OPEN HOUSES IN ENGLEWOOD
If you’re interested in buying a home in Englewood, I’d love to help you.
I live, work and volunteer in this wonderful city.
Contact Judy if you’d like to talk about finding your new home!
Saturday September 30th
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If you’re in the market to buy or sell a home contact Judy
Almost 2 years ago now we were hit by a bad wind & hail storm, here in Englewood, where I live. After the storm passed we inspected our roof and realized we were going to have to have it replaced. The good news for us? Our homeowner’s insurance covered the replacement cost of our roof. The bad new for our next door neighbor? His insurance only covered the actual cash value. Our neighbor ended up having to come up with almost 50% of his cost to replace his roof, boy was he mad!
This article was generously provided by Taylor Bigandt of American Family Insurance. Taylor is a local Insurance Producer in the Englewood area. The agency that Taylor works for has two locations, one in Lakewood and the other in Englewood. Taylor is the Sales Lead Manager at the Englewood office. You can reach Taylor by phone or email at 303-462-2100 or firstname.lastname@example.org.
Summer is fast approaching, and you know what that means? Afternoon thunderstorms. These storms place Colorado in the middle of “Hail Alley”. Hail season starts in mid-April and goes through mid-August. The damage can be catastrophic and may leave you wondering what to do next. If you have the correct coverage on your Homeowners Insurance when that next storm hits, you will not have to worry about what to do next. Many people are not educated by their agents on the coverage that will help them save money when a hailstorm or windstorm destroys their roof. When your roof is destroyed by wind or hail, there will be two different coverages that you can be covered under. The first coverage that I personally recommend having on your Homeowners Insurance is Roof Replacement Cost Coverage. The definition of replacement cost is “the current cost of replacing an existing asset or property with the same quality of construction”. The second coverage is Actual Cash Value. The definition of actual cash value is “the current cost of replacing an asset less the depreciated value”.
Roof Replacement Cost Coverage means that your insurance company will cover your roof at a replacement cost value, less your deductible, without taking into consideration the depreciated value. This means that if your roof costs $20,000 to replace with a $1,000 deductible, the insurance company will pay $19,000. If your policy does not include Roof Replacement Cost Coverage then your roof will be covered at Actual Cash Value. Actual cash value means that your insurer will pay to replace your roof, less the deductible and depreciation for the age of the roof. For example, your roof costs $20,000 to replace and it is 10 years old with a depreciating value of $500 per year along with a $1,000 deductible. The insurance company will then pay out $14,000 ($20,000-$1000=$19,000-$5,000(depreciation) =$14,000) leaving you to pay $6,000 to get your roof replaced.
When shopping for a policy it is important to understand what your wind and hail deductible will be. Some insurance companies are starting to go to a percentage deductible. Having a percentage deductible will help you save at the time of purchase on your homeowners insurance but most people don’t understand the consequences financially by selecting this deductible. A percentage wind/hail deductible will be based on your dwelling coverage. If you own a home that costs $400,000 to replace and you have a 1% deductible for wind and hail then your deductible will be $4,000. If you do not have $4,000 to spend then the policy you purchased will be of no use and your roof will not be replaced.
At American Family Insurance where I am currently employed we still offer a $1,000 wind/hail deductible. In addition, we offer Roof Replacement Cost Coverage on roofs up to 15 years old. This is longer than the industry average which is about 10 years. Our homeowner’s product will be able to properly protect your home during hail season in Colorado.
Again, if you have any questions or would like to inquire about a quote from American Family Insurance please give Taylor a call at 303-462-2100 or email Taylor at email@example.com
If you live in Colorado and haven’t already received your tax bill in the mail you should see it shortly. Here are some things you should know about property taxes and how they are paid.
Buying New Construction – Final Sales Price
You see the signs everywhere “NEW HOMES STARTING IN THE LOW $XXX’s”. In the Denver Metro area any sign that says “starting in the low $300’s” will likely get a lot of attention. It’s tough to find a nice house, let alone a brand new house, under $350,000 anywhere along the front range of Colorado. The price listed on the signs are the ‘base price’ of the home. Unlike purchasing an existing home the ‘base price’ on the marketing materials is merely a starting point. Before you start packing up your belongings to move, you’ll want to ask the sales person specific questions about any additional costs.
Below is a list of items to take into account when calculating the actual sales price of a new home.
The cost of the interior upgrades I wanted was about $30,000 (pretty close to 10%). (granite counter-tops, wood flooring throughout the main level, tile floors in the bathrooms, a gas range in the kitchen, an additional bedroom & bathroom and a covered patio). It can add up very quickly. Every lot had a lot premium associated with it. Lot Premiums ranged from $4000 to $10,000 depending on the lot and location. The total of my additional costs was $34,000 or 11 %.
Base Price $311,000
Interior Upgrades $30,000
Lot Premium $4,000
Total Purchase Price $345,000
Please Note: If you are just starting out on the home buying process and aren’t even sure if new construction is what you want to buy, please download my Home Buyer Questionnaire, to get you started.
Buying a New Home in Colorado
This past weekend I stopped in to see some model homes in a new home development. While talking with the saleswoman I realized that many home buyers might not know what questions to ask to be sure new construction is right for them. Buying a new construction home can have different challenges compared to purchasing an existing home.
Please Note: If you are just starting out on the home buying process, and aren’t even sure if new construction is what you want to buy, download my Home Buyer Questionnaire to get started.
Here are a few things to consider asking about when speaking with a salesperson at a new development.
Sales Price – Unlike purchasing an existing home, the base price provided for each ‘model’ is a starting point. There are additional costs to be considered which will vary depending on the builder and the buyer’s choices. These costs may include: lot premiums, interior upgrades, landscaping, exterior finishes and more. For a longer discussion on base price and sales price click here.
Build Schedule and Lot Releases – Large developments will typically be built in phases. If there is a high demand for homes the builder may choose to release lots in groups as construction progresses. You may need to wait to purchase a home on the lot you prefer.
Property Taxes – Property taxes in Colorado vary widely throughout the Metro Denver Area. For new construction you can’t just rely on county records for property tax values. Vacant land is taxed differently than a lot with a completed home. Be sure you get a good estimate on what the property tax rate will be on your finished home from the salesperson.
Financing & Contracts – Builders may encourage you to use their finance partners through incentives which not necessarily a bad thing, saving money is always good. Be cautious when using your own lender and be sure you are clearly communicating the important dates & deadlines or you could be in breach of your purchase contract. Builders DO NOT use the same contracts as those used when purchasing a pre-existing home.
Home Owner’s Association (HOA) vs Metro District – Most, not all, new developments will have either a Home Owner’s Association or a Metro District. These are governing entities that will provide guidelines for the community in which you will be living. There may or may not be a fee associated with belonging to the HOA or Metro District and the cost and amenities may vary widely between builders and communities.
Feel free to reach out to me for more information on purchasing a new or existing home. I am happy to help in whatever way I can.
If you are just starting out on the home buying process and aren’t even sure if new construction is what you want to buy, download my Home Buyer Questionnaire, to get started.