Welcome back for Part 2, great information from HouseLogic for Homeowners or those thinking of purchasing a new home in North County San Diego, or anywhere for that matter!

How much coverage do I really need?

OK, now that you’re clear on what type of policy you have, you need to figure out how much policy you truly require in dollar terms. Let’s say you purchased your home five years ago and insured it for $200,000. Today, it’s worth $225,000. Simply increasing your coverage to $225,000 may nonetheless leave you underinsured. Here’s why.

The key to determining how much dwelling coverage you need isn’t the value of your home but the money you’d have to pay to rebuild it from scratch, says Carlos Aguirre, an agent for Liberty Mutual Insurance in Arlington, Texas. Call your local contractors’ or homebuilders’ association and inquire about the average per-square-foot construction cost in your area. If it’s $150 and your home is 2,000 square feet, then you should be insured for $300,000.

There’s no rule of thumb for how much your homeowners insurance should cost. Insurers use numerous factors—age, education level, creditworthiness—to determine pricing, so the same policy could run you more than your neighbor. In recent years the average annual premium was $804. Oshinsky advises against scrimping on insurance because big increases in coverage probably cost less than you’d think. He recently purchased a liability policy that cost $250 for the first $1 million in coverage. Adding another $1 million increased his premiums only $12.50 more.

How can I lower my premiums?

The higher your deductible, the amount you pay out of pocket before coverage kicks in, the lower your premium. Landing on the appropriate deductible level requires remembering that insurance should cover major calamities, not minor incidents, says Foley, the independent insurance broker. Most homeowners should be able to absorb modest losses like a broken window pane or a hole in the drywall without filing claims. If you can, then you’re wasting money with a $250 deductible.

Foley’s rule: If you’re a first-time homeowner and don’t have a lot of savings, moving up to a $500 deductible will probably stretch your budget. However, if you live in a ritzy home and drive an expensive car, then you should be able to afford a $1,000 deductible. In Milltown, N.J., for example, the premium for a $200,000 home with a $500 deductible would be $736, according to Foley; moving up to a $1,000 deductible drops the annual premium to $672. That’s $64 in savings. 

Every major insurer offers discounts to various groups, such as university employees or firefighters. Figure about 5%. Ask which affiliations would entitle you to a discount and how much. If an AARP membership would result in a $50 savings, pay the $16 dues and pocket the $36 difference. Many insurers also offer discounts ranging from 1% to 10% or more for installing protective devices like alarms and deadbolt locks, for going claim-free for an extended period, or for insuring both your car and your home with the same carrier.
 

By: G. M. Filisko

Plenty to think about here…think you’d like to live in North San Diego County?

Part of the Real Estate world is knowing about your Homeowners Insurance options. 

Here is a very good article from HouseLogic for North San Diego County homeowners and everyone.

Homeowners Insurance: Time for an Annual Check-Up

It’s time for your annual check-up. The good news is that for this one, you won’t have to don one of those revealing hospital gowns—and you may walk away with a healthier pocketbook. We’re talking about a homeowners insurance check-up, a task you should complete once a year, ideally around renewal time. This will ensure your policy still provides the right level of coverage for your family, and your premium isn’t costing you more than it should.

Remember, homeowners insurance is essential. The coverage is designed to protect your home and its contents, as well as shield you from liability for accidents and such on your property. Block out an hour of your time, call an insurance agent, and get answers to these three important questions.

What type of coverage do I have?

The most effective type of coverage is known as “replacement cost,” which covers, up to your policy limits, what it would take today to rebuild your house and restore your belongings, says Jerry Oshinsky, a partner at Jenner & Block in Los Angeles who has represented homeowners in litigation against insurers.

“Extended” replacement cost coverage provides protection to your policy limit, say $500,000, and then perhaps another 20% of the cost after that. Percentages vary, but in this example you could recoup up to $600,000 on a $500,000 policy, assuming your losses reach that high. Extended coverage can compensate for any unanticipated expenses like spikes in construction costs between policy renewals. Now harder to find due to the industry shift toward extended replacement coverage, “full” or “guaranteed” replacement coverage covers an entire claim regardless of policy limits.

A less attractive alternative is “actual cash value” coverage that usually takes into account depreciation, the decrease in value due to age and wear. With this type of policy, the $2,000 flat-screen TV you bought two years ago will be worth hundreds of dollars less today in the eyes of your claims adjuster. Kevin Foley, an independent insurance broker in Milltown, N.J., favors replacement cost coverage unless you can save at least 25% on the premium for going with actual cash value coverage instead.

Even if you have replacement cost protection for your dwelling and personal property, don’t assume everything is covered. Structures other than your home on your property—such as a detached garage or swimming pool—require separate coverage. So too do luxury items like jewelry, watches, and furs if you want full replacement cost because reimbursement for those items is typically capped.

By: G. M. Filisko

Please check back for Part 2 coming soon! It is great to live here in North San Diego County!

Money magazine just published this new article, interesting reading for those on the fence about the Real Estate market.

By Ali Velshi, CNN chief business correspondent
(MONEY Magazine) 

Is now the right time to invest in a house?

Trick question. Actually, it’s two questions.

Question No. 1: Is now the time to buy?

Question No. 2: Is buying a house a good investment?

The first answer is easy: With a few exceptions, if you have 20% to put down and good
credit, now is a great time to buy. That’s been the case all year, and I’d argue that we’re
probably closer to the end than to the beginning of the really great time. Let me explain.

Back in January home prices had dropped 28% from their peak. More important, interest
rates were at historical lows. By locking in a mortgage for 15 or 30 years on a value-priced
home, you were getting an incredible deal, even if home prices decreased. (I took my advice
and bought a New York City apartment.)

At the time, I thought that prices and rates were more likely to rise than fall. I was half right:
Home values have been inching up since the spring, but mortgage rates, incredibly,
dropped further.

By August (the latest numbers available) the median home price had risen 1% over a year
ago, but 30-year rates had dropped a half-point to 4.5%. Assuming 20% down and a 30-
year mortgage, the total cost of owning a median-priced home is now down $16,000 from a
year ago.

Home values may waffle over the coming year, but because Americans take out such large,
long mortgages, rates are what really matter. And I am more likely to grow hair than see 30-
year mortgage rates drop below 4%. It’s far more likely that rates (and the cost of
ownership) will rise.

Now for question No. 2: Is a house a good investment?

First, it depends on what you mean by investment. If your definition is strictly about dollars
returned, a house probably won’t be a great use of your capital. If you bought the median-
priced house today with 20% down, to recoup your total costs (and I’m not including property
taxes and maintenance here) over three decades, the home’s value would have to rise
about 3% a year.

That’s likely, but you’ll almost certainly (we all hope) do much better than that in the stock
market. The fact is, however, that that’s the normal case for housing; the booms that began
after World War II and in the late 1990s were the exceptions.

Of course, there are places where you might do better. I bought my condo in Manhattan, a
small island that, by virtue of the business done on it, has a sustained demand for property.
And smaller, energy-efficient housing in cities or inner suburbs around San Francisco or
Chicago is likely to be in higher demand than big, outer suburban homes with long
commutes to Las Vegas or Atlanta.

According to urban and environmental planning professor William Lucy of the University of
Virginia, this move toward urbanization in American housing is the reversal of a trend that’s
been in place since 1945. Keep it in mind when making your buying decisions.

That said, the key point to remember is this: Buying a fairly priced home at today’s rates may
be the best deal you will ever get. And who knows? It may even turn out to be a good
investment.

Home Buyers, North San Diego County is such a wonderful place to live, such divertsity. You will love it here!

Carlsbad State Beach 

Carlsbad State Beach, from Pine Street south to Cannon Road, including Frazee State Beach/Tamarack Surf Beach and Warm Water Jetty (in front of the power plant), is one of San Diego’s most popular beaches. The City of Carlsbad provides beach access at Pine Avenue, Sycamore Avenue, Maple Avenue, Cherry Avenue and Tamarack Avenue. Two seawalls connect Pine Avenue and Tamarack Avenue. Dogs on leashes are allowed up top, but not on the lower path. Public restrooms and showers are at both ends of the path. A seawall also extends from Tamarack south to Cannon Road for those looking for a longer trek.   

South Carlsbad State Beach

South Carlsbad State Beach stretches from La Costa Avenue to Palomar Airport Road and includes a popular 220 site camping area (make reservations far in advance) and two day use areas. Beach areas within the South Carlsbad State Beach include the North Ponto and South Ponto beaches, some of the widest beaches in North County, and Terramar beach. The South Ponto Beach, just south of the campground, has a $6 pay parking lot, restrooms and showers. The beachfront closest to the parking lot is flagged for surfing only. There is more parking along Carlsbad Blvd and nearby residential streets.

Safety Reminders

For your safety, there are lifeguard towers stretching down the beach as well. Remember there are safety rules, no fires on the beach, except where designated in the campgrounds, no dogs, except  on leashes in the campgounds, no glass containers or alcoholic beverages, and no vehicles.

Whether you live in or are visiting our great North San Diego County, the Carlsbad beaches are not to be missed!

More posts on the Beaches of North County coming soon.

Holiday Lighting Safety Checklist

Before you plug in and light up for the holidays, run your decorations through this quick safety check.

Any lights that are going outside should be weather-resistant–that goes for extension cords, too.

Lights, inside and out, are beautiful parts of the holiday season. But as with all electrical devices, you need to take special precautions. Before you deck the halls, run through this checklist to keep your holidays merry and bright.

Inspect light strings  ~ Discard any that are damaged. Frayed or cracked electrical cords or broken sockets are leading fire hazards. 

Follow the manufacturer’s instructions for connecting multiple strings  ~ The general limit is three strings.  Light strings with stacked plugs can usually accommodate greater lengths than end-to-end connections.

Replace burned-out bulbs promptly  ~ Empty sockets can cause the entire string to overheat. 

Make sure outdoor lighting is UL-rated for exterior use ~  Exterior lights, unlike those used inside the house, need to be weather-resistant. The same goes for any extension cords used outdoors.

Don’t use outdoor lights indoors ~  They’re too hot for interior use. For the coolest bulbs and greatest energy efficiency, try LED lights, which come in a wide range of styles and colors.

Don’t attach light strings with nails or staples  ~  They can cut through the wire insulation and create a fire hazard. Only use UL-approved hangers.

Take exterior lights down within 90 days ~  The longer they stay up, the more likely they are to suffer damage from weather and critters chewing on them. 

Store lights safely ~  Tangled lights can lead to damaged cords and broken sockets. After the holidays, coil each string loosely around a stiff piece of cardboard, wrap it in paper or fabric to protect the bulbs, and store in a sturdy container until next year.

By: Pat Curry

More Tips for Buying a Home in North San Diego County

5. Think long term

Your future plans may dictate the type of home you’ll buy. Are you looking for a starter house with plans to move up in a few years, or do you hope to stay in the home for five to 10 years? With a starter, you may need to adjust your expectations. If you plan to nest, be sure your priority list helps you identify a home you’ll still love years from now.

6. Work with a REALTOR®

Ask people you trust for referrals to a real estate professional they trust. Interview agents to determine which have expertise in the neighborhoods and type of homes you’re interested in. Because home buying triggers many emotions, consider whether an agent’s style meshes with your personality.

Also ask if the agent specializes in buyer representation. Unlike listing agents, whose first duty is to the seller, buyers’ reps work only for you even though they’re typically paid by the seller. Finally, check whether agents are REALTORS®, which means they’re members of the NATIONAL ASSOCIATION OF REALTORS®. NAR has been a champion of homeownership rights for more than a century.

7. Be realistic

It’s OK to be picky about the home and neighborhood you want, but don’t be close-minded, unrealistic, or blinded by minor imperfections. If you insist on living in a cul-de-sac, you may miss out on great homes on streets that are just as quiet and secluded.

On the flip side, don’t be so swayed by a “wow” feature that you forget about other issues—like noise levels—that can have a big impact on your quality of life. Use your priority list to evaluate each property, remembering there’s no such thing as the perfect home.

8. Limit the opinions you solicit

It’s natural to seek reassurance when making a big financial decision. But you know that saying about too many cooks in the kitchen. If you need a second opinion, select one or two people. But remain true to your list of wants and needs so the final decision is based on criteria you’ve identified as important. You will love living in North San Diego County!

By: G. M. Filisko

1. Know thyself

Understand the type of home that suits your personality. Do you prefer a new or existing home? A ranch or a multistory home? If you’re leaning toward a fixer-upper, are you truly handy, or will you need to budget for contractors? Consider how long you plan to reside here.

2. Research before you look

List the features you most want in a home and identify which are necessities and which are extras. Identify three to four neighborhoods you’d like to live in based on commute time, schools, recreation, crime, and price. Then hop onto http://associates.era.com/kathybarkdull  to get a feel for the homes available in your price range in your favorite North San Diego County neighborhoods. Use the results to prioritize your wants and needs so you can add in and weed out properties from the inventory you’d like to view.

3. Get your finances in order

Generally, lenders say you can afford a home priced two to three times your gross income. Create a budget so you know how much you’re comfortable spending each month on housing.  Being pre-approved is essential in this market.

Gather your financial records and meet with a lender to get a prequalification letter spelling out how much you’re eligible to borrow.

4. Set a moving timeline

Do you have blemishes on your credit that will take time to clear up? If you already own, have you sold your current home? If not, you’ll need to factor in the time needed to sell. If you rent, when is your lease up? Do you expect interest rates to jump anytime soon? All these factors will affect your buying, closing, and moving timelines.

By: G. M. Filisko

Stay tuned for Part Two for tips on finding a great home in North San Diego County!

Taking a little departure from our exploration of North County Beaches, here is some real estate information worth knowing. When you buy a fixer-upper house, you can save a ton of money, or get yourself in a financial fix.

Follow these seven steps, and you’ll know how much you can afford, how much to offer, and whether a fixer-upper house is right for you.

1. Decide what you can do yourself.

TV remodeling shows make home improvement work look like a snap. In the real world, attempting a difficult remodeling job that you don’t know how to do will take longer than you think and can lead to less-than-professional results that won’t increase the value of your fixer-upper house.

• Do you really have the skills to do it? Some tasks, like stripping wallpaper and painting, are relatively easy. Others, like electrical work, can be dangerous when done by amateurs.
• Do you really have the time and desire to do it? Can you take time off work to renovate your fixer-upper house? If not, will you be stressed out by living in a work zone for months while you complete projects on the weekends?

2. Price the cost of repairs and remodeling before you make an offer.

• Get your contractor into the house to do a walk-through, so he can give you a written cost estimate on the tasks he’s going to do.

• If you’re doing the work yourself, price the supplies.

• Either way, tack on 10% to 20% to cover unforeseen problems that often arise with a fixer-upper house.

3. Check permit costs.

• Ask local officials if the work you’re going to do requires a permit and how much that permit costs. Doing work without a permit may save money, but it’ll cause problems when you resell your home.

• Decide if you want to get the permits yourself or have the contractor arrange for them. Getting permits can be time-consuming and frustrating. Inspectors may force you to do additional work, or change the way you want to do a project, before they give you the permit.

• Factor the time and aggravation of permits into your plans.

4. Doublecheck pricing on structural work.

• If your fixer-upper home needs major structural work, hire a structural engineer for $500 to $700 to inspect the home before you put in an offer so you can be confident you’ve uncovered and conservatively budgeted for the full extent of the problems.
• Get written estimates for repairs before you commit to buying a home with structural issues.
• Don’t purchase a home that needs major structural work unless:
• You’re getting it at a steep discount
• You’re sure you’ve uncovered the extent of the problem
• You know the problem can be fixed
• You have a binding written estimate for the repairs

Carlsbad is home to seven miles of pristine, sun-drenched beaches. Some great surf spots are here, and plenty of water and sand for all to enjoy.  Swimming, snorkeling, beach-combing, strolling the water’s edge, soaking up the sun, enjoying a picnic, savoring the sunset, no matter how you spend your time on the beach, you’re sure to love it in Carlsbad.  Beaches north of Pine Avenue to the Oceanside border are owned jointly by the State and the coastal property owners along this stretch.  All are open to the public, and the City of Carlsbad provides public access to the beach, from the south at  Carlsbad Village Drive, north to Grand Avenue, Christiansen Way, Beech Avenue and furthest north at Ocean Street/Rue des Chateaux.  The beach here at Ocean Street is known by the local surfers as “The Point.”  

While these are great, uncrowded beaches, be aware that there are no lifeguard services, restrooms, showers or other amenities at these beaches.  Parking is available on the side streets, and there is a public parking lot at Carlsbad Village Drive and the south end of Ocean Street, just west of Coast Highway.

All of the beaches are walking distance from the Village of Carlsbad, where there is a large variety of restaurants and shops to suit just about everyone.

We cannot leave North Carlsbad Beaches without mentioning the beautiful Buena Vista Lagoon, which became California’s first ecological reserve in 1969. With 350 acres of fresh water, the lagoon is owned and managed by the California Department of Fish and Game.  It lies on the border between Carlsbad and Oceanside,  giving sanctuary to more than 103 bird species, 18 mammals, and 14 amphibians and reptiles.