How to Lower Home Insurance Premiums

Premiums for homeowners insurance are rising, but there are ways you can cut down on this very necessary expense without sacrificing coverage. There are things you can do to get your insurer to trim away dollars from your premium.

Keep your credit in check
Many insurance companies use your credit score as a factor when they are calculating what they think you should pay. A good credit score will help keep your insurance costs down.

Bundle your insurance
Buying home and car insurance from the same company will save you money. Insurance companies will give you a discount because you are giving them more of your business.

Go for a higher deductible
Raising your deductible will bring the cost of your insurance down. Be sure to choose a deductible that you are comfortable with—don’t raise it so high for a lower premium that you live in dread of something happening to your home.

Home improvement
Some home improvements and upgrades can result in a lower premium. These improvements are ones that go beyond being cosmetic and actually make your home safer. For instance, updating the wiring means that your home has less risk of electrical fire. In addition to possibly lowering your the price of your home insurance, these kinds of alterations will also give you peace of mind.

Have you heard of the 28/36 rule?

Lenders generally follow the 28/36 rule when they are looking at mortgage applications. This rule lets them decide if you really can afford the property you want to buy.

Twenty-eight
This means that you should be able to set aside up to 28% of your monthly gross income for a mortgage payment, property taxes, and insurance.
Notice that the 28% is the highest percentage of your gross income that should be used to cover basic housing expenses. As you know, your net and gross incomes are certainly not the same. The lender does not consider your utility bills or lawn maintenance when running the numbers, but you have to think about these things.

Thirty-six
For a mortgage lender to feel comfortable lending to you, they want to see that your total debt payments add up to no more than 36% of your gross income. Again, this is the highest percentage, so if your total debt is well under 36% of your gross income you will be even more attractive to lenders.

These rules are not absolute, however. But knowing them can help you if you are thinking about buying a home. Crunch the numbers so you know where you stand before you make an appointment with a lender. Click the title of this post to go to the Homes Buy Day website where you will find several useful mortgage calculators.

Bad Mulch is Bad News

We read a lot about the possibility of chemicals and pesticides contaminating the food we eat, but have you thought about the food you feed your garden?

The soil in your garden, like your digestive system, is sensitive and cannot thrive being fed just any old thing.

The right mulch can do wonders for your garden. It keeps the soil moist, deters erosion, acts as a buffer against heat and cold and keeps weeds at bay. Layering mulch over your soil during the fall can maintain your soil in the winter months.

The wrong mulch, however, can end up doing more harm than good. Mulch you buy may contain herbicides that can choke the life out of the very plants you are trying to grow.

If you buy mulch be sure to ask if it contains herbicides. Your local garden center is not out to destroy your plant life, but the store may not consider the source when stocking mulch.

One way to know exactly what is in your mulch is to make your own. Clippings from your own grass and as well as the leaves you rake can be run under the lawn mower to make mulch. You can even find a use for those pesky weeds by turning them into mulch, as long as you have cut them before they go to seed.

Selling in a Buyers Market

Our region was experiencing a sellers market during the early part of this decade. A home would attract multiple contracts and the ensuing bidding wars meant that homes were selling at high prices. It seemed that as soon as a home was put on the market, buyers swooped in to grab it.

This is not the case at the present time, but there is no need to despair. As a seller you have to be more flexible, but that doesn't mean that you should give your home away. You can sell it at a price that you are comfortable with if you make sure it is sale-ready and are willing to bend a little.

Here are 5 tips for sellers in a buyer's market:

1) Agree to pay nonrecurring closing costs
This assistance will really go over big with buyers.

2) Offer incentives up front
Don't wait until a buyer frowns at worn carpet or outdated paint colors. Tell them that you will give them an allowance for these things if they buy.

3) Be flexible about the move-in date
If a buyer wants to move in sooner, let them! You may have to camp out with a relative or find other temporary housing, but you will accomplish your goal of selling your property.

4) Get a home inspection before you put out that "For Sale" sign.
You don't want a prospective buyer to discover a major issue at their home inspection because that could kill the deal.

5) Be patient
True, a house much like yours would have been snatched up within a week in a seller's market, but do not get discouraged. It may take more time than you think to sell, but hang in there.

Head Over to the Home Show, Oct. 26-28

A little while back I mentioned the Design Happening event in New York City, and I’m sure that traveling to NYC wasn’t possible for many of you. The good news is that there will be a home improvement and design event right in our backyard this weekend.

Make plans to attend the Home Show (October 26-28) in Upper Marlboro, MD at The Show Place Arena for ideas on remodeling, landscaping, and redecorating. The show floor will have displays of the latest appliances and products as well as indoor and outdoor vignettes. Exhibitors will have samples of flooring, window treatments, fixtures, lighting, and almost anything else you can think of that goes in a house.

These events are both practical and fun. You get inspired by all of the great stuff you see and can talk with exhibitors. This is your opportunity to gather the knowledge and wisdom of a wide array of experts. Instead of traveling from store to store, you can talk to them all under one roof! You can even bring photos of the rooms or areas of your yard that you want to makeover.

If you are thinking of buying a home in the area, you can click on the title of this post to see some of our great listings. Then you can apply some of the expert advice you pick up at the Home Show to decorate your very own home!

Choose the White Paint that Fits the Room

When choosing a white paint for your home, give it as much consideration as you would when selecting a color.

You shouldn't just pick up the first white you see at the home improvement store and march to the cash register. Why? Because white paint comes in different varieties and some are better for certain rooms than others. For example, some kitchen appliances will appear dingy next to a wall painted with bright white paint.

Did you know that...

...white paint with blue undertones is good for low ceilings? (It is reflective.)
...white with pink or peach undertones can flatter the skin? (Use it in the bathroom.)


There are as many swatches of white paint as there are of colors like blue or yellow and there is a reason for this: the shade and undertones of a white paint can change the way a room and decorations look. So take your time and don't dismiss the idea of a white paint with an undertone. There are warm and cool white paints that can affect a room's lighting in different ways.

And remember: white paint really emphasizes and nicks or scuffs in a wall, so be sure to smooth over the surface before painting.

Autumn is the Time to Fall in Love with a Beach House

If you’ve been to the store at the end of a season, you know that is when everything goes on sale. Swimsuits cost less at the end of summer and sweaters are available at bargain prices come springtime.

While purchasing property cannot exactly be compared to buying clothes, the notion that you can get a bargain when buying things at the end of a season does apply in some cases. If you’re looking for a vacation or beach home, fall is a great time to look. The rest of the world will wait until spring as their thoughts turn to sand and surf. Competition for these properties is more intense at that time.

Fall is when beach house owners have closed things up for the season. They’ve enjoyed the house themselves and have left or they have received final payment from a renter. Either way, if they decide to sell, they will feel less pressured at this time of year.

Buying a beachfront property in the fall means that you are faced with preparing the house for winter right away. You also must wait a while before using it yourself or renting it out to someone else. But if you are willing to wait, you may be able to get a great deal that will have you sitting pretty next spring.

Time to Winterize p.2

Now that you have taken some steps to get your home ready for the winter, you should continue this maintenance before it gets to be too cold. There are many small tasks that if done early, can go a long way towards preventing big problems later.

Here are five more things you do now so that you can spend a cozy winter relaxing in front of the fire (or space heater)—

1. Make sure that your outdoor drains are free of leaves and debris. While you’re at it, you can also rake below your porch or deck and clear the wells of your basement windows.

2. Wipe down lawn furniture and put it into storage. If you do have adequate indoor storage for your lawn furniture, use covers, a tarp, or a plastic sheet to protect it from the elements.

3. Trim tree limbs to prevent them from causing damage if there is a storm.

4. Check for cracks in your walkways, driveway, and steps. You’ll want to patch any cracks or small holes.

5. Keep outside water faucets from freezing over by closing the valves for these faucets. Use insulation to wrap water pipes and put insulated covers on outdoor faucets.

Looming Foreclosure, can it be stopped?

Foreclosure is the buzzword of 2007. It's in the newspapers, on TV, blogs, websites and everywhere you look. There are many more properties hitting the auction block on the courthouse steps all over this country than there have been in the past. There are some very hard cases and many families will find themselves on the streets.

Many banks say they have "Loss Mitigation" or "Work Out" departments to help borrowers keep their homes. Personally, I think many are so busy that they push one stack of papers onto the next and nothing gets resolved.

Recently I have tried to work with three such departments at three different lenders and have found the process frustrating. In those cases, the bank was unwilling to listen and work out the problems with the owner. I even presented a contract to a major bank, that would have netted the bank, just a few dollars short of being paid in full. They declined to work with us and let the house go to auction.

Today that house is owned by the bank and sits empty, it's not been re marketed and the family has lost their home. If they had taken an offer I presented them, the bank would have gotten their money and I could have helped the family prevent a foreclosure from showing up on their credit history.

Today, I met with another family who feels that foreclosure will be inevitable, unless the bank is willing to work with them. I am going to report the progress or lack thereof during the upcoming weeks and months on this Blog. This client is not behind in their loan today but have informed the lender that they are unable to continue paying and certainly won't be able to pay once the adjustable rate mortgage increases next year. So far the bank has not listened to them. Next week, I will call the lender and start on a long journey of trying to save a home for a friend or produce a buyer for the home to save the family from foreclosure or bankruptcy.

If you are facing problems paying your mortgage there are things you can do to help yourself before things get out of hand.

Communicate with your lender. Let the lender know that you are having problems, ask them to help you with alternatives. Ask the lender if there is a way to reduce the payment without penalty. Ask them for suggestions that may help you reduce costs in other areas of your life so you can pay them. I assure you of one thing, the problem will not resolve itself.

Invite a professional who has experience with quick sales, foreclosures and situations like yours and get advice. Be careful, there are many, many people that say they want to help but are not trustworthy.

Research is important. Contact a legitimate credit counseling agency and ask for help. Be honest about all your finances, don't agree to pay them a fee until you fully understand what you get and what they promise to produce.

Involve trustworthy professionals to assist you. Your options are many. There are short sales, re-financing options, sale in lieu of foreclosure, restructuring of debt and bankruptcy.

Don't give up, fight to keep your house and understand your options and don't delay. Many people wait too long before talking with the lender to resolve the issues.
If the lender who holds the loans with my current client is unwilling to work with us, I am going to suggest to my client that we involve the media. We are going to be proactive and try to find a solution. If the lender is unwilling to communicate with us or work with us to solve a problem, the lender will read about itself in the media and hopefully you will follow this with me.

Please email me if you have had an unsuccessful experience with a lender regarding your home. I would love to listen to the story. As always, feel free to contact me regarding real estate questions.

Time to Winterize p. 1

In other areas of the country, temperatures start to drop the moment fall starts, but this is not always the case in our area. Sometimes the continued warm weather can lull homeowners into a false sense of security. You may have put off getting your house ready for winter, but it is time to get started.

Just as many people winterize the cars they drive to keep them working despite the chill, you need to winterize your home. With summer-like temperatures, your heating systems may be the last thing on your mind, but you do not have to wait until temperatures drop to get ready for the cold.

Besides, even though it is still warm during the day, nighttime temperatures are dropping.

October is time to:

Check that your furnace is in good working order

Make sure the area around the furnace is uncluttered

Change filters

Test for carbon monoxide

Insulate your water heater

Re-stock your supply of firewood

Exchange screens for storm windows

If you do these things at the same time each year, they will become routine. You change the oil in your car (or have someone else do it) on a regular basis, right?

A house is no different: it must be maintained to keep it in good order. Look for more tips on getting ready for winter next week.

Don’t Pick an Agent Based on Dollar Signs

We've all seen cartoons where at the thought of money, a character’s eyes change into dollar signs. Don’t let the thought of money cloud your judgment as you pick a real estate agent.

When you are ready to put your home on the market, remember that there is no right price for any home. As you interview agents, avoid making one of the worst home-selling mistakes: choosing the agent simply because that person gives you the highest estimation of your home’s worth.

Because you want to sell your home for the best price possible, it is easy to go with an agent who would price your home higher than other agents would. Ask agents to give you the reasons behind their suggested listing price and weigh the criteria they provide carefully.

Do your own research as well. Look up the prices of similar homes in your area. What are they going for? Can you find reasons why your home should go for much more than those homes (significant upgrades, less wear and tear, better access to desired neighborhood features like schools and parks).

If your home is priced too high, it may not sell and it could sit on the market for longer than necessary. Instead of reaping financial rewards, you could find yourself losing money as you continue to pay the mortgage. The energy you have to expend keeping the property ready for open houses and showings will only add to your frustration.

Think: If other agents advise similar prices for your home, why is one particular agent so certain that it will go for a lot more? Choose a knowledgeable agent who can back their suggested listing price with solid reasoning.

Design is Happening in NYC

If you're looking for design advice or would just like to learn more about design, you can head to New York City the week of October 15-21 to hear what some of the country's best and brightest minds in culture and design, including Issac Mizrahi, Chef Mario Batali and real estate maven Barbara Corcoran, are saying.

This is especially timely if you are planning to be in the Big Apple anyway because there are so many activities surrounding Home& Garden Magazine's first "Design Happening" celebration, you're sure to find a way to fit one of them into your schedule.

House & Garden teamed up with the city of New York for this premier Design Week that is slated to become an annual event.

There will be a mix of ticketed and free events and the forty-five programs centered on interior design, gardening, architecture, shopping and food are sure to stir your imagination. You'll return home with new ideas, ready to revamp your current home or you'll know just what to do with that property you've considered buying for a while now.

You can get expert tips on eco-chic shopping, join a walking tour of 19th and early 20th century Harlem townhouses, learn about how to plants can enhance your home or attend a discussion of how we can adapt design to our 21st century lifestyles.

If you do attend a ticketed event, a portion of the proceeds will go to charity. Visit the Design Happening website for the schedule and more details.

Mortgage Czar?

In light of recent unrest due to the practices of subprime mortgage lenders, some members of Congress have asked the President to appoint a "mortgage czar." They don't think that reform in the mortgage industry is coming fast enough and feel that having someone tasked with overseeing changes will help speed up the process. Of course all of Congress does not agree that this is a necessary step, so all we can do is watch and wait to see if this position goes from idea to reality.

However, you don't have to wait until they figure it out to aggressively pursue your own interests when it comes to buying a home. You can be your own "mortgage czar."

The Homes Buy Day mortgage center is a great resource to use as you prepare to enter the world of real estate. You'll find information about lenders you can trust. (Click the post title to visit our mortgage center.)

At our mortgage center you'll also find links to several excellent mortgage calculators, reputable title companies, credit tips, mortgage tips, a glossary of terms, and great hints for both home buyers and sellers. At Homes Buy Day we understand that the process of buying or selling a home can be confusing, even overwhelming. It is up to you to act in your own best interest and we want to be there to help.

No Appointment Necessary?

You want to sell your home sooner rather than later, and you do not want it to be an inconvenience to you. If you have vacated the property, then the question of whether or not to allow agents to access it through a lockbox is not a huge issue. However, if you still occupy the residence, you have to consider ease of sale as well as your own comfort level when deciding how to proceed.

The use of lockboxes varies in different regions of the country, but they are common in the Maryland/Virginia/DC area. A lockbox allows agents to enter the home and show it to potential buyers. Without one, agents and buyers must make an appointment with the owner or the owner’s agent to gain entry.

If you decide to show your house by appointment only, you have more control over who enters and when. However, you may turn off some prospective buyers who do not want to go through the hassles of trying to fit into your schedule. Also, some buyers feel pressure if the owner or listing agent is there. They don’t feel free to look around or think aloud and make comments, so keep this in mind.

Allowing agents and buyers to enter with a lockbox makes it likely that more people will see your home. However, using a lockbox does not mean it is a free-for-all. You are allowed to have some control. You can ask that agents call first. Or instead of having a key in a lockbox you can leave it at the listing agent’s office. A buyer’s agent can then get the key from the listing agent’s office. That way you can have an idea of who wants to show your home.

Whatever you choose, make sure that you are comfortable.

Home Staging: A Different Kind of Home Theater

What is home staging? Home staging is when you put those finishing touches on your home after you've made minor repairs, cleaned, and gotten rid of clutter. It is like a costume: maybe you didn’t dress your home like this every day, but you know that now it needs to shine so that it can sell.

All the world's a stage and your home is no different. You need to prepare it to perform in the real estate market by using the following home staging techniques the experts use. Here is what they do to create an ambience that will have buyers lining up with offers—

Put out bowls of succulent fruits

Use oil on wood cabinets to give then an appealing sheen

Group furniture so there is space to walk around

Draw attention to features like fireplaces and mantels with a distinctive knickknack

Keep window treatments simple

You can pay special attention to the bathroom and make it into a welcome retreat by—

Equipping it with thick, soft linen

Tying towels with ribbons

Displaying scented soaps

Putting out lotions in luxurious containers

If you clean up, but do not take the time to add these decorative touches, your home may leave prospective buyers feeling a little empty. Home staging can play up the potential of a property and make it more inviting. There was nothing wrong with your home’s everyday look, but you need to set the stage for it to sell. Buyers are drawn to a place with an atmosphere of abundance. Little things like setting out a bowl of large fruit or adding luster to the cabinets can go a long way towards swaying a buyer to consider your place over another.