I remember seeing a statistic here, maybe one of Ben’s videos, quoting an average yearly cost of repairs for a home based on the purchase price. Does anyone know this and/or where to find it?
I would not use something like that, for example, the average of $200 and $10,000 is $5100, see how useless that is?
That information would be nebulous at best. Public Adjusters have to buy new price lists every year, specific to the areas they work in. You will have to factor in the grade or quality of the items being replaced, labor, etc. Basically, a piece of fluff information that could actually get you more trouble than it is worth, particularly if a client gets into some deep sewage and blame you for giving out bogus information. It happens in this age of responsibility shifting.
Perfect! Do you know where these lists reside?
I heard an appraiser give the best Quotation: 1-5 % of the homes value every year, depending an MANY variables. You can neglect a few years, but it catches up with you fast.
List runs about $1000 a year. You will need to go learn how to use Xactimate software in order to use the list. Or you can go to Home Depot and buy a book of prices for repairs, remodeling and building, etc.
The range I recall that seems right to me is 1-2% of purchase price as a good estimating tool for maintenance over time. But as mentioned by others with many variables. Older homes likely more while newer homes, especially if built with maintenance costs in mind would be lower.
The trouble with ranges such as these would be if a consumer took them as some sort of gospel. They need to understand that this sort of figure is not a guarantee in any given year.
And I don’t agree that you can actually neglect your maintenance and escape the expense. Of course you can defer maintenance but it almost surely will cost you more to catch up then if you stayed up. Another important concept if you’ree talking maintenance costs with a client. The normal wear and tear occurs and will have to be paid for.
Thanks for the advice. I agree with what you and others are saying, however, I’m not using them for inspection clients.