The House of Representatives passed yet another short-term re-authorization of the National Flood Insurance Program. The most recent extension will keep the program going through November 18. This is just the most recent in a series of short-term extensions to the NFIP. Apparently there are legislative efforts to extend the program for the next five years.
No bank will lend on a property in a flood-prone area without flood insurance. So when the NFIP lapses (as it did last year), it makes it nearly impossible to sell a home in a flood area, and any scheduled sales are held up due to the lack of insurance. Regardless of whether it makes sense for the government to encourage people to build homes in a potential flood zone is a separate issue, because these houses already exist and are dependent upon the NFP. This is the system we are largely stuck with.
In light of this, some groups, such as the National Association of Realtors (NAR), are advocating for a long term extension of the NFIP. In a press release, the NAR stated that “the NAR strongly supports the NFIP and believes that a 5-year extension of the program’s authority to issue flood insurance is essential to a properly functioning real estate market”.
There really is no excuse for Congress not to extend the NFIP as the many real estate transactions are utterly dependent upon it. Since 2002, the program has been allowed to lapse 11 times, and then retroactively re-authorized.
Thanks to high costs and rising unemployment, nearly 50 million Americans are going without health insurance…
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Aggressive Home Selling Strategies
Selling a house in an extremely competitive market is possible, especially if a seller is prepared to take action to help facilitate attracting a buyer. In a housing market where ‘for sale’ signs are springing up like mushrooms after a downpour, it’s not enough to hire a real estate agent who only puts a sign in the yard, enters the information about the home on the local multiple listing service (MLS), and waits for a potential buyer to find the home.
In a buyer’s market, it is imperative that sellers be more cognizant of the choices and actions they take prior to putting the home on the market. In some instances, it may even be wiser to keep the home off the market until they are fully prepared to offer it for sale. Potential buyers may not reappear to see your freshly painted entryway. How should you prepare yourself for this competitive market?
Here is a brief rundown of a must-do list to get your house noticed and sold:
The Right Agent – Rushing into choosing a real estate agent could be your first mistake in a competitive market. You must begin by interviewing several agents in order to choose the best one available for your individual circumstance, especially in such a competitive housing market.
Begin by asking some standard questions to find out what marketing plans are offered, what Internet presence can be expected, a list of past clients as references, and what type of administrative and communication systems are in place.
The real estate agent who understands the market, who is not interested in appeasing your over-priced value on your house, and who can explain what it means to sell a house in a buyer’s market is the agent for you.
Choose the agent who gives you the straight talk while keeping a good rapport with you, and you will have a successful relationship and sale.
Repairs – It’s time to prepare the home for sale. Aggressive sellers will hire a 
home inspection company to conduct what is termed a "pre-inspection" of the house. This pre-inspection will identify potential defects in the home that will eventually show up through a buyer’s inspection, possibly terminating any offers on the table. By discovering defects and making the corrections well before a buyer has an opportunity to back out, the home will get a second and third showing, resulting in more offers.
When a pre-inspection is conducted, it is best to inform potential buyers of it by leaving a copy of the inspection report at the home as well as have it posted on the multiple listing service. Don’t forget to do those little repairs, too. It’s not just about whether the furnace works; buyers notice things like broken light switches and squeaky doors. It may seem trivial, but each one starts a fingernails-on-the-blackboard response in a buyer which can result in losing a follow-up showing.
Curb Appeal – In addition to making repairs to the actual home, taking a look at 
the landscaping and entry is another key to selling a home in a buyer’s market. Landscaping and your front door has a tremendous impact on the first impression a buyer will get when they first see the home.
You may be thinking that buyers are fickle, and they may very well be. But, regardless of whether you think something like a few flowers and a fresh coat of paint is trivial, your buyer may not. Having a potential buyer come back for a second look because they felt welcomed by the first impression they got at your front step can make the difference between selling and sold.
Photos of your home will be posted on the Internet, printed on flyers, and used in other publications if you have an aggressive agent. Simple things like potted plants, trimmed shrubbery, and neat entries make a difference.
Photographs aren’t very forgiving. You can’t make up for that peeling paint or pile of dead leaves with a clever description of your home or even cinnamon rolls baking in the oven. Pictures are not forgiving, so be sure your landscaping and entry are meticulous, even if you have to postpone your listing until you get it done.
Staging – Take a look at your home from a buyer’s perspective. This is hard to do 
because you have an emotional attachment to your home. But, consider coming into your home for the first time as a new owner. You may have furniture that perfectly matches your green walls, but not everyone does. You may have the perfect kids’ rooms for your toddlers, but not everyone has toddlers. Invest in neutral tone paint and cover up all those lovely colors.
You also need to take a look at replacing carpeting, putting away all your knick-knacks, rearranging your furniture, and even storing most of your items to clear the way for a buyer’s imagination.
Many sellers benefit from hiring a home staging professional. These experts are trained to see the potential, and for understanding how difficult it is to de-personalize your home while it’s on the market. A home staging expert is trained to see homes through the buyer’s eye and will present the home so the buyer actually looks at the qualities and features of the home, rather than be distracted by the stuff the owner either loves or has become immune to.
When selling a home in a buyer’s market saturated with a large inventory of homes for sale, it is imperative sellers take proactive steps prior to putting a for sale sign in the yard. Interview and hire the best real estate agent, review and repair any defects of the home, and properly stage the home so you will maximize the interest each time you show your home.
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Buying a New House? A Checklist of Items You’ll Need
Last month, we looked at a list of "must do" things to consider first before starting to look for a new home. This month, we look at a list of "must-haves" when moving into your first house.
Locks and Keys
All locks should be changed in your new home. This is a good safety tip for moving into any new place, whether it’s a home, apartment or a condo. You won’t have to worry about who has a key to your home when you change the locks.
First Aid Kit
Accidents happen, especially around the house. Whether someone in your home gets hurt while using a tool, or just experiences a clumsy mishap, it’s nice to have a first aid kit close at hand. Your first aid kit should include band aids, scissors, non-latex gloves, tape, gauze, first aid instruction booklet, aspirin, and a thermometer. You might want to include more items, but this is a good collection of basics.
Smoke Alarm
A smoke alarm should be on every level of the house and close to bedrooms where people are sleeping. Remember to check the batteries regularly. It’s a good idea to make a habit of checking the batteries when you change your clocks in the spring (forward) and fall (back). Remember that smoke alarms don’t last forever, and need to be replaced. Many recommend doing this at least every 10 years, if not before.
Fire Extinguisher
It’s important to put fire extinguishers in places where there could be a chance of a fire, like the kitchen or the garage. Remember, fire extinguishers generally require servicing and inspecting by a fire protection service company at least annually.
Tools
When you live in an apartment or a condo, if something breaks there’s a person to call to come and fix the problem. Now that you are a home owner, you’re that person! So you’re going to need some basic tools. Some handy tools to have in the house are a hammer, nails, drill, drill bits, staple gun, tape measure, saw, screw drivers (flathead and Phillips), wrench, pliers, WD-40, and safety glasses.
Yard Tools
Now that you have a home, you also get a lawn to take care of! That means you’re going to need a few tools to tackle yard work. Items include, but are not limited to: lawn mower, shovel, rake, weed eater, push broom, watering can, wheelbarrow, garden hose, lawn sprinkler, edger, blower, and pruners. If you love doing yard work you might need a few more things, but this list is good for those of you who aren’t a big fan of doing yard work. These items will help you get the chore done quicker.
Snow Blower
If you’re in an area where it snows, you’ll be happy to have a snow blower when the first foot of snow falls. And don’t wait around for the first snowfall to get this important tool, either. It’s a good idea to have snow shovels as well. Always have two on hand, that way you can always have a shovel for a helpful friend.
Cleaning Supplies
Hopefully you have these things already, but here is a good list of items every home should have to make house work easier: a vacuum, broom, wet mop, dust mop, dust cloths, furniture polish, dust pan, toilet brush, plunger, window cleaner, sponges, scrub brush, rags, towels, and a bucket.
This list should help you stock your home with essentials that will help making living in your new place a little easier!
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Transitioning Your Home to Autumn
The days are getting shorter, the weather is getting cooler and the air has an aroma that makes you think of apple cider. Autumn is in full effect in many areas already, and soon will be everywhere. Your home should reflect the coziness the change in season brings.
Not sure how to transition from the cool shades of summer to the warm hues of fall? While there are many items available to make your home inviting, these things for fall home décor will make your place look warm and cozy for your guests as they come to visit.
Candles: Choose candle scents that reflect the season – cinnamon, apple pie, marshmallow, fireside, pumpkin, candy corn, etc. If you have children or pets and don’t want to risk an open flame, there are battery-operated ones that are usually accompanied by a timer you can preset for automatic ambiance. Some are vanilla or spice-scented and offer a safe, yet still charming glow.
Artificial Fruit & Vegetables: Search for faux apples, pears, gourds, squash and more at your local craft store. Place them prominently in a wide bowl or basket as a cornucopia, or simply add a couple of pieces on your kitchen windowsill or end tables to add touches of harvest to your home. You can even find them glittered or beaded for a more elegant look – near soft light they sparkle beautifully.
Corn: It’s not just for corn mazes or corn on the cob – it can be a great element for decorating! Tie a bunch together with some raffia and place outside on a bale of hay, or inside, attach them to a wreath or place them in a bowl for a traditional symbol of harvest.
Leaves: A main staple of fall décor is the unique variety of colors and shapes of leaves. Individual silk leaves can be scattered on tables, leaf garlands can be strung across a staircase bannister and a leaf wreath can serve as the focal point of a mantel when hung on a wreath stand. Leaf-themed dinnerware, trays and decorative plates can be found in your local department store, that you can enjoy using all the way through Thanksgiving. If you have young children, you could grab a few leaves outside and they can sponge them on paper for artwork you can frame or hang on the fridge!
Flowers: Hardy mums accompanied by some ornamental cabbage and kale are great for a pop of color outdoors because they can withstand cooler temperatures. Purple Mexican bush sage has purple and white blooms and can reach four feet tall, flowering in September and continuing until frost occurs. If you want to make a container or window box, incorporate variegated ivy, fountain or black mondo grass, mums and a few pumpkins for a spicy seasonal look. Speaking of pumpkins…
Pumpkins: Like leaves, pumpkins are the ultimate symbol of autumn. They are 
easy to find and in various price ranges. Visit your local farmer’s market or grocer for medium and large pumpkins. Visit a nearby cider mill for extra large pumpkins, mini pumpkins and special gourds. Place them on the porch, nestled between the landscaping around your home, or bring a few indoors. Leave them plain until it’s closer to Halloween and then you can turn them into jack-o-lanterns!
Pillows: Add some throw pillows with embellishments to your couch or cozy chair. Square, round or oblong pillows with metallic threads, ruffles or sequins can make for a nice display. But don’t limit yourself to accent pieces in common rooms – body pillows made of micro-suede can be a warmer alternative to the cotton pillowcase it’s currently nestled in for a good night’s rest in your own bedroom.
Table Linens: Whether you have a dining table or server, table linens in fall colors like orange, red, gold and bronze can add elegance to wood furniture. Tablecloths, runners, napkins and placemats can often be found in coordinating sets, complete with napkin rings that tie it all together for a more formal occasion. Dig out those autumn dishes you have hidden in the cabinet and add some tinted wine glasses to wow your guests!
Wood: Bring the outdoors in with distressed wood pieces like log vases or birch-themed pedestals to display candles or flowers. You can incorporate twigs, branches and berry stems for an organic look. For your front or backyard space, take wooden barrels or crates and fill them with leaves, pumpkins and hay for an effortless acknowledgement of the change in season.
Any of these ideas for fall décor will take you straight through the last Thursday of November, when you’ll give thanks and start thinking about your next decorating session which includes snow and ornaments.
Having insurance to protect your stuff may not be enough. There’s one more thing you have to do.
Have you done what it takes to make sure your insurance company will pay up in the event of a disaster? We’d love to hear your comments. Just click the comment link below and tell us… yes, or no? Are you prepared?
The flood damage from Hurricane Irene raises pressure on Congress as it debates how to overhaul the government’s debt-strapped flood-insurance program. Unlike wind damage, flood damage typically isn’t covered under homeowners-insurance policies. Instead, homeowners and businesses buy coverage from the National Flood Insurance Program.
The program is treading in dangerous waters as Congress debates on whether to continue the program and if so, how much should the annual rates be increased. The Senate is debating the potential of 15% annual increases while the House of Representatives looks at 20% increases for homeowners.
That can be a huge cost increase as these costs compound year over year. What this can mean is that based on the House’s proposed increase the rates would increase 298% in 7 years. The Senate’s proposal would increase costs 231% in that same 7 year window. That can be a significant cost.
Of course, the program has lost 18 billion dollars over the past few years so the government does need to recoup their losses. And the impact of shutting down the program could be even more extreme for the coastal housing market.
Lawmakers remain unlikely to thrash out a long-term agreement before the program is due to expire Sept. 30th, but a short-term extension of the program is considered likely.