3 Factors That Can Increase the Cost of Insuring Your Second Home

STORY / BY HOMEINSURANCE.COM 

By Arthur Murray

When you inquire about home insurance, one of the first questions an agent will ask is, “Is this for your primary residence?”

It might seem like an odd question, but they ask because policies differ greatly when they’re for second homes — particularly for those in vacation spots. In many cases, you could pay more to insure your second home than your primary residence. There are at least three reasons for this:

• A second home in a traditional vacation spot — for example, at the beach, in the mountains or near a lake or river — can come with additional risks.
• By its very nature, a vacation home can stand vacant much of the year, which is a sore spot for insurers.
• If it’s not vacant, that could mean it doubles as a rental — another potential red flag for providers.

Let’s look at why each point matters to providers, and how you can deal with each issue.

Your second home is in a vacation spot

Obviously, a home on the coast or along a lake or river faces a greater threat from flooding, which is not covered by either standard home insurance or by a second-home policy. You’ll need a separate flood policy for that, and those cost more depending on the flood threat.

Coastal homes, of course, also face a heightened threat of hurricane damage. Standard home insurance (and second-home insurance, for that matter) typically covers wind damage. However, you’ll pay more for coverage depending on the threat of powerful winds at the location.

Home insurance in coastal areas can come with a separate hurricane or wind deductible. Your deductible is the amount you agree to pay out of pocket toward a covered home insurance claim. It’s usually a dollar amount such as $500 or $1,000.

Hurricane deductibles, common for homes along the Atlantic Ocean and Gulf of Mexico, are set as a percentage of the home’s value — usually between 1 percent and 5 percent, though sometimes higher.

For a mountain retreat, you need to consider the possibilities of mudslides or landslides. Neither is covered by standard home insurance or by earthquake insurance. For mudslides, you’ll actually need flood insurance. For landslides, you need separate “Difference in Conditions” coverage; talk to your agent about where to find this.

Your second home is vacant part of the year

This point matters greatly to home insurance providers, because damage to a home can worsen substantially when it’s not immediately detected. The chance of that occurring multiplies when the home isn’t occupied part of the year.

If there’s a break-in, for example, no one may notice for some period, which means there could be more break-ins during that time. If hail knocks a hole in the roof, rain could lead to extensive water damage before you discover it.

Most standard home insurance requires that the home not be unoccupied for more than 30 days at a time.

Some providers will sell you an endorsement for the home insurance policy for your primary home that will handle the second home. You could earn a 10-percent discount by following this path.

Your second home is a rental part of the year

If you rent out your second home, you could need a landlord policy, which could cost 10 to 20 percent more than standard coverage for the second home. Why? Because providers believe you’ll take better care of the home than your tenants will.

The landlord policy will help you if your tenants cause damage at your second home. It will also protect you in case your tenants or their guests are injured at your home.

Tips for second-home coverage

Now that you’ve resigned yourself to the difficulties of insuring second homes, there is some good news. There are ways to reduce how much you pay for coverage.

• Seek multiple quotes. When dealing with any type of insurance, always seek quotes from multiple providers. They evaluate risk differently, which means premium amounts can vary greatly.
• Ask about discounts. As mentioned above, many providers will give you a discount on second-home coverage if you insure your primary residence with them. You could also win discounts by installing a security system or taking other measures to make the second home safer. Be sure to ask your agent about potential discounts.
• Pay in full. If you pay the full premium upfront rather than in installments, you usually can spend less for coverage.
• Raise your deductible. Your deductible has an inverse relationship with your premium. The higher the deductible, the lower the premium. Just make sure you can come up with the deductible when necessary.

Finally, remember that while owning a vacation home comes with costs, you’ve also got the benefit of being able to get away whenever you want. Enjoy your good fortune!


article courtesy of: http://www.zillow.com/blog/insuring-your-second-home-176299/

18 Gift Ideas for Graduates

STORY / BY ZILLOW TEAM 

By Cat Overman and Jackie Turner

After the caps have been tossed, graduates are hit with major life changes — starting a job, commencing with a new life, relocating, perhaps even finding a home. Help the grads in your life warm up their new home with a thoughtful gift.

Dining

Basic Kitchen Tool Set, West Elm, $89

Kitchen tool set

Solid teak utensils and a stylish marble holder will add elegance and function to your grad’s new kitchen. Chefs of all skill levels will find use in all of these pieces. $89

Coffee brewing system

Those school loans won’t pay themselves. New grads can save a few bucks by making their daily cup of joe at home. A Keurig coffeemaker provides lots of flavor options. $200

French cookbook

Having their own full-size fridge and oven means your grads can finally start refining their cooking skills. They say anyone can cook in the French manner … with the right instruction. Help them get started with a classic resource. $23

Entertaining

Summer Blues Pitcher, Pier 1 Imports, $35

Pitcher

Upgrade your grad’s plastic pitcher with a vessel ideal for serving ice cold water or a hand-crafted concoction. And the cerulean-and-lime ombre coloration is on trend — citrus colors are trending for summer. $35

Flatware set

Hosting a small gathering of friends or a small dinner party will require some elegant basics. A 45-piece, mirror-finished set will flatter any table setting. $90

Basic bar glasses

Your grad can say goodbye to red plastic cups. A set of six classic glasses can do double the work — for daily meals or cocktail parties. $60

Decor

Lynwood Double Lamp, Rejuvenation, $175

Double lamp

They may not be up burning the midnight oil anymore, but grads still need a reliable light source. Equally at home on an end table or nightstand, this graceful lamp adds style to any room. $175

Cork globe

Stir fond memories of their semester abroad with this stylish globe, which comes with six red push pins for marking significant spots. $129

Floor mirror

That back-of-the-door mirror from the big-box store has been around since freshman year. Replace it with this elegant floor model for a more sophisticated morning routine. $161

Maintenance helpers

Bamboo Laundry Hamper, West Elm, $149

Bamboo laundry hamper

Upgrade that worn-out laundry duffle to this stylish hamper made from rapidly-renewable bamboo and recycled plastic bottles. Bonus storage space makes it a great piece for small spaces. $149

Hammer screwdriver combination tool

Basic tools for making a new apartment feel like home: a claw hammer for hanging artwork and three screwdrivers for assembling furniture and making everyday fixes. The tempered steel and solid brass design makes this four-in-one tool attractive enough to leave on display. $22

Natural rubber lint brush

Handcrafted in Germany from natural rubber and oiled beech wood, this reusable brush whisks away lint, hair and dust to keep upholstery and clothing spotless. Grads will look polished and professional as they head out for job interviews. $30

Organization

Versus Mint Galvanized Trunk, CB2, $149

Galvanized trunk

The perfect spot to stash college mementos, this vintage-style trunk does double duty as a storage aid and coffee table. The mint hue will refresh any room. $149

Multicolor coat hook

The key to a tidy entryway or closet, this mid-century-inspired statement piece offers the ideal landing space for coats, scarves, dog leashes and shopping bags — without taking up floor space. $69

Utility baskets

Clutter control is a necessity in every busy life. Corral mail and takeout menus in small baskets by the door, and use larger ones to collect throw blankets, board games and books. $25-$39

Bed & bath

Window Clip Frame, Pier 1 Imports, $30

Window clip frame

A clip frame is an easy way to display treasures, memories and photographs. Your grad can create their own art with a distressed wood frame. Clips hold their favorite pictures, postcards and notes. $30

Bathroom accessories set

A clean-lined set of accessories adds a bit of sophistication to any bathroom. And it sure beats toting toiletries in a plastic caddy. $20-$100

Throw blanket

Is your grad looking to retire an alma mater blanket? A soft throw, available in a variety of color options, adds a pop of color — and warmth — to any bed. $30

And, if your grads already have everything they need, how about giving them a book full of real estate tips? They may be renters now, but it’s never too soon to begin planning for the future (or scouting out the neighborhoods that will appreciate!).


article courtesy of: http://www.zillow.com/blog/graduates-gift-guide-176349/

5 Tips for House Hunting With Kids

STORY / BY CARE.COM 

Nearly 17 percent of Americans pack up their households and move each year. The U.S. Census Bureau estimates 13 million children are among those moving.

Whether you’re headed down the block or across the country, moves are stressful. Including your children in your home search may help alleviate some anxiety, but you need to enter into the process with a plan. For example, you’ll want to narrow down some of your options – online or in person – instead of dragging the kids to all 83 properties for sale in your price range.

These tips can help make your house hunt an enjoyable family task:

1. Make safety a priority

Most tweens and teens can make their way through the house hunting process without risk of physical harm, but toddlers and young children are another story.

“Parents need to know their kids and how they’ll behave in unfamiliar surroundings,” says Leslie Ebersole, a real estate agent in Chicago’s western suburbs. “No one wants a child to get hurt. If your children are explorers who can’t stop themselves from opening doors or drawers, it might be best to leave them with grandparents or a sitter. You just never know when there might be a dog behind the laundry room door, or stairs without a handrail, or a bathroom with a sunken tub they could fall into.”

2. Think beyond the house

For children, moving can be an especially anxious time. They’re being asked to leave their friends, their school and their extracurricular activities.

Work with your real estate agent to ensure your house hunt includes stops at area parks, schools, churches, dance studios and sports fields, or plan side trips that allow your children to see their new community.

“Uprooting kids is never easy, especially when you’re talking about teenagers,” says Ebersole. “Parents should let their agent know what matters most to their kids. More than a few times, I’ve driven teens to the mall to ensure them that their new town has an H&M, Dick’s Sporting Goods, California Pizza Kitchen … whatever it is that’s important to them.”

3. Know your child’s limits

While age plays an important role in determining how long a child will be able to stay focused on a house hunting trip, kids are, well, kids. Some children will be able to hang in there for a full day of showings, while others will melt down after just one or two.

If you know your child is going to need breaks along the way, plan for them. Tell your agent you can see two houses then you’ll need a 15-minute break to play in a park. See another house or two, then stop for snacks or lunch.

“Snacks – even a cooler in the car – may help your child endure a longer day of showings,” says Ebersole. “A good agent will also know where you can stop to take potty breaks along the way. Hungry, fussy, tired kids can get a house hunting trip off track faster than almost anything.”

If you’re in more of a rush, consider hiring a babysitter on open house days or asking family to help.

4. Give your child a job

You may be able to alleviate some of the stress about leaving your old home by getting your children to focus on what lies ahead.

Older kids can do Internet research about the town you’re moving to. Who founded it? How many people live there? What’s the town slogan? Younger children can cut photos from old magazines to create collages of things they’d like to see in their new home or new bedroom.

As you’re actually touring homes, ask your children to take photos or, perhaps, they could keep a checklist noting the best features of each house you visit. These simple tasks will help children feel more connected to the process.

5. Don’t let your child think he’s in charge

As important as it is to include your kids in the moving and house hunting process, it’s also crucial to let them know that adults will be making the final decision.

“I’ve seen families where a 13- or 14-year-old hates every single house he sees,” says Ebersole. “In reality that has very little to do with the houses and much more to do with the fact that he’s being uprooted in the middle of eighth grade.

“Change is hard, and it’s very important to acknowledge what’s important to your children. But, in the end, most purchasing decisions are made by parents. Let your kids know you care what they think, but their opinions are just one part of the house hunting puzzle.”


article courtesy of: http://www.zillow.com/blog/house-hunting-with-kids-176504/

The Homeowner’s Guide to Land Use Laws

TIPS & ADVICE / STORY / BY AVVO ON 22 MAY 2015

By Stephanie Reid, Avvo attorney and NakedLaw contributor

Land use law is a huge library of legal doctrine dating back centuries, covering everything from water and mineral rights to real estate planning and zoning. But how do these laws impact the average urban, suburban or rural homeowner, and what sort of liability could someone face if they accidentally or purposefully violated local land use laws?

What exactly is land use law?

The term refers to the body of real estate law that regulates the development and conservation of privately owned land. Government properties are not subject to land use restrictions.

Land use laws are controversial because the U.S. Constitution guarantees our liberty, which has always been interpreted to include the free use and control of one’s land. However, land use regulations have become increasingly necessary to curtail the environmental impact of growing populations, and to maintain order in certain urban and suburban areas.

What is an example of a land use law?

While many land use regulations are complex, interwoven labyrinths of local, state and federal laws, planning and zoning legislation is one type of land use law familiar to most people. These laws ensure that businesses are built in one area, residences in another — and that gentlemen’s clubs stay on the outskirts of town.

Are land use laws different from deed restrictions?

Land use laws are imposed by the government, whereas deed restrictions are defined by community associations. However, the two sets of laws can, and should, overlap on common issues, with deed restrictions possibly imposing greater regulations than the local government.

A violation of local land use laws could result in criminal fines or penalties, while a deed restriction violation is a purely civil matter.

What should urban residents know about farming and land use regulation?

Urban farming has become a hot topic within the realm of land use law, and local zoning laws are of significant importance when planning an urban farm. Depending on the location and size, an urban farm may be as small as a patio garden or as large as a city block, and it may encompass both produce and animal production.

The first type of zoning ordinance an urban farmer should consider pertains to the commercial aspect of urban farming. In other words, can the urban farmer sell crops, meat or eggs for money and, if so, where?

Secondly, farmers must be aware of zoning regulations related to raising animals, primarily those rules concerning neighborhood safety, noise ordinances and cleanliness standards.

Every local jurisdiction maintains its own unique set of zoning laws and conditional exceptions to those laws. For urban farmers interested in starting a community project, the first step is to meet with the local zoning and planning board to present your ideas and determine whether urban farming is feasible in your neighborhood.

Am I allowed to add a mother-in-law suite to my home?

A mother-in-law suite, or an accessory dwelling unit, will likely require a permit from the local municipality prior to construction. In many jurisdictions, this suite is actually considered a separate dwelling unit and, as such, requires issuing notice to the community prior to assembly. While some jurisdictions require a simple explanation of the proposed building, others need to see official building plans prior to approval.

Failure to obtain the proper permit to add an accessory dwelling unit can result in major fines — up to $500 per day or more — for each day the building remains unapproved.

What does the term ‘attractive nuisance’ mean?

An attractive nuisance is any sort of structure, manmade or natural, on your property that may entice children to trespass and play, putting them at risk of injury.

To avoid injuries, many localities have enacted attractive nuisance ordinances to prevent landowners from leaving swimming pools, ponds, trampolines or other known attractions open for danger.

Nuisance abatement ordinances generally impose common-sense regulations on homeowners, including mandatory fencing around pools, safety measures around wells or excavations, and rules against abandoned or vacant buildings.

What are the penalties for ignoring land use laws?

For violators of land use laws, local governments can impose daily fines ranging from a few dollars to several hundred dollars. If the violation presents a major safety issue for neighboring residents, the city may also seek an injunction, or legal order, against the property owner.

If fines and penalties add up past a certain point, the city may initiate a civil lawsuit against the homeowner, which could result in the loss of the property by government reclamation — a drastic, but realistic outcome in certain circumstances.


article courtesy of: http://www.zillow.com/blog/all-about-land-use-laws-176374/

5 Moving Strategies for Military Families

STORY / BY CARE.COM 

Moving is an inevitable part of military life. In fact, the average military family moves once every three years. All that packing, unpacking, uprooting and re-rooting can take its toll on the entire family.

Whether your move is a PCS (permanent change of station), a TDY (temporary duty) change or an OCONUS (outside the Continental United States) assignment, these tips may help make the transition less stressful.

1. Make sure you’re the one spreading the news

“Make sure that your family members and close friends hear the news from you and that when you give the news you have time to sit with them [distraction free] and talk about it,” advises military wife, mom and blogger Megan Egerton Graham. Remember that your tone and what you say about the move will influence how the news is received, especially with children. “Make the move feel more like an adventure for your kids – set goals for them, challenges, quests to discover information about your new place,” says Graham.

2. Partner with a military-savvy agent

Cyrus Bonney, a real estate agent near Washington’s Joint Base Lewis–McChord, specializes in working with military families. “Tons of agents say they know the [Veterans Affairs loan] program, but things are changing all the time and unless an agent really works to keep up with it, he’s not going to be giving his clients the best, most accurate information,” Bonney says.

Agents who are experienced in working with active-duty service members understand the short time frames these clients have to become familiar with their new duty station and complete a home search. Due to frequent relocations, you also need an agent who understands the importance of strong resale value.

“No one taught me how to buy a house when I was in the military,” says Bonnet, who went through four moves during his own military career. “If I’d known before what I know now, I’d have a lot more equity in my properties.”

When selecting your agent, ask about their VA loan expertise. You may want to work with an agent who has a Military Relocation Professional (MRP) or VA and Military Real Estate Specialist (VAMRES) designation or who is a member of the Veterans Association of Real Estate Professionals (VAREP).

3. Share the packing

Emptying cabinets and packing boxes is hard work – especially if your military spouse is deployed and you’re faced with tackling the chore alone. Why not invite some friends over to help? Provide some snacks and music. While your pals help you pack, you can share memories and celebrate friendships. Older children may even want to involve their friends in the process. Still need extra hands? Find cleaning, organizing and packing pros before or after you relocate.

4. Take photos

Get your camera out and start taking photos of your friends and the places you’re going to miss: your house, your favorite restaurant, the park where your kids learned to ride their bikes. Having these photos will help your children remember their stories and keep them connected to their pasts.

Conversely, you’ll also want to take pictures on any house hunting trips you go on. Snap photos of your new home, the local school, mall, sports arenas and more. These photos can help your children begin to build excitement for their new home – even before they get there.

5. Ask for help

All military branches have resources for families to track expenses, find qualified real estate agents, get reimbursed and transition into a new assignment. As soon as you get orders, contact your installation’s relocation office so you can begin to understand military regulations and procedures relating to your move.


article courtesy of: http://www.zillow.com/blog/military-family-moving-tips-176788/

Building Credit 101: Tips for Recent Grads

STORY / BY VERA GIBBONS 

If you’re a recent college grad, you’ve likely heard speeches about pursuing your passions and believing in yourself, but you probably haven’t heard much about establishing a good credit history. Here’s what you need to know.

It matters — a lot

Qualifying for mortgages, auto loans, apartments and even jobs has become dependent, to some degree, on your credit history.

Find out where you stand

The first step is knowing your current status. Access your credit report by visiting Annual Credit Report.com. Make sure all the information on the report is accurate, because errors can — and do — occur. Damaging discrepancies need to be corrected right away.

Build a credit history

Your credit history is one of the key factors making up your credit score, the all-important three-digit number that determines the rates you pay on everything from credit cards to mortgages to auto insurance.

The best time to build a credit history is when you’re young, and the best way to start a credit history is to get a credit card. This may sound counterintuitive, but if you don’t have a credit card, the scoring system has no information to go on for assessing your creditworthiness, so you come across as a credit risk.

Research credit card options

While many of the major issuers offer cards geared toward new applicants with little or no credit history, you might stand a better chance of getting a card at a credit union. Size up your card options on a site such as LowCards.com.

Gas cards and department store cards are also typically easy to get and can be a good place to start if your options are limited.

Another possibility — especially if you don’t have any credit history or your credit is damaged — is to get a secured card. These cards work just like a regular credit card, except that you place a security deposit with the credit card issuer to obtain one. They typically require $200 or more for the deposit, and this amount becomes the credit line for the account.

Use credit responsibly

The way to keep your credit score high is to spend responsibly within your means. Don’t use more than 30 percent of your available credit, and pay off your balances in full and on time every month. Your payment history contributes to 35 percent of your credit score, so this point is important.

Chip away at student loans

Student loans are a form of debt, and are therefore taken into account as part of your credit score. And while you may be worried about a lender seeing all of this debt (likely tens of thousands of dollars), there’s no need to be concerned if you’re handling your finances properly. Just be sure you’re managing your debt obligations and repaying them on time, every time.


article courtesy of: http://www.zillow.com/blog/building-credit-for-grads-177080/

3 Strategic Moves for Competitive Home Buyers

STORY / BY BRENDON DESIMONE 

If you’re a prospective home buyer who has been making offers for many months without being accepted, it’s time to up your game. After all, while making lots of offers helps you learn about the market, the goal is to actually purchase a home, right?

Once you’ve found “the one” and you’re ready to get serious, it’s time to put your game face on and beat out the competition. Take comfort in knowing that most winning buyers are uncomfortable, nervous and financially stressed out at this point. It’s par for the course, but if you’re in it for the long haul, know that it will all eventually work out.

Here are three strategies for making an offer that sellers will pounce on.

Find out what’s important to the seller and give it to them

You want what the seller has, so you have to figure out exactly what they want — and then deliver.

Find out through the listing agent what their story is. Why are they selling? Have they found a home already? Are they moving out of town? Try to put yourself in their situation and imagine what you would want if you were them.

If you find out that they are in contract to purchase a home, for example, tempt them with a quick and clean sale to ease their stress. Have your inspection and appraisal done in a week, and remove all your contingencies quickly so the seller knows they have a sure thing with you.

If they need to find a new place to live, but must sell their current home first, offer them a “rent back” after the closing. This allows them to stay in their home knowing the money is in the bank, their debt relieved, and they don’t have to move twice or feel under the gun.

Make your loan a non-event

By now you should be working with a good local mortgage professional. Hopefully, this is someone recommended by your real estate agent.

The buyer’s loan is the biggest unknown for a seller. By the time you make this offer, your mortgage professional should have your entire file in place and updated.

If you’ve done this, the only unknowns are the appraisal and the title report, which come later. Be certain that the seller knows you have gone to great lengths to get your loan lined up, and that you are a sure thing. With the input of your mortgage professional and real estate agent, make your offer non-contingent on financing. That way, you are as good as cash. To cover yourself, make sure to order and complete the appraisal early on.

Overpay for the home

For someone who has not experienced and bought a home in a hot market, this probably sounds like the worst advice. But most buyers in competitive markets end up paying top dollar once they are in the drama of a bidding war.

It’s these buyers who have been beaten out over and over that make competitive markets strong, and it’s the nature of the beast. While it’s never good advice to pay more than you should, it’s easy to understand the mentality of the buyer in this situation.

Work closely with your agent, determine what price would take you over the edge, and know whether or not you could have an appraisal issue. Many buyers before you have gone through this process, and you got this far for a reason.

Buyers in hot markets find themselves in competitive situations because they not only want what everyone else wants, but also what’s in limited supply. While we can never predict what’s going to happen, if you are in the game for the long haul and plan on financing with a 30-year fixed loan, chances are you’ll be glad you made the effort.


article courtesy of: http://www.zillow.com/blog/strategic-moves-competitive-buyers-177184/

Insuring Your Long-Distance Move

STORY / BY HOMEINSURANCE.COM 

By Samantha Alexander

Moving to another city or state can be both exciting and overwhelming. While you may be looking forward to exploring your new stomping grounds and settling into your new nest, something has to come first: the big move.

Let’s face it, moving anywhere — even just across town — is stressful. But packing up your whole life and getting it from point A to a far-flung point B in one piece is particularly daunting. While you’re busy tying up a million loose ends, don’t forget one of the most important elements of a long-distance move: insurance.

Whether you are hiring movers or doing it yourself, you should be aware of what coverage you have and what coverage you may need to protect yourself and your stuff while in transit. Here are a few insurance tips to help you along the way.

Before the move

• Do your research. If you plan on hiring movers, do your research ahead of time to find a reputable company. Some companies even specialize in long-distance moves. Personal referrals are a good place to start. If you have any family members or friends who recently made a big move, ask if they recommend their moving company. If not, check out online reviews and do some company comparisons. In the end, you want to find a company you can trust to get the job done and move your things safely, even if you have to pay a bit more.
• Create a home inventory. If you don’t already have one, now is a good time to create a home inventory. A home inventory is a detailed list of all the items in your home and what they are worth. When you are packing items into boxes, add them to your inventory. This way, when you unpack, you can check the items off and make sure they made it safely. If you are tech-savvy, a variety of smartphone apps can help speed the process. Prefer paper and pen? Print out this form to record your details.

Protection during the move

• Home insurance coverage. Many homeowners think their home insurance policy will protect their belongings during a move, but that’s not always the case. Most homeowners’ and renters’ policies do offer limited coverage for your personal property while it’s in transit or in storage facilities. However, some standard home insurance policies may not provide coverage for your items if they are broken or damaged by the moving company. To be safe, call your insurance agent before the move to find out the coverage limits specific to your policy.
• Auto insurance coverage. If you’re having your car towed by the moving company, you should also check the details of your auto insurance policy. If you have collision and comprehensive coverage, your personal auto insurance policy may cover your car while it’s in transit, but it’s always best to double check. If you are planning on renting a truck, you should ask your auto insurance agent if you’re covered, or if you should purchase additional coverage through the truck rental company. Many auto insurance policies exclude vehicles that exceed a given weight.
• Moving company coverage. Every moving company is different, but many provide at least basic insurance coverage for your possessions. However, this coverage is based on the total weight of your items. Often, the movers assume liability for no more than 60 cents per pound per item. If you don’t want to chance it, full-value protection is usually offered at an additional cost. This coverage typically pays for full-value replacement or repair of lost, damaged or destroyed property. Whether you purchase additional coverage is up to you, but it’s usually better to be safe than sorry. Call your moving company and see what coverages it offers before you decide.

After the move

• Check your inventory. Now that you’ve made it to your destination, it’s time to unpack. Luckily, your home inventory will make the process go much smoother. As you take items out of boxes, check them off your list. Report any lost or damaged items by filing a claim promptly to the moving company or your insurance company.
• Reevaluate your insurance. Whether you are in a new city or a new state, revisit your home and auto insurance policies. A different house would call for a new home insurance policy, and location is one of the factors that determine premiums.

If you have any questions about insurance for your move, call your home insurance agent and go over your policy limits. Moving is always an exhausting process, but if you do it right, you can make a smooth transition into your new home.


article courtesy of: http://www.zillow.com/blog/insuring-long-distance-move-177121/

How to Budget for Home Renovations

Source: Zillow Digs

STORY / BY VERA GIBBONS 

Ready for a new kitchen? Anxious to redo the bathroom? The easy part is knowing what you want to remodel and why — whether you’re trying to keep up with your growing family, add office space, or increase your home’s value.

But figuring out how to renovate without breaking the bank can be tricky. Here are five key steps in planning your home renovation project.

Estimate costs

As a general rule of thumb, you should spend no more on each room than the value of that room as a percentage of your overall house value. (Get an approximate value of your home to start with.)

For example, a kitchen generally accounts for 10 to 15 percent of the property value, so spend no more than this on a renovation. If your home is worth $200,000, for example, you’ll want to spend $30,000 or less.

Something else to keep in mind: contrary to popular belief, kitchen renovations offer among the lowest return on investment, according to analysis from Zillow Talk: The New Rules of Real Estate. Every dollar you spend on a new kitchen only increases the value of your home by 50 cents.

The highest return on investment? A mid-range bathroom remodel.

Consider loan options

If you’re borrowing money for the project, assess how much the bank will lend you (be sure to shop around!), and determine what type of loan would work best for you.

If you have a one-time project, then a home equity loan might make sense. If, however, you need access to money over a period of time to fund ongoing home improvement expenses, then a home equity line of credit is preferable.

Get quotes from contractors

Some contractors will give you an estimate based on what they think you want done, and work completed under these circumstances is almost guaranteed to cost more. You have to be very specific about what you want done, and spell it out in the contract — right down to the materials you’d like used.

Get quotes from several contractors, tossing out the bid from the one who gives you the lowest estimate. Going with this choice could be asking for problems, as low-priced contractors are known to cut corners — at your expense.

Stick to the plan

As the renovation moves along, you might be tempted to add on another “small” project or incorporate the newest design trend at the last minute. But know that every time you change your mind, there’s a change order, and even minor changes can be costly. Strive to stick to the original agreement, if possible.

Account for hidden costs

Your home may look perfect on the outside, but there could be issues lurking beneath the surface. In fact, hidden imperfections are one of the reasons renovation projects end up costing more than you anticipated.

Rather than scramble to come up with extra money after the fact, give yourself a cushion upfront. Factor in 10 to 20 percent (or more) of your contracted budget for unforeseen expenses, as they can — and do — occur. In fact, it’s rare that any project goes completely smoothly.


article courtesy of: http://www.zillow.com/blog/budget-for-home-renovations-177504/

How to Find Your Dream Home

STORY / BY MARY BOONE

You’ve been pre-approved and know what you can afford, so it’s time to start home shopping. But the hunt for your dream home will stall rapidly if you don’t know what that “dream” looks like.

It’s easy to talk in generalities about wanting a “big” house or an “older” home. But in order to better target your real estate search, you must think specifically about your dream dwelling. Will your “big” house be 2,400 square feet or 5,000? When you say “older” home, do you mean one built pre-1900, or pre-1980?

Before you visit another open house, sit down and make a list of your needs and wants — and yes, those are two different things. You may want a pool, but you probably could live without it. (Plus, it’s worth considering that having a pool could raise your home insurance costs.)

Understand that your requirements list will likely change as you learn more about your housing options. Proximity to the beach may start as a priority, for example, but once you see the size of ocean-front homes you can get in your price range, you may decide a short drive to the water is quite bearable. Unless you have an unlimited budget, it’s likely you’ll need to make compromises along the way.

Use these questions to help make your very own list of housing requirements.

You should also take time to rank each of these home qualities as “Must Have,” “Like to Have” or “Don’t Care” using the checklist below. Identifying your priorities will help you find the perfect property.

article courtesy of: http://www.zillow.com/blog/how-to-find-your-dream-home-146710/

How to Find an A+ School Without Spending Too Many Gs on Housing

STORY / BY CATHERINE SHERMAN 

Does home shopping feel more like school shopping? You’re not alone. According to a survey cited in “Zillow Talk: The New Rules of Real Estate,” 91 percent of respondents said school boundaries are an important part of finding the perfect home.

Most U.S. schools are funded by state and local property taxes, which generally means high-quality schools go hand-in-hand with highhome values. But that doesn’t mean you have to spend a ton on housing to send your kid to the school you want.

Before you embark on your search, consider these tips.

Stop saying, “I want a good school”

Telling your real estate agent that you want to live near a “good school” might be counterproductive. Most real estate agents aren’t allowed to value one school over another because it might be perceived as steering someone toward a certain neighborhood.

Instead, try to uncover the right school for your child’s needs and interests.

“If your kid is interested in math, the number of AP [Advanced Placement] classes in math is more important than overall test scores,” said real estate agent Leslie Ebersole of BRIXGroup at Baird&Warner.

At the end of the day, it’s more important to find the right school than the one with the best reputation.

Do your homework & go to class

Don’t just rely on word of mouth, especially if you’re not familiar with an area. Most local municipalities or states have online resources like IllinoisReportCard.com with a wealth of information such as school performance for individual subjects and class sizes.

Once you’ve read up, go and actually visit the schools you’re considering.

“Most of these schools are set up for parent visits,” Ebersole said. “Sit in on a class. Look at the different activities. If you have a kid who loves music, go to the band practice.”

Jon-David Lenard of Douglas Elliman Real Estate says this is particularly important because school reviews can be biased.

“I try to caution against [reading] reviews in newspapers. They’re written by people who may just want to sing a school’s praises or have a bone to pick without realizing the consequences for the buying public,” he said.

Befriend your agent’s friends

After you’ve narrowed down your school choices, work with an agent who’s well-connected in the community. While your agent can’t advise one school over another, he or she will know parents who can share their firsthand experiences with different schools.

“A great Realtor® knows people everywhere,” Ebersole said. “If you are moving, I can look up names and phone numbers of people with kids in the school you want.”

Search by school district, not by town

A hyper-local agent will also know school boundaries — and whether there are any affordable pockets with homes for sale.

“I’m out in the [Chicago] suburbs,” Ebersole explained. “St. Charles has schools that many people want their kids to attend, but there are homes on the edges of other towns in the St. Charles school district. Often, the prices here are lower.”

And this isn’t just the case in Chicago. By combining GreatSchools rankings with school district boundary information for elementary and high schools, Zillow CEO Spencer Rascoff and Chief Economist Stan Humphries found this to be a larger trend.

“Looking at the combined data, sure enough, we found that pricey neighborhoods aren’t the only places with good schools,” they write. “In fact, all across the country, you can find excellent schools in relatively cheap adjacent neighborhoods.”

To make sure you’re seeing the full real estate picture, search homes by school boundaries, not town or city names.

Opt for the generic-brand neighborhood

Like the latest fads, today’s hot neighborhood won’t necessarily be hot tomorrow.

“In the Smithtown school district last year, one community was really hot with prices going up. This year, that area cooled off and another had bidding wars going on,” Lenard said. “Try to figure out where the hot neighborhoods are and perhaps go in the other direction.”

It’s easy to think that the hot neighborhoods have something extra going for them, but a lot of times hype is driving the uptick.

“Hype around school districts does affect home values,” Lenard said. “It’s like a brand. I know the pharmacy brand is the exact same thing as Claritin®, but I wrestle with this all the time. It’s up to the buyer at the end of the day to decide what they want.”


article courtesy of: http://www.zillow.com/blog/quality-schools-within-your-budget-176511/