Tips for Homeowners

Owning a home is expensive, but there are a few things you can do to lower your ownership costs.  Try to do as many of these tips as you can and you will save money.

  ·       Save money on homeowner’s insurance.  Shop around every time your policy comes up for renewal.  It is imporant to lower your insurance costs and maintain adequate coverage.  If you shop for home insurance using online insurance quote comparisons, you can know very quickly if you are currently spending too much on homeowner’s insurance..  I’ve found Insureme to be a good source for high quality insurers at very good prices www.insureme.com.  The point is never pay more than you absolutely have to.  If you live in  Florida you may be stuck for finding a cheap policy for windstorm, especially if you are within a mile or two of the beach. If so, the only carrier is probably with Citizen’s Ins.  At any rate, SHOP AROUND.  

·       Do maintenance to your house when it needs it.  Don’t put it off or wait.  It will always cost you more to fix a problem later than it will right away.  I have owned several houses and normally the big ticket maintenance items are the roof, the AC (or heating), the plumbing and the electricity.If any of these need repairs or replacing and you don’t have a friend who is a contractor to help you out, then SHOP AROUND.  Get at least three quotes from REPUTABLE contractors.  Throw out the most expensive and the cheapest.  (Assuming the cheapest is way cheaper than the others).  You don’t want a contractor who does a crappy job.  GET REFERENCES from other clients who’ve used them before.  If they won’t give you references, then tell them to get lost and find another contractor.  Call up the references and find out.  Walk up and down your street and ask your neighbors who they’ve used for roofing, electrical work, etc… and whether or not they’re happy with the work and how much it cost.  Bottom line… DO YOUR HOMEWORK.  If you can do it yourself, consider it seriously, but many times, you will spend more doing it yourself than hiring somebody who does it for a living.  You save money not by being cheap but by being wise.   Check out contractors here:          Angie’s List - Find thousands of unbiased ratings and reviews on service companies in your area, join Angie’s List today.         Also, you can check out www.improvenet.com, www.renovationexperts.com, www.contractors.com           The federal Trade Commission has a great site for information on contracting/contractors.            Read this first before you begin any home improvement project…          www.ftc.gov/bcp/conline/pubs/services/homeimpv.shtm

·       Landscape your home if you want to sell it.  If you want to increase the sale-ability of your house, you must landscape your home.  Its hard work, but this is a task you can do yourself.  It doesn’t have to be done all at once, but before you begin, draw it out and have a plan.  Do it right.  Go to the library and get some books on Landscape design.  Find a picture of something you like and copy it.  Remember two rules.  First, never have more than 5 different plants in any single garden and second, group large plants (like trees) together in odd numbers.  If you buy large plants like trees, buy them at a tree farm or wholesaler.  You’ll save significantly over what you would pay at a nursery.

·       Don’t put in a pool unless you live in Florida, Arizona, California or Hawaii.  Yes, I know they’re nice, but save the money.  In almost every other state it won’t increase the value of your house.  In the four states listed above it might, but even then not significantly.  It will, however, make your house more sellable in those states.  If you must do home improvement, then improve the kitchen and the bathrooms, then finish the basement (if you have one).

·       Pay more for a house in a landlocked area, close to the beach or in a great school zone.  Yes, you should pay more.  If you buy a home in the middle of nowhere because its cheaper, chances are it won’t go up very much in price, if at all,  and you’ll have a hard time selling it.  If you buy in a landlocked area (think Manhattan) or close to the beach, or on a lake, or in a built up area (any good area close to a downtown, like Queen Anne Hill in Seattle, Highland Park in Dallas, Coral Gables in Miami etc…) you will never have trouble selling the house and it will go up in value.  Why? Because everybody wants to live there.  If you cannot afford the fancy area of town, then try to choose an area that has a ‘feature’, like is close to a lake, close to a subway stop, or in a good school system, close to a University, etc…

·       Don’t spend money on projects you like, but won’t increase the value of the house.  You might like gardening, but don’t build a greenhouse (if you can’t afford it).  It won’t increase the value of your house.  Remember, if your house gives you money, you can give money to it.  If it doesn’t give you money, don’t give your money to it.  

·       Lower your property tax if you can.  Always contest what the county wants to tax you.  If it goes up at all, contest it.  Why?  You might win and thereby save yourself a lot of money.  If you don’t you’ve lost nothing.  If you don’t try, you will most certainly pay more than you did last year.  Chances are in the next few years your house’s value isn’t going to skyrocket, so neither should your taxes.  

·       If you have a mortgage, then think about refinancing.  Of course, it goes without saying that you have to shop around.  Only refinance if it will save you money and you’re not going to pay off the mortgage anytime soon. Pay attention to closing costs, interest rate, hidden fees, fixed, arm etc… Don’t rely on anybody but yourself.  Find out.