5 common mistakes first-time homeowners make

Being a first-time homeowner can be daunting and mistakes happen.

You can avoid some common ones by taking extra steps to prepare and invest in your property. Here are five common mistakes new homeowners often make.

Homeowners eager to remodel their new house might skip getting the proper permits and inspections before taking on a project. Certain home projects, like adding a bathroom or extension on the home, need permits whether you are DIYing or hiring pros.

Rushing to the project before getting the proper approval could expose you to making a damaging mistake and getting in trouble with the local government. Missing permits could impact the home's resale value or insurance coverage. What each city, town or county requires for permits vary. Make sure you understand the rules before beginning the work.

• Adding new windows and doors
• Removing or adding plumbing like bathrooms
• Changing electrical systems

Homes and home equipment need regular checkups. Neglecting seasonal maintenance and tune-ups of home systems, including your heating and cooling system, gutters or water heaters could lead to larger and more costly repairs in the future.

A crack in the driveway can easily turn into a pothole. Roofs, siding and driveways face wear and tear from the weather, and without upkeep the damage could cost more than a yearly cleaning or checkup.

“I’ve replaced entire roof sections because $200 worth of annual cleaning was skipped,” said Esteban Marin, contractor at Loudoun Roofing and Home Improvement in Loudoun County, Virginia.

A crack in the driveway can easily turn into a pothole.

• Change heating and cooling filters
• Clean gutters
• Clear roof
• Seal cracks in driveways and walkways
• Check foundation
• Check plumbing
• Replace damaged siding
• Spray for pests

If you have never owned a home before, getting insurance could be overwhelming. Knowing what is and is not covered can be confusing.

“Many first-time homeowners may assume their policy covers everything, but if you add on certain home features like pools and detached structures, you generally need to get additional coverage for those items,” said Peter Piotrowski, chief claims officer at Hippo Home Insurance. “Flooding also isn’t covered in a standard policy. Homeowners should regularly review their policy and consult their insurance provider for any coverage questions or recommendations.”

Pro tip: Depending on your region, you might need to add extra coverage for flooding, earthquakes, hurricanes or fires. Consider the common risks for your area and look for past news coverage of disasters and other big events.

Review your insurance policy annually, and if you are unsure of what is covered, ask a representative to talk over your insurance coverage.

With a down payment and closing costs, you likely have spent a majority of your savings on your home, but it’s important to budget for emergencies. Besides setting extra money aside for a few months of mortgage payments, you should have some money saved for home maintenance. Even with inspections and yearly maintenance, problems can always pop up.

For your monthly budget, home upkeep should be factored in. While the mortgage payment is likely the largest expense, you should expect to spend some money each month on maintenance.

“Keep in mind how much you need to save and when you plan to spend,” said Klosterman. “A Minnesota homeowner may budget for furnace tune-ups and frozen-pipe prevention before winter, while someone in Arizona may spend more preparing for heatwaves.”

Booking seasonal services ahead can help you budget out costs and set aside money each month even if you don’t use it. Extra money can be used on larger repairs or projects.

Some things should be left to the professionals, and some things can be easily and affordably done yourself. Attempting to handle too complex of a problem, like major plumbing, could lead to a more expensive fix.

• Painting walls, doors or trim
• Caulking around windows and tubs
• Simple hardware installations
• Updating light fixtures
• Replacing air filters

• Tiling bathrooms or kitchens
• Installing laminate or vinyl flooring
• Installing trim and crown molding
• Building deck or patio
• Upgrading faucets
• Adding built-ins cabinets

• Major plumbing
• Structural or foundation changes
• Advanced electrical work or rewiring
• Roofing repairs or replacements
• HVAC installation or repair
• Load bearing wall removals
• Gas line work