Budget Basics Work Sheet
Joe Scuteri • January 22, 2025
The first step in getting yourself in financial shape to buy a home is to know what you make and what you spend now. List your income and expenses below.
Get at least three written estimates Get references and call to check on the work. If possible, go by and visit earlier jobs. Check with the local Chamber of Commerce or Better Business Bureau for complaints. Be sure that the contract states exactly what is to be done and how change orders will be handled. Make as small a downpayment as possible so you won’t lose a lot if the contractor fails to complete the job. Be sure that the contractor has the necessary permits, licenses, and insurance. Be sure that the contract states when the work will be completed and what recourse you have if it isn’t. Also remember that in many instances you can cancel a contract within three business days of signing it. Ask if the contractor’s workers will do the entire job or whether subcontractors will do parts. Get the contractor to indemnify you if work does not meet any local building codes or regulations. Be sure that the contract specifies the contractor will clean up after the job and be responsible for any damage. Guarantee that materials used meet your specifications. Don’t make the final payment until you’re satisfied with the work.
Upgrading your home is always appealing, but which enhancements really get you a good return for your money when it’s time to sell? A 2002 survey by Remodeling Magazine and REALTOR® Magazine has the answer. To see the complete article, visit http://www.realtor.org/rmomag.nsf/pages/costvaluedec02
The answers to these questions will help you decide:
When you sell a stock, you owe taxes on your gain—the difference between what you paid for the stock and what you sold it for. The same is true with selling a home (or a second home), but there are some special considerations.
It’s an objective opinion of value, but it’s not an exact science so appraisals may differ. For buying and selling purposes, appraisals are usually based on market value—what the property could probably be sold for. Other types of value include insurance value, replacement value, and assessed value for property tax purposes. Appraised value is not a constant number. Changes in market conditions can dramatically alter appraised value. Appraised value doesn’t consider special considerations, like the need to sell rapidly. Lenders usually use either the appraised value or the sale price, whichever is less, to determine the amount of the mortgage they will offer.
Make your home more appealing for yourself and for potential buyers with these quick and easy tips.
Owner’s manuals for items left in the house Warranties for any items left in the house A list of local service providers—the best dry cleaner, yard service, etc. Garage door opener Extra sets of house keys Code to burglar alarm and phone number of monitoring service if not discontinued.
Give your forwarding address to the post office, usually 2-4 weeks ahead of the move. Notify our charge cards, magazine subscriptions, and bank of the change of address. Develop a list of friends, relatives, and business colleagues who need to be notified of the move. Arrange to have utilities disconnected at your old home and connected at your new one. Cancel the newspaper. Check insurance coverage for moved items. Usually movers only cover what they pack. Clean out appliances and prepare them for moving, if applicable. Note the weight of the goods you’ll have moved, since long-distance moves are usually billed according to weight. Watch for movers that use excessive padding to add weight. Check with your condo or co-op about restrictions on using the elevator or particular exits. Have a “first open” box with the things you’ll need most—toilet paper, soap, trash bags, scissors, hammer, screwdriver, pencils and paper, cups and plates, water, snacks, and toothpaste.
To find out how much money you’ll net from your house, add up your closing costs and subtract them from the sale price of the house.
The closing date. See if the date the buyer wants to take title is reasonable for you. Date of possession. See if the date the buyer wants to move in is reasonable for you. The earnest money. Look for the largest earnest money deposit possible; since it is forfeited if the buyer backs out, a large deposit is usually a good indication of a sincere buyer. Fixtures and personal property. Check the list of items that the buyer expects to remain with the property and be sure it’s acceptable. Repairs. Determine what the requested repairs will cost and whether you’re willing to do the work or would rather lower the price by that amount. Contingencies. See what other factors the buyer wants met before the contract is final—inspections, selling a home, obtaining a mortgage, review of the contract by an attorney. Set time limits on contingencies so that they won’t drag on and keep your sale from becoming final. The contract expiration date. See how long you have to make a decision on the offer
