Thursday, November 19, 2015

8 STEPS TO SELLING YOUR HOME

Step Seven - Preparing to Close



Now that you have accepted an offer on your home it's time to prepare for closing. Your agent will lead and guide you through each step, but it's important that you make yourself as available as possible. There will be time deadlines for each step and it's important to meet them if the sale of the house is to go through. 

The Inspection - Generally the first step is for the buyer to have the house inspected for any problems. Once they receive the results they can choose to 
  1. Ask you to repair the problems found by the inspector
  2. Choose to repair the problems themselves
  3. Walk away from the deal
Negotiations will open up again at this point. If you are asked to make repairs you can agree to all, some, or none of the requests. Choosing not to make any repairs could result in the buyer walking away from the deal and ignoring repairs marked as a safety concern can cause problems later. Your agent will go over the inspection report with you and help you come up with a decision that makes everyone happy. 
If you decide to make repairs on your home you must hire a bonded and certified professional, you cannot make them yourself. The buyer will expect to have receipts to prove the repairs were  made. 



The Appraisal - Once the terms of the inspection have been worked out the buyer's lender will have the home appraised to be sure it's worth the amount they'll be lending. If the appraiser finds any safety concerns that were not taken care after the inspection he can halt the proceedings until they're addressed. This is why taking care of safety issues brought up at inspection is so important. 
If the home is appraised for less than the agreed upon purchase price there are a few steps you can take.
  1. Your agent can fight the results by gathering info on similar homes in the area which sold for a higher amount, but this doesn't work very often.
  2. You can terminate the deal, but keep in mind this problem will most likely come up again with the next buyer.
  3. The buyer can agree to pay the excess balance in cash.
  4. You can agree to lower the price to the appraised value. 
 Your agent may have other ideas or suggestions for dealing with this problem so be sure to discuss alternative methods with them. 

These are the two major events that will happen before the closing date. Once they're worked out you won't have too much to do other than be available. It isn't uncommon for forms to be misplaced, or for random signatures to be needed, so it's important that your agent be able to reach you for anything they may need. Chasing someone down while trying to get a home sale to close isn't fun for anyone, and missing a deadline can result in the termination of the contract. 







Friday, November 6, 2015

8 STEPS TO SELLING YOUR HOME

Step Six - Negotiations




Now that you have received an offer it's time to negotiate your terms. The goal here is to create a win-win scenario for both you and the buyer, not to simply get everything you want. Your agent will work with you to ensure you get the best deal possible in the current market. 

Almost every part of a contract is negotiable, but the most commonly negotiated areas are:

  • Price - In a buyer's market you may not get as much as you'd like for your home, but in a seller's market you may find your home in the middle of a bidding war. 
  • Financing - There are many different ways a buyer can find the funding to purchase your home, but you don't have to accept all of them. Discuss with your agent which loan types you're comfortable with, and which ones you'd rather not deal with.
  • Closing Costs - It is very common for buyers to ask sellers to pay all or some of the closing costs. Your agent can guide you with this decision based on the current market. 
  • Appliances and Fixtures - Sometimes buyer's will want to keep certain things you planned on taking with you when you move. They can always ask but you don't have to say yes. 
  • Move-in Date - In general, the move-in date is the day of closing, but this can be negotiated if it doesn't work for you or the buyer. However, remaining in the home after closing could result in you paying rent to the new owner.
Your agent will write up a new offer with the changes you ask for and send it back to the buyer's agent. The buyer can then accept the changes, or make further changes that will be sent back to you. This can go on indefinitely until both parties agree, or one party rejects the offer outright. 




Once an agreement has been made and both parties have signed the offer becomes a legally binding contract. However, there may still be some negotiations to come in Step Seven.  








Friday, October 23, 2015

8 STEPS TO SELLING YOUR HOME

Step Five - Receiving an Offer




Written offers from potential buyers will not be received by you personally, instead they will be sent to your agent, who will then forward them to you. If your agent believes your home will be highly sought after they may set up a date and time for all offers to be reviewed. This allows all buyers an equal opportunity to get their bids in and reviewed. 

Your agent is required by law to show you every offer they receive, even if the offer is really low or if it comes in after you have accepted another offer. Only you can decide to accept or reject an offer, your agent does not have that power.

Once an offer, or offers, are received, your agent will sit with you and go over all the terms, which must include, but not be limited to, the following:

  1. Legal description of the property
  2. Offer price amount
  3. Down payment amount
  4. Financing arrangements
  5. Who will pay certain fees
  6. Deposit amount (not the same as a down payment)
  7. Inspection rights
  8. Method of transferring title
  9. Escrow agent who will handle closing
  10. Appliances that will stay in with the house
  11. Closing date
  12. Contingencies
Once the offer has been reviewed you have three options:




  1. Counter the offer - If there are parts of the contract you agree with, but parts you don't, you can discuss with your agents which changes you would like made and she will write up the counteroffer and send it back to the potential buyer. The buyer can then accept your offer, reject your offer, or counter your offer with a new one. Countering can go back and forth as many times as needed until an agreement is reached or one party walks away.
  2. Reject the offer - If you feel the offer is unfair or so low that there is no point in countering, or if you have better offers to choose from, you can reject the offer. However, you CAN NOT reject an offer based on the potential buyer's race, religion, sexual orientation, marriage or family status, disability, or any other form of discrimination. If the offer is at full price, and the buyer has proven he is financially capable of purchasing the home there is no reason to reject the offer (unless a better offer has been presented). Rejecting an offer based on a discrimination can lead to substantial fines and legal charges.
  3. Accept the offer - If you feel the offer is fair and no changes are necessary you can accept it as is. 
Once you sign an offer it becomes a legally binding contract, so it is very important that you understanding what you're signing. If you are uncertain or confused about any aspect of the contract be sure to ask your agent questions BEFORE signing. 




Back-up offers - If, after you sign an offer, a better offer comes in you can save it as a back-up offer if the potential buyer who sent the better offer agrees. If the original offer fails to close for any reason the back-up offer will automatically come into play. However, it the back-up offer buyer finds another home while the first contract is still active, they can terminate. 

Remember, all offers are not the same, and there are a myriad of different contingencies that can be added or removed. This post describes the most simple of contracts for Washington State. The rules for what must be in included may differ from state to state.


Wednesday, October 14, 2015

8 STEPS TO SELLING YOUR HOME

Step Four - Marketing




Now that your house is prepped and ready to sell your agent will design a marketing plan specifically for your home. A good marketing plan generally includes all or some of the following:

Internet Advertising - This includes listing your home on the MLS (Multiple Listing Service) as well as on the agent's personal website or brokerage website. Once your home is listed on these sites it will automatically appear on popular home search sites such as Zillow and Trulia. Your agent may also make ads for Facebook, or post your listing on Linkedin groups. Internet advertising is the most important aspect of marketing.

Yard Signs - The "For Sale" sign in the yard is what generally comes to mind when people think of selling a home. Yard signs are important because they often bring interest from people who might not have even been thinking about buying. However, they can also bring in a lot of looky-loos and if you're selling a high priced luxury home your agent may choose not to hang a sign. This will prevent people who aren't serious or capable of buying your home from traipsing around the property. 




Agent to Agent Marketing - It's common for agents to mass email your listing to other agents who may have buyers interested in your home. This is a very cost effective and efficient way of bringing in potential buyers that For Sale By Owner sellers don't have access to. 

Direct Mail Campaigns - This type of marketing can be costly and hit or miss. Out of every 100 people to receive a mailer about your home, maybe 1 or 2 will be interested. 

Open House - A lot of sellers believe in order to sell their home the agent must hold it open. The truth is, only 1% of homes actually sell at an open house. A more efficient marketing strategy is to hold a broker's open. This is an open house in which only other agents are invited and they're usually served drinks and a light lunch. The agents will then tell their buyers about the home and bring in a lot more traffic than an open house for the public would generate. 




Media Advertising - Advertising in newspapers or magazines typically yields the lowest results, but can come with the highest cost, so most agents no longer utilize this method. 

Photography - I personally believe your agent should always bring in a professional photographer to shoot your home. I have specific photography packages that I offer for free based on the price the house is selling at. If the seller would like additional photos they are required to pay for them, usually at $10 a photo or whatever price is set by the photography company. Some agents feel that snapping a pic with their cell phone is sufficient, but when a buyer is deciding which homes they want to look at they will almost always choose the one with the professional photos. 

How many of these methods your agents uses will depend on the price range of your home. Remember, your agent has to pay for all marketing costs in the hopes they will make the money back once your home sells. If your house is selling for $250,000 your agent probably won't do a direct mailer or media advertisement simply because the price is too high for such minor results.



If you think your agent should be using a certain method and they are not, ask them why, but remember they probably have a good reason for doing so. Ask to discuss their marketing plan in detail before they begin so you have a firm understanding of what they will be doing. Keep in mind your agent does not want to simply bring in a lot of people, they want to bring in the most qualified buyers. 

Finally, your home should be marketed to it's strengths. If you're selling a luxury home all printed materials should appear luxurious. You can also market your home to the decade it was built (such as my favorite, Mid Century Moderns) the location it's in (urban, city dwelling, country living) or any historical significance that may be attached to it. 

Your agent's main goal should be to make your home stand out from the rest and bring in the majority of traffic within the first 3 to 6 weeks your home is on the market.

Monday, October 5, 2015

8 STEPS TO SELLING YOUR HOME

Step Three - Preparing Your Home




When trying to sell a house, first impressions mean everything. When you have lived in your home for a long time it's easy to get used to minor imperfections, such as doors that stick or a missing section of baseboard, but potential buyers will notice immediately. 

The condition of your house can and will affect how long it takes to sell, and how much buyers are willing to offer, so let's get it in showroom condition!



1. Clear the Clutter. Begin by packing up and removing anything you don't need to use on a daily basis, such as knick-knacks, excess books and movies, piles of mail, and anything else that causes clutter. De-cluttering kitchen and bathroom counters is especially important. You want potential buyers to be able to move freely around your house without bumping into things and you want their focus to be on the house, not the stuff on your shelves!
2.  Remove Personal Items. Removing items such as family photos and drawings your
children  made will help buyers picture their own family living in your house. People often think keeping family photos up will give the house a homey feel, but it actually makes buyers feel as though they are intruding in someone's home. Take them all down and give the buyers a clean slate to work with.

3.  Clear the Way. Remove or rearrange furniture to create open walk ways around your home. Pull all furniture away from windows and walls and remove anything that makes a room feel tight. This is also important for the garage, which is often used by sellers to store their things before moving. Buyers love looking at the garage and it always excites them to see a clean, open space just waiting for their car and new work bench.

4.  Make Minor Repairs. This is the time to fix all those little things around the house you've been meaning to get to for years. Leaking faucets, doors and windows that stick, and that cracked tile in the bathroom are all simple and affordable fixes. Changing light switch plate covers so they all match, replacing light bulbs, and laying out a new welcome mat will make a huge difference in how a buyer views your home. Major renovations, such as a new kitchen, are usually unnecessary and won't raise the value of your home by much. Keep it simple and focus on the small things.



 5.  Paint. A fresh coat of can make a world of difference in the land of first impressions. Choose neutral tones that are easy on the eyes and keep it simple. Buyers can be finicky and as silly as it sounds the wrong shade of blue on your walls can turn away a potential buyer.



6.  Garden. The front yard is usually the first thing a buyer sees, so don't forget to work on that curb appeal! Sweep the walkway and trim back any hedges or plants that may be growing over it. Rid your doorway of spider webs and add a nice hanging basket of seasonal flowers. If you can, plant some flowers, add some mulch, and above anything keep the lawn mowed! The same can be done with the backyard to create a relaxing and inviting feel. 

Your home is now ready to sell! If you don't feel up to doing some of the things on this list you may want to consider hiring professionals, such as painters, gardeners, and home stagers. Spending a little money on prepping your home will help it sell faster and may even yield you a bigger profit in the end. 







Thursday, October 1, 2015

8 STEPS TO SELLING YOUR HOME

Step Two - Name Your Price




Pricing your home is not as simple as deciding how much you want for it and slapping on a price tag. The value of your home is determined by the follow:
  • the current market
  • the condition of your house
  • what similar homes are selling for in the area
The value of your home is NOT determined by the following:
  • what you originally paid for it
  • what your neighbor, friends, co-workers say it's worth
  • what you need or want it to be worth
  • what it would cost to rebuild it today
In order to determine what your home is worth your agent will perform a Comparative Market Analysis, or CMA. To do this the agent will find a list of similar homes in and around your neighborhood that are currently for sale or that have sold in the last few months. She will then compile the data to show you a low and high price range of homes selling in your area. A good CMA will also include photos of the comparative homes as a visual example of what low end and high end homes look like. This will give you a good idea of how your home compares in the current market and will help you determine a fair asking price. 

Just like your neighbors, friends and co-workers, your agent should not decide what your home is worth simply by looking at it. It is common for agents to make an educated guess based on the current market and the condition of your home, but it is in your best interest to ask that a CMA is performed.

If you want an extremely accurate price point you can have an appraisal done on your home. This is something you would arrange with a home appraisal professional and typically costs a few hundred dollars.



The Market

The housing market fluctuates like any other market, and like any other market, this fluctuation is caused by supply and demand. 

When very few homes are on the market the supply is low and the demand will be high. This is known as a Seller's Market because the demand for homes will cause the prices to rise, thus being more profitable to the sellers. This will lead to more homeowners deciding to sell in order to reap the benefits of rising values. 

As more people begin to sell the supply begins to go up until the market becomes saturated. Now the supply is high and the demand will lower, making it a Buyer's Market. During this phase of the market the buyers get to call the shots. Sellers will be offered much lower prices for their homes because the buyers know they have plenty more options if the sellers turn their offer down. 

Pricing Too High

Pricing your home too high is one of the biggest mistakes that can be made when selling a home. Unless your home is truly unique, no one will pay above market value if they can purchase a similar home down the street for a fair price. 

Studies show that homes priced 3% above market value take longer to sell. If your home sits on the market too long buyers will begin to think something is wrong with it, and they will avoid it. This generally leads to homeowners dropping the price of the home way below market value and receiving less of a profit than they would have had they priced it fairly. 

This may seem like it would only be a problem in a buyer's market, why be worried about pricing too high in a seller's market when prices are rising anyways? In a seller's market, buyers know they will be paying a pretty penny for their home, so they are always in search of a deal. Pricing your home fairly will bring a flock of buyers to your door and could even result in a bidding war. This will have a much more beneficial outcome for you than pricing so high buyers simply walk on by.

If you are unsure about the current market and whether or not you should wait to sell, many agents will perform free CMAs to give you an idea of what your home is currently worth. Once you have that information you can determine a fair price and move on to step 3, preparing your home!







Wednesday, September 30, 2015

8 STEPS TO SELLING YOUR HOME

Step One


Selling a home can be one of the most emotional things a person ever does. Homes are filled with memories of family and friends, memories that aren't easy to let go of. Unfortunately no one can make the process of selling a home less emotional, but an agent can help simplify the entire process and make the business side a lot less stressful. If you are considering selling your home these next 8 posts will give you all the info you need to get the ball rolling.

Define Your Goals and Needs



The first step to selling a home is understanding why you want to sell. Before you call an agent take a moment to answer the following questions.

Why do I want to sell? Do you have a growing family? Do you have a job opportunity in another city? Would you like to live closer to family? There are a myriad of reasons to sell your home, make sure your decision is based on the right one. 

What do I hope to accomplish with the sale? Is your main goal to make a profit, or do you need to sell within a certain time frame? Perhaps you have no emotional attachment to the property and you're just trying to rid yourself of a burden? While the ideal goal in any home sale is to sell quickly for the most money, it may not always be realistic. If you want to make a good profit but the current market is a buyer's market, you may need to wait awhile for the prices to go back up. However, if you have accepted a job in another city and need to sell fast, you may not be able to wait for as high an offer as you'd like. 

Are you being persuaded? Friends and family love to give advice, and they usually do so with the best of intentions. But if someone is convincing you to move when you really don't want to it's in your best interest to put a stop to it. If you think this may be happening to you, take a step back and assess the situation. Why do they want you to move, and are their reasons really what's best for you? Confronting the people closest to you can be difficult at times, but doing so will be better for everyone in the long run.

Take your time answering these questions and get the opinion of anyone else who may be involved in the sale. Once you have a good idea of why you want to sell and what goals you'd like to accomplish, it's time to contact your agent. Together you can map out a strategy to help you meet your home selling goals. 

Thursday, September 24, 2015

Door Knocking


A couple times a month another agent and I go door knocking in a few different neighborhoods we have selected. We like to leave the residents little goodies and information about ourselves, and we're always up for a friendly chat. We never know how many people will be home, or how many spider webs we'll walk through, but one thing is guaranteed, we're going to get a nasty email from a not-so-happy homeowner. 

I'm writing this blog post to answer some of the most common questions and comments we receive in these emails (I'll clean the language up a bit) and hopefully dispel the most common myth about door knocking; that we're trying to force you to sell your home. 


"I told you I don't want to sell my home, why do you keep coming back?"

A lot of people are under the impression that if an agent knocks on your door, they're going to try to force you to sell your home. Let me start by saying this; there are bad apples in every business, and if you have experienced a pushy agent on your door step I am truly sorry. However, this is not the goal of most agents who knock on your door. Our goal is simply this: We want you to know who we are. That's it! 
Real estate is a referral business, we need people to know our names in order to make a living. So you're not planning on moving, but maybe your co-worker is and they ask you if you know any good agents. If you say "Why yes! Two lovely ladies come to my door once a month, you should give them a call!" Then our door knocking goal has been met. If you don't refer us, that's OK too! We'll still come say hi once a month. 

"I don't want your flyers, stop delivering them to me!" Signed - Anonymous

Printing hundreds of flyers is pricey and we prefer to leave them with people who enjoy them or find the information useful. If you aren't that person then we will happily stop delivering them to you, but first we have to know who you are! Most agents don't enjoy making people upset, and we really don't like being called nasty names in emails, but if we don't know who you are you will continue to receive our flyers. Simply stating that you have no need for our flyers and leaving your address is all it takes to remove yourself from our list. 

"Why are you littering my doorstep? Put it in the mailbox!"

A lot of people don't know it, but it is illegal for anyone other than a postal worker to put anything in your mailbox. By leaving our info in your mailbox we risk charges and fines from the government, and no one wants that. We do, however, make a conscious effort to secure our flyers, usually by placing them under a welcome mat, so they don't blow into your yard. If you enjoy receiving the flyers but would prefer they be left somewhere specific simply send an email or give the agent a call with your request, we would be more than happy to oblige. 

"Why do you want to talk to me? Just leave your info and go."

Once upon a time, in the not so distant past, people had conversations and they made the world a better place. When we choose neighborhoods, we choose ones we love and we assume that since you live in these neighborhoods that you love them too, so we already have something in common. We enjoy talking with homeowners about why they love the area they're in, how long they've been there, what's changed, or anything else they'd like to share. If you don't love your neighborhood we'd like to hear about that too, please share your concerns with us! Taking a few minutes out of your day to connect with another person, without the aid of an electronic device, helps to relieve stress and anxiety, and we can all do with a little less stress in our lives. 
If you don't agree, or if talking to strangers raises your stress level, please let us know and we'll leave you be!

"This isn't my house, I'm just renting."

As I stated above, we aren't trying to make you move, and you could still be a referral source for us, but we can also be an asset to you. Real estate agents network with many different people in many different business, which makes us great resources for anything you might need. Aside from knowing all the best contractors, roofers, plumbers, gardeners and electricians, we also know the best restaurants, mechanics, florists, coffee shops, doggy daycares, and just about anything else you may need. If you're new to the area, or even if you've lived in the same place for years, feel free to hit us up for some free info! 

At the end of the day, all we really want is to get to know you and your community, we don't want to upset you! Door knocking is simply part of our job and to be honest, it makes a lot of us quite nervous. So the next time you see your neighborhood real estate agent I hope you wave and say hello, it will make their day!

Still have questions or concerns about door knocking? Feel free to leave them in the comments below!


Wednesday, August 12, 2015

8 STEPS TO BUYING YOUR FIRST HOME

Step 8


Protect Your Investment


Now that you have your home and you're all moved in, you need to take some final steps to protect your investment. Throughout the home buying process you have probably gotten to know your agent quite well, and hopefully you've been able to build a relationship of trust. That doesn't have to go away just because the deal has closed, your agent wants you to stay in touch! 

After you buy your home your agent can still help you in the following ways:

1. Handle your first tax return as a new homeowner. Filing taxes as a home owner can be quite different than you may be used to, and you may have tax breaks coming to you. It's also important to keep track of your property taxes and your agent can help you with that. 

2. Keep track of your home's current market value. The value of your home will rise and fall with the market and it's good to keep track. If at some point you choose to sell your home you will want to do so when the value is at a high point.

3. Help your friends find or sell homes. Sometimes finding an agent you like can be difficult, but once you do why not let your friends know? It will save them a lot of time doing an agent search and you can feel confident your agent will treat your friends as well as she treated you. 

4. Find contractors to help with home maintenance or remodeling. Keeping up with your home maintenance is essential to protecting the long-term value of your investment. 

There are two things you should be doing to maintain your home:

1. Keep it clean. We're not talking about sweeping and mopping here, although that's important too! It's really important to do regular maintenance and cleaning of your home's systems, such as heating and cooling units, fireplace chimneys, septic tanks, crawl spaces, and attic spaces. 

2. Keep an eye on it. Be sure to do regular walk around inspections of your home and look for any leaks, cracks, damage, and basic wear and tear. 

Allowing any part of your home to fall into disrepair can lead to hefty repair bills. Often times homeowners fail to pay attention to maintenance problems with their home until they choose to sell it, then they find themselves faced with a large inspection report brought forth by potential buyers. Keeping on top of issues as they arrive can save you a lot of hassle, and money, in the future.


Wednesday, August 5, 2015

8 STEPS TO BUYING YOUR FIRST HOME

Step 7


Closing

This is the final step of the home buying process and your agent will take care of most of it for you. The stages of this process include:

Appraisal - Your lender will send out an appraiser to assure the home is worth what you're paying for it, or at least what you're asking to borrow for it.

Title search - A title search will be performed to assure the seller has a right to sell the home and that no one else claims to own the property. 

Final credit and finance check - Your credit and financing will be looked at one final time to assure everything is in order. It is important you don't make any major purchases (car, new furniture) during the home buying process. 

Your agent will keep you notified of each step and how the process is advancing. Even though most of this stage is in your agent's hands, you will have a small list of pre-closing responsibilities you should be on top of. 

1. Stay in control of your finances. As I mentioned above, this is not the time for any major purchases, it could result in you losing the home of your dreams. 

2. Return all phone calls and paperwork promptly. There are time deadlines during this stage that everyone is trying to meet, don't be the one who keeps the party waiting! 

3. Communicate with your agent at least once a week. Send them a text, email. or give them a call to find out how things are going and if you need to do anything. 

4. Confirm with your agent your documents are in order. This should be done several days before closing. Sometimes documents can be misplaced in the mountains of paperwork and emails, so it's best to double check. 

5. Do a final walk-through - A few days before closing you and your agent should do one last walk-through of the property to ensure it's in the same shape it was when you agreed to purchase it, and that all appliances included in the deal have remained. 

On closing day you will be guided through the process of signing by a closing agent and your own agent. The documents you sign will:

1. Finalize your mortgage.

2. Pay the seller.

3. Pay your closing costs.

4. Transfer the title from the seller to you.

5. Make arrangements to legally record the transaction as a public record.

With these clear expectations, and if you follow directions given to you by your agent, closing should be the exciting end to your home-buying journey! 


Wednesday, July 22, 2015

8 STEPS TO BUYING YOUR FIRST HOME

Step 6


Perform Due Diligence

Unlike other purchases we make, a house can't be returned if you're unhappy with it, which is why property inspections and home owner's insurance are so important. 

The property inspection is completed before you sign the closing papers and will expose any and all problems the home may have. Here are a few things you should keep in mind about inspections:

1. Structural damage. This should always be your main concern as structural damage is often very expensive to fix, if it's fixable at all. If the cost of repairs will be more than 3% of the home cost you should seriously consider whether or not it would be in your best interest to go through or walk away. Any damage that is not fixed can seriously affect the resale value of the home.

2. Minor repairs. Every home will have minor issues and it's best to over look them. Leaky faucets, nail holes in walls, missing light switch covers, all of these things can be repaired easily for very little money. Don't let these minor inconveniences distract you from any big issues that may be present. 

3. Big problems. If your inspector finds a big problem it's best to bring in a specialist. A specialist will take a deeper look at the problem and let you know just how bad it is. Don't be afraid to walk away from the purchase if you feel the problem is more than you feel comfortable dealing with. 

Once inspection is complete and you're satisfied and ready to move on, the next step will be to purchase homeowner's insurance. Insurance will protect you in the following ways:

1. Loss or damage of the property. Although unpleasant to think about, unfortunate things can and do happen. Fires, earthquakes, floods, these are all potential disaster that can happen and you should be sure to get insurance that covers all possibilities. 

2. Liability for injuries. The insurance will also cover any injuries that may occur to people while on your property.

Remember, your home will be one of the biggest investments you will ever make and protecting that investment should be top priority.