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Two situations have left many homeowners insured for less than their homes are currently worth.
Many homes today are priced at higher levels than they were just a few years ago. In addition, homeowners have poured a great deal of money into their homes for everything from backyard decks to new kitchens and bathrooms.
In 2005, an estimated $155 billion, up 27 percent from the previous year, was spent on home improvements in the U.S. With the cost of lumber, building supplies, and labor increasing by about 7 percent last year, the value of improvements in 2006 would be even higher.
People who haven't updated their insurance policies could be in for a nasty surprise if they have to make a claim. A survey by Marshall & Swift/Boeckh, a firm that supplies building-cost data to insurers, shows that 60 percent of homes are undervalued for insurance purposes. The average homeowner could rebuild about 80 percent of his or her home.
Robert Dowdell, CEO of Marshall Swift/Boeckh, says: "The most typical type of underinsured homes are older homes because the cost of reconstructing an older home is just more expensive than a modern home."
Dowdell contends that most homeowners get hit when they haven't changed their policies for more than five years or they remodel without updating their insurance. Plus, the old-fashioned "square foot" formula, where you simply pay by the size of your house, doesn't work for today's customized homes. The amount of coverage you need also depends on what your personal property is worth.
Call me today to arrange for a Replacement Cost Appraisal of your property. As a state certified residential appraiser, I am trained and experienced in these type of appraisal assignments, and I'll give you peace of mind knowing that if you suffer property damage or loss, you'll have the right amount of insurance.
1:56 PM - Feb. 22, 2008 - {0} -
View more entries tagged with: Property Insurance
For most homeowners, a real estate appraisal is the key ingredient to buying or selling their property. It allows all the interactions to proceed among the buyer, seller, real estate agent, and mortgage lender.
Before an appraiser arrives, there are a few things you should know. By law, an appraiser must be state licensed or certified to perform appraisals. Also by law, you may receive a copy of the completed appraisal FROM YOUR LENDER upon written request .
Once the appraiser arrives, you do not need to accompany him/her along on the entire site inspection, but you should be available to answer specific questions about your property, and point out any improvements you have made. Here are some other suggestions:
- Accessibility: make sure that all areas of the home are accessible, especially the attic and crawl space.
- Housekeeping: Appraisers see hundreds of homes a year and will look past most clutter, but they are human beings too! A good impression can translate into a more positive experience for everyone involved.
- Maintenance: Repair minor things like leaky faucets, missing door handles, and trim boards.
- Make sure pets are leashed or otherwise contained.
10:12 AM - Jan. 18, 2008 - {0} -
View more entries tagged with: Zanesville Ohio Appraisals
It seems many people who rely on onsite wells for drinking water are not testing the water on a regular basis. And that could be a big mistake that I do not want you to make. True, testing costs money. But, getting sick because you did not test is crazy.
Wells get their water from underground streams, which are called aquifers. The streams begin at once place and flow underneath your property, and many other properties. While they are flowing, they can pick up contamination from a variety of sources.
They can pick up naturally existing contamination. For example, radon comes from naturally existing rock formations. As the streams pass by or near these formations, they pick up and carry the radon.
Heavy metals, such as lead and mercury, may naturally exist and be absorbed into the aquifer.
Aquifers also pick up contamination from man made sources. A frequently encountered example of this is gasoline or fuel oil from leaking underground tanks. All people with wells that are in the area of these tanks may have the fuel oil/gasoline contamination in their drinking water.
Factories and industry also add to drinking water contamination. Years can pass from the time such contamination begins until when it is detected. So a lot of dirty water may be consumed before anyone knows there is a problem.
Also, there are landfills scattered throughout the U.S. that may not have been properly closed. When it rains, the water can run through these landfills and transmit contaminants from within the landfill into the drinking water. This process is called “leaching.” The mix of water and contaminants is called “leachate.”
You might think that you would smell or taste something bad in your drinking water before it could hurt you. That is not the case. Many toxic substances cannot be detected by smell or taste until they reach concentrations much higher than is believed to be safe.
Which means: you must test. Test at least once a year, but the more the better. If you cannot afford to test often, you and your neighbors could possibly share the responsibility, so that each year one of you tests. If you all live nearby, with similarly constructed wells, the chances are if something is in one well, it is affecting all of your wells. This is not a perfect solution, but it is better than nothing.
A certified lab should test the samples. Not every lab is certified. Check your state regulators.
What will you test for? FHA and VA request the testing be for bacteria, lead, nitrate, nitrite, and turbidity. This is an excellent basis for routine testing. If you suspect any kind of specific contamination, the lab technician can guide you to the appropriate testing protocol.
11:37 AM - Jan. 2, 2008 - {0} -
View more entries tagged with: Water Well Testing
What are the different types of real estate auctions available in the local marketplace? Well, essentially there are three types of auctions:
ABSOLUTE AUCTION (or auction without reserve)
The property is sold to the highest bidder, regardless of the price. Since a sale is guaranteed, buyer excitement and participation are heightened. This type of auction typically generates maximum response from the market place. Many sellers, including financial institutions and government agencies have begun to use this method more and more frequently.
MINIMUM BID AUCTION
The auctioneer will accept bids at or above a published minimum price. This minimum price is always stated in the brochure and advertisements and is announced at the auction. There is reduced risk for seller as the sales price must be above a minimum acceptable level. The buyers know they will be able to buy at or above the minimum. The seller may, however, limit interest in the auction to only those buyers willing to pay the minimum bid price, so therefore it must be low enough to act as an inducement rather than a hindrance.
RESERVE AUCTION ( an auction subject to confirmation)
In this scenario, the high bid is reduced, in effect to an offer not a sale. A minimum bid is not published, and the seller reserves the right to accept or reject the highest bid within a specified time -- anywhere from immediately following the auction up to 72 hours after the auction concludes. Sellers predetermine the price at which the property will be sold and are not obligated to confirm a sale other than at a price that is entirely acceptable to them. The main disadvantage of a Reserve Auction is that prospective buyers may not invest the time and expense of due diligence when there is no certainty they will be able to buy the property even if they are the highest bidder.
What Factors Impact the Success of an Auction?
A. The seller must have realistic expectations, including a fair sales price, terms and timing.
B. The desirability of the property. This includes location, conditions, plus the value of surrounding properties.
C. Since a variety of auction methods are available, carefully choose the auction type that best suits the property and the seller's needs.
D. A well planned, aggressive marketing/advertising campaign targeted to prospective purchasers is critical to an auction's success.
E. Using a recognized real estate auction company or a REALTOR® auctioneer to ensure the auction is conducted in a professional manner and followed-up through closing.
F. Making sure that due diligence information is provided to prospective buyers AHEAD OF TIME.
G. Preparing the property for sale so it is presented to prospects in its best condition. (i.e.., title insurance, clean-up, financing, etc...)
The Two-Thirds Rule
Not all properties should be sold at auction, but certain properties and situations will benefit greatly. A dependable way to determine whether a property lends itself to auction is this: If two of the three main components of a transaction (market, the seller and the property) lean favorably toward auction, then it should be considered as a sales option.
CLICK HERE for a checklist by e-mail autoresponder to help figure out if the Two-Thirds Rule applies to the property you have in mind.
8:58 AM - Dec. 26, 2007 - {0} -
View more entries tagged with: Real Estate Auction
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