Resolutions for Homeowners - Part III : Rooftop Views

Rooftop Views

Resolutions for Homeowners - Part III

Here is the third part of 10 resolutions that the American Homeowners Foundation urges all Homeowners to adopt this year.

One of the best New Years Resolutions homeowners can make is to eliminate expenses that are unnecessary and have no benefit. This is a tall order for many of us, with implications ranging from how you finance your mortgage to the energy efficiency of your home. Nevertheless it’s a very worthwhile exercise which will affect your current and future lifestyle. Many have already made some of the following ten 2008 New Years Resolutions for American Homeowners, but few probably addressed them all.

Resolution #5: I will review my homeowners and other insurance to make sure I’m adequately protected.

Review your coverage with your agent to make sure you have enough insurance. The insured value of your home should reflect its current replacement value, including any additions or improvements, as well as the value of its contents.

Make sure you are covering all important circumstances. Insurance against flooding may not cover internal pipe backups or wind damage during a hurricane for example, and many insurers won’t provide flood insurance (in such cases you may be able to get flood insurance through the National Flood Insurance Program). Many policies also have standard fixed limits on certain types of contents (jewelry and furs, antiques, cameras, electronics, etc.) so you may need an additional “floater” policy to fully insure your home’s contents.

Life insurance needs change throughout your life. They are highest for young couples with children, far less for empty nesters with enough savings for their retirement. Depending on your situation you may be able to cut back on insurance costs.

Resolution #6: I will reduce my home’s energy consumption.

There are many ways to reduce your home energy costs. The American Homeowners Foundation has a free home energy audit. All it takes is a ten minute tour of your home with the audit questionnaire and a few simple tools you probably already have, and you will likely find numerous ways to reduce both your energy costs and global warming. For a free copy, e-mail AHF@AmericanHomeowners.org , and put “Free Energy Audit” in the subject line. We will e-mail you back the free home energy audit.

Among some of the “no-brainers” are replacing old manual thermostats with programmable thermostats, which typically will pay back their costs in several months, and replace standard light bulbs with compact fluorescent bulbs, which have dropped in cost recently. Also make sure your exposed hot-water pipes are insulated, furnace filters are changed regularly, leaky faucets are repaired, and run only full loads in the dishwasher and clothes.

Resolution #7: Whenever appropriate I will take advantage of new options to reduce real estate services costs when I buy or sell a home.

Internet-based real estate service companies will provide rebates of as much as 2% of the selling price of the home you buy if you use them to assist you in your home purchase (state real estate associations have managed to make real estate commission rebates illegal in several states, but the U.S. Department of Justice, the Federal Trade Commission and consumer groups like the Consumer Federation of America and the American Homeowners Grassroots Alliance are working to repeal those laws). Try to get an exclusive buyers agent (EBA) to represent you when you buy a home. EBAs represent only buyers, never sellers.

Many of the state real estate associations have also managed to convince their legislatures to allow traditional real estate brokers to simultaneously represent both the buyer and the seller of the same home, creating a potential conflict of interest you want to avoid if possible. This practice is called “dual agency” and in those states a real estate agent may refer to himself as a “buyer’s agent”, even though the brokerage is actually representing the seller of the property you’re considering.

With the market as soft as it is, buyers should consider selling their present home before buying its successor. There’s a large inventory of unsold homes in most areas, so finding your next home shouldn’t be a problem. Selling your current home will probably take much longer, especially if you don’t want to be forced to accept an unusually low price. For that reason most sellers aren’t willing to accept purchase offers contingent on the sale of your current home, unless you are pricing your home very competitively and/or only asking for a month or two to sell it. While it is inconvenient, moving into a short term rental if necessary after you sell will allow you to take full advantage of your negotiating leverage when you buy the next home.

Another tool that can simplify some of the chores related to buying are service aggregator Web sites that let you compare rates from different local providers of electricity, local, long distance and cellular telephones, oil and gas, TV and Internet services, and newspapers by zip code. Some aggregator Web sites charge a fee for their services and all of services providers in each area may not be available on each Web site.

3:23 PM - Feb. 2, 2008 - comments {1} - post comment

RE: Resolutions for Homeowners - Part III

Thank you for the great advice on where and how to get the Free Energy Audit Kit. I will be certain this information and?or kit is passed on to all my sellers, buyers and contacts.

Lets save our contacts money and create good will at the same time.

Tod Edwards, GRI
Prudential Carolina, Charleston, SC
TodEdwards@PruCar.com

Tod Edwards - 6:33 PM - Feb. 4, 2008