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New Year’s Resolutions for Homeowners

Thursday, December 27, 2018
by The Hat Team


The holidays are winding down and the new year is upon us. Chances are you are thinking about some personal goals you would like to achieve in 2019, but if you are a homeowner, you might want to add some resolutions to your list regarding your home.  Here are some homeowner resolutions for you to consider in 2019:

  1. Do a HOME INVENTORY and put together a DISASTER KIT for your home.  You never know when disaster may strike, and while it’s no fun to think about, it’s important to be prepared.  Include your home inventory and financial documents in your disaster kit so that you will be ready should the unthinkable happen.  Make sure that your kit is stored in a fireproof, safe place that will be easily accessible if you need it.
     
  2. Think about getting a HOME WARRANTY.  If your appliances are nearing the end of their life cycles, a home warranty could possibly help prevent high costs for replacements.  Just be sure you do your research and read customer reviews regarding different home warranty options.  And always read the fine print so that you don’t get blindsided by exclusions.
     
  3. Thoroughly examine your HOMEOWNER'S INSURANCE.  You likely got a standard homeowner’s insurance policy to satisfy the lender when you purchased the home, but that does not assure that you are adequately covered. Each policy has unique coverage options and exclusions that you may not be aware of.  Look it over and find out what it does and does not cover and then decide if it is adequate for you or if you need to purchase a different one.
     
  4. Make saving for an emergency a priority.  Sometimes homeowners are blindsided by unforeseen expenses.  An EMERGENCY SAVINGS FUND can be a life saver when that happens!  Think of it as a safety net for your home.  An idea emergency fund will be able to cover several months of expenses.  Don’t let that overwhelm you.   You have to start somewhere.  Just start setting aside a small portion of your income each month and before you know it, you will have a sizeable savings for emergencies.
     
  5. Start building your equity. If you financed your home mortgage, it will be years before you own your home outright.  But there are ways to BUILD EQUITY  faster, which will enable you to enjoy the benefits of homeownership sooner.  Home equity is a valuable asset that can be used to pay for things like home improvements or student loans. 6 Ways to Build Home Equity (and Savings) Faster

If you are not a homeowner yet, but would like to become one in 2019, let Sandra Nickel and her Hat Team of professionals help you find the perfect home!  Call them today at 334-834-1500!

Photo Credit: success.com

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Do I Really Need a Home Warranty?

Wednesday, August 12, 2015
by The Hat Team

This blog is not about selling home warranties! It’s about providing information, some of which you may not have considered before.

home warranty

Both buyers and sellers benefit from home warranties! That is especially true when the sale/purchase involves an older home. RISMedia.com recently interviewed Mark Barry, with American Home Shield. He said, “New homeowners want to be confident that they made a smart purchase and to know that they’re prepared for the unexpected” after they purchase.

But, what about sellers? Consider what a home warranty provides for both sides of a transaction, starting with defining “home warranty.” A home warranty policy is a little like an insurance policy, but different. Insurance typically pays out a predetermined amount of money if something goes wrong. Examples include an auto accident, a fire covered by homeowners insurance, and life insurance.

A home warranty covers breakdowns of home systems, such as heating and air conditioning components, and major appliances. It does not just pay out for a loss. It either repairs the component that failed or replaces it.

Home warranty companies have contracts with local repair companies. When something goes wrong with your home, a local contractor is sent to repair it. If it can’t be repaired, it will be replaced. The warranty policy defines deductibles and restrictions…so read the fine print!

Benefits to sellers are often overlooked. A seller can buy a home warranty policy in advance of putting their home on the market. Some benefits to doing that are…

  • Protection against the cost of breakdowns during the selling process
  • Prevention of a buyer opening downward price negotiations while under contract
  • The marketability of the property is enhanced with the added protection
  • The policy can be transferred to a buyer, making the property more attractive

Homebuyers, especially first time buyers, are looking for assurances. A home warranty gives them confidence that they’re not buying unforeseen problems due to their inexperience.

  • The home warranty can be transferred to the new owner
  • The buyer is protected against breakdowns for up to a year
  • The annual policy is renewable at the new owner’s option

In short, there is potential peace of mind for both buyers and sellers in your home sale/purchase. Do some research and make sure both parties have clear expectations. Make sure you understand what the policy does, and does not protect. And then rest easy that you are protected.

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Why Buy a Home Warranty

Friday, April 18, 2014
by The Hat Team

Not to be confused with homeowner’s insurance, which covers the structure and contents of your home, a warranty service contract is designed to cover systems and appliances that stop working due to normal usage.  Basic home warrantycoverage generally includes the repair and replacement of major appliances such as heating/cooling system, water heater, refrigerator, dishwasher, stove, etc.  Plumbing and electrical systems are also usually covered, and some companies include washer, drier, microwave, and roof maintenance in the basic tier.

Gaining in popularity with both buyers and sellers of Montgomery AL homes, warranty service contracts serve to reassure owners that they won’t face major repair/replacement costs.  Sellers use them to protect the home while it’s on the market and as an incentive to attract buyers.  Buyers rely on them to protect them from unexpected and expensive repairs.  Even Freddie Mac will offer a $500 home warranty credit to home buyers who purchase a qualified, foreclosed single-family home, townhouse, or condominium through their HomeSteps® division.

A warranty plan for your home is fairly inexpensive, typically ranging from $250 to $400, depending on coverage. The policy is prepaid for a year in advance, at which time it expires or can be renewed.  The usual procedure for service needs is as follows:

  • If a home system or appliance breaks or stops working, the home owner calls the home warranty company.
  • The home warranty company calls a provider with which it has a business arrangement.
  • The specific provider calls the home owner to make an appointment.
  • The provider fixes the problem. If an appliance is malfunctioning and cannot be repaired, depending on contract coverage, the home warranty company will pay to replace and install the appliance.
  • The home owner pays a small trade service fee (less than $100) for each service call.

Most home warranty companies offer a variety of plans, each providing different levels of coverage, so be sure to read the details of any contract before buying. If you choose to renew the contract from year-to-year, double-check the details of your plan each time since coverage can change annually.

According to the Service Contract Industry Council, 32 states require home warranty companies to register or obtain a license with that state's department of insurance and comply with applicable laws and financial standards. Membership lists are available at their website.

Ready to buy? Learn why you need a Realtor!

Sandra Nickel and the Hat Team have distinguished themselves as leaders in the Montgomery AL real estate market. Sandra assists buyers looking for Montgomery real estate for sale and aggressively markets Montgomery AL homes for sale. Sandra is also an expert in helping families avoid foreclosure through short sales and is committed to helping families in financial hardship find options. For more information you can visit AvoidForeclosureMontgomery.com.

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You can reach Sandra by filling out the online contact form below or give her a call anytime!

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