Having an appliance break down or your plumbing system failure can be devastating, especially if you haven’t made financial preparations for emergencies like these in advance. Certain home repairs can render your living environment uninhabitable until they’re taken care of. Unfortunately, not all of these issues are guaranteed to be covered by insurance or a warranty. If you find yourself facing a serious problem and yet lack the cash to resolve it, you can take advantage of the five tips below. With these strategies, homeowners can tackle even the most expensive repair issues without breaking the bank.
1. Make Sure That You Aren’t Overlooking An Existing Protection
Before you panic, take the time to carefully pore over your home insurance policy and any applicable warranties. You may find that this project’s cost is covered in part or in full by one of these agreements. If it isn’t, don’t try cutting corners. Hiring unlicensed parties to do the work cheaply could land you in more hot water. Work performed by entities that are either unlicensed or uninsured could cause existing insurance policies and warranties to be voided outright.
2. Break The Project Down Into Manageable Stages
Determine just how urgent the needed work is. It may be possible to put it off until you’ve had the chance to save for it. More likely, however, you may be able to break it down into manageable, affordable stages. This usually involves taking measures to restore basic functionality to the broken structure or appliance while holding off on aesthetic improvements needed due to secondary property damage. When you’re tight on cash, building aesthetics should be your last concern – unless you’re trying to sell.
3. Seek Financial Help
There are several types of loans that you can apply for when facing major home repairs and unable to pay for them. Consider getting a quick, unsecured loan for a relatively low-cost repair. Your forthcoming paychecks can back this type of funding product. If you can do so, think about charging the costs of this project to a credit card. You can even refinance a car loan to access the cash needed for repairs. Taking the time to explore your outside funding options could help you arrive at a feasible and nearly stress-free solution.
4. Find The Right Contractor
While it might be tempting to do-it-yourself, there are several advantages to outsourcing the work to a contractor. With that said, shopping for competitive prices on labor and materials is always important. This is something that you’ll ultimately need to do regardless of how you wind up paying for the job. Keep in mind that the best cheap labor isn’t the result of ultra-rapid and shoddy craftsmanship. Instead, this usually comes from companies that work hard to control their overhead costs so that they can pass the resulting savings down to you. Many of these companies have also worked hard to build excellent supplier relationships. They can also purchase building materials at lower than average prices to ensure more reasonable project costs.
5. Consider Short-Selling
If your home is experiencing major repair issues and you’re already financially overwhelmed by your mortgage and the secondary costs of homeownership, now may be an excellent time to consider selling. Short-sale companies are capable of independently financing their purchases. This means that sales do not entail lender-required inspections. More importantly, it means that homes can be purchased as-is. If you’re in a severe bind, you can request an offer based upon your home’s current condition and current financial standing. If you aren’t facing foreclosure, this offer should be high enough to both appease your lender and leave you with sufficient funds for starting your life anew.
If there’s one thing to learn from having an unexpected home repair develop, it’s that saving for emergencies like these is essential. If you don’t have a “rainy day” fund that you can dip into, there are still ways to get the job done. From handling the project in modest increments to seeking outside funding, you’re sure to find a solution that can ultimately restore normalcy and order to your living environment.