July 2023 July 10, 2023

Market Trends – July 2023 Update

         

Overall, our local markets continue to experience low inventory which is helping to keep prices relatively stable.  We are in the full swing of the summer market and even with rising interest rates, we have seen prices remain stable or increase.  Due to the low inventory we are seeing the return of multiple offers.  Interest rates are fluctuating from the mid 6s to low 7s.  Inflation and interest rate hikes will continue to affect our market.  Another bit of good news is that home value appreciation over the past 3 years has remained strong, so if you’ve owned your home for a few years or more you are in a very good position to sell.  Predictions are that when interest rates begin to fall we will see a much bigger increase in inventory which could have an effect on pricing.

In both the North & West Valley, we have seen appreciation of over 30% when looking at prices 3 years ago.   These are enormous gains in value!!  In the west valley we also saw a slight increase in month over month prices. While each neighborhood may be different, this is an important perspective to keep in mind if you are considering selling.  Not just to see the gains you have made, but also where the reality of an appropriate list price will be.

If homes are priced properly, they will have a better chance at spending less time on the market.  As I’ve discussed previously, the rise in interest rates and continued inflation are caused a lot of changes in our market and affect the buying power of those looking to purchase, but both buyers and seller have settled in to this new market and continuing to move forward.  Ultimately, when it comes to price, it will always come down to condition, area sales and what others are willing to pay for the same house.  If you are interested in learning more about your options or to discuss this in more detail, please feel free to call or email.

June 2023 June 2, 2023

Home Insurance – State Farm and Allstate Announce Changes

Insurance Options are Changing

 

State Farm and Allstate have announced they will no longer sell new home insurance policies in California because of wildfire risks and an increase in construction costs. Here are some facts:

  1. State Farm and Allstate are not leaving the California Insurance Market:  State Farm and Allstate will continue to service and renew policies of existing clients in the state and will continue to offer new auto insurance policies. However, they will not be issuing any new property insurance policies for the time being in California.
  2. What are the implications of the decision for prospective homebuyers?  In certain high-risk areas of the state, there are very few insurance companies willing to write new policies. In some higher risk areas, State Farm was the last private insurance company writing policies. In those areas, unless the Insurance Commissioner is successful in its effort to get more private insurers to write policies in such areas, the generally more-costly California FAIR plan may end up being the only property insurance available.
  3. Why did State Farm and Allstate stop issuing new policies?  State Farm stated that it made the decision “due to historic increases in construction costs outpacing inflation, rapidly growing catastrophe exposure, and a challenging reinsurance market.” Allstate said the company “paused” its offerings “so they can continue to protect current customers.” State Farm and Allstate’s decision is not necessarily an indication of what other companies will do.
  4. Will more companies follow State Farm and Allstate’s move?  There are still a wide range of companies writing policies in California. However, those willing to write new policies in higher risk areas in particular are declining and as stated above, with the departure of State Farm and Allstate, those in more high-risk areas may have no option than the FAIR plan.
  5. What are the main problems for the insurance market in California?  The California market is heavily regulated and has various strict requirements for rate increases, which were put into place by Proposition 103 in 1988. However, there are two areas where possible changes could result in a better climate for insurance without requiring major changes to consumer-friendly rate increase requirements. Those include allowing insurance companies to have rates that better reflect their reinsurance costs and allowing insurance companies to utilize forward looking risk models. Current law only allows companies to look back when setting rates. However, given the issues with climate change, many insurance companies argue that looking backward does not allow companies to adequately capture risk.
  6. Where can I we go for information if you are looking for homeowners insurance?  The California Dept. of Insurance provides several information guides, tips and tools to help them understand home/residential insurance so that they can make the best decision for their situation. They can also call the California Dept. of Insurance Consumer Hotline for assistance.
  7. What is California Association of Realtors (C.A.R.) doing? C.A.R. has been in discussions with both the Insurance Industry representatives and the Department of Insurance on State Farm and Allstate’s move and other homeowner insurance issues. The Insurance Industry and the Department of Insurance have also been looking at and discussing ways to address the state’s insurance challenges. The issue is large and complicated. We have  cautious hope that these moves may create some greater urgency on how to address this insurance situation.

Source – California Association of Realtors

June 2023May 2023 June 2, 2023

Market Trends – June 2023 Update

 

Overall, our local markets continue to experience low inventory which is helping to keep prices relatively stable.  As we enter the summer market, we are hopeful that inventory will improve as this is the time more buyers are looking to move.  Due to the low inventory we are seeing the return of multiple offers which is leading to stable prices.  Interest rates are fluctuating from the mid 6s to low 7s.  Inflation and interest rate hikes will continue to affect our market.  Another bit of good news is that home value appreciation over the past 3 years has remained strong, so if you’ve owned your home for a few years or more you are in a very good position to sell.

In both the North & West Valley, we have seen appreciation of over 30% when looking at prices 3 years ago.   These are enormous gains in value!!  While each neighborhood may be different, this is an important perspective to keep in mind if you are considering selling.  Not just to see the gains you have made, but also where the reality of an appropriate list price will be.

If homes are priced properly, they will have a better chance at spending less time on the market.  As I’ve discussed previously, the rise in interest rates and continued inflation are caused a lot of changes in our market and affect the buying power of those looking to purchase, but both buyers and seller have settled in to this new market and continuing to move forward.  Ultimately, when it comes to price, it will always come down to condition, area sales and what others are willing to pay for the same house.  If you are interested in learning more about your options or to discuss this in more detail, please feel free to call or email.

May 2023 May 2, 2023

Spring Home Maintenance

Spring Home Maintenance Checklist

As winter ends, give your home a complete physical—inside and out—to ready it for those warm-weather months ahead.

Exterior Inspection

“It’s good to do a walk-around of your property, especially after a storm,” says Curtis S. Niles, Sr., owner of Armored Home Inspections, Upper Darby, PA, and president of the National Association of Home Inspectors (NAHI). “Winter is tough on roofs and chimneys.” It can also take its toll on windows, walls, foundations, gutters and decks.

Roof: simply getting on a ladder and using binoculars you can spot issues.  Look for shingle-shift, cracked or missing shingles and nail-pops.  Nail pops are when nails push the tabs of the shingles up, allowing water to get in where those nails are coming through.  All will need to be addressed to keep your roof at peak performance.

Chimney: If you have a masonry chimney- check the joints between bricks/stones – have any fallen out?  Look for efflorescence, a white calcium-like deposit that indicates your masonry joints are no longer repelling water but absorbing it.  If that is the case consider re-sealing with a clear, impermeable or water resistant barrier.

Exterior Walls: Whether you have wood siding, stucco or brick, look for trouble spots, especially under eaves and near gutter downspouts. Water stains normally indicate that your gutters are not adequately containing roof runoff.

Foundation: When inspecting the exterior of your home, be sure to examine the foundation from top to bottom for masonry cracks. “Routine caulking by homeowners won’t do the job,” says Niles. “Hire a foundation specialist who can employ a two-part epoxy injection system that will bond cracks chemically,” he adds.

Windows: Leakage around windows will admit warm summer air and let cooled indoor air escape, so be sure to check that any caulking and weather stripping you have in place has remained intact. “A tight seal is the first line of defense against air and water,” says Marty Davis, marketing manager, Simonton Windows, Columbus, OH. If you experienced condensation inside the glass on double- or triple-glazed windows during the winter months, the weather seal has been compromised, and either the glass or the window will need to be replaced.

  • Spring-clean your windows—inside and out—with a store-bought or homemade window cleaner (one cup rubbing alcohol, one cup water and a tablespoon of white wine vinegar will work just fine) and either a squeegee or a soft cloth. Never use abrasive cleaners or a high-pressure spray washer. You don’t want to scratch the glass or crack the caulking around each unit. If screens were on all winter, remove and clean them with mild detergent. Lay them on a dry surface, like a driveway to air-dry before putting them back on. “Never power-wash screens,” urges Davis, “it could damage the mesh.”

Interior Maintenance

General Cleaning: Spring is a good time to clean areas of the house that often go neglected. Dust or vacuum chair rails, window casings, tops of wall-mounted cabinets and ceiling fans. Launder or dry-clean fabric draperies and use a damp cloth to clean wood and vinyl blinds. Vacuum upholstered furniture and mattresses and consider renting a carpet cleaner—anything you can do to remove settled dust, mites, and allergens will make for a cleaner, and healthier, home.

If you detect grease residue in the kitchen, consider washing cabinets, backsplashes and walls with warm water and mild detergent. The same is true in the bathroom, where soap residue and fluctuations in heat and humidity combine to create the perfect breeding ground for mold and mildew. While you’re cleaning tile, look for areas of worn or missing grout, as these may lead to more serious water damage if not repaired.

Air Conditioning: Just as you readied your furnace for fall, now is the time to make sure that air conditioning units are in good working order for the warmer months ahead. Change the filter, check hose connections for leaks, and make sure the drain pans are draining freely. In addition, vacuum any dust that has settled on the unit and connections; over time it can impact the air conditioner’s effectiveness. If you suspected problems with the efficiency or performance of the unit last summer, now is the time to call in a professional to check it out.

Attic: Search for signs that indicate insects and critters have colonized. Also, search aggressively for mold, which often takes the form of “gray or black blotches that look like staining,” according to Tim Gentry, vice president of technical services, DaVinci Roofscapes, Kansas City, KS. Proper insulation and good ventilation will deter mold growth in the attic, so take action now to prevent the problem from developing in the warmer months ahead.

Leaks: Spring is a good time to check for leaky faucets, clogged drains, and sweaty pipes. Check under the kitchen and bathroom sink to make sure connections on pipes and hoses are properly sealed, and look for any wetness around the dishwasher that could signal an existing or potential problem. The same is true of your laundry room; check washer machine hoses for cracks, bulges or dampness. The same is true for hot water heaters, which may show sign of corrosion and leaks.

 

Outdoor Maintenance

Lawn: Rake the lawn to remove any branches, debris and leaves that you might have missed; if left, they can suffocate the grass beneath. During the winter, soil compaction, along with chemical changes altering your soil’s PH, may have left your lawn vulnerable to weed growth and other issues. Even if you can’t see weeds, they are more than likely waiting for optimum conditions to propagate. If you want to prevent them from germinating, consider an organic herbicide; fertilizers are better suited to the fall.

Make sure outdoor water systems—pipes, faucets, and in-ground sprinkler systems—are in working order. Start preparing new garden beds for summer plants. And take stock of your garden tools and lawn-maintenance equipment, including lawn mowers, trimmers and hoses.

Decks and Patios: Look for warped, loose or splintered boards, and do a good sweep to remove any leaves and debris accumulated in the space between boards. “Whether it’s wood, plastic or composite, a deck should be cleaned every year to extend its life,” says Chuck Harris, owner, Custom Lumber Manufacturing Co., Dothan, AL. If the finish on your wood deck is faded or worn, now is the time to clean, stain, and reseal it. If you have composite decking, follow manufacturers’ recommendations on seasonal care. The same is true for wood and composite fences, pergolas, trellises and other structures. If you have a stone patio, a simple hose down provide be all the maintenance required (unless you detect moss or staining, in which case a more serious cleaning may be necessary).

Outdoor Furniture: If you stored your lawn furniture for the winter, bring it outdoors and give it a hose rinse, or wash it with a mild detergent. For metal furniture, check for signs of rust or paint erosion; a simple remedy of spray enamel will prevent further damage from sun, rain and humidity in the months ahead.

Grills: If your gas grill has remained idle over the winter months, check burner jets for clogs and obstructions, and be sure that gas hoses and connections are sound and secure. You’ll also want to check for propane. For charcoal grill owners, make certain your grill is clean of ash and free of grease residue. It’s a good habit to adopt throughout the grilling season, not just in the spring.

 

Source: www.BobVila.com – By Merv Kaufman and Bob Vila | Updated Apr 25, 2023 3:06 PM

May 2023 May 2, 2023

Market Trends – May 2023 Update

Overall, our local markets continue to experience low inventory which is helping to keep prices relatively stable.  As we enter the spring market, we are hopeful that inventory will improve as this is the time more buyers are looking to move.  Due to the low inventory we are seeing the return of multiple offers which is leading to stable prices.  Interest rates are remaining in the mid 6s, but continue to fluctuate.  Inflation and interest rate hikes will continue to affect our market.  Another bit of good news is that home value appreciation over the past 3 years has remained strong, so if you’ve owned your home for a few years or more you are in a very good position to sell.

In both the North & West Valley, we have seen appreciation of over 35% when looking at prices 3 years ago.   These are enormous gains in value!!  While each neighborhood may be different, this is an important perspective to keep in mind if you are considering selling.  Not just to see the gains you have made, but also where the reality of an appropriate list price will be.

If homes are priced properly, they will have a better chance at spending less time on the market.  As I’ve discussed previously, the rise in interest rates and continued inflation are caused a lot of changes in our market and affect the buying power of those looking to purchase, but both buyers and seller have settled in to this new market and continuing to move forward.  Ultimately, when it comes to price, it will always come down to condition, area sales and what others are willing to pay for the same house.  If you are interested in learning more about your options or to discuss this in more detail, please feel free to call or email.

March 2023 February 27, 2023

10 Easy Steps to Planting a Garden

10 Easy Steps to Planting A Garden

Planting a garden – whether it is vegetables or flowers – can be very rewarding.  There are so many benefits from being outdoors and getting your hands a bit dirty.  If you’ve never planted a garden or it has been a while, it is best to break it down into multiple steps and then you can start tackling those as you have time.  Your efforts can be rewarded for months to come.  From as simple as seeing beautiful colorful landscape to eating delicious fruits and vegetables for months to come. These steps will help you get started from scratch, but if you have something particular in mind, you could also use a garden plan to guide your design.

1. Consider What to Plant

Do you want to plant a vegetable garden? An herb garden? A flower garden? If you choose vegetables and herbs for their contributions to your dinner table, plant ones your family will eat or be willing to try. If you want flowers for their flair, color, and fragrance, decide whether you want annuals that bloom most of the summer but need to be replanted each spring or perennials that have a shorter bloom time but return year after year. Each one, or even a combination, makes a stunning garden but will have different maintenance requirements. One bit of advice: Start small until you know what you’re getting into.

2. Pick the Best Garden Spot

Almost all vegetables and many types of flowering plants need 6-8 hours of full sun each day. So, you need to observe your yard throughout the day to figure out which spots receive full sun versus partial or full shade. Don’t worry if your yard is mostly shady: You won’t be able to grow tomatoes in shade, but many other plants (such as hostas and outdoor ferns) will do just fine. Check plant tags or ask the staff at your local garden center to help you understand how much sun a plant needs.

If possible, pick a relatively flat spot for your garden because it’s more difficult, time-consuming, and potentially expensive to deal with a sloping garden. And make sure your new garden will have easy access to a water source.

3. Clear the Ground

Get rid of weeds and sod in the area you plan to plant. If you want quick results—for example, if it’s already spring and you want veggies this summer—cut it out. Slice under the sod with a spade. Cut the sod into sections to make it easier to remove, then put it on your compost pile to decompose. For a longer-term project, it’s easier to use the lasagna gardening method: Cover your future garden with five sheets of newspaper; double that amount if your lawn is Bermuda grass or St. Augustine grass. Spread a 3-inch layer of compost (or combination of potting soil and topsoil) on the newspaper and wait. It’ll take about four months for the compost and paper to decompose. But if you start in the fall, by spring you’ll have a bed ready to plant with no grass or weeds and plenty of rich soil.

4. Improve Your Soil

Residential soil almost always needs a boost, especially in new construction where the topsoil may have been stripped away. In addition to being low in essential plant nutrients, your soil may also have poor drainage or be compacted. The solution is usually simple: Add organic matter. Add a 2- to 3-inch layer of compost, decayed leaves, dry grass clippings, or old manure to the soil when you dig or till a new bed. If you decide not to dig or are working with an established bed, leave the organic matter on the surface where it will eventually rot into humus (organic material). Earthworms will do most of the work of mixing humus in with the subsoil.

5. Prepare Your Planting Beds

Loosening the soil in new beds before sowing or planting helps roots to grow more easily and access the water and nutrients they need. There are two methods: tilling with a mechanical device such as a rototiller or digging by hand. The first one is a good method when you need to mix in large amounts of amendments. However, it’s easy to overdo it, which will end up damaging soil structure. Digging is more practical for preparing small beds.

Either way, work the soil only when it’s moist enough to form a loose ball in your fist but dry enough to fall apart when you drop it. Digging when the soil is too dry is harder work, and you can damage the soil structure if it’s too wet. Use a spade or spading fork to gently turn the top 6-8 inches of soil, mixing in the organic matter from Step 4 at the same time. Walking on prepared beds compacts the soil, so lay down plywood boards temporarily to evenly distribute your weight.

6. Pick Your Plants

Some people pore over catalogs for months; others head to the garden center and buy what wows them. Either method works as long as you choose plants adapted to your climate, soil, and sunlight. In the Los Angeles area, most of us are in zone 9 & 10.  There are also subsets within each zone due to variations in locations…are you in the valley or near the ocean.  These small differences in location can affect how, when and what you plant.  You can even surf the Internet for plants to purchase. Here are a few easy-to-grow plants for beginners:

  • Annuals: Calendula, cosmos, geraniums, impatiens, marigolds, sunflowers, and zinnias
  • Perennials: Black-eyed Susans, daylilies, lamb’s ears, pansies, phlox, purple coneflowers, and Russian sage
  • Vegetables: Cucumbers, lettuce, peppers, and tomatoes
  • Herbs:  Parsley, Mint, Basil, Oregano

7. Start Planting

Some plants, such as pansies and kale, tolerate cold, so you can plant them in autumn or late winter. Tomatoes and most annual flowers, on the other hand, prefer warm temperatures, so don’t plant them until the danger of frost has passed in your area. Mid spring and mid autumn are good times to plant perennials.

Many annuals are easy to grow from seed sown directly in the garden. Be sure to read the seed packet for information about planting time, depth, and spacing. If you’re an adventurous beginner, get a head start on the growing season by sowing seeds indoors a few weeks before the last frost date. There are containers or flats designed especially for seedlings and seed-starting soil mixes available at garden centers. Follow seed packet instructions and place the containers on a sunny windowsill or under grow lights if you don’t have window space. Be sure to keep the seeds and seedlings moist but not wet, or they may rot.

An easier method of starting your garden is to buy young plants, called set plants or transplants. Dig holes in your prepared bed based on tag instructions. Remove plants from the container by pushing up from the bottom. If the roots have grown into a big ball (known as being root-bound), use an old fork or your fingers to untangle some outer roots before setting it into the hole. Pat soil into place around the roots, then soak the soil with water.

 

8. Water at the Right Time

Seedlings should never be allowed to dry out, so water daily. Taper off as the plants get larger. Transplants also need frequent watering (every other day or so) until their roots become established. After that, how often you need to water depends on your soil, humidity, and rainfall, though 2-3 times per week is a good place to start. Clay soil dries out more slowly than sandy soil, so you won’t need to water it as often. Sunny, windy conditions dry out soil more quickly than cool, cloudy weather. Still not sure? Feel the soil 3-4 inches below the surface. If it feels dry, it’s time to water. Water slowly and deeply, so the water soaks in instead of running off. To minimize evaporation, water in the early morning.

9. Protect Your Garden With Mulch

To help keep weeds out and moisture in, cover the soil with a couple of inches of mulch. You won’t have to water as often, and by preventing sunlight from hitting the soil, you’ll prevent weed seeds from germinating. Choose from a wide variety of mulches, each with its own benefits, including shredded bark, straw, and river rock. If you use organic mulch, such as bark, compost, or cocoa bean shells (which smell good, by the way), it will nourish the soil as it decomposes. For a vegetable garden or bed of annuals, choose a mulch that decomposes in a few months. For perennials, use a longer-lasting mulch such as bark chips.

10. Maintain Your Garden Regularly

As your garden begins to grow, help it reach its full potential by keeping up with garden chores. Water the plants before they wilt. Pull weeds before they go to seed. Get rid of dead, dying, and diseased vegetation. Banish destructive insects (such as tomato hornworms) by picking them off the plant and dropping them into a bucket of sudsy water, hosing them off, or spraying on an insecticidal soap purchased at a garden center. Support tall plants (such as tomatoes) with a trellis, stake, or a tepee. Also, harvest vegetables as soon as they’re ready. And remember to stop and smell the…well, whatever it is you’re growing.

*source – Better Homes & Garden, by Andrea Beck

 

 

March 2023 February 27, 2023

Market Trends – March 2023 Update

 

Overall, our local markets continue to experience low inventory which is helping to keep prices relatively stable.  As we enter the spring market, we are hopeful that inventory will improve as this is the time more buyers are looking to move.  Interest rates dipped the beginning of February which helped spur buyers to snap up the available homes.  We have been seeing that updated well priced homes are in demand and have seen multiple offers.  Prices have settled and may continue to remain flat or decrease.  Inflation and interest rate hikes will continue to affect our market.  At of the beginning of March, interest rates are climbing again and are in the upper 6’s to low 7’s.  The good news is that we are settling into this new market and whether you are a buyer or seller everyone has adjusted their expectations to the changes.  Another bit of good news is that home value appreciation over the past 3 years has remained strong, so if you’ve owned your home for a few years or more you are in a very good position to sell.

In both the North & West Valley, we have seen appreciation of over 25% when looking at prices 3 years ago.   These are enormous gains in value!!  While each neighborhood may be different, this is an important perspective to keep in mind if you are considering selling.  Not just to see the gains you have made, but also where the reality of an appropriate list price will be.

If homes are priced properly, they will have a better chance at spending less time on the market.  As I’ve discussed previously, the rise in interest rates and continued inflation are causing changes in our market and affect the buying power of those looking to purchase.  Ultimately, when it comes to price, it will always come down to condition, area sales and what others are willing to pay for the same house.  If you are interested in learning more about your options or to discuss this in more detail, please feel free to call or email.

February February 1, 2023

Market Trends – February 2023 Update

 

We have our first bit of data from 2023 and as expected we continue to see a slowing in the number of sold homes when compared with last year, yet inventory remains low.  Prices have settled and may continue to remain flat or decrease.  Inflation and interest rate hikes will continue to affect our market.  As of the beginning of February, interest rates are coming down a bit and are just above 6%.  The good news is that we are settling into this new market and whether you are a buyer or seller everyone has adjusted their expectations to the changes.  Another bit of good news is that home value appreciation over the past 3 years remains strong, so if you’ve owned your home for a few years or more you are in a very good position to sell.

In both the North & West Valley, we have seen a 31% increase from 3 years ago.   These are  enormous gains in value!!  While each neighborhood may be different, this is an important perspective to keep in mind if you are considering selling.  Not just to see the gains you have made, but also where the reality of an appropriate list price will be.

If homes are priced properly, they will have a better chance at spending less time on the market.  As I’ve discussed previously, the rise in interest rates and continued inflation are causing changes in our market and affect the buying power of those looking to purchase.  Ultimately, when it comes to price, it will always come down to condition, area sales and what others are willing to pay for the same house.  If you are interested in learning more about your options or to discuss this in more detail, please feel free to call or email.

February January 31, 2023

Hiring A Contractor

Hiring a Contractor

You’ve decided to tackle a project around the house and are ready to move forward.  Now you need to find the right contractor for the job.  Here are some tips on choosing the right contractor.

1. Get Recommendations

You can look to sites such as Angi’s List, but be prepared for many phone calls.  These websites will have you answer questions and then send off your information to contractors that match your needs.  This can be a very efficient way to speak with multiple contractors, however it may not be the best option.  Speak with friends and family, neighbors, look for referrals on websites such and Nextdoor.com or ask your local Realtor®.

2.  Do Phone Interviews

Once you have a list of recommendations, make a quick call to each one and ask specific questions to each contractor.  The answers will help you determine the company’s availability, reliability and how much attention they will give to your project.  Some examples are:

  • Do they take on projects of your size?
  • Are they willing to provide financial references, from suppliers/banks?
  • Can they give you a list of previous clients?
  • How many other projects would they have going on at the same time?
  • How long have they worked with their subcontractors?

3.  Meet Face to Face

Pick three or four contractors to meet for estimates and further discussion.  A contractor should be able to answer questions satisfactorily and in a way to put you at ease. Be sure you can communicate well with your contractor because you will be working together for hours at a time. Check in with the state’s consumer protection agency to be sure they don’t have a history of disputes with clients or subcontractors.  Yelp and Google reviews are also helpful but be aware that anyone can write a review on those sites.

4.  Investigate the Facts

Call up former clients to find out how their project went and ask to see the finished product.  Visit current job sites and see for yourself how the contractor works.  Is the job site neat and safe? Are workers courteous and careful with the homeowner’s property?

5.  Make Plans, Get Bids

Now that you’ve narrowed down the list it’s time to start planning your project.  A good contractor will want not only a complete set of blueprints, but a sense of what the homeowners want out of a project.  To compare bids, ask everyone to break down the cost of materials, labor, profit margins and other expenses.  Generally materials account for 40 percent of the total cost; the rest covers overhead and the typical profit margin, which is 15-20 percent.

6.  Set a Payment Schedule

It is very important to work out a payment schedule ahead of time.  Payment schedules can speak to a contractor’s financial status and work ethic.  If they want half the bid up front, they may have financial problems or be worried that you won’t pay the rest after you’ve seen the work.  For large projects, a schedule usually starts with 10% at contract signing, three payments of 25 percent evenly spaced over the duration of the project and a check for the final 15 percent when you feel every item has been completed.

7.  Don’t Let Price Be Your Guide

Some say to “throw out the lowball bid” – this contractor may be cutting corners or worse, desperate for work.  Beyond technical competence, comfort should play an equal or greater role in your decision.  The most important factor in choosing a contractor is how well you and he communicate.  All things being equal, it’s better to spend more and get someone you’re comfortable with when hiring a contractor.

8.  Put it in Writing

Draw up a contract that details every step of the project: payment schedule; proof of liability insurance and worker’s compensation payments; a start date and projected completion date; specific materials and products to be used and deadlines for any decisions on materials/options being used in the project.  Insisting on a clear contract lessens the possibility of misunderstandings throughout the project.

 

*source – thisoldhouse.com

January January 6, 2023

Resolution Time

RESOLUTION TIME

It’s never too late to make a resolution. We can do it any time of year, but the new year just lends itself to setting goals for the next 12 months.  It’s a great idea to write down your resolutions and refer to them every few weeks, this helps to keep yourself accountable.  Also, don’t just set a resolution, but include an action plan to achieve it.  It is helpful to set small goals along the way.  Look at last year’s goals and see where you were successful and where you have room for improvement.  Some goals take longer than a year to accomplish or they may need adjustments along the way.  Here are a few ideas for homeowners, sellers and those looking to purchase their first home:

Homeowner:

  • Insurance – run an assessment of current policies: home/auto/life.  Maybe you need to increase it or add an umbrella or jewelry policy?  Speak to your insurance provider to see if there are discounts available or maybe shop it around for better rate.
  • Mortgage – be sure you’re paying it on time and look to add an extra payment
  • House Maintenance/Improvements – check furnace filter monthly, organize that junk drawer(s), look around for areas that could you a good cleaning (baseboards, ceiling fans, refrigerator(s), shower heads, etc), check your smoke & carbon monoxide detectors maybe they could use an upgrade.  Pick an improvement project to complete this year.
  • Emergency Kit – always a good idea to be prepared at home and in the car for an emergency.  Things like flashlights, water, chargers, medications, food etc.

 

Home Seller:

  • Contact Trusted Realtor – Contact me for a market evaluation and to discuss your selling plan.
  • Prepare House – What will you need to do to get your home ready?  The market is not as hot as it once was, so we will need to be sure your home stands out.
  • Move Date/Location – When are where do you want to move?  Are you leaving the area?  Will you be renting?  We can work out a plan to help you get to your goal/dream home!

 

First Time Home Buyer:

  • Save – I know this one is obvious but assessing your budget monthly and looking for ways to put aside more money is key.
  • Reduce Debt – as part of your budget planning look at ways to pay off debt and keep it paid off.
  • Improve Credit Rating – credit score is important and change every month.  Be aware of your score and what you can do to improve it.
  • Lender Pre-approval – speak with a lender to see what you qualify for and at what interest rate.  Do you need to reduce your Debt-to-Income score (DTI), improve credit score, etc.  A lender will be able to guide you with different programs and what you need to do next.
  • Budget Planning – again it comes down to planning your budget for when you move into your new home.  What will the utility costs look like…. Property taxes, insurance, house maintenance, etc.
  • Avoid Large Purchases – these can affect your DTI, credit score etc.  If you are close to purchasing a new home, hold off until after you close escrow.