The real estate market is usually deemed “hot” when inventory is low and competition is high. Hot markets often mean quick turnover, crowded open houses, bidding wars, and sales that close above asking (and sometimes all in cash). To the surprise of many, we’ve been in a hot market nationwide throughout the pandemic, and there are few signs it’s cooling down.
If you’re planning to buy (or sell!) soon, you’ll want to position yourself well by doing some extra prep work and research than you would in a neutral market. That way, you’ll be able to make smart decisions fast and strike when you see the right opportunity. Follow these pointers to come out ahead.
For buyers and sellers
Get a good agent – An experienced agent who knows your local market will be worth their weight in gold. If you’re a buyer, they should know about listings before they come on the market and know how to make your offer stand out. Ask for referrals from your network and social circles.
Be patient – Especially for buyers, patience is a virtue in a hot market, when you can make many offers before your winning one is accepted. Try not to get discouraged – rather, stay focused on your goal! And if you’re a seller, patience will help you find the right buyer.
Know what’s going on in your local market – Your agent will know what market trends and events mean for your goals and priorities, but it’s smart to follow the market movements yourself too.
Don’t get emotional – Letting emotions influence the buying or selling process can lead to bad or regretful decisions. Practice mindfulness or other techniques to stay grounded in those stressful moments of the journey. It’s good to have some thresholds and decisions made ahead of time so you have some “guardrails” at the ready.
Have your paperwork ready – Whatever papers and documents you’ll need for the process, get as many of them ready as possible beforehand. That way, you won’t lose precious time when the clock is ticking.
Be ready to move quickly – Speed is the name of the game in hot markets. Things can change overnight, and the perfect opportunity might present itself out of nowhere. When the conditions meet your pre-determined criteria, move quickly.
Keep your insurance until you close – Don’t make changes to your insurance or cancel it prematurely – no matter how sure a deal seems.
If you’re a buyer
Be very clear on your budget. The absolute first step is to know how much home you can afford. Knowing your range is good too but be sure you know where your ceiling is – and stick to it once you start putting in offers.
Know your must-haves and where you can be flexible. Have a clear understanding ahead of time what attributes your new home must have and what things can be changed, renovated, or aren’t all that important in the grand scheme of things.
Window shop – Get a handle on the local market by touring homes that would be in your price range and meet your requirements. This way, you’ll gain a sixth sense and sharp instincts for when you start making offers.
Get financing and a pre-approval letter. Make sure your financing is lined up and you have a pre-approval letter. You’ll want to go with a lender that delivers on their promises and has a track record of closing loans quickly.
Leverage your agent. Your agent has ways to make you stand out from the rest of the bidders. For instance, they can find out what the seller wants by calling the listing agent or gleaning information from the multiple listings service (MLS), which has more information than public listings.
Read our guide. If you haven’t already, check out our top tips for your home-buying journey (good for any market, including hot markets!)
If you’re a seller
Prep your property. Sellers in a hot market will have more luck selling their home “as is,” but it can pay off to make any needed fixes before listing. This will help you attract more interest and multiple offers (which usually means a better sale price in the end).
Consider staging. Staging is probably one of the best ways to position your property to sell quickly and at a good price. It puts your home in its best possible light and gives potential buyers a great first impression and good feeling in the space. It will also differentiate your property from others.
Get the “pre-work” done. Go over what you might need with your agent ahead of time. They might suggest getting an inspection done before listing, lining up a title company, and other due diligence items.
Manage your expectations. A hot market doesn’t guarantee that you’ll get multiple offers over asking. Each sale is the product of lots of different variables, which is why it’s worth taking extra steps to give your property every advantage.
With the right tools, knowledge, and strategies, you can do well in a hot market. Above all, remember to get a good agent, have patience and get the prep work done before hitting “GO.” Good luck!
This article is furnished by California Casualty, providing auto and home insurance to educators, law enforcement officers, firefighters, and nurses. Get a quote at 1.866.704.8614 or www.calcas.com.
The new blooms and foliage that herald the beginning of spring also bring one of its worst offenders: fleas and ticks. A headache for pet owners every year, keeping these pests in check requires a three-pronged approach focusing on your pet(s), your house, and the natural space around your home. Use the strategies below to prevent misery for your pets and an infestation inside your home.
Protecting your pet takes a little research, communication with your vet, and a disciplined care and grooming routine.
Talk to your vet and go with the flea and tick control product they think is best for your pet. There are lots of options, including topical treatments, pills, shampoos, and collars. If you live someplace with lots of sunny and/or humid days, also ask about sun + bug repellant products.
For dog or cat? Double-check with your vet – or if buying off the shelf, read the label – to make sure the product is meant for the pet you’re buying it for. Some products are made only for canines or felines and others can be used on either (but require different dosages).
Do a daily flea/tick check, especially during the height of the season or if your pet’s been in or around grasses, shrubs, and bushes.
Groom them regularly and use a flea comb. Check for flea feces and dried blood, which tells you there’s a problem.
If you have more than one dog, treat them all at the same time so they’re on the same schedule – and your life’s made a little easier!
Protect Your Home
To avoid the nightmare scenario of flea shampooing your carpets or fumigating your home, prevent the bugs from getting comfy in your house (or getting in in the first place).
Regularly wash all animal beds and soft toys on hot water and heat dry.
Vacuum at least weekly to get rid of or prevent eggs, larvae, and adults. Be sure to hit sofas and carpets as well as crevices at the walls and baseboards. If you’re seeing an uptick (pun intended!) in pest sightings, vacuum daily instead of weekly – then empty the vacuum outside.
Keep pets indoors more often, especially when ticks and fleas are really bad. Going in and out multiple times a day increases the chances they’ll bring bugs home. Walking on a leash and away from grasses is fine to get them exercise without exposing them too much.
Trim trees and high shrubs that might provide a pathway for rodents and other critters to crawl into your attic. Wherever there are critters, there are fleas and ticks. Spring trimming keeps this to a minimum.
Seal off any openings to the garage, basement, attic, sheds, or under decks where pests might nest and attract bugs.
Protect Your Yard
A few smart actions in your front and back yards can significantly limit the bugs that get on your pets or make it into your home.
Keep your lawn mowed and grass/weeds as short as possible.
Rake up and compost leaves near your home so as to reduce leaf litter that bugs breed in. If you have acreage, try to leave the litter beyond a safe perimeter so that migrating or local birds have access to food (i.e. – the bugs that make home in the leaf litter).
Maintain a perimeter of gravel or woodchips 3 feet from the house.
Stack firewood in a dry area so that rodents – and hitchhiking fleas and ticks – are kept in check.
Remove any old furniture, debris, or other trash that provides nesting spots for bugs.
Try tick control tubes. These hold permethrin-treated cotton, and the idea is that mice steal the cotton to make nests – which then kill the fleas.
Consider a spray as last resort for your yard. However, do your research as many sprays will kill pollinators and all add chemicals to your yard. Go for something natural if possible and use it in conjunction with prevention measures.
The three-pronged approach above should keep your pets pest-free and your home healthy and safe. A little extra attention to prevention measures goes a long way toward a relaxing, beautiful springtime.
This article is furnished by California Casualty, providing auto and home insurance to educators, law enforcement officers, firefighters, and nurses. Get a quote at 1.866.704.8614 or www.calcas.com.
Millions of Americans choose to rent over buying homes and apartments each year, and there are a ton of advantages. For instance, if a window starts leaking or the stove dies, you don’t have to pay for repairs or replacements. You have the flexibility to move when you want (subject to your lease), “try out” new cities, and avoid the big costs that go along with mortgage loans and homeownership.
To be a good tenant and start your rental out on the right foot, here are some important renter do’s and don’ts.
Do’s
Understand your lease – Make sure you and your landlord review the lease together and that you ask any questions you have. For example, does the lease allow subletters? What’s the duration and does it change after the first year?
Write an inventory – Make sure to document and log all existing damage or broken/non-functional items before you officially move in. Take photos and indicate any damage on a floor layout/ diagram. You don’t want to be on the hook for these repairs when you move out.
Understand your responsibilities – As the tenant, you may be required to do things like shovel the walk, keep the lawn mowed or hire a pool service.
Document problems – If there are ongoing issues or needed repairs, make sure you write down what happened, take pictures, etc. Alert your landlord to issues right away so they can take action. Keep a paper trail and keep it all in one place.
Keep it clean – Neglecting to bring the garbage bins in from the sidewalk or to keep the yard clean or tidy can quickly create an enticing environment for pests and rodents.
Check-in with your landlord – For minor repairs or maintenance, such as unclogging drains or replacing caulk or window screens, it’s best to check in with your landlord about how they want to address it (even if you’d like to just take care of it yourself). if you are unsure of anything or have questions regarding the property, like painting rooms or changing landscaping, reach out to your landlord.
Give them a heads up – On things like leaks, structural or foundation issues, and pest problems, alert your landlord as soon as possible so they can act on a problem that could get worse quickly or cause costly damage.
Protect your deposit – Besides treating your place well while you live there, when you move out, do a quality deep clean and don’t leave furniture or anything else behind that they’ll need to deal with.
Be a good communicator (and neighbor) – Good communications can prevent or de-escalate miscommunications and disagreements with your landlord as well as neighbors.
Know your rights – It’s important to know your rights as a tenant. They vary by state and city, so go here to learn more.
Get renters insurance – Renters insurance protects your belongings from theft and damage (nope, your landlord’s insurance won’t cover your things). It’s surprisingly affordable – get a quote today.
Don’ts
Hide a pet – If your lease specifies no pets, stick to the agreement (hiding a pet won’t work over the long term). Also make sure to adhere to animal weight limits, which are often established to allow only cats and small dogs in an apartment complex. Consequences for breaking these rules can include a hefty fine or even lease dismissal.
Undertake big renovations – We all want to make our homes more home-y, but complex projects such as adding ceiling fans or replacing cabinetry should only be undertaken by the property owner.
Fall behind on the bills – Depending on your lease agreement, you may end up being responsible for bills such as utilities, water, garbage, recycling, gardener, pest control or pool maintenance. Keeping those accounts current will ensure smooth maintenance as well as strengthen your credit.
Create a mildew problem – One of landlords’ most frequent complaints is about tenants not keeping moisture levels in check. To prevent mold and mildew formation, make sure to use vents and fans in bathrooms during (and after) every shower.
Cause damage – Treating your rental with care and respect will mean lessening the chances of inflicting damage such as stained carpets, scratches in hardwood, broken windows or fixtures, large holes in the walls, and water damage from plants. It will also ensure you get more (if not all) of your security deposit back. If accidental damage does occur (we’re only human, after all), make your landlord aware of it ASAP.
Landlords choose their tenants very carefully – especially those with nice properties. By taking care of your rental home and maintaining a good relationship with your landlord, you will set yourself apart as a responsible tenant. This will positively affect your credit score, help you get your whole security deposit back, and ensure you have a good reference for that next great rental.
This article is furnished by California Casualty, providing auto and home insurance to educators, law enforcement officers, firefighters, and nurses. Get a quote at 1.866.704.8614 or www.calcas.com.
You’ve got a few tools at your disposal for protecting your possessions. First, there’s homeowner’s insurance in the case of theft or loss, but you can also take steps to prevent theft in the first place, by getting a quality home security system.
There are lots of great options out there, and as technology continues to progress, the choices keep expanding. In fact, it can all be a bit overwhelming, so let’s dive into the top considerations you’ll want to look at when choosing a security system – including your first decision point: whether to go with a DIY or a professionally installed system.
DIY vs. Professionally Installed
DIY systems come as packaged kits that you need to install yourself. For most, you’ll be doing the security monitoring, usually via a smartphone app, but some require you to pay for professional monitoring. Professionally installed systems, on the other hand, are installed by a technician, and monitoring is done by the company (trained dispatchers verify triggered alarms and dispatch authorities when needed).
DIY Systems:
Pros
Flexibility in tailoring a system to your needs
Less expensive and usually no monthly fees
Cons
Requires you to install the system correctly
You’re responsible for monitoring (i.e. not missing a smartphone alert!)
Pro-Installed Systems:
Pros
System is expertly installed by a trained technician
24/7 monitoring by professionals who can dispatch at a moment’s notice
Cons
More expensive, with installation and monthly service fees (as well as potential false alarm fees, add-on components, and other fees)
Usually require multi-year contracts
Popular Systems
Here are some of the most well-known and top-rated systems on the market. In your research, you may find others as well.
As you further hone your choices – be they DIY or pro – here are some other things to take into account.
1. Wireless vs. wired. Systems can be wired or wireless (or sometimes have elements of both). The basic difference is that your control panel and network of sensors are on either a cellular or a landline connection. What you choose will depend on what you need from the system. That said, always make sure to choose a system that includes two-factor authentication for extra security.
2. Pick a system that fits your lifestyle. For instance, is it mainly for when you’re out of town, or also while you’re at home? Do you want it to do smart-home integration, like turning lights off/on, controlling the thermostat, or have sensors for fire, water leak, and glass breaks?
3. Tailor it to your home. For instance, homes with large yards or outdoor areas typically need cameras; condos or apartments can get away with simpler systems.
4. Do your research. No matter if you’re installing your own system or going with a company, learn about all the components available – oftentimes, your system will be a tailored combo of what makes the most sense for keeping your home safe and secure. Systems can include any of the following: control panels, base stations, keypad, locks, contact sensors, motion sensors (interior and exterior), entry sensors, key fobs, glass break sensors, security cameras, door and window sensors, and a variety of different alarms and/or sirens. Most also have signs for your yard or windows to advertise that yours is a secure home.
5. Freedom vs. convenience. If going the DIY route, weigh whether you want the added security of having professional monitoring or if you want to do this yourself. If you’d rather not have that constant responsibility (or stress), that will limit your choices for DIY systems.
6. Conduct due diligence. If you’re leaning towards pro-installed, make sure you get three custom quotes and are clear about how the contracts differ and their terms. Also, take advantage of an in-home consultation if the companies offer it.
7. Check with your local police department. Some municipalities require that anyone running their own security system with professional monitoring obtain a permit. This ensures that their law enforcement and authorities are aware of alarm systems in their jurisdiction.
Choosing the right home security system is a highly personal choice that depends on your lifestyle, budget, home features, and the value of your belongings. Do your research and take your time – but also give yourself a high-five for taking action! Security systems can not only save you money from potential theft, but also prevent the trauma of dealing with a break-in (no one needs that stress right now!). Good luck and also remember to make sure your home insurance is up to date.
This article is furnished by California Casualty, providing auto and home insurance to educators, law enforcement officers, firefighters, and nurses. Get a quote at 1.866.704.8614 or www.calcas.com.
Purchasing a home is an extremely exciting adventure in the life journey – in fact, more than anything it might represent achieving the American dream. For all the excitement though, it can be confusing, challenging, and stressful. And even for those who’ve done it before, today’s real estate and credit markets are significantly different from even five years ago.
So, whether you’re embarking on this journey as a first-time home buyer, taking advantage of record-low interest rates, or just planning on downsizing or upgrading, follow our guide to help get you in great home-buying shape.
Phase 1: Prepping and Planning
1. Decide how much you can afford – If you’re like many, your home is the largest purchase you’ll ever make – so the biggest question is around how much you can comfortably afford. This is determined according to your income, debt, credit score, location, and more. Then there’s the down payment, for which you’ll probably need to have a savings plan to reach (typical amount is 10-20% of the home value). You can use a home affordability calculator or, better yet, talk to a financial planner.
2. Put your financial ducks in a row – You’ll want to be in good financial shape before house shopping. That means paying off all or most of your debt and making sure you have an emergency fund. The latter will be helpful for those unexpected expenses you’ll have as a new homeowner (that you didn’t have to worry about as a renter!). You’ll also want to save for closing costs (typically 2-5% of loan amount), moving expenses, repairs, and other various expenses.
3. Strengthen your credit – Your credit score affects what loans you will qualify for, so you want it as strong as possible. Get free credit reports from Experian, Equifax, and TransUnion and make sure there aren’t any errors. Then build your score by making sure to pay all bills on time and keeping card balances low. If you don’t have much credit history, quickly start building your score by putting a utility bill or two in your name and staying current on your payments.
4. Educate yourself – Get familiar with all the steps of the process, including all the costs along the way and the people who will be involved. Your main contact (and person working on your behalf) will be your real estate agent, but you will/may also be working with a seller’s agent, broker, loan officer, underwriter, appraiser, listing agent, loan servicer, home inspector, and others.
5. Work with recommended professionals – The most important of these is your real estate agent, who will be representing you and your interests through the process. Ask for recommendations in your circle. Pro tip: You may get referrals to “real estate agents,” “realtors,” and “real estate brokers.” What’s the difference? The first is a licensed professional representing buyers or sellers, the second is a real estate agent who’s a member of the realtors’ association, and the last generally has more training and may work independently or have their own firm.
6. Explore your mortgage options – You can go with all kinds of lenders – all of which have a different down payment and eligibility requirements. Make sure you look at the range of loans, including conventional mortgages as well as loans offered by the FHA, USDA, and VA. As a first-time homebuyer, be sure to research federal or local assistance programs for your buying cohort – they typically offer advantages and savings not offered to other home buyers! After your research, carefully compare the different loan fees and rates.
7. Get pre-approved – After you’ve chosen a preferred lender, apply for pre-approval. Having a pre-approval letter (which specifies the lender’s offer amount) shows real estate agents and home sellers that you’re serious about buying, which can put you at the front of the bidder line.
Phase 2: House Shopping
8. Research the area – Smart buyers don’t make buying decisions based on the property and house alone. Make sure you thoroughly research the neighborhood (visiting it at different times and days) and think about proximity to schools and workplaces. Research crime rates and consider traffic congestion and freeway access. Also, know the value of homes in the area – a price per square foot average is a great yardstick for making sure you don’t end up paying over market value.
9. Go to open houses – The pandemic has made online home-viewing easier than ever. Take advantage of 3D home tours, which will let you filter out homes that don’t fit your needs. From there, you can attend in-person open houses only at those homes you’re most interested in.
10. Get an inspection – Paying for a home inspection is money well spent and can save you very expensive headaches down the road. A typical inspection covers things like structural elements, grounds, attic, heating and cooling systems, roof, exterior surfaces, basement, insulation, electrical system, and all other parts of the home.
11. Make an offer – Once you’ve found the home you want and can afford, you’ll make an offer to the seller. If you’re not sure how much that should be, lean on your agent for their expertise! They can also help guide you through any negotiating (on say, repairs) or other terms or conditions. Finally, a personalized offer letter never hurts!
12. Know the market – You may be buying in a seller’s market, a buyer’s market, or somewhere in between. Knowing the larger marketplace will help ensure you don’t over-or underbid (again, your agent should be your guide here!). If the market is especially hot you’ll be competing against lots of other offers – know your top price going in so that you don’t get saddled with debt you can’t afford.
13. Get adequate home insurance – Your lender will require homeowners insurance, so start shopping for coverage early (at least 30 days before closing). Get quotes and make sure you understand what’s covered, what’s not, what the terms are, and any additional coverage your home may need. Have questions? Give us a call – we offer special benefits to educators, firefighters, nurses, and peace officers!
Congratulations on embarking on the exciting home-buying journey! With a little extra effort, a plan, and a solid understanding of the process, you’ll be settled into the home of your dreams in no time.
This article is furnished by California Casualty, providing auto and home insurance to educators, law enforcement officers, firefighters, and nurses. Get a quote at 1.866.704.8614 or www.calcas.com.
Umbrella Insurance, sometimes called “personal umbrella insurance”, is a type of personal liability insurance that provides an extra layer of affordable liability protection in the event of an accident.
Adding Umbrella Insurance protects you and your family by covering additional damage costs that extend beyond the limits of your homeowner’s, auto, or watercraft policies. This additional coverage ensures your personal assets are safe.
Considering adding an Umbrella Insurance policy? Here are some answers to frequently asked questions.
What does it cover?
The primary purpose of this coverage is to protect you if you’re found liable for causing bodily injury to others or damage to their property. It also protects against incidents involving slander, libel, false arrest, and invasion of privacy, as well as any legal defense costs – even if you’re not found liable. It protects not just you as a policyholder, but also other family members within your household.
What does it not cover?
Umbrella insurance does not cover damage to your own property, nor does it cover any deliberate damage to others’ property caused by anyone on the policy.
How does it work?
Think of it as a “supplement” to your core coverage. Let’s say you have liability limits of $250,000 through your auto and homeowners insurance and you’re sued for $1,000,000. The umbrella insurance would kick in after legal fees and costs exceed $250,000 – which can happen staggeringly quickly – protecting you against having to pay the remaining amount out of pocket.
How do you know if you need it?
You might need an umbrella policy if you: own a car, own a home, want to protect your assets against a lawsuit or judgment, or want to protect your retirement savings or future earnings. Accidents happen every day – umbrella insurance is an affordable way to protect the assets that you’ve worked hard to acquire.
How much does it cost?
For the amount of protection it offers, liability insurance is surprisingly affordable. The decision on whether or not to get it calls for weighing the risk of what you stand to lose – current assets as well as the potential loss of future income or earnings. It’s especially affordable if you already have a policy with the same insurance company. Are you already a California Casualty member? Call us for an Umbrella Insurance quote today!
Does it cover car rentals?
Your automobile policy is the primary coverage for any damage or injuries you might cause while driving a rental car. However, if the cost of damage or any lawsuit fees is greater than your auto insurance liability limits, that’s when umbrella insurance protection would provide you further protection.
Does it cover rental property?
If you’re a renter and have renters insurance, an umbrella policy can extend your liability protection beyond the limits of your primary policy. If you’re a landlord, this coverage can help protect you from lawsuits by tenants, their guests, or other third parties.
If you are still on the fence about Umbrella Insurance, here’s what you can do. Add the value of your home, significant assets, and any investment portfolios or retirement savings accounts, and determine how much liability coverage you have from your home and auto policies. Do your current policies cover your assets?
If the answer is no, it may be time to consider an Umbrella Insurance Policy.
This article is furnished by California Casualty, providing auto and home insurance to educators, law enforcement officers, firefighters, and nurses. Get a quote at 1.866.704.8614 or www.calcas.com.
