"New Homeowner's Financial Checklist"

 

So you found your dream home, put 20% down and paid thousands of dollars in closing costs. Congratulations! You just bought a home! Today is New Homeowner's Day (May 1) and we're celebrating your new purchase. Before you break out the champagne - with this accomplishment comes a big financial responsibility. Don't worry! SAVED BY THE BELL has advice to help get you prepared.

     

 

 

THE HONEYMOON IS OVER:

It was love at first sight - the spacious backyard, the modern kitchen, the prime location. Are you still in love with your home now that you're living in it? Believe it or not, the honeymoon is over for some homebuyers. A nationwide survey conducted by Redfin last year found that 25% of American homeowners said they would not buy their home again if they had a chance to do it all over. Buyer's remorse was experienced most by women; those living in Midwest, homebuyers in the 18 to 64 age group and individuals with a household income of less than $100,000.  What were some of the biggest regrets? A 2014 survey by Zillow found that first-time home buyers were most unhappy with the size and layout of the house, the cost, the neighborhood, the yard and parking.

 

MATERIAL GIRL:

While there are some things you can't change about your home, you may be tempted to start renovating the things you can. Pause and take a breath! The first thing to do is prioritize. Make a list of things you want and the things you need. Take care of the needs first. In a perfect world, you've already factored in the cost of purchasing new items for your house and put aside money for it. If not, we don't want you dipping into your emergency fund for something that's not urgent! A new survey from Angie's List found that a majority of customers plan to spend between $1,000 to $5,000 more this year on home improvements. Kitchen, bathroom, bedroom and lighting projects are expected to be popular. A warning about over improving your home! If you go overboard, you run the danger of pricing yourself out of the neighborhood.

 

LOCK IT UP:

Surely that nice old lady that sold you the home wouldn't break into it. Or would she? Could she have given any extra keys to family or friends? Instead of overthinking it, get the locks changed immediately! Not only is it money well spent, but it will also give you peace of mind. Costhelper.com says a locksmith will charge a minimum fee of $40-$100 plus anywhere from $5-$25 per lock cylinder (one per keyhole) for coming to your home and re-keying the locks. (The cost per lock will depend on the type of lock and the prevailing rates in your area.)

 

RING THE ALARM:

Do you want to protect yourself, your property and save money at the same time? One way to do that is by getting a home security system. Many insurance companies will offer discounts if you have one installed.  Allstate says you can save up to 15% when your home has additional protection against fire and theft, like a home security system. If your home has smoke detectors, fire alarms, burglar alarms or other qualifying devices, Nationwide will also give you a 15% discount. That's certainly worth it considering the FBI's most recent crime data. Burglary accounted for 23.8% of the estimated number of property crimes committed in 2010. Victims of burglary offenses suffered an estimated $4.6 billion in lost property. Overall, in 2010 the average dollar loss per burglary offense was $2,119.

 

I'M READY:

When you move into your home, you'll want to get the water, gas and electricity turned on as soon as possible. Find out which utility providers cater to your area. Often times there are many competitors. Compare the services and prices and choose the ones that work best for you. Make sure you start your contract on the day before your move. Your next step is to set up internet, television and telephone service. Don't forget to cancel the utilities and other services at your old home! You don't want to be paying bills for the tenants living in your previous location.

 

SHOW ME THE MONEY:

Now that you've moved into your home, it's important you create a new budget! Your monthly expenses may not be the same and you must take that into account. If you upgraded from an apartment to a house, your electricity/heating/cooling bill will likely be higher. Ask the previous owners how much they typically pay for utilities. While your spending may differ from theirs, it may give you a general idea of how much you will have to pay. Make sure your new budget accounts for your utility bills - as well as your new mortgage payment, taxes, etc. Don't forget the weekly/monthly amount you will be putting into your emergency fund either. The rule is to have at least 8 months of expenses saved up for emergencies. Have your expenses increased/decreased with your new home? Make sure you adjust the amount you allocate to your emergency fund accordingly.

 

HOT IN "HERRE":

If you don't have a programmable thermostat in your home, you should have one installed. The Department of Energy says you can save as much as 10% a year on heating and cooling by simply turning your thermostat back 7°-10°F for 8 hours a day from its normal setting. You can do this automatically by setting your thermostat and scheduling the times you turn on the heating or air conditioning. As a result, the equipment doesn't operate as much when you're asleep or not at home - resulting in savings.

 

UPGRADE U:

Every improvement or repair you make to your home will increase its resale value. You can also receive tax credits for installing new doors, solar panels or by purchasing ENERGY STAR appliances. For more information check out the ENERGY STAR website:

http://energystar.supportportal.com/ics/support/KBList.asp?folderID=968

But before making a purchase, you should weigh the cost and benefits of buying new appliances. Does it make sense to replace a two-year-old washing machine because it doesn't match your decor? What about replacing a 20-year-old refrigerator? Replacing the older appliance makes better sense because since 1995, more efficient models have been created. ENERGY STAR and Lawrence Berkley National Laboratory say the annual energy bill for a typical single home is approximately $2,200. Buying ENERGY STAR rated appliances will help you save energy and lower your utility bills. For example: ENERGY STAR qualified clothes washers use 40 to 50% less energy and about 55% less water than standard washers. As a result, you can expect to save up to $50 per year on utility and water bills, with additional savings from using less detergent.

 

WANNA GET TO KNOW YOU:

Get to know the house like the back of your hand. Where is the water shutoff valve? How do you operate the boiler? Where is the circuit breaker? Knowing where things are and how they operate can help save time and money when it comes to problems with your house.

 

COMPUTER LOVE:

Chances are, something is going to break down in your house and you are going to have to call someone to fix it. Do you find it hard to remember the companies that offered the best service and the best prices? Save work receipts from the companies you want to continue doing business with. Every year go through your file cabinet and shred what documents you don’t need and save the ones you do need – this will save you from having a mountain of papers. Want to save even more space? Scan the work receipts on your computer and save the images where you can easily find it.

 

LIVING FOR THE CITY:

If you haven't done so already, change your address! You can go to your local post office and fill out an address change form for free. Don't want to make the trip? Fill out a form online at the United States Postal Service (USPS) website: https://www.usps.com/umove/ The USPS will charge an ID verification fee of $1.05.

 

 

You've just been SAVED BY THE BELL!