1.  Look for exclusions to coverage.  For example, most insurance policies do not cover flood or earthquake damage as a standard item.  These coverages must be bought separately.

2.  Look for dollar limitations on claims.  Even if you are covered for a risk, there may be a limit on how much the insurer will pay.  For example, many policies limit the amount paid for stolen jewelry unless items are insured separately.

3.  Understand replacement cost.  If your home is destroyed you’ll receive money to replace it only to the maximum of your coverage, so be sure your insurance is sufficient.  This means that if your home is insured for $150,000 and it costs $180,000 to replace it, you’ll only receive $150,000.

4.  Understand actual cash value.  If you choose not to replace your home when it’s destroyed, you’ll receive replacement cost, less depreciation.  This is called actual cash value.

5.  Understand liability.  Generally your homeowners insurance covers you for accidents that happen to other people on your proprety, including medical care, court costs, and awards by the court.  However, there is usually an upper limit to the amount of coverage provided.  Be sure that it’s sufficient if you have significant assets. 

This information was reprinted from REALTOR Magazine Online by permission of the National Association of REALTORS, copyright 2005, all rights reserved.

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Lately, many of my sellers want to know if it makes sense to move up right now. Answer these questions below to help you decide whether moving up makes sense for you.

1. Have you lived in your home for at least 5 years so you can qualify for the $6,500 move up tax credit?
2. How much equity do you have in your home? Look at your annual mortgage statement or call your lender to find out. Usually, you don’t build up much equity in the first few years of paying a mortgage, but if you’ve owned your home for a number of years, you may have significant unrealized gains.
3. Has your income increased enough to cover the extra mortgage costs and the costs of moving?
4. Does your neighborhood still meet your needs? For example, if you’ve had children, the quality of the schools may be more of a concern now than when you first purchased.
5. Can you add on or remodel? If you have a large yard, there might be room to expand your home. If not, your options may be limited. Also, do you want to undertake the headaches of remodeling?
6. How is the home market? If it’s good, you may get top dollar for your home.
7. How are interest rates? A low rate not only helps you buy more home, but also makes it easier to find a buyer.

Reprinted from REALTOR Magazine Online by permission of the National Association of Realtors, Copyriht 2005, All rights reserved.

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When I list a property for sale, I always ask my sellers to put a home warranty on their property.  There are several reasons why I encourage my sellers to put a home warranty on their home.  The main reason is that the buyer is going to ask for it in the contract.  They always do!  To be competitive, you need to go ahead and have it on the property so it can be marketed with the property.  I like to use the American Home Shield Warranty, but there are several out there to choose from.  If you want to know how comprehensive the home warranty is, check the policy to see which items are covered.  Be sure to check whether the policy covers the full replacement cost of each item:  plumbing, electrical systems, water heater, furnace, heating ducts, water pump, dishwasher, stove, cooktops, ovens, microwaves, and swimming pool. 

Second reason I encourage sellers to put a home warranty on their properties is because during the buyers inspection, the inspector will find things wrong with the property that are going to need to be repaired.  It saves the seller money during the sell of the home.  Lastly, it protects the seller if something breaks while the home is on the market.  This way the seller does not incur additional expenses while trying to sell the property. 

Home Warranties are like buying insurance for your home.  There is still a co-pay when a service call is made, but it lowers the seller or buyers cost for repairs.

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1. Put fresh or silk flowers in principal rooms for a touch of color.

2. Add a new shower curtain, fresh towels, and new guest soaps to every bath.

3. Set out potpourri or fresh baked goods for a homey smell.

4. Set the table with pretty dishes and candles.

5. Buy a fresh doormat with a clever saying.

6. Take one or two major pieces of furniture out of every room to create a sense of spaciousness.

7. Put away kitchen appliances and personal bathroom items to give the illusion of more counter space.

8. Lay a fire in the fireplace. Or put a basket of flowers there if it’s not in use.

9. Depersonalize the rooms by putting away family photos, mementos, and distinctive artwork.

10. Turn on the sprinklers for 30 minutes to make the lawn sparkle.

Reprinted from REALTOR Magazine Online by permission of the National Association of Realtors, Copyriht 2005, All rights reserved.

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1.  They don’t ask enough questions of their lender and miss out on the best deal.

2.  THey don’t act quickly enough to make a decision and someone else buys the house.

3.  They don’t find the right real estate professional who is willing to help you through the homebuying process.

4.  They don’t do enough to make their offer look good to a seller.

5.  They don’t think about resale before they buy.  The average first-time buyer only stays in a home for four years.

REPRINTED WITH PERMISSION FROM REAL ESTATE CHECKLIST AND SYSTEMS ( http://www.realestatechecklists.com )  REPRINTED FROM REALTOR MAGAZINE ONLINE BY PERMISSION OF THE NATIONAL ASSOCIATION OF REALTORS, COPYRIGHT 2005, ALL RIGHTS RESERVED.

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