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March 22, 2019

How to Find Distressed Real Estate Properties?

Distressed real estate flipping is one of the best ways to make money in a short amount of time. Reliable, and considered to be a somewhat affordable investment opportunity for regular people, this DIY real estate project isn’t always easy. The process of how to find distressed real estate properties and turning them into cash can be done, but you need to know the five-step process.

If you want to know how to find distressed properties, it is important to follow this simple five-step process. Then, call the office of Jeff Barchi to discuss other ways to locate privately listed properties.

How To Find Distressed Properties (in 5 steps!)

One of the hardest parts about flipping houses is finding the right properties. Use this list to learn how to find distressed real estate properties with ease.

  1. Create a Budget

One of the worst mistakes investors make when they try DIY property flipping is understating the total cost. In order to avoid potential pitfalls, create a budget that includes wiggle room for unexpected problems. When creating your budget, factor in your current credit score, the long-term growth potential of investments along with expenses associated with property acquisition.

  1. Online Search

Perform an internet search that includes public MLS listings. Also known as the Multiple Listing Service, an MLS database provides information on houses for sale. This search can also be customized to include advanced options, so tell your real estate agent about any specific terms to include, such as bank-owned, REO, government-owned, delinquent mortgage, foreclosure, and others.

  1. Location

The marketplace contains a lot of data that you can use to evaluate the sale price after you flip a distressed property. The location is a #1 research priority when attempting to know which renovations should be done first. You may find that curb appeal is a better investment choice than updating interior aspects like kitchen backdrops or bathroom tile. Look for properties based on neighborhood zones, address, and highest sale price in the area.

  1. Spend Time

It is never a waste of time to talk to other people in the real estate industry. This may include agents, brokers, community members, and more. You can learn from everyone you meet within the real estate community, and ideally, you will be able to build a supportive network that can sharpen your negotiating skills as well as flipping strategies.

NOTE: Never underestimate the value of a large network including neighbors, friends, advertisers, contractors, and other workers.   

Talking with real estate agent

 

  1. Make an Offer

Once you have done all of the leg work and spoken to a qualified professional about your goals, you can make an offer. Each property that you decide to purchase for a low price, make an investment, and flip for a profit, may also have competition.

So, make sure you know what the limits of your budget are and always set money aside to use during the negotiation process. Generally, market experts recommend at least 20% padding within your investment budget.

Finding Motivated Sellers of Distressed Properties

If you are able to locate properties publicly on the MLS, you may be able to find investment opportunities alone. However, you may not realize how many other distressed properties are available offline. Ask about properties with delinquent taxes and mortgage payments along with homes sold out of probate and government-owned property.

Remember that flipping houses for profit is not always a win for investors. Many times, a property can shock you with the cost of unexpected problems like plumbing leaks, electrical explosions, crumbling foundation, and many other things. Talking to a team member from the office of Jeff Barchi can help you avoid the most common mistakes investors make. Follow this process of how to find distressed real estate properties and turn an impressive profit.

March 12, 2019

5 Signs of a Bad Real Estate Agent

Signs of a bad realtor are not always obvious. In fact, you might be shocked to think about how many red flags your realtor is showing you. It could even be happening right under your nose while you are missing it. Look for these 5 signs of a bad real estate agent.

There could be all types of other signals that the real estate agent you choose is letting you down, so don’t ignore them. Pay attention to these initial red flags pointing out that you need a new real estate agent, and if you have a gut feeling, maybe it’s time to kick your current agent to the curb.

Five Signs of Unsuitable Real Estate Agent

  1. No Web Presence

Any successful real estate agent has an internet presence. Today, most people have a smartphone and are able to browse MLS listings anywhere they go. For that reason, signs of a bad realtor include a lack of web presence, a low-quality website, no photographs or low-quality images, and unavailable MLS listings.

Real estate photography is also a clear indicator of a low- quality website. If you don’t see professional photographs on the real estate agent’s website, you need to find someone else, especially if they are taken with a cell phone.

  1. Self-Involved

When you meet with your real estate agent in person as a new home buyer, or even a seasoned real estate investor, you may notice that your agent is self-involved. While selling property is somewhat glamorous, the focus of the process should always be on you: the buyer.

There is plenty of paperwork for the real estate agent to complete, however, if it seems like you are waiting for someone who seems busy, arrogant, or unable to listen, it is a red flag. Other signs showing you need to look for a new agent include a hidden agenda, wondering if they are telling the truth, feeling coerced, noticing the agent is overly eager, and other bad vibes.

  1. Inspection Attendance

A good real estate agent will be there when you have a home inspection. If possible, they will also be available any other time you need them, whether it is over the phone, in person, or while they are in the office.

If your agent is not able to be there during home inspections, it could be something to worry about. An inspector can give you a report of what needs to be repaired or updated before a property sale. If your real estate agent is unavailable in person for a home inspection, it is one of the signs of dealing with a bad real estate agent.

Inspection Attendance

  1. Funny Money

If you notice any type of under-the-table payments — it is a sign that you need to head for the door. Do not stay with a real estate agent who does not offer you complete transparency. It is too late to discover that the real estate agent is paying other agents commission, is taking cash for listings, hiding listings, or doing other underhanded things, after signing the contract.

  1. It Feels Like Work

Let’s be honest … please. The homebuying process is supposed to be an enjoyable one. There is a lot of preparation and hard work that goes with selling a property, and any real estate agent who makes you feel like the process is too tiring and is transferring his/her negative energy, needs to go. If you are working with a true professional, they will also make you feel comfortable as if their job is actually just a lifestyle that they love to share with you.

If you notice that the person you are currently working with shows any of these five signs of a bad real estate agent – leave them. Ditch the office you are working with and call the office of Jeff Barchi. You can get rid of a low-quality agent and start working with someone who makes you feel comfortable and cared for. Reach out to us, today!

February 28, 2019

What Is an REO (Real Estate Owned Property)?

Real Estate Owned Properties, or REOs, are unique assets. When a house hits the market, many of them are never actually sold. In fact, today’s housing market has left many REOs behind.

This term is commonly used to describe a property owned by a lender, which is usually the bank, a government agency, or government loan insurer. When the home fails to sell after foreclosure, a beneficiary sets up a bid at a specialty auction where interested bidders can try to buy the property one last time. If there are no bidders, the beneficiary can legally take ownership of the property.

An REO is common when the amount owed on the home is higher than the market value set by a real estate agent. When the beneficiary takes possession of the property, it can be re-classified in the books as an REO asset.

What is an REO?

The term is taken from OREO. Originally, Other Real Estate Owned properties were called OREOs on financial statements, to make it easier to classify real estate property owned by financial institutions not directly related to its business.

REO properties and OREOs are essentially the same, however, property management companies that deal primarily with real estate management tend to use the term OREO.

While lenders are in the business of making loans, many buyers do not realize that home mortgages need to be repaid in full and with interest. A lender may then make it a secondary line of business to seize, manage, and resell property collateral to recover the balance. Within property management companies, the most common term for these homes is OREO.

How is an REO made?

There are 3 ways a home becomes an REO

  1. Foreclosure
  2. Auction
  3. A deed in lieu of foreclosure

When a property goes into “distressed” status, meaning that the mortgage has not been paid, the beneficiary will determine the equity of the property. This can be determined by the Broker’s Price Opinion (BPO) or appraisal. Depending on what the BPO sets as the amount of equity, the bank can decide to allow a short sale or not. If the homeowner requests it, the beneficiary may continue the process of foreclosure, and thus, re-categorize the property as an REO.

After a property is classified as an REO, the beneficiary will list the property or get the help of an asset manager. After removing any debts from the home, including liens, the home can be listed with the special category of REO for sale.

The house may be sold to the public alone, at auction, through a real estate broker, through direct marketing, or other means like zip code listing. Larger institutions and banks with REO and asset management departments may handle sales, however, some properties are placed on MLS by the broker who performed the BPO.

Bulk real estate owned properties, or bulk REOs, are also a type of OREO. They can be seen, from an investors point of view, like wholesale real estate.  

Talking to a Real Estate Agent About REOs

Real Estate Owned Properties, or REOs, can also be called bank-owned properties. A highly desirable way to purchase real estate, REOs are not always easy to find. Often times, they are not available through public listings such as the MLS.

bank-owned-properties

How to snatch up REOs:

  • Look online for the keyword, “bank owned property”
  • Ask real estate agents
  • Visit bank branches
  • Check various foreclosure auctions
  • Use databases and software for REOs
  • Talk to your real estate agent

Call the office of Jeff Barchi to find your next in the Phoenix area. Not only will you get to shop the best selection of Arizona real estate properties, but you will also get tips from the pros on how to take advantage of publicly and privately listed REOs. It is the best way to know for sure that you have done a comprehensive search.

January 30, 2019

What Is the Right of First Refusal in Real Estate?

The Right of First Refusal or ROFR is a term used to describe a contractual right that allows the holder an exclusive set of specified terms before the seller can enter into any other transition with a third party. In real estate, the term is used to describe a document that gives an interested homebuyer the right to buy a property before any other offers are negotiated.

The right of first refusal is a commonly used lease provision, that can also be found in other agreements. Essentially, in real estate, a ROFR works to give potentially interested homebuyers a right to purchase the property before a seller can negotiate any other offers. Typically, this clause is written before the property is publicly listed on the market.

How Does the Right of First Refusal Clause Work?

The right of first refusal clause is commonly added to real estate contracts. It works to help the seller market a home to an exclusive audience and can ease tension during the homebuying process.

Before outside offers can be reviewed from the general public, the right of the first refusal creates a space for negotiations without any other interested parties getting in the way. During the time that the right of first refusal is in place, the holder has the option to make an offer without the additional pressure of impending competitive offers.

A ROFR includes three parties: the owner, a third party or buyer, and the option holder. For the clause to work, the owner needs to make the same offer to the option holder before making any offers to the buyer. Also known as a Right of First Negotiation, a right of first offer (ROFO) differs from a ROFR in that it requires the owner to exercise “good faith.”

How is The First Right of Refusal Clause Used?

Oddly enough, the right of first refusal contract covers a variety of assets including real estate, personal property, a patent license, intellectual property, and even business interest and transactions that are not necessarily assets, including rights to distribution and more.

It can also be used in business transactions in creative industries like that of screenplay writing and music making. In the entertainment industry, a ROFR gives the holder a right to make the movie or music before any other party can. In the case of divorce cases, a ROFR can also be used when dealing with custodial offers.

The division of parenting time, visitation orders, and other obligatory terms for parents, custodians or family members may also be included in the clause.

refusal

ROFR vs ROFO

During real estate negotiations, a ROFR or a ROFO may be used to ease pressure and tension during the homebuying process. Here is a clear example of each, to help you compare and better understand how they work.

  • ROFR

Jed owns a house and Bo makes an offer to purchase the home for $1 million. However, Sam holds a ROFR to buy the house. Thus, before Jed can make a sale to Bo, he has to offer it to Sam first for the price of $1 million. If Sam accepts, then he must agree on the same price that Bo is willing to pay. If Sam accepts, he then buys the house instead of Bo.

However, if he declines Bo can purchase the house at the agreed-upon $1 million dollar price tag.

  • ROFO

Instead of a ROFR, Sam holds a ROFO. Before Jed can negotiate any deals with Bo he has to try to sell the house first to Sam – and on the same terms that Jed has offered. If they agree, the property can be sold to Sam.

However, if an agreement is not reached, then Jed must start again with new negotiations and remove any price or term restrictions.

The Right of First Refusal or ROFR is different from a ROFO, however, it is important for homebuyers to understand each. Regardless of how you want to approach purchasing a home, using a ROFR, ROFO, or both can help you make the deal. Talk to your real estate agent before making any decisions, and use these tips to guide the process.

Curious to find out more? Visit our blog to read other topic-related articles, today!

December 25, 2018

Cheapest Places to Live in Arizona

Arizona is not known as an expensive place to live. However, there are some places that are more affordable than others. Some cities like North Scottsdale can fetch prices of 26 million. If that price tag is out of your range you may want to know about these 5 most affordable cities in Arizona.

  1. Flagstaff

    This quiet mountain town is one of the coziest places you can find in Arizona. Not only is the tiny town snuggled at the base of Mt. Humphreys but the people there are also warm and welcoming. There you don’t have to have a lot of money to have it all. In fact, approximately 30,000 college students call it home. The former railroad town is still a bustling economy for adults, besides those who work at Northern Arizona University. Home to legendary Lowell Observatory, residents of Flagstaff also enjoy the world’s first International Dark Sky City. Thanks to city leaders who passed an ordinance that limits artificial light in the evenings, the sky is always dark, so you can discover everything the night sky has to offer at the soaring seven thousand feet altitude of Flagstaff.

    In Flagstaff:

    The median home price is $263,000.
    The median household income $48,120.

  2. Chandler

    This is one of the most popular cities in the United States, and, as it continues to grow, the affordability is one of Chandler’s best selling points. Second to the price tag of homes in the area, the suburbs here offer about 330 sunny days a year. That gives residents tons of opportunities to take in the world-class golf courses, dining, shopping in the downtown area, not to mention the Historic Places listed in the National Register. If you are looking for a city to celebrate in, Chandler hosts a large Ostrich Festival in March, Cinco de Mayo in May, Chihuahua races and an impressive city lights display during Christmas, that features a tree made of over 2,000 tumbleweeds.

    In Chandler:

    The median home price is $235,400.
    The median household income $73,000.

  3. Oro Valley, Tucson

    Located on the outskirts of Tucson, Oro Valley offers impressive views of the city, yet it is the cheapest place to live in Arizona. Not only that, but in recent years the area has also attracted attention for offering numerous jobs from companies like Honeywell, Sanofi-Aventis, and Ventana Medical Systems.

    People there also enjoy the recreational facilities including golf, bicycling hiking, and camping opportunities at Catalina State Park. Also, home to a 13-acre preserve known as Honey Bee Village houses prehistoric remains of an ancient Native American Hohokam village. Shockingly, this stunning city is one of the cheapest places to live in Arizona.tuscon house

    In Oro Valley:

    The median home price is $74,480.
    The median household income $276,600.

  4. Gilbert

    Another Arizona suburb where living is affordable, Gilbert is on the higher end of the income bracket. Here, the crime rate is low, and the city is considered a great place to raise a family. Because people tend to make a comfortable living in Gilbert, recreational opportunities include hiking and equestrian trails, plus the Riparian at Water Ranch where you can see over 250 different bird species.

    In Gilbert:

    The median home price is $81,485.
    The median household income $231,100.

  5. Prescott

    The 1.25-million acre Prescott National Forest attracts outdoor trail enthusiasts and hikers from all over the world. Residents here are water lovers as Lynx, Willow, Watson, and Goldwater lakes are all nearby. In this cute mountain town, you may also be able to catch a re-enactment of a Wild West style gunfight.

    In Prescott:

    The median home price is $265,500.
    The median household income $45,190.

Many cities across the U.S. are so posh and glitzy they can be considered unaffordable by most people. However, there are tons of delightful places you can call home for a reasonable price. These are just 5 of the most affordable cities in Arizona – one of the most beautiful states on the map.

November 26, 2018

What Are HUD Homes and How to Buy One?

Buying a HUD home is a simple and easy process, and it may be just the right way for you to buy a home. Today, while home values continue to fluctuate, an FHA home loan allows you to feel secure.

In fact, an FHA loan from the Housing and Urban Development (HUD) is one of the most reliable ways to take responsibility for your home buying experience. For first-time homebuyers and sellers, a HUD home loan is unlike any other you may have access to today. For that reason, if you want to negotiate real estate commissions there are a few tips to follow.

What Are HUD Homes?

HUD homes are residential properties acquired as a result of foreclosure actions. An FHA-insured mortgage commonly becomes a HUD property when the owner fails to recover from a loss on the foreclosure claim.

Different from other types of home loans, like those on a foreclosed property, HUD homes are exclusively offered to people who are able to access the auctions online. This makes the process of purchasing a HUD home different as well as how to negotiate with a realtor commission during the homebuying process. Known as an offer period, HUD homes can only be purchased during this time frame. At the end of the offer period, only the highest offer on the table will be received.

How to Buy a HUD Home

  • The Right Real Estate Agent

A real estate agent that is HUD-certified is the only type that can help you purchase one of these specialty homes. However, it is important that you find a real estate agent that you can also talk to so that you can enjoy the home buying experience.

  • HUD Registered Real Estate Inspection

A HUD registered real estate agent is the only type that can give you access to a HUD home. So, when you want to schedule an inspection on a HUD registered home, you will need to contact your agent to gain access.

  • Making an Offer

Purchasing a HUD home is unlike any other home buying process than you may have experienced before. After sending an email to the property manager, the offer is considered open, and during that time, the earnest money is not in jeopardy. Unlike with other offers, the HUD home buying process protects the earnest money while the offer is on the table.

  • Be Prepared

Documentation Ready

Buying a HUD home is best when you are prepared, so grab all of your documentation before the sale closes. That means your W2’s, pay stubs, tax returns, savings account documentation, retirement accounts, and any other documentation that you need for pre-qualification.

How to Negotiate With a Realtor Commission – The Jeff Barchi Team

HUD homes for sale are within your reach. If you are ready to become a new homebuyer or are entering the market as a seller, the FHA financing offers deals, including a $100 Down Payment Incentive Program and the Good Neighbor Next Door Program.

Let the Jeff Barchi team help you understand how to negotiate with a realtor commission, and close the deal on your dream home. Reach out to our team, today, to learn more!

November 10, 2018

How to Negotiate Realtor Commission When Selling or Buying

If you want to negotiate real estate commissions, it is important that you realize approximately 6% of the commission is considered a high price. Generally, you can set the percentage between 3-4 percent.

When everything is coming together during the home buying or selling process, you don’t want to lose any important ground during the negotiation wondering what the realtor commission should be. So, follow these 5 important tips on how to negotiate with a realtor commission before beginning the process.

When you have set a price for the home, you can consider the realtor commission.

Here are 5 tips to help you negotiate real estate commissions:

  • Get Prepared

The fluctuating housing market can change on both the sellers and buyers side, at any time. Get all of the paperwork you can, including data about recent sales in the neighborhood, comparable home values, and flips (if any). This can give you a good idea about the actual value of the home. This way, you will know how to negotiate a realtor commission accurately.

  • Take the Lead

If you are able to take control of the conversation during negotiations it will be much easier to get what you want. If you want to have things turn out in your favor, talking to the listing agent about your specific needs will help. If you are able to effectively communicate your needs to the listing agent, like your budget, family size, schools, employment etc., tell the listing agent and other real estate professionals. This is the best way to turn the negotiation in your favor.

  • Ask Questions

Your listing agent should be able to answer questions about their career, marketing strategy, success rate, client communication, and provide a list of references. Don’t make the mistake of choosing a listing agent without asking enough questions. It can make a BIG difference when learning how to negotiate with a realtor commission.

  • Use Any Leverage

Gaining ground in a negotiation is important, but that doesn’t mean that it is easy to do. Use anything you can to gain leverage during the negotiation process. If that means pulling up documents from home inspections, data from online searches, comparative home selling values – get the data. The more information you have during the negotiation process, the more likely you are to get the lower percentage you want.

  • Show Up In Person

You cannot assume that any strategy will actually work if you aren’t building a real relationship with your listing agent. In order to negotiate real estate commissions successfully, you must choose the right real estate agent. That way, when the time comes to negotiate realtor commission, the process is easier to navigate. Not to mention more enjoyable.

real estate negotiating

Let the team at Jeff Barchi make the home buying experience an enjoyable one. A leasing agent and other real estate professionals are there to help you, after considering these tips.

How to negotiate with a realtor commission is a simple and easy process if you follow these 5 steps, and include the team at Jeff Barchi in your home buying. Reach out to our team, today!

October 25, 2018

Final Walk Through Before Closing Checklist

Closing on a home, whether it is your first or fifth, is a very exciting milestone in your life. So many pieces of the home buying puzzle had to line up for this day to actually become a reality, and it may have seemed overwhelming at times. While your mind may be consumed with the thought that you only have to sign the papers and the keys to your new home will be in your hand, there is one last thing you need to do.

Before you sign any binding documents, doing a final walk-through of the home you are about to buy can sometimes be a lifesaver. By taking the time to do one last, thorough walk-through, you can catch any problems that would cost you money when the mortgage payments start. Here is a final walk-through checklist to help you make sure nothing is missed before closing the deal!

Walk-through Items Needed

  • Final Contract – bring this with you so that you can confirm that all the terms that were agreed upon match what is actually in and with the house. Any extras that were agreed upon should be verified by you, in person, to eliminate any potential problems.
  • Notepad – this is an obvious one but make sure to bring something to make notes on (smartphones are great for this as well).
  • Camera/Smartphone with charger – you’ll use the camera to document any unsatisfactory issues or problems that you find, and the charger for your phone is to check and see if all the outlets work throughout the house (faulty wiring can be a huge issue).
  • Inspection Summary – this will give you a detailed report of all that needed fixing and all that was fixed. This is perhaps the most important piece to bring with you on your final walk-through. Unrepaired issues can mean huge bills later on, which no one wants as a new homeowner.
  • Real Estate Agent – bringing your real estate agent with you can help clear up any confusion and they can guide you through the process as well. This is especially important for any first-time homebuyer that may not know exactly what to look for.real estate agent

Final Walk-through Checklist

  • Repairs – check for the listed repairs that were said to have been made as part of the negotiations. Be sure to ask for any warranties or receipts from the work in case anything goes wrong because you will want to be able to contact the right person or company that made the repairs.
  • General Sale Items – this is to ensure that all items included in the sale are accounted for and that any unwanted/unincluded items have been removed. You don’t want to have to take care of any junk or trash that the owner decided to leave behind for whatever reason.
  • Doors and Windows – coming home to your brand new home only to realize that all your belongings have been stolen sounds terrifying, doesn’t it? Well, this can be prevented (at least from an ease of entry standpoint) by checking to see if all of the windows and doors close and lock properly.
  • Bathroom and Kitchen Check – check these rooms thoroughly for signs of water damage or mold because mold can pop up in as little as a couple days (the closing process can be a month long). Check all the faucets and fixtures to ensure that they work properly. Oh, and don’t forget to check the laundry room, too.
  • Heat, A/C and other systems – because these systems can be fickle or require frequent repairs, you want to double-check that they all work prior to signing the paperwork, including security system, irrigation, garage door, doorbell, heating, and cooling.
  • Outside walk – check for signs of pests, landscaping issues and anything of concern with the exterior of the home.

This is a pretty thorough overview of the major things to check for when you do your final walk-through, before signing your name on the dotted line. If you’re new to the process, one of the most valuable assets you can have is an experienced real estate agent to help guide you through the home buying process.

With nearly 20 years of experience in the Phoenix-metro market, my team and I have helped hundreds of homeowners, just like you, to buy and sell with ease. We understand the unique market and pride ourselves on customer experience. Give us a call today and let us help you through the process because Jeff Barchi is the most trusted name in Phoenix real estate!

October 23, 2018

Why Isn’t My House Selling? 3 Common Reasons

If you are wondering why the house won’t sell, it could be a number of reasons. Today, there is a range of trends in the housing market that can change the way you look at your home as an investment. Some of the most current housing trends that may affect the market where you live include affordability, average home sales, mortgage rates, taxes (individual and property), and unpredictability. Regardless of these trends in home selling, there are ways to boost the probability of a sale.

2018 is still said to be one of the best times to have a home on the market. Whether you are buying, selling, or simply making changes in your real estate portfolio, you could be in a better position than you realize. Here are just a few ways to find out the answer to the question “Why isn’t my house selling?”

Reasons why the house won’t sell

There is a long list of reasons for asking “Why isn’t my house selling?” and here are the top 3 reasons why.

  1. Confidence. In small doses, this is an essential part of selling your home. However, being overly confident can complicate the home selling process. For some, the solution is simple: just be realistic.

Having a realistic set of small goals you can check off of your home selling to-do list is one of the best ways to prevent an overconfident approach to closing the deal on your home. It also may be a way to avoid often overlooked aspects of why the house won’t sell. You can become more personable by addressing signs of overconfidence in your speech, body language, and overall approach to the home selling process.

  1. Fixes. There are probably hundreds of “little” things around your home that need your attention. As you prepare your home for sale, you may need to make a detailed list of those items inside and around your home that require fixing. These things can include loose shingles or tiles, drainage clogs, wiring, grouting, painting, new carpeting, fixture replacement and more.

Make the list of to-do’s for big and small “fixes” around your home before you try to sell it, and if you notice that you are still asking why isn’t my house selling, it could be a sign that you need to add more fixes to your to-do list.house fixing

  1. The Price. If your home has been on the market and you are starting to wonder why the house won’t sell – check the price tag. There are many things to consider if you want to know how much your home is worth.

First, get a comparative market analysis, check other homes in your area for comparable values and talk to a real estate agent (that you actually like) to answer any questions about mistakes you could be making in selling your home and setting the right price. The details of current home selling trends in your area are always fluctuating, so discussing your pricing strategy is highly recommended.

If you have already put your house on the market and still the sale just isn’t happening – don’t worry. There are many different pieces to the home-selling puzzle. The market is always fluctuating, your home could have unique challenges, or the timing simply isn’t right.

Regardless, these three tips can help you pinpoint where you could be slipping up on your way to closing the deal. Follow these tips and give us a call today because we are happy to answer all of your questions about the house selling process. It will make the difference for your home sale!

June 14, 2018

Top 5 Questions to Ask Your Insurance Agent

Questions to ask your insurance agent should be at the top of a homebuyer’s to-do list. Buying a home is probably one of the largest investments a person can make. Today, the right small choices can make a BIG difference at the end of the homebuying process so don’t be shy. Add these top 5 questions to ask your insurance agent to your list and don’t forget to speak up!

Top 5 Questions to Ask Your Insurance Agent:

  1. What is Your Financial Rating?

When you are trying to choose a policy it’s important to ask the agent about the financial rating of the company. Because every insurance company is different, each one will have a different financial rating. In other words, the strength of the insurance company and it’s financial standing may not be equal to another company.

However, it is impossible to know this until you dig a little deeper into their financial standing. Remember: just because an insurance company is established doesn’t mean that they have a solid financial footing. Verify their financial rating by forming questions to ask your insurance agent like, “What is the company history?” and “Can you tell me about your claims records?” For more information, check with the State Department of Insurance.

  1. What Type of Policy is This?

Remember to consider the replacement cost versus the depreciated cost of a home before you buy it. The effect of inflation can significantly change your policy and ultimately the premium. In some markets, the cost to rebuild a home may not be in step with the initial purchase price of the home while others may include the replacement costs. Questions to ask your insurance agent may include ways to point out these limitations and apply them to your policy.

Insurance agent explaining What Type of Policy is This

  1. Does This Cover My Personal Property?

You may not be able to recover your personal property in the event of a disaster. Questions to ask your insurance agent about protections and exclusions may include, “Do you offer a Replacement Value (“RV”) clause?” If something catastrophic happens to your house having an RV rider could end up saving thousands of dollars. It usually includes furniture, computers and other technological equipment, jewelry, along with irreplaceable personal inventory. Ask your insurance agent about what is excluded from your coverage. There is nothing worse than finding a gap in coverage after disaster strikes.

  1. How Do I File a Claim?

You may not realize that there are numerous departments designed to address claims. In some cases, your agent can provide a phone number for a 24-hour claims department. There, you can speak to an agent and file your claim. In other cases, a website address may be available so you can review the process and even file online.  

  1. How Can I Save Money on My Policy?

Questions to ask your insurance agent should always include savings. There could be any number of discounts available to help you cut costs so always remember to ask about how you can save money.  

Talking to Your Home Insurance Agent

One of the most important steps in the homebuying process is also one of the most commonly overlooked: finding the right insurance agent. You see, choosing an insurance carrier isn’t enough to get the best coverage. In today’s competitive market insurance products include policies, riders, deductibles as well as exclusions and you need someone you can talk to honestly about your policy.

Ask your agent these 5 questions to get the cheapest and most comprehensive home insurance available and enjoy the home buying process.

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