SEPTEMBER 2018

Whether you are looking to buy or sell, I can offer the highest levels in real estate expertise and professionalism. Don’t hesitate to contact me and allow me to help guide you through that process!

LOREN ANDERSON
REALTOR® | DRE# 02006080
lorenanderson@bhhscal.com   |   (626) 325-8186
http://www.sgvrealestate.net

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SELLERS’ ADVICE

Are You Really Ready to Sell?

If you find yourself saying any of the following to your Berkshire Hathaway HomeServices network professional, you may be hurting your chances of selling your home quickly and for the most money possible.

“I’m not making any repairs.” According to the 2018 Home Buyer and Seller Generational Trends Report from the National Association of REALTORS®, 47 percent of buyers under the age of 37 purchased new homes to avoid renovations and problems. If many buyers don’t have the will, skill or time to make repairs, you’re eliminating a number of buyers who would otherwise love your home.

“My home has to be worth more than that.” You may believe your home should be worth more than you paid for it and provide you with enough equity to move. Your listing agent will supply you with tools to understand current market value. The comparable market analysis shows what homes have recently sold for and what other sellers are asking for similar homes as yours, as well as price and sales trends.

“Let’s price it higher and see what happens.” Pricing above comparable homes is a real risk. You’ll outprice buyers who would want your home. Buyers who can afford your home will quickly find that your home doesn’t compare to others.

In any of these cases, you’ll be looking at a price adjustment, and have lost valuable marketing time. Realistically, your home is only worth what the most qualified buyer is willing to pay for your home.

FINANCIAL ADVICE

Home Insurance and Replacement Costs

How do you know if you have your home insured for the right amount? Your lender may require insurance to cover the loan amount, but what you owe and actual replacement costs can be vastly different.

According to the National Association of Insurance Commissioners (NAIC), replacement costs are the amount it would take to replace or rebuild your home or repair damages with similar materials and quality, without deducting for depreciation. Actual cash value is the amount it would take to repair or replace damage to your home after depreciation. Standard plans require policy limits of at least 80% of replacement cost.

Replacement costs should include loss of your possessions.  Create a room-by-room inventory of your possessions, including photographs and/or video, cost of goods, and how long you’ve had them. Give documentation to your insurer and keep copies in a safe place or on the cloud.

The NAIC advises that you compare cost-to-repair and cost-to-replace prices for your area with your insurer. There are different packages of home insurance that protect against specified damage-causing events, such as fire, windstorm, and theft. They also contain coverage for property damage, living expenses during repairs, personal liability and medical payments.

Review your policy annually. If you’ve made improvements to the home, or purchased more goods, you should inform the insurer. You may also get a premium discount for long-time loyalty, combining car and home insurance, raising your deductible, and other initiatives.

FINANCIAL ADVICE

Too many Clothes, No Down Payment

Crazy fashion trends do more than strain closet space. They can sometimes send the message that trendiness is more important than building wealth. Here’s to save the money you spend on new clothes for something more rewarding – a down payment on your own home.

Reduce your wardrobe. Consign, donate or give away clothes you haven’t worn in a year or two. Keep anything that goes with at least three other items, like a jacket that works with a dress, skirt and blouse, or jeans.

Take better care. Fast fashion doesn’t last, so when you wash clothes, turn pants, skirts and blouses inside out first. Don’t use wire hangers. Fold knits instead of hanging them. Your clothes will look better and last longer.

Buy less. If you buy something for $100, look at how long the season is to wear it (four months) and how many times you’ll actually wear it (17). Take the cost ($100) and divide by the number of wearings. That’s a tax of $5.88 every time you wear it.

Bank the money. If you spend $200 a month on clothes, try a year without buying anything new and let that $200 multiply in a savings account, 401K, or CD. That’s $2,400 that could grow with compound interest and investment growth. In three years, you could have over $10,000 or more and that’s a good start toward owning a home.

HOMEOWNERS’ ADVICE

Remodeling Trend to Rise

According to the Federal Reserve, the primary residence accounts for about one-quarter of all assets held by households, ahead of other financial assets, business interests and retirement accounts.

It’s important to protect the value of your home by keeping it repaired and updated. Not only does an update make a home more attractive, it should improve functionality, make it more comfortable, increase the enjoyment, and increase the value, upping the chances of a higher resale price.

If you’re planning on making home improvements, you’re in good company. Home improvement spending is expected to increase by seven percent over the next year, according to research by the Joint Center for Housing Studies of Harvard University. Homeowners will spend about $350 billion on updates by mid-year 2019, confident that they’re making a good investment, thanks to rising home values and a growing economy.

How are they spending their money? The National Association of Home Builders (NAHB) said in May 2018 that bathrooms have overtaken kitchens as the number one remodeling choice.

NAHB surveys of homeowners who recently remodeled their homes found that over four out of five remodeled baths (81%) while 78% remodeled kitchens. Nearly half of respondents replaced doors, remodeled whole homes or added a room to existing homes. Most homeowners start with smaller projects such as new front doors, green-friendly appliances, programmable thermostats, low-emissivity windows and new HVACs.

As home remodeling continues to be popular, you will likely to see increased benefits from your home improvements.

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DRE#: 02006080
540 S. Lake Ave. Pasadena, CA 91101
©2018 BHH Affiliates, LLC. Real Estate Brokerage Services are offered through the network member franchisees of BHH Affiliates, LLC. Most franchisees are independently owned and operated. Berkshire Hathaway HomeServices and the Berkshire Hathaway HomeServices symbol are registered service marks of HomeServices of America, Inc.® Information not verified or guaranteed. If your property is currently listed with a Broker, this is not intended as a solicitation. Equal Housing Opportunity. 

About the author

Loren Anderson

Realtor®

Originally from Ohio, Loren brings his Midwestern values to every interaction. He values integrity, trust and mutual respect when dealing with both clients and agents. He understands that every client he works with deserves only his best and that anything less is unacceptable. If you are looking for an expert advisor in the San Gabriel Valley and surrounding area that treats you more like a friend than a client, contact Loren Anderson today… Always striving to be Your Friend in Real Estate.

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