All Real Estate Info Blog

Have you heard the old expression? "Insurance is there until you need it." Many people have found that out to be true. I have had several experiences where my insurance company turned out to be "not on my side." My clients can tell you horror stories about their homes and their disappointment with insurance.

It was time this week to renew my homeowner's and car insurance. So, I did a little looking on the web for info on good companies to buy from. I came accross a website called 'Fight Bad Faith Insurance Companies'. A very interesting site. They have a list of the top 50 worse and best insurance companies.

I thought that I would check into the 5 best. Some would not insure us and the rest had very high rates. So, I continued down the list. I would search for each company and read their info, only to find out that they didn't sell insurance in my state. Some were just business insurance or health. I have been told by someone at FBFIC that they will seperate the types of insurance sold soon. They are also planning on having a larger list. I will be going back to this site at least twice a year to see who has improved.

I finally did buy new insurance from a company on the good list. It is down closer to the bottom. Maybe in a few years (when my husband's accident comes off the record) I will be able to get into that top 5, but not now.

http://www.badfaithinsurance.org/

Yes, house sales are down. That is what the news media keeps telling us. That is good news for buyers. It is a buyer's market. There are fewer buyers, for whatever reason, and too many sellers. The reason for slow sales isn't interest rates. They are very low right now. Mortgage companies may have stopped giving loans to anyone who is breathing. But, there are still many loan packages for anyone with a job and some decent credit history.

We have just gone through some historic heat waves this summer. Home sales are effected by either extreme heat or cold. No one enjoys driving around and going in and out of homes when it is 90-107 degrees out. In Tennessee, we were in a serious draught. Grocery stores couldn't keep up with the bottled water sales. Our water source had algae growing in it, and it made the water smell and taste terrible.

Now that the weather is getting back to the 80's and rates are near 6%, we could see some buyer's come out of their air conditioned homes and cars to take a look around. The balance of buyers and sellers could stabilize. Or if we have a pent-up supply of buyers hit the market at once, it could turn us back to a seller's market. Just like the stock market, the housing market goes up and down. If you are thinking of buying, now is the time. It is a Buyer's Market.

Every house, new or used, must have an inspection. Don't assume that because a home has a warranty that you can save by not having an inspection. Very, very rarely do I see a house that doesn't need anything done.

New construction has it's own problems. No one has lived there to see the missed or not finished items. Here is a list of some of the more scary repairs or reasons to walk away.

Chimney flue in fireplace not connected. -Could have burnt the house down.

Gas line in attic not tightened. - Gas was leaking into attic.

Wood seal-plate was regular wood. - Termites and mold will love this.

Leaking pipes in the crawl space. - Nice way to rot out boards.

Electric wiring not hooked up right for ground fault interrupt. Ouch.

The list of what I have seen is too long to include here. Take my word for it, pay for an inspection and you will feel better about your purchase.

I am always amazed at would be buyers thinking that they can take a wait-and-see attitude on interest rates. They are sure that they will be able to time the market and get the rate at the bottom of a cycle. The problem is that rates don’t stay at the bottom long enough for you to catch them. And, how do you know if it is the bottom now? You don’t. Nobody does.

The Fed just lowered the prime .50. Will mortgage rates follow this dip? Maybe they will, maybe not. Mortgage rates are tied more to inflation and the 10 year bond. Also, the more people asking for loans the more the rates go up.

I have been in real estate for 16 years, and have been buying and selling properties for over 30 years. I remember interest rates at 18-19%. Yes, that was mortgage rates. I was able to time a loan once and catch a 6.5% rate as it was climbing from a bottom of 6.12%. I had the property under contract already and just needed to call my loan person to lock it. If I had to wait until I found a property and work out a contract, I might have ended up with 7%. Rates go down slowly, but they go up extremely fast.

The point to all of this is that I consider rates under 9% a good rate. Rates under 7% are wonderful. Rates around 6% are great rates. You should be jumping up and down. Or, you should at least be jumping into real estate. This is a buyer’s market, when you have more to choose from and can negotiate more. If you wait until rates are going back up to start looking, you will be with the rest of the crowd. It will then be a seller’s market. Still want to wait-and-see?

The first step in the home buying process is to talk with a mortgage loan originator. Get yourself pre-qualified and you will know how much of a house you should be looking to buy. It will also make you a good buyer in the seller's eyes. When you make an offer, the seller and his/her agent will want to know if you can actually close the deal.

Shop for rates and closing costs first, then select your originator. You don't want a bunch of companies pulling your credit. Even though, they say that if you do it in a 2 week period, it shouldn't lower your credit score. Be on the safe side. Pull it once.

If you are in the Nashville, TN area or moving here, please give my preferred loan person a call. Dave Cruse, with Countrywide Home Loans, is easy to talk with, and will take the time to find the right loan for your needs. Countrywide is one of the largest companies in the country and doesn't charge what agents call junk fees. I have switched some clients over to Dave from other companies. Dave has saved them thousands of dollars up front and many more by having a lower interest rate. Dave's cell is 615-310-7404 or call my office and ask for the loan person. 615-376-4500

Check out his website

http://home.countrywide.com/davidcruse