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By: Helene Settle :
Practicing Brokers Agent for 29+ years
Access most recent
Charleston newsletter in PDF format.
Statisticians tell us that 86% of buyers look for homes on the
Internet before doing anything else. This tells us that Websites are
key to making your property sell. The newspapers, as you know, are
facing drops in sales as people move to the computer for their daily
news. I, and my company are staying on top of this and promoting your
property accordingly. Everyone seems to have a web site! The challenge
is to get your property in the top 10 sites when doing a real estate
search. Both I, and my company, have met that challenge. I have
had 4 web sites since 1996, all of them ranked high in quality and
content by Google, which means that they frequently come up in the top
10 when anyone is looking for property in the Charleston area. Your
property will be on them at all times if I am your agent.
Why The Difference In
Rates Between Conforming and Jumbo Mortgage Rates
One of the most common questions I receive today is why is there a
3/4%
spread between Fannie Mae loans up to $417,000 and the larger jumbo
loans.
The primary reason is risk. Fannie Mae has a standardized underwriting
engine that easily determines risk for all conforming loans. Thus
anyone
investing in these loans knows what they are buying.
When someone buys a bond fund that is made up of jumbo fixed rate
mortgages
that come from Chase, Citi and Washington Mutual, there is unknown
risk from
the loans that each bank sells. Where Fannie Mae sets the rules for
all
loans up to $417,000, each individual bank sets the rules for all
jumbo
loans. Thus the risk on jumbo loans can very greatly...and is often
hard to
predict.
Conforming and jumbo rates
remain low. Low rates combined with a buyers
market make it a great time to buy.
By: Lorcan Lucey
Coastal Homeowners
Insurance Update
There have been some recent changes to the coastal homeowners
(property) insurance market. In July, 2007, South Carolina expanded
the “Wind Pool”. The “Wind Pool” is the area on the coast in which
insurance policies for wind and hail are available through The South
Carolina Wind and Hail Underwriting Association (SCWHUA). The wind
pool includes most areas east of the Intracoastal Waterway plus
selected areas to the west. The SCWHUA policy has always been and
still is considered to be a market of last resort. As a result, the
premiums are high, limits of coverage (dwelling, contents, loss of use
combined) are limited to no more than $1,300,000, and the policy does
not provide as broad a coverage as your homeowners policy. The SCWHUA
policy is available for both residential and commercial properties.
There are many things that can be done to a home that may result in a
lower premium on your insurance policy (depending on the insurance
company you have selected). Hurricane shutters, hurricane straps, fire
and burglar alarm systems, and impact resistant windows are a few
items that you can investigate. If you are considering selling your
home, document any upgrades/ improvements you have made to your home
such as new plumbing, new heat and air system, electrical rewiring, or
a new roof. By providing this information to your buyer with copies of
receipts, it can make it easier for your buyer to find suitable
homeowners insurance and thus easier for you to sell your home. Flood
insurance is available and highly recommended. The National Flood
Insurance Program (NFIP) provides limits of coverage up to $250,000
for a dwelling and $100,000 for contents. Even though your mortgage
company
may not require you to purchase flood insurance, this does not mean
your home cannot be damaged by flood. All dwellings are located in a
Flood Zone! You should also consider purchasing an excess flood policy
to obtain limits higher than NFIP provides.
Article by:
Christopher G Silcox
C. T. Lowndes & Co.
966 McCants Drive
Archives:
End of August Update 2007
August Home Report 2007
Summer 2007 update
June Market
update
Fall 2006 update
Zillow House Values
Charleston
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