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Follow on Google News |  Ryan Boyer Realtor Keller Williams San Diego share article on - 8 Costly Missteps New HomeownersRyan Boyer Expert Realtor with Keller Williams San Diego shares another amazing article on Costly Missteps New Buyer make in their first year home homeownership
By: ryan boyer realtor keller williams By: Amy Howell Hirt Published: May 1, 2017 How not to make money mistakes as a fledgling homeowner. The negotiations are over. Your mortgage is settled. The keys to your first home are in hand. Finally, you can install your dream patio. You can paint the walls without losing your security deposit. Heck, you could knock out a wall. You're soooo ready to be a homeowner. So ready in fact, you're about to make some costly mistakes. Wait, whaaat? "You have to rein it in and be smart," says Daniel Kanter, a homeowner with five years under his belt. Especially in your first year, when your happiness, eagerness (and sometimes ignorance) might convince you to make one of these eight mistakes: #1 Going With the Lowest Bid The sounds your HVAC system is making clearly require the knowledge of a professional (or perhaps an exorcist?). But you've been smart and gotten three contractor bids, so why not go with the lowest price? You might want to check out this story from a Michigan couple. Rather than going with a remodeler who'd delivered good work in the past, they hired a contractor offering to complete the work for less than half the cost, in less time. A year later, their house was still a construction zone. You don't want to be in the same spot. What to do: Double-check that all bids include the same project scope — sometimes one is cheaper because it doesn't include all the actual costs and details of the project. The contractor may lack the experience to know of additional steps and costs. Related: How Remodelers Scam You Without You Ever Knowing #2 Submitting Small Insurance Claims Insurance is there to cover damage to your property, so why not use it? Because the maddening reality is that filing a claim or two, especially in a relatively short period, can trigger an increase in your premium. "As a consumer advocate, I hate telling people not to use something they paid for," says Amy Bach, executive director of nonprofit United Policyholders, which works to empower consumers. But, it's better to pay out of pocket than submit claims that are less than your deductible. Save your insurance for the catastrophic stuff. "You want the cleanest record possible," Bach says. "You want to be seen as the lowest risk. It's like a driving record — the more tickets you have, the more your insurance." Some insurance groups, like the Insurance Information Institute and National Association of Insurance Commissioners, say it's hard to generalize about {{ start_tip 23 }}premium increases{{ end_tip }} because states' and providers' rules differ. But this stat from a reportby UP and the Rutgers Center for Risk and Responsibility at Rutgers Law School is pretty sobering: Only two states — Rhode Island and Texas — got top marks for protecting consumers "from improper rate increases and non-renewals" • An inquiry about a claim • A claim that isn't paid because it was less than the deductible • A single claim Your best protection? Maintaining your home so small claims don't even materialize. #3 Making Improvements Without Checking the ROI Brandon Hedges, a REALTOR® in Minneapolis- New windows can be a great investment if you're sticking around for awhile, especially if windows are beyond repair, and you want to save on energy bills. Just because you might personally value an upgrade doesn't mean the market will. "It's easy to build yourself out of your neighborhood" What to do: Before you pick up a sledgehammer, check with an agent or appraiser, who usually are happy to share their knowledge about how much moola an improvement will eventually deliver. Related: The Newbie Homeowner's Guide to Maxing Out Resale Value #4 Going on a Furnishing Spree When you enter homeownership with an apartment's worth of furnishings, entire rooms in your new home are depressingly sparse. You want to feel settled. You want guests at your housewarming party to be able to sit on real furniture. But try to exercise some retailing willpower. Investing in high-quality furniture over time is just smarter than blowing your budget on a whole house worth of particleboard discount items all at once. What to do: Live in your home for a while, and you'll get to know your space. Your living room may really need two full couches, not the love seat and a recliner you pictured there. #5 Throwing Away Receipts and Paperwork Shortly after moving in, your sump pump dies. You begrudgingly pay for a new one and try to forget about the cash you just dropped. But don't! When it comes time to sell, improvements as small as this are like a resume-builder for your home that can boost its price. And, if problems arise down the road, warranty information for something like a new furnace could save you hundreds. What to do: Stow paperwork like receipts, contracts, and manuals in a three-ring binder with clear plastic sleeves, or photograph your documents and upload them to cloud storage. Ryan Boyer https://www.kwsold.me https://www.ryanboyerrealtor.com 619-900-9400 End
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