It might look like a midcentury modern space, but don’t use that term to describe this striking Miami, FL, home.
“It’s tropical modern or eco-contemporary form,” explains listing agent Karina Reyes, with Compass, of the home that was built in 1968.
Regardless of what you call it, it’s a hit with buyers. The home was listed in April for $4.2 million, and an offer is already pending.
Various architectural websites define “tropical modern” as design that resembles modern architecture, with its focus on functionality, while taking tropical climate and environmental conditions into account.
Architect Alfred Browning Parker, who died in 2011, designed the rare residence for himself and called it “Woodsong.”
Wallpaper magazine once ranked the modern masterpiece among its top houses in the world.
The finely designed space last sold in 2017 for a little more than $2 million.
“It’s made out of mahogany wood, both inside and out, and then fortified by steel beams and a concrete base,” Reyes says. “It’s basically three distinct pods: a living pod, a dining pod, and a sleeping pod.”
A covered but exposed breezeway connects each of the pods.
“Parker’s goal with this house was to live immersed in nature, so the pods are raised so you’re eye to eye with the canopy and the lush greenery,” Reyes explains. “In order to go through your day-to-day activities, you have to step outside and experience the outdoors.”
And with Florida’s frequent summer rains, venturing out can be a multisensory affair.
“It’s a covered breezeway, but you might get a little bit of a splash,” Reyes says.
An outdoor lap pool runs alongside the structures.
“From the sleep pod, you can open the door and jump right in from your room,” she explains.
The spacious place has four bedrooms and five bathrooms.
Although there are distinct areas, the home has a wide-open feel.
“All of the rooms are lofted and open, so there’s no enclosed room in the whole house,” Reyes observes.
She says the multiple skylights are her favorite feature.
“When you’re standing in the house, if you look up or around, you’re going to encounter nature,” she notes. “With the skylights throughout the entire house, you can look up and see the sky. The skylights are circular, and they’re in each pod and on the deck. Not only having nature around you—but above you in your house—is kind of cool.”
The home was originally built without air conditioning, but each pod now has its own HVAC unit and other mechanicals.
“The windows are positioned across from each other to allow for a cross breeze,” Reyes explains. “The current owner keeps the windows and doors open a lot of the time, with screens to allow the beautiful sounds to come in—like the running water from the pond, the pool, the winds, the rain. You can hear it all, and it’s very relaxing.”
Six offers on the tropical marvel came in quickly, which surprised Reyes a bit.
“Most of Alfred Browning Parker’s homes take about six months to sell, because it’s such a unique buyer profile that wants to live kind of unconventionally,” she notes. “It’s not for everybody, but somehow there were six buyers willing to move in immediately.”
Just like there are different types of homes, there are also different types of home insurance policies. The type that works best for you depends on the type of home you live in and the coverage you need. There are eight different kinds of homeowners insurance policies to choose from. Knowing more about each policy type and how they differ from one another might help you choose the policy that best fits your insurance coverage needs.
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Key takeaways
The most common type of homeowners insurance policy is the standard HO-3 Special Form policy.
HO-5 policies offer the broadest coverage of all policy types.
Open peril coverage means losses are covered unless specifically excluded, while named peril coverage means only named loss types are covered.
HO–1
An HO-1 policy is the most basic of all the types of homeowners insurance policies. It only provides coverage for the structure of your home, attached structures like garages, and appliances and home features like carpeting. It does not include coverage for personal property, liability or additional living expenses. Because of those limitations, it’s not as popular as more robust policy options.
HO-1 insurance is a named perils policy, meaning it only covers your home in specific situations, which typically include:
Damage from aircrafts or vehicles
Explosions
Fire and lightning
Hail and windstorms
Riots
Smoke
Theft
Vandalism
Volcanic eruption
Learn more: HO-1 insurance
HO–2
An HO-2 insurance policy is also known as a broad form and covers your home and your personal belongings. Most home insurance companies will cover your personal belongings up to a specified level no matter where they are at home, in your car or somewhere else. HO-2 policies may include liability coverage in some circumstances. To determine if your HO-2 policy includes liability coverage, contact your insurance carrier directly.
Like an HO-1 policy, HO-2 insurance is a named perils policy that covers your home and your personal items from the same circumstances covered by an HO-1 policy. This policy type typically covers the same perils that the HO-1 covers, but usually adds a few additional perils:
Accidental discharge or overflow of water or steam within the home
A falling object
Freezing of pipes and heating and air conditioning systems
Sudden and accidental damage from certain electrical currents
Tearing apart, burning, cracking from some household systems
Weight from ice, snow or sleet
Learn more: HO-2 insurance
HO-3
The most common type of homeowners insurance is the HO-3 Special Form policy, which covers your home, your personal property, liability, additional living expenses and medical payments.
Personal finance and insurance expert Laura Adams says, “An HO-3 is considered the standard coverage. It gives you ‘open perils’ coverage for your home structure, which protects you from all disasters unless the policy lists exceptions. However, you receive ‘named perils’ coverage for personal possessions, which applies to disasters named in the policy.”
Your home and other structures typically have the following perils excluded:
Any animals owned by the insured
Birds, rodents, varmint
Defective construction or maintenance
Earth movement
Flood
Foundation issues
Government actions
Intentional loss
Mechanical breakdown
Mold, fungus, wet rot
Neglect
Nuclear hazard
Ordinance or law
Pet or animal damage
Pollution and corrosion
Power failure
Smog, rust, or corrosion
Theft, vandalism and frozen pipes in vacant houses
Wear and tear
War
Although floods and earthquakes are not covered by a standard HO-3 policy, you may be able to get an endorsement or separate flood insurance or earthquake policy to meet these coverage needs.
Damage from aircrafts or vehicles
Damage from the weight of snow or ice
Damages caused by an electrical current
Explosions
Falling objects
Fire and lightning
Hail and windstorms
Pipes freezing
Riots
Smoke
Theft
Vandalism
Volcanic eruptions
Water damage from plumbing or HVAC overflow
Water heater damage
Learn more: HO-3 insurance
HO–4
An HO-4 policy, also known as renters insurance, is intended for renters who want to insure their personal belongings and get additional coverage, like liability and additional living expenses. An HO-4 is not technically a “homeowners” policy, as renters don’t own their homes, which is why this policy type excludes coverage for the building’s structure.
Renters insurance policies are usually named perils policies that cover the following events:
Damage from aircrafts or vehicles
Damage from the weight of snow or ice
Damages caused by an electrical current
Explosions
Falling objects
Fire and lightning
Hail and windstorms
Pipes freezing
Riots
Smoke
Theft
Vandalism
Volcanic eruptions
Water damage from plumbing or HVAC overflow
Water heater damage
Learn more: HO-4 insurance
HO–5
An HO-5 policy is the most robust option available, covering your home, your personal belongings, liability, additional living expenses and medical payments for others. These policies may also have higher available limits for things like jewelry compared to the more common HO-3 policy. However, not all home insurers offer HO-5 policies and not all homeowners will qualify for an HO-5 policy due to the more particular guidelines.
Adams discusses how an HO-5 policy could be beneficial for individuals with high-value items. She says, “It typically costs more and may not be offered by every insurer but could be worth it if you have many valuable possessions.”
With an HO-5 policy, your home and your personal items are both covered under an open perils policy, which means that it will protect you from anything not specifically excluded in your policy. Some common exclusions include:
Earth movement
Government actions or laws
Infestation of birds, rodents or insects
Intentional loss
Mechanical breakdown
Mold
Nuclear hazard
Pets
Vandalism if the property is vacant more than two months
War
Water damages from floods or sewer backup
Because an HO-5 policy is written on an open perils basis rather than on a named perils basis, it covers more circumstances and can make it easier to file a claim because you do not have to prove that a covered peril caused the damage.
Learn more: HO-5 insurance
HO–6
HO-6 insurance is specifically for condo owners. It covers everything inside your unit, as well as personal liability and additional living expenses. Condo policies also typically include some dwelling coverage, as condo owners may be responsible for the interior walls of their units. Because condo residents only own their unit, and not the whole building, the condo association typically has its own insurance policy that protects common areas, grounds and external parts of the building. Condo owners generally help pay for the association’s insurance in the form of condo or HOA fees.
HO-6 policies are named perils policies which generally protect coverage for:
Damage from aircrafts or vehicles
Damage from the weight of snow or ice
Damages caused by an electrical current
Explosions
Falling objects
Fire and lightning
Hail and windstorms
Pipes freezing
Riots
Smoke
Theft
Vandalism
Volcanic eruptions
Water damage from plumbing or HVAC overflow
Water heater damage
Learn more: HO-6 insurance
HO–7
An HO-7 insurance policy covers mobile or manufactured homes, including trailers, sectional homes, RVs and modular homes. This type of policy provides coverage for your home’s structure, your personal belongings, liability, additional living expenses and medical payments.
The exterior of your home is covered under an open perils policy, which covers any situation that is not explicitly stated in your insurance policy.
However, HO-7 policies cover your personal belongings under a named perils policy. That means your personal items are only covered under a specific list of circumstances, including:
Damage from aircrafts or vehicles
Explosions
Fire and lightning
Hail and windstorms
Riots
Smoke
Theft
Vandalism
HO–8
The last type of homeowners insurance is the HO-8 policy, which is likely ideal for homeowners who have older homes or homes that would be difficult to replace. This includes architecturally significant houses, historic landmark homes or homes built with materials and methods that are not common today. If it would cost more to repair your damaged home than its current value, an HO-8 policy may be a suitable option.
HO-8 policies include the standard coverage for dwelling, personal property, liability, additional living expenses and medical payments. Both your home’s structure and your personal property are covered under a named perils policy. This includes events such as:
Damage from aircraft or vehicles
Explosions
Fire and lightning
Hail and windstorms
Riots
Smoke
Theft
Vandalism
Volcanic eruption
Frequently asked questions
Bankrate’s insurance editorial team analyzed average rate data to identify some of the cheapest home insurance companies in the nation, but the best way to find the cheapest insurance carrier for you is likely to compare quotes from multiple carriers. Your home insurance premiums could vary depending on your coverage selections, risk factors in your area, deductible amount and more.
Homeowners insurance costs vary significantly based on your home’s characteristics, location, your coverage selections and more. However, the average cost of home insurance in the United States is $1,428 per year for $250,000 in dwelling coverage. You might get an idea of how much homeowners insurance costs in your area by researching rates, speaking with local homeowners and comparing quotes.
There are eight types of home insurance. They are classified as HO-1 through HO-8. Each category is designed for a different type of home with its own coverage types.
Whether your homeowners insurance is named peril or open peril depends on the policy you are purchasing and whether your insurance company offers that type of coverage. As a policyholder, you are generally not able to amend the policy terms, but you may be able to turn down specific coverage options in writing. As such, it may be beneficial to speak with a knowledgeable licensed agent in your area.
Home insurance is not legally required at the state or federal level, but it is likely a requirement from your financial institution if you have a mortgage loan or lien on your home. Even if you owe no money on your home, a homeowners insurance policy could still be useful in protecting your finances. In the event of a total or significant covered loss, you wouldn’t need to pay the full cost of repairs out-of-pocket.
Which type of home insurance you should buy depends on the type of home you have and the coverage you want. Many policy names are synonymous with the types of home they cover. For example, an HO-6 policy is also called condo insurance and an HO-4 policy is often called renters insurance. When it comes to single-family homes and townhouses, you may have a little more flexibility on your policy type. In these circumstances, considering your home’s age and features as well as what coverage types you want. Speaking with a licensed insurance agent may help you identify the best policy type for your home and insurance needs.
HUD homes are a great opportunity to get a great deal, but HUD has very different rules for investors and owner-occupants. HUD homes are foreclosures that had FHA loans, which are now owned by the United States government. I used to sell HUD homes as a real estate agent and was a part of hundreds of transactions involving HUD (I mostly invest in real estate now). HUD can be very confusing to those are not familiar with there system, but it makes sense once you know all the rules. There are different rules for investors and owner-occupants. There are also special programs for HUD homes like the good neighbor next door, and the $1 down payment program. We will go over everything in this article!
What are HUD homes?
HUD homes are government-owned foreclosures. HUD stands for the Department of Housing and Urban Development. HUD oversees the FHA loan program, which stands for Federal Housing Administration. FHA loans are low-down-payment loans that are only owner-occupied buyers are eligible for. The loans are obtained from banks, but the government insures them. If the loans go through foreclosure the government will sometimes take over the loan and the property from the bank. The bank has the option to keep the property, and HUD does not approve every FHA insurance claim so not all FHA foreclosures go back to HUD. When HUD takes back an FHA foreclosure they will use their own online bidding system to sell the homes in most cases. They will also use bulk sales (hundreds of millions of dollars of homes) to sell packages of properties.
Where can you find HUD homes?
The most important thing to know about HUD homes is HUDHOMESTORE.COM. HUD lists every house they have for sale on this website and anyone can view it. To search for HUD homes, simply enter the state you are looking in and any other criteria you want to narrow it down with; city, zip code, address, etc. Once HUD accepts a bid they remove the property from Hudhomestore.com. If you see a sign in the yard or property in MLS but can’t find it on Hudhomestore.com they may have already accepted a bid. There are a few other reasons the property may not be on the site including price changes or new appraisals.
Check out the video below to see how to look up and bid on HUD homes:
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How can you submit a bid to buy a HUD home?
HUD has very strict bid periods on who can bid and when. When HUD homes are first listed there is a bid period for owner-occupants, non-profits or government agencies. Investors cannot bid during this bid period, and the length of the bid period varies depending on the home. HUD homes have an appraisal done before they are listed and homes that will go FHA are listed as insured and the properties that won’t go FHA are listed as uninsured.If a property is insured, investors cannot bid for the first 15 days! If a property is uninsured, investors cannot bid for the first 5 days.
When you are looking at a listing on Hudhomestore.com look for the period deadline, it will give the last day owner-occupants, non-profits and government agencies can bid. Investors can place a bid the next day after the period deadline expires. If a property is still on Hudhomestore.com the day after the period deadline expired, it does not mean HUD did not receive an acceptable bid. HUD reviews bids the first business day after the period deadline, and the property could be on the website for a short time in the morning while they review bids.
This can be very confusing the first time you try to process the information, but it gets easier the more you use Hudhomestore.com. The thing to remember is investors can bid on the first day after the period deadline. If you are unsure who can bid, HUD will list who the eligible bidders are on Hudhomestore.com. When investors can bid it will say “All bidders.” A good real estate agent who knows the HUD system can walk you through the process as well.
In fact, you have to use a real estate agent who is approved and registered in the HUD system to bid on HUD homes.
What does FHA insured with repair escrow mean on HUD homes?
HUD does not allow any repairs to be made to properties and typically does not repair any of their properties. However, HUD wants to sell homes to owner-occupied buyers and many HUD homes need some repairs that would not allow them to qualify for FHA financing. HUD uses an FHA repair escrow to help owner-occupied buyers get into these homes. The amount on Hudhomestore.com under FHA repair escrow is the amount that a HUD appraiser has determined it will take for the home meet FHA guidelines. The escrow could be $0, in which case the home does not need any repairs in order to go FHA. If there is any other amount, the home will have to have some work done to qualify for an FHA loan.
The escrow repair amount is added to the buyer’s loan at closing, it is not a gift from HUD. The work is to be done after closing by licensed contractors within 90 days, and the lender will pay out the escrow amount directly to the contractors.
The details of each item that needs repair are listed under the addendum on Hudhomestore.com. The total repairs cannot exceed $5,000 for the FHA repair escrow. HUD adds a ten percent cushion if the repairs cost more than expected, so technically there could be $5,000 in repairs and a $500 cushion for a total escrow amount of $5,500.
If the buyer gets a new appraisal that shows more work is needed, that must be added to the FHA repair escrow.
If the home is marked as uninsured a buyer cannot get a typical FHA loan, but they can use an FHA 203k loan.
Can I use the HUD repair escrow on other types of loans?
No, the repair escrow can only be used on FHA loans.
Can you use FHA 203k rehab loans on HUD homes?
If a home needs more than $5,000 in repairs to qualify for FHA, there is still an FHA option. The FHA 203k rehab loan is a great program that allows a buyer to make repairs after closing and finance them into their loan. There is no limit to the dollar amount of repairs that can be made, but it can be a complicated process. This program can be used on a house with less than $5,000 in repairs as well if the buyer wants to make more repairs than FHA requires. The loan can also be used on uninsurable homes as long as it is marked on Hudhomesore.com that an FHA 203k is being used.
A 203k loan requires two appraisals, one for the as-is value and one for the after repaired value. The loan also takes longer to close and has a few more fees than a normal loan, but it is a great option for those looking to make major repairs.
What is the Good Neighbor Next Door Program?
The Good Neighbor Next Door Program (GNND) is a HUD specific program geared towards EMTs, teachers, firefighters, and law enforcement. HUD designates certain houses for this program and they will give a 50% discount to qualified buyers! In order to find these properties, go to Hudhomestore.com and click on Good Neighbor Next Door Program in the blue box. Then click on your state on the map to the right of the blue box. This will pull up all GNND properties in your state. Do not be surprised if there are not many properties available as HUD designates very few properties for this program.
HUD also has very strict policies regarding who can bid on GNND properties. The buyer must be a full-time employee in their field, work within a certain mileage of the property, and live in the property for three years. Bidding on a GNND is very simple. Your agent submits the full price in the GNND bid period and if HUD accepts your bid, they automatically discount the property 50%. These properties are not always in MLS, so check Hudhomestore.com frequently to find these listings.
HUD does not pay a commission on these properties to the listing or selling agent. Many times the agent representing the buyer will require the buyer to pay a commission directly to the buyer’s agent. If more than one buyer bids on these properties, HUD will randomly select the winner.
HUD bidding timelines
For insured homes:
15-day owner occupant, government agencies, and non-profit only bid period. The first ten days of this bid period HUD collects all the bids and subsequently review them on the next business day. Thereafter for the next five days, HUD reviews any bids received the following day. (not sure if they review them the same day or the day after the bid is received during this time)
Investors can bid on the 16th day the home has been actively for sale. You can see this date by looking at the period deadline. Investors can bid on the next day after this deadline.
If the price is lowered, the owner-occupant period does not start over. Investors can bid right away.
For uninsured homes:
7-day lottery bid period. Government agencies and non-profits only can bid. The home is listed on HUDhomestore, but not on the MLS.
5-day owner occupant, government agency and non-profit only bid period. HUD accepts bids the first five days and opens them the next business day. Investors can bid on the 6th day.
If the price is lowered, the owner-occupant period does not start over. Investors can bid right away.
Are HUD homes listed for sale on the MLS?
HUD will list some properties differently depending on the repairs needed and potential buyers’ qualifications. On uninsured properties, HUD will list them on Hudhomestore for 7 days, but the only eligible bidders are non-profits and government agencies. During this 7 day period called the lottery period, some asset management companies will list the home in MLS and others will not.
Another program HUD uses is the Good Neighbor Next Door Program(GNND). They sell designated houses to firefighters, police officers, teachers, and EMT workers. There are many special requirements that must be met to purchase a home in this program, one of them is you have to occupy the home for three years. Since the property is not eligible for all buyers, some asset management companies list them in MLS and some do not. If you see a property in Hudhomestore, but it is not in MLS, check to see who the eligible bidders are.
How can you submit a bid?
A buyer must use a real estate agent registered with HUD to submit a bid on a HUD home. If you are shopping for an agent and you are interested in HUD homes, ask your agent if their company has a NAID number. If they don’t have a NAID number, then they can’t submit a bid for you. Any office can get a NAID, but it can take up to 6 weeks to get a NAID number from HUD. If your agent’s office has a NAID, they can register on Hudhomestore and submit a bid for you very easily. The bid is submitted online and no documents are uploaded with the bid. HUD does require the social security, tax id or EIN number for the purchaser to submit the bid.
What happens after a bid is submitted?
HUD will only respond to your agent through email if your bid is accepted. If your bid is not accepted, HUD will not notify your agent, but your agent can look up the bid status. Your agent has to log in to HUDHOMESTORE.COM and go to bidder functions. They can search for bids they submitted, and HUD will list the bid status. It may say reviewing bids, accepted, canceled or other bid accepted. If your bid was not accepted and no other bids were accepted you can bid again as many times as you like. In some cases, HUD may counter your offer, but their counter is only a notification informing you of what net price HUD will accept. If you enter a bid that nets HUD the counter price or more, they will accept it as long as no one else submits a higher bid.
How low of a bid will HUD accept?
A buyer can submit any bid amount they want on a HUD home, but HUD has certain guidelines they will accept. Those guidelines change in different areas of the country and for different properties. The asset management companies are given guidelines from HUD on what bid amount they can accept. Usually, they are allowed to accept a net amount of around 10 to 12 percent less than asking price (in my area). The net amount is what HUD will receive after commissions and closing costs are paid.
HUD always pays the listing broker a 3% commission and the selling broker can get up to a 3% commission. If HUD is paying a 6% commission total, then that net amount they will accept has dropped to 4 to 6%t less than the list price. If the buyer wants closing costs, then that amount drops even further. If a property becomes an aged asset, meaning it has been on the market for more than 60 days, HUD may accept lower bids. In different parts of the country, HUD may also accept 20% less than asking price at the beginning of a listing period.
Here is a breakdown of what HUD may typically accept:
Asking Price: $100,000
Commissions: $6,000
Buyer Closing Costs: $3,000
Net to HUD: $91,000 or 91% of the list price
In the scenario above HUD would most likely accept a bid slightly lower than the list price of $100,000 like $98,000. If the buyer did not need closing costs paid, the bid could be lowered by $3,000 and HUD would still accept it because the net money going to them is still the same.
There are also occasions when a low bid that does not meet HUD guidelines is accepted. This usually happens on aged assets that have been on the market over 90 days. The asset management company can ask for special approval from HUD on these low bids. When this happens your agent may receive a counter from HUD in the morning and then an acceptance later in the day. This is because the asset management company could not accept the bid right away, but they sent it to HUD and it was approved later in the day.
Does HUD prefer cash offers?
Many buyers assume a cash offer will get accepted over a financed offer since cash offers have a better chance of closing. However, HUD does not care. They treat all offers the same whether they are cash, FHA, conventional, USDA, VA or even a 203k FHA rehab loan. HUD will pick the highest net offer to them, that is all they care about.
How soon should investors submit a bid to HUD?
The key to an investor getting a HUD home is speed. There are many investors waiting for HUD homes to make it to the investor bid period, and most good deals will get bid on the first day an investor can bid. On uninsured homes, there is a trick investors can use to gain an advantage over other investors. HUD opens bids on the next business day after the 5-day owner occupant bid period is over. HUD does not open bids first thing in the morning, they usually open them mid-morning or later depending on how busy they are. At the beginning of the 6th day, an uninsured HUD home will be available for investors to bid on, even though HUD may be accepting an owner occupant bid later in the day.
Investors should always try to get their bid into the system on that 6th day because HUD homes tend to fall out of contract more than other properties. If an owner-occupant cancels their contract, HUD will move on to any backup offers in their system that are an acceptable price before they put the home back on the market. If the house comes back on the market, an investor who bid on the 6th day could have their bid accepted, before any other investors get a chance to bid on the home.
Should you mark hold as a backup offer?
YES! HUD asks all bidders if they can hold their offer in a backup position. This means if an accepted offer cancels, they will automatically accept the next highest bid as long as it is an acceptable amount. It does not hurt to mark this box as you are under no obligation to continue with the contract if HUD accepts your bid. If HUD lowers the price on a property, they will review bids they have already received to see if they are now an acceptable amount after the price change. Your bid could be accepted before anyone else gets a chance to submit a new bid after the price change.
How to send in a contract after your bid is accepted
If HUD accepts your bid, they will notify your agent by email and give your agent instructions on how to send the paperwork to HUD. Your agent will have 48 hours to send the original documents to HUD (HUD may be allowing electronic signatures in some areas now). That 48 hours is extended for weekends and holidays. HUD has its own sales contract, addendum, and disclosures. They will require a pre-qualification letter or proof of funds letter if you are paying cash, and your earnest money must be sent with the package.
HUD requires certified funds for your earnest money. Your agent should be able to help you out with the package and explain all the details. There are a couple of very important documents to pay attention to that I will go over in the next sections. If your package is going to be late, make sure your agent contacts HUD and tells them it will be late and HUD may give you a little extra time. If your package requires corrections, HUD will email your agent and usually, corrections are due within 24 hours.
Buyer Select title company update
HUD has switched to a buyer agent select system where buyers now choose the title company. Buyers choose the title company for the entire transaction and can choose any title company they want. HUD will get the title company registered with HUD, once a bid is accepted and a title company is chosen. The asset management companies are handling things differently with some having the listing agent hold the earnest money and some requiring the buyer to send in the earnest money to HUD. Make sure you read the instructions thoroughly for what HUD requires.
How to complete an inspection on a HUD home
HUD has a different inspection policy than most REO sellers. When HUD has a property listed, they do not turn on any of the utilities. When HUD signs your purchase contract, they will email your agent a signed copy with the appraisal and a utility turn-on request form. You have 15 days from the time HUD signs the contract to do your inspection, and they allow you a three-day window to turn on the utilities. It is usually best to make your three-day inspection window as late into the 15 day inspection period as possible. The reason is you have to send in the form to HUD’s property preservation company, wait for them to approve it and then get utilities on in your name. It can easily take over a week to get the form back and get utilities on so make sure your agent turns in the request form as soon as possible.
HUD does not pay for the utilities or any turn on fees and they do not de-winterize the property. In fact, if you live in an area that requires winterization, you will have to send in $150 with your turn on request form if you want to turn on the water during the winter season. Most areas require the winterizations from 10/1 to 4/30. This fee is for the property preservation company to re-winterize the property after you complete your inspections. If HUD found the property’s plumbing system did not hold pressure during an air test, they will not allow you to turn on the water.
If you find issues during your inspection, you have two choices; cancel the contract or proceed with your contract knowing HUD won’t repair anything. They are very clear HUD homes are sold in as-is condition, and they will not make any repairs, even if the lender requires it. They are also very clear that they will not return your earnest money if you find inspection issues that cause you to cancel your contract. As I said earlier, HUD does an inspection before listing each property, and the basic results are listed on HUDHOMESTORE.COM. To find the inspection, look under addendum on HUDHOMESTORE and you will see a document called PCR. This will list the general condition of the plumbing, electric, HVAC and roof. Do not depend on these inspections to be perfect! Many times the HUD inspectors are only able to do a visual check since the utilities are not on.
How to do an appraisal
HUD does an appraisal on every home before they list it. HUD used to list every home at the appraised value, but that changed recently. Owner-occupants used to be able to use this appraisal if they are going FHA, but now all buyers must get a new appraisal. If your appraiser requires the utilities to be on for the appraisal, you have to follow the same procedure to turn on utilities as you did for the inspection. The best practice is to schedule the appraisal at the same time as the inspection if possible. The biggest issue I see with appraisals is the plumbing. HUD’s inspector will do a pressure check on the plumbing system before the home is listed. If the pressure test fails, it means there is a leak somewhere in the system.
That also means HUD will not let you turn on the water for your inspection or appraisal. If the system fails the pressure test and your appraiser requires the water to be on, you are out of luck. HUD won’t repair the lines and no repairs can be made before closing. Please pay attention to the HUD inspection before bidding and talk to your lender about the appraisal process. I have seen many deals fail because the water could not be turned on for appraisals on HUD homes. If you have already had your bid accepted and you have run into this issue, there are a few solutions. Many times a lender can escrow for plumbing repairs or a portfolio lender may be able to do the loan without utilities being on.
The other issue that may come up is an appraisal comes in low on a HUD home. This is rare, as usually HUD homes are priced low enough that an appraisal value is not an issue. If the appraisal does come in low or the appraisal requires repairs, HUD does not make repairs or price adjustments. Again the only choice will be to cancel or continue with the original bid price and terms.
Closing
Different asset management companies give different time frames for closing. Some allow cash buyers 30 days to close and financed buyers 45 days to close. Other companies allow 45 days for cash and financed buyers. If you must have an extension due to your lender or other fault of the buyer, then HUD will charge you for an extension. Typically the fee is $375 for a 15 day extension day but can be lower for lower-priced properties. The exact fee schedule is listed on one of the HUD forms you will sign. HUD will grant two extensions, but if a third is needed HUD will need proof that closing is eminent or they may not approve the extension.
Another difference with HUD is they do not pay for the buyer’s title insurance. Make sure you factor that into your figures when bidding on a HUD home. HUD does not require title insurance, but I highly recommend you get it. HUD does the best they can, but they are dealing with other lender’s homes that were foreclosed on and had FHA financing. Sometimes a title issue will slip through the cracks, and if you don’t have title insurance it can be a nightmare to get it cleared up. I sold a HUD home a few years ago that was owned by a large bank. 6 months after the sale, we learned the bank did not have clear title. The title company was able to clear it up, but if the buyers did not buy the insurance it would have been on them to figure out how to get a clear title.
Can investors get their earnest money back?
HUD is very clear that they treat investors differently than owner-occupant buyers. They feel investors are more experienced in real estate and should do their due diligence before making an offer. HUD makes investors sign a document saying their earnest money will not be refunded for inspection issues.
HUD may return half of an investor’s earnest money if their loan is denied, but remember it is very difficult for an investor to get their earnest money back from HUD if they cancel the contract. The earnest money amounts are $500 for contracts under $50,000 and $1,000 for contracts over $50,000.
Can owner-occupied buyers get their earnest money back?
HUD has very strict policies on earnest money returns and forfeitures. Investors have a very difficult time getting their earnest money back, but it is a little easier for owner-occupied buyers. HUD lists many reasons why they will return owner-occupants earnest money, the most common being loan denial. When you sign your contract, there will be a form called earnest money forfeiture policy. Make sure you read this carefully and understand exactly under what conditions HUD will return earnest money to buyers.
If an owner-occupant wants to get their earnest money back due to an inspection issue, make sure the inspeciton issue was not already listed on the HUD PCR (property condition report). If HUD already disclosed a problem with the house, HUD will not return the earnest money because of that problem.
How does HUD define owner-occupied?
The only way a buyer can be considered an owner-occupant is if the person living in the home will be on the deed when HUD sells the home. That occupant has to live in the home for at least a year and cannot buy any more HUD homes as an owner occupant in that first year. They must live in the home more than 50% of the time. You cannot simply leave the home vacant or leave a unit vacant. You must live there.
What happens to investors who commit fraud?
HUD makes owner-occupants sign a document confirming they are an owner occupant and if they are found to be an investor, HUD can fine them $250,000 with prison time. It is a federal crime to misrepresent yourself as an owner occupant when your true intention is as an investor. Not only can the buyer be fined and sent to prison, but the buyer’s agent and their entire office can also lose their ability to sell HUD homes. If you think you won’t get caught, remember there are many investors who would love to bid on HUD homes but can’t because of owner occupant rules, and they have no problem turning in other investors they see breaking the rules. Listing agents are also encouraged to keep an eye out for investors posing as owner-occupants.
Can repairs be made prior to closing on HUD homes?
HUD is very clear that they will not make any repairs prior to closing and the buyer is not allowed to alter the home in any way before closing. Some buyers may think it is not a big deal to fix a small plumbing leak or do some painting before closing. It is a very big deal! HUD homes are federal property and it is a felony to make any alterations before you own the home. If HUD finds out any repairs were made, they usually cancel the contract on the spot, take the buyer’s earnest money, investigate the buyer’s agent to see if they knew about it and then consider charges depending on the severity. Do not make any repairs, change the locks, remove signs or anything from the home before closing!
Owner-occupants have a distinct advantage when bidding on HUD homes. HUD allows owner-occupants to bid on HUD homes before investors can bid on HUD homes. On FHA-insured HUD homes, there is a 15-day owner occupant only bid period. Without going into the detail that I do in my other articles, FHA-insured HUD homes can get an FHA loan if the property needs less than $5,000 in repairs. On FHA-uninsured HUD homes, there is a 5-day owner occupant bid period. FHA-uninsured HUD homes have more than $5,000 in repairs needed and cannot go FHA unless you use an FHA 203K loan.
Under what circumstances can an owner-occupant sell a HUD home prior to living in it a year?
HUD allows owner-occupants to move out of a HUD home prior to living in the home for a year if they meet certain guidelines. It is always best to call HUD if you have to move out of a HUD home early as an owner occupant. If an owner-occupant has a change in location for a job, a death in the family, divorce, loss of a job or other extenuating circumstances, HUD may ease the owner-occupancy requirement.
How does the $1 HUD home and $100 down payment program work?
HUD will sell some of their homes for $1. Yes, that is not a typo, but do not expect to get a HUD home for that price. HUD only sells certain homes for $1 and they only sell them to non-profits or government agencies after the home has been for sale for an extended period of time. I never saw a home sell for $1 in my market the entire time I was listing HUD homes.
HUD also has a $100 down payment program that they occasionally offer. It is not available in every state and it is very rare that a buyer only needs $100 to buy the home. There are almost always other costs.
Conclusion
HUD homes can be complicated, but if you have a knowledgeable agent and lender they can be an amazing opportunity. If you happen to be eligible for the good neighbor next door program you may be able to buy a HUD home for 50% off! Just be careful pretending to be an owner-occupant when you are not, and make sure you understand the inspeciton and earnest money riles with HUD homes!
In my course The Complete Blueprint, I go even more in-depth on how to buy HUD homes. The Complete Blueprint is my most extensive course it covers every single aspect of my real estate business and how to replicate it yourself, including a 300-page guide, videos, call to actions, live coaching directly from me, an much, much more.
Inside: Do you have a passion for something, but don’t know what to do with it? This guide will help you find a career that is perfect for you and match your interests and values.
This is something all of us wonder, right?
What should I do for a living?
Am I doing what I should do as a career?
Did I make the right decision with my career?
Or is it time to switch gears and find something that I love to do and make money at the same time?
I have been asking this question so many times, I finally decided to make a list of answers.
This is not just for those who want to know what they should do with their lives; it’s also for anybody looking for some new ideas on how they can fit into a career that will bring them satisfaction and happiness.
Recently, my middle schooler was asked, what do you want to do beyond high school? And he looked at me shell shocked.
Remarkably, this question of what should I do for a living is a doozy to answer. So, don’t feel alone if you cannot answer it… yet.
How do I find out what I should do for a living?
The first step to finding out what you should do for a living is to identify your skills and interests.
What are you good at?
What do you enjoy doing?
Once you have a better idea of your strengths and passions, you can start researching your options.
The bottom line…you must be happy to spend the next decades doing what you picked.
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Tips for finding a career you love
When you’re looking for work, it’s important to remember that there are many different ways of making a living. You can be an artist or designer in your own home studio, or run your own business. The key is to figure out what your interests are, and then find a way to use those skills in the work you love doing.
The goal of this article is not just to help you find a job that pays the bills, but to help you find work that is satisfying, meaningful, and fun.
Here are some tips to keep in mind as you go through the process of figuring out what you want to do with your life.
#1 – Focus on You
Don’t listen to people who tell you that you should do one thing. If your parents want to see you be a doctor, or if your friends think it’s important for you to have a “real” job, you might be tempted to listen to them.
Don’t let anyone else tell you what your passion is, or how you should spend your life.
Determine what’s important for YOU!
As you go through the process of figuring out what to do with your life, keep in mind that there are many different ways to live a happy and fulfilling life. You don’t have to be a doctor to help other people. You don’t have to work in an office all day, every day.
Do what you love and the money will follow.
If you do something that you love, you will never have to work a day in your life. If you do what you love, and are good at it, people will pay for that service or product.
Do what makes YOU happy. If you’re not happy, no one else will be either.
Don’t let anyone tell you what to do with your life. You should never have to justify your decisions or choices to anyone. You are the only one who has to live with your decisions and choices.
Do what you want, not what other people want for you or think that you should do. Period.
#2 – Identify What Interests You & Makes You Tick
There are a variety of ways you can go about finding out what interests you. You can read books and articles on different topics, talk to people with various careers, or take online quizzes and assessments – like this what should I do for a living quiz.
The first step to finding the right career for you is to identify what interests you intellectually.
What fascinates you?
What makes you feel like you are not working?
How do you want to spend your free time?
Once you know what fascinates you, the next step is to figure out how you can turn this into a career. Then, pursue your career interests relentlessly so you can reach your full potential.
#3 – Uncover your Strengths
Identifying your strengths is the key to finding opportunities that will be a good fit for you and enable you to reach your full potential.
Here are some things to take note of:
Pay attention to what you enjoy doing.
Notice when you feel most energized and engaged.
Consider what you do well naturally.
Reflect on feedback you’ve received from others.
Ask yourself how you can use your strengths more often in your current role or situation.
Once you know what they are, make sure to pursue opportunities that are based on them. This will help you stay focused and motivated in your work and life.
#4 – Match Your Values With Your Interests
Your values are the things that are most important to you in life. They guide your decisions and actions. They direct you to live a life that is meaningful to you.
There are many ways to identify your values. One way is to think about what is most important to you in different areas of your life, such as your relationships, work, leisure activities, and so on. Another way is to think about what you would like people to say about you when you are no longer here. What do you want them to remember about you?
Once you have identified your values, it can be helpful to write them down or share them with someone who will support and encourage you in living according to them.
When you link your values and interests together, it creates a powerful combination that can help you to live a more fulfilling and meaningful life.
When you know what is important to you (values) and what makes you happy and excited (interests), it becomes much easier to make decisions about how to spend your time and energy.
For example, let’s say one of your values is “family” and one of your interests is “cooking”. You could combine these by cooking meals for your family members or friends. Not only would this be enjoyable for you (because it aligns with your interest in cooking), but it would also be meaningful because it would be an act of love and care for those closest to you (which aligns with the value of family).
#5 – Consider your Lifestyle
Are you okay living below your means? Or do you prefer to flash your cash?
If you tend to spend money frivolously or struggle with saving money, then you need to be a high-worth earner. If you are okay living stingy, then a modest salary will probably work for you.
Keep in mind your lifestyle and what would be the best fit for you.
Consider if the hours are flexible, if you’d have time for hobbies and other interests, and how the commute looks. Sometimes rethinking your opportunities can give you a better perspective on what’s truly important to you.
Other Questions to Ponder:
Do you want a job that will consume most of your time?
Do you want a job where you can have a good work-life balance?
Are you okay with being tied to one location or have the flexibility to move around?
Are you willing to travel for work? If so, how often and how far?
What are your salary expectations? Are you looking for health benefits, paid vacation, or other perks?
Ultimately, there are many factors going into your decision. When considering a new potential career opportunity, it’s important to think about more than just the paper qualifications and the salary.
#6 – Spend Time Doing your Research
The best way to find a career you love is to first figure out what it is that you’re passionate about. What are the things that make you excited to get out of bed in the morning? Once you know what your passions are, research careers that align with those interests.
This just doesn’t happen overnight.
In fact, I recently went back to something of interest to me years ago because it would provide the time freedom I desired.
Spend time doing your research and following all the steps we cover in this post.
#7 – Find a career that matches your skills and interests
It can be difficult to identify what you want to do with your life, especially if you’re feeling lost or uncertain.
However, once you’ve identified what areas of interest might suit your skillset, try to link these interests with some type of career options.
Consider how your interests would fit into potential careers before choosing one.
It’s important to consider how your unique passions would fit into certain occupations or fields of work before choosing one. This will help you find a career that is satisfying and fulfilling. Consider the skills and interests you have and search for job openings that match them.
Start by researching the field you’re interested in.
# 8 – Talk to people in the field
There are a few ways to find people to talk to about your career interests. You can start by talking to friends and family members who might know someone in the field you’re interested in. You can also look for professional organizations related to your field of interest, or search for networking events in your area.
When you’re talking to someone about their career, it’s important to ask questions that will help you learn more about the field and whether it’s a good fit for you. Some questions you might want to ask include:
What does a typical day look like?
What is the most challenging part of the job?
What are the biggest rewards of the job?
These people will have better insights than what you can find searching the internet.
#9 – Get experience in the field
Oh, I cannot tell you how important this step is!
You have heard a similar story… my son dreamed of being an engineer and we planned to send him to engineering school. After his internship, the thought of being an engineer sucked the life out of him. Glad we learned this lesson before we spend money on his college education.
That is why I believe schools like this are so important to get real-life experience doing what you think you want to do for a living.
Consider internships or volunteer work to get your foot in the door.
Gaining experience can help you learn more about a particular field or company, and whether or not it’s the right fit for you.
#10 – Be open to change
Here are some things to keep in mind with change.
1. Change can lead to new opportunities: When you’re open to change, you’re also open to new opportunities. Embracing change can help you find a new job, start a business, or even move to a new city.
2. Change can help you grow: Personal growth is important for a fulfilling life. Change can challenge you and push you out of your comfort zone, leading to personal growth.
3. Change can be exciting: If you’re bored with your current situation, change can be exciting. It’s a chance to start fresh and experience something new.
4. Change can be positive: Even if it’s difficult, change can ultimately be positive. It can lead to improved relationships, increased happiness, and a better life overall.”
15 Most Popular Working for a Living Jobs
Many people want to know what they should do for a living.
For some, it’s not as easy as just “doing what you love.” There are definitely jobs out there that allow you to do what you love and make a living.
But first, we need to talk about the types of work available.
All salary estimates from Salary.com.
Registered Nurses
Registered nurses are in high demand and make a good living. They work with patients to assess their health, provide treatments, and help them recover.
Average Pay: $65k-70k per year
Education Needed: You need to have a nursing degree from an accredited school. You will also need to pass the National Council Licensure Examination for Registered Nurses (NCLEX-RN)
Police Officers
Police officers are responsible for upholding the law and maintaining public safety. A successful career in law enforcement requires strong communication skills and the ability to stay calm under pressure.
Average Pay: $54k-72k per year
Education Needed: Requires a college degree
Security Officer
More people are looking for security officer jobs as the world becomes increasingly dangerous. Security officers are in high demand and are usually the first responders in an emergency situation. It’s a challenging and rewarding career that can make a difference in people’s lives.
Average Pay: $32k-53k per year
Education Needed: Depends on their background and previous experience.
Real Estate Agents
If you’re looking for a job that’s in high demand, consider becoming a real estate agent. With the right education and licensing, you could be helping people buy and sell homes in no time. You must be comfortable marketing yourself and closing sales.
Average Pay: $38k-140k per year
Education Needed: Real estate agents need to be licensed in order to work. The real estate agent licensure test has a written and practical exam that must both be passed. In order to pass, you will need to know about contracts, financing, legal issues, and more.
Nursing Assistant
One of the most popular jobs in America is nursing assistant. It requires little training and pays relatively well. The work can be demanding, but it is also rewarding, and many nursing assistants feel a sense of satisfaction from their work.
Average Pay: $29k-41k per year
Education Needed: The Nursing Assistant job requires a high school diploma or equivalent, on-the-job training, and certification.
Delivery Driver
One of the most popular jobs in America is being a delivery driver. There are many positions for delivery drivers with different companies. Popular companies to work for include UPS, FedEx, and Amazon.
Average Pay: $39k-54k per year
Education Needed: Minimal. To become a delivery driver, you need to have a valid driver’s license and be able to lift heavy objects.
Firefighter
The most popular jobs in the United States vary from year to year, but there are always a few constants. Among these are firefighters, who protect lives and property from fires and other emergencies. They undergo rigorous training and must be physically fit to do the job.
Average Pay: $54k-94k per year
Education Needed: To become a firefighter, you need to have completed high school and be at least 18 years old. You will also need to pass a physical test and complete a training program.
Customer Service Representative
A customer service representative is the front line of a company and often the first interaction a customer has with the brand. The customer service representative’s job is to handle customer complaints, provide product information, and handle other inquiries. In order to be a successful customer service representative, one must have excellent communication skills and be able to stay calm under pressure.
Average Pay: $28k-44k per year
Education Needed: Minimal. Most require on-the-job training.
Dental Assistants
Dental Assistants are needed in every dental office. They help the dentist chair-side and perform a variety of tasks such as: take X-rays, prepare patients for treatment, sterilize instruments, and more. The Bureau of Labor Statistics projects that the number of jobs for Dental Assistants will grow by 18% from 2016 to 2026.
Average Pay: $32k-50k per year
Education Needed: To become a dental assistant, you will need to complete an accredited program and pass certification exams.
Nanny
One of the most popular jobs, and one that is likely to continue being in high demand, is nannying. To become a nanny, it is important to have experience with children and to be comfortable caring for them.
Average Pay: $37k-51k per year
Education Needed: You should also be CPR certified and have a clean background check.
Medical Assistants
A medical assistant is responsible for a variety of tasks in a doctor’s office, such as handling insurance claims, scheduling appointments, and helping the doctor with examinations.
Average Pay: $33k-44k per year
Education Needed: The job requires certification from an accredited program and on-the-job training.
Home Health Aides
Being a home health aide can be a rewarding career. Home health aides assist people who are unable to care for themselves in their own homes. They may provide basic needs such as bathing and dressing, or they may provide more specialized help, such as caring for someone who has Alzheimer’s disease.
Average Pay: $23k-33k per year
Education Needed: In order to be a home health aide, you need to have a high school diploma or equivalent, be at least 18 years old and have a driver’s license.
Personal Assistants
Being a personal assistant is a profession that helps people with various tasks. These tasks can include things like preparing meals, cleaning, and running errands. There are many different types of personal assistants, but all of them must have good communication skills and be able to multi-task.
Average Pay: $50k-83k per year
Education Needed: None
Graphic Designer
A graphic designer creates visual concepts, using computer software or by hand, to communicate ideas that inspire, inform, and captivate consumers. They develop the overall layout and production design for advertisements, brochures, magazines, and corporate reports.
Average Pay: $39k-65k per year
Education Needed: Many hold a bachelor’s degree in graphic design or related fine arts field.
Marketing Manager
A marketing manager is responsible for planning and executing marketing campaigns that promote a company’s products or services. They must have a strong understanding of marketing principles and be able to develop creative strategies that will engage consumers
Average Pay: $47k-94k per year
Education Needed: Usually need a least a bachelor’s degree, but the experience is more important.
High Paying Career Opportunities that Pay Over $100k a Year
There are many popular career choices that people will argue about. For example, which is the best job? This section covers jobs that pay over $100000 a year.
These jobs typically have six-figure salaries and require years of schooling and training.
Software Engineer
A software engineer is someone who designs, creates, tests, and maintains the software that makes computers work. They design, develop, test, and maintain the software that makes our lives easier. As technology advances, the job of a software engineer becomes more and more important. Writes code, tests, and debugs programs and perform a variety of complicated tasks.
There is a high demand for software engineers in the airline industry. Pilots need software engineers to design, develop, and maintain the software that controls the aircraft. They also need software engineers to help with the maintenance and troubleshooting of the software.
Average Pay: $65k-130k per year
Education Needed: Requires a college degree. Many have master’s degrees as well. To become a software engineer, one must have a strong foundation in mathematics and computer science.
Database Administrator
A database administrator is responsible for designing, implementing, maintaining databases, and troubleshooting databases while ensuring their availability 24/7/365. They work with clients to understand their needs and create databases that meet those needs. Database administrators need strong technical skills, as well as good communication and problem-solving skills.
Average Pay: $97k-150k per year
Education Needed: May require a bachelor’s degree in area of specialty or require certification.
Investment Banker:
A career as an investment banker can be quite fulfilling, as you will be responsible for helping companies raise money by issuing and selling securities. You will need to have a good working knowledge of financial markets, as well as excellent communication and organizational skills. As well as provides analysis of opportunities and potential investments, assists clients with the formulation of investment proposals, and provides guidance on the structuring and negotiation of transactions.
Average Pay: $56k-110k per year
Education Needed: College degree is typical and may require an advanced degree.
Air Traffic Controller
Air Traffic Controllers work in airports to ensure safe and efficient air travel. They monitor aircraft and make sure they follow all the necessary safety procedures. They also direct the movement of flights and keep an eye on traffic congestion. An air traffic controller is key for the safety of the pilots and passengers.
Average Pay: $54k-120k per year
Education Needed: Requires certification from the Federal Aviation Administration (FAA).
Petroleum Engineer:
There is an increasing demand for Petroleum Engineers. They are responsible for the exploration and production of oil and gas and work in a variety of industries, including energy, mining, and transportation. They develop plans to extract oil and gas from deposits below the earth’s surface and new ways to extract oil and gas from old wells.
Average Pay: $82k-120k per year
Education Needed: Requires a bachelor’s degree in engineering. May specialize in reservoir engineering, drilling engineering, or production engineering.
Anesthesiologists
Anesthesiologists are responsible for the care of patients during and after surgery. They monitor patients to make sure they are safe, help them breathe, and make sure they are comfortable.
Average Pay: $310k-520k per year (most anesthesiology assistants make well over $100k)
Education Needed: Requires a bachelor’s degree. Then, medical schools are offering anesthesiology education.
Airline Pilots
Being an airplane pilot is a very demanding job. Pilots need to be able to stay focused for long periods of time while flying. They also need to be able to make quick decisions while flying. Pilots also need to be able to multitask while flying. With travel demand constantly growing, there will be a growing need for pilots.
The airline pilot profession is a very demanding one that requires a great deal of education and training. It takes many years of dedicated study to become a qualified airline pilot.
Average Pay: $125k-163k per year
Education Needed: In order to become a certified pilot, pilots must first complete an accredited undergraduate program. After that, they must complete a professional pilot training program that can last anywhere from 1 to 4 years. Finally, they must pass a certification.
Psychiatrists
There are many different types of psychiatrists and their job duties vary. Psychiatrists are typically employed as full-time employees in hospitals, clinics, or private practices. A psychiatrist’s job duties may include diagnosing mental disorders and providing treatment.
Average Pay: $190k-300k per year
Education Needed: Usually required to have a graduate degree in psychiatry and pass a psychiatric board examination.
Orthodontists
Orthodontists are a type of doctor who specializes in the treatment of teeth and jaws. They use orthodontic appliances (braces and retainer devices) and other treatments to correct problems with teeth and jaws. Orthodontists typically work in private clinics and hospitals.
Average Pay: $100k-210k per year
Education Needed: Required to have a four-year undergraduate degree in dental hygiene, dental medicine, or dental technology. After completing an orthodontic residency, they must pass the American Board of Orthodontics (ABO) license examination.
Day Trader
A day trader is someone who makes a living by trading stocks, commodities, or currencies. They do this by buying and selling stocks, commodities, or currencies at the right time, and making a profit. This means that they are constantly on the lookout for opportunities to make money. A day trader typically works from home and may use a computer, telephone, or other electronic devices to trade.
Average Pay: $65k-120k per year
Education Needed: Required None required. However, many have a background in finance or economics.
Hedge Fund Manager
A hedge fund manager is a person who manages hedge funds. Hedge funds are investment pools that are used to protect investors from losses. Hedge fund managers make money by investing money in different types of securities.
Being a hedge fund manager is a very demanding job. It requires a lot of skill, knowledge, and experience. A hedge fun manager must be able to analyze financial data and make decisions quickly. He or she must also be able to communicate with clients and other employees of the hedge fund.
Average Pay: $87k-131k per year
Education Needed: Hedge fund managers must have a strong educational background. Studying finance or economics is usually necessary.
Web Developer:
A web developer is responsible for creating and maintaining websites. They work with clients to understand their needs and create a website that meets those needs. Web developers need strong technical skills, as well as good communication and problem-solving skills.
Average Pay: $97k-140k per year
Education Needed: College degree required. Must have certifications as well.
Network Engineer
A network engineer is responsible for designing, implementing, and maintaining networks. They work with clients to understand their needs and create networks that meet those needs. Network engineers need strong technical skills, as well as good communication and problem-solving skills
Average Pay: $73k-120k per year
Education Needed: College degree required. Must have certifications as well.
Trade Jobs that Pay A lot More than Minimum Wage
Trade jobs often come with good pay. This is because they require specialized skills and training. Some of these jobs include welders, plumbers, and electricians. Many trade jobs also come with good benefits packages. This includes things like health insurance and retirement plans. Some even offer the choice to join a union.
For example, welders and power plant operators can make an average of $23 an hour. Plumbers and electricians can make an average of $30 an hour.
Power Plant Operator
Aircraft Technician
Welders
Plumber
Construction Manager
Electricians
Real Estate Appraiser
HVAC Technician
Elevator Mechanic
Radiation Therapists
Boilermakers
Most Needed Job Opportunities
There are a number of jobs that are on-demand and in high demand right now. These jobs may have different requirements or be in higher demand in certain areas, but they all offer the potential to make a good living doing something you love.
There are many trade jobs that are in high demand right now. This means that there are more job openings than there are people to fill them.
This list of the top five jobs in demand right now was formed with the help of Best Colleges.
Nurse Practitioner
A Nurse Practitioner is a type of doctor who helps patients with a wide range of health problems. They work in a team with other doctors and nurses to care for patients.
Nurse Practitioners are trained to diagnose and treat a wide range of health problems, which can include everything from common colds to more serious diseases.
Average Pay: $100k-140k per year
Education Needed: Medical training is beyond what a registered nurse needs. A Master’s in nursing is required as well as state licensure.
Genetic Counselor
A genetic counselor is a healthcare professional who helps individuals and families understand and adapt to the medical, psychological, and social implications of genetic disorders. They work with patients to provide risk assessment, education, and support for inherited conditions.
Genetic counselors are poised for rapid growth and long-lasting job security due to advancements in genomics and genetic testing.
Average Pay: $67k-99k per year
Education Needed: Master’s degree in genetics and board certification.
Occupational Therapy Assistant
An occupational therapy assistant (OTA) is a healthcare professional who helps people regain and improve the skills they need to live and work independently. They provide rehabilitative services to patients who have sustained an injury, have a disability, or are experiencing physical and/or cognitive changes.
This may include helping individuals improve their mobility, balance, and coordination through exercise programs; improving the social skills of children with developmental challenges; working with people who have mental health conditions to help them participate in daily activities; or providing support to elderly patients who want to remain independent.
Average Pay: $52k-76k per year
Education Needed: Associate’s degree and field experience.
Physical Therapist Aides
Physical therapists aides help patients who have physical problems such as bed sores, fractures, and paralysis. They work with the physical therapist to help the patient move and perform activities of daily living. Typically duties include helping patients with exercises, massages, and other treatments.
Average Pay: $30k-38k per year
Education Needed: Physical therapist aides must have a high school diploma or GED and pass a criminal background check.
Information Security Analyst
The information security analyst job market is projected to grow by 33% over the next three years, making it one of the fastest-growing job markets. Information security analysts are vital to the protection of data and are responsible for the protection of computer systems and networks from cyberattacks and data breaches. They work to protect an organization’s most valuable assets- its data.
Average Pay: $70k-103k per year
Education Needed: Most have a Bachelor’s degree in software engineering or computer science. Also, many have certifications.
Thinking to Follow Your Passion – Cool Jobs to Do
There are a variety of jobs that you may not have considered that can be a great fit for you.
If you’re looking for a career change or just want to try something new, here are a few jobs you may want to consider. These jobs offer great opportunities and allow you to do what you love every day.
Video Game Programmer or Designer
If you love playing video games and have some creativity, you may want to consider becoming a videogame designer. This job allows you to use your imagination and creativity to create new and innovative gaming experiences for players all over the world.
Average Pay: $53k-185k per year
Education Needed: A college degree in computer programming is preferred. However, you can program get a certification and start working sooner.
Virtual Assistants (VA)
Being a virtual assistant can be a great way to make some extra money. It can be a lot of work, but with the right skills and equipment, it can be a lot of fun. Virtual assistants work with people all over the world, so there is always something new to learn. A VA has very flexible hours and can set its own schedule.
Average Pay: $39k-52k per year (depending on how much you hustle). Very common to make more.
Education Needed: None. But, this virtual assistant training is highly recommended.
Video Producer
There are a variety of video production jobs that are in high demand. If you have the skills and are passionate about video, there are plenty of opportunities out there. You could work as a video producer for a news organization, create video content for a website, or work for a company that produces video content for marketing purposes.
Average Pay: $47k-100k per year
Education Needed: Most have a college degree in design and video production. But, experience is preferred.
Tour Guide
If you are good at giving information tours, you may want to consider becoming a tour guide. Tour guides give visitors an overview of a particular place or attraction. They must be knowledgeable about the history and culture of the area they are touring, and be able to answer visitor questions.
Average Pay: $22k-44k per year
Education Needed: None.
Fashion Stylist
Detail-oriented people who have a passion for fashion and design can make a great living as a stylist. Stylists are in high demand, especially in the fashion industry. They typically work with clients to help them choose outfits or styles that will suit them, as well as style photo shoots and provide consultation on current trends.
Average Pay: $47k-64k per year
Education Needed: This is a job where you get popular by your experience and referrals.
Translators
Being a translator can be a very rewarding and challenging career. The most popular jobs for translators are in the legal, medical, business, and technical fields.
Translating is a very versatile job that can be done in many settings. Learning about the different types of translation and which language pairs are the most popular can help you get a better understanding of the field.
Average Pay: $43k-72k per year
Education Needed: Typically hold a bachelor’s degree. Must be proficient in at least two languages.
Social Media Manager
If you are able to communicate well, have strong writing and communication skills, and have some marketing experience, you may want to consider becoming a social media manager. A social media manager is responsible for developing and executing a social media strategy for their employer or client.
A social media manager is responsible for creating and managing a company’s social media presence. This includes creating content, monitoring activity, and engaging with followers.
Average Pay: $49k-75k per year
Education Needed: A college degree in marketing is preferred.
Event Planner
Event planners are in charge of organizing and managing events. They come up with ideas for events, coordinate with various departments to make them a reality, and keep things running smoothly. Event planners can work for businesses of all sizes, from small businesses to multinationals. There are many different types of event planners, so if you’re interested in a career in events, you should explore this avenue.
Average Pay: $47k-70k per year
Education Needed: Many have a college degree, but that is not mandatory. Strong organizational skills, attention to detail, and ability to work under pressure. Experience is best.
Florist
There are many cool jobs that you can consider if you are interested in the floral industry. A florist can work in a variety of settings, such as a grocery store, a restaurant, or a ballroom. A florist can also work as a freelance artist, creating floral arrangements for special events. This is a creative outlet for many and comes with flexible hours. However, work can be seasonal and require working on weekends and holidays.
Average Pay: $35k-76k per year
Education Needed: Nothing special. Just have an eye for creativity and a love of flowers.
Work Opportunities to Make Real Money
How do you want to make money? There are many ways. You could choose a career in medicine, law enforcement, or any other occupation that ultimately benefits society and helps people thrive.
Many people believe a business degree is worth it, but may not be the best choice for you.
Here are real jobs to make real money at work.
Teacher
One of the most popular jobs in America is teaching. Teachers are needed in every state, and the profession offers great stability and benefits. We need our teachers to teach the next generation.
Average Pay: $39k-80k per year
Education Needed: In order to become a teacher, you need to have at least a bachelor’s degree and be certified in your state. Many pursue a master’s degree in order to receive higher pay.
Veterinarian / Veterinary Tech
There are a lot of different jobs in the veterinary field, and if you love animals, chances are you would enjoy working with them. Veterinarians work with all types of animals, from pets to livestock. Veterinary technicians work with animals in veterinary hospitals, performing tasks such as recordkeeping and taking care of furry patients.
Average Pay: $60k-150k per year / $25k-55k per year
Education Needed: Becoming a veterinarian is much like going to college to become a doctor requiring specialty degrees. However, a vet tech only needs a high school diploma.
Construction Worker
Being a construction worker can be a challenging, but rewarding experience. It can be a great way to meet new people and build some amazing structures. The job requires a lot of physical labor, but it can also be very rewarding to see a project come to life. If you are interested in becoming a construction worker, be sure to research the profession and prepare yourself for the challenges that will come with the job.
Average Pay: $26k-47k per year
Education Needed: Starting out no experience is needed. To become a project manager, you will need a college degree.
Marketing Assistant
A marketing assistant helps with a variety of tasks in marketing. They may be responsible for monitoring and managing budgets, creating and distributing marketing materials, or working with customers to improve their experience with a company. If you have a strong interest in marketing and are comfortable working in a collaborative environment, a marketing assistant role may be a good fit for you.
Average Pay: $34k-57k per year
Education Needed: A college degree in marketing is preferred.
Truck Driver
One of the most popular jobs in America is a truck driver and a heavily needed position. The Bureau of Labor Statistics reports that there are 1,187,500 truck drivers employed in the United States.
Average Pay: $45k-58k per year
Education Needed: A high school diploma or equivalent is typically required to become a truck driver.
Administrative Assistant or Office Manager
The Administrative Assistant position is one of the most popular jobs in America. The role generally entails providing support to managers and employees, handling office operations, and managing schedules. In order to be successful in this career, you’ll need strong organizational skills and proficiency in Microsoft Office.
Average Pay: $35k-55k per year
Education Needed: None
What Should I Do for a Living FAQs
You enjoy going to work,
Your work makes you feel fulfilled.
Your skills are utilized and challenged.
You feel like you are making a difference.
This is why it is important to spend time making a decision on what to do for a living.
You’re not passionate about your work
You’re always stressed out
You dread going to work
You’re not challenged by your work
You don’t feel like you’re making a difference
It is better to make a decision to move out of the wrong career to maintain your happiness in life.
Research other careers that might be a better fit for you and consider making a switch.
Your interests can give you clues about the types of careers that might suit you. Your skills can help point you towards careers that will make use of your strengths.
Passions:
What are you passionate about?
What topics can you talk about for hours without getting bored?
Skills:
What natural talents do you have?
Are you good at working with your hands, or do you prefer working with your mind?
Do people often come to you for advice or help with problems?
Values:
What is important to you in a job?
Do you want to feel like your work makes a difference in the world, or do you just want a steady paycheck?
Do you prefer working independently or as part of a team?
Personality:
Are you an extrovert or an introvert?
Do people describe you as spontaneous or cautious?
Work environment:
Do you prefer working indoors or outdoors?
In an office or from home?
With animals or with people?
When it comes to choosing a career, it’s important to consider what kind of personality traits will make someone successful in their chosen field. Also, knowing your values can help narrow down your career options.
How can you create a career you love?
Your career is one of the most important aspects of your life. It’s what you spend the majority of your time doing, and it can have a huge impact on your overall happiness and satisfaction with life. That’s why it’s so important to find a career that you love.
When you have a career that you’re passionate about, it doesn’t feel like work. You’re more likely to be engaged and motivated, and you’ll be more likely to stick with it even when things get tough. Plus, pursuing a career that you love can lead to all sorts of other benefits, like increased success and earning potential.
There is no reason why you can’t create a career that brings joy into your life every single day!
How can you make a living doing what you love?
What are you good at? What do you enjoy doing? Which things are you naturally drawn to?
Those are the areas you need to focus on.
Once you have a plan, it’s time to start making money. There are a number of ways to do this, but the most important thing is to get started and keep moving forward.
Remember, it takes time and effort to build a successful business or find an enjoyable career.
What Should I Do Now?
There’s no single answer to the question “what should I do for a living?”
Everyone has a different idea of what they would like to pursue.
There is no right or wrong answer when answering this question, but if you are struggling with the decision-making process, take note of these most popular jobs and the skills you need to get them.
But by exploring your interests and values, you can find a career that is a perfect match for you.
No matter what your interests or skills may be, there is sure to be a cool job out there that is perfect for you.
You could also become an environmental scientist, web developer, or event planner. There are many exciting and rewarding careers out there – you just need to find the one that’s right for you.
Then, at the next social event, you can be proud to answer “what do you do for a living?”
So what are you waiting for? Start your search today!
More Ideas for You:
Know someone else that needs this, too? Then, please share!!
When buying a house, buyers are given a certain amount of time to complete a home inspection. Most people complete some type of inspection when purchasing a home, but is a home inspection always necessary? I have been a Realtor since 2001 and I am also a real estate investor. In my opinion, 95 percent of house buyers should always get a home inspection. There are a few cases when a home inspection is not needed and some cases when not getting a home inspection will actually give you a better chance at getting a great deal on a house. I have not asked for a home inspection for over a year on my own investments.
How does a home inspection work when buying a house?
When buying a home, most buyers are given a chance to get an inspection done on the house before they buy the home. In most states, it is typical for the inspection to occur right after the home goes under contract. Buyers are given a specific amount of time to either inspect the house themselves, have a friend inspect it, a contractor or a professional home inspector check out the home.
Buyers should be allowed to check out everything in a home including the major systems, utilities, and minor cosmetic issues. In some cases like with HUD homes or some REO sellers, the utilities cannot all be turned on. If the pipes on a HUD home do not hold pressure when HUD inspects a house, the buyer will not be allowed to turn on the water for inspections or appraisals (will discuss HUD rules later in the article). In some cases, houses that are in really bad shape may not have the electric or gas turned on if it is not safe to do so. The buyers are usually responsible for ordering and paying for the home inspection and it gives them a chance to ensure the house is in satisfactory condition before they buy the home.
I also made a video on this subject below:
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How much does a home inspection cost?
The cost of a home inspection can vary greatly. Smaller houses are cheaper to inspect and larger houses are more expensive. Costs vary depending on the region of the country you are in and living costs. Different inspectors have different rates as well.
For a rental property, I would buy that is about 2,000 square feet total I can get an inspection done for about $300. On my personal house which is close to 6,000 square feet, the inspection was $600 and the inspector did not even get a chance to look at everything in the home (after 5 hours). I am able to get slightly lower rates because I am a Realtor and there is a chance I might send business to inspectors. As a regular buyer expect to pay a little more than I do.
Besides using an inspector you can also use a contractor to look at home for you. I would be cautious when using contractors because they might tend to underestimate the seriousness of some repairs. If they convince you not to buy a home and they know you will use them to fix it up, they just cost themselves a job. I had a local roofing contractor look at a flip for me last year where there were major structural problems in the roof. He said it looked like an easy fix and not to worry about it. After he got started on the job, the easy fix turned into almost a complete rebuild of the roof!
What happens to the earnest money if a contract is canceled due to a home inspection?
When you write a contract to buy a home or your real estate agent writes a contract for you, you usually include earnest money. A typical amount for earnest money is one percent of the purchase price, but it can vary depending on your location and the seller. The earnest money is a good faith deposit showing the buyer is serious about buying the home. However, that does not mean the earnest money is nonrefundable if the buyer backs out.
Most contracts are written so that the buyer can cancel the contract and get their earnest money back if certain things happen. If a buyer has an inspection contingency written into the contract, they have a certain amount of time to complete an inspection. If the buyers cancel their contract because of the inspection and they notify the seller before their inspection contingency expires, they will receive their earnest money back most of the time (HUD is an exception I will go into more detail later).
If a buyer is not able to get a loan, there is a title problem or another contingency allows the buyers to cancel (title, appraisal, survey, etc.), they can cancel the contract and get their earnest money back as well. You just have to make sure the seller is notified before the dates on the contract expire for those contingencies. It is actually pretty rare that a buyer will lose their earnest money unless their agent misses a date or the buyers decide to cancel the contract very late in the process after their contingencies have passed.
Does a contract automatically get canceled after a failed home inspection?
If you find major problems after a home inspection you do not automatically lose the house. There are many options for the seller and buyer to save the deal. The outcome will depend on how serious the problems are with the house and how motivated the sellers and buyers are. The buyer can ask the seller to renegotiate the contract terms or to cancel the contract. Here are a few ways home inspection issues can be resolved.
Buyer agrees to purchase the home as-is. In some case,s the buyer will decide to proceed with the purchase of a home, even if there are major problems. In some case,s the buyer will have no choice because the seller will not make repairs or change the contract (HUD).
Seller agrees to make repairs to a home. Many times a seller will agree to make repairs to a house after an inspection is done. The seller may agree to make all the repairs the buyer asks for or negotiate to make some of the repairs.
Seller agrees to lower the price or renegotiate other terms. The buyer may ask the seller to lower the price, or the seller may offer to lower the price after the buyer requests repairs to be made. The seller can also agree to lower the price and make some repairs.
The buyers can ask the seller to repair whatever they want or lower the price to whatever they want, but the seller does not have to agree to anything. If the seller and buyer cannot come to an agreement on what to fix or how much to renegotiate, then the contract will fail.
Why would a buyer not want a home inspection?
In most circumstances, it makes sense to get an inspection done. Most homebuyers do not have the expertise to know what problems they may encounter when buying a house. A professional contractor or inspector can discover what problems a house has and how serious they are. A home inspection also gives a buyer the chance to ask for repairs or renegotiate the contract. I recommend almost all buyers get a home inspection done.
Having said that, I have not gotten an inspection or asked for an inspection contingency in a contract on the last ten houses I have bought. When you waive your inspection contingency it makes your offer much more attractive to the seller and gives you a better chance to get your offer accepted. This is a great tactic to use in a very competitive market when there are few deals to be had. It is also a great tactic to use in a multiple offer situation.
Do not waive a home inspection if you are not very experienced in buying homes, knowing what repairs are possible to come up and how much they will cost!
Why do I feel comfortable buying houses without an inspection?
I have been a Realtor since 2001, I have more than 20 rental properties and have flipped over 180 houses. I have a lot of experience with repairs on properties and what to look for. I have repaired an entire flip myself back a few years ago, which did not go as planned, but sure taught me a lot! There are many things that can cause a lot of problems on houses and you have to know what to look out for.
Foundations
Roofs
Plumbing
Electrical
HVAC (heating and cooling)
Mold
asbestos
Siding
Wood rot
These are just some of the things you must be aware of and know what to look for if there is a serious problem. These issues do not include cosmetic items or things you can see are wrong like:
Kitchens
Baths
Fixtures
Paint
Carpet
Doors
Windows
Not only do you have to be able to see when there is a problem, but you also have to know how much it will cost to repair these items if there is a problem. When I buy flips or rental properties I am buying them at a huge discount. When I make my cost estimates for repairs on a home, I always budget in extra money for things I may miss or discover during the rehab. I never assume a house only needs the work I can see, which is another reason I feel comfortable buying houses without an inspection.
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Why are HUD inspections different from traditional sale inspections?
HUD homes and some REO sales have many different guidelines than traditional sales. HUD homes are government-owned foreclosures and you can find much more information on them here. For owner-occupants, HUD allows the buyer a 15 day inspection period. The buyer must pay for the utilities to be turned on for the inspection and in some cases, HUD will not allow the water to be turned on. HUD has all of their homes pre-inspected and they do a pressure test on the plumbing system. If the plumbing system does not hold water, HUD will not allow the water to be turned on for the inspection or appraisal.
The inspection HUD does before they list a home provides some information to a buyer, but many times the utilities are not on when that inspection is done. I would never rely on the HUD inspection only; I would get my own inspection on HUD homes as well (if I were a normal buyer). HUD publishes the findings of that inspection (it is called the PCR) on hudhomestore.com under addendums. This is important to know because if HUD lists something that needs to be repaired on the PCR the buyer cannot use that as a reason to get their earnest money back. If the buyer of a HUD home finds an inspection problem and they want to cancel it has to be a new problem that HUD did not find.
HUD will also not make any repairs or lower the price based on the inspection and investors are treated differently than owner-occupants. An investor will not get their earnest money back due to inspection problems period on a HUD home.
Is it safe to waive an inspection if a home is pre-inspected?
HUD homes have an inspection done before they are listed. I have already talked about why you should not trust a HUD inspection and you should have your own done. Some traditional listings will advertise they are pre-inspected. I think it is a good sign that a home is pre-inspected, but again it is best to get your own inspection done. Inspections are relatively cheap compared to the cost of the problems they might find. Even if a house is pre-inspected I would have your own inspection done to confirm nothing was missed.
Is it wise to use an inspection contingency as a negotiating tool?
If you find major problems with a house that you did not know about, it makes sense to ask for repairs to be done or the price to be reduced. Some buyers will make an offer with the intention of asking for a price reduction from the inspection results, no matter how the inspection turns out. I never do this and I find it to be dishonest and unethical. For investors who buy many houses, it can also hurt your chances to get a great deal.
I have seen a few deals fall apart because buyers tried to use this tactic and it made the sellers and real estate agents very unhappy. When investors buy a lot of homes they will make offers to the same agents over and over again. I am a HUD and REO listing broker and list many houses. If I see a buyer who always asks for ridiculous inspections items or price reductions I will let my seller know before they accept their offer. If a buyer or real estate agent gets a reputation for renegotiating every offer on inspections, it will make it harder for them to get offers accepted.
One reason I am able to get so many deals from the MLS, is other agents know I do not play games, I do not renegotiate and if I say I will close, I will close.
How to find a great home inspector
When you use a real estate agent they should have suggestions for inspectors in your area. There are also inspectors you can find online, but I would use the recommendation of a professional in the business. There are many home inspectors and in some states, they need no training or licenses to be a home inspector.
I would interview any inspector before you use them and make sure you are comfortable with their knowledge and services. Some inspectors will nitpick a house over minor issues and some inspectors will not be very thorough and could miss major issues.
I would interview any inspector before you use them, and make sure you are comfortable with their knowledge and services. Some inspectors will nitpick a house over minor issues and some inspectors will not be very thorough and could miss major issues. A good real estate agent can help you choose the right inspector, as well as help you go over the report.
Conclusion
Home inspections are very important for most buyers who are not buying a lot of houses. Even if you buy a lot of homes, you have to be very comfortable judging repair costs and what will need to be repaired if you are thinking of waiving your inspection. If you do waive your inspection, you can get out of a contract but may lose your earnest money in the process. My advice to most is to always get an inspection done.
Waking up in a place of your own with the birds chirping right outside your window is a great feeling.
You go outside and enjoy your coffee on the back porch, simply enjoying the quiet that comes with not living in an apartment.
Your neighbors are friendly, the sun is shining, and you know it is going to be another great day of owning a home.
Everything is going great… until the peaceful morning is ruined by the sound of your air conditioner going out.
As romanticized as owning a home has become in America, there are some significant costs associated with buying, owning, and maintaining a place of your own.
The True Cost of Home Ownership
Let’s break down some of the areas on how to value home ownership. There are some obvious costs like your monthly mortgage payment, but hidden costs sneak in there and can break the bank.
Obvious Home Cost: Principal and Interest
For most, the cost and financial benefits of renting versus homeownership are the deciding elements. The traditional logic is that renters are throwing away their money by paying someone else’s mortgage. Though true, this is a simplistic view.
On a $150,000 home purchase with 20% down (so a mortgage loan of $120,000) at 3.5 percent APR, the monthly principle and interest payment is $538.35 per month.
This sounds like a smart deal since most houses increase in value over time, while the monthly payment lowers the principle balance and increases the equity. If you are paying $600 per month in rent, owning your own home for about the same amount sounds like a great deal.
While principal and interest is a big chunk of your monthly costs of owning a home, there are a lot of other costs to consider.
Hidden Home Cost: Property Tax and Insurance
When you speak to a real estate agent about looking at homes, they generally speak of how much a home is going to cost you in a monthly payment. Many agents will focus on quoting you prices based just on the principal and interest because it means they can get you into a more expensive home — pulling you toward that dream home — thus earning a larger commission check on the sale.
Unfortunately, your monthly payment will have other costs associated with it, namely property tax and homeowners insurance. Depending on the area, these costs can increase the payment significantly. Unlike principal and interest, taxes and insurance payments is money that you are not getting back.
You might pay an extra $150 to $450 per month in tax and insurance cost depending on the area you live in, what the tax structure is, and how much insurers charge to protect your home’s area.
Tax and insurance costs are not fixed unlike your principal and interest payments (assuming you get a fixed rate mortgage). Your local municipality can raise taxes over the years, and homeowners insurance companies are constantly changing annual premiums.
Some states have homestead exemptions that lower a homeowner’s tax burden, so check to see if your state allows this.
Obvious Home Cost: Down Payment
When you rent an apartment your costs are an application fee, security deposit, your first month’s rent, and getting renters insurance. With just a few thousand dollars you can be completely moved in and setup in an apartment or rental home.
When you purchase a home of your own you need to save up money for a down payment. Back in the heyday of the housing boom you could buy a property with little or no money down.
Those days are gone. (This is a good thing!)
Home ownership is a serious commitment and requires serious cash to get started. Many lenders want to see you have a 20% down payment in order to be approved for a loan. On a $150,000 home that means you need $30,000 in straight cash sitting in an account waiting to be used once you find a home.
That’s a lot of dough to be sitting on. I highly recommend using one of the top online savings accounts such as Capital One 360 Savings to hold your down payment so you earn interest until you find the home you want.
Still not sure if you should keep renting or buy your first home? Use this nifty calculator to help you decide:
Hidden Home Cost: Home Maintenance and Upkeep
Owning your own home means you get to decide how your home looks inside and out, including the property’s landscaping. Unless the home is in a designated historic neighborhood, or one with zoning restrictions or homeowners association rules, homeowners are generally free to apply for permits and make changes to a home’s look, structure and more.
It also means you get the “honor” of mowing, trimming, dealing with weeds, and footing the cost of repairs.
Rental properties usually outsource a maintenance crew for maintenance and lawn care so you don’t have to spend time on those items. While a homeowner may have to spring for a new Husqvarna, he or she can landscape as desired. Just remember, it takes time and money to keep up the home and yard.
Most rental management companies will have an itemized checklist of all appliances, flooring quality and states of repair. Often these will be accompanied by photos. Any changes to the rental property outside of normal wear and tear need to be put back to the original state. Renters usually can’t make material changes to the property. You’ll also have to find affordable renters insurance.
This is not the case for a purchased home property. You can change what you like, but all of the cost comes from your pocket.
How much money should you have on hand for home maintenance? A general rule of thumb is to have at least 1% or 2% set aside for home repairs. If you own a $150,000 home that means having $1,500 or $3,000 set aside for when the roof leaks or the HVAC unit goes out in the middle of summer.
Even that amount of money won’t cover major repairs, but it is better to have a starting point in paying the repair bill than to be starting from scratch.
An easy way to make sure you don’t spend your home repair fund is to use a low risk investment like a certificate of deposit. CDs allow you to earn higher interest and only charge a few month’s worth of interest if you need to pull the funds out before the CD matures. One of the best places to get a CD is online with Discover Bank.
You might create a separate category in your budget to hold maintenance money and a separate category to hold money for landscaping or yard maintenance.
Hidden Home Cost: Higher Utility Bills
Living in a 800 square foot apartment can keep your utility bills down simply because you don’t have much space to heat or cool. There can be some financial shock when you get your first set of utility bills after moving into a much larger home.
If you are used to spending $600 on rent, and $100 on monthly utilities, buying a home with a $600 mortgage payment leaves you with the same amount of money to heat and cool a much larger space. Depending on how old the home is your HVAC unit might be older than the one in your apartment building and thus be less efficient. A less efficient unit combined with a larger square foot area can result in some shocking utility bills.
How much should you anticipate to spend on utilities? Ask the sellers.
Pro Tip: When looking at homes ask the sellers to provide utility bills for the last 12 months and a description of where they kept the temperature set. This can give you a rough idea of what you’ll be spending each month. Even if your exact use of the area isn’t the same — they set it at 73 degrees and you prefer 71 — you’ll at least have a ballpark figure.
Hidden Home Cost: Termite Protection
It’d be nice if we could buy a home and never have to worry about termites ruining the structure. Unfortunately this is one of those hidden costs that many people don’t think of.
You can get a termite bond to protect your home. When you purchase a termite bond (usually a couple hundred of dollars) the termite extermination company comes out to inspect your entire house inside and out for signs of termites. Assuming none is found, they spray a preventative down and right a bond that essentially guarantees against termites.
Each year the company comes back to renew the bond for a smaller fee, does another inspection, and sprays again if necessary.
After the initial cost of the bond it is usually $50 to $100 to renew the termite bond. That doesn’t sound like much, but it is just another hidden cost that you need to prepare for.
Hidden Home Cost: Realtor Fees
Where a home can be the cornerstone for growth for some, it can be an anchor that prevents movement for others. Housing markets fluctuate. The housing values and mortgage rates that make it ideal to purchase a home now may not be there five years from now. When purchasing a house, be prepared to stay with it for at least five year or else plan on losing money.
Selling a home is a giant unknown that you need to consider when first purchasing the home.
Can you live here long term?
What happens if the housing market tanks around you?
Can you afford to pay 6% realtor commissions if you use a real estate agency to sell the home?
The commissions paid to realtors are a hidden cost that reach into the thousands of dollars. A 6% realtor commission (3% for the buying realtor and 3% for the listing agent) is $9,000 on a $150,000 home. That means your home has to go up by at least that much in value if you want to sell it, and that’s assuming home prices are going up in your area.
Anticipating Home Ownership Costs: Use a Budget
Putting together a budget is one of the best things you can do before you even begin to consider purchasing a home of your own. You need to have a solid understanding of where you are currently spending money each month. Having a baseline for your current costs will make it a lot easier to compare to potential home ownership costs than if you are just shooting in the dark.
There is a lot of great personal finance software available. For budgeting we recommend You Need a Budget for your core budgeting needs. You can use other programs like Manilla and Mint to add additional monitoring as needed, but YNAB is a great piece of software.
Is Owning a Home Worth It?
Don’t underestimate the security and stability of a family home. According to a study from the Pew Research Center, housing stability shows the world you are stable, dependable and devoted to the community.
Other studies have shown that children of homeowners tend to be better at math and reading, have fewer behavioral problems, and stay in school longer. This is linked to the safety that a child feels when they have a stable home. Since a house is a long term investment that can have a mortgage of 40 year or beyond, a house becomes very closely linked to a family’s architecture, community standing, stability and more.
A Look at the Future
What will life look like in five years? Ten years? Fifty years? Whether playing the role of savvy investor or new couple thinking about a family, these are the questions that need to be addressed. Of course, without a time machine or a crystal ball, there are no certainties as to what will happen with the housing market in your area.
But those weighing the pros and cons of home ownership must have an idea of how they want to spend their future. The online real estate database, Zillow, recommends having a plan before jumping into the home buying jungle.
If you plan to live in one area for a long time then buying a home is a great decision that provides stability to your family. If you don’t know if you will be in the same area five years from now it usually makes sense to keep renting.
Either way, having an understanding of the true cost of owning a home can help you crunch the numbers to make a housing decision.
The Honeycutt House, designed by Lloyd Wright—son of architect Frank Lloyd Wright, seeks a new owner to revel in its recent restoration.
Completed in 1955, the midcentury modern marvel is in Long Beach, CA, a coastal community 25 miles south of downtown Los Angeles. The 2,382-square-foot home features three bedrooms and four baths.
It’s listed for $2.95 million with Cynthia Voss and Nathan Walter, of Re/Max Real Estate Specialists.
Lloyd Wright, who also went by Frank Lloyd Wright Jr., designed the Hollywood Bowl’s band shells and assisted his famous father with four Southern California homes, including the Ennis House.
In 1953, Wright received the commission to design the property, now known as the Honeycutt House, on a sloped lot.
The sellers, who are only the home’s third owners, snapped up the property in 2021 for $950,000 from a family who had owned it since 1978.
“It was not maintained,” says Voss. “My client had to fix a lot of termite damage.”
Operation restoration
The sellers completely refurbished the place in 2022 and into 2023.
They reinforced the carport and created a deck on top, added a new roof and a lower-level living area, and replaced all the windows—improvements that made the home more conducive to modern living.
The home’s electrical wiring and HVAC systems have been updated, and two new outlets in the carport can charge electric vehicles.
The reimagined, 780-square-foot lower level—now accessible from upstairs—could be used as an in-law suite or for a college graduate.
“It’s kind of like having a suite of their own,” Voss says.
The renovation sought to retain original design features—including paneling; a wall of open, vertical slats; wood-framed, sliding-glass doors; and a double-sided, brick fireplace.
Voss notes that the wood floors have been restored, and the kitchen cabinetry and custom facades were made to match the look from 1955.
“They remodeled the kitchen but to the form and style of the original home,” she says, adding that the bathrooms were also redone “to the midcentury modern style but also to 2023 standards.”
Appealing area
The home is situated in a beloved area, adding to its allure.
“Market State is a lovely neighborhood with large lots—and the most expensive in Long Beach, with the exception of Naples,” Voss says. “It’s very much a family neighborhood and also empty nesters. People love the neighborhood so much, they stay after their kids have grown.”
This home is near the 18-hole Recreation Park Golf Course and California State University, Long Beach.
In this community of single-family homes and tree-lined streets, “you have to get permission to even cut a tree down,” Voss says. “They really maintain a classic neighborhood look.”
She thinks the buyers will be “professional people that have a love of architecture and art and an appreciation for owning a trophy or legacy property.”
The potential party pad might also attract an entertaining enthusiast.
“The way [Wright] positioned it on the lot and created the outdoors space, it would be a wonderful home to entertain in,” Voss says.
FARGO — Holland’s Home and Garden is now planted in Fargo’s downtown.
Sarah and Mike Liljestrand are on track to open their
shop at 420 N. University Drive
on Friday, May 5.
Mike Liljestrand jokes that between Holland’s, the neighboring Dairy Queen, and Chub’s Pub & Package Place across the street, downtown and northside residents can get everything they need in one place.
“We’ve got this kind of interesting triangle here,” Mike said. “You can come and get a flat of flowers, and a 12-pack of beer across the street, and then get your ice cream cone for the trip home. We’ve got a little of everything to offer here on the block.”
Holland’s used to be at 1201 Center Ave. in Moorhead.
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The race to this spring’s opening in the new location – a former Taco Shop – started Dec. 5, “the day we bought it,” Sarah said.
Sweat equity has since made the shop bloom.
On Saturday, April 29, the husband and wife team, their employees, and Sarah’s father, Jeff Olson, were racing to get the greenhouse enclosed, as partly cloudy skies threatened to give way to evening showers.
The parking lot, which had only featured contractor’s trucks at the start of the week, has sprouted a fenced-in yard, a small forest of young trees and pots of hardy perennial plants, an outdoor kids’ play set and slide, and the aforementioned greenhouse.
“We’ve been working hard,” Sarah said.
Plans for opening day have coalesced. The first 30 people who show up Friday will get “swag bags,” with a ribbon-cutting set for 11:30 a.m., Sarah said.
There will also be ice cream treats from Dairy Queen, and other goodies, she promised.
Transplanting the business has been a team effort.
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The same day the mortgage papers were signed for the half-acre property, tradesmen began rewiring and re-plumbing the timeworn former restaurant, as well as upgrading the HVAC system.
Meanwhile, the Liljestrands and their employees gutted the interior.
They ripped out the heavy-duty kitchen hood and appliances, and the hurry-up-and-eat banquettes, tables and chairs.
“We had to get the huge cast iron stove out. That was a major undertaking. Our friends from Chub’s Pub came over and helped us,” Mike said. The 700-pound, eight-burner stove was “a monster” to move, and it took a skidsteer to lift it onto a trailer.
There’s fresh paint inside and out, and beautiful tongue and groove boards now grace the ceiling. Cabinets and built-in shelves were installed. A pergola has sprouted up to define the main entry.
The former fast-food hangout is now a sharper, homier place to hang out and browse.
One employee, Chani Thorne, created a funky looking wall with chunks of scrap wood – glued and nailed to the wall – a cross between shelving and art installation.
Taylor Pearson painted a black and white mural of flowers, ferns and mushrooms on a wall by the checkout area.
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Meanwhile, Mak Schilling tiled, and poured concrete for the floor and a counter.
“Between the four of us, we literally did everything,” Sarah said. “We did all of this. All of the construction.”
The interior of the store is now an artfully designed mix of houseplants and home goods: artwork, ceramic, glass and metal pots for plants, candles, pillows, throws, wall hangings and hanging baskets, rugs, poster papers and clothing,
“We’re kind of just expanding now what we’ve always done,” Sarah said.
A lot more people have put down roots in downtown Fargo in recent years, and not many businesses on the western edge of the old city center offer home decor, Sarah said.
The Liljestrands also believe their plants, trees and shrubs will be as popular with northside homeowners as they have with Moorhead customers.
The greenhouse will not only be used for plants, but to accommodate a growing schedule of classes.
All of their plants will be in stock on site. Landscaping material will be stored at their rural Clay County homestead, the couple said.
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Landscaping with trees and extensive plantings is planned for the property once nicer weather arrives.
While uprooting a business is never a joy, there is a huge plus for Holland’s.
Traffic on University Drive could drive significant growth for the mom-and-pop business.
“The vehicle count on this road is unreal,” Mike said.
According to 2021 state and local traffic counts, University Drive between 7th Avenue North and Main Avenue averages about 11,000 to 14,000 vehicles a day.
That is half again or more as the average daily vehicle count as the former Holland’s spot on Moorhead’s Center Avenue (somewhere between 7,000 and 8,400 hundred cars daily.)
That’s a lot more exposure, Mike said.
Hollands started in Moorhead about 50 years ago, Sarah said. The Liljestrands have owned it for more than two decades of that run – five years at the original location along Highway 75, then another 16 years along Center Avenue.
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Sarah and Mike want this move for Holland’s to be the last while they own it.
Still, they say it’s probably better than coping with construction for the next downtown Moorhead underpass.
The Moorhead High School area underpass took a couple years longer than had been expected, which affected all of the businesses around it, the couple said.
As they looked at the initial plans, the 11th Street railroad underpass project appeared to be twice as big and complex. And they learned their spot on Center Avenue needed to be acquired for the project.
The couple spent three years looking at new locations in the metro area before the Taco Shop spot hit the market.
They agree they’ve landed in a good spot.
“There’s a lot more activity here, with all the restaurants, and now the new Brewhalla and everything, you know,” Sarah said.
Once the business is up and humming along, there will be time to think about setting a date for a grand opening party and other events.
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“Food trucks in the summer for sure. Once they come out of hibernation,” Sarah said.
Holland’s will be open 10 a.m. to 6 pm. Monday through Saturday and 11 a.m. to 5 pm. Sunday.
If you’re thinking about buying a home warranty, you may be considering First American Home Warranty, a leader in the industry.
Home warranties like First American’s can feel like a gamble. Will the warranty pay when you need it to? Or will you find out the hard way your warranty doesn’t cover the repair you need?
You may not know unless you comb through a warranty contract line by line looking for exceptions, conditions, and requirements of you, the homeowner. So let’s take a close look at First American Home Warranty.
About First American Home Warranty
First American Home Warranty has been in business for more than 35 years and currently serves about 450,000 clients in 38 states.
That’s a substantial amount of customers and a wide range of coverage. Paired with more than three decades of service, the numbers speak highly for First American’s reputation. It’s one of the leading home warranty companies today.
But you also need to assess the terms of their home warranty policies and the types of claims they actually cover to make an informed decision.
Let’s go through the company’s warranties element by element:
What Does First American Home Warranty Cover?
First American has two plan categories: Basic and Premier. Any prices quoted in this section could change without notice.
First American typically raises its premiums every few years. The company sells annual contracts but allows monthly payments.
Basic Plan
The Basic Plan ($28 a month) covers:
Refrigerator
Dishwasher
Range/oven or cooktop
Microwave
Garbage Disposer
Trash compactor
Washer and dryer
Premier Plan
The Premier Plan ($44.50 a month) covers everything in the Basic Plan, plus:
Electrical system
Plumbing system
Water heater
Central heating
Garage door opener
Ductwork
Central vacuum system
Upgrades
Additional available upgrades to either plan include:
Air conditioning service ($9 extra per month)
Coverage for additional refrigerators ($4 extra per month)
Pool and pool equipment ($15 extra per month)
Well and well pump ($9 extra per month)
How Much Will First American Home Warranty Pay?
To understand how much a warranty could pay, you have to consider payout caps and service fees.
When you contact your warranty company for service, the company will typically send out a technician to assess the situation. You’ll pay a service fee for this initial step, and you can think of the fee as a deductible.
With First American Home Warranty, the fee is $75 in most states, but it could be as high as $100. We looked at a contract from Texas, where customers currently would pay $75 per visit from a technician.
Assuming the repair or replacement you need will be covered by the warranty, your next concern will be the warranty’s payout cap. Again, these can vary from state to state.
Expense Caps
The contract for Texas is fairly typical for First American, and it caps payouts like this:
Plumbing: $500 maximum per year for repairs to the pipes in your home.
Water heater: $1,500 maximum per year, excluding flues and vents and fuel storage areas.
Kitchen appliances: Limited to $3,500 per covered appliance.
Heating system: Limited to $1,500 per year.
Central air conditioning (optional add-on): limited to $1,500 per year.
Other systems in the First American Home Warranty contract do not cap expenses, but they have specific limits on what parts of the system the warranty will repair or replace.
Limitations
In these cases, the fine print can go on for a while, so the following lists aren’t all-inclusive. If you’d like to fully assess the details of a contract, you’ll need to go through the quote process and ask for a sample contract.
The following examples should give you a better idea what to look for when you’re investigating a contract’s limitations:
Electrical system: No expense cap, but the plan won’t pay for door bells, alarm systems, intercoms, audio or video recording devices, damages due to power surges or inadequate wiring capacity.
Garage door openers: No expense cap, but the plan won’t pay for remote controllers, gate motors, hinges and springs, side rails.
Laundry appliances: No expense cap, but the plan won’t pay for repairs to filter and lint screens, knobs and dials, venting, or damage to clothing.
These limitations are typical for a home warranty, and you’ll want to study the details carefully before signing up. If you think the contract won’t provide services you anticipate needing, don’t sign the contract.
Filing Warranty Claims
You will have to wait 30 days after signing the First American warranty contract before you’re eligible to file a claim.
After the waiting period, you can contact First American’s customer service staff any time of the day or night, either via phone or online to start a claim.
How to File a Claim
Starting the claims process online has the advantage of documenting your claim from the outset in case you need to dispute the company’s decision later.
If the customer service staff is certain your problem won’t be covered, the claims process can end immediately. But in most cases, the company will send out a home repair technician who will charge you the service fee we discussed earlier. The service charge is typically $75.
After you pay the service fee, the warranty’s technician should fix or arrange a replacement at no charge, up to the annual limits of the warranty. At this point, your warranty will either seem like a great idea or a waste of money, depending on the outcome of your claim.
Often, when a warranty does not pay a claim, the homeowner feels cheated, and understandably so. However, warranty companies like First American generally do not breach their own contracts, so knowing the intricacies of your contract can help you dispute an unpaid claim.
Common Reasons for Claims Denials
Here are some common and legitimate reasons a warranty could deny your claim for service:
System not covered: When you buy a warranty and then renew it a couple of times, it’s easier than you might think to forget what coverage you bought, especially if your real estate agent helped purchase the initial warranty. A Basic Plan from American Home won’t cover your plumbing, for example, so if you filed a claim to fix a frozen pipe, you’d get an automatic denial. I know this is kind of like asking whether your computer’s plugged in when you call tech support. But there’s a reason people ask.
Bill not paid: Sometimes customers fall behind on their monthly bills and decide to skip a few warranty payments. If that happens and you need to file a claim, you’re giving the warranty company a reason to deny service.
Contract caps met: American Home has more relaxed payout maximums than most other companies, but on many systems, the company still sets an annual maximum. This makes sense: A company wouldn’t stay in business if it regularly paid out more than you’re paying in premiums.
Maintenance standards not met: Again, American Home’s standards aren’t as high as many other companies, some of which require proof you’ve performed regular maintenance on your covered systems in order to get coverage. American Home will often require regular maintenance on larger items such as your central heat and air (if you opt into AC coverage). The company typically doesn’t require its own initial home inspection before you sign the contract.
How to Avoid Denied Claims
Getting a claim denial can be infuriating. You feel cheated, and you still have to figure out how to pay for the repair you need. Reading your contract carefully, line by line, will help you know whether the warranty provider is living up to its agreement or whether you should file a claim.
Believe it or not, a denial may not be the worst experience you can have with a warranty company. You could get approved for service only to experience delays in service making you feel stuck in-between.
Or, you could get stuck in another in-between: a repair you’re not happy with that the warranty company insists has been completed.
Who Will First American Send to Help?
First American has its own staff of home repair technicians. If the company’s technicians need more expert help, they can bring in specialists of their choosing. Customers have little control over who comes out to repair your home system.
Although First American serves nearly half a million customers around the country, the company usually sends technicians from your general area.
This reduces waiting times, and it also helps the company adhere to your local codes.
However, the company will not send help specifically to get a system up to code. A warranty exists to replace or repair systems in your home, not to maintain them.
Grading First American Home Warranty
If you’re trying to decide whether to buy a warranty from First American Home Warranty, you’ll quickly discover it’s a tough question to answer.
First American Pros
Simple contracts: Compared to many other companies, First American’s contracts can be easier to understand.
Lower premiums: The company is on the lower end of the cost spectrum.
Complaint resolution: The company has the customer service staff in place to help resolve customer complaints.
Reasonable caps: On the surface, none of First American’s annual caps on repairs seem prohibitively low.
First American Cons
Lack of clarity: Though the contracts are easy to understand, they don’t always answer every question you may have. You may need to call for clarification.
Lack of flexibility: Some warranties allow you to customize your coverage to meet your home’s needs. For example, you could pick 10 systems to cover. First American offers only specific coverage plans.
Closed service network: First American sends its own specialists and technicians, meaning you have less control over the repair process.
What Customers Say
In many ways, the First American’s customer service rates better than other warranty companies:
The Better Business Bureau gives the company a B+.
TrustPilot, which compiles customer reviews, give it 4 out of 5 stars.
These ratings result, in part, from First American’s commitment to dealing with complaints. But, individual customer reviews tell a different tale. Customers express frustration, annoyance, and disgust in review after review.
Of course, customer reviews tend to lean toward the negative. Happy customers are generally less compelled to share their feelings online. Still, this preponderance of frustration can’t be simply ignored.
Truth be told, it’s unfair to single out First American. Just about any home warranty company can inspire these feelings when the warranty doesn’t pay as the customer expected.
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Do You Need a Home Warranty?
A warranty works kind of like home insurance, but instead of protecting you against loss of value from disasters such as fires and hurricanes, a warranty can shield you from out-of-control home repair costs.
When to Avoid a Home Warranty
You have a healthy savings account: When you could afford to repair or replace major appliances or home systems if needed, you could have less need for a warranty.
You can borrow money easily: When you have great credit and a low debt-to-income ratio, you can usually find no-interest loan offers for big repairs like HVAC systems or electrical wiring repairs.
You have a brand new home: The protection a warranty can provide makes the most sense with older homes which could require expensive repairs at any point.
You have other protections in place: Maybe most of your home’s systems already have manufacturer’s warranties or service contracts from the installation company.
You’re good at fixing things: Some people have the gift of fixing just about anything that breaks, meaning they’d be on the hook only for parts and their own time.
If any of the above scenarios describes your life, you could possibly get by without buying a warranty.
When to Buy a Home Warranty
On the other hand, if the following conditions describe your home and your financial life, you may want to consider a warranty more seriously:
Several major systems in your home are old: An HVAC system will typically last 20 to 25 years. Smaller systems such as dishwashers, clothes washers and dryers, garage door openers, and stoves may last a decade or so. If you buy an older home with aging systems, a warranty can seem more appealing.
Your mortgage payment stretches your budget: If your house payment already takes 35 percent or more of your monthly income, a huge repair bill could spell financial disaster. A warranty may seem like a sensible precaution.
You don’t have much in savings or solid credit: If you couldn’t spend or borrow your way out of a tight spot, a warranty can provide some extra peace of mind.
Someone with all of these limitations may be the most ideal candidate for a home warranty. But someone with a tight budget also has the most to lose by getting a warranty that doesn’t pay.
Bottom Line
Here’s the number one rule if you’re shopping for a home warranty: Read and understand every last word of the contract before signing up.
If you don’t understand part of the contract, get in touch with the company’s customer service staff to get answers to your questions.
Becoming an expert on your warranty’s contract will help prevent you from being surprised when the warranty won’t cover a repair you need.
Becoming an expert on the contract can also prevent you from buying a plan that doesn’t meet your home’s specific needs.
Home warranties like First American sell peace of mind. It’s up to you to find out whether the warranty would actually provide it.
I fix and flip a lot of houses (over 200 to this point), and I have bought 30 + rentals. One of the most often-asked questions I hear is how long does it take to fix up a house. This is a hard question to answer because every house and situation is different.
A small remodel job could take a couple of weeks, while a big job could take 6 months or more. The contractor you use can also affect the timeline. If you decide to do the work yourself (like I have), that also can change the timeline a lot. There are no set guidelines on how long it takes to remodel a house, but hopefully I can give you an idea of what to expect.
Who is fixing up the house?
I remodeled a house myself about ten years ago. I replaced the windows, doors, kitchens, baths, flooring, fixtures, and even took out a wall. I thought doing all the work myself would be a great way to save money. In the end, I lost money because it took me so much longer than it would have taken a contractor. It took me three times as long to do the work, and I did not do the best work because I was learning on the job. In fact, it took me over 6 months, and I was working on it nonstop. I had my worst year ever as an agent and investor because I decided to do that work myself.
When you do a remodel yourself, count on it taking at least three times as long as you think it will. I hire contractors and subcontractors for every project now. It can still take time to repair a house, but it is much better than doing the work myself. On a typical job, it takes my contractors from 1 to 3 months to complete a remodel. That time varies based on the number of people on a crew, the work needed, and how many subcontractors I use. Some contractors are also much faster than others, and using a general contractor can slow down or speed up the process depending on many factors.
The video below shows me walking through two of my current flips and giving timelines for what it takes to repair them.
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How does a general contractor change how long does it take to fix up a house?
A general contractor (GC) manages remodel jobs by hiring subcontractors or using his own crew. A GC will schedule, figure out, and budget for all the work to be done. There are pros and cons to using a general contractor.
Pros:
They can save time if the homeowner does not want to manage the project.
They have contacts for subcontractors to help with various parts of the project.
They have experience budgeting and estimating the time it will take to do a job.
They have experience handling any problems that come up on a job site.
Cons:
It costs more money to hire a GC because they charge for their oversight.
It can take longer to use a GC if they want to use their own crew for all of the work.
The more experienced a GC is, the more they can charge.
Some people can claim to be a GC when they have no actual experience remodeling houses.
In my experience, using a general contractor can be a good idea for people who have never dealt with repairing houses. A GC can handle the entire process, but they will charge for it. I do not use general contractors because I can manage the project myself, and I have my own sub contractors I can use on the job. I also can get my remodeling jobs done more quickly by managing them myself. One of the biggest problems I have run into with general contractors is that they want their crew to do all the work because they make more money that way. If one crew is doing all the work, it can take longer than if you have subcontractors or specialists who work on:
Roofs.
Windows.
Flooring.
Painting.
Plumbing.
Electrical.
HVAC.
Foundations.
Landscaping.
While I have contractors working on installing kitchens, baths, doors, etc. I can have my sub contractors working on other items, which speeds up the process.
How to find a great contractor.
How long does it take me to remodel my flips or rentals?
The time it takes me to remodel my houses depends on the house and the crew working on them. I have some contracting crews with four guys on them, and other crews that just have one guy. I will contract out work, and I also have my own employees who do work for me. The time it takes to complete the jobs depends on many factors, but here are some examples of how long it has taken:
On a recent flip, I replaced the kitchen, one bath, flooring, paint, backyard, fixtures, tore down a shed, replaced some trim, patched some holes, and made some other minor repairs. The crew had three guys on it, and it took them about 2 months. I would have hoped the work could be done in one month, but there were delays getting flooring in and a kitchen cabinet.
I was able to complete another flip in 2 weeks, but it only needed paint, some flooring, a couple of windows replaced, kitchen counters, appliances, and a new furnace.
On a bigger job, it can easily take 3 months or longer because problems always seem to pop up. I fixed up a manufactured house in the country recently that took 3 months to complete when we re-sided it, put on a new roof, replaced the HVAC, put in new doors, a new kitchen, new baths, new flooring, textured walls, worked on the garage, regraded a road, and did a lot of minor work too.
I have also had jobs take 6 months or longer because the contractor quit on me or messed something up. A complete gut-job remodel took almost a year because my bookkeeper accidentally paid the contractor before he was done; it took three months to get him to finish the job because he had already been paid.
The number of people on the contracting crew, how well you can manage the subcontractors, and the project size all affect how long it takes to complete a remodel job.
How can you save time remodeling a house?
I have 21 flips going at the moment, and I also have a couple of rental properties we are working on. It takes a lot of time and management to get all of these properties repaired in a timely manner. I have a full-time project manager who helps me with everything. But if you are only doing one or two projects at a time, there are many things you can do to speed up the repair process:
Never pay a subcontractor or contractor the full amount until all the work is done.
Stop by the project frequently (once or twice per week) to make sure work is being done and being done right.
Line up contractors and sub contractors well before the work needs to be done. Many people are very busy and cannot start work for weeks.
Try not to take on a huge project when first starting out.
Take your time hiring the right contractors.
The more subcontractors you can use, the more money and time you will save.
Problems will always pop up. I always expect things to take longer than I think they will. If I think a job should take one month, I will count on six weeks. New issues pop up, contractors don’t work as fast as you think they will, or you may even have to fire a contractor.
Conclusion
Figuring out how long it takes to remodel a house can be tough. It is even tough for general contractors to estimate how long it will take, and that is their job. It all depends on the quality of the workers, the project, who is managing the project, and what problems pop up. If you are flipping houses, remodeling it is only part of the process.