What you need to know about Warranties

What You Need to Know About Warranties
Before you sign up for extended coverage, make sure you're getting the protection you pay for.
By Pat Mertz Esswein, Kiplinger.com

1. Retailers love them. In fact, retailers may reap more profit from warranty contracts on appliances and major electronics than they do on the products themselves (that's why sales-people are coached to urge you to buy the extra coverage). Typically, you'll pay 10% to 20% more for an item to extend a one-year manufacturer's warranty through the fifth year of ownership, according to the Service Contract Industry Council. Most retailers hand off the contract to a third-party administrator in exchange for up to half of what you paid.

2. Odds are you won't need it. Celia Kuperszmid Lehrman, of Consumer Reports, says that most major appliances do not break down within the extended-warranty period (among the exceptions are refrigerators with icemakers, electric wall ovens and dishwashers). When they do, she adds, the cost of repair roughly equals the cost of the extended warranty.

3. You may already be covered. American Express cards extend the length of the manufacturer's warranty by up to one year, and Visa Signature and most MasterCard credit cards will double it. Costco extends manufacturers' warranties on TVs, projectors and computers to two years from the date of purchase. Plus, the manufacturer may provide a free or discounted fix for a defect that doesn't reach the level of a product recall.

4. Service? What service? Timothy Meenan, executive director of the SCIC, says that with an extended warranty, you step to the front of the line. But Steve Sheinkopf, of Yale Appliance and Lighting, in Boston, says he sells and services his own extended warranties because most third-party administrators do not respond quickly to customer complaints. William Purdy, a factory-authorized appliance repairman in Telluride, Colo., says he's found that administrators pay low and slow, and demand burdensome paperwork.

5. It's easy to check the provider's track record. If you're considering an extended warranty, ask upfront who will provide service and vet the provider online, using a source such as Angie's List. Read the contract and look for deductibles, limits to the number of covered service calls, exclusions to coverage and triggers for cancellation. (If the appliance can't be fixed after a reasonable number of attempts, will it be replaced?) Then check the record of the administrator with your state's department of insurance and the Better Business Bureau. For instance, Assurant, which administers extended warranties for manufacturers such as Whirlpool and KitchenAid, gets an A, the top rating. Warrantech, which sells the RepairMaster warranty through retail appliance dealers and online dealer AJ Madison, gets an F, largely due to lengthy delays in providing service.

6. You can cancel. If you bought an extended warranty, most states mandate a 30-day "free look" period (some contracts provide up to 90 days), during which you can cancel and receive a full refund. (To learn more, contact your state's consumer-protection department.) You may still cancel after that, but you'll receive a prorated refund, and the administrator may charge you a fee.

Reprinted with permission. All Contents ©2011 The Kiplinger Washington Editors. http://www.kiplinger.com/.

Setting Attainable Goals

The Four Steps To Properly Setting Goals
From Ric Edelman's Inside Personal Finance

First, set a positive goal for yourself. "I will save to buy a home" is a positive goal, while "I will not spend money" is a negative goal. By focusing on the positive, you'll quit spending money because you'll be so focused on your goal that you won't notice you've stopped spending money.

Second, set a date for achieving your goal. A goal is not a goal until you set a date for it. So set a date for achieving your goal, and make sure your date is attainable. If it's not, you'll become discouraged and quit. But don't set a date so far away that achieving it is pointless. "I want to be debt free by the time I die" is a silly deadline, because you won't be able to enjoy the benefits of achieving that goal.

Third, write it down. Until you see your goal in front of you, it's not real. Tape your goal onto your bathroom mirror, your refrigerator door, your car's steering wheel, and your PC's monitor. Keep reminding yourself of your goal. One client of mine kept a picture of his dream house above his television. Another, who wanted to buy a Jaguar, bought a Matchbox version for five bucks and kept it in his pocket. His co-workers regularly saw him playing with it at his desk. (Today, he drives the real thing.)

And fourth, stay focused. Keep your goal in front of you. If your goal is to buy a home, tour model homes. Read House and Garden, Architectural Digest, and similar magazines. Design your own floor plan. By immersing yourself in your goal, you'll find it easy to stop spending money, because you won't regard it as "not spending." You'll regard it instead as "preparing to spend my money on something really special."

Focus on the benefits you'll derive by reaching your goal, not on the sacrifices you're enduring. If you can't perceive the benefits, you won't achieve your goal, and even if by some chance you do reach your goal, you won't sustain your victory.

Keep all this in mind as I show you the mechanics of getting out of debt, for if you simply follow the steps I outline for you, you won't do yourself any good. Oh sure, following my plan will get you out of debt – but it won't keep you out of debt. Only you can do that.

Set your goal, give yourself a deadline, write it down, and stay focused. You'll be amazed how far this will take you.

Tips for Preventing Water Damage

Tips for Preventing Water Damage

Each year one of the biggest homeowner property insurance claims is water damage – and this is not just in those areas of the country where flooding is common. Many times the water damage is actually caused by slow leaks from appliances and the house's plumbing that simply go unnoticed until it's too late. With this in mind, here are a few water maintenance tips that in the long run could save you thousands of dollars in repairs.

Study your water bill – One of the easiest ways to detect water leaks is to pay close attention to your water bill. Major fluctuations in water usage from one month to the next could mean that you have a problem.

Check your water pressure – Experts suggest testing your home's water pressure annually. This is easier than it sounds. Simply purchase a pressure gauge and attach it to the hose faucet. Normal results should range from 45 to 65 pounds per square inch (psi). A reading above 65 psi is considered high and could lead to problems down the line.

Inspect appliances– While much of your home's plumbing can be hidden behind walls and cabinets, most of your appliances that use water can be easily inspected for potential leaks. Each month, take the time to inspect areas around your water heater, dishwasher, refrigerator, washing machine, sinks, and toilets. If any hoses or seals appear old or damaged, replace them. Take the time to inspect and repair obvious caulking and tile grout damage. It's a small price to pay now for what could be expensive repairs later.

Find and fix leaks quickly – Make a habit of checking the main fixtures regularly so that when something out of the ordinary occurs you will notice it and take action immediately. Sometimes, however, slow water leaks aren't very obvious. A great way to discover hidden leaks is to look for stains in areas where water is often used. For example, if you see even small stains on the cabinet floors beneath the sink in the kitchen or bathrooms, you could have a problem. Experts suggest that warm spots in the floor or tiles could also be an indication of hidden water damage.

Inspect the sewer line – Clear away build-up and roots from around your sewer line. Obstructions to the sewer line could create major plumbing problems in the future.

Take a vacation – The worst thing to come home to after a great vacation is major water damage. On your next trip, try turning off your water while you're gone. For many homeowners there is a separate shut-off valve for the home that doesn't affect your irrigation system.

Freddie Mac / Fannie Mae set to defend large pay packages

By Nick Timiraos

Bloomberg News

At Freddie Mac, 14 of the 18 top management officials have turned over since August 2009.

The top executives of Fannie Mae and Freddie Mac were set to defend large cash pay packages approved by federal regulators before a congressional panel on Wednesday, one day after lawmakers took steps to put employees at the mortgage giants on a federal pay scale.
“Given the widespread economic hardship facing so many in our nation, I fully understand why the American people are upset about executive compensation,” particularly with companies that received heavy taxpayer support, said Charles E. Haldeman Jr., Freddie’s chief executive, in prepared testimony.
Still, he warned that the risks remain high that Freddie could suffer an “exodus of our most highly experienced and talented employees,” hindering the company’s ability to minimize losses and aid the mortgage market. Fannie and Freddie own or guarantee more than $5 trillion in mortgages and are in the process of rolling out a series of improvements to a program designed to allow more borrowers to refinance.
Already, the company is finding it “increasingly difficult” to retain critical employees and attract top talent, said Mr. Haldeman. At Freddie, 14 of the 18 top management officials have turned over since August 2009, offering “an indication of the difficulties we face in retaining qualified top executives given the company’s current status and uncertain future.”
The CEOs at Fannie and Freddie have base salaries of $900,000 annually. They stand to make as much as $6 million each year after receiving deferred pay and bonuses. The executives’ compensation packages remain 40% below the levels before the government took the firms over in 2008, according to the Federal Housing Finance Agency, which is overseeing the firms while they are under government control.
In 2010, the top 16 officers at Freddie Mac received more than $30 million in compensation and benefits, according to the company’s annual compensation report that was provided to Congress in June.
The FHFA approved the pay packages two years ago in consultation with the U.S. Treasury. The pay packages allow for compensation that is spread out over two years, and it is paid in cash because the company’s stock is considered worthless.
Both companies have run into challenges trying to recruit outsiders to take senior positions. Officials justified pay structures that offer long-term cash incentives because comparable private sector jobs offer more stable, long-term career opportunities, “and in many cases, substantially more compensation,” said Michael Williams, chief executive at Fannie Mae.
Executives also defended million-dollar pay packages given the increased legal and reputational liabilities that senior executives face in taking top jobs and making necessary disclosures under Sarbanes-Oxley and Securities and Exchange Commission reporting requirements. “Many executives are unwilling to accept these risks for less than what they could earn elsewhere,” said Mr. Haldeman.
On Tuesday, the House Financial Services Committee approved a measure that would put employees of the mortgage-finance companies on the federal pay scale, effectively cutting the pay of thousands of employees and suspending packages for top executives that can run to millions of dollars.
Cutting compensation would “needlessly destabilize the company” by “driving away even more employees,” said Mr. Haldeman.

Tis the season ~ for Gift Giving

One-of-a-Kind Gifts ~ They're Only a Click Away

Purchasing a gift can be a stressful experience. Whether you're buying for a close friend or a mere acquaintance, the same questions arise. Will they like it? If the answer is yes, then it could be that they already own it! If you choose to go the safe route and buy a candle, a dessert item, or a gift certificate, then the gift may appear less personal than you intended. Thanks to a couple of great websites, the perfect gift, regardless of who you're buying for, may only be a click away. http://www.findgift.com/ is an excellent website for buying one-of-a-kind gifts. For starters, gift selections are organized by specific occasions such as "anniversary" or "house warming". You may also search for gifts according to the sentiment you wish to express or the type of person you're shopping for. If you're still unsure what to buy, the website provides a monthly "Top 20 Gifts" list as well as something called a "Gift Wizard", which gives you one-on-one gift-buying advice. @Findgift.com doesn't actually stock the gifts it offers; rather it takes you directly to a specific online store that does. The website also offers other free services such as gift registries, email reminders for birthdays and anniversaries, as well as bookmarks which allow you to flag gifts you wish to purchase in the future.Here's a unique gift idea that makes a perfect housewarming present. The item is a hand-drawn, pencil sketch of the person's home based upon a picture you send in. The sketch is drawn by a professional artist and costs under $50. Best of all, no one else is likely to think of it! http://www.unusualthings.biz/ This is another great gift-buying website which deals with, as you might guess, unusual things. The search feature on this site isn't as specific as the one on findgift.com, but it's helpful nonetheless. The best thing about this website is the quirky nature of its gifts. One great example of this is the Rorshock Therapy Game. Based upon the famed Rorschach® psychological test, players are asked to interpret various inkblots. You can then use the accompanying handbook to determine what the interpretation says about each player's psyche. How's that for one-of-a-kind? With prices ranging from $5-75 dollars, there are plenty of fun gifts to choose from on this site. Items ship within 3 days, and there are several shipping options available, depending upon where you live. So the next time you're in need of a special gift, start with these two websites. And if all else fails, there's always gift certificates.
Do you know of any helpful gift-buying websites? Please call and share them with me!


Patty Kent, SFR
720-291-2823
pkent@q.com

How to Increase a Home's Usability

How to Increase a Home's Usability

With buyers looking for homes that will be usable for years as their family needs evolve, design pros are stepping up to meet the challenge with a variety of flexible solutions.

October 2011 | By @Barbara Ballinger

When Creighton and Tracey Gibson built a ranch 15 years ago, Creighton’s job as owner of a franchise that offers nonmedical care and companionship to seniors made him sensitive to his own aging family members’ needs. Accordingly, the couple added some features to their North Carolina home to accommodate them when they moved in.
First, an extra bedroom with kitchenette and a bathroom with grab rails were put in when Creighton’s father moved in after a fall in 1998. After he died and Tracey’s mom, an amputee, couldn’t manage alone, the couple built a ramp at their front door for her wheelchair. The Gibsons have found the arrangement offers benefits to each generation, including for their 11-year-old daughter, who gained a live-in babysitter when she was young and now can offer companionship as she gets older.
Housing aging parents for health, safety, or to avoid loneliness as they’re living longer isn’t the only reason that home owners are altering floor plans:
▪ A rising immigrant population whose cultural traditions often encourage everyone to live under one roof is making the multiple-generation household more common.
▪ The difficult economy is spurring college graduates to do what was once unthinkable — move home and reclaim childhood bedrooms until they land a job or save enough money to be on their own. Ditto for young divorced adults, sometimes with a child in tow.
▪ The tough resale market is convincing empty-nesters to stay put and remodel homes to maximize unused space, including spare kids’ bedrooms.
Because of the differences in needs, ages, traditions, budgets, and property types, there’s not a single layout that works for a large cross-section of consumers, says @Brian Brunhofer, president of @Meritus Homes, a home builder in Deerfield, Ill. As a real estate professional, your job is to help buyers and sellers assess housing options for now and later with three major objectives in mind:

Incorporate Universally Appealing Universal Design

Any home — newly built or remodeled — should consider this concept as much as possible since it strives to make a home safe and useable for a variety of ages, abilities, gender, budgets, and physical challenges, says @John Salmen, member of the American Institute of Architects and founder of Universal Designers & Consultants in Takoma Park, Md. Among its prime tenets:

▪ Easy circulation: Navigating space freely is key, whether people move among different levels or spaces on the same level, Salmen says. Doors and openings should be at least 32” wide for wheelchairs and walkers to get through. Elevators can eliminate stair climbing for those physically challenged or even for home owners needing to carry heavy groceries up stairs. Adding a two-stop model in an existing house might cost between $20,000 and $25,000, but leaving a 4’ by 5’ shaft, so equipment can be installed later if needed, would cost less than $5,000 initially, says Richard Bubnowski, design principal of his eponymous firm in Point Pleasant, N.J.
▪ Good illumination: Aging eyes need three to five times more light than people do at 18 years of age, says Salmen.
▪ Non-slippery floors and low-piled rugs: These help people of all ages avoid falls.
▪ Easy room and appliance access: Instead of knobs, levers facilitate opening doors for young and arthritic hands. Touch faucets allow easier access to water, particularly when hands are sticky or fingers also are arthritic.
▪ Movable storage: Placed under kitchen countertops, these can be rolled away to allow home owners to sit in a traditional chair or wheelchair.
▪ Zero-step entrances: Whether crossing a main door or walking into a shower, these make traversing spaces carefree.
▪ Discreet grab bars: These eliminate an institutional look and can mimic wainscoting or any trim, says Lake Bluff, Ill.-based builder Orren Pickell.

Maximize Existing Space to Avoid Expensive Additions

Before adding space, home owners should make better use of what they have, says designer Marianne Cusato, author of Get Your #House Right (@Sterling Publishing, 2008). “Perhaps there’s stuff that can be put away with affordable storage purchased at places like IKEA, or a rarely used dining room that can become an office,” she says. Other ideas include:
▪ Transforming basements and attics: When houses include these levels, typically unfinished, converting them can cost less than adding on to a first floor, says Pickell. The main expenses may be a nicer stairway; stronger floor or subfloor; better insulation, ventilation, and windows; plumbing for a bathroom; and an outside egress to meet building codes.
▪ Converting dens, family rooms, and garages: These main floor spaces can be remodeled into a bedroom for full- or part-time use for someone not able to climb stairs, and a nearby powder room can be remodeled to accommodate a shower if there’s space, says @Elizabeth M. Sorensen with Dale Sorensen Real Estate in Vero Beach, Fla. When a door to the outside can be built, the suite becomes more desirable and private, says Brunhofer. Adding this type of suite can cost less than a year at a nursing home, says Michigan designer @Leslie Hart-Davidson. “Home owners should think in terms of long-term savings,” she says.
▪ Rethinking empty bedrooms: For home owners whose children aren’t returning, Hart-Davidson transforms bedrooms into gyms, hobby rooms, offices, and walk-in storage.
▪ Melding indoors and outdoors: Homes become more usable and enjoyable by opening them to the outdoors through large windows and walls that provide a visual and physical connection, says Irvine, Calif.-based architect Robert Hidey. The outdoor areas themselves become more room-like and functional when designed with distinct areas to cook, sit, and dine, preferably with a “roof” and “walls” to screen hot sun, rain, and bugs, he says.

Build New to Meet Needs for the Long Haul

Constructing a new home from the get-go to meet a range of life stages helps avoid expensive alterations. Among the most usable designs:
▪ Hip ranches: Popular after World War II as new suburbs sprouted, they’re attracting attention again since they offer a cost-effective plan and main-level master suite. Brunhofer estimates the layout may run 10 to 15 percent less than a comparable two-story home. His firm sometimes adds a second master bedroom for future family needs.
▪ Loft-style plans: Whatever the house style, Bubnowski advocates one open sweep inside for living, eating, and cooking. So does @Colleen Reardon, manager and sales associate at K. Hovnanian Homes in Orlando, Fla., which conducts extensive research and has seen interest also in open ceilings and bigger living spaces.
▪ The “New Economy Home”: Cusato’s efficiently scaled 1,771 square-foot, two-story “New Economy Home” was planned with the latest demographic trends in mind. The house is compact, so it costs less to build and is easier to maintain than most other homes, and features one master suite upstairs and a second one downstairs off the kitchen with an adjacent bathroom and back door to a porch and the outdoors.
▪ Bonus rooms: Once built above a garage for myriad uses, the bonus room is back, as it’s able to change functions as family needs demand. Today it’s a playroom; tomorrow it’s a home office or gym.
▪ Ancillary cottages: When land, budget, and codes permit, some #home owners build a separate structure away from the main house, says Cusato. These detached bungalows or casitas are a way to gain a separate living or work space for family or a hideaway for guests who stay a while, says @Hidey.  

Real Estate Topics

Now is the time to buy.  Call Brad Gale at 720-217-3442 to get qualified.