Home Ownership Financial Pitfalls to Avoid

Owning a home is expensive enough without making mistakes that can make it even costlier. Here are some common pitfalls homeowners make that can become costly.

Purchasing the Wrong Size HVAC System

One of the most common mistakes homeowners make is purchasing an HVAC system that is either too large or too small. HVAC systems that are too small cost more to operate as they must work harder to keep your house cool in the summer and warm in the winter. However, a heating and air conditioning system that is too large can get the home to the right temperature yet does not remove the moisture from the air, leaving you feeling sticky in the summer and damp in the winter. This mistake can be avoided by consulting a specialist before purchase.

Not Getting Enough Homeowner’s Insurance

Another costly mistake that new homeowners make is not getting enough homeowner’s coverage. Most mortgage companies require homeowner’s insurance, so few people who purchase a home risk not taking out a policy. But, in some cases, homeowners may try to save money by getting the lowest coverage possible. According to one study, two-thirds of American households have less insurance than they need. Talk to your insurance agent about what it would cost to rebuild your home from the ground up as well as what it would cost to replace everything in your home.

Ignoring Minor Repairs

That constantly running toilet can waste hundreds of gallons of water, and for those who are paying for water, this can increase the water bill significantly. Gutters filled with leaves can cause standing water around your home. Standing water can be a breeding ground for mosquitoes, and termites are attracted to damp wet ground near wooden areas. The loose board on the deck can be a hazard. All of these minor repairs can lead to much more serious problems if they are not addressed. Spend some time getting them done, or hire a handyman to fix things as soon as possible.

Fire Safety

Another area where homeowners attempt to save money is with fire safety. Smoke detectors should be installed in every bedroom, and one should be hard-wired into the electrical system for added safety. Batteries should be tested once per month. A small fire extinguisher should be easily accessible not only in the kitchen but also in the basement, garage and laundry room as well. Outfit second-story windows with escape ladders that can be dropped to the ground.

These are all easy, inexpensive methods for keeping your home safe and running smoothly while also keeping your costs down. Visit here for more homeowner money-saving tips.


Article Submitted by Community Writer.


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