Category Archives: Uncategorized

Should You Purchase A Home Warranty Plan?

Buying, Financing, Insurance, Investing, Residential Real Estate, Tips, Uncategorized, , ,
Photo Credit: Judy van der Velden https://flic.kr/p/bUqzYi
Photo Credit: Judy van der Velden https://flic.kr/p/bUqzYi

Generally when you buy a home, the seller will pay for you to have a home warranty plan in force for one year. After that first year, you then have to choose whether you want to continue paying the premiums to extend that plan.   This can be a confusing decision, but one with which we can help!   Below you’ll find information regarding the standard coverages provided by a home warranty plan, along with additional info to help you decide whether you should or should not renew your existing plan.

 

How Much Does a Home Warranty Plan Cost? Plans typically range from $250 to $450, depending on coverage specifics.

 

What is Generally Covered Under a Home Warranty Plan?

  • Air Conditioning
  • Ceiling Fans
  • Dishwashers
  • Doorbells
  • Ductwork
  • Electrical Systems
  • Furnace/Heating
  • Garbage Disposal
  • Inside Plumbing Stoppages
  • Range and Oven
  • Water Heater

 

What is Generally NOT Covered?

  • Compliance Upgrades (aka – bringing water heater up to code)
  • Haul-Away Costs
  • Outdoor Items (sprinklers, fences, etc.)
  • Permit Fees
  • Refrigerators, Washers/Dryers, Garage Door Openers, Faucet Repairs (not all plans cover these)
  • Spa or Pools (unless specific coverage requested)

 

Should You Renew Your Plan?Consider the following:

  • The general age of your items that would be covered by the plan (older items are more likely to fail)
  • Your experience maintaining a home (can you tackle the repairs on your own?)
  • Your resources for helping you fix problems (consider your friends & family…assess the tools you have)
  • Your financial capability to replace items should they fail (are you capable of buying a new dishwasher?)

 

If You Buy a Plan, What Type of Coverage Should You Get?Consider your specific needs. Make sure you pay close attention to whether the home warranty company will pay for repairs to make certain types of systems or appliances compliant with new regulations. We’ve seen water heaters go out with a home warranty plan that covers its replacement. But the plan didn’t cover the $500 in work that needed to be done in order to update the compliance of the system.

 

We hope this helps with your decision about your Home Warranty Plan options.   Feel free to contact us if you have questions about whether you should renew your Home Warranty Plan…we’re here to help!

Three Ways to Help Your Child Stay Academically Checked In Even While They Check Out Over Summer

Just for Fun, Tips, Uncategorized, , ,
Photo Credit: https://flic.kr/p/iACTVC
Photo Credit: https://flic.kr/p/iACTVC

Around the mid-point of summer some children benefit from a little adult input to keep activities exciting.  When offering fun activity ideas, try to provide some that allow your children to exercise their brains as well as their bodies!  Here are a couple activity suggestions you could make your own!

 

1.  Family Board Game

Although many electronic games offer math and reading practice, only person-to-person interactive games can truly exercise educational AND social skills.  For example, when playing a board game, children are asked to problem solve, follow directions, and act/react appropriately to the game and its players.  Sometimes sibling rivalry can get the best of the players, but the lessons learned are often far more valuable than sitting in front of a screen.

 

2.  Play Outside!

Who doesn’t want to be outside in sunny southern California?  Sometimes kiddos need a little encouragement, but once they get out there, they’re bound to have a good time!  Encourage your kids to make up a game.  Creating rules of a game provides problem solving among the kids, value to each child’s perspective, and creativity.  To make it fair, let each child make one rule before going around again to create more rules.  This way each child will have an equal amount of input.  Listening skills are also a big part of creating a game with other people.  Go a step further and encourage your kids to make math or reading a part of the game.

 

3.  Follow a Recipe in the Kitchen

A great way to practice reading and math is to cook!  Involve your family in choosing recipes, reviewing the ingredients, making a shopping list, purchasing food at the store, and executing the recipe in your kitchen.  Not only will this activity provide you quality time with your kids, but leave them with a meaningful and educational experience.  Not to mention, a yummy snack, dinner or dessert!

 

The summer months provide time to enjoy activities with your family.  Encourage your kids to make the most of their time to “check out” by choosing meaningful activities that will help them stay “checked in”.

6 Reasons To Get A Living Trust

Financing, Insurance, Taxes, Tips, Uncategorized, , ,
Photo Credit - ID Theft PR
Photo Credit – ID Theft PR

Even though we know the mortality rate is 100%, we don’t want to deal with the topic of death while we’re alive. Because of this, many people disregard prudent financial moves that will make life much easier on their surviving beneficiaries.

 

Among the most neglected is Living Trusts. Here are 6 reasons you’ll want to consider a Living Trust for your family:

 

  1. Avoid Probate
  2. Protect Property for Beneficiaries
  3. Protect Privacy of Estate
  4. Avoid a Will Contest
  5. Reduce or Eliminate Estate Taxes
  6. Manage Property Upon Incapacitation

 

Take the time to protect your family. It’s more important than planning that summer vacation; and may not take any more time or money!

 

What are your thoughts on Living Trusts? Why or why haven’t you secured a Living Trust for your family? Let us know your thoughts!

6 Things You Can Do With Your Tax Refund

Building, Buying, Financing, Insurance, Investing, Just for Fun, Remodeling, Residential Real Estate, Tips, Uncategorized, , , , ,
Photo Credit: ATCincometax.com
Photo Credit: ATCincometax.com

How you handle “windfalls” of money can largely determine your financial success. Here are a few ways you can apply your tax refund:

 

1.   Build an Emergency Fund – One of the best ways to reduce stress in your life is to increase your margin. That includes giving you some cushion for the occurrence of “life events” like job loss, family health issues, etc. It’s nice to have savings for these things when they come up rather than having to rely on credit cards!

 

2.   Payoff Debt – Paying credit card interest will cripple your chances of financial success. Delay immediate gratification with your refund and apply it towards paying off credit card debt. Then once you have an emergency fund in place and have paid off credit card debt, fire away at those student loans & car loans! Imagine the feeling of not having a student loan payment or a car payment. What could you do with that money each month?

 

3.   Save For a Major Purchase – Use your tax refund toward a major purchase goal such as your next car, home upgrades, new appliances, or new furniture. Set a goal for how much you’ll need and save that amount so you can pay cash, avoiding the purchase/debt cycle that plagues so many Americans today.

 

4.   Save to Purchase a Home – Depending on the size of your refund, you may be able to make a dent in saving for your new home down payment. If done right, buying a home is one of the best ways to secure your future retirement, and gain a tax deduction in the meantime. Depending on your situation, you may qualify to purchase a home with only 3% down. Contact us if you have questions regarding this.

 

5.   Contribute to Retirement Accounts – You can apply refund money toward retirement accounts such as Traditional IRA’s, Roth IRA’s, 401k’s, etc.

 

6.   Give to Those Less Fortunate – Bless somebody else with your money. There are many ways you can be generous and change somebody else’s life. Be creative! Here’s one fun idea: click here.

 

The key is to think about how you can best apply your refund according to your goals before you impulsively spend it aimlessly.

 

What are you going to do with your refund? Please reply and let us know!

Email Etiquette 101

Just for Fun, Tips, Uncategorized, , , , , , ,

CN Feb Blog Pic2Email is a primary method of communication in today’s business. Sometimes we send an email and forget to proofread, spell check, or even look at who we are sending it to. Often times replying so quickly to emails, we lose focus and don’t realize until it’s too late that perhaps we shouldn’t have sent it at all.

 

Have you ever sent an email to someone you didn’t mean to send it to? Did it get you in trouble or were you embarrassed by it?  I’m sure it has happened at least once to everyone and if not, you are lucky! Let’s go over some suggestions to make sure that when emails are sent, proper etiquette is in mind. We just want to make sure that the recipient of the email interprets your email properly. It’s all about perception.

 

These are a few simple suggestions/basic rules to be mindful of:

  • Address people properly.  If you don’t know who they are, use their full name rather than a shortened variation (i.e. Robert vs Rob).
  • Be Professional – We all love emoticons. Let’s save those for our social media and text messages.  We want to stay away from abbreviations and colorful backgrounds as well.
  • Re-read your email before sending (think before you send)
  • Wait to fill in the “To” so you can avoid accidently sending an email prematurely
  • Watch your tone – avoid using ALL CAPS. The recipient will interpret that as being yelled at
  • Include a Subject Line that is clear (i.e. For Agents, always include the property address in the subject line) – Choose something that will let the recipient know what you are addressing

 

Remember every email you send is a reflection of you. Consider this a little cheat sheet for your email best practice needs.

 

Written by one of Iseley & Walsh’s guest Transaction Coordinators.

Don’t Let SENIORITIS Sneak up in Your Home!

Just for Fun, Residential Real Estate, Single Family, Tips, Uncategorized, , , , , , , ,

Don’t let SENIORITIS sneak up on you!

 

Photo Credit: Sabl3t3k https://flic.kr/p/8YCJjB
Photo Credit: Sabl3t3k https://flic.kr/p/8YCJjB

With spring popping up just around the corner, it is likely that more than high school seniors will get senioritis.  That’s right, I believe senioritis affects students of all ages.  All kids know summer is right around the corner, and with Open House and warmer weather on the horizon; the clues are hard to miss!

 

How can your family stay motivated to finish out the school year strong?

 

Make a list of the remaining projects and/or reports.  Students excel in predictable circumstances.  By making a list of upcoming major assignments, your child will be able to anticipate where hard work is needed. The greatest struggle with senioritis is once a student is “Checked Out” they will have a really hard time checking back in!

 

Write upcoming assignments on a desk or wall calendar so it is simple to see the amount of time a teacher is allowing the class to complete the project.  Procrastination is the enemy!  Springtime is often one of the busiest times of the year.  It is crucial that your child be realistic about the amount of time needed to complete schoolwork.

 

Set up a reward’s system!  What motivates your child?  Consider setting up a reward’s system where your child can work toward a major goal for summer.  For example, let’s say Palace Park is a family favorite.  You could provide your child with a certain number of coins each week he/she turns in assignments on time.  Then those coins can be used when your family goes to the park.  Make sure you set a date for the reward.  If the reward isn’t something approachable or tangible students may lose focus.

 

Don’t count on extra credit!  Teachers structure their assignments so a fair amount of points are provided through homework/classwork, projects, reports, and assessments.  Remind your child that each aspect of the class is important to prove his/her understanding of the material.  By neglecting one part, enough points could be lost to dramatically lower a grade.  Remember, unless a teacher has already provided the option for extra credit, it isn’t likely they will at the very end of the year.

 

Motivated Kids – Motivate Kids!  I used to snicker when my mother would say, “Show me your friends, I’ll show you your future”, but now I know it is true! We are influenced by the people around us.  Encourage your children to spend time with kids who have the same values as your family, who respect education and treat others nicely.  That way, when behaviors rub off, which they always do, your child will be positively influenced to finish the year strong!

 

 

What are some ways you prevent SENIORITIS from sneaking up on your family?

Starting The Year Off With A Bang

Just for Fun, Tips, Uncategorized, , , , , , ,
Picture credit: www.teachtraining.com.au
Picture credit: www.teachtraining.com.au

What’s your New Year’s Resolution? Are you off on the right foot for 2015? Have you written down your goals? What will you do differently this year compared to last?  What motivates you every day? These are just a few questions you may ask someone else and questions you should be asking yourself to set the tone for the fresh start of a new year.

 

Here are some suggestions and ideas to help you get started going into the New Year:

 

  1. Create a list of goals for the year.  Write your goal down and place it somewhere visible to remind yourself each day of what you are working towards.  It should be something you want to see yourself achieve along with a plan to help you reach the goal.
  2. Tidy Up.  Give the house a deep clean. Who said you had to wait for spring cleaning to arrive? Clean out the closet and bag up the unwanted items to sell or donate. Clear out the fridge and medicine cabinet for all expired items. I don’t know about you, but having a clean house makes everything feel so much better. Plus, it will make you feel organized!
  3. Establish a Health Plan. Everyone knows how packed the gym gets at the beginning of the year because it’s a majority of the population’s New Year’s resolution: get in shape, lose weight, and be healthy. It’s never too late. Establish your own goal weight, create a workout regimen, and change up your diet. It takes a lot of dedication of discipline, but if you set your mind to it, you can do it! Believe in yourself and stick to your goal.
  4. De-Clutter. Clean your desk /office.Discard any unnecessary items to clear up some space. What better way to be productive in the first month of the year by allowing your workspace to be fresh and clean.
  5. Perform Random Acts of Kindness. Have you ever paid it forward? An act of gratitude can go a long way. It can be as simple as paying for someone’s coffee in the Starbucks drive-thru. Try it! You could really brighten up someone’s day.

 

Hopefully some of these tips can give you the momentum to a successful and productive year. Do you have any productive tips to start the year so it runs smoothly? Feel free to comment and share those with us!

Location, Location, Location!

Buying, Investing, Real Estate Agent, Residential Real Estate, Selling, Single Family, Tips, Uncategorized, , , , , , , , , ,
http://www.landandfarm.com/property/17_acres_in_Orange_County_California-381303/
http://www.landandfarm.com/property/17_acres_in_Orange_County_California-381303/

I work with a lot of first time home buyers. They are probably some of my best clients. For the most part, they are willing to learn the tricks of the trade. They ask all the right questions and cover their boundaries. In a lot of ways, they are trusting and accept advice easily. However, whether you are a first time home buyer or purchasing your 3rd, 4th or 5th home one rule of real estate always stands firm.

 

Location, Location, Location!

 

Location is one of the first things I discuss with my first time home buyers. As an agent, it is always at the forefront of my mind when touring properties.

When determining a home, and more importantly its value, the location of the property will determine the long term value and stability of that property. This can be said for a large geographic region such as Orange County all the way down to the specific location in a particular neighborhood. Orange County has higher home values than San Antonio, Texas for a reason. The value is in the land, location and proximity to certain desires such as, the beach. The beach may be the obvious determining factor in driving home values in Orange County, but there are many other factors to consider that drive the cost of your home.

 

When buying a home in Orange County, consider these items:

-Proximity to freeways

-Ease of getting to the beach

-Lot size and location

-Proximity to shopping, restaurants and grocery stores

 

Cities such as Costa Mesa, Aliso Viejo and Irvine have all seen significant gains in home values over the last year. One of the common denominators with these cities is the relative ease to freeways or toll roads allowing for shorter commutes to beach cities and work. There is a high demand for spending less time in your car and more time in the sun. All of these cities offer great shopping and dining, as well. As you move further out to Foothill Ranch, Mission Viejo, Rancho Santa Margarita or San Juan Capistrano (all great cities in their own right) you will see slight drops in home values due to their geographic location. They are often associated with a little longer commute and fewer “Town Centers” where you can get all your shopping done. However, when picking a neighborhood regardless of city one thing stays consistent in determining price. Land! For example, think about a neighborhood in Aliso Viejo. The average home price for that neighborhood may be $600,000. If you have a corner lot in that neighborhood, your home may sell for $50,000-$75,000 more just because of the lot. If you can find a deal with a corner lot, snatch it up quickly. It will retain its value year after year. Many people don’t realize that the value of their home is in the land. If you currently own a home, take a look at your next tax statement. Say, your home is in the same neighborhood as the example above. You get your tax bill and your property was assessed for $600,000. Take a closer look at your bill. I would be willing to bet my own home that your tax bill reads “Land Value $425,000” and “Structure Value $175,000”.  The fact is, building a home doesn’t cost a great deal comparatively speaking. The value is in the land and location!

How To Stop Pay Increases From Hurting Your Finances

Financing, Investing, Single Family, Tips, Uncategorized, , , ,
Photo Credit: http://xeniaword.com/wp-content/uploads/2014/10/pay-raise-ahead-300x200.jpg
Photo Credit: http://xeniaword.com/wp-content/uploads/2014/10/pay-raise-ahead-300×200.jpg

Have you ever said to yourself “If I could just make more money, then my financial problems would go away”? Or, “I’d sure be happier if my annual income increased”.

 

If so, you’re not alone. In fact, these are thoughts people often continue repeating throughout their lifetime.

 

However, most of these people are able to reference a time in their lives when they received a pay raise or had a great income year in business, yet they’re still recapping those same wishful thoughts.

 

It’s common in our society to think pay raises will immediately improve our financial issues, when in reality pay raises usually only end up creating bigger money problems.

 

This is because without an action plan for how an increase in pay will be handled, it has been proven time and time again that the extra money will be spent in ways that don’t improve one’s finances.

 

In fact, raises are more likely to be spent on things that immediately make people feel good, often hurting their finances. Besides, don’t we deserve a treat for all our hard work?!

We’re not saying you shouldn’t enjoy life or reward yourself for this pay raise. By all means, celebrate! But it’s prudent to think about the consequences before spending.

Here are a couple examples of how poor planning after a pay raise can actually get you in more trouble than if you never got the raise:

 

1)    You get a $5,000 pay raise and immediately book a one-week trip to Hawaii for your family of four. The plane tickets and hotel cost you $4,000. Then food and entertainment costs you another $1,500 for a total trip cost of $5,500. You have overspent your raise by $500 right? Not so fast. In your excitement, you forgot the $5,000 pay raise is taxable income. So it really amounts to $3,500 after taxes, which means the $5,000 pay raise ended up putting you $2,000 in debt! ($3,500 net income after taxes, minus $5,500 you spent on the trip)

 

2)    You get a $10,000 pay raise. Suddenly your 5-year old car that was perfectly reliable last week, no longer works for you. With your new higher status, you must “look the part” and drive a nicer car. So you go out and buy a new $35,000 car. This move just cost you 3.5 years of that increased pay, right? Wrong! Remember, the $10,000 pay raise is more like $7,000 after taxes. So this new car purchase just ate up five years of your increased pay. Ouch!

 
So how do you avoid this from happening to you? It’s simple. Have a plan!

The next time you get a bump in pay, make it a rule that you’ll also boost your retirement contributions. Or decide in advance that you’ll use that pay increase to get rid of your debt.

The key is to have goals for your finances. Establish in advance what your next money moves will be for those windfalls of cash!

 

 

What did you do with your last pay raise? Looking back, what would you do differently?

Solar Panels: Are They the Right Investment for Your Home?

Buying, Financing, Investing, Real Estate Agent, Remodeling, Residential Real Estate, Selling, Single Family, Tips, Uncategorized, , , ,
Photo Credit: Michael Coghlan https://flic.kr/p/fGwupJ
Photo Credit: Michael Coghlan https://flic.kr/p/fGwupJ

You don’t have to look very far to find information on solar panels. There are all types of products and low financing options that guarantee to save you money. The average home owner may see solar panels as a way to avoid the ever increasing price of energy. I am not here to tell you solar panels are or are not a good investment.  As a Realtor, I am here to give you my professional, unbiased opinion on solar panels in the housing market and how they effect sellers.

How do solar panels work? Solar panels are typically sold on a long-term lease of 20 years with a monthly payment. In turn, the solar company will use the energy captured by the panels to eliminate your monthly energy bill from your existing energy company. If you sign up for a monthly lease of $150 and your typical energy bill is $200 a month, then you save $50/month or $600/year. Multiply that over the term of the lease and you just saved $12,000. Sounds great, right? Not so fast… Remember, you signed a 20 year lease. You are bound to the payments of the long-term contract and based on the example above that would be $36,000. What happens if you decide to move? What happens if technology advances and there are cheaper alternatives?

What happens if I want to sell my home and I have a long-term lease on the solar panels?  If you do want to sell your home, the potential buyer will have to take over the solar panel lease in order to purchase it. OR the new owners could purchase the home without taking over the lease, leaving you responsible for the payments even after you moved out.  At first glance, the monthly savings look great and the innovative technology is a must, but make sure you are familiar with the long term ramifications.

What could the future hold? Pretend it is the year 2024.  You own a home and purchased solar panels 10 years ago. You are halfway through your lease. In that time, technology has advanced and we can capture the same amount of energy on one panel as you can with the 20 rusty panels currently on your roof. In addition, the cost in the solar panel market is a monthly payment of $40 a month. Now you want to sell your home. When you list your home, interested buyers are notified that the home is attached to a 20 year solar lease with 10 more years remaining. Why would the buyer take over a lease at $150 a month when they can get it at $40 a month? Why have 20 solar panels on their home when they could have one? Why spend more for old technology? These are all valid questions that will cause problems in your future sell.

Let’s say you don’t plan on selling in the next 20 years. My initial response would be: 20 years is a long time. Your plan today may not be your plan tomorrow. My second response would be: keep in mind you are leasing solar panels. Once your 20 years is up, you still won’t own them. But you have the option of forking up about $5,000 to buy them at their market value.  Another extra expense…and to add insult to injury, any repairs that need to be done to the solar panels during your lease will be at your own expense. The hidden costs are everywhere.

Know the facts before you decide to lease or buy. Ask yourself one question. Is saving $50 a month worth the long term issues? You may save on the front end, but if you ever decide to move, it will likely cost you. In my professional opinion, if you want to go the solar panel route, purchase them or avoid them all together. Otherwise, your solar panel leasing agreement could be a disaster when it comes time to sell.

Feel free to contact me directly for some personal experiences with solar panels in the housing market.

 

Photo Credit: Michael Coghlan, https://www.flickr.com/photos/mikecogh/9647603520/