The seller’s inspection: Inspecting a home before listing can be a good move

You take good care of your home and when you are ready to sell, why have it inspected? After all, the buyer will have an inspection before the deal.
Should you save the $350 to $500 it costs to have an inspection and hope for the best?

Maybe not. It might well pay for a seller have a home inspection before they list.

Sellers who have owned a home for some years might not recognize problems that have cropped up. If they were to keep their home, they would eventually discover and fix these issues. But, during the sale process, home issues can be a nasty surprise and delay or even kill a deal.

The business of selling a home and buying a new one is tricky enough but when a good offer is on the table, at just the time they are buying a new home, sellers don’t want the deal to fall through. Since most deals are contingent on inspection, a potential buyer can always opt out if their own inspection uncovers issues. That starts the sale process over in a big way, with the seller being forced to address problems and the buyer potentially moving on.

Inspectors take a close look at the home’s inner health in 10 areas: Interior and exterior, structure, roofing, plumbing, electrical, heating, air conditioning, ventilation, and fireplaces.

These detailed evaluations can identify the kind of problems that are easily fixed, but might cost the seller money and delays after the buyer’s inspection.

On roofs, for example, inspectors study shingles, flashings, roof drainage, skylights and chimneys. A seller might not want to put on a new roof, but repairing the flashings and roof gutters puts your house in a solid light. Buyers might not expect a new roof, but they don’t want to find leaks.

There are a variety of specific things that a home inspection can look for, depending on individual concerns. For example, a radon inspection checks a home for levels of radioactive gas and takes between two and seven days to complete. Termite inspection looks for damage to the wood structures of a home. With homes that have a well for water, well water testing is another option; for homes with a septic or oil tank, examination of those structures may be part of an inspection as well.

A general inspection should consider the condition of the roof, the water pressure and plumbing, electrical outlets and switches, and the crawl space and attic, according to HGTV.

How Much Auto Insurance Do You Need?

Here in Cypress, TX, you need to make sure that you at least have the minimum required auto insurance as dictated by state laws. However, here at InsureUS, we know that this amount is not always the best indicator of determining exactly how much you need in coverage. There are several things to consider when you are getting auto insurance and ways to lower the cost as long as you have the minimum coverage required by law. 

The first thing that you want to consider when you are determining how much auto insurance you need for your vehicle is the cost to replace or repair your vehicle. If you have a vehicle that is a new model or even one that is a bit more expensive than your average vehicle, you want to at least have coverage that can replace your vehicle if it were to be totaled or to repair it if you are in an accident. Next, you want to make sure that you can cover the deductible on the coverage. You should think about the deductible amount and make sure that you can pay that at the drop of a hat. If you cannot, you may want to lower the deductible on your coverage. If you can, you may want to increase the deductible for as much as you can pay for out of pocket because this will lower your monthly amount. 

If you are in the market for auto insurance and want to make sure you get the right amount above the minimum requirements, be sure to reach out to us here at InsureUS, serving Cypress, TX. We will make sure that you get the policy that meets your needs and also fits well within your budget and law. 

How and why mortgage interest rates rise (or fall)  

The rate on a mortgage loan is often the most significant factor in how much an owner will ultimately pay for their home.  Monetary policy, market inflation, and the overall economy all play apart in determining when it rises and falls, according to Nerd Wallet. Currently, the United States is experiencing remarkably low rates by historical standards, below five percent in most cases, that contrast harshly with those in the high teens during the early 1980’s. In this country, the Federal Reserve is the foundation of most of the traditional lending system due to their setting of the federal funds rate – the interest rate that banks must charge each other for short-term loans. This base rate then influences longer-term rates between banks, businesses, and personal borrowers like those looking for a 30-year mortgage. During times of expected inflation, the Federal Reserve is likely to raise these rates to protect the value of the dollar by keeping prices in check at the expense of increasing the cost of borrowing money for everyone. These rates can have a compounding ripple effect throughout the economy as well, as businesses will be less likely to want to borrow money for investment when their interest payments become larger than the potential payoff. Slowing business can mean layoffs, suspended raises, and make potential home purchasers less sure about their financial future and ability to afford payments. Often, the housing market and overall economy will move through cycles of low-to-high interest rates that can be impacted by political changes, global events, and natural scarcity of resources. Anyone in the market for a new home should be paying attention to the current mortgage rates as even a fraction of a percentage point can have a dramatic impact on how much they will pay over the life of the loan. Using a 30-year, $300,000 loan as an example, someone with a four percent interest rate will pay a total of $515,609 while someone with a five percent loan will pay $579,767.

Online lending is a boon to small business funding

Small businesses have found that online lending platforms can be a reliable alternative to the traditional banking sector and received nearly $10 billion in loans from these sources between 2015 and 2017, according to a study by NDP Analytics. Access to capital is one of the most significant hurdles that new and small businesses face to get off the ground or expand their operations and traditional small business loans have been in decline since 1995. The research showed that for every dollar borrowed, business sales increased by $2.31 meaning that the $10 billion investment led to approximately $37.7 billion in economic output along with an estimated 358,911 jobs created.

Major players in the online space, including Kabbage and OnDeck, saw a fifty percent jump in their loan issues during this time and the vast majority of those borrowing had sales of less than $500,000. The companies used the funds to produce more inventory, cover payroll, and invest in equipment and more extensive facilities during critical moments in their growth path. The average business borrowed $55,498 which shows that most are not overleveraging with their decision to take on debt to move forward.

Online lenders provide many advantages for small businesses compared to traditional institutions such as offering smaller loans with shorter terms, making credit decisions and access to cash extremely quick, and allowing payments and most business to be conducted through an online portal. These options will enable a company to be more nimble in how they approach financing and to find the terms that best suit their particular operation.

Do networking groups provide a benefit?

Most seasoned business professionals agree that networking is an incredibly significant part of their success, but many people just starting out have not grasped the importance of joining a networking group or how to make the most of their time, according to Jan Plutzer, COO at Apcera. During her career, she also discovered that cultivating a collection of both informal and formal networking groups was even more beneficial to her than having an individual mentor in her field.

Using an informal combination of business partners, employees, bosses, and current and former co-workers, she was able to bounce her ideas and problems off of a diverse group of people that had a keen understanding of her background. The best groups will not merely agree with you at every turn but rather provide brutal honesty and ask tough questions to uncover the best way of handling a situation. Her group helped her navigate challenging career choices such as leaving a prestigious job to join a startup as well as merely acting as a sounding board for new ideas and directions.

Many different types of formal networking groups exist that can fulfill a variety of roles for a young professional. Jan recommends joining groups with others in your field or that share your title to gain access to the most relevant experience. Similarly, special groups for women or minorities can help provide an added layer of support for people that might feel left out of more traditional groups. If there isn’t a group in your area, then creating one can be a great option that only requires one extra trusted professional to get started.

Importantly, just joining a networking group or participating in a few events is not enough to gain all of the benefits. To reach its full potential, networking requires effort to maintain and build new relationships as well as to provide benefits to the other members of the group that will be relying on you for the same support.

Business group helps fund some small businesses

Many small businesses are started to help solve a problem or innovate upon existing solutions, and the Small Business Administration’s (SBA) Small Business Innovation Research (SBIR) exists to provide funding to those that qualify, according to Entrepreneur Magazine.

This group was formed in 1982 to help identify the feasibility, commercial potential, and technical merits of young projects and gives more money over time to successful teams.

Currently, the division has around $2.5 billion across a variety of federal agencies, such as the Department of Health and Human Services, that are looking across America for projects aligned with their goals. Joining the program is possible through one of their local events or conferences that serve to educate potential participants on how the program works as well as highlighting important calendar dates and deadlines. Once accepted, Phase 1 businesses can receive up to $150,000 and up to $1 million over time based on their criteria for success. Because each federal agency will be looking for different types of projects, it is crucial to sort through everything to find the place with the best fit. There are also opportunities during the early application stages to speak with agency contacts about questions and details.

Small operators should remember that their local Small Business Development Center will provide them access to an advisor that can help them navigate the hurdles involved with getting SBIR funding. In addition, they also offer free general business counseling as well as inexpensive training options.

Can I use my home insurance for my home business?

Especially with how easy and inexpensive it is to have access to equipment like printers and copiers now, many small business owners in Cypress, TX are choosing to operate from home in order to save money. A lot of them assume that the homeowner’s policy will cover whatever happens in the home, but unfortunately a lot of the time this will probably not true. A policy that you obtain through InsureUS or another insurance company will have limitations and exceptions, and most policies have rules about how the property will be used. This makes sense because different kinds of ventures carry different kinds of risks, and insurance is about risk assessment.

If you have a physical office space, you may want to talk about property and liability insurance. Some of the most important things to protect are your equipment and records, and you may have some expensive electronics that allow you to work from home. These may include computers, furniture, and other items specifically for your home office.

Liability insurance is also important. If clients come to your home business in Cypress, TX, they could fall and become injured on your property, or become injured in another way. Also, if you are making a product or providing a professional service, you want to be protected from liability if someone becomes injured using your product or taking your professional advice.

The good news is that you may be able to offset some of the costs by claiming them as business expenses. If you have a home business or are thinking about setting one up, call InsureUS today so we can help protect you,

Entrepreneurs that startup in the same field as their family do well

While not typical, sons that decide to start a business in the same field as their fathers tend to fare much better than those striking out in their own direction, according to a study published by Germany’s Institute of Labor Economics. In it, they analyzed the data from Norwegian firms between 1999 and 2007 to discover that while only four percent of new entrepreneurs decided to start their own business this way, they were found to perform much better than their peers in a variety of metrics. Results were the same whether the father had started a business himself or had just worked as an employee in the field.

Survival during a business’ first four years is often a very telling sign of its future success and the sons in the study were able to achieve a six percent increase over similar firms that did not have a family influence. Most remarkable, however, is that sales, total assets, and the number of employees in these companies was around double their peers which landed them in the top five percent of their industry for those respective categories.

Although there is no direct, measurable cause for the advantage, the study identifies the edge as ‘dinner table human capital’ as many interviewed participants said that they learned much of what they knew from simply listening to their fathers around the dinner table at night. They would recount stories of success and failure as well as discuss problems that they were facing within their walls and as an industry as a whole. The children were also likely to have a head start on building relationships in the marketplace and were able to use their father’s name to establish trust.

For grads: Best places to start career

Congratulations to this year’s grads who have left academia just when the economy is booming, employers are hiring, and unemployment is historically low.

The question is where to start the new career.

A new study by WalletHub ranks 180 cities based on 27 metrics, including number of entry-level jobs, average salary, housing affordability, and friendliness to singles and families.

At the top of the list with the overall best rank was Salt Lake City, Utah, with number 1 quality of life rank and a number 3 professional opportunities rank.

Coming in second overall was Orlando, FL, ranking number 1 in professional opportunities and number 6 in quality of life.

Rounding out the top 10, the next top cities in order are Atlanta, GA, Charleston, SC, Tempe, AZ, Austin, TX, Columbia, SC, Denver, CO, Raleigh, NC, and Grand Rapids, MI.

Affordable housing considerations took California locations down on the list, with all but one of the least affordable cities located in California (Oakland, Los Angeles, Glendale and San Francisco.)

The lone non-California location ranked as least affordable was New York City.

Meanwhile, Iowa ranked most affordable twice (Cedar Rapids and Des Moines), with other cities including Overland Park, KS, Sioux Falls, SD, and Garland, TX.

Grads are most likely to be able to get jobs in Charleston, SC, Orlando, FL, Columbia, SC, Salt Lake City, UT, and Atlanta, GA. Cities with the least available entry-level jobs were Bridgeport, CT, Santa Clarita, CA, Garden Grove, CA, North Las Vegas, NV, and New York City.

 

What expenses to expect when you sell your house

Selling a house has hidden costs, but planning ahead can eliminate last minute worries.

According to a new study by real estate research firm Zillow and Thumbtack, an online site matching local professionals to customers, the average cost of covering basic projects – painting, staging your home, carpet cleaning, lawn care and gardening, and local moving costs – was $4,985 for sellers who hire professional help.

The analysis showed a range of an average high of $6,580 in San Jose and a low of $3,720 in Dallas, according to USA Today.

Before you spend money on updating the look of a home, review the foundational elements that make or break a house to see how much you really need to spend.

First look at smaller things. The faucets shouldn’t drip, and all fixtures should be in working order. Windows should not be broken or cracked. Fans should not wobble or make noise.

Next, look at higher price items. The heating and air conditioning should work. Walls and ceilings should be presentable. Appliances should all work. If you can, gather information about the age and repair history of these items.

Then there is the roof. In some hot markets, real estate agents say properties can sell sight unseen. Yet, the roof condition is crucial to getting the best price. Problem is that a new roof is expensive.

If it costs $10,000 to put on a new roof, it could be money well spent. If a buyer has options for similar houses at a similar price with a good roof, it’s unlikely they’ll choose a house they have to re-roof. Even if the house sells with three layers of shingles, chances are the selling price could take a hit for more than the cost of the roof. To your list of repairs, add the cost of decluttering.

Plan yard sales and eBay sales for items of value. These sales might add some cash to your sales budget, but as for bulk clutter removal, they often won’t do much good.

For serious bulk removal, call a trash hauling company. You can usually hire a man and a truck who will take every last item out of a storage area.

Naturally, you will need to pick out the items that you genuinely want to move. You could repair those three old string trimmers. You could use those 2x4s somewhere, but the question is do you really want to move them?

A decluttered property and outbuildings are crucial to a good sales price.

Experts usually recommend neutral paint throughout the inside, although many homeowners ignore this expense.

Carpet cleaning can often suffice, in lieu of replacement, but be sure to add the cost to your estimate.

Don’t overlook yard work and house cleaners, both of which put your house in a good light.