To repair circular holes in drywall, you will need some basic drywall tools, drywall screws, a piece of drywall, joint compound and paper joint tape. These are all available at home improvement centers. Avoid buying plastic tools. Although they are cheaper, they break easily and do not leave a smooth surface.
Cutting Out the Hole
First, convert the circular hole to a rectangular one. This will simplify the repair process. Using a straight edge and a pencil, trace a square around the circular hole. Then use a utility knife or a keyhole saw to cut out the shape. To cut drywall, score it with your knife and then snap it by applying firm pressure.
If there are no visible wood studs in the hole, you will need to expand it. For small patches (less than a square foot), one stud may suffice. For large patches, you will need two studs. If you are not sure where the studs are, reach into the hole and feel around. Cut back the drywall until half of the long edge of both studs (one on each side of the hole) is exposed. Make sure to maintain the rectangular shape of the hole.
Smooth the inside edges of the hole with a drywall rasp. The goal is to make the hole as even as possible so that your drywall patch will be easy to cut to size and will fit snugly.
Sizing the Patch
Drywall comes in several thicknesses. If you are unsure of the thickness of your home's drywall, measure it so that you can buy the same size. Many home-repair centers sell small scrap pieces of drywall. These are usually found in large bins in the building-materials section. Make sure the piece you buy is the correct thickness and large enough to fit the hole.
Measure the hole and then cut the patch to match using a utility knife. The snugger the fit, the better. Use a drywall rasp to smooth the edges of the patch.
Installing the Patch
Place the patch inside the hole. Using drywall screws, attach the patch to the studs you exposed earlier by installing one screw every 4 to 6 inches. Then install screws along the edges of the hole you cut out of the existing drywall. Work slowly. The edges of both the patch and the hole are fragile.
Make sure the screw heads are slightly lower than the surface of the drywall but not breaking the paper surface. If the screw heads do break the paper surface, back them out and install another screw in a new location.
Finishing the Patch
Use a 6-inch drywall knife to coat each joint with a thick coat of joint compound. Lay a piece of drywall paper tape over the joint. Then wipe away the excess joint compound out from under the tape using the 6-inch drywall knife. Repeat for each side of the patch and allow the compound to dry.
Use a 12-inch drywall knife to lay a thick coat of joint compound over the joints. The goal is to hide the ridge of the joints so that they will not be visible through paint. Smooth and then let it dry. Once dry, sand the surface with drywall sandpaper. Repeat this coating and sanding process until the patch is smooth and blemish free. The repair site is now ready for primer and paint.
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