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Relocating Your Home to Advance Your Career
Many of us dream of getting a better job. But when a promotion or new job opportunity comes with a request to relocate, the result can be very disruptive to your home life. There’s a lot to consider when making this kind of move, such as do you have a home to sell? Are you planning to rent or buy when you relocate? Is your employer covering some of the costs of your relocation? Should you hire a moving company or handle the move yourself? Following is an overview of some of the most important factors you should take into consideration when relocating.
Assessing the situation
The idea of moving to a new area and into a new job can be very exciting, but you’ll want to assess the situation carefully:
- Do your best to make sure the job is a good fit, the boss is a good personality match (and plans to stay long-term), and that you’ll be comfortable in your new role for at least three years.
- Meet with a human resources manager to make sure you understand all the details of the relocation package.
- Thoroughly research your destination to ensure it’s a good fit for your entire family, and that there are other potential employers in the area in the event your new job doesn’t work out.
- Use one of the online cost-of-living calculators to determine if there’s a significant difference between what you pay now (for rent/mortgage, utilities, groceries, gas, insurance, and more) and what you can expect to pay in the new location.
- If your spouse works or is planning to enter the workforce, he or she should apply for jobs in the area to test the employment conditions.
- Ask your real estate agent to perform a detailed market analysis to estimate the value of your current home.
- If you live in an apartment, review your lease carefully to determine if you are facing any penalties for moving out.
Renting versus buying
Once you have made the decision to relocate it’s time to consider your housing options—not only where you live and what type of home you want to live in, but whether to rent or buy.
Financially speaking, it makes more sense to buy today than to rent in most markets. According to the latest research on the subject, it costs 15 percent less to own a home than to rent an apartment in the current economy. That said, renting may be a better option if:
- You can’t decide where you want to live.
- You don’t qualify for a home loan.
- You need to keep your current home and can’t afford a second home.
- You’re moving to an area where home prices are extremely high (e.g., New York City, San Francisco, Orange County).
- You’re not yet certain whether you’ll want to stay long-term in the new location.
Moving your belongings
Fewer and fewer companies are offering to pay employee moving costs today, which means it may be up to you to arrange for one of the following options:
- Hire out the entire process (the moving company does all the packing, loading, driving, and unloading). Expect to pay between $6,000 to $8,000, on average.
- You pack all the boxes while the moving company does all the loading, driving and unloading. Expect to pay between $3,500 and $5,500, on average.
- You rent a truck and do all the packing/unpacking and driving. Expect to pay between $2,000 and $3,000, on average.
Making the move easier
Relocating can be exhilarating, but also extremely stressful—especially if you have school-age children or teens. Here are four tips to make the process easier:
- Get everyone in the family talking about their feelings and concerns. And make sure you’re doing as much listening as talking.
- If you have children, include them in the planning and packing work to make them feel more involved. You may want to hold a going-away party for your children, to show that the move is worth celebrating.
- If you have pets, ask your veterinarian, your moving company, and your airline (if you’ll be flying) to provide you with information, tips and any regulations.
- To protect yourself from identity theft, only work with trustworthy moving companies; submit a change-of-address form to the post office about two weeks before your move; consider moving financial records and other personal files yourself.
Last year, the overwhelming majority of people (77 percent) who decided to move for work reported they were happy and had no regrets.
If you are looking for a qualified Real Estate Agent please contact us here.
November Home Maintenance Checklist
November brings a transition to shorter days, colder weather and spending more time indoors. It also brings anticipation, planning and preparation for Thanksgiving and the upcoming winter holidays.
Our checklist this month includes small, quick and easy tasks you can do now to get a jump start on your holiday hosting preparation so you can enjoy friends and family when they arrive.
Replace chair floor protectors. Prevent damage to your hardwood floors by adding or replacing floor protection pads to the legs of your chairs. Hardware stores sell felt self-adhesive protectors that are easy to use.
Clean garbage disposal. Run a few pieces of lemon rind with some ice cubes through your garbage disposal to keep it smelling fresh. The ice chunks scour the blades and scrape away debris. Products that clean and deodorize garbage disposals can also be purchased in retail stores.
Repair plumbing issues. Fix a slow drain or a stuck garbage disposal now rather than wait until you have a full house of guests.
Check bathtub caulk. Use diluted bleach to clean caulk that is moldy or mildewed. Avoid water damage to your home’s framing by replacing worn-out caulking as soon as possible.
Stock up for winter. Buy winter supplies like shovels and ice melting products now so you’ll be ready when the first snow falls.
Silence squeaky door hinges. Spray some cooking oil or other lubricant on door hinges. Be sure to first place a drop cloth on the floor to protect it and also blot the hinge with a rag to remove excess oil.
Clean kitchen exhaust fan filter. Remove kitchen exhaust fan screen and scrub with a mild detergent or run through the dishwasher.
Check fire extinguishers. Locate your fire extinguishers and be sure their gauge shows enough pressure.
Set aside a November afternoon to do the items on this home maintenance list, then sit back and enjoy a cup of hot apple cider. Happy Thanksgiving!
For more information about Windermere Evergreen please contact us here.
5 Lessons Home Renovations Can Teach You About Yourself
But a remodeling project, being a rather noteworthy life experience, can also teach you a lot about yourself. No, I’m not talking about your tastes or preferences (for example, you learn that you love the color blue on your walls or you learn that you really just don’t like remodeling). Rather, it can teach you about some characteristics you never knew you possessed, or at least never had the opportunity to focus on — the good and the bad. Here are some things you might learn about yourself.
Learn 1: Jane Lockhart Interior Design, original photo on Houzz
1. You’re more impatient than you thought. Remodeling will — I repeat, will — test your patience. It doesn’t matter whether you’re a dedicated yogi who can sit and meditate for hours at a time or a hobbyist who works late into the night tirelessly assembling detailed ships in bottles. Weather delays, unforeseen problems (wait, there’s mold behind that wall?), busy trade schedules — it’s almost impossible to have a remodeling project without a delay or two. And when it’s your project with the delays, you might just find yourself repeating the mantra of kids stuck in the family car during a road trip, “Are we there yet?” Or more specifically, “Are we done yet?”
Learn 2: Transitional Sunroom, original photo on Houzz
2. You’re adaptable. Bathroom remodels and kitchen remodels are notorious for, well, making bathrooms and kitchens unusable while they’re under construction. At the beginning this might seem like a major inconvenience (truth be told, it is!), but by the end you might be thinking “Who really needs a full kitchen?” After all, there are so many small appliances loved by college students and remodeling survivors alike — toaster ovens, microwaves, slow cookers, camping stoves.
Related: Brainstorm Ideas for Your Kitchen Remodel
Bathroom remodels can be easy to work around if you have another bath that isn’t under renovation, or a next door neighbor who is fairly generous, or membership in a gym with clean showers. Remember, creativity and adaptability are your friends. So embrace your inner MacGyver.
Learn 3: AMW Design Studio, original photo on Houzz
3. You want in on the action. It starts small: At first, you’re just chatting with your contractor about the status of your project — normal stuff. But as time goes on, you can’t help but ask questions about the more technical side of things. Some people might find details about tile installation eye-rollingly boring, but you’re intrigued.
Related: Read Reviews to Find the Best General Contractor Near You
Suddenly, you find yourself searching for home improvement how-to books and classes on design. You may even start planning your second project (which you’re considering doing yourself) or looking for houses you think you’d like to flip. Watching your own home transform before your very eyes has been an exciting process, no doubt, and now you’re ready to try your hand at it. Don’t be surprised if at first you just want the process to be over, only to find that you never want it to end.
Learn 4: Deville Custom Homes, original photo on Houzz
4. Your relationships can (probably) weather any storm. If the space you’re remodeling is a place that you share with someone else (whether it be your spouse, children or others), it’s likely that you’ll feel a little more stress than if you were just remodeling your own personal space.
Every stress that you feel about the remodel, they probably feel as well. Every worry you have about budgets and schedules and paint colors, they have too. Pour all that stress into a small group of people who live together, and, well … things can get messy.
But when you finally see the light at the end of the tunnel, you realize that all that pressure was worth it, because you and your people have a beautiful new space to use for years to come. It probably took some compromise and communication to get there, but now that you’ve finally made it, you know you’re that much stronger because of it.
Or not. I don’t want to be a Debbie Downer, but what you might discover about yourself is that you can’t collaborate with the person you’re with. Remodeling is like a stress-test on relationships — for good or ill.
Learn 5: Tiffany McKenzie Interior Design, original photo on Houzz
5. You’re fearless. I’ll tell you this much: It takes a lot of inner strength to not freak out when you see someone you’ve never met come through your front door with a hammer. Remodeling can make some people stronger. Once you see your home demolished before your very eyes by strangers wielding tools and driving heavy construction equipment, your definition of “scary” changes a little.
Obviously, this isn’t an all-encompassing list, nor is it supposed to mean that you will find yourself relating to every point. You may or may not feel the urge to become an amateur remodeler. You might (understandably) still get freaked out at a stranger coming into your home with a hammer. Remodeling is a personal journey, full of personal discoveries and accomplishments and all that good stuff. The only way for you to truly know how it will affect you is for you to experience it yourself. But whatever happens, you will learn more about yourself than you have in a long time.
If you are looking for a qualified Real Estate Agent please contact us here.
A Beginner’s Guide to Managing a Remodel
YourSpace Contractors, original photo on Houzz
Become a list writer. Making lists is key when it comes to project management. It’s the only way to properly organize your thoughts and prevent any details from being forgotten.
The most important list is your scope of work, or specifications, document. This is basically a detailed list of everything to be done, from start to finish. If you’re dealing with one main builder who’s organizing all the work, then you’ll need to make sure he or she gets a copy, so the goals are clear and all the information is provided.
Also, having detailed specifications makes it easier if you want to obtain multiple quotes, and you’ll know it’s a fair comparison since all the builders will be quoting using the same criteria.
frenchStef Interior Design, original photo on Houzz
Make sure you’re all on the same page. If you’re coordinating separate subcontractors (cabinetmaker, plumber, electrician), then it would be worth indicating who’s responsible for each task. Give a complete copy of the specifications to all of them, so they’re all aware of what everyone is doing. Discuss the specifications with your subcontractors since they may be able to provide help and advice. A schedule is also useful, so you can keep track of progress and everyone knows who’s going to be on-site on which day.
With prior knowledge that a partition wall will feature some lighting, for instance, the builders will know to leave the stud frame open for the electrician to run the wires through before it’s boarded up and plastered over. Trying to feed wires through after the fact is much harder, takes longer and risks unnecessary damage.
Sian Baxter Lighting Design, original photo on Houzz
Break into subsections. In addition to your main specifications, it’s a good idea to have sublists for each separate element of your design. For example, your main specifications may say “install 6 x recessed LED downlights in ceiling,” but your lighting specifications will detail where they are to be positioned, the type of bulb, the hardware finish and so on. The more information you provide, the more accurate your quote should be and the less likely it will be for mistakes or misunderstandings to occur. It will also minimize any unexpected costs.
This bathroom has a minimalist elegance, but it’s far from straightforward. This project would have required a builder’s spec, including layout and elevation drawings with dimensions, an electrical spec with lighting plan, a plumbing spec with layout drawing, and a decorating spec — phew!
Plan like a pro. Finalize your design before starting any work, rather than trying to do it as you go along. The process will be much more enjoyable without constant deadlines presenting themselves, and if you haven’t planned, you may find your options restricted based on work that’s already taken place.
Take a couple of weeks to put it all together, write your specifications, draw up the plans, get everything ready and make all the decisions before proceeding. This will save you time and money along the way, and significantly reduce stress levels during the project.
This clever design features well-thought-out lighting and custom cabinetry. Careful consideration would have been given to where to position the outlets, radiators, lights, switches and other details.
Yellow Letterbox, original photo on Houzz
Never assume. You know the saying. When writing your specifications or drawing your plans, never assume that someone else will know what you want unless you explicitly state it. Include every tiny detail, no matter how picky it may seem. As well as avoiding mistakes, it also prevents any disputes over what is and isn’t included in the quote.
This bathroom just wouldn’t have looked the same if white grout had been used, for instance. You may think it would be absurd to even consider using white grout in this case, but if you haven’t asked for dark gray, you can’t expect it and you can’t assume that you will be asked what color you want. White is standard, and a tiler may use it if nothing has been specified.
Stand by for decisions. Your builder will present many questions and decisions to you along the way. Which tiles do you want on the walls? Where do you want these wall lights? What color do you want on the baseboards?
Your best bet will be to try to pre-empt as many of these decisions as possible and have the answers ready or, even better, provide the information in advance. Making these decisions under pressure can lead to impulse moves you may regret later. However, taking too long could hold up the project, costing you time, money and the patience of your builder. No one wants an unhappy builder.
Inevitably, there will be some questions you couldn’t have anticipated, but if you communicate well with your contractors, they should, where possible, give you time to make a decision without holding up the project. Don’t be afraid to ask their opinion on the best course of action, but don’t feel pressured to compromise on the design if you don’t want to.
Brilliant Lighting, original photo on Houzz
Give yourself time to deliver. This is one of the classic pitfalls, so take note. When pulling your design ideas together and deciding which products and materials to use, make a note of the lead times. Many pieces of furniture are made to order and can have lead times of up to 12 weeks, sometimes longer. Similarly, tile and natural stone can take much longer than expected to arrive, and products from abroad can encounter holdups during transit.
This chandelier was custom-made for the project and looks fantastic. This is no last-minute, off-the-shelf, next-day-delivery job. It can be a huge shame if you’ve spent hours, days, weeks choosing the perfect product, but when you come to order it, you find that it will take too long to be delivered, perhaps time you can’t afford. Then you have to decide whether to hold up the work or pick something else based on the fact it can be delivered quickly.
Find a Bathroom Vanity for Your Bath Remodel
Factor in a contingency. Even when you have the very best of intentions, issues that you couldn’t have predicted may arise during your project. So it’s a good idea to factor in a 10 percent contingency within your budget for these matters, especially with old buildings. Who knows what condition the walls are in behind those kitchen cabinets before you rip them out? Or what may be lurking underneath that carpet when you pull it up?
In these situations, it’s important to expect the worst and don’t let it throw you off your game. You are a project manager extraordinaire, and you’ve totally got this. Just accept that these things happen, find out what the options are and make a decision. Your contractors will be able to advise on what to do, so harness their expertise and trust them to help you find the right solution.
Elayne Barre Photography, original photo on Houzz
Call in the cavalry. If you choose to manage your project yourself, it’s certainly an enjoyable and rewarding process, but it also takes a certain type of person. You have to be organized, calm under pressure, strategic and confident — not to mention being able to afford the time to plan, coordinate and oversee the work.
If you have qualms about taking it on yourself, then consider hiring a project manager. Yes, there will be a fee, but consider that a badly managed project can cost you time and money, and you may not achieve the results you were after. A pro will take care of everything and allow you to rest easy, knowing you’re in safe hands.
If you are looking for a qualified Real Estate Agent please contact us here.
Time to De-Clutter? Some Tips for Selling Your Stuff
If you are looking around your home and thinking to yourself that it’s time to de-clutter, the summer months provide an ideal time to hold a garage sale. But if that sounds like too big of an undertaking, there are other options available to you thanks to popular resale sites like eBay and Craigslist. And if even that sounds like too much effort, you might also consider donating lightly used items to charity or sending them off to the dump. Here are some questions to help you decide which method is best for you.How much stuff do you have? Are you liquidating your space of large furniture items, a large quantity or quality items, or do you have a small pile of electronics?
If you have yards worth of stuff to get rid of, you definitely want to consider a garage sale. Getting rid of multiple items on Craig’s list can be time consuming, and shipping items sold on eBay can be expensive and eat into your profits. On the other hand, if your items are easily shippable or you have a small enough quantity to take quality photos and post online, then you can save time by using eBay or Craig’s list – and potentially make more money too.
What type of stuff am I getting rid of? Is it worth anything?
If you have large furniture or unique/valuable pieces it may be worth the time to take some quality photos and try to sell these items on Craigslist first. Generally Craigslist works as “first come, first serve” so be prepared to respond to inquiries quickly. If you have small items that have some value, you may want to consider eBay. You reach a much larger audience through eBay which can result in a greater financial return.
How much time do I have?
Garage/yard sales are by far the most time intensive of your options. If you choose to hold a garage sale, you will likely need to dedicate at least three days for prep, clean-up, and the sale itself. All items should be cleaned up, priced, and neatly displayed for sale. Signage should be prominently placed around your neighborhood. You can also place an ad in your local classifieds or on Craigslist to attract a larger crowd.
Will your home/community accommodate a Garage Sale?
Garage and yard sales are generally held at a single-family residence. If you live in an apartment or condo, you may want to consider alternatives due to limited public space. You may also want to consider your community traffic. If you live on a quiet street, you may not get enough customers to generate sales.
Can you enhance a sale by joining with neighbors, friends and family?
Some communities hold an annual neighborhood garage sale, encouraging all neighbors to participate on the same day. This increases your ability to market the event and attract a larger audience.
If you are looking for a qualified Real Estate Agent please contact us here.
At Home in the Outdoors
More than 80 percent of Americans say they want an outdoor living space where they can relax and entertain. And it’s no wonder why. Outdoor spaces extend your livable space, add visual interest, and increase not only your quality of life, but also the overall value of your home. (In some cases, the increase in your home’s value can cover most or all of the cost to create the new space.) Here are some options to consider:
DECK
Decks are still the most popular outdoor living spaces, not only because they work so well for entertaining and relaxing, but also because they have the highest return on investment (see the Tips column for data).
Surprisingly, wood decks (made of cedar or pine) are actually the better financial investment, because building with Trex or other popular composite products costs considerably more, yet doesn’t increase the home’s value by as much.
Expanding and re-configuring your current deck is another option that’s popular today. The contractor will typically remove the old face boards, extend the underlying structure, and then put down the new decking. This is also an opportunity to add built-in furniture, privacy screens, even plumbing and electricity.
PATIO
Running a close second to decks – in both popularity and investment return – are patios. With a patio, you can relax and entertain at ground level, which can afford more privacy in urban areas, and allows you to be more engaged with the surrounding plants and landscaping.
Typically made of brick, concrete, or stone, a patio also comes with far fewer maintenance and repair issues than a deck. Plus, patios are generally easier and less disruptive to construct – which is why they’re often about 30 percent less expensive to have professionally built.
GAZEBO
For those who want even more privacy, as well as shelter from the sun and protection from mosquitoes and other pests, there’s the gazebo. Available with walls or as an open-air design, with screening or not, these modestly sized, affordable backyard structures can be built from scratch or purchased as a kit (for assembly by a do-it-yourselfer or a professional).
Popular in the Midwest for decades, gazebos have made their way west as homeowners here have discovered how nice and easy they are for creating a shaded spot for reading, relaxing, and backyard gatherings.
OUTDOOR KITCHEN
People tend to gather naturally in the kitchen. And when the kitchen is outdoors, it creates an ideal opportunity to mix, mingle and interact in the open air. Other reasons why cooking outdoors makes so much sense: less kitchen cleanup, the house stays cooler during the summer, and grilled food just tastes better.
Some may think an outdoor kitchen is only for cooks who host large parties, but homeowners who go this route say they’re more of an extension of the home, and great for daily use.
Designs for outdoor kitchens range from the simple (a grill, limited counter and cabinet space, and maybe a prep sink) to truly independent entities with a refrigerator, an elaborate grill, warming oven, freestanding island with storage space, rolling cart stations, and even a dishwasher. Depending on how elaborate your design, you may be able to list it as a second kitchen when selling your house.
SIX PLANNING SUGGESTIONS
- Before meeting with contractors, gather photos of designs and ideas that you like; this will make it much easier to communicate your ideas.
- Make sure the materials you plan to use, as well as the overall size of the structure, will be harmonious with your home’s current look and feel.
- Give serious consideration to a roof – which will likely add significantly to the cost, but will also provide much-needed shade on hot days and protection from rain and inclement weather. In fact, to ensure things are structurally sound and architecturally appealing, start with the design for the roof first, then set your sights on the roof supports and structure below.
- Incorporate lighting into your design, which will extend its usability into the evening and throughout the seasons.
- Consider convenience, comfort, and longevity when choosing materials. For example, a floor made of dirt or stepping stones may last forever, but one made of wood or concrete is much easier to clean and arrange furniture upon.
If you’re eager to live a healthier lifestyle and reconnect with family and friends, as most people are today, it’s time to consider an outdoor living space. For more information on Windermere Evergreen please click here.
How Neighborhood Affects Home Value
Whether you’re buying or selling, accurately pricing a home requires professional assistance from someone who knows the neighborhood.The “estimated” home prices you see posted online can be off by tens of thousands of dollars – not because they’re dishonest, but because the computer programs generating these guesstimates don’t take into account the current condition of a house, the amenities that are included, the qualities of the surrounding neighborhood, and so much more.
A real estate agent’s appraisal will not only consider the selling prices of surrounding properties, as the online services do, but also take into consideration a host of other criteria. For instance, when it comes to assessing the surrounding neighborhood, the following factors can often significantly affect the market price of a home:
School quality
The quality of neighborhood schools has a dramatic impact on home price, whether buyers have school-age children or not. In the most recent study on the subject, researchers from the Federal Reserve Bank of St. Louis found that above-average public schools (those with math scores 4.6 percent better than the average) increased the value of nearby homes by 11 percent (or an average of $16,000) in the St. Louis area.
A park within walking distance
Parks are so important to families today that simply having one within a quarter mile can increase the value of a house by 10 percent, according to a new study from the University of Pennsylvania’s Wharton School.
Stores nearby
The impact that retail areas have on home values depends on the type of community. According to a study recently released by the Massachusetts Institute of Technology, homes in urban areas sell for six percent to eight percent more than average if they’re within a quarter mile of a retail cluster (shops and restaurants). However, in suburban communities, it’s the homes that are a mile from any retail centers that sell for the most (homes located closer than that actually sell for 8 percent less than average).
Freeway access
Because we’re a car-oriented society, most people are willing to pay more to live within a couple miles of an on-ramp to a major highway or freeway, which saves gas and speeds commute times. However, if the home is located too close (within a half mile of the freeway), the associated noise and air pollution can push the price in the opposite direction.
Vacant lots in the vicinity
Being surrounded by vacant land can be a good thing in rural areas, but it’s usually a negative for urban homeowners. A recent Wharton School study found that higher concentrations of unmanaged vacant lots in an urban neighborhood drag down the values for surrounding homes by an average of 18 percent.
Proximity to nuisances and environmental hazards
Two recent studies (one from an Arizona assessor’s office, the other by the University of California Berkeley) show that homes located near a landfill or power plant usually sell for four to 10 percent less than more distant homes. The same can usually be said for homes located too close to manufacturing facilities – especially those that make lots of noise or produces noxious odors.
Neighborhood foreclosures
According to a recent study by the Massachusetts Institute of Technology, the value of a home decreases by one percent for every foreclosed home within 250 feet of it. Why? The lower sales prices of foreclosed homes can quickly drag down the neighborhood’s comparable prices. Plus, the owners of these properties usually don’t have the money or interest in maintaining them after they go into foreclosure, which can create an eyesore for all the other homes in the vicinity.
Percentage of homeowners
Are there more owners than renters living in the neighborhood? If so, property values are usually better than average. Homeowners tend to take better care of their property than renters or landlords, which improves the curb-appeal for the whole community.
Public services
Some communities have a wealth of quality public services available to them – including regular street cleanings, scheduled street repair, graffiti removal services, landscape maintenance, neighborhood beautification efforts, and more. Needless to say, homes lucky enough to be located in those areas typically command higher property valuations.
Home sellers can use these factors to justify a higher asking price. Buyers can use them to try and negotiate something lower. However, when it comes to attaching specific dollar amounts, that is something best left to your real estate agent, an objective professional with a deep understanding of the local market.
If you are looking for an experienced real estate, connect with us here.
Homeowners Insurance: Protecting Your Home
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.
For more information about Windermere Evergreen please click here.
Why Owning a Home is Such a Smart Investment
After succumbing to the “Great Recession” ten years ago, the stock market has made a comeback. So, does that mean you should forget about buying a new house and invest in stocks instead? The answer to that question, say experts, depends on your investing savvy, your financial discipline, your age, and your current financial situation.
The first question you need to ask yourself is, “Am I disciplined enough to invest in stocks?” According to two professors who recently studied 30 years of personal-finance performance, you need to be someone with exceptional financial discipline if you want to earn real money in the stock market. Or, you could simply buy a house.
When you buy real estate, the down payment and monthly mortgage payments force you to set aside a significant amount of your earnings on a regular basis. It’s automatic. But if you can’t summon the same discipline to invest that same amount of money in the stock market on an equally regular basis, then stocks are probably going to be a losing proposition, according to the professors’ study.
“We find that if people don’t invest all the money, actually about 90% of the time, you’re better off buying real estate,” says Professor Eli Beracha, co-author of the study.
Other issues that make stock investing risky
Investing guru James Altucher wrote a column in The Wall St. Journal titled, “8 Reasons You Stink at Trading Stocks.” In it, he argues that most non-professionals don’t have the investing savvy required to be successful in the stock market. Here are a few telling excerpts:
- “Nine out of 10 people think they are above-average drivers. Nine out of 10 people think they are above-average investors. Both are mathematically impossible.”
- “Most people sell at the bottom and buy at the top—the opposite of what you want to do as an investor—because they let emotions get in the way of patience and strategy.”
- “It’s really hard to own stocks. It’s not just picking a stock and watching it go up 1,000%. It’s buying it and sometimes watching it go down 80% before it ends up rising 20% above your purchase price. It’s waiting. It’s patience. Psychology is at least 80% of the game. And knowing when to sell? Even harder.”
Age Matters
When you’re young, many financial advisors encourage investing in things like individual stocks. With a long career ahead, you have time to wait for any bad investments to turn around before you may really need the money. But once you’re a little older, with a family, and starting to focus on your financial future, that’s when advisers recommend you buy things like real estate—a conservative investment with a long history of stable, predictable earnings.
The type of loan you choose also makes a difference
If you want to both own a home and invest in stocks, consider a 30-year home loan, which will significantly reduce your monthly payments and leave you with extra money for playing the market. (Just remember the tradeoff: You’ll end up paying thousands of dollars more in interest over the life of the loan.)
If you don’t have a burning desire to play the stock market, choose a 15-year home loan. You’ll pay less interest over the life of the loan, you’ll build equity faster, and, obviously, you’ll be mortgage-free 15 years sooner.
The tax advantages of owning real estate
As a homeowner, you’re entitled to a bevy of tax benefits you don’t get as a stock investor. You can deduct your mortgage interest and property taxes from your annual tax return. Plus, depending on your circumstances, you could also get a deduction or credit for any home-office expenses, moving expenses, capital gains, any “points” used to lower your interest rate, and more.
One caveat: investing in real estate takes time
No matter what some of those reality TV programs show, buying a home should not be viewed as a get-rich-quick scheme. But if you think you’re ready to put down roots for as long as seven years, chances are very good that any home you purchase will appreciate significantly during that time (even if the economy runs into some bumps along the way).
The non-financial benefits
Of course, not all of the benefits of owning a home are financial. For most Americans, their home is a source of tremendous pride, comfort, security and freedom. Most of us also use our homes to showcase our personality, through paint colors, furnishings, landscaping, yard signs, holiday decorations and so much more.
Yes, the stock market is on an upswing currently (depending on the week), but if you want an investment with a long-term track record of consistent returns—plus tax breaks and a variety of personal perks—you may want to buy a home instead.
If you have questions about the buying or selling process, or are looking for an experienced agent in your area, connect with us here.
I’m Ready To Downsize But How Do I Start?
Are you thinking about downsizing but don’t know how to make the tricky transition work? How do you buy a new place before you sell your current home?
You are not alone as many home owners have the same concerns. They want to embrace a new lifestyle, take advantage of our ever-increasing values, and lock in a smaller home or condo in an area that they covet.
Below are some creative solutions that may help you make your dreams come true too. Keep in mind that everyone’s financial profile is different. One option might not work for you while another one will. It might even be a combination of a few of these.
Here are a few ideas:
HELOC – Home Equity Line of Credit. If you have enough equity in your current home, you may be able to get a HELOC to get a down payment for a conventional loan or to buy the new property outright.
Bridge Loan – These loans can bridge the gap between buying and selling. You can typically borrow up to 65% of the equity in your home with a maximum loan of $500,000.
Margin Loan – most individuals can borrow up to 50% of the balance in their liquid investment accounts (retirement accounts cannot be used). These loans are generally cheaper than a bridge loan and have no major tax implications.
IRA Rollover – Most retirement funds allow a 60 day rollover of funds. It’s very important to know that these funds must be replaced into the retirement account within 60 days or you may incur significant penalties and taxes.
Making a move, whether you are buying a larger home or downsizing out of your now empty nest, is a big decision. You’ll want the best professionals to help you. Ask your real estate agent to put you in touch with a lender who will help evaluate your financial situation and customize the best options for you. For more information about Windermere Evergreen please click here.
