Tips – Page 5 – Homeowner Savings

Tax Benefits for Homeowners

We asked ourselves: What tax benefits do you exactly have by owning a house? That’s why we put together a little overview for every houseowner who wants to save tax money!

The main tax benefit of owning a house is that the imputed rental income homeowners receive is not taxed. Although that income is not taxed, homeowners still may deduct mortgage interest and property tax payments, as well as certain other expenses from their federal taxable income. Additionally, homeowners may exclude, up to a limit, the capital gain they realize from the sale of a home.

OVERVIEW

The tax code provides several benefits for people who own their homes. The main benefit is that the owners do not pay taxes on the imputed rental income from their own homes. They do not have to count the rental value of their homes as taxable income, even though that value is just as much a return on investment as are stock dividends or interest on a savings account. It is a form of income that is not taxed.

Homeowners may deduct both mortgage interest and property tax payments as well as certain other expenses from their federal income tax. In a well-functioning income tax, all income would be taxable and all costs of earning that income would be deductible. Thus, in a well-functioning income tax, there should be deductions for mortgage interest and property taxes. However, our current system does not tax the imputed rental income that homeowners receive, so the justification for giving a deduction for the costs of earning that income is not clear.

Finally, homeowners may exclude, up to a limit, the capital gain they realize from the sale of a home. All of these benefits are worth more to taxpayers in higher-income tax brackets than to those in lower brackets.

MORTGAGE INTEREST DEDUCTION

Homeowners who itemize deductions may reduce their taxable income by deducting interest paid on a home mortgage. Taxpayers who do not own their homes have no comparable ability to deduct interest paid on debt incurred to purchase goods and services.

The Tax Cuts and Jobs Act (TCJA) trimmed this important tax break for homeowners. Prior to TCJA, the deduction was limited to interest paid on up to $1 million of debt incurred to purchase or substantially rehabilitate a home. Homeowners also could deduct interest paid on up to $100,000 of home equity debt, regardless of how they used the borrowed funds. TCJA limited the deduction to interest on up to $750,000 of mortgage debt incurred after December 14, 2017, to buy or improve a first or second home. It also generally eliminated the deduction for home equity debt.

The congressional Joint Committee on Taxation (JCT) estimated that the cost of the mortgage interest deduction will shrink from $72 billion to $41 billion in fiscal year 2018, because of the lower cap on deductible mortgage interest and because other provisions of TCJA will result in many fewer taxpayers itemizing their deductions. The Urban-Brookings Tax Policy Center estimates that the share of tax units that benefit from the deduction in 2018 will shrink from 21 percent to 9 percent because of TCJA.

PROPERTY TAX DEDUCTION

Homeowners who itemize deductions may also reduce their taxable income by deducting property taxes they pay on their homes. That deduction is effectively a transfer of federal funds to jurisdictions that impose a property tax (mostly local but also some state governments), allowing them to raise property tax revenue at a lower cost to their constituents. The JCT estimated that the deduction saved millions of homeowners a total of $33 billion in income tax in fiscal year 2017. The cost of that deduction will also go down because of TCJA, as many fewer homeowners will itemize and because TCJA puts an overall cap of $10,000 on the state and local taxes that taxpayers can deduct.

EFFECT OF DEDUCTIONS AND EXCLUSIONS

The deductions and exclusions available to homeowners are worth more to taxpayers in higher tax brackets than to those in lower brackets. For example, deducting $2,000 for property taxes paid saves a taxpayer in the 37 percent top tax bracket $740, but saves a taxpayer in the 22 percent bracket only $440. Additionally, even though they only represent about 20 percent of all tax units, those with more than $100,000 in income received over 85 percent of the mortgage interest deduction tax benefits in 2017. That difference results largely from three factors: compared with lower-income homeowners, those with higher incomes face higher marginal tax rates, typically pay more mortgage interest and property tax, and are more likely to itemize deductions on their tax returns.

PROFITS FROM HOME SALES

Taxpayers who sell assets must generally pay capital gains tax on any profits made on the sale. But homeowners may exclude from taxable income up to $250,000 ($500,000 for joint filers) of capital gains on the sale of their homes if they satisfy certain criteria: they must have maintained the home as their principal residence in two out of the preceding five years, and they generally may not have claimed the capital gains exclusion for the sale of another home during the previous two years. The JCT estimated that the exclusion provision saved homeowners $32 billion in income tax in fiscal 2017.

IMPUTED RENT

Buying a home is an investment, part of the returns being the opportunity to live in the home rent free. Unlike returns from other investments, the return on homeownership—what economists call “imputed rent”—is excluded from taxable income. In contrast, landlords must count as income the rent they receive, and renters may not deduct the rent they pay. A homeowner is effectively both landlord and renter, but the tax code treats homeowners the same as renters while ignoring their simultaneous role as their own landlords. The Office of Management and Budget estimates that the exclusion of imputed rent reduced federal revenue by nearly $110 billion in fiscal year 2017.

Home Value: How to Improve Your Home’s Worth

With prices for housing surging to new highs this year in many parts of the United States, you may be toying around with the idea of selling your home. After all, you could sell for top dollar and pocket the difference, then move somewhere cheaper with a lower cost of living.

Or maybe you plan to stay exactly where you are, in the home you know and love. Regardless of how much your home is worth, sometimes it’s easier to just stay put — even if your home isn’t exactly what you want.

Some improvements can make your house easier on the eyes. Others can increase your home’s utility, make it bigger or make it more comfortable for your growing family.

Whether you want to build equity or sell for top dollar, plenty of home improvement projects are worth considering. The real estate experts we spoke to said the following projects may provide the most bang for your buck.

1. Upgrade exterior doors

When it comes to adding value to your home, replacing an old front door can also work wonders, Wiedman says. He says in the late ’90s, he and his wife replaced an old, ugly door with a solid mahogany door with a frosted, oval piece of lead glass. He stained the door himself to save money, and the result was “simply stunning,” he says.

Randy Oliver, president of Hollywood-Crawford Garage Door Co., also says to remember your garage door when it comes to curb appeal.

“The front of the home is the first thing you, your neighbors and prospective buyers will see,” he says. “Garage doors often take up the most amount of space on the front of your home, so installing a modern glass panel door or a rustic wood door will dramatically improve your home’s appearance.”

2. Spruce it up with fresh paint and flooring

Paint is magic, and that’s true whether you’re upgrading the paint inside or outside your home. A fresh coat of paint can make even dated exteriors and interiors look fresh and new, and it’s not that expensive, either.

Timothy Wiedman, a former college professor and personal finance expert who has flipped homes over his career, says you should start by painting any rooms with an “odd” color scheme.

For example, did you let your then-11-year-old daughter paint her bedroom “hot pink” 16 years ago? If so, that’s a good place to start.

Rob Fountain, a real estate agent with Keller Williams Partners in Colorado Springs, Colorado, says that “everyone loves newer carpet and fresh paint.”

Very few homebuyers, he says, are looking for a fixer-upper. Instead, they hope to move right in.

“Moving and buying a house is stressful enough,” Fountain says. “They don’t want to have to touch up paint and rip out carpet before they move in.”

3. Clean and declutter

According to a 2019 survey from HomeLight, deep cleaning and decluttering can add more than $4,000 to a home’s resale value, on average. If you don’t plan to move, you can also benefit from making better use of your space, getting more organized, and having less clutter to stress over.

Cleaning and decluttering is inexpensive, but it still requires a lot of work. Go through cabinets and closets so you can make a donation pile. Clean out drawers and other storage areas of your home as well, making sure you’re not keeping anything you don’t need or want.

A deep clean and subsequent cleanings for upkeep can also make your home more attractive and more livable. And when you go to sell, buyers prefer a clean, pristine home with almost no exceptions.

4. Make your home more efficient

There are many ways to improve your home’s efficiency, and they don’t all involve tens of thousands of dollars in upgrades. Scott Ewald of Trane, an HVAC company, says installing a smart thermostat is a great way to improve efficiency and save money, for example.

“The right smart thermostat will allow a homeowner to control their home’s climate from anywhere, giving them the power to manage energy costs regardless of whether they are sitting on the couch or away on vacation,” he says. “Such investments in home tech – particularly when connected to the HVAC which is the largest mechanical system in the home – provides a strong selling point and highlights the home’s overall comfort, functionality, energy efficiency and convenience.”

Other ways to improve your home’s efficiency and value include replacing old, leaky windows, buying energy-efficient home appliances and adding insulation to your home.

5. Add usable square footage

Adding more usable space to an existing home can make a lot of financial sense, and that’s especially true in areas with limited available real estate where land and space may be finite.

Benjamin Ross, a Realtor in Corpus Christi, Texas, says that homes are valued and priced by the livable square feet they contain, and the more livable square feet, the better. As a result, adding a bathroom, a great room or another needed space to a home can increase function and add value.

Adding a separate mother-in-law suite is also a great idea, Ross says. “Most homes do not have this feature, so adding one sets you apart from the competition when it is time to sell.”

6. Work on your curb appeal

HomeLight’s second-quarter 2019 survey of real estate agents found that the exterior of your home may play a bigger role in your home’s value than you think. The survey showed that 76 percent of top real estate agents nationwide agreed that improving curb appeal is the No. 1 step a homeowner can take to boost their home’s marketability.

According to their figures, basic lawn care like cutting the grass, fertilization treatments and weed control can add $1,000 on its own. If you’re wondering how to increase the value of your home, these low-cost measures can be a good starting point.

Joe Raboine, director of residential hardscapes with Belgard, says there are plenty of other ways to boost your curb appeal. An overall landscape upgrade can go a long way, for example.

“Installing a front walkway of pavers along with stone planters, shrubs and mulching will cost an estimated $6,000, and the NAR (National Association of Realtors) estimates you’ll recover $5,000,” he says.

A new paver patio or outdoor kitchen can also add to your home’s value and make your property a lot more enjoyable when the weather is nice.

Easy & Cheap Ways to Improve Your Home

Home improvement can be a great way to feel more comfortable and happier in your home, or to be more comfortable having guests pop by. Home improvement can also help if you have been trying to sell your house, but you still haven’t been able to sell. While some home improvements require a lot of saving up (such as a complete bathroom or kitchen remodel), there are many more affordable ways to improve your home without spending a lot of money.

It’s also true that some home improvements also give homeowners a better return than others, but in the end unless you are trying to sell your home, you also need to factor in what changes will make you the happiest while you live in your house. Of course, you also need to consider the time frame that you have to make changes. Here are five cheap improvements to consider.

1. Improve curb appeal

Improving your outdoor space takes time, but you can do it for very little money (or even for free) if you are willing to put the hours in. Giving your home better curb appeal will make your home look better overall, and impress potential buyers. According to the DIY Network, painting the front door, trim, or shutters is a great way to up your curb appeal. Upgrading your mailbox, improving your lighting, and adding flower boxes can also help. It’s also a good idea to trim shrubs and unruly trees and regularly mow your grass.

Once you have your curb appeal up to par, then you can focus on your backyard. Mowing and trimming is still important, but you also need to consider the placement of flower and vegetable gardens; your best bet will be to keep both yards looking well manicured.

There are so many ways you can improve your home without spending a lot of money. In addition to painting your kitchen cabinets, if you have the time to paint other rooms in the house, this is a great way to give your home a facelift. Decorating your home in a coordinated or clear style can also quickly make your home more presentable and comfortable. You just have to choose which direction you want to go in, and you need to determine how much time you have.

2. Organize as much as you can

Some people don’t consider organization to be a home improvement, but appropriately organizing your space can make a huge difference to potential buyers, and can also make you more comfortable in your own home. Organizing your home can be affordable, and it can also be a quick job (unless your home looks like a house from the television show Hoarders). Start by organizing the space you spend the most time in, and you can move on to the rest of your home when you have time. You can purchase shelves or organizing buckets if you want, but start by completing free organizing tasks first.

Find a permanent home for things that are on several different surfaces (for example, end tables and counters). Organizing your shoes, clothes, and even your refrigerator and pantry can help. Organizing is a lot like cleaning: It’s hard to start, but when you finish you will be surprised by how much better you feel.

3. Coordinate and update your kitchen

If you can’t afford new appliances, flooring, or cabinets, there are several less expensive kitchen improvements you can complete to make your space look better. You can paint cabinet doors to give them a fresh look, and you can also replace old hardware. Be sure to properly prepare if you are going to paint: It’s important to consider the scope of the job, to remember to remove hardware and doors, clean the surfaces, sand, and apply primer-sealer before painting.

Improving your kitchen lighting will also make your kitchen feel and look more comfortable (and more efficient lighting will save you money). Although replacing kitchen floors can be expensive, a deep cleaning or refinishing can help tremendously and cost less if you do it yourself.

4. Attic insulation

According to Remodeling magazine’s “key trends” in the 2016 Cost vs. Value Report, a fiberglass attic insulation project gives homeowners a large return on their investment (100% return in 60% of markets). Although this particular renovation isn’t as glamorous as some other possible renovations, it can help you whether you are planning to stay in your home or sell it because you can cut bills. According to Realtor.com, it will cost you about $1,268, and the resale value could be $1,482 (116.9 percent cost recouped). A manufactured stone veneer, garage door replacement, steel entry door replacement, and a minor kitchen remodel are some of the other improvements with high recoup rates.

5. Update your bedroom

Your bedroom should be a sanctuary: If you plan to live in your home for a while, it is imperative that your bedroom be a place that you enjoy being in. If you’re planning to sell your home, then you will want to wow potential buyers when they walk into the master bedroom. If your bedroom is small, then proper decorating is key: It’s important to consider the size and placement of your furniture, and to have the proper flooring (wood floors can be ideal, and radiant floor heating can be a plus); decorative mirrors can also make the room look bigger, and wall cabinets can save space.

Regardless of the size of your room, it’s important that it feels inviting. Also be sure to choose paint colors that will make you feel comfortable (or appeal to buyers), try to have a cohesive theme or color, and be sure to keep your room clean.

First-Time House Buyers: Essential Tips

Buying a home can be nerve-racking, especially if you’re a first-time home buyer.

These tips will help you navigate the process, save money and avoid common mistakes.

Mortgage down payment tips

1. Research state and local assistance programs

In addition to federal programs, many states offer assistance programs for first-time home buyers with perks such as down payment assistance, closing cost assistance, tax credits and discounted interest rates. Your county or municipality may also have first-time home buyer programs.

2. Explore your down payment and mortgage options

There are lots of mortgage options out there, each with its own combination of pros and cons. If you’re struggling to come up with a down payment, check out these loans:

VA loans Loans guaranteed by the Department of Veterans Affairs sometimes require no down payment at all.

Conventional mortgages They conform to standards set by the government-sponsored entities Fannie Mae and Freddie Mac, and require as little as 3% down.
FHA loans Loans insured by the Federal Housing Administration permit down payments as low as 3.5%.

Making a higher down payment will mean having a lower monthly mortgage payment.

If you want the smallest mortgage payment possible, opt for a 30-year fixed mortgage. But if you can afford larger monthly payments, you can get a lower interest rate with a 20-year or 15-year fixed loan. Use our calculator to determine whether a 15-year or 30-year fixed mortgage is a better fit for you. Or you may prefer an adjustable-rate mortgage, which is riskier but guarantees a low interest rate for the first few years of your mortgage.

3. Start saving for a down payment early

It’s common to put 20% down, but many lenders now permit much less, and first-time home buyer programs allow as little as 3% down. But putting down less than 20% may mean higher costs and paying for mortgage insurance, and even a small down payment can still be hefty. For example, a 5% down payment on a $200,000 home is $10,000.

Some tips for saving for a down payment include setting aside tax refunds and work bonuses, setting up an automatic savings plan and using an app to track your progress.

Mortgage application tips

4. Compare mortgage rates

Many home buyers get a rate quote from only one lender, but this often leaves money on the table. Comparing mortgage rates from at least three lenders can save you more than $3,500 over the first five years of your loan, according to the Consumer Financial Protection Bureau. Get at least three quotes and compare both rates and fees.

As you’re comparing quotes, ask whether any of the lenders would allow you to buy discount points, which means you’d prepay interest up front to secure a lower interest rate on your loan. How long you plan to stay in the home and whether you have money on-hand to purchase the points are two key factors in determining whether buying points makes sense.

5. Determine how much home you can afford

Before you start looking for your dream home, you need to know what’s actually within your price range.

6. Get a preapproval letter

You can get pre-qualified for a mortgage, which simply gives you an estimate of how much a lender may be willing to lend based on your income and debts. But as you get closer to buying a home, it’s smart to get a preapproval, where the lender thoroughly examines your finances and confirms in writing how much it’s willing to lend you, and under what terms. Having a preapproval letter in hand makes you look much more serious to a seller and can give you an upper hand over buyers who haven’t taken this step.

7. Check your credit and pause any new activity

When applying for a mortgage loan, your credit will be one of the key factors in whether you’re approved, and it will help determine your interest rate and possibly the loan terms.

So check your credit before you begin the homebuying process. Dispute any errors that could be dragging down your credit score and look for opportunities to improve your credit, such as making a dent in any outstanding debts.

To keep your score from dipping after you apply for a mortgage, avoid opening any new credit accounts, like a credit card or auto loan, until your home loan closes.

House shopping tips

8. Pick the right type of house and neighborhood

You may assume you’ll buy a single-family home, and that could be ideal if you want a big yard or a lot of room. But if you’re willing to sacrifice space for less maintenance and extra amenities, and you don’t mind paying a homeowners association fee, a condo or townhouse could be a better fit.

But even if the home is right, the neighborhood could be all wrong. So be sure to:

Drive through the neighborhood on various days and at different times to check out traffic, noise and activity levels.

Look at local safety and crime statistics.

Research nearby schools, even if you don’t have kids, since they affect home value.
Map the nearest hospital, pharmacy, grocery store and other amenities you’ll use.

9. Make the most of open houses

When you’re touring homes during open houses, pay close attention to the home’s overall condition, and be aware of any smells, stains or items in disrepair. Ask a lot of questions about the home, such as when it was built, when items were last replaced and how old key systems like the air conditioning and the heating are.

If other potential buyers are viewing the home at the same time as you, don’t hesitate to schedule a second or third visit to get a closer look and ask questions privately.

10. Stick to your budget

Look at properties that cost less than the amount you were approved for. Although you can technically afford your preapproval amount, it’s the ceiling — and it doesn’t account for other monthly expenses or problems like a broken dishwasher that arise during homeownership, especially right after you buy. Shopping with a firm budget in mind will also help when it comes time to make an offer.

In a competitive real estate market with limited inventory, it’s likely you’ll bid on houses that get multiple offers. When you find a home you love, it’s tempting to make a high-priced offer that’s sure to win. But don’t let your emotions take over. Shopping below your preapproval amount creates some wiggle room for bidding. Stick to your budget to avoid a mortgage payment you can’t afford.

11. Hire the right buyer’s agent

You’ll be working closely with your real estate agent, so it’s essential that you find someone you get along with well. The right buyer’s agent should be highly skilled, motivated and knowledgeable about the area.

First-time home buyer mistakes to avoid

With so much to think about, it’s unsurprising that some first-time home buyers make mistakes they later regret. Here are a few of the most common pitfalls, along with tips to help you avoid a similar fate.

12. Not buying adequate homeowners insurance

Before you close on your new house, your lender will require you to buy homeowners insurance. Shop around and compare insurance rates to find the best price. Look closely at what’s covered in the policies; going with a less-expensive policy usually means fewer protections and more out-of-pocket expenses if you file a claim. Also, flood damage isn’t covered by homeowners insurance, so if your new home is in a flood-prone area, you may need to buy separate flood insurance.

13. Not saving enough for after move-in expenses

Once you’ve saved for your down payment and budgeted for closing costs, you should also set aside a buffer to pay for what will go inside the house. This includes furnishings, appliances, rugs, updated fixtures, new paint and any improvements you may want to make after moving in.

14. Passing up the chance to negotiate

A lot can be up for negotiation in the homebuying process, which can result in major savings. Are there any major repairs you can get the seller to cover, either by fully handling them or by giving you a credit adjustment at closing? Is the seller willing to pay for any of the closing costs? If you’re in a buyer’s market, you may find the seller will bargain with you to get the house off the market.

15. Buying a home for today instead of tomorrow

It’s easy to look at properties that meet your current needs. But if you plan to start or expand your family, it may be preferable to buy a larger home now that you can grow into. Consider your future needs and wants and whether the home you’re considering will suit them.

16. Not budgeting for closing costs

In addition to saving for a down payment, you’ll need to budget for the money required to close your mortgage, which can be significant. Closing costs generally run between 2% and 5% of your loan amount. You can shop around and compare prices for certain closing expenses, such as homeowners insurance, home inspections and title searches. You can also defray costs by asking the seller to pay for a portion of your closing costs or negotiating your real estate agent’s commission. Calculate your expected closing costs to help you set your budget.

17. Not knowing the limits of a home inspection

After your offer is accepted, you’ll pay for a home inspection to examine the property’s condition inside and out, but the results will only tell you so much.

Don’t be afraid to ask your inspector to take a look — or a closer look — at something. And ask questions. No inspector will answer the question, “Should I buy this house?” so you’ll have to make this decision after reviewing the reports and seeing what the seller is willing to fix.

Make sure the inspector can access every part of the home, such as the roof and any crawl spaces.
Attend the inspection and pay close attention.
- Not all inspections test for things like radon, mold or pests, so be sure you know what’s included.

How to Get the Best Homeowners Insurance

Owning a home has long been a cornerstone of the American dream. Even frequently relocating military members can appreciate the satisfaction of building equity while painting the walls any color they choose. But buying a home – whether it’s your first or your fifteenth – also means you’ll need to purchase homeowners insurance, so it’s wise to consider your insurance options as you search for the perfect place to call your own.

Homeowners insurance premiums are determined by a number of factors, many of which are under your control. Making a few smart decisions will give you the coverage you need and could save you hundreds of dollars each year. Consider the following tips, which can go a long way toward protecting your home and your peace of mind.

Pick a good partner. Doing business with an insurance company you trust is important. Before purchasing insurance, review the company’s complaints record and rankings on customer satisfaction and financial security. Your state’s department of insurance Web site, and industry analyst companies such as J.D. Power or A.M. Best Company, are unbiased sources of information.

Know how much is enough. Studies from construction-cost estimator Marshall & Swift/Boeckh suggest that more than 60 percent of homeowners in the United States are underinsured, primarily because they don’t insure their homes to “replacement value.” Replacement value is what it would cost today to rebuild a home from the foundation up. Replacement value can differ substantially from market value, which represents what a willing buyer would pay for a home.

Since the cost of building materials has risen in recent years, it may cost more than market value to rebuild an older home. And if you’ve remodeled or renovated your house, your insurance coverage should be updated to reflect the home’s likely increase in replacement cost. Of course, increasing your insurance coverage will raise your monthly premiums, but it could save thousands of dollars in the long run if a major claim is necessary.

Float your way to complete coverage. While a standard homeowners policy will cover the structure of your home and some of your personal belongings, it may not provide full coverage for high-value possessions, such as coin collections and jewelry.

If you have specific items for which the value exceeds your policy limits, you may elect to add a “personal articles floater” to your coverage. Though rates will vary by state and for the actual item insured, you may be able to purchase a personal articles floater for as little as $30 a year to insure your most valuable possessions for their current purchase price or recent appraised value. Often used to fully insure engagement rings or electronics, “floaters” have no deductible and usually cover a broader range of claims, such as theft or loss away from the home.

Protect your financial assets. Repairing or replacing your property is only part of the homeowners insurance equation. Your policy can go much farther to protect your financial well-being through liability coverage.

As an example, if a visitor to your home falls down the stairs and is seriously injured, the visitor’s insurance company could hold you responsible for thousands of dollars in medical bills. In this type of situation, your homeowners policy would likely cover the costs up to a specified limit, and in certain cases it may even cover legal fees that arise.

But while standard policies typically offer $100,000 in liability protection, most insurance experts recommend $300,000 of coverage or more. Increased liability coverage is especially important for homeowners with potential safety hazards, such as a swimming pool.

Consider your comfort level. As you establish your homeowners insurance coverage, you’re able to choose your deductible level, which is the amount you will pay out of your pocket when you have a claim. Opting for a higher deductible, such as $1,000 instead of $500, can lower your monthly premiums significantly. Conversely, you may be more comfortable paying a higher premium each month for greater peace of mind should disaster strike. The choice is yours to make. Your insurance company can provide a variety of premium/deductible scenarios that will best suit your needs.

Save money through safety. You may be able to save on insurance premiums by looking into safety and prevention features that often merit a discount. Consider purchasing monitored security alarms, and take precautions such as installing deadbolt locks, both of which can ward away thieves and prevent a costly (not to mention frightening) break-in. Easily accessible fire extinguishers are another good addition to the home, reducing the risk of severe flame and smoke damage.

Keep your records current.If the unthinkable should occur and you have to file a major insurance claim, having up-to-date records of your home’s contents and structural condition can be invaluable during the claims process. First, if you’ve made any significant renovations to the home itself after moving in, be sure to inform your insurance company, since it may affect the replacement cost of the home.

Next, take an inventory of your belongings, including how much you paid for each item and its current value. Make a record of your possessions, with pictures or a video camera, and store the records outside of your home so they are less likely to be destroyed in a disaster. The record can help you determine your coverage needs, and it also can serve as your proof of ownership if a loss occurs, helping the insurance company to estimate your payment.

Be aware of geography. Regardless of the homebuilding materials used, where you live can have a significant effect on your insurance premiums and coverage availability. Homeowners likely will pay more for insurance in areas prone to severe weather and natural disasters, such as tornadoes, hurricanes, earthquakes or wildfires. According to the Insurance Information Institute, the states paying the most for homeowners insurance in recent years have been Texas, Louisiana and Florida, all coastal states with above-average claims for water and wind damage.

Your rates also may be affected by the neighborhood you choose. For example, homes in close proximity to a fire department may cost less to insure. And while seclusion can have its advantages, it won’t lower your insurance rates if emergency vehicles may have difficulty reaching your home.

Get the facts. When you find a house, gather as much information as you can to determine its potential insurance costs. The age of electrical, plumbing and other systems within the home, as well as construction materials used to build the house, can affect your premiums. For example, masonry homes or less flammable roofing material can provide an insurance price break, especially in dry areas of the country that are most susceptible to fire damage. On the other hand, masonry homes could be much more expensive to insure against earthquake damage. Homeowners and potential buyers can review current building codes and materials recommendations at www.disastersafety.org/, the Web site for the Institute for Business and Home Safety.

Embrace preventive maintenance. Remember that a homeowners insurance policy is designed to repair or replace your property in the event of an unexpected major loss, and individuals who repeatedly file claims for minor problems may face higher premiums and could jeopardize their insurability. Conducting preventive maintenance on your home and repairing small problems quickly can help avert more substantial losses down the road. A number of providers offer home warranty coverages more suitable for maintenance needs involving appliances, plumbing or the like.

Amazing Money-Saving Tips For Every Homeowner

Owning a home doesn’t need to be as costly as it does. We all know that if you own a home, all of the costs from the mortgage, utilities, maintenance, and upkeep add up and are expensive.

Just to make your life easier, I’ve made one fascinating collection of amazing and useful energy saving tips that will save you money.

Besides that all of these tips are free or cheap. They won’t cost you a lot, but they will make a big difference. Most of them don’t take a lot of time, and you don’t have to be a home-improvement expert.

Here are 15 of the best energy saving tips that will make your energy bills shrink.

1. Repair leaky ductwork

Over time the joints and seals in ductwork can dry out and deteriorate due to temperature fluctuations in crawl spaces, basements, and attics.

Hire a HVAC service tech to check out the ductwork.

If you are a do-it-yourselfer, use a flashlight and shine the beam on the ducts where they connect to other ducts or registers. What you are looking for are areas where there isn’t any dust – a sure sign there is a leak in the area.

You can also do the incense test while the system is running too. Move the incense around each duct joint looking for air movement.

To repair the system yourself check out youtube by searching for ‘how to patch ductwork’.

Savings: 3%–10% on heating and cooling bills per year
Cost: $30 and up, depending on if you do it yourself or have your system serviced
Time: 60 minutes

2. Replace air filters

Replace your HVAC filters at least every 6 months, preferably every 3. Clogged, dirty filters block airflow and reduce your system’s efficiency. In the worst case scenario, a wrongly sized filter or dirty filter can cause your system to burn out, requiring replacement.

Savings: 5% – 15% / year on energy
Cost: $5-$30
Time: 10 minutes

3. Give your air conditioner some fresh air

Have you ever tried running really fast with a rag over your mouth? I haven’t either, but that’s what most people are expecting their AC units to do.

Many AC units are surrounded by shrubbery that can restrict the airflow needed to make the systems run optimally. Take a few minutes today or this weekend and look around your AC’s outdoor unit:

Provide at least 1’ of clearance all around the units.
Trim any bushes that are touching the units
Remove any leaves and dirt around the unit
Remove any other obstructions like that rotting pingpong table leaning up against it
If there is significant mud or dirt inside the unit have it professionally serviced

Savings: $20 / year
Cost: FREE
Time: 20 minutes

4. Block out the sun

All of those windows in your home are the largest source of heat flowing inside during hot summer days.

Closing the blinds and/or curtains blocks the sun from coming inside in the first place and will help prevent it from heating up, reducing the need for the AC to cool it down. Blocking the sun is especially important on the western and southern facing windows that receive the most direct sunlight.

Savings: $15-$35 / year
Cost: FREE
Time: none

5. Shower power

Do you take a hot shower in the summer steaming up the bathroom mirrors? If so you’re adding heat back into your home that needs to cool.

Take a quicker shower. And take a warm shower instead of a burning hot one. Using less hot water will also save energy.

Savings: $50 / year
Cost: FREE
Time: 10 minutes

6. Automate your thermostat or use a post-it note

In my first home, I would manually turn up the thermostat as I walked out the door to work, and I would manually adjust it down when I came home in the evening.

Last year I replaced all of the thermostats in my house with the Nest learning thermostat. It learns your schedule to keep your home comfortable when you are home. Nests’ are pricey, but according to the Nest website:

I wish I had known about this before buying mine. Oh well, my mistake for you to learn. Check with your utility provider to see what might be available in your area.

If you can’t get a free or discounted smart thermostat from your utility provider, you can go the manual route like I used to. Go get a sticky note, and put it on the door you take to leave your home. Write a reminder to change the thermostat as you walk out the door. Simple and free.

Savings: $173 year (average for a programmed thermostat)
Cost: $0 – $250 per thermostat
Time: Varies

7. Hang out your laundry

Yeah, I don’t do this either. It takes too long. In the summer, it’s too hot out.

For a long time, I used a clothes rack but now I have an even more ingenious way to dry my clothes.

I bought a bunch of plastic hangers to hang up ALL of my shirts, shorts, and pants. Now that I have to hang my clothes up anyway, I just pull them out of the washing machine and put them up on the hangers to dry. Boom! I’m just skipping the drying part because they dry in my closet – for free.

For the things I don’t hang up (socks) I’ve got a drying rack. It takes up very little space.

Savings: $80 – $250 / year depending on household size
Cost: $30 for hangers or racks
Time: Varies by method

8. Grilled to perfection

In the summer consider cooking primarily using the microwave, crockpot, or grilling outside to avoid heating up your home with the oven and stove.

Savings: At least a few bucks and your kitchen won’t be as hot.
Cost: FREE
Time: None

9. Fix leaky windows

If you have a 1/64 inch gap around a single window – which is REALLY TINY – it is the equivalent of a 3.27 square inch hole in your wall – which is REALLY BIG.

If you have a 1/32 inch gap around a single window, it is the equivalent of a 6.5 square inch hole in your wall. That’s big enough to put your fist through!

If you have ten windows in your house, that’s a lot of big holes that are draining your wallet year after year.

To determine if your windows are leaky close all your windows, doors, and the flue damper in your chimney if you have a fireplace. Use a stick of incense and move it around each window to see if there is air flow. If there is, you’ve got a leak!

Weatherstripping is an easy and cost-effective way to save money on energy costs and improve comfort by reducing drafts. It’s something any homeowner can do. Peel-and-stick weatherstripping is easy and useful for sealing drafts:

Remove any dirt and grease from the window jambs or sash.
Dry the areas with a rag.
Cut the weatherstrip to the right length
Peel off the back
Press the sticky part to the surface.

Now check your windows from the outside

Inspect for any cracked or damaged caulking around the windows where the casing meets the house, and around the window frame.
Scrape and clean away any damaged caulking
Apply a fresh bead of paintable acrylic latex to reseal the window.

Savings: 10%–20% of your heating and cooling costs per year
Cost: $30-$50
Time: 2–3 hours

10. Child proof your outlets – even if you don’t have kids

My first home which was built in 1999 had this next problem. The inside outlets located on the exterior walls were like mini vacuums when it came to transferring air from the inside to the outside.

If you have an older home or a poorly constructed home you’ve probably got the same problem.

Electrical outlet boxes typically don’t have any insulation behind them, creating what is basically a hole in your wall. On a windy day take some incense or a match and put it in front of an outlet (one without a plug in it of course) and see if you can see air movement. In my situation I noticed this during the winter when I felt a cold breeze coming through the outlets.

The simple solution? Install socket sealers to improve energy efficiency. All you have to do is remove your outlet cover with a screwdriver, put on the outlet sealer, and put the cover back on. Easy!

The second step is to put in those plastic child-proof outlet plugs.

Savings: 2% of heating and cooling costs per year
Cost: $8.51 for outlet sealers, $2.49 for outlet plugs
Time: 20 minutes

11. Get a heating and cooling service contract

My neighbors A/C unit ran him $8,000 to replace. I had to replace one after getting married for $3,000. Hire a professional HVAC maintenance company to ready your AC unit for the summer and your furnace for the winter. There is no better way to insure this investment, and you they usually give you discounts on parts if anything breaks. This is one of the very few maintenance contracts I recommend people to buy.

Savings A lot if your HVAC unit crashes and burns
Cost: $250-$400 per year
Time: Just a phone call

12. Use fans

A ceiling fan can make your room feel up to 7 degrees cooler. Fans will allow you to turn your AC up a couple extra degrees, saving even more money.

Savings: $35-$53 / year
Cost: FREE (assuming you have ceiling fans)
Time: none

13. Insulate leaky kitchen and bathroom sinks

If you have a sink, toilet, cable or phone line in an external wall, chances are they are uninsulated around behind the wall. Warm and cool air is escaping from these exterior openings.

This one is a bit trickier to determine if you have an air leak. You can use a thermal leak detector to determine if there is a temperature difference by comparing the area near the hole and then the hole itself. If there is a big difference you might want to fix that leak.

Or if you don’t want to spend the money on a thermal imager you can do what I do as soon as I move into a new house. Buy some expanding foam insulation and spray it into every crevice I can find in my exterior walls.

I use Great Stuff. Around the bathroom sinks in your house spray where the sink drain goes into the wall. Also where the water lines came out.

I used about 2 cans for my house that was built in 2009.

Savings: Up to 17% of your energy bills per year
Cost: $10.13 and up depending on how many cans you use
Time: 30 minutes

14. A bright idea?

LED lighting runs cooler than incandescent bulbs. Only about 10% to 15% of the electricity that incandescent lights consume results in light. The rest is turned into heat, and that heat needs to be cooled by your AC system.

Last year I made the switch to LED lights – but not all of the lights in my house, and that’s key for saving money. Check out ‘Are LEDs worth it?’

I use Cree LED light bulbs in my house. I found them to have the most natural lighting (I tried four different brands).

Don’t forget to factor in the cost of the bulbs!

Savings: Varies on usage
Cost: $9 – $20 / bulb
Time: 2 minutes / bulb

15. Remove gaps under your doors

There is probably a hole under your door and you don’t even know it.

Most homeowners don’t even think about the bottom of their doors, and instead focus on the sides and top. But the bottom of the door sees just as much action each day as the sides and top, and it’s got that rubber gasket which is prone to deteriorating faster because it has more exposure to dirt and moisture.

You can use the incense test on this area of your home too. Run it near the bottom of any exterior doors on a windy day to see if there is air movement.

To fix you’ll need to replace your door sweep. Take pictures and measurements of your existing door sweep before heading to the home improvement store.

If it’s a nice day just take your existing one off and bring it with you so you can match up the size perfectly. They are pretty easy to replace. I’m not Mr. Fix-It and even I managed to do it.

Savings: Up to 11% of outside air is blocked
Cost: $10-$20
Time: 30 minutes per door

16. Insulate the hole in your attic

You have insulation between your exterior walls. Yet what separates from your conditioned home and the attic is usually a ½” piece of plywood – otherwise known as the attic stairs (or hatch).

Plywood isn’t a good insulator.

If you have a hatch:

Add a gasket around the opening.
Attach some rigid foam insulation to the top of the hatch

If you have a pull down attic staircase:

Get an attic tent that has a zipper to seal it up.

Savings: Up to 30% on your energy bills per year
Cost: $20 (hatch) – $158 (stairs)
Time: Beats me, I had someone install mine as part of an energy audit

How to Easily Maintain Your Home

Buying a home is exciting and scary. Home maintenance doesn’t have to be hard. Learn what tools you need, how to find the circuit breaker or to shut off the water.

Maintenance Tips for First Time Homeowners

Owning your first house is exciting! You can build a killer deck or paint the walls purple on a whim. When it comes to renovations and personalizing your new home, however, you may find yourself stuck trying to figure out where to begin. The solution to this quandary is quite simple. Before you fire up the cordless drill or contemplate knocking down walls, you’ll want to take care of a few preventative home maintenance tasks first. Home maintenance can be daunting for new homeowners if you’re used to calling a landlord to come fix your problems. But stick to this list of maintenance tips for new homeowners to make sure your bases are covered.

Call 811 Before You Dig

Whether you’re planting shrubs or building a new fence, you need to be sure you won’t hit any utilities when you break ground. Call 811, the national dig-safely hotline. They’ll send the utility companies out to mark the locations of underground pipes, wires and cables. Not only will you avoid expensive repairs and neighborhood-wide cable outages with 811’s help, but you’ll also ensure that any work you do on your property will be conducted under much safer conditions.

Hire A Professional To Trim Your Trees

Remove dead branches or limbs that could fall on your roof or overhead power lines. This is also a great opportunity to check the integrity of your gutters, soffits, eaves and roof vents. Because huge limbs can break and fall unpredictably, leave tree trimming to the pros.

Find Your Circuit Breaker Box

While you’re searching your closets, basement, garage and front and back yards for your main water shut off valve, be on the lookout for your circuit breaker box. Once you’ve identified it, determine which fuses control the electricity in various areas of your house and label them accordingly.

Check Your Attic Insulation

If your attic inspection reveals that the tops of your floor joists are visible, then your home is insufficiently insulated. The recommended amount of insulation for most attics is about 10 to 14 inches of material, depending on the type of insulation used. The attic is the easiest place to add insulation to improve your home’s energy efficiency. A well-insulated house can save you up to 30 percent on your energy bills, increase your property value and keep your family a lot more comfortable.

Locate Your Main Water Shut Off Valve

Gallons of water rushing out of a burst pipe can wreak havoc on your drywall, flooring and belongings. In fact, non-weather-related water damage is the second most common homeowner’s insurance claim, according to one company’s claims history. So you need to be able to cut off the flow of water into your home quickly in case of an emergency.

Find your water shut off valve. This is where the water main enters your house. It’s often — but not always — located near a street or alleyway. Next, be sure you know how to close it. You may need to purchase a special tool, such as a crescent wrench or “curb stop key”, both to access and actually turn the valve.

Check Your Foundation

If rain and melting snow drench the soil around the base of your home, pressure can build up and inflict structural damage on your foundation. Worse, if a leak springs and water comes into direct contact with your home’s foundation, it can expand any existing cracks and cause expensive problems. To prevent the weakening of your foundation, be sure the ground around your foundation slopes away from your house at least 6 inches over 10 feet. Be sure your gutters are clean and draining properly. Finally, caulk any small cracks in your foundation walls before they have a chance to becomes big deals.

Proceed Cautiously When Drilling Into Walls

Plumbing pipes, ductwork, wires and cables are hidden in most homes. Before you power up your drill, use a battery-operated stud sensor to detect studs, cables, ducts and the other vital veins and arteries running just beneath the surface of your walls. Since stud sensors aren’t always 100% accurate, avoid damage by drilling only 1 and one-fourth inches deep – just enough to clear the drywall and plaster but miss most wiring and pipes.

By following these first-time homeowner tips, you can protect your investment. You can increase that level of protection, and help reduce major costs associated with repairs and replacements in your home.

Financial Tips for Homeowners

Few things are more exciting than making the leap from being a renter to being a first-time homeowner. Getting swept up in all the excitement is a wonderful feeling, but some first-time homeowners lose their heads and make mistakes that can jeopardize everything they’ve worked so hard to earn. Following a series of practical steps early in the homeowning experience can save new owners time, money, and effort later down the road.

Get Properly Insured

Your mortgage lender requires you not only to purchase homeowners insurance but also to purchase enough to fully replace the property in the event of a total loss. But that’s not the only insurance coverage you need as a homeowner. If you share your home with anyone who relies on your income to pay the mortgage, you’ll need life insurance with that person named as a beneficiary so that they won’t lose the house if you die unexpectedly. Similarly, you’ll want to have disability-income insurance to replace your income if you become so disabled that you can’t work.

Also, once you own a home, you have more to lose in the event of a lawsuit, so you’ll want to make sure you have excellent car insurance coverage. If you are self-employed as a sole proprietor, you may want to consider forming a corporation for the greater legal protection of your assets.

You may also want to purchase an umbrella policy that picks up where your other policies leave off. If you are found at fault in a car accident with a judgment of $1 million against you and your car insurance only covers the first $250,000, an umbrella policy can pick up the rest of the slack. These policies are usually issued in units of one million.

Hire Qualified Contractors

Don’t try to save money by making improvements and repairs yourself that you aren’t qualified to make. This may seem to contradict the first point slightly, but it really doesn’t. Your home is both the place where you live and an investment. It deserves the same level of care and attention you would give to anything else you value highly.

There’s nothing wrong with painting the walls yourself, but if there’s no wiring for an electric opener in your garage, don’t cut a hole in the wall and start playing with copper wiring. Hiring professionals to do work you don’t know how to do is the best way to keep your home in top condition and avoid injuring—or even killing—yourself. Also, be sure to check with the local building authority and pull any necessary permits to complete the work.

Don’t Overspend to Personalize

You’ve just handed over a large portion of your life savings for a down payment, closing costs and moving expenses. Money is tight for most first-time homeowners. Not only are their savings depleted, but their monthly expenses are also often higher as well, thanks to the new expenses that come with home ownership, such as water and trash bills, and extra insurance.

Everyone wants to personalize a new home and upgrade what may have been temporary apartment furniture for something nicer, but don’t go on a massive spending spree to improve everything all at once. Just as important as getting your first home is staying in it, and as nice as solid maple kitchen cabinets might be, they aren’t worth jeopardizing your new status as a homeowner. Give yourself time to adjust to the expenses of home ownership and rebuild your savings – the cabinets will still be waiting for you when you can more comfortably afford them.

Get Help With Your Tax Return

Even if you hate the thought of spending money on an accountant when you normally do your tax returns yourself, and even if you’re already feeling broke from buying that house, hiring an accountant to make sure you complete your return correctly and maximize your refund is a good idea. Homeownership significantly changes most people’s tax situations and the deductions they are eligible to claim.

Just getting your taxes professionally done for one year can give you a template to use in future years if you want to continue doing your taxes yourself.

Repairs vs. Improvements

Unfortunately, not all home expenses are treated equally for the purpose of determining your home’s basis. The IRS considers repairs to be part and parcel of home ownership—something that preserves the home’s original value but does not enhance its value.

This may not always seem true. For example, if you bought a foreclosure and had to fix a lot of broken stuff, the home is obviously worth more after you fix those items, but the IRS doesn’t care—you did get a discount on the purchase price because of those unmade repairs, after all. It’s only improvements, like replacing the roof or adding central air conditioning, which will help decrease your future tax bill when you sell your home.

For gray areas (like remodeling your bathroom because you had to bust open the wall to repair some old, failed plumbing), consult IRS Publication 530 and/or your accountant. And on a non-tax-related note, don’t trick yourself into thinking it’s OK to spend money on something because it’s a necessary “repair” when in truth it’s really a fun improvement. That isn’t good for your finances.

Keep Receipts for Improvements

When you sell your home, you can use these costs to increase your home’s basis, which can help you to maximize your tax-free earnings on the sale of your home. In 2008, you could have earned up to $250,000 tax-free from the sale of your home if it was your primary residence and you had lived there for at least two of five years before you sold it.

This deduction assumes that you owned the home alone—if you owned it jointly with a spouse, you could each have gotten the $250,000 exemption.

Let’s say you purchased your home for $150,000 and were able to sell it for $450,000. You’ve also made $20,000 in home improvements over the years you’ve lived in the home. If you haven’t saved your receipts, your basis in the home, or the amount you originally paid for your investment, is $150,000. You take your $250,000 exemption on the proceeds and are left with $50,000 of taxable income on the sale of your home. However, if you saved all $20,000 of your receipts, your basis would be $170,000 and you would only pay taxes on $30,000. That’s a huge saving. In this case, it would be $5,000 if your marginal tax rate is 25%.

Don’t Ignore Important Maintenance

One of the new expenses that accompany home ownership is making repairs. There’s no landlord to call if your roof is leaking or your toilet is clogged. To look at the positive side, there’s also no rent increase notice taped to your door on a random Friday afternoon. While you should exercise restraint in purchasing the nonessentials, you shouldn’t neglect any problem that puts you in danger or could get worse over time. Delay can turn a relatively small problem into a much larger and costlier one.

The Bottom Line

With the great freedom of owning your own home comes great responsibilities. You must manage your finances well enough to keep the home and maintain the home’s condition well enough to protect your investment and keep your family safe. Don’t let the excitement of being a new homeowner lead you to bad decisions or oversights that jeopardize your financial or physical security.

Tips Every New Homeowner Should Know

Congratulations! You’ve just purchased your first home. Buying a home is a smart investment and offers a lot of benefits for you and your family. But owning a home also comes with a few disadvantages, like not being able to call your landlord when something goes awry.

But don’t worry. We have some homeowner tips and tricks that will help you prepare for those surprises and maybe even save you a few dollars down the road.

Use these new homeowner tips to make your transition to property owner a little smoother.

1. Change Your Air Filter Regularly

This probably sounds obvious, but it is an often overlooked homeowner maintenance tip. When you move into your home, change your air filter right away. Mark the date on your calendar and change it every 90 days moving forward. Consider changing it every 60 days if you have pets or if you suffer from allergies.

Changing your air filter not only helps keep your air clean, but it also reduces dust in your home and extends the life of your furnace.

2. Know How to Turn Off Your Water Valve

Picture this: You wake up in the middle of the night to find a busted pipe filling your basement with water. It takes you five minutes to locate your main water valve and two more minutes to turn it off. That’s seven additional minutes of water flowing into your basement.

It’s a good idea to locate this valve when you move in and learn how it works to save yourself time during an emergency. Learn how to shut off your power and gas lines while you’re at it.

Another homeowner tip is to turn off your main water valve whenever you leave on vacation. This will prevent flooding if something should go wrong when you are out of town.

3. Create a Homeowner’s Binder

You may have noticed during the purchasing process that there is a lot of paperwork involved in owning a home. Before you move into your new home, create a binder for important documents, such as mortgage and home insurance paperwork.

After your move in, use the same binder to store all of the guides and warranties for your new appliances. Store receipts for any home improvement and moving expenses here as well. You’ll want to hang on to these for your taxes. You can also start collecting contact information for reliable contractors in this binder.

4. Wait to Start Any Large Projects

One thing every homeowner should know: home improvement projects are expensive. Avoid completing unnecessary projects. Unless your new home is not livable, hold off on any major construction projects until you’ve lived in the home for at least six months.

Waiting a few months to make any huge changes will allow you to get a feel for your home and put your priorities in order. After a few months, you may learn that the floor plan doesn’t bother you as much as expected, but you’ve discovered you can’t live with the current bathroom configuration. Waiting will also give you time to save for the cost of any upcoming projects.

It is a good idea to complete small projects such as painting or removing carpet before moving into your new home.

5. Start an Emergency House Fund

You never know when something is going to go wrong, or how much it is going to cost. A great homeowner tip is to start an emergency savings account as soon as possible.

The longer you live in your home, the more likely you are to experience a surprise plumbing, heating or roofing issue. Start saving early to take a little stress out of this typical homeowner experience.

6. Pay Attention to Your Energy Usage

Owning a home means paying your own utility bills. Pay attention to how your home is using energy and use the information to reduce your carbon footprint and save money. You’ll be surprised how small changes can affect your electric bill.

Homeowner tips and tricks for reducing your energy costs:

Move your refrigerator away from your oven.
Schedule a home energy audit.
Lower your water heater’s thermostat to 120 degrees.
Switch out lightbulbs for energy-efficient LED lightbulbs.

7. Learn How to Identify Potential Issues in Your New Home

One of the best homeowner maintenance tips is to detect minor problems before they become huge issues. After purchasing your home, take some time to learn about some of the common issues homes face, especially if you’ve purchased an older home or one that was unoccupied for a period of time. Being able to identify a potential problem early on could save you money later.

Learn to recognize:

Basement leaks and flooding.
Signs of a roof leak.
Foundation issues.

If you can catch these issues early, you can prevent further damage to your home and save yourself a lot of headaches.

8. Make Friends With Your Neighbors

As many homeowners know, having bad neighbors can make your living situation less than pleasant. Work to be a good neighbor right away by introducing yourself and making friends as soon as you move in. Building a relationship with your neighbors will help you learn about your neighborhood, find reliable contractors and maybe even allow you to borrow tools when you need them.

Knowing your neighbors will also make it easier to address any issues that arise later, such as property line or noise concerns.

9. Invest in New Tools

Now that you’re a homeowner, it’s time to get yourself a toolbox. From measuring for a new couch to hanging curtains and photographs, you’re going to need tools even if you’re not planning any big DIY projects.

Best tools for new homeowners:

Ladder
Electric drill
Measuring tape
Hammer
Stud finder

Owning these tools will make following the rest of these new homeowner maintenance tips easier.

10. Complete One Project at a Time

Don’t work on multiple home projects at once. You may want to get all your improvements finished as soon as possible, but this isn’t the answer. Not only will you exhaust your finances, but you will also make your new home unlivable and add unnecessary stress to your everyday life.

Instead of starting all your projects at once, learn how to plan a home remodel that won’t make you miserable.