Category: Home Maintenance

Checking for Water Leaks

7/8/2019

Aside from standing water in your yard or water running out from under a sink, the first indication that you might have a water leak comes from a larger than normal water bill.  Before calling a leak specialist or a plumber, there is a simple diagnostic you can perform.

Go through your home and make certain that all the faucets are turned off and that the toilets have indeed stopped filling the reserve.  Then, go to the water meter and make a mark on the lens where the dial is currently.  If there is water in the meter box, the meter itself could be leaking.

If the meter is still turning, the leak is between the meter and the house. By inspecting the area between the meter and the house, you can look for soft, muddy areas or grass that is greener than the rest of the yard.

One of the hardest places to isolate a leak is in a swimming pool.  If you have an automatic filler, like in a toilet, you'll need to turn it off.  Mark the water line on the wall and wait to see if the water level goes down.  There will be a certain amount attributable to evaporation.

Some leaks can be very difficult to locate.  Plumbers, by the very nature of their job, will be more familiar with tracking down the source of the leak than a homeowner.  There are some non-invasive techniques like acoustic listening devices, heat scanners and miniature video cameras on fiber optics that professionals can use.

Leaks can be expensive from the loss of water and the resulting damage that it can cause.  Determining where the location of the leak can also cause damage because plumbing is usually concealed in walls or under concrete. For particularly difficult to locate leaks, discuss how the professional intends to locate the leak and minimize damage in the process.

Don't Leave Home Without...

6/10/2019

You been planning this trip for some time and almost every detail has been considered...or has it?  Have you thought about how to protect your home while you're out of town?  What's going to make sure that everything you left is still there in you return?

Nothing could ruin a trip more than coming back to find out your home has been burglarized or worse.  It makes sense to spend a little time before you leave on making sure your home is as safe and sound as it can be.

There are a host of devices to use across the Internet including camera door bells, video cameras, door locks, garage door openers, light and thermostat controls.  You can monitor your home whenever you have an Internet connection.  The question is whether you want the distraction from your trip.

Consider these low-tech suggestions along with your other normal efforts:

Tell your neighbors you'll be out of town and to be aware of any unusual activity.
Notify your alarm company
Discontinue your postal delivery
Use timers on interior lights to make it appear you're home as usual.
Don't make it easy for burglars by leaving messages on voice mail or posting on social networks.
Post on social networks after you've returned about your vacation.
Remove the hidden spare keys and give it to a trusted neighbor or friend.
Lock everything, double-check and set the alarm.
Take pictures of your belongings in case you need them.
Disconnect TVs and other equipment in case of unexpected power surges.
Adjust your thermostat.
Arrange for lawn care.
Consider disconnecting the garage door opener.
Put irreplaceable valuables in a safety deposit box.

It's nice to go out of town on a well-deserved trip and it's always nice to get back home...especially when it is just the way you left it.

Comfort Systems

5/13/2019

Heating and air-conditioning are frequently referred to as the "comfort systems." If one has gone out in the dead of winter or the heat of summer, lack of comfort becomes a primary concern. Regular maintenance with a HVAC checklist is something that homeowners can do themselves to ensure that the units operate properly.

Periodically

Change your filter every 90 days; every 30 days if you have shedding pets.
Maintain at least two feet of clearance around outdoor air conditioning units and heat pumps.
Don't allow leaves, grass clippings, lint or other things to block circulation of coils.
Inspect insulation on refrigerant lines leading into house monthly and replace if missing or damaged.

Annually, in spring

Confirm that outdoor air conditioning units and heat pumps are on level pads.
Pour bleach in the air conditioner's condensation drain to clear mold and algae which can cause a clog.
Avoid closing more than 20% of a home's registers to keep from overworking the system.
Replace the battery in the home's carbon monoxide detector.

While using this list will provide some things that may impede the comfort system's proper performance, it is recommended that you have your units serviced annually by a licensed contractor. Furnaces should also be inspected for carbon monoxide leaks. Preventative maintenance may help avoid costly repairs.

A Home Warranty Can Save Money

5/6/2019

Your income tax is probably filed for last year by now and you've been through your expenses for the year. Money spent on repairs to your home is not deductible but being aware of how much you spent last year may help you make a decision that could save you money this year.

Sellers, often, provide a home warranty to buyers to give them peace of mind by limiting some of the out-of-pocket money spent on unexpected repairs for one year.  Home warranties can be renewed by the buyer by paying the annual fee and any homeowner can purchase one for their home whether they had one when they bought it or not.

A home service contract typically covers mechanical systems and built-in appliances in the home.  Many times, these items are not covered by the homeowner's insurance policy.  They can also include other things such as pool and spa equipment, and free-standing appliances like refrigerators, washers and dryers.

The process is simple.  It doesn't cover pre-existing conditions.  Once a plan is in effect, you call to report a claim.  The company will assign a local profession to assess the problem and if covered, they will repair or replace the item.  You will only pay a service fee.

Home protection plans can range in prices depending on area and coverages.  Most start around $400-500 a year which could easily cover the cost for one claim alone.

For more information on home warranties in general, you can go to HomeServiceContract.org which is an association representing some of the premier home service contract providers.  If you'd like to have a recommendation based on companies we work with in our area, give me a call at.

One Loan for Purchase & Renovations

4/22/2019

The FNMA HomeStyle conventional mortgage allows a buyer to purchase a home that needs renovations and include them in the financing. This facilitates the purchase of the home and the renovations in one loan rather than getting a separate second mortgage or home equity line of credit.

The combination of these loans should save closing costs as well as interest rates which would typically be higher on a home improvement loan.

The borrower will need to have an itemized, written bid from a contractor covering the scope of the improvements. Any type of renovation or repair is eligible if it is a permanent part of the property. Improvements must be completed within 12 months from the date the mortgage loan is delivered.

15 and 30-year fixed rate and eligible adjustable rate loans are available.
Typical FNMA down payments are available starting as low as 3% for a one-unit principal residence to 25% for three and four-unit principal residence and one-unit investment properties.
Borrower must choose his or her own contractor to perform the renovation.
Lender must review the contractor hired by the borrower to determine if they are adequately qualified and experienced for the work being performed. The Contractor Profile Report (Form 1202) can be used to assist the lender in making this determination.
Borrowers must have a construction contract with their contractor. Fannie Mae has a model Construction Contract (Form 3734) that may be used to document the construction contract between the borrower and the contractor.
Plans and specifications must be prepared by a registered, licensed, or certified general contractor, renovation consultant, or architect. The plans and specifications should fully describe all work to be done and provide an indication of when various jobs or stages of completion will be scheduled (including both the start and job completion dates)

Up to 50% of the renovation funds may be advanced for the cost of materials after the closing of the loan.

This mortgage does have a provision for the borrower to do a portion of the work themselves if it doesn't exceed 10% of the total project and it must pass inspection on completion just as the contractor's work.

It is recommended that borrowers thoroughly research this program before they commit to a loan. For detailed information, see FNMA HomeStyle Renovation Mortgage and Selling Guide Announcement SEL-2017-02. It is important to work with a mortgage officer who is familiar with these loans who can guide you through the process.

Get Rid of Things You Don't Need

4/15/2019

Periodically, you need to rid yourself of things that are taking up you time and space to make room for more of what you like and want.

There's a frequently quoted suggestion that if you haven't used something for two years, maybe it isn't essential in your life.

If you have books you'll never read again, give them to someone who will. If you have a deviled egg plate that hasn't been used since the year your Aunt Phoebe gave it to you, it's out of there. Periodically, go through every closet, drawer, cabinet, room and storage area to get rid of the things that are just taking up space in your home and your life.

Every item receives the decision to keep or get rid of. Consider these questions as you judge each item:

When was the last time you used it?
Do you believe you'll use it again?
Is there a sentimental reason to keep it?

You have four options for the things that you're not going to keep.

Give it to someone who needs it or will appreciate it
Sell it in a garage sale or on Craig's List.
Donate it to a charity and receive a tax deduction
Discard it to the trash.

Start with your closet.  If you haven't worn something in five years, get rid of it.  Then, go through the things again and if you haven't worn it in two years, ask yourself the real probability that you'll wear it again.

Another way to do it is to move it from your active closet to another closet.  If a year goes by in the other closet, the next time you go through this exercise, those clothes are on their way out.
If the items taking up space are financial records and receipts, the solution may be to scan them and store them in the cloud.  There are plenty of sites that will offer you several gigabytes of free space and it may cost as little as $10 a month for 100 GB at Dropbox, to get the additional space you need.  It will certainly be cheaper than the mini-storage building.

To-Do List for Better Homeowners

3/25/2019

Checklists work because they contain the important things that need to be done. They provide a reminder about things we know and realize but may have slipped our minds as well as inform us about things we didn't consider. Periodic attention to these areas can protect the investment in your home.

Change HVAC filters regularly. Consider purchasing a supply of the correct sizes needed online and they'll even remind you when it's time to order them again.
Change batteries in smoke and carbon monoxide detectors annually.
Create and regularly update a Home Inventory to keep track of personal belongings in case of burglary or casualty loss.
Keep track of capital improvements, with a Homeowners Tax Guide, made to your home throughout the year that increases your basis and lowers gain.
Order free credit reports from all three bureaus once a year at www.AnnualCreditReport.com.
Challenge your property tax assessment when you receive that year's assessment when you feel that the value is too high. We can supply the comparable sales and you can handle the rest.
Establish a family emergency plan identifying the best escape routes and where family members should meet after leaving the home.
If you have a mortgage, verify the unpaid balance and if additional principal payments were applied properly. Use a Equity Accelerator to estimate how long it will take to retire your mortgage.
Keep trees pruned and shrubs trimmed away from house to enhance visual appeal, increase security and prevent damage.
Have heating and cooling professionally serviced annually.
Check toilets periodically to see if they're leaking water and repair if necessary.
Clean gutters twice a year to control rainwater away from your home to protect roof, siding and foundation.
To identify indications of foundation issues, periodically, check around perimeter of home for cracks in walls or concrete. Do doors and windows open properly?
Peeling or chipping paint can lead to wood and interior damage. Small areas can be touched-up but multiple areas may indicate that the whole exterior needs painting.
If there is a chimney and fires are burned in the fireplace, it will need to be inspected and possibly cleaned.
If the home has a sprinkler system, manually turn the sprinklers on, one station at a time to determine if they are working and aimed properly. Evaluate if the timers are set properly. Look for pooling water that could indicate a leak underground.
Have your home inspected for termites.

Instead of remembering when you need to do these different things, use your calendar to create a system.  As an example, make a new appointment with "change the HVAC filters" in the subject line.  Select the recurring event button and decide the pattern.  For instance, set this one for monthly, every two months with no end date.  You can schedule a time or just an all-day event will show at the top of your calendar that day.

By scheduling as many of these items as you can, you won't forget that they need to be done.  If you don't delete them from the calendar, you'll continue to be "nagged" until you finally do them.

If you have questions or need a recommendation of a service provider, give us a call at .  We deal with issues like this regularly and have experience with workers who are reputable and reasonable.

Your Real Estate Resource

2/4/2019

Being a better homeowner is a full-time job.  It takes good information to make good decisions not only when you buy and sell but all the years you own a home.

Think of times when you need advice on financing, taxes, insurance, maintenance, finding reasonable and reliable contractors and lots of other things.  Imagine how nice it would be to have a real estate information line you could call whenever you have a question.

Our objective is to move from a one-time sale to customers for life; a select group of friends and past customers who consider us their lifelong real estate professional.  We believe that if we help you and your friends with all your real estate needs, we can earn the privilege to be your real estate professional.

Throughout the year, we'll send reminders and suggestions by email and social media that enhance your homeowner experience.  When we find good articles to help you be a better homeowner, we'll pass them along.  You'll discover new ways to maintain your property, minimize expenses and manage debt and risk.

We want to be your "Go-To" person for everything to do with real estate. We're here for you and your friends...now and in the future.  Please let us know how we can help you

Home Inventory

1/21/2019

Generally speaking, when you need an inventory of your personal belongings, it is too late to make one.  Sure, you can reconstruct it but undoubtedly, you'll forget things and that can cost you money when filing your insurance claim.

Most homeowner's policies have a certain amount of coverage for personal items that can be 40-60% of the value of the home.

Homeowners who have a loss are usually asked by the insurance company for proof of purchase which can come in the form of a receipt or current inventory of their personal belongings.

The most organized people might find it difficult, if not impossible, to find receipts for the valuable things in their home.  Think about when you're rummaging around a drawer or closet looking for something else and you discover something that you had totally forgotten that you had.

An inventory is like insurance for your insurance policy to be certain that you list everything possible if you need to make a claim.  Systematically, make a list of the items by going through the rooms, along with the drawers and closets.  In a clothes closet, you can list the number of shirts, pants, dresses and pairs of shoes but higher cost items should be listed separately.

Photographs and videos can be adequate proof that the items belonged to the insured.  A series of pictures of the different rooms, closets, cabinets and drawers can be very helpful.  When video is used, consider narrating as it is shot and be sure to go slow enough and close enough to see the things clearly.

For more suggestions and an easy to use, interactive form, download a Home Inventory, complete it, and save a copy off premise, either in a safety deposit box or digitally in the cloud if you have server-based storage available like Dropbox.

Year End Tax Newsletter

12/31/2018

One of the first steps in a good outcome is knowing a little bit about what you're about to undertake.  By being aware of some of the areas regarding homes that may not come up every year in a tax return, you'll be able to point them out to your tax professional or seek more information from IRS.gov.

Look through this list of items for things that could affect your tax return.  Even if you have relied on the same tax professional for years to look out for your best interests, they need to be aware that there could be something different in this year's return.

If you bought a home for a principal residence last year, check your closing statement and identify any points or pre-paid interest that you or the seller paid based on the mortgage you received.  These can be deducted on your Schedule A as qualified home interest if you itemize your deductions.  See Home Mortgage Interest Deduction | IRS Publication 936(2018 version not released as of this newsletter).

Keep track of all money you spend on your home that might be considered a capital improvement.  Get in the habit of putting receipts for money spent on your home that is not the house payment or utility bills.  Repairs are not tax deductible but improvements, even small ones, can be added to the basis of your home which can lower the gain when the home is sold.  Years from now, your tax preparer can sift through them and determine whether they're capital improvements or maintenance. See Increases to Basis | IRS Publication 523 Selling Your Home (2018 version not released as of this newsletter).

By making additional principal contributions with your mortgage payment, you'll save interest, build equity and shorten the term of a fixed-rate mortgage. See Equity Accelerator.

If you sold a home last year, the payoff on your old mortgage included interest from the last payment you made to the date of the payoff. That interest is tax deductible. You may need a breakdown of the payoff to the mortgage company; you should be able to get that from your closing officer.

If you refinanced your home, unlike a home purchase, points paid to refinance are not deductible as interest in the year paid; they must spread ratably over the life of the mortgage. See Home Mortgage Interest Deduction | IRS Publication 936 (2018 version not released as of this newsletter).

For homeowners who have lost a spouse, there is an exception regarding the exclusion on the sale of a principal residence.  If the surviving spouse concludes a sale of the home within two years of the death of their spouse, they may exclude up to $500,000, instead of $250,000 for single taxpayers, of gain provided ownership and use tests are met prior to death.

The two-year period begins on the date of death and ends two years after that date.  See Sale of Main Home by Surviving Spouse | IRS Publication 523 Selling Your Home(2018 version not released as of this newsletter).

There could be significant tax consequences to a person selling a home that was received as a gift as compared to receiving the home through inheritance. With a gift, the basis of the donor becomes the basis of the donee. With inheritance, the heir usually gets a stepped-up basis and avoids potential unrecognized gain.  See Home Received as Inheritance | IRS Publication 523 Selling Your Home (2018 version not released as of this newsletter).
Click here to download a Homeowners Tax Guide.  This is meant for information purposes only and advice from a qualified tax professional should be sought to find out about your individual situation.

221 E Sherman Ave
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Sandpoint, Idaho 83864

Tomlinson Sotheby's International Realty

Josh Ivey (208) 946-7355
josh.ivey@sothebysrealty.com

Jennifer Ivey (208) 946-7816
jennifer.ivey@sothebysrealty.com

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