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Strategies for Maintaining a Home

By
Real Estate Agent with Keller Williams Realty

Recent bank failures should be a wakeup call to all homeowners and people who have deposits in their bank that are above $250,000.  The Federal Deposit Insurance Corporation (FDIC) does not insure amounts that are above this amount.  Homeowners must maintain all their assets which includes maintenance of their hard assets such as their home and investment property and financial            assets they have deposited in financial institutions. For most people homeownership represents their largest asset, and they need to manage these assets to maintain long-term sustainability.  Homeowners should follow the following risk mitigation strategies that are normally followed by banks to maintain good stewardship:

Assets – Need to do regular maintenance on your home by doing routine maintenance such as: servicing HVAC, cleaning gutters, inspecting roof, and yard maintenance, etc.  Doing regular maintenance will help prevent costly repairs and ensure the home remains in good condition.

Value – Homeowners want to increase value, and the best way to do that is through renovations and upgrades to the property.  At the same time this provides future enjoyment while living in update property.   

Insurance – A homeowner needs to consider homeowners’ insurance.  Your insurance should cover replacement costs and should include an inflation guard clause attached to your policy. Finally, you need to review your coverage once a year with your insurance agent. This will help ensure you have adequate protection.  Also, you should consider such things as security systems and impact-resistant roofing.  This will help reduce your insurance costs.  

Contingency plan – If an emergency occurs due to fiscal crisis or an unexpected event, homeowner needs have an emergency savings or a plan to manage the debt.

Mortgage lenders – It is important to make timely mortgage payments. This will help improve your credit score.  At the same time, stay attuned to what is occurring with interest rates and determine when the best time to refinance. Be sure to understand refinancing, some refinancing options will create greater out-of-pocket expense in the long term.  If you encounter financial stress, communicate with the lender to work out a payment plan moving forward.  To help avoid financial stress avoid taking on too much debt against your home equity.         

Professional advice – Homeowners should live in their home and allow it to appreciate over time. Keep track of any changes that affect the value of the property.  In addition, seek professional advice from financial advisors, and mortgage brokers, etc.  This will help you make informed decisions.          

Record keeping – This is important that homeowners keep all documents related to purchase of property, renovations, and upgrades which includes paid receipts, etc. for tax purposes.  When a homeowner sells the property, these records will help minimize your tax liability.  By doing this homeowner ensures their property remains a source of long-term stability and security.

Kristin Johnston - REALTOR®
RE/MAX Platinum - Waukesha, WI
Giving Back With Each Home Sold!

Great post!  Thanks for sharing and enjoy your day!

Aug 10, 2023 07:36 AM