When you lump the exhaustive list of inspection items we perform into major categories you really come down to two reasons to hire a professional company:  SECURITY AND MAINTENANCE.  Everything we do during our regular visits to your home could be places into one of these two categories with just a few exceptions.  All our other customized services would go into a third category:  MAKING YOUR LIFE EASIER!

Security:

Homes where no apparent owner is in residence become prime targets for break-ins resulting in theft and vandalism.  One of our objectives is to make your home look lived in and to make sure that if there are security problems we will find them NOW.  Without frequent inspections these problems may not be found until you return next season.  Below are some of the items we cover in our normal inspections that would fall into the security category.

• Bring in mail. 

• Bring in trash receptacles if left out after your last visit.

• Check front of property for papers and door hangers.

• Sweep front entry and back patio to make home look occupied.

• Inspection of landscaping to see that plants are healthy, watered, and trimmed.

• Visual inspection of exterior of building walking entire perimeter checking windows, doors and sides of building for any potential problems.

• If lights or automatic timers are being left on we will check their status during inspections.

• Storm Damage Inspection:  We will check your home after severe storms for any damage. 

• Check smoke detectors

Maintenance:

HomeWatch of Arizona specializes in assisting homeowners in maintaining their homes and can ascertain both current problems and potential problems during their absence.  Visual inspections of the property may identify concerns before they become large, costly, complicated problems.  Making small repairs quickly may save thousands of dollars in the long run. Storm damage, leaking pipes causing water damage, broken windows, rodent or insect infestation, electrical outages affecting appliances such as freezers and refrigerators, all can cause damages and financial loss.  The longer the property is left unmonitored the larger the problems become.  There are also many items that should be performed periodically and not left for 6-8 months at a time.  This is harmful to many of the systems in your home and may cost you many times what a home inspection company will cost you.  Following are some of the items we cover in our normal inspections.

• Visual inspection of exterior of building walking entire perimeter checking windows, doors and sides of building for any potential problems.

• Visual inspection of roof, from ground.

• Check for signs of pest and insect infestation around the interior and exterior of home.

• Check for unusual odor problems both interior and exterior.

• Visual inspection of pool.

• Run water in all sinks, bathtubs and showers to keep traps from drying out and prevent sewer gases from entering your home.

• Flush and brush all toilets.

• Keep dishwasher and washing machine doors open for mold prevention.

• Check air conditioning/heating to make sure it is operating correctly.

• Check refrigerator to make sure it is operating correctly. 

• Run garbage disposal.

• Check ceilings and skylights for any signs of roof leaks.

• Check under kitchen, bathroom, wet bar and other sinks for leaks.

• Check laundry room for leaks and run water through drain.

• Reset irrigation boxes and automatic timers after power outages.

• Check hot water heater for any signs of leaks.

• Run washing machine to keep seals from drying out.

• Run dishwashe to keep seals from drying out.

• Change air filters.

• Start and run your car(s) 

Regular home visits by HomeWatch of Arizona will afford the PEACE OF MIND that homeowners enjoy, as if watching their home themselves.

HomeWatch of Arizona … MAKING YOUR LIFE EASIER!

No one likes a ditty house, and your what “lived in” is to you might be someone else’s “messy.” When in doubt, clean. It’s the least expensive way to improve your home’s initial appeal, and it’s a good way to get a jump-start on your move.

Basic: The first thing you need to do is de-clutter. If your moving company offers storage, this is the time to use it. Extra furniture, oddball art, pots and pans that don’t fit in the kitchen—it all needs to go. Don’t go overboard—your house should still look like a home. It just needs to be airy enough for a buyer to put his or her mental imprint on it. Your hackey sack collection from college won’t help. Next up is a good, solid scrubbing. Spend a weekend washing the floors, baseboards, and bathrooms. Be sure to get the tops of cabinets and corners behind furniture. Clean every piece of glass in the building. Too many people ruin a pristine home with spotty mirrors and doors. Don’t forget the outside of the house. Hose down your exterior walls and driveway, trim the lawn and hedges, and remove any trash cans and clutter from sight. If your neighbors are less-than-tidy, you might want to offer them some free help, as well. And while you’re cleaning the garage, wash your cars, too. They make an impression.

All-Out: If you have money to spend, install space-saving storage solutions in the garage, kitchen, and bathroom to reduce clutter. Consider paying a service to do the deep cleaning you’re bound to miss. Rent a pressure washer for the driveway or (if it’s a real mess and you’re feeling generous), repave.

Fix

Part of the joy of buying a new home is starting with a clean slate. No one wants to buy an existing to-do list of nagging little fix-its. Making small fixes now can put the buyer’s mind at ease.

Basic: Focus on inexpensive, highly-visible problems. Doorbells, window glass, cabinet handles, and holes in walls are all easy to spot and cheap to fix.

All-Out: Take aim at long-term maintenance projects, such as pool pumps, water heaters, and air conditioning servicing. Buyers probably won’t notice these on their own, but your agent can call attention to these facts to help reduce worries about long-term costs.

Brighten

Buyers like to see what they’re viewing. Good lighting, vivid color, and a few visual cues can go a long way toward making your home a memorable one.

Basic: Repaint interior walls, particularly those in the bathroom, kitchen, and extremely bright areas. White walls are particularly important, as they get dingy quickly. Replace traditional incandescent light bulbs with compact fluorescents, which put brighter lights in your existing sockets while saving money. Tie back curtains to let in the maximum amount of sun, which makes a house look more inviting than artificial light. Spruce up empty or colorless zones with potted plants. They add character to a room, but are obviously disposable if a buyer dislikes them. Repaint your front door, mailbox, and any street numbers.

All-Out: Repainting the entire interior if it’s been more than a few years since the last paint job. Install additional lighting in cabinets and closets. Add new cabinet doors and counter tops.

What Not to Do

While you can certainly overspend on any of the above suggestions, their value is well-established. Making a home cleaner, better-functioning, and more attractive is a no-brainer. However, some improvements can go too far, and actually hurt your investment. As a general rule, don’t build for the sake of building. Bigger isn’t always better, and if you take a project too far, you risk going in a direction the buyer will have to undo. For example, adding an extra bedroom might seem like a great investment, but a retired couple may prefer to use that space to install a pool in the back yard. Upgrade the home you have, but don’t try to make it something else.

By Cormac Foster

Preparing Your Seasonal Home For Your Departure

These comments and checklist are written for the clients of HomeWatch of Arizona, and therefore are geared towards homes in Arizona.  The problems and nuances associated with the snow country are very different than those of the desert.  Although we do not have the snow and freezing temperatures in the Phoenix area, we do have other challenges that are unique to the Desert.

This checklist is very thorough, yet you may find items to add and others which don’t apply.  I certainly hope that this helps as you go through the sometimes daunting process of preparing your seasonal home for your absence. 

You may access this checklist via this link.  Hopefully this can be used year after year as a resource to help with your closing.  Some items you may not need to do, some you may not want to do and some you may want to consult a professional to make the decision on whether to do it or not.  Please use your own judgment as there is more than one school of thought for some of the items on this checklist. 

Many of you may come and go for just a week or two at a time.  You will not want to close your home every time you leave but you should at least do a few of the most important items on the list just to lower the probability of have problems during your absence. 

The following list is not only to minimize the possibility of damage to your home but also for security reasons.  Vacant homes are easy to spot especially those that are vacant for months at a time.  Although following some or all of the guidelines in this list would be very helpful, all the precautions in the world are not going to give you a guarantee that your home will be completely safe. 

Completing this entire list may seem a bit daunting and may be more work than can be accomplished in a few hours prior to your plane departing.  HomeWatch of Arizona can complete a portion or if you wish will complete the entire process for you so that all you need to do is give us a call and lock your door.  Contact HomeWatch of Arizona for complete details.

• Contact contractors:     Inform all contractors you are leaving such as pool, landscaping maintenance, pest control and anyone else making regular visits to your home. 
• Trim trees:     Monsoon winds can cause extensive damage.  Trimming trees can help them from being blown over during our summer storms.
• Trim shrubs:    Trim any shrubbery that may provide cover for burglars especially around doors and windows.  This will need to be done several times during the summer months.
• Security lights:     Check to see that outdoor security lights (motion sensor lights) are functioning properly.
• Put fresh batteries in smoke detectors:     Most smoke detectors today are hard wired into your electrical system and do not have batteries.  If they do, replace them with new batteries.
• Replace batteries in your automatic irrigation boxes:    You should check the timer(s) at this time to make sure they are correctly set for the time of year you will be absent from the home.
• Patio furniture and BBQ:       Some owners cover these items or bring them inside.  This may keep them from deteriorating while you are gone but it also tells everyone that you’re gone for the season.  Do your best not to make this area of your home look vacant. 
• Pest control:  Pest control companies should make regular visits to your home, both interior and exterior.
• Clean fireplace and close damper:
• Emergency numbers and keys:     A neighbor, friend or relative in the vicinity should have your emergency contact numbers and a key to your home.  If there is a problem you will need to be contacted and access to the home will be needed. 
• Inform neighbors of your departure:     The more eyes watching your home the better.   You may want to ask your neighbors to park in your driveway occasionally to make it look as if someone is home.   
• Hide-A-Key:     Do not hide keys outside around your entry doors.  If you keep a key outside then place it in a locked key box.
• Have mail forwarded:
• Stop newspaper deliveries:
• Front door:     Have someone check the front of your home for newspapers, flyers and other junk and have them sweep the entry on occasion.  It is very easy to spot homes that are vacant by what has been left untouched in the front entry not to mention months’ worth of leaves and dirt.
• Answering machines:     Don’t ever announce your departure to the whole world.
• Landscaping:     Landscaping needs to look as if you are home, especially the front.  Your neighbors will be happier as well.
• Utilities:     You may want to put your phone, internet and cable on seasonal hold.  Be sure that your alarm system will still work with your phone on seasonal hold.
• Computer printers:     Inks in your printer can dry out and actually ruin your printer.  You may want to consult with your printer company as to the best way to store your printer for extended periods.
• Change or clean air filter:     Replace your air filter or clean it if it is a reusable.  If you are turning off the air conditioning then this is not necessary but still a good idea.  You won’t have to do it when you return.
• Dry foods:     If you are leaving for months at a time it is best to do something with your dry foods.  You can place them into a plastic bin that closes securely and you can also leave them in your refrigerator if you are leaving it on.  You might want to put your candles in the refrigerator as well.   
• Shutters, blinds and curtains:     Close all shutters, blinds and curtains except in rooms where you have lights on timers or a TV being turned on and off. Leave the window coverings in any of those rooms slightly open so that the light can be seen from the outside.
• Garage Door:     Bolt the door closed (If equipped) and then unplug the motor to your opener.  Do not disconnect the door from the track or else the door can be opened from the outside.
• Lock your car(s):      Hide all car keys and extra door keys in a safe place.
• Car batteries:     Disconnect your car batteries while you are gone.  Have someone start and run your car(s) every couple weeks. 
• Batteries:     Take batteries out of your wireless phones, remote controls, flashlights and other electronics that are not going to be used during your absence.
• Clean your home thoroughly:     Don’t leave behind anything for pests to eat.  Pay special attention to your kitchen appliances and cupboards.
• Laundry:     This is personal but it is best to wash all your sheets, towels, dish towels, rags and clothing that are staying at the home.  At minimum, strip beds and put all the dirty laundry in a hamper or plastic bag until you return.
• Turn main water valve off:     You can either turn your water off at the main shutoff on the outside of the home or you can do it under every sink and toilet listed below.  Unfortunately neither one is the perfect method.  What you do will depend on how you are closing other systems such as your hot water and sprinkler system.   You fire sprinkler system may be affected as well.  If you do not turn off the main valve then turn the water off at the following locations:
• Turn off hot and cold valves under all sinks:
• Turn off valve behind all toilets:
• Turn off the hot and cold valves for washing machine:
• Turn off the water line to the refrigerator:
• Unplug all items with cords:     Lamps, nightlights, coffee maker, toaster, toaster oven, washer and dryer, TV and other electronics, anything plugged in your bathroom, computers, printers, and other office items.
• Garbage disposal:     Pour the ice from the refrigerator ice maker into the disposal as it is running to clean it out.
• Turn off your refrigerator ice maker and empty the tray:
• Turn off refrigerator:     There are several schools of thought on this.  If you turn it off then clean it and leave the doors open.  If you leave it on, clean it, turn it to its lowest settings and keep some nonperishable items in it such as soda, water and dry foods.  This helps it work more efficiently.  
• Garbage:     Empty all waste baskets and garbage.  If you are not going to be home to bring your garbage dumpster back inside your fence or in your garage then have a neighbor do it.
• Turn off hot water heater:     Again there are those who would tell you to keep it on all year but by all means turn the thermostat(s) down.  If you have a circulator pump then turn it off.
• Turn the air conditioning up to 90 degrees or turn off the system:     If you have items stored in your home that would be affected by the heat then you might want to keep your air conditioning running at least a little.  The high heat may not be good for plants, paintings, pictures, candles but to name a few.  It can get very warm in your home in the middle of the summer.
• Secure all doors and windows:     Put wooden dowel rods in all windows and sliding doors.  Make sure all are locked as well.  If you have deadbolt locks with keys make sure you don’t leave any keys in them.  Lock the garage door between the house and the garage.
• Keep a couple lights on:     Use automatic timers or keep a few lights on at all times.  It would be best if these could be changed periodically and the bulbs may very well burn out and need replaced.
• TV or radio:     A TV emits an ever changing light especially when seen from outside.  If you have a TV you can place on a timer and turn it on every evening for a few hours this would be a big deterrent to burglars.  A radio works well but they will have to be close enough to hear it.  They can see the TV light from a block away.
• Turn on alarm system:     Notify alarm company of your departure date.
• Dishwasher and washing machine:     Open the doors of both to air out.  You may need to sponge out any water left in the bottom of the dishwasher.  Mold could form in these damp environments.  It is best to run these appliances every month to keep the seals from drying out. 
• Toilets:     Flush all your toilets 3 to 4 times in a row to clear all your drains.  This keeps toilet paper and waste from getting stuck in the drains and drying out while you are gone.  When you return these are hard as a rock and may be blocking your pipes.  Close the toilet seat and put plastic wrap over the seat and the bowl to keep the water from evaporating.  It is best to run water through your toilet ever few weeks.
• Sinks, showers and bathtubs:     Close stoppers to keep the water in the drains from evaporating.  This may also keep pests out.  Again it is best to run water through all your drains every couple of weeks.

As you can see many of these items need attention more often than you might think.  Most all of this checklist can be taken care of by a professional company and will give you tremendous peace of mind as well as free up your valuable vacation time.

This checklist was prepared by John J. Hay, owner of HomeWatch of Arizona.  It is meant to serve as a guideline to assist any homeowner to better care for and protect their valuable asset:  their seasonal home.  This list is a compilation of items from years of experience in the real estate industry and from personal experience in owning seasonal homes.  It is not meant to be complete contractual advice, so be sure to consult an expert in any area you are concerned about before following any of the advice.  

• John J. Hay
• www.HomeWatchofArizona.com
• JohnHay@RealtyExecutives.com
• (480) 363-5240

Most second home or seasonal home owners have a variety of methods to take care of that home which may be thousands of miles away.  The methods range from asking a neighbor to occasionally check on it, or maybe you have a handyman who will come out and take a look or maybe you fly out just to check on the property and spend time lining up contractors to do all the work and repairs that need to be accomplished over the past season.

These methods can be very uncertain, time consuming and some times very costly.  The best way to take care of your seasonal home is to hire a professional caretaker.
This may sound like something only the rich and famous might do but in reality it is a very inexpensive means of having someone watch over what very well could be one of your most valuable assets.

A professional caretaker that has scheduled visits to the home will give you total peace of mind.  Visual inspections of the property may identify potential problems before they become large, costly complicated problems.  Making small repairs quickly may save you thousands of dollars in the long run.  Imagine what damage a broken window or a drip under a sink can cause over a period of months.

Minor jobs such as bringing in papers, checking on the mail, watering house plants, turning on or off the sprinkler system, running water through your drains and flushing toilets on a regular basis can keep your home in tip top shape and keep you from wondering what, if anything, is happening with the property.

A property caretaker can also inspect the work of other contractors to see that the exterior maintenance is being done, the pool is being cleaned, your home has been cleaned and insure that your home is being maintained as you intended it to be.  Many caretakers can also take on the jobs of many contractors and accomplish the work themselves or hire out and oversee the work to make sure it is completed.  This will mean one call to your caretaker instead of calls to each of your contractors.

Just think how nice it would be to tell your caretaker that you will be arriving in two weeks and the home will be cleaned and the beds w ill be made before your arrival.  How about having some food in the refrigerator before your arrival?  There is nothing more frustrating than to arrive at your vacation home and spend the first week  cleaning, shopping and calling contractors to come and fix and maintain your home.  You were s uppo  sed to be there for a vacation.  If you  wanted to work you could just stay home.  

Some caretaker services such as “HomeWatch of Arizona”, working out of Scottsdale Arizona, will even take this one step further if you so desire.  They can and will oversee a complete remodel in your absence.  Maybe you just need your home painted and new flooring.  Why spend thousands traveling and a week of your time in a hotel just to watch the paint dry when someone else can do it for a minimal fee.

Basic caretaker services can cost as little as a dollar a day  while even the most complete services are still very inexpensive considering the alternatives.

The goal of professional caretaker services is to provide you peace of mind by making sure your home is taken care of during your absence AND ready for your return.

If you have any questions or comments please feel free to contact John Hay at (480) 363-5240 or email at JohnHay@RealtyExecutives.com.

For the most part purchasing property in Arizona for Canadian buyers or for that matter any buyer who is not a citizen of the United States is relatively easy and in most cases the same as if you were a citizen.  The major difference from purchasing property in Canada is that we use title companies to compile all the documents, title information and transfer of funds whereas in most cases Canadians use attorneys.  There are some differences when selling or renting your property and they deal mostly with the revenue or taxation of income and   profits.  Below I have several links that will help in answering some of the more basic questions.  Please consult your attorney to help with these issues.

United States and Canada Revenue Websites:

• Canada Revenue Agency
• Provincial Agencies
• United States Internal Revenue Service
• Arizona Department of Revenue

Other Revenue Related Documents:

• U.S. Tax Guide for Aliens
• Rental Property Foreign Ownership Tax Information
• Withholding of Tax on Dispositions of United States Real Property Interests
• Exceptions from FIRPTA Withholding

With foreclosure rescue scams widespread as more homeowners fall behind on mortgage payments, be smart if you seek help.

A record high 2.8 million properties were hit with foreclosure notices in 2009, putting even more Americans at risk of facing foreclosure rescue scams. Homeowners who fall behind on mortgage payments need to tread carefully when seeking assistance, since foreclosure rescue scams come in many guises. A day spent researching legitimate options, from a mortgage modification or principal forbearance to a short sale or deed-in-lieu, could keep you from becoming a scam victim.

Foreclosure rescue scams run rampant

Homeowners facing foreclosure are prime targets for scam artists. The U.S. Federal Trade Commission identified 71 companies running suspicious foreclosure rescue ads, and the Better Business Bureau counts foreclosure rescue rip-offs among its top 10 scams. Understanding how these scams work can help you avoid becoming a victim.

The variations are seemingly endless, but one popular foreclosure scam involves a representative of a so-called foreclosure rescue company promising to negotiate a deal with your lender. The rep, vowing to take care of everything, will instruct you not to contact your lender, lawyer, or credit counselor during the supposed negotiations. The more brazen ones will even tell you to pay your mortgage directly to them.

Once you pay an upfront fee or hand over a few months’ worth of mortgage payments, the scam artist will disappear. You’ll be left with an emptier wallet and a mortgage that’s in even deeper trouble because no deal was cut and no payments were made on your behalf. According to John Riggins, chief executive of the Fort Worth, Texas, office of the Better Business Bureau, upfront fees can range from $500 to $5,000.

Rip-offs come in many forms

A bankruptcy foreclosure scam can involve a promise to fend off foreclosure in exchange for an upfront fee. Instead of getting you legitimate relief, the fraudster will pocket the fee and secretly file a bankruptcy case in your name. The scam may seem to work initially, because a bankruptcy filing will stop foreclosure proceedings temporarily, but they’ll resume. Compounding your problems, a bankruptcy can mar your credit report for 10 years.

Another common scam, called the bait-and-switch, results in a scam artist taking ownership of your home. You sign documents supposedly for a new loan that will make your mortgage current. What’s really happening is you’re signing over the deed of your house. In this scenario you would still owe on your mortgage but no longer own the home.

In a rent-to-own scheme, you’re told to surrender a home’s deed as part of a deal that lets you stay put as a renter. The scam artist, perhaps claiming to be able to refinance at a better rate with you off the title, promises to sell the house back to you in the future. However, terms of the deal may make it all but impossible for you to repurchase the home, or the scammer may get you evicted by raising the rent beyond your means. Either way, you end up losing the home while remaining on the hook for the unpaid mortgage.

Look out for red flags

Being aware of the warnings signs can protect you from foreclosure rescue scams. Red flags include:
•    Demands for high upfront fees.
•    Guarantees to stop a foreclosure.
•    Instructions to make mortgage payments to someone other than your lender.
•    Pressure to sign over a deed.

Legitimate foreclosure counselors won’t put on a full-court press, nor will they guarantee that you won’t lose your home to foreclosure. What they will do is review your financial situation and offer up options. Foreclosure counselors approved by the U.S. Department of Housing and Urban Development won’t charge you a fee either.

Legitimate ways to get foreclosure help

There are a number of legitimate ways to contend with foreclosure. If you’ve missed mortgage payments, start by getting in touch with your lender. Ask to speak with someone in the Loss Mitigation Department and explain your situation.

Your lender may be able to arrange a repayment plan, called a special forbearance, based on your current economic circumstances. The lender could even give you a temporary reduction in your monthly payment or suspend payments for a period of time.

With a principal forbearance, the lender will reduce the amount of your mortgage, thus reducing your monthly payments. However, the amount of the principal reduction doesn’t disappear. Rather, it’s tacked on to the end of the loan, effectively creating a balloon payment.

A federally facilitated mortgage modification could also help. The Making Home Affordable modification program pays lenders to re-work loan terms and lower monthly payments. Be prepared to gather lots of paperwork and undergo a trial modification.

If all else fails, you may need to give up your home. If so, look into the federal Home Affordable Foreclosure Alternatives program. HAFA offers lenders financial incentives to opt for a short sale or deed-in-lieu rather than a foreclosure. In a short sale, a lender agrees for a home to be sold for less than the outstanding mortgage, and then considers the debt paid off. In a deed-in-lieu, a homeowner turns over the home to the lender, and the mortgage is closed.

Donna Fuscaldo has written about personal finance for Dow Jones, the Wall Street Journal, and Fox Business News for more than a decade. Like many homeowners, her mortgage is precariously close to being underwater.

Visit Houselogic.com for more articles like this. Reprinted from HouseLogic.com with permission of the NATIONAL ASSOCIATION OF REALTORS®.

Over time, roofs sag, mortar cracks, and furnaces lose efficiency. Beyond this normal wear and tear, older homes can harbor mold, water damage, termites, or other structural threats that can cost tens of thousands of dollars to fix.

New homes need inspections, too

New or old, a house isn’t a car—you can’t just trade in a lemon. Regardless of its similarities to neighboring structures, every home is different. Each home is build by different hands, at different times, on different land, and each responds differently as it settles. A home inspection before purchase your new home can alert you to long-term risks, identify immediate problems your builder must fix, and help you get the most from your new home warranty before it expires.

There’s no such thing as a perfect home. Even if there were, it wouldn’t last long. Climate, material flaws, poor workmanship, and even gravity conspire to tear every home apart. Home maintenance is a necessary cost of home ownership, but homebuyers need to make smart decisions about acceptable costs. A home inspection is the most cost-effective way to go into a purchase with your eyes open.

What they won’t cover

When you schedule an inspection, have the inspector outline special conditions he or she does not cover. Lead, radon, asbestos, and other toxic substances are generally not covered, and may require an inspector with a special certification.

Inspecting the Inspector

Finding a good home inspector can take some work, but it’s worth it. When you’re comparing inspectors, remember TEN—Transparency, Experience, and Neutrality.

Transparency

There’s nothing magic about home inspection, and good inspectors will be completely forthcoming about what they look for, how, and why. If you don’t understand something, ask. Professional inspectors will always answer your question to your satisfaction. Ask to see the home inspection, or better yet—go along on the inspection. It’s your house, after all. If the inspector hedges, walk away. Don’t be shy. Your home is worth more than their pride.

Experience

Every home inspector should have references. Call them.

Neutrality

Inspectors work for you, not the agent, the owner, or a contractor. A well-established inspector will have worked with all sorts of real estate and construction professionals, but recommending those professionals is a conflict of interest.

Certifications

Not all states require certifications, and a certification doesn’t guarantee There are dozens of certification associations, but some of the older and larger include ASHI, the National Academy of Building Inspection Engineers, and the National Association of Home Inspectors.

by Cormac Foster

1. Research Early and Often

Shop around. Too many homebuyers treat insurance as an afterthought and go with the first policy they find. They might get lucky, but chances are, they’re paying too much or covering too little. Insurance is critical to your long-term happiness, and it can be a substantial part of your monthly home-related expenses. The more research you do, the greater the odds that you’ll find a policy that fits your needs and your wallet.

When you’re shopping for policies, be sure to start with your existing car, boat, or other vehicle insurance provider. The insurance business is competitive, and most insurers will offer package deals, particulularly if you’re a long-standing customer. Be sure to ask about “longevity discounts” when you speak with your agent. As an added bonus, you’ll also be able to combine your bills to reduce bookkeeping.

Raising your deductible is a great way to lower your monthly payment. It reduces risk to the insurer, shows them you’re not going to pester them with frivolous claims, and can save a conscientious homeowner a lot of money in the long run. Just be sure that you can absorb the costs. An extra $2000 of expenses over the long haul may seem insignificant, but you rarely need insurance at good times. Will you be able to cover the deductible 2 days before payday, the week your daughter’s tuition is due? If not, choose the higher premium for now, and adjust your deductible when you can afford it.

All assets depreciate over time, so be aware of the difference between “Actual Cash Value” (ACV) and “Replacement Costs.” Your TV might only sell for $200 on Craigslist, but but buying a new one might cost $2000. Policies will make explicit reference to ACV and Replacement Costs, so be aware of what you’re signing, and get the coverage you need.

Your credit was good enough to get a mortgage. Congratulations, but you’re not done. Many insurers will factor your credit score into your rate, so be sure to check your scores frequently and address any blemishes.

Before you apply for insurance, ensure that your home is as safe as possible. Install fire extinguishes, deadbolts, outdoor lighting, smoke detectors, burglar alarms, and fire-retardent plants. You’ll be safer and your premiums will drop.

Florida has hurricanes. Oklahoma has tornados. California has earthquakes. Every homeowners policy has exemptions, usually based on location. If you’re building or buying a home in flood country, you’ll probably need to pick up special flood insurance. Ask your insurer what the policy doesn’t cover when you buy. Odds are, he or she will be happy to sell you additional coverage.

The most important step in selecting a home is knowing how much you can spend. If you already use an electronic budgeting system, you’re ahead of the game. If not, track your expenses for the past several months to a year. Try to quantify the “gray areas” of cash withdrawals that disappear on small purchases. Now add up your current rent and other related expenses. If you’ve been saving money toward your down payment, note that, as well. Finally, ask yourself where you can tighten your belt with your existing discretionary purchases. This is the maximum amount you could pay per month. Now ask yourself if this is reasonable, given your current savings and possible expenses. Only you know the answer to that. When you’ve arrived at a comfortable number, write it down, and save your calculations. You’ll take this to the bank when you apply for loan preapproval. For now, you have an estimated payment you can use while shopping online.

Set your Criteria

A home is the biggest purchase you’ll probably ever make. Stay focused and don’t let emotion guide you. If you have one child and no plans for more, four bedrooms are probably a waste. Write down a list of must-haves, nice-to-haves, and can’t haves before you start visiting homes. You’ll save time, help your agent work more productively, and keep yourself from getting carried away—into the wrong house.

Important criteria include:

• Age of house
• Number of bedrooms and bathrooms
• Size of lot / yard
• School district requirements
• Type of street (Are busy streets OK, or do you want a cul de sac? Do you need to be near a bus or light rail line?)
• Type of home (Single-story? Mutli-level? Are there any dominant architectural styles in your area that you refuse to buy?)
• Central heating and cooling
• Expensive additions, such as in-ground pools

Make a list of Homes

After you’ve made this list, search online and find several representative homes. If you have time and you’re fairly local, drive by a few of them to get a feel for the neighborhoods. Write down your impressions. This will help you understand home much of a home’s description is fact versus fluff, and give your real estate agent a good idea of your likes and dislikes.

Find a Realtor®

Most home buyers select a licensed Realtor® to represent them, and they are almost always happy they did. Realtors® are real estate agents who subscribe to a strict code of ethics and are acknowledged experts in the field. A Realtor® knows your local market, and can help you through every step of the home buying process, from finding your dream home to negotiating the best possible terms, explaining everything along the way.

Bring a Camera

Your Realtor® will take you on a number of open houses, and your opinions can be lost in the blur. To keep things straight, bring a digital camera on your trips. Take a picture of the street nu,ber of each property, then photograph each room during your walk-through. Photograph a house even if you decide it’s wrong for you—there may be furnishings, construction tips, or other features you notice later that could come in handy when you find the right home.

by Cormac Foster

Consider before you ignore or outright refuse a very low purchase offer for your home. A counteroffer and negotiation could turn that low purchase offer into a sale.