How do you know if you have your home insured for the right amount? Your lender may require insurance to cover the loan amount, but what you owe and actual replacement costs can be vastly different.

According to the National Association of Insurance Commissioners (NAIC), replacement costs are the amount it would take to replace or rebuild your home or repair damages with similar materials and quality, without deducting for depreciation. Actual cash value is the amount it would take to repair or replace damage to your home after depreciation. Standard plans require policy limits of at least 80% of replacement cost.

Replacement costs should include loss of your possessions.  Create a room-by-room inventory of your possessions, including photographs and/or video, cost of goods, and how long you’ve had them. Give documentation to your insurer and keep copies in a safe place or on the cloud.

The NAIC advises that you compare cost-to-repair and cost-to-replace prices for your area with your insurer. There are different packages of home insurance that protect against specified damage-causing events, such as fire, windstorm, and theft. They also contain coverage for property damage, living expenses during repairs, personal liability and medical payments.

Review your policy annually. If you’ve made improvements to the home, or purchased more goods, you should inform the insurer. You may also get a premium discount for long-time loyalty, combining car and home insurance, raising your deductible, and other initiatives.

If you find yourself saying any of the following to your Berkshire Hathaway HomeServices network professional, you may be hurting your chances of selling your home quickly and for the most money possible.

“I’m not making any repairs.” According to the 2018 Home Buyer and Seller Generational Trends Report from the National Association of REALTORS®, 47 percent of buyers under the age of 37 purchased new homes to avoid renovations and problems. If many buyers don’t have the will, skill or time to make repairs, you’re eliminating a number of buyers who would otherwise love your home.

“My home has to be worth more than that.” You may believe your home should be worth more than you paid for it and provide you with enough equity to move. Your listing agent will supply you with tools to understand current market value. The comparable market analysis shows what homes have recently sold for and what other sellers are asking for similar homes as yours, as well as price and sales trends.

“Let’s price it higher and see what happens.” Pricing above comparable homes is a real risk. You’ll outprice buyers who would want your home. Buyers who can afford your home will quickly find that your home doesn’t compare to others.

In any of these cases, you’ll be looking at a price adjustment, and have lost valuable marketing time. Realistically, your home is only worth what the most qualified buyer is willing to pay for your home.

Known for its cutting edge yet relaxed style, the West Coast sets the pace when it comes to housing trends and environmentalism.

The Mid-century Home

The first ranch-style home was built in 1932 in San Diego, CA by builder Cliff May, whose low, horizontal architectural design took unique advantage of the climate. Now known as the mid-century home, the ranch-style home is typically a one-level L-shaped box with all or most load-bearing walls on the outside, making the homes easy to decorate and remodel.

Spanish Colonial Revival Homes

For design inspiration, the West Coast utilizes Spanish and Asian influences, as well as indigenous native American Eskimo and Indian cultures. Of these the best known is the Spanish Colonial Revival.  

Offering a mix of Spanish Baroque, Mexican Churrigueresque and Moorish Revival, Spanish Colonial Revival homes arose from centuries-old presidios and missions from Spain’s conquest of Mexico. The style features plaster and stucco walls, clay tiles, terracotta or cast concrete ornamentation, and decorative iron trim and is popular in the West, Southwest and Florida.

Environmentalism

Environmentalism trends such as green-building with sustainable bamboo and hemp and xeriscaping with drought-friendly native plants are not only socially responsible, but mandatory in many West Coast communities. 

Pacific colors

From the warm waters of the South Pacific to Alaskan icebergs, the blues and greens and whites of the ocean are popular color choices, as well as the terra cottas and yellows of the desert and the deep greens and browns of the forest. 

Market conditions are like a weather report; they show you what to expect so you can make plans, pick your listing price and decide on your marketing strategy.

One thing is certain: Markets are either going up or they’re going down, so as conditions change, you need to know the long and short-term trends. If the market is heating up, you can ask a little more for your home. If it’s cooling off, you may need to lower your price to attract buyers.

So, how are buyers behaving? Are they making multiple offers and paying over list price? Or are they sitting on the sidelines, looking but not making offers? The answers tell you if you’re in a buyer’s or seller’s market.

A seller’s market is characterized by confident buyers, rising prices, short “days on market”, supply levels of less than six months on hand, and offers close to full price, at full price or above list price offers.

A buyer’s market is characterized by fearful buyers, longer “days on market,” inventory supply levels of six months or more, and low offers. To get buyers to come in from out of the storm, sellers must offer incentives such as seller-paid closing costs or throw in the refrigerator, washer and dryer.

To find out where your market stands, go over the Comparable Market Analysis (CMA) that your Berkshire Hathaway HomeServices network professional provides you. Using this knowledge, you can price your home to sell quickly, and for the most money possible.

What should you expect when you buy a model or “spec home” from a builder?

A model home features upgrades to show the builder’s floorplans to advantage. If you can wait until the builder sells all their inventory, you may get the model at the initial offer price and with more upgrades than other homes in the neighborhood.

A “spec” home is move-in ready. The clock is ticking on the builder’s bank loans, materials and labor, so if you’re preapproved by a lender and have no contingencies to delay closing, you can move in quickly.

Many builders have their own contracts, so you should be represented by your Berkshire Hathaway HomeServices network professional. Builders won’t negotiate price because of other homes in the subdivision, but your agent may be able to negotiate free or at-cost upgrades like adding a fence or back yard sod. The agent can help you negotiate better terms, see you through inspections, and make sure the builder performs as expected.

Shop for new homes with your real estate agent. If you can’t, inform the builder or their in-house salesperson that you’re represented and offer your Berkshire Hathaway HomeServices network agent’s contact information. Builders won’t pay the agent’s commission if you bring them in after you’ve already toured the model or spec home.

As you browse listings on AllWichitaListings.com, you may find homes you like that appear to be unavailable, due to some kind of contingency. If you find the perfect home, but it’s labeled Contingent, should you pursue it or forget it?  

The reality is that contracts fall through sometimes. If you have a back-up contract, you can buy the home should it come “Back on Market” or “BOM.”

Contingency
Nearly all offers-to-buy have contingencies. Typical contingencies include provisions that the home must meet the appraised value by the mortgage lender’s third-party appraiser, or it must pass a professional third-party home inspection to the buyer’s satisfaction. The buyer may make the contract contingent upon the lender funding the purchase.

Option period
Option periods give the buyer time to get financing and complete home inspections and the appraisal. Unless the buyer acts on a contingency, the home is considered out of option but it can still fall out of escrow.

To learn more, contact your Berkshire Hathaway HomeServices network professional.

Older homes that served our grandparents and parents well may appear poorly planned for today’s families. They tend to be smaller with narrow lots, closed-off kitchens, and fewer bathrooms and bedrooms. On the other hand, older homes tend to offer character and quality craftsmanship that is unmatched today. So, should you tear down an older home or remodel it? 

First, choose the neighborhood. You’re buying the location, so it should meet as many of your household’s needs as possible - schools, transportation, entertainment and enrichment, medical care and shopping. It should have plenty of homes similar to the one you have in mind, including remodels and scrapped homes replaced by new construction.

Homes offered at “lot value” means that the structure offers no further value. This is a great candidate for a total remodel or teardown. If the lot is large enough, it can hold added square footage or a complete new home. But if the home has plaster moldings, stained-glass windows, all-wood stairs, and other artisan features, know that those things can’t be easily replaced today. You may want to preserve those unique elements and consider remodeling to complement the home’s original design.

Take your general contractor with you to see what needs to be brought up to date and if it’s more practical to remodel or rebuild. Like homes in like neighborhoods help determine and improve value, so don’t over-build or over-improve without similar comparable homes nearby to support your home’s value.

Selling your home is one of the largest transactions you’ll ever make, so you want to make sure you sell your home quickly, for the most money and for the best terms possible you don’t want to start off on the wrong foot. Here are three things sellers should never do.

1. Sell it yourself. A real estate professional has the resources and experience to help you price, show, sell your home and safely navigate it to closing. He or she can provide numerous marketing and showing services to help sell your home quickly and with as few hurdles as possible.
2. Pick the wrong sales professional. Interview several real estate professionals to learn how they plan to market your home, what services they provide, and what you need to do to get the highest and best offer for your home. Choose the one who is straight with you about your home’s assets and drawbacks, and who explains current market conditions so you’ll know how to price your home successfully.
3. Ignore your sales professional’s advice. Your Berkshire Hathaway HomeServices network professional is trained to help you present your home at its best. Staging, updates, and repairs will help, but what’s most important is price. Your home’s price, location and condition should be supported by comparable homes in the area. You’ll attract the most interest if you price slightly below comparable homes, allowing room for buyers to bid up the price.

Remember, every market is different and can change quickly, so be prepared.

It’s the heat of the summer, and you want a home with a swimming pool but before you go off the deep end, make sure the benefits outweigh the drawbacks.

Swimming pools are a strong part of the outdoor living trend. They’re fun for all ages, they promote fitness, and they give you a great place to entertain family and friends. They also add costs, increased liability and ongoing maintenance. So, to help you decide if it’s worth it, ask yourself the following questions:

Do you and your family members swim now? Would you swim more in a pool of your own?

Are pools popular in your area? Do you have a long, hot swimming season?

Does the pool complement the home? Or did the pool replace an amenity you might need such as a play-yard?

How old is the pool? Do any mechanical components need to be replaced? Are there any visible cracks, broken tiles, or cloudy water that could mean large expenses coming?

Where will people change their clothes and use the restroom? Will they leave tracks through the house?

Ask the seller for any maintenance and repair records they might have for the pool, and include the pool in the home inspection. Obtain recent prices from local pool companies on similar pools and see if you are overpaying for the seller’s pool, especially if it needs updating. Most pool companies are happy to oblige in order to get the maintenance, repair, or redesign business from the new owner.

As you look at your outdoor living spaces with an eye for upgrades, where will your time and money be best spent? Fresh landscaping? Sprinklers? A new fence? A firepit?

Fortunately, 2018 Remodeling Report: Outdoor Features, co-produced by the National Association of REALTORS® and National Association of Landscape Professionals, offers some ideas. First, there are two ways to look at your improvements:

1. Curb appeal to make your home more attractive to buyers when you’re ready to sell.
2. Personal enjoyment while you live in the home.

If you’re thinking strictly of return on investment, regular lawn care, landscape maintenance and tree care and trimming each restore 100 percent or more of the costs, says the survey. Regular attention to watering and drainage will prevent unsightly dead spots in your yard. Removing dead tree branches or limbs growing too close to the house prevents storm damage. Keeping bushes trimmed prevents overgrowth that obscures your home’s features.

But money isn’t everything. What about personal enjoyment, convenience and satisfaction? Tied for first place on the “Joy” Score with a perfect 10 are an irrigation system and a fire feature. The next most appealing projects were a new wood deck (Joy Score - 9.8), a water feature (9.8), statement landscaping (9.7), and an overall landscape upgrade (9.6).

The report validates what real estate professionals have been saying all along – curb appeal matters, and landscape improvement is money well spent. You’re adding beauty and convenience to your home, which future homebuyers will appreciate.