1. You're a statistic.
To an insurer, you're not a person; you're a set of risks. An insurer bases its premium (or its decision to insure you at all) on your "risk factors," including your occupation, who you are, what you own, and how you live.
2. Know your home's value.
Before you choose a policy, it is essential to establish your home's replacement cost. A local builder can provide the best estimate.
3. Insurers differ.
As with anything else you buy, what seems to be the same product can be priced differently by different companies. You can save money by comparison shopping.
4. Don't just look at price.
A low price is no bargain if an insurer takes forever to service your claim. Research the insurer's record for claims service, as well as its financial stability.
5. Go beyond the basics.
A basic homeowners policy may not promise to entirely replace your home.
6. Demand discounts. Insurers provide discounts to reward behavior that reduces risk.
However, Americans waste some $300 billion a year because they forget to ask for them!
7. At claims time, your insurer isn't necessarily your friend.
Your idea of fair compensation may not match that of your insurer. Your insurer's job is to restore you financially. Your job is to prove your losses so you get what you need.
8. Prepare before you have to file a claim.
Keep your policy updated, and reread it before you file a claim so there are no surprises.
Monday, February 22, 2010
Sunday, January 3, 2010
5 Buyer Secrets
1. Get "Pre-Approved" - Not "Pre-Qualified!"
Do you want to get the best property you can for the least amount of money? Then make sure you are in the strongest negotiating position possible. Price is only one element in the negotiations, and not necessarily the most important one. Often other terms, such as the strength of the buyer or the length of escrow, are critical to a seller.
In years past, I always recommended that buyers get "pre-qualified" by a lender. This means that you spend a few minutes on the phone with a lender who asks you a few questions. Based on the answers, the lender pronounces you "pre-qualified" and issues a certificate that you can show to a seller. Sellers are aware that such certificates are WORTHLESS, and here's why! None of the information has been verified!
Many times unknown problems can come to the surface! Some of the problems I've seen include recorded judgments, alimony payments due, glitches on the credit report due to any number of reasons both accurately and inaccurately, down payments that have not been in the clients' bank account long enough, etc.
So the way to make the strongest offer today is to get "pre-approved".
This happens AFTER all information has been checked and verified. You are actually APPROVED for the loan and the only loose end is the appraisal on the property. This process takes anywhere from a few days to a few weeks depending on your situation. It's VERY POWERFUL and a weapon I recommend all my clients have in their negotiating arsenal.
2. Sell Your Property First, Then Buy the House
If you have a house to sell, sell it before selecting a house to buy! Contingency sales aren't nearly as strong as one that comes in with a ready, willing and able buyer. Consider this scenario You've found the perfect house - now you have to go make an offer to the seller.
You want the seller to reduce the price and wait until you sell your house. The seller figures that this is a risky deal, since he might pass up a buyer who DOESN'T have to sell a house while he's waiting for you. So he says OK, he'll do the contingency but it has to be a full price offer! You have now paid more for the house than you could have because of the contingency, and you have to sell your existing house in a hurry! Otherwise you lose the house! So to sell quickly you might take an offer that's lower than if you had more time. The bottom line is that buying before selling might cost you THOUSANDS of dollars.
If you're concerned that there is not a house on the market for you, then go on a window-shopping trip. You can identify possible houses and locations without falling in love with a specific house. If you feel confident after that then put your house on the market. Another tactic is to make the sale "subject to seller finding suitable housing". Adding this phrase to the listing means that WHEN YOU DO FIND A BUYER, you will have some time to find the new place. If you don't find anything to your liking, you don't have to sell your present home.
3. Play the Game of Nines
Before house hunting, make a list of things you want in the new place. Then make a list of the things you don't want. You can use this list as a guide to rate each property that you see. The one with the biggest score wins! This helps avoid confusion and keeps things in perspective when you're comparing dozens of homes. When house hunting, keep in mind the difference between "STYLE AND SUBSTANCE". The SUBSTANCE are things that cannot be changed such as the location, view, size of lot, noise in the area, school district, and floor plan. The STYLE represents easily changed surface finishes like carpet, wallpaper, color, and window coverings. Buy the house with good SUBSTANCE, because the STYLE can always be changed to match your tastes. I always recommend that you imagine each house as if it were vacant. Consider each house on its underlying merits, not the seller's decorating skills.
4. Don't Be Pushed Into Any House
Your agent should show you everything available that meets your requirements. Don't make a decision on a house until you feel that you've seen enough to pick the best one. A decade ago, homes were selling quickly, usually a few days after listing. In that kind of market, agents advised their clients to make an offer ON THE SPOT if they liked the house. That was good advice at the time. Today there isn't always this urgency, unless a home is drastically underpriced, and you'll know if it is.
Don't forget to check into the SCHOOL DISTRICTS of the area you're considering. Information is available on every school; such as class sizes, % of students that go on to college, SAT scores, etc. You can get this information from this web site.
5. Be prepared to act fast!
The biggest mistake I see home buyers make is they find something they really like, ask to see other homes, and by the time they decide their first choice was right, the home is gone. In a seller's market, there aren't enough homes to satisfy every homebuyer. Prices are usually sky high because of the low inventory. Homebuyers typically make a fast offer - often for more than the list price - or risk losing the home to a more agile homebuyer. There isn't much room to negotiate in a seller's market unless the property is overpriced. Your agent should show you everything available that meets your requirements. If you see something you like and can afford, buy it. Inexperienced or not, in today's market you must be willing to act fast.
Do you want to get the best property you can for the least amount of money? Then make sure you are in the strongest negotiating position possible. Price is only one element in the negotiations, and not necessarily the most important one. Often other terms, such as the strength of the buyer or the length of escrow, are critical to a seller.
In years past, I always recommended that buyers get "pre-qualified" by a lender. This means that you spend a few minutes on the phone with a lender who asks you a few questions. Based on the answers, the lender pronounces you "pre-qualified" and issues a certificate that you can show to a seller. Sellers are aware that such certificates are WORTHLESS, and here's why! None of the information has been verified!
Many times unknown problems can come to the surface! Some of the problems I've seen include recorded judgments, alimony payments due, glitches on the credit report due to any number of reasons both accurately and inaccurately, down payments that have not been in the clients' bank account long enough, etc.
So the way to make the strongest offer today is to get "pre-approved".
This happens AFTER all information has been checked and verified. You are actually APPROVED for the loan and the only loose end is the appraisal on the property. This process takes anywhere from a few days to a few weeks depending on your situation. It's VERY POWERFUL and a weapon I recommend all my clients have in their negotiating arsenal.
2. Sell Your Property First, Then Buy the House
If you have a house to sell, sell it before selecting a house to buy! Contingency sales aren't nearly as strong as one that comes in with a ready, willing and able buyer. Consider this scenario You've found the perfect house - now you have to go make an offer to the seller.
You want the seller to reduce the price and wait until you sell your house. The seller figures that this is a risky deal, since he might pass up a buyer who DOESN'T have to sell a house while he's waiting for you. So he says OK, he'll do the contingency but it has to be a full price offer! You have now paid more for the house than you could have because of the contingency, and you have to sell your existing house in a hurry! Otherwise you lose the house! So to sell quickly you might take an offer that's lower than if you had more time. The bottom line is that buying before selling might cost you THOUSANDS of dollars.
If you're concerned that there is not a house on the market for you, then go on a window-shopping trip. You can identify possible houses and locations without falling in love with a specific house. If you feel confident after that then put your house on the market. Another tactic is to make the sale "subject to seller finding suitable housing". Adding this phrase to the listing means that WHEN YOU DO FIND A BUYER, you will have some time to find the new place. If you don't find anything to your liking, you don't have to sell your present home.
3. Play the Game of Nines
Before house hunting, make a list of things you want in the new place. Then make a list of the things you don't want. You can use this list as a guide to rate each property that you see. The one with the biggest score wins! This helps avoid confusion and keeps things in perspective when you're comparing dozens of homes. When house hunting, keep in mind the difference between "STYLE AND SUBSTANCE". The SUBSTANCE are things that cannot be changed such as the location, view, size of lot, noise in the area, school district, and floor plan. The STYLE represents easily changed surface finishes like carpet, wallpaper, color, and window coverings. Buy the house with good SUBSTANCE, because the STYLE can always be changed to match your tastes. I always recommend that you imagine each house as if it were vacant. Consider each house on its underlying merits, not the seller's decorating skills.
4. Don't Be Pushed Into Any House
Your agent should show you everything available that meets your requirements. Don't make a decision on a house until you feel that you've seen enough to pick the best one. A decade ago, homes were selling quickly, usually a few days after listing. In that kind of market, agents advised their clients to make an offer ON THE SPOT if they liked the house. That was good advice at the time. Today there isn't always this urgency, unless a home is drastically underpriced, and you'll know if it is.
Don't forget to check into the SCHOOL DISTRICTS of the area you're considering. Information is available on every school; such as class sizes, % of students that go on to college, SAT scores, etc. You can get this information from this web site.
5. Be prepared to act fast!
The biggest mistake I see home buyers make is they find something they really like, ask to see other homes, and by the time they decide their first choice was right, the home is gone. In a seller's market, there aren't enough homes to satisfy every homebuyer. Prices are usually sky high because of the low inventory. Homebuyers typically make a fast offer - often for more than the list price - or risk losing the home to a more agile homebuyer. There isn't much room to negotiate in a seller's market unless the property is overpriced. Your agent should show you everything available that meets your requirements. If you see something you like and can afford, buy it. Inexperienced or not, in today's market you must be willing to act fast.
Friday, November 13, 2009
Gonnering's Marketing and Advertising Belief
In addition to traditional marketing strategies, Gonnering is utilizing the latest technologies available. The modern day real estate market of the Internet has changed the way real estate is sold today. There was a time when people used newspaper ads and open houses to find homes. Today, web connected homebuyers are using the Internet. Most homebuyers don't shop for homes advertised in the newspaper any longer and open houses seem to pull more "Window Shoppers" than qualified buyers. It's been reported that more than 80% of people looking for a home start their home search on the Internet. Gonnering reaches for the largest potential buyer pool by posting our listings to multiple sites in addition to the Multiple Listing Service (MLS). The following are a few of the sites we utilize: Realtor.com, Google, Point2, Trulia, Zillow and Visual Tour.
Monday, October 5, 2009
What is MLS and what can it do for me?
What is MLS and what can it do for me?
In the world of real estate, MLS is a common industry buzzword. Agents, market strategists and real estate publications refer to it often. However, if asked, most people who are not in the real estate industry would admit they've heard the term but haven't a clue as to what it stands for. So let us help to clarify the meaning.
First, MLS stands for Multiple Listing Service, which is a tool real estate agents have relied on for years. It was developed to coordinate the efforts of realtors from different companies in the same region. The MLS provides realtors with exact room dimensions, property condition, renovations, appliances, property zoning and the age of the home.
The MLS system has come a long way in recent years. In the beginning, agents would exchange fact sheets and possibly photographs in their local area. With the introduction of computers, listings were assembled faster and made available through a modem connection. Today, with the use of the Internet, MLS is readily available for agent use. It is important to note that there is no national MLS and that these lists are created for and by regional and local associations.
With the help of an experienced agent, MLS is a powerful asset for both buyers and sellers alike. MLS gives agents the ability to track what is on the market, the average amount of time homes stay on the market, and the current listing and selling prices of other homes in the area.
Buyer's Advantage: For prospective buyers, the MLS is a very convenient way to access the largest number of homes available in your desired area. Using MLS, a buyer's agent can specify the area, property size, age and location, of potentially desired properties. This helps narrow down an extensive list of possibilities and makes it easier to locate their dream home in a more expedient fashion.
Seller's Advantage: If interested in selling your home, an agent listing your home on the MLS gives your property maximum exposure to potential buyers through members of the local MLS Board. The more people have access to your home, the greater the demand for your property. This will boost your pricing power and decrease the amount of time your home is on the market. It is important to note that only realtor members of the local MLS may list property for sale in the respective MLS. If you are considering selling your property on your own, you will be missing out on the largest buyer audience by not listing with a Realtor with access to the MLS.
In the world of real estate, MLS is a common industry buzzword. Agents, market strategists and real estate publications refer to it often. However, if asked, most people who are not in the real estate industry would admit they've heard the term but haven't a clue as to what it stands for. So let us help to clarify the meaning.
First, MLS stands for Multiple Listing Service, which is a tool real estate agents have relied on for years. It was developed to coordinate the efforts of realtors from different companies in the same region. The MLS provides realtors with exact room dimensions, property condition, renovations, appliances, property zoning and the age of the home.
The MLS system has come a long way in recent years. In the beginning, agents would exchange fact sheets and possibly photographs in their local area. With the introduction of computers, listings were assembled faster and made available through a modem connection. Today, with the use of the Internet, MLS is readily available for agent use. It is important to note that there is no national MLS and that these lists are created for and by regional and local associations.
With the help of an experienced agent, MLS is a powerful asset for both buyers and sellers alike. MLS gives agents the ability to track what is on the market, the average amount of time homes stay on the market, and the current listing and selling prices of other homes in the area.
Buyer's Advantage: For prospective buyers, the MLS is a very convenient way to access the largest number of homes available in your desired area. Using MLS, a buyer's agent can specify the area, property size, age and location, of potentially desired properties. This helps narrow down an extensive list of possibilities and makes it easier to locate their dream home in a more expedient fashion.
Seller's Advantage: If interested in selling your home, an agent listing your home on the MLS gives your property maximum exposure to potential buyers through members of the local MLS Board. The more people have access to your home, the greater the demand for your property. This will boost your pricing power and decrease the amount of time your home is on the market. It is important to note that only realtor members of the local MLS may list property for sale in the respective MLS. If you are considering selling your property on your own, you will be missing out on the largest buyer audience by not listing with a Realtor with access to the MLS.
Monday, June 23, 2008
Top 10 Worst Foreclosure States For May, 2008
Rank State Per 1000
1 Nevada 118
2 California 183
3 Arizona 201
4 Florida 228
5 Michigan 353
6 Georgia 378
7 Colorado 388
8 Mass. 406
9 Ohio 410
10 New Jersey 467
Monday, June 9, 2008
Top 10 Reasons to Have Your Property Surveyed
The following are some common reasons property owners should hire a surveyor.
BOUNDARY LINES. One of the most common reasons a landowner seeks the assistance of a surveyor, the location of boundary lines and other lines of occupancy or possession is a critical piece of information to have before you build a fence, add a sunroom or pave your driveway. All too often the survey shows that you and your neighbors were operating under the wrong assumption about the placement of the boundary line between your properties. Before you have that fence erected, you want to make sure it will be built on your property, not your neighbor's. The boundary line certification will also tell you whether the legal description of your property is accurate.
GORES, OVERLAPS, AND GAPS. Part of the boundary line certification, most surveys include a statement that unless the surveys says otherwise, there are no discrepancies between the boundary lines of your property and the adjoining property. This is especially pertinent if your property is continuous with alleys, roads, highways, or streets.
RIGHTS-OF-WAY, EASEMENTS, AND ABANDONED ROADS. A survey will show all the conditions imposed by law that are reflected in your property's title report and other agreements. If your property blocks your neighbor's access to the road, for example, there may be an old agreement that gives your neighbor the right to walk across your yard to the street.
PONDS, RIVERS, CREEKS, STREAMS, WELLS, AND LAKES. The typical survey reports visible or surface waters only. Underground waters and wetlands are topics that are better covered by other professional inspections.
JOINT DRIVEWAYS, PARTY WALLS, RIGHTS-OF-SUPPORT, ENCROACHMENTS, OVERHANGS, OR PROJECTIONS. Unbeknownst to you or your next-door neighbor, you may have an obligation by law to support your neighbor's driveway by maintaining your own.
EXISTING IMPROVEMENTS. The surveyor will usually certify that the buildings and other improvements, alterations, and repairs to your property that exist at the time of the survey are not in violation of laws or other restrictions such as those regarding height, bulk, dimension, frontage, building lines, set-backs, and parking. Of course, the surveyor will also tell you if your latest improvement is in violation of a local ordinance or other law, which will put you on notice that a change is in order.
WATER, ELECTRIC, GAS, TELEPHONE AND TELEGRAPH PIPES, DRAINS, WIRES, CABLES, VAULTS, MANHOLE COVERS, CATCHBASINS, LINES, AND POLES. Poles and above-ground wires are obvious, but the surveyor can usually report on the existence of underground cables and drains, as well, if the information is provided to him or her by your utility companies and municipality. Such information is important for two reasons. A utility company may have the right to use a portion of your property for upkeep of utility lines, and may have a say in how tall you let your trees grow, for instance. Also, knowing the exact location of underground utilities is critical before any excavation or construction begins.
CEMETERIES. It is unlikely that unbeknownst to you there is an old family burial ground in your back yard. The survey will show the exact location of any old cemeteries on your plat.
ACCESS, INGRESS AND EGRESS. Your survey should state, at a minimum, whether there is physical vehicular ingress and egress to an open public street. It may also specify the adequacy of access for a particular purpose, such as delivery trucks, emergency vehicles such as fire trucks, and driveways for tenants.
ZONING CLASSIFICATION. You probably know whether your property is zoned for residential or light industrial use. But you may be surprised to discover that your zoning classification puts specific restrictions on how you use your property. This part of the survey simply reports your zoning jurisdiction and classification. Once you have your completed and certified survey, you may want to consult an attorney about whether you are using your property in conformance with zoning ordinances or for other advice about the legal ramifications of your property survey.
Thursday, June 5, 2008
Quick Tip: Getting your home in show condition.
Here are some quick tips on getting your home in show condition:
1. When the agent arrives with the potential buyers, have the window coverings open to let in as much sunlight as possible (unless an ugly view shouldn't be highlighted). At nighttime, be sure that all of your outdoor lights are on, particularly any landscape or pool lights. Indoor lights – all of them should be on day or night. I have never had a buyer claim– “it is too bright”.
2. Open doors between rooms to give an inviting and open feeling. Turn the television off. Have the thermostat set to a comfortable temperature. In winter, a fire in the fireplace is inviting - you want the buyers imagining themselves living in your home.
3. Pick up any newspapers, magazines and clutter that may be lying around. Your kitchen and bath counter tops should already have been cleared of all but the most basic necessities, make sure dirty dishes are not in sight.
4. If you have dogs, take them for a walk. Some people are afraid of pets; others love them and will remember your pet more than your home.
5. The beds should be made and clothes picked up (under the bed is a quick hiding place for all kinds of stuff). Bathrooms should be clean and the toilet lids down.
6. You never know when the right person is going to walk through your front door. Whenever you leave the house it should be in "show condition". You as the home seller play a major role in achieving the highest possible price. The above is a generalized “punch list”, your Realtor should provide you with specifics as to how best to “show off” your home. AND if you don't have a Realtor, I may be available for the job!! :-)
1. When the agent arrives with the potential buyers, have the window coverings open to let in as much sunlight as possible (unless an ugly view shouldn't be highlighted). At nighttime, be sure that all of your outdoor lights are on, particularly any landscape or pool lights. Indoor lights – all of them should be on day or night. I have never had a buyer claim– “it is too bright”.
2. Open doors between rooms to give an inviting and open feeling. Turn the television off. Have the thermostat set to a comfortable temperature. In winter, a fire in the fireplace is inviting - you want the buyers imagining themselves living in your home.
3. Pick up any newspapers, magazines and clutter that may be lying around. Your kitchen and bath counter tops should already have been cleared of all but the most basic necessities, make sure dirty dishes are not in sight.
4. If you have dogs, take them for a walk. Some people are afraid of pets; others love them and will remember your pet more than your home.
5. The beds should be made and clothes picked up (under the bed is a quick hiding place for all kinds of stuff). Bathrooms should be clean and the toilet lids down.
6. You never know when the right person is going to walk through your front door. Whenever you leave the house it should be in "show condition". You as the home seller play a major role in achieving the highest possible price. The above is a generalized “punch list”, your Realtor should provide you with specifics as to how best to “show off” your home. AND if you don't have a Realtor, I may be available for the job!! :-)
Record High Home Inventories
With record high housing inventories, lower interest rates and property prices beginning to be lowered the market changes are making home ownership irresistible again.
Do we all understand what happens next?
The housing inventory will lower again which will be followed by a rise in home prices. What this means is that NOW is the time to purchase! Remember the old saying "You snooze, you lose". That saying really goes hand-in-hand with today's market.
Welcome!
Welcome to my Blog. I decided to start a Blog for my real estate company Gonnering Realty so that I can share some of the knowledge and experience I have gained over the past 18 years as a Real Estate Agent and now as the Broker/Owner of Gonnering. I hope you enjoy my Blog and leave your computer knowing a little bit more about today's real estate market.
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