New Year's resolutions
every homeowner should make
Whether you're a new homeowner or you've
been in your house for years, why not resolve to make this year the year you
whip your house and household finances in top shape? It could prevent you from
encountering costly problems down the road -- and assist you in getting top
dollar when it comes time to sell.
The first thing you should do is develop
and then implement a maintenance plan.
"A homeowner who makes the necessary
yearly investment will end up saving in the long run because routine maintenance
can help avoid larger, more expensive repairs that can add up to the tens of
thousands of dollars or more," said Mike Kuhn, director of technical services
for Housemaster, a New Jersey-based home inspection company. "It is just like
giving your home its annual physical."
The Insurance Information Institute, the
American Society of Home Inspectors, Homestore.com, HometimeProject.com, the
National Association of Home Builders, the U.S. Consumer Product Safety
Commission, Freddie Mac and the U.S. Homebuyer Education Center offer a host of
maintenance tips - tips that you should resolve to adopt wholeheartedly in the
year ahead.
- Water. Check visible water pipes and sewer lines for cracks, rusting and leaking; turn on faucets to test water pressure and volume; and look for clogged or sluggish drains or dripping faucets. If pipes are galvanized or steel and the house is old, be sure to check carefully along the entire length of the pipe. Wrap your pipes with heating tape every winter and insulate unfinished rooms such as garages if they contain exposed pipes. Also check for signs of leaking or rusting on your water heater.
- Electricity. Check your electrical system's load center and see if there are fuses or circuit breakers; also check its age and look for signs of wear or exposed wires.
- Heat. Check your heating system for gas leaks and cracks in the heat exchanger. Maintain your furnace, fireplace, boiler, water heater, space heater and wood-burning stove and have your heating system serviced every year. Clean and vacuum dust from vents, baseboard heaters and cold-air returns.
- Gas. Check smoke and fire alarms and carbon monoxide detectors and change your heating and air conditioning filters. Have your appliances inspected for gas leaks and adequate ventilation.
- Insulation. Your attic should be five to 10 degrees warmer than outside air. Check weather stripping and caulking around windows and doors and replace or repair it as needed. Also repair broken glass and loose or missing putty on windows.
- Basement/Attic. Well-insulated basements and crawl spacers will protect your pipes from freezing. Check the basement for signs of water leaking, dampness, flooding, dry rot and termites. Check the attic for signs of leaks and any rodent or insect infestation.
- Exterior. Remove all debris from gutters. Maintain your steps and handrails. Inspect your roof for damaged or loose shingles; gaps in the flashing where the roofing and siding meet vents and flues; and damaged mortar around the chimney (especially at the joints, caps and washes). Inspect your home's exterior walls, looking for possible weather-related damage like cracks and loose or crumbling mortar.
- You should also resolve to get your finances in order. Eric Tyson and Ray Brown in their book Home Buying for Dummies (Hungry Minds, Inc.) say it's especially important to build up your reserves and get your financial house in order after you buy a home.
You should begin by resisting the
temptation to splurge. Refrain from using a credit card and keep your other
financial goals, like retirement, in mind. You should have at least three
months' salary in your emergency fund. Try to stay away from unnecessary
spending until you reach this goal.
Think about E-payments, which ensure
that you never pay late, and late payments can tack on an extra five percent
late payment fee.
You'll also want to think about taxes
and refinancing options.
If home prices have dropped in your
neighborhood since you've moved in, you may want to consider appealing your
assessment since the tax is based on your home's value in most communities. Also
keep your financial documents organized so you'll be more prepared at tax
time.
If interest rates go down, think about
taking out a new loan at the lower rate to replace your original loan. Be sure
to consider how much refinancing the loan will cost you. Refinancing won't
benefit you unless you plan on staying put for at least five years.
Also, plan and budget for any major
repair, remodeling or decorating projects you'd like to pursue in the new year.
Take your time, shop around for the best prices, and if you're hiring a
contractor, get plenty of references.
If you've been putting off landscaping
your house, make plans to do it now. The right landscape can increase the value
of your home by 15 percent, allowing you to recoup 100 to 200 percent of your
investment, according to the Association of Landscape Contractors of
America.
And if you do any home improvement
projects, keep your receipts. You may be eligible to minimize the capital gain
that may come your way when you eventually sell. The improvement must be one
that permanently increases the value and useful life of the house (like a new
roof).
By keeping your house and finances in
order this year, you're sure to thank yourself at this time next
year. Copyright © by Realty Times
