Chic vs. Geek: Home Warranty

A client who bought a house last year asked us if it was worth it to invest in a home warranty. Here’s what we told them…

CHIC (Pearl)

You don’t know what you don’t know, which is why it makes sense to buy a home warranty when you move into a new house. You never know what unexpected trouble is lurking below the surface. Like insurance, a warranty gives homeowners peace of mind, However, buyers need to take the time to closely review the different types of coverage described in the contract and understand the limitations. Premiums, exclusions, and caps on benefits can vary widely. Buyer beware! (Cue spooky Halloween music)

GEEK (Kevin)

From personal experience as a homeowner, after living in the house for a while, you’ll get to know what works, what doesn’t, and what really needs fixing. Like Pearl suggests, you could pay annual home warranty premiums to get some peace of mind. Or you could consider saving extra dollars in an emergency fund for unexpected expenses that arise after you move in. Depending on your household budget, it may be a better option than paying premiums to cover repairs that may never be needed.

Chic vs. Geek: Starter Home vs. Forever Home

Jumping into the homebuying market for the first time? Before you go straight to the deep end of the pool to find your forever home, think about the pros and cons of a starter home.

CHIC (PRO)

Affordability

Housing prices remain high despite a dip in the market, and a starter home makes more sense (or cents) if you need to stay within a budget.

Expedience

You won’t need as much for a down payment on a starter home, so you can afford to buy earlier.

Investment

You don't necessarily have to sell your starter home once you're ready to move. You can rent it out to generate a passive stream of income.

GEEK (CON)

Size matters

Starter homes are typically more modest than what you’d want from a forever home, and it may not have enough space for you right now either.

Interest rates

Mortgage rates are on the rise, so it might make more sense to wait on such a huge investment.

Buying to sell

Choosing a starter home means you'll eventually have to go through the hassle of buying another home and selling (or renting) this one.

Chic vs. Geek: Home issues you can’t ignore

Some home projects can wait until you have the time – or the energy – but some tune ups need tackling now. Let’s take a look at a few common red flags…

CHIC (PEARL)

Critters

The sounds of scurrying in the rafters or mouse droppings in HVAC grills are signs that you may have four-legged visitors. Check exhaust vents, ducts, utility panels, garage doors, and other access points. Look for gaps, signs of chewing or nesting, or ripped screening. Even a hole the size of a quarter is big enough for a rodent to slip through.

Mold

It’s natural to occasionally find mold in wet spots like kitchen and bathroom tiles, but when you see it seeping into your living room walls, it’s time to call a professional for an inspection and remediation.

Water

Standing water in your yard after a rain is a telltale sign that you have poor drainage. This could be caused by heavy, compacted soils, or improper grading. If water collects near your home’s foundation, it could cause costly problems.

GEEK (KEVIN)

Roofing

It is essential that you inspect your roof on a regular basis – at least once a year. Missing shingles or other signs of damage should be addressed right away, because the costs of neglecting them can escalate very quickly, especially if we finally get some rain.

HVAC

Even in our temperate Silicon Valley climate, heating and air conditioning are key components of our quality of life. And you shouldn’t ignore that noise your A/C unit is making just because we’re entering the colder months. Get it checked out or risk paying through the nose when it breaks down during a summer heat wave.

Plumbing

What’s that smell coming from your kitchen sink? If a plunger isn’t enough for your investigation, call a professional and get it checked. Trust me, you don’t want to wait to deal with that mess!

Chic vs. Geek: Paying you back in any market

From building equity to built-in savings, there are real estate principles and benefits to help your property pay you back, even in a down market.

CHIC (PEARL)

Dual Purpose Investment

A home is both a current need and an investment in your future. You can find something that fits your family right now, but how will it suit you ten years down the road?

Valuable Savings

Mortgage payments can deliver equity, improve your credit score, and also serve as a savings account you can leverage now or tap later.

GEEK (KEVIN)

Tax Considerations

Like other life changes, homeownership comes with tax deductions, credits, and other perks. Ask your accountant to get you started with a mortgage payment deduction.

Protection from Inflation

Rents rise with inflation, and sometimes to pay for building upgrades, but payments on a 30-year fixed mortgage remain the same for, well, 30 years!

Want to learn more about the benefits of home ownership?

Chic vs. Geek: Fall Improvement Projects

If you’re thinking of listing your home for a fall sale, it’s time to make it look the part. Here’s a punch list of autumnal home improvement projects.

CHIC (PEARL)

There’s no shortage of projects to keep you busy around the house. Restore your carpet to its original beauty. Clean your fireplace to get ready for cold winter months. And embrace your green thumb by trimming back foliage and protecting your perennials from pests.

GEEK (KEVIN)

If you prefer to get a little dirty – like me – you can get up on a ladder to unclog your rain gutters, replace missing shingles, or seal up pesky leaks in your attic. You can also invest in energy saving upgrades like a new furnace or double-paned windows to help the house maintain temperature.