A Beginner’s Guide to Securing a Mortgage Loan

by John Trupin

Entering into debt is a concept I grew up diametrically opposed to. I was raised, like many with frugal family members, to understand that anything you couldn’t pay for on the spot was something you couldn’t afford. But as we age we learn the pathway to financial growth requires a commitment beyond what many of us can deliver up front. Building and stabilizing wealth is, for many families, tied to home ownership. To reach that initial threshold, most aspiring homeowners will need to apply for a mortgage loan. That process can be daunting, but the long-term rewards of securing your home are worth it.

Step One – Break down your budget

A major financial decision like this can’t be made lightly. Many experts recommend a 50-20-30 style plan for finances, particularly for first-time homeowners. That means 50% of your budget is committed to core, unavoidable, monthly expenses like rent, groceries, loan payments, utilities, insurance, etc. The 20% segment is savings, placed in reserve towards a general or specific future financial goal. The final 30% (at maximum) is left as a remainder for personal spending, however, is most desired. Once this is set, you’re ready to evaluate the rate at which you can repay your loan and adjust accordingly.

Step Two – Take the time to get it right

It’s exciting to be in a position to purchase your first home, but if you find the right spot and realize the funds aren’t there yet it can be a huge disappointment. That’s what makes seeking pre-approval for a loan a must – particularly if it’s your first time. Having your credit in order, along with all key financial documentation (bank statements, tax returns, debt copies, prior records of significant ownership). If your credit isn’t in a great place, it’s likely worth taking the time to amend it before applying for your mortgage loan. When you earn lower interest rates and more manageable monthly payments you’ll be thankful for your prudence.

Step Three – The bigger the down payment the better

It’s rare that first-time homebuyers have significant cash on hand, but whatever you can muster makes a difference. Typically, the greater a down payment you can muster, the lower your subsequent interest rates will be. For many, there’s only so much that’s tenable as a bulk sum up front, of course. If that fits your situation, seeking a loan insured by the Federal Housing Administration (FHA) can earn you a healthy loan for a down payment of just 3.5% of your home’s total value. To calculate the limitations of your target home’s loan options, you can input your information on the Department of Housing and Urban Development (HUD) website here.

Step Four – Stick to the plan!

After all the effort you’ll go through to secure a mortgage loan, you’ve earned the home it’s helped you purchase. That loan, like any loan, is contingent on your continued monthly payments. It can feel daunting and dispiriting after a time to continually be paying for a home you’re already living in, but maintaining your financial balance is vital. You’ll never be able to predict every expense that comes up but maintaining your budget towards paying off your mortgage loans will set you up to be more financially flexible in the future. Should you ever hope to purchase a second home or other major investments requiring of loans, having a record of consistent mortgage loan payment can help you secure far more favorable interest rates in the future.

A mortgage loan, like any loan, is a major commitment, but entering into homeownership is a massive step towards financial stability and future life-planning. With proper patience and focus, you can get the loan you need at the rate you can afford.


Posted on July 21, 2018 at 9:57 am
Tania Harmon | Posted in Buying |

A Day of Service

 

 

 

 

 

 

 

 

 

 

by Tania Harmon

 

Last Friday, Top Maui Homes along with 30 of our colleagues took the morning off to do something vitally important. What could be so important that an entire Real Estate Brokerage would take a full day out of the market? To give back to our community.

 

Every year Windermere Real Estate offices across Washington, Oregon, Idaho, Montana, Utah, California, Colorado, Nevada, Arizona,  and Hawaii take a day off from selling homes to help make a difference in their local communities. Since 1984, Windermere associates have dedicated a day of work to complete neighborhood improvement projects. You’ll find Windermere Realtors doing a variety of projects, such as cleaning, landscaping, and painting at local senior citizens centers, facilities for homeless children and adults, public parks and schools, low-income housing, and emergency shelters, and volunteering at food banks, to name just a few.

 

This year Wailea Realty chose a service that is near and dear to our hearts and vital to our local community and economy. Wailea Realty partnered with Pacific Whale Foundation to clean up one stretch of our island’s shoreline. It was only later we realized that our Windermere Community Service Day just so happened to fall on World Oceans Day – how apropros!  In a few short hours we collected all of this!

 

Although we did find quite a few large pieces, a good portion of what we collected were cigarettes, bottle caps, and micro-plastic. As clean as our beaches are there is always work to be done. Every piece counts. You too can make a difference. Every time you step onto the beach, commit to pick up 3 – just 3 pieces of trash or plastic. Imagine the impact we could have if we all just picked up 3!


Posted on June 14, 2018 at 8:04 pm
Tania Harmon | Posted in Community, Nature |

A Home Addition: What to Consider Before Starting to Build

by Kenady Swan 

 

 

Adding on to your current home may be your best bet if you’re short on space, but you don’t want to move or can’t find another house in the area with all the qualities you’re seeking. It’s also an attractive option if the house you have is lacking just one significant element (a family room, another bedroom, a larger kitchen, a separate apartment, etc.).

On the other hand, even a modest addition can turn into a major construction project, with architects and contractors to manage, construction workers traipsing through your home, hammers pounding, and sawdust everywhere. And although new additions can be a very good investment, the cost per-square-foot is typically more than building a new home, and much more than buying a larger existing home.

 

Define your needs

To determine if an addition makes sense for your particular situation, start by defining exactly what it is you want and need. By focusing on core needs, you won’t get carried away with a wish list that can push the project out of reach financially.

If it’s a matter of needing more space, be specific. For example, instead of just jotting down “more kitchen space,” figure out just how much more space is going to make the difference, e.g., “150 square feet of floor space and six additional feet of counter space.”

If the addition will be for aging parents, consult with their doctors or an age-in-place expert to define exactly what they’ll require for living conditions, both now and over the next five to ten years.

 

Types of additions

Bump-out addition—“Bumping out” one of more walls to make a first floor room slightly larger is something most homeowners think about at one time or another. However, when you consider the work required, and the limited amount of space created, it often figures to be one of your most expensive approaches.

First floor addition—Adding a whole new room (or rooms) to the first floor of your home is one of the most common ways to add a family room, apartment or sunroom. But this approach can also take away yard space.

Dormer addition—For homes with steep rooflines, adding an upper floor dormer may be all that’s needed to transform an awkward space with limited headroom. The cost is affordable and, when done well, a dormer can also improve the curb-appeal of your house.

Second-story addition—For homes without an upper floor, adding a second story can double the size of the house without reducing surrounding yard space.

Garage addition—Building above the garage is ideal for a space that requires more privacy, such as a rentable apartment, a teen’s bedroom, guest bedroom, guest quarters, or a family bonus room.

 

Permits required

You’ll need a building permit to construct an addition—which will require professional blueprints. Your local building department will not only want to make sure that the addition adheres to the latest building codes, but also ensure it isn’t too tall for the neighborhood or positioned too close to the property line. Some building departments will also want to ask your neighbors for their input before giving you the go-ahead.

 

Requirements for a legal apartment

While the idea of having a renter that provides an additional stream of revenue may be enticing, the realities of building and renting a legal add-on apartment can be sobering. Among the things you’ll need to consider:

  • Special permitting—Some communities don’t like the idea of “mother-in-law” units and therefore have regulations against it, or zone-approval requirements.
  • Separate utilities—In many cities, you can’t charge a tenant for heat, electricity, and water unless utilities are separated from the rest of the house (and separately controlled by the tenant).
  • ADU Requirements—When building an “accessory dwelling unit” (the formal name for a second dwelling located on a property where a primary residence already exists), building codes often contain special requirements regarding emergency exists, windows, ceiling height, off-street parking spaces, the location of main entrances, the number of bedrooms, and more.

In addition, renters have special rights while landlords have added responsibilities. You’ll need to learn those rights and responsibilities and be prepared to adhere to them.

 

Average costs

The cost to construct an addition depends on a wide variety of factors, such as the quality of materials used, the laborers doing the work, the type of addition and its size, the age of your house and its current condition. For ballpark purposes, however, you can figure on spending about $200 per square food if your home is located in a more expensive real estate area, or about $100 per food in a lower-priced market.

You might be wondering how much of that money might the project return if you were to sell the home a couple years later? The answer to that question depends on the aforementioned details; but the average “recoup” rate for a family-room addition is typically more than 80 percent.

 

The bottom line

While you should certainly research the existing-home marketplace before hiring an architect to map out the plans, building an addition onto your current home can be a great way to expand your living quarters, customize your home, and remain in the same neighborhood.


Posted on May 24, 2018 at 4:44 pm
Tania Harmon | Posted in Architecture, Home Improvement, Selling Your Home |

Three Deck Design Ideas to Get Your Yard Ready for Summer

by John Trupin 

A delightfully warm spring in many parts of the Western U.S. has many folks brushing off their summer clothing early. While this is exciting for all who love the outdoors, public spaces like parks and beaches may be overcrowded. What better time, then, to focus on ways to maximize the space you have in your own home. There’s no one ideal way to design or set up your deck, but we’ve put together a few of our favorite ideas to help inspire your next redesign.

Multi-level Decks

Credit: H. Camille Smith / HGTV

Credit: H. Camille Smith / HGTV

  • Especially if your square footage is limited, tiering your deck into multiple levels is a great way to incorporate extra outdoor space into your home.
  • By separating your deck into multiple levels, even slightly, you can create a cozy sense of separation between spaces.
  • Give yourself options for privacy. Depending on your property, the base level of your deck may be below your fence-line. If you have a view you’d like to enjoy with your barbecue, consider a second tier.

Built-in Seating

Credit: lizmarieblog.com

  • A simple way to save space and hassle is to build in your seating spaces during your deck’s construction. 
  • It’s important to consider what you will predominantly be doing on your deck. Lounging while reading? A corner bench is a great fit and can be outfitted comfortably. Potlucks and cookouts? Consider higher benches or fences with wide tops for easy plate placement.
  • Consider your environment. If your deck will weather rain, sand, or wind consistently, don’t write off surfaces like brick and concrete, which can be framed as appealingly as wood or other stone.

Custom Lighting

Credit: istikharawazifa.com

  • As the sun fades, your deck’s utility can shine or fade with it. Including discreet lighting within the construction of your deck is a small step that can pay huge dividends.
  • Increasingly popular low-voltage systems have made a well-lit backyard and deck drastically more affordable.
  • Depending on your location, solar powered lighting is a worthwhile investment that can help accentuate your stairs, fences, and other outdoor decorations.

Posted on May 24, 2018 at 4:36 pm
Tania Harmon | Posted in Home Improvement, Outdoor Living, Selling Your Home |

Selling Your Home: A Step-By-Step Approach

by Kenady Swan

 

Whether you’re starting a family, moving for your job, getting ready to retire or embarking on a new chapter in your life, when your home no longer suits your current situation, it’s time to think about selling it. Although this can be a bit complicated, with the help of your agent, you can minimize the hassles, get the best possible price, and shorten the distance between “For Sale” and “Sold”.

 

Price it right

If you want to get the best possible price for your home and minimize the time it stays on market, you need to price it correctly from the beginning. Your agent can give you a clear picture of your particular market and can provide you with a comparative market analysis (CMA). A CMA contains detailed information on comparable homes in your area, including square footage, date built, number of bedrooms, lot size and more. It lists pending sales and houses sold in your area in the past six months, along with their actual sale prices.

By comparing your home to similar homes in your neighborhood and reviewing their list prices and actual selling prices, your agent can help you arrive at a fact-based assessment of your home’s market price.

 

Prepping your house for sale

You want to make a positive first impression when you list your home for sale. Here are some tips on how to enhance your home’s best features:

Work on your curb appeal

Get rid of moss on your roof. Power wash your front walk, porch, deck and patio. Mow the lawn, trim the hedges, weed the flowerbeds and add spots of color with container plants. Clean all the windows inside and out and repair them if they don’t open and close easily.

Refresh, repair and repaint

This goes for interiors and exteriors. If you see peeling paint, add a fresh coat. If your living room is bright lime green, consider painting it a more neutral shade. Make necessary repairs. You don’t want to turn off a buyer with a dripping faucet, a broken doorbell, a clogged downspout or a cracked windowpane.

Deep-clean, from floor to ceiling

Clean rugs, drapes and blinds and steam-clean carpeting. Get rid of any stains or odors. Make sure kitchen appliances, cupboards and counters are spotless and that bathrooms shine.

Declutter and depersonalize

Clean, light-filled, expansive rooms sell houses. So be sure to downsize clutter everywhere in your home, including cupboards, closets and counters. You might also consider storing some furniture or personal items to make rooms look more spacious. Take advantage of views and natural light by keeping drapes and blinds open.

 

Make an impact on the market

If you want to sell your home, you need to go where the buyers are, and today they’re on the Internet. According to the National Association of REALTORS®, in 2012 90 percent of homebuyers used the Internet as an information source, and for 41 percent of homebuyers it was the first step in the home-buying process.

By working with your agent, you can list your home on Windermere.com and other relevant websites. He or she will put together a listing with attractive photos, an appealing description and all the information a potential buyer needs. Your agent will also market your house, which may include advertising, direct mail and open houses.

 

Show your house

After you’ve taken care of all the repairs and cleaning tasks outlined above, your home is ready for its close-up: an open house. It’s actually best for you and your family to leave when potential buyers are present so they can ask your agent questions. But before you go, you might want to:

·         Take your pets with you

·         Open the shades and turn on the lights

·         Light a fire in the gas fireplace

·         Bake cookies

·         Keep money, valuables and prescription drugs out of sight

 

Be flexible in negotiating

If you get offers below your asking price, there are a number of strategies you can try in your counteroffer. You could ask for full price and throw in major appliances that were not originally included in the asking price, offer to pay some of the buyer’s fees, or pay for the inspection. You could also counter with a lower price and not include the appliances. If you receive multiple offers, you can simply make a full-price counter.

Your agent can suggest other strategies as well and help you negotiate the final price.

If your house doesn’t sell or you’ve received only lowball offers, ask your agent to find out what these prospective buyers are saying about your house. It might reveal something you can consider changing to make your house more appealing in the future.

 

Breeze through your inspection

When a buyer makes an offer on your home, it’s usually contingent on a professional inspection. A standard inspection includes heating and cooling, interior plumbing and electrical systems; the roof, attic and visible insulation; walls, ceilings, floors, windows and doors; and the foundation, basement and visible structure. The inspector will be looking for cracks in cement walls, water stains and wood rot.

You can always opt for having an inspection done prior to putting your house on the market, so you can address any potential problems in advance. Your agent can give you several recommendations for qualified inspectors in your area.

 

Close with confidence

Whether this is your first time or your tenth, your agent can help guide you though the complex process of selling a home. Moreover, he or she can answer any questions you may have about legal documents, settlement costs and the status of your sale.

Your agent’s expertise, resources and extensive network also work for you when you’re buying your next house. Even if you’re moving out of the area, your agent can refer you to a professional agent in your new community.


Posted on March 1, 2018 at 12:46 am
Tania Harmon | Posted in Selling Your Home, Staging |

Affordable Tips To Up Your Home’s Curb Appeal

by Kenady Swan

You’ll never have a second chance at a first impression, so let’s make it count! When it comes to upping your home’s curb appeal, there are plenty of small changes you can make that have a big impact. And best of all, you don’t need to call in the pros or spend a fortune to get beautiful results. Below are some helpful and affordable tips.

A Well-Maintained Yard

Mowing: The first step to a well-manicured lawn is to mow it regularly. The experts recommending mowing high because mowing it too short can damage the grass and allow weeds to set root.

Weeds: To prevent weeds like crabgrass use a pre-emergent herbicide in early spring. These herbicides manage the weeds by stopping the seeds from sprouting in your lawn. Broadleaf weeds like dandelions can be stopped by applying granular weed control products.

Feeding: Lawns consume mostly nitrogen, so look for mixes of fast and slow release fertilizers; they will feed your lawn over time while keeping it lush and green.

Watering: Nighttime watering can result in long spans of moisture on the blades, potentially exposing your grass to disease. Consider watering your lawn in the morning – the sun helps dry out the blades throughout the day.

Flowers: You can quickly and affordably dress up your yard with colorful pre-made flower pots and containers. When placing your flower pots and containers remember that asymmetrical arrangements and staggering plants will provided the liveliest setting.

Dress up the Front Door and Porch

Paint: A fresh coat of paint in a pop color can give your home a well-deserved facelift. If you are hesitant to add a bright color to your front door, check out our article Energize Your Home This Winter With Bright Hues.

Replace Old Hardware: Clean off any dirty spots around the door knob, and use a metal polish on the fixtures. Change out house numbers for an updated feel, put up a wall-mounted mailbox, or add an overhead light fixture. Keep in mind that well thought through elements, instead of mix-and-match pieces, will add the most curb appeal.

Create Perfect Symmetry: Symmetry is one of the simplest design techniques to master and is the most pleasing to the eye. Maintain symmetry by flanking your front door with two sidelights (just make sure that your hardware matches); find two urn planters or a unique visual detail to put on either side of your door.


Posted on February 2, 2018 at 9:40 am
Tania Harmon | Posted in Selling Your Home, Staging |

What Can We Expect From The 2018 Housing Market?

by Matthew Gardner, Chief Economist, Windermere Real Estate

 

It’s the time of the year when I look deep into my crystal ball to see what’s on the horizon for the upcoming year. As we are all aware, 2017 has been a stellar year for housing across the country, but can we expect that to continue in 2018?

Here are my thoughts:

 

Millennial Home Buyers

Last year, I predicted that the big story for 2017 would be millennial home buyers and it appears I was a little too bullish. To date, first-time buyers have made up 34% of all home purchases this year – still below the 40% that is expected in a normalized market.  Although they are buying, it is not across all regions of the country, but rather in less expensive markets such as North Dakota, Ohio, and Maryland.

For the coming year, I believe the number of millennial buyers will expand further and be one of the biggest influencers in the U.S. housing market. I also believe that they will begin buying in more expensive markets. That’s because millennials are getting older and further into their careers, enabling them to save more money and raise their credit profiles.

 

Existing Home Sales

As far as existing home sales are concerned, in 2018 we should expect a reasonable increase of 3.7% – or 5.62 million housing units. In many areas, demand will continue to exceed supply, but a slight increase in inventory will help take some heat off the market. Because of this, home prices are likely to rise but by a more modest 4.4%.

 

New Home Sales

New home sales in 2018 should rise by around 8% to 655,000 units, with prices increasing by 4.1%. While housing starts – and therefore sales – will rise next year, they will still remain well below the long-term average due to escalating land, labor, materials, and regulatory costs. I do hold out hope that home builders will be able to help meet the high demand we’re expecting from first-time buyers, but in many markets it’s very difficult for them to do so due to rising construction costs.

 

Interest Rates

Interest rates continue to baffle forecasters. The anticipated rise that many of us have been predicting for several years has yet to materialize. As it stands right now, my forecast for 2018 is for interest rates to rise modestly to an average of 4.4% for a conventional 30-year fixed-rate mortgage – still remarkably low when compared to historic averages.

 

Tax Reform

Something that has the potential to have a major impact on housing are the current proposals relative to tax reform. As I write this, we know that both the House and Senate propose doubling the standard deduction, and the House plans to lower the mortgage interest deduction from $1,000,000 to $500,000. If passed, the mortgage deduction would no longer have value for home owners who would likely opt to take the standard deduction.

If either of the current proposals is adopted into law, the potential reduction in mortgage-related tax savings means the after-tax cost of home ownership will increase for most home owners. Additionally, both the House and Senate bills also end tax benefits for interest on second homes, and this could have a devastating effect in areas with higher concentrations of second homes.

The capping of the deduction for state and local property taxes (SALT) at $10,000 will also negatively impact states with high property taxes, such as California, Connecticut, and New York. Furthermore, proposed changes to the capital gains exemption on profits from the sale of a home (requiring five years of continuous residence as compared to the current two) could impact approximately 750,000 home sellers a year and slow the growth of home ownership.

Something else to consider is that all of the aforementioned changes will only affect new home purchases, which I fear might become a deterrent for current home owners to sell. Given the severe shortage of homes for sale in a number of markets across the country, this could serve to exacerbate an already-persistent problem.

 

Housing Bubble

I continue to be concerned about housing affordability. Home prices have been rising across much of the country at unsustainable rates, and although I still contend that we are not in “bubble” territory, it does represent a substantial impediment to the long-term health of the housing market. But if home price growth begins to taper, as I predict it will in 2018, that should provide some relief in many markets where there are concerns about a housing bubble.

In summary, along with slowing home price growth, there should be a modest improvement in the number of homes for sale in 2018, and the total home sales will be higher than 2017. First-time buyers will continue to play a substantial role in the nation’s housing market, but their influence may be limited depending on where the government lands on tax reform.


Posted on December 19, 2017 at 8:06 pm
Tania Harmon | Posted in Buying, Real Estate Trends, Selling Your Home | Tagged , ,

Homeowners Insurance: Protecting Your Home

by Kenady Swan

 

 

In addition to providing shelter and comfort, our home is often our single greatest asset. And it’s important that we protect that precious investment. Most homeowners realize the importance of homeowners insurance in safeguarding the value of a home. However, what they may not know is that about two-thirds of all homeowners are under-insured. According to a national survey, the average homeowner has enough insurance to rebuild only about 80% of his or her house.

 

What a standard homeowners policy covers

A standard homeowner’s insurance policy typically covers your home, your belongings, injury or property damage to others, and living expenses if you are unable to live in your home temporarily because of an insured disaster.

The policy likely pays to repair or rebuild your home if it is damaged or destroyed by disasters, such as fire or lighting. Your belongings, such as furniture and clothing, are also insured against these types of disasters, as well as theft. Some risks, such as flooding or acts of war, are routinely excluded from homeowner policies.

Other coverage in a standard homeowner’s policy typically includes the legal costs for injury or property damage that you or family members, including your pets, cause to other people. For example, if someone is injured on your property and decides to sue, the insurance would cover the cost of defending you in court and any damages you may have to pay. Policies also provide medical coverage in the event someone other than your family is injured in your home.

If your home is seriously damaged and needs to be rebuilt, a standard policy will usually cover hotel bills, restaurant meals and other living expenses incurred while you are temporarily relocated.

 

How much insurance do you need?

Homeowners should review their policy each year to make sure they have sufficient coverage for their home. The three questions to ask yourself are:

·      Do I have enough insurance to protect my assets?

·      Do I have enough insurance to rebuild my home?

·      Do I have enough insurance to replace all my possessions?

Here’s some more information that will help you determine how much insurance is enough to meet your needs and ensure that your home will be sufficiently protected.

 

Protect your assets

Make sure you have enough liability insurance to protect your assets in case of a lawsuit due to injury or property damage. Most homeowner’s insurance policies provide a minimum of $100,000 worth of liability coverage. With the increasingly higher costs of litigation and monetary compensation, many homeowners now purchase $300,000 or more in liability protection. If that sounds like a lot, consider that the average dog bite claim is about $20,000. Talk with your insurance agent about the best coverage for your situation.

 

Rebuild your home

You need enough insurance to finance the cost of rebuilding your home at current construction costs, which vary by area. Don’t confuse the amount of coverage you need with the market value of your home. You’re not insuring the land your home is built on, which makes up a significant portion of the overall value of your property. In pricey markets such as San Francisco, land costs account for over 75 percent of a home’s value.

The average policy is designed to cover the cost of rebuilding your home using today’s standard building materials and techniques. If you have an unusual, historical or custom-built home, you may want to contact a specialty insurer to ensure that you have sufficient coverage to replicate any special architectural elements. Those with older homes should consider additions to the policy that pay the cost of rebuilding their home to meet new building codes.

Finally, if you’ve done any recent remodeling, make sure your insurance reflects the increased value of your home.

Remember that a standard policy does not pay for damage caused by a flood or earthquake. Special coverage is needed to protect against these incidents. Your insurance company can let you know if your area is flood or earthquake prone. The cost of coverage depends on your home’s location and corresponding risk.

 

Replacing your valuables

If something happens to your home, chances are the things inside will be damaged or destroyed as well. Your coverage depends on the type of policy you have. A cost value policy pays the cost to replace your belongings minus depreciation. A replacement cost policy reimburses you for the cost to replace the item.

There are limits on the losses that can be claimed for expensive items, such as artwork, jewelry, and collectables. You can get additional coverage for these types of items by purchasing supplemental premiums.

To determine if you have enough insurance, you need to have a good handle on the value of your personal items. Create a detailed home inventory file that keeps track of the items in your home and the cost to replace them.

 

Create a home inventory file

It takes time to inventory your possessions, but it’s time well spent. The little bit of extra preparation can also keep your mind at ease.  The best method for creating a home inventory list is to go through each room of your home and individually record the items of significant value. Simple inventory lists are available online. You can also sweep through each room with a video or digital camera and document each of your belongings. Your home inventory file should include the following items:

·      Item description and quantity

·      Manufacturer or brand name

·      Serial number or model number

·      Where the item was purchased

·      Receipt or other proof of purchase \Photocopies of any appraisals, along with the name and address of the appraiser

·      Date of purchase (or age)

·      Current value

·      Replacement cost

Pay special attention to highly valuable items such as electronics, artwork, jewelry, and collectibles.

 

Storing your home inventory list

Make sure your inventory list and images will be safe incase your home is damaged or destroyed. Store them in a safe deposit box, at the home of a friend or relative, or on an online Web storage site. Some insurance companies provide online storage for digital files. (Storing them on your home computer does you no good if your computer is stolen or damaged). Once you have an inventory file set up, be sure to update it as you make new purchases.

We invest a lot in our homes, so it’s important we take the necessary measures to safeguard it against financial and emotional loss in the wake of a disaster.


Posted on October 18, 2017 at 4:00 am
Tania Harmon | Posted in Buying |

Getting Organized Is Good for Your Home and Your Health

by Marilou Ubungen

 

For the last nine years, the HomeGain National Home Improvement Survey has been asking real estate professionals across the country the same question: What are the top 10 things a homeowner can do to get their home ready to sell?

 

And every year, the number one answer is: clean and de-clutter. In the latest survey, 99 percent of the real estate professionals queried ranked this task the most important. What’s more, they estimated that, for every dollar spent on the task, the homeowner would receive a whopping 403 percent return on their investment.

 

De-cluttering delivers big benefits to those who are not selling their homes, too. Studies show that living in a cluttered house is mentally stressful for the occupants and often leads to weight gain and other health problems.

 

So why do so many of us put off this important task? It’s hard work. It takes time. It’s physical. It’s emotional. And there are lots of decisions to make about what goes where, what gets tossed, and more. Worst of all, thinking about it makes it seem like an even bigger project than it really is—which is why experts say the best way to get started is to simply jump in.

 

The easy way to get started

The toughest part of getting organized is getting started. It’s too easy to say, “I’ll go through that closet later.” “I’ll get rid of those boxes later.” “I’ll donate those clothes later.”

 

Instead, replace “later” with “now.”

 

Grab a couple cardboard boxes and spend 90 minutes right now organizing one part of one room (a desk in your study, for example). Once you see that it’s not nearly as tough as you imagine, and actually feels satisfying and freeing, you’ll become energized and ready to take on even bigger organizing tasks tomorrow.

 

Here are some tips to keep you on track:

 

  • Tackle one room at a time.

 

  • Start with the easy stuff. Rounding up the things you know you want to toss, recycle, sell, or store.

 

  • Finish the task you start. Don’t pull everything out of a closet, for example, and then stop for the day, leaving the mess for later. Finish organizing the closet.

 

  • Get the whole family involved (these are important life lessons to pass along to your children).

 

  • Let phone calls and other disruptions wait until you’re done for the day.

 

Deciding what to keep

Once you make your way through the things you know you don’t want any more (broken appliances, unused gifts, outdated electronics, store returns, etc.), then it’s time to focus on the items that are useful, but don’t get used very often. Experts suggest two strategies. Choose the one that works best for you, or try using them in combination:

 

  • The 12-month test – If you haven’t used the item in the last year, get rid of it.

 

  • The cardboard box drill – Put items you’re not sure about in a cardboard box and set it aside. Whatever gets pulled out and used over the next two months can stay. The things that don’t get rescued should be sent packing.

 

How to handle keepsakes

Now for the toughest decision of all: What to do with those trophies, mementos, greeting cards, photos, kids’ art projects—and all the other things that trigger strong memories and emotional reactions.

 

First, go through these things and make sure they’re still things you want to keep. Some items may now remind you of a time—or a person—you want to forget.

 

Spend no more than 30 seconds reviewing each item. If you allow yourself to start wandering down memory lane, your organizing work will come to a screeching halt.

 

Take photos of items that are bulky or hard to store—especially the kids’ artwork, which tends to fall apart over time, anyway. Once you’ve captured the item in a photo, let the original go.

 

If there are keepsakes you inherited from your parents or relatives that hold no sentimental value for you, it’s time to say goodbye.

 

Stop saving so many things for your children. No matter what they say now, your kids will most likely only be interested in a few key mementos when they’re older. Designate a single memento box for each child.

 

Other people’s belongings

You should not be storing anything that doesn’t belong to you and/or the other current members of your household. Give back things you’ve borrowed. Get rid of the belongings of ex-spouses, ex-boyfriends, and ex-roommates. Get tough with your adult children; your days of providing a roof for their belongings are over.

 

Working with a professional

A professional organizer can teach you the tricks of the trade, help you make tough decisions about what to keep and what to let go, and consult with you about the best storage systems. Hiring a professional is also a good idea if you’re having trouble getting started or sticking with it. Expect to pay around $50 to $90 per hour for this kind of help.

 

Some final words of advice

While you’re getting organized, do not allow yourself to buy any non-necessities. Groceries, yes. But say no to clothes, toys, electronics, sporting goods, and other feel-good purchases.

 

When you’re done organizing, a good rule of thumb is that for every new item brought into the house, an old one has to leave.


Posted on September 28, 2017 at 1:25 am
Tania Harmon | Posted in Selling Your Home | Tagged , , ,

Seven Trends That Will Define the Home of the Future

by Tara Sharp

 

As sophisticated as homes are today, experts predict they’ll be far more so in the not-too-distant future— especially when it comes to their use of technology. Included are seven evolutionary trends that many expect to define the home of the future.

 

#1: Faster home-construction

Today, it takes somewhere between 18 months and two years to design and build your custom dream home. In the foreseeable future, experts predict that timeline will be slashed to six to nine months.

Architects will use immersion technology to not only develop plans faster, but also enable you to “walk” through a three-dimensional representation of the house and experience what it will be like to live there. Changes to the layout could be incorporated with a few clicks of the keyboard and mouse.

And, instead of delivering raw materials to the construction site and having workers cut and assemble them to match the plans, about 70 percent of the cutting and assembling work will take place in a precision-controlled factory environment. Once the foundation is ready, the pre-constructed walls, floors and roof will be delivered in “folded” sections, complete with windows, doors, fixtures, and even appliances, already installed.

 

#2: Alternative building materials and techniques

One of the big breakthroughs in home construction coming in the near future will be the use of steel framing in place of lumber.

Steel is not only stronger (able to withstand a 100-pound snow load, 110 mile per hour winds and significant earthquakes), it’s also far more eco-friendly than most people think (manufactured from up to 77 percent recycled materials) and much less wasteful (typical lumber framing generates 20 percent waste, while steel framing generates just two percent).

Other innovative home-building materials moving towards the mainstream include:

  • Wall insulation made of mushroom roots (it grows inside the air cavity, forming an air-tight seal).
  • Panels made of hemp and lime.
  • Windows made from recycled wood fiber and glass.
  • Recycled-glass floor and counter tiles.
  • Reclaimed wood (beams and flooring re-milled and repurposed).

 

#3: Smaller homes with inventive layouts

The optimum home size for many Americans has been shrinking, and experts predict it will shrink more in the future. But it will feel bigger than it is because the layout will be so practical.

The driving forces behind the small-house movement (millennials purchasing their first home and baby boomers looking to downsize) aren’t interested in formal dining rooms, home offices, guest quarters and other spaces that have only one use and are only occasionally occupied. And they certainly aren’t interested in formal entries, high ceilings and three-car garages. They want an informal house layout, with flexible, adaptable spaces that can be used every day in one way or another.

Many of these homes will also feature a second master bedroom, so parents, children and grandparents can all comfortably live under one roof.

 

#4: Walkable neighborhoods

Even today, homebuyers are willing to give up some of their wants for a new house in order to get a location that’s within walking distance to stores, restaurants and other amenities. In the future, that trend is expected to only grow stronger.

 

#5: The net-zero house

For some time now, homeowners and homebuilders have both been striving to make the structures where we live more energy-efficient (green housing projects accounted for 20% of all newly built homes in 2012). But in the future, the new goal with be a net-zero home: A home that uses between 60 to 70 percent less energy than a conventional home, with the balance of its energy needs supplied by renewable technologies (solar, wind, etc.).

Essentially, these are homes that sustain themselves. While they do consume energy produced by the local utility, they also produce energy of their own, which can be sold back to the utility through a “net metering” program, offsetting the energy purchased.

 

#6 High-tech features

The technology revolution that’s transformed our phones, computers and TVs is going to push further into our homes in the not-too-distant future.

Examples include:

  • Compact robots (similar to the Roomba vacuum) that will clean windows and more.
  • Video feeds inside the oven that will allow you to use your phone to check on what’s cooking.
  • Faucet sensors that detect bacteria in food.
  • Blinds that will automatically open and close depending on the time of day, your habits and the amount of sun streaming through the windows.
  • Refrigerators that will monitor quantities, track expiration dates, provide recipes, display family photos, access the Web, play music, and more.
  • Washers and dryers that can be operated remotely.
  • Appliances that will recognize your spoken commands.
  • Heating and cooling systems that automatically adapt to your movements and can predict your wants.

 

#7: A higher level of security

In the future, home will continue to be a place where we want to feel safe and secure. To accomplish that, you can expect:

  • Sensors that can alert you to water and gas leaks.
  • Facial recognition technology that can automatically determine whether someone on your property is a friend or foe.
  • A smart recognition system that will open the garage door, turn off the security system, unlock the doors and turn on the interior lights when it senses your car approaching.
  • The capability to create the illusion that you’re home and moving about the property when you’re actually someplace else.

 

This is no pipe dream

Many of these products, processes and strategies are already in use. Some are still being tested. And others are only in the incubator stage. But in the not-too-distant future, experts believe they’ll all be available to homeowners across the country.

 


Posted on August 16, 2017 at 11:35 pm
Tania Harmon | Posted in Buying, Real Estate Trends, Selling Your Home | Tagged