Author: Ed Powers

Goal-Setting: When The Goal is Buying a Home

WRITTEN BY JAYMI NACIRIPOSTED ONSUNDAY, 27 JANUARY 2019 05:30

Saving for a down payment can seem like an overwhelming task if you’re on a tight budget. It’s just plain not easy to make a plan, stay on that plan no matter what, stay motivated even when your plan goes temporarily awry, and – finally – achieve your desired result. So how do you get from “Broke wannabe homebuyer” to “Gimme those keys!”? It’s simple. Just set a goal.

“The idea of goal setting involves establishing specific, measurable, achievable, realistic and time-targeted (S.M.A.R.T) goals,” said Wikipedia. “On a personal level, setting goals helps people work towards their own objectives.”

So how does that relate to your down payment? It’s no different than setting a goal to lose weight or get a college degree or excel at your job. They all take determination. But when it comes to buying a home and getting together the money required, there are tricks and tips you can use to make it easier and make that goal achievable.

1. Make a plan and write it down

Get out a piece of paper or type into your phone/computer a definitive statement that encapsulates your down payment goal – as long as it’s in a place you can easily access it. Then break down that goal by the amount you need to save weekly or monthly and a goal date for being able to buy that house. The simple act of putting your plan down on paper (or on screen) makes it real. Take out the piece of paper or pull up the email you wrote to yourself whenever you need a pick-me-up.

Huffington Post recommends writing goals down in a brand-new notebook or keeping them “in Evernote(download on your desktop and the app for your phone and tablet) so that you can reference them weekly.”

2. Make some budget cuts

It may not be easy. But saving for something as important as a new home is worth it. Look over your monthly bank statements for areas to cut back. Take out any set monthly expenses—rent or existing house payment, car payment, and anything else that can’t change.

Then look at car insurance, health insurance, and anything else that could change if you made changes to your coverage.

Then consider things like cell phone bills, cable, internet service. If you’re not using all your data on your cell phone plan, that may be a place to trim. Perhaps you don’t need such fast DSL service. Every little bit helps.

And here’s one that really hurts: cutting out your daily Starbucks latte. I know. We’re crying with you.

Can’t go cold turkey? Cut back from five lattes a week to two. You just saved over $500 in a year.

3. Let someone else make some cuts

If you’ve gone through your budget carefully and don’t see any (or many) easy places to cut, let a best friend or close family member take a look at your budget. They might see some things you don’t, or might be able to ask some hard questions you aren’t willing to ask yourself (maybe you don’t need EVERY SINGLE MOVIE CHANNEL DISH OFFERS?!).

Cutting back on your cable or satellite TV doesn’t seem like much. But paying $30 less per month less could save you $360 in a year. And you can always go to their house to watch Game of Thrones while you’re in savings mode.

4. Know how to bounce back

So you went out to lunch with a friend and the next thing you know, you’re at the mall dropping a couple hundred dollars on clothes. Or you went to the sporting goods store to buy a gift and walked out with $200 in non-returnable camping equipment.

Oops.

Go ahead and feel the pain of the buyer’s remorse. Slap yourself on the hand. And then tell your bad-influence friend they aren’t allowed to come around again until you’re a homeowner. After all, you need somewhere to place the blame. And now you can move on and get back on your plan.

5. Look for ways to make extra money

Do you have skills you could use to bring in a few bucks? Perhaps you can put your Spanish fluency to good use and tutor high school kids. Maybe you can take that piece of furniture you refinished and turn it into a weekend business, hitting early-morning garage sales on weekends and selling your pieces on Craigslist.

6. Cook your dinner

Eat out five nights a week now? Cut back to two. If you’re not a fan of cooking, sub in easy-to-make or already-made meals on the other three nights. Grab a roasted chicken from the supermarket plus a bagged salad, or a ready-to-nuke meal from a specialty market like Trader Joe’s or Costco.

7. Not ready to give up your restaurant habit?

Those coupon packs that come in the mail actually have some useful stuff inside, including restaurant discounts. If you can save 20 percent off your bill a couple times a week, you won’t feel so guilty for dining out.

Another great way to save when eating out is by timing it to nights when restaurants have specials, like kids’ eat free nights. Googling “kids eat free” should yield list of participating restaurants in your area.

8. Don’t become a hermit

Cutting back doesn’t have to mean locking yourself in your house, never using any gas, never going to any movies or seeing your friends socially.

But make sure your friends and family know about your plan so they can support you while you’re saving. And you can involve them in your plan by enlisting their help to plan fun and free (or cheap) get-togethers.

9. Channel Stuart Smiley

You don’t have to stand in the mirror and repeat “I’m good enough. I’m smart enough. And doggone it, people like me” over and over (but it would be hilariousif you did). By simply staying positive, you can keep on keeping on. If you believe at all in the power of positive thinking, this is the time to act on it. And if you don’t, fake it!

10. Keep your eye on the prize

When everyone runs off to the Caribbean for their summer vacation, you’re probably going to want to chuck it all. But remember that the Caribbean isn’t going anywhere. You can luxuriate on an island with turquoise water lapping at your feet while you drink something frothy out of a pineapple next year – after you’ve closed escrow.

And it’ll taste so much better with the jangle of a new set of house keys in your pocket.

No one likes to think about disasters. Colorado had one of the most expensive flood events only five years ago https://goo.gl/4trwcc. Severe weather, fire, theft—or even a seemingly small issue like a broken pipe—can wreak havoc on your Fort Collins home and result in thousands of dollars in damages. Fortunately, a good homeowners insurance policy can offer you peace of mind that you and your family will be financially protected if disaster strikes. A homeowners insurance policy covers your home—as well as the belongings in it—in case of theft, accidental damage, or certain natural disasters. In fact, most financial institutions require that you purchase homeowners insurance before they issue a mortgage. While coverage varies, most policies also help to protect you from liability should someone outside your household become injured on your property. And that liability coverage is often extended to include damage you (or anyone living in your household) may do to someone else’s property.¹ With all the protection offered, it’s equally important to understand what a home insurance policy does NOT cover. For example, homeowners insurance won’t pay to repair malfunctioning systems and appliances within your home(for these home items there is Home Warranty Insurance). Also, insurance terms vary, but standard policies typically exclude coverage related to floods, earthquakes, slow leaks, power failure, neglect, aging, faulty repairs or construction materials, and acts of war (for these events consult with your insurance agent to upgrade your policy to Homeowners 2 or a Homeowners 3 policy).²Finally, there is Mortgage Insurance that covers your lender in case you default on the mortgage and the lender needs to be paid off where you pay the premiums in your monthly installments that can be stopped after the house has enough equity built up (call your mortgage company and ask them if you have enough equity).  

Homeowners Insurance Covers Things Like: ●      Structure ●      Roof ●      Windows ●      Furniture/Personal Belongings ●      Liability for Non-Residents Injured on Property ●      Liability for Damage or Injury Caused by You or Your Pets

Most Standard Policies DON’T Cover: ●      Malfunctioning Systems & Appliances ●      Floods ●      Earthquakes ●      Slow Leaks ●      Power Failures ●      Neglect or Aging ●      Faulty Repairs ●      Acts of War

  NARROWING THE COVERAGE GAP So how do you minimize your risk when so many potential issues are excluded from a standard homeowners policy? Many insurers offer supplemental coverage options that can be tacked on to a basic policy. We explore this further in the section below on “7 Tips for Purchasing Homeowners Insurance.” Some homeowners also choose to purchase a home warranty, which covers many of the systems and appliances in your home that are NOT covered by homeowners insurance. Home warranties are separate from homeowners insurance, so if interested you’ll need to seek out a policy through a dedicated provider. While terms vary, a home warranty will often pay to repair or replace components of your HVAC, electrical, plumbing, and some appliances that fail due to age or typical wear and tear. Unlike homeowners insurance, home warranties aren’t required by mortgage companies. But many homeowners like the added financial protection and peace of mind that home warranties provide.³  Keep in mind, if you do purchase a home warranty, you will still be responsible for paying a service fee, or deductible, every time you use it. And you will be limited to using service providers who are contracted through your home warranty company. 7 TIPS FOR PURCHASING HOMEOWNERS INSURANCE Whether you’re shopping for a new policy on your first home or you’re considering switching providers on an existing policy, it’s important to do your research beforehand. Not all insurance policies—or providers—are created equal. A little due diligence can save you time, money, and hassle in the long run.

1. Prioritize Service and Value When choosing an insurance provider, ask around for recommendations. Check with neighbors, friends, and family members, particularly those who have filed an insurance claim in the past. Find out if they had a positive or negative experience. Read online reviews. Ask your real estate agent for a referral to a reputable insurance broker who can help you compare your options.
   Don’t just choose the cheapest policy. Instead, search for one that offers excellent client service and provides the best coverage for the cost.
2. Choose the Right Level of Coverage Your policy limits should be high enough to cover the cost of rebuilding your home. Don’t make the common mistake of insuring your home for the price you paid for it. The cost to rebuild could be higher or lower, depending on the value of your land, your home’s unique features, market factors, new building codes, and local construction costs.⁴
   Also, consider whether you need a higher level of liability insurance to protect your assets. If your investments and savings exceed the liability limits in your policy, you may need to purchase an excess liability or umbrella policy. Ultimately, you should make sure your coverage is adequate to mitigate your losses—but don’t pay for excess insurance you don’t need.
3. Inquire About Additional Coverage Ask your insurance agent about additional coverage options that can help close any gaps you have in your policy.
   For example, if you’re in a flood or earthquake-prone area, experts strongly recommend that you add those coverages to your policy. In fact, flooding is the most frequently occurring natural hazard, and a significant percentage of insurance payouts are for homes outside “flood zones,” or areas known to be at risk of flooding. So even if your home is not technically located in a flood zone, you may want to add flood coverage to your policy, just in case.⁵ Expensive jewelry, furs, collectibles, or artwork may not be fully insured by a standard policy. Ask about raising your limits for any items of particular value, or check with a specialty insurer about a separate policy for such items.
4. Decide on “Replacement Cost” or “Actual Cash Value” Insurers can use a variety of methods to determine how much they will pay to reimburse you for a loss, but the two most common are “replacement cost” or “actual cash value.”
   If your seven-year-old sofa is damaged in a fire, replacement cost coverage will pay you the cost to purchase a new, comparable sofa at today’s prices. Actual cash value coverage will pay you for the depreciated value of the sofa you lost—so what you would pay to buy a seven-year-old sofa rather than a new one.⁶ While a replacement cost coverage policy will result in a bigger payoff if you suffer a loss, it will probably require a larger annual premium. Compare both options to find out which is the better fit for you.
5. Consider a Higher Deductible A deductible is the amount of money you are responsible for paying on a loss before your insurance company will pay a claim. Opting for a higher deductible can reduce your premiums.
   Note that in some cases, your insurance policy may have a separate or higher deductible for certain kinds of claims, such as those caused by floods, windstorms, hail, or earthquakes. While a higher deductible can save you money on your premiums, opt for one that is still affordable given your current financial situation.
6. Try Bundling Your Coverage Combining your home, automobile, and other policies under one insurer can often result in a significant discount. And some insurers offer additional benefits, such as a single deductible if property insured by multiple policies is damaged. For instance, if a fire destroys your home and your car, you may only have to pay the higher of the two deductibles. Bundling can also make payment and renewal of your policies more convenient.⁷
   However, bundling isn’t always the best or least expensive option. In some cases, you may find better coverage options, service, and/or pricing if you split your policies between multiple insurers. So be sure to consider all of your options before making a final decision.
7. Reassess Your Policy Each Year Even if you’ve done all your due diligence before purchasing a homeowners insurance policy, don’t set your annual renewal on autopilot. Instead, when it comes time to renew, take some time to consider factors that have changed over the past year.
   For example, have you made any home improvements that would require you to raise your coverage limits? Have you made any security or safety improvements that qualify you for a discount on your premiums?⁸ Has there been a shift in market conditions that would make it more or less expensive to rebuild your home now? If so, you may need to adjust your coverage levels accordingly. If you’ve made any changes to how you use your home, you may need to adjust your policy, as well. For example, if you’ve started a home-based business or occasionally rent out your home on a home-sharing site, you may not be fully covered by your existing policy.⁹ Finally, consider any changes to your financial situation that may require increased liability coverage limits. If you’ve grown your investments or inherited property, it may be time to purchase additional coverage to protect your expanding asset base.

MINIMIZE RISK, MAXIMIZE VALUE Now that you understand the basics of homeowners insurance, you should be ready to start shopping for a policy that best fits your needs and budget. Your goal should be to minimize your risk while maximizing the value your policy provides. While you never want to leave yourself without a safety net should disaster strike, you also don’t want to overpay for insurance you don’t need (and will hopefully rarely use). Aim to strike a balance that will provide you with adequate protection at an affordable price. NEED MORE GUIDANCE? WE CAN HELP If you’re in the market to purchase homeowners insurance or a home warranty, give us a call! We get a lot of feedback from clients on the best (and worst) providers and are happy to share what we know. Message me to put you in touch with a trusted insurance professional who can answer your questions and help you find the best policy to meet your needs. m.me/EdPowersRealEstate

Ed Powers Real Estate 970-690-3113 [email protected] www.EdPowersRealEstate.com

 

The Fort Collins residential rental market is now the fastest-growing segment of the housing market. Median rents in Fort Collins topped $1,300 for the first time in March, exacerbating the city’s housing affordability crisis. Overall, rents rose nearly 7.5 percent from a year ago, but some areas of the city saw increases up to 11 percent, according to the Colorado Multifamily Housing Vacancy and Rental Survey. Fort Collins rent prices set a new city record in March but in the United States, the demand for single-family rentals, defined as either detached homes or townhouses, has risen 30 percent in the past three years.¹ And in Canada, rental units now account for nearly one-third of the country’s homes, with particular demand for multi-family units, including apartments and condominiums.²

At the same time, the short-term, or vacation, rental market is also booming. The popularity of online marketplaces like Airbnb, HomeAway, and VRBO has helped the short-term rental market become one of the fastest-growing segments in the travel industry.³

Now, more than ever, there is an abundance of opportunity for real estate investors. But which path is best: leasing your property to a long-term tenant, or renting your property to travelers on a short-term basis?

In this post, we examine the differences between the two investment strategies and the benefits and limitations of each category.

WHY INVEST IN A RENTAL PROPERTY? The Top 5 Reasons

Before we delve into the differences between long-term and short-term rentals, let’s answer the question: “Why invest in a rental property at all?”

There are five key reasons investors choose to real estate over other investment vehicles:

1. AppreciationAppreciation is the increase in your property’s value over time. And history has proven that over an extended period, the cost of real estate continues to rise. Recessions may still occur, but in the vast majority of markets, the value of real estate does grow over the long term.
2. Cash FlowOne of the key benefits of investing in real estate is the ability to generate steady cash flow. Rental income can be used to pay the mortgage and taxes on your investment property, as well as regular maintenance and repairs. If appropriately priced in a solid rental market, there may even be a little extra cash each month to help with your living expenses or to grow your savings.Even if you only take in enough rent to cover your expenses, a rental property purchase will pay for itself over time. As you pay down the mortgage every month with your rental income, your equity will continue to increase until you own the property free and clear … leaving you with residual cash flow for years to come.
3. Hedge Against InflationInflation is the rate at which the general cost of goods and services rises. That means as inflation rises, the money you have sitting in a savings account will buy less tomorrow than it will today. On the other hand, the price of real estate typically matches (or often exceeds) the rate of inflation. To hedge or guard yourself against inflation, real estate can be a smart investment choice.
4. LeverageLeverage is the use of borrowed capital to increase the potential return of an investment. You can put a relatively small amount down on a property, finance the rest of the investment with a mortgage, and then profit on the entire combined value.
5. Tax BenefitsDon’t overlook the tax benefits that can come with a real estate investment, as well. From deductions to depreciation to exemptions, there are many ways a real estate investment can save you money on taxes. Consult a tax professional to discuss your particular circumstances.

These are just a few of the many perks of investing in real estate. (For more detailed information, visit our previous post: Why Real Estate Investing Makes (Dollars and) Sense. [Link to October 2017 blog post.]) But what’s the best strategy to maximize returns on your investment property? In the next section, we explore the differences between long-term and short-term rentals.

LONG-TERM (TRADITIONAL) RENTAL MARKET

When most people think of owning a rental property, they imagine buying a home and renting it out to tenants to use as their primary residence. Traditionally, investors would use their rental property to generate an additional stream of income while benefiting from the property’s long-term appreciation in value.

In fact, that steady and predictable monthly cash flow is one of the key advantages of owning a long-term rental. And as an owner, you don’t usually have to worry about paying the utility bills or furnishing the property—both of which are typically covered by the tenant. Add to this the fact that traditional tenants translate into less time and effort spent on day-to-day property management, and long-term rentals are an attractive option for many investors.

However, there are also limitations to long-term rentals, which often come down to your ability to control the property. Perhaps the most obvious one is that you do not get to use the home or closely monitor its upkeep (this is different from a short-term rental, which we’ll share in the next section).

In addition, while you can usually generate a steady, predictable income stream with a long-term rental, you are limited in your ability to adjust rent prices based on increasing or seasonal demand. Therefore, you may end up with a lower overall return on your investment. In fact, according to data from Mashvisor, in the 10 hottest real estate markets, short-term rentals produced “significantly higher rental income” than long-term rentals.⁴

SHORT-TERM (VACATION) RENTAL MARKET

Short-term rentals are often referred to as vacation rentals, as more and more travelers enjoy the benefits of staying in a home while on vacation. In fact, according to Wells Fargo, vacation rentals are steadily growing and predicted to account for 21% of the worldwide accommodations market by 2020.⁵

Investing in a short-term rental or funding your second-home purchase by renting it out can offer many benefits. If you purchase an investment property in a top travel destination or vacation spot, you can expect steady demand from travelers while taking advantage of any non-rented periods to enjoy the home yourself. In addition to greater control over how your property is used, you can also adjust your rental price around peak travel demand to maximize your returns.

But short-term rentals also have risks and drawbacks that may dissuade some investors. They require greater day-to-day property management, and owners are typically responsible for furnishing the property, upkeep, and utilities.

And while rental revenue can be higher, it can also be less predictable based on seasonal or consumer travel trends. For example, a lack of snowfall during ski season could mean fewer bookings and lower rental revenue that year.

In addition, laws and limitations on short-term rentals can vary by region. And in some areas, the regulations are in flux as residents and government officials adapt to a new surge in short-term rentals. So make sure you understand any existing or proposed restrictions on rentals in the area where you want to invest.

Urban centers or suburban communities may be more resistant to short-term renters, thus more likely to pass future limitations on use. To lower your risk, you may want to consider properties in resort communities that are accustomed to travelers. We can help you assess the current regulations on short-term rentals in our area. Or if you’re interested in investing in another market, we can refer you to a local agent who can help.

WHICH INVESTMENT STRATEGY IS RIGHT FOR YOU?

Now that you understand these two real estate investment options, how do you pick the right one for you? It’s helpful to start by clarifying your investment goals.

If your goal is to generate steady, predictable income with less time and effort spent on property management, then a long-term rental may be your best option. Also, if you prefer a less-risky investment with more reliable (but possibly lower) returns, then you may be more comfortable with a long-term rental.

On the other hand, if your goal is to purchase a vacation or second home that you’ll use, and you want to defray some (or all) of the expense, then a short-term rental may be a good option for you. Similarly, if you’re open to taking on more risk and revenue volatility for the possibility of greater investment returns, then a short-term rental may better suit your spirit as an investor.

But sometimes the decision isn’t always so clear-cut. If your goal is to purchase a future retirement home now to hedge against inflation, rising real estate prices, and interest rates, then both long- and short-term rentals could be suitable options. In this case, you’ll want to consider other factors like location, market demand, property type, and your risk tolerance.

HERE OR ELSEWHERE … WE CAN HELP

If you’re looking to make a real estate investment—whether it’s a primary residence, investment property, vacation home, or future retirement home—give us a call. We’ll help you determine the best course of action and share insights and resources to help you make an informed decision. And if your plans include buying outside of our area, we can refer you to a local agent who can help. Contact us to schedule a free consultation!

Message me if your thinking about investment properties or adding to your investment portfolio m.me/EdPowersRealEstate

Ed Powers Real Estate 970-690-3113 [email protected] www.EdPowersRealEstate.com

The above references an opinion and is for informational purposes only.  It is not intended to be financial advice. Consult the appropriate professionals for advice regarding your individual needs.

 

Sources:

1. USA Today –
   https://www.usatoday.com/story/money/personalfinance/real-estate/2017/11/11/renting-homes-overtaking-housing-market-heres-why/845474001/
2. The Globe and Mail –
   https://www.theglobeandmail.com/real-estate/the-market/article-demand-for-rental-housing-in-canada-now-outpacing-home-ownership/
3. Phocuswright –
   https://www.phocuswright.com/Travel-Research/Research-Updates/2017/US-Private-Accommodation-Market-to-Reach-36B-by-2018
4. com –
   https://www.rented.com/vacation-rental-best-practices-blog/do-long-term-rentals-or-short-term-rentals-provide-better-investment-returns/
5. Turnkey Vacation Rentals –
   https://blog.turnkeyvr.com/short-term-vs-long-term-vacation-rental-properties/

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Whatever your reasons are for relocating to a new Fort Collins home, the process can feel overwhelming.

Whether you’re moving across across town or across the country, you’ll be changing more than your address. Besides a new house, you may also be searching for new jobs, schools, doctors, restaurants, stores, service providers and more.

Of course you’ll need to pack, make moving arrangements, and possibly sell your old home. With so much to do, you may be wondering: Where do I start?

In this guide, we outline seven steps to help you get prepared, get organized, and get settled in your new community. Our hope is to alleviate the hassle of relocating—so you can focus on the exciting adventure ahead! 

1. Gather Information
   If you’re unfamiliar with your new area, start by doing some research.¹ Look for data on average housing prices, demographics, school rankings and crime statistics. Search for maps that illustrate local geography, landmarks, public transportation routes and major interstates. If you’re moving across the country, research climate and seasonal weather patterns.Check out local newspapers and blogs for information on political issues and developments that could impact your new community. You may also want to search for online forums and Facebook Groups relevant to your new area. These can be a great place to find information, ask questions and just observe local attitudes and outlooks.

   If you’re relocating for a job, find out if your new employer offers any relocation assistance. Many large corporations have a designated human resources professional to assist employees with relocation efforts, while others may contract this service out to a third party. Some employers will also cover all or a portion of your relocation and moving costs.

   By gathering this information up front, you’ll be better prepared to make informed decisions down the road.

   Let us know if you’d like assistance with your information gathering process. We have a wealth of knowledge about this area, and we keep a number of reports and statistics on file in our office. We would be happy to share information and answer any questions you may have.

2. Identify Your Ideal Neighborhoods
   Once you’ve sufficiently researched your new area, you can start to identify your ideal neighborhoods.The first step is to prioritize your “needs” and “wants.” Consider factors such as budget; commute time; quality of schools; crime rate; walkability; access to public transportation; proximity to restaurants, shopping, and place of worship; and neighborhood vibe.

   If possible, visit the area in person to get a feel for the community. If you’re comfortable, strike up conversations with local residents and ask about their experiences living in the area.

   Still not sure which neighborhood is the best fit for you and your family? Contact a local real estate agent for expert assistance. It’s usually the most efficient and effective way to narrow down your options.

   We provide neighborhood assessments and advice as a free service if you’re relocating to our area. Or, if you’re moving out of town, we can refer you to a local agent who can help.

3. Find Your New Home (and Sell Your Old One)
   Once you’ve narrowed down your list of preferred neighborhoods, it’s time to start looking for a home. If you haven’t already contacted a real estate agent, now is the time. They can search for current property listings that meet your needs, typically at no cost to you.Create another list of “needs” and “wants,” but this time for your new home. Include your basic requirements for square footage, bedrooms and bathrooms, but also think about what other factors are important to you and your family. An updated kitchen? A large backyard? Double sinks in the master bathroom?

   Narrow your list down to your top 10 and prioritize them in order of importance.² This will give you a good starting point to begin your home search. Unless you have an unlimited budget, don’t expect to find a home with everything on your list. But having a prioritized list can help you (and your agent) understand which home features are the most important, and which ones you may be willing to sacrifice.

   If you already own a home, you’ll also need to start the process of selling it or renting it out. A real estate agent can help you evaluate your options based on current market conditions. He or she can also give you an idea of how much equity you have in your current home so you know how much you can afford to spend on your new one.

   Your agent can also advise you on how to time your sale and purchase. While some buyers are able to qualify for and cover the costs of two concurrent mortgages, many are not. There are a number of options available, and a skilled agent can help you determine the best course given your circumstances.

   We would love to assist you if you have plans to buy or sell a home in our area. Please contact us to schedule a free consultation so we can discuss your unique needs and devise a custom plan to make your relocation as seamless as possible. If you’re relocating outside of our area, we can help you find a trusted agent in your new city.

4. Prepare for Your Departure
   While everyone considers packing a fundamental part of moving, we often overlook the emotional preparation that needs to take place. If you have children, this can be especially important. Communicate the move in an age-appropriate way, and if possible take them on a tour of your new home and neighborhood. This can alleviate some of the mystery and apprehension around the move.⁴

   Allow yourself plenty of time to pack up your belongings. Before you start, gather supplies, including boxes, tape, tissue paper and bubble wrap. Begin with non-essentials—such as off-season clothes or holiday decorations—and sort items into four categories: take, trash, sell and donate/give away.⁵

   To make the unpacking process easier, be sure to label the top and sides of boxes with helpful information, including contents, room, and any special instructions. Keep a master inventory list so you can refer back to it if something goes missing.

   If you will be using a moving company, start researching and pricing your options. To ensure an accurate estimate of your final cost, it’s best to have them conduct an in-person walkthrough. Make sure you’re working with a reputable company, and avoid paying a large deposit before your belongings are delivered.⁶

   If you plan to drive to your new home, map out the route. And, if necessary, make arrangements for overnight accommodations along the way. If driving is not a good option, you may need to have your vehicles transported and make travel arrangements for you, your family and your pets.

   Lastly, if you will be leaving friends or family behind, schedule final get-togethers before your departure. The last days before moving can be incredibly hectic, so make sure you block off some time in advance for proper goodbyes.

   Looking for a reputable moving company? We are happy to provide referrals, as well as recommendations on where to procure packing supplies in our area.

5. Prepare for Your Arrival
   To make your transition go smoothly, prepare for your arrival well before moving day. Depending on how long your belongings will take to arrive, you may need to arrange for temporary hotel accommodations. If you plan to move in directly, pack an “essentials box” with everything you’ll need for the first couple of nights in your new home, such as toiletries, toilet paper, towels, linens, pajamas, cell phone chargers, snacks, pet food and a change of clothes.⁷ This will keep you from searching through boxes after an exhausting day of moving.Arrange in advance for your utilities to be turned on, especially essentials like water, electricity and gas. (And while you’re at it, schedule a shut-off date for your current utilities.) Update your address on all accounts and subscriptions and arrange to have your mail forwarded through the postal service. If you have children, register them for their new school or daycare and arrange for the transfer of any necessary records.

   You may want to have the house professionally cleaned before moving in. And if you plan to remodel, paint or install new flooring, it’s easier to have it done before you bring in all of your belongings.⁸ However, it’s not always feasible without someone you trust locally who can supervise. Another option is to keep a portion of your things in storage while you complete some of these projects. 

   If there are no window treatments, you may need to install some (or at least put up temporary privacy film), especially in bedrooms and bathrooms. And if appliances are missing, consider purchasing them ahead of time and arranging for delivery and installation shortly after you arrive. Just be sure to check measurements and installation instructions carefully so you aren’t stuck with an appliance that doesn’t fit or that requires costly modifications to your new home.

   If you own a car, check the requirements for a driver’s license and vehicle registration in your new area and contact your insurance company to update your policy.⁸ If you will rely on public transportation, research options and schedules. 

   If you’re relocating to our area, we can help! We offer “VIP Relocation Assistance” to all of our buyer clients. Contact us for a list of preferred hotels, utility providers, housekeepers, contractors and more!

6. Get Settled In Your New Home
   While staring at an endless pile of boxes can feel daunting, you should take advantage of this opportunity to make a fresh start. By creating a plan ahead of time, you can ensure your new house is thoughtfully laid out and well organized.If you followed our suggestion to pack an “essentials box” (see Step 5), you should have easy access to everything you’ll need to get you through the first couple of nights in your new home. This will allow you some breathing room to unpack your remaining items in a deliberate manner, instead of rushing through the process.⁷

   If you have young children, consider unpacking their rooms first. Seeing their familiar items can help them establish a sense of comfort and normalcy during a confusing time. Then move on to any items you use on a daily basis.¹⁰

   Pets can also get overwhelmed by a new, unfamiliar space. Let them adjust to a single room first, which should include their favorite toys, treats, food and water bowl, and a litter box for cats. Once they seem comfortable, you can gradually introduce them to other rooms in the home.¹¹

   As you unpack, make a list of items that need to be purchased so you’re not making multiple trips to the store. Also, start a list of needed repairs and installations. If you have a home warranty, find out what’s covered and the process for filing a service order.

   Although you may be eager to get everything unpacked, it’s important to take occasional breaks. Have some fun, relax and explore your new hometown!

   Need help with unpacking, organizing or decorating your new home? Contact us for a list of recommended professionals in our area. And when you’re ready to start exploring local “hot spots,” we’d love to fill you in on our favorite restaurants, stores, parks and other attractions!

7. Get Involved In Your New Community
   Studies show that moving can lead to feelings of loneliness and depression. People who have recently moved tend to be isolated socially, more stressed, and less likely to participate in exercise and hobbies. However, there are ways to combat these negative effects.¹²First, get out and explore. In a 2016 study, recent movers were shown to spend less time on physical activities and more time on their computers, which has been proven to lead to feelings of depression and loneliness. Instead, get out of your house and investigate your new area. And if you travel by foot, you’ll gain the advantages of fresh air and exercise.¹²

   Combat feelings of isolation by making an effort to meet people in your new community. Find a local interest group, take a class, join a place of worship or volunteer for a cause. Don’t wait for friends to come knocking on your door. Instead, go out and find them.

   Finally, be a good neighbor. Make an effort to introduce yourself to your new neighbors, invite them over for coffee or dinner, and offer assistance when they need it. Once you’ve developed friendships and a support system within your new neighborhood, it will truly start to feel like home.

   Want more ideas on how to get involved in your community? Contact us for a free copy of our report, “Welcome Home: 10 Tips to Turn Your Neighborhood Into a Hometown Haven.”

LET’S GET MOVING

While moving is never easy, these seven steps offer an action plan to get you started on your new adventure. To avoid getting overwhelmed, focus on one step at a time. And don’t hesitate to ask for help!

In a 2015 study, 61 percent of participants ranked moving at the top of their stress list, above divorce and starting a new job.¹³ But with a little preparation—and the right team of professionals to assist you—it is possible to have a positive relocation experience.

We specialize in assisting home buyers and sellers with a seamless and “less-stress” Fort Collins relocation. Along with our referral network of movers, handymen, housekeepers, decorators, contractors and other service providers, we can help take the hassle and headache out of your upcoming move to your new Fort Collins home. Give us a call or message us to schedule a free, no-obligation consultation!

Ed Powers Real Estate 970-690-3113 [email protected] www.EdPowersRealEstate.com

Sources:

1. You Move Me –
   https://www.youmoveme.com/us/blog/105-tips-for-a-successful-relocation
2. com –
   https://www.houselogic.com/buy/house-hunting/must-have-items/
3. Livestrong –
   https://www.livestrong.com/article/436651-the-effects-of-sunlight-fresh-air-on-the-body/
4. Parents Magazine –
   https://www.parents.com/parenting/money/buy-a-house/make-moving-easier-on-you-and-your-kids/
5. The Spruce –
   https://www.thespruce.com/starting-to-pack-for-your-move-2436470
6. com –
   https://www.moving.com/tips/hiring-quality-movers/
7. The Spruce –
   https://www.thespruce.com/unpack-your-entire-home-2435815
8. com –
   https://www.houselogic.com/buy/moving-in/before-you-move/
9. HGTV –
   https://www.hgtv.com/design/real-estate/moving-checklist
10. com –
    https://www.moving.com/tips/how-to-unpack-and-organize-your-house/
11. ASPCA –
    https://www.aspca.org/pet-care/general-pet-care/moving-your-pet
12. Psychology Today –
    https://www.psychologytoday.com/us/blog/is-where-you-belong/201607/why-youre-miserable-after-move
13. The Daily Express –
    https://www.express.co.uk/news/uk/574171/Divorce-stressful-moving-home