First-Time Homebuyer Guide

If you’ve been renting an apartment for awhile, now is the time to buy. Mortgage rates are expected to increase in 2018, so it’s better to lock in a rate before they rise. The savings add up over the life of a loan! If you’re still on the fence about buying, here’s a piece of advice from self-made millionaire David Bach. He told CNBC’s Make It that not buying a house is the No. 1 money mistake for a young person.

He went on to say, “Buying a home is the escalator to wealth in America. Homeowners are worth forty times more than renters.” – David Bach. Click here to see the source.

So, let me show you a roadmap for the home buying process, so you know what to expect along the way so your first home buying experience is stress-free!

1. Make a wish list

A wish list is a great way to organize your home buying search. It’s the first step for first-time homebuyers. You can do this on your own or with a Realtor®.

Include in your list, what you like and don’t like. This includes must-have features and bonus items (things you’d love to have but aren’t a deal breaker). Also, list items you don’t want in a home. This is important because it narrows your search.

This wish list is a starting point. It’s not definitive. It can and should change during your home search. Update it as you look at homes and see home features for yourself.

With the availability of home tours online, most homebuyers think they know what they want in a home before they look. After all, they’ve been emotionally drawn to those features through virtual tours. However, a word of caution about this. Real estate photos give you a glimpse into a home. Homes often look different in person, and viewing a home in person may change your perspective on a home’s layout. That’s why you should make your wish list based on your wants and desires rather than online photos. You’ll update this list later when you look at homes in person, but consider this the beginning of your home buying roadmap.

2. Set a budget

Once you know what you’re looking for, set a budget. Figure out how much you’re spending and saving each month. Are there miscellaneous expenses you can cut out of your monthly spending to save more money? Seeing where your money goes, is a powerful budgeting tool. It forces you to recognize your expenses, identify areas you can save money, and helps you achieve your goals like owning a home.

When you’re planning for a home purchase, you need to figure out how much you can afford each month. Financial guru, Dave Ramsey, suggests spending no more than 25% of your income on a home. He uses this example. If your take-home pay is $5,000 a month, multiply that by 25% to find out your maximum mortgage payment. In this case, it’s $1250 a month.

Our FREE mortgage calculator will help you crunch the numbers.

Don’t forget your monthly expenses include more than just your mortgage payment. Think about property taxes, homeowners insurance, and private mortgage insurance if you’re putting less than 20% down and not taking advantage of a down payment assistance program.

Be realistic, and don’t buy more house than you can afford. Set your own limitations rather than letting the lender set them. If you’re in Kansas City, a study by HSH, a publisher of mortgage and consumer loan information, shows you need to make roughly $44,258 to afford a home.

Your housing budget should also include extra expenses like the cost of moving, closing costs, and regular homeowner maintenance and repairs to your home.

Finally, create an emergency fund and budget for it. Even with the best home inspection, unexpected issues pop up when you own a home. When you’re a homeowner, these expenses can easily be more than your monthly budget for regular homeowner maintenance and repairs. Prepare for them by creating room in your budget to set aside money for an emergency.

There are many components to a housing budget. Spend time on it, but don’t let it overwhelm you! Remember, the goal is to stay organized so you can have a stress-free and fun home buying experience!

3. Down payment

Once you know your budget, consider how much money you’ll put down on your first home. Your down payment doesn’t have to be 20-percent. If you put down less money, you’ll pay private mortgage insurance with a conventional loan. However, there are plenty of down payment assistance programs to help you get a loan without paying PMI.

Down payment assistance programs offer lower interest rates, low or no down payments, federal tax discounts and more. Each program has its own rules, and some may have funding limitations especially on the local level. There may be residency requirements as well as income and geographic restrictions. Your Realtor will walk you through the eligibility requirements for each program.

4. Check your credit

Your credit is one factor that determines how much you’ll pay for a home loan. When you begin speaking with lenders, they’ll pull your credit score. However, you want to have a good idea of what it might be before you speak to a loan officer. That way you can fix credit reporting mistakes or blemishes on your record before you apply for a loan.

You can check your credit for free through AnnualCreditReport.com. It’s the only FREE credit check. Be suspicious of other so-called free offers.

There are three credit agencies – TransUnion, Equifax, and Experian. You can get a free report from each agency for FREE every 12 months. You can access all three through AnnualCreditReport.com. Get all the reports at once, or at any interval each year.

While the credit report won’t show you your score, it will detail all your accounts and payment history. Check it for accuracy as mistakes are common. If you find a credit error, alert the reporting agency. The Federal Trade Commission has a sample letter you can use to dispute a credit report error. If you have documentation supporting your position, include that information.

If your report is in good standing, free of delinquent accounts, your credit score will reflect it. That’s why it’s not as important that you pull your credit score. Your lender will do that for you when you start the home loan process. The credit report is indicative of your score.

Want other 8 other smart money moves?

5. Get a Realtor®

Once you have the foundation for buying your first home, it’s time to get serious. This is a good point to find a real estate agent to guide you through these next few steps.

Choose a Realtor you trust. Meet with them and decide for yourself if they’re the right fit for you.

As a first-time homebuyer, you won’t pay the Realtor fees. They’re paid by the seller so protect your biggest investment yet with a Realtor by your side.

6. Get a pre-approval letter

Fifth, get a preapproval letter. In a seller’s market, you need this before you begin searching for homes. A seller may not accept your offer without a preapproval letter.

So what is this letter? It tells the seller that your lender checked your credit and verified your financial paperwork. You’ll need lots of financial documents to get this letter. You verify your income, assets, employment, address and more.

7. Shop around for a lender

When you’re getting your pre-approval letter, talk with several lenders. While you’re not committing to a lender yet, it’s best to have a letter from a lender you feel comfortable using. Shopping around can save you thousands of dollars. It’s worth the time, and really it doesn’t take that long, to work through this step.

When you shop around for a lender, you’re comparing costs to get the loan. Fees vary by bank, and you’ll notice you may get different rates. Shopping around for the best mortgage product pays off!

Depending on your down payment, you may have fewer lender choices. Some down payment assistance programs require you use a lender that participates in that particular program. If you’re getting a conventional loan, the possibilities are endless. Consult with a variety of lenders if you can – mortgage broker, credit union, and bank (local or national).

If you want suggestions, ask your Realtor.

8. Search for homes

Congratulations! You made it this far. Now the fun part — searching for homes! Work with your Realtor to identify neighborhoods where you’d like to live. You can always add and subtract neighborhoods later.

Also, talk to your Realtor about your budget. Stay within your price range. That’s why you set a budget. Have a maximum home value in mind before you look at your first home.

Ask your Realtor to set you up on a home search or set one up yourself in seconds! This will automatically send you emails with the latest homes for sale. You can also do your own searches based on the price, address, MLS number, map view, and more.

While it’s easy to look for homes online, make sure you go to open houses and visit homes too. The more you see, the more you’ll know what appeals to you.

Search for a variety of homes – at the high and low end of your budget. This shows you what you can get for your money.

9. Update your wish list

As you’re searching for homes, your wish list may change. Perhaps you’re open to a new layout or realized your budget allows you to purchase a home with features you didn’t think you could afford.

Plus, what you think you want in a home isn’t always what you want. You may discover this halfway through the home buying process. That’s fine.

Your wish list keeps your search focused, so update it often.

10. Keep an open mind

It’s easy to get overwhelmed when you’re searching for a home, especially in a seller’s market where inventory doesn’t last long. Quick decisions are tough when it’s your first home because it’s such a big financial commitment! Be patient with yourself. You will find that home you’ve been saving for and dreaming about for years.

Consider new construction opportunities. These are a great option when there’s an inventory shortage. If you can’t find what you’re looking for on the resale market or for the price you want, build it! With new construction, you can build from scratch, put the finishing touches on a home in progress, or purchase a model home. We have new construction lots in Stone Canyon of Blue Springs, Sonora Valley, Brittany Ridge, and Rosewood Hills. Some of these homes are more affordable than you think. You can get a new construction home in Grain Valley or Kansas City starting in the low $200’s.

When you’re looking at homes online, be open to different layouts and neighborhoods. Don’t overlook a home with poor online photos or a home that appears to be a fixer-upper. Bounce ideas off your Realtor. Keep an open mind. Sometimes there really is a diamond in the rough.

When you’re open to the possibilities in a home, you’ll see it in a different light.

As a Professional Home Stager and former house flipper, I see the potential in homes that need a little work. My vision for design and rehab can help you decide if it’s a money pit or a valuable fixer-upper.

11. Research the neighborhood

Once you find a potential first home, research the neighborhood. Talk with would-be neighbors and visit the community during the day and at night. You’ll see the area in a different light.

Researching a neighborhood also includes checking the cost of living there. While there are cost of living calculators for cities, it’s harder to find one for a neighborhood. But, it really does matter.

For example, car insurance varies by zip code. So, as part of your research, call an insurance agent and get quotes for auto and home insurance before you commit to a neighborhood. The neighborhood you choose could cost a few hundred dollars a year more than another one. Understanding these costs ahead of time, helps you stick to your budget when you’re making an offer.

While most suburban communities are safe, crime happens everywhere. It’s more prevalent in some neighborhoods than others. Many cities, including Blue Springs and Lee’s Summit offer free crime mapping tools so you can pinpoint the areas where the most crime happens. Vigilance is important.

Take your time to make sure it’s the right choice. There’s a lot of pressure in a seller’s market to make an offer quick. It’s a reality of buying a home now, but don’t let it get to you. If you wait a few days to make an offer, it’s probably too late. However, it’s perfectly fine to take a few hours or even a day, to make your decision.

If your home search takes longer than expected, use the extra time to do some of the research ahead of time. Research potential neighborhoods early on rather than waiting until you’re ready to make an offer.

12. Make an offer

When you know you’ve found your first home, make an offer. Your real estate agent will run what are known as “comps” for the neighborhood. These are comparable home sales. Use these as a guide to make your offer.

Consider if you’re going to ask for closing costs or an allowance for home improvements. Include these in your offer, along with your pre-approval letter.

13. Negotiate

Once you make an offer, the waiting game begins. It’s the hardest part of the home buying process. Prepare for a counteroffer, and an ensuing negotiation. It’s part of the process.

While you’re waiting, look at your budget and remind yourself of the maximum price you’ll pay for a home. Having this number in mind before you receive the counter offer, allows you to look at it objectively. It helps you make a rational rather than emotional decision.

Buying a home is an emotional process. That emotional connection is what drives you to make an offer. So, by this point, you want your offer accepted. A counteroffer that’s out of your price range is the last thing you want to hear. However, it’s not the end of the world. You can make a counteroffer. Negotiation is a process.

Just, stick to your budget!

14. Get a home inspection

Congratulations! The seller accepted your offer and you’re on your way to buying your first home. Now, it’s time for an inspection. This is an important part of the home buying process, because it clues you into potential problems with the home.

First, make sure you hire a qualified home inspector. These are terrific questions to ask him, so you know your potential investment is protected.

Second, understand what type of inspection you’re getting. In Kansas City, termites and radon are inspections we recommend. Your home inspector may or may not offer this service. That’s why you need to make sure you’re asking the right questions, and understand what’s included in the home inspection.

Think of the inspector as your personal detective. Nobody wants him to find anything wrong with the house they want to buy, but it’s important the inspector find the problems before you move in. That way you can ask the seller to help with some of the repairs and you can prepare for others.

15. Negotiate some more

Now that you know what needs work in the home, it’s time to negotiate some more. Make a counteroffer, asking the homeowner to fix some of the items that came up during the inspection.

In a competitive market, you probably won’t get everything you ask the owner to fix. Critical safety issues are hard to ignore, so put those on your list. The other items are up for negotiation. Talk to your Realtor® about this, as they’re master negotiators!

16. Finalize your mortgage with the bank

Once the negotiation is over, you’re well on your way to buying a home. Now, it’s all about the paperwork. There’s lots of it!

Electronic signatures make it easy to navigate the paperwork. Expect frequent emails, though, requiring your signature.

You’ll get a loan estimate that details important information about your loan. Make sure it includes the details of your loan that you discussed with your lender. Look at your rate, loan terms, estimated monthly payment, and escrow costs. Plus, look to see if there’s a prepayment penalty. The Consumer Financial Protection Bureau, a government agency working on consumer financial interests, shows you what a sample loan estimate looks like so you know what to expect.

When you’re looking at these documents, check for mistakes. Human error and typos happen. You want to catch these before closing.

You’ll work with the bank and title company to finalize the paperwork and prepare for closing.

17. Purchase insurance

Your bank will need your homeowner’s insurance policy to process your loan. Most lenders create an escrow account for you, which automatically pays your insurance and property taxes each year. Your monthly mortgage payment includes the loan and your escrow payment.

If you got insurance quotes when you were researching the neighborhood, call the agents back and finalize the numbers.

If you’re starting from scratch, call several agents to get quotes. Some insurance agents represent one company and others work with multiple carriers. Get at least three quotes. Like your loan, you want to shop around for insurance to find the most competitive rate.

Since this is your first time buying a homeowners insurance policy, sit down with your agent and talk through the policy. It’s a more detailed policy than renter’s insurance, so you want to understand all the nuances in case you have a loss.

In Kansas City, hail is your biggest threat. Understand how your policy works if you file a claim.

18. Prepare for the move

Now that you have a little break, other than signing your life away every few days, it’s time to prepare for the move. Talk with several movers, and get quotes from at least three.

For an accurate quote, have the moving company visit your apartment, rental unit, or current space to look at the number of items they’re moving. Otherwise, you may find yourself going over budget on moving day. Nobody wants that surprise!

Moving insurance is often overlooked, but it’s probably one of the most important things. If you don’t get it, you’ll get pennies on the dollar for expensive items. Damage happens during moves, so you need to prepare for it. If you lose something valuable, the value is based on its weight unless you have insurance.

For example, a $1000 computer may be worth just $20 because they don’t weigh much. Consider moving insurance. It’s not that expensive and it’s worth it.

If you’re moving pets, prepare them ahead of time. They sense something is changing, and you want to make sure you prepare your pets for the move!

19. Review the final documents

At least three days before closing, you’ll receive the closing disclosure. It lists the final terms of your loan, closing costs, and who receives and pays money at closing. Compare this form to your loan estimate. The loan term, product, and amount should match your estimate. The CFPB shows you a sample closing disclosure form.

Right before closing, you’ll also receive a settlement statement. This includes the financial details of the home purchase including the down payment, loan amount, closing costs, and any other fees or credits to the buyer and seller to finalize the purchase.

20. Closing

Your big day is finally here! Prepare to sign your life away for about 30-60 minutes. Real estate disclosures are more consumer-friendly than ever before, so it’s easier than ever to understand what you’re signing. Read the documents before you sign, so you understand what you’re agreeing to.

Once that’s done, enjoy your new home! It’s a great financial decision, and you’ll make years of wonderful memories in your new house! Congratulations!

The post 20 Tips You Need To Know About Buying Your First Home appeared first on Sally Moore Real Estate Team.

How to avoid overpaying for a house

Are you buying a new home because of a marriage, baby, or divorce? Life often dictates when it’s time to buy a house. You can’t always wait for the perfect real estate market. But, you may be asking yourself am I overpaying for my house?

It’s possible to find a reasonably priced home even in a seller’s market.

Home buyers who follow these 10 steps, will buy a house that fits their budget.

1. Create a housing wish list

It’s easy to go online and shop for a new home. While it’s tempting to look at all the pretty housing pictures, don’t do it. Wait until you create a housing wish list. You don’t want photos to change your perspective on what you want in a home.

Create a list of ten must-have items in your new home, ten negotiable items, and ten dream amenities in your new home. This list is your foundation for finding a home you’ll love without overpaying for it.

2. Create a housing budget

Once you know what you want in a home, it’s time to set a budget. Don’t peek at those listing photos just yet. Don’t worry. The time is near.

First, create a housing budget. How much are you willing to pay each month while still meeting your long and short-term financial goals? Don’t forget an emergency fund.

There are plenty of housing calculators that make it easy to come up with this monthly figure. They take into consideration your down payment, interest rate, taxes, and so on.

You want your housing costs to be no more than 25-percent of your income. Consider mortgage payments, utility costs, taxes, maintenance expenses, insurance, and HOA fees in your budget.

Create your own housing budget rather than letting your lender tell you how much house you can afford.

Many housing calculators and mortgage calculators ask very specific questions which are essential for accuracy. Try a few different calculators and come up with a budget.

While many homebuyers budget for a 20-percent down payment, it’s not always necessary. There are plenty of down payment assistance programs available, right here in the Kansas City area, to assist buyers. Some apply only to first-time homebuyers, while other programs apply to other types of buyers. See if you qualify for down payment assistance before you finalize your housing budget.

Right before you decide on a final number, take a peek at the housing photos. Can you get the items on your wish list for the price you expected?

If not, adjust your wish list and budget. It’s important to look at photos of homes before you set a budget. That way you know what’s possible for the money and what’s not.

It’s easy to make adjustments to your wish list and budget now. It’s hard to get back on budget once your emotions take over.

If you can’t get everything on your wish list for your budget, make adjustments.

Knowing your max budget and have a firm wish list before you tour homes, so you don’t overpay for a house.

Search for affordable homes now.

3. Consider new construction

New construction is an often overlooked solution for many buyers in this housing shortage. They offer a way to save money on a home.

Unlike resale homes, there’s less concern about unexpected expenses like a furnace that breaks or needs replacement. New construction keeps your emergency fund intact.

With most new homes from a reputable builder, you won’t have a significant expense for up to 10 years. That’s huge for your budget.

Plus, energy-efficient or green homes reduce your utility costs. Kevin Stallings of Dreams and Design Building offers ENERGY STAR rated homes in Stone Canyon of Blue Springs. That’s another way to save money on your budget, so you’re not overpaying for a house you can’t afford.

As a new construction expert, I walk homebuyers through the building process from the beginning to the end. As a staging professional, my eye for design helps homebuyers make decisions along the way. Check out all the new construction options for homes in Kansas City, Blue Springs, and Grain Valley.

Grain Valley new construction

In Grain Valley, Rosewood Hills offers lots of new construction options as development is underway in two phases currently. You can pick a home already under construction or choose your own lot. Home prices start in the mid $200’s. Find a home for sale in Rosewood Hills.

Kansas City new construction

Blue Springs new construction

In Blue Springs, there are a few golf course lots available in Stone Canyon. This entire neighborhood is building out quickly, so act fast to get a new construction home. Homes start in the $300-thousand dollar range and go up to a $1-million. Check out the homes for sale in Stone Canyon.

Brittany Ridge offers the best of both worlds. Students attend Blue Springs Schools, which are among the best in the nation and the Kansas City area. Plus, residents pay the lower city of Independence taxes. Homes start in the mid-$200’s.

Finally, Sonora Valley is a maintenance provided community in Blue Springs. Prices start in the low $200’s and once again Dave Richards, the exclusive builder, offers hardwood flooring, ceramic tile, and granite. Search homes for sale in Sonora Valley.

4. Prepare for a bidding war

While bidding wars get lots of headlines, they don’t happen all the time in a seller’s market. They do happen, though, so you need to prepare for it just like you prepare for storm season.

Bidding wars threaten your housing budget. That’s why it’s crucial you lay out your budget early in the process, so you don’t overpay for a home.

To prepare for a bidding war, look for homes in the middle of your budget. For example, if your budget is $300,000 search for homes in the $200-$250,000 range first.

If you can’t find a home, look for more expensive homes. If you start your search in the $300,000 range, you aren’t positioned well for a bidding war. Plus, you risk falling in love with a home slightly over budget or one that will put your budget in jeopardy.

5. Prepare for your offer to be declined

Just like the bidding war advice, search for homes in your mid-budget range first. That way, you’re in a better position to negotiate if the seller declines your offer.

Again, stay within budget!

6. Look beyond photos

Those real estate photos are back again. Don’t dismiss a home based on its photos. Sometimes pictures don’t tell the whole story. Have you ever taken a picture and thought – wow that person or landscape looks better in person? It happens all the time including in real estate.

You truly get a feel for a home when you walk through it, navigating the space for yourself.

When inventory is low, it’s important to walk through more homes, so you get a feel for floor plans and options.

Also, homes that require a little TLC don’t photograph well. However, it may not take much to make that home shine. Look at a variety of houses, including ones that require a little extra work to get them move-in ready. You’ll likely have more room to negotiate which saves you money on the purchase price.

You’ll be surprised by the difference a fresh coat of paint makes in a home.

Look past the pictures online, and tour all homes. This home buying strategy will help you save money on your next home.

7. Write a personal letter

When you make an offer on a house, write a personal note. Some buyers even include photos. Why is this effective? Homes have a lot of sentimental meaning, and every seller wants the new owners to love the house as much as they did.

You usually don’t meet the other party in a real estate transaction. So, a personal letter makes you stand out in the crowd and allows you to form a personal connection.

It helps convince a seller to accept your offer, which enables you to stay within budget and avoid a bidding war.

8. Be ready to close quickly

When a homeowner puts their home on the market, they’re usually interested in selling quickly. So, when a buyer offers to close fast, they gain negotiating power.

If you have a pre-approval letter and non-contingent offer, it’s possible to close in 30 days. Closing quickly entices the seller to negotiate on price and accept your offer.

You can also shorten the inspection time. If you work with a Realtor®, who is recognized, respected, and recommended they’ll have a network of people eager to inspect a home quickly for a real estate transaction.

9. Hire a recognized, respected, and recommended Realtor®

Research your Realtor® and hire an experienced one. Ask friends and family members for recommendations. Hire a recognized and respected Realtor® in your community because they have experience behind them. After all, it doesn’t cost you a dime. Buyers don’t pay agent fees. It won’t hurt your negotiation either. Most real estate agents charge the same commission fee. Why not hire someone who has the experience to help you during a housing shortage?

Experience is important especially in a seller’s market when inventory is low. A connected agent will still be able to find you a home. Look for someone who has a vast network of people they can tap into when you can’t find a home. They may know the perfect home for you, that isn’t on the market yet. That’s where experience pays off. An experienced agent, who’s truly an expert in the neighborhood you’re looking in, helps when inventory is low. You can’t rely on MLS listings in a seller’s market.

They’ll also make sure you don’t overpay. Experienced and trusted Realtors® count on repeat business. They want to help you buy a home and then resell it. If you pay too much, guess who is going to hear about it when it’s time to sell? Your real estate agent.

A recognized, respected and recommended real estate agent knows the market, neighborhoods, and pricing. They’ll find you homes others can’t when inventory is tight.

10. Think outside the box

Finally, think outside the box. If you have an experienced Realtor®, they’ll help you do this.

If you have no choice but to overpay for a house, consider what’s in it. Ask the seller if they’ll leave behind items that you can use.

Moving is a hassle, and sometimes sellers are more willing to leave behind items than negotiate on the purchase price. It’s one less thing for them to move, which saves them money and saves you money from purchasing the product later.

Think outside the box throughout the home buying process, and you’ll find the home of your dreams within your budget.

The post How To Avoid Overpaying For A House In A Seller’s Market appeared first on Sally Moore Real Estate Team.

How to find the perfect neighborhood

1. Proximity to your hot spots

Location, location, location! You’ve heard the saying, and it has real meaning when you’re buying a home.

When you’re buying a home, the location means everything. Do you want a rural, city, or suburban setting? That sets the mood for your home life. You can walk wherever you want to go in the city, but you have to drive in the suburbs.

Look at a home’s proximity to gas stations, grocery stores, home improvement, restaurants, recreational facilities, and clothing stores.

You may want to even factor in the closest Trader Joe’s, Starbucks, or Whole Foods. Statistics show homes closest to these businesses are popular with buyers. But, you’ll pay a little more money for these homes because of the demand. Oh, the Starbucks effect!

Once you decide on a neighborhood, drive to your favorite spots from it. Make sure you’re comfortable with the time it takes to get places from that neighborhood.

2. Find a home in the best school district

High performing school districts drive home sales because families want to live in those areas.

The school district is something to consider even if you don’t have children because it affects the resale value of a home. While you don’t want to be overly concerned about resale value, it’s something you should consider.

In Kansas City, there are a number of high performing school districts including Blue Springs, Lee’s Summit, and Grain Valley on the east side of the Kansas City metro.

When evaluating school districts, consider factors like class size, academic and athletic opportunities, and test scores.

In the KC area, look at the school district on the home’s MLS description. The school districts don’t always have the same boundaries as city limits.

The Sally Moore Real Estate Team is making it easy for you to find homes for sale in the school district of your choice.

Search for Homes For Sale in the Lee’s Summit School District

Find Homes For Sale in the Grain Valley School District

Search for Homes for Sale in the Blue Springs School District

Look at the district, and the individual schools assigned to your neighborhood. The National Center for Education Statistics makes it easy to see class sizes and basic school information.

3. Economic snapshot

Once you choose a neighborhood, research the city. The Census Quick Facts make it easy to compare cities in seconds. Find out the average income, households with a college education, commute time, average home price and so much more!

That gives you a good perspective on who lives in your city, and what life will be like for your family.

While not neighborhood specific, it’s still a good snapshot.

4. Safety

Safety is a top reason homeowners choose neighborhoods, especially if they have children.

Blue Springs and Lee’s Summit offer crime mapping. You can see everything from a serious crime to an information only report. While the mapping software doesn’t include specific addresses, you can see the block where the crime occurred.

You can view the data in a map form, making it easy to zoom into a neighborhood you’re thinking about buying a home.

Knowledge is power, so the more you know, the more you can provide.

If you’re in love with a house in a neighborhood where there’s crime, perhaps a home security device will set your mind at ease. You can even sign-up for alerts, through the crime mapping software. That way you get an alert if something happens in your specific neighborhood. There are lots of steps you can and should take to stay safe.

For parents with children, the National Sex Offender Registry or the Missouri Sex Offender Registry are valuable tools too. Find out if sex offenders live near your home.

5. HOA

When you’re researching a neighborhood, ask if it has a homeowners association (HOA). Some home buyers like HOA communities and others don’t.

Second, look into the strength of the HOA. Some HOAs don’t do much while others are quite active.

Third, check the HOA’s financial health. Year-end financial documents and budgets provide insight into the neighborhood’s finances and expenses. You want to be careful before you buy into an HOA with poor financial health, because you may have unexpected expenses later.

6. Spend some time in the neighborhood

The best way to get a feel for a neighborhood is to walk around and drive it. Spend time there, looking at homes and talking with residents.

Are homeowners happy? Do homeowners take care of their homes? Are there lots of children or is the neighborhood quiet?

Each answer affects your quality of life and should be a factor when you’re researching a neighborhood.

Visit the neighborhood during the day and at night. You get a different perspective of a neighborhood at night than you do during the day!

7. Consult with a Realtor®

When you’re interested in a home, Realtors® provide comparable home values in a neighborhood. That tells you a lot about a neighborhood. The data shows you how long homes sat on the market, how the sale price compared to the list price and the price range of homes.

A real estate agent offers first-hand knowledge that puts all the data you previously collected into perspective.

They can also help you decide between resale and new construction. The Kansas City real estate market offers more new construction options than resale properties. You can even purchase a new home, put the finishing touches on it, and still move in within 30 to 60 days. Of course, you can always choose your lot and build from the ground-up too.

We’re new construction specialists and have properties in Stone Canyon, Brittany Ridge, and Sonora Valley in Blue Springs, Villa Meadows in Kansas City, and Rosewood Hills in Grain Valley.

Browse all homes for sale in Grain Valley, Lee’s Summit, and Blue Springs neighborhoods.

The post How To Find The Perfect Neighborhood appeared first on Sally Moore Real Estate Team.

Shop around for insurance

When you’re buying a home, shopping around for insurance is the last thing you want to do. It’s worth it, though, because it can save you hundreds of dollars each year. Insurance premiums vary by company so it’s likely you’ll find price differences when you shop. If this is your first homeowner’s insurance policy, sit down with your agent so he can explain how the insurance policy works.

Whether you’re a first-time homebuyer or an existing homeowner, you’ll be surprised how much you can save by shopping around for insurance. Here’s how to do that effectively.

1. Review your policy

Before you begin shopping for insurance, take out your current insurance policy. If you don’t have one, skip ahead to number 2.

Review the coverages and get familiar with them. That ensures you get an apples to apples policy comparison among the various carriers.

Secondly, consider the current value of your home, jewelry, and possessions. Are your coverages adequate?

Life circumstances change, so you may become over-insured as time passes. The reverse can happen too.

Check your policy limits, and reduce them if they’re too high. That will save you money on the premium.

2. Get 3 quotes

Once you know what’s in your policy, call three different companies for insurance quotes. Ask friends, relatives, your Realtor®, and neighbors who they use.

Research each company, as you want to make sure you choose one that helps when you need it most.

Check the Missouri Department of Insurance complaint index, to find out the average number of complaints about each company you’re shopping.

3. Shop more than price

Make sure you’re doing an apples to apples comparison, and not just shopping based on price. Policies vary greatly. Make sure you know what your insurance policy covers.

Grab your current insurance policy, and use that as a guideline when you’re shopping around.

Ask the new insurance agent lots of questions. You may find you have coverage you don’t need, or you don’t have what you need.

Talking to 3 new insurance companies provides perspective into how insurance works and your current coverage.

Related Link: Homeowners Insurance Checklist: What’s In Your Policy?

4. Raise your deductible

If you’re looking to save money, consider raising your deductible. That’s the amount of money you’ll pay upfront if you have a covered loss.

The lower the deductible, the higher the insurance premium. So, if you raise the deductible, you’ll lower your rates. However, don’t make it too high.

In Kansas City hail storms are common, so at some point, you may make a hail claim on your roof. So, it’s possible you’ll have to pay that deductible at some time.

Make sure the deductible is affordable if you have a loss.

Ask if you’ll pay the standard deductible or a special deductible for hail. Some policies have separate deductibles for hail or other losses.

5. Buy auto and home policies from the same insurer

It pays to purchase in bulk. Just ask Costco shoppers! Well, the same concept holds true for insurance.

Insurance companies give discounts if you buy your auto and homeowners insurance policy from them.

6. Update your home

If you have an older home, with electrical that’s not up to code, it may pay to update the wiring.

Before you make updates, ask your insurance carrier if it will make a difference in your premium.

While not an issue for Kansas City, if you ever buy a second home in Florida, consider hurricane impact glass or storm shutters. This extra line of defense from expected storms lowers your insurance rate.

7. Ask about discounts

Insurance agents know how to save money. Ask about the available discounts.

Home alarms and security cameras may save you money.

Ask before you invest, so you know there’s a definite payoff in the home improvement.

8. Get “clued” into the history of a home

Before you buy a house, get a “clue” about its history. The Comprehensive Loss Underwriting Exchange (C.L.U.E.) is a consumer report that contains valuable information about insurance claims on a property.

It’s helpful to buyers and homeowners.

When you’re buying a home ask for a C.L.U.E. Seller’s Disclosure Report, and review it carefully. It shows you any insurance claims within the last five years. That’s an important “clue” into problems with the home. The report removes sensitive information about the seller but includes the date of loss, type, status, the amount paid, policy type, and insurance company name.

It gives you insight into the history of a home. For example, if the previous homeowner had a water claim, check for mold.

If you’re not buying a home, but just shopping for insurance, pull your C.L.U.E. report from time to time to verify its accuracy. Like any other consumer report, including your credit report, mistakes happen. Make sure the information is accurate because it affects your insurance rates.

Be wise when shopping for homeowners insurance

Shopping around is also a great tip for long-time homeowners. It pays to keep the same insurance company, as they often offer long-term policyholder discounts. However, never get too comfortable. You should shop around for insurance rates every few years to make sure you’re getting a competitive rate. You’ll be surprised how much you can save by shopping around.

Don’t get hung up on price. Make sure you’re comfortable with your insurance policy, its coverage, and limits. Don’t make changes just to save money. You want to make sure your insurance policy makes you whole after an unexpected loss.

It’s devastating enough to lose your home to fire or lose valuables after a theft. Make sure your insurance will protect you when you need it most. At the same time, be a smart consumer and make sure you’re getting a competitive insurance rate.

The post How To Pay Less For Homeowner’s Insurance appeared first on Sally Moore Real Estate Team.

Kansas City Realtor®

Welcome to the Midwest. While the laid-back atmosphere may have you thinking you can find your own home, remember you don’t pay commission as a buyer. Realtors® offer tremendous value. When you hire a Kansas City Realtor® to buy a house, you find the perfect neighborhood and home of your dreams at the right price. That’s because you have a personal advisor, master negotiator, and objective person by your side.

Many home buyers believe it’s easy to find their own home. All you need is a computer, and you can virtually tour home after home without ever leaving the comfort of their couch. While looking at home photos online is a starting point, a Realtor® will guide your search.

Some pictures don’t give you the full view of a home. It’s just a snapshot, and it’s hard to connect with a home through photos. You want to buy a home that you emotionally connect with. You can only achieve that when you’re in the space.

Photos can also distort how a space appears, which is why you don’t want to use online listings as your only source when you’re shopping for a home.

While it’s great for buyers to conduct their own searches, Realtors® send you updates when new homes hit the market. In a seller’s market, the best homes sell fast, so it’s important you’re on top of the latest homes that hit the market.

Plus, a Realtor® offers valuable insight into photos. They’ve looked at tens of thousands of pictures in their careers, and have a keen sense for photos that make a home appear better than it is. They can also point out quality homes with poor images.

Many home buyers think they know what they want, but soon discover they don’t know what they want. That’s ok. A Realtor® will guide you through those decisions, and open your eyes to new possibilities.

When inventory’s tight, you need someone on your side who knows how to uncover homes that haven’t hit the market yet. Real estate agents have a vast network of contacts that they can tap if you can’t find the home you want.

Think of your real estate agent like your advisor or assistant. Isn’t it so much easier to find clothes that fit when you bring along a friend, who can give you honest and thoughtful feedback? The same is true for home buying! It’s even more important you have a trusted advisor because the purchase price is much larger than a pair of jeans.

Realtors® navigate the road for you

Real estate is complicated, and the rules and regulations always change. Navigating the documents, disclosures, timelines, and negotiation yourself is time-consuming.

Even if you’ve bought a home before, it probably was several years ago. You forget steps along the way. Trust me; there are many! Do you want to learn everything as you go along? How much time will that take?

Plus, there are tons of terms tossed around during the process. Do you know the difference between a CMA and a PUD? Realtors® know the lingo is making it easier to communicate with the other agent and understand what’s happening with the mortgage and title work.

When you’re making such a large purchase, that impacts the next 20 or 30 years of your life, you want someone on your side who understands the process and how to navigate it successfully.

Related link:
How to unlock the power of a real estate agent

Master negotiators

When you’re purchasing a home, most buyers don’t offer the list price. However, how low should you go? A real estate agent will help with this answer. Many factors go into an offer, and a Realtor® will know how to help you negotiate the offer and counter-offers.

While price is one thing to consider, contracts also include addendums or other considerations. For example, you may ask the seller for certain furnishings or home improvements. That can dramatically change the finances of a home purchase.

A lot goes into buying a home, and you want a master negotiator on your side.

As a seller, you also need a negotiator on your team. When you sell your own home, it’s easy to make mistakes. After all, you don’t practice real estate day in and day out. It’s hard to remove the emotion from an offer when you’re selling your own home. On average, FSBO homes sell for $55,000 less according to the National Association of Reatlors®.

Valuable insight

A real estate agent also offers valuable insight into the housing market, neighborhood, and schools. If you’re moving to Kansas City, a local Realtor® provides insight into the community. Need a plumber or an insurance agent? Ask your real estate agent.

If you’ve lived in a city for some time, a Realtor® still offers insight into the area that you don’t necessarily know as a resident. For example, a real estate agent understands the pricing of neighbors. They can tell you if prices are up or down if the neighborhood is popular with other buyers, type of residents living in an area, and more.

A Realtor® brings a lot of value to the home buying process!

Objective point of view

The home buying process is emotional. You’re emotionally attached to homes, neighborhoods, and your money! It’s a big purchase, so buyers get emotionally if a seller doesn’t budge on the sales price or improvements discovered during the home inspection.

Your real estate agent is emotionally invested in you, but does not get emotional about the process! That’s a significant distinction! It allows them to have an objective point of view, which is helpful when you’re negotiating.

During the back and forth that happens several times during the home buying process, you may not get everything you want from the seller. Your real estate agent will tell you if something is a big deal or not a big deal because he has an objective point of view.

A Realtor® also has experience on his side!

The post This Is What Happens When You Hire A Kansas City Realtor To Buy A Home appeared first on Sally Moore Real Estate Team.

How to find a good home inspector

Of course, buyers and sellers want the home inspection to go smoothly. By this point in the home buying process, buyers have invested a lot of time and emotion into the process. Sellers, on the other hand, just want to sell their property! So, there’s anticipation on both sides when it’s time for the home inspection.

The buyer chooses the home inspector. Choose someone who takes his time, finds problems, and offers you a detailed report with photos and solutions. A good home inspection report helps a buyer make their case to a seller when requesting repairs as part of the negotiation.

Most Realtors® know a reliable home inspector that they work with often. This person usually offers a good price, schedules jobs quickly, and provides a reliable inspection service. Realtors® want happy homeowners, so they work with inspectors who get the job done right. They want the inspector to find the problem rather than a homeowner once they move in. So ask your real estate agent for a recommendation.

Look for companies with a home inspector certification. When you hire an inspector with an American Society of Home Inspectors (ASHI) certification, you’re getting a qualified inspector. ASHI inspectors follow strict standards, pass a rigorous technical exam, and follow a strict code of ethics.

Inspectors can’t call themselves ASHI “certified” until they professionally examine more than 250 homes. ASHI means experience!

Kansas City home inspections

During an inspection, the professional looks at the structure, foundation, exterior, roofing, plumbing, electrical, heating, air conditioning, interiors, ventilation, and fireplaces.

A home inspection is mostly visual. Your inspector will use a few tools like a thermometer, water meter, and possibly a gauge to check for drafts.

While an inspector provides a good overview of the systems, you may need a specialized technician if you or your inspector have specific concerns. For example, if you’re worried about the condition of the electrical wiring, you may request a second opinion from an electrician. Same for the HVAC system and so on.

Before you hire your home inspector, ask him what services he provides. These are 6 terrific questions to ask your home inspector, to make sure you’re getting the most bang for your buck when you hire that company. In Kansas City, consider a termite and radon inspection. While not standard, they’re common in this area. Some inspectors provide these services while others require you to hire a company that specializes in radon and another one for termites.

The inspector provides a comprehensive report, with images and recommendations, at the end of his inspection. It’s often 50+ pages detailing all sorts of safety issues. Some are more critical than others. Your Realtor® can help you decide which ones to ask the seller to fix.

Missouri home inspection checklist

Missouri home inspections take several hours, depending on the size of the home and its condition. The buyer attends with the Realtor®.

The seller does not attend the inspection.

During the inspection, you have a lot of time in the house. That’s your chance to get familiar with the home, spend time in it, and learn about the systems in the home and their condition. Some inspectors show you potential problems as they find them, or point out things about the house that are important to know.

Here’s a home inspection checklist, detailing the areas the inspector checks.

Roofing

During a roofing check, the inspector looks at the age and condition of the roof.

The inspector also looks for missing shingles, damaged shingles, aging shingles, and gutter problems.

If the roof is older and in poor condition, you may ask the seller for a new roof. Or, negotiate an allowance if you’ll have to replace it at a later date. Knowing the condition helps you financially plan.

Exterior

The inspector checks the walkways and driveways for cracks and settling. In Kansas City, settling is common. It’s a safety and potentially a trip hazard. Mudjacking solves the problem by lifting the concrete. As a home buyer, you want to know about this issue before you buy a home.

Wood rot is another big problem with Kansas City homes. It’s common near windows and doors. It’s caused by moisture, whether it’s the weather, leaky windows, or un-primed wood.  Depending on the extent of the damage, wood rot repair may require replacing the wood around the window, or you may need to replace the window.

During an exterior inspection, the inspector also checks around the house including the garage doors and outdoor water sources like spigots.

Structure

The structure part of the home inspection looks at the home’s skeleton. That includes the foundation, framing, and walls.

Foundation issues are costly. So, it’s crucial the inspector check the foundation for problems.

Plumbing

The inspector makes sure there are no plumbing leaks, the water heats, and the proper safety mechanisms are attached to the water heater.

During the inspection, water leaks on ceilings or walls will be noted. They may be a sign of a plumbing or roofing problem.

Mold and water damage are two significant concerns when you’re buying a new home. They could be a sign of a plumbing, roofing, or HVAC problem.

Electrical

Next on the home inspection checklist, electrical. During a home inspection, the professional checks your outlets, breaker box, fuses, and voltage to make sure it’s up to code.

Electrical issues in older homes prevent challenges, as these homes are usually not up to code. In newer subdivisions like Grain Valley and Blue Springs, electrical problems are less of an issue than in Brookside. However, the inspector may find a few small things.

It’s up to you to decide which electrical issues you’ll fix and which ones the seller should fix ahead of time.

Heating and air conditioning

In Kansas City, where it gets cold in the winter, your heating system is a critical component of a home. Your inspector checks the age of the system and its condition.

The certified home inspector checks the heating system, air conditioner, ductwork, insulation, vents, flues, and chimneys to make sure they’re safe and in proper working condition.

Carbon monoxide is a safety concern with heating equipment, so it’s important to have these appliances checked.

While the home inspector understands how the heating and cooling system works and common problems associated with it, he’s usually not an HVAC technician. So, if he has any concerns, he may suggest having an HVAC company service the heating and cooling system.

Appliances

The ASHI certified inspector also checks your appliances. For example, he makes sure the stove reaches the proper temperature.

He also tests the dishwasher to make sure it completes a cycle and drains properly.

Kansas City Radon Mitigation

Radon is a big problem in Kansas City, due to our soil. It’s naturally in the soil, rock, and water. It makes its way inside your home through cracks and holes in the foundation.

Radon is odorless and tasteless. It’s in the air we breathe, which is why it’s a hidden hazard. The Surgeon General found radon is the second leading cause of lung cancer in the United States.

However, don’t let radon scare you so much that you walk away from a home. While it is a health hazard the Environmental Protection Agency points out there’s a simple solution.

If you’re buying a home in the Kansas City area, get it tested for radon. Nearly one in 15 homes has elevated radon levels. In Kansas City, the numbers are often higher as the metro’s counties are in high hazard areas.

Jackson, Clay, and Cass County Missouri homes are located in the government’s red radon zone. That means indoor air typically has radon levels that are above 4 pCi/L. The EPA suggests fixing homes above this level.

Johnson and Leavenworth Counties Kansas are also in the red zone.

Most homeowners (sellers) have never tested for radon. Yet, the health hazard is in their home!

Even if a homeowner already has a radon mitigation system, home buyers should verify it’s working with a radon test.

Some Kansas City home inspectors provide this service, and others require you hire an outside radon specialist.

Related Link: Radon in Kansas City: What You Need To Know

Termites

In Kansas City, termites are another concern. Get an inspection because termites can cause extensive damage. It’s best to find the problem before it gets out of hand.

Like radon, some home inspectors include this service. Others require you to hire a company that focuses only on termites.

Home inspection process

Whether you’re the buyer or seller, don’t fear the home inspection process. It’s another part of the real estate transaction for both parties.

A Missouri home inspection checklist should include the points above. The American Society of Home Inspection Checklist also covers a few other areas like septic systems which are not common in the suburbs of Kansas City. If you have acreage, though, this is something to consider.

As a buyer, you probably won’t get the seller to fix everything.

As the seller, be willing to compromise and make improvements. That’s a big home buying mistake in a seller’s market.

A Realtor® offers valuable advice throughout the home buying process, but especially during and after an inspection. Most of the time the inspection leads both parties to re-negotiate the deal.

Plus, your Realtor® will know electricians, heating and cooling technicians, and other home service providers who can fix concerns detailed in the inspection.

It’s best to have a trusted advisor on your side to protect your financial interest in a home.

The post Home Inspection Checklist: What You Need To Know appeared first on Sally Moore Real Estate Team.

Radon Mitigation Kansas City

The air in one out of every 15 homes has the cancer-causing radioactive gas. In Kansas City, the incidence is usually higher because it’s more naturally prevalent in this area.

Radon occurs from the natural breakdown of uranium in rock, soil, and water. Once that happens, the gas finds its way into a home through holes and cracks in the foundation.

While alarming to some home buyers, it’s not a deal breaker. That’s because it’s possible to mitigate.

The Environmental Protection Agency puts it this way — radon is a health hazard with a simple solution!

Radon Levels in Kansas City

Radon levels in Kansas City are typically high, since homes here are in a high hazard area, determined by the Environmental Protection Agency. Jackson, Clay, and Cass County Missouri homes are all in the red zone. That means indoor air typically has radon levels above the acceptable range. So, homes here need a mitigation system to eliminate health concerns.

On the Kansas side of the metro, Johnson and Leavenworth Counties Kansas are also in the red zone.

Most homeowners (sellers) don’t know if they have it because they never tested for it. You can’t see or smell radon. So, without a test you don’t know if the levels in the air are safe.

Don’t assume a home doesn’t have the radioactive gas because the neighbors tested and didn’t find it. Every home is different. Play it safe, and have the home you’re purchasing tested.

If the home you’re buying has a radon mitigation system, you still want to test the air. That way you know the device works. Testing is part of mitigation. You want to re-test every few years.

The tests are inexpensive. Mitigation is more costly, which is why it’s best you test before you buy a home. That way you can incorporate the radon mitigation cost into the real estate negotiation.

In Kansas City, radon testing should be part of every home inspection. Ask your home inspector if he provides the service or contracts it out.

Seller advice

In Kansas City, sellers should think about radon before they put their home on the market.

If the test comes back clear, you can market it as radon free to buyers. That may make your house stand out to buyers, compared with your neighbor’s homes which may have the gas.

On the flip side, if the home tests positive for it you can fix the issue before the home goes on the market. That speeds up the real estate sale and shows you’re a proactive homeowner.

Relevant tests for home buyers are within the last two years.

How to test for radon

Test for radon in the lowest level of the home that you use, even if you don’t sleep there or spend the majority of time in that room. You can buy DIY testing kits, but you want a professional for a real estate transaction.

Professional testers use specialized equipment to detect radon in the air. There are two types of testing – passive and active.

In passive testing, a device sits in the open air for a specific amount of time. The monitoring system doesn’t need power to work. Devices sold in hardware stores and DIY kits are typically this type.

Active devices use power and continuously monitor the air in a home. The radon levels change based on time of day, weather, and a homeowners habits.

Here’s what you need to know — testing is easy. The device measures the air quality in your home for a few days, but it requires no effort from the buyer or seller.

How to mitigate radon

In Kansas City, a vent pipe and fan typically remove the gas from a home. It’s installed in your home’s slab. A tall pipe pointing away from the house is a telltale sign of a mitigation system.

After the mitigation, the radon company re-tests your home to verify the repairs lowered the levels.

The EPA also encourages you to re-test your home every few years to make sure the system works properly.

If you have any radon questions, let me know. I can also put you in touch with a reliable and trustworthy Kansas City radon expert to test your home.

The post Radon Mitigation in Kansas City: What You Need To Know appeared first on Sally Moore Real Estate Team.

Shop around for insurance

To find the right insurance policy, you have to ask the right questions. If you’re buying your first home, it’s difficult to know what to ask. That’s why shopping around for insurance is the best decision.

Talk to multiple, trusted insurance advisors. Each one may give you a different insight into how the policy works and its coverage.

Ask friends, family, and your Realtor® for insurance agents. Call at least three of them to find the perfect agent.

Shopping around for homeowners insurance also saves you money. Policy rates vary dramatically sometimes between carriers. Whether you’re buying your first home or lived in your house for awhile, shop around for insurance rates every few years.

Start the conversations on the phone. Once you narrow down your list, meet with your agent in person to learn more about your policy. As a first-time homebuyer, this is an important step even though it’s probably one you’d like to check off your list. Of course, you have a hundred other things to do. You’re buying a house after all. However, take an hour to speak to your insurance agent. You’ll thank yourself later if you have a loss.

Hail

If you’re buying a home in the Kansas City area, hail is the biggest threat to your home. In 2017, several hail storms hit the area damaging roofs.

Insurance experts in Kansas City predict hail will damage your roof before it’s reached its full life.

That’s why it’s important to ask how your policy treats hail claims. Will you pay flat rate deductible or will you pay a percentage of your home’s value? It depends on how your deductible is setup.

Also, ask how hail affects your rates. While that’s like predicting the future, insurance agents have a general idea of how their insurance carrier handles hail claims.

Finally, is there a discount or guarantee for using an insurance provided hail contractor? Or can you find your own?

You want to know how the insurer handles hail claims before the storm passes over your house.

Jewelry

Some insurance companies cover jewelry in the homeowner’s policy and others require itemized or even separate plans depending on the insurer’s coverage rules and the cost of your jewelry. Ask how they cover jewelry claims. Will you pay the same deductible you pay for hail damage or water damage to your home? Or are jewelry claims handled differently?

Endorsements

Like jewelry, your home may not be covered for certain losses unless you have endorsements or special policies.

Home-based businesses, antiques, firearms, and sewer and drain backup typically require extra coverage.

Sewer and drain coverage is something to consider in the Kansas City area, where basements may flood during a heavy rainstorm. If water backs up from drains, sewers, or sump pumps, sewer and drain endorsement coverage protects you.

Personal property

Personal property insurance coverage is limited. You buy a certain amount, based on how much you estimate you have in your home.

Most insurance agents can guestimate based on the size of your home and its home value. You want to make sure you have enough coverage to replace items in your home.

Secondly, find out if you get actual cash value or replacement coverage. Actual cash value takes into account depreciation. So, your television or computer won’t be worth as much on the day you lost it as the day you bought it.

Replacement coverage gives you an allowance so you can buy a similar TV or computer as the one you lost. There’s no depreciation.

Limitations

There are limitations throughout your policy, far beyond personal property. Talk to your agent about the limits that protect your financial interests best.

If you don’t feel comfortable with the standard limits, you can always buy more insurance.

Exclusions

Even though you’re insured, you won’t get coverage for everything. Insurance policies have exclusions for floods and earthquakes. You need flood and earthquake coverage to get your losses paid.

There may be other exclusions in your policy. Read it carefully, so you know what’ it covers.

Liability

If someone trips in your yard and gets hurt, are you covered? Typically, your homeowner’s insurance policy offers liability coverage up to a certain amount. It usually includes court and medical costs.

Make sure your limits are high enough to protect you if an accident happens on your property. The standard liability protection, according to the Insurance Information Institute, is $100,000.

You can also purchase an umbrella insurance policy, which offers extra liability coverage outside the standards of your homeowner’s policy. It helps protect your other assets, providing additional liability protection if something happens.

Pictures

After you decide on a homeowners insurance policy, take photos of every room in your home. Don’t forget your jewelry.

With a smartphone, it’s so easy to snap photos of every room in your home. Take close-up pictures of more costly items like TV’s and computers, so you know the brand.

Then, take a video inside and outside your house. That way you make sure you have proof of everything in your home. Just in case a picture missed something.

Photos and video speed up the insurance claim process when there’s a loss. There’s no questioning what’s in your house. Just pull out your photos. Remember, a picture is worth a thousand words!

Store your video and photographic evidence in two places. Your computer or flash drive and the cloud. That way you’re protected even if you lose your computer.

Sales receipts also hold value. If you have them for high-ticket items, save them.

While pictures speed up the claims process, you may want to take the time to write down the items in your home. You’ll have to do this if you file an insurance claim.

The Missouri Department of Insurance offers a room by room fillable home inventory checklist, so you don’t miss anything in your home.

Deductible

Finally, consider your deductible. When you’re purchasing a homeowners insurance policy, the deductible affects the rate. The deductible is the amount of money you’ll pay for a covered loss before insurance kicks into effect.

Some insurance companies are doing away with fixed rate deductibles. Instead of choosing a $1000 or $2000 deductible, the deductible is a percentage of your home’s insured value. The Insurance Information Institute used the following example. A home worth $100,000 with a 2-percent deductible, has a $2,000 insurance deductible in a percentage based deductible policy.

Understand the coverage

Before you buy an insurance policy, understand the coverage. That way you’re protected in the event of a loss.

The Insurance Information Institute has a booklet of commonly asked insurance questions and answers, so you know if your policy will cover you under different scenarios.

Home ownership is enjoyable, but it’s full of surprises. Plan for the worst case scenario, so the financial part of rebuilding or repairing your home is the least of your concerns when something happens.

The post Homeowners Insurance Checklist: What’s Included In My Policy? appeared first on Sally Moore Real Estate Team.

Home inspector questions

Many home buyers are not sure what to expect during the home inspection process. While you’re hiring an expert to uncover hidden issues with the property, you still need to make sure he’ll offer you the insight you need when purchasing a home.

While there’s often a push to get a quick home inspection, interview at least two inspectors before deciding on one. Rates, services, and expertise vary by company.

1. Are you certified?

Like every professional industry, credentials matter! When you’re buying a home, you want the most trained and qualified inspector you can find. A home purchase is a significant investment, and you want to discover the problems during the real estate transaction not after you move in.

Think of a home inspector as your personal detective. He’s working for you, uncovering hidden problems in a home. Both small and large. Some basic and others are critical.

You want a full picture of what you’re getting into before you purchase a home.

Hire an inspector certified by American Society of Home Inspectors (ASHI). These inspectors adhere to strict technical standards, pass difficult exams, and follow a strict code of ethics.

Also, ask about mechanical or engineering qualifications. Sometimes, the inspector has an extra level of training which allows him to look at your home through a different lens.

Plus, ask about continuing education. That shows the inspector is up to date on the latest housing trends.

2. How much experience do you have?

While credentials matter, so does experience.

If they’re a certified ASHI home inspector, they’ve professionally examined more than 250 homes. They need that much experience just to call themselves ASHI “certified.”

In Kansas City, ask if they service your neighborhood often. That way you know they’re familiar with your type of home. The design and structure of a home in Brookside is different than a home in the suburbs like Lee’s Summit.

You also want to hire an inspector who acts as a resource. While he’ll point out all the problems in a home, you also want someone who can give you some perspective. Is that a big deal or something I can fix later? That is important when it comes to technical areas of the home like heating and cooling and electrical systems. With other issues like leaks, you can see if it’s a big problem. Most homeowners and homebuyers can’t tell if an electrical wiring issue is a fire hazard. Make sure your home inspector can explain potential concerns.

3. How much does the inspection cost?

Prices vary dramatically for home inspectors. It depends on the size of your home, age, condition, and services performed. In the Kansas City metro area, expect to pay between $4-500 for a termite, radon, and home inspection.

Most inspectors, though, can quote you a price upfront based on the size of your home.

4. What services do you provide?

There are three types of inspections most Kansas City homeowners need to protect themselves. You want a home inspection, termite check, and radon test.

Some home inspectors offer all three services, and others only perform the basic home inspection. Ask your inspector about the scope of work.

If he doesn’t perform all three inspections, ask for references to other companies.

5. How long does the home inspection last?

Most inspections take around three hours. It all depends on the size of the home and condition. Still, ask your home inspector for the typical length of his service. This question may provide more details on the services he provides. You want an inspector who will provide the most comprehensive analysis of the home you’re purchasing.

Related link:
Home inspection checklist: what you need to know

6. Can I see a sample inspection report?

Before you hire a home inspector, ask for a sample report. That shows you what the inspector checks. It also shows you the types of pictures you’ll receive detailing problems and how to fix them.

Photos are important for you and the seller. They pinpoint the problem, especially with the wiring. The inspector typically draws arrows on the photo or circles areas of concern if it’s not evident from the photo.

The reports are typically 50+ pages. They should include the problem, risk hazard, images, and solution.

Ask how long it will take to get the inspection report. Time is of the essence with a real estate transaction, so the quicker you know the condition of the home and potential problems the better off you’ll be.

7. Can I trust this inspector?

The final question is for your Realtor®.

If you ask your Realtor® for a home inspector recommendation, you’ll typically find an inspector who is qualified, respected, and reasonably priced.

That means the Realtor® probably trusts them, and they find most home problems!

When you ask your home inspector these 6 questions, you’ll be one step closer toward finding your next home!

The post 6 Terrific Questions To Ask Your Home Inspector appeared first on Sally Moore Real Estate Team.

It doesn’t matter the circumstances for your move — married, new baby, new town, or new neighborhood — it’s easy to get stressed out when you’re buying a home. However, it doesn’t have to be that way. With a careful plan, that starts long before your move, it’s possible to buy a home stress-free. Here’s the secret to making that happen.

1. Downsize before you move

Downsize and declutter before you move to a new home. Even if you think you’ll fit all of your belongings in your new home, don’t skip this step! Pack only the essentials when you’re moving to a new home.

Most movers charge based on rooms, boxes, or weight. There’s no reason to pay to move items that you don’t need.

I suggest making three piles. The first pile stays, throw the second pile away, and the third pile goes to charity. If you haven’t worn it or used the item in six months, it gets thrown in the trash or goes to charity. Take your time decluttering. Load your car up every night with the items you no longer need.

At the end of a week or two, your load is lighter! Decluttering will make it easier to decorate, find stuff, and organize once you’re in your new home.

You don’t want to bring your old baggage, or old clutter, with you to your new home! It’ll likely sit in boxes, taking up space and collecting dust.

Related link: Ultimate Moving Guide: How To Move Like A Pro

2. Tap into your Realtor®’s knowledge

Before you hire a Realtor®, interview them. Make sure they have the experience to find you the home you want in the neighborhood you want.

A Realtor® is a great asset because they know the area. I have tons of recommendations for my buyers. I have you covered if you want to know the good, bad, and ugly of a Lee’s Summit, Grain Valley, or Blue Springs neighborhood.

I’ve lived in the Lee’s Summit area for years, so I know the best restaurants, neighborhoods, and schools. I can help you pick a home that fits your lifestyle. If you want to live close to restaurants and shopping, I can give you neighborhood options.

Metropolitan areas like Kansas City offer a lot of diversity. Homes in Brookside are much different than the subdivisions of Grain Valley. Choose a Realtor® who knows the area, as each area varies so much. As a former television news reporter, I’ve been to most of the city, so I know what each city in Kansas City has to offer a home buyer.

I can also help you with a reliable plumber, electrician, or landscaper for your new home. Real estate agents make moving easy, by providing vetted and trusted contractors. Inevitably, you’ll have to hire one or two during the move.

Think of your Realtor as a treasure trove of information. They have inside knowledge of the area, and if they don’t know the answer to a specific question they have a network that does.

3. Stay focused, yet realistic when searching for homes

Before you buy, create a buying roadmap, so you’re not distracted by features or houses that are out of your price range. This list will keep you grounded, and help you maintain a realistic viewpoint while shopping for homes.

You have to be realistic about your budget, timeframe to move, and a home’s features. No home is perfect. Along with some fantastic features, come flaws. For example, the house may be the right size for your family, but the yard is too small. You have to take the good with the bad.

Depending on the market, your schedule, and your budget you may or may not get everything you want in a home. Your Realtor® can keep your expectations in check throughout the process, so you’re realistic about the home you purchase.

You also have to be realistic about the costs associated with buying some homes, especially fixer-uppers. If you know there are improvements you’ll want to make, have a contractor visit the house to give you bids. It’s better to know what costs will be associated with your home purchase before you buy, than after. The last thing you want is buyer’s remorse!

4. Look beyond a home’s structure

When you’re buying a home, you focus on the design and layout. Once you’ve considered those elements, look beyond the structure.

Consider the neighborhood; proximity to restaurants, shopping, and entertainment; and noise. Is it near a major road, highway, or railroad tracks? Don’t make a decision based on a five-minute walk through a home.

Spend time in the home. Go back a second or even third time to look at it. Sit down and think about how your lifestyle and family would use the space.

It’s possible to find a perfect neighborhood, but it takes time and research.

If you have a Realtor® who has a design background, ask them about the space. Where would they place furniture?

My partner and I are Accredited Home Staging Professionals. We’ll help you envision your new home! Home staging isn’t just for sellers. It’s an asset for buyers too.

Visit the neighborhood during the day and at night. Walk the streets, meet the neighbors, and ask them questions. You’ll learn a lot from current homeowners.

Finally, drive to your favorite restaurants, shopping, and child’s school from the neighborhood. Is it close enough to your potential new home?

The structure matters, as you spend a lot of time there. However, other factors matter just as much as they all affect your lifestyle!

5. Don’t ask your whole family for their opinion

Home buying is a personal decision. You should have an emotional connection to a home, that’s unique to you! That’s why you want to keep opinions to a minimum.

Opinions matter and open your eyes to the pros and cons of a home, but don’t get too many opinions. They’ll sidetrack you from your home buying roadmap, and they’ll tarnish how you feel about specific homes.

After all, your uncles and aunts are not living in the home. You are! So, let your opinion count most!

If you want another opinion, ask your Realtor®. He or she knows the market pricing and decorating trends which can help you make a purchasing decision.

6. Prepare pets ahead of time

Moving is difficult for animals. They’re easily spooked. So, remember them when you’re packing and settling into your new home.

First and foremost, keep a routine. It will help your pet adjust pre and post move.

Plus, give your pet a new home base in your new home. Let him adjust to one room at a time. Fill it with his favorite toys and food.

Related Link: 10 ways to prepare your pet for moving.

7. Don’t get too emotional

Emotion drives home buying decisions, but don’t let it get the best of you especially during negotiation. You’re negotiating the purchase of a home because you’re emotionally attached to it. Don’t forget; the seller is attached too! They lived there for years and had many memories in the home.

Emotion is important, but don’t let it overpower your decisions. Stay open-minded and listen to your Realtor®.

8. Compromise

Home negotiations are a give and take. Don’t make it a battle over who is going to “win.” There are no winners or losers.

Be open-minded throughout the home buying process, and you’ll get the home you want. If you fail to compromise, you may lose it.

9. Get pre-approved

The home buying process should start long before you look at your first house. Create your list of must-haves in a home, so you have a roadmap to guide you through the process. Create a budget, and get pre-approved for a mortgage.

A pre-approval letter makes a big difference! Sellers are more likely to accept an offer from a buyer who is already pre-approved.

10. Prepare for the unexpected

When you buy a new home, it’s impossible to catch every issue with a house. A quality home inspection helps, but the reality is you’ll find things once you live in the home for some time. Sometimes, it takes a year to reveal flaws or issues that need fixing.

Prepare for the unexpected. Consider a home warranty if you’re concerned about the age or condition of appliances. Sometimes, the seller will pay for a home warranty.

Financial preparation also goes a long way. Make sure your budget includes an emergency fund.

Also, ask the sellers about their average utility expenses. The costs may be higher than expected if you’re moving to a bigger home.

With other expenses, like homeowner’s insurance, call your insurance agent before you put an offer in on the home to find out the premium price. Then call two other agents, as shopping around for homeowners insurance can save you more than a thousand dollars.

Stress is natural when you’re buying a home. After all, it’s a big purchase that will affect your finances for the next 15 to 30 years. Follow these 10 steps, and you’ll lower and possibly eliminate the stress of buying a home.

The post 10 Proven Ways To Get Rid of Home Buying Stress appeared first on Sally Moore Real Estate Team.