USAA - Winter 2013 - (Page 26)

five, 10, 15 offers," says Susan Anderson, the branch manager of Coldwell Banker Residential Brokerage in Vista, Calif. High prices and competitive bidding can make it frustrating for military families like John and Natalie Downing, who are looking to buy near San Diego. "We currently rent, but we attend open houses every weekend," John says. "With the prices as high as they are, we have extended our search northward," he says, adding that they are looking for a home within their budget that qualifies as a standard VA loan to minimize out-of-pocket down payments. Interior markets are seeing far less appreciation, CoreLogic data shows, in part because they suffered less during the bust. In the area around Fort Hood, Texas, the inventory of houses is about level, and prices have dipped slightly (approximately 6 percent in the fiscal year that ended in June). "We were fortunate, being in Texas and the facility being what it was; we didn't see the drop in business. We didn't have the foreclosures or short Rising Values THE GOOD VS. THE BAD » MAKE SURE YOUR Most homeowners love a fast-growing housing market. Indeed, in many parts of the country, a turnaround is underway, according to the real estate data company CoreLogic, with home prices ticking up. If your abode is once again pumping up your net worth, follow these tips from Scott Halliwell, a Certified finanCial Planner™ with USAA, to keep the good times rolling: INSURANCE COVERAGE IS ADEQUATE. Depending on » BE PREPARED FOR PROPERTY TAX INCREASES. Higher home values can be good for your local municipality, too, so read your property tax bill closely. In some cases, an appeal might be worth the effort. 26 USAA Magazine WINTER 2013 how your homeowners insurance is set up, you may need to increase your coverage to keep up with your home's increasing value or increasing replacement costs. » IF YOUR TAXES OR INSURANCE COSTS GO UP, you'll need to adjust your budget accordingly. With any luck, the changes won't be too drastic, but you should still account for them. Explore your options at homecircle.com, USAA's one-stop destination for members who want to learn about buying, selling and renting. sales. We had a steady market," says Dennis DeWine, CEO of ERA Colonial Real Estate in Harker Heights. Save for That Emergency Fund Military homebuyers are different from civilians in some important ways. "We have sellers who are required to move every three to five years," Higgins of USAA Home Circle says. "They have to move no matter if it's a buyer's or seller's market, so they have to make decisions that may not be in their best financial interest." To ease the stresses of moving, Higgins points USAA members to homecircle.com, which offers search tools, a monthly payment tool and mortgage information. "We offer an end-to-end process," he says. He also recommends USAA's MoversAdvantage program, which pairs families with local member agents trained to understand military needs. No matter what happens in the market, Stephen Blanchette, an Air Force veteran and Certified finanCial Planner™ with USAA, recommends preparing for the unexpected. "Having an emergency fund becomes extremely important when you may suddenly be taking on the role of landlord," he says. A good rule of thumb is to have at least six months' - and preferably 12 months' - worth of mortgage payments in an emergency fund in case you can't find a renter, Blanchette says. With the improving housing market, however, many of those reluctant military landlords are taking another look at their properties. Some are refinancing the property so rental income can be part of their retirement program, says HelfantBrowning, the real estate agent in Virginia. Others are preparing to sell. "We also have owners calling our rental agents all the time saying, 'Have my sales agent call me; I think I want to put it on the market now,'" Helfant-Browning says. That's the story of the Ecksteins, who now live near Sierra Vista, Ariz. Jason is hoping to transfer to the base near Augusta, so they can move back into their house and eventually put it on the market. "I think we'd be able to sell it," Heather Eckstein says, "and probably break even at this point." Ian Mount is a frequent contributor and has written for national publications, including The New York Times and The Wall Street Journal. See legal information on page 30. 800-531-USAA (8722) https://www.homecircle.com/?wa_ref=USAAmag https://www.homecircle.com/?wa_ref=USAAmag

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USAA - Winter 2013