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Homeowner’s insurance is a non-negotiable. Not only does it protect you in the event the home is damaged, but it also includes liability insurance in the event someone is injured at your home. When evaluating the policy, insurance companies consider multiple items to determine their risk—and your cost.

Here are 7 things that affect the amount you pay for homeowner’s insurance—some that might make sense and some that might surprise you.

1. Square Footage – First and foremost, the size of the home is considered. The larger the home, the more it would cost to replace if damage occurred. More space also means more furniture, fixtures, personal belongings, and other items which would be replaced in a claim.
2. Layout – The style of the home is another factor in determining replacement costs. A single-story home, for example, might have higher foundation and grading costs, whereas a two-story home would need alternative construction methods.
3. Construction Materials – The type of material used to build the structure is important. Wood roofs would cost more to insure against a fire claim, as would a home with expensive travertine floors. A simpler home of modest building materials would cost less to insure.
4. Property Age – The assumption is that an older home might have more deterioration than a newer home and this is considered in the replacement cost.
5. Home Features – Homes with extra buildings or pools will be insured at a higher cost than other properties without these amenities.
6. Neighborhood – Local crime rates are reviewed to determine the risk to property and personal items.
7. Credit Score – Finally, the insurance company will consider the homeowner’s credit score. Not only does this help them understand if they are at risk for non-payment, but serious credit issues might be a factor in how well a property is maintained.

Homeowner’s insurance is important to every homeowner. Not only is it required by lenders, but it also protects the homeowner against financial disaster in the event of theft, fire, severe weather, and more. Understanding how rates are determined can help you compare options and get the best policy for your home.

Everyone wants to time their home purchase “just right.” Ideally, you want to choose the picture perfect buyer’s market with plenty of well-­‐priced listings, low interest rates and a slow moving real estate market where the buyer has plenty of time to decide on an offer. The reality is that the current market is a fast paced environment where the best homes move quickly and serious home buyers need to be prepared to act when they find the right home.

Fortunately, starting your home search the right way is easy by following these simple tips:

1. Find a Lender and Get Pre-‐Approved – Know what you can afford before you start your search.  By getting a pre-­‐approval letter, you demonstrate to sellers that you are serious when you write your offer and it proves you can afford the home.
2. Research Neighborhoods – Each community will have its own personality and advantages; before you spend time looking at homes, choose the right area for your lifestyle and family needs.
3. Pick the Right Home Style – Learn about the various home styles available in your community. Do you want a single story? Large yard? Do you like older homes or historic-­‐ style properties?
4. Make a List of Must Have and Like-‐to-­Have – There is a difference! Make a list and be ready to compromise when appropriate by ranking the items.
5. Take Notes – Often a home buyer can see 6-­‐7 homes in a single day; take notes, and if possible take pictures so you can remember the things you like and don’t like about the homes you see once you get home.

In a fast paced real estate market, spending some time preparing for your home search will help you move quickly when you find the right home for you and your family.

The travel industry has changed significantly over the past decade. With the popularity of vacation rentals advertised by such sites as Airbnb, VRBO, and Home Away, travelers have more options than ever for lodging during their vacation. Unfortunately, 2020 has seen a serious decline in travel due to the COVID-19 crisis and many owners of these short-term rental properties are wondering what to do.

If you have a short-term rental property, you might be wondering if this is the right time to sell. Here are a few considerations as you weigh your options:

• Long-Term Goals – While travel is down significantly right now, this slump won’t last forever. If this property is part of your overall investment portfolio which makes sense for the long run, consider other strategies to keep the rental. If you have a mortgage, speak to your lender about payment options during this time.
• Housing Inventory and Local Home Prices – Housing inventory is down about 20% year over-year according to the National Association of Realtors®. Lower inventory has also prevented home prices from falling in most areas.
• Historically Lower Interest Rates – Interest rates have dropped significantly since the beginning of the year. It might be time to refinance the property. In addition, if you do decide to sell, buyers are better positioned to buy.

This is a confusing time for everyone. The robust business of short-term rentals has certainly been affected over the past few months and the travel industry will suffer this summer. If you own a short-term rental, consider all your options as you decide whether it’s the right time to sell your property.

Buying a home is exciting. Most people have visualized their dream home—large,
inviting kitchen; multiple bedrooms for family and guests; perhaps a backyard
with built-in BBQ, pool, and fireplace. Yet this dream is often out of reach
financially for first-time homebuyers. These buyers are ready to find a starter
home and perhaps are wondering if saving for a forever home makes more
financial sense.

Before making this decision, it’s important to consult with a professional financial
advisor about your unique situation; more often than not, getting a starter home
makes the most sense.

Things to Look For in a Starter Home vs. a Forever Home

As we already mentioned, a starter home probably won’t have all the features
you dream about, so it’s important to understand the difference between “want”
features and “need” features. For instance, the number of bedrooms might be
more critical than the huge, eat-in kitchen. Finding a home near a park for the
kids might take precedence over the expansive view of the water.

Focus on affordability and find a home that suits not only your immediate needs
but offers the ability to grow in equity. Your starter home should be viewed as a
financial tool to build wealth and position you to move up to your forever home.
Building wealth through homeownership is a great way to ensure you’ll be able to
buy that dream home when you’re ready.

Even during the COVID-19 outbreak, real estate transactions go on. Buyers and sellers still need to move, and the industry is looking for new ways to accommodate both the needs of the transaction and, of course, the safety of everyone.

Many traditional real estate activities can be performed virtually. While no one is suggesting that a buyer will be comfortable buying a home they have only seen during a Zoom visit, they can minimize the number of homes they physically visit by pre-screening these homes ahead of time through virtual tours.

There are a few vital pieces of the transaction that require in-person visits, however. Among these are home inspections and appraisals. Both of these professionals need access to the property to properly perform their duties, and it leaves some potential home sellers and buyers wondering if it’s even possible to conclude a real estate transaction right now.

While everyone should cautiously move forward according to their personal sense of comfort, there are a few things you can do to protect yourself, your family, and the professionals while they are in your home. Before setting the appointments, think through the parts of your home the inspector or appraiser will need to access and think through the process.

Contact the home inspector and appraiser and work out a plan together to keep everyone safe:
• Communicate with them about off-limit areas, and what parts of the home they can access.
• Have a notepad in which they can communicate what parts of the home they came in contact with, and offer hand sanitizer and wipes for them to use before and after touching parts of the home.
• Finally, leave the home during the appointments, and clean properly once you return home.

Life does move on – if you are trying to buy or sell a home during this challenging time, it might take extra effort. However, working with your real estate team, you can conclude a successful real estate transaction amid the COVID-19 outbreak.