Real Estate Information

Q.  HOW DO I KNOW IF MY HOME IS UNDERINSURED?

A.  THE INSURANCE INFORMATION INSTITUTE RECOMMENDS THE FOLLOWING:

• IT'S A GOOD IDEA TO INSURE YOUR HOME FOR THE COST OF REBUILDING IT.  CHECK YOUR HOMEOWNER'S POLICY TO SEE THE MAXIMUM AMOUNT YOUR INSURANCE COMPANY WOULD PAY IF IT HAD TO BE REBUILT.
• FIND OUT WHAT IT WOULD COST TO REBUILD YOUR HOME.  YOUR INSURANCE AGENT CAN CALCULATE REBUILDING COSTS FOR YOU OR YOU CAN HIRE AN APPRAISER (CALL OR EMAIL US FOR REFERENCES).  MAKE SURE YOUR INSURANCE AGENT KNOWS ABOUT ALL IMPROVEMENTS YOU'VE MADE, SUCH AS A DECK OR LARGER KITCHEN.
• MAKE SURE THE VALUE OF YOUR POLICY IS KEEPING UP WITH INCREASES IN LOCAL BUILDING COSTS.  MANY POLICIES INCLUDE AN INFLATION GUARD; IF YOURS DOESN'T, CONSIDER PURCHASING ONE.
• FIND OUT IF YOU HAVE A "REPLACEMENT COST" POLICY FOR YOUR HOUSE.  IF YOU OWN AN OLDER HOME, YOU MAY HAVE A "MODIFIED REPLACEMENT COST" POLICY. 
• FOR THE CONTENTS OF YOUR HOME - FIND OUT WHETHER YOU HAVE "REPLACEMENT COST" OR "ACTUAL CASH VALUE" INSURANCE.
• CHECK THE LIMITS ON CERTAIN PERSONAL POSSESSIONS, SUCH AS JEWELRY.  CONSIDER BUYING AN "ENDORSEMENT" TO INSURE VALUABLES SEPARATELY.

GREAT QUESTION, AND THANKS FOR WRITING! 

Q.  How Can I Protect My Home From Natural Disasters?

A.  Most parts of the country and Canada face at least one type of natural disaster, such as severe winter weather, high winds, hurricanes, flooding, earthquakes, wildfires and hailstorms.

According to the Institute for Business & Home Safety, the first thing you need to do is understand your risk.  Is your house located near a woodland area?  Is it within 50 miles of the coast?  Is it within sight of a river or lake?  Is it located in an earthquake zone?

You also need to consider the home's history and how well it has been maintained.  What year was it built and what was the building code then?  Modern building codes can help homes stand up better to natural disasters.

In areas prone to wildfires or hurricanes, for example, your number one priority should be the roof.  You can find specific actions to take to improve your home's ability to withstand these disasters by going to a site like www.disastersafety.org.

Q.  How Important Is Landscaping In Buying Or Selling A House?

A.  Good landscaping can increase your home's resale value by 14%, according to the Associated Landscape Contractors of America.  Better curb appeal may speed up the sale by as much as six weeks.

Professionals recommend that you invest 10% of your home's value in landscaping.  More than just plantings, this includes structural features such as lighting, outdoor rooms, fences and pools.  Here are some helpful tips:

• Determine what you need.  Are you landscaping to sell your home or to enjoy the property yourself for the longer term.

• Get professional guidance.  Depending on the scope of your project and budget, consider hiring an arborist, a landscape designer or a certified landscape architect.  Ask friends for recommendations or search web sites such as the one for The American Society of Landscape Architects.

• Develop a plan.  Set your priorities - what needs to be done (have you solved that drainage problem?) versus what you'd like to do (put in an outdoor entertainment area).  If you take a piecemeal approach, the result will look disorganized and cost you more money in the long run.

Q.  What should I know about buying a foreclosed home?

A.  There are advantages and disadvantages to buying a foreclosed home.  Here are some general tips:

• See the house in person.  Don't rely on a low price and internet pictures.
• Conduct a title search.  Find out whether it has a second mortgage or a lien on it.
• Get an up-to-date inspection.  Conditions change and older inspections probably no longer apply.
• Budget for repairs and renovations.  Chances are the longer the house has been vacant, the more problems there may be.
• Study the neighborhood.  Is the house in a crime area or surrounded by other foreclosures?
• Get expert help.  Work with a real estate agent who is experienced in foreclosures.

Give us a call today with any additional questions you have about today's foreclosure market...  We would love the opportunity to provide you with our guidance and expertise!  Thanks for the question...  -Joy and Chelci