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Shopping Tips for Buying a Home Warranty
Home warranties can be attractive to home owners or buyers who are looking at purchasing a property. These service contracts can cover all of a home’s major systems, such as the furnace or air conditioner, and will cover needed repairs if the appliance breaks or damaged.
Some sellers are offering a home warranty to try to lure buyers.
But not all home warranties are the same. Experts say you should carefully weigh costs, policy allowances, and customer feedback before making a decision so that you ensure you’re getting the best deal. Home warranties cost about $250 to $500 a year.
Here are some more tips from experts in shopping for a home warranty:
- Find customer reviews. Web sites, such as homewarrantyreviews.com, provide reviews of home warranty companies. You also might check how each company is rated with your local Better Business Bureau.
- Check for extra fees. Will you have to pay a fee for service calls?
- Check the coverage allowance. Are there any exclusions to coverage? Will the allowance cover the entire cost of a broken appliance or just some of it? For example, if you have older appliances and mechanicals, will the policy cover the full cost of replacing it or just the depreciated value? If the policy only covers the depreciated value when a 20-year-old furnace dies, for example, the reimbursement may not be enough to buy a new one. Also, verify what appliances are all included in the coverage. Some companies will allow you to add coverage for swimming pools, while others won’t.
typical home in Belle Haven Estates
“The biggest thing is awareness of what the exclusions are,” Greg McBride, a senior financial analyst at Bankrate.com, told the Chicago Tribune. “The mere presence of a warranty, by nature, tends to have exclusions. Being aware of that can aid in the decision-making process.”
Source: “When Home Warranties Are Worth It,” Chicago Tribune (Feb. 8, 2011)
All-Cash Deals Offer Big Boost to Housing Market
Carlyle Towers in the skyline of Carlyle District
More buyers are paying cash for real estate. About 28 percent of sales were all-cash transactions last year, according to the National Association of REALTORS®. In October 2008, the rate was 14 percent for comparison.
Indeed, cash buyers made up more than half of all transactions in the Miami-Fort Lauderdale area alone last year, and about 42 percent were cash buyers in Phoenix in 2010–which marked a triple rate increase compared to 2008.
The more depressed the housing market, the higher the percentage of a cash deal, economists note.
Cash buyers can often get a 5 percent to 10 percent discount on the asking price of a home than a buyer using a mortgage because sellers often prefer cash deals since they close more quickly and it prevents a bank from changing its mind, says real estate pro Mohammed Siddiq in Fort Lauderdale, Fla.
“The prices were just irresistible,” said Richard Stoker, who paid cash for two condos in Miami Beach, Fla., and plans to close on one more soon. “Florida’s been hit pretty hard.”
Virginia Hall-Busch also couldn’t resist the bargains. She purchased a “short sale” historic house in Stone Mountain, Ga., for $52,500 (the home was originally on the market for $159,000).
“When you have a bad economy, it’s hard on lots of people,” Hall-Busch says. “But right now if you’ve got the money to put down on a house, long term it’s going to be good thing.”
Cities With the Most Cash Deals
The following are the cities with the highest percentage of homes purchased through all-cash deals in December 2010:
- Miami: 54.2%
- Las Vegas: 45.9%
- Tampa, Fla.: 44.6%
- Phoenix: 35.6%
- Stockton, Calif.: 29.1%
- Chicago: 23.4%
- San Diego: 23.1%
Source: “Cash Buyers Lift Housing,” The Wall Street Journal (Feb. 8, 2011)
Home Ownership Offers Plenty of Tax Benefits
Carlyle Towers Bedroom
While renting offers zero tax breaks, buying a home offers several tax benefits that can make homeownership more affordable. Real estate professionals need to be careful in providing detailed tax advice to clients to avoid lawsuits, but you can ensure clients have the information they need to understand the all of the tax benefits of home ownership.
The following is a few of the tax benefits to home ownership, according to Stephen Fishman, an author and lawyer who specializes in small business, tax and intellectual property law.
- Home mortgage interest deduction: Home owners can take an itemized deduction on interest paid on a mortgage or mortgages of up to $1 million for a principal residence and/or second home. This deduction could potentially reduce the cost of borrowing by one-third or more.
- Property tax deduction: Home owners can deduct from their federal income taxes the state and local property taxes that you pay on the home.
- Deductible home buying expenses: Several closing costs in a home purchase are also deductible, such as loan origination fees (points), prorated interest on a new loan, and prorated property taxes paid at settlement.
- $250,000/$500,000 home-sale exclusion: Home owners who have lived in their home for two of the prior five years prior to its sale do not have to pay income tax on the majority of their profit — $250,000 for single home owners and $500,000 for married homeowners who file jointly.
- 14 days of free rental income: Home owners can rent the home up to 14 days during the year and pay no tax at all on the rental income.
Source: “The Tax Benefits of Homeownership,” Inman News (Feb. 4, 2011)
Virginia Aims to Slow ‘Drive-by Foreclosures’
Virginia lawmakers are fighting against “drive-by foreclosures,” saying the foreclosure process in the state is one of the fastest in the nation and needs to be slower and have judicial review.
Bills in the Virginia House and Senate will set out to slow the state’s fast foreclosure pace by increasing the time required for foreclosure notice from two weeks to 30 or 45 days. The goal is to give borrowers more time to challenge the foreclosure if needed.
“We simply don’t have enough time to stop a foreclosure because of the fact that it’s in 10 days or seven days,” Todd Condren, a title insurance lawyer from Vienna, Va., told the House Courts of Justice Committee.
The bills also set out to require lenders to face court review before foreclosing on home owners. Lenders will also be subjected to fines if it’s found that any foreclosure was based on fraudulent documents or documents that contained any errors. The proposed bills also will have a requirement that lenders maintain updated real estate loan records in county courthouses and give borrowers an opportunity to avert foreclosure by paying off any delinquency.
Virginia’s banking lobby officials argue that slowing foreclosures and requiring updated county land record filings would just prolong the already four year housing slump.
Source: “Bill Seek Judicial Review of Foreclosures in Va., Better Mortgage Ownership Records,” The Associated Press (Jan. 17, 2011)
2011′s Strongest and Weakest Markets
Carlye Towers looking toward Masonic Memorial in Alexandria VA
Home prices are expected to rise in 40 percent of major metropolitan areas, according to Veros Real Estate Solutions, a research firm that provides information to the mortgage industry.
The markets Veros expects to be strongest are:
1. San Diego/Carlsbad/San Marcos, Calif.
2. Kennewick/Richland/Pasco, Wash.
3. Pittsburgh
4. Fargo, N.D.
5. Washington, D.C. metro area
The five markets Veros expects to be weakest are:
1. Reno/Sparks, Nev.
2. Orlando/Kissimmee, Fla.
3. Boise City/Nampa, Idaho
4. Deltona/Daytona Beach/Ormond Beach, Fla.
5. Port St. Lucie/Fort Pierce, Fla.
Source: HousingWire.com, Kerry Curry (12/22/2010)
Selling Homes With Pets
Good ole Fritz
Owning a pet, which six out of 10 U.S. households do, can be a problem for both sellers and practitioners seeking buyers.
Sellers with pets should do their best to eradicate pet odor. “Odor is the biggest obstacle,” says Trudy Severa, an associate with Long and Foster’s North Hills office in Reston, Va. “Anyone who is sensitive or with allergies is going to be put off.”
Pet hair is another turnoff for fussy people or those with allergies. A professional cleaning as well as frequent vacuuming can help.
It is also a good idea to remove the evidence of pet residents, including getting rid of dog doors, linoleum in unlikely places, even pet crates.
During showings it is smart to relocate pets because some potential buyers may find them objectionable, no matter how cute they are or where they are contained.
Source: Washington Times, Lisa Rauschart (12/03/2010)
Title Insurance: More Important Than Ever
Starting a closing with Ryan Stuart
Understanding the tenets of title insurance is especially important considering the turmoil in the real estate industry.
Title insurance is intended to protect the insured from improper titling, including defects in foreclosure proceedings, forgery, or impersonation or cases in which no title is legally conveyed. Other defects are partial, such as a neighboring fence or garage encroaching on the insured person’s property.
The title insurance industry recently set down strict guidelines for when and if they will insure a title to a property on which there has been a foreclosure.
The buyer should be equally vigilant, insisting on a 60-year search and paying for an owner’s policy as well as the lender’s policy that the bank will demand.
Source: Washington Post, Harvey S. Jacobs (11/27/2010)
A home for every budget in Arlington VA
Arlington VA is located directly across the Potomac River from Washington DC. Arlington is a preferred place to live because of its central location in the Washington DC metropolitan area and Arlington’s ease of access by car and public transportation. There are both single-family homes and condominiums in abundance in Arlington. Some of the villages of Arlington include:
- Arlington Ridge — Fine homes and manors
- Aurora Highlands — Homes and cottages near Crystal City
- Ballston — Homes and condos on the metro
- Clarendon — Convenience and quirkiness
- Court House — At the Arlington County Courthouse
- Crystal City —A mix of commerce and residential near the Pentagon
- Fairlington — Quaint and cute
- Rosslyn —At the gateway to Washington DC
- Shirlington —An artsy neighborhood inside the Beltway
But we’ve taken the time to sort every home for sale in the MLS by price. Check out the following links to find the home that will suit your needs and budget.
- Arlington Homes Priced between $100,000 to $200,000
- Arlington Homes Priced between $200,000 to $300,000
- Arlington Homes Priced between $300,000 and $400,000
- Arlington Homes Priced between $400,000 to $500,000
- Arlington Homes Priced between $500,000 to $600,000
- Arlington Homes Priced between $600,000 to $700,000
- Arlington Homes Priced between $700,000 to $800,000
- Arlington Homes Priced between $800,000 to $900,000
- Arlington Homes Priced between $900,000 to $1,000,000
- Arlington Homes Priced between $1,000,000 to $1,100,000
- Arlington Homes Priced between $1,100,000 to $1,200,000
- Arlington Homes Priced between $1,200,000 to $1,300,000
- Arlington Homes Priced between $1,300,000 to $1,400,000
- Arlington Homes Priced between $1,400,000 to $1,500,000
- Arlington Homes Priced between $1,500,000 to $1,600,000
- Arlington Homes Priced between $1,600,000 to $1,700,000
- Arlington Homes Priced between $1,700,000 to $1,800,000
- Arlington Homes Priced between $1,800,000 to $1,900,000
- Arlington Homes Priced between $1,900,000 to $2,000,000
A little thank you goes a long way …
Lola, Urban and Will
One of the best things about being a real estate professional is that many of the folks we serve become friends. For a period of time when we managed Lola’s condo in West End Alexandria. Eventually, she decided to move to Sweden with her husband Urban so she asked us to help her with the sale of her property. The overseas transaction was just one of the difficulties with this sale, but in the end it all turned out for the best.
Will, Lola and Julie
Gifts from Sweden
Urban and Lola live in Stockholm Sweden now—Urban is Swedish afterall. But When Urban and Lola came to Northern Virginia for the holidays and to visit family they were kind enough to bring gifts. The little thank you‘s of life make a big difference.
Christmas at Mount Vernon
Mount Vernon Estate is decking the halls for “Christmas at Mount Vernon”, a joyful daytime program at the Mount Vernon Gardens and Estate from late November through January.
Christmas at Mount Vernon means themed decorations (including 12 Christmas trees), a gingerbread Mount Vernon, historical chocolate-making demonstrations, and 18th-century dancing will be offered.
Visit Aladdin, George Washington’s Christmas Camel, take special Mansion tours, and make a Chocolate Toast to Christmas, with our 18th-century-style chocolate drink, a Washington family favorite.
- Date(s):11/26/2010 – 01/06/2011
- Recurring daily
- Time: 9:00 a.m. – 4:00 p.m.
- Location: Mount Vernon: George Washington’s Estate & Gardens Mount Vernon Estate & Gardens, Mount Vernon Estate & Gardens, 3200 Mount Vernon Memorial Highway, Mount Vernon, VA 22121
- Phone: (703) 780-2000
