DEAN GRAZIOSI: DEAN GRAZIOSI REAL ESTATE

When you buy a home, you will incur many different expenses. Among them will be insurance. Homeowner’s insurance exists because of the size of your investment and the money you could lose if it wasn’t insured. It’s all about protecting the value of your home, which is important since it’s one of the largest investments you’ll probably ever make.

Homeowner’s insurance is a contract between you the home owner and an insurance company. As long as you pay your premiums and meet all other policy requirements, the company will reimburse you for any losses that occur from natural disasters or other damages.

Upon acquiring homeowner’s insurance, it will be essential to understand the coverage you are receiving and what that means for you. A basic home owner’s insurance policy will protect you against property damage resulting from natural disasters such as: fire, wind, lightening, or hail storms. Should you be forced to leave your home because of such damage, your food and hotel costs will be covered until the necessary repairs are made.

It is important to note that a typical policy does not cover damage caused by an earthquake or flood. Because these natural disasters are usually typical to certain areas or regions, policies for each may be purchased separately. If you live in a flood zone or near a fault line, your mortgage company may require you to carry these types of coverage.

A basic policy will also provide protection should you experience loss from theft or vandalism. Here, as with natural disasters, you will be reimbursed for any damaged or missing personal items.

Your basic policy will also provide for something you may not always associate with home protection, and that is liability. This coverage is specifically designed for any lawsuits that may brought against you, the property owner, by persons who were injured while on your property. This typically includes the cost of your legal defense up to the limit the policy allows. Most policies also include a provision covering basic medical expenses for all parties.

Most mortgage companies require home buyers to purchase homeowner’s insurance. Since the investment is almost as big for the mortgage company as it is for you, both parties need to be protected. The mortgage company has a personal interest in your protection. Should you ever be unable to keep up with your house payments, the lender will be able to reclaim ownership and subsequently resell the property relatively easily.

Whether you will owe money on your home for many years or will buy it outright, homeowner’s insurance will provide protection you’ll need in the face of the unexpected. This will ensure your home retains its value for many years to come and will prove very beneficial should you ever decide to sell.

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When you get ready to purchase a new home, chances are you already know the asking price. You can then come up with an offer which you will present to the seller or the seller’s agent. If you are also utilizing the services of your own agent, the two of you will talk it over and your agent will present your offer. So how do you determine your offer?

Determining what you will offer to purchase the home for is a three step process. You will first look at the prices of recent sales on properties similar to the one you would like to purchase. This will help you come up with a price range. Your agent will be able to supply you with this information. If you aren’t using an agent, you can research some of this information via the Internet. You could also call real estate companies in your area to see if you can obtain these prices.

Next, you will need to analyze various pieces of data to determine where in that particular range to make your offer. This data can include: the condition of the home, improvements recently made to the property as a whole, the current market conditions, and the specific circumstances of the seller. This is what will help you settle on a price you feel is fair.

The third step is where you, the buyer, get to negotiate. Here is where you will adjust your price and figure out exactly what you want to put into the offer.

Typically, an offer made on a single family home can vary from the asking price be several thousands. Other property types, however, such as condos and duplexes may not see nearly as much variation. While you can always offer a price significantly lower than what is being asked, you may actually need to go up on your offer to make the purchase.

Typically, you will make an offer, then wait to find out whether or not it is accepted. If the seller does not accept it, you may be given the option of making another offer, provided someone else hasn’t already beaten you to it. Again, if you choose to enlist the help of a real estate agent, he or she will be able to provide assistance and give advice on what is actually considered a fair offer.

Your agent will also be able to provide you a report on sales of other properties in the neighborhood where your prospective home is located. This will give you information concerning each property, how many times it has been sold within a certain timeframe, and the selling price for each instance of sale. This will show you the selling and buying trends in that particular area and can help you when making your offer decision.

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The neighborhood is one of the most important aspects of buying a home. You’ve probably thought of this factor for in terms of safety, but have you considered the impact of the neighborhood on the actual resale value of your home?

When you are buying a home, location can be everything. The term “local neighborhood” will often be used. This encompasses not only the area where your new home is actually located, but also surrounding stores and other businesses. The neighborhood you choose will depend on your specific preferences. For example, if you do not want to live near a business district, you wouldn’t look at homes in or near shops, restaurants, or dry cleaners, ETC. If, on the other hand, you wish to be conveniently located near such businesses so you can access them easily, purchasing property in a residential area nearby would be a good idea.

Whether your new home is located in a secluded area with a lot of land or in a busier yet quiet neighborhood, it will have resale value. Those who come to look at your property when it comes time to sell will have an idea of the type of neighborhood in which they want to live. Like you, they will know their own particulars and research them accordingly.

Just as there are many features that can help resell a home, the environment of its location can influence future sales. If your home doesn’t have a pool, one in the neighborhood could be an important selling point to families who have children. Likewise, parks located in the immediate area can also help resell a home.

Neighborhoods with well-manicured lawns and houses that are kept up will speak volumes to potential home buyers. A gated community or one that requires its residents to make regular payments may also be of interest to prospects.

The presence of nearby public transportation may be important to some residents, especially those who are unable to drive or do not own a car. Here, quick access is necessary. Not all neighborhoods allow public bus systems to run regular routes, so finding this feature can sometimes be difficult.

The state of the neighborhood is also an important factor to consider when buying a home. If the nearby shopping center you appreciate because of its convenience is in decline, chances are you may have trouble selling your home in the future. The same goes for any other businesses in the area. Another factor to consider is the number of businesses who are closing up shop. Several abandoned buildings may indicate trouble on the horizon. This is especially true if they have been abandoned for a significantly long period of time.

Before buying a home, choose your neighborhood carefully. This will serve you well both for the duration of your stay, and when you decide to sell. A good neighborhood can be just as important as the home itself and can definitely influence the future of your investment.

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If you have recently decided to sell your home, you are faced with not only preparing it for winter but also preparing it to be viewed by potential buyers during the winter. Selling in the winter is much different than selling in the warmer months. There are some important factors to consider when selling your home in the winter.

The first thing you need to do when listing your home in the winter is make it accessible for potential buyers and their agents. This includes removing any snow from around the property and most importantly on the walkways. If you have already moved out of your home, you should take the proper steps necessary to ensure that your walkways are clear and free of any ice. Leaving your walkways covered with snow sets an unwelcome town and tends to make the property look unappealing to potential buyers. Buyers who pull up to an unshoveled home may see it as sad and abandoned and they may also think that because the property is not being cared for they can offer a lower price. Not clearing snow from sidewalks and driveways also makes them appear to be smaller than they actually are. Taking the time to properly clear all of the walkways and driveways will shoe buyers the full extent of the parking space.

The process of clearing snow may seem tedious and unnecessary to many sellers, but doing so will offer buyers the chance to see all of the extra details that may miss due to the snow. If you have installed an intricate paver design in the driveway take the time to clear it off completely. Do you have an extended deck or patio in the back, take the time to clear all of that as well. Staging the exterior of your home is just as important in the winter as it is any other time of the year. Take the time to show off any special landscaping or extras that can be found on your property. Doing this can make the difference between selling your home and having it sit the entire winter. If your property includes a pool, but it is covered for the winter, be sure to provide your realtor with pictures of it in warmer months. This will help show prospective buyers what they are buying.

Do not be discouraged if you decide to list your home in the winter, plenty of buyers will take the time to view properties in the winter if it something they are interested in. In most cases buyers in the winter tend to be more motivated than those looking during warmer months. Instead of seeing snow as a problem, you can use it to help increase the appeal of your home. You should also make the inside of your home as bright and appealing as possible, this will help detract from the dreary weather that may be taking place outside.

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A title defect is sometimes called a “cloud on the title.” This is a very colorful term, but offers a good description of what a title defect really is. Basically it is something that casts a shadow or doubt on a title, so that it may be disputed at some time in the future. There are many different types of circumstances that would cause a cloud on the title.

Misspellings

It may seem trivial, but legal documents must be written up with correct spellings. This is a requirement to make sure everyone knows the exact details of the transaction. If the address is misspelled, it might be obvious to you what is meant. The truth is that no matter how sure you are about what the title is referring to, unless it is spelled correctly, others may find room for doubt.

Failures to Record

In several different instances, something concerning the title may not have been filed or recorded properly. The deed itself may not have been recorded at some point along its history. If a mortgage or other lien has been paid off on the property but not recorded, there could be cause for alarm. An easement may have been granted but not properly recorded. This, too, could put the title in murky waters.

Unpaid Taxes

Governments do not always notice immediately if taxes are unpaid. Sometimes title can pass from person to person without anyone realizing that the taxes are behind. It is not supposed to happen, but it is a possibility. If it turns out that there is a year sometime when the taxes were not paid, it could be a problem for you if you had bought the property.

Pending Litigation

If the previous owner is involved in a lawsuit that may include forfeiting the property, the title is not clear at that point. The lawsuit must be concluded in such a way that the property is free to be sold, or the title will not be in the hands of the original seller.

What to Do About Title Defects

The first thing you should always do is to get title insurance. The title company will do a search on the title. If the title company Okays the title, it means that they have not found any clouds on the title in their search. It does not mean that there is absolutely no risk of defect. It does, however, mean that the title insurance will cover your losses if there is a defect.

Finally, if you are negotiating to buy a property and discover a cloud on the title, you have to decide what to do before continuing with the deal. In most cases, it is best to withdraw and look for another investment somewhere else. Having a clear title is essential for your security and peace of mind, as well as for your wallet.

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A few short years ago experts were predicting that by 2012 the housing market and foreclosure rates would return to normal. Now that 2012 is almost here, it seems that the predictions were not as accurate as everyone hoped. The down economy is certainly a factor, but this time, there is another culprit in the situation.

The primary reason 2012 is likely to be heavy on foreclosures is due to recent irregularities in the mortgage industry. Specifically, the paperwork was not being handled properly. Low-level employees were rubber stamping documents at an alarming rate.

It would have been impossible for the workers to review the paperwork and get the correct information and signatures in the flash of time they spent on each document. Perhaps they were under pressure to get a certain amount of work done. Maybe they were just poorly trained. For whatever reason, the foreclosure documents were signed thoughtlessly and mistakes were made. Eventually, legal action was taken to halt these foreclosures.

Now the mortgage companies have begun to revamp their processes and clear up these bad practices. They are now meeting with government approval and are getting back in the business of handing out foreclosure notices. By 2012, the big players should be in full swing, working on reclaiming properties from non-paying owners.

The bottleneck could have been avoided with proper training and supervision of all employees at these mortgage lenders companies. Yet, the number of foreclosures overall may not be much different. Instead of coming spaced out evenly over the months, there was a time when the process slowed down, and now there will be a time when the mortgage companies make up for lost time with their foreclosures.

The good news for homeowners is that it gives them a longer period of time to come up with the money to catch up their mortgages. If they have a chance of saving their home at all, they are more likely to do it with this extra time they have been given.

The good news for people who want to buy a home is that there will likely be a glut of REO homes on the market after awhile. Because of this, there will be inexpensive houses for them to choose.

Real estate investors will also see benefits, as they snap up the foreclosed properties, rehab them, and sell them again at a profit. They may have opportunities to buy homes to rent if they prefer. Investors can make the most of this bad situation if they have enough contacts and are good at reselling or renting homes.

It is a good time to raise capital to be ready for the 2012 housing situation. It is the best way for homeowners to keep their homes, potential owners to be ready to buy, and investors to be ready to make the best deals. There is no need to fear what will happen in 2012. Instead, look it as an opportunity, and get your ducks in a row.

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