I just received my income tax organizer from my accountant and I was reminded of a challenge that some buyers may face this time of year.
I know you’re thinking “Really?? I just managed to get through the holidays and I don’t even want to think of filing taxes yet”. But, if you’re one of the buyers hoping to beat the rush by entering the market in the spring you need to add one more task to your ever-growing to-do list.
So, what does the filing of taxes have to do with all of this? If you’re making offers on homes, and your closing could be on or around April 15th, you need to contact your mortgage professional to discuss when you should file your taxes. This can help you avoid any last minute issues with your transaction.
Things to consider:
As a real estate professional I want my clients to be aware of any possible stumbling blocks that could derail a transaction. My goal is for you to make great decisions with great information.
OPEN HOUSES IN ENGLEWOOD
If you’re interested in buying a home in Englewood, I’d love to help you.
I live, work and volunteer in this wonderful city.
Contact Judy if you’d like to talk about finding your new home!
Saturday September 30th
Click on the icons for full details (time, price, etc.)
If you’re in the market to buy or sell a home contact Judy
Almost 2 years ago now we were hit by a bad wind & hail storm, here in Englewood, where I live. After the storm passed we inspected our roof and realized we were going to have to have it replaced. The good news for us? Our homeowner’s insurance covered the replacement cost of our roof. The bad new for our next door neighbor? His insurance only covered the actual cash value. Our neighbor ended up having to come up with almost 50% of his cost to replace his roof, boy was he mad!
This article was generously provided by Taylor Bigandt of American Family Insurance. Taylor is a local Insurance Producer in the Englewood area. The agency that Taylor works for has two locations, one in Lakewood and the other in Englewood. Taylor is the Sales Lead Manager at the Englewood office. You can reach Taylor by phone or email at 303-462-2100 or firstname.lastname@example.org.
Summer is fast approaching, and you know what that means? Afternoon thunderstorms. These storms place Colorado in the middle of “Hail Alley”. Hail season starts in mid-April and goes through mid-August. The damage can be catastrophic and may leave you wondering what to do next. If you have the correct coverage on your Homeowners Insurance when that next storm hits, you will not have to worry about what to do next. Many people are not educated by their agents on the coverage that will help them save money when a hailstorm or windstorm destroys their roof. When your roof is destroyed by wind or hail, there will be two different coverages that you can be covered under. The first coverage that I personally recommend having on your Homeowners Insurance is Roof Replacement Cost Coverage. The definition of replacement cost is “the current cost of replacing an existing asset or property with the same quality of construction”. The second coverage is Actual Cash Value. The definition of actual cash value is “the current cost of replacing an asset less the depreciated value”.
Roof Replacement Cost Coverage means that your insurance company will cover your roof at a replacement cost value, less your deductible, without taking into consideration the depreciated value. This means that if your roof costs $20,000 to replace with a $1,000 deductible, the insurance company will pay $19,000. If your policy does not include Roof Replacement Cost Coverage then your roof will be covered at Actual Cash Value. Actual cash value means that your insurer will pay to replace your roof, less the deductible and depreciation for the age of the roof. For example, your roof costs $20,000 to replace and it is 10 years old with a depreciating value of $500 per year along with a $1,000 deductible. The insurance company will then pay out $14,000 ($20,000-$1000=$19,000-$5,000(depreciation) =$14,000) leaving you to pay $6,000 to get your roof replaced.
When shopping for a policy it is important to understand what your wind and hail deductible will be. Some insurance companies are starting to go to a percentage deductible. Having a percentage deductible will help you save at the time of purchase on your homeowners insurance but most people don’t understand the consequences financially by selecting this deductible. A percentage wind/hail deductible will be based on your dwelling coverage. If you own a home that costs $400,000 to replace and you have a 1% deductible for wind and hail then your deductible will be $4,000. If you do not have $4,000 to spend then the policy you purchased will be of no use and your roof will not be replaced.
At American Family Insurance where I am currently employed we still offer a $1,000 wind/hail deductible. In addition, we offer Roof Replacement Cost Coverage on roofs up to 15 years old. This is longer than the industry average which is about 10 years. Our homeowner’s product will be able to properly protect your home during hail season in Colorado.
Again, if you have any questions or would like to inquire about a quote from American Family Insurance please give Taylor a call at 303-462-2100 or email Taylor at email@example.com
If you live in Colorado and haven’t already received your tax bill in the mail you should see it shortly. Here are some things you should know about property taxes and how they are paid.
Buying New Construction – Final Sales Price
You see the signs everywhere “NEW HOMES STARTING IN THE LOW $XXX’s”. In the Denver Metro area any sign that says “starting in the low $300’s” will likely get a lot of attention. It’s tough to find a nice house, let alone a brand new house, under $350,000 anywhere along the front range of Colorado. The price listed on the signs are the ‘base price’ of the home. Unlike purchasing an existing home the ‘base price’ on the marketing materials is merely a starting point. Before you start packing up your belongings to move, you’ll want to ask the sales person specific questions about any additional costs.
Below is a list of items to take into account when calculating the actual sales price of a new home.
The cost of the interior upgrades I wanted was about $30,000 (pretty close to 10%). (granite counter-tops, wood flooring throughout the main level, tile floors in the bathrooms, a gas range in the kitchen, an additional bedroom & bathroom and a covered patio). It can add up very quickly. Every lot had a lot premium associated with it. Lot Premiums ranged from $4000 to $10,000 depending on the lot and location. The total of my additional costs was $34,000 or 11 %.
Base Price $311,000
Interior Upgrades $30,000
Lot Premium $4,000
Total Purchase Price $345,000
Please Note: If you are just starting out on the home buying process and aren’t even sure if new construction is what you want to buy, please download my Home Buyer Questionnaire, to get you started.