Researching Car Purchases vs. Home Purchases
Borrowers spend an average of 10 hours researching a car purchase and only five hours researching a mortgage or home equity loan.
Source: 2010 Zillow Mortgage Marketplace Survey
Home Insurance Checklist
It can be easy for homebuyers to overlook home insurance costs. Most buyers tend to focus on factors such as quality of neighborhood, property taxes, school districts and available recreational and cultural outlets. But the seemingly mundane detail of home insurance can add up to a big investment. The size, location, construction and overall condition of a house can affect insurance cost, choice and availability, according to the Insurance Information Institute. When looking at prospective homes, the Institute recommends that homebuyers consider the following:
- Where is the nearest fire department? Houses located near a fire station usually cost less to insure.
- Are the plumbing and electrical systems in good condition? Poorly maintained, unsafe and/or outdated systems are more costly to insure than well-maintained ones.
- Is the home vunerable to wind damage? A beach home may be susceptible to wind damage and can be more costly to insure than homes located inland.
- Is the home at risk for flooding or located in a flood zone? Most standard homeowner's insurance policies do not cover floods, so you may need a separate policy, which you can get through the National Flood Insurance Program, which is serviced by private carriers, or from a few specialty insurers.
- Is the home located in an earthquake-prone area? If so, earthquake insurance requires an endorsement or a separate policy.
- Is the house well constructed and well maintained? Homes built with disaster-resistent materials and designed to meet current building codes are more likely to withstand natural disasters.
Your home is your biggest investment. Make sure you protect it with the right type of homeowners’ insurance policy.
Relocation Costs
Considering a move to a new city? Before you pack your bags and hire a moving company, be sure to research the potential price tag of relocating. It may cost more than you think.
Cost of living can vary greatly from town to town, so be sure to do some research before taking the plunge. Better Homes and Gardens recommends browsing the local newspaper for grocery promotions, ads, and other local news to track costs so you can put those figures into a worksheet and determine the income you might need. While several cost-of-living calculators are available on the Internet, they provide only general figures and don’t take into account specific housing needs.
Be sure to ask a Certified Residential Specialist in your target area about “hidden” homeownership costs, such as recreation fees, trash collection and community services. Try to obtain a one-year sampling of utility bills for the type of home you’re considering. What can you expect to pay for telephone, cable TV and Internet services? Will you have your own septic tank and water pump, or will the community provide water service?
There are a host of other expenses to consider. What taxes will you pay? Higher taxes may mean better schools, libraries, trash collection and other community services, while lower taxes could mean higher expenses for these services. But it pays to have all the facts before you make a move.
Likewise, transportation and parking costs often are higher in larger cities, while a small-town commute can mean a short walk or bike ride. Also, gas prices can be more costly in some areas than in others.
Leisure time costs can add up as well. How much more will you have to pay for tennis or health club memberships, adult education classes and golf course fees?
Moving away from family and friends can mean more frequent phone calls and trips back home, so be sure to allow for those additional costs as well.
Peanuts
Although more than 15 percent of people think they have food allergies, less than 5
percent really do.
Source: WebMD.com
Tour Guide
Virtual tours are a great tool for any REALTOR®, and they can make or break a sale. But a home that looks neglected on camera won’t shine in a potential buyer’s eyes. If you’re thinking of listing your home, help your agent make your home stand out on video by preparing it for its digital close-up.
Clean up. Walk through every room and pick up items that don’t belong — like the forgotten stack of magazines on your footstool or the shoes lounging by your bed. They’ll be obvious in video or photos, and can distract the viewer. Before the pros photograph your house, snap a few shots and take a look — what sticks out at a glance will surely be the first things a potential buyer would notice, too.
Remove personal touches. Remember, this won’t be your home anymore, so it shouldn’t look like it. Prior to showing a house, take down family photos, heirlooms and even college diplomas.
Update with a few new details. Flip through a few home decorating publications and take a look at what’s trendy and adjust your décor to match. A colorful vase of flowers on a glass coffee table, for instance, makes the room look warm and inviting.
Store unnecessary furniture. A good rule of thumb is that the only furniture in the room should accurately display what the room is (a dining room table and chairs in that room, for example). Removing extra side tables or a chair in the corner that’s hardly used will make the rooms look larger and allow the viewer to imagine his or her furniture in the space.
Lawn Care Tip
Mowing your lawn too frequently can damage plants. Grass should be cut when it reaches about 2 inches; never cut more than 1/3 of the height of your lawn.
Cabinet Meeting
Can’t afford a full kitchen makeover? Sprucing up the cabinetry is an easy fix for a fraction of the cost.
There are two options: replacing or refacing. Refacing includes covering the existing cabinet doors and drawer fronts with
a wood or plastic veneer and replacing knobs and door hinges; replacing cabinets requires removing them entirely and starting from scratch. So what’s best for your home? Here are a few things to consider, according to HGTV.
First, check to see if the cabinets are structurally sound. If you have problems opening the drawers, closing the doors, or if the cabinet’s interior isn’t as large as you need it to be, simply rejuvenating the look isn’t going to help in the long run. Also consider the age of the cabinets: Those made 20 to 30 years ago were typically built using thicker wood and sturdier construction. Such cabinets can often be refaced instead of replaced.
Next, consider how long you’ll remain in your home. Replacing the cabinets will add to the home’s value and could be worth the extra money if your home will be on the market in the near future. But for a potential buyer, a modern renewal of the cabinets with up-to-date veneers might be enough, making refacing your cabinets a cost-effective, viable solution. The typical cost of refacing with plastic veneer can cost up to about $3,000, while wood veneers can run up to $7,000. If you’re still considering replacing, make sure you budget accordingly. According to Costhelper.com, the cost of delivery and installation of new cabinets can cost at least $10,000.
Moving 101
Мoving from one home to another can be overwhelming, but moving to a new city or town can be especially stressful. Consider these suggestions to make your move hassle-free.
Keep track of the little expenses. Budget for gas money and pit stops you might make along the way. Factor in new utility setup fees and review the mover contract carefully to be sure your estimate is accurate. Small costs can add up to a major blow when they’re unexpected. It’s best to have a list of incurred expenses on hand to know what you’re dealing with.
Choose carefully. If you’re hiring movers, shop around for the best deal — which might not always be the cheapest.
Relocation.com cautions against signing with the least expensive movers; costs tend to pop up on move-in day, or worse, you might get scammed. Also, be sure to investigate what kind of insurance your movers provide. Depending on how much you’re moving, you may want to opt for a full-value replacement protection plan. Federal law requires limited liability insurance to be included with your regular move-in costs, but it only averages out to insuring $.60 per pound (varies from state to state), so big ticket items like your flat-screen TV will barely be covered. The full-value option declares that any goods lost, damaged or destroyed during the
move will be replaced or repaired, or you can opt for a cash settlement. The cost depends on the moving company, so be sure to discuss your options thoroughly with the company you choose.
Be observant. Review the inventory checklist you receive from the movers, and make sure every item is accounted for — every extra item that was not included in the original estimate could cost you more money. Worse? Once that happens, the initial estimate agreement is void, and the price can skyrocket. Do a final walkthrough in your empty home to ensure nothing is left behind to avoid having to ship it to your new abode.
And finally, treat your movers with respect. Check beforehand with the company and, if it’s OK, have some beverages and treats on hand to thank them for their hard work. Your kindness will be appreciated during stressful situations.
US Census Fact
A projected 47.8 million U.S. households will fail to respond to the census by mail and will require a census taker to follow up in person to count the household.
Source: U.S. Census Bureau
Pet Friendly Remodeling Ideas
According to the American Pet Products Manufacturers Association, 62 percent of U.S. households currently have a pet. In these households, pets are family members too, and a growing number of homeowners are remodeling their homes with their furry family members in mind. Here are a few of the latest pet-friendly design trends.
Avoid wall-to-wall carpeting, which absorbs odors, traps pet hair and soaks up pet stains like a sponge. Instead choose ceramic tile or light or medium finish hardwood floor, which are much easier to clean after pet accidents and can hide scratches more easily.
Install a feeding drawer in your kitchen cabinetry that pulls out during meal time and closes to hide the food bowls when guests visit. Consider adding a small alcove with a comfortable bed so your pet can keep you company while you cook.
Keep the litter box in a separate storage area or inside a cabinet with access via a cat door to provide privacy and keep the smell and mess in a confined area.
When selecting paint finishes, choose satin or semi-gloss over flat. Scratches, streaks and dirt aren’t as noticeable and will be easier to clean after pet accidents.
Choose stain-resistant and washable fabrics to match your pet’s fur color, or choose patterns over solids to disguise pet fur on your sofa or bed. Fabrics like leather, Ultrasuede or Crypton — a synthetic fabric resistant to stains, odor and moisture — are the most durable and easy to clean.
Replace the standard showerhead in the bathroom with a detachable hand-held one to make it easier to bathe your pet. Or, if there is space, add a mudroom near an entry where you can get dirt off your pet before coming into the house