Skip to main content

Military Members: Things to Consider When Buying a Home

For anyone interested in buying a home, there are a lot of decisions to be made. From the type of flooring they may want to the type of loan they may qualify for, this major purchase comes with major choices. For the men and women who serve in our Armed Forces, there are even more things to consider when it comes to buying a home. Here are five things to think about if you are a military member who is considering buying a home:

1. Location
When you commit to buying a home, you’re making a long-term commitment. While it may not be your forever home, you’ll want to own the home long enough to recoup your investment—and then some! So, if you’re in the military and know that you are likely to move in the near future, it may not be the right time to buy. If you are confident you will be spending significant time in your current assignment, you could be in the right place to buy. When it comes to location, you’ll also want to consider your proximity to your base. Some may prefer to live close to base, while others may want to physically separate themselves from their daily work life.

2. Family
Because deployment is certain when it comes to military life, you must consider what your family will do while you are deployed. Will they stay and live in your home or are they likely to travel to stay with a family member while you are away? If you know they are likely to go home to be with family, you’ll have to consider who may take care of the house while you’re all away. If your family will be living at your home, you’ll want to make sure you buy in an area where they are close to any amenities they’ll need in your absence.

3. Service
We’ve already mentioned deployment and how your time away may affect members of your family who stay behind to live in your home. But, as a military member, you also need to consider where you are in your career. If you are at the beginning of your military career and starting to build a family, buying a home may be ideal for you. If you are nearing the end of your service and have an interest in traveling or exploring other career paths, you may want to hold off on buying for now.

4. Money
As a member of the military, you’ll likely qualify for a VA loan. This mortgage requires no down payment and does not carry private mortgage insurance. Since you won’t have to save as much money as some other buyers, you may be enticed to spend more on a home. But, do not forget about those monthly mortgage payments. Make sure you’ll be comfortable carrying the mortgage you apply for.

5. Future
No matter where you are in your military career, before you decide to buy a home, it is important to consider the future. Even if you know you may receive new orders or be deployed in the short-term, if you’ve fallen in love with a certain area, you may have plans to stay even when your military career ends. If this is the case for you, it may be the right time for you to go ahead and buy your forever home.

Signs It’s Time to Sell After Retirement

Even the happiest of professionals can admit that they dream of retirement from time to time – and maybe even more frequently. And, why not? For many, retirement means more time to spend with those you love, doing the things you love.
But when you’re used to an income that allows you to live a particular lifestyle, then that income changes, it can be difficult to maintain the lifestyle you’ve grown accustomed to. Some retirees look at the lifestyle change as an opportunity to sell their home and simplify. Some homeowners decide to stay in their homes long after retirement. How will you know what decision is right for you?
Each person and their financial situation at retirement are different. But if you’re inching closer to retirement and you’re not sure what to do with your home, here are five signs that it might be time for you to sell:

1. You need more money.
Selling your home when you retire will allow you to downsize and simplify a bit, which can equate to fewer financial commitments. However, if your home is paid off, selling might also add to your retirement funds, which will allow you more freedom to travel or enjoy the things you’ve been looking forward to.

2. You’re looking for less responsibility.
Owning and maintaining a home requires quite a bit of cleaning, seasonal maintenance, and upkeep in general. When you sell a larger home to move into a smaller space or one with added amenities, like landscaping or housekeeping, you can say goodbye to some of the time-consuming tasks that come along with home ownership.

3. You feel like you don’t fit in.
When you’re a new family and you live in a neighborhood with close neighbors who are at similar stages of life, the sense of community can be amazing. If you grow older and notice that your neighbors seem to be turning over every few years, new families might remain the community norm. If you’ve watched your children grow up and leave the nest, it may be your turn to flock to somewhere new next.

4. Your retirement plans include a lot of travel time.
If your retirement aspirations have you sailing around the world or visiting cities and countries you’ve never seen, it simply might not make sense to hang on to a big home. If you do, you’ll need to hire someone to handle the regular maintenance and upkeep responsibilities. If traveling is high on your retirement priority list, you may only need a small crash pad where you can stay between trips.

5. If you have children, they have moved away.
For grandparents, retirement can mean taking on a new role of spending more time with their grandchildren. If your children have moved away and seeing your grandkids means you’ll need to leave your home for an extended period, it may not make much sense to keep the home you’ve been living in. On a similar note, if your children have moved away and you intend for them to be your heirs, it may make financial sense to leave them a nest egg, rather than a piece of property that is far from them. They’ll eventually have to sell or hire someone to look after the home, which may not be financially worth it!

How to Protect Your Home From Severe Cold Weather

Homeowners in cold-weather climates face icy conditions, blizzards, and other cold-weather storms. Beyond barring you from being able to leave your home, severe cold weather can threaten your home’s structure and your safety. It’s important to take preparatory measures and invest in the resources you’ll need to deal effectively with winter’s challenges before it gets into full swing.

Understand the threats of severe cold weather

Blizzards: Storms with heavy winds and large amounts of snow accumulation can cause roof or other structural damage and leave you isolated.

Ice storms and ice dams: Ice storms coat structures, trees, power lines, cars, roads and virtually everything else with ice. As the ice melts, large chunks can fall and cause injury to anyone below. When ice melts during the day and then re-freezes at night, ice dams—which block water from flowing in the gutter—may form. This condition can force water back under the roof line and cause leaks.

Sleet or freezing rain: Combinations of snow and freezing rain may cause slippery conditions and coat roads, sidewalks and driveways with ice when temperatures drop.

Protect yourself from severe cold weather

The Federal Emergency Management Agency (FEMA) recommends that homeowners have shovels on hand, as well as melting agents such as rock salt. Some of the new, more environmentally friendly deicers include calcium magnesium acetate and sand to improve traction. Be sure to stock up early in the season, as these agents tend to be in short supply during periods before a well-publicized storm.

 

FEMA also advises you have enough fuel to maintain heat in your home, as well as a backup heating source: firewood if the home has a working fireplace or a generator to power heaters in case of power failure. However, use caution as these can represent fire hazards when not used correctly. Be sure to follow directions explicitly and keep a fire extinguisher. Some generators and fireplaces also require proper ventilation, according to the Institute for Business and Home Safety—so follow directions carefully and keep them away from curtains or other flammable items.

Stock up on extra blankets, warm clothing and enough food/water to sustain your family in case of a few days of isolation. And a transistor radio with fresh batteries can help keep you updated on news and information in case of a power outage.

Protect your home from severe cold weather

Before winter, there are some precautions you can take to protect your home from the ravages of severe cold weather storms.

Winterize your home: Check shutters, siding and other exterior materials to ensure they’re secure, says retired contractor, home improvement expert and writer John Wilder of Jacksonville, FL. High winds, ice and moisture from winter storms can easily strip off such outside elements if they’re loose.

Be sure that gutters are clear of debris and walkways are even—and don’t represent tripping hazards that can be exacerbated with snow or ice. Caulk drafty windows and apply weather stripping to doors, both inexpensive strategies that can keep heat in your home. Air sealing can help you save about $350 in energy costs or one-third of your average annual heating and cooling costs. The average annual home energy bill is about $2,200, according to Energy Star—of which about $1,000 represents heating and cooling. An assortment of air sealing materials and tools—including silicone foam, caulk, aluminum flashing for flues and additional insulation—will run roughly $100 to $350.

Winterize pipes: Be sure your pipes, especially those exposed or in unheated areas like crawl spaces, are wrapped in insulation to prevent freezing and bursting. Also, learn where your water shut-off valves are so you can turn off the water supply in case of a leak. Six feet of insulation can cost anywhere from $7 to $17; it’s available at most home improvement stores.

 

Trim tree branches: Branches that overhang roofs or areas where you park your car—or which are simply overgrown—represent a risk to structures, vehicles and people. Keep trees trimmed and remove those that are weak or sickly to prevent them from falling on or near your home. Tree trimming and removal pricing varies greatly, and you may have additional restrictions if you live in an historic community—or if the trees are close to power lines.

Check with your municipality about any regulations and contact your local Chamber of Commerce, municipal offices or contractor rating sites like merchantcircle.com or angieslist.com to get the names of reputable pros. Tree trimming and removal can be dangerous, so don’t attempt it on your own unless you’re experienced.

 

By keeping your home in good repair and stocking up on the supplies you’ll need before the rush for rock salt and shovels begins, you’ll be as ready as possible to tough out the storm.

Five Reasons to Replace Your Windows

Replacing your home’s windows can seem like a task that is not your top priority, but the benefits you can gain will make a huge difference.  Over time, windows need to be replaced, just like your appliances or roof shingles. Don’t wait until the weather gets cold, now is a good time to take a look at your windows and determine if they will need to be replaced.

1. Energy Efficiency
If you are starting to notice your energy bills are going up, you might want to take a look at your windows to see if they are the cause of the problem.  Window replacement is a common recommendation among construction professionals as a way to improve energy efficiency. According to a study on the energy performance of residential windows, new windows reduce annual heating and cooling costs by 22%.  Although new windows are an investment, they will save you money in the long run. Now is the time to swap out your old windows with double-pane, energy-efficient windows.

2. Window Defects
If you start to notice any defects in your windows, such as small cracks or chips, it is a good time to replace your windows.  Leaving a crack will only cause more damage in the future. Some problems include air leaks, water leaks, and letting in small insects. Visible cracks also weaken the strength of your window.  Having a crack or broken window can cause a lot of problems down the road. It is a good idea to replace them sooner rather than later to save money.

3. Security
Windows are an entry and exit point to your home so windows that aren’t opening or locking correctly pose a security risk. Some signs that burglars might look for to identify vulnerable windows include old or wooden windows, windows with cracks, or condensation in windows.  You also don’t want small critters like bugs or chipmunks getting through window openings.

4. Curb Appeal
Updating your windows might seem odd to increase your curb appeal, but instead of simply focusing on changing the outer appearance of your home, be sure to incorporate changes that add into your home’s structural integrity and energy efficiency. For instance, if your window frames have rotted then you’re ready for new windows.  They will not only improve the functionality of your home, but the appearance too. Installing new windows will increase the value of your home and make it more appealing.

5. Value
If you’re thinking of selling your home in a few years, replacing the windows can help your home stand out in a crowded market, plus raise its value before you list your home. Some buyers love buying homes that are not only move-in ready, but updated with modern amenities. New windows improve your home’s marketability and help you command a higher selling price.

If you have old windows in your home or are planning on listing your home soon, now is the time to replace your windows.

Comparative Market Analysis Basics

With the end of the year here, home sellers are doing whatever they can to make their homes the most on the market. To attract prospective buyers, things like well-maintained curb appeal and properly staged rooms are a major help. But there is one factor that can drive buyers to—or from—a home in a hurry. If the sales price is wrong on an otherwise perfect home, it may never stand a chance of selling.

If you’re planning to list your home this fall, you’ll obviously want to set a fair and competitive price. To do so, make sure your professional real estate agent completes a comparative market analysis, or a CMA. This report of similar homes that are currently listed, have recently sold or have even been withdrawn from the market, can give sellers the extra confidence and peace of mind that they are setting the right price to get their home sold.

Why is it so important to compare your home to others on the market? Reviewing other homes that are currently for sale makes you familiar with your competition, but it won’t dictate your sales price point. Instead, your agent will review similar homes that already have sold (typically within the last three months). These homes paint a truer picture of what buyers are willing to pay—and where appraisers are likely to value your home. Armed with this knowledge, sellers can more easily set the right price for their homes.

What aspects go into a CMA? With so many homes on the market, how is a real estate professional to know which homes to compare a seller’s home to? Well, they examine a few key factors in homes that have recently sold:

1. Age
When real estate agents look for comparable homes, they look for homes that were built around the same time. Particularly in today’s planned developments, construction and layout among homes are similar, which makes for a more even comparison. So, if a home that has recently sold has the same layout as a seller’s home, it might be a good candidate for the CMA.

2. Size
Of course, square footage is also an important factor when completing a CMA. But, as we’ve mentioned, when real estate agents compare similar homes, they also look at the layout. Why? It is a lot easier to compare two two-story homes to each other than it is to compare one two-story home with a ranch. Agents will look for homes that have similar square footage and structure when they are completing a comparative market analysis.

3. Location
Frankly, a two-story home in the city and a two-story home in a far-off suburb are not ideal for a CMA. Though they may have a similar construction date and layout, their respective locations make them far less than a match when it comes to an equal comparison. Instead, agents look for homes that have recently sold in or near the same neighborhoods where their clients are planning to list their homes.

4. Extras
So, a real estate agent finds a few homes with similar construction dates, layouts, and locations. What do they look for next? The amenities. Ideally, if a seller is hoping to set a higher price point, their home will have a few more amenities or upgrades than homes that have recently sold. We’re talking about finished basements, upgraded flooring and possibly an incredible walk-out deck. OK, that may be a stretch, but if a seller is hoping to set a higher price, upgrades matter when it comes to a CMA.

Realtor® vs. Real Estate Agent: Deciphering the Difference

While you may think the terms “real estate agent” and “realtor” can be used interchangeably, that is just not the case. In fact, there are several differences between the two. Today, we’re shedding some light on a few of those determining factors – along with some similarities, too.

First and foremost, they’re both legit. Both real estate agents and realtors have taken the necessary courses and passed the required licensure exam to help buyers and sellers complete their real estate transactions. That may be their biggest similarity. Their biggest difference is pretty simple too… Realtors belong to the National Association of Realtors (NAR), while real estate agents do not. What does that mean?

Realtors practice real estate under the NAR code of ethics. Basically, they agree to work with other real estate professionals to ensure that their clients’ best interests are met. What does that mean to a buyer and seller? Well, obviously, it means their realtor pledges to do their best to help their client buy or sell a home. What it does not mean for those clients is that their realtor will do this unethically. Realtors also pledge to treat all parties in a transaction with honesty.

What are the consequences for violating the NAR code? That is pretty simple too. Realtors who are found to have acted in a way that is not in accordance with the code of ethics can have their “realtor” title removed.

Do these differences mean that you’ll only receive honest, reputable service from a realtor? Absolutely not. What this information means is that you need to choose the person who will be representing your home sale or purchase very carefully.

Here are three tips to help you make sure you select the right real estate agent:

1. Take advice from family and friends.
When a family member or friend has had a good (or bad) experience during a real estate transaction, they are bound to want to talk about it. If you have friends or family members who are particularly happy with their home sale or purchase, find out what it was they liked most about their real estate professional – and find out if they would use that person again.

2. Read the reviews.
Family members and friends are not the only people who want to share their opinions about their real estate transactions. Use tools like social media sites and online reviews to confirm the word-of-mouth advice you receive.

3. Conduct your own interviews.
As with any advice, take real estate recommendations in stride. Reach out to the real estate agents or realtors who’ve helped your family and friends. But make sure they can help you too. Ask them about the things that matter most to you when it comes to your transaction. See if they will be a good fit for you. Once you’re satisfied, select your real estate professional, and rely on their honesty and expertise to carry your home sale or purchase to completion.

Home Energy Cost: The Real Deal on Big Bills That Come With a House

Home energy cost is not something people always think of when it comes to buying a house. But don’t get consumed by the details of finding and buying a house without considering the potential bills you’ll have to pay every month for heating, cooling and more.

Home energy cost considerations

Even an affordable mortgage payment could quickly tip into the pain point if your new home comes with a monthly utility outlay that you weren’t expecting. So what factors should you consider? Everything from your electric bill to your heating are part of your home energy cost.

How to do that math:

You might want to hire a professional to determine the home’s overall energy costs before committing to a down payment. Energy audits cost a few hundred dollars but could save you from countless headaches (and costs) down the line. Not only will they give you a good idea of what’s in store, they will also point you toward fixes you can install so you’re not facing the same bills as the previous owner. The federal government’s Energy.gov site has guidelines for home energy audits, and tips for a DIY version. If you don’t want to go that far, here are some specifics to consider:

Heating and cooling systems

Heating and cooling can consume 45% of a house’s energy costs. The layout of the house will be a factor in energy costs. Vents located under windows are inefficient, and some rooms may not even have vents. In colder climates, remember that heat rises. High ceilings can result in wasted energy and added heating costs every winter. In tri-level houses, the upper floors will be warmer while the ground floor will be colder.

Consider how much alterations might cost. In-floor heating can save you up to 40% of energy costs, depending on the system. To have a professional install a hot water radiant floor heating system would cost about $6 to $15 per square foot.

Get all the information available on the house’s furnace and air conditioner. Find out the seasonal energy efficiency rating (SEER) for the house’s air conditioning system. For gas furnaces, you need to know the Annual Fuel Utilization Ratio (AFUE). If the house’s heating and cooling systems are 10 to 15 years old, or have a SEER of less than eight, it may be necessary to replace them.

Appliances energy costs

Did the former owner of the house throw in some appliances as part of the package? Although this gesture may save you money in the short run, be aware that older appliances can be much less energy efficient than new ones. Inefficient appliances eat up energy and can cost you hundreds of dollars over time. Research the make and model of any used appliances and assess whether they will incur higher energy costs than if you bought new ones.

Tax credits

State and federal programs might offer tax credits or other deals, such as grants or discounts, if you replace older appliances or heating or cooling systems, like an aged boiler, with newer, more energy-efficient versions. Some localities offer free energy audits, too. It might be worth asking about such programs if you are looking at an older house. Maybe the efficiency ratings are low, but if you love the house, and there’s enough deals available that you could upgrade relatively painlessly, it might still be worth purchasing. The key here is knowing the facts so you can judge what your bank account can handle.

Infrastructure

Check features such as windows, doors, insulation and siding for efficient energy usage. You can hire a professional to use a thermal camera to see where heat escapes, or conduct a blower-door test to identify air leaks by using a large fan with an airtight skirt that blows air out the door, although those tests could prove expensive. Insulation in the attic should be thick enough to hide all of the studs. Weathering and material aging can cause problems with siding, such as cracking, rotting or cupping, so check its condition too. Leaky windows glazed with putty can be reglazed, or consider buying double-pane windows. These will run you about $600 for moderate quality or up to $800 for high quality.

Architectural features

Big homes mean bigger energy bills too, so consider size in relation to your ongoing energy bills when you look at homes. A big stairway in the entryway means a lot of wasted heat each time the front door opens. Beautiful cathedral ceilings can bump up energy bills too. Walls of windows can afford a lovely view, but the added sunlight can strain your air conditioning bills in the summer, while leaks will raise your heating costs in the winter.

Energy costs: an informed decision

Only you can decide whether a home’s energy costs are worth the selling price. Your dream home may not be so ideal if the energy bills deplete your savings. But it could be worth investing some money in upgrading the house’s systems and features.

5 Reasons to Hire a Property Manager

Sometimes, it can be hard to admit that we need some help – particularly when admitting that fact may cost us some money. But, for the group of homeowners who not only own a primary residence, but also have one or more income properties, how much is too much?

As a landlord, income property owners are responsible for a laundry list of tasks that include, but are not limited to finding and retaining tenants, managing routine maintenance and repairs, collecting rent, handling tenant complaints and, frankly, just being available in case of an emergency. And, yes, that is in addition to any day job the income property owner may have, too.

When income property owners decide to hire a property manager for their investment properties, guess who handles that laundry list of “landlord” tasks? Not the property owner!

Are you an income property owner who may need a little help? Here are five reasons it may be time to hire a property manager:

1. You own multiple properties or rental units. Maybe managing one tenant is doable while balancing life’s other priorities – and even that’s a maybe. But, if you are an income property owner with multiple homes or other rental units, it is understandably difficult to maintain the properties and manage the tenants. It could be time for you to contact a reliable property manager who can help to lighten your landlord’s workload.

2. You don’t live near your rental properties. What do you do when you live a few states away from your income property and it is time to show it to potential new residents? What if your tenant contacts you in the middle of the night with a plumbing issue or other pressing problem? When you don’t live near your income property, it may be more cost-effective and efficient to hire a property manager.

3. You don’t have a lot of time to devote to managing your property. Is maintaining your income property and keeping tenants happy your only job? It certainly can be a full-time job! So, if you’ve got a career in addition to owning a rental property, you may need to decide how much of your free time you’re willing to devote to being a landlord. If you’re having a hard time wearing all hats, you may need to hire a property manager.

4. You are not (and don’t want to be) familiar with landlord/tenant laws. In addition to all those previously listed landlord tasks – you know, maintaining your property and managing your tenants – a landlord also needs to be familiar with housing regulations and property laws. There are local, state and federal regulations that landlords must follow. How can you be sure you’re in compliance? A property manager can keep you and your property up to date on the latest laws and regulations.

5. You can afford it. Perhaps this should be number one on the list. But, if you’ve seen yourself in all other listed reasons, this may be the last thing you need to evaluate before hiring a property manager. Keep in mind that they typically function as independent contractors and most property managers may take a flat fee of one month’s rent or anywhere between around 5-10% of your monthly rental fees. Do the math and decide if you’re able to afford that kind of sometimes-invaluable help.

As an income property owner, it may be difficult to admit that you need the help of a property manager. But, if you already can admit that you’re struggling to properly maintain your property and manage your tenants, the easy choice for you may be enlisting the help of a trusted property manager today!

3 Sneaky Ways to Make a Small Home Office Look Huge

The struggle of the way-too-small home office: a space that needs to be functional often doubling as a guest room and the holding pen for all the random stuff you couldn’t find a home for elsewhere. And did we mention these rooms are often tiny? You spend many of your waking hours in this small, cramped place. So, how can you figuratively supersize one of the hardest-working and smallest rooms in your home?

1. Pick the right-sized furniture

One of the worst home office fails? Furniture that simply doesn’t fit! Just because you want a large work surface (who doesn’t?), it doesn’t mean you want to overwhelm your space with a massive CEO-style desk. Start with the right-sized desk, and orbit other furnishings around it. There isn’t a formula for size; the more compact you can go, the better. The small-home mecca otherwise known as Ikea offers countless affordable desk options. Take measurements of your room before you shop, and don’t forget to account for other furniture that needs to go in the tight space. And maybe factor in a bit of walking space, too. Find a desk that has ample storage and just enough surface space for your computer. If you primarily use a laptop, you can get away with a small laptop desk for tight spaces. For bigger devices, consider a storage-rich desk that’s both stylish and sturdy.

When it comes to your chair, you want comfort, but you don’t need the gargantuan seat on wheels that you’d see in an office building. Pro tip: Go for a stationary chair with style. Standard dining chairs work well because they’re smaller than most office chairs, but they have high backs, so you don’t have to worry about being down too low. Dining chairs are a lot more attractive than office chairs, and they just blend in better.

2. Find a place for everything

On websites, floating, open shelves look amazing. Know why? Because they’re styled for photos, not living. They probably hold about half the stuff you really need. Your pile of crumpled and mismatched paper? It’s not nearly as eye-pleasing as the perfectly stacked piles you see in design books. Here’s a good way to leverage wall space: Use it to hang file holders. You’ll find plenty of options at The Container Store or any office supply retailer. Every item should have a dedicated place that’s not your work surface or the floor.

If you can squeeze another piece of furniture in your room, Petty suggests a closed cabinet. A stylish armoire could be a nice touch. Use bins to store your office wares inside. Purchase cord organizers and tuck away that laptop when you’re offline to make everything look seamless. If you must leave things out, then do it in style.

3. Have fun with decor

One of the easiest and most cost-effective ways to make your work ambiance more Zen is through color. You can paint, but a hued wallpaper looks great, too. The key, productivity-wise: You want a design that’s inspiring but not distracting.

While overhead lighting is the best lighting for task-orientated work, a desk lamp can add a great decorative detail. Don’t opt for one that looks too utilitarian. With practically no effort, you can find options that are stylish, attractive, and affordable (the trifecta!).

One thing to skip: rugs. Chairs are harder to move on rugs and placing them under a desk ends up cutting the rug off awkwardly.