Homeowners: Look Out for Utility Scams

Lately, there's been a growing chorus warning utility customers to be hyper-aware of unscrupulous callers and visitors set on stealing everything from an energy supplier authorization to your personal and financial data and your hard-earned cash.

As we make our way through the winter season, utility companies want customers to be reminded about common utility scams - and have banded together to promote a comprehensive and far-reaching #StopScam awareness campaign.

According to this consortium of over 100 energy companies branded Utilities United Against Scams (UUAS), a growing number of gas, electricity, water and communications consumers are getting calls on the phone and even encountering these imposters at their front doors.

So UUAS is partnering with the media and law enforcement to amplify their advisories.

A common utility con involves a caller claiming to be a utility billing representative claiming that you have an overdue bill, and in order to avoid an immediate shut-off, you must provide a credit card number or prepaid debit card.

Sadly, scammers are meeting with great success using this tactic. While the median monetary loss for all scam victims is $274, the Better Business Bureau (BBB) says the median loss for a utility scam victim is $500.

In fact, the BBB has found people more susceptible to utility scams than they are to Internal Revenue Service scams.

Utility customers are advised to read and heed these reminders - and share them with everyone in the household:

- All UUAS member utility employees carry photo identification

- Field workers generally wear clothing with the company logo and drive company vehicles. When in doubt, do not allow them in - and if they persist, call 911

- UUAS utility representatives never demand instant payment in person - or over the phone

- Utility representatives from UUAS companies do not require the use of prepaid debit cards (such as Green Dot MoneyPak, Vanilla or Reloadit)

- UUAS reps will never request customers meet them at a payment center, such as a department or grocery store, to make a payment

- None of the UUAS utilities solicit door-to-door - or on the phone on behalf of third-party energy suppliers

The Utilities United Against Scams website (utilitiesunited.org) provides more information on how to protect personal information and avoid becoming a victim of utility scams. 

House Hunting Mistakes to Avoid

Buying a house is a serious thing and if you’re on the hunt for a new home, it’s important to make smart decisions.

One of the biggest mistakes people make is buying a home they can’t afford. It’s important that you consider what the mortgage payment is of course, but you also need to factor in insurance, taxes, upkeep, monthly bills and any renovations that will need to be done. Sure, you might have enough to buy the home, but you don’t want to be spending every last dollar once you move in.

Another mistake people make is buying a home too quickly, even when it doesn’t meet the hopes and dreams on their “wish” checklist. Now, this doesn’t mean you are definitely going to get everything you want in a home, but don’t be discouraged after one day of looking. By not doing your due diligence, you could see your dream home become available soon after and by then, it will be too late. Try to make a list ahead of time of what you really desire and what you’re willing to give up if the price is right.

A big mistake that people make concerns finances. Never buy other high-priced items like cars or big appliances that could send up a red flag on your credit when in the midst of looking for a new home. To be safe, don’t make any large purchases for about six months prior to beginning your home search.

Another common mistake is shifting your money around too much, meaning taking money from one account and moving it to another, be it stock, mutual funds, a 401K or just another bank account. The problem is that when a lender goes to look at your financial history, there will be lots of big withdrawals and deposits that need explanations, and it could cause a mortgage provider to back away from the deal.

Buying furniture might seem ok, but even those big-ticket items could cause some problems when mortgage lenders review your finances. And besides, without knowing the house you’re going to buy and the rooms available, you might buy furniture that doesn’t fit in with the style of the home, or worse yet, doesn’t fit.

Never quit your job just because you decide to move to a different state because finding a new home could take time and the mortgage company isn’t going to be too happy if they find out you don’t have steady income. Of course, you’ll get a new job in your new locale, but if you don’t have a place to live yet, this just doesn’t make any sense.

Buying a home is an important decision and one that needs to be done with the correct mindset. Talk with experts, read up on tips and don’t do anything too hastily. A savvy buyer will be happy in a new home for a long time.

The Kids Are Alright...When It Comes to Home-Buying Plans

While millennials often get maligned for their lack of motivation, the generation coming up behind them - Gen Z - may be showing signs of just the opposite. According to Bank of America’s 2019 Spring Homebuyer Insights Report, the majority of prospective homebuyers between the ages of 18 and 23 not only want to own a home within the next five years, more than half of Gen Z has already started saving for one.

Survey results show that 59 percent of prospective Gen Z homebuyers plan to buy a home within the next five years, with “starting a family” coming in as the No. 1 reason why, according to 59 percent of respondents, followed by the opportunity to build wealth over time, according to 47 percent. If this goal is attained, it would turn the majority of Gen Z into homeowners before they turn 30.

While their aspirations and determination toward homeownership are encouraging on many levels, Gen Z is also well aware of the barriers that stand in the way. According to the report, 66 percent of Gen Z respondents rate saving for a downpayment as the primary barrier to homeownership, followed by the ability to cover the monthly costs of owning a home (58 percent), and a lack of knowledge about where to start the process (52 percent).

That said, Gen Z shows plenty of moxy and is willing to do what it takes to achieve their homeownership goals. In fact, 94 percent report that they are willing to make sacrifices to buy a home, including: seeking financial help from parents, down-payment assistance programs or family members; getting a second job; attending a lower-priced college to avoid amassing student debt; or moving in with parents or in-laws.

The great news for hopeful young homebuyers is that they can get a great head start. Here are three steps Gen Zers can put into action right now to help reach the before-30 homeownership finish line:

1. Build credit. Many young people haven’t had a chance to build enough credit. If that’s the case, apply for a credit card or two, use it sparingly, and pay it on time or early. If you can’t get your own card, talk to your parents about becoming an additional cardholder on one of their existing accounts.

2. Repair credit. If you’ve already gotten into trouble with credit, now’s the time to focus on paying off high-interest debt and raising your credit score. Your goal should be to have all credit card balances at 30 percent or less of their respective credit lines.

3. Create and live by a budget. Add to your down payment savings by creating a budget and sticking to it. Track where you’re spending your money so you can clearly see where you can cut back. Expensive coffee-shop runs? Uber when you could use public transportation...or bike? More nights in instead of out on the town? Getting a grip on your finances now will allow you to unearth monies that can go straight toward your home fund - and a better financial future. 

How to Keep Your Sanity When Remodeling Your Home

Remodeling your home can transform it into a more comfortable and functional living space for your family, but the process can be filled with unforeseen issues and stress. Homeowners often experience family tensions, insomnia and other problems as their homes undergo renovations. Here are some tips to help you manage:

Choose a Contractor Carefully
The most important thing to do is to hire the right contractor. Thoroughly research several companies and ask about their experience, qualifications, licenses and insurance. Check references and find out if a company has received complaints or been sued.

Ask how many people would work on your project at any given time and for how many hours and days per week. Contractors often take on several projects at once and split their time or crews between worksites. This can stretch out the time needed to complete each project.

Control Costs
Contractors sometimes suggest additional upgrades on top of what the homeowner requested. Customers may be persuaded to make improvements they hadn’t initially considered since walls, floors and other parts of the house will be removed anyway and it would be easier for the contractor to make other changes. Don’t agree to additional work you don’t need or particularly want simply because the contractor suggests it.

While controlling the cost of your renovation is important, be prepared to go over budget. A contractor may give you a detailed and reasonable estimate, but after renovations start, workers could uncover mold, electrical or plumbing problems, or other issues they couldn’t have anticipated that need to be addressed. Build some room into your budget so that you’ll be prepared for unexpected costs.

Communicate With the Contractor and With Your Family
Ask the contractor questions so that you know what will be done each day, each week and each month, and how your family will be impacted. If there’s a problem, raise the issue immediately with the contractor in a calm and clear way.

Talk to your family, particularly young children, about what will be done to the house and how renovations will affect daily life. Kids can easily feel overwhelmed and act out if they don’t understand what is happening and why. At the same time, be sure to discuss any scheduling and budget issues, and your stress level, honestly with your spouse.

Consider Living Somewhere Else
If possible, you might want to temporarily move out of your house while it’s being remodeled. Staying in a hotel or with a family member or friend might help you avoid chaos at home and allow the contractors to complete the work faster since they won’t need to work around your family’s schedule.

Keep Calm
Having your house remodeled can be stressful, particularly if you’re having multiple projects done over a period of several weeks or months. Be clear about what you do and don’t want, be prepared for unforeseen problems, communicate clearly with the contractor and your family, and consider temporarily relocating to manage the stress.

Will Filing a Homeowners Insurance Claim Raise Your Rates?

Homeowners insurance is designed to protect you in the event of storm damage, a fire, theft, vandalism or an accident on your property that results in injuries. If something happens, you may think that you should file a claim to cover repairs or medical bills, but you might be better off paying out of pocket.

How Filing a Claim Could Affect Your Premiums

Filing a homeowners insurance claim would probably raise your rates. The increase could be significant and could last for several years. The amount of the claim might not matter at all. Your insurance company could raise your rates simply because you submitted a claim. Filing a second claim within a relatively short period of time could raise your premiums even further.

Your premiums could rise skyrocket for certain types of claims. For example, if you filed a liability claim because someone was hurt on your property, the company would consider your home a higher-than-average risk. Claims for theft and vandalism could cause the insurance company to conclude that your neighborhood is dangerous and therefore a higher insurance risk.

Rate hikes can vary widely based on location. Some of that has to do with the risks associated with specific areas, and some of it has to do with whether state laws limit the amount by which insurance companies can raise premiums.

If you filed a homeowners insurance claim and the company raised your rates, you probably wouldn’t be able to get lower premiums by switching companies. Homeowners insurance claims are tracked in a database that all insurance companies use to assess risk and set premiums. If you filed a claim, all companies that accessed your records would consider you a higher risk and would charge you higher premiums than someone who had not filed a claim.

Your Premiums Could Rise Even If You Didn’t File a Claim

Sometimes an event causes major damage over a wide area. A natural disaster, such as a hurricane, can lead to billions of dollars in claims at once. In order to avoid going out of business, an insurance company could raise rates for all policyholders in the area, or even in the entire state, whether they submitted individual claims or not. The costs associated with that disaster would be incorporated into historical data that insurance companies use to set their rates, so premiums could remain high for years.

Should You File a Claim?

Before you file a homeowners insurance claim, think about how it could affect your premiums in the future. If your state doesn’t limit the amount by which insurance companies may raise rates after a claim, your premiums could skyrocket. You could be stuck with higher rates for years and could pay much more over time than you would receive as a payment for your claim. Gather as much information as you can to help you decide whether it makes more sense to file a claim or to pay out of pocket.

Things You Shouldn't Say to a Seller's Agent as a Buyer

Going to open houses as a homebuyer can be fun. You get to look at homes you’d like to potentially buy, imagining how you’ll live there and where your things will go.

You can speak with the real estate agent monitoring the open house to find out more about the property and the price, but there are some things you don’t want to say. After all, the agent is paid to represent the interests of the seller and not yours.

Here are some things you don’t want to say to a seller’s agent:

You Love the House
This seems like a natural and polite thing to say at an open house, but your outward love could prevent the current owners from lowering their price. Their agent may try to get you to pay more than the asking price because you’ve already shown how much you love the house.

You Need to Move Soon
Desperation to find a home because you’re starting a new job in the area or your lease ends soon can give the seller’s agent a reason to raise the price.

Revealing Your Budget
Don’t let on that the home’s listing price is under your budget—either by a specific amount or just in general. This could hurt you in negotiations if the sellers know you can afford to spend more.

Financial Problems
Admitting to a seller’s agent that you have a low credit score, high debt or a past bankruptcy can lead the sellers to thinking you have enough financial problems to prevent you from qualifying for a mortgage. This can end serious negotiations quickly. Keep such problems to yourself and work with your agent and loan provider to overcome them.

Personal Issues
If you recently got a new job, are expecting a child, have a parent moving in with you or have another personal issue that hints at an immediate need to buy a home, leave the information to yourself or only tell your agent. Your personal life should remain just that—personal—and shouldn’t be used against you to get a higher asking price on a home.

What to Expect from a Home Inspection

A home inspection can make or break a transaction. Without it, you wouldn’t know if you’re buying a money pit or a home that will last a lifetime.

Homebuyers are responsible for hiring a professional home inspector, who should uncover possible problems before they buy the home. An offer on a home is often conditional upon a successful inspection.

The inspector should evaluate the physical structure and its critical internal systems. These include:

• Electrical
• Plumbing
• Heating and cooling systems
• Walls, ceiling and flooring
  Windows and doors
• Roof
• Basement
• Attic
• Foundation
• Insulation

There are some things a home inspector may not uncover. These can include hidden problems like pests, mold, asbestos and flaws in areas below ground or that are inaccessible, such as wells and septic tanks. Additional inspections, such as for termites, may be needed for those areas. Some states require a pest inspector before a home loan can close. Even if it’s optional, a pest inspection is a good thing to add as a buyer.

Try to be at the home during the inspection. Follow the inspector around the house and ask questions. You should be able to ask about potential issues and how to make repairs or take care of certain areas of the home.

Don’t chat the inspector up too much. It could distract them from their work and they could miss something. If you can’t be there, meet with them later to go over the report.

Remember that an inspection is only a snapshot of the time and day of the inspection. A home might perform differently in the winter than the summer.

Home inspections are very detailed, so expect to see dozens of issues—many of them small—in the list of deficiencies. The severity of each problem should be listed, and some may even include cost estimates to fix each issue.

If there are too many problems than you’re willing to handle that are found in a home inspection, you can back out of the sale or negotiate with the seller to make the repairs or lower the price.

But not all infractions are equal. If you’re going to negotiate some repairs, focus on the red flag items such as the roof, foundation, HVAC systems or other expensive problems. Don’t worry about small details like a cracked electrical cover or small things that can be easily fixed with a trip to the hardware store.

Why You Should Never Skip Getting Permits for Home Improvements

City, town and county governments across the U.S. require permits for home improvements. This is done to enforce building codes and prevent accidents that could lead to property damage, injuries or death. Depending on the scope of the project, one or more permits may be required. For major renovations, architectural and engineering plans must be submitted. Sometimes homeowners decide to skip the process of obtaining permits to save time and money, but that can be a huge mistake.

Potential Costs of Not Getting Permits
Work that has been completed without a permit and has not been inspected by a professional could be unsafe. Members of your family, friends and others who visit your home could be severely injured or even killed.

Electrical work that wasn’t permitted and approved could lead to a fire that could destroy your home and potentially cause others in the neighborhood to go up in flames. Plumbing problems, gas leaks, roof leaks and structural problems are other possible consequences of having renovations done without a permit.

Your homeowners insurance wouldn’t pay claims for problems caused by work that was done without a permit. That means you’d be financially responsible for those costs, and you might even face criminal charges.

Failing to obtain a permit for home improvements can lead to problems years from now if you try to sell your home. Buyers won’t want to purchase a house that was updated without permits because of the potential for accidents. Also, if they bought the house and someone got injured as a result of shoddy work, their homeowners insurance wouldn’t cover the losses. If the seller didn’t disclose that permits weren’t obtained, the buyer could later sue the former owner.

Unpermitted work has become such a problem that many local governments have cracked down. Inspectors who are dispatched to homes under renovation can issue stop-work orders and fines if the appropriate permits haven’t been obtained. If a past project was completed without a permit, you could be prevented from making other improvements or need to pay for additional work to correct mistakes made by the first contractor and to bring the house up to code.

Beware of Dishonest Contractors
Sometimes homeowners hire contractors for renovations and the contractors agree to obtain permits but fail to do so. The owners may not find out until years later, when someone is hurt or they try to sell the house and discover that the contractor deceived them. In those circumstances, the owners might be able to obtain post-construction permits and take legal action against the contractor.

Always Obtain Necessary Permits
Getting permits for home improvements may cost time and money, but permits are required for a valid reason. They protect homeowners, guests and future buyers from unsafe work that could lead to injuries and financial losses. Don’t skip the process of obtaining a permit, and don’t hire a contractor who suggests doing work without one.

Gimme vs. Giving: Teaching Kids the Meaning of Goodwill

Teaching kids about giving back is a valuable life lesson that can't start too soon. How can parents show their young children how good it feels to do something for someone else? Behavioral experts suggest beginning with the following steps with children under the age of five, and making ‘giving back’ a routine experience as kids get older:

Help kids make gifts. Whether it’s a plate of cookies the child helped bake or a finger-painted picture, what grandparent wouldn’t be thrilled with a handmade offering? For a child, seeing the joy in that grandparent’s face is a good first lesson in how good it feels to give to others.

Encourage gift planning. As children naturally focus on what they want to receive, encourage them to think about what they can give or make for other family members on birthdays, holidays and 'just because'—and, as they get older, they can give to those in need outside the family.

Have them use their own money. Sacrifice is a part of giving. If your child is old enough to get an allowance, he or she is old enough to learn the value—and the gratification—that comes with sharing.

Find and support local projects. Look around your community for ‘sharing’ opportunities: choosing and donating backpacks, coats or toys for local children in need; visiting a local senior facility; or choosing and delivering a carton of foodstuffs to a nearby food pantry. Projects such as these teach the meaning of goodwill, and may bring families closer together. 

How to Make Your Home's Entryway Pop

The entrance of your home says a lot about your character, from interior design to overall aesthetics. Below are some helpful tips for making sure your space wows you and your guests every time.

Kill the clutter. Clutter is a huge no-no in your entryway, as it impacts the entire vibe of your space from the moment you set foot in the door. However, this can be hard, as the entryway is the space you dump your keys, mail, boots and coat. To remedy this, make sure you have designated, tucked away spaces for everything you store at the entrance of your home. Hooks for coats, baskets for mail and a covered bin for shoes can all work wonders.

Add a statement. Placing a beloved piece of art or furniture in the mouth of your home is a great way to appreciate it every time you enter, and can offer a fantastic conversation starter between you and guests.

Have a seat. Whether it’s a plush chair or a simple bench, a seat in your entryway is great for roosting as you tie your shoelaces, and makes a perfect place for attractive accent pillows.

Light it right. Good lighting in your entryway is a must. Add an attractive lighting fixture, set up a dimmer for mood and a floor or table lamp for added options.

Personal touches. Placing photos of your family and pets in your entryway can add a nice personal element and warm your heart every time you pass by.

How to Find Your Home Decor Style

If you're redecorating your home, or moving into your very first space of your own, you're likely considering various home décor styles. But what if you're unsure of your personal space style?

Aside from perusing Pinterest, there are many ways you can "try on" different looks for your home. Consider the following:

Think about your clothing style. Many of us end up incorporating our personal wardrobe style into our home, so this is a good place to start. Is your wardrobe simple and streamlined? Do you love accessories or jewelry? All of these can be great starting spots.

Peruse the stores. Take an afternoon and walk through home furnishing stores, paying mind to their sample displays. What do you like? What do you dislike? Take notes on styles and pieces you admire.

Snag a design catalog. Pick up an interior design magazine and flip through it, circling favorite ideas and set-ups.

There's an app for that. There are several home design apps that allow you to upload a photo of your space and fill it with make-believe furniture. This is a great way to try on styles. Who knows, you may even surprise yourself.