CONGRATULATIONS you’ve just purchased your new home; or you’re about to make your dream of homeownership a reality, now what? There are things every homeowner, whether a first time buyer or buying your first newly constructed home, should know.
This is truly one of the most exciting times in a person’s life, but can also be one of the scariest. It is easy to get caught up in the excitement of the moment but it is imperative that you keep your head and avoid making mistakes that can jeopardize your investment. Jumping into new home ownership without the proper knowledge can cost you everything you’ve worked so hard to accomplish.
The following is a list of essential tips we think every homeowner can use to help with the transition into a NEW home.
The best time to do a walkthrough of your new house is before you take possession from your contractor; when it is completely empty. Take a look around; double check that:
If you find any issues that go against the sales contract address them immediately. Your contractor should work with you to correct any problems you find and make sure you are happy with your new purchase.
Prior to taking possession of your new home make sure you have contacted all utility companies and arranged for everything to be put in your name, turned on, and working properly. You will need the electricity, water, gas (if applicable), heating and cooling, phone (if wanted), internet, etc., to be functioning on or before moving day. It’s amazing how much trash you create during a move so don’t forget to set up garbage collection with your local waste management company before it gets out of control.
Changing your address with the post office before moving day is a good idea, but you should also notify others of your move as well. Friends, family, subscription services, your bank, any licenses you may carry, loan providers, and anyone else who sends you regular correspondence or bills should be informed of your move. If you’ve transferred to a new state then you’re also going to need to contact your department of motor vehicles to arrange for a new driver’s license and an updated vehicle registration.
These are two things you should locate immediately upon arrival so you don’t have to go in search of in case of an emergency. The breaker box, aka the fuse box, is most commonly found in the garage, storage room or basement and the home’s water shutoff valve will be somewhere around the perimeter of the house.
For homes on a city or county water system the main water shutoff valve is usually located near the street, connected to the main waterline. It is on the property side of the meter that collects the usage data for your monthly bill. These usually require a special tool but it does shut off the water supply to the entire house.
In areas that are less likely to freeze the valve may be attached to a wall on the outside of the house. In areas prone to prolonged freezing temperatures it is probably buried deep underground or in your basement if you have one. Knowing where, and how, to shut the water off in the case of an emergency can save you thousands in repair bills and time out of the home during those repairs.
You should also develop a habit of turning off the water at the main whenever you leave for an extended period of time such a vacation or weekend get-a-way. Water under pressure can spring a leak at any given moment, having the water turned off while you are not there will prevent you from returning to a flooded house and a huge water bill.
If your house has gas to power stoves, water heaters, fireplaces, etc., you should know how to turn this off and follow the same rules as your water when leaving for long trips.
It is a new home, everything should be as clean as it ever will be, right? Think again! It is true that the home is new but that doesn’t mean clean. The contractor will usually have the home cleaned prior to sign-off but it will not be the type of deep cleaning you would want for your family to live in. From scrubbing toilets and disinfecting bathroom surfaces to cleaning light switches, vacuuming carpets and mopping the floors, there are a number of things that should be cleaned before moving your furniture and belongings inside. If you truly want to start with a clean slate it is highly recommended that you give the home a deep cleaning prior to moving in.
(At Cobra Custom Builders we use a professional cleaning company that specializes in cleaning newly constructed homes. While you always have the option of cleaning before moving in, it is not necessary with our homes. We would move our own family into any home after this crew does their magic.)
This doesn’t mean you have to break out the easel and draw your house to scale, but having an idea of where things are going before you move in can make the move go faster and easier for you and the movers. To make things go smoother, make a copy of your plan and give it to the movers in advance, this will free you from having to micro-manage the entire process yourself and allow you to do more important things.
In the end if anything isn’t the way it should be you have written proof of your instructions and this will lower your stress level by not having to argue with the movers. Plus it will help you keep up with all of your belonging. The last thing you want is to wonder where your aunt’s antique card table is after the movers are gone.
New doesn’t mean safe. If you have small children or fur-babies, you’ll want to take immediate steps to ensure their safety. This is another thing you’ll want to do on moving day especially if they are present during your move.
Consider setting up a kid-friendly zone where they can stay safe. Leash your animals securely in the back yard to prevent them from getting hurt, or worse, hurt someone else. People walking around with large items such as furniture or boxes may be unable to see them, so keep them clear of all walking paths.
Check all windows to make sure they’re closed and locked, and don’t have any long hanging cords coming off of the blinds. And of course, keep anything dangerous like box cutters, cleaning supplies, glassware, etc., far out of the reach of little hands.
It is always good idea to change the locks on your new home; you never know who might have a key. Schedule a locksmith to come by or, if you feel comfortable doing it, change the locks yourself. Another option is to re-key the locks on all exterior doors if you don’t want the expense of buying all new door knobs. This is definitely one of those areas where it’s better to be safe than sorry. It’s a small expense to pay for a lot of peace of mind.
(At Cobra Custom Builders we understand this concern and add new locks to the house just before the new owners take possession of their new home. These are special locks that can be rekeyed by the owner as often, or as many times, as you wish. This allows you to loan out a key to a friend, a repair man, a baby sitter, etc., and then rekey the locks so you don’t have to worry about getting the old key returned. This also allows you to key all exterior doors to the same key so you only have to use one key to access all three exterior doors.)
When we refer to an emergency kit we are not talking about prepping for the apocalypse. True, being prepared for the worst may not be a bad idea, but we’re referring to an emergency at your home. You never know what type of medical emergency you might find yourself in so always keep a top rated, high quality first aid kit on hand to treat all emergencies.
In the case of weather related emergencies keep in mind that severe weather damage didn’t happen to you alone. Rescue teams will be busy helping as many people as possible and it may be a while before they can reach you. Having everything you need for any type of emergency may help save someone’s life.
Be Prepared For Outages
The most common outage for most people is a power outage. While modern power grids are usually very reliable they are still vulnerable to severe weather. Trees fall on power lines, transformers blow out, power poles get knocked over in an accident, etc. Even if you live in a neighborhood where the power lines are buried underground, any number of things can happen that will shut-off the power supply to your home.
Not if, but when, you find yourself in this situation it is a good idea to have a light source nearby where you can get to it quickly and easily. This should be a reliable flashlight with fresh batteries, or a portable lantern (battery or fuel), glow sticks, or as a last resort, candles. Keeping something in each room of the house will keep you from having to feel your way through an unbelievably dark house in the middle of the night.
Fire Safety
This may be obvious, but surprisingly many homes do not have an operational fire extinguisher. The key word here is ‘operational.’ Some homeowners have purchased one or two and placed them in easily accessible places but never check the expiration date. Fire extinguishers come with a tag informing the owner of a recommended recharge date or a gage showing the charging level. Make sure you keep these up-to-date!
Keep Fresh Water
While it is highly unlikely that you will ever experience a lapse in the water supply coming into your home, it is still not impossible. People can survive for weeks without food but fresh water is another story. It is recommended that you have five gallons of water per person per day with at least one of those being potable.
If things get so bad that your city or county loses its ability to supply you with fresh water, remember the first rule of the universe; don’t panic! As long as you can find a source of water you can still function in your home. After all, people didn’t always have running water in their homes. Yes, you can even still flush the toilet by pouring 1.5 gallons of water either into the tank and flushing normally, or pour it straight into the bowl and let gravity do the rest.
One of the benefits of buying a newly constructed home is your new home will come with all new appliances, which will have its own set of manuals, warranties, maintenance schedules, etc. You should create a binder and start collecting contact information for contractors and service technicians that you can rely on to maintain these schedules.
If you don’t already have one this is a good time to purchase a safe that is large enough to keep all of your new home documents secure. Make sure it is fire rated and flood proof as these items are nearly impossible to replace if lost or destroyed.
When you close on your purchase you will receive a folder from your mortgage company with all of your closing documents in it and many of those documents may be on legal size paper. Having a safe that will allow you to close and lock up those oversized documents will come in handy. Place your binder with all of your warranties and manuals in it so you’ll always know where they are and can access them quickly and easily when necessary.
Over the number of years you live in your home you will be surprised at how many things you’ll want to store in your safe. Plan on getting one that is large enough to hold your original purchase documents and anything else of importance. This is where you will keep your insurance information, receipts for moving expenses and home improvements for tax purposes, vehicle titles, etc.
If you own the home outright and cannot ‘self-insure’, meaning you can afford to replace your home out-of-pocket if something happens, you should have insurance. The coverage should provide for financial protection from structural damages due to natural disasters like floods, fires, tornados, hurricanes, falling trees, etc. If you have a mortgage the lender will require you to purchase enough homeowners insurance to fully replace the dwelling in the event of a total loss.
Not all insurance is the same; therefore it is always in your best interest to shop for the policy that best suits your needs. This is one of the most important things you will do as a new homeowner so take your time and get it right.
Check to make sure you sign with a reputable company. You may find a great price, only to find out later that flood, sinkhole, or other coverages are sold separately and not included in that discounted policy. Saving money is always good but what price do you put on peace of mind.
Replacement coverage is not the only insurance you should consider as a homeowner.
If you are the primary on the mortgage, and others rely on your income, you should have enough life insurance so that they won't lose their home if something were to happen to you unexpectedly.
Loss of income can come in many forms. Disability-income insurance to replace your income if you become disabled and cannot work benefits everyone in the house.
You’ve made it to your dream of owning your own home and now the old furniture and decorations you thought were great in your apartment suddenly look old and outdated. The urge to run out and go on a massive spending spree to improve everything all at once can be overwhelming. Unless you’ve won the lottery or come into an enormous inheritance don’t make the mistake of depleting more of your savings to satisfy that desire.
Your monthly expenses are about to increase and you’ve just spent a small fortune on down payment, closing costs and moving expenses. The last thing you want is to lose everything by getting in over your head with debt. After all, the status of homeownership is not worth jeopardizing over a few trinkets.
Give yourself time to adjust to the additional expenses and rebuild your savings—that new furniture will still be waiting for you when you can more comfortably afford it.
No matter how new your home is there is always the possibility that something might go wrong. Having the funds on hand to cover such emergencies will keep you from having to put those repairs on a high interest credit card or taking out a second mortgage.
Nothing last forever and you can figure on an End-of-Life (EOL) for certain things around your house. For example a water heater, refrigerator, stove, washer and dryer, A/C and heating unit, etc., will generally have a useful life expectancy of ten to fifteen years. Roofs may last as much as twenty or more but one thing is certain, you will be repairing or replacing them if you live there long enough.
There are many tax breaks and financial benefits that you may be able to take advantage of as a homeowner. Always consult an accountant to get the best advice for your particular situation. For example, if you have a mortgage on your home the interest you paid on the loan each year can be subtracted from your taxable income. Also, if you run a small business and designate a room in your house as a home office, that percentage of square footage can be written off as a business expense.
Save Your Receipts for All Home Improvements
Any improvements you make during your ownership of the house will improve the value of your investment, but you may also be able to take advantage of additional tax breaks as well.
Repairs vs. Improvements
According to the IRS repairs only serve as a way of preserving the home's original value but do not enhance its value. Improvements will increase the value of the home and give you a greater return on your investment (ROI).
Make sure you find someone who knows these things and don’t hesitate to pay a little extra for a good accountant, in the end you’ll save more than it costs.
Bad neighbors can be a nightmare! Make every effort to introduce yourself the first time you run into a new neighbor. Never underestimate the value of having good neighbors; not just next door, but on the entire street. After all, you never know when you’ll need a good neighbor to walk your dog, or grab the mail and water the plants when you’re out of town.
Establishing good rapport with neighbors also goes a long way in making your day-to-day living situation more enjoyable. A good relationship with your neighbors will help you learn about your neighborhood, find reliable contractors and maybe even allow you to borrow tools when you need them. Knowing your neighbors will also make it easier to address any issues that arise later, such as property lines or noise concerns.
As the homeowner you are responsible for paying your utility bills. Monitoring your homes energy usage can provide the information you need to make small changes in the way you use electricity and save you money on your power bills.
When thinking about energy efficiency consider planting a shade tree. Depending on the size of the tree when first planted, you’ll be surprised at how fast it will grow into a tree large enough to shade your home. Placing the right number of trees in the best locations can cut your power bills. Reducing the amount of sunlight that enters your home will keep it cooler during the summer months and improve your landscaping at the same time.
Even a high quality, expertly build house can develop issues that no one could foresee coming. One of the best skills a homeowner can obtain is detecting minor issues before they become serious problems.
Learning the most common signs of deterioration around your home can prevent further damage and save you a lot of headaches and higher repair costs down the road.
While you may be able to put off a certain amount maintenance and repairs to a future time there are some things around your house that you should not ignore.
You may be able exercise restraint in purchasing the nonessentials, but you should not neglect any problem that puts you in danger or could worsen over time. A relatively small problem can turn into a much larger and costlier one if left unattended for an extended period of time.
It is better to keep up with all things as they occur. Keeping up with maintenance schedules prolongs the life of your house both inside and out. Proper grass care can keep you from having to re-sod your yard. Making sure no shrubs or trees are touching the walls of your house can keep it cleaner and need painting less often. Keeping your roof clean can help prolong the life of your shingles and put off as long as possible changing one of the most expensive repairs you’ll ever incur.
Appliances also need upkeep, for example once a year you should vacuum out the blower motor of your refrigerator to keep it from overheating. Most of your appliances came with warranties and maintenance schedules and you should follow them as prescribed.
If you are the courageous type you may want to take on some of the tasks of maintaining or repairing your home yourself. If so, you should look into purchasing tools that will help you get the job done right. There’s an old saying that goes; ‘There’s a tool for every job, always use the right tool for the job’ or ‘Every job has a tool and the right tool makes the job go right.’
From easy to do jobs like yard upkeep, to hanging curtains or pictures on the wall, you should have a toolbox complete with all the tools needed to do it right.
Larger jobs often require larger tools so make sure you have the space for these tools before running out and buying something that will take up your entire garage or basement. An outdoor storage shed is your best option for keeping lawn and garden equipment but can also be used for keeping bicycles, Kayaks or other toys when not in use.
The following are some items we recommend if you’re planning any Do-it-yourself (DIY) projects:
Indoor
Outdoor Yard and Garden
Depending on your level of expertise and desire to take on these projects yourself, you may need additional, more advanced tools but these should get you started.
According to the National Fire Protection Association, nearly 14,000 home clothes dryer fires are reported each year. These clothes dryer fires cause around 7 deaths, 344 injuries, and $233 million in property loss. At 32%, the leading cause of these fires is the failure to clean dryer vents. (Source NFPA)
Dryers can still cause home fires in other ways but the simple act of cleaning the lint filter can prevent most of them. Another fact that should go without saying is to never leave your home or go to sleep with the dryer running. You’d hate to come home from your quick trip to the store and find fire trucks in your yard and half of your house gone. Falling asleep can be worse so always do your laundry when you know you will be home to monitor the process.
New homes have dust too! Your HVAC system uses a filter to keep dust and dirt out of the inside of the unit, and stop that stuff from blowing back into your home. It is recommended that you change the filter at least once a month (regardless of the season) to keep your system running efficiently and extend the life of the unit.
When replacing the filter always try to stay with the manufacturers suggested type and size. Be cautious of thick, fancy, high-priced filters that boast extra long life. Some of those will restrick the air-flow and cause the unit to work harder to pull air through the system.
Try to find a multi-pack of three or more and label them to show the date for when the next one should be put in. Your system will last longer and your family will thank you for the cleaner air.
In most cases a leak does not mean a major problem. Water heaters sometimes leak from the drain or relief valves. Those valves are easy to replace and will usually fix the problem. However, a leak that is coming from the tank is a sign of serious trouble.
The steel tank inside the water heater is lined with a thin coat of glass. Eventually that glass will crack and the steel will begin to rust. If a reddish or muddy looking puddle appears anywhere around your water heater replace that leaking time bomb immediately.
Every day that you wait is a gamble because it is not a matter of if, but a matter of when the tank will rupture and cause an instant flood. Replacing it before disaster strikes will save you the money and time of having to dry out your house and stop the need for mold remediation.
If you have skills, great, but if you aren't qualified to make improvements and repairs yourself it may end up costing you more than you would have saved. Painting the walls yourself is one thing, but trying to repair a garage door opener is something you should probably leave to the professionals. Don’t jeopardize your investment with poor quality repairs.
If you do decide to take on a project yourself be sure to check and see if a permit is necessary before you start work. If you aren’t familiar with local codes you could be placing your family members in danger.
After you’ve been in your home for a while you may start thinking of ways to improve the house and make it more suitable to your needs. Take your time and prioritize based on the greatest need, then decide which improvements will net the best return. Do you need new countertops in the kitchen or would you rather STOP sharing a bathroom sink with your significant other?
Some upgrades are quick and easy like repainting with a neutral color or adding an outdoor deck. Remodeling bathrooms or updating a kitchen will cost more and require more time out of the house but will be worth it in the end.
If updates or upgrades are something you would like to move forward with, consider contacting the original builder of the home first. No one knows your house better than they do, or be better able to make the changes you want. Who knows, they may even consider making your requested changes a permanent design plan for future builds.
Another option to think about is to have the contractor build you a new home to your improved specifications then sell or lease your home as an investment property.
Things That Should Be Done Annually
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