Flood Insurance 101

August 30, 2016 By Chris Leave a Comment

Floods are the number one natural disaster in the United States. According to the National Flood Insurance Program, the average flood insurance claim over the late five years is $46,000.00 and the average policy premium is $700.00. Homeonwer’s insurance policies usually do not cover losses due to floods and many homeowners in flood prone areas are left unprotected.

Hurricane season is ramping up and Florida is no stranger to falling victim to the storms. Flooding can damage your home’s structure as well as your personal property. Now is the time to talk with your insurance agent to make sure you have the coverage you need.

Flood Insurance

10 Facts About Flood Insurance

Flood Insurance rates are determined by the NFIP, National Flood Insurance Program, and are administered by FEMA, the Federal Emergency Management Agency.
All companies offering National Flood Insurance do so at the same price, which is determined by the property’s flood risk zone area.
A community’s flood risk zone is determined by FEMA. Find out which zone your home is in at FEMA’s Map Service Center.
Homeowners in areas designated as high risk for flooding are required to purchase flood insurance. In certain areas, flood insurance is required by the Federal Government to secure FHA and VA loans.
Most lenders require properties located in high risk for flooding areas to have flood insurance sufficient to cover the balance of the mortgage. If coverage is not secured or lapses, lenders have the right to assign insurance for the homeowner.
Coverage includes Building (structure, above ground appliances and property considered part of the building – to a maximum
of $250,000), Contents (clothing, furniture, some appliances, carpets – to a maximum of $100,000) and Replacement Cost (applies to single-family dwellings and residential condominiums).
Preferred Risk Flood Policies are available to owners of one-to-four family dwellings in low to moderate flood hazard areas to protect their home (to a maximum of $250,000) and contents (to a maximum of $100,000) in the event of a flood. Replacement cost coverage is also available for single-family homes and contents-only coverage is available to renters.
Anyone can buy flood insurance if their community participates in the NFIP. If eligible, policies must be purchased through an insurance company participating in the NFIP.
Flood insurance only covers physical damage caused by flooding up to the cost of actual damages or to the policy amount limit.
An existing flood insurance policy may be transferred to a new owner without a lapse in coverage.

Consideration For Flood Insurance Premimums

Year your home was constructed
Building occupancy
Number of floors
Location of contents
Your property’s Flood Risk Zone
Location of the lowest floor in relation to the elevation requirement on the flood map (newer buildings only)
The deductible you choose and the amount of building and contents coverage

When compared to the cost of rebuilding your home, replacing your personal effects, and housing yourself during that time, flood insurance should be an easy choice. The process has become more streamlined in the last ten years after the hard lessons of Hurricane Katrina. To help ensure the process goes smoothly should you need to file a claim, we recommend you take a yearly inventory of your home and your personal possessions. A video makes an excellent record and will help in case you have a claim. Be sure to store your inventory in a safe place such as a safe deposit box. Additional flood insurance questions may be answered by visiting FloodSmart.gov.

Editor’s note: This post was originally published April 2011. It has been updated with the most recent information and edited for clarity and cohesiveness.

Protect Your Home While on Vacation

May 24, 2016 By Chris Leave a Comment

Memorial Day is less than a week away and the sizzling summer’s heat and humidity is closely lurking here on the west coast of Florida. If you’re like many of us, you’re planning a vacation, a much-needed break from the norm complete with a full-body and mind attitude adjustment.

Once you’ve set your budget, destination, time away and how to get there and back, take some time to protect what you’re leaving behind. Sure, vacation will be sensational, and you probably won’t want to come home. Yet, eventually you will, and you’re going to want to find your house and belongings intact or in at least the same condition as when you left. Anything less can really kill the great vacation buzz you’ll still be floating on.

Take time to protect your home and all the things in it that you hold dear. Whether you’ll be gone for a week or a month, the most important thing you can do while you’re gone is to make your house look lived in and active.

Protect Your Home While on Vacation

Consider taking care of some of the following to tighten your security and protect your home while on vacation:

Schedule improvements. Vacation is a great time to have work, especially exterior work, done on your house, and the constant activity is a bonus. If you’re designing a new patio, maybe installing a pool, even redoing your landscape and irrigation plan, schedule it for while you’re away. It’s so much easier to come home to completed work, and not be under foot while everything is topsy-turvy. Plus, the activity discourages the bad guys.
Exterior lights on motion sensors. Most people have at least one or two exterior lights around their homes. Motion sensors to turn lights on when someone, or thing, comes too close for comfort are likely to discourage intruders and are simple to install.
Interior timers. These are great because you can place them throughout the house to turn lights on and off at specific times during the day and night. The only drawback is that if a savvy thief watches your house for a day or two, the schedule becomes obvious. If you have someone checking on the house, say, two or three times each week (make sure you trust this certain someone), ask them to move the timers around so there’s no clear pattern. Or, now available are apps for Smart Phones and tablets that you can use to turn lights on remotely, or even create a changing lighting schedule for the time you’re gone.
Trusted friends. Ask a trusted friend or nearby family member to periodically check on your home while you’re on vacation. Their activity will deter anyone nefarious. A friend can also take in your mail and any deliveries you may receive.
Hold your mail. Cascading mail out of your mailbox can be an “I’m out of town and the house is ripe for a rip-off” tip-off. If you don’t have a friend to help manage your house while you’re away, the easiest solution is to have your mail held. Check with the USPS to see how long they will hold mail. You can do the same with any newspapers you may receive. Be sure to have the publication credit your account for the copies you don’t receive.
Security Systems. Security systems can be as simple or as complex as you liked; some systems even let you watch a live feed of your home from your cell phone. Having one installed can have multiple benefits including peace of mind on vacation and a discount on your home owner’s insurance.
Say “no” to Facebook and Twitter. As much as you may want to tell the masses about all the fascinating events of your life, don’t broadcast to the world that your home will be empty or you may come home to a, well, empty home. Avoid “checking-in”, posting your travel dates and time, and upload photos once you return from vacation
Hire a sitter. A house sitter is someone who will live in your home while you’re on vacation. Obviously, you’ll want to be extremely selective when it comes to turning your keys, your house and your belongings over to someone else, so take every precaution before making this decision. Whomever you choose to live in your house, be very clear about how you expect your home to be treated while you’re away and what responsibilities they are to handle (pet care, lawn maintenance, etc.). It’s best to lock up anything of high or irreplaceable value.

Above all, once you’ve buttoned up your home, start your vacation knowing you’ve done all you can to keep your home and belongings safe – so go have a great, memorable time. Summer is just around the corner!

Editor’s note: This post was originally published in May 2013. It has since been updated and edited for clarity and cohesiveness.

Home Ownership: How to Take Hold of Your American Dream

March 15, 2016 By Chris Leave a Comment

Many Americans feel that one of the cornerstones of the American Dream is home ownership. It’s not secret the market is still recovering from the recession years but with considerable improvements in home values over the last two years coupled with still incredibly low mortgage interest rates, now is a fantastic time to take hold of your American dream.

Get Started

Check your credit history. You want your credit score as high as possible and your report needs to be squeaky clean. Aim for a score of at least 620. Remember – errors are not uncommon. If you find mistakes, contact the credit agencies immediately, as resolving them can take a lot of time and effort on your part.
Set your home buying budget and lifestyle budget and try it on for size for a few months. If you find that a larger mortgage payment makes your financial situation too tight for your liking, consider putting down a larger down payment or shopping in a lower price range. Only you know what you can afford, but the rule of thumb is approximately 2.5 times your annual gross income.
Get your mortgage pre-approved. Before you begin looking for your home, meet with a lender, review your finances and find out how much you can borrow. This will further help you determine a realistic price range, and could speed up the closing process.
Be sure you have ample funds available for a down payment. Lenders prefer 20 percent, but some will accept as little as 3.5 percent of the purchase price.

Seek Out Professional Help

Buying a home is complex. One of the key components to buying is working with an experienced, reputable and trustworthy real estate agent. He or she will be familiar with the local market and its fluctuations. They’ll also be familiar with different neighborhoods, local schools, and have on hand recommendations for inspectors, contractors, and engineers you may want to hire to thoroughly analyze the property before you make an offer. By working with a trusted and experienced real estate agent, you’re hiring a professional to help guide you through the buying process.

Once you have hired a Realtor, he or she will help you search for properties, advise you on how to make the best possible offer, draw up the necessary documents once an offer has been accepted, and guide you through the steps necessary to reach the closing table. Your relationship with your agent is a partnership so don’t feel hesitant to ask questions, voice your concerns, and have the Realtor advocate on your behalf.

Hounchell & Associates stands ready to provide you with unparalleled product knowledge, in-depth industry analysis, professional service and the honesty that has earned us a reputation for being a leader in the general real estate, pre-foreclosure, short sale and foreclosure markets in the Pinellas County area. Contact us today at 727-642-9107.

Editor’s note: This post was originally published in January 2011. It has been updated to reflect the most current information and edited for clarity and cohesiveness.

Claim Your Home Mortage Interest Deduction

December 15, 2015 By Chris Leave a Comment

Since 1913, American homeowners have been able to claim a mortgage interest deduction from their federal income taxes. There are limitations however; interest paid on first & second mortgages, lines of credit secured by real estate, and home equity lines of credit valued up to $1,000,000.00 or $500,000.00, if married and filing separately, is able to be deducted. After those limits are reached the remaining interest is not deductible.

Claiming Your Mortgage Interest Deduction

What do I need to do it claim the deduction?

First, fill out IRS Schedule A to determine whether your itemized deductions, including your mortgage interest, exceed your standard deduction. If they do, you’ll need to file the 1040 long form. Second, you’ll need Form 1098, your Mortgage Interest Statement, from your mortgage lender. This details the amount of interest and mortgage-related expenses you paid during the tax year you are filing for. Third, if you bought the property in the year for which you are filing, you’ll need the HUD-1 Settlement Statement form from your lender. This itemizes the fees you paid when you closed your loan.

If you prepare your own taxes, check out IRS Publication 936, the Home Mortgage Interest Deduction, and the instructions for filing Schedule A. If you use an accountant, he or she may simply need Form 1098 and the HUD form, but double check whether any additional documents are necessary.

Who qualifies for the deduction?

In order to qualify you must be legally liable for the loan. In other words, you’re not able to deduct mortgage payments you’ve made for someone else unless you’re legally liable to make the payments. Also, a qualified home, i.e. your primary or second home, must secure the mortgage. And, be sure to double-check that the mortgage interest deduction you claim on Schedule A and the amount on Form 1098 are the same.

Additionally, keep your 1098 Form and any worksheets you use to figure the amount of your deduction along with a copy of your return for as long as is legally necessary. If you need additional information, check the IRS for their guidelines.

Editor’s note: This post was originally published in January 2011. It has been updated with the latest information and edited for cohesiveness.

8 Tips For Planning Your Winter Stay in Florida

November 10, 2015 By Chris Leave a Comment

It’s that time of year when our northern seasonal visitors, aka Snowbirds, begin to flock south to enjoy our warmer weather, abundant Florida sunshine, beautiful Gulf of Mexico beaches and worry-free winter. But, before y’all leave your homes in Des Moines, Oshkosh, Ottawa and South Bend, here are a few things to keep in mind before you lock the door and walk away.

Plan ahead. If you’ve never left your home behind in search for Florida’s winter warmth, keep in mind that November through April are the busiest times of year for traffic, restaurants, shows, actually pretty much anything where you may have to wait. They’re also the best weather months. They’re a big part of why we live here. So now, put some thought to where you want to go and how long you want to stay. If you’ve never spent time in Florida you might consider splitting your time between two locations to taste the differences. We’re a bit partial to the west coast, especially the greater Tampa/St. Petersburg area.
Get a checkup. Be sure you’re in good enough health to make the drive south. Also, be sure to bring enough of your medications to last through your stay. If you must get your medications while here, be sure to bring your prescriptions. And make sure you’re up to date on any immunizations you may need. Consider getting a flu shot before you head out.
Get your paperwork in order. Make sure your important documents, i.e. investment reports, wills, etc., are updated and secure,
and have a close friend or family member who knows where to find them in case they’re needed at a moment’s notice.
Copy your travel documents. My wife and I always make two photocopies of all our travel documents, passports (make sure they’re up to date), credit cards (check expiration dates), etc. We keep one copy with us, and leave the other copy with a close friend or family member in case something is lost or stolen.
Travel insurance. For real peace of mind, travel insurance can’t be beat. It’s relatively inexpensive, and it provides you with coverage for cancellations or sickness. Most plans also cover irritating things like lost bags, and even a helicopter rescue if you’re planning on climbing Mt. Dora.
Pack smart. Remember, you’re coming to the tropics, so you don’t need that much. Chances are you’ll also be staying where there are laundry facilities. You can do a load or two on the ride down if need be. Keep in mind that you don’t need to buy all your shampoo, razor blades and Comet cleanser before you leave. Buy that stuff here; our local businesses will appreciate it.
Prepare your home. Have your mail forwarded, or arrange for it to be picked up and sent to you. Put your newspaper delivery on vacation. Clean out your refrigerator. Unplug your appliances and install light timers. If you’re home security system needs a check up, have it done now in case something needs to be done.
Share your plans. Make sure your friends and family know where you’re going (if indeed you want them to know), where you’ll be staying and how to get in touch with you in case of an emergency. At the very least, telling your friends in Buffalo that you’re “wintering” in Florida will make them turn purple with envy.

While you are here and are interested in seeing what is available within the St. Petersburg, Tampa real estate market, contact us. Hounchell Real Estate looks forward to having you here and reminds you that there’s never been a better time to buy that second home or vacation condo in St. Petersburg, Florida. We are the area’s leader in general real estate, pre-foreclosure, short sale and foreclosure markets throughout the Tampa/St. Petersburg area.

Editor’s note: This post was originally published December 2011. It has since been updated with the latest information and edited for clarity.

housing inventories have declined St. Pete-Tampa

November 14, 2013 By Chris Leave a Comment

Housing Inventories in St. Pete –Tampa have declined, the trend is now multiple offers – sellers love ‘em, buyers – not so much.

Housing inventories in the St. Petersburg – Tampa area have declined, and prices have recovered to the point that sellers with appropriately priced real estate are getting multiple offers, often full-price offers and more. That’s music to their ears. It puts them in a position to negotiate the highest and best offer, sometimes over appraised value. For buyers, it means they need to be ready to make an immediate decision and out maneuver the rest. For everyone, it can be stressful.

An experienced Realtor will guide you through the process. Multiple offers are not uncommon these days, but they need to be handled delicately, lawfully and ethically.

Sellers often want to immediately jump on strong offers, especially on houses that have just hit the market. But that’s not always the best decision. Often, a Realtor will advise the seller to step back and see if additional bids materialize. They usually do, and when they do the seller is in the position to select the best price and terms being offered, or ask the competing parties to come back with their best offers before they make a decision. Some Realtors and sellers will negotiate privately with each prospective buyer and then choose the winner.

Buyers never want to hear the phrase “multiple offers,” especially if they really want a particular home. And if they do really want that particular home, they need both to be patient and be armed with all the information a seller, Realtor or bank could ever need. The key is to show the seller you’re serious and you’re ready, willing and able to close the deal within his or her time frame.

Here are some key considerations for today’s multiple offer market:

Advice To Sellers In A Declining Inventory Market

Be patient. If your Realtor and you have priced your home competitively you’re likely to get multiple offers.
Trust your Realtor. He or she is well trained and experienced in handling multiple offers lawfully and ethically. Take their advice. You’ll be glad you did.
Understand and carefully consider all terms of the offer. For example, the highest bid may be contingent on the buyer securing financing, which may take time, if approved, while slightly lower cash bid may speed the process.
Consider ordering an inspection before listing your home. Once submitted to the buyer, this could also speed the closing process and give you important negotiating fodder.
Let buyers know you’re expecting multiple offers. It’s common courtesy, and it could kick start a buyer’s motivation to start with his or her best offer.
Don’t negotiate with buyers behind your Realtor’s back. That’s just wrong.

Advice To Buyers In A Declining Inventory Market

Ask the Realtor if there are multiple bids. They’re not legally bound to tell you, but the code of ethics say they must, if asked.
Don’t submit offers on multiple homes at the same time. Also unethical.
Ask if the seller has a recent property inspection report. If so, check out who prepared the report, when and fully understand any problems and solutions it addresses. If you’re unsure about the source of the report, order your own.
Make a large earnest money deposit, more than what’s required, if possible. The seller will understand you’re serious.
Have you lender provide you with preapproval documents.
If your offer is accepted, and the closing is really soon, be flexible with the sellers and give them ample time to gather all their stuff and go.
Lead with your best offer. Chances are you know the seller will get multiple offers. Go in strong. If your bid is accepted, you haven’t paid more than you were willing to and you can move ahead faster. If you don’t get the house, you can immediately move on to the next opportunity.
There will always be a next opportunity.
We’ve seen buyers present sellers with heartfelt personal notes as to why they want to buy their house. Most sellers have an emotional attachment to their home, and often want to see it in the hands of someone who will enjoy it as much. Hey, it can’t hurt.

But at the end of the day, trust your Realtor.

For more information, contact Chris today at 727-642-9107.

Home Security While On Summer Vacation

July 8, 2013 By Chris Leave a Comment

Home Security Systems Provide Theft Deterrence And Peace Of Mind While You Are Away On Summer Vacation

In a recent blog post we discussed steps you can take to have home security while you’re off on summer vacation. The most important point is to make your home look lived in and active by following the suggestions we outlined:

Have work done while you’re away
Install motion detectors and timers on exterior and interior lights
Put your mail and newspapers on hold
Don’t tell Facebook and Twitter readers you’re out of town
Have someone house sit your home.

One additional item deserving of its own blog is installing a security system, which is our topic today

Research indicates that a burglary is committed in the United States every 10 seconds. One in every 20 homes gets broken into. Barcley Estates, for example, is a St. Petersburg-Tampa neighborhood of about 283 households. If the previous statistic is applied, 15 of those homes will be burglarized. And if you purchased a home in the past two to four years, your chances of getting ripped off increase. Don’t become a statistic. Security systems can provide theft deterrence AND peace of mind.

Choosing The Right Home Security System:

Determine the number of doors and windows you need to protect from potential intrusion.
Decide where you’d like to have control panels and keypads installed.
Consider your family’s daily, and nightly, habits – is anyone up and about during the night? Does Fido roam the house while you’re sleeping? Answers to these questions will help decide whether and where to install motion detectors.
Do you require professional 24-hour monitoring, or can you self-monitor your system by phone and Internet?
Do you prefer a wireless or hardwired system?

With this information in hand, it’s time to choose whether to install a security system your self or hire a professional alarm company.

Assuming you’ll be hiring a professional, consider checking with your local police department to see how much time it takes them to respond to an alert from a monitoring company and [Read more…]

Get Flood Insurance Coverage

June 2, 2013 By Chris Leave a Comment

Hurricane Season Is Here…

Make Sure Your Home & Your Contents Are Covered By Flood Insurance Before It’s Too Late

The 2013 Hurricane Season officially gets underway Saturday, June 1 and lasts through the end of November. A great majority of homes in the St. Petersburg-Tampa area lie within a flood zone. Make sure you get flood insurance coverage before it’s too late.

More homes are damaged by floods in the United States than by any other natural disaster.

Superstorm Sandy, which in October of 2012 tore through the Caribbean, the Bahamas and along the United States’ east coast, resulted in nearly 150 deaths and damage totaling nearly $20 billion, not to mention $10 to $30 billion in lost business. Sandy was one of the most costly natural disasters in the United States. Winds topped 80 mph in Atlantic City, New Jersey. Tides were 20 percent higher than normal. Sandy brought flooding, downed trees and power lines, stranded residents, fires and about 8.5 million people were without power across 15 states.

According to the National Association of Insurance Commissioners (NAIC), roughly 33 percent of homeowners believe that flood damage is covered by a standard homeowners policy. Many of those in the path of Sandy now know better. You should, too.

Important Facts About Flood Insurance

♦ Flood insurance can only be purchased through an insurance agent. Rates are set by the federal government and are the same from agent to agent. To find an agent in your area, call the National Flood Insurance Program (NFIP) at 888-379-9531.

♦ Flooding can be due to hurricanes and tropical storms, rising river waters, and flash flooding from heavy rainstorms anytime of the year. The west coast of Florida is renown for its heavy rainstorms any time during the year.

♦ Homeowners living in a flood-prone area are four times more likely to experience a flood during their 30-year mortgage than those in higher lying areas.

♦ There is a 30-day waiting period from the time flood insurance is purchased until it goes into effect. If you live in a flood-prone area, buy your flood insurance now. Do not wait until a storm approaches.

♦ Homes and businesses in high-risk flood areas with mortgages from federally regulated or insured lenders are required to have flood insurance.

♦ Even if you live [Read more…]

Spring Home-Buying Season is Here

May 1, 2013 By Chris Leave a Comment

Spring Home-Buying Season Is Here – Clean Your House and Put Your Best Clean-Face Forward!

With warmer than normal temperatures already here, it may feel more like summer is upon us, but rest assured it’s still spring. This is the time of the year most homeowners tackle spring-cleaning chores, and buyers set out all over the St. Petersburg-Tampa area looking for a new home. So, if you’re selling your home, here are some handy and compelling tips on making it as enticing, attractive and sale ready as possible.

10 Tips To Give Your House The “Wow-WOW” Factor:

We’ve written before about how important curb appeal is to helping a prospective buyer get a great first impression of your house. We can’t stress enough how critical it is to create a “wow” factor right off the bat.

Start with the landscaping. The winter “browns” are over; rake then fertilize and cut your lawn, prune the bushes, pull the weeds and plant colorful flowers to give the front of your home some pizazz. Remove leaves from your flowerbeds, bushes and shrubs, and replace with a light covering of mulch to give areas a finished, well-maintained look. Remove and replace anything that didn’t make it through the long, cold west coast Florida winter.

2. Pressure wash the exterior. Florida’s state flowers may sometimes feel like mold and mildew, but they have no place residing on your house. Rent a pressure washer, and thoroughly clean everything from the fascia down. Buyers will think the inside is a mess if the outside looks like a biology experiment, and they will probably drive away without parking the car.

3. Identify repairs. In the process of pressure washing, you’re sure to find areas that need repainting and repairs that need to be completed. Make note of what they are, and take care of them as quickly as possible. Clogged gutters can become garden boxes. Clean them out before you have a Sequoia popping out of your roofline. You want your home to be in the best condition possible, not a state forest.

4. Paint your front door. Your home needs to be inviting. What better way than to give your entry a fresh new coat of paint, preferably in a color that contrasts and compliments the rest of the home’s color scheme. It shouldn’t take more than an hour to remove and paint the door, so no excuses. While you’re at it, replace or refresh any missing house numbers, put down a new welcome mat and remove any clutter from the entryway.

5. Shutter the clutter. You like all your stuff, your knick-knacks, your bobble head collection, your wall of stacked beer cans, but you’re alone on this one, trust us. No one else wants to see all that stuff. So get rid of it. Toss whatever you no longer want, [Read more…]

Home Sellers Light Up Your Home

April 25, 2013 By Chris Leave a Comment

Home Sellers: LIGHT-UP Your Home To Show It Off Better!

You’d think with all the sun we have here in the St. Petersburg-Tampa area that lighting the home you have for sale would be easy. The fact is that many Florida homes are designed to minimize the light coming indoors to reduce cooling costs, which is a great idea. But when you’re showing your home for sale, you want to emphasize its strongest qualities while toning down any weaknesses.

During our cooler months you can bring in more sunlight by opening as many windows as possible. But now that we’re into our annual cooling season, that may not be practical. Short of letting all that wonderful cold air escape outside, try to remove as much of whatever may be covering your windows. Pull your blinds all the way up. Consider creative approaches to tying back drapes. Move aside any furniture that could block incoming light. You will, of course, want to make sure your windows are squeaky clean inside and out.

Light-Up With Artificial Lighting Tips:

Strategically placed mirrors can be used to redirect natural as well as artificial light to those areas you want to emphasize. Mirrors also make spaces look larger, and if your home is less than palatial, that could be a very good sales tool.

When it comes to artificial lighting, be careful not to overwhelm a room. Tasteful table lamps, chandeliers and possibly track lighting can be used to direct a potential buyer’s attention to the area on which you want them to focus.

The kitchen is either the most important room buyers are looking at or close to it. Current styles promote open floor plans, lots of light, sparkling appliances and abundant counter space. Recessed ceiling fixtures you can aim in specific directions and hidden, under cabinet lighting can help make just about any size kitchen shine and appear larger.

Light up your home and let’s get it sold. Contact Chris!

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