement or crawl space
  • Possibility of lead-based paint in homes built before 1978
  • Possibility of asbestos in homes build before 1978

Do-it-yourself repairs and maintenance are, of course, the best way to save money. Take time to become familiar with your home.

By doing your own minor repairs, you develop an understanding of how things work in your home and how to recognize small problems before they become big ones.

There are many products on the market, including books with step-by-step instructions, videos, computer software, websites, and customer classes at local hardware stores, etc. You can always ask a friend who has worked on projects similar to yours.

Note: In some cases, doing work yourself can void a warranty on any work done in your home. If warranties are available, read them before you start any do-it-yourself projects.

Calling in the Pros

If the repair is more than you can handle, there’s no shame in calling someone who can do the job, especially where electrical and plumbing work, lead paint removal or other environmental abatement is concerned. You could potentially create safety hazards or make the original problem worse if it’s not handled correctly. If you cannot provide a professional look to the finished project, it may prove to be a problem later when you plan to sell your home.

Once you’ve totaled all the do-it-yourself costs of tools, materials, labor, and your time, a contractor may seem like a bargain. So, give careful thought and consideration before starting any home repair projects.

Finding the right contractor to do repairs or improvements is not an easy task. Keep in mind that although most repair person(s) are honest, there are those few that give a bad name to the contracting industry.

• Locate a potential contractor; check with friends, the phone book, and hardware stores
• Before signing any contracts, get three to five estimates. Do your comparison-shopping. Check the contractor’s credentials, the Better Business Bureau, Home Builders Association, and the Chamber of Commerce. Check for bonding, insurance and licensing.
• Be sure your contractor agrees to get the necessary building permits required for the job.
• Watch out for those dreaded door-to-door or phone solicitations for contract work. Many offer inferior products or may not provide the service for which you paid. Scrutinize all literature they may have. Check all credentials.

Absolutely never sign any contract under pressure. If you feel pressure to sign without adequate time to think, it’s a sure warning sign that you should not sign that contract.

Note: Select the right person for the right job. A jack-of-all-trades is usually a master of none.

When working with a construction contractor, make sure everything is written out clearly and to your understanding. You have a right to know what will and will not be done, in what timeframe, and a break down of material and labor costs. Don’t accept just a verbal agreement, you’ll need something more substantial should any unforeseen problems arise.

Read everything before signing and, as with all written documents, keep a copy for yourself. Remember that a job is never complete until it meets your satisfaction and the final payment is not made until that point.

For large jobs, contractors may need to hire subcontractors to help with part or all of the contracted work, in which case you’ll need to know about:

• Lien waivers
• Releases
• Indemnification
• Construction liens

When canceling a contract, federal law allows a three-day cancellation period for contracts signed away from the contractor’s office with a cost ranging between $25 and $25,000. The contractor is required to inform the homeowner both verbally and in writing and to provide two sets of forms for canceling.

Note: If problems arise, it’s important to have all commitments in writing from your contractor.

• Try reminding the contractor of his/her obligations according to the written contract. If the direct approach doesn’t work, try the contractor’s trade association. Leave a paper trail. Send you complaint in writing with a copy (but not your only copy) of the contract. The association may act as an intermediary or arrange arbitration.
• You may also have to contact the Better Business Bureau or a consumer protection office for further assistance.

Energy Conservation

Understanding energy conservation is a sure-fire way to keep pennies in your piggy bank. The two major household budget items are gas and electric bills. These two items are within your control and the best means for controlling them is to define the biggest energy users:

Low-cost energy conservation may start with:

• Setting back the thermostat five degrees in the winter while everyone’s asleep or away from home; reverse that in the summer. It may be wise to invest in a programmable thermostat that automatically sets the temperature according to the time you have programmed.
• Try lowering blinds during the day in the summer to keep heat out.
• Take advantage of natural ventilation and shading. Open windows on cool nights during the summer.
• Close off areas of the house that are not being used, and direct heat or cool air into a smaller space.
• Keep your heating and cooling systems at maximum efficiency through proper regular maintenance.
• There are a number of home improvement products that also increase efficiency, as well. Easy steps toward energy efficiency are:
  • Replacing old, inefficient windows can be costly, but will save you money on heating and cooling bills over time.
  • Seal cracks to the outside and to the attic to prevent heat loss in the winter, and to trap cool air in the summer.
  • Increase attic insulation to at least 12 inches or use insulation with an r-value of 38 or to code specifications.
  • Replace an old inefficient furnace or boiler.
  • Insulate side walls
  • Install solar sunscreens or shades.
  • Use strategic landscaping for the placement of trees and other vegetation

If you plan on making major changes for energy conservation, you may want to consider applying for the EEM – Energy Efficient Mortgage – to finance the costs of those improvements. As always, check with your lender for advice regarding this type of loan.

As a new homeowner, there will be many new expenses. Preventive maintenance is imperative. Some basic and common proactive measures are:

• Pest control
• Heating & cooling system maintenance
• Painting and caulking doors and windows
• Water softener salt for those who live in areas using well water or water with a lot of soluble minerals which makes water hard. Many detergents do not dissolve in hard water, hence the need to water softener salts.
• Well maintenance
• Septic system maintenance

Some additional utility bills for those who now rent might be:

• Electricity, gas or heating oil
• Sewer and water
• Hiring a trash collector or transporting trash themselves

Develop a savings plan. Don’t get caught by surprise when an unexpected emergency arises. Try to keep as much cash saved as possible – two to three months worth of mortgage payments. And put an additional 1% of the mortgage payment per month into that account to be safe. You might need an “extra money” account to keep up your mortgage payments. Things happen, so always be prepared!

FYI: Keep all your records: home loan documents, homeowner’s insurance, receipts, warranties, contracts, maintenance schedules, and a list of important documents regarding your home, in a safe place where you can easily get to them if you need them.

Additional Resources

• Better Business Bureau
• Consumer Credit Counseling Service – may be a resource. Please use caution with this and other credit counseling resources. Discuss your situation with your lender before using the services of consumer credit counselors.
• Department of Housing and Urban Development
• Check other federal and your state and local governments for programs where you live.

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