Yesterday, West Palm Beach's city commission unanimously voted to create a database that will require banks to register foreclosed properties and provide contact information for a property manager. The database was approved in an effort to hold banks responsible for maintaining the foreclosed properties in a manner in keeping with local ordinances. The property manager must live within 20 miles of the property and will be required to post a sign on the property that gives their contact information so that residents and code enforcers can contact them if there is a problem with the property. The properties will be inspected by code enforcers every two weeks.
The motion was passed because, according to Development Services Director Doug Wise, the city spends thousands of dollars per day cleaning up the unkempt properties. In order to pass along this cost to the property owners or the banks, the ordinance will be tied in with the city's Chronic Nuisance Abatement Code, which allows a magistrate to order code enforcement and police services billed to a resident's tax bill.
This is an excellent decision by the city. Neglected properties are an eyesore that detract from local property values. They are also a problem because snakes and other animals can take up residence in long grass, posing a threat to neighbors and pets. Finally, if the banks are choosing to hold onto these properties for an unnecessarily long time, they must realize they are going to be held to the same laws as all of the other homeowners.
Wednesday, February 22, 2012
Tuesday, February 21, 2012
Questions to Ask About Homeowners Insurance
Below are some important questions to ask when shopping for homeowners insurance.
1. How much would it cost to rebuild your home in its existing location in the event of a total loss? You want your policy to provide for total reconstruction. Normally policies cover damage from fires, hurricanes, hail, lightning and any other disaster listed in the policy. Generally, coverage for earthquakes or floods must be purchased separately.
2. Should you buy separate earthquake and flood insurance? Flood coverage isn't as widely available as earthquake insurance, which you can usually get as a supplemental policy from the same company that is issuing your homeowners policy. Should your company not offer flood insurance, you can get it from the federal government's National Flood Insurance Program.
3. How much is your personal property worth in the event of a total loss? Many policies cover personal property at a set percentage of the total amount of insurance on the home, usually around 50-70 percent. It should cover personal property losses that occur either from theft or any of the covered natural disasters. As a homeowner, you should have a good idea of the value and inventory of the contents in your home.
4. How much liability protection do you need? Liability covers owners against lawsuits from property damage or bodily injury (including animal bites) caused to other people anywhere. So if your dog bites someone while you are walking her and you get sued, your homeowners policy will cover that. The costs of legal defense and any damages awarded to injured parties is covered by the liability aspect of the policy up to the set amount in the policy. Liability coverage usually starts at $100,000, but the more assets you have, the more insurance you should get.
5. How much additional living expense coverage do you need? This coverage is needed when your home becomes uninhabitable because it covers the cost of alternative housing, meals and other living expenses. Many policies offer this coverage at 20 percent of the amount of coverage on the home. Also find out if there is a time limit on how long you can take advantage of this coverage.
6. Do you qualify for any discounts? Discounts can be given for lots of reasons, including your age (55+), having sprinkler and alarm systems, or updated electrical and plumbing systems. Just ask!
1. How much would it cost to rebuild your home in its existing location in the event of a total loss? You want your policy to provide for total reconstruction. Normally policies cover damage from fires, hurricanes, hail, lightning and any other disaster listed in the policy. Generally, coverage for earthquakes or floods must be purchased separately.
2. Should you buy separate earthquake and flood insurance? Flood coverage isn't as widely available as earthquake insurance, which you can usually get as a supplemental policy from the same company that is issuing your homeowners policy. Should your company not offer flood insurance, you can get it from the federal government's National Flood Insurance Program.
3. How much is your personal property worth in the event of a total loss? Many policies cover personal property at a set percentage of the total amount of insurance on the home, usually around 50-70 percent. It should cover personal property losses that occur either from theft or any of the covered natural disasters. As a homeowner, you should have a good idea of the value and inventory of the contents in your home.
4. How much liability protection do you need? Liability covers owners against lawsuits from property damage or bodily injury (including animal bites) caused to other people anywhere. So if your dog bites someone while you are walking her and you get sued, your homeowners policy will cover that. The costs of legal defense and any damages awarded to injured parties is covered by the liability aspect of the policy up to the set amount in the policy. Liability coverage usually starts at $100,000, but the more assets you have, the more insurance you should get.
5. How much additional living expense coverage do you need? This coverage is needed when your home becomes uninhabitable because it covers the cost of alternative housing, meals and other living expenses. Many policies offer this coverage at 20 percent of the amount of coverage on the home. Also find out if there is a time limit on how long you can take advantage of this coverage.
6. Do you qualify for any discounts? Discounts can be given for lots of reasons, including your age (55+), having sprinkler and alarm systems, or updated electrical and plumbing systems. Just ask!
Monday, February 13, 2012
Average Home Size Decreases
According to the Census Bureau, the average size of a newly constructed single-family home was 2,392 in 2010. That is a 5.1 percent decline from 2007, when the average was 2,521. Although the Census Bureau didn't share from where the extra square footage was being cut, formal living rooms and formal dining rooms are becoming less popular.
Government Settlement with Banks Over Illegal Actions
As I have previously written, the government has reached a settlement with Ally Financial, Bank of American, Citibank, JPMorgan Chase, and Wells Fargo over the banks' illegal foreclosure practices. This settlement is a great... for the banks. Part of the deal includes $17 billion in principal reductions, which might sound like a lot until you consider that there are approximately 11 million borrowers with around $700 billion in negative equity, according to Paul Diggle, a property economist at Capital Economics in London. That works out to a 2.4 percent reduction on the negative equity, which works out to a joke in my book. And the banks have three years to distribute this money.
Homeowners who were improperly foreclosed upon will share $1.5 billion, which comes out to roughly $2,000 per improper foreclosure. Big whoop. If an improper foreclosure is only going to cost a bank $2,000, they should just keep doing them. I am willing to bet a $2,000 fine is cheaper than the cost of properly foreclosing on a home.
According to the Palm Beach Post, Florida homeowner's will receive $7.6 billion in loan modifications (only California will receive more than Florida). Approximately $170 million will be paid to Florida homeowners who were the victims of illegal foreclosure practices between January 1, 2008 through December 1, 2011. There will be $309 million in refinanced loans and the state will receive a direct payment of $350 million (and I am very curious to see what the state does with that money).
Interested in reading more about this? Check out this article from the New York Times.
http://www.nytimes.com/2012/02/12/business/mortgage-settlement-leaves-much-to-be-desired-fair-game.html?ref=realestate
Homeowners who were improperly foreclosed upon will share $1.5 billion, which comes out to roughly $2,000 per improper foreclosure. Big whoop. If an improper foreclosure is only going to cost a bank $2,000, they should just keep doing them. I am willing to bet a $2,000 fine is cheaper than the cost of properly foreclosing on a home.
According to the Palm Beach Post, Florida homeowner's will receive $7.6 billion in loan modifications (only California will receive more than Florida). Approximately $170 million will be paid to Florida homeowners who were the victims of illegal foreclosure practices between January 1, 2008 through December 1, 2011. There will be $309 million in refinanced loans and the state will receive a direct payment of $350 million (and I am very curious to see what the state does with that money).
Interested in reading more about this? Check out this article from the New York Times.
http://www.nytimes.com/2012/02/12/business/mortgage-settlement-leaves-much-to-be-desired-fair-game.html?ref=realestate
Tuesday, February 7, 2012
Getting Your House Ready to List
If you are getting ready to place your home up for sale, the first thing you should do is call me so that I can give you the best marketing plan for getting your home sold! But there are other things you need to do as well in order to get your home in show-ready condition.
1. Remove the clutter! We all can get a little bit lazy with letting junk accumulate, but you need to remove yours before potential buyers look at your home. Think about putting as much effort into your home's presentation as you would for yourself on a first date. To give yourself a good idea of what needs to be done, walk into your home from the front door and pretend you are a visitor. What looks like it needs to be neatened up?
2. Regarding your style, you need to be honest about how widely appealing it is. I was recently in a home that was packed with ornate furniture and accessories; I could barely see the house because I was so distracted by what was in it. If you have a particularly ornate, busy or otherwise unusual design perspective, try to tone it down. Your interior design should complement the home's features, not detract or distract from them.
3. Does your home smell? If so, have it professionally cleaned, buy some room fresheners, open the windows and get some fresh flowers. I have been in a number of homes recently that smelled of mold, mildew, urine or just of not having enough fresh air. In particular if a member of your household or a pet is incontinent, that smell needs to be dealt with before the home is listed. It is an absolute turnoff to buyers to tour a home that smells foul.
4. Personal photographs are a distraction. Even if you are the supermodel, put the personal photos away. Photos are a bad idea either because prospective buyers will be curious about the current owners and will stop looking at the room in order to look ay your photos or because the buyers won't be able to envision themselves in the home with reminders of you everywhere. If you have pencil marks or scuff marks on your walls from where photos were hung, you can remove them with a Mr. Clean Magic Eraser. To fill holes, apply spackling paste and wipe it down with a wet sponge when you are done so that it dries smoothly (you'll avoid having to sand later).
5. Do not stay home during showings or an open house. Buyers feel really uncomfortable looking around a home when the owner is there. Trust that your real estate agent will make sure that nothing is broken or stolen.
6. This is simply my opinion, but I think leaving out candies or cookies is a welcoming touch and is another reference point for buyers to remember your home if they are seeing many homes in one day. It is easier for a buyer to say, "Remember the house where we had the cookies? I love that house," rather than "Remember the house with the white kitchen?".
7. Finally, make your home available for showings. Some sellers require 24 hours notice, but I think if you have something for sale, you should be willing to show it whenever an interested party wants to see it. Don't make it hard for buyers to see your home, that is a turnoff. And if you have a dog, either remove her from the property or put her in a crate. Being able to show it on short notice also requires that you keep it in show-ready condition at all times.
1. Remove the clutter! We all can get a little bit lazy with letting junk accumulate, but you need to remove yours before potential buyers look at your home. Think about putting as much effort into your home's presentation as you would for yourself on a first date. To give yourself a good idea of what needs to be done, walk into your home from the front door and pretend you are a visitor. What looks like it needs to be neatened up?
2. Regarding your style, you need to be honest about how widely appealing it is. I was recently in a home that was packed with ornate furniture and accessories; I could barely see the house because I was so distracted by what was in it. If you have a particularly ornate, busy or otherwise unusual design perspective, try to tone it down. Your interior design should complement the home's features, not detract or distract from them.
3. Does your home smell? If so, have it professionally cleaned, buy some room fresheners, open the windows and get some fresh flowers. I have been in a number of homes recently that smelled of mold, mildew, urine or just of not having enough fresh air. In particular if a member of your household or a pet is incontinent, that smell needs to be dealt with before the home is listed. It is an absolute turnoff to buyers to tour a home that smells foul.
4. Personal photographs are a distraction. Even if you are the supermodel, put the personal photos away. Photos are a bad idea either because prospective buyers will be curious about the current owners and will stop looking at the room in order to look ay your photos or because the buyers won't be able to envision themselves in the home with reminders of you everywhere. If you have pencil marks or scuff marks on your walls from where photos were hung, you can remove them with a Mr. Clean Magic Eraser. To fill holes, apply spackling paste and wipe it down with a wet sponge when you are done so that it dries smoothly (you'll avoid having to sand later).
5. Do not stay home during showings or an open house. Buyers feel really uncomfortable looking around a home when the owner is there. Trust that your real estate agent will make sure that nothing is broken or stolen.
6. This is simply my opinion, but I think leaving out candies or cookies is a welcoming touch and is another reference point for buyers to remember your home if they are seeing many homes in one day. It is easier for a buyer to say, "Remember the house where we had the cookies? I love that house," rather than "Remember the house with the white kitchen?".
7. Finally, make your home available for showings. Some sellers require 24 hours notice, but I think if you have something for sale, you should be willing to show it whenever an interested party wants to see it. Don't make it hard for buyers to see your home, that is a turnoff. And if you have a dog, either remove her from the property or put her in a crate. Being able to show it on short notice also requires that you keep it in show-ready condition at all times.
Monday, February 6, 2012
30-Year Fixed Mortgage Rate at Record Low
The average 30-year fixed mortgage rate fell to 3.87 percent last week, setting a new record low (the previous record of 3.88 percent that was set two weeks prior). The average 15-year fixed mortgage rate also set a new record at 3.14 percent.
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