CLUE – an acronym for Comprehensive Loss Underwriting Exchange – is a national database recording property claims for insurance companies.   All of your property claims to your insurance company are listed and kept for 5 years.  The report shows the date, amount of loss and the type of loss – including claims for mold, water damage & fire damage.   It’s been compared to a credit report on your home.   If an insurer decides that the report indicates a home is too risky he can refuse to insure that home – and without homeowner’s insurance, your buyer cannot obtain a mortgage.

There are some steps you can take to avoid a contract falling through just before a closing.

• Sellers should order a CLUE Report before listing the property. That way you are prepared to deal with the issue and have an opportunity to correct any mistakes on the report.  You can order a report through Choice Trust.
• Even if your home shows up on a CLUE Report, your buyer probably can purchase a homeowner’s insurance policy – but may have to have to do so through an independent insurance agent who has access to numerous policies and the cost may be higher.   As a seller it is better  to request a report ahead of time, consider what options are available to mitigate it – and not take a chance only to lose the sale of your home by “hoping” for the best outcome.

There is an informative article on MSN Money about CLUE Reports and homeowners insurance.  Any questions?  Please contact me at cheryl@liagent.com.

Can’t find out who owns your mortgage or equity loan? Trying to arrange a Short Sale with a bank and don’t know who to contact? Are you being evicted or threatened with foreclosure and your lien is recorded in MERS’s name?
Who is MERS? MERS – Mortgage Electronic Registration System – is a registry service for lenders – which eliminates the need to record changes in a mortgage ownership. And it’s been working pretty well for them. Pretty frustrating if you’re trying to track down the actual owner of your mortgage or equity loan. I know as an agent I’ve had some frustrating experiences with them this year. However, there was a recent court decision in Kansas which may portend a further cracking of the system.

Gretchen Morgenson of The New York Times wrote an excellent article today about the problems consumers have encountered and some recent court cases which have ruled against MERS.  If you cannot access the link, here is the article in a .pdf format.  About time…

Why didn’t my home sell?  Tip:  A good 1st impression goes a long way!

You’ve heard the expression, “street appeal” and how important that is when selling your home.  That’s because the first impression can determine how a prospective buyer looks at your home – before even crossing the threshold.  if the yard is overgrown and not maintained, or the walkway needs repairing, or the paint on the front porch is peeling, the buyer starts forming an opinion about your house.  “What else needs to be repaired?”  “This house is not well-maintained.”  “How much is it going to cost me to make these repairs?”   Instead of viewing the home as a whole and allowing a general impression to form – the buyer focuses on negative items – the scuff marks on the flooring or the old faucet in the kitchen.  These small distractions can send up “red flags” for the buyer.  And perhaps a perfectly good home doesn’t sell or generates low offers.   A good 1st impression isn’t going to sell the house by itself  - but it paves the way for the house to be viewed in a more positive way.

So get out that paint can and tool box and start “sprucing up” – and start with the front of your home.  Prune those bushes, replace the broken brick, set out some flowers – even replace garage doors & the front door, if needed.  Pull up to the curb.  Does your house pass the “First Impression” rule?  if so, you’re giving your home the advantage of “best foot forward”!

If you’re selling your home, look for future tips and tools about selling your home in a difficult market.  There’s more information about selling your home on my website.  For up-to-date market reports for the Huntington area see Market Reports.  You also can request a market report for any area in the NY Metro area.

Some Good News for Buyers and Sellers on Long Island!  Freddie Mac and Fannie Mae once again have increased the higher loan limits allowed for conforming loans.  The mortgage rates on bigger mortgages finally should come down.  Home loans up to $729,750 for single-family homes (Nassau and Suffolk qualify for the maximum limit) should be cheaper in the next few weeks.  This higher conforming loan limit is part of the economic stimulus act and is available only until the end of this year and then reverts back to the $417,000 true-conforming loan limit.    Freddie Mac and Fannie Mae can purchase or guarantee only conforming-loans-anything over the limit is a Jumbo Loan-and the interest rates are much higher.  The interest rates for these super-conforming loans may be slightly higher than the true-conforming $417,000 limit  (typically one-fourth to one-third percentage point higher) – but they still are cheaper than Jumbo loans-which average around 1 to 1 ½ points higher than conventional mortgages.

Even though the act passed in February, the criteria for these new limits were released only recently and both Freddie Mac and Fannie Mae will begin buying super-conforming loans on May 4.  Check with your mortgage officer to see when their company will start writing these loans.  (See How Much Can I Afford? for names of some mortgage lenders.)  This higher loan limit and resulting lower interest rates for mortgages up to $729,750 certainly will have a positive impact on the Dix Hills & Melville Housing Market.  Good news indeed!

For more information email me at cheryl@liagent.com.  Please visit my web site, www.LIagent.com.  New Home Searches with a great IDX company, Diverse Solutions – coming this week.

Where is the housing market headed?  Have we reached the bottom yet?  Is the housing bust over?  Three reports will be released this week that may indicate which direction the housing market is headed.   A newspaper article says that data from these reports will be focused on two parts of the housing market:  Home Sales and Home Prices.  And they don’t necessarily move in tandem.  One may recover before the other one does.

February showed an increase in numbers of home sales – for both new construction and resales – and that trend is likely to continue.  Foreclosures, record-low mortgage rates and the $8000 Tax Credit for 1^st-time homebuyers have all contributed to an increase in the numbers of homes sold. The busier spring housing market will help that momentum also.  Less likely to show an uptick are home prices.  A report due out tomorrow will address that.  Foreclosures may help home sales activity but they have a negative effect on home prices.  If home prices have “bottomed-out” and a recovery is taking place – we may not know that for awhile.  It takes time to go from looking for a home, signing a contract and then closing on that home.  The article, Housing Data Could Signal If Bust Is Over  was published April 20 in The Washington Post.

Although I’m disappointed that the $15,000 tax credit for all homebuyers didn’t make it to the final Stimulus Bill, there are some incentives and an $8000 Tax-Credit for 1^st-time homebuyers,   And when homeowners are able to sell their homes to 1^st-time homebuyers then they in turn will be able to “move-up” or “down-size” – thus creating ripples across the entire housing market.  Along with some additional programs for 1^st-time homebuyers available from NYS, these incentives should stimulate more activity in the housing market

Details about the Homeowner and Stability Plan announced today should be enumerated within the next few days.  CNN Money has some eligibility examples on their web site that are helpful.  Even if not directly affected, most homeowners will see a benefit to helping reduce the numbers of foreclosures.  Keeping the numbers of houses for sale to a sustainable amount will bring some needed stability to the housing market.  On Long Island, we have seen an increase in the numbers of sales since December.   That is very positive news for our housing market and as long as inventory levels do not increase substantially, the upward trend in sales numbers should continue.  The good news is very timely, now that we are about to start the Spring Market – our busiest time.

There has been some downward pressure on the higher-end market with an increase in inventory in that price range.  In Dix Hills, Melville, SD#5, there currently are 53 homes listed above $1,000,000.  Since November 1, 2008, five homes in that price range were placed Under Contract.  Compare that to 157 homes under $1,000,000 currently Available with 37 homes placed Under Contract since November 1, 2008.  Conditions for this price range also should improve in time – even if not directly affected by the announced housing programs.

Want to “spruce up” your home – but not sure which remodeling projects will “pay-off”  when you decide to sell?  You know that a kitchen or bathroom remodel will always be worth more to a buyer than redoing a spare bedroom.  But what about new siding, windows or a roof – or a master bedroom expansion – which will give you the best return on that investment? 

 

Remodeling’s “Cost vs. Value” 2008-2009 Report is a good guide to answering those questions.    It compares construction costs for common remodeling projects with the value that they add to the selling price of your home.  The national numbers do show a trend, but it’s better to look at the Regional Data for information about our area.  And then, keep the upgrades within the norm for the neighborhood – although, with all the rebuilding and renovating of homes in the Dix Hills & Melville area during the past few years, I don’t find that a problem.  I do think that the renovations should be consistent with the style, size and condition of the home.  Don’t let one project completely overwhelm the rest of the home.  

 

 According to the report data, exterior projects gave the highest return – underscoring the oft-repeated phrase about the importance of “curb appeal” when selling your home.   Realtor Magazine is a co-sponsor of the “Cost vs. Value” report and you can find some good information about it on their web site.  CNN Money has a great Renovation Calculator that is based on the report and will help answer the question, “Will this renovation project pay off?”   Certainly, buyers are attracted to updated homes – no matter what the market.  Making sure that your home remodeling project adds value to your home is a smart move – whether you’re planning to sell or not.

When preparing your house to sell, don’t overlook the importance of the Master Bedroom for today’s Buyer! Master bedrooms are retreats from the daily grind, so they should be relaxing, welcoming and comfortable – but also elegant. Create a sanctuary similar to a luxury hotel suite that appeals to both genders.

First, your master bedroom should look like a bedroom and not a space for work or exercise. Remove anything from the bedroom which does not have a sleeping or relaxing purpose, such as desks, computers and exercise equipment.

Declutter. Remember to think "less is more" when staging your master bedroom. Remove items on top of dressers and tables except for a few necessary items or a vase of fresh flowers. Declutter your closets and make them appear larger by only using 2/3 of the closet space and keeping everything off the floor.