Money Matters: Common mistakes homeowners make and how to avoid them

It’s easy to make financial missteps that can cost you thousands. But today on GMN, Financial Expert Barry Bigelow joined the show to talk about the most common mistakes homeowners make and how to avoid them.

Bigelow started with what’s most important to keep in mind when thinking about this issue:

“We have to make sure that we’re avoiding the things that are easy to fall into, if you don’t know what you’re looking for.”

He also discussed the hidden expenses that often catch homeowners by surprise:

“We saw this really clearly during COVID, where insurance and taxes went up very quickly because home values were rising fast, while the supplies needed to replace homes were becoming scarce. So, insurance costs went up really fast. Taxes went up really fast. And all of a sudden, you can find yourself unable to afford your payment, especially if it includes taxes and insurance.”

Another key factor is maintenance. Bigelow shared:

“Two percent of the home’s value per year is a great budget for maintenance.”

He left us with this final thought:

“If you exceed that, you start to bite into those other budgeting items, like maintenance and everything else you need to do, such as saving for retirement, which is the last mistake people often make.”

These are important things to keep in mind, whether you’re a new homeowner or have been in your home for years.

If you have questions for Barry, you can email us at: WDIO-GMN@hbi.com