If I asked you to make a list of everything in your home from memory, could you do it? For most people the answer is no, which is why a list of items in your home, or a "Home Inventory", is so important. With recent natural disasters in California, we are reminded that everything can be wiped away in a flash. Whether natural disaster, burglary, electrical fire or who knows, there are lots of reasons why your insurance company would require detailed, documented proof of items that were stolen, damaged or destroyed. They will want an itemized list, which is virtually impossible to create when you're reeling from a disaster and trying to recall everything from memory. A home inventory is not just for disasters though, it may help you adjust your current coverage as your determine what it would really cost to rebuild if everything were gone. For most people, the value of their home falls well short of the value with all their belongings.

What to Include

As much as possible! Obviously you'll want to list the big stuff like furniture, appliances, jewelry and valuables, but how about the little things? What about the drapes, rugs, toys, dishes, etc? EVERY item in your home needs to be documented. Don't hesitate to include video tapes, photographs and receipts in a home inventory as well.

Where to Start

Though it may seem like a HUGE task, the hardest part is usually just getting started. Preparing your home inventory can be even easier with the right tools. Most people start with the old notepad and a pen. While this is an option, inventory software is an excellent alternative. You can find home inventory software called Know Your Stuff (www.KnowYourStuff.org) provided by the Insurance Information Institute. This software is not complicated to use makes creating a home inventory much less of a headache. It even has an inventory wizard and the ability to store digital or scanned photographs and receipts. Plus, once you have completed your inventory, it makes it easier to keep your information up-to-date and keep an accurate record of your possessions. You can Google "Home Inventory" to find even more information and software for this.

Once your home inventory is created, is is VERY IMPORTANT to remember to keep a copy (including all receipts, pictures, etc.) in an off-site location. Good suggestions include a friend or relative's home, your office (if you have a drawer that locks) or even your bank's safe-deposit box. Another option is to store your information on-line. An example would be a secure server at Secure Swiss Databank (http://www.vault24.com/public/product.php) where you can access it day or night. A less-secure option (but better than nothing) is to email a copy to your web-mail account (like gmail, yahoo or hotmail) and file it with your "important emails". This way, you can rest easy knowing that, should something every happen to your home or its contents, you can access your inventory 24-hours a day from anywhere with internet access. This should give your insurance company a great head-start on getting you back where you want to be.

Final tip

Don't wait to get started. It just SEEMS like a task that will take days. In actuality, most people can get a home inventory completed in just a few hours... and you never know when you might need it, so get on it!

Ryan Cave, The "Caveman"
Truth, Honor & Personal Integrity
214-789-9366
www.CaveRealty.com

Just wanted to write a quick note about property management: It's not for everyone. In fact, if you haven't really studied your state laws pertaining to property management, you might want to stear clear of being a landloard and leave it to the pros. Generally, a professional property management company can be hired for 10% of the monthly rent. So, a $1,500/month rental would cost your $150. Sound like money you could save by doing it yoursef? Here few key questions to ask first: Do you know how long you have to repair an item that is broken? Keep in mind, it could be anything from the HVAC system to the dishwasher or even just a door that won't close anymore. Your state may have a set number of hours (or days) that you have to get the item repaired. Do you know how to begin and/or execute the eviction process? There are state requirements when it comes to giving notice and actual eviction proceedings. Bottom line: Many people think that being a landloard is easy... just collect the rent and make sure the place isn't falling apart. However, it can be much more difficult than it might seem and you can even get sued if things aren't handled properly.

Often this topic comes up when a Seller owes more than they can sell a home for (we call this having "negative equity"). Rater than selling, many people look at renting their home "for a year or two" until they have more equity and can afford to sell. Generally, this idea doesn't work out like they planned... the rent doesn't come on time, the palce gets trashed (way more than the deposit will cover) and/or renters dissappear (leaving a vacant property with a mortgage still due... often trashed). What would have cost the Sellers a few thousand dollars (to sell & cover their negative equity) can end up costing tens of thousands (if not causing foreclosure). I don't generally reccommend turning your residence into your first rental property because it would be difficult to sell (maybe you need to stay put another year and save enough to sell). It can be done, but the pitfalls usually outweigh any potential benefits. If you do choose to take this path, have a real estate professional reccommend a good Property Management company. Being a landloard is a full-time, professional job and not for the inexperianced.

Ryan Cave, The "Caveman"
Truth, Honor & Personal Integrity
214-789-9366
www.CaveRealty.com

After a nice conversation with the very helpful Public Information Office for Allen ISD, I got some really good information. First, let me say that a final decision on school boundaries is not being made until January 21. Also, the board has scheduled meetings specifically to hear from those concerned about boundaries. The dates for those meetings are in early November; well before any final decision is made in January (see link below). Allen Residents might have heard about a meeting on October 22 at City hall at 7pm. There will be an opportunity to voice opinion here, HOWEVER this is just a regular board meeting and the school boundaries are not even on the agenda (nor have ideas for the new boundaries even been proposed yet). So, it will be difficult to voice an opinion with no idea if/how the new boundaries will affect anyone. The advice given by Tim Carroll of Allen ISD's Public Information Office was that Allen Residents wait to see what new boundaries are being proposed before they get too upset. Bottom line: Many of our elementary schools are becoming overcrowded as Allen grows. New schools are being built, and school boundaries may change, but nobody knows yet which, or how many, homes will be affected by this. The committee proposing new boundaries will not even have new boundary recommendations until Oct. 25th. By the 30th, these recommendations will be posted online for all to see. After that, they will have public meetings for comment on the issue. Read all the details about the meetings, boundaries, and enrollment numbers here:
http://www.allenisd.org/web/Attendance-Boundaries/boundary-index.html
Below is an email from Tim Carroll with the Public Information Office of Allen ISD. He was very nice and said that all residents should feel free to call him with questions. PLEASE DO NOT TAKE ANY FRUSTRATIONS OUT ON HIM. He is NOT on the committee making boundary decisions (he's just the messenger). The committee making the decisions can be reached at teamof8@allenisd.org and again, we cannot get too upset with anyone until we know what exactly they are proposing.

---from Tim Carroll with the Public Information Office of Allen ISD---

The Allen ISD Attendance Boundary Committee will complete its work on October 25 with recommendation(s) to adjust school boundaries beginning in 2008-2009. The committee's proposals will be posted at www.allenisd.org on October 30 and will then be presented at public hearings on November 1, 5, 12 and 13. Patrons are also welcome to submit comments by email to the teamof8@allenisd.org. The changes will be needed to help level out enrollments at high growth campuses and accommodate new elementary schools that will open in 2008 and 2009. Following the public hearings, a recommendation will be brought forward to the Board of Trustees for consideration. The Board will take public comment through December and is scheduled to take action on January 21. More information is available on the district website.

Tim Carroll, APR
Public Information Office
972-727-0510
FAX: 972-727-0500
Email: tim_carroll@allenisd.org
---

If you have questions or info. to share on this topic, call Ryan Cave, The "Caveman" at 214-789-9366 or go here to contact me: http://ryancave.yourkwagent.com/atj/user/ContactUsGetAction.do

Comparing sales data from September of 2006 to September of 2007 shows that the number of sales for Collin County is down by 200 (that's a lot) and the average days on market is slightly up (this may continue to increase). Both of these are indicative of our current market with higher inventory (more homes for sale) and tougher mortgage requirements (i.e. even though rates are still great, fewer people can now qualify). The good news: while much of the country is also seeing sales prices slump, Collin County remains flat at an average of $92/sq.ft.

Properties Sold in Collin County Sept. 2006: 1145
	Square Feet	Bedrooms	Full Baths	Half Baths	List Price	Sale Price	Price per Square Foot	Days on Market
Avg	2495	3	2	0	$236,503	$229,651	$92	62

Properties Sold in Collin County Sept. 2007: 945
	Square Feet	Bedrooms	Full Baths	Half Baths	List Price	Sale Price	Price per Square Foot	Days on Market
Avg	2580	3	2	0	$246,379	$237,705	$92	67

They used to be called "Home Warranties", now they're generally referred to as "Residential Service Contracts"... but what exactly are they and why the name change?
When a pre-owned home is bought & sold in Texas, often a "Home Warranty" or "Residential Service Contract" is put in place. These policies are generally an attempt to cover household items for one year from the date of home sale. The coverage varies from appliances (dishwasher, hot water heater, A/C, etc.) to plumbing stoppages, termites and more. The extent of the coverage, and quality of service, varies greatly with the company providing it and the particulars of the policy you choose. This leads me to why the name changed: Many felt that "Home Warranty" implied that everything was covered (like a new car or new home warranty). In fact, items that are deemed to have been improperly cared for or maintained are frequently not covered. An important note: This determination is often left up to the provider. This is why the name changed to "Residential Service Contract" and why some providers have begun to offer "No Fault" coverage (coverage for improperly maintained items or those items with previously unknown issues). Of course, such coverage is usually an upgrade or add-on to the basic coverage. Ultimately, a good real estate agent ought to know which companies his clients have spoken highly of and be able to share that with you (I know I keep track of this info.). A few examples of companies offering Residential Service Contracts (or RSCs) are www.AlliedHomeWarranty.com and www.EverythingResidential.com. For the complete list of companies licensed to do this type of business in Texas, you can go here: http://www.trec.state.tx.us/licenses/rsc_info.asp.

So who pays for this coverage, what does it cost and who does it cover?
Sometimes this coverage is paid for by the Buyers, more often the Sellers pay for at least basic coverage. The price for a RSC (basic coverage) usually runs between $300 and $400. Of course, this can vary widely (especially once you start adding on optional coverages (like for a pool or spa, termites or washer/dryer, etc.). So, if it generally covers the home only AFTER the sale, why would a Seller even consider paying for it? Well... Imaging that your home has been sold, and that the dishwasher breaks a week later. Not your problem, right? After all, you sold the home to someone else. Be careful... the Buyer may try to make a case that you knew about the faulty dishwasher and didn't tell them. Guess what's coming next? You guessed it, they want YOU to pay for the repair. While you might win in a court of law, wouldn't it be great if it never came to that? With a RSC in place, more often than not, the Buyers tend to call the provider, pay a small "Trade Call" or "Service Call" fee (generally $50-$60) and get the dishwasher fixed without ever bugging the Seller. Ultimately, you can see that the coverage or a Residential Service Contract can help protect both parties. Also, some companies offer "Seller Coverage" that covers the home while it is listed for sale. After all, who wants to deal with a costly repair on a home they are trying to get rid of?

In summary, I like to look at Residential Service Contracts (or "Home Warranties" for those stuck on that terminology) kind of like today's health insurance. It may not cover everything, but it's generally better than not having coverage. If nothing else, for a small co-pay (or that $50-$60 "Trade Call" fee) you can generally at least get the problem diagnosed and, just maybe, get it fixed all-together.

Ryan Cave, The "Caveman"
Truth, Honor & Personal Integrity
214-789-9366
www.CaveRealty.com

September 2007 sales for Lost Creek Ranch

*Note that the Sales Price often does not refelect Seller contributions. For example, the Sales Price may show $220,000 when, in actuality, the Seller contributed $7,500 towards Buyer closing costs; thus netting the Seller $212,500. I can research this and get more accurate information pertaining to specific homes like yours.

Call Ryan Cave, The "Caveman" for more details and property-specific adjustments at 214-789-9366.

Residential
RES	Pool		Living Areas	Stories			Map	Beds	Baths	Garage/CarPort/ Total Cov. Parking	Sales Price*
1							DA*/0460*/Z	3	2	2/0/2	$ 155,000
	Pl: N		#Lv: 1	Sto: 1			SqFt: 1,734	YrBlt: 2002		Original List Price:	$159,900
2							DA*/0460*/V	3	2	2/0/2	$ 168,000
	Pl: N		#Lv: 1	Sto: 1			SqFt: 1,843	YrBlt: 2002		Original List Price:	$169,900
3							DA*/0461*/Z	3	2	2/0/2	$ 175,000
	Pl: N		#Lv: 1	Sto: 1			SqFt: 1,890	YrBlt: 2003		Original List Price:	$174,900
4							DA*/0460*/V	3	2.1	2/0/2	$ 196,000
	Pl: N		#Lv: 2	Sto: 1			SqFt: 2,486	YrBlt: 2001		Original List Price:	$205,000
5							DA*/0460*/V	4	3	2/0/2	$ 220,000
	Pl: N		#Lv: 2	Sto: 2			SqFt: 2,818	YrBlt: 2005		Original List Price:	$215,500
6							DA*/0460*/V	4	2	2/0/2	$ 214,000
	Pl: N		#Lv: 1	Sto: 1			SqFt: 2,509	YrBlt: 2003		Original List Price:	$249,800
7							DA/0461/S	4	2.1	2/0/2	$ 232,000
	Pl: N		#Lv: 2	Sto: 2			SqFt: 2,953	YrBlt: 2003		Original List Price:	$239,900
8							CG/0461*/S	4	2	2/0/2	$ 160,000
	Pl: N		#Lv: 2	Sto: 1			SqFt: 1,987	YrBlt: 2001		Original List Price:	$180,900

Prepared By: Ryan Cave / Keller Williams Realty Allen

----- Information herein deemed reliable but not guaranteed. -----.

I just got another contract on a listing of mine. It's always a good feeling when you're helping a Seller towards their goal. Now the Option Period has begun and the Buyer will most likely have the home inspected and notify us of any repairs which they feel are necessary. The seller and I will then have the opportunity to decide if we agree that these repairs are necessary (i.e. almost any Buyer would want these items repaired) or if we feel that the Buyer is being picky (they are, after all, buying a pre-owned home).

Generally, repairs can be handled in two ways (it is up to Buyer and Seller to decide which they choose/approve of): 1) The Seller can have the items repaired prior to closing (by a licensed contractor for those items that require licensing like plumbing, electrical, etc.) or 2) Cash (generally from the Seller's equity) can be applied towards the buyer's closing costs (or off of the sales price) in lieu of said repairs. Personally, I prefer option #2 as it helps insure that the Buyer gets to pick who does the work and the Seller is not blamed if the work is not satisfactory. Of course, then the debate is how much cash do you give or how much will the repairs cost? I always tell my Buyers that if you let the Sellers do the repairs themselves, they will generally hire the cheapest contractor they can find (or do the repairs themselves if a license is not required). So, if a Buyer thinks a repair will cost $500, and the Seller gets a quote for $250, you can either choose to have their contractor do the work, or take the $250 and apply it towards the contractor of your choosing. It's generally difficult to get more if the Seller has a written quote for less (i.e. why would they give you more than $250 if they have a guy who will do the work for that amount). Ultimately, many repairs are a matter of opinion. Some Sellers fell that, if they have accepted a price that is less than they wanted, few (if any) repairs should be done. Conversely, if Buyers don't feel that they are getting a "steal of a deal" (or if there are plenty of other homes to choose from) they often want every little detail fixed. The truth generally lies somewhere in the middle. I always say that major items (i.e. the roof, A/C, disposal & dishwasher) need to be in good working condition unless the property was advertised and priced for an "as-is" condition. However, every light bulb will not be new, a fan may wobble slightly, and there may be a small hole in the wall where the doorknob hit it (if you want a new home, go buy one... pre-owned homes are not perfect). Ultimately, the goal is to get major repairs addressed so that the Buyer can feel confident moving in, and the Seller can feel that they did what was necessary to sell their home.