Resolutions for Homeowners - Part IV : Rooftop Views

Rooftop Views

Resolutions for Homeowners - Part IV

Here is the final 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 #8: I will look for economical ways to increase the value and livability of my home.

If you are like most, you probably have a list of things that need to be fixed or upgraded in your home, and a remodeling project may be on the list as well. Many of the things on the list may have been on the list for many weeks, if not months. You may have noticed that those jobs seldom get done by themselves, and some conditions get worse over time.

Start by putting your home “to do” list in priority order. Put on top the kinds of repairs that can cost more if neglected (a leaky roof for example), or which will continue to cost you money until they are fixed (a broken refrigerator seal, leaky faucet or toilet, etc.). Usually the parts are the least expensive part of a repair. If you are at all handy force yourself to take the time to fix things yourself.

If you’re not handy or won’t have the time to fix everything in the next few months call a handyman or specialist for the things you can’t handle. A good independent handyman should be able to do most things you need at a far lower rate than a plumber would charge to fix your toilet or an electrician would charge to fix a broken appliance. Ask your neighbors for recommendations of good handymen, and find out their hourly rates. The handyman franchises, which advertise heavily in local media, can cost as much as a specialist, however. If you can get a specialist (i.e. electrician or a plumber) for about the same price, that’s a smarter choice. Reporting services like Angies List, which carry consumer ratings on local contractors, can be very helpful in identifying which contractors are the most reliable and least expensive.

More extensive remodeling projects will probably require a remodeling contractor. Many projects can return 100% of the investment when you eventually sell your home, and improve your lifestyle in the meantime. Another plus of remodeling is that if it will make the home better suit your needs in the future, it can be a lot less expensive than selling your home and buying another which has features. By the time you finish selling your home and buying another, you can easily spend 10% of your home’s selling price on real estate commissions and various settlement costs for both homes. You can do a lot of remodeling for that amount.

The best candidates for a good return on your remodeling investment are things like updating badly dated kitchens or baths, or adding a second bathroom in a one bath home. The National Association of the Remodeling Industry periodically publishes return-on-investment data on most types of remodeling projects. Don’t over improve to where your home’s value substantially exceeds that of the neighbors or you’ll have trouble recouping your investment when you eventually sell. You can also help keep costs down if you are willing to do some of the easier finish work yourself, like painting or trim work.

Check the references of remodeling contractors thoroughly. Consumer complaints regarding remodeling contractors consistently at the top of the Better Business Bureau’s and the American Homeowners Foundation’s complaint list. To avoid disputes always use a comprehensive contract when you hire a remodeling contractor.

Resolution #9: In the face of growing signs of recession, I will be cautious in 2008.

Because of the growing threat of a recession, 2008 is not a good year to become over extended. Whatever else you do, make sure that you have enough cash or liquid reserves to weather unforeseen events, such as company layoffs or family illnesses. If that means waiting until next year to buy a new car or new home, so be it. Prices and interest rates may be a little higher next year, but so will your savings. A little wait to avoid a significant financial risk is well worth it.

Resolution #10: I will engage in the political process to influence issues of economic impact to me and my home.

Home ownership is a nonpartisan condition, yet the votes of legislators and rules of regulators will have a lot to do with your economic future. Home equity is the single largest form of savings for most homeowners and many of those votes will impact the value of your home. Those votes will also impact your mortgage interest rates, your taxes and other major expenses for most homeowners, such as healthcare. All of them will impact your ability to buy a home and your lifestyle. For many years American homeowners have been the true “silent majority”. With a Presidential election this November the 75 million American homeowners can no longer afford to remain silent. We must raise our voices to policymakers at all levels in 2008 to protect the value of our homes and the institution of home ownership.