Bergen County NJ Real Estate Blog

Why Coldwell  Banker is Number One

• The Relocation Division and its partnership with Cartus, the largest relocation organization in the world, funnels new business into the market.
• Our Previews Division give you the advantage in the luxury market. Your exclusive marketing materials and signage distinguish you as a premier sales associate. Coldwell Banker is the single largest advertiser in Unique Homes, servicing 100,000 affluent households three times a year. You also have the opportunity to reach affluent consumers through two additional magazines: Homes & Estates and The Gallery.
• The New Homes division has partnerships with leading home builders and provides another resource for new and repeat business for you.

You offer tremendous marketing exposure for your clients through our internet partnerships with Realtor.com, OpenHouse.com, NewYorkTimes.com, and ColdwellBankers.com. In addition, Coldwell Banker provides you with your own personal website.

At Coldwell Banker Residential Brokerage, you have premier services and tools that position you to proide maximum exposure and superior services for your clients. You are fully prepared to succeed in any market.

BUSINESS SUPPORT

With 80% of all homebuyers using the internet to being their property search, Coldwell Banker Residential Brokerage made a tremendous investment in a Rapid Response System.

• LeadRouter ensures that no inquiry is ignored and that you do not miss business. You have the competitive edge in receiving all online requests via your cell phone within seconds.

Our Education Department has revamped its curriculum and programs in response to your requests.

• An extensive new program including comprehensive business development will be rolled out later this year. We solicited your comments and concerns and have tailored classes, training, and course instruction to enhance and support your business.

You have access to free, personalized and comprehensive training and instruction to support your business.

BENEFITS

We care about your overall well-being and have partnered with providers who offer you competitive medical, dental, and vision, long term and disability insurance, and retirement plans.

In addition, I’d like to offer these reminders:

WORKING WITH SELLERS IN THE MARKET

• Realtors and sellers do not set the market, buyers do. Sellers tend to remember peak seasons - like last year - when sale prices soared as a result of low inventory and extremely high demand.
• Work with your sellers to place more emphasis on current versus older comparables. If a seller prices their home competitively, they could see multiple offers and achieve optimal results. Buyers are doing more research and are critically discerning. Homes prices above market may not get any activity because buyers see the seller as unmotivated, particularly with such abundant inventory.
• At Coldwell Banker Residential Brokerage, you have the experience and tools to negotiate the highest possible new return on a homeowner’s most important investment.

WORKING WITH BUYERS IN THIS MARKET

• In recent year, buyers have purchased properties and witnessed great appreciation. Today, buyers might need to wait a little longer to see a significant return on their investment.
• It is still a good time to buy a home: interest rates are still historically low; low interest rates mean lower monthly payments; there is a large selection of inventory; more homes are prices to sell; and a home is an asset which appreciates value.
• The National Association of Realtors reported that people are not “buying for the right reasons. Sellers no longer hold all the cards, which is creating a more balanced market.”

A GOOD PLACE TO BE

It’s a good time to be a Coldwell Banker Residential Brokerage Sales Associate because you receive unparalleled and uninterrupted support as part of a family of strong businesses.

In this challenging market, rest assured knowing that you are part of one of the most supportive real estate companies in the world.

A NEW VISION

As a driving force of our company and the face of our business, your have inspired our new company mantra: Leading Agents, Leading the Way… to an exceptional real estate experience. Your professionalism has defined customer service and your sales and marketing expertise delivers maximum results for clients and our company.

I am proud to be on the winning team and I hope you are too.

Sincerely,

Ronnie

Here’s an eye- and garage- opening fact: Replacing your garage door can boost the resale value of your home.

A recent online survey revealed that 71 percent of homeowners who recently replaced their garage door with an attractive new design believe it definitely increased the value of their home.

Fortunately, garage door manufacturers have hundreds of new designs to add flair and personality to any home.

INCREASING CURB APPEAL

To help, GarageWowNow.com shows you how to increase your home’s curb appeal - and, potentially, its resale value - by replacing your old garage door with a stylish new door.

The new Web site features pictures, a variety of doors, along with before - and - after photos of homes that have received a dramatic new look. A news and design section, updated on a regular basis, offers articles written by home improvement and design experts that discuss trends and offer design tips

“THE NEW FRONT DOOR”

It also features the latest in garage door openers and accesories.

Americans now use the garage door as a main way to get in and out of their homes, lieterally making the garage door “the new front door.”

Another survey revealed that 71 percent of homeowners use their garage door openers too get in their homes every day, transforming the garage door’s remote control into “the new key to the new front door.”

DO IT RIGHT

Installing the door can be a complex and dangerous task, but with professional installation, a new garage door can be put in quickly, correctly and safely.

A professional door dealer can not only install your new door, but can help you find the right look for your homoe. You can find garage door professionals by using the site’s zip code search function.

Sponsered by the garage door industry, the site offers other perks. You can enter a sweepstakes, with a grand prize of a trip for two to Walt Disney World in Orlando, Fla.

No products are sold on GarageWowNow.com, but the site includes links to door and opener manufacturers that can help you get the best garage door for your home.

Article from the Pascack Press, June 4, 2007 Issue

In some homes, summer living revolves around the swimming pool. The kids dive in after school or sports, parents take a dip after work, family and friends drop by to swim on weekends. Pretty soon, it hardly seems worthwhile to trek back into the house - dripping water and strewing wet towels - just to get a snack or freshen up. The solution? A pool house. This can be a modest cabana that offers seating out of the sun and a place to get a cold drink. But where space and resources permit, it can turn into a scaled-down version of the main house, with most of the same amenities. Sometimes the pool house grows so lavish that the pool can fit inside it, as in the case of one North Jersey structure with modest beginnings. “Originally, I was going to build a shed for my tractor,” recalled the homeowner, Jim. “Then I got the idea to add a porch for my grill. My wife suggested a hot tub around a fire pit. Then I thought why not an exercise pool…?” He installed the hot tub and the 8-by-16-foot “river pool” - a kind of watery treadmill that allows you to swim laps while staying in one place - beneath a trellis of rustic logs. It links to a solid, seamed roof with 16-foot, wood-beamed ceilings that shelters a fire pit, a fireplace, a bar and a snack counter with a stone pizza oven. All of this connects with a fully enclosed den, a small but complete kitchen and a full bath. Jim, in the commercial real estate field, designed the project with input from both his wife, Lisa, and his landscaper, Jan Borzecki of Classico Landscape Construction, Rockaway. “Without a doubt, this project would not have succeeded without Jan’s artistic vision,” he said. “Classico did all the stone and masonry work, pavers and landscaping. He put his heart and soul into this project.” The homeowner wanted the building to blend with its wooded surrounding. Landscaped with a pondless waterfall in front, it is constructed of real, chiseled stones and enormous logs - dead timber from Yellowstone Park. A few naturally shaped “character logs” form a dramatic, pediment effect over the main entrance. “The Original Lincoln Logs Ltd. (www.lincolnlogs.com) provided the entryway character logs, as well as the beautiful white pine logs and trusses used for the roof system,” Jim said. For appropriately rustic furniture and accessories, he called upon Karen Arakelian, owner of Uptown Country, Wayne, and White House Furniture, Fairfield. “Jim walked in and said he was furnishing a pool house,” she remembered. “I don’t have outdoor furniture in my stores, but when I saw his design, I knew this wasn’t your average pool house!” To carry through the natural theme, she brought in a dining set with a hand-hewn cherry table and hickory wood chairs with woven cane backs and leather seats. Near the fireplaces, she added a hickory Morris chair with a woven leather seat and back. The den, with walls painted terracotta, features an entertainment console, sideboard and etagere in distressed, Mexican wood. Arakelian added a roll-arm leather sofa with a plaid seat in earthy tones. The rugs and thrown pillows repeat leafy patterns, and aged-looking Vietri urns and vases hold plants and flower arrangements. An amateur metalworker and carpenter, Jim made the den’s rustic pine coffee table that rises, by hydraulics, to double as a poker table. He also designed most of the chandeliers and lighting systems from such materials as plumbing pipe and rebar. Their industrial look coexists well with the rugged, outdoor ambience. So far, Jim has found the pool house “pretty functional for entertaining.” In fact, he voiced his only regret: “I still need a shed for my tractor!” Written by Eileen Watkins, from The Record, June 3, 2007 Issue

A lawn tractor can be a handy tool to keep your yard looking great. As with any tool, you must respect its power and use caution during operation.

For lawn tractors, these precautions are especially critical if children are in the area. Tragic accidents can happen in an instant.

You can severely injure or kill by running over a child with the riding mower- in forward or reverse - with the blades engaged, or when objects are hit and thrown by the spinning blades.

“The first step to reducing accidents is to have the mind -set that the lawn tractor is a powerful tool, not a toy, :” said Roger Leon of Husqvarna Outdoor Products, Inc. “It should be used only to accomplish outdoor chores and tasks when children are not present in the mowing area.”

As part of an industry-leading initiative, the world’s leading manufacturer of lawn mowers, Husqvarna, is including a bright yellow card and a “Kids and Mower’s Don’t Mix” key chain with each of its newly manufactured lawn tractors.

The card includes these guidelines for operating a mower:

“Know where your kids are. Keep kids away from the mowing area. Have adult supervision to prevent them from approaching the mower before you have finished. Stop mowing if a child approaches the mowing area.”

“Never give rides. A child may fall off the mower and into spinning blades. Giving rides may also cause the child to be attracted to the mower and the child may later approach without being seen.”

Use extreme caution in reverse. Keep alert for anyone who may enter the mowing area. Always look down and behind before and while backing up.

You should also read and follow safety instructions in your owner’s manual and remember to keep the keys to your mower away from children.

The brightly colored cards, with a replacement tractor key and key chain with a reminder that says, “Where are your kids?” are available at Husqvarna dealers and major retailers.

For more information about “Kids and Mower’s Don’t Mix” visit www.husqvarna.com

Article from Pascack Press, June 4, 2007 Issue

It’s a painful position — mounting credit card debt with increasing interest rates and no real vision of how to crawl out from underneath all that financing.According to the Consumer Credit Counseling Service of Santa Clara and Ventura County, California, (CCCS) what got most people in financial troubles are: overspending (25 percent), reduced income or unemployment (31 percent), medical reasons (11 percent), divorce or separation (8 percent).

The non-profit agency helps people alleviate their financial burdens and provides financial education and counseling on preparing to buy a home. Last year 7,043 households were counseled and received financial education, which included developing a budget, a debt payout plan, analysis of assets and liabilities, and an action plan to solve their financial concerns. An additional 1,604 households received pre-discharge education and another 1,014 received reverse mortgage counseling.

Those figures are from just one non-profit of the many agencies throughout the country that aim to help consumers with their finances. It’s no wonder many wannabe homeowners are finding themselves locked out of the housing market. But there is hope.

“We help anybody who has a debt with as little as $3,000 up to $100,000. We’ve seen it all,” says Sonie May, Counseling and Education Manager, of CCCS.

May says the average consumer that the agency sees has approximately $30,000 of debt. She says what tends to happen is the credit card companies rapidly increase consumers’ interest rates when they miss a payment and that causes the downward financial spiral of paying out more money and not being able to save to buy a home.

“It’s hard to get out of that cycle because the minimum payments are so high; it’s hard to get out of that hole that they’re in,” says May.

The most important advice if you are considering purchasing a home is to find out exactly how much money you bring in, how much money is spent each month, and how much money you can pay out for a monthly mortgage.

The CCCS helps you understand and assess your financial position and what can be done if you have credit card debt.

“We have relationships with most of the creditors,” says May. When clients come in, “we develop a repayment plan to get the consumer debt-free within a five-year period with low interest rates and low payments.”

May says most of the interest rates negotiated for clients are between seven and 18 percent, but she says some are as low as zero percent. “From 30 percent that’s a big, big difference — we save them thousands of dollars not only on a monthly basis but also over the long run we will save them thousands of dollars of interest that they would have paid if they hadn’t come to see us,” says May.

The CCCS collects the payment from the client and then disburses it to each of the creditors. A monthly fee is charged by CCCS for participation in the payment program.

Of course, while working with the CCCS, clients are strongly urged to not use credit cards or incur any more debt. Once the program is completed, clients are free to borrow again including taking out a mortgage.

“We have heard success stories from many of our clients who were able to purchase homes after they have completed the program,” says May.

The CCCS can help with planning to purchase a home. The agency has its clients evaluate and analyze what their future expenses will be once they own the home. They remind clients that homeownership expenses include more than just the mortgage, property taxes, and homeowner’s insurance. The agency promotes savings for the unexpected expenses: needing a new roof or the loss of a job.

Always be sure that when you calculate your expenses, you set a portion aside to pay yourself in addition to paying for your new home and other necessities. The other very important advice the CCCS gives is to completely understand the type of mortgage you are getting. May says it’s important for homebuyers to know if the monthly mortgage payment will increase.

“If it’s a variable rate loan, when will the interest rate go up — after six months or a year? — and would they be ready if that mortgage payment were to increase,” says May.

Too often, as we’re seeing now, in the housing industry, consumers either weren’t informed or didn’t consider the result of an increase in their mortgages’ interest rate and thus are forced to financially buckle down or, in worst case scenarios, foreclose. Another CCCS company in the San Francisco area says help is available for homeowners who are facing foreclosure.

Written by Phoebe Chongchua

Even though real estate has changed substantially in recent years with the use of new technologies, the fact remains that buying a home still requires a series of traditional protections and defenses. Why? Because buying a home is inherently complex and professional assistance is both appropriate and reasonable.In practical terms, this means that if you’re a buyer there are steps you should take to protect your interests. As a place to start, here are several basic issues to consider:

Get a home inspection. Don’t let the stiff competition in seller’s markets persuade you to forego a home inspection on a home you want to buy.By misusing a home inspection as a negotiating tool, the house you succeed in buying may cost you a fortune in the long run as you rush to correct problems a qualified home inspector would have easily been able to point out.It is not the inspector’s job to tell you whether or not you should buy the house. That is your decision alone. The inspector’s job is to provide you with thorough and accurate information to help you make the decision.What about new homes? You certainly want a home inspection as part of the final walk-through — make sure you allow several hours for this process. But, even better, use a three-step process for new homes: Inspect once the foundation is in place, inspect when the walls are up but not closed, and inspect before closing.

Get an appraisal. An appraisal satisfactory to the lender is required when a home is financed by a traditional mortgage source. Consumers pay for this appraisal, but lenders get to choose the appraiser.Independent appraisers assure lenders that a home is not over-priced and thus that they are not making an inflated and risky loan. If you’re buying with seller financing (where there is no outside lender) or all-cash, you still need to make your offer dependent on an appraisal satisfactory to you. Speak with your real estate agent for details.

Get a termite inspection. Wood-boring insects cannot demolish a home with cartoon-like speed, but they can cause damage. Before or at closing, lenders will want evidence showing that the property is free and clear of active termite infestations.It’s sometimes asked why a termite inspection is needed for new homes. It may seem like an odd requirement at first, but the concern is that lumber may be infested before it’s cobbled together to create the home.

Get a title examination. A home purchase is a huge investment, so it makes sense to make sure that the seller actually owns the property and has a right to sell it. A title inspection looks at the property’s history as it is shown on public records to establish a trail of ownership.

Get title insurance. About that title examination — it’s based on a check of public records, but those records may be wrong or incomplete. It could be that a former owner was insane, an alcoholic, drug-addicted, a bigamist, or not legally competent — factors which may all make it difficult to offer good and marketable title when it’s time for you to sell, thus reducing your ability to make a sale — or a profit.Title insurance is a one-time charge that protects against title claims. For details, ask your broker and the party that conducts closing. Ask about “re-issue” rates (you may be entitled to a discount under certain conditions), endorsements, limitations, and exceptions. If you’re in Iowa, be aware that title insurance is generally not used there — ask how you are protected in the event of title problems.

Get a survey. A survey shows the quantity of property being sold and it’s location. A survey will show whether “your” plot improperly includes someone else’s land — think of a garage or fence that extends six inches over a property line and the ability of a neighbor to charge for the use of that land or to order the removal of your improvements. A survey can also show “encroachments,” the improper use of your land by someone else.

Get a limited “warranty.” There are warranties for new homes, and service contracts for existing properties. What individual policies include varies by state and by program, so you need to ask your agent for details — what is covered, what is not covered, how long coverage lasts, what costs you face if you have a claim, whether you can continue an existing home policy after the initial term, etc.Do these various inspections and checks cost money. You bet. Are they worth it? Sure.Written by Peter G. Miller

“Top,” “Best,” and “Most” lists rarely tell the whole story, but they do serve a useful purpose.As literary distillations of larger stories, lists offer the kind of on-the-go information we need so we can pocket more time — the real currency of the New Millennium.

The best of the best of these lists are presented with a pinch of intrigue, turn of phrase, or perhaps a dash of humor. They hold our interest captive for the few fleeting moments we have to spare, but then leave us sated with pointed information.

Craig Venezia, author of the new, “Buying A Second Home: Income Getaway or Retirement,” offers one such list for the second home crowd.

Venezia is a contributing real estate writer for the San Francisco Chronicle who telecommutes to work from his Boston-area home. He also served as a Wells Fargo executive, worked closely with ETrade Financial and knows the ins and outs of structuring private loans between family and friends.

No matter how time-starved you may be, a full read of the book — from deciding why you want a second home to the forms you need should you decide to hire a property management firm — will send you to the head of the class.

Instead of saving the best for last, Venezia makes the read easy by getting you quickly into the tome with his “Seven Secrets About Buying a Second Home.”

Here’s what he says.

Know the right time to buy. One of those times is now. The correcting real estate market is shining on the second home sector. More properties on the market, relatively low interest rates and motivated sellers have combined to put the buyer back in the driver’s seat.

Know if a second home purchase makes financial sense. A second makes sense in the first place if you can create a realistic, affordable budget in advance so that you buy within your means. Stretching here is not very healthy. Take stock of your current and projected income, expenses and rental income (if you plan to rent out the property) and do the math. You accountant and financial planner can help you weigh the financial risks.

Know where to go. Venezia says choose a location based both on the potential for property’s value to appreciate — especially if you aren’t going to rent it — and guest-preferred destinations. Real estate agents can provide the market research you need.

Know and understand the tax consequences. In some cases, buying a home across the city border can trim your annual property tax or any occupancy or “hotel” tax collected by some local jurisdictions, but you’ll still bask in the glow of the location.

Know about nontraditional financing. This isn’t about those risky nontraditional loans that are costing homes, but relative loans — loans from your family bank. A loan from a family member can save you thousands in interest over the life of the mortgage with cheaper family rates and, perhaps, keep the money in the family instead of sending it to the bank.

Know about rental income that can offset your expenses. Rent your property out for just part of the year and you can subsidize the cost of owning a second home, says Venezia.”Keep in mind that being a landlord doesn’t mean sitting back and watching rent checks roll in. It takes time, money and commitment. Know what you’re getting into before you venture too far down that path,” he says.

Finally, know how to protect your investment. Whether your second home is a pure investment, a weekend getaway, or a place to eventually enjoy when you retire, real estate is an Investment. Maintain the property, keep it fully insured, have it inspected regularly, and watch your equity grow.Written by Broderick Perkins

In Freddie Mac’s results of its Primary Mortgage Market Survey the 30-year fixed-rate mortgage (FRM) averaged 6.67 percent with an average 0.4 point for the week ending June 28, 2007, down from the previous week when it averaged 6.69 percent. Last year at this time, the 30-year FRM averaged 6.78 percent.

The 15-year FRM averaged 6.34 percent with an average 0.4 point, down from the previous week when it averaged 6.37 percent. A year ago, the 15-year FRM averaged 6.43 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.30 percent, with an average 0.5 point, down from the previous week when it averaged 6.31 percent. A year ago, the 5-year ARM averaged 6.39 percent.

One-year Treasury-indexed ARMs averaged 5.65 percent with an average 0.5 point, down from the previous week when it averaged 5.66 percent. At this time last year, the 1-year ARM averaged 5.82 percent.

“Mortgage rates edged down slightly for the second week in a row after having risen over the previous month and a half, and as financial markets prepared for the June 28th Federal Open Market Committee’s announcement on monetary policy,” said Frank Nothaft, Freddie Mac vice president and chief economist.

Inexpensive Ways to Revitalize a Kitchen

Here are some quick, affordable ways to give your kitchen an update:

Replace the flooring. Install laminate floor over old linoleum, vinyl, or chipped tile. It costs just $1 to $5 a square foot and looks like wood, stone, or tile.

Replace the lighting. A new ceiling fixture costs less than $100 and will brighten up the place. Adding some under-the-cabinet lights will illuminate work surfaces.

Give the cabinets a new life. A coat of paint and new knobs is the cheapest way to go. If you’re able to spend $4,000 to $6,000 on the project, hire a refacing company to replace the doors and drawer-fronts.

Refinish the appliances. For a few hundred dollars, an appliance refinisher will re-enamel your stove, refrigerator, and dishwasher door in the color of your choice, including a stainless steel look-alike.

Update the backsplash. Replace the space between your cabinets and the countertop with fashionable stone or tile. Using IRA Money for Real EstateSelf-directed IRAs give investors lots more options than do traditional company-sponsored retirement plans, including the option of investing in real estate.The rules and regulations for investing an IRA in real estate are complex, and failure to pay attention will result in substantial taxes and penalties, experts say.

Accountant Ed Slott, founder of the IRAhelp.com Web site, offers these suggestions:

Set up a separate IRA for real estate investments. Even if only a small portion of the IRA is used for real estate, the IRS could penalize the entire balance in a prohibited transaction.

Check the investment scenario with custodians and other professionals who have experience in these transactions and can spot red flags.

If possible, choose to invest in a Roth IRA. The money in the Roth has already been taxed and any distributions, including capital gains on the property, are generally tax-free. Passing the All-Crucial Sniff Test in Selling the HomeIn addition to depersonalizing and de-cluttering, experts say home sellers need to be concerned about odors.Sales associates polled informally by REALTOR® Magazine Online a few years ago said the lingering presence of pets, tobacco, mildew, and decay in the air are major deal-breakers.

Given that not everyone smells the same odors and that people can become accustomed to a particular smell over time, it is important for home sellers to have their sales associates or another objective party inform them about unpleasant scents in their homes.

If buyers can’t imagine clearing the smell, they can’t imagine occupying that space. The smell of cat urine is especially difficult to remove, with Chris Coffin of the Alexandria, Va.-based branch of the cleaning company ServiceMaster estimating that spot-cleaning carpets and replacing the carpet pad would cost home buyers upwards of $400; removing and replacing saturated floors would cost much more.

Coffin adds that it often takes three cleanings to remove nicotine odors from walls, and some cases involve the replacement of insulation.

Experts urge home buyers to be wary of air fresheners, candles, and other scents when touring homes, as they could be used to conceal offensive odors. A better solution for sellers, they say, is to clean drapes, sheets, and pet bedding as well as to air out the house.

Written by Realty Times Staff

There are inappropriate steps sellers can take when it comes time to put their house on the market.

For instance, the seller in Virginia, who thought the half bath the builder had located at the front of the house would really be better situated toward the back of the main level (though all the other similar models had the powder room in the same place for the previous 20 years). He got hung up on this detail so much, that he just had to move it — and did — for thousands of dollars, just so he could get it on the market the “right way.” His hang-up may have settled some deep-seated emotional need for him, but it didn’t draw any more buyers, and it drained his bottom line. You might say, that was a costly mistake.

Real estate broker and author Sid Davis has identified in his book, “A Survival Guide to Selling a Home,” seven costly mistakes that many sellers make when it comes time to put their home on the market. In my business, I’ve seen each one of these mistakes played out and it just makes me shake my head as to why sellers forge ahead with unwise strategies, instead of listening to the voice of an experienced professional.

Mistake 1: Putting the home on the market before it’s ready. Most times this happens because the seller gets impatient or is a procrastinator and has pushed himself up against a moving deadline without getting the pre-sale work done. So it comes on the market with the horrible carpet (that gets replaced during the marketing of the home); or they are painting it while it goes on the market. Presentation is everything — so get the work done before marketing the property.

Mistake 2: Over improving the home for the neighborhood. This happens with additions, bump outs, and upgrades that make the home stick out from among its competitors so much that it’s an anomaly, instead of a nice addition to the community.

Mistake 3: Pricing the home based on what the seller wants to net. This pricing strategy always ends in failure. Sellers can control the “asking” price, but they don’t control the “sales” price. The market does. It doesn’t matter what the seller wants, the price is determined by the black-and-white, matter-of-fact reality of the market.

Mistake 4: Hiring an agent based on non-business factors. It might be nice to hand over your largest asset to your nephew who just got his license — but make sure you understand the consequences if your deal starts going south.

Mistake 5: Getting emotionally involved in the sale of the home. This is one of the biggest challenges home sellers face when putting their house on the market. Once you decide to sell your house, it’s no longer a home, but a commodity. It needs to be prepared as a commodity, marketed as a commodity, and priced as a commodity. It doesn’t matter what you “want,” only what the market can bear on pricing. People are going to come in to kick the tires, so to speak, and you can’t get emotional about how they may or may not appreciate the nuances of your home of seven years.

Mistake 6: Trying to cover up problems, or not disclosing them. Most states have a property disclosure/disclaimer form — use it wisely. Just because you disclaim doesn’t mean you cannot be sued later for the leaky basement, or dilapidated heating/air system that’s discovered 30 days after settlement.

Mistake 7: Not getting your ducks lined up before trying to sell. This would involve financing, reading the fine print on your current mortgage to ensure no pre-payment penalties, not listening to the particulars of your local market, etc. If your local market is dictating lower home prices, then lower it early, not later — it will cost you more. If the local market dictates selling your home first, then buying second, do it in that order, or vice versa.

Avoiding these mistakes is not that difficult. Your REALTOR® is there to help you step over the pitfalls.

Written by M. Anthony Carr

A standard homeowners insurance policy doesn’t cover what you think it does — not flood or earthquake damage, not stolen or damaged vehicles on your property, not a break in the water service or sewage line and not termites moving in nor pets stolen away.

Many homeowners are under the mistaken impression that a standard homeowners policy provides more insurance protection than it does and that could mean large unexpected out of pocket expenses — when you can least afford them.

The National Association of Insurance Commissioners (NAIC), an organization of state insurance regulators, found that 33 percent of U.S. heads of household still hold the false belief that flood damage is covered by a standard homeowners policy — despite extensive post-Hurricane Katrina news coverage of scores of homeowners with claims turned down because they didn’t have the required flood insurance from the National Flood Insurance Program.

“Many homeowners learned the hard way that their insurance policies did not provide flood protection,” said Walter Bell, NAIC President and Alabama Insurance Commissioner. “As we enter the 2007 hurricane season, we strongly encourage consumers in flood-prone areas to check whether they are properly covered.”

That’s not all.

NAIC also found:

Sixty-eight percent who think vehicles such as cars, boats and motorcycles stolen from or damaged on their property are covered, could get run over by unexpected costs.

Fifty-one percent who think damages from a break in the water line on their property supplying water to their home are covered will be swamped in bills which they, not the insurance company, will have to pay.

Thirty-seven percent who think damages due to a break in the sewer line on their property that connects to their municipal sewer system are covered are making a really foul mistake.

About one in three who believe damages from earthquakes, mold, termites or other infestation are covered, could wind up crawling with bills.

Twenty-two percent who think pets stolen from or injured on their property are covered, should get more dogged about the truth.

Perhaps worse of all the NAIC survey revealed that 24 percent of respondents indicated their policies insured their homes for the actual cash value, while 64 percent said their policies covered the replacement cost. Another 12 percent said they did not know which type of coverage — actual cash value or replacement cost — they purchased.Actual cash value is the amount it would take to repair or replace damage to a home and its contents after depreciation. Replacement cost coverage, the better option, will cover the amount it would take to replace or rebuild a home or repair damages with materials of similar kind and quality, without deducting for depreciation.NAIC’s InsureUOnline website offers the following tips:

Add insurance coverage as you enhance the value of your home, and acquire expensive possessions, such as furniture, computers, stereos and televisions and other electronics. Keep in mind computers and other high-end electronics may require special coverage.

Alert your insurance company when making any major home improvements that cost $5,000 or more. Update your homeowners insurance policy to reflect the new enhancements and prevent being underinsured.

Maintain your property by clearing clutter and other dangerous conditions to reduce the potential for liability suits. In many states, you could be held legally responsible for the actions of anyone who drinks in your home and then has an accident in your house or after leaving it. Your policy should protect you against lawsuits due to these types of liability issues.

Backyard items, such as a trampoline, pool, hot tub or spa may require you to increase your liability coverage through an umbrella policy.

As you acquire more valuables — jewelry, family heirlooms, antiques, art — consider purchasing an additional “floater” or “rider” to your policy to cover these special items. They’re typically not covered by a basic homeowners or renters policy.

It’s a good idea to make an inventory of all of your personal property, along with a photograph or video of each room. Also, save your receipts for major items and keep them in a safe place away from your house or apartment so you’ll have them if you need to file a claim and substantiate value.Written by Broderick Perkins