THE FOLLOWING POST, SHOULD IT BE ADOPTED, MAY HAVE SOME SIGNIFICANT EFFECT ON APPRAISAL VALUES AND THE RETHINKING OF MORTGAGORS USING APPRAISERS UNFAMILIAR WITH AREAS IN WHICH THEY'VE RECEIVED ASSIGNMENTS.
House Committee Weighs Scrapping HVCC... (HOME VALUE CODE of CONDUCT)
The appraisal system imposed by Fannie Mae and Freddie Mac last May is under attack by the House Financial Services Committee and could be on its way out.
The “Home Valuation Code of Conduct” could be terminated by the proposed Consumer Financial Protection Agency under a bipartisan amendment approved by the House committee.
The amendment would require the new agency’s director to replace the code with a set of rules developed through regular administrative procedures and public comment periods used by all federal agencies. The valuation code was the product of a settlement among New York Attorney General Andrew Cuomo, Fannie Mae and Freddie Mac, and the Federal Housing Finance Agency.
Critics say the code created more problems than it solved and has encouraged lenders to use inexperienced appraisers who don’t know the areas where they are doing the work, which is resulting in lowball valuations as well as higher fees.
The legislation under which this code would be scrapped is likely to pass the full House, but may have a tough road in the Senate.
Source: The Washington Post Writers Group, Kenneth Harney (10/30/2009)
Friday, October 30, 2009
SENATE NEGOTIATORS REACHED A TENTATIVE DEAL TO EXTEND A TAX CREDIT FOR FIRST TIME HOME BUYERS !
WASHINGTON -- Senate negotiators reached a tentative deal to extend a tax credit for first-time home buyers, but its passage remains uncertain.
The agreement would extend the existing credit for first-time home buyers, worth up to $8,000, while offering a new credit of up to $6,500 for some existing homeowners, Senate aides said. The reduced credit would be available to all home buyers who have been in their current residence for a consecutive five-year period in the past eight years.
The new provisions are aimed at broadening availability of the credit beyond first-time buyers and giving the weakened real-estate market a bigger boost while preventing real-estate investors from benefiting.
Many property experts have cited the credit as a reason for signs of recovery in the housing market in recent months. But that recovery was somewhat undercut by the September drop in new-home sales reported Wednesday.
The credit would be extended from its current expiration date of Dec. 1 to all contracts entered into by April 30, and closed before July 1. It is expected that income limits on people claiming the credit would be increased to $125,000 for singles and $250,000 for couples, from the current $75,000 and $150,000, aides said. The credit phases out for people making more than those amounts.
While Senate lawmakers appear to have reached a deal on the substance of the tax credit, they are still at odds over how it would be brought to the Senate floor. Senate Majority Leader Harry Reid (D., Nev.) hopes to add it to a bill currently on the Senate floor to extend federal unemployment insurance benefits. But agreement on that hasn't been finalized.
While Senate Republicans are likely to support the measure, House Democrats have raised concerns that it carries a high cost to the government. The Internal Revenue Service is examining the program for alleged abuse.
The agreement would extend the existing credit for first-time home buyers, worth up to $8,000, while offering a new credit of up to $6,500 for some existing homeowners, Senate aides said. The reduced credit would be available to all home buyers who have been in their current residence for a consecutive five-year period in the past eight years.
The new provisions are aimed at broadening availability of the credit beyond first-time buyers and giving the weakened real-estate market a bigger boost while preventing real-estate investors from benefiting.
Many property experts have cited the credit as a reason for signs of recovery in the housing market in recent months. But that recovery was somewhat undercut by the September drop in new-home sales reported Wednesday.
The credit would be extended from its current expiration date of Dec. 1 to all contracts entered into by April 30, and closed before July 1. It is expected that income limits on people claiming the credit would be increased to $125,000 for singles and $250,000 for couples, from the current $75,000 and $150,000, aides said. The credit phases out for people making more than those amounts.
While Senate lawmakers appear to have reached a deal on the substance of the tax credit, they are still at odds over how it would be brought to the Senate floor. Senate Majority Leader Harry Reid (D., Nev.) hopes to add it to a bill currently on the Senate floor to extend federal unemployment insurance benefits. But agreement on that hasn't been finalized.
While Senate Republicans are likely to support the measure, House Democrats have raised concerns that it carries a high cost to the government. The Internal Revenue Service is examining the program for alleged abuse.
Thursday, October 29, 2009
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For 72 hours you can score some of our most incredible deals of the year for travel Dec. 2 - Dec. 16, 2009 and Jan. 5 - Feb. 10, 2010.
check it out at www.SouthWest.com
For 72 hours you can score some of our most incredible deals of the year for travel Dec. 2 - Dec. 16, 2009 and Jan. 5 - Feb. 10, 2010.
Tuesday, October 27, 2009
THE IMPACT OF FORECLOSURE vrs. SHORT SALE...2nd entry!!!
THE IMPACT OF FORECLOSURE vrs. SHORT SALE...the 2nd Installment deals with CREDIT HISTORY
A FORECLOSURE WILL REMAIN PUBLIC RECORD ON A PERSON'S CREDIT HISTORY FOR 10 YEARS OR MORE.
IN A SUCCESSFUL SHORT SALE , THE SHORT SALE IS NOT REPORTED ON A CREDIT HISTORY. THERE IS NO SPECIFIC REPORTING ITEM FOR "SHORT SALE'. THE LOAN IS TYPICALLY REPORTED 'PAID IN FULL, SETTLED'.
A FORECLOSURE WILL REMAIN PUBLIC RECORD ON A PERSON'S CREDIT HISTORY FOR 10 YEARS OR MORE.
IN A SUCCESSFUL SHORT SALE , THE SHORT SALE IS NOT REPORTED ON A CREDIT HISTORY. THERE IS NO SPECIFIC REPORTING ITEM FOR "SHORT SALE'. THE LOAN IS TYPICALLY REPORTED 'PAID IN FULL, SETTLED'.
Real Estate Trivia of The Day !
Question. Who is the world's largest landowner?
Answer. The United States goverment, with holdings of 728.8 million acres of land.
Answer. The United States goverment, with holdings of 728.8 million acres of land.
Fewer McMansions on the Horizon
Builders Have Little Incentive to Create More McMansions and Hardly Anyone is Buying. There are Deals Out There, But You Better Act Fast.
By JUNE FLETCHER
If you're looking to buy a brand-new McMansion in the 'burbs, you'd better act fast. With home prices this low there's not much incentive for builders to start new houses. And inventories are getting razor-thin: Economists and analysts at the National Association of Home Builders fall construction conference in Washington, D.C. on Wednesday pointed out that the current 7.3-month supply of new homes is the lowest it's been since 1992.
Moreover, most of the summer's pickup in home sales and starts, which has since abated, could be attributed to the $8,000 first-time home buyer's tax credit. With that credit slated to end on Nov. 30—and with continuing problems securing money to build—builders have little incentive to ramp up their production of new homes.
Many places will take years to rebound. Rockville, Md. builder Robert Mitchell says these days he'll only build a home when he has contract in hand, because his lenders won't advance money for speculative building. "We sold off our standing inventory," he says.
Before the drought: Construction workers build a new home in August 2006 at a new sub-division in Sugar Grove, Ill., a suburb outside of Chicago.
Normally, short supply means higher prices. But consumers have been so battered by job losses and falling home equity, many are unwilling to commit to buying. Mark Zandi, chief economist of Moody's Economy.com, notes that "homes are as affordable as they've ever been," based on household income. However, he says that continuing layoffs and foreclosures will continue to depress prices, which have fallen 32% since their 2006 peak, according to S&P/Case-Shiller's composite 10-city index. He predicts that prices will fall another 5% to 10% before stabilizing in the middle of next year.
When the market does start to pick up, the NAHB sees that happening two years from now, the landscape will be changed, literally. After a long run-up in median new home size, peaking at 2,309 square feet in 2007,home sizes shrank to 2,091 square feet in 2009. "It's the largest decline ever seen," said NAHB's chief economist David Crowe. Since first-time buyers and their parents, the empty-nesters, will be the dominant demographic groups over the next decade, builders will cater to those groups more modest needs. Already, big builders like Toll Brothers have introduced models that look more like cozy carriage homes and four-squares than their usual English manor-style homes.
By JUNE FLETCHER
If you're looking to buy a brand-new McMansion in the 'burbs, you'd better act fast. With home prices this low there's not much incentive for builders to start new houses. And inventories are getting razor-thin: Economists and analysts at the National Association of Home Builders fall construction conference in Washington, D.C. on Wednesday pointed out that the current 7.3-month supply of new homes is the lowest it's been since 1992.
Moreover, most of the summer's pickup in home sales and starts, which has since abated, could be attributed to the $8,000 first-time home buyer's tax credit. With that credit slated to end on Nov. 30—and with continuing problems securing money to build—builders have little incentive to ramp up their production of new homes.
Many places will take years to rebound. Rockville, Md. builder Robert Mitchell says these days he'll only build a home when he has contract in hand, because his lenders won't advance money for speculative building. "We sold off our standing inventory," he says.
Before the drought: Construction workers build a new home in August 2006 at a new sub-division in Sugar Grove, Ill., a suburb outside of Chicago.
Normally, short supply means higher prices. But consumers have been so battered by job losses and falling home equity, many are unwilling to commit to buying. Mark Zandi, chief economist of Moody's Economy.com, notes that "homes are as affordable as they've ever been," based on household income. However, he says that continuing layoffs and foreclosures will continue to depress prices, which have fallen 32% since their 2006 peak, according to S&P/Case-Shiller's composite 10-city index. He predicts that prices will fall another 5% to 10% before stabilizing in the middle of next year.
When the market does start to pick up, the NAHB sees that happening two years from now, the landscape will be changed, literally. After a long run-up in median new home size, peaking at 2,309 square feet in 2007,home sizes shrank to 2,091 square feet in 2009. "It's the largest decline ever seen," said NAHB's chief economist David Crowe. Since first-time buyers and their parents, the empty-nesters, will be the dominant demographic groups over the next decade, builders will cater to those groups more modest needs. Already, big builders like Toll Brothers have introduced models that look more like cozy carriage homes and four-squares than their usual English manor-style homes.
Monday, October 26, 2009
THE IMPACT OF FORECLOSURE vrs. SHORT SALE
Every day, for the next week, I plan to post the consequences that will impact a homeowner should they, by circumstance, have to choose one of the the two alternatives (either a loss by short sale vrs. a loss by foreclosure).
Today's subject is the impact of both on a CREDIT SCORE
FORECLOSURE MAY LOWER A CREDIT SCORE ANYWHERE FROM 250 TO OVER 300 POINTS. TYPICALLY THIS REDUCTION WILL AFFECT A SCORE FOR OVER 3 YEARS.
A SUCCESSFUL SHORT SALE WILL LOWER THE SCORE BY AS LITTLE AS 50 POINTS IF ALL OTHER INSTALLMENT PAYMENTS ARE BEING MADE. A SHORT SALE'S EFFECT CAN BE AS BRIEF AS 12 TO 18 MONTHS...AND THE LATE PAYMENTS THAT GOT A SELLER TO THAT PLACE WILL BE REPORTED AS PAID OR NEGOTIATED.
Today's subject is the impact of both on a CREDIT SCORE
FORECLOSURE MAY LOWER A CREDIT SCORE ANYWHERE FROM 250 TO OVER 300 POINTS. TYPICALLY THIS REDUCTION WILL AFFECT A SCORE FOR OVER 3 YEARS.
A SUCCESSFUL SHORT SALE WILL LOWER THE SCORE BY AS LITTLE AS 50 POINTS IF ALL OTHER INSTALLMENT PAYMENTS ARE BEING MADE. A SHORT SALE'S EFFECT CAN BE AS BRIEF AS 12 TO 18 MONTHS...AND THE LATE PAYMENTS THAT GOT A SELLER TO THAT PLACE WILL BE REPORTED AS PAID OR NEGOTIATED.
Friday, October 23, 2009
Thursday, October 22, 2009
BUYER BEWARE OF SOME DEADLY SINS...
Earlier this month, I read an article in THE REAL ESTATE PROFESSIONAL written by Julie Garton-Good, in which she suggests that there are 7 Deadly Sins facing buyers which can stifle or derail the home buying experience...
I think there to be 4 which I think are most important...
1...Failing to check your credit in advance of house hunting...
I really think that knowing how strong your scores are will help keep your feet on the ground...anything less than a 700+ score can either cost you money or kill your chances to get good financing rates.
2...Not working with a buyer's agent...
I believe that trying to navigate a buy without YOUR OWN agent is a precursor to trouble. I urge all buyer's to stay away from dual agency. Simply stated...dual agency removes and prohibits advocacy for either party to a transaction.
3...Failure to get pre-approved as early in the search as possible.
I preach learning how much you can be approved for...and discussing how much of a buy fits you....be pragmatic. Don't get in over your head!
4...check out your lender...really check them out.
Select a lender who is not only here today, but will be here tomorrow. The mortgage meltdown has caused casualties among mortgagors. Learning that you can't get your loan funded late in the process is a stress builder and potentially can throw a time for excitement into chaos.
These are the sins which both Julie and I would like to have YOU avoid...call me and I can help you navigate a joyful time...312.882.4561
I think there to be 4 which I think are most important...
1...Failing to check your credit in advance of house hunting...
I really think that knowing how strong your scores are will help keep your feet on the ground...anything less than a 700+ score can either cost you money or kill your chances to get good financing rates.
2...Not working with a buyer's agent...
I believe that trying to navigate a buy without YOUR OWN agent is a precursor to trouble. I urge all buyer's to stay away from dual agency. Simply stated...dual agency removes and prohibits advocacy for either party to a transaction.
3...Failure to get pre-approved as early in the search as possible.
I preach learning how much you can be approved for...and discussing how much of a buy fits you....be pragmatic. Don't get in over your head!
4...check out your lender...really check them out.
Select a lender who is not only here today, but will be here tomorrow. The mortgage meltdown has caused casualties among mortgagors. Learning that you can't get your loan funded late in the process is a stress builder and potentially can throw a time for excitement into chaos.
These are the sins which both Julie and I would like to have YOU avoid...call me and I can help you navigate a joyful time...312.882.4561
Wednesday, October 21, 2009
Monday, October 19, 2009
Saturday, October 17, 2009
THE DIFFERENCE BETWEEN DOGS AND CATS...
WHAT A DOG THINKS...Feed Me, Pet Me, Love Me...YOU MUST BE GOD!
WHAT A CAT THINKS...Feed Me, Pet me, Love Me...I MUST BE GOD!
WHAT A CAT THINKS...Feed Me, Pet me, Love Me...I MUST BE GOD!
Friday, October 16, 2009
5 GREAT REASONS TO BUY NOW
5 REASONS TO BUY NOW
1. There is an abundance of inventory
2. Homes are on sale...Today's prices are same as they were in July of '03
3. We may be at or near the bottom of the market decline
4. Uncle Sam is feeling generous...at least he is if you're a 1st time home buyer
5. Mortgage interest is on sale too
Oh, there is a 6th...The Affordability Index is heavily weighted in your favor...
IF YOU'RE READY TO EXPLORE ANY ONE OR ALL OF THESE GREAT REASONS TO BUY...PLEASE CALL ME AND WE CAN TALK ABOUT THEM. MY PHONE IS...312.882.4561.
ACTING NOW MAY WELL BE THE BEST HOME BUYING DECISION YOU'LL EVER MAKE!!!
1. There is an abundance of inventory
2. Homes are on sale...Today's prices are same as they were in July of '03
3. We may be at or near the bottom of the market decline
4. Uncle Sam is feeling generous...at least he is if you're a 1st time home buyer
5. Mortgage interest is on sale too
Oh, there is a 6th...The Affordability Index is heavily weighted in your favor...
IF YOU'RE READY TO EXPLORE ANY ONE OR ALL OF THESE GREAT REASONS TO BUY...PLEASE CALL ME AND WE CAN TALK ABOUT THEM. MY PHONE IS...312.882.4561.
ACTING NOW MAY WELL BE THE BEST HOME BUYING DECISION YOU'LL EVER MAKE!!!
New LFC athletic facilities on track to be ready by spring
For the first time in more than 40 years, Lake Forest College is undergoing a major expansion of its athletic facilities.
The existing Sports Center complex was constructed in 1968 and has had little more than "creative retrofitting" until now, college officials said. The construction process began in May and is on track to be completed by April 1, 2010. Currently, steel roof trusses are being installed, and then the pre-cast exterior walls will go up.
On Oct. 9, the college hosted a topping-off ceremony, which marks a milestone in the construction phase of a project - the point at which a structure has been completed up to its highest point. Prior to this last steel beam being lifted into place, it is signed by individuals involved with the project. It is later lifted to the highest point in the structure. Students and community members signed the beam as they walked through campus Oct. 9.
Mario Baldassari, student body president at the college, said he's thrilled with what the new facilities will provide for students.
Ties that bind
"I hope it will be a whole new gathering place for students," said Baldassari, a junior. "It will help us make ties between athletes and non-athletes. It's just one more thing that will enrich the experience of being at Lake Forest College."
The 63,440-square-foot facility is anticipated to cost about $17 million, college officials said, and is being funded through contributions and gifts from alumni, parents and friends of Lake Forest College.
The existing Sports Center complex was constructed in 1968 and has had little more than "creative retrofitting" until now, college officials said. The construction process began in May and is on track to be completed by April 1, 2010. Currently, steel roof trusses are being installed, and then the pre-cast exterior walls will go up.
On Oct. 9, the college hosted a topping-off ceremony, which marks a milestone in the construction phase of a project - the point at which a structure has been completed up to its highest point. Prior to this last steel beam being lifted into place, it is signed by individuals involved with the project. It is later lifted to the highest point in the structure. Students and community members signed the beam as they walked through campus Oct. 9.
Mario Baldassari, student body president at the college, said he's thrilled with what the new facilities will provide for students.
Ties that bind
"I hope it will be a whole new gathering place for students," said Baldassari, a junior. "It will help us make ties between athletes and non-athletes. It's just one more thing that will enrich the experience of being at Lake Forest College."
The 63,440-square-foot facility is anticipated to cost about $17 million, college officials said, and is being funded through contributions and gifts from alumni, parents and friends of Lake Forest College.
Sunday, October 11, 2009
A 3 COMMUNITY REAL ESTATE OVERVIEW
SOME QUICK STATS FOR YOU TO CONSIDER...PLEASE CALL ME IF I CAN HELP EXPLAIN HOW THESE NUMBERS AFFECT YOUR CONSIDERATIONS TO EITHER BUY OR SELL IN TODAYS MARKET...
LAKE FOREST REAL ESTATE OVERVIEW
Average price per square foot for Lake Forest IL was $262, a decrease of 18.9% compared to the same period last year. The median sales price for homes in Lake Forest IL for Jul 09 to Sep 09 was $750,000 based on 55 home sales. Compared to the same period one year ago, the median home sales price decreased 28.6%, or $300,000, and the number of home sales decreased 19.1%.
There are currently 480 resale and new homes in Lake Forest on Trulia, including 30 open houses, as well as 49 homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process. The average listing price for homes for sale in Lake Forest IL was $1,656,495 for the week ending Sep 30, which represents a decrease of 2.9%, or $49,823, compared to the prior week.
LAKE BLUFF REAL ESTATE OVERVIEW
Average price per square foot for Lake Bluff IL was $205, a decrease of 18% compared to the same period last year. The median sales price for homes in Lake Bluff IL for Jul 09 to Sep 09 was $342,500 based on 21 home sales. Compared to the same period one year ago, the median home sales price decreased 29.7%, or $145,000, and the number of home sales decreased 38.2%.
There are currently 164 resale and new homes in Lake Bluff on Trulia, including 13 open houses, as well as 18 homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process. The average listing price for homes for sale in Lake Bluff IL was $1,033,204 for the week ending Sep 30, which represents an increase of 2.9%, or $29,424, compared to the prior week.
LINCOLNSHIRE REAL ESTATE OVERVIEW
Average price per square foot for Lincolnshire IL was $181, a decrease of 44.3% compared to the same period last year. The median sales price for homes in Lincolnshire IL for Jul 09 to Sep 09 was $421,500 based on 12 home sales. Compared to the same period one year ago, the median home sales price decreased 26.4%, or $151,500, and the number of home sales decreased 47.8%.
There are currently 120 resale and new homes in Lincolnshire on Trulia, including 9 open houses, as well as 23 homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process. The average listing price for homes for sale in Lincolnshire IL was $670,677 for the week ending Sep 30, which represents a decrease of 0.5%, or $3,543, compared to the prior week.
THE MESSAGE IS SIMPLE...IF YOU WANT TO SELL, PRICE IT RIGHT..IF YOU WANT TO BUY...BUY NOW!!!
LAKE FOREST REAL ESTATE OVERVIEW
Average price per square foot for Lake Forest IL was $262, a decrease of 18.9% compared to the same period last year. The median sales price for homes in Lake Forest IL for Jul 09 to Sep 09 was $750,000 based on 55 home sales. Compared to the same period one year ago, the median home sales price decreased 28.6%, or $300,000, and the number of home sales decreased 19.1%.
There are currently 480 resale and new homes in Lake Forest on Trulia, including 30 open houses, as well as 49 homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process. The average listing price for homes for sale in Lake Forest IL was $1,656,495 for the week ending Sep 30, which represents a decrease of 2.9%, or $49,823, compared to the prior week.
LAKE BLUFF REAL ESTATE OVERVIEW
Average price per square foot for Lake Bluff IL was $205, a decrease of 18% compared to the same period last year. The median sales price for homes in Lake Bluff IL for Jul 09 to Sep 09 was $342,500 based on 21 home sales. Compared to the same period one year ago, the median home sales price decreased 29.7%, or $145,000, and the number of home sales decreased 38.2%.
There are currently 164 resale and new homes in Lake Bluff on Trulia, including 13 open houses, as well as 18 homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process. The average listing price for homes for sale in Lake Bluff IL was $1,033,204 for the week ending Sep 30, which represents an increase of 2.9%, or $29,424, compared to the prior week.
LINCOLNSHIRE REAL ESTATE OVERVIEW
Average price per square foot for Lincolnshire IL was $181, a decrease of 44.3% compared to the same period last year. The median sales price for homes in Lincolnshire IL for Jul 09 to Sep 09 was $421,500 based on 12 home sales. Compared to the same period one year ago, the median home sales price decreased 26.4%, or $151,500, and the number of home sales decreased 47.8%.
There are currently 120 resale and new homes in Lincolnshire on Trulia, including 9 open houses, as well as 23 homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process. The average listing price for homes for sale in Lincolnshire IL was $670,677 for the week ending Sep 30, which represents a decrease of 0.5%, or $3,543, compared to the prior week.
THE MESSAGE IS SIMPLE...IF YOU WANT TO SELL, PRICE IT RIGHT..IF YOU WANT TO BUY...BUY NOW!!!
Thursday, October 8, 2009
15 minutes will mean MONEY...
I'm really going outside the comfort zone of most of my colleagues by developing a pre-listing DVD/CD for potential home sellers. It's intended to provide potential listers answers to questions and an examination of my style, PRIOR to an actual listing appointment. The client gets the DVD to view on their terms and time before any face to face is had.
It'll run about 15 minutes but it will be chuck full of all that I tell prospective client's in my presentation. In it will be a marketing plan, the rationale for listing with me...slides of forms to be signed, website info ...and answers to all of the questions that a seller-client has but has never asked.
If your even thinking of selling/listing viewing this DVD may well be the most rewarding 15 minutes you could spend both educationally and financially...
CALL ME FOR YOUR COPY...312.882.4561
It'll run about 15 minutes but it will be chuck full of all that I tell prospective client's in my presentation. In it will be a marketing plan, the rationale for listing with me...slides of forms to be signed, website info ...and answers to all of the questions that a seller-client has but has never asked.
If your even thinking of selling/listing viewing this DVD may well be the most rewarding 15 minutes you could spend both educationally and financially...
CALL ME FOR YOUR COPY...312.882.4561
Wednesday, October 7, 2009
DO YOU WANT PEACE OF MIND...
RECENTLY PURCHASE A HOME? THEN GET SOME PEACE OF MIND…
As a concerned Real Estate agent who has helped both buyer and seller, I always recommend that “someone” purchase a home warranty. That "someone" can be either the seller or the buyer.
What’s a home warranty?
Most simply defined…it’s an insurance policy, issued by an insurer, the covers the repair or replacement of the major appliances and systems in that new home you just bought. It’s also a “peace of mind” item that can also be bought by a homeowner for those same items in his home, even if he/she has no intention of selling (I own one on my house)…
Generally, the items covered are …the furnace, air conditioner, hot water heater, stove, microwave, disposal, and the sump pump. Additionally, some plumbing systems as well as some electrical wiring are cover for the repair or replacement for a specific amount of time…usually a year from purchase of the policy. There are riders that’ll also provide protection for the refrig and icemaker, and both the washer and dryer. Additionally, doorbells, garage door openers, swimming pool motors can also be insured (I don’t personnally know of anyone who has purchased this last 4 items).
This type of insurance policy has existed for several years, but only recently have they been modified to insure over pre-existing conditions and improperly maintained items. Additionally, the newer policies cover some removal and permits but for a full disclosure of limitations and policy provisions, I would urge a purchaser to review the contract.
My brokerage, Coldwell Banker, and I endorse only 1 carrier…American Home Shield, which is owned by ServiceMaster, although there are several other similar policies in the market place but I know little of their terms and conditions. Candidly, I’ve used AHS's policy…so I’m a believer.
Benefits Of A Home Warranty
Benefits to Home Sellers:
1. Having a home owners warranty enables you to attract more buyers for your home. Your home becomes more appealing to prospective buyers as they do not have to worry about repair costs for the major appliances.
2. Without a home warranty, you may have to deal with angry home buyers who knock on your door because you sold them a house which you knew had defective appliances. Consider the legal issues here. The low cost of buying a home warranty is much preferable than having to settle issues with your home buyer.
3. If a home buyer is deliberating over buying your home because the appliances and systems are old, having a home warranty will give confidence to the buyer to buy your property.
4. If you purchase the home warranty while selling your home, you will have to pay for it only at closing and thus need not shell out your own money.
Benefits to Home Buyers:
1. After closing the deal for a new home, buyers are typically low on cash. In such a situation, you definitely don’t want to have to spend large sums of money in repairing major appliances. This is where a home buyer warranty can be very useful.
2. In most cases the home seller will buy the home warranty, but if they don’t, you can ask them to purchase a home warranty. Most sellers will oblige in a bid to sell their homes. You will therefore not have to pay for the home warranty.
3. As a buyer you can have the satisfaction of knowing that the home seller is not trying to sell you a home with bad appliances which may break down and need repairs as soon as you move into your new home.
You have two choices when it comes to buying a home warranty:
1. You can buy the home warranty from a home warranty provider
2. Your gas or electric company may offer appliance service plans to customers for a modest monthly premium. These plans protect you against repair and replacement costs up to the period of the plan.
The basic American Home Shield home warranty can be bought for $420.00 per year but a policy with the additional optional coverages can be bought for $600-$700 depending on how many extra you wish to insure. ... Considering the rising costs of appliance repair and replacement, a home warranty is an absolute must for home sellers and buyers!.
As a concerned Real Estate agent who has helped both buyer and seller, I always recommend that “someone” purchase a home warranty. That "someone" can be either the seller or the buyer.
What’s a home warranty?
Most simply defined…it’s an insurance policy, issued by an insurer, the covers the repair or replacement of the major appliances and systems in that new home you just bought. It’s also a “peace of mind” item that can also be bought by a homeowner for those same items in his home, even if he/she has no intention of selling (I own one on my house)…
Generally, the items covered are …the furnace, air conditioner, hot water heater, stove, microwave, disposal, and the sump pump. Additionally, some plumbing systems as well as some electrical wiring are cover for the repair or replacement for a specific amount of time…usually a year from purchase of the policy. There are riders that’ll also provide protection for the refrig and icemaker, and both the washer and dryer. Additionally, doorbells, garage door openers, swimming pool motors can also be insured (I don’t personnally know of anyone who has purchased this last 4 items).
This type of insurance policy has existed for several years, but only recently have they been modified to insure over pre-existing conditions and improperly maintained items. Additionally, the newer policies cover some removal and permits but for a full disclosure of limitations and policy provisions, I would urge a purchaser to review the contract.
My brokerage, Coldwell Banker, and I endorse only 1 carrier…American Home Shield, which is owned by ServiceMaster, although there are several other similar policies in the market place but I know little of their terms and conditions. Candidly, I’ve used AHS's policy…so I’m a believer.
Benefits Of A Home Warranty
Benefits to Home Sellers:
1. Having a home owners warranty enables you to attract more buyers for your home. Your home becomes more appealing to prospective buyers as they do not have to worry about repair costs for the major appliances.
2. Without a home warranty, you may have to deal with angry home buyers who knock on your door because you sold them a house which you knew had defective appliances. Consider the legal issues here. The low cost of buying a home warranty is much preferable than having to settle issues with your home buyer.
3. If a home buyer is deliberating over buying your home because the appliances and systems are old, having a home warranty will give confidence to the buyer to buy your property.
4. If you purchase the home warranty while selling your home, you will have to pay for it only at closing and thus need not shell out your own money.
Benefits to Home Buyers:
1. After closing the deal for a new home, buyers are typically low on cash. In such a situation, you definitely don’t want to have to spend large sums of money in repairing major appliances. This is where a home buyer warranty can be very useful.
2. In most cases the home seller will buy the home warranty, but if they don’t, you can ask them to purchase a home warranty. Most sellers will oblige in a bid to sell their homes. You will therefore not have to pay for the home warranty.
3. As a buyer you can have the satisfaction of knowing that the home seller is not trying to sell you a home with bad appliances which may break down and need repairs as soon as you move into your new home.
You have two choices when it comes to buying a home warranty:
1. You can buy the home warranty from a home warranty provider
2. Your gas or electric company may offer appliance service plans to customers for a modest monthly premium. These plans protect you against repair and replacement costs up to the period of the plan.
The basic American Home Shield home warranty can be bought for $420.00 per year but a policy with the additional optional coverages can be bought for $600-$700 depending on how many extra you wish to insure. ... Considering the rising costs of appliance repair and replacement, a home warranty is an absolute must for home sellers and buyers!.
Thursday, October 1, 2009
I PROMISE TO TELL THE TRUTH...
No matter if I'm perceived as a DEBBIE DOWNER or not, I think that as a Real Estate professional, my obligation is too call it as I see it...
Everyday, the news that we're privy to seems conflicted. I really think it's about who's ox is being gored!
Our Association (NAR) and our Brokers want good news to told...but a group of economists seem to be singing a different tune...again, there are some indicators that project a stabilizing...while the flip side prognosticators predict another wave of foreclosures and a downward pressure on prices, as well as increase in higher priced inventory.
I'm here to sell houses, and I think I'm very good at it...but I'm not yet a believer that we are close to coming out of our malaise.
I submit two interviews...both as links...for you to consider...they are and
I really want to be positive...but the advise I'm giving my sellers is to understand what their needs are and then proceed with no delusions . If they listen, I WILL HAVE DONE MY JOB.. and think I can get their homes sold, even against the tide of rising foreclosures.
Everyday, the news that we're privy to seems conflicted. I really think it's about who's ox is being gored!
Our Association (NAR) and our Brokers want good news to told...but a group of economists seem to be singing a different tune...again, there are some indicators that project a stabilizing...while the flip side prognosticators predict another wave of foreclosures and a downward pressure on prices, as well as increase in higher priced inventory.
I'm here to sell houses, and I think I'm very good at it...but I'm not yet a believer that we are close to coming out of our malaise.
I submit two interviews...both as links...for you to consider...they are and
I really want to be positive...but the advise I'm giving my sellers is to understand what their needs are and then proceed with no delusions . If they listen, I WILL HAVE DONE MY JOB.. and think I can get their homes sold, even against the tide of rising foreclosures.
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