One of the costs of owning a home that buyers need to consider in their budgeting is the cost of insuring the home. A standard policy will cover exterior and interior damage from incidents like vandalism, fire, wind and lightning. It also covers loss of use expenses, damage to structures like sheds or gazebos, and liability and medical costs if someone is injured on your property.

Common exclusions are flood, hurricane and earthquake damage, but you may be able to buy additional coverage for these if desired or required.

Policies vary widely, but in general, homeowners insurance covers the following areas:

Your Structure – Your home itself is protected against damage from fire, wind, smoke, lightning, theft, vandalism and just about anything else that isn’t specifically excluded.

Your Possessions — Your belongings are also covered under your homeowners policy, including losses that happen away from home, for example, if your camera is stolen while on vacation. Keep an inventory everything you own so any claims can be handled accurately and efficiently. Write down serial numbers as well as the date of purchase and original cost of the items, or document on video. Keep the inventory in a fireproof safe or somewhere outside your home, where it can be accessed if your home should be destroyed.

Liability — This aspect of your homeowner’s insurance protects you against lawsuits arising from damage you, your family members or your pets may cause to other people. Liability coverage would pay not only for the actual damage, but also for the cost of defending you in court and for any court-ordered damage payments.

Replacement Cost Coverage – Your insurance would pay what it costs to replace the property with an identical or similar item. For example, if a bicycle was stolen from your garage, your insurance would pay to replace it with a new bicycle of the same or similar make and model (less your deductible).

Actual Cash Value – Your insurance would pay what it costs to replace the property with an identical or similar item, once that item has been devalued for deprecation. To continue the example above, instead of paying for a new bicycle, your insurance would give you the cash value of a used bicycle of the same make and model that was stolen (less your deductible).

Extended Replacement Cost — This type of coverage applies only to the structure of your home. Even though it has the word “replacement” in the name, you’re covered only up to set limits, which may not be enough to pay for the entire value of your home. If you want the assurance that the full replacement value of your home would be paid in the event of disaster, ask for “guaranteed replacement cost”.

If you’ve purchased a condo, or townhouse, ask your insurance agent about specific homeowner policies designed for these types of homes. You’ll want to purchase coverage above the association policy, but the additional coverage is usually very affordable.

Work with your insurance agent to determine how much and what type of coverage is right for your family and your new home. Be sure to ask what discounts may be available, such as rate reductions for smoke alarms, fire extinguishers, security systems and nonsmoking households.

After purchasing your homeowners insurance, make it a practice to review your coverage every year to be sure that it’s keeping up with increasing real estate values and any additions or improvements you may have made. Projects like building a porch or another bathroom can add significant value,  so you may need to adjust your policy if you’re planning to renovate your new home. Upgrades (like a new roof) can lead to discounts if they mitigate risks, but potentially hazardous features (like a pool) may require up to $500,000 in coverage.

It may seem costly, but protecting what’s likely the largest investment you’ll make in your lifetime is worth it – and peace of mind is priceless.

Filed under: Blog, Exclusive Buyer Agent, First Time Homebuyers, Home Buyer Advice, Home Buyers, Real Estate by Kim Bregman
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Moving into a new house is exciting, but the list of “to dos” can be overwhelming. You not only have to pack and prep the new house, but you have to tie up all the loose ends at the old place. Here are 10 tasks that are easily overlooked when moving into a new home – if you take care of these, you’ll have a leg up on moving day.

1. CHANGE THE EXTERIOR LOCKS: You really don’t know who else has keys to your home, so change the locks. That ensures you’re the only person who has access. Install new deadbolts yourself for as little as $10 per lock, or call a locksmith.

2. STEAM CLEAN CARPETS AND FLOORS: Do this before you move your furniture in, and your new home life will be off to a fresh start. You can pay a professional carpet cleaning service — you’ll pay about $50 per room; most services require a minimum of about $100 before they’ll come out — or you can rent a steam cleaner for about $30 per day and do the work yourself.

3. PAINT: It’s so much easier to paint an empty home than a full one. If you need to touch up paint, or want to change the wall color, do it before the moving trailer arrives with your furniture.

3. HAVE YOUR WINDOWS CLEANED INSIDE AND OUT: Your home will never be this empty again and it is the best time to start with a “clean slate”. Don’t forget the mirrors, baseboards, fans and windowsills while you are at it.

4. THOROUGHLY CLEAN ALL CABINETRY INSIDE AND OUT: Another no-brainer before you move in your dishes and bathroom supplies. Make sure to wipe inside and out, preferably with a non-toxic cleaner, and replace shelf and lining paper if necessary. Run a phantom load in the dishwasher and washing machine, clean out the oven if it needs it, and don’t forget the refrigerator and freezer. If possible, hire a cleaning service to help you get it all done. If you aren’t able to do the cleaning prior to unloading the moving van, hiring a cleaning service will be even more helpful.

 5.  INTRODUCE YOURSELF TO THE CIRCUIT BREAKER BOX AND MAIN WATER VALVE.

If the circuit box(s) are not already labeled, it’s a good idea to figure out which fuses control what parts of your house and label them accordingly. This will take two people: One to stand in the room where the power is supposed to go off, the other to trip the fuses and yell, “Did that work? How about now?”

You will also want to know how to turn off your main water valve if you have a plumbing emergency, if a hurricane or tornado is headed your way, or if you’re going out of town. Just locate the valve — it could be inside or outside your house — and turn the knob until it’s off. Test it by turning on any faucet in the house; no water should come out.

6. CHANGE ALL THE BATTERIES and CO2 IN YOUR SMOKE DETECTORS: No one will know when this was last done and it will be a good reminder that they need to be changed each your on the anniversary of purchasing your home.

7. GET A FRESH FIRE EXTINGUISHER FOR UNDER THE KITCHEN SINK and develop a family exit strategy in case of a fire. Rehearse this so that everyone is comfortable where all the new exits to the home are.

8. PROGRAM THE LOCAL POLICE AND FIRE DEPARTMENTS INTO YOUR PHONE.

9. INTRODUCE YOURSELF TO THE LOCAL MARKET: It’s a good idea to check out the local market and get a few staples. Between you, your family, the movers and any friends who are helping you, someone’s bound to get thirsty or hungry during the move. Why not be ready with a refrigerator full of cold beverages, sandwich supplies and other snacks? And don’t forget to grab some disposable plates, cups, and napkins, paper towels, trash bags and toilet paper while you’re at it.

10. DO SOME “YELPING” AROUND:Figure out what restaurants deliver because you are going to feel filthy and exhausted when moving day comes around.

Filed under: Blog, Home Buyer Advice, Home Buyers, Real Estate, Relocation by Kim Bregman
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ANY open permits and or code violations need to be fully addressed and resolved by the potential home buyer, prior to closing.  Failing to do so can be very costly for a homeowner.

Open permits remain with the property, despite any change in ownership.  Failure to uncover any open permits prior to closing means that these permits become the responsibility of the new owner.  Requirements to remedy an open permit can include fines, fees, and completion of pending work and removal of work that does not meet building requirements.  Open permits can be quite costly and time consuming.

Q. What is an open or expired permit?

 An open or expired permit is a permit which has been issued by a County or Municipal building department but has not been formally finalized in accordance with established guidelines, typically by means of a final inspection, within the time provided.  Once the time has lapsed for the permit to be closed by the issuing department it is referred to as open or expired.

Q. Why do I need an open permit search?

One of the biggest obstacles for home sellers these days is the issue of open permits.  Since many Counties have declared war on open permits, homeowners are finding themselves at the mercy of county inspectors when the time comes to close on the sale of their home.  Attorneys and title companies may recommend that buyers not close if a permit search reveals open permits

Q. Will title insurance cover open or expired permits?

A good title company or real estate closing attorney will take care of this for you but you have to ask for it because it normally is not done.  Title companies can close the sale on a property with an open permit on it, and most will never even conduct an open permit search; it’s not the same as a lien search.  You should order an Open Permit Search at the same time you schedule your inspection.

This is a service that I provide for my Buyers. I usually go to the Building Code department of the town or municipality where the home is located and pull the record on all permitted activity on the home.  If there is work that has been done that has not been permitted that is an issue that should be addressed by the home inspector.

Q. Will my closing agent check for open or expired permits?

Oftentimes the person selling the home or their listing agent has no idea about his or her own permit situation. They may have had some work done and their contractor told them everything was good to go and somewhere down the road they will find out that the permit is still open and if you are the new owner this is now your problem to deal with.  Sometimes work was done before the current owner bought the home and they have no idea anything could still be open.

The best way to protect yourself is to do an open permit search.  If you are selling your home it is a good idea to make sure your home has all of its permit issues in order because nothing can kill a deal faster than when a buyer finds out there are open permits  If you are the buyer, take care of it before you face a potential issue in the future.

Q. Who is responsible to close an open permit?

Open permits can be grounds for the title company to balk or the lender to renege on financing.  Uncovering open permits and closing them typically falls on the shoulders of the SELLER but may not be written in a standard contract. Every State or County’s standard contracts vary.  Make sure you understand the terms and conditions involving permits in whatever contract you are using. It often can be grounds for terminating a contract.

Q. Is it really that important? What is the worst that can happen?

If open and/or expired permits exist and are not closed prior to closing, these permits become the responsibility of the new homeowner. The new owner will be responsible for paying all fees and/or fines and will be forced to complete the pending work.  If the permit is not properly closed, the building department may be able to order the removal of the work on the property.

Q:  Found an open permit.  Now what?

If there are any open permits on your home the Building and Zoning Department can provide you with the name and contact information for whomever pulled the permits.  You can then contact the contractor to get the permit closed.

Q:  What if the contractor is no longer in business?

If your contractor is no longer in business, you have a couple of options:

You can close the permits yourself. This involves contacting the Building and Zoning Department; arranging for any missing inspections; following up with inspectors and the department to make sure that the permit is closed on the computer.  Or, you can contact a local permit expeditor to close the open permits for you.

Filed under: Blog, Home Buyer Advice, Home Buyers, House Closings, Real Estate by Kim Bregman
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Buying a home is probably the most important purchase you will ever make…  these ten tips will help you better understand what you can expect from contract to closing.

 1. Determine Your Needs

The process of purchasing a home can be especially daunting if you don’t take the time to determine your needs. A real estate professional will be able to best assist you if you are willing to answer a few important questions:

• What is your current lifestyle and how will that play into the neighborhood or community you choose? e.g. sports enthusiast that requires hiking trails within the neighborhood
• Size of home including bedrooms, bathrooms, and specialty rooms such as media or pool room.
• Style of home: Ranch vs. Two-Story and Tudor vs. Cape Cod
• Schools, Religious institutions, commute to work all influence the area you choose to focus on

2. Consider the Cost of Homeownership

There are various financial commitments to consider, most importantly how a new home will fit into your budget.

You need to ensure that you can afford the monthly mortgage payment, as well as any expenses including utilities, taxes, insurance, maintenance, and/or possible homeowner’s association fees.

3. Interview an Exclusive Buyer Agent
A Buyer’s Agent will share valuable and essential information with you, if known, such as:

• • The seller’s reason for selling and timetable
  • Length of time the home has been on the market
  • Previous offers and counter offers for the property
  • Strengths and weaknesses of the property
  • Determining an offer price based on past comparable sales
  • Locating suitable property not currently on the market

You owe it to yourself to be the most knowledgeable buyer you can be. You can ask a buyer’s agent for advice and assistance in setting your offering price and structuring the other terms of your offer. What’s more, you’ll have peace of mind knowing an advocate is working on your behalf to help you buy at the best possible terms. 

Ask for references and listen to what other people have to say about their experiences with a particular agent. Ultimately, you want to find someone that knows your area, has a good grasp on current market conditions and that you feel comfortable with.

4. Decide if You Will Build or Buy Resale

Are you going to buy an existing home or build something new? There are pros and cons to both, with each a reflection of your lifestyle and needs.

This calls for thorough research to identify which of the above is beneficial to you as an aspiring homeowner.

 5. Location, Location, Location

Location is one of the key factors to consider in any home purchase. Make sure that you buy a home in areas where the value of property is set to increase as opposed to those with low prices and high chances of stagnation.

 6. Understand Mortgage Options

Speak with a mortgage professional about your options and make sure to share details about your current financial situation, including your monthly budget for a new home. They will be able to offer guidance on which loan program will work best for you.

  7. The Benefits of a Home Inspection

A home inspector will inspect the home prior to purchase to examine for structural and safety issues. An inspection is not required, but a wise choice as it will determine if the home is structurally sound and wiring and pluming are up to code.

They will also check for safety hazards, including loose railings, rotted or damaged porch or entryway steps and broken windows.

 8. Get Everything in Writing

The best way to protect yourself is to ensure that every part of your transaction is captured in writing. An example of this would be repairs the seller agrees to make prior to closing.

Your real estate professional is there to make certain those repairs are added to an addendum which becomes a part of the purchase agreement. You do not want to have a casual conversation with the seller that could be left to interpretation when it comes to the largest purchase you will probably ever make.

9. Finalize the Purchase

To avoid problems at the closing table, make sure you have a clear understanding of what to expect. Go through your loan details one last time so there are no surprises when it comes to interest rate, loan amount or mortgage term.

There will be a substantial amount of paperwork to sign so give yourself plenty of time to adequately review the details.

10. Home Improvements

Your home is a valuable asset. Once you close, continue to put aside money on a monthly basis for any necessary repairs or maintenance.

It’s also important to note that certain upgrades may contribute to lower insurance premiums. This makes it important for you to stay in touch with your real estate professional. They can provide guidance on value boosting renovations.

Filed under: Blog, Exclusive Buyer Agent, Home Buyers, Home Financing, Real Estate by Kim Bregman
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