Prioritizing Post-Inspection Repairs When Money Is Tight

Published August 14, 2024 by Mike Chen

Key Takeaways

  • Address safety hazards first, regardless of cost
  • Focus next on issues that will cause further damage if ignored
  • Create a 30-60-90 day plan to spread out expenses
  • Some repairs can wait years; know which ones
  • DIY options exist for many moderate-priority items

You closed on the house. The inspection report had a long list of issues, and the seller agreed to address some but not all of them. Now you're staring at 15 items that still need attention and a bank account that can't handle all of them at once.

This is normal. Almost every homeowner faces this situation. The key is knowing what needs to happen now versus what can wait until you've saved more money or until next spring or maybe even next decade.

What You'll Need

  • Your home inspection report with remaining items highlighted
  • A list of any credits you received and their intended purpose
  • Your current repair budget (be honest)
  • A calendar or project management tool
  • Phone numbers for 2-3 contractors in key trades

Step 1: Categorize Everything by Urgency

Go through your remaining inspection items and sort them into four categories. Be ruthless about the sorting. Your budget depends on accuracy here.

Category 1: Immediate Safety Hazards

These get done first. Period. No exceptions.

  • Carbon monoxide risks (cracked heat exchangers, blocked venting)
  • Electrical fire hazards (exposed wiring, dangerous panels, overloaded circuits)
  • Gas leaks
  • Structural instability affecting occupant safety
  • Trip hazards on stairs and walkways
  • Missing smoke and carbon monoxide detectors

Don't move in until Category 1 items are resolved, or have a clear plan to resolve them within the first week. These can kill you.

Category 2: Damage Prevention

These issues will get worse and cause additional damage if you wait. Do them within the first 30-60 days.

  • Active water leaks or intrusion
  • Roof problems that aren't yet leaking but will soon
  • Gutter and drainage issues causing foundation concerns
  • Plumbing leaks or failing supply lines
  • HVAC issues before the season requires that system

The rule: if ignoring this for 60 days will make it cost more to fix or damage other parts of the house, it belongs in Category 2.

Category 3: Important But Can Wait

These are real issues that deserve attention, but waiting 6-12 months won't make them dramatically worse.

  • Outdated electrical panels that are functional but not ideal
  • Old windows that aren't efficient but aren't failing
  • HVAC systems approaching end of life but still working
  • Cosmetic damage that hints at past problems now resolved
  • Code violations that don't affect safety

Plan for these. Budget for them. But don't go into credit card debt to address them immediately.

Category 4: Long-Term or Never

These are real findings from the inspection that don't require action anytime soon.

  • Cosmetic issues
  • Outdated fixtures that function fine
  • Minor settlement cracks that have been stable for decades
  • Older-but-working appliances
  • Energy efficiency improvements

Address these when you renovate, when they break, or when you feel like it. They're not hurting anything.

Step 2: Get Actual Costs for Categories 1 and 2

Before you can plan a budget, you need real numbers.

Call contractors for quotes on your Category 1 and 2 items. Phone estimates work for simple issues. Schedule site visits for anything complex.

Get at least two quotes for any job over $1,000. Prices vary more than you'd think. I've seen roofing quotes range from $7,500 to $12,000 for the same job from different contractors.

Once you have numbers, compare them to your available budget. If you received a credit at closing, that money is earmarked for these repairs.

Step 3: Build Your 30-60-90 Day Plan

Take your Category 1 and 2 items and map them onto a timeline.

First 30 Days

Schedule all Category 1 items. These happen before you get comfortable in the house, before you buy furniture, before you host Thanksgiving.

Also schedule any Category 2 items that are time-sensitive. If your roof is failing and the rainy season starts in six weeks, that's a first-30-days item.

Days 30-60

Address remaining Category 2 items. This is when you fix the gutter drainage, replace the failing water heater, and have the HVAC serviced before winter.

By day 60, your house should be safe, protected from ongoing damage, and ready for the seasons ahead.

Days 60-90

Start tackling Category 3 items based on priority and available funds. This is also when you can begin DIY projects if you're handling any work yourself.

Not everything will be done at day 90. That's fine. The goal is momentum and protection, not perfection.

Step 4: Identify DIY Opportunities

Some inspection items can be handled without professional help. This stretches your budget significantly.

Usually DIY-Able

  • Installing smoke and CO detectors ($15-40 each)
  • Adding GFCI outlets in kitchen and bath ($15 per outlet, basic electrical skills needed)
  • Caulking around windows and doors ($10 per tube)
  • Improving grading and drainage away from foundation (weekend project, cost of dirt and labor)
  • Adding downspout extensions ($10-20 each)
  • Replacing toilet wax rings ($5-10 each)
  • Installing dryer vent covers ($15)
  • Minor wood rot repair (under $100 in materials)

Usually Hire Out

  • Electrical panel work (permits required, dangerous)
  • Roof repairs (fall risk, proper sealing matters)
  • Plumbing beyond basic fixture replacement (water damage risk)
  • HVAC repairs (specialized equipment and knowledge)
  • Foundation work (structural implications)
  • Anything requiring permits you can't pull yourself

Depends on Your Skills

  • Deck repairs (some is easy, some requires structural knowledge)
  • Window replacement (straightforward but technique matters)
  • Minor electrical (outlet replacement is fine, running new circuits is not)
  • Basic plumbing (replacing faucets is easy, moving supply lines is not)

Step 5: Consider Financing Options for Big Items

If Category 1 or 2 items exceed your available cash, you have options:

  • Home improvement loans: Personal loans for repairs, typically 6-12% interest
  • Home equity line of credit: If you bought with significant equity, though most new buyers don't qualify immediately
  • Credit cards with 0% introductory APR: Can work for mid-sized repairs if you can pay off within the promotional period
  • Contractor financing: Some contractors offer payment plans, especially for HVAC and roofing
  • FHA 203(k) loan: If you're still in the buying process and can refinance into a renovation loan

Debt for home repairs isn't ideal, but some Category 1 and 2 items truly can't wait. Safety and damage prevention are worth financing if necessary.

Step 6: Create Your Long-Term Capital Plan

Beyond the 90-day sprint, you need to think about the life expectancy of major systems.

The Big Five

Every house has five major systems that will eventually need replacement:

  • Roof: 20-30 years depending on material. If yours has 10 years left, start saving.
  • HVAC: 15-20 years for well-maintained systems. Budget $6,000-15,000.
  • Water heater: 10-15 years. Budget $1,200-3,000.
  • Major appliances: 10-15 years each.
  • Windows: 20-30 years. Can be done gradually.

Your inspection report told you the age and condition of these systems. Use that information to plan ahead.

The Home Maintenance Fund

A common rule of thumb: budget 1-2% of your home's value annually for maintenance and repairs. On a $300,000 home, that's $3,000-6,000 per year.

Start building this fund now, even if it's just $100/month. When the water heater dies at 2 AM on a Sunday, you'll be glad you have cash available.

Common Mistakes to Avoid

  • Ignoring Category 1 items because they're expensive: Carbon monoxide doesn't care about your budget. Safety first.
  • Tackling cosmetic stuff first: New paint is fun. A new roof is not. But the roof matters more. Stay disciplined.
  • Underestimating repair costs: Always budget 20-30% more than quotes suggest. Surprises happen.
  • Doing DIY on things you shouldn't: YouTube makes everything look easy. Electrical and plumbing mistakes can cause fires, floods, and code violations.
  • Not getting permits when required: Unpermitted work can affect insurance, resale, and even habitability.

What to Expect

The first year of homeownership is expensive. Expect to spend money you didn't plan to spend on things you didn't know existed. This is universal.

By month 6, most of the urgent issues should be handled. By month 12, you should have a rhythm. By year 3, the house starts to feel stable.

Keep your inspection report. Reference it annually. Those Category 3 items don't go away just because you're not thinking about them. Check in. Update your timeline. Stay ahead of the big stuff.