Seven Mistake Homeowners Often Make

Not everyone makes these mistakes, and you don’t have to be a first timer to err in the ways outlined below, but avoiding these blunders will save you time, money and unnecessary agita …

1. Calling a repair person with the wrong specialty

This is a common mistake both homeowners and renters, when put in that position, often make. With new homeowners, I highly recommend getting a list of service providers from your real estate agent. We not only have them on the ready, but have generally worked with the people we recommend in the past, so we know they are competent and fair. If you don’t have an agent, there are a number of sites that vet contractors like Thumbtack or Homeadvisor.

2. Hiring a contractor blindly

Along the same lines as the point above, is hiring a contractor without a reference or some serious research. A bad contractor can cause short and/or long term problems in a number of ways. For one, they might take longer than expected, charge more than their estimate or start looking for a new job before finishing yours. And they could do work that is not up to code, causing you problems down the line when you seek to sell the property. The key point is to get a recommendation from your agent, neighbors, family or friends.

3. Not budgeting for new expenses

When you prepare your budget for a home purchase and then the annual expenses, make sure to include everything, including obvious things like property taxes, homeowner’s insurance (and potentially warranty), HOA fees (if applicable), and the like, as well as available funds for incidentals and, ideally, for any major repair projects that might come up.

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4. Ignoring routine maintenance

Like oil changes with a car, routine maintenance on your home will save you time and trouble in the long run. Make sure to keep on top of your routine maintenance calendar, potentially with a check list or even making them recurring items on your electronic calendar/to do list. Here are some ideas on what that maintenance entails, though the size, location and specifics of your property will obviously influence what repairs are necessary and recommended: Maintenance Lists.

5. Making home improvements too soon

This one might sound counterintuitive, as many want to start renovating their homes immediately, maybe even before they move in. In some cases, as with built in bookcases, closet conversions, or necessary repairs, that makes sense. But the point here is that it is worthwhile to actually live in your home for a time before making big decisions. Your vision might change once you have experienced life in the home for a few months or even a year and thus save money or reinvest it in other areas that turn out to be more important.

6. Not winterizing your home

Not as relevant in Los Angeles, but if you buy a vacation property where there is a real season change, make sure you are ready for the colder weather.

7. Assuming you and your partner are on the same page

Experts constantly say that communication is the key to a healthy, happy and lasting relationship. That is particularly true regarding the big decisions in life, and that includes all things related to your home. Make sure to discuss any decisions about the home before finalizing them. Both parties can then both have a say in what you do and feel like they are equal partners in the home.

Word/Phrase of the Week

Preliminary Title Report

A preliminary title report reveals any issues with a title that need to be dealt with by the seller to ultimately deliver a clear title. It gives details such as ownership history, liens, and easements. The title company gathers this report by searching existing property records at the county recorder’s office. This report is required for a title insurance company to issue a title insurance policy. Most lenders require borrowers to purchase title insurance coverage to protect their interest in a property. It’s customary in many areas for a seller to pay for this policy, although it is a negotiable item. Learn more here.

HOA Disclosures

I am currently in escrow with a client and besides the appraisal, inspection and loan contingencies, if you don’t waive any of them, there is generally one other that must be removed as you go though escrow, when you are buying a condo or townhouse with a Home Owner’s Association, and that is the HOA disclosures, which should be provided by escrow. When you receive them, make sure to read them over carefully. They can tell you what the rules of the development are, what kinds of insurance they carry (like earthquake), any fines that can be levied against you, who fixes what (in a condo or townhouse, the general rule is they repair everything outside the home and you deal with everything inside the walls), how much is in the HOA reserve, how assessments are handled and, by perusing the minutes of recent meetings, if there are red flags regarding an overzealous HOA that might give you second thoughts about living in that community.

Useful Links

I found this article interesting, as it provides strategies to divide a room in ways that actually make it feel bigger.

Are you considering buying an investment property? This article from Realtor.com provides a list of the cities with the highest rate of return on investment (ROI).

Finally, if you working in a creative field, or engaging in a creative endeavor in your spare time, it turns out the three-to-four hour rule has been incredibly effective with some of the greatest thinkers and artists for centuries now.