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Posts Tagged ‘home prices’

Is It Time To Review Your Home Insurance Needs?

November 24th, 2009 by Matthew C. Keegan | 1 Comment | Filed in Consumer Tips

7 Tips For Every Homeowner

Homeowners insurance is certainly easy neglect. No, I don’t mean neglecting paying actual premiums, rather examining your policy on a regular basis to see if it meets your current needs.

A lot can change since you first bought your home – its value may have increased substantially (or in some markets dropped significantly), you may have made some changes to your home (added a room, for example), or your insurance needs may no longer be the same.

Does your current homeowners insurance offer the protection you need in the event of a total loss?

Does your current homeowners insurance offer the protection you need in the event of a total loss?

In any case, before you renew your current policy consider doing the following first:

1. Price Quotes – You will only know if you’re paying too much for your homeowners insurance if you call other providers for a price quote. Obtain estimates based on what coverage you need going forward; compare quotes and ask friends for their recommendations.

2. Same Company – If you have your auto insurance with one insurer and your homeowners insurance with a separate company, combining both under one provider could save you some money. Inquire with the broker if they offer a discount for multiple policies.

3. Regular Updates – If you haven’t had your policy updated in three, four or five years or more then you may need to have it updated to reflect your current needs. Maybe you didn’t update your house, but you did buy a grand piano, inherit your grandmother’s antique furniture or brought in some other items of value. Those items need to be included in your insurance coverage.

4. Replacement Value – Your insurance may only cover the cost of the items in your home based on their depreciated value. Instead, change your insurance to offer replacement value coverage for your possessions.

5. Take Inventory – Take pictures or film your home and write down what you own and its value, keeping that information in a safe place in the event of a total loss. That information can help you should you lose everything and need to show proof of what you own to your insurance adjuster.

6. Change Deductible – If you have a $500 deductible, you may be paying an exorbitant amount for your insurance coverage. Instead, consider raising your deductible to $1000 or even $2500, absorbing smaller losses yourself. Too many claims, by the way, can result in your coverage being dropped.

7. Umbrella Policy – Lots of homeowners purchase an umbrella policy to help them in the event someone is seriously injured on their property. Usually not terribly expensive and you’ll get the liability coverage you need just in case.

New Year

2010 is right around the corner; don’t let another new year go by without reviewing all of your insurance needs – life, health, dental, automotive, and home.

Adv. – Are you shopping for a new home? Visit SayHomeBuy.com to find everything you need including house listings, foreclosures, affordability tips, financing information and so much more.


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7 Tips For Pricing Your Home In Today’s Economy

October 23rd, 2009 by Matthew C. Keegan | 3 Comments | Filed in Home Selling

Let’s face it: if you are a homeowner the current real estate market is a bummer, especially if you are planning to sell your home. Though the economy is slowly on the mend, unemployment continues to rise, consumer confidence remains low while foreclosures are still a big problem. Chances are you’ll get less money for your house than what you want, that is if you’re able to find a qualified buyer in the first place.

For Sale By OwnerAs tough as things may be, you can still sell your house and perhaps keep your shirt in the process. If you’re desperate you’ll lose big, but if you plan smartly you just may be able to sell your home and move on with your life.

Please read on for seven tips on how to market your house today:

1. Going Local – Before you market your home, know your market. Real estate agents love to emphasize location and for good reason too – where you live and what market you’re in can make all of the difference in the world. Home prices have actually climbed in some local markets, particularly in certain “in demand” neighborhoods. Study real estate comparables (comps) for your street and neighborhood to spot trends. It could be that buyers love where you live and are willing to pay the going rate to live there.

2. Your Inventory – Every seller has one house to market, therefore you need to compare what you have with what is out there. If your house is newer, recently updated or has some other features to help it stand out, then you already have an edge. Conversely, if your home is older and situated among newer homes, hasn’t been updated in awhile or located on a busy road, near a train depot or next to an industrial park, then you must consider those issues too when pricing your home.

3. Get Appraised – You’ll want to seek professional assistance to determine the market value of your home. And, in today’s market that might not be as easy as it sounds. If your neighborhood has several foreclosures available for sale, those homes must be taken into consideration too. A professional appraiser will look at recent sales prices to determine your home’s current value while a real estate pro will have a good grasp on pricing trends. If your market hasn’t hit bottom yet, expect that your listing price will be lower that the appraisal.

4. Follow Trends – Speaking of trends, where exactly is your market headed? If prices are still dropping, you may want to discount your home’s price from the start. A competitively priced house may seem like a “steal” to buyers, but if housing prices are still falling you’re simply reflecting tomorrow’s value today. “Value pricing” can attract lookers who may include your buyer.

5. R/E Commission – Will you be selling your house yourself or will you be using the services of a realtor? Real estate commissions have been averaging about six percent for years, but in this economy, a number of agents have adjusted their commission structure in order to compete effectively. Even a 1% drop on a $200,000 home can be significant – saving you $2000 in fees at closing. Consider using that money as leverage in negotiating a sale. And if you plan on selling your home yourself, why not reduce your price to partially reflect your commission savings?

6. Know Buyers – The difference between “no buyers” and “know buyers” is huge. Unless you know is who buying today may result in you having no buyers. Allow me to illustrate – if people in a buying mood today are first time homeowners seeking to use the $8000 federal tax credit coming to them, then they’re probably young and not so well off. This means that if you have a starter home your house should do well. But it also means if your home is pricey and huge, you may find the number of bidders to be few and far between. A real estate professional should know who is buying and who isn’t.

7. Good Timing – Unless you don’t have to move immediately, perhaps you should delay the sale of your home? Of course, if a job awaits in a distant city or your health has declined to where you can no longer maintain your home, you may not have much choice. But if you do have a choice, would a six month or longer delay be manageable? Some markets have hit bottom and are already on the rebound while other markets still have some correcting to do before prices stabilize.

Become A Visionary

With these seven tips in mind, you should be able to make some wise choices based on local factors and your personal needs. Carefully weigh your options before moving forward, looking at the opportunities at hand as well as those that are coming down the road.

Photo Credit: Aaron Murphy

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One In Four Sellers Reduce Their Asking Price

September 17th, 2009 by Matthew C. Keegan | 3 Comments | Filed in Home Selling, News
Just like putting a puzzle together, getting a decent price for your home means understanding exactly what buyers in your market expect. Good luck with that!

Just like putting a puzzle together, getting a decent price for your home means understanding exactly what buyers in your market expect. Good luck with that!

There was a time when a home was placed on the market and a bidding war broke out. Owners quickly discovered that buyers were willing to pay five, ten even twenty percent or more over their asking price, bringing quick and easy profits to them. Those days have passed by and instead we’re seeing just about the opposite taking place – homes languishing on the market with owners dropping their asking prices at least once.

Buyers Win, Sellers Lose

For buyers, any drop in home prices is advantageous to them, but for owners that sort of move can prove financially disastrous. Nearly every home in America has seen its value drop over the past few years, with prices plummeting by as much as 60% even more in some markets. Add the “insult” of a further price cut once a home has been listed and what you have is the makings of a personal financial collapse for some sellers.

Trulia, Inc., the real estate search site, noted that 26% of the homes on the market as of September 1, 2009, have gone through at least one price cut. That rate has increased each of the past four months, suggesting that homeowners are still having a difficult time finding buyers in this market. With the federal government’s $8000 tax credit for new homeowners set to expire on November 30th, homeowners may be forced to drop their prices again in a bid to compete with other sellers.

Ten Percent Discount

According to Trulia, the average discount off of the initial listed price is ten percent. That means a home listed for $329,900 is now selling for about $300,000. As most people will tell you, that newly updated listing price can be further eroded when a prospective buyer makes his offer, reducing the final amount by thousands of dollars.

“The steady rise in price reductions is a signal that sellers are still trying to adjust to the ever changing market conditions,” said Pete Flint, Trulia co-founder and CEO. “We expect the $8,000 federal tax incentive to extend the peak home purchasing season beyond the summer months, continuing to drive competition amongst sellers and ultimately leading to more price reductions, giving consumers a great opportunity to find the home of their dreams.”

Prepare To Deal

What that means is that home sellers need to be prepared for the worst as bargain hunters dictate the market, thanks in part to a generous government incentive. All of the real estate comps you have in your possession may not do you much good especially if you live in a market where price cutting is rampant.

For homeowners who must sell, coming up with a top notch marketable price could be the best approach to moving their homes, but expect to face strong negotiation from mortgage approved, market savvy buyers.

Source: Trulia, Inc.

See Also — How To Sell Your Home In A Lousy Market

Adv. – Are you considering buying a home this year? If so, you may be eligible for an $8000 federal tax credit if you are a first time home buyer. Make you move now while prices are low and before mortgage rates start to climb. Please visit PickMyMortgage.com to learn more about the lending process and to review our free, handy financing tools.


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Zillow Reports US Housing Values Dropped By $2 Trillion In 2008

December 16th, 2008 by Matthew C. Keegan | 2 Comments | Filed in Home Buying, Home Financing, Home Selling, Home Tips, News

Try to wrap your mind around this thought: America’s housing market was hammered in 2008 to the point where when all is said and done on January 1, 2009, the losses should mean that more than two home money valuetrillion dollars in housing value disappeared for the year. Due chiefly to declining home values nationally, which was reflected in an 8.4% loss for the first three quarters of the year, homeowners are now holding onto property that could be worth significantly less than it was a year earlier.

Not all markets are performing poorly, but the five biggest loss leaders are each located in California. According to an analysis of recent Zillow Real Estate Market Reports, Stockton, CA had the biggest single year over year drop of any market in the US, with home values dropping by 32.3% during that period. Also experiencing huge losses were Merced, Modesto, Salinas, and Vallejo-Fairfield, tallying losses average 30% for the year.

In the midst of the bad news there are a few markets which have actually seen a slight rise for 2008. These markets are State College PA , Anderson in South Carolina, and three North Carolina metropolitan areas including Burlington, Winston-Salem, and Jacksonville. Indeed, Jacksonville has led the way for the year, reflecting an average home increase of 4.9%.

“This year marked the acceleration of the market correction, and is likely to end with the eighth consecutive quarter of declines in home values,” said Dr. Stan Humphries, Zillow’s vice president of data and analytics. “In general, homeowners in most areas we cover are struggling with foreclosures pouring into the market, large amounts of negative equity and dropping home values. On the positive side, in the third quarter, some markets – particularly those hit hardest in the downturn – showed smaller year-over-year declines than in the prior quarter. Our optimism here, though, must be tempered by the knowledge that the larger economic problems that emerged in the fourth quarter will likely further challenge the real estate market.”

Zillow’s survey covers 163 metropolitan statistical areas (MSAs) across the USA. Most chilling is Zillow’s calculation that as many as 11.7 million American households owe more on their mortgages than their homes are worth. One in seven of all homeowners (14.3 percent) were “underwater” by the end of the third quarter with that number expected to increase significantly when fourth quarter figures are tallied early next year.

Source: Zillow.com

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