Real Estate Information

Homeowners insurance continues to rise at alarming rates. Additionally, some new home buyers are facing challenges in finding companies to cover their property at all; and existing homeowners are seeing policies cancelled after years of rate increases.

What’s going on with property and casualty insurance?

1. Buyers should be aware of Chinese drywall and other inferior materials. Recently, Consumer Reports has highlighted an issue with faulty Chinese drywall. Bought cheaply, thousands of complaints are stating that the product is not only inferior and likely to fall apart, but is actually a health hazard. The problem is not widespread, but presents enough of a trend that insurers are covering their bases by excluding it from coverage or raising rates as a preventive measure against possible claims.
2. Location, location, location – and if your dream home is on a coastal waterway, be prepared to pay more for your homeowners insurance. What’s more, insurance companies are requiring separate deductibles for coastal property – primary insurance and secondary wind, water or specifically hurricane risk. If you file often, be prepared to go without; frequent claims cause insurers to cancel or not renew.
3. Lower home prices are also driving rates up and replacement or rebuilding coverage down. Even if the value of your home falls, shop around for the best price on covering your home in the event of a disaster, and make sure your coverage is adequate.
4. And if things aren’t bad enough, bad credit scores continue to drive up rates on homeowners insurance (as well as auto and other insurance). People with poor credit are considered to be a high risk for responsible behavior and an indicator of future financial trouble. With unemployment rates high and home prices falling, poor credit is driving up rates across insurance plans.

Understand your current homeowners insurance policy and the coverage you are paying for. Shop around – it pays off to compare and switch insurers for better rate plans. And remember, all kinds of market trends can factor in what you pay – and what you get for it.

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What is a "strategic Foreclosure"?  There has been a lot of talk lately on the news networks such as ABC, NBC, CBS, FOX News, MSNBC and others about these types of forclosures. I have heard the talk that if it is ggod enough for corporate america to walk away from the financial obigations it should be good enough for the private sector to do the same.

Think of it like this, and ask yourself these questions.  Does the corporation have a family to feed? Does the corporation need a place to live? Does it need to have credit in the future to buy a house or even rent an apartment? Does it need a job? If you need any or all of these things STAY AWAY from the idea of a Strategic Foreclosure. They entice you to milk the system for all it can give you at the time, but remember payback can come back to hit you in a big way.

The only good foreclosue is NO foreclosure. You need an expert with the experience like a CDPE (Certified Distressed Property Expert) who can work closely with the Banks to negotiate a settlement that will not adversely affect you for a very long time such as a foreclosure can. Please go to my web site www.pilgrimteam.com and seach for my CDPE site for additional information that can help you or someone you may know who is struggling with the possibility of foreclosure.

In last few years , it seems that we area always hearing negative news regarding the real estate market but now finally some good news is welcomed. According to National Association of Home Builders (NAHB) and Wells Fargo, for the 5^thconsecutive quarter, nationwide housing is near its highest level of affordability in 19 years  Housing prices and interest rates are still low and 72.2% of both new and existing Homes for sale in york pa are affordable to families who earn $63,800 (the national median income).

According to Bob Jones, NAHB Chairman, “Today’s report is very encouraging because it indicates that homeownership continues its more than year-long trend of remaining within reach of more households than it has for almost two decades.”

“With interest rates still hovering at low levels, companies starting to hire new employees and the economy beginning to rebound, this should encourage more home buyers to enter the market and help further stabilize housing and the economy.”

The national median home price for the quarter was $175,000. The NAHB uses a rule that no more than 28% of take-home pay can be used toward housing.

As with all real estate, location is key – Indianapolis and Youngstown, Ohio led the nation in affordability – 95% affordable based on local median income, followed by Dayton, Ohio, Syracuse, New York and Grand Rapids, Michigan.

New York City remains one of the least affordable cities, regardless of income. Still, any good housing news these days is cause for optimism, and home ownership is more than just a dream for many American families whose employment picture is stable.

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Summer is offically still a few weeks away but we are in the swing of lawn and garden season. Taking care of your lawn and garden does not have to be a chore, it can be a pleasure with the right tools. To get prepared, below is what every home owner should have in the tool shed:

1. Lawnmower – Of course this is a necessity! Most of us are familiar with standard rotary mowers – either gas or electric. The blades spin horizontally and often have a bag system for colleting grass clippings. Rotary mowers can be push, propelled or riding style. Reel mowers are push powered only. Falling out of favor to technology, reel mowers are becoming more popular because they are better for the environment and are much cheaper than rotary mowers.
2. Weedeater – string trimmers are almost exclusively referred to by the famous brand name, but there are a number of styles and brands available, electric and gas-powered. They are a must have for flower beds, around trees and for other small tight areas that can’t be mowed.
3. Spreader – these are generally push type, inexpensive buckets on wheels that spread fertilizer, seed or pest control materials quickly and evenly. Like lawnmowers, they also range in style and price depending on the size of your lawn and how much automation you choose.
4. Blowers – also gas and electric, (backpack blowers are gas-powered) these tools blow air directionally to clean sidewalks, walkways, patios, carports and garages. Faster and less back-breaking than a broom, they are especially handy if your lot is heavily treed.
5. Sprayer – sprayers come in various gallon sizes and are used to spot treat weeds or pests with liquid chemicals, allowing you to target troubled areas

Some of the smaller lawn maintenance tools that can be helpful, based on the complexity of your lawn and garden, and your interest in the details of lawn management can include:

• Thermometer
• Rain Gauge
• Soil probe and thermometer
• Trowels and hand tools

As with all tools, it’s a good idea to understand both the use and the care for your lawn equipment – including cleaning and storing them properly for the next use. Enjoy your landscape!

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The National Flood Insurance Program expired May 31, 2010 after three extentions. After May 31, the NFIP will not have the authority to issue new or renewal policies until Congress reauthorizes the program. Although this will not affect existing policies, renewal policies within a 30-day grace period, or policies purchased prior to the program's lapse, any new policies will be effected.

FEMA allows buyers to "assume" the seller's existing policy without having to re-issue it.  The purchase requirement for flood insurance may be met with non-NFIP policies; for instance, Lloyd's of London, Chubb and AIG have offered such insurance, but it can be very expensive and is limited to a certain number of states, with other conditions.

The National Association of Realtors  has been working with FEMA, FHA, Fannie, Freddie and the VA to provide guidance, similar to what it provided in April, for lenders as to the steps they may take to meet flood insurance purchase requirement during an NFIP lapse. With updated guidance in hand, lenders should have the assurances that they need to continue to close loans. FHA has already issued updated guidance. Fannie Mae, Freddie Mac, the VA, and other lending authorities are expected to release guidance shortly, and NAR will post the guidance at www.realtor.org.

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When you’re buying a home, you make investments along the way – everything from earnest money to appraisals, inspections, title searches and the costs to market your existing home. You may think you have all the bases covered in negotiating the terms of your contract, but deals do fall apart – some at the last minute. Protect yourself from additional loss with appropriate contingencies. Accepted contingencies give you the right to walk away from the contract with no penalty (other than some of the incidental costs mentioned above).

Most sellers avoid contingency contracts and may pressure you to move quickly and drop contingencies. But what if the property fails to appraise at the right value, or your lender fails to fund your loan? Know what you can include in your contract as a contingency and be prepared to stand firm!

The home inspection provides the opportunity to help you decide if you should walk from a tempting deal. Even properties that look well maintained and in good condition can have hidden flaws. In addition to the basic home inspection, there may be other inspections (for lead, termites, sewer and others) or areas that need to be addressed in your contract. Make sure you know what you are getting into!

The types of contingencies vary from state to state. Here are the top 10 most common contingencies and what be aware of as you make your offer>

Common Purchase Contract Contingencies

• Appraisal. Beware of the possibility that the appraisal may come in low.
• Loan Contingency. Your lender may fail to find your loan as requested, even if pre-approved.
• Home Inspection. One of the top indicators of flaws in the home.
• Lead-based Paint. Federal laws gives all buyers 10 days to inspect for lead-based paint.
• Wood Destroying Pest Inspection. The contract should specify who pays for termite inspection and correction.
• Roof Inspection. Make sure the roof is part of the home inspection, and if not specify a third party inspection for the roof.
• Sewer Inspection. This can be especially important for an older home or home on a septic system.
• Preliminary Title Report. Make sure the seller can transfer a clean title, with no unpaid liens against the property.
• Seller Statutory Disclosures. Some states require sellers to disclose all know material facts about the history of the property.
• Contingent on Listing York PA Homes Existing Home. This is one of the most common contingencies, and sellers usually specify a number of days to perform.

When negotiating your offer and contract, make sure you protect your rights as a buyer and understand your state laws and other requirements necessary to close on your new home!

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When looking for financing on your new home purchase, you will be given many different options.  One of the most common is the fixed rate Home Loans, typically with a 15 year or 30 year term.  These traditional mortgages are amortizing, which means that you pay off the entire loan amount by the end of the term of the loan. This type of loan is very common but there are both advantages and drawbacks to these mortgages.  Depending on your financial situation, and the prospects of changes in your financial future, a fixed rate Home Financing may or may not be the best product for you.

Below are some of the pro's and con's of fixed rate Home Loans:

PROS

• Interest rate on your Home Financing cannot be increased for the life of your loan
• Monthly payment will remain the same for the life of the loan
• Loan will be completely paid off by the end of the term

CONS

• Fixed monthly payment amount may be difficult to make at the start of the loan
• Large percentage of payment goes to interest payment in first years of the loan
• Usually has a higher interest rate than a variable rate loan initiated at the same time
• Interest rate cannot be reduced as in some variable rate programs
• Maybe harder to qualify for, as higher income may be required

Depending on your financial situation, a fixed rate Home Financing may be the best solution for you.  If you can afford the monthly payment required to obtain the loan, then the fact that your interest rate and monthly payments will stay the same for the life of the loan while give you peace of mind and make monthly budgeting easier.

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If the purchase of a new home is in your future, you will have many decisions to make. Many home buyers may consider using the services of a real estate attorney for assistance with complicated documents and legal advise during the sale. Using a real estate attorney is a good idea, because the process of buying a house is complex, and most people find it's easiest to get through with a professional by their side.

Laws vary from state to state and some states require an attorney to create the purchase agreement and do the title search. There may be legal issues arise that your real estate agent can't answer, then you'll need an attorney's help. An attorney is also beneficial if there is any confusion or if you have questions about the documents then it is important to have an attorney look the documents over. Below are some other reasons you might want to consider using a real estate lawyer.

• They can help protect your interests by examining all the legal documents before you sign them and can ensure that you’re not signing something that isn’t in your best interest. Always make sure you consult with a real estate attorney before you sign any legally binding documents to avoid signing a contract that can be damaging..
• A real estate attorney is also better equipped to negotiate with the seller’s attorney; something that most buyers can’t do successfully because they’re too emotionally involved in the purchase.
• If funds are being held in escrow as part of the sale, a real estate attorney has the authority to administer escrow. They can disburse funds as appropriate according to the terms of the escrow.

The cost of an attorney can vary, but typically the legal fees are higher when you buy than sell because the role of the buyer’s lawyer is more extensive. Most fees range from $500 to $1,500 for an average home whether you’re the buyer or the seller. You may find an attorney that will charge a flat fee for specific services and others bill by the hour. Usually, a lawyer can easily estimate costs related to a real estate transaction.

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Check out this video bhy clicking here to get a quick explanation of the new HAFA Program. Here