Purchasing foreclosed homes in desirable areas at below-market values can be a sound investment strategy. Appreciation on their original prices may be tax-free.  Buying foreclosed rental properties can provide positive cash flow, as well as valuable tax deductions. On the other hand, buying a foreclosure involves homework, patience, and a certain amount of luck. For those wishing to get a bargain house through the foreclosure process, it’s best to learn the basics.

In summary, there are a number of ways to go about buying a foreclosed home, and buyers should exercise patience, persistence and careful planning before buying foreclosed properties.

There are a number of measures that homeowners can take to ensure that their homes are not attractive to burglars. If clients are concerned about break-ins, inspectors can pass on to them basic strategies for burglar-proofing their homes.

Some interesting statistics concerning break-ins in the United States:

• InterNACHI estimates that theft makes up more than three-quarters of all reported crime. 

• In 2005, law enforcement agencies reported more than 2 million burglary offenses.

According to a survey, burglars enter homes through the following locations:

 

• 81% enter through the first floor;
• 34% of burglars enter through the front door;
• 23% enter through a first-floor window;
• 22% enter through the back door
• 9% enter through the garage;
• 4% enter through the basement;
• 4% enter through an unlocked entrance;
• 2% enter through a storage area; and
• 2% enter anywhere on the second floor

• Dogs are excellent burglar deterrents. For clients who cannot own dogs, they can place “Beware of Dog” signs around the yard for nearly the same effect.
• If no security system is installed, the client can post security alarm stickers around the yard.

In summary, there are a number of tactics that inspectors can pass on to their clients that will help safeguard their homes from break-ins.

The aim should be to insulate the living space of the house while allowing the roof to remain the same temperature as the outside. This prevents cold outside air from traveling through the attic and into the living area of the home. In order to accomplish this, an adequate venting system must be in place to vent the roof by allowing air flow to enter through soffit-intake vents and out through ridge vents, gable vents or louver vents.

If there is currently a floor in the attic, it will be necessary to pull up pieces of the floor to install the insulation. In this case, it will be easier to use a blower and loose-fill insulation to effectively fill the spaces between the joists. If you choose to go with blown-in insulation, you can usually get free use of a blower when you purchase a certain amount of insulation.

When installing fiberglass insulation, make sure that you wear personal protective equipment, including a hat, gloves, and a face mask, as stray fiberglass material can be inhaled and cause irritation to the lungs, eyes and exposed skin.

Before you begin actually installing the insulation, there is some important preparation involved in order to ensure that the insulation is applied properly to prevent hazards and to achieve maximum effectiveness.

If you are installing insulation with a vapor barrier, make sure it faces the interior of the house. Another option for a vapor barrier is to take sheets of plastic and lay them between the ceiling joists.  Then, using a staple gun, tack them to the sides of the joists.

Loose-fill insulation, either fiberglass or cellulose, is also a good option in cases where there is no attic floor. In such circumstances, you won’t need a blower, and can simply place the insulation between the joists by hand. You may also wish to even out the spread with a notched leveler.

When inspecting an attic, ensuring that there is a free flow of outside air from the soffits to the roof vents is key to a well-functioning insulation system. The lack of adequate ventilation in insulated attics is a common defect. When inspecting the attic, look behind the baffles to see if there is any misplaced insulation obstructing the natural air flow, and check the roof vents to make sure that outside air is exhausting properly. Check for a moisture barrier under the insulation.  Also, look for spots where the insulation is compacted; it may need to be fluffed out.  In the case of loose-fill insulation, check for any thinly spread areas that may need topping up. Finally, look for dirty spots in the insulation where incoming air is admitting dust into the material.

By KEVIN CHIRI
Slidell news bureau

SLIDELL – With a unified Louisiana congressional delegation pushing hard in Washington to halt the planned increases for flood insurance, St. Tammany Parish has been named one of five parishes in the state that FEMA has selected to determine flood hazards by utilizing non-accredited levee systems.
Louisiana residents have been expecting unbelievable increases in flood insurance premiums after the Biggert-Waters Flood Insurance Reform Act was approved by Congress in 2012. Some of the more extreme examples have been documented with homes going from $600 annual premiums to over $28,000.
As the reality of the Reform Act began to unfold in 2013, a bi-partisan effort began to halt the expected increases until a more realistic plan could be crafted. Federal lawmakers pointed out the biggest flaws in the new law as FEMA not allowing levees or flood protection measures to be considered in rate determination unless they were Corps of Engineers-approved levees and drainage systems.
Additionally, homes that had been built according to proper code were facing large increases, even though homeowners did everything they were told in raising or constructing their house. Legislators were seeking grandfathering on those premium hikes.

Louisiana lawmakers have pulled together to seek reconsideration of the Biggert-Waters Act and have gotten support from Congress as the facts about the new law were laid out. Additionally, the pressure from the state has led to FEMA Associate Administrator David Miller agreeing to make a trip to Louisiana on August 8 to meet with parish presidents here.
“FEMA is currently struggling with how to give proper credit to all flood control features,” La. Rep. David Vitter said. “Flood insurance is vital for businesses and families in Louisiana. We need to make sure all new maps are 100 percent accurate and properly credit every levee and flood control feature so people who have been following the rules aren’t priced out of their homes because flood insurance rates increase so dramatically.”
U.S. Rep. Steve Scalise told an East St. Tammany Chamber business meeting that a bill to postpone some of the expected increases passed the House of Representatives with a 2-to-1 margin, making it clear congressional members in Washington are agreeing the bill needs rewriting.
Additionally, U.S. Sen. Mary Landrieu said that on Tuesday, the full Senate Appropriates Committee passed her legislation to prevent FEMA from raising rates on grandfathered properties, at least for now.
Vitter and Scalise joined with Landrieu and 23 other lawmakers in Congress to call on FEMA to rescind flawed flood maps that are scheduled to be released later this year, without considering local levees. When those final flood maps are released, insurance companies will use them to determine rates. However, the key point of contention has been getting FEMA to allow non-accredited levee systems to be considered when drafting those maps.
The first step in that direction seemed to come this week when FEMA agreed to use five parishes in a pilot program to reconsider other non-accredited levee systems, with St. Tammany among those parishes selected.
“Communities have made significant investments to protect themselves (building local levees), but currently aren’t getting any credit from FEMA,” Landrieu said. “For too long, FEMA has failed to recognize the reality on the ground along the coast; the new guidelines for these parishes are an important opportunity to improve FEMA’s understanding of coastal Louisiana’s unique topography and conditions.”
FEMA is relenting to the pressure from Louisiana lawmakers, acknowledging in a previous letter that there are shortcomings in the new policy, and agreeing to make changes that would increase the accuracy and reliability of flood maps.
John Case, co-owner of Slidell’s Lowry, Dunham, Case & Vivien insurance agency, gave one example of the pending changes noting “I had a family in their 50s who built a house 10 years ago, intending it to be their final home. They have paid $1,556 a year for flood insurance, but if the law goes through, their premium will go up to $14,857. They will not be able to keep their home.”
That possible scenario, if current flood maps are approved, would have a chilling effect on the national economy, local banker Pete Cavignac said, noting that many homeowners would simply abandon their houses and let them go back to the mortgage company since they could no longer afford their monthly note.
That would create a ripple throughout numerous areas of the national economy with the potential effect on the country worse than any previous banking disaster, he said.
St. Tammany Parish President Pat Brister has been part of an eight-member Southeast Louisiana coalition that has already made several trips to Washington to also lobby for the case of residents here.
The Biggert-Waters Act was passed last year to help the national flood insurance program become solvent. Billions of dollars in claims from natural disasters in the past decade led Congress to begin looking closer at the program, which had previously subsidized homeowners in high risk areas. Once the final new flood maps are drawn, there will reportedly be no more subsidized policies and individuals will be paying a true premium for the risk of flooding, wherever they live.

 

Wood-destroying insects and other organisms can cause serious problems in the wooden structural components of a house, and may go undetected for a long period of time.

All chemical soil treatments, bait systems, and chemical wood treatment must be approved by the Environmental Protection Agency (EPA) and applied in accordance with the EPA label’s instructions. In some cases, it is not feasible for a builder to arrange for soil treatment. In this regard, the International Residential Code (IRC) by the International Code Council allows a builder to utilize pressure-treated wood as a measure of termite protection. If pressure-treated wood is used, however, it must be used in all framing members up to and including the top plate of the first floor’s level wall. This includes the sub-floor and floor joists of the first floor. The use of pressure-treated wood in only the sill plate is not acceptable. In such cases, the builder must provide the lender with a letter stating that the house is protected from termites by the use of pressure-treated wood. The builder must also provide the home buyer with a one-year warranty against termites. The use of post-construction soil treatment where the chemicals are applied only around the perimeter of the foundation is NOT acceptable in new construction.

Subterranean termites are the most damaging insects of wood. Their presence is hard to notice, and damage usually is found before the termites are

 seen. Prevent infestations because if they occur, they will almost always need professional pest-control service.

If your family gets drinking water from a private well, do you know if your water is safe to drink? What health risks could you and your family face? Where can you go for help or advice? The EPA regulates public water systems; it does not have the authority to regulate private drinking water wells. Approximately 15% of Americans rely on their own private drinking water supplies, and these supplies are not subject to EPA standards, although some state and local governments do set rules to protect users of these wells. Unlike public drinking water

systems serving many people, they do not have experts regularly checking the water’s source and its quality before it is sent to the tap. These households must take special precautions to ensure the protection and maintenance of their drinking water supplies.

There are three types of private drinking water wells: dug, driven, and drilled. Proper well construction and continued maintenance are keys to the safety of your water supply. Your state water-well contractor licensing agency, local health department, or local water system professional can provide information on well construction. The well should be located so rainwater flows away from it. Rainwater can pick up harmful bacteria and chemicals on the land’s surface. If this water pools near your well, it can seep into it, potentially causing health problems. Water-well drillers and pump-well installers are listed in your local phone directory. The contractor should be bonded and insured. Make certain your ground water contractor is registered or licensed in your state, if required. If your state does not have a licensing/registration program, contact the National Ground Water Association.

 

The largest, single investment most consumers make is in their homes. The consumer can protect their home, possessions, and liability with a homeowner’s insurance policy. The homeowner’s insurance policy is a package policy that combines more than one type of insurance coverage in a single policy. There are four types of coverages that are contained in the homeowner’s policy: dwelling and personal property; personal liability; medical payment; and additional living expenses.

 

Property damage coverage helps pay for damage to your home and personal property. Other structures, such as a detached garage, a tool shed, and any other building on your property are usually covered for 10% of the amount of coverage on your house.

Personal property coverage will pay for personal property, including household furniture, clothing, and other personal belongings. The amount of insurance coverage is usually 50% of the policy limit on your dwelling. The coverage is also limited by the types of loss listed in the policy. The coverage only pays the current cash value of the item destroyed, unless you purchase “replacement cost” coverage. Your homeowner’s policy also provides off-premises coverage. This means that the policy covers your belongings against theft even when they are not inside your home.

 

Homeowners’ policies provide personal liability coverage that applies to non-auto accidents on and off your property if the injury or damage is caused by you, a member of your family, or your pet. The liability coverage in your policy pays both for the cost of defending you and paying for any damages that a court rules you must pay. Liability insurance does not have a deductible that you must meet before your insurer begins to pay losses. The basic liability coverage is usually $100,000 for each occurence. You can request higher limits that are available for an additional cost.

 

Medical payment coverage pays if someone outside your family is injured at your home, regardless of fault. This includes payment for reasonable medical expenses incurred within one year from the date of loss for a person who is injured in an accident in your home. The coverage does not apply to you and members of your household. The medical-payments portion of your homeowner’s policy will also pay if you are involved in the injury of another person away from your home in some limited circumstances. Medical payments coverage limits are generally $1,000 for each person.

 

If it is necessary for you to move into a motel or apartment temporarily because of damage caused by a peril covered in your policy, your insurance company will pay an amount up to 20% of the policy limit on your dwelling for these expenses. If you move in temporarily with a friend or relative and do not have any extra expenses, you will not be paid any addditional living expenses by your insurance company.

 

If you operate a home business full- or part-time, you might be uninsured and not realize it. Many home business owners believe that their homeowner’s insurance policy covers all of their home business needs. You should not assume that your homeowner’s insurance policy will cover your home business. Your homeowner’s policy may provide coverage, but probably only a maximum of $2,500 for business equipment in the home, and $250 away from the premises.

The price you pay for your homeowner’s insurance can vary by hundreds of dollars, depending on the insurance company you buy your policy from. Here are some things to consider when buying homeowner’s insurance.

 

It will take some time, but could save you a good sum of money. Ask your friends, check the Yellow Pages, and contact your state insurance commission. The National Association of Insurance Commissioners has information to help you choose an insurer in your state, including complaints that are filed by consumers. States often make information available on typical rates charged by major insurers, and many states provide the frequency of consumer complaints by company. Also check consumer guides, insurance agents, companies, and online insurance quote services. This will give you an idea of price ranges and tell you which companies have the lowest prices. But don’t consider price alone. The insurer you select should offer a fair price and deliver the quality of service you would expect if you needed assistance in filing a claim. So, in assessing service quality, use the complaint information from state regulatory agencies and talk to a number of insurers to get a feeling for the type of service they provide. Ask them what they would do to lower your costs. When you’ve narrowed the field to three insurers, get price quotes.

 

Deductibles are the amount of money you have to pay toward a loss before your insurance company starts to pay a claim, according to the terms of your policy. The higher your deductible, the more money you can save on your premiums. Nowadays, most insurance companies recommend a deductible of at least $500. If you can afford to raise your deductible to $1,000, you may save as much as 25%. Remember, if you live in a disaster-prone area, your insurance policy may have a separate deductible for certain kinds of damage. If you live near the coast in the East, you may have a separate windstorm deductible; if you live in a state vulnerable to hailstorms, you may have a separate deductible for hail; and if you live in an earthquake-prone area, your earthquake policy has a deductible.

 

The land under your house isn’t at risk from theft, windstorm, fire and the other perils covered in your homeowner’s policy. So don’t include its value in deciding how much homeowner’s insurance to buy. If you do, you will pay a higher premium than you should.

 

Some companies that sell homeowner’s, auto and liability coverage will take 5% to 15% off your premium if you buy two or more policies from them. But make certain this combined price is lower than buying the different coverages from different companies.

 

Find out from your insurance agent or company representative what steps you can take to make your home more resistant to windstorms and other natural disasters. You may be able to save on your premiums by adding storm shutters, reinforcing your roof, and buying stronger roofing materials. Older homes can be retrofitted to make them better able to withstand earthquakes. In addition, consider modernizing your heating, plumbing and electrical systems to reduce the risk of fire and water damage.  Even small measures, such as keeping a fire extinguisher in your kitchen, will often qualify you for a discount on your premiums and save you money in the long run.

 

You can usually get discounts of at least 5% for a smoke detector, burglar alarm and dead-bolt locks. Some companies offer to cut your premium by as much as 15% to 20% if you install a sophisticated sprinkler system and a fire and burglar alarm that rings at the police, fire or other monitoring stations. These systems aren’t cheap, and not every system qualifies for a discount. Before you buy such a system, find out what kind your insurer recommends, how much the device would cost, and how much you’d save on premiums.

 

Companies offer several types of discounts, but they don’t all offer the same discount or the same amount of discount in all states. For example, since retired people are at home more than working people, they are less likely to be burglarized and may spot fires sooner, too. Retired people also have more time for maintaining their homes. If you’re at least 55 years old and retired, you may qualify for a discount of up to 10% at some companies. Some employers and professional associations administer group insurance programs that may offer a better deal than you can get elsewhere.

 

Establishing a solid credit history can cut your insurance costs. Insurers are increasingly using credit information to price homeowners’ insurance policies. In most states, your insurer must advise you of any adverse action, such as a higher rate, at which time you should verify the accuracy of the information on which the insurer relied. To protect your credit standing, pay your bills on time, don’t obtain more credit than you need, and keep your credit balances as low as possible. Check your credit record on a regular basis, and rectify any errors promptly so that your record remains accurate.

 

If you’ve kept your coverage with a company for several years, you may receive a special discount for being a long-term policyholder. Some insurers will reduce their premiums by 5% if you stay with them for three to five years, and by 10% if you remain a policyholder for six years or more. But make certain to periodically compare this price with that of other policies.

 

You want your policy to cover any major purchases or additions to your home. But you don’t want to spend money for coverage you don’t need. If your five-year-old fur coat is no longer worth the $5,000 you paid for it, you’ll want to reduce or cancel your floater — defined as extra insurance for items whose full value is not covered by standard homeowners’ policies, such as expensive jewelry, high-end computers and valuable art work — and pocket the difference.

 

If you live in a high-risk area — say, one that is especially vulnerable to coastal storms, fires or crime — and have been buying your homeowner’s insurance through a government plan, you should check with an insurance agent or company representative, or contact your state commission of insurance for the names of companies that might be interested in your business. You may find that there are steps you can take that would allow you to buy insurance at a lower price in the private market.

 

You may pay less for insurance if you buy a house close to a fire hydrant or in a community that has a professional rather than a volunteer fire department. It may also be cheaper if your home’s electrical, heating and plumbing systems are less than 10 years old. If you live in the East, consider a brick home because it’s more wind-resistant. If you live in an earthquake-prone area, look for a wooden frame house because it is more likely to withstand this type of disaster. Choosing wisely could cut your premiums by 5% to 15%.

Check the CLUE (Comprehensive Loss Underwriting Exchange) report of the home you are thinking of buying. These reports contain the insurance-claim history of the property and can help you judge some of the problems the house may have. Remember that flood insurance and earthquake damage are not covered by a standard homeowner’s policy. If you buy a house in a flood-prone area, you’ll have to pay for a flood insurance policy that costs an average of $400 a year. The Federal Emergency Management Agency (FEMA) provides useful information on flood insurance on its Web site at www.fema.gov/nfip. A separate earthquake policy is available from most insurance companies. The cost of the coverage will depend on the likelihood of earthquakes in your area.

If you have questions about insurance for any of your possessions, be sure to ask your agent or company representative when you’re shopping around for a policy. For example, if you run a business out of your home, be sure to discuss coverage for that business. Most homeowners’ policies cover business equipment in the home, but only up to $2,500, and they offer no business liability coverage. Although you want to lower your homeowner’s insurance cost, you also want to make certain you have all the coverage you need.

 

If a fire, flood, earthquake, or some other natural disaster were to damage or destroy your home, would you have the right insurance coverage to rebuild your house? Based on the questions consumers ask most frequently, this list explains what is and is not covered in a standard homeowner’s policy. Where gaps in coverage exist, it tells you how to fill them. To simplify explanations, assume that you have a policy known as Homeowners-3 (HO-3), the most common type of homeowner’s policy in the United States. Find out what type of homeowner’s policy you have. If you have a different policy, you should review your options in question #17.

 

1.  Am I covered for direct losses due to fire, lightning, tornadoes, windstorms, hail, explosions, smoke, vandalism and theft?

 

Yes. The HO-3 provides broad coverage for these and other disasters or “perils,” as they are called in the policy, including all those listed in the question. You should check the dollar limits of insurance in your policy, and make sure you are comfortable with the amount of insurance you have for specific items. Also, if you live near the Atlantic or Gulf Coasts, there may be some restrictions on your coverage for wind damage. Ask your agent about windstorm/hurricane deductibles. In areas prone to hailstorms, you may have a specific hail-damage deductible.

 

The standard policy provides only from $1,000 to $2,000 for theft of jewelry. If your jewelry is worth a lot more, you should purchase higher limits. You may wish to add a floater to your policy to cover specific pieces of jewelry and other expensive possessions, such as paintings, electronic equipment, stamp collections and silverware, for example. The floater will provide both higher limits and protect you from additional risks not covered in your standard policy.

 

If the cost of rebuilding your home is less than or equal to $150,000, you would have enough coverage. The HO-3 policy pays for structural damage on a replacement-cost basis. If the cost of replacing your home is, say, $120,000, then that is all the insurance you need. On the other hand, if the cost of rebuilding your home is $180,000, then you will be short $30,000.

If you live in an area that is frequently hit by major storms, ask your insurance company about an extended or guaranteed replacement-cost policy. This will provide a certain amount over the policy limit to rebuild your home, so that if building costs go up unexpectedly due to high demand for contractors and materials, you will have the extra funds to cover the bill.

If you choose not to rebuild your home, you will receive the replacement cost of your home, less depreciation. This is called “actual cash value.” You should make sure that the amount of insurance you have will cover the cost of rebuilding your house. You can find out what this cost is by talking to your real estate agent or builders in your area.

Do not use the price of your house as the basis for the amount of insurance you purchase. The market price of your house includes the value of the land on which the house sits. In almost all cases, the land will still be there after a disaster, so you do not need to insure it. You only need to insure the structure.

 

No. If you live in a flood-prone area, it may be wise to purchase flood insurance. Flood insurance is provided by the federal government under a program run by the Federal Insurance Administration. In some parts of the country, homes can be damaged or destroyed by mudslides. This risk is also covered under flood policies. Contact your agent or company representative to get this insurance, or call the FEMA at 1-800-427-4661 or visit www.fema.gov.

 

Yes. The HO-3 covers you for accidental discharge of water from a plumbing system. You should check your plumbing and heating systems once a year. While you are covered for damage, who needs the mess and hassle?

 

No. Water seepage is excluded under the HO-3. And if the water seepage is not due to a flood, you will not be covered under a flood policy. Seepage is viewed as a maintenance issue and is not covered by insurance. You should see a contractor about waterproofing your basement.

 

No. Earthquake coverage is sold as additional coverage to the homeowner’s policy. To find out whether you should buy this insurance, talk to your agent or company representative. The cost of this coverage can vary significantly from one area to another, depending on the likelihood of a major earthquake.

Yes. The policy will pay for damages if a fall or other accident on your property is the result of your negligence. It will also pay for the legal costs of defending you against a claim. Also, the medical-payments part of your homeowner’s policy will cover medical expenses if a neighbor or guest is injured on your property. You should check to see how much liability protection you have. The standard amount is $100,000. If you feel you need more, consider purchasing higher limits.

 

Yes. You are covered for the damage to your roof. You are also covered for the removal of the tree, generally up to a limit of $500. You should cut down dead or dying trees close to your house and prune branches that are near your house. It’s true that your insurance covers damage, but falling trees and branches can also injure your family. Ask your InterNACHI inspector about problem trees during your next inspection.

Your trees and shrubs are covered for losses due to risks such as vandalism, theft and fire, but not wind damage. However, if a fallen tree blocks access to your home, you may be covered for its removal. Decide if you need extra insurance for the trees, plants and shrubs on your property. You may be able to purchase extra insurance which will not only cover the cost of removing fallen trees, but will also cover the cost of replacing trees and other plants.

 

The general answer is no. However, there are a number of exceptions. In some states, food spoilage is covered under the homeowner’s policy. In addition, if the power loss is due to a break in a power line on or close to your property, you may be covered. You should check with your agent to find out whether you are covered for food spoilage in your state. If not, you can add food-spoilage coverage to your policy for an additional premium.

 

If they’re full-time college students and part of your household, your insurance generally provides some coverage in a dorm, typically 10% of the contents’ limit. If they live off-campus, some companies may not provide this limited coverage if the apartment is rented in the student’s name.

Yes. The HO-3 covers your personal property while it is anywhere in the world. However, if your golf clubs are old, you will get only their current value, which may not be enough to purchase a new set. Consider buying a replacement-cost endorsement for your personal property. This way, you will get what it costs to replace the golf clubs, less your deductible.

Whether or not you are covered for either theft or liability depends on the size of the boat, the horsepower of the engine, and your insurance company. Coverage for small boats under homeowners’ policies varies significantly. Ask your insurance representative whether you need a boat owner’s policy.

 

No. The HO-3 excludes costs mandated by ordinances and laws that regulate the construction of buildings. You can purchase an ordinance or law endorsement. This will cover the extra costs involved in meeting new building codes.

 

Sometimes. The term “acts of God” is not specifically mentioned in homeowners’ insurance policies. It usually refers to natural disasters, such as hurricanes and tornadoes, as opposed to man-made acts, such as theft and auto accidents. Some natural disasters, such as damage from windstorms, hail, lightning, and volcanic eruptions, are covered under homeowner’s insurance. Damage from floods and earthquakes is not.

 

Review your coverage with your agent. Some older policies provide less coverage than the HO-3. They may not provide coverage for water damage, theft or liability. They may also provide coverage for the house on an actual cash-value basis, rather than a replacement-cost basis.

“Actual cash value” means replacement cost less depreciation. For example, if your roof is destroyed in a storm, the insurance will pay only for the cost of a new roof less the amount of depreciation of the old roof. If your roof was in great shape, this deduction will not be large. However, if the roof was old and worn out, the deduction for depreciation may be significant. You should try to get an HO-3.

Deadly Mistake #1: Thinking you can’t afford it.

 

Many people who thought that buying the home they wanted was simply out of their reach are now enjoying a new lifestyle in their very own homes.

 

Buying a home is the smartest financial decision you will ever make.  In fact, most homeowners would be broke at retirement if it wasn’t for one saving grace — the equity in their homes.  Furthermore, tax allowances favor home ownership.

Real estate values have always risen steadily.  Of course, there are peaks and valleys, but the long-term trend is a consistent increase.  This means that every month when you make a mortgage payment, the amount that you owe on the home goes down and the value typically increases.  This “owe less, worth more” situation is called equity build-up and is the reason you can’t afford not to buy.

 

Even if you have little money for a down payment or credit problems, chances are that you can still buy that new home.  It just comes down to knowing the right strategies, and working with the right people.  See below.

Deadly Mistake #2: Not hiring a buyer’s agent to represent you.

 

Buying property is a complex and stressful task.  In fact, it is often the biggest, single investment you will make in your lifetime.  At the same time, real estate transactions have become increasingly complicated.  New technology, laws, procedures, and competition from other buyers require buyer agents to perform at an ever-increasing level of competence and professionalism.  In addition, making the wrong decisions can end up costing you thousands of dollars.  It doesn’t have to be this way!

 

Work with a buyer’s agent who has a keen understanding of the real estate business and the local market.  A buyer’s agent has a fiduciary duty to you.  That means that he or she is loyal only to you and is obligated to look out for your best interests.  A buyer’s agent can help you find the best home, the best lender, and the best home inspector in your area.  That inspector should be an InterNACHI-certified home inspector because InterNACHI inspectors are the most qualified and  best-trained inspectors in the world.

Trying to buy a home without an agent or a qualified inspector is, well… unthinkable.

 

 

Deadly Mistake #3: Getting a cheap inspection.

 

Buying a home is probably the most expensive purchase you will ever make.  This is no time to shop for a cheap inspection.  The cost of a home inspection is small relative to the value of the home being inspected.  The additional cost of hiring a certified inspector is almost insignificant by comparison.  As a home buyer, you have recently been crunching the numbers, negotiating offers, adding up closing costs, shopping for mortgages, and trying to get the best deals.  Don’t stop now!  Don’t let your real estate agent, a “patty-cake” inspector, or anyone else talk you into skimping here.

 

InterNACHI front-ends its membership requirements.  InterNACHI turns down more than half the inspectors who want to join because they can’t fulfill the membership requirements.

 

InterNACHI-certified inspectors perform the best inspections, by far.  InterNACHI-certified inspectors earn their fees many times over.  They do more, they deserve more and — yes — they generally charge a little more.  Do yourself a favor…and pay a little more for the quality inspection you deserve.

 

 

• The key to mold control is moisture control.
• If mold is a problem in your home, you should clean up the mold promptly and fix the water problem.
• It is important to dry water-damaged areas and items within 24 to 48 hours to prevent mold growth.

Molds are part of the natural environment.  Outdoors, molds play a part in nature by breaking down dead organic matter, such as fallen leaves and dead trees.  But indoors, mold growth should be avoided.  Molds reproduce by means of tiny spores; the spores are invisible to the naked eye and float through outdoor and indoor air.  Mold may begin growing indoors when mold spores land on surfaces that are wet.  There are many types of mold, and none of them will grow without water or moisture.

Swimming pools should always be happy places. Unfortunately, each year thousands of American families confront swimming pool tragedies, drownings and near-drownings of young children. At InterNACHI, we want to prevent these tragedies. These are guidelines for pool barriers that can help prevent most submersion incidents involving young children. These guidelines are not intended as the sole method to minimize pool drowning of young children, but include helpful safety tips for safer pools.