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Homeowner Savings Tips

Energy Efficient Homes: A Primer

Energy efficiency grass

Let’s be honest: Nobody likes bugging family members to tweak the thermostat or air conditioner for energy savings gains. Facing record-setting temperatures and rising energy costs, most homeowners need to figure out how to strike the perfect balance between comfort and cost-efficiency — which is no easy feat.

But with climate change wreaking havoc on local power grids and wallets, finding ways to keep your home comfortable without draining resources is more important than ever before. 

To keep costs down but stay cozy all year long, you should do everything you can to reduce your carbon footprint by creating an energy-efficient house.

Read on to learn more about energy efficiency, why it’s essential, and some home improvement tips for making your slice of real estate more sustainable and cost-effective.

What is an energy-efficient home?

An energy-efficient home is a property that optimizes energy usage and minimizes environmental impact. Energy-efficient homes are built with features and technologies designed for efficient energy use throughout the house, including heating, cooling, lighting, and appliances. 

Most new homes today come with built-in mechanisms engineered for maximizing energy. But you can also make an older home energy-efficient by making upgrades and repairs. So, in the event you’re eyeing a dream house that’s behind the times, don’t let dreams of energy efficiency hold you back.

Why does energy consumption matter?

According to a recent report, U.S. electricity use per capita is the highest out of any major economy — by far. Each person in the U.S. consumes about 12.87 megawatt hours of electricity each year, which is three-and-a-half times higher than the global average.

What’s more, electricity generation is the second largest source of greenhouse gas emissions in the U.S. after transportation, accounting for 25% of national emissions. Looking forward, the country’s demand for electricity will only increase as auto fleets become increasingly electric. 

Good news: As a new homeowner, you can help reverse this trend by embracing energy-efficient practices. With all this in mind, let’s take a look at some key reasons why reducing your energy footprint at home is the smart move.  

Save energy

Excess energy usage puts pressure on local infrastructure, impacting the entire energy supply chain. When households consume excessive energy, the power grid has to work harder to meet demand. As a result, energy companies may have to adjust their pricing structures to accommodate peak usage times. 

By curbing energy consumption at home, you’ll do your part to promote efficient resource consumption. This helps keep costs down for everyone while preventing overloads and reducing the likelihood of disruptions.

Reduce emissions 

Energy consumption from fossil fuels produces greenhouse gas emissions, which create air pollution and contribute to climate change. 

Lowering energy consumption at home reduces emissions, helping mitigate the harmful effects of climate change like rising sea levels and extreme weather events.

Lower energy costs

You’ll also save money by incorporating energy-efficient features and practices that minimize energy and resource consumption. 

According to the U.S. Office of Energy Efficiency and Renewable Energy, the average American spends $2,000 paying for energy each year. Making matters worse, $200 to $400 of this chunk is wasted on drafts, air leaks around openings, and outdated heating and cooling systems. 

By making energy efficiency upgrades, you can reduce financial waste and make your home more comfortable — all while doing your part to protect the environment.

What upgrades can you make to lower your energy bills?

Making small changes and investments can go a long way toward reducing energy consumption and lowering your bill. Here are some of the ways you can improve energy efficiency in your home.

Modernize your HVAC systems

If you have an older property, your heating, ventilation, and air conditioning (HVAC) systems could contribute to energy waste. Consider upgrading to eco-friendly systems to reduce energy consumption and lower monthly bills. While you’re at it, get in the habit of paying for routine maintenance, which can also help improve efficiency. 

Install a programmable thermostat

Consider replacing your outdated thermostat with a programmable model that will enable you to set different temperatures throughout the day. Such devices enable you to optimize heating and cooling based on your schedule so you can avoid unnecessary energy consumption when you’re not at home. 

Insulate and seal cracks

One of the secrets to energy efficiency at home is preventing heat loss in the winter and cool air leakage during the summer. To accomplish this, identify areas where air escapes through cracks and gaps. You can do this by installing foam insulation and air sealing any gaps or cracks, which can reduce the load on your systems and save energy. 

Install LED lighting

Light-emitting diodes (LEDs) are an energy-efficient and long-lasting alternative to traditional light bulbs. High-quality LED light bulbs can last for tens of thousands of hours, saving you a good chunk of change over the lifecycle of the unit. 

In addition to savings, LED lights don’t contain hazardous materials like mercury, which is common in fluorescent bulbs. They are also recyclable and help reduce carbon emissions. Plus, they fit into standard light sockets, so you don’t have to rip and replace any fixtures to install energy-efficient lighting. 

What is a smart home?

A smart home is a residence that uses automation and connected technology to enhance comfort, security, efficiency, and convenience. Inside a smart home, devices and systems — like smart thermostats, refrigerators, stoves, heat pumps, security systems, and lighting systems — are connected through the internet of things (IoT), and you can control them via your smartphone. 

Did you forget to turn the lights off when you went to work in the morning? There’s an app for that.

In addition to curbing energy usage, intelligent devices can make your home more attractive to potential buyers. As a modern feature, they can also increase the value of your home.

Tips for making your home more energy efficient

You don’t have to go overboard when making your home more energy-efficient. In fact, making a few minor changes can have a big impact. With that in mind, the following tips can help you slash home energy use. 

Conduct an energy audit

Before you make any changes, conduct an energy audit to identify energy waste and form an improvement plan. Start by gathering utility bills from the last year and begin analyzing your energy consumption patterns to see if there are any significant changes and seasonal variations. 

Once that’s done, walk through your home and see if you notice specific areas that may contribute to energy loss — like drafts, inadequate insulation, and inefficient appliances. While you’re at it, evaluate lighting fixtures and your HVAC system to see what shape they’re in. 

Embrace renewable energy and install solar panels

By installing solar panels on your property, you may be able to power your home with renewable energy and reduce your reliance on the power grid. While solar panels can be expensive to install, you can potentially lower your utility bills over time — assuming you stay in your house long enough to break even on the investment.

Some power companies also incentivize solar panels by allowing you to sell power back to the grid — a strategy known as metering. If you have a home that’s capable of producing more solar energy than you consume, it’s worth checking whether this is an option in your area. 

Upgrade to energy-efficient appliances 

One of the most surefire ways to improve energy efficiency is to replace older appliances with Energy Star-certified models. These appliances — including refrigerators, dishwashers, dryers, and washing machines — use less energy while providing the same functionality as their older counterparts. Sometimes, they’re even better. 

As an example, water heaters are a common source of energy waste, accounting for roughly 13% of annual residential energy usage and consumer utility costs. If you have an old water heater, consider lowering your water heater temperature or upgrading to an eco-friendly model.

Limit screen time

The average person now checks their phone 144 times per day — in addition to watching television, using a laptop or tablet, and playing video games. Multiply that times three or four family members, and it’s easy to see how devices can consume a lot of energy. 

Limiting screen time at home reduces power consumption and contributes to a more energy-efficient lifestyle. Plus, it gives you time to engage in the old-fashioned art of having actual conversations with real human beings!

Unplug devices

Look around your house and try to find all the items that connect to an outlet when they aren’t in use — like floor fans, television monitors, charging docks, and coffee machines. Believe it or not, these devices contribute to phantom energy consumption even when they’re not on. When devices are off or in a standby state, they consume small amounts of power. By making sure devices you aren’t using are unplugged, you can cut off standby power consumption and reduce energy waste.

Learn to love cold water

Everyone uses hot water throughout the day. We take hot showers, we wash our clothes and dishes in hot water, and we use hot water to cook. Unfortunately, hot water doesn’t appear out of the ether. You need to heat it up, which requires energy. 

Consider washing clothes with colder water and start taking cold water showers to reduce your consumption. As a bonus, you’ll probably take shorter showers and use less water!

Plant shade trees

Another way to make your home more eco-friendly is to plant shade trees in areas with a lot of sunlight. This landscaping hack can reduce the need for home cooling. As an added bonus, you may also increase your property value by improving your property’s visual appeal. 

There are all sorts of shade trees; some common examples include maple, oak, elm, cottonwood, beech, and ginkgo. If you’re thinking about planting some of your own, check with your local environmental agency and ask what they recommend for your area. 

Reduce your reliance on air conditioning 

If you’re the kind of person who keeps their house frozen during the summer, you’re wasting a ton of energy. Even with soaring temperatures, many homeowners go overboard with cooling. 

If you want to reduce energy waste, consider turning your air conditioner up a bit. Better yet, turn it off when you can and open windows to let the fresh air in. Of course, you can also switch to ceiling and floor fans, which can help distribute air and cool things down. 

Air dry clothes

If you have space, ditch your dryer for a clothesline or drying rack. In addition to cutting back your energy usage, you’ll also prolong the life of your clothes. Air drying helps maintain fabric quality, reduces shrinking, and preserves elasticity. It’s also a great reason to get outside.

What are energy rebates?

Energy rebates are financial incentives that utility companies, nonprofits, and government agencies like the U.S. Department of Energy offer to encourage individuals to invest in energy-efficient technologies and practices.

Rebates typically involve a partial refund or discount on the purchase price of energy-efficient products and services. Most of the time, energy rebates are attached to appliances, vehicles, HVAC systems, renewable energy systems, and other similar items. 

It pays to prioritize energy efficiency! 

While making a house energy-efficient takes time and money, that money’s well-spent. Not only does an energy-efficient house put more money in your wallet each month, it also helps you reduce your impact on the environment. 

That said, it’s much easier to buy a property with smart appliances, solar panels, and energy-efficient windows than to do all the work yourself.

That being the case, consider prioritizing energy efficiency when you buy your first home. At the end of the day, all homebuyers should research properties before visiting them, ask questions during walkthroughs, and consult with energy inspectors and local agencies to understand how different types of homes consume energy. Before agreeing to a deal, ask the seller to share utility bills with you to get a better idea of how much you can expect to spend on utilities each month.

By asking about energy consumption before making an offer on a house, you can potentially save thousands of dollars in upgrades and enhancements over the years. Who ever thought you’d care so much about a washer or an HVAC system!

Of course, energy is just one thing you should look into before making an offer on a home. To learn more about other considerations you should make, read this: 10 Questions to Ask Before Making an Offer on a Home.

Disclaimer:

The content provided on this website is offered for educational purposes only. While we endeavor to provide accurate and up-to-date information, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability of the content for any purpose. Visitors are advised to consult with qualified experts before making any financial decisions or taking any actions based on the information provided on this website.

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1st Time Homebuyer Grants Homeowner Tips

HELOC Guide: Everything You Need to Know about Home Equity Lines of Credit

Home Equity Line of Credit brief

What is a home equity line of credit?

When you buy your first house, you typically have to save a boatload of cash — tens of thousands of dollars or even more — depending on your financial situation and the price of your property. 

It’s a big chunk of change, to be sure. But once you get your foot in the door and start making monthly mortgage payments, you begin to build equity. Build up enough equity, and you may be eligible to take out a home equity line of credit (HELOC) and draw against it if you need some extra cash. 

As a new homeowner, one of the best things you can do is plan ahead and have a game plan for the future. That being the case, it pays to know how HELOCs work, when it makes sense to use one, and when to stay away.  

If you’re looking to learn more about HELOCs, you’ve come to the right place. This article covers everything you need to know about HELOCs, including what HELOCs are, how they work, how you can use them, HELOC alternatives, and more. 

Home equity line of credit defined 

A HELOC is a type of revolving credit line that enables homeowners to borrow money against the equity they’ve built up in their homes. This flexible form of financing is secured using the value of the property as collateral.

If you’re like most people, you’re going to need to secure a mortgage when you buy your first home. If you’re able to cobble together a 20% down payment, you’ll need to finance the other 80% of the house. In this scenario, you’ll own 20% of your property when you close the deal, and the bank will own the remaining 80%.

From that point on, each monthly mortgage payment you make increases your equity, meaning you own more of your property over time. If you ever need some extra cash and have enough equity in your home, a HELOC may be appealing to cover things like renovations, home improvement costs, and upgrades.

Essentially, HELOCs are revolving credit lines that can be borrowed against as needed; you’ll have to pay interest on whatever funds you draw. As you repay your balance, the credit line is replenished, and you can continue drawing against it.

Is it common to use a HELOC?

In the past, using a HELOC was less common. But in today’s inflationary environment, things are becoming increasingly expensive. This, in turn, is making it that much harder for young homeowners to pay their bills. In fact, one recent report found that roughly 34% of 25 to 39-year-olds currently have trouble meeting their financial obligations. Even worse, more than 70% of younger Americans are saving less because of inflation compared to Gen X and Baby Boomers.

In light of this, homeowners are looking for alternative ways to make ends meet while still reaching their family, investing, and real estate goals. As a result, many are exploring HELOCs for the first time.

In fact, HELOC applications increased 30% year-over-year in 2022. What’s more, Google searches for HELOCs hit an all-time high in July 2023. This uptick is mainly due to high prices across the overall economy.

How does a HELOC work?

A HELOC is a personal loan you borrow against your own assets. Just like any other type of loan, you have to pay any funds you use back to the bank, and you also have to pay interest on what you draw. There may be other fees too, like closing costs, annual fees, and late payment penalties, among others.

Considering this, a HELOC isn’t free even though you’re borrowing against your own equity. After all, banks offer products like HELOCs to make money.

Even so, HELOCs can be particularly beneficial in certain circumstances. If you’re thinking about applying for a HELOC, here’s the process you can expect to encounter.

1. Determine eligibility 

First, a lender runs a credit check to determine your credit score and assess your credit history. This helps the lender determine your trustworthiness and ability to repay loans. 

At this stage, the lender will also evaluate your overall financial situation. Typically, they’ll look at your debt-to-income ratio, your employment history, and any other assets you might have — like houses, cars, or investments.

2. Calculate your equity

Next, the lender will assess the value of your home and subtract your outstanding mortgage balance. If your home is worth $400,000 and you owe $150,000 on your mortgage, you’ll have $250,000 in equity.

The lender will also calculate a loan-to-value (LTV) ratio, which measures the total mortgage debt compared to the property’s appraised value. Having a lower LTV means that you have more equity in your property.

3. Get approved

After assessing your eligibility, credit history, income, and debt, the lender will determine whether you qualify for a HELOC. If you receive approval, the lender will set a credit limit, indicating the maximum amount you can borrow. 

In addition, the HELOC will likely have a draw period — the duration that you can access funds — which typically lasts anywhere from five to 10 years. Some lenders also offer 20-year repayment periods. It’s also important to note that most HELOCs have variable interest rates, which change based on market fluctuations.

4. Access your funds 

Once approved, you can access your line of credit as needed. As you take funds during the draw period, your monthly payments will reflect the interest on the amount you borrow — just like a credit card. 

How can you use a HELOC?

One of the advantages of a HELOC is that it’s a highly flexible type of loan compared to other forms of borrowing. In fact, you don’t even have to use the funds for real estate purposes. Simply put, the bank doesn’t care how you use the money; all spending is at your discretion.

For this reason, keep an eye on your spending and current interest rates when you use the funds. It’s easy to burn through your HELOC and wind up in serious debt.

With all this in mind, let’s examine some of the more common ways homeowners use HELOCs.   

Finance home improvements 

You can use a HELOC to renovate or upgrade your existing home — potentially adding value and enhancing your living space. For example, you might decide to finish your basement, build a garage, pave your driveway, or replace your roof.

Whenever you make a major home renovation, consult with a real estate professional to determine its impact on your home value; never assume that a project will automatically make your home worth more. For example, something that seems like a lock-in for extra value — like adding an in-ground swimming pool — may actually detract from your property. 

Consolidate debt

If you aren’t careful, it’s easy to rack up debt after a few years of homeownership. On average, Americans now carry around $5,733 in credit card debt. 

If you wind up in this situation, a HELOC can help with debt consolidation. You can pay off high-interest debts — like credit card balances and personal loans — with a lower-interest home equity loan.

Just remember that high credit card debt can impact your eligibility for a HELOC, along with its terms, since lenders analyze things like debt, credit scores, and available credit before issuing loans. As such, it’s essential to consider your overall financial situation before using a HELOC to pay down high-interest debt.

Cover emergencies

Life comes at you quickly. One minute you’re relaxing on your back porch without a care in the world, and before you know it, you’re racing to the emergency room, scrambling to find a job, or calling your insurance company about a flood. While it’s advisable to have a few months of savings to cover surprise events, 53% of Americans say they don’t have any emergency funds.

HELOCs can serve as an emergency fund, helping you cover things like unexpected medical bills or car repairs. Depending on your interest rate and terms, this could be cheaper than securing a traditional bank loan.

Of course, HELOCs can cover non-emergency purchases, too. Some homeowners use HELOCs to protect big-ticket items like new cars, boats, or weddings. 

Invest 

Investing can be challenging when you’re struggling to make mortgage payments or put food on the table. Some investors use HELOC funds to overcome cash flow limitations and access the funds they need to invest in stocks and real estate instead of tapping into their paychecks. However, this is generally risky since you can lose money from investments and potentially wind up in a bigger financial hole. 

Start a business

Launching a business can be very resource-intensive. Companies often require significant capital to get off the ground and many operate in the red for several months or years before becoming profitable. 

Using a HELOC to launch a business is risky since 20% of small businesses fail in the first year. Remember, in addition to increasing your debt burden, you’ll also have to make interest payments — which could put pressure on you to make the business succeed faster. 

Before using a HELOC to fund a business, thoroughly evaluate the business idea, create a plan, and assess your risk tolerance.

Cover education costs 

Education costs are going up yearly. Today, the average price of college is upwards of $36,000 per student. This trajectory is forcing parents to explore alternative types of financing apart from traditional student loans and scholarships.

Families often make HELOC withdrawals to pay for tuition, books, food, housing, transportation, and other education expenses. Financing education with HELOC funds can potentially create a sense of commitment for students to complete their studies, helping prevent financial hardships for their families.

That said, roughly 40% of undergraduate students leave universities and colleges annually — resulting in a gigantic waste of money. Think twice before using a HELOC for education. 

Finance a new home

One of the best ways to use a HELOC is to finance a new property as an investment or permanent residence. This option can be advantageous if you’re looking to upgrade your existing home and jump into a new space without putting all of your savings on the line. 

If you have a significant amount of equity, you may be able to use these funds as a down payment on a new home. This can be particularly useful if you want to preserve your cash reserves or if you’re in a situation where you don’t want to sell your current home before buying a new one.

The significant disadvantage to using a HELOC for a down payment is that it can lead to overleveraging, which occurs when you owe more on your new property than it’s worth. This could happen if the real estate market value takes a sudden downturn. 

How is your credit score impacted by a HELOC?

HELOCs can impact your credit score in both directions. Here are some considerations to keep in mind about the link between HELOCs and credit scores:

  • If you’re a responsible borrower, HELOCs can help diversify your credit mix and improve your payment history.
  • When applying for a HELOC, it helps to have a decent credit score. The better your score, the better the loan amount, interest rate, and terms. For example, borrowers with higher scores may be eligible for more favorable loan terms — like longer repayment periods or lower interest rates.
  • When you apply for a HELOC, your account will be hit with a credit inquiry, which can slightly lower your credit score in the short term. Using a HELOC and running up a balance could also increase your debt and credit utilization rate, potentially negatively impacting your score. Other risks include missing payments and lowering your creditworthiness. 

Remember: Taking out a HELOC is a major financial decision that could jeopardize years of progress of building equity in your home. If you want to take out a HELOC, consider consulting with a financial advisor or conducting a top-down financial assessment to ensure you can take on extra risk.

Alternatives to HELOCs to know about 

Is a HELOC the best financial instrument for you? Here are some additional financing options for homeowners: 

  • Unsecured personal loans, which can be obtained from banks, online lenders, and credit unions, don’t require any collateral. In exchange, they typically have higher interest rates.
  • 401(k) loans, which involve borrowing money from your 401(k) retirement plan. Most 401(k) loans come with strict repayment deadlines.
  • Unsecured home improvement loans, which are available from some lenders and are specifically earmarked for home improvement projects and repairs. These loans tend to have higher fixed interest rates because they don’t require any collateral. 
  • Credit cards can also help fund small projects around the house. Some cards also have lucrative reward options, providing cash back or other incentives. However, you’ll need to pay your balance off in full each month unless you want to pay massive interest rates.

What is a home equity loan?

A home equity loan is similar to a HELOC; it enables homeowners to borrow against the equity they have in their property.

However, unlike HELOCs, this type of loan provides a one-time lump sum based on your home’s equity. With a HELOC, you get a revolving line of credit that you can tap into when you need to. Home equity loans are more like mortgages; you have to cover fixed monthly payments for the loan term. That being the case, you should only take a home equity loan if you’re comfortable paying monthly installments.

When you take out a home equity loan, your house serves as collateral. If you fail to repay, your lender can take possession of your property through foreclosure. 

Home equity line of credit: FAQs

What are the pros and cons of HELOCs?

Pros 

  • HELOCs provide a great deal of flexibility. You can use them for various needs ranging from home improvement and education to paying down debt and buying a new car. At the same time, you can tap into a HELOC as you need to. As long as you replenish your credit line, you can continue borrowing multiple times over the life of the loan.
  • During a draw period, you can usually make interest-only payments. This can help keep your monthly obligations lower. 

Cons

  • HELOCs tend to have variable interest rates and can change over time. As a result, your monthly payments could increase when rates rise. 
  • It can be tempting to overspend or overborrow with a HELOC.
  • Defaulting on a HELOC could result in the bank seizing your property and foreclosing your home. If you tap into a HELOC, you need to use it responsibly. 
  • Since lenders look at your equity, finances, and creditworthiness, it may be harder to get approved for a HELOC compared to other types of loans.

Is a HELOC tax deductible?

When it comes to taxes, it’s always wise to consult with a licensed professional. That said, you can deduct HELOC interest on your taxes if you use the money to buy, build, or improve your home — but only if you itemize your deductions. 

Is it possible to extend a HELOC draw period?

Some lenders may allow you to extend a HELOC draw period. However, it depends on the specific terms of your HELOC agreement and your lender’s policies. Some lenders offer flexible draw periods while others take a more rigid approach. When applying for a HELOC extension, your lender will likely consider several factors, including your eligibility and market conditions. 

What is a cash-out refinance? 

Cash-out refinancing involves restructuring your existing mortgage to increase the amount you owe and taking the difference in cash. If you own 50% of a $500,000 home, you can exchange half of your equity for $125,000, minus fees.

This strategy changes your mortgage terms by allowing you to make payments on a larger loan. Your new mortgage will include the remaining balance from your old loan and the extra funds you take out. Since you’re changing the terms, you’ll also have more time to pay the loan back. 

While this can lengthen your mortgage repayment timeline and increase the amount you owe, it can help you solve temporary cash-flow issues.

Should I refinance my home?

Refinancing may make sense if you can get a lower interest rate. But with interest rates closing in around 7%, it’s probably not the best time to refinance. 

When weighing a possible refinance, look for the break-even point: the time it takes for your monthly savings to offset the cost of refinancing. As a rule of thumb, you should only refinance if you plan to stay in your current home beyond that point.

How much does a HELOC cost?

HELOC costs vary by lender. Your HELOC may include:

  • Closing costs, like application fees, appraisal fees, attorney fees, title search fees, and more.
  • Origination fees, which cover the administrative costs associated with opening a HELOC.
  • Interest costs, which depend on how much you borrow, the interest rate, and the loan duration. Interest rates are usually based on the prime rate plus the lender’s margin.
  • Annual fees, which could add to the ongoing cost of maintaining your HELOC. 
  • Application fees, which could also be necessary when requesting a line of credit. 

Additionally, you should also be aware that your home’s appraised value can impact the overall cost of your HELOC. There may also be prepayment penalties in play, too.

Before applying for a HELOC, it’s a good idea to talk to multiple lenders to evaluate different HELOC rates and learn about potential hidden fees. 

What happens if a lender denies a HELOC?

If your HELOC application is denied, the lender must provide an adverse action notice outlining the reasons for the rejection. Some reasons may include a low credit score, insufficient income, or low equity in your home. Should you be rejected, carefully review the reasons for the refusal to understand what aspects of your profile may require improvement. 

That said, just because one lender denies your application doesn’t mean you can’t get a HELOC elsewhere. It may be worth it to apply for a HELOC with another lender that has different eligibility criteria or underwriting standards. 

If your financial situation changes, you can also choose to reapply with the same lender down the line. For example, after you’ve paid off debts, increased your savings, and built more equity, you may be a more attractive candidate.

Do HELOCs use the Nationwide Mortgage Licensing System (NMLS)?

The NMLS is a database for licensing and regulating mortgage professionals and entities. It primarily serves to protect consumers and streamline licensing. 

Since HELOCs are a mortgage product, they are subject to the NMLS. However, the application process can vary based on different state and federal regulations. Additionally, the professionals who originate HELOCs may also be subject to NMLS regulations.

Are HELOCs FDIC insured?

HELOCs do not typically have Federal Deposit Insurance Corporation (FDIC) protection. This is because FDIC insurance primarily covers deposit accounts — like checking accounts, savings accounts, certificates of deposit (CDs), and money market accounts. HELOCs, on the other hand, are a form of borrowing. 

Brush up on mortgage loans!

Before you start worrying about things like HELOCs and refinancing, you have to secure a property and mortgage first — and that requires careful planning.

One of the best things you can do as a first-time homebuyer is to read up on the different types of mortgage loans that lenders offer. Check out our FREE guide to learn which type of mortgage is best for you.

Disclaimer:

The content provided on this website is offered for educational purposes only. While we endeavor to provide accurate and up-to-date information, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability of the content for any purpose. Visitors are advised to consult with qualified experts before making any financial decisions or taking any actions based on the information provided on this website.

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Homeowner Tips

Pest Control for Homes

pest control service call

What You Need to Know

It’s every homeowner’s worst nightmare: You get up in the middle of the night to get a glass of water and something scatters in the kitchen. It’s small, fast, and has more legs than a city marathon. 

Often, people buy a home that looks clean and bug-free only to discover unwanted guests living in cabinets, the ceiling, and the floor. This tends to happen when houses sit vacant for a while, providing ample time for critters to enter and multiply. It also happens in older, dilapidated houses that haven’t been sealed in some time. 

Unfortunately, it’s impossible to keep a home entirely pest-free. That said, there are active measures you can take to control vermin and maintain a sanitary and livable environment. 

Keep reading to learn more about how infestations work, some common signs to look for, and tips for treating pest problems. 

Termites and cockroaches and bed bugs, oh my

No matter where you live or what kind of house you buy, pest control is a top challenge for homeowners. In fact, 76% of homeowners report experiencing a recent pest issue — with 60% worrying significantly about the problem. Unsurprisingly, concern for infestation is higher among pet owners (65%) and parents (70%).

The pests you experience on your property can vary depending on your location. Some common household pests in the United States include: 

  • Rodents 
  • Cockroaches
  • Bedbugs
  • Spiders
  • Moths
  • Carpenter ants
  • Termites 
  • Earwigs
  • Mosquitoes
  • Wasps
  • Silverfish
  • Fleas 
  • Centipedes
  • Millipedes 
  • Scorpions 
  • Crickets

Depending on where you live, you may also experience larger critters like raccoons, iguanas, snakes, or even alligators.

Almost all homes have minor nuisances like ants or wasp nests. Some pests are seasonal while others can bother you year-round. Depending on how badly your property is affected, you may need to take action to enforce animal or mosquito control in your yard. 

Infestations are much more than minor nuisances. Typically, they indicate a sustained and sizable presence of pests within a confined area. This goes beyond isolated incidents and suggests a breeding population within or around the house. 

How infestations impact a house 

Infestations may seem harmless at first. But left untreated, pests can quickly multiply and turn into a much larger issue. What starts as a minor inconvenience can become a significant financial and emotional burden. Over time, it can also lower your property value — or at least stick you with expensive repair bills. With that in mind, let’s examine some of the more common ways that infestations can impact a house. 

Structural damage

Certain pests can target a home’s overall structure, including critical support beams. For example, wood-boring beetles, termites, carpenter ants, and carpenter bees all target wood and can weaken the integrity of buildings, decks, and other wooden structures. 

Additionally, wood-decaying fungi and mold can also break down the cellulose in wood, making it weak and brittle. This type of growth tends to occur in damp, humid environments with relatively high moisture levels — like forests and wooded areas. 

Cosmetic damage

Pests can also cause cosmetic damage to property. For example, some pests may target furniture, walls, and floors and require costly repairs or replacements. They can also target belongings like books, upholstery, clothing, and food. Mitigating such damage can require time, effort, and resources. 

Health hazards

Your health is your greatest asset. Unfortunately, pests can pose health risks as well. For example, cockroaches and rodents may transmit diseases or trigger allergies with their droppings. Some people are also sensitive to chemical treatments, making removal increasingly burdensome.

What’s more, pest issues may contribute to emotional distress and anxiety for homeowners and occupants. A massive wasp nest hanging above your front door won’t exactly make you feel calm when you’re coming and going. Such occurrences can adversely impact mental and physical well-being.

Odors 

Certain types of pests may omit odors that can permeate a house, making it highly unwelcoming. Odors may arise from feces or pests dying in crevices or crawl spaces.

Legal concerns 

In some cases, pests can lead to legal issues when they infest areas with shared spaces — like condominiums and apartment complexes. Certain infestations can trigger mandatory reporting, potentially leading to regulatory actions like fines or even foreclosures.

Infestation signs to look for 

When it comes to detecting pests, homebuyers are at a disadvantage. Most buyers only get a few chances to view a property and determine if they want to make an offer. Beyond that, you have to trust the inspector to determine whether there are any signs of an infestation. 

As such, it’s critical to use your time wisely while you’re considering a property and be on the lookout for potential signs of pests. As you walk through a property, keep your eyes peeled for the following pest indicators. 

Droppings or tracks

One of the best ways to detect pests is to look for droppings from insects, rodents, or other critters. You may see small, pellet-like droppings or trails of fecal matter in places like cabinets, windowsills, and baseboards. 

Eggs or casings 

As you inspect the property, keep your eyes peeled for small eggs or casings. This may indicate the presence of pests like cockroaches, spiders, or beetles. You will typically find these items in places that are damp or out of view — like on the top of cupboards, under furniture, or in the back of drawers.

Unusual noises

Spend some time walking through the property, and listen for sounds like scratching, squeaking, and scurrying. This could indicate the presence of unwanted critters. 

Keep in mind that these noises can be hard to detect. Some critters can also be more active at night or early in the morning. Consider pressing your ear to the floorboards to pick up the sound better or even using a wall microphone to detect faint noises. 

Pet behavior

Oftentimes, buyers are allowed to bring a dog for a home visit when buying a house. If you have a furry friend in your life, bring them along. Your dog may be able to pick up on scents, sounds, or visual clues that you won’t be able to detect. If your pet acts unusual in a new house by barking, sniffing excessively, or scratching, it could indicate that other creatures are present. 

Gnaw marks

Homeowners and real estate agents typically sweep through a property and clean it up before showing it to buyers. While you want a clean house, this can make it challenging to spot cosmetic damage from pests. However, if a house has an infestation, it can be difficult or even impossible to hide it completely. 

As you look around, watch out for things like gnawing or chewing marks on walls, furniture, wires, and walls. Other indicators can include holes or entry points in ceilings, floors, and panels.

How do you treat pest problems?

If you buy a house with a pest problem, the best thing you can do is take action — and quickly. If you allow pests to persist for long periods, they can become unmanageable and potentially attract other critters, too. However, most pest problems are treatable if you catch them early and follow through with an effective eradication method.

With that in mind, here’s a quick overview of how to approach pest management.

1. Consult with a professional

If you suspect that your house or one you’re considering buying has an infestation, you may want to consult with a professional pest removal service. Aside from being a major hassle, attempting DIY pest removal or insect control can potentially make the problem worse. And if you don’t know what you’re doing, you could damage your property or create additional health hazards for family members or pets. 

Working with a professional service can also help avoid local environmental violations. For example, there are certain types of pests that you cannot legally remove due to conservation laws and regulations — like endangered species, certain birds or nesting sites, or nuisance wildlife. Some invasive species may also have rules governing their removal to prevent further spread. 

2. Identify the pests you are dealing with

A professional pest removal specialist can tell you what you are dealing with and the severity of the situation. During a routine inspection, specialists may uncover additional critters you aren’t aware of. 

After the initial inspection is complete, ask the inspectors for an official report for your records. Depending on how you’re feeling, you may choose to follow up with another service and collect additional feedback. Whatever you decide, don’t be afraid to shop around before agreeing to a treatment plan.

3. Set a course of action

After an initial inspection, a pest removal company will likely issue a remediation plan. At this point, you’ll need to determine whether you want to proceed. The best pest control products and services tend to be very pricey. But depending on how severe the infestation is, it could be the best money you’ve ever spent. 

Home pest control solutions and costs can vary depending on the scope of the infestation, the home’s size, the location, and the type of service. An initial pest control visit can cost anywhere from $150 to $350 or even more, while monthly or annual visits can cost hundreds or thousands of dollars. 

Depending on the type of infestation, a company may recommend the following pest control treatments: 

  • Traps and baits for capturing and eliminating pests like insects or rodents.
  • Natural remedies like diatomaceous earth, beneficial insects, or essential oils to deter or control pests.
  • Regular cleaning and sanitation to remove potential sources of water, food, or shelter that attract pests.
  • Sealing or refurbishing siding to close gaps and entry points for pests.
  • Chemical treatments — like pesticides, insecticides, and repellents — that eliminate pest populations.

The pros and cons of pesticides

Pesticides are chemical substances that can help you eliminate common household pests like small rodents, insects, fungi, and weeds. This approach is prevalent among homeowners, with 75% of U.S. households using at least one pesticide product indoors. Pesticides are common for landscaping, gardening, and indoor pest removal.

While pesticides can be very effective in eliminating populations of pests, they also come with some drawbacks. Let’s take a closer look at the advantages and disadvantages of using pesticides on your property. 

The pros 

  • Pesticides can quickly reduce or eliminate pest populations. It’s one of the fastest and most effective ways to remove undesirable vermin and prevent property damage. 
  • Chemical treatments can prevent some types of health hazards. For example, they can help avoid disease transmission, control allergies, and prevent contamination on surfaces and food.
  • Using pesticides as part of an ongoing preventative maintenance plan is common. Regular pesticide use can help avoid infestations and keep pests manageable. 
  • Pesticides come in a variety of forms like sprayers, pellets, powders, and foggers. 

The cons 

  • Pesticides can expose your family to other health risks — especially if you don’t apply them properly or come in contact with residues. Pregnant women, children, elderly individuals, and people with sensitivities may be at a greater risk.
  • When you use pesticides frequently, pests can become pesticide-resistant. This can make it harder to control and remove them from your property. 
  • Overusing or misusing pesticides can create pollution and impact soil or water. This could create conflicts with neighbors, local environmental groups, and even government agencies.

What to look for in a professional pest control company

If you have a severe infestation, you will likely be best off hiring an experienced pest control company to mitigate the problem for you. After all, the pest control company you partner with will impact your property, quality of life, and wallet.

Because of this, it pays to research thoroughly and pick a reputable and effective pest control company like Orkin or Terminix. This holds true whether you have a small ant or spider problem or require industrial-level termite control.

As you begin your search for a pest control vendor, keep these tips in mind.

Licensing and certification

Ensure the pest control company you work with has proper licensing and certification and meets the local standards and regulations for your specific area. 

Reputation

Before working with any exterminators, check online reviews and testimonials from other customers. Look for a company with positive feedback and a strong reputation. 

Transparent pricing

Request detailed pricing information before a pest control service begins work on your property. Watch out for hidden fees like extra treatment charges, preparation fees, after-hours fees, and material or chemical charges.

A commitment to sustainability 

Consider asking the vendor about their use of environmentally friendly methods or products. You can avoid using harmful chemicals in favor of eco-friendly alternatives. 

Should you buy a home with pest problems? 

At the end of the day, there isn’t a such thing as a perfect house. Your decision to buy a house with pest problems will ultimately depend on a variety of factors, including the severity of the problem, the cost of remediation, and your willingness to address the issue. 

Depending on your perspective and the scope of the infestation, having pests can either be a small nuisance or a major issue. Some homeowners can manage small infestations, while others need a pest-free environment for peace of mind. In either case, it’s important to be honest with yourself before agreeing to buy a house. 

If you suspect that a house has a pest problem during your home search, don’t hesitate to ask your real estate agent for guidance. And keep in mind that you can still back out of a deal after you submit an offer on a property if an inspection reveals a need for something like large-scale termite treatment, rodent removal, or cockroach elimination — particularly if the homeowner refuses to remedy the situation.

Curious to learn more about home inspections, how they work, and what you need to know? Check out Home Approach’s beginner’s guide to home inspections. 

Disclaimer:

The content provided on this website is offered for educational purposes only. While we endeavor to provide accurate and up-to-date information, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability of the content for any purpose. Visitors are advised to consult with qualified experts before making any financial decisions or taking any actions based on the information provided on this website.

Categories
Homeowner Mortgage

Monthly Mortgage Payment

home finance calculator

What is included in a total monthly mortgage payment?

When you rent a home or apartment, you probably don’t think twice about where your monthly payment goes. You give your landlord a check, they cash it, and everyone sleeps soundly. 

But since you’re about to experience homeownership, you need to change the way you think about your housing costs. That’s because when you have a real estate mortgage, your monthly payment doesn’t just go to a lender; it goes to several different parties. If you want to stay on top of your finances and keep costs down, you need to understand where each penny flows. 

Pour a cup of coffee, sit back, and let’s demystify what a total monthly mortgage payment includes. 

What is a down payment?

When you buy a house, you typically have to make a down payment — or initial lump sum offering — towards the purchase price of your property. 

For example, suppose a property costs $350,000, and the lender requires a 20% down payment to avoid private mortgage insurance. In this scenario, you would need to come up with $70,000 upfront to secure financing. 

There are other expenses in the homebuying process, like closing costs, agent commissions, inspections, appraisals, and insurance. These additional costs can vary based on the location and property type, so it’s advisable to consult with a real estate professional or lender to get a more accurate estimate of how much you might be on the hook for. 

While the initial payment may seem significant, remember that the buying process is a financial test. Homes can be expensive to maintain and unexpected costs may — and, let’s face it, almost certainly will — arise over time. 

Just wait until your kids break windows, appliances stop working, or your basement floods. The more you can save now, the better off you’ll be when an emergency happens.

What is a mortgage?

Unless you’re paying off the entire home price in cash, you’ll cover the remaining property cost by securing a mortgage or home loan. To continue our example, after putting down 20% on a property worth $350,000, you would need a $280,000 mortgage to cover the rest of the home’s value.

Homeowners often pay mortgages in monthly installments lasting anywhere from 15 to 30 years or longer. This allows you to spread the loan balance over a long period of time.

Monthly mortgage payment: A breakdown

A monthly mortgage payment contains several different components. Every month, you can expect your total monthly payment to flow to each of the following items.

Principal

The principal amount balance refers to the money that applies to reducing the original loan balance. If you borrow $280,000, that’s the number you’ll be whittling away each month after taxes and interest are accounted for. Generally speaking, fixed-year mortgages are frontloaded with interest, so your monthly checks only take small bites out of the principal at first.

Interest 

Interest is the cost of borrowing money from the lender. Mortgage providers calculate interest as a percentage of the remaining loan principal. Interest typically accounts for the bulk majority of mortgage payments. The total amount of interest you’ll pay primarily depends on the rates set by the Federal Reserve at the time you apply for a mortgage. They are also influenced by whether you have a fixed-rate mortgage or an adjustable home mortgage. 

  • In a fixed interest rate mortgage, interest is constant throughout the life of the loan. In other words, it doesn’t fluctuate with changes in market interest rates or economic conditions. If you bought a house at 3.5% interest using a fixed 30-year loan, your interest rate won’t change over those three decades (unless you choose to refinance to get a lower interest rate).
  • An adjustable-rate mortgage (ARM) changes over time depending on market conditions. Commonly, homebuyers start with an initial fixed interest rate for a few years, and then the mortgage rates reset depending on what the market is currently charging. ARMs can be risky because you never know when you’ll end up with a higher rate after the loan recalibrates. However, if you’re only planning to stay somewhere for a few years, this could be a more affordable short-term option.

Private mortgage insurance

Private mortgage insurance (PMI) is a type of insurance that protects lenders when the borrower defaults on their mortgage loan and forecloses. 

Lenders typically require homebuyers to purchase PMI when they put less than 20% down on a property. While it’s always advisable to put down at least 20%, you can afford a property by putting down as little as 3.5% by securing a loan from the Federal Housing Authority, also known as an FHA loan.

PMI is usually temporary and automatically cancels once the borrower’s loan-to-value (LTV) ratio reaches 78%. Borrowers can also request a cancellation or wait until the midpoint of the loan term for automatic termination under the Homeowners Protection Act (HPA).

Do mortgage payments cover homeowners association fees?

Mortgage payments do not cover homeowners association fees, or HOA fees, because HOAs are separate entities from lenders, and funds given to them are put toward improving the community. If you end up living in a property governed by an HOA, you need to pay them separately to cover services and amenities (e.g., pools, fitness centers, and common areas).

Do mortgage fees include property taxes and insurance payments?

Mortgage payments do not always include homeowners insurance premiums and property taxes. However, it’s common for mortgage lenders to include them as part of the monthly payment. The corresponding acronym for payments that cover all of these is principal, interest, taxes, and insurance (PITI).

Sometimes, a lender might make a homeowner pay for the first year of insurance at closing. After that, the homeowner is responsible for paying the insurance company directly. Generally speaking, the decision to include insurance and tax bills in mortgage payments depends on the type of home loan (escrow or non-escrow) and the borrower’s financial situation.

Escrow account

Lenders often require borrowers to have an escrow account. These accounts hold a portion of the monthly mortgage payment, which the lender manages and uses to pay property taxes and, in some cases, the homeowner’s insurance policy.

An escrow account helps the homeowner stay current on their monthly obligations and simplifies budgeting for the borrower. The downside is that the homeowner usually has to maintain an escrow balance.

Non-escrow account

A non-escrow — or non-impound — account is one where the lender allows borrowers to manage their own taxes and insurance independently. In other words, the borrower becomes responsible for paying property taxes and insurance to their local government and insurance company. 

Sometimes borrowers can ask their lenders to switch to a non-escrow account and take full responsibility for their taxes and insurance. For this type of request, the lender may ask for documentation to assess eligibility and financial responsibility. In the event your escrow account has a shortage due to increased taxes or insurance costs, you may first need to pay off the deficiency before the lender agrees to make the switch. 

What is amortization?

Amortization is the process of paying off a loan over a specific term through regular installments. The two most common examples of amortization include home and auto loans. 

With an amortizing loan, each payment amount covers a portion of the loan’s principal and a portion of the mortgage interest payments for the remaining balance. Any time you have an amortizing loan, the goal is to fully pay it off by the end of its term. Better yet, if you want to reduce your interest expenses, you might even want to pay it off sooner than that.

Best practices for monthly mortgage payments 

Having a mortgage is nothing to lose sleep over. In fact, you could potentially wind up with a mortgage that is comparable to or even lower than what you’re currently paying in rent — especially if you put in a sizable down payment and choose a property in a favorable housing market. 

What’s more, you’ll essentially pay yourself a portion of each monthly installment by building equity — or ownership — instead of forking over payments to a landlord. As time passes, your principal will drop, and your ownership equity will increase. In other words, you’ll own more of your house!

As you begin getting ready to make mortgage payments for the foreseeable future, keep these tips in mind to streamline the process and avoid complications.

Always pay on time

Always make your payments on time, before the due date. Late payments can result in late fees and penalties. They can also negatively impact your credit score. 

Create a budget

Currently, 61% of Americans live paycheck to paycheck, even with inflation cooling. If you fall into this camp, be extra careful if you’re aiming to carry an expensive mortgage.

By creating a budget and sticking to it, you can ensure there’s enough money left over at the end of the month to make your mortgage payment. You may be unable to eat, put gas in your car, or buy basic household items — but at least you’ll have a roof over your head!

Make extra principal payments 

Consider making extra payments toward your principal balance every month. This can help pay down your mortgage faster and reduce your interest costs over the life of the loan. If you take this approach, be sure to check with your lender about potential prepayment penalties. 

Review your mortgage statements 

Each month, review your mortgage statements to ensure they are correct and there are no errors or discrepancies. This is especially important any time you switch lenders during a loan. 

Be careful about refinancing 

At some point, you may consider refinancing your mortgage to lower your monthly payments. This might be a good idea for someone who buys a home when interest rates are high and then decides to refinance when they fall back down to earth. However, excessive refinancing could result in higher costs over time when factoring in loan term extensions and closing costs. 

Try these mortgage calculators

Before you start aggressively looking for homes, it helps to understand what you can afford. Start by using a free mortgage calculator to estimate your potential payments. 

Here’s how they work: A mortgage calculator asks you to input specific details about your home purchase and then generates an approximate monthly payment. For example, it may ask for items like your loan amount, interest rate, loan term, down payment, property taxes, and insurance costs.  

Looking to get a better idea as to how much you can afford? Try free mortgage calculators from sites like Bankrate, Zillow, and Calculator.net. 

Thinking about a mortgage? Explore our pre-approval checklist 

Now that you know what makes up a mortgage bill, you can move on to the next step of the homebuying process: preparing for mortgage pre-approval.

This is an initial step for first-time homebuyers where a lender reviews your financial information to determine how big of a mortgage you can afford. 

To learn more about how you can get a head start on buying your new home, check out our ultimate mortgage pre-approval checklist.

Disclaimer:

The content provided on this website is offered for educational purposes only. While we endeavor to provide accurate and up-to-date information, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability of the content for any purpose. Visitors are advised to consult with qualified experts before making any financial decisions or taking any actions based on the information provided on this website.

Categories
Real Estate

Pros and Cons of Real Estate Agents

real estate agent showing home

Buying a home is one of the most significant financial decisions of your life. It can also be complex and overwhelming. To navigate the process as smoothly as possible and make the best decision, you need to be aware of a seemingly endless amount of factors. 

That being the case, it’s smart to work with a trained and licensed real estate agent throughout the homebuying process. No matter how much you know about the housing market, construction, and negotiating — or how much you think you do — partnering with the right real estate agent can be a godsend when you’re buying your first home. 

With all this in mind, let’s take a closer look at what real estate agents are, what they bring to the table, and the pros and cons of hiring one to buy a new home.  

What is a real estate agent?

A real estate agent is a licensed professional who helps buy, sell, or rent properties for their clients. Real estate agents serve as intermediaries for buyers and sellers and provide expertise and assistance throughout the transaction.

When it comes to buying homes, the vast majority of consumers opt to join forces with real estate agents. In fact, the latest data reveals 86% of buyers purchase a home through a real estate agent or broker. What’s more, 89% of buyers would use their agent again or recommend their agent to others.

What are the benefits of being a real estate agent?

Before you decide to work with real estate professionals, it helps to understand more about the profession and the role agents play. 

Despite what you may see in the media, most real estate agents will avoid attempting to push you into a home you don’t want or scam you into agreeing to buy a property that isn’t the right fit for your needs. Most agents register through the National Association of Realtors and pledge to act ethically and professionally. Their reputation is paramount to their success. 

Having second thoughts about why someone would want to launch a real estate career? Let’s take a look.

Make your own schedule

One of the top reasons people work in real estate is to become successful and launch their own real estate business. When you have your own business and become your own boss, you can set your own schedule, control your working hours, and achieve a work-life balance. Real estate agents typically work flexible hours, giving them more of a personal life. 

Control your income

Real estate agents have unlimited income potential. In real estate, earning potential depends on having a solid business plan (such as working with home buyers or commercial real estate investors), operating in a desirable market, figuring out how to successfully navigate slow periods, and staying motivated to meet clients and sell houses.  

Help others 

Buyer’s agents typically love working with people and helping them land their dream homes. By working in real estate, agents can directly impact clients’ lives and improve their standard of living. It can be a truly gratifying line of work.

Why homebuyers use real estate agents

Buying a home is stressful. According to one recent report, top fears for first-time homebuyers include missing out on better options (40.4%), being unable to afford a mortgage (36.8%), and rising home prices (31.6%). Of course, the list goes on and on.

A good real estate agent serves as a go-to resource for homebuyers and helps to alleviate any potential uncertainty. The right agent will listen to all of your questions and concerns and help make the purchasing process easier, more predictable, and more enjoyable by supporting you from the beginning of your search to closing.

Search for properties 

As you begin house hunting, real estate agents can tap into multiple listing services (MLS) databases and other lead generation resources to help you find a home that matches your preferences and needs. 

Often, agents get exclusive access to new properties before they hit the general market. As such, you may be able to find homes for sale before other buyers even know they’re available. In real estate, timing is everything, so early access can be as good as gold.

Provide market knowledge

In addition to discovering properties, agents also have in-depth knowledge of their local real estate market. This includes things like sales data, neighborhood information, and pricing trends. Using this information, you can gain a better understanding of property values and market conditions, which should help you make more informed decisions.

Show properties 

Agents are responsible for finding properties and allowing buyers to visit different homes. As you continue your home search, your agent will let you into houses, give you tours, and help you answer any questions you might have. Spending time with the agent also helps them get to know you better, which makes it easier for them to recommend other properties that match your needs. 

Negotiate with sellers

Worried that you’ll have to negotiate to land your dream home? Don’t be. When you hire a real estate agent, they negotiate on your behalf, working to get the best possible deal on a property’s price and terms. 

Assist with contracts 

Real estate contracts can be very complex and full of legal jargon. Agents help you understand your contract inside and out and make sure you know your rights and obligations before signing on the dotted line. 

Liaison with other professionals 

Homebuyers are typically busy working professionals and must balance other family and work responsibilities while looking for a property to buy. Real estate agents can help you save time by working behind the scenes and looping in other professionals in their networks — like mortgage lenders, attorneys, property managers, appraisers, and inspectors — so you don’t have to. As a result, they can help keep the process moving forward while you manage your day-to-day responsibilities. 

Provide post-purchase support 

The first year of homeownership is challenging. It’s not uncommon for new homeowners to have questions about things like homeowners association (HOA) fees, what to look for in lenders, and what upgrades you need to make after you close. A great real estate agent will provide post-sale support and help you transition to homeownership. 

Remember, reputation is everything for real estate agents. The right agent understands this perfectly and will work tirelessly to help you make a wise decision and end up living in a house you love. Such an approach increases the chances you recommend your agent to folks in your own network when the time comes.

How to find a real estate agent

The agent you hire will have a significant impact on your homebuying experience. As such, it pays to take your time and conduct thorough research before choosing one. With that in mind, here are some tactics to consider as you hunt for a real estate agent. 

1. Ask for referrals 

Start by asking for recommendations from colleagues, friends, and family members with experience buying and selling property. You can also hop on to local message boards and ask your community for their advice. Whether you know them or not, other homebuyers can provide valuable insights and introduce you to reliable agents. 

2. Search online 

Unfortunately, referrals may not always be available in your area. For example, you may be moving to a new market where you don’t know anyone. Other times, you may want to start fresh with your own agent because you’ve heard horror stories about other agents. In these instances, you can use the internet to search for agents in your area on sites like Zillow and Trulia and read reviews about them. 

3. Contact local real estate offices

Another way to find a real estate agent is to visit a local realtor or contact one over the phone. An office manager will ask some basic questions and connect you with an agent who may be able to help. 

4. Attend open houses 

Another way to connect with real estate agents is to attend open houses in your target area. This will allow you to connect with an agent on-site. You never know when a simple decision to show up at an open house could change your life.

Best practices for working with a real estate agent

You can’t just hire any real estate agent and expect a productive, joyful experience. Keep these tips in mind to increase the chances you hire the right agent and end up buying your dream home.

Research thoroughly

Always take the time to research a potential agent — even if that person comes as a recommendation. Not only will you want to verify their licensing and credentials, you’ll also want to read some online reviews to make sure they can meet your exact needs. 

For example, not all agents are great communicators. If you’re not necessarily the most patient person in the world, you might want to work with an agent who instantly returns your calls and texts and also checks in regularly. In this scenario, try to get a sense of their responsiveness before committing. 

Interview the agent

After you’ve narrowed down your options, schedule a formal interview with a prospective agent. During the interview, ask about their experience and determine their overall knowledge of your local market. 

As a word of caution, be careful about working with new real estate agents who may lack experience. These folks may be unable to offer the same level of guidance and expertise as a seasoned veteran. 

Respect the agent’s time

Time is valuable for a real estate agent. So, if an agent clears an afternoon to arrange a series of home visits, make sure to respect their time by showing up, taking notes, and asking questions. Remember, agents don’t get paid until you make a deal.

Be prepared to sign an exclusive agreement

A real estate agent will usually ask you to sign an exclusive buyer agency agreement. Essentially, this document indicates that you agree to work exclusively with the agent or real estate brokerage and allow them to represent you in your property search and negotiations. 

This agreement outlines the terms and conditions and length of the arrangement, as well as the agent’s responsibilities and compensation. If you end up partnering with the wrong agent, you can always dissolve this agreement and find a new agent.

The pros of working with a real estate agent

At the end of the day, you have the freedom to decide whether to work with a real estate agent or handle the homebuying process yourself. Here are some of the main reasons why first-time homebuyers would be wise to work with an agent who knows the real estate industry like the back of their hand. 

Save time and money

There’s no getting around it: Real estate is hard work. A real estate agent will save you a significant amount of time during the homebuying process by recommending properties, coordinating visits, and handling complex administrative tasks.

In addition, using a real estate agent can potentially save you money. These folks can negotiate with sellers and their agents and use data to determine a property’s fair market value. In addition, real estate agents can access off-market or pocket listings that aren’t publicly available, which may offer better deals and reduced competition.

Receive guidance and support

Despite what you might see on social media, real estate is not simple. The truth is that most first-time homebuyers don’t have the experience necessary to navigate the buying process on their own. After all, buyers need to comply with tons of legal and financial requirements, which can be very time-intensive. Agents make this complex process easier to navigate by providing ongoing guidance and support until a deal is done. 

Get objective advice

One of the best reasons to use an agent is to receive objective advice about different properties. Agents can help you see the advantages and disadvantages of different places — enabling you to make decisions that aren’t heavily impacted by emotions. 

For example, a property you might see as a dream house an agent might see a money pit. A savvy agent will be able to ensure that you walk away with a house that you love and a commitment you can live with.

Leverage connections and resources

Agents often have real estate teams full of mortgage brokers, contractors, inspectors, assessors, and other professionals. As a result, they can usually recommend other trustworthy professionals throughout the homebuying process to help facilitate the real estate transaction. Since you’re going to be researching so many properties anyway, you might not want to spend your time finding a plumber. 

The cons of working with a real estate agent

Despite these advantages, working with a real estate agent can be challenging at times. Here are some of the potential drawbacks to working with a licensed buying agent. 

Pay a commission 

Real estate agents work for buyers. They often put in a ton of effort, so they don’t come cheap. Agents typically earn a commission of around 5% to 6% of a property’s sale price, with the buyer’s agent and seller’s agent splitting the fee. While you won’t have to pay your agent directly, the funds come out of the sale price, which could cause a seller to list their home for more money.

Before hiring a real estate agent, make sure you understand their commission structure. That way, you can avoid any surprises during the closing process. 

Avoid a conflict of interest

While it’s rare, an agent may encourage you to make a higher offer on a property in order to close a deal quickly and put more money in their own pocket faster. 

If you suspect the agent is acting unethically, remember that you don’t have to rush into a decision regardless of what the agent says. Ask for a comparative market analysis report to verify the market value and seek other opinions if necessary. You can also talk directly to the brokerage the agent works for. Of course, if you still feel uncomfortable with the agent’s actions, you can always walk away from the deal and find another agent.

Work around the agent’s schedule

Coordinating schedules and finding time to drive around and visit different properties with an agent can be challenging. Because of this, it’s a good idea to treat the house search like a part-time job and budget your time accordingly. Be honest about your schedule and maintain open channels of communication.

Trust the agent to handle negotiations

When you hire a real estate agent, you need to trust them to act on your behalf during negotiations and protect your interests. The agent will also be responsible for handling your sensitive personal information. 

With this in mind, proceeding with an agent you trust and feel comfortable working with at every turn is critical. Otherwise, you may have to switch agents or realtors during the house search — delaying your purchase and potentially causing you to miss out on properties you love. 

Looking to become a homeowner? Home Approach can help

Hiring a real estate agent is just one of many important decisions you’ll have to make during the homebuying process. Before you close on your new home, you’ll need to decide if you want a homeowners association (HOA), figure out how to secure financing, and determine what you want in a neighborhood, among countless other decisions. 

During this process, you’re bound to have some questions. Before starting your real estate journey, we recommend checking out our free guide for first-time homebuyers which explains everything you need to know about becoming a homebuyer, including tips on negotiating a deal, hidden homeowner costs, unforeseen challenges, and much more. 

Read the free guide today.

Disclaimer:

The content provided on this website is offered for educational purposes only. While we endeavor to provide accurate and up-to-date information, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability of the content for any purpose. Visitors are advised to consult with qualified experts before making any financial decisions or taking any actions based on the information provided on this website.

Categories
Homeowner Tips

7 New Homeowner Tips Don’t Want To Miss

Tips and tricks for today

Keep these new homeowner tips in mind as you continue your journey to homeownership.

When it comes to where you live, few things are more thrilling than transitioning from a renter to a homeowner.

While it’s easy to get caught up in the excitement when you move in to your new home for the first time, some homeowners bite off more than they can chew at first. 

Luckily, there are several practical steps homeowners can take early in the journey to save money, effort, and time in the long run.     

Tips for maintaining a good home as a homeowner

As a first-time home buyer, it’s impossible to know what it’s actually like to be a homeowner. Keep these tips in mind to avoid making the common mistakes that get new homeowners in hot water.

1. Don’t go overboard when it comes to personalization

You’ve just given up a significant amount of your life savings to cover a down payment, closing costs, and moving costs. It’s a lot of money any way you slice it.

Most first-time homebuyers are strapped for cash. Not only have their savings been exhausted, but their monthly expenses have also increased as a result of the additional costs associated with owning their new house. In addition to paying a mortgage, property taxes, and insurance, homeowners also need to cover the costs associated with all sorts of things — like cleaning out gutters, landscaping, replacing the water heater when it eventually fails, utility bills, and hiring a locksmith to change the locks.

Unless you’re keen on DIY projects, you may also have to hire electricians and plumbers to make sure your lights and faucets are all working as they should.

While everyone is looking to personalize their house and replace their apartment furniture with something more homey, that doesn’t mean you should go on a spending binge to update all these things at once.

Affording to stay in your first home is just as important as securing it in the first place, and no matter how gorgeous firm maple kitchen cabinets are, they aren’t worth endangering your new position as a homeowner.

Don’t rush. Give yourself ample time to calculate the costs of owning a home and manage your savings. For example, the existing kitchen cabinets should still remain in the home until you budget out the project and make sure you’ve saved enough money to make the upgrade.

2. Don’t ignore important maintenance 

Making ordinary repairs is one of the new costs that come with homeownership. If your roof leaks or your toilet backs up, you won’t be able to contact your landlord. This is why it’s so important to pay for a home inspection and show the report to your real estate agent, who can then use that information to negotiate with the other realtor to help you get a better deal.

While you should be cautious about spending money on non-essential upgrades, you shouldn’t ignore any situation that puts you in danger or has the potential to deteriorate over time (e.g., a faulty HVAC system should be fixed immediately). Procrastination can turn a minor issue — such as a clogged air filter — into a much bigger and more expensive one.

Again, having a property inspected before purchasing it can help you protect against maintenance difficulties down the road. You don’t want to move into a house only to find out you need to replace your thermostat the next day.

3. Don’t hire unqualified contractors

Make no attempt to save money by taking on home improvement projects that you are not qualified to tackle. This may appear in conflict with the first point, but it isn’t.

Your house is both a place to live and a financial investment. As such, it’s deserving of the same degree of care and attention as anything else you hold dear.   

There’s nothing wrong with doing your own painting, but if your garage doesn’t have wiring for an electric outlet, don’t make a hole in the wall and start messing around with copper wiring.

Hiring specialists to undertake tasks you don’t know how to do is the greatest way to keep your house in good shape while avoiding harming yourself or creating a larger issue. Also, make sure to check with the local building department and obtain any necessary permits before proceeding with any project.   

4. Don’t do your own taxes  

Even if you despise the idea of paying for an accountant when you do your taxes, it can be beneficial once you own a home.

Even if you’re penniless from the house purchase, don’t skimp on tax preparation. It’s a great idea to employ an accountant to guarantee that your tax return is finessed accurately so that your potential refund is maximized. Most people’s tax deductions are allowed to increase dramatically when they purchase a home.   

If you wish to do your taxes yourself, having your tax expenses carried out by a professional for one year can give you a template to utilize in future years.  

5. Keep receipts when you make future improvements

The money you spend on upgrades can be used to increase your home’s basis cost when you sell it, allowing you to maximize your tax-free earnings on the sale.

For argument’s sake, let’s imagine you bought a home for $170,000 in 2007, and it’s been your principal residence ever since. You’re planning to sell it this year for a price of $460,000 — a $290,000 gain.

But over the last 15 years, you spent $50,000 on in-home upgrades. If you’ve kept your receipts and stayed on top of your spending, all of a sudden you’ve spent $220,000 on your house instead of $170,000. So, you’d be hit with a $240,000 capital gains bill instead of a $290,000 bill — unless you buy a new principal residence with these funds, in which case you wouldn’t owe anything at all.

6. Understand the difference between home improvements and home repairs  

Regrettably, not all home expenses carry the same weight when determining the value of your home. The IRS considers repairs part and parcel of homeownership, as they retain the home’s original value while not adding to it. This may not always appear to be the case.

For instance, if you got a foreclosure and had to repair a lot of damaged systems, the home is worth more once you replace these items. The IRS doesn’t care because you earned a discount on the purchase price because of those damages.

Only renovations, such as a new roof or air conditioning, can help you save money on your taxes when you sell your house.

Consult IRS Publication 530 or your accountant if you have any questions about gray areas — such as remodeling your bathroom because you had to bust into the wall to fix some old, failed plumbing.

Also, don’t fool yourself into thinking it’s OK to spend money on something just because it’s a necessary “repair” when it’s actually a pleasurable enhancement. That’s not good for your bank account.

If you’re moving into your first house, you may want to consider working with a company like American Home Shield or Choice Home Warranty. By doing so, you won’t have to worry about paying for so many repairs when you’ve just moved in.

7. Buy homeowners insurance to protect yourself

Your mortgage lender will require you to get homeowners insurance that covers the costs associated with completely replacing the property in the event of a catastrophic loss. As a homeowner, though, that isn’t the only type of insurance you need.   

If you stay in residence with someone who depends on your earnings to pay the mortgage, you’ll require life insurance with that individual named as a beneficiary so that they can stay in the home if you die unexpectedly. Similarly, disability-income insurance will replace your income if you become unable to work due to a disability.   

Additionally, once you own a house, you have a lot to lose in the case of a lawsuit, so be sure you have adequate auto insurance coverage. If you work for yourself, consider forming a company, which will provide you with significant legal asset protection.   

While you’re at it, consider buying umbrella insurance to cover the gaps left by your previous policies. An umbrella policy can help take up the slack if you’re in a car accident, and you’re at fault with a fine of $1.2 million, and your auto insurance policy only covers the first $260,000. These policies usually come in $1 million increments.

Insurance companies you might want to check out include Liberty Mutual, Progressive, and Geico. These companies have received great reviews from thousands of customers around the world; you shouldn’t hesitate to work with them.

You’ll also want to make sure you’re also protected by installing a home security system. If that sounds appealing, consider working with leading home security companies like ADT and Vivint. Both have great promotions for new customers and flexible packages to meet your needs.

What are the benefits of proper home maintenance?

There are several wonderful benefits to being a homeowner, yet some go unnoticed or unreported. Let’s take a new look at 10 of these benefits, including several that you might not be aware of — particularly if you’re a new homeowner. 

Tax advantages   

You can deduct both property taxes (up to $10,000) and mortgage interest from your yearly income taxes as a homeowner. If you’re a first-time home buyer, you’ll reap more benefits as the majority of your mortgage payment goes toward interest.   

Increase in value   

Houses usually appreciate in value over time. The Price-Shiller Index explains that the average yearly increase in the cost of existing residences was 3.4 percent from 1988 to 2009.

A $210,000 house becomes a $546,313 house after 32 years — an increase of 173.7 percent. With a yearly increase rate of 3.5 percent, a $500,000 property today will be worth $1,373,293 in 20 years.   

Inflation protection   

Currently, inflation is much higher than it usually is. When you buy real estate and are able to lock into a low mortgage rate, you can protect against inflation with fixed costs. If you don’t own a house now, not to worry; even if you get a mortgage with a higher rate today, you can always refinance when rates go down in the future.

Credit enhancer   

Your debt payment history accounts for the majority (35%) of your FICO score, which companies evaluate to figure out the terms and rate of a loan. Your FICO score increases if you proceed to make a mortgage payment in full when it’s due.  

That said, your score will fall if you fail to pay on time. A 30-day late mortgage payment, for example, may lower your credit score.

If you’re ever struggling to make your payments, consider refinancing your mortgage through Quicken Loans, Amerisave, and LoanDepot. These loan organizations are certified by Better Business Bureau; all three of them have an A+ rating. Also, having more than 3,500 customer reviews on the popular platform Trustpilot, all three lenders score about 3.8 out of 5 stars.

It can help you establish equity

Let’s say you put down 20% to buy your home, and the lender is financing the rest. Each payment you make on your mortgage helps you build more equity. For many homeowners, the goal is to get to 100% equity one day.  

Final thoughts

When you’re buying a home, creating a budget and sticking to it will help you save cash, time, and effort in the long run. To make sure you don’t buy something you regret, it’s important to pay for a home inspection and share the results with your realtor because the ultimate cost of a new home includes many hidden costs.

As a renter, you may not have been aware of how much it costs to own a property. When you buy your house, your taxes will change. As such, it’s critical to get familiar with the tax regulations that apply to homeowners or, better yet, engage an accountant.    

The enormous independence that comes with owning a home comes with obligations. By managing your funds effectively, you will have the money you need to keep your house in a solid state to secure your investment and keep occupants safe.

Whatever you do, don’t let the thrill of being a homeowner result in making poor decisions that threaten your personal safety and your financial situation. By keeping these tips in mind, you can move into your new home with confidence and begin your journey to financial freedom.

Disclaimer:

The content provided on this website is offered for educational purposes only. While we endeavor to provide accurate and up-to-date information, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability of the content for any purpose. Visitors are advised to consult with qualified experts before making any financial decisions or taking any actions based on the information provided on this website.

Categories
Homeowner Tips Windows

Window Replacement: The Best Window Buying Guide

new window fitting

When it comes to window replacement in your home, the choices can quickly become overwhelming whether you’re a first-time homebuyer or a seasoned veteran.

There’s no doubt that’s a good thing. But there are a wide variety of styles, materials, glass options, grille styles, custom designs, as well as a plethora of colors and textures.

With all of these choices, it can be difficult to settle on the perfect window installation. To get the most out of your search, it helps to know what to look for and what questions to ask. 

To help you select the best windows for your needs, here’s a convenient guide to window replacement. 

Is it worth it to replace your windows?

It’s economical to replace outdated windows that make your home uncomfortable, look outdated, lessen its curb appeal, and require a lot of repairs.

Low-maintenance, high-quality, and energy-efficient replacement windows — like Pella windows or Andersen’s ENERGY STAR-certified windows — offer a variety of benefits and can add great value to your home. The benefits of home window replacement include adding character to your home, increasing its value, and reducing your energy bills:

  • Greater energy efficiency. DIY repairs won’t make your windows more energy efficient, even if you can fix them for a short time. You can save money over time and reduce your impact on the environment by using less heating and cooling energy when you install energy-efficient windows in your home.
  • Increased comfort. Replace your old windows with energy-efficient replacement windows to reduce your energy bills and keep your home comfortable throughout the year. New replacement windows are better insulated than those made ten years ago, and you can have fresh air flowing into your home anytime with easy-to-open screened replacement windows.
  • Superior durability. Through the use of modern technology, various window manufacturers have been able to design quality windows that last for over 20 years with the right care. It’s a sound investment to upgrade your windows with new ones that will continue to pay dividends for decades to come.
  • Lower maintenance. Replacement windows come in a variety of styles that are easy to clean from the inside. Replacement windows are very low maintenance so they remain in good working condition for a long time. Painting old wood windows every few years and maintaining them can cost a lot of money and time due to rain, snow, and ice damage — particularly depending on the number of windows you have. Also, old windows — particularly single-pane windows — tend to break and are difficult to fix or replace due to their hardware. 
  • Increased home value. After a window replacement project, your home becomes more attractive, more secure, quieter, and more energy-efficient, which increases its appeal to potential buyers. If you replace your windows & doors, the increase in the value of your home will more than offset the costs.
  • Improved appearance. Choosing the right windows for your home can refresh the appearance of your home. Whether you are looking for single-hung windows, double-hung windows, triple-pane or double-pane windows, storm windows, fiberglass windows, or accent windows, you will be able to find them in a variety of shapes, sizes, and frame colors. By doing so, you can ensure your new windows will fit the existing openings and give your home a distinctive look — whether you’re in New York, Florida, or California.

How to budget for window replacement costs

The cost of a new window depends on many factors. Window costs are affected by several factors, including brand name, quality, material, and size.

The average cost of replacing a window is between $375 and $800. Window costs can range from $375 for basic vinyl frames to $1,275 for higher-end wood windows.

A contractor or supplier’s estimate will allow you to determine a specific price. The average prices above, however, can still be used to draw up a rough budget.

No matter how well you budget, you might still find that you can’t afford to replace your windows. Here are some options to consider: credit cards and home equity line of credit.

Credit cards with introductory zero interest rates can help you finance the cost of new windows for your home. Credit card financing is available at many large home improvement stores. 

Use a credit card to pay for your window and make sure you can repay the full amount before the introductory period ends. If you don’t, you’ll be charged full interest on the original balance.

You can also borrow money from your bank using the equity you have built in your home. Typically, home equity lines of credit are large loans that can only be used for specific expenses, such as home improvements or medical bills.

Learn about the different types of windows

You can choose from a wide range of window styles and glass patio doors that serve different functions in different rooms and locations of your home. There are many styles and types of pane glass available today, including double-hungs, casements, awnings, bows, bays, slidings, awnings, picture windows, and a wide variety of custom shapes.

Single-hung and double-hung windows

Most homes have single-hung or double-hung windows. In general, these styles are popular because of their low cost and convenience. Their name comes from the fact that they have two panes, one on top of the other. Most are equipped with a simple locking device and can be opened by lifting the bottom panel and frame.

Additionally, double-hung windows have an adjustable top panel that slides forward and backward. The top panel can be removed in hot weather to provide better ventilation. A double-hung window is also much easier to clean. 

In cases where windows are located above ground level, this is a great solution that eliminates the need for expensive (and dangerous) window-washing services. Single-hung and double-hung windows only differ in this top panel. 

Casement windows

Most casement windows swing in or out, as opposed to sliding up or down. There’s less effort involved in operating casement windows because they have a “crank” handle. 

Casement windows with push-outs don’t use cranks, but they’re not common. Due to the fact that the entire window opens rather than just a section, casement windows provide excellent ventilation as well. Another advantage of casement windows is their size. When it comes to making a statement, casement windows are one of the best options.

Sliding windows

In sliding windows, there are one or more panels that slide horizontally along an upper and lower track. You can easily open half the window to allow air to flow through. In contrast to the other windows, they aren’t as airtight.

Awning windows

Kitchens and bathrooms are perfect places to use awning windows since they open at the bottom and hinge at the top. So, they’re the opposite of hopper windows (discussed in further detail below) and open from the top and hinge from the bottom, which makes them ideal for basements.

Picture windows

The best way to highlight a gorgeous exterior view is with picture windows. Although they don’t open, they can add a great deal of charm to your home. You can think of a picture window as a framed painting on your interior walls. The painting’s subject? Stunning views.

Arch and radius windows

Arch and radius windows are extremely versatile. This type of window is characterized by a rounded, half-circle top and a square or rectangular bottom. 

You can add soft curves to the design of your home with this type of window because it lets in plenty of natural light. Traditional doors and windows also have horizontal and vertical lines that complement each other. You can make a statement by installing an arch radius window over an existing window.

Hopper windows

In the basement, the hopper window reigns supreme. Even though these windows are great in basements, they are also useful in garages and attics, as well as any room that requires light and ventilation. In addition, it’s a smart choice for spaces that have limited window space because of its “inward-opening” feature. 

Bow and bay windows

Bay windows contain three to five windows at angles of 25 to 45 degrees, while bow windows contain three, four, or five windows at angles of 10 to 15 degrees. Whether you create a new reading nook or update an existing one, both window styles make a beautiful focal point for any home. Whether you have a bow window or bay window, you can add end vents in either double-hung or casement styles.

Garden windows

A garden window is basically a mini bay window designed to house plants. Their name comes from the fact that they protrude from the inside of your home like tiny greenhouses. By keeping plants and herbs on the shelves, you get sunlight into your home while being able to see them from the outside. 

Adding garden windows to a room can make it feel more spacious. In kitchens and living rooms, they can be installed with side panels that offer ventilation to the plants.

Custom windows

Custom-built windows are another option if the other windows mentioned in this second don’t suit your needs. When you order custom-made windows, you have the option to choose the shape, size, and angle of the frame.

If you want a truly unique look for your home, custom windows are a great choice — particularly if you’re home is a new construction. That said, custom windows are generally more expensive than standard windows.

Get familiar with various frame materials

Choosing the right materials for a window frame can influence its thermal performance, but it can also influence its thickness, weight, and durability. Standard window frame options include:

  • Wood. Wood-framed windows are renowned for their aesthetic value. They’re available in a variety of shapes and sizes. Maintaining them properly can extend their life and reward energy-conscious homeowners with high R-values (a measure of thermal resistance).
  • Wood clad. Wood-clad windows provide warmer interior appearances and superior weather resistance compared to traditional wood-framed windows.
  • Aluminum. Unlike wood-framed windows, aluminum windows are strong, lightweight, and durable. Aluminum, however, is prone to condensation and mold, which can harm your health.
  • Vinyl. Vinyl is a low-maintenance, long-lasting window material that resists moisture. Additionally, vinyl windows can be customized in an unlimited number of colors, making them less expensive than wood windows.
  • Fiberglass composite. Fiberglass composite windows offer the fine appearance of wood but with less hassle. In high heat or freezing cold, they don’t warp, sag, or become brittle.
  • Composite: A composite window combines plastic with organic materials to create a strong, energy-efficient window. You can order custom colors if none of the stock colors appeal to you.

Best practices for buying replacement windows

Almost any large city has an abundance of window companies, which makes the replacement window industry highly competitive.

During the process of replacing your windows, salespeople may mislead you about the amount of money you can save (through energy savings). And not every company is completely honest with its estimates. And does “lifetime warranty” really mean lifetime warranty?

Doing your research and shopping around pays off. Here are a few tips to get you started:

  • Get five or more estimates. Nobody enjoys getting estimates, but they’re really important when it comes to adhering to your budget. Make sure you get at least five free quotes. A wider range of prices puts you in control. The good news is that getting an estimate for replacement windows is easy. It is rare for companies to charge for estimates, and salespeople usually work around your schedule for in-home consultations.
  • Know your target. Never let a salesperson tell you which windows need replacing. Even honest salespeople may feel tempted to add a few more windows to the estimate.
  • Find off-brand windows. Rather than just looking at expensive name brands, ask the salesperson to show you a wide variety of window manufacturers.
  • Sit on the estimate. Be careful not to act on the estimate right away. Before committing, you may be able to negotiate a lower price. There’s a lot of room for negotiation in this industry.
  • Consider inexpensive windows. Due to fierce competition among replacement window manufacturers, you can find cheap replacement windows that still meet your needs.

Replacement window construction

A window frame’s material will also have a significant impact on its efficiency. Frames made from vinyl with insulation and fiberglass perform better than those made from wood, wood-clad vinyl, and vinyl without insulation. Compared to any of the other materials, aluminum and steel perform the worst.

Sash-only, insert windows, and full-window replacements are the three types of window replacements.

  • New jamb and sash liners are included in sash-only replacement kits for improved operation and durability. Installation is easy, but they should only be used in windows that are in good shape otherwise.
  • Often called retrofit windows or inserts, you install them inside existing window frames. It’s only necessary to remove the window stops and old sashes. The existing moldings, both inside and outside, will be fine. It’s easier, less expensive, and less messy to install inserts if the old frames are in good shape, rot-free, and square. The sills are normally custom-made to match the exact dimensions of the openings and angle of your existing sills. One advantage of retrofit windows is they’re available with tilt-in cleaning.
  • Remove all of the existing components of the window before you replace it with a new one, including the casings, frames, sashes, and exterior trim. You can correct an old window frame that’s deteriorating, is out of square, or a new window style or size using this method. In spite of the increased labor, cost, and disruption involved with a full-frame replacement, you can better insulate around the window frame, which is one of the most common places where energy leaks occur. You can spray closed-cell foam insulation between the studs and the window frame after removing the trim. You can spray closed-cell foam insulation between the studs and the window frame after removing the trim. As a bonus, you don’t lose any glazing area with full-frame replacements.

Window shopping: Which style and material is right for you?

There are many types of windows and materials available on the market. Each of these variables has a different purpose. 

While you should consider many factors when choosing your ideal windows, the final choice ultimately depends on your taste, perspective, and understanding of your needs.

Voilà, you now have all the information you need on window replacements for your next home renovation project. Here’s to taking your house to the next level with new windows!

Disclaimer:

The content provided on this website is offered for educational purposes only. While we endeavor to provide accurate and up-to-date information, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability of the content for any purpose. Visitors are advised to consult with qualified experts before making any financial decisions or taking any actions based on the information provided on this website.

Categories
Homeowner Insurance Savings Tips Warranty

Home Warranty vs. Home Insurance

appliance protection

What’s the difference between a home warranty vs. home insurance?

Imagine you’re preparing to make an offer on a new home, and your agent suggests you request a home warranty from the seller. As a condition of your mortgage, your lender has already informed you that you must obtain homeowner’s insurance.

Doesn’t it seem redundant to have both?

The truth is it isn’t.

A home warranty and a homeowner’s insurance policy serve two entirely different purposes despite the apparent similarity between the two. Homeowners — and especially those who are about to buy real estate for the first time — need to understand the differences between the two so they can determine whether they require one, the other, or both.

Home Warranty: The Basics

An independent governing body in each state regulates companies within the home warranty industry. Even though warranties function in a similar manner to insurance, they aren’t the same thing as an insurance policy. You can use a home warranty to repair, replace, or service your electrical system, water heater, plumbing system, central vacuum system, and kitchen appliances. Depending on the policy and service contract you get, home warranty coverage can also include things like air conditioning units, HVAC systems, septic systems, and garbage disposals.

Purchasing a home warranty can be particularly appealing for homeowners who lack the financial resources to cover unexpected, expensive repairs or who lack the time to research reputable contractors. Home warranty providers give these homebuyers the peace of mind that comes with knowing they have comprehensive coverage if they buy a house and experience 10 major appliance breakdowns through normal wear within a few months.

In some cases, however, homeowners may save more money in the long run without a warranty, especially if they own newer, higher-quality home appliances and built-in systems unlikely to break down in the near future.

When you notice a malfunctioning appliance or home system and have a warranty, you should file a claim with your service provider — like American Home Shield (AHS), Cinch, or Liberty Home Guard, three of the best home warranty companies — as soon as possible to request service. That’s because some companies won’t accept your claim if the covered item hasn’t worked for a while. Upon request, a technician will come to your house to diagnose the issue and see if it’s a covered repair. If not, you may have the option to purchase add-on coverage.

Home Insurance: The Basics

Home insurance is home protection that covers big-ticket items. You can get home insurance for roof leak coverage. You can also use it to cover damage from major accidents, bad weather, and more. Depending on the plan option you select, the policy will likely cover replacements and repairs in the case of theft, flooding, and fire.

In most cases, lenders require homebuyers to get home insurance when they get a mortgage. You’ll pay different amounts depending on the bank’s requirements, your own preferences, and what’s estimated to cover your home if any of the above happens.

The price of home insurance varies and can also differ based on where you live. In most cases, the insurance company gets paid directly by the owner each year. Sometimes, insurance premiums are tacked onto mortgage payments.

The Difference Between Home Warranty and Home Insurance: Coverage and Costs

Coverage

What does a home warranty cover?

Most home warranties cover the main systems in a house — like malfunctioning garage door openers, built-in microwaves, ceiling fans, water dispensers, sump pumps, exhaust fans, ductwork, icemakers, and cooktops. Home warranties can also cover large appliances like dishwashers, heating systems, air conditioners, ovens, refrigerators, washers, and dryers.

There are different home warranty plans that offer coverage on all or some of these things. As you shop for a plan, make note of any exclusions in each policy to determine what your coverage limits and coverage options are, whether you need to purchase additional coverage, or if it’s a complete home warranty or a basic plan.

Damage caused by malfunctioning systems or appliances isn’t covered by home warranties. For instance, if a toilet leaks, the home warranty company will pay to fix the toilet but not any damage to the house caused by the leak. On the other hand, homeowners insurance would cover this cost.

What does home insurance cover?

There are six main areas of coverage in most home insurance policies. Let’s take a look at each one:

  • Dwelling: In dwelling coverage, you get cover for your house and its structures, including the interior, the exterior, the foundation, and cabinetry.
  • Coverage for other structures: You’re covered for detached structures like fences, sheds, and garages.
  • Personal property coverage: Covers items in your home from covered damages. It usually pays for the replacement of the damaged item or its depreciated value.
  • Loss of use coverage: If you have a disaster that damages your house and you have to move temporarily, loss of use coverage pays for your living expenses.
  • Liability coverage: This covers you if you cause an accident, damage someone else’s property, or cause bodily injury.
  • Coverage for medical payments to others: If someone gets hurt on your property, insurance covers the medical bills.

Some home insurance companies offer endorsements to round out your coverage. The most popular endorsements are identity theft, earthquakes, and backup water.

Cost

Home Warranty Cost

Most home warranties are 12-month contracts. Unlike homeowner’s insurance, you don’t have to get a warranty to get a mortgage.

It’s an optional purchase, usually after you’ve bought a house, but it’s a smart one. For an additional fee, you can add coverage for items like roof leak repairs or pools and spas to your home service plan.  All of the fixes come with a workmanship guarantee.

No matter which plan you select, you will have to pay a small service call fee when a technician comes to repair covered appliances.

Home Insurance Cost

Most banks require you to obtain home insurance before issuing a mortgage on a home. You will also most likely have to pay for your home insurance as part of your mortgage payment, at least for the first year. 

The average cost of homeowners insurance is $1,312 per year, though this can vary widely from state to state and depends on which coverage plan you choose. You’ll have to renew your policy each year. 

When your insurer approves your claim, you’ll have to pay a deductible. But when you have a comprehensive plan, the policy will cover any additional costs. When it comes to home insurance comparisons, you’ll want to do your research since different companies offer different rates and deductible requirements.   

Home Warranty vs. Home Insurance: How Do They Work? 

How a Home Warranty Works: Example

Here’s an example of how a home warranty could be useful.

Consider a scenario where one of your covered systems — your dishwasher — stops working because of plumbing stoppages. You would:

  • Report broken or damaged covered items to your warranty provider.
  • Pay a service fee.
  • Let the warranty company send out a technician to fix the problem. 

How Home Insurance Works: Example

Here’s an example of how you can use your homeowners insurance.

Let’s say your fence collapses during a storm. You file a claim with your insurance company. Depending on the damage, they may request photos or send an adjuster out. 

You will receive a check from your insurance company for the full repair amount. They’ll subtract your deductible from the total cost. Once your insurance company determines the damage’s estimated cost, it will send you a check for the full amount. Then, you can schedule repairs when it’s convenient for you.

Do You Need Both Protection Plans?

It may be necessary to purchase both home insurance and a home warranty to protect the structure and systems of your home — particularly for the first year or two you live in the house. If you have home insurance, you won’t have to pay high repair costs if the house’s structure begins to show signs of damage. 

A home warranty can help cover the cost of repairs or replacement if a malfunctioning appliance or system damages your home’s structure or belongings. Consider purchasing a home warranty along with your home insurance policy. Together, they’ll offer protection for all parts of your home.

When you’re ready to buy a home warranty, research your options and check with the Better Business Bureau (BBB) and read home warranty reviews to make sure the vendor is reputable. Ask for a free quote and shop around to make sure you’re getting the best deal.

Here’s to picking the best warranty for your unique circumstances!

Disclaimer:

The content provided on this website is offered for educational purposes only. While we endeavor to provide accurate and up-to-date information, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability of the content for any purpose. Visitors are advised to consult with qualified experts before making any financial decisions or taking any actions based on the information provided on this website.

Categories
Real Estate

How To Win a Bidding War on a House

Bidding war for sale sign

Wondering how to win a bidding war on a house? You’re in the right place.

Let’s say you’re a first-time homebuyer who’s been looking for a dream home and you’ve finally found it after attending an open house. Congratulations!

Unfortunately, once you make a bid, you discover another potential buyer has also submitted one. In the blink of an eye, you find yourself in a real estate bidding war.

Many buyers have found themselves in this situation due to the housing market trends over the past year. Demand for housing has far outpaced supply, creating a seller’s market where many homes sell above asking price and many buyers make cash offers. That’s why most homes end up in bidding wars.

Yet, even with all the obstacles that may come your way, it’s still possible to get your best offer accepted despite other buyers bidding on the same home. You can win a bidding war on a house by making your offer stand out in today’s real estate market by implementing a few strategies.

1. Have your pre-approval letter in hand

Getting a mortgage preapproval from a lender before you begin home shopping is possible if you qualify. It is important to understand the difference between prequalification and preapproval. Often, prequalification is based on self-reported information about your personal finances and your income.

By contrast, a preapproval is based on your W-2s, bank statements, credit score, and other official documentation. This approval of your finances is just a first step; underwriting, which is a more comprehensive vetting process to determine your mortgage rates and how much you can borrow will still be required before you can close on your home loan.

If you’re pre-approved and are going up against bidders who aren’t, sellers may be more interested in working with you, even if your purchase price offer is slightly lower.

2. Be negotiable with contingencies

In home purchase contracts, contingencies allow buyers to back out of the sale if certain conditions aren’t met. However, you’ll want to be careful when using them during a bidding war — even if your bid is over the list price.

Don’t add too many conditions or demands to your offer. In order to be competitive, you might want to forget about any home inspection contingencies. While you certainly want to inspect the home to make sure it’s in good shape after you put down an earnest money deposit and have a tentative deal, you shouldn’t expect that the seller wants to cover fixes.

3. Use an escalation clause

An escalation clause is a clause that allows you to increase your offer’s price can ensure that you win the house without overpaying.

If there’s a bidding war, an escalation clause enables the buyer to increase their offer up to a certain point. The escalation clause specifies that the buyer will pay a certain amount for a home, but if the seller receives another offer letter from a competing homebuyer, the buyer will raise their highest offer by a certain amount.

Let’s say you find yourself in a bidding war for a home in upstate New York that costs $200,000. You make an offer of $150,000 with an escalation clause stating you will outbid any competing offer by $5,000 up to $200,000. As soon as another buyer makes a $150,000 offer, your offer will automatically be increased to $155,000. In contrast, if someone later offers $200,500, you’d lose the bidding war.

With escalation clauses, you can compete in bidding wars without having to worry constantly about being outbid. You can determine ahead of time what you’re comfortable with and make sure you don’t pay more than you have to in order to beat your competition. The most important thing is to keep in mind that not all homeowners are willing to accept offers with escalation clauses, but you should certainly try.

4. Write a personal letter

Adding a human touch to your offer price may convince the seller to accept it over another, even if it is not the highest one. These are sometimes called buyer “love letters” and often include an explanation of why they’re passionate about buying the home.

It’s common to use love letters to win a home sale in a competitive housing market. If a seller feels an emotional connection to their property, knowing the person they sell it to will take good care of it could make the deal go your way.

You should, however, be very cautious when writing a personal letter. In your letter, revealing personal information could have a negative impact on fair housing if it influences the seller’s decision. In fact, the National Association of Realtors forbids Realtors acting as buyer’s agents from delivering such letters to sellers.

5. Work with an experienced real estate agent

Working with a real estate agent to help you win your bidding war is a smart move. They have the experience and skills necessary to help you succeed. Additionally, they have market knowledge, which is crucial when it comes to determining a home’s fair market value.

When bidding wars happen, buyers are prone to making risky financial decisions. When you hire an agent, you can rest assured that you will not offer more than the house is worth or more than you can afford. Throughout the process, your agent will remain level-headed and ensure that all decisions, including when to schedule the closing date, are made for your benefit.

You can get crucial advice from an agent, — such as whether you should waive a contingency — and they’ll ensure that the seller and listing agent aren’t taking advantage of you. Through their connections within the industry, they may even be able to find out what your competition is offering.

The best part is that agents are paid out of the sales price of the home. For buyers, representation is free.

6. Be flexible on the move-in date

Homebuyers who are new to the market and those who have already sold their previous home might be able to negotiate with the sellers about their move-in date. 

When a seller is concerned about potential delays for a new home, they may request more time.

If this is the case, they could go through the closing and then rent the house back from you for a few weeks or months. It may be more valuable to have this flexibility than to submit a higher bid for the property.

7. Increase your down payment

Increasing how much you’re putting down on a home can be extremely helpful if you’re up against another buyer. In the event that a bidding war takes place and the price exceeds the appraisal value, a higher down payment will reduce the amount the bank will need to lend.

Be sure to back up your claim with financial proof in addition to a verbal promise to increase your down payment. You can demonstrate your financial readiness by presenting documents such as pay stubs, tax forms, and your 401(k) balance.

The bottom line

In today’s competitive, fast-paced real estate market, there are no guarantees. But that doesn’t mean you should sit back and wait. Instead, take control of your fate and ensure that your offer is as aggressive and attractive as possible. With the right approach, you’ll be in your dream home before you know it.

Disclaimer:

The content provided on this website is offered for educational purposes only. While we endeavor to provide accurate and up-to-date information, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability of the content for any purpose. Visitors are advised to consult with qualified experts before making any financial decisions or taking any actions based on the information provided on this website.

Categories
Homeowner Savings Tips

Spring Home Checklist & Top Tips

Home spring flower vibes

2024 Edition

Advertising Disclosure: We may receive compensation from the products and services mentioned on this page, but the opinions expressed are our own.

As the days grow longer and warmer, homeowners across the country are turning their attention to spring home maintenance.

After a long winter, it’s important to take the time to make sure your home is ready for the warmer weather season ahead. Not only will this help maintain your home’s value, it can also save you money in the long run by preventing costly repairs.

In this blog post, we’ll explore some of the key spring home maintenance tasks that every homeowner should consider.

1. Inspect your roof

Winter weather can be tough on your roof, one of the first items on your spring cleaning checklist should be checking for any roof damage as soon as possible. Look for damaged or missing shingles, cracks, and leaks. Addressing any issues early can help prevent further damage and save you money in the long run.

If you’re not comfortable inspecting your roof yourself, consider hiring a professional to do it for you. Normally, roof repairs or replacement is one of the highest ROI home improvement projects you can take on.

2. Clean gutters and downspouts

Clean gutters and downspouts are essential to the health of your home. Over the winter, debris such as leaves and twigs can accumulate in your gutters, which can lead to clogs, mildew, and water damage.

Use a ladder to access your gutters, and remove any debris by hand or with a garden hose. Once you’ve cleaned your gutters, make sure your downspouts are clear as well. If you’re not comfortable cleaning your gutters yourself, consider hiring a professional to do it for you.

3. Protect what matters most

Having peace of mind in the down economy starts with knowing your home and family are better protected from catastrophe.  Whether it’s burglary, intrusion, fire, or any other environmental disaster, home monitoring services are critical and serve as your eyes and ears when you need it most.

Luckily for you, ADT, the #1 Smart Home Security provider in the U.S., is currently running a special promotion to receive a FREE* installation of a Google Nest Doorbell. ADT also offers a 6-Month Money Back Guarantee** to ensure that you are satisfied with your purchase.

Are you aware that you will likely be able to save a nice chunk off of your home insurance premium after you install your new security system? Most insurance carriers provide a discount specifically for having home security.

So, ready to step it up for your ultimate peace of mind? Make sure your loved ones are safer and that you’re better protecting the largest investment of your life. Take advantage of this special promotion, and get a FREE quote from ADT today.

4. Check your HVAC system

Your heating, ventilation, and air conditioning (HVAC) system has been working hard all winter, so it’s important to have it serviced by a professional to ensure that it’s working efficiently.

A professional HVAC technician can inspect your system, clean or replace air filters, and perform any necessary repairs. This will help save you money on your energy bills and extend the life of your system.

Spring is the perfect time of the year to check your air conditioning unit. The last thing you want is to learn the hard way that your air conditioner isn’t working during the dog days of summer.

5. Inspect your windows and doors

Windows and doors can be a major source of energy loss in your home. Check for any cracks or gaps in your windows and doors and seal them with caulk or weatherstripping. This will help keep your home cool in the summer and warm in the winter, reducing your energy bills.

6. Maintain your lawn and garden

Spring is a great time to get your lawn in shape and touch up your garden. Regular maintenance can help prevent costly landscaping issues and increase your home’s curb appeal. Consider hiring a professional landscaper to trim trees and shrubs, fertilize your lawn, and plant new flowers and plants.

7. Shop home insurance quotes

Let’s face it: Everyone who owns a home needs homeowners insurance. But how often have you actually used your insurance? Probably not nearly enough to make up for the cost year after year.

Here’s something most people don’t know about home insurance: It’s actually one of the easiest ways homeowners can save.

Homeowners insurance is actually pretty inexpensive but most people are paying far too much. In fact, most homeowners can save up to thousands off their annual bill for the same, or even better coverage by using this popular website.

In around two minutes, you can get quotes from the top insurance providers that ultimately compete to give you the lowest rate possible — allowing you to get a big discount on securing great coverage. Many folks report they’re able to get huge savings just by using this site to help reduce their bill for free.

8. Test your carbon monoxide and smoke detectors

Carbon monoxide and smoke detectors are essential safety features in every home. Make sure that your smoke and carbon monoxide detectors are working properly by testing them regularly. This is a simple step that can save your life and protect your home.

9. Check for water leaks

Water leaks can cause significant damage to your home, so it’s important to check your pipes, faucets, and toilets for any leaks. Look for signs of water damage, such as water stains on walls or ceilings, and address any leaks as soon as possible. This will help prevent water damage and save you money on your water bills.

10. Clean your dryer vent

A clogged dryer vent can be a fire hazard, so it’s important to clean it regularly. Remove the vent from the back of your dryer, and use a vacuum or brush to remove any lint or debris. This will help prevent fires and extend the life of your dryer.

While you’re at it, check out your washer to make sure it’s working properly. If not, it may need a tune-up.

11. Inspect your sump pump

If you have a basement, you likely have a sump pump to prevent flooding. Inspect your sump pump to make sure it’s working properly. Pour a bucket of water into the sump pit to make sure the pump turns on and removes it.

12. Look for termites

March through June are prime season for termites and critters to thrive and begin tearing through the wooden structures in your home.

If there are tiny insects flying out of the exterior structure of your home, they could be termites. Also, if your next-door neighbors suddenly put up a carnival-like tent to get rid of termites, you’ll want to call a licensed pest control professional as soon as possible.

13. Examine your water heater

Nobody wants a leaky water heater. If it’s not working properly, your water heater could damage the floor it sits on and cause you to make many more costly repairs. If you see any water or signs of rust around the water heater, you’ll want to call a professional to inspect it.

These small leaks and signs of rust could eventually cause sediment buildup and major problems in the future if they’re not taken care of right away.

14. Explore for leaks

Basements and attics are usually the main points of entry for leaks. It’s extremely important to inspect each with great caution to make sure winter didn’t leave small holes behind that water can work its way through.

If you smell or feel musty when you enter the attic or basement, those are clear signs that water may be making its way inside. Check the walls, ceiling and other materials for discoloration and any signs of water stains. If you find any, call a professional immediately.

15. Don’t let pricey home repairs kill your budget

Why is it that things always seem to break when you need them the most? 

Don’t fall victim to faulty appliances and costly home repairs anymore. Instead, invest in a home warranty, which covers the gaps in most traditional home insurance policies. In the long run, you are likely to save thousands of dollars from having to repair those old appliances. 

Enter American Home Shield, the USA leader in home warranties. They’ve been protecting people from such nightmares for over 50 years. 

Act now and you can receive $100 off of your new home warranty plan. Claim your FREE quote today.

16. Clean your furnace

Chances are great that your furnace and fireplace have seen some serious usage during the last few months. Since spring has sprung, you’re probably not going to be using your furnace system for some time.

Spring is the perfect time to clean the filter system, blower, and motor of your furnace system. It’s also a great time to call a chimney sweep before the summer sun beats down and makes cleaning a bigger hassle than it already is.

You may not need to conduct all the repairs on this spring home maintenance checklist, but it’s always good to take a look at everything to make sure you have all the bases covered.

17. Replace old inefficient windows

Join the growing group of Americans who are finally smartening up by saving hundreds of dollars on their energy bills just by replacing their house’s windows.

Believe it or not, this is one of the greatest and quickest investments you can make in your home because of the large savings energy efficiency creates.

In fact, the U.S. Department of Energy proved you can save hundreds of dollars per year when you upgrade to new energy-efficient windows — like these from USA replacement window leader, Renewal by Andersen.

Act now to get a special Buy one get one 40% off plus an extra $200 off.* This is the best promotion available and it is yours today! Request your free quote while this offer is still available.

*Minimum purchase required, see offer for details.

18. Test your irrigation system

Your irrigation system has likely been stuck inside the frozen ground for a few months, which can be extremely harsh on these brittle pipes that help give life to your lawn and landscape.

Run the irrigation system to make sure everything is in working order. Check each sprinkler head to make sure they’re coming out of, and going back into, the ground properly. If they’re a little crooked or you find damaged sprinkler heads, replace them as soon as possible to prevent further damage to the system.

Testing the irrigation system extends to checking all the outdoor faucets attached to your home. We really hope you disconnected the hoses from every faucet! If you did — or even if you didn’t — turn on each faucet and connect a hose to each to make sure they’re working properly.

19. Scan screens

Chances are good that you have screen doors and windows that are designed to let that fresh spring air inside and improve the air quality in your home. Most likely, you don’t want any bugs coming through your window screens along with the air.

Walk around your home to carefully scan each screen for any holes that shouldn’t be there. If you find holes, don’t worry! Screens can be patched pretty easily with a standard repair kit from the hardware store.

20. Dump standing water

A key spring home maintenance tip that many people forget is to dump all standing water from your property. Standing water can become a breeding ground for mosquitoes, which seem to become more and more dangerous each year.

21. Paint the exterior

Take a close look around the exterior of your home to check if harsh winter storms have chipped or stripped paint from the outside of your home.

Although painting the exterior of your home isn’t necessary every spring, it’s the perfect time to change the color of your home! You may also want to keep an extra bucket or two of paint for the future in case you need to patch any spots.

Pro tip: If you’re thinking about painting your house this year, make sure to power wash the walls first.

22. Inspect your foundation

Spring brings thawing snow and, many times, torrential rains. Since excess water will likely be in the forecast, it’s important to check the foundation of your home to make sure the cold weather of winter didn’t leave behind any cracks that may allow water into your home’s structure.

Seal all cracks and imperfections with the necessary tools — or call a contractor to do the work if you don’t feel comfortable doing it yourself.

It’s also important to look for spots around the house with unlevel soil that could potentially allow water to pool and push up against your home. If you find any, pack them in with soil or landscape from areas that are away from your home.

23. Reseal woodwork

Winter often piles snow, sleet, slush, and other things onto decks, porches, and other wooden structures, which can cause tremendous harm to the overall makeup of wood-crafted structures and finishes.

Take a close look at any wooden decks, wood trim, and other wooden structures on the exterior of your home to see if they have been warped, stained, or discolored. If they have, it likely means the wood seal has worn off and it’s time to reseal it.

Have a wooden deck and want to know if you need to reseal it? Just pour some water on it. If the water beads up, the seal is likely still intact and you may be able to wait a few more months or a year before you need to reseal the deck. If the water doesn’t bead up, you’ll want to reseal your deck this spring.

Enjoy your home this spring!

Are you enjoying these spring savings recommendations from us?

Sign up here for more homeowner recommendations and other Exclusive promotions. Act now and you’ll also earn 100 FREE Approach Points — no strings attached.

*Requires a 36-month monitoring contract with ADT Video or Complete. Early Term and installation fees apply. Taxes addt’l. New ADT customers only. For full terms and pricing see offer website.

**Applies after ADT has made attempts to resolve a system-related issue. See offer page for full terms.

¹Source: Strategy Analytics, 2022

Disclaimer:

The content provided on this website is offered for educational purposes only. While we endeavor to provide accurate and up-to-date information, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability of the content for any purpose. Visitors are advised to consult with qualified experts before making any financial decisions or taking any actions based on the information provided on this website.