Fenced In Pool:  Drowning is the leading cause of fatal injury for young children.  The CDC estimates that more than ½ of drowning deaths of young children could have been prevented by properly fenced in pools.  As well, homeowners can be liable for injuries that occur even when their pool is used without their permission.  Sure, insurers will cover homes with pools BUT typically at higher rates and with limited liability on their end. 

Dogs:  Not just another member of the family according to most insurances companies.  Insurance companies take these pooches very seriously.  The Centers for Disease Control and Prevention say that more than 4.7 million people A YEAR are bit by dogs!  More than 50% of those bites occur on the owner’s property and 1/3 of those results in insurance liability claims. Ouch!!  

Tree Houses:  Here’s a stat, every day approximately 8,000 children are treated in emergency rooms from fall related injuries which is about 2.8 million children a year.  Tree houses are considered the main culprit of these accidents so some insurance companies have included “tree house exclusion clauses” in their policies, some reject homeowners outright and others put high premiums on their policies.  Make sure you know in advance what your policy covers especially in a neighborhood full of young children.  That tree house looks very tempting especially when no one is around to supervise!!

Heating Fires: Every year heating fires account for 36% of residential fires in rural areas.  Before installing a wood stove or fireplace you may want to call your insurer to see how much/if any your rates may rise.  As well, most insurers may require certification that the unit was installed properly but if they were not notified of its existence will not cover the damage or liability at all.

Sewer Backups:  No one wants to think about this mess but “it” happens and just like floods typically “it” is not covered by a standard homeowner’s policy.  On average, our nation’s sewer lines are 30 years old so depending on how old your neighborhood or home is you could be looking at a high likelihood this will be in your future.  Damage from this disaster can be costly and you’ll want to know if you are covered before disaster strikes.

Home Businesses:  A typical home policy covers a max of $2,500 for business equipment in your home.  This typically does not cover business-related liabilities if a customer or other persons are injured on your property.  If you do not have specific business insurance that covers the business in your home and you don’t notify your insurer of your business you chance not being covered. 

Hope this information helps you in advance of disaster!!!

Need for Accessibility:  The most recent survey done American Institute of Architects identified that baby boomers are preparing for their later years and are settling in home that have accessibility for them as they become elderly.  Features like single-story home, grab bars in the bathrooms, fewer stairs and doorways to accommodate wheelchairs are just a few things that baby boomers have on their must-have lists.

Larger Garage Space:  You may not consider yourself a pack-rat but even the most minimalist of home owners find themselves with a bicycle for every family member, children’s toys for every stage of their growth, golf carts, workbench for tools and lots of storage.  After you throw in a lawnmower and a wheel barrel, you probably have to park your car outside.   As well, with almost each household owning at least one SUV, garage space is a requirement not a luxury anymore.    

Home Central:  Long gone are the desire for huge home offices with mahogany bookshelves and rolling ladder.  With the popularity of laptops and iPads, the desire for smaller more centralized “nooks” that include a built in desk and printer is all that is needed now.  These nooks are typically being built next to the kitchen which tends to be home-central anyway. 

Homes with Room for All:  the Census Bureau says that almost 1/3 of American adults are now living in the same household with another generation of their family.  To accommodate more than one generation and not be stepping over each other the growing need is independence!  Think “small apartment” that has its own bed and bathroom, kitchenette, and some storage space.  Voila!! 

Green:  No surprise here but energy efficient homes are fast becoming the only way to create all the energy your home requires and save money too.  Energy efficient homes are becoming top items on buyers “must have” lists these days as well.  Simple updates like CFL bulbs, energy star appliances and windows that don’t leak air can be huge selling points. 

Flow of the home:  We live differently than our parents did and our homes that reflect this change will win out.  Examples like laundry room with direct access to the master suite; pantries located just off the kitchen that can accommodate bulk items and drop zones between the garage and the kitchen where you can drop your cell phones, purse, keys and mail are key to maintaining the true flow of a modern day home. 

Open floor plan:  This is not one of the newest trends but continues to be one of the first thing buyers and builders ask for as well as being one of the major reasons why people do not consider buying a home.    

The good news for sellers in this Lake Norman market is that many of the homes are fairly new and have many of these flexibility-features already.  This is a great selling point and should be used to your advantage as you market your home.

Upon visiting my parent’s house recently, I noticed a “for rent” sign in the front yard of their next door neighbor’s house.  I cringed as I imagined the “conversation” that must have ensued when my 77 year old father (100% Italian) saw the sign.  I am grateful I wasn’t there actually.  As I entered the house, I mentally prepared for his bad mood.  I waited to get my Mom’s attention and whispered “so, did Dad see the For Rent sign”?  She promptly called me a chicken and said “yes” then rolled her eyes.  As I suspected he had concerns about renters in his neighborhood; what it meant to the quality of the neighborhood and community, how they will probably never mow the lawn or properly care for the house and the hit to his property value.  “Are they trying to kill me?” he asked.  Despite this, my Dad truly is an intellect so the usual “Dad, don’t worry about it” doesn’t really work.  So as any good daughter would do…I researched it. 

Here is what I found.  An undisputable fact is that homeownership is trending downward right now. I couldn’t find evidence that renters or even an increased number of renters in a neighborhood as a cause of lowering property or resale values. Having said that, there were some anomalies in places where jobs relied solely on one industry – for example car manufacturing – where renting percentages were rising slightly above 1%. But overwhelmingly research showed that home vacancies are devastating for local property values.  What else effects property and resale value?

Location, Location, Location – Did this surprise anyone! The primary factor that determines property value is location.  Ask yourself the following questions about your property: 

• Are their vacant homes near the property? This is considered to be devastating to your resale and property value.
• Is the home in a good school district?
• Are you close to shopping and restaurants?
• Are you close to a cemetery?  As you’d suspect, much research has come back with the obvious…no one wants to live near a cemetery. 
• What is your proximity to a park? 20% of couples are looking to live close to a park.   

Physical Characteristics of the Property - 

• What is the square footage and plot size?
• What is the age of the home?
• Have there been renovations?  Are the renovations esthetically pleasing to most people or is it overly customized/individualized?
• Has the interior had upgrades? For example the kitchen and bathrooms.
• Does it have Curb Appeal? Those homes with un-kept landscaping couldn’t even get folks in the front door!!

So what did I tell my Dad?  Basically that having a renter next to you may not be anyone’s first choice BUT having a vacant home next to you is not only bad for you property and resale values…vacant homes bring a host of other concerns, such as safety concerns due to the higher likelihood of criminal activity.  He seemed to understand and I think it’s safe to go back over there for a visit now!!!

WHAT IS THE AGENTS MARKETING PLAN FOR SELLING YOUR HOME? One of the biggest advantages of hiring a real estate agent is increased access to resources for marketing your home. Immediately upon signing with you, your agent should post your house on the Multiple Listing Service (MLS) but what other venues will they use? The most effective and most increasingly popular venue for selling homes is the internet. More than half of buyers use the internet to search for homes. Does the agent plan on holding any open houses?  How soon and how many? Depending on your needs, the agent should have a variety of options to offer regarding marketing your property.

HOW WILL THE AGENT KEEP YOU UPDATED?  Find out what kinds of news you’ll be updated on, the frequency and how they will be communicated to you? If you’re a buyer, there are a number of details to handle, even after a seller has accepted your offer. This includes home inspection, potential re-inspection, mortgage paperwork, title search, title insurance, repairs and other items. Will you get a weekly update, or just on an as-needed basis? Will it be with a phone call, an email or both? You may have your own preferences, and the agent may or may not accommodate them.

HOW DOES THE AGENT GET PAID? During the interview, you’ll want to talk money. Some agent’s charge a flat fee and some agents do not. Typically if they do not charge a flat fee they will take a percentage of the home’s final sale price. What percentage are they suggesting? The typical fee is around 6% of the selling price. 

DOES THE AGENT HAVE A CANCELLATION POLICY? What if after signing you hear that your neighbor’s friend is interested in buying your house? Or, if you’re buying a home, you stumble upon one on your own. Find out if the agent will still be entitled to the full commission/flat fee and what cancellation fees may or may not apply.

FINALLY, ASK THE AGENT WHAT PROBLEMS THEY SEE IN YOUR HOME THAT MAY AFFECT THE SELLING PROCESS? If the agent tells you what sounds like legitimate drawbacks, then they may be a keeper.  On the other hand, if they don’t point out what you already know are flaws, this could be an indication that they may have only a half-hearted dedication to selling your home.

First important thing to understand about absorption rate is that appraisers are required to use it to determine your homes current value.  Therefore it is something that you will need to understand so you can make sure your home is being valued properly. 

Secondly, you will need to know the absorption rate so you can determine how aggressively you will need to price your home and to get an estimation of how long it may take your home to sell given current inventory. 

What Is Absorption Rate: essentially absorption rate is a method to determine how fast homes are selling in a given area AND weighs supply and demand of current housing inventory on the market. A declining figure indicates the inventory is decreasing as more homes are being sold than are coming onto the market. A rising absorption rate implies that there are more homes coming onto the market than there are buyers willing to buy at the market prices. 

For instance: If 12 homes sold in the last 12 months that means that the market will absorb 1 house per month on average.  If there are 10 homes currently on the market, there is a 10 month supply and so on.

¨       a 6 month supply is considered a balanced market:

¨       less than a 6 month supply is considered a sellers market, and

¨       more than a 6 month supply is considered a buyers market. 

This figure is pretty easy to determine. You’ll need to know two things – the total number of active listings (homes currently for sale) and the total number of homes that sold over a specific period of time. To get the absorption rate for your area, divide the total number of active listings by the average number of sales per month and you get the absorption rate.

Using Absorption Rate To Sell Your Home: Once absorption rate is figured you will have a good statistical estimate of how many months it will take to sell all the homes in your area at the current rate they are selling. Keep in mind this number is a snap shot and looks only at current inventory.  The higher the number, the more aggressive you’ll have to be to get your home noticed and sold. 

Armed with the absorption rate you can decide how aggressive you will need to be.  If you have a high absorption rates and need to sell your home in the first few months you will truly need to have one of the “best deals” of all the competition…meaning best combination of location, condition and price. Also remember that as homes sell, news ones come on the market that may be priced more competitively, so keep track of what your competition is doing so you can act accordingly.

Home inspectors aren’t guaranteed — or required — to catch every flaw in your next home. A home inspection is never a guarantee that your new home is going to be in perfect working order but being knowledgeable about the process can help you make sure you find out what you are really getting in the house you seek to purchase.

Roof leaks – One of the most significant things to get missed in a home inspection is a roof leak. This is because a home inspector doesn’t go onto the roof to check on its condition. Instead, an inspector generally examines the roof from ground level with binoculars or looks out higher windows to get a view of roofing below. Inspectors will note torn or missing shingles and nail pops that may or may not indicate a full-fledged problem. If you want to guarantee that you are buying a house with a durable roof, one suggestion is to hire a licensed roofing contractor to provide a full evaluation.

Faulty appliances     Part of a home inspection is checking that all major appliances are functioning properly. That being said, this is another top issue to be missed by a home inspector.  To confirm that all appliances work, the inspector should run each appliance through one or two cycles to make sure there’s no trouble, such as a leaking refrigerator or a smoking dryer.

Heating, ventilation and air conditioning     Heating, ventilation and air conditioning systems (HVAC) are one of the top problems that home inspectors can miss. Inspectors may be reluctant to run the air conditioning in extreme cold or to check the furnace in blistering heat. The inspectors do this because they do not want to do damage by running the unit too long in adverse conditions or they do not want to be held responsible for repairs if it breaks a few days after the new homeowner moves in.

When the home-inspection report is issued, it usually contains a disclaimer that relieves inspectors of this liability. To cover any glitches with your heating and cooling systems down the road, don’t be afraid to have the system checked by a licensed specialist separate from the home inspection. 

Under the carpet     Inspectors look for evidence of significant wear in plain view, but the things that can’t be seen pose a risk. Do not be shy about shadowing the home inspector to address the concerns you have about the house and probe what is under some potentially moldy carpet or issues that you may think is lurking behind paneling.  Ask your realtor if language can be added that buyers can seek sellers’ permission to remove superficial facades for the inspector to take a deeper look.

What you should do next     If the home inspector reports a problem with your dream home, the process should not end there. It is in your best interest to follow up on the problems to assess their severity.  Whether it’s a roof contractor or an air-conditioning technician you need to further investigate the problem. It may cost some money upfront, but that’s a savings compared with the thousands of dollars that unreported or unresolved problems could cost after the sale has been finalized.

Thank you for,

-my husband and kids
-my parents
-my siblings & spouses and all my nieces and nephews and all our fun family reunions…even when you drive me crazy (just kidding)
-my very special friends
-my neighbor (and also fabulous friend) who loves to feel needed every time I have to borrow something and doesn’t get annoyed when I don’t return something for a few weeks
-my husband’s technology skills
-my kid’s sense of humor, witty comments and even their sarcasm (sometimes)
-DUMC, my place of worship
- for the roof over my head
-for the food on my table & clean water in my faucet
-for my job that allows me to meet new people and help them begin new adventures in their lives
-my puppies who make me smile

The rest of what I have are just things – and if I woke up tomorrow with just what I thanked God for above….I’d be ok  ;)

Happy Thanksgiving to all!

There was a hail storm a few years back and our roof got pelted beyond recognition.  When the opportunity presented itself to get it fixed, we took it.  We filed our insurance claim, paid our deductible and that was it…or so I thought.  Just like how the amount of debt you carry figures into your credit score, the insurance claims you’ve filed personally AND the claims filed on your home affect your CLUE score.  In and of itself, this is not a big deal.  But the fact that it is a precursor to what your insurance premiums will be is a big deal…or should be.

The CLUE Personal Property report has two parts: your personal record of claims (“Claims for the Subject”) and claims on your home (“Claims History for Risk”). The number of claims affect whether you can get insurance for your home, how much coverage you can get, and how much you’ll pay in premiums. If you’re turned down for homeowners insurance because of information in your CLUE report, your insurance company is required to let you know why you were rejected.

The CLUE database is used by most insurance companies. This means that your claims history will follow you from one insurer to another. Actual claims remain in the CLUE database for seven years from the date you filed them. Insurance companies rely on CLUE reports because statistics show that people, who have filed a claim in the past, are more likely to file one in the future.  Insurance companies consider this, and their own proprietary formulas when calculating what your premiums will be.  It goes without saying that the fewer the claims the less you’ll likely be charged.

Knowing what’s on your CLUE report will give you a sense of whether you’ll need to pay extra for homeowners insurance, or even if you run the risk of rejection. Even a pristine report doesn’t mean you can be sure of getting homeowners insurance at a great price. The claims on your CLUE report aren’t the only things that affect your overall insurance risk. Your credit score, if you pay your bills on time and how much debt you carry are things insurance companies consider as well.  Insurance companies believe that the more likely you are to file a claim, the bigger risk you are to the insurance company. And more risk means a higher premium or even denial of coverage.

Review your CLUE report.  Thankfully, federal law allows one free CLUE report a year. The owner of the CLUE report is a company called LexisNexis.  To check you report, go to the LexisNexis order page at this address: https://personalreports.lexisnexis.com/fact_act_claims_bundle/landing.jsp. As well, you can review a sample report so you know what you are looking at.  If there are errors, the report lays out how to dispute them.

Be proactive and find out why your insurance premiums are the way they are.  If there are errors in your report, you may even end up saving yourself some money.   So go ahead and get a CLUE!

As the government tries to reduce its footprint in the housing market, limits on government-backed loans are scheduled to reset to prior levels — a high of $625,500 in some markets — which, some say, could lead to higher mortgage rates and more downward pressure on home prices.

What is really relevant for those in our area is that the impact of resetting loans levels will fall on middle-of-the-market buyers and sellers, like those in the Charlotte market

Our concern for our readers is that prospective borrowers could face higher mortgage interest rates for loans that exceed the new caps, which would increase the overall cost of owning a home.

Taking into considering the lowering of guaranteed loan levels, prospective buyers may have to look at less-expensive properties in order to compensate for putting more money down and higher interest rates.  The issue is that this scenario could exacerbate existing weakness in the middle-priced segment of the market.

Ergo, sellers are going to feel the impact too, especially if their asking price is above the new limits. This all does not bode well for the already struggling housing market or the economy.

Being proactive, consumers can start preparing for the shift now, ahead of the Oct. 1 transition. The best thing consumers can do now is evaluate their needs and do their research now.

Consumers should look for a closing guarantee and lenders that are going to be able to lock in your rate as quickly as possible, because your rate could float even over the time.