Naples, FL Home on Fire and Why Creating a Home Inventory for Insurance is important

Creating a Home Inventory for Insurance
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          As Andrew was driving home he witnessed one of the most horrible events in anyone's life: a beautiful luxury home burning on Golden Gate Blvd in Naples, Florida.
The black ominous column of smoke the fire was producing was visible miles away. One of our personal favorites, a beautiful Tuscan style house was going up in flames.
          Every time we'd drive to the community park to play tennis in the morning, we'd pass by the house and admire its beauty and now he was seeing it exploding with red hot burning flames.
          According to the stories, the house was already half way done by the time the firefighters were called. And even the firefighters couldn't do anything: the fire was too hot and it was going upwards through the roof, so they just stood and waited. All the onlookers were in shock - no one had ever seen a house burn down to the ground, especially such a gorgeous Naples house as this one.
        Later that evening, Andrew provided ABC and NBC local Naples news with the video footage and the photos of the fire that he happened to take. he had been on his way home back from taking pictures of Naples foreclosed homes for banks and had my professional 1080p HD camera. His footage was featured on 11 o'clock and morning news as well as on news websites. He told me later that he was in a daze.
       That made me think about how absolutely horrible it would feel if this was our house or  a house of someone we knew. All the memories that would be lost in a fire, all the material possessions ( while not as emotionally important but certainly financially important), not to mention a possible loss of life. In my 6 years of being an insurance agent  (that is how we started in the real estate field back in Cleveland, OH), I learned first hand how crucial insurance can be. You never know when disaster will strike. But we know it very well might, especially here in Florida ( read about hurricane preparedness).
        I won't lecture you on insurance itself, however an important part of being well insured is knowing the claim process and how to be prepared.

Article From HouseLogic.com

By: Gwen Moran

Published: December 23, 2009

Create a home inventory before disaster strikes to make filing an insurance claim a smoother process.

Experiencing a theft, flood, fire, or other casualty loss is devastating enough. Now imagine trying to list from memory for your insurance claim every single item that was damaged or destroyed. The task becomes less daunting if you create a home inventory in advance and keep it in a safe place.

Creating a home inventory can be done with pencil and paper alone, but a digital camera and camcorder make the job easier. Set aside enough time to review your insurance policies, dig up receipts, document your possessions, and figure out where you'll store your records. One day should be sufficient.

A home inventory is essential

From appliances, plates, and glasses to collectibles, rugs, and furniture, the average home is packed with an array of items collected over the years. And while you may be able to list many of them in a pinch, chances are you'd miss some important possessions if you ever needed to reconstruct your home's contents from memory, says Mark Goldwich, founder of GoldStar Adjusters, a Jacksonville, Fla., claims adjusting firm.

"Home inventories are a must no matter what the value of the home's items are," says Goldwich. "If you're going to insure your property and pay for that insurance, you really should be able to document the ownership and the value of the items that you're insuring. If you don't have proof of the items you owned, it makes filing your claim much more difficult."

Your job doesn't end once you've compiled a home inventory, a detailed list of everything in your household. Be sure to compare estimated values to your policy's coverage to ensure that you'll be able to replace your belongings in case of damage or theft, says Goldwich, who is the author of "Uncovered: What Really Happens After the Storm, Flood, Earthquake or Fire." In some cases, he says, you can purchase additional coverage if the value of your possessions exceeds the limits on your homeowners, flood, or other disaster policy.

Take photos and video of possessions

Jack Hungelmann, author of "Insurance for Dummies," says a picture can be worth more than just a thousand words--it can add up to thousands in cash if you ever need to file an insurance claim. Hungelmann recommends using a digital camcorder or camera to take pictures of each room to document your belongings. "I recommend that people open up their cupboards and drawers. Be sure you have a record of all the things you own," he says.

Goldwich says that creating such a home inventory might seem daunting, but digital video--you can pick up a decent camcorder for about $150--can make the task much easier.

Homeowners can literally walk from room to room and record narrative descriptions of items. You should note whether something is an antique, for example, or if it has other qualities that make it especially valuable such as the size of a television screen or the type of stones in a piece of jewelry. Get close-up shots of serial numbers on electronics, power tools, and the like.

Filling in a printed checklist with serial numbers, brands, quantities, and estimated values will prove indispensible if an insurance claim ever needs to be filed. The adjuster will likely ask for such a list, and you can use the video or photos as proof of ownership. Download our free home inventory checklist to create your own.

Keep your home inventory safe

Of course, such documentation is useless if it's destroyed in a natural disaster, consumed by fire, or stolen along with your personal computer. Hungelmann says that using digital media allows you to store the files on online backup services like Carbonite.com or iBackup.com in case your home is destroyed.

If you'd like to save the $10 or more per month these services typically cost, you could also save the files on a USB drive that's kept in a safe-deposit box, at a relative's home, or in your emergency bag. The bag should include essentials your family needs in case you're forced to flee on short notice.

It's also a good idea to keep a file with receipts and any appraisals of valuable items you own. Store these documents off-site as well. Goldwich says that the more documentation you have to prove what you owned and what it was worth, the easier the claims process will be.

Gwen Moran has been writing about business, finance, and real estate for more than a decade. Her work has been published by Cyberhomes.com, Entrepreneur, Financial Planning, Newsweek.com, On Wall Street, The Residential Specialist, and many others.

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re-blogged from our main Naples Real Estate Blog

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10 Biggest First Time Home Buyer Mistakes for 2010.

You have been watching the housing market go down, down and down for several years now and you are excited to finally have made up your mind to become a first-time home buyer. You want to take advantage of this Foreclosure market, especially because you have recently found out that a mortgage payment (with taxes and insurance!) is lower than the price you are currently paying for rent. So, there is NO better time than now to snatch up that perfect house. We'd like to make sure that your first journey into the world of home ownership is not without these 10 costly mistakes!

Mistake 1:  Not Knowing Your Limit!
The subprime mortgage mess taught us all one important rule, mortgage qualifications are your friend, NOT your enemy. If your mortgage broker is telling you that your debt to income ratio is too high, then you may run into trouble when it comes time to make your payments. Consult a knowledgeable loan officer who is willing to explain to you what you qualify for and follow his advice. Your first mistake would be to find the house you “HAVE” to have and then ask the bank to figure out “HOW” to finance it. To do that is just repeating the mistakes of the past.

Mistake 2:  Skipping the Mortgage Pre-Qualification.
Buyers who immediately turn to the internet in search of foreclosed homes to buy BEFORE they have been prequalified by a loan professional are wasting not only their own time, but also could cost themselves money! Once you have found the perfect home to bid on, the first thing you have to send in, besides a purchase contract, is an Earnest Money Deposit. This deposit is always at least $1,000 and sometimes as much as 10% of the purchase price. If you wait until AFTER you have paid this earnest money deposit to speak with a loan officer and find that you do NOT qualify for this home, you may find yourself on the losing end of the transaction.

Mistake 3:  Being Too Picky
There was a time when a BUYER’S market meant that the seller would fix up a home and make it ready and beautiful for a potential buyer to move right into. However, now that most foreclosed homes will sit empty for a year or two or THREE(!) before they go back on the market, deal hunters have to be ready to make compromises when it come to getting a DEAL on a foreclosed home. You have to look past simple repairs such as replacing the carpet or painting the walls and realize that the real deal is in the land and the foundation of the home. The rest will come with your pride of ownership.

Mistake 4:  Lacking Vision
There has never been a greater real estate sales tool than “staging” a home for sale. Staging is when a real estate agent brings in furniture and decorations to show the potential homeowner how the house will look once it is furnished and decorated. However, currently foreclosed homes almost NEVER have the benefit from this extra attention. And, some REAL GEMS may be overlooked by potential buyers because they fail to see past a home’s current condition and how the home will really look once your personal touch and love have been applied to it.

Mistake 5:  Being Swept Away
Staging works both ways! Sometimes an investor has purchased a foreclosed home and put as little as $2,000 into cleaning and staging it. But, of course they ask for up to $40,000 more than the price they paid for it. You may look at many foreclosed homes that seem like they are not “MOVE IN” ready, but the truth is that they are only $2,000 away from being move in ready. The investors know this and are always willing to bet $2,000 of their money that you DO NOT KNOW THIS. Don’t be fooled. Always use a knowledgeable realtor who can help guide you through the home buying process. They have seen thousands of homes and can see through the window dressings and advise you on what is really a sound deal.

Mistake 6:  Compromising on the Important Things.
Do not get caught up in trying to buy a house at any cost and forget what your needs truly are. If you already have two children and are expecting a third child do not settle for a three bedroom home. Knowing your true needs is just as important as cashing in on the current foreclosure market. Settling for a less than perfect home because it was cheap will not save you money in the long run.

Mistake 7:  Neglecting to Inspect.
It’s a temptation to think that since a home is less than 10 years old, or it looks in good shape to you, that you do not need to have a home inspection performed on the house. Home inspections are on average around $250 to $350 but could end up saving you MUCH, MUCH, more than that if they uncover an underlying defect in the house.

Mistake 8:  Failing to consider Additional Expenses.
Someone who rushes into a home without fully considering how they are going to finance the home and how they are going to pay for the closing costs of a home may be in for a rude awakening. Not only does a purchase bid require an earnest money deposit, and loans need to have closing costs paid, but also homeowners and possibly flood insurance need to be pre-paid for the entire first year before a lender will allow a loan to be closed on a home. For that reason it is very important that you speak knowledgably with your loan officer to get a complete accounting of all the possible costs associated with purchasing a home.

Mistake 9:  Not choosing to use a Buyer's Real Estate Agent.
The internet makes it far too easy for an individual to search for homes from the comfort of their apartment and then call the listing agent for a home they think looks perfect online. However, it is important to remember that a listing agent already works for the seller and will be far less likely to be truly objective when negotiating on your behalf. It is EXTREMELY important to make sure you are represented by a Realtor who is working exclusively for you. Besides, the real estate commission is already priced into the listing price of the house. It does NOT COST a home buyer A PENNY MORE to use a buyer’s agent. So why not take advantage of their knowledge and experience?

Mistake 10:  Bidding too low below the listing price.
Everyone wants a bargain. And, when it comes time to bid on a foreclosure it is easy to think that a bank is happy to sell a foreclosed house for ANY price you wish to bid. However, it is important to realize that there are several reasons why doing this will only waste your time and cost you the chance to purchase your dream home. First of all, the bank has already taken a SIZABLE loss on the house and is not likely to lose any more money than it already has. Even in this market there is still a set market value for homes and the bank is willing to wait (even for years) in order to get a “market value” bid on a home. Secondly, there is currently absolutely NO shortage of private buyers, investment companies, first time home buyers and even foreign citizens who are combing the MLS for foreclosure bargains every single day. While a house that needs repairs or was left in bad shape may sit on the market for weeks, a real gem (homes with granite counters and marble floors in pristine condition) will have 4 or 5 bids thrown on them the very first day they hit the MLS. If you bid too low hoping to add extra savings to an already discounted foreclosed home, the bank will just accept a higher bid and you will not be given a second chance to buy this home.

In Conclusion, buying your first home in this foreclosure market is not only exciting but also very lucrative. However, be sure to seek out the advice of a trusted professional to guide you through the pitfalls of rushing into a purchase without giving the process your full attention. There has never been a better time to buy a house and with thorough research, thoughtful action and a little good luck you can find the home of your dreams.



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re-blogged from http://andrewollick.com/realestateblog/index.php/general/home-buying-tips/
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7 Homeowner Tax Advantages

7 Homeowner Tax Advantages

Article From BuyAndSell.HouseLogic.com

By: G. M. Filisko

Published: March 11, 2010

When you're evaluating how much home you can afford, make sure you factor in the tax advantages of homeownership.

Owning your home not only allows you to build wealth through appreciation, but it can also reduce the amount of income tax you pay every year.

Here are seven tax benefits for homeowners.

1. Homebuyer tax credits

If you purchase your first home before April 30, 2010, you're entitled to a tax credit of up to $8,000. If you currently own a home, but sell it to purchase another home before April 30, 2010, you're eligible for a federal tax credit of up to $6,500.

2. Deductions for loan fees

Typically, you can deduct the "prepaid interest" you paid when you got your mortgage loan. That includes points, loan origination fees, and loan discount fees listed on your settlement statement, even if the seller paid those fees for you. Each time you refinance your home, you can deduct prepaid interest fees.

However, you must meet certain requirements to take the prepaid interest deductions when you purchase or refinance your home. Check with your accountant to be sure you're following the rules.

3. Property tax deductions

In the year you purchase your home, you're entitled to deduct the real estate taxes you paid at the closing table. You can continue to deduct the property taxes you pay each year.

4. The mortgage interest deduction

Every year, you can deduct the amount of interest and late charges you pay on your mortgage and home equity loans, though there are limitations. If you're required to purchase private mortgage insurance (PMI) because you made a downpayment of less than 20% on your home, you can also deduct those premiums as mortgage interest expenses.

5. Home office expenses

If you have a home office you use only for business, you may be eligible to deduct the prorated costs of your mortgage, insurance, and other expenses related to that space. The government scrutinizes home-office deductions closely. Be sure you're entitled to the deductions before claiming them.

6. The costs of selling your home

In the year you sell your home, you can deduct the costs of selling it, including real estate commissions, title insurance, legal fees, advertising, administrative costs, and inspection fees. You can also deduct decorating or repair costs you incur in the 90 days before you sell your home.

7. The gain on your home

If you lived in your home for at least two of the previous five years before you sell it, the government lets you to take up to $250,000 of profit on the sale of your home tax free. That amount is doubled for married couples. This deduction isn't available on rental or second homes.

The government also allows you to subtract from your home sale profit any amounts you spend on improvements, such as window replacement, siding, or a kitchen remodel. Those deductions are in addition to the tax credits you can receive in 2010 for making energy-saving upgrades. Money invested for routine maintenance and repairs doesn't count.

 

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re-blogged from http://andrewollick.com/realestateblog/index.php/general/homeowner-tax-advantages/
 



SW Florida Homes http://www.andrewollick.com/
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This article includes general information about tax laws and consequences, but is not intended to be relied upon as tax or legal advice applicable to particular transactions or circumstances. Consult a tax professional for such advice; tax laws vary by jurisdiction.


More from HouseLogic


More on the mortgage interest deduction


(http://www.houselogic.com/articles/mortgage-interest-deduction-vital-housing-market/)


Claiming your homebuyer tax credit (http://www.houselogic.com/articles/claim-your-homebuyer-tax-credits/)



Tips to use when preparing your return (http://www.houselogic.com/articles/tax-tips-homeowners-preparing-2009-returns/)


Other web resources


More information on homeownership deductions (http://www.nolo.com/legal-encyclopedia/article-29693.html)

IRS information on the mortgage interest deduction (http://www.irs.gov/pub/irs-pdf/p936.pdf)


G.M. Filisko is an attorney and award-winning writer who's enjoyed the tax advantages of homeownership for more than 20 years. A frequent contributor to many national publications including Bankrate.com, REALTOR® Magazine, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal topics.

You took a Photo of WHAT?

As realtors, we have to take photos of the houses we are about to list.
We all know what we are supposed to do:
buy a wide angle camera (check),
learn to use it ( lol- check),
read about photography basics (backlighting, exposure, iso- check),
get msc objects in the room out of your way,
cram yourself into the furthest corner of the room and... CLICK.

For some people it's more of an ordeal than for others. Luckily I had years of professional photography experience prior to starting in Naples real estate, so for us, it's not an issue.

However, sometimes, while going through the Naples MLS, I have to do a double take at some listings and say:

"WHAT WERE THEY THINKING?"

Some realtors have an eye for a good angle, others learned the proper ways to take good listing photos, then there're some who invested into a good camera,  and others who still take pictures with a point-and-shoot ....   and then there's this realtor.

At first glance you don't see anything majorly wrong.
Yes, it's very crooked, yes the colors are drab (but i don't expect your average realtor to know their way around Photoshop or Lightroom).

Otherwise it's a perfectly ordinary picture of a Naples townhome.That is until we go to the next photo.

"What's wrong with this photo?"- you'll say.
Well, where do I start?
-Poor lighting
-Horrible angle
-Realtor's elbow in the mirror

...and also the fact that I can't really see the bathroom.

When i said "wide angle" is a must, I meant it. This photo cuts off 50% of the bathroom. But you know what, that's fine. I've seen worse in other listings, it's no big deal... Or have I?

WHAT IS THAT?
If i thought the previous photo was bad, I don't know what to say about this one.
What exactly was this meant to show?
- A chair?
-A pack of cigarettes?
-A hose in the left bottom corner?
-Are they selling this dining set?
Even if they were, it's even a good picture of the dining set. But let's move on...

Picture # 4: At this point I started laughing.
Can anyone tell me what THIS was supposed to "advertise"?

Picture # 4

Picture # 5: How about this? Do you think maybe this realtor was just snapping random pictures of whatever was in from of the lens?

 

And finally..... my favorite.... drum roll!

Ta-da!!!! No comment.

Only as I was writing this post, did I realize that i don't really know what this condo looks like. There's not a single picture of the living area.
All we saw was a purse, a fence, an outdoor chair, a tub, and tubes of soap and shampoo.

So here's a lesson for you, boys and girls:

If you're a realtor, please please please, buy yourself a good camera and learn to take pictures, or have someone else do it for you. Listing photos account for more than 80% of property's interest, don't rob your clients of that.

If you're a home seller, review your future realtor's prior listings to make sure your house isn't advertised like this.

Let me know what you think in the comments below and if you have examples of more bad listing photos, please email us to be featured in the next blog.

Feel free to subscribe to our blog for more useful and entertaining news.
re-blogged from http://andrewollick.com/realestateblog/index.php/general/bad-naples-listing-photos/

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Florida Hurricanes and Hurricane Preparedness

With Hurricane Earl being, at one point, a Category 4 Major Storm, Floridians are starting to think about the over-active season. What if one of the storms hits Florida again? We haven't had a strong hurricane in Florida in quite a while. Most people relaxed and forgot about what hurricane season usually means. For those who are a recent Florida resident, future Florida resident or just someone who'd like to refresh their hurricane knowledge, here are a few points and websites to remember.


If you're one of those people who finds hurricanes exciting ( but never wants one to hit the US), you have probably been tracking every single storm of the year. Danielle was the first one to get to the Major Storm Category (Cat. 5) this season, but thankfully, swung out to sea before making any landfall. Most storms that manage to lose the trade winds are going to swing up and miss Florida. It's the low passing storms that we need to worry about, like current Gaston.

An important thing for Floridians is knowing how and where to track storms. The best place is to go straight to the source: National Hurricane Center (http://www.nhc.noaa.gov/) It gives up to date graphical information on all active storms, including satellite views of the hurricanes. All the storms have a 3 day and 5 day prediction with the cone of uncertainty marking where the storm might go. It tends to be pretty accurate. When looking at the cone of uncertainty, note that S means Storm, H means Hurricane and M means Major Hurricane ( Cat 3 and above)

All Atlantic storms originate from the west coast of Africa as simple thunderstorms. Once they hit the warm waters of near-equator Atlantic waters, they accelerate, grabbing up the moisture from the sea, with earth's rotation moving them west to US East Coast.

A few pointers for Southwest Florida Hurricane Preparedness.

1. As a new resident of Florida, the first thing I would do is sign up for email alerts from HNC. That way you'll be notified every time there's a tropical storm.

2. Learn Southwest Florida evacuation routes (pdf) that you might have to use in case of a big storm.

3. Find out if you live in a Surge Zone and make sure you're protected with flood insurance. Standard homeowners insurance won't cover the damage if it has any evidence of flood. Collier Surge Map Lee Surge Map

4. Make a plan of action in case of a hurricane: where you would go, what you'd need to take with you, how will you transport and house your pets.

5. Decide with your family at which point you would evacuate. Most newer homes withstand winds up to 110 mph (Cat 2), however if you're located close to the coast, flooding is a bigger danger. Follow all government evacuation orders. When the conditions are really bad, all the emergency services cease operation. Listen (wmv files) what happened to people who ignored evacuation orders. Read about (pdf) 2 people who tried to tough it out during Hurricane Ike.

6. Get educated! Read the Collier County Hurricane Preparedness Guide


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re-blogged from www.AndrewOllick.com/realestateblog


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