Columbia SC insurance companies are keeping a watchful eye on the latest storm surge report issued by CoreLogic for 2016. While the report specifically references the more than 6.8 million homes on the Atlantic and Gulf coasts at risk of damage from hurricane storm surges, the harsh realty is that flooding – regardless of whether you’re on the coast or not – is responsible for major damage each year throughout the United States. Let’s take a more in-depth look into what you can do to better prepare for the potential risks of flooding.
Columbia SC Insurance – Water, Water, Everywhere?
As is the case with any natural disaster affecting homes and homeowners, potential damage due to flooding can push repair and reconstruction costs into the billions of dollars. With the number of homes and the costs to repair or rebuild them reaching historical highs, it pays to be vigilant regarding possible flood events caused by high winds, storm surges, dam breaks or swollen rivers.
If you’re like most people, you try not to think about a disaster like a flood that may adversely affect your property or your family’s safety. Often, the old adage “Out of sight, out of mind” rings true. After all, if it’s been years and years since your area has experienced a major flood event, it’s just not something you think about – or worry about – very much. Columbia SC insurance insiders refer to the phenomenon as “flood amnesia,” a reference to the idea that we tend to forget floods happen. And if flooding doesn't happen on a frequent basis, we tend to ignore it.
However, if you live in a flood-prone area, weather changes are worth being cautious about – and prepared for. If you have flood insurance, you most likely obtained it because it was required by your mortgage lender. But required or not, it’s a good idea to keep it. After all, like any other insurance, it’s better to have it when you need it than to not have it and wish you did.
While the coastal areas and neighboring states prepare as best they can for what many experts warn may be an unusually active hurricane season, Columbia SC insurance experts say you should be equally prepared for the unexpected – that could result from potential flooding.
Safeguard your possessions. Make a personal “flood file” including information on all your home’s possessions and your personal belongings. Keep the file in a safe, secure and dry place like a safe deposit box or a waterproof container. Make sure the flood file contains the following:
- A copy of your insurance policies along with your agent’s contact information (preferably with his cell phone number) if power lines are down or if offices are closed.
- A household inventory list including a written or visual record of the major household items, valuables and other belongings. Many people have a photo album or home video documenting home possessions. Be sure to include serial numbers and store receipts of major home electronics and appliances. Make sure to have any artwork or jewelry appraised and insured separately, if needed. Many of these documents will be vitally important in the event of an insurance claim.
- Copies of other important documents, including financial records and receipts of major purchases. You may need these to substantiate a Columbia SC insurance claim.
Columbia SC Insurance – Prepare Your Home
Ensure that your sump pump is working properly. Then, install a battery-operated backup in the event of a power failure. Consider installing a water alarm to alert you if water accumulates in your home’s basement or crawl space. Make sure to remove any debris from your gutters and downspouts. If you have fuel tanks, make sure they are anchored securely. Raise your electrical components like switches and circuit breakers a minimum of one foot above your home’s projected flood elevation. Place the water heater, furnace, washer and dryer on cement blocks at least a foot above the projected flood elevation. Lastly, move your furniture, valuable possessions and important documents to a safe, dry place.
Have a family emergency plan. Of course, nothing is more important in the event of a natural disaster than your family. Possessions can be replaced – the safety of your loved ones is something to always prepare for in an emergency.
- Start a safety kit including drinking water, canned foods, first aid and medicines, blankets, a radio and a flashlight.Make sure you have fresh batteries.
- Post emergency telephone numbers by the phone or in your cell phone and teach your children to dial 911 if they need to.
- Plan and practice – more than once – a flood evacuation safety route with your family.
- Be aware of the safest routes from home, work and school that are on higher ground.
- Make sure you have an out-of-state friend or relative that can be your emergency family contact.
- Have a plan in place to protect your pets.
With a little advance planning, you can ensure your home and your family can be ready if and when the unexpected occurs.
You can find more articles pertaining to Columbia SC insurance in the Columbia SC Insurance section of our site below Columbia SC Real Estate Categories in the column to your right.
Remember to also check us out by Following us on Twitter and Finding us on Facebook. Check us out there, too.
Selling a home in Columbia SC is both an art and a science. Most real estate professionals say the most stressful conversations with their clients involve the asking price and the way the home is presented for sale. This article will focus more on the factors that make the biggest impact on prospective purchasers.
Selling a Home in Columbia SC – Following “Stage Coaches”
For most home sellers, personal possessions are important parts of who they are and what their home means to them. To potential buyers, however, they mean virtually nothing. They’re not interested in your children’s photos, your bowling trophies or the handmade quilt your late grandmother gave you several Christmases ago. Real estate agents worth their salt advise their sellers to tidy up, clean out and pack up most personal items. The reason? Prospective home owners need to clearly imagine themselves and their family in every room in your house. If they look around and see nothing but constant reminders of the seller and their family, they may quickly lose interest. In addition, people’s tastes vary – what you like may not necessarily represent the likes of potential buyers.
That's one reason selling a home in Columbia SC often includes staging the home for the best presentation possible. Today, home staging is more popular than ever – even in a seller’s market. According to a leading national real estate sales firm, staged homes spend half as much time on the market than non-staged homes. In addition, homes that are staged sell for over 6% above the asking price.
Staging can also help the buyers envision how the house will appear once they move in, even though the majority of people don’t have professional decorators at their disposal. Savvy agents refer to staging as being responsible for “aspirational selling.” Buyers imagine living in the house the way it’s set up and decorated for the best sales presentation.
One real estate agent – who is obviously bullish on home staging – says staging homes for sale is a key to her success. “When I put a house on the market, it’s going to look nice. It benefits both me and the seller. They refer me to other people, so it’s an investment I make in my business.” The investment in home staging can range anywhere from $1,000 to $5,000 depending on the home’s size and whether or not furniture needs to be replaced. Renovation and staging websites often include rental items like furniture, furnishings, rugs, paint, window treatments, accessories and other props.
Selling a Home in Columbia SC – Online Staging
Real estate agents who coach their sellers into staging their homes readily admit one of the advantages of selling a home in Columbia SC by staging is for taking photographs as much as anything else. Even though there will be dozens of people walking through the home, an even larger number of prospects routinely search online, viewing interior photos of the homes they plan to visit. Attractive photos will draw more buyers.
Most real estate professionals say a common problem in trying to stage a home the seller is currently occupying is getting them to understand the philosophy and purpose of staging. Diplomacy is an important attribute of agents dealing with sellers during the “hand-holding” phase. In addition, a key to staging is to give small rooms the appearance of being larger than they really are. That way, buyers start the mental process of envisioning where their furniture – or new furniture – can be placed to best showcase the rooms in the home.
As an example, an eat-in kitchen would naturally have a table in it. A smaller-sized bedroom that appears to be too small for a bed should have a bed in the room. Professional stagers work to position the home to sell to the prospective purchaser. A young couple with children, for example, needs to be able to imagine the rooms as they will best appeal to them, using the type furnishings they can envision. That often involves removing antiques or artwork from an older seller’s home. It may also mean depersonalizing the home so the potential buyers don’t identify too much with the existing homeowners.
Some home stagers go so far as to re-organize closets and kitchen cabinets in an effort to remove any items that may dissuade prospective buyers. While not all rooms require staging, it’s always best to keep all rooms clean and uncluttered. Sometimes giving the potential home buyers an “empty canvas” to use their imagination is a good idea.
One last thing about selling a home in Columbia SC : There are no formal or steadfast rules for what should and shouldn’t occur during the home staging. However, as in most personal or business relationships, first impressions are important. As an example, the front porch, doorway, foyer or entryway are all equally important. Make sure they are appealing to visitors that enter the home with a passing interest and leave it with the home high on their list.
See more articles pertaining to Selling a home in Columbia SC in the Columbia SC Home Selling Tips section of our site below Columbia SC Real Estate Categories in the column to your right.
Remember, we also post tips daily on Twitter and Facebook. Check us out there, too.
The Columbia SC home buying experience continues to be an elusive one for many first-time purchasers for a variety of reasons. Student loan debt is among the biggest hurdles facing prospective buyers that ordinarily would be prime candidates to purchase homes. In addition, not only is student loan debt responsible for delaying first time home buyers from entering the market, in some cases it has long-term effects.
A recent study was conducted by the National Association of Realtors in conjunction with SALT, a consumer literacy program provided by the nonprofit American Student Assistance organization. The study’s findings show that 71% of non-homeowners with student loan debt say that debt is the biggest obstacle preventing them from buying a home. Even more concerning was the revelation that more than half of the respondents said their student loan debt would likely keep them from buying for the next five years or more. Let’s examine how the Columbia SC home buying arena is being impacted by student loan debt.
Columbia SC Home Buying: The Student Loan Debt Roadblock
Not only has mounting student debt affected the housing market in terms of purchasing, it remains a serious roadblock for college graduates unable to comfortably afford rising rents in many parts of the U.S. Student loan debt is identified as the main reason 4 out of 10 college graduates still live with family members. These and other findings were the result of the recent survey of 3,000 people who are making on-time payments on their student loans.
The survey showed the lion’s share of those postponing Columbia SC home buying was comprised of older Millennials, aged 26-35. They were also the segment carrying the most debt – ranging from $70,000 to $100,000.
Surprisingly, over half of those surveyed in each segment reported that student debt – regardless of the amount – was affecting their ability to buy a home and postponed their decision to do so. Roughly half of younger Millennials live with family members, some paying rent and some not.
While college graduates as a whole are more likely to maintain steady employment and have the income to qualify for home ownership, their student loan debt payments are standing in the way. As one student put it, “Student loan debt is far outweighing the benefits of my degree.”
Even more frustrating to many is the realization that interest rates on student loan debt is markedly higher than current mortgage interest rates.
A majority of the non-homeowners in the survey who earn more than $50,000 annually reported that their student loan debt adversely affects their ability to save money for a down payment. Those earning $50,000 or more are above the median income level necessary to purchase a single-family home in the U.S.
Student Loan Debt Adding Stress
The added stress of several hundred dollars per month on a student loan when added to the normal demands on a household budget equates to thousands of dollars over time that could be used for a down payment.
A total of 80% of the Millennials in the survey said their student debt clearly hampered their ability – and willingness – to save for a down payment to purchase their first home. While low down payment loan programs are available in the Columbia SC home buying marketplace, those options come with certain restrictions. The low down payment loans have tight limitations on the borrowers debt-to-income ratio, and student loan debt figures heavily in the equation.
Ironically, prospective buyers aren’t alone in their student debt woes. Student loan debt is also responsible for changing the perspective and decisions of potential home sellers. Almost one third of current homeowners surveyed reported they were putting their plans of selling on hold because of their student loan debt. Roughly 20% of respondents said it was just too costly to sell their homes and move to a bigger or better home because of the monthly debt payments.
In addition, 7% of those surveyed reported bad credit marks as a result of student debt issues and 6% said they were still underwater on their home mortgages. They cited student debt as the reason they are unable to pay more towards their mortgage balance.
With inventory low in the Columbia SC market and home ownership at a dramatic low, the problems that student debt adds to first time home buyers is significant.
Younger homeowners are unable or unwilling to sell and move up and many older homeowners are still housing their adult, college graduate children, preventing them from downsizing. Combine that with an usually low number of homes fro sale in the market and it’s a recipe that has pushed prices upward. Real estate professionals say the market is beginning to show a little resistance to higher prices, but the problems still exist.
See more articles pertaining to home buying tips in the section of articles on Columbia SC Home Buying Tips just below Columbia SC Real Estate Categories in the column to your right. And remember, we also post tips daily on Facebook and Twitter. Check us out there, too.
Many Columbia SC home buying tips have more to do with the house you’re considering buying than the buyers themselves. Home buying tips vary from what to look for when you inspect a home to ideas on how to remodel a room to better meet your family’s needs.
In this article, the home buying tips involve you, the prospective home buyer, and how you can make yourself more attractive to a seller. Let’s take a look at areas in which you can excel by positioning yourself at the top of the seller's list.
Columbia SC Home Buying: Make 'em Love You
If you’ve started house hunting already, you know it’s a competitive market. Because housing inventory is still relatively tight and home prices are rising throughout the U.S., the basic law of supply and demand has created a seller’s market. According to recently released statistics there’s a 4.7-month supply of homes for sale nationwide. That means it would take nearly five months for all the current homes for sale on the market to sell, based on a certain monthly sales volume. A normal, balanced market has a 6-month supply of homes. In today's market, a prospective home buyer like you needs an advantage to make you memorable – and separate you from other buyers competing for similar houses. Consider these steps to be better prepared:
Columbia SC Home Buying Tips: Be Financially Prepared
Given the choice, home sellers almost always prefer to work with a buyer who can pay cash. Naturally, a buyer who doesn’t need to rely on a mortgage is an attractive commodity to a seller who doesn’t have to worry about the sale falling through due to financing issues. Interestingly, during the first quarter of 2016 all-cash buyers comprised about a third of all sales. But let’s be realistic, most buyers can’t pay cash and will still need mortgage financing. Meet with your lender in advance and get a pre-approval letter to show you can get the necessary financing for a certain amount or price range. The lender will pre-approve you – including a credit check and income verification process – prior to your home search. The pre-approval or pre-qualification process does two things: Not only will it give you a competitive advantage, but it will let you know whether your home purchase budget is realistic.
Columbia SC Home Buying Tips: Be Aggressive
Normally, when buyers begin they are in the research phase of their home buying search. They may spend hours looking at online listings or attend a number of open houses. In a seller’s market, you need to be more aggressive, more ready to make decisions and move fast to get the house you want. A seller’s market means attractively priced homes get offers quickly. So, one of the most important Columbia SC home buying tips is if you're interested in a specific home, don't wait too long to make an offer – otherwise an opportunity may be missed. Most real estate experts suggest if you find a home you really like and think is priced fairly, make an offer as close to the asking price as possible. As one real estate agent said, “In a seller’s market, make your first offer an aggressive one… you might not get another shot.” Consider this, too: If you’re buying the home with mortgage financing, putting down a larger earnest money deposit can often give the sellers a better feeling that you’re not only in good shape financially, but that you’re serious about purchasing their home.
Columbia SC Home Buying Tips: Eliminate Contingencies
In today’s market, the more contingencies a sale has the less attractive it is for sellers to accept the offer. Simply put, they don’t need to… there are plenty of other prospects in the Columbia SC home buying arena. For example, a seller is more likely to reject an offer that’s contingent on the sale of an existing property. While that’s not unusual in most real estate transactions, in a seller’s market – and with a third of the purchasers paying cash – it may be enough for a seller to reject the offer and take his chances on a buyer ready to move quickly.
However, remember that not all contingencies are bad. Some are still needed even if it slows down the closing process. Keep home inspection contingencies in place for your protection. They may prevent you from making a costly mistake. If the home inspection is an issue, consider arranging for one before you make an offer.
Columbia SC Home Buying Tips: Be Flexible
Often home buyers can’t or don’t want to compete by getting into bidding wars and increasing their offers. You can separate yourself from the rest of the home buying pack by being easy to work with, flexible and responsive in the negotiation process. That brings us to another valuable Columbia SC home buying tip: If you make an offer and there’s a deadline attached to it, be accessible. The pace can quicken and most sellers want a fast answer – one way or the other. A lack of response, or a slow response communicates ambivalence or non-interest to the seller and they will likely move on to another buyer with a similar offer.
Sellers who may want to close the sale quickly, but lease the home back for a short time after the closing have a unique need. Being open and easy to work with in a situation such as that will make your offer more attractive and valuable to them because it better fits their needs.
Columbia SC Home Buying Tips: Write a Letter
Some sellers are emotionally attached to their homes – especially if they’ve lived there for a long time and raised their children in the home. Those sellers are likely the ones that will want to make sure “their home” will be in good hands when they sell. As a buyer, you can appeal to that emotional connection by writing a letter to the sellers explaining why you and your family feel their home will be a perfect fit. Send the letter along with your offer – preferably by email – nobody trusts snail mail these days. Try to make a personal connection with the seller. Of course, if another interested party in the Columbia SC home buying market makes a higher offer, the letter may not do any good… but it can't hurt!
Read more about home buying in the section of articles on Columbia SC Home Buying Tips just below Columbia SC Real Estate Categories in the column to your right. Remember, we also post tips daily on Facebook and Twitter. Check us out there, too.
The Columbia SC mortgage market remembers – as do we all – the U.S. housing crash of less than a decade ago. One of the hallmarks of the crash was mortgage lenders who required little or no supporting documentation. When the housing market was booming, they were called “stated income” loans and were advertised as “low-doc” or “no-doc” loans. After the dust settled and the ashes cooled, they were named “liar loans.” That time in American financial history was notable because it represented a reckless, irresponsible precedent that none of us hope repeats itself. Lenders and borrowers alike could essentially put anything they so desired on the mortgage lending application to close the deal. Now, one bank is offering a loan product that brings back memories — most of them bad.
Columbia SC Mortgage Market – What’s up with Docs?
An FDIC-insured community bank in New York City has recently unveiled a new loan program known as “Lite Doc.” The program requires verification of the borrower’s employment and two months of bank statements. For borrowers that are self-employed, the bank requires documentation of just one year of the P&L, profit and loss statement. By comparison, most mortgage loan applications currently require two years of Form 1040 income tax statements, two years of employment W-2s and a minimum of four pay stubs. In addition, they require bank statements and credit reports.
The Lite Doc loans, offered by New York based Quontic Bank with offices in New York City and Miami, are not required to comply with the stringent new “ATR” rules, or “ability to repay” requirements established in the aftermath of the housing crash as part of the Dodd-Frank legislation. Why? Because of a new loophole that allows the bank an “out.” Quontic Bank has been designated as a community development financial institution, or CDFI, by a U.S. Treasury program designed to provide funds to revitalize low-income communities.
According to the Treasury website, “The fund,” established in 1994, “serves mission-driven financial institutions that take a market-based approach to supporting economically disadvantaged communities." Quontic qualifies since it makes loans to borrowers in a low-income community, Queens, New York. In addition, CDFI lenders enjoy exemption from compliance with the “ability to repay” rules.
To be fair, the “Lite Doc” loans aren’t exactly the “low-doc” loans of the early 2000s. Lite Docs require a 40% down payment and a minimum FICO credit score of 700. In addition, the borrowers must be able to substantiate that they have a minimum of 12 months of principal, interest, taxes and insurance (PITI) in the bank at the time of loan closing. Lastly, Lite Doc loans are only made for the purchase of owner-occupied primary residences.
A Quontic spokesperson said a large number of the bank’s customers are immigrants comprised of half-dozen or more family members who pool their money to meet the required down payment. They don’t have the normal or traditional income documentation available to them that other borrowers may have, because many are paid in tips and bonuses.
While Quontic Bank is able to make Lite Doc loans to anybody in any city in America, so far they have chosen not to do so. The Quontic program is only a few months old and the bank has made just seven Lite Doc loans to customers in New York and Miami. There are others in various stages of processing, the spokesperson says.
An attorney who specializes in consumer financial services issues had this to say about the CDFI banks. "The CDFIs get this privileged status because their sole purpose is to help consumers. They don't have a traditional profit motive. The concern about steering borrowers into inappropriate loans isn't there.”
However, the attorney admits, while the Lite Doc product may not be a “prudent loan,” it is not an illegal loan. And if there’s no strict verification of income, there’s always the possibility that borrowers will falsify or overstate it.
Banking insiders contend lending programs like Lite Doc can be successful, but only if the underwriting guidelines are adhered to and aren’t relaxed. In addition, they warn, the lending documentation that is gathered needs to be accurate because federal regulators will examine the loans on a regular basis.
So what, if anything, does this new product mean to the Columbia SC mortgage market? Maybe nothing… but it’s worth keeping an eye on. In the last decade the mortgage lending business has implemented stricter underwriting rules – frankly, because of the billions of dollars in legal settlements they were ordered to pay as a result of their reckless lending practices.
While some in the Columbia SC mortgage market will argue that credit restrictions have been overcorrected in an effort not to repeat the financial sins of the past, others feel lending standards should be more relaxed. No doubt a happy medium is required to further stimulate home ownership, which is at an all-time low. However, we've seen the results of families borrowing more than they can afford to repay. Millions of Americans endured the pain of foreclosure brought on, in part, by irresponsible lending practices in combination with a recessionary economy. Here's hoping the Columbia SC mortgage market will never experience those misfortunes again.
You can find more articles pertaining to Columbia SC mortgage market in the Mortgage Info section of our site below Columbia SC Real Estate Categories in the column to your right.
We also post tips daily on Facebook and Twitter and would love for you to follow us there as well.