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Insurance – Don’t Leave Home Without It.

May 27th, 2010

Home Insurance We All Need It.

Insurance is an aspect of life that we never really like to      discuss.  We certainly don’t like to discuss the reasons for  it.  No one needs insurance on a sunny day, or when  people are in good health.  We all can visualize scenarios  where we do need it – rarely are those pleasant images or conversations to have.  Recently I had a uncomfortable conversation with my parents about their final wishes and insurances.  It was a stomach turning and awkward conversation to say the least.

However, as bothersome as it is a topic of discussion, having insurance is part of living a responsible life and it is part the process of buying a house. Having adequate minimum coverage is required as part of any standard mortgage program whether it is a conventional loan through the FHA, USDA or otherwise.  Insurance is a required component of the transaction.  It is there to protect you, your family and the lending entities’ investment.  During the process of buying your first home, you will unfortunately learn that no two home sites are equal and so depending on where you live, your homeowner insurance rates could be significantly different.  Furthermore, most of the data that determines your rates are based on factors out of your control – such as weather conditions.  These factors  greatly affect the premiums you pay. Therefore, no matter where you live whether it is Asheville, North Carolina, or anywhere else, it should be an imperative to obtain the best homeowner insurance that will meet  your needs.  You should always seek competitive quotes from multiple insurance companies, which will help you verify that you’re receiving the best coverage at the best price.

Regional homeowner insurance rates

I think it is interesting that rates change based on what zip and area code you choose to reside in.  According to the National Association of Insurance Commissioners (NAIC), the Gulf Coast states pay the most for their homeowner insurance. Throughout the country, the national average was $804 for annual homeowner insurance premiums. Where you live, environmental factors and other issues such as property value can affect how much you will be expected to pay each year in homeowner insurance premiums.

It is part of our commitment at Asheville 4 Seasons Blog to provide you with interesting if not conversational information with regard to Home Ownership.  We are hoping that the below falls into that category… I mean it is about insurance.  However that being said, below is a list of  how our area and yours compare within the United States:

West

The Western portion of the United States has an extremely varied range of insurance premiums. California has the highest insurance rates in the area by far – the seventh highest in the nation, in fact – but this is largely due to environmental issues like earthquakes, floods and fires, as well as cost of living.

  • Alaska: Ranks 15th at $850
  • Arizona: Ranks 38th at $640
  • California: Ranks 7th at $937
  • Colorado: Ranks 16th at $813
  • Hawaii: Ranks 20th at $776
  • Idaho: Ranks 49th at $477
  • Montana: Ranks 32nd at $666
  • Nevada: ranks 29th at $693
  • New Mexico: 39th at $638
  • North Dakota: Ranks 21st at $742
  • Oregon: Ranks 46th at $502
  • South Dakota: Ranks 41st at $628
  • Utah: Ranks 47th at $494
  • Washington: Ranks 42nd at $603
  • Wyoming: Ranks 36th at $648

Midwest

Depending on where you live in the Midwest, your insurance premiums could be above the national average. According to the NAIC figures, those states that are particularly at risk for tornadoes have slightly higher insurance premiums. But the relatively affordable cost of living in this area of the country can also assist in keeping premiums lower.

  • Illinois: Ranks 30th at $674
  • Indiana: Ranks 39th 638
  • Iowa: Ranks 43rd at $596
  • Kansas: Ranks 13th at $866
  • Michigan: Ranks 24th at $715
  • Minnesota: Ranks 18th at $788
  • Missouri: Ranks 25th at $707
  • Nebraska: Ranks 19th at $783
  • Ohio: Ranks 45th at $530
  • Oklahoma: Ranks 4th at $1,018
  • Wisconsin: Ranks 48th at $490

East

The East coast has a very diverse sampling of homeowner insurance premium ranges, likely because the area features extremely costly metropolitan areas as well as coastal areas that are susceptible to hurricanes.

  • Connecticut: Ranks 11th at $878
  • Delaware: Ranks 45th at $530
  • Maine: Ranks 44th at $573
  • Massachusetts: Ranks 8th at $925
  • New Hampshire: Ranks 31st at $669
  • New Jersey: Ranks 22nd at $726
  • New York: Ranks 12th at $869
  • Pennsylvania: Ranks 37th at $643
  • Rhode Island: Ranks 9th at $919
  • Vermont: Ranks 29th at $677
  • West Virginia: Ranks 34th at $650

South

The South is likely the most expensive place to insure a home in the United States, and these figures are largely due to the costs associated with Hurricane Katrina and similar natural disasters. Residents in these states, particularly, must be vigilant in obtaining multiple homeowner insurance rate quotes.

  • Alabama: Ranks 10th at $894
  • Arkansas: Ranks 17th at $802
  • Florida: ranks 2nd at $1,386
  • Georgia: Ranks 27th at $703
  • Kentucky: Ranks 40th at $637
  • Louisiana: Ranks 3rd at $1,257
  • Maryland: Ranks 23rd at $721
  • Mississippi: Ranks 6th at $998
  • North Carolina: Ranks 35th at $649
  • South Carolina; Ranks 14th at $851
  • Tennessee: Ranks 26th at $706
  • Texas: Ranks 1st at $1,409
  • Virginia: Ranks 33rd at $662

What do we get from all this information…the comforting thought that least we aren’t in Texas! Stay tuned for more information on insurance and the basic types that are available for homeowners.  Hope you have a great week!

A4SR

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Posted in Asheville, Condominiums, First Time Buyers, Homeowners Insurance, North Carolina, Uncategorized | No Comments »

Thinking Condo? Ask yourself these 7 things first.

May 24th, 2010

You’ve found your dream condo, and you’re ready to relax amongst the pine and maple trees of Western North Carolina.  Well not so fast, at least take a minute to review this list, provided by RisMedia and the Daily Real Estate News. If only to keep from getting stuck with a lemon, you’ve got to do some homework. Here are the seven most important questions you have to ask before buying that condo getting into that association.

1. “What’s the Beef?”
Take a look at the minutes of the condo association board meetings to see what the owners have been griping about. If everyone was complaining about the faulty plumbing or the gardener’s absence, you know that the complex is having management difficulties. Even if there aren’t any complaints, reading the minutes will reveal the sorts of projects that are under way at the complex — projects the seller may have neglected to mention.

2. “Who’s Been Naughty and Who’s Been Nice?”
Find out the delinquency rates of present owners. If people aren’t paying their association dues on time, that is either a sign of discontent or an indication that the association might be underfunded.

3. “How Much Is In the Repair Fund?”
Ask if the community has done a reserve-fund review in the past five years. Lester Giese, the author of The 99 Best Residential & Recreational Communities in America, recommends the following formula: If the complex is one to 10 years old, the reserve fund should have 10% of the cost of replaceable items (roofs, roads, tennis courts, etc.). Between 10 and 20 years old, the repair fund should be at 25% to 30%. At 20 years, that amount should be 50% or above. Residents who brag that they don’t pay much in maintenance fees may be in a complex that either is not being kept up well or is living beyond its means, and that should be a send up a red flag.

4. “Can You Cover Me?”
If you look at nothing else, get a copy of the certificate of insurance, which is a summary of the association’s policy. First see if the replacement costs covered by the policy are an accurate estimate of the cost of rebuilding. Then make sure that the policy has a building-ordinance clause, which means that the insurance will cover the cost of bringing the building up to code if there is any rebuilding to be done. On older buildings, there may have been many code upgrades since the time of construction. Finally, make sure that you understand exactly what the association policy covers and what you are responsible for. The smart condo owner will insure his or her personal belongings, along with any other items within the unit that are not covered by the association’s policy. If you have trouble understanding the insurance lingo, take the insurance certificate to an agent whom you trust and who understands the state laws.

5. “Does the Association Present Any Legal Problems?”
Buying a single-family home without a lawyer is no big deal for many people. But with a condo, there’s so much more involved. Contact a local real estate lawyer and have him or her go over the bylaws of the association. Do they make sense? Are they consistent with the state laws? Giese, the author, once found that the association bylaws of a large garden-style condo complex had been lifted from the books of a high-rise condo, leaving confused tenants with rules about shared hallway space and the correct use of garbage chutes. Benny Kass, a Washington real estate attorney, recommends that you also have your lawyer screen the association at the local courthouse, to see if any owners have filed suit against it.

6. “Is the Complex Renter-Friendly?”
If the renter population is over 10%, there should be clear rental policies, either listed in the bylaws or tacked on as an amendment. Does the management company find renters for you? If so, do they get enough good renters? Ask other tenants about their experience. In addition, ask to see the association’s rental lease, and have a real estate lawyer look it over. Keep one thing in mind, though: An association can change its bylaws to prohibit or restrict renting at any time. The more owners who rent, the less chance that will happen.

7. “Am I My Community’s Keeper?”
Watch out for a condo whose owners manage the place themselves. Although many are operated efficiently, self-management can lead to more hassles for owners — especially those who live thousands of miles away. If the complex is professionally managed, check out the management company as thoroughly as you check out the association. Ask other owners. Ask people in nearby buildings. And be sure to interview the day-to-day manager directly. If you hook up with a bad manager, you can be sure of this: Your dream condo will keep you up at night.

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Ins and Outs – Home Trends for 2010

May 4th, 2010

Buying a home is without a doubt a major deal.  For most of us it is a long process trying to figure out which features we like in one house versus which features we will have to do without in another.  Evaluation of previously owned homes is tricky to say the least.   Those previously occupied homes represent what the buying market demanded at the time and may not represent your needs now or in the future.

Keeping the aforementioned thought in mind leads us to the idea of a “New Home” or a  ”Custom Built Home”.  In the event that you are considering building a new home or purchasing a custom built home, there are several trends and features that are showing up in the market.

Not surprisingly the average square footage dropped…

Homes with at least three bedrooms are down for the first time since 1992…

Homes with at least 4 or more bedrooms have been falling since 2007…

Homes with two stories peaked in 2006 and have been declining. However here in WNC – know that stat reflects a flatter part of the country….

Clearly these trends have unmistakable implications for home design and construction.   Among them is smaller homes.  That old saying of “less is more”, is very in vogue now.  So if you are looking for a newly built home or a build to suit opportunity be prepared for smaller floor plans and building foot prints.  However, within those smaller plans you can expect to find some these traditional and/or additional features for the near future and beyond, according to the January 2010 National Association of Home Builders survey of builders.  Some of these features are new and others have always been desireable:

A Walk-in Closet – in the master bedroom…

A Laundry Room…

Insulated Front Doors…

Great Room…

Low e-Windows…

Linen Closet…

Programmable Thermostat…

Energy Efficient Appliances and Lighting…

Master Suites – with separate shower and tub…

9-Foot Ceilings or higher on 1st Floor

Of course with new items being added there will inevitably be  items removed from standard plans.   In a climate of efficiency and affordability the following items are now being considered out of vogue and inefficient

Outdoor Kitchens -

Outdoor Fireplaces -

Sunroom

Butler Pantry

Media Room/Bonus Room – traditionally found over a garage.

These were just thoughts to keep in mind while you are thinking about a new home purchase and best of luck.

A4SR

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Mortgage Rates Inching Up

March 29th, 2010

The time is now

Changes are coming, sometimes we like the rate at which things happen sometimes we are fearful of the rate of change.  That being said the Associated Press is reporting that the average mortgage rate is slowly although steadily inching higher.  The average mortgage rate remains just under 5% (actually 4.99%).

Although rates fell to 4.71 back in December, they have been climbing since.  The average mortgage rate has continued to hover around 5% in part because of the Fed’s 1.25 trillion program to buy up mortgage backed securities.   So what does all that mean to us in Asheville and Western North Carolina?

The  federal program is set to end – with beginning of April (3/31/10).  While raising rates may weaken the current housing economy (which would be unfortunate).  The opportunity to strike is now.  Before the artificially suppressed rates start to climb higher.   Give us a call and see if we can help at 828.225.6911

A4SR

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A First Timer’s Quandary

March 23rd, 2010

You only get to do it as a first time once…

Your first time is a decision that you don’t want to regret….. One chance is all you get.  Since it is your first time as a home buyer, there is no doubt that it can be an exciting time and a nerve racking experience all rolled into one.  Two bedrooms or three?  In town or out in the country?  How much should be put down? etc.  How much are the taxes? etc.

However, there are things that you can do to minimize the roller coaster ride, since buying a home is most likely the single biggest financial decision a person will make. Thus keeping an even keel in these situations can be a serious asset in the decision making process.  Here are some things you can do to help yourself since buying your first home invariably involves being faced with trade-offs and tough decisions:

Tempering Your Expectations -

  • There is nothing wrong with dreaming big, but unless you are connected to Bill Gates’ money chances are you will have consider alternatives.  That being said, it will pay to familiarize yourself with starter homes in your area, via the MLS and your Real Estate agent. Falling prices have opened up some areas that had been out of reach to you in the past. However, be realistic about what you can afford in considering what you want. Bells and whistles are frequently omitted from starter homes – and that is okay. Home ownership can be better than granite counter tops in someone else’s rental.

Identification of Needs -

  • Does size matter, location to work, proximity to transportation? The better you understand you and your family’s needs and priorities the faster you and your agent can find the house that is meant for you.

Homeownership Goals -

  • Why do you want to buy? How long do you plan on staying in the home? What are your needs in the future? Many buyers today stay longer in their starter homes – than those previously. Keeping your goals in mind can help in the decision making process.

What Are The Costs

  • Costs – How much have you saved for the down payment, what is your budget for mortgage payments each month? Will you have to consider mortgage insurance into the monthly mortgage payments. What are the property taxes? Are you willing to pay homeowners association’s fees and dues. These are all financial considerations that must be taken into account prior to closing. Furthermore these items are all things that can be addressed to some extent prior to hunting for a home.

Tough But Worth It

It may seem daunting to consider these questions, but these questions are ones well worth asking and being honest about. No one wants to get into a their new home only to find that all they have is a building and no life to fill it with. Keeping these questions and thoughts in mind will clarify your mission and intent. The answers to these questions will reduce the interference and allow you to stay focused on your goal.

A Final Consideration

One last thing to consider is that if you find that some of these questions are more complicated than you thought, consider having your Real Estate professional help you with finding the answers. The effort will definitely be worth the reward.

A4SR

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2 Sulphur Springs Road
Asheville, NC 28806
Office: 828-225-6911
Toll-free: 877-303-6911
Fax: 828-225-6922
info@asheville4seasonsrealty.com