Home Warranty Tips Before Buying

 Home service contracts have always been a good way for sellers to entice buyers who may need a little more incentive to move forward while negotiating a sale. It's not uncommon for a home to be advertised for sale with a Home Warranty included. Service contracts typically cover repairs to appliances, air conditioning and heating units and water heaters. As simple as that may sound, all service contracts are not the same and the cost can vary according to the age of the home and items covered. You should weigh the costs and check what the policy allows before deciding on one.


Service contracts normally range in price from $250 to $500 per year. Here are some things to consider before buying on:

- Check customer reviews of the company and the contract at homewarranty.com

- Check the coverage and any exclusions it may have. Will the allowance cover the cost of a replacement if needed. Most offer a depreciated replacement value. If the appliance is 10 years old the actual replacement cost may exceed the allowance. Look for full replacement value.

- Verify what is and is not included. Are all appliances included?

- Are there extra add on services that may be worthwhile? Some have extended plumbing and electrical coverages.

- Are there any added service call fees that you should know about.

Service contracts are always loaded with exclusions and exceptions. Being aware of the exclusions can make a great deal of difference in deciding on one over another.

George Sinacori

GES Real Estate LLC

Homemade Mortgage Modification

An amazing phenomenon is occurring in households all across the nation. Growing numbers of people today are providing themselves with there very own homemade mortgage modifications. This type of financial remedy doesn't beg a lender for permission. With lenders and loan servicers either unwilling or simply not capable of helping with loan modifications, borrowers are just not paying and offering ultimatums. Lenders are being told either help me stay or force me out.

According to statistics published by LPS Applied Analytics, a company that provides services to many of the nations largest banks and financial institutions, the average borrower currently in foreclosure is delinquent some 438 days before being evicted. More than 650,000 households have not paid anything in 18 months and of those the lender hadn't even begun to take any action against nearly 20%. The numbers are staggering. The NY Times reports that 1.7 million foreclosure procedures have been initiated as many borrowers are choosing not to pay for something that isn't worth even half of what they owe on it. Any moral qualms are quickly dismissed by the belief that the banks created the situation and maybe now it's payback time.

Call it self preservation, selective foreclosure, or whatever term suits the situation. The fact remains that people are beginning to take charge of their own lives while lenders continue looking for ways to minimize losses. In some states lenders can pursue foreclosure outside the courts which can be a speedier process. In states like Florida, New York and others, judicial foreclosure is required. This slows the process considerably. Lenders seem to be more willing to allow time for some sort of alternative like a short sale in these states and generally, given the numbers on the horizon, may be reluctant to take many properties back at all.

For more info on foreclosures,short sales, buying or selling a property in SE Florida call me directly at 561-306-6736 or email ges.rellc@ymail.com
www.ges-realty.com

Foreclosure Trends in Palm Beach County

In today's housing market it's no secret that Florida ranks among the top states in foreclosure activity and in property value decline. After a year of government spending, bailouts and intervention that distinction remains unchanged. Last month Florida received the 2nd highest amount of new foreclosure filings nationally, second only to California. Other than steep declines in home values and drastically reduced sales activity little else has changed in the Florida housing market through 2009. Although the new year promises a (different) housing market, current foreclosure trends indicate that the pace of foreclosure activity will continue.

Information obtained through RealtyTrac shows that foreclosure filings over the past 2 months in Palm Beach County, FL have increased. County wide, home prices have declined since June and apparently remained unchanged since September. RealtyTrac reports that 18,096 homes in Palm Beach County received some form of foreclosure filing. Interestingly the greatest value or savings as indicated by foreclosure sale price to average sale price was in Boca Raton where sales trends indicate an average sale price of $244,300 while average foreclosure sale price was $164,750. A difference of 34-35%.

Changes in the short sale process (selling a property for less than what's owed) now scheduled to become effective April 2010 may help some homeowners. Legislation has already been passed simplifying the short sale process by requiring lenders to make the application process uniform from lender to lender thereby reducing the time involved in closing a short sale and hopefully making them a bit more appealing to a ready, willing and able buyer. Many would be buyers shun short sales due to the lengthy process and lack of response by lenders to short sale requests, although when properly submitted the process does work.

If you or anyone you know are interested in buying or selling a property in South East Florida please call 561-306-6736 or email me for a no obligation discussion of todays foreclosure market and the short sale process.

Automatic MLS Updates

Now buyers and sellers can easily stay on top of their market areas.

Automatic MLS Updates are a way for you to gain access to MLS properties as soon as they hit the market. If searching homes in SE Florida is becoming tedious and you don't want to or aren't quite ready to work with a Realtor than you should use my Automatic MLS Updates system.

It's an easy to use system that asks you to submit your search criteria so that every time a new listing matching your search comes on the market you'll get it in your email. i.e.

1-Click on the Automatic MLS Update link

2-email the search criteria including,

-type of property (single family, condo, townhome, etc.)

-# bedrooms & baths

- Community or city in SE Florida

- Price range

- Any preferences such as pool, pets, schools, age restrictions

3-The criteria will be entered into an automatic update search and you'll receive emails with any new listings attached as they come available just like Realtors receive new listings every day.

Buyers and sellers can now get complete new listing information as soon as it hits the MLS.

Automatic MLS Updates

Appraisals: Crippling the Housing Recovery

Lower appraisals are one of the biggest problems sellers, buyers and Realtors are faced with today. Because mortgage amounts are based on an appraiser's estimates of value, appraisals are a crucial cog in the machinery of the housing market. That cog may have ground to a halt recently.

Newly enacted federal government guidelines compounded by lenders putting pressure on appraisers to be very cautious of plummeting home values have crippled the already slow housing recovery. When a home is placed on the market, normally the fair market value is considered to be comparable to other homes sold at "arms length transaction" prices. In today's market these transactions are few and appraisers will use distressed, foreclosed or short sale prices as com parables.

An inappropriate approach by an appraiser using sales of distressed properties drives down prices on everything. A person not under water but needing to sell may be subject to the perceived value of an unjust appraisal because of the foreclosure down the street. I and many other Realtors have listed homes that would have closed at list price only to be appraised lower due to a foreclosed or short sale closing occurring during our marketing activity or while we were in contract waiting to close.

I may tweak a few appraisers with this post but I have to say it. Much of the housing bubble run up was directly related to over valued appraisals. Appraisers today are being more cautious. The bubble or run up in values and the low ball appraisal are results of pressure on appraisers from lenders. At some point the dog needs to wag it's own tail and begin to take control of itself.

For more on selling your home, home values, mortgage rates and available properties call me directly at 561-306-6736, email me directly , visit me on Twitter , or go to ges-realty.com

Foreclosure Trends in Southeast Florida

While the economy continues to struggle, home prices are still falling under the pressure of foreclosures and short sales. Here in Florida a staggering 11% of home loans are in some stage of foreclosure ranking it first in the country for defaults. With home values continuing to fall the foreclosure rate will surely increase through this year. Prices can't stabilize until the oversupply is at least equal to the demand. According to information provided by Zillow.com approximately 71 percent of homeowners in two Southeast Florida counties who purchased homes in the past 5 years are underwater or owe more than the home is worth. Lenders are finding that loan modifications aren't working as many borrowers fall behind again within a year of the modification. These are borrowers who may have escaped the foreclosure process but will return given time. According to information provided by RealtyTrac, preforeclosures still account for the largest piece of the foreclosure pie. This is the time that lenders, sellers and buyers should recognize as opportunity and take advantage of. This is the time to short sell and avoid the whole foreclosure mess.

The pie chart above indicates current foreclosure trends in Palm Beach county. Of almost 15,000 homes county wide in the foreclosure process 89% are in the preforeclosure stage. That of course does not mean that they will all be foreclosed or that they are all currently for sale. What it does mean is that there are still a lot of homes that need to be sold at current market prices.

Statistics provided by RealtyTrac over the most recent 2 quarters show that the largest decline in values in the county occurred in Boynton Beach and Stuart respectively while the lowest average foreclosure sales price was in Delray, West Palm Beach and Boynton. The total number of foreclosures sales in the county was up slightly in April. The greatest value being in a 3 bedroom home between $100K and $200K. These show the largest decline in price and the greatest number of available properties.

Being aware of market trends has always been important to anyone considering buying or selling a home. Today it's more important than ever. Understanding price trends can make or break a buyer. Current sales trends and the short sale process is key to a seller looking to get their life and finances back on track. Lenders need to streamline the process if they expect to minimize the loss. Todays market is primarily a short sale market and will be for the foreseeable future. The real estate market today is complicated. Buyers and sellers need good, solid, trustworthy information from an experienced reliable source before getting into it.

I encourage anyone in South Florida needing assistance with the process to call me at 561-306-6736, email me your questions or go to ges-realty.com for more information..