7 Key Questions to ask about your Mortgage

July 13th, 2010

Key Questions to Ask About Your Mortgage

Mortgage AdviceThis week I attended a seminar titled “Mortgage Industry Changes & New Requirements for 2010”. We reviewed the changes affecting underwriting, minimum buyer requirements, ARM’s, and short sales. I’ll be sure to inform potential buyers to plan for the changes, since debt to income ratios and credit scores will affect interest rates, loan eligibility, mortgage insurance rates and even closing of the purchase. Lenders are actually required to do a 2nd credit background check on a buyer’s financial situation prior to closing. If new credit was obtained the buyer must be re-qualified.

A helpful hand out from the Federal Reserve Board Consumer Protection Resource helps your buyers understand the terms of their loans by asking 7 questions about their mortgage:

 

1. Can my interest rate increase?

If you have an adjustable rate mortgage your interest rate can go up or down after a set period of time.

 

2. Can my monthly payment increase?

With some loans, your monthly payment could increase after a period of time, often by hundreds of dollars. This increase could be because you have a lower introductory rate, your property taxes or insurance premiums increase, or because in the beginning your monthly payment only covers the interest on the loan, and not principle owed.

 

3. Will my monthly payments reduce my loan balance?

Some loans let you pay only the interest on your loan each month. These payments do not pay down the amount you borrowed. As a result, if you have this type of ‘interest only’ loan, you may not be building up any equity in your home.

 

4. Even if I make monthly payments, can my loan balance increase?

Some loans let you choose to pay even less than the interest owed each month. This unpaid interest is added to your loan balance and increases the total amount that you owe. This could cause you to lose equity in your home over time.

 

5. Could I owe a prepayment penalty?

Some loans charge you a large fee if you pay off your loan, refinance it, or sell your home within the first few years of the loan. This penalty fee could be thousands of dollars.

 

6. Will I owe a balloon payment?

Some loans require a very large payment at the end of the loan – sometimes tens of thousands of dollars. If interest rates go up or if the value of your property drops, you may not be able to refinance your loan prior to making this large payment.

 

7. Will I have to document my employment, income, and assets to get this loan?

Sometimes a lender will make a loan without requiring you to show that you are employed and have the income or assets to repay the loan. These no-documentation or low-documentation loans usually have higher interest rates or higher fees than other loans.

Do you have any other advice? Please leave your comment and good luck!

Outdoor Lighting for Curb Appeal and Safety

June 23rd, 2010

This is part 4 of a 4 part series on ‘Exterior Upgrades’.  You’ve now painted, added a new front door and placed colorful ground cover in your front and back yard.  Unfortunately, your fantastic curb appeal is only visible during daylight hours.  It’s time to think about exterior lighting.

Regards,
Michael Collins – Broker

outdoor lamp

Outdoor Lighting for Curb Appeal and Safety

Article From HouseLogic.com

By: Dave Toht
Published: March 18, 2010

Well-planned outdoor lighting improves curb appeal, safety, and security for your home.

Think about it: Most of your guests (and if your home is on the market, many would-be buyers) see your home only in the evening, when its best features may be lost in the shadows. Well-executed outdoor lighting enhances architectural detail and plays up landscape features, casting your home in the best possible light and adding an abundance of curb appeal.

Outdoor lighting also adds value. Judith Patriski, an appraiser and owner of Quad Realty Co. near Cleveland, estimates that for upper-bracket homes, an investment in outdoor lighting can yield a 50% return. “When you pull into a driveway and see a gorgeous home, you’re going to pay more for it,” says Patriski.

And she emphasizes that it’s not only about aesthetics: “In all price ranges, lighting for security is important”–both to protect against intruders and falls. Here are the elements of successful outdoor lighting.

Mimicking moonlight

Much of the success of exterior lighting hinges on its design. Hang around lighting designers long enough and you’ll hear a lot of talk about “moonlight effect.” That’s a naturalistic look that features light no more intense than that of a full moon, but still strong enough to make beautiful shadows and intense highlights.

Other techniques outdoor lighting designers use:

          •Highlight trees: Whether illumined from below or given presence by a light mounted in the tree itself, trees make stunning features.

          •Use uplights: Uplighting is dramatic because we expect light to shine downward. Used in moderation, it’s a great way to highlight architectural and landscaping features.

          •Have a focus: The entryway is often center stage, a way of saying, “Welcome, this way in.”

          •Combine beauty and function: For example, adding lighting to plantings along a pathway breaks up the “runway” look of too many lights strung alongside a walk.

          •Vary the fixtures: While the workhorses are spots and floods, designers turn to a wide range of fixtures, area lights, step lights, and bollards or post lights.

          •Stick to warm light: A rainbow of colors are possible, but most designers avoid anything but warm white light, preferring to showcase the house and its landscape rather than create a light show.

          •Orchestrate: A timer, with confirmation from a photocell, brings the display to life as the sun sets. At midnight it shuts shut down everything but security lighting. Some homeowners even set the timer to light things up an hour or so before dawn.

Adding safety and security

Falls are the foremost cause of home injury, according to the Home Safety Council. Outdoors, stair and pathway lighting help eliminate such hazards.

Often safety and security can be combined. For example, motion-detecting security lighting mounted near the garage provides illumination when you get out of your car at night; the same function deters intruders. Motion detecting switches can also be applied to landscape lighting to illumine shadowy areas should anyone walk nearby.

Even the moonlight effect has a security function: Soft, overall landscape lighting eliminates dark areas that might hide an intruder, exposing any movement on your property. Overly bright lights actually have a negative effect, creating undesirable pockets of deep shadow.

Switching to LEDs

Once disparaged for their high cost and cold bluish glow, LEDs are now the light source of choice for lighting designers. “They’ve come down in price and now have that warm light people love in incandescent bulbs,” says Paul Gosselin, owner of Night Scenes Landscape Lighting Professionals in Kingsland, Texas. “We haven’t installed anything but LEDs for the last year.”

Although LED fixtures remain twice as expensive as incandescents, installation is simpler because they use low-voltage wiring. “All in all, LEDs cost only about 25% more to install,” Gosselin says. “And they’ll save about 75% on your electricity bill.”

Another advantage is long life. LEDs last at least 40,000 hours, or about 18 years of nighttime service. With that kind of longevity, “why should a fixture have only a two-year warranty?” asks Gosselin. He advises buying only fixtures with a 15-year warranty, proof that the fixture’s housing is designed to live as long as the LED bulbs inside.

Innovations

The growing popularity of exterior lighting has led to innovative fixtures. Here are some bright new ideas:

          •Solar lighting:When first introduced, solar pathway lights produced a dull glow that rarely made it through the night. They do much better now that they are equipped with electricity-sipping LEDs, more efficient photovoltaic cells, and better batteries. Still, they have yet to measure up to hard-wired systems.

          •Hybrids: Porch lights now come equipped with LED lighting for all night use, and a motion sensor that clicks on an incandescent bulb to provide extra illumination as you approach the front door. Hybrids use about 5% of the power a solely incandescent fixture requires.

          •Barbecue light:Tired of grilling steaks by flash light? Now you can buy a gooseneck outdoor light, ideal for an outdoor kitchen.

Estimating the cost

Total outdoor lighting costs will vary according to the size of your home and the complexity of your lighting scheme. Expect to pay about $325 for each installed LED fixture. LEDs also require a transformer to step the power down from 120 volts to 12 volts, running about $400 installed.

A motion detector security light costs about $150 installed. Porch lights and sconces range from $100 to $250 installed, depending the fixture and whether running new cable is necessary.

Contractor-installed outdoor lighting for an average, two-story, 2,200 sq. ft. house might add up as follows:

          •7 fixtures to cover 100 feet of LED pathway lighting: $2,275

          •Transformer: $400

          •4 LED uplights to dramatize the front of the house: $1,300

          •2 LED area lights for plantings: $650

          •2 motion detector security lights: $300

Total cost: $4,925

Dave Toht has written or edited more than 60 books on home repair and remodeling, including titles for The Home Depot, Lowe’s, Better Homes & Gardens, Sunset, and Reader’s Digest. A former contractor, Dave was editor of Remodeling Ideas magazine and continues to contribute to numerous how-to publications.
Rock Realty
Rock Solid Real Estate Strategies
PO Box 2444
Janesville, WI 53547-2444
c: 608.921.8536
f: 877.774.7625
Mike@RockRealtyWI.com
http://www.rockrealtywi.com/

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Low-Maintenance Lawn Alternatives: Ground Cover

June 23rd, 2010

This is part 3 of a 4 part series on ‘Exterior Upgrades’.  Keeping on the theme of curb appeal, the article below covers ‘ground cover’.  Are you looking to decrease the amount of time it takes to mow your lawn?  Not only will these ground cover suggestions substitute for areas of your lawn, but they will bring color as well!

Regards,
Michael Collins – Broker

Creeping Flocks

Low-Maintenance Lawn Alternatives: Ground Cover

Article From HouseLogic.com

By: Laura Fisher Kaiser
Published: March 18, 2010

If you want a yard that demands less time, money, and water, consider ground cover rather than a traditional lawn.

Americans have long had a soft spot for lawns. Turf grass covers nearly 47 million acres in the U.S., according to the Lawn Institute. But there’s plenty that’s not green about all that green. For starters, the average household dumps 60 gallons of water a day on conventional lawns. Toxic lawn herbicides and pesticides run off into lakes and streams. Gas-powered mowers spew pollution into the air. And then there’s all that time spent watering, weeding, seeding, sodding, thatching, and mulching.

If you’re looking for an alternative, consider replacing some or all of your high-maintenance turf with ground covers that form walkable “carpets,” and innovative grasses (http://www.houselogic.com/articles/low-maintenance-lawn-alternatives-turf-grasses/) that require little or no water or mowing once established.

In turn, you’ll reduce the need for irrigation, stop washing harmful chemicals into the watershed, add depth and texture to your landscape, and spend your spare time enjoying your yard instead of manicuring it.

Creeping perennials, clover, and other ground covers

There’s a ground cover to meet most needs, whether you’re planting a pathway, a hedge, or a broad swath of green. They run the gamut of foliage textures and colors, and many have wonderful flowers. Some varieties are ground-hugging and feel delicious under bare feet. Others grow up to two feet tall, making them ideal as barriers or landscape punctuation.

Look for attributes that meet your needs: child-durable, deer-resistant, drought-tolerant, shade-loving. Mixing them up is not only aesthetically pleasing, it’s also good for the landscape: Diversity increases resistance to pests and disease and reduces the need for fertilizer and pesticides. Here are some popular choices.

Creeping perennials:Tight to the ground, these plants are especially good for cushy green carpets. They keep out weeds and allow air, water, and nutrients to get to plant roots. Many work equally well in rock gardens or in crevices between stepping stones, in full or partial sun. These include mat-forming New Zealand Brass Buttons (Cotula squalida) and Scotch or Irish Moss (Sagina subulata), which isn’t a moss at all but a perennial that forms a cushiony blooming carpet.

Some, like Blue Star Creeper (Laurentia fluviatilis), which has tiny green foliage, bear up to heavy foot traffic. Creeping Jenny (Convolvulus arvensis) has an extensive root system that makes it quick to spread and tough to kill. That’s a good thing if you’re looking for a tough turf alternative but a problem if it creeps into beds where you don’t want it.

Besides being good creepers, many ground-hugging perennial herbs are often nicely scented, hardy under foot traffic, and even edible. These include chamomile (Chamaemelum nobile), which has fern-like foliage and white flowers with yellow centers; Corsican mint (Mentha requienii), which thrives in shade, exudes a minty smell when trod upon, and is edible; and various thymes (Woolly, Red, Prostrate), which feature dainty flowers and work well between pavers or as a low mounding carpet.

Creeping perennials cost $6 to $10 per plant. A 15-by-20-foot area with plants 2 inches apart (for instant density) requires 300 plants. But if you’re patient enough to wait a year or so for them to spread, you can buy fewer plants and space them 12 inches apart.

Clover:Although clover has gotten a bad rap as a weed, it’s actually not a weed at all. In fact, a clover lawn (or, for high-traffic areas, a clover-grass mix) has many advantages. Sweet-scented, inexpensive, and quite durable, white clover (Trifolium repens) grows in any kind of soil, stays green even during low-water periods, and feels lovely underfoot.

Low-growing clover doesn’t need regular cutting, nor does it need fertilizer, but an occasional mow will encourage new growth and discourage bees. If you don’t mind the bees, consider letting your clover bloom, which benefits the bees and the environment. Clover is one of the least expensive groundcover options, costing about $4 to seed 4,000 square feet.

Laura Fisher Kaiser writes about architecture, design, and sustainability. She is in the process of letting clover, moss, and creeping jenny take over what’s left of her Washington, DC, lawn.
Rock Realty
Rock Solid Real Estate Strategies
PO Box 2444
Janesville, WI 53547-2444
c: 608.921.8536
f: 877.774.7625
Mike@RockRealtyWI.com
http://www.rockrealtywi.com/

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Choosing an Exterior Door

June 23rd, 2010

This is part 2 of a 4 part series on ‘Exterior Upgrades’.  In the last article we learned how to properly paint the exterior of your home.  When your home has a fresh coat of paint, it should pop and stand out from the homes next to it.  What if your front door still looks sub-par??  Read the article below before choosing an exterior door.  There are quite a few difference between door materials.

Regards,
Michael Collins – Broker

Doors 9

Choosing an Exterior Door

Article From HouseLogic.com

By: Karin Beuerlein
Published: December 28, 2009 

You should understand the pros and cons of steel, fiberglass, and wood exterior doors before choosing the one that’s right for you.

Replacing your front door can pay for itself or even turn a profit by increasing your home’s value, according to Remodeling Magazine’s annual Cost vs. Value Report (http://www.remodeling.hw.net/2009/costvsvalue/national.aspx).

What’s more, if you choose an energy-efficient exterior door, you may qualify for a tax credit (http://www.houselogic.com/articles/tax-credits-replacing-windows-doors-and-skylights/) that can offset 30% of the purchase price as well as trim up to 10% off your energy bills. With utility bills averaging $2,200 annually, that’s a savings of as much as $220.

But how do you know which door is right for you? Make your decision by comparing the three main materials available for exterior doors: steel, fiberglass, and wood.

Steel

If you’re looking to save money, a steel door may be a good choice, particularly if you have the skills to hang it yourself. A simple, unadorned steel door can sell for as little as $150 (not including hardware, lock set, paint, or labor) and typically runs as much as $400 at big-box retailers. Steel offers the strongest barrier against intruders, although its advantage over fiberglass and wood in this area is slight.

Even better, replacing your entry door with a steel model actually reaps a profit in added home value. Remodeling Magazine estimates the total project cost of installing a 20-gauge steel door at about $1,200–and the project, on average, returns about 129% of cost or $1,400.

Still, the attractive cost of a steel door comes with an important caveat: Its typical life span under duress is shorter than either fiberglass or wood. A steel door exposed to salt air or heavy rains may last only five to seven years, according to Bob Bossard, general manager of 84 Lumber in Clarksville, Del. Despite steel’s reputation for toughness, it actually didn’t perform well in Consumer Reports testing against wood and fiberglass for normal wear and tear.

With heavy use, it may dent, and the damage can be difficult and expensive to repair. If your door will be heavily exposed to traffic or the elements, you may be better off choosing a different material.

Fiberglass

Fiberglass doors come in an immense variety of styles, many of which accurately mimic the look of real wood. And if limited upkeep is your ideal, fiberglass may be your best bet. “Nothing is maintenance-free,” Bossard says, “but fiberglass is pretty close. And it lasts twice as long as wood or steel.”

Fiberglass doesn’t expand or contract appreciably as the weather changes. Therefore, in a reasonably protected location, a fiberglass entry door can go for years without needing a paint or stain touch-up and can last 15 to 20 years overall. Although it feels light to the touch, fiberglass has a very stout coating that’s difficult for an intruder to breach; and its foam core offers considerable insulation.

Fiberglass generally falls between steel and wood in price; models sold at big-box stores range from about $150 to $600. Remodeling Magazine lists the cost of a fiberglass entry-door replacement project at around $3,500. Although a fiberglass door doesn’t generate as high a return as a steel door, it recoups about 65% in home value.

Wood

Wood is considered the go-to choice for high-end projects; its luxe look and substantial weight can’t be flawlessly duplicated by fiberglass or steel, though high-end fiberglass products are getting close. If your home calls for a stunning entry statement with a handcrafted touch, wood may be the best material for you.

Wood is usually the most expensive choice of the three–roughly $500 to $2,000, excluding custom jobs–and requires the most maintenance, although it’s easier to repair scratches on a wood door than dents in steel or fiberglass. Wood doors should be repainted or refinished every year or two to prevent splitting and warping. (Remodeling Magazine’s 2009-2010 Cost vs. Value Report doesn’t include a wood entry-door replacement project.)

If you’re concerned about the environmental impact of your door as well as its energy efficiency, you can purchase a solid wood door certified by the Forest Stewardship Council (http://www.fscus.org), which assures you that the wood was sustainably grown and harvested.

Tracing the environmental impact of a particular door–from manufacturing process to shipping distance to how much recycled/recyclable content it contains–is quite complicated and probably beyond the ken of the average homeowner, notes LEED-certified green designer Victoria Schomer. But FSC-certified wood and an Energy Star rating are an excellent start.

A final note on choosing a door based on energy efficiency: Because efficiency depends on a number of factors besides the material a door is made of–including its framework and whether it has windows–look for the Energy Star label to help you compare doors. To qualify for the federal tax credit, look for solar heat gain coefficient and U-factor values less than 0.3.

Karin Beuerlein has covered home improvement and green living topics extensively for FineLiving.com, FrontDoor.com, and HGTV.com. In more than a decade of freelancing, she’s also written for Better Homes & Gardens and the Chicago Tribune. She and her husband started married life by remodeling the house they were living in. They still have both the marriage and the house, no small feat.
Rock Realty
Rock Solid Real Estate Strategies
PO Box 2444
Janesville, WI 53547-2444
c: 608.921.8536
f: 877.774.7625
Mike@RockRealtyWI.com
http://www.rockrealtywi.com/

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10 Steps to a Perfect Exterior Paint Job

June 23rd, 2010

This is part 1 of a 4 part series on ‘Exterior Upgrades’.  Most everyone has heard that curb appeal is one of the biggest factors in the mid of the potential home buyer.  Creating a nice exterior look and presence will increase the number of buyers who want to look at your home & the amount you will eventually receive on an offer.  So what can you do to help your home’s curb appeal?

I’ve found 4 articles that should help you with some ideas.  The first and most striking item you can address is painting your homes.  This of course applies to Wood and Aluminum sided homes.  Painting will make a HUGE difference, but you want to do it right.  Read below for details…

Regards,
Michael Collins – Broker

10 Steps to a Perfect Exterior Paint Job

Article From HouseLogic.com

By: Joseph D’Agnese
Published: March 01, 2010 

A good exterior paint job isn’t cheap, but done right, it can easily last 10 or more years. To get the most for your money, follow these steps.

At first glance, the days of wood home exteriors seem long gone. According to U.S. Census Bureau data, homes with wood siding comprise less than 10% of all new residential construction, the lowest usage of any exterior material.

But if you’ve got wood siding, there’s a solid, money-in-the-bank reason why you’d want to repaint rather than switch to fiber-cement, brick, or vinyl. In the short term, repainting or staining costs less. A midrange vinyl siding replacement project will cost you around $10,000, according to Remodeling Magazine’s Cost vs. Value report (http://www.remodeling.hw.net/2009/costvsvalue/national.aspx). By comparison, hiring a pro to repaint the same 2,000-square-foot, two-story house costs $4,000 to $6,000.

True, if you’re planning to stay in your house for a long time, you’ll have to spend that money again. But properly applied, exterior paint can easily last 10 years or longer. The key to a successful job is in the preparation. Here are the steps to take to make sure you get perfect results.

Step 1: Check for lead paint

Beginning April 22, 2010, all paint contractors must observe EPA regulations for lead-safe practices and be certified to perform this work. The rule applies to houses built before 1978, when lead paint was banned for residential use, especially those that are occupied by children. (Do-it-yourselfers are exempt.)

To protect against airborne lead particles, contractors must take steps to keep paint dust to a minimum: collecting scrapings, cleaning with a HEPA vacuum, wearing masks and Tyvek suits, and disposing of all materials at an approved hazardous materials site.

The first step is to initiate the process with a lead paint test (homeowner kits are available for $10 to $15 online or at paint and hardware stores). Following the new rules will add as much as 10% to 20% to the cost of a contracted paint job. But since many contractors are still unaware of the regulation, costs will vary widely.

Step 2: Wash the exterior

Pigment won’t adhere well if you don’t wash grime off the house first. A good cleaning agent is water mixed with a phosphate-free cleanser such as Jomax House Cleaner or Green Clean by Sherwin-Williams, which won’t harm plantings. “You want to clean off everything: dust, dirt, and mildew,” says Paul Dixon of Bionic Man Painting, in Asheville, N.C. “A lot of people don’t, and then wonder why the paint comes off.”

Mildew, in particular, thrives under fresh paint. A good wash will kill spores so they don’t proliferate. You can hand-apply the solution with a sponge, but that requires a lot of up-and-down on a ladder. Most contractors simply apply solution with a pressure washer.

Step 3: Scrape off loose paint

Once clapboards are dry, remove loose, flaking paint. A handheld scraper is usually the best tool for the job, though you can also use a hot-air gun or infrared paint stripper. Never use an open-flame torch. They can easily cause a fire and are illegal in most states unless you have a permit. To work lead-safe, you must wear a mask and Tyvek suit, spray water on the paint as you scrape, and collect the debris.

Step 4: Sand rough spots

A pad sander or random-orbit sander fitted with 50- to 80-grit sandpaper will smooth out any remaining rough spots, but take care not to push so hard that you leave sander marks in the wood. As with the previous step, sanding lead-safe means working masked, wetting as you go, and using sanders fitted with HEPA filters.

Step 5: Fill and repair

Inspect what you’ve uncovered and make some decisions. Minor holes or dings in the siding can be easily filled in with a patching putty or compound such as Zinsser’s Ready Patch ($20 per gallon). If you’ve got a major rot problem, summon a carpenter to replace the bad wood.

Step 6: Apply a coat of primer

Apply primer as soon as possible after the previous step. White, gray, or tinted primer provides an even base for topcoats to adhere to, and a uniform canvas from which to survey your work. “Once you get the primer on, now you can see what’s really going on,” says Mario Guertin, a contractor with Painting in Partnership, in Palatine, Ill.

Small gaps in joints and around doors, windows, and other spots where horizontals meet verticals will all stand out in high relief, showing you where you need to fill in with caulk.

If you’re painting over bare wood or existing latex paint (http://www.houselogic.com/articles/exterior-paints-and-stains-guide-options/), then latex primer is fine. But if you’re painting over multiple coats of oil-based paint, it’s best to stick with a new coat of oil-based primer.

Step 7: Caulk all joints

Siliconized or top-of-the line polyurethane acrylic caulks give paint jobs a smooth, pleasing look. But the benefits aren’t purely aesthetic. Tight joints also prevent air leaks and block water penetration. It’s worth springing for $7-a-tube polyurethane caulks with 55-year warranties, which will stand up to weather better than 35-year caulks costing less than $3. The average house requires about 7 tubes of caulk; contractors buy them in 12-pack cases and use them for several jobs.

Step 8: Choose the right paint

No-brainer here. Painting with water-based acrylic latex is so much easier than dealing with oil-based paints. But choose finishes carefully. As a rule, the higher the sheen, the better the paint is at blocking the sun’s damaging rays. Satin is fine for shingles or clapboards, but you’ll want gloss paint to protect high-traffic parts of a house, such as window casings, porches, and doorframes. A gallon of premium exterior latex costs $35 to $45.

Step 9: Apply top coat(s)

There is such a thing as too much paint. The more layers, the more likely the paint is to flake off years later. Tread lightly. If you’re going from a white house to yellow or cream, you might be able to get by with one coat. Going from a light to a dark house, and vice versa, usually requires two coats.

Step 10: Practice good maintenance

You can extend the life of a good paint job by inspecting the caulk every year, replacing any that’s cracked or missing, and doing minimal touch-up-all easy jobs for homeowners to do themselves.

Joseph D’Agnese is a journalist and book author who has written numerous articles on home improvement. He lives in North Carolina.
Rock Realty
Rock Solid Real Estate Strategies
PO Box 2444
Janesville, WI 53547-2444
c: 608.921.8536
f: 877.774.7625
Mike@RockRealtyWI.com
http://www.rockrealtywi.com/

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Drunk Driver hits Speed Trailer in Rock County WI

June 22nd, 2010

Have you seen these Speed Trailers before? We actually have some permanant ones attached to poles in our area.  You know the ones…. as your car approaches the speed trailer, the speed at which you are going is displayed to everyone within viewing distance?  Annoying, right?

In general, I have to say that I don’t mind these speed trailers.  As long as they are not taking photos of my license plate, they are something I can deal with.  They probably DO result in people going slower, so I guess it’s better for the neighborhood.  I do have a bit of advice though.  These trailers are owned by the police.  Maybe you have heard of them.  Whatever you do, please refrain from hitting these trailers when you are drunk!  Only in Wisconsin!  (well, maybe not… but possibly most often in Wisconsin LOL)

Read the full story HERE.

Regards,
Michael Collins – Broker
Rock Realty
Rock Solid Real Estate Strategies
PO Box 2444
Janesville, WI 53547-2444
c: 608.921.8536
f: 877.774.7625
Mike@RockRealtyWI.com
http://www.rockrealtywi.com/

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Q&A: Emergency Preparedness for Homeowners

June 17th, 2010

Part 4 of 4 on Emergency Preparedness.  You may still have some questions on preparing for an emergency.  Read through the Question and Answer article below.  You may just find your answer there.

I hope you enjoyed this small 4 part series of information!

Regards,
Michael Collins – Broker – Rock Realty

Q&A: Emergency Preparedness for Homeowners

Article From HouseLogic.com

By: Mike DeSenne
Published: March 31, 2010

HouseLogic talks to Red Cross disaster response expert Court Ogilvie about emergency preparedness for homeowners.

Emergency preparedness starts at home. Because disasters, from floods and fires to hurricanes and tornadoes, can strike without warning, it’s critical to have a disaster response plan in place almost from the moment you buy a house.

“I really can’t overstate the importance of thinking things through,” says Court Ogilvie, chief of staff to the senior VP of disaster services at the American Red Cross. “Simply put, the biggest tool we have in our disaster toolkit is our brains.”

Homeowners should devote an hour to a family meeting about emergency preparedness. Discuss evacuation and communication (http://www.houselogic.com/articles/create-an-evacuation-and-communication-plan/) in the event of disaster, and take action to assemble an emergency kit (http://www.houselogic.com/articles/create-a-home-emergency-preparedness-kit/). You can make your own kit (http://www.ready.gov/america/getakit/index.html) or purchase a pre-made emergency kit (http://www.redcrossstore.org/Shopper/Product.aspx?UniqueItemId=3). It’s a wise investment of time and money.

“Recent studies suggest that every dollar invested in preparedness nets a post-event return of $4 to $7,” says Ogilvie. “With homes being the biggest investment that many of us will ever make, disaster preparedness needs to be considered as another way to protect that investment.”

Here’s what else Ogilvie had to say about emergency preparedness for homeowners.

HouseLogic: When it comes to disaster preparedness, what’s the last thing homeowners think about that should, in reality, be the first thing they think about?

Court Ogilvie: Typically, preparedness puts a lot of emphasis on consumables–on building a kit and having supplies on hand–and those are certainly important things to do. But there is a sequence to ensuring that you are prepared, and you can’t assemble the right kit until you’ve thought about the people that might use it, why they might use it, and when they might use it.

Most of the threats we face in our homes are predictable–home fires, natural hazards common to our location, gas leaks–things that we would identify as possibilities if we just stopped to think about them before they occurred. So the first thing we should all be thinking about related to preparedness is, what is a possible or likely occurrence in my new home or neighborhood?

So make a plan for it, talk about the possibilities with your family members, and have those conversations well ahead of any emerging threat. This doesn’t have to be some big formal family meeting; it just needs to happen after you get to know your new home and begin to understand some of the things that might threaten it or your family.

HL: When should homeowners start preparing for a disaster?

CO: I’d say you should start to prepare at the closing, but I guess that might be a little early! But certainly you need to start as soon as you get in your home and get to know your surroundings.

Some of the things you might do are standard homeowner things, like ensuring that you have working smoke detectors and understanding how you would get out if there is a fire. But it’s also important to know what’s around you that might create an urgent situation, both inside and outside of your home.

HL: Can you talk a bit about specific disasters?

CO: Each disaster presents a different type of threat, and it’s important that you get to know the most likely threats in your area. There are some great checklists available free of charge that discuss different events.

For hurricanes (http://www.redcross.org/www-files/Documents/pdf/Preparedness/checklists/Hurricane.pdf), the very first thing that the Red Cross suggests is to listen to the radio to stay informed about the storm’s course and to keep abreast of evacuation plans for your community. For tornadoes (http://www.redcross.org/www-files/Documents/pdf/Preparedness/checklists/Tornado.pdf), we suggest that you get to know your community’s warning systems very well, and that you have a safe room identified in your home.

HL: What if I don’t live in a disaster-prone area? Do I still need a plan?

CO: You know, we get this question more than you might think. I suppose it’s because disaster response is defined by these big events–big hurricanes, floods, wildfires–with dramatic images captured by the media. But those events are actually the exceptions.

The majority of disasters in this country affect just a single home. The Red Cross responds to more than 70,000 disasters a year, and most of them are single-family events that don’t even make the local news.

These numbers tell us that preparedness needs to be serious business, but the planning doesn’t have to be all gloom and doom. Many families have fun with the planning activities, and it can certainly take a lot of the fear out of events.

HL: What should homeowners be thinking about in the immediate aftermath of a disaster?

CO: Recent research shows that people think that help will magically arrive at their doorstep within three hours of an event, and that is quite simply not the case. You need to take charge of your own safety, by having a plan, by having the right supplies on hand, and by staying informed.

Post-event, your continued safety is obviously the most critical concern. When you put your plan in place, you should be sure that it includes listening to the authorities, evacuating if that’s what’s necessary, and taking any other steps that authorities are recommending for your particular home or community.

Once you are sure that you are safe, you might think about reporting any dangerous situations that you can safely see–maybe there’s a downed power line–checking on an elderly neighbor, or perhaps notifying loved ones from outside the affected area that you are OK. And if you are out of the area and it isn’t yet safe to return, then stay away.

Mike DeSenne is Online Managing Editor at HouseLogic.com. Living on the East Coast, he’s weathered his fair share of Nor’easters, tropical storms, and hurricanes.
Rock Realty
Rock Solid Real Estate Strategies
PO Box 2444
Janesville, WI 53547-2444
c: 608.921.8536
f: 877.774.7625
Mike@RockRealtyWI.com
http://www.rockrealtywi.com/

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Insuring Against Natural Disasters

June 17th, 2010

Part 3 of 4 on Emergency Preparedness.  It’s very important to also review your insurance policies.  You may be surprised at what disasters are not covered.  We have had quite a bit of flooding in this area over the past few years.  When damage to my home’s basement was determined as ’seepage’, I received the news that my insurance would not cover the repairs.  You can stay out of a situation like mine by purchasing extra insurance for flooding and other natural disasters.

Regards,
Michael Collins – Broker – Rock Realty

Insuring Against Natural Disasters

Article From HouseLogic.com

By: Gwen Moran
Published: August 28, 2009

Your homeowners insurance covers many of life’s disasters, just not some natural disasters like earthquakes and floods, so consider supplemental policies.

Homeowners insurance can protect you from many of life’s calamities, but your policy doesn’t shield you from all of the tricks Mother Nature has up her sleeve. In fact, standard policies specifically exclude most natural disasters.

In some areas of the country, where the risk is higher, hurricanes and earthquakes are often exempted. Some policies may cover flooding from rain, but exclude water damage from tidal surges, which can be a far greater threat. Enter disaster insurance, which covers losses sustained from specific catastrophes that traditional homeowners policies avoid.

While supplemental disaster coverage is usually available to at-risk property owners, buying a policy isn’t always a no-brainer. The high premiums and deductibles, and low chance of a disaster actually striking your home, give reason for pause. Before calling your agent consider your risk-tolerance, and conduct your own personal cost-benefit analysis.

Flirting with disaster insurance

Before you begin shopping around for disaster insurance, you need to look at your existing homeowners policy (http://www.houselogic.com/articles/homeowners-insurance-time-for-annual-check-up/) to determine which events are covered and which are excluded, says Larry Cochran, CEO of IAS Claims Services, an independent claims adjusting firm in San Antonio, Texas. Read all of the endorsements carefully. If you still have questions, call your insurance agent for answers.

Once you understand what’s already covered, you need to evaluate the specific disaster risks where you live. The office of your state’s insurance commissioner is a good place to start. The Federal Emergency Management Administration (http://www.fema.gov/hazard/index.shtm) has information about various types of natural hazards and data on the history of disasters in various regions. The National Flood Insurance Program (http://www.floodsmart.gov/floodsmart/) offers flood maps and guidelines for evaluating risk.

Depending on the region where you live (http://www.houselogic.com/articles/the-right-disaster-insurance-for-your-region/) and risk you’re trying to cover, you may be able to find insurance for specific disasters through a traditional carrier. For high-risk areas, many states have so-called residual markets, which are subsidized insurance pools to provide coverage. The NFIP is a federally run program that offers flood insurance to homeowners in most risk-prone communities.

It’s important to check out the company that will be insuring your home, says Illinois Insurance Director Michael McRaith. Talk to friends and neighbors about their experiences with their carriers. Also visit the website of an insurance rating company like A.M. Best (http://www.ambest.com/) to see how various carriers are rated. (Free online registration is required to access insurers’ ratings.) The higher the rating for the insurance company, the more financially stable it is.

Timing too is important when it comes to disaster insurance, since flood insurance may have a 30-day waiting period before it goes into effect. “Trigger” events may also limit your options in the case of storm damage. According to the Insurance Information Institute (http://www.iii.org/), these triggers vary by state, but once a tropical storm is named, a hurricane watch is declared, or a hurricane’s intensity is defined, newly issued policies won’t be available to cover that particular storm.

Putting a price on extra coverage

The cost of your insurance may vary greatly depending on the size and type of your home and your geographic location, as well as the type of disaster you’re insuring against, ranging from a few hundred to several thousand dollars annually. However, the size of the premium must be weighed against the cost to repair or replace your dwelling and its contents after a disaster. For example, according to the NFIP, the average flood insurance policy costs $540 per year; the average flood claim over the past 10 years was $33,000.

Earthquake coverage usually costs between $1.50 and $3 per $1,000 of coverage on the structure per year. So, for example, $300,000 worth of coverage would usually run between $450 and $900, with a typical deductible of 5% to 15% of the home’s insured value. So if your home was insured for $300,000, you would be responsible for the first $15,000 to $45,000 out of pocket before your coverage would apply. There may be separate deductibles for a home’s structure vs. its contents.

Coverage of hurricane and wind damage can vary greatly. In some areas, it’s part of a typical homeowners policy. However, 18 states have additional hurricane deductibles that can range from a flat fee of a few hundred dollars to as much as 10% of the home’s insured value, depending on the risk level of the area. In situations where you have an option to choose a deductible, realistically evaluate what you can afford to replace on your own, as the higher the deductible, the less the insurance costs in most cases.

There’s no definitive way to know whether you should buy disaster insurance. Beyond where you live and what your homeowners policy already covers, the decision needs to take into account factors like your individual comfort with risk and how you’d spend the money you save on premiums. If you never drink milk past the expiration date or cross the street without looking both ways, then skimping on disaster insurance might not fit your personality.

But if you do decide to take a pass on disaster insurance, make sure you have access to a rainy-day fund, line of credit, or a rich uncle just in case the worst comes to pass. That’s especially true if you have a lot of equity built up in your home.

Gwen Moran has been writing about business, finance, and real estate for more than a decade. Her work has been published by Entrepreneur, Newsweek.com, Financial Planning, and The Residential Specialist. A Jersey Shore resident, she has weathered hurricanes, Nor’easters, and even one small earthquake.
Rock Realty
Rock Solid Real Estate Strategies
PO Box 2444
Janesville, WI 53547-2444
c: 608.921.8536
f: 877.774.7625
Mike@RockRealtyWI.com
http://www.rockrealtywi.com/

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