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Homeowner’s Insurance: Do You Understanding Your Coverage

Francisco Montes de Oca · August 16, 2023 · Leave a Comment

Homeowner’s insurance — always grateful to have it, and yet always confused on what is actually covered!

More often than not, the situation goes like this: your lender requires insurance and you hurriedly made a decision without truly comparing different policies, and likely not looking at additional endorsements or riders. Did you just decide to bundle policies with the insurance company you got your car insurance through 10 years ago?

Choosing the right insurance policy can feel overwhelming, but don’t panic. If you’re shopping for homeowner’s insurance or thinking about reviewing your current policy, here are some things you should keep in mind:

➊ Check the limits on your personal property and liability coverage. Your belongings (such as clothing, furniture, electronics, etc.) are insured under personal property coverage. Take inventory and make sure the limit is enough to cover everything you own. Personal liability coverage protects you if you’re liable for an incident that injures someone on your property, so be sure to select a liability limit that properly covers what you have in assets.

➋ Be aware of exclusions. Depending on where you live, there will be a list of things that won’t be covered by a standard policy. This includes earthquakes, landslides, and flooding. Be sure to ask your insurance agent if there’s an option to purchase protection for excluded incidents.
Other additional coverage and endorsements include water backup (water line, sewer line coverage), equipment breakdown, and home business.

➌ Understand your deductibles! When buying home insurance for the first time, it’s important to pay attention to your deductibles for property damage. Your deductible is the portion of the claim you’re responsible for, so make sure the deductible amount is within your budget. For example, you may not want to elect the policy with a lower monthly premium that requires a $5,000 deductible, because anything under $5,000 is going to come out of your pocket.

➍ Check for additional coverages that may be available, such as personal property endorsements for valuable items like jewelry or electronics. You may also want to consider identity theft protection or coverage for other detached structures on your property.

Most people are not fully aware of what they are covered for until they need it. Don’t let that happen to you! Peace of mind starts with the right coverage.

Let me know if you need a great insurance agent — I have amazing connections and it would be worth a checkup.

What You Think You Need to Buy A House

Francisco Montes de Oca · August 9, 2023 · Leave a Comment

The world of homebuying is often accompanied by myths and misconceptions that can make the process seem more daunting than it really is.

I’m here to help shed some light on a few ways you can achieve homeownership without the stress!

⓵ Contrary to popular belief, a 20% down payment is not an absolute requirement. In fact, there are some first-time homebuyer loans that only require 3% down!

⓶ If you want ACCURATE and up-to-date information, Zillow is not your friend. Get yourself set up on a custom search with a trusted agent so that you have access to current listings (and prevent disappointment).

⓷ Working with a local lender will make the mortgage process SO much smoother. You need someone who is easily accessible (especially on weekends), and working with a local lender offers the advantage of personalized service, in-person support, and a deeper understanding of the local market. This is even more important in a competitive market.

⓸ Real estate agents do so much more than just open the door for you (contrary to what HGTV leads you to believe). A skilled agent can help you navigate complex paperwork, provide insights on neighborhoods and market trends, and negotiate the best terms on your behalf. An agent’s role extends far beyond opening doors — we are your trusted advisor, ensuring you make informed decisions and find the right home that meets your needs and budget.

⓹ Having a trusted agent to protect you and educate you when putting together an offer is crucial. It is important to have someone representing your best interest throughout the transaction.

Have questions about the homebuying process? Send me a message, I’d love to help!

Love Your Rate But Hate Your House?

Francisco Montes de Oca · August 2, 2023 · Leave a Comment

Have you ever found yourself standing in your home, looking around, and thinking, “Should I move? Is now the right time to sell? Will I find a home that will fit our lifestyle better?”

f the thought of higher interest rates has made you hesitant about making a move, I get it. After all, it may seem as though holding onto your current mortgage with a lower rate is the safer choice.

But here’s the thing: regardless of where interest rates are, if you’re feeling like you’ve outgrown your current space or it’s just not quite fitting your needs anymore, it might be time to make a change.

Here are just a few reasons why you should consider making a move, regardless of your current lower interest rate:

① Your value has appreciated, and so has your equity.
In recent years, with double-digit appreciation, home values have increased drastically, which means so has your equity. Leverage the increased equity from your sale and purchase a home that fits your current needs and lifestyle.

② We are still technically in a seller’s market.
Higher interest rates often coincide with a seller’s market, where demand outweighs supply. This means you can potentially secure a higher sale price for your home than if you were to wait a few years for a more “balanced” market.

③ There will never be a “perfect” time to move.
Timing the market perfectly is a myth, and the truth is, there is no “right” time to buy or sell a home. Rather than obsessing over market timing and interest rates, shift your focus to your personal goals and circumstances, and creating a better quality of life for you and your family.

④ There are ways to buy and sell at the same time.
There are numerous ways to buy and sell at the same time so that you don’t have to find short-term housing and storage units. Ask your agent and lender about the options available and which one would work best for you and your current circumstances.

If you’re still unsure about what to do or just want to chat about your options, message me. I’m always happy here to help you navigate the world of home buying and selling.

Agent Hopping in the Home Buying Process

Francisco Montes de Oca · July 31, 2023 · Leave a Comment

The home buying process will be much smoother if you interview and hire one agent you trust to represent you and guide you from the start of your home search, rather than doing what I call “agent hopping”. Agent hopping is when you work with multiple agents at once, whether it is intentional or not. Agent hopping may seem like a good idea, but it can actually hinder your buying or selling process.

Here are a few reasons why agent hopping can be detrimental to your buying process:

• Lack of continuity.
Changing agents can disrupt the momentum of your home search, causing delays and confusion.

• Loss of knowledge.
Each time you switch agents, you lose valuable information about your needs and preferences that your agent has accumulated.

• Difficulty building trust.
Building trust takes time, and switching agents frequently can make it difficult for your agent to understand your needs and represent you effectively fully.

Here are a few ways that you can make sure you aren’t agent-hopping:

✔️ Interview agents before you start house hunting or going to open houses.
Make sure you interview multiple agents and pick one you trust and get along with to represent you.

✔️ When working with a realtor, don’t ask another agent to show you a property.
If you see a home you like, but your agent is not available, ask if they have a coworker or assistant who can help them show you the home or if there is an open house you can attend.

✔️ Don’t contact listing agents directly for property information.
Your agent can get you information on ANY home, even if it is listed For Sale by the Owner! The listing agent selling the home (the name on the sign) represents the seller, and you want to make sure you have someone looking out for your best interests as well.

If you’re starting your home search and are looking for a realtor, I would love to grab a coffee and discuss your homeownership goals. Just send me a message, and let’s get the conversation started!

The Different Types of New Construction

Francisco Montes de Oca · July 28, 2023 · Leave a Comment

Deciding to build a new home can be exciting but equally as daunting, as there are many factors and choices to consider, starting with the type of builder you choose to make it happen.

Whether you want to meticulously create your floor plan and design down to the last square inch or are flexible with the finished product so long as it contains certain “must-have” features, there are different types of new home builders that can help turn your dream home into a reality.

Don’t know where to start? That’s what I am here for. Swipe to learn about the different types of new construction options and which one may be right for you.

If you’re thinking of going the route of building your next home, send me a message. I would love to answer any questions and discuss the builders and new neighborhoods in our area!

National (large) Builders

National builders generally have a set number of floorplans and features to choose from in their own design center without too much flexibility. You will typically find them building an entire neighborhood with a model home/sales center. Some of these builders only build “spec homes” where the homes are already completed. Economies of scale typically allow for the best price for a new construction home.

Local (smaller) Builders

Smaller builders typically have a similar business model as national builders. However, they usually build just a few homes at a time — almost like a cluster of homes rather than an entire neighborhood. Sometimes they have more flexibility in customizing your home and may allow you to pick from a larger variety of floorplans or options/upgrades.

Custom Builders

With a custom builder, you can have anything you want because you’re paying for it… custom homes are built one at a time to fit an individual buyer’s unique needs and desires. They typically build with many higher-end products and finishes and allow you to customize pretty much anything, limited only by your budget, imagination, and local building or neighborhood regulations. It is important to note that custom builders sometimes require that you buy your own land first.

Spot Lot Builds

This type of new construction can be done by outsourcing architects, engineers, and builders or can be paired with a custom builder. This process requires you to find a purchase your own land first (the “spot” lot) and either pay a builder to do the lot testing. Engineering and permitting, or you can hire out all of the testing and site engineering individually. You could then work with an architect to design your home and a builder to build it. The more cost-effective option would be to partner with a local or custom builder to take care of the entire process from you start to finish.