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Selling in December can be merry after all

Posted on December 8, 2017November 5, 2017 by Victor Varma

When the weather outside is frightful, selling your house is not so delightful.

That’s what folks say, anyway. But is it always true?

Real estate agents say not necessarily. As with most things in life, it all depends.

Weather is, in fact, a factor and when frightful weather means a lot of snow, showings could slow down. But, on the other hand, a warm winter can be a boon for sellers as home buyers get an early start on the season.

The strength of the local real estate market also comes into play. A strong market can be good even in December. There are always buyers who, for many personal and business reasons, must find a home during the holidays. Those kinds of buyers are motivated.

Here are some considerations for selling during the fall/winter holidays:

– You don’t have to keep your house dark during the season of lights. Decorate, but do so modestly. A Christmas tree can make a home look warm during the cold winter season. Display just a few gifts under the tree. Too many begin to resemble clutter and buyers need to be able to look past decorations.

– Avoid flashing lights inside and out. Stick to simple, classic decorations.

– Limit decorations to the main living area. Although some families go all out decorating every room, as a seller you want to keep decorations of all kinds to a minimum.

– Most agents say that sellers should avoid religious displays, but in some areas of the country this would be acceptable, especially if done modestly. The key is not to overwhelm the house. Make it easy for the buyer to see the rooms.

– Make the most of the season by enhancing curb appeal. Although the trees might not have leaves, the garden won’t have weeds either. Some decorations are seen as welcoming, no matter what the season: A wreath on the door or outdoor lights that emphasize the walkway or special parts of the property.

– If your property looks especially glorious in Spring and Summer, consider leaving out a photo album.

– Play muted classical music to add to the overall ambience, according to HGTV.

– Use light holiday fragrance. Avoid heavy floral scents that make some people cough or sneeze. Don’t overdo it. One scented candle is probably enough.

– Light the fire. Winter is also a great time to show off your fireplace. So spread the warmth!

Wishing you joy and peace!

Posted on December 1, 2017November 5, 2017 by Victor Varma

It’s common these days to complain during the holidays about how commercialized the season has become. In fact, complaining about the holidays has become as much of a tradition as the holidays themselves.

Well let’s break tradition for a moment.

Call it commercial if you want, but when your family members gather around the Christmas tree, each one hopes the gift he gives delights the receiver. Call it commercial, but when you light the last candle of the menorah and give the last gift, you hope you have given light and joy.

We are hoping this year you’ll enjoy the fruits of all your good work for the year. You are appreciated by your family, your employers and your nation.

So this year, maybe we should complain less, delight in the giving more, and then open up our hearts and be thankful for the season — maybe a little commercial but also a lot of fun. Here’s hoping you’ll be joyous!

What is a conforming loan?

Posted on November 17, 2017October 5, 2017 by Victor Varma

A conforming loan is one that conforms to Fannie Mae and Freddie Mac guidelines. Fannie Mae and Freddie Mac are giant government-chartered mortgage companies that buy loans from lenders, allowing lenders to have more flexibility to make new housing loans.

Most everyone who gets a mortgage has a conforming loan.

How much you can borrow to conform:
Conforming loans are generally limited to $424,100, although there are higher limits in areas where housing is very expensive. The conforming loan limit can go up to $636,150 in specific housing markets, such as certain counties in California and New York, among others.

Loan-to-value ratio:
Your down payment has to be equal to 20 percent or more of the home’s value, but buyers can qualify for an FHA loan with as little as 3 percent down. With a down payment of less than 20 percent, buyers have to pay Private Mortgage Insurance, which can be expensive.

Credit score:
A conforming loan requires a FICO credit score of 620-640. However, an FHA loan requires a credit score of 580. A lower credit score than that requires a higher down payment.

Debt-to-income ratio:
Your debt-to-income ratio can be no more than 41 percent (although there may be exceptions that raise this percentage) of your gross income.

A non-conforming loan, by contrast, goes over the loan limit and the requirements are stricter. Credit scores must be 680 or higher. The down payment must be 15 percent or higher. Debt-to-income ratio must be 43 percent or less. Generally, the borrower shows high cash reserves, according to the Lenders Network.

What is a Business Owner Package (BOP), and How Can One Help You?

Posted on November 15, 2017December 19, 2017 by agentinsure

If you are a business owner, you know how important comprehensive coverage can be to protect your interests. Properly insuring any business requires different types of coverage that may be found in separate policies. In order to fully protect your business, it may be necessary to carry a different policy for each type of coverage which can be less than convenient. With a Business Owner Package (BOP) many lines can be bundled together which can save you money as well as help you to keep your insurance streamlined. InsureUS has the necessary experience and expertise to help you protect your business. If you are in the greater Cypress, TX area we are here to work with you to ensure that you have the coverage you need.

What Exactly is a BOP?

This bundle of commercial coverage is perfect for small businesses that are looking to save money. The package generally includes Commercial Property Insurance and General Liability Coverage, bundled together. There is no coverage for business or commercial vehicles in these packages, and a separate vehicle policy will be necessary. This package covers lawsuits brought by third-party interests, catastrophic loss, such as fire damage, and third party property damage. Some BOPs also include Business Interruption Coverage which is vital for small businesses. Our agents can work with you to ensure that you have the comprehensive coverage you need.

Please give our agency a call today at (281) 640-8888 to schedule an appointment with one of our business specialists who can review your current coverage and help to streamline your policies to make your insurance work best for you. InsureUS is here to help you with a BOP and all of your other insurance needs in the greater Cypress, TX area.

Negotiation: Tips for buyers and sellers

Posted on November 3, 2017October 5, 2017 by Victor Varma

At the most basic level, home sellers and buyers want the same thing: A good price and a smooth deal.

But between price and smooth, there is a lot of wiggle room and emotion.

The key points for a seller, according to Zillow.com:
– A full price or higher
– A pre-approved buyer
– Smooth timing for a move
– Sellers may also want buyers to either waive an inspection or be responsible for any repairs.

Before negotiations, the best idea for sellers is to carefully calculate what they need from a buyer.
– Minimum amount of money you’ll need, considering outstanding mortgage, any debt you want to clear up, or money for a down payment on another house.
– Decide what personal property you want to go with the house and what you don’t want to include in the deal.
– Know how much it will cost to stay in the home during any transition time. This can help in negotiations since a buyer who wants to quickly take possession might save you money. Or, on the other hand, a buyer who will work with you on timing might be preferable. These considerations can help you choose between offers.
Key idea: Know exactly what you need and don’t rush into a deal if you don’t have to.

Negotiation tips for buyers:
One key idea to remember: Don’t start negotiations too low.
Case in point: Heirs are selling a 40-year-old home on wooded acreage. The home will need treatment for mold, new carpets, deep cleaning, and some new fixtures, but the bones are good. The sellers have priced it on the low-end for comparable homes. The listing agent quickly gets two offers. One for $5,000 less than the list price, and one for the list price. It’s October and the heirs want to sell quickly. They don’t want to take the chance of maintaining the home through the winter when home sales are slow. The buyer offering full price is ready to move in immediately and agrees to do so. The sellers accept the full price, rejecting the lower one without negotiation. The unsuccessful buyers lost the home they wanted over a mere $5,000, which on a 30-year loan amounts to just a few dollars a month.

According to credit.com, going in with a too-low offer accomplishes nothing. While a potential buyer can’t always know how their offer will be accepted, it’s probably not a good idea to offer a lower price if the property is already priced reasonably. The exception may be a foreclosure or a slow market, when sellers might be highly motivated to sell.

Small business risk: Fire ranks high

Posted on October 24, 2017September 17, 2017 by Victor Varma

Going into business is heavy with financial risk but, once in business, natural disasters or unforeseen problems can create catastrophe.
Fire ranks high as a potentially devastating risk for business.
More than 75 percent of companies that experience a serious fire go out of business within three years of reopening, according to Phoenix Fire Protection.
Proper insurance can cushion destruction of assets and business interruption costs, but it won’t stem loss of customers, employees and data.
Of these three risks, data loss may be the easiest to mitigate.

* Daily off-site backups are key. On-site backups may seem sufficient unless a fire begins on the weekend or a holiday.

* Check backups regularly.

* Make sure at least two people know how to retrieve backups.

Make a pre-fire or disaster plan: Some of the questions you can ask:

* How can you protect IT equipment from fire or other disasters? If you can’t protect equipment, how will you replace it after the emergency?

* How will you retrieve data? Who will do it?

* Where will you operate? Will you need a generator for electricity? If so, where will you get the fuel to power the generator?

* What are the steps you will take to replace inventory? Is it necessary or possible to insure inventory? What is the worst-case scenario if it isn’t insured?

Michelin’s 3-D printed tire could be the future

Posted on October 20, 2017September 17, 2017 by Victor Varma

Flat tires, blowouts, and even putting air into tires could one day be obsolete if Michelin’s concept for a new tire makes it to the mainstream. According to Engadget, the company has designed a prototype of a tire that can be printed in a machine, retreaded without replacement after it gets worn down, and is made using sustainable materials. All of these factors would lead to a tire that is cheaper, safer and more versatile for the consumer than the products currently on the market.

With the new design, there is not a separate wheel and tire but rather one object constructed with a web-like pattern of rubbery material that supports the exterior tread. Because of this feature, the tire does not require any air and will be impervious to nails and other objects that can easily cause a flat with today’s vehicles. Although it is a long way off, this concept paints a bright future for the auto industry’s lessened impact on the environment.

Hurricanes and Home Insurance: What You Need to Know

Posted on October 17, 2017October 16, 2017 by agentinsure

Hurricanes have been all over the news lately, and Texas was particularly hard hit by recent Hurricane Harvey. If you live in Cypress, TX, you may have found out too late that your home insurance didn’t cover enough when you were hit with hurricane damage. With more hurricanes continuing to hit the United States, it’s time to learn more about hurricanes and home insurance so you make sure you’re covered.

Does Home Insurance Cover Hurricanes?

There’s no one policy that is going to cover all the damage a hurricane has the potential to do to your home. You may need to consider a mixture of several policies from InsureUS, such as home insurance, flood insurance, and wind insurance. Keep in mind, if you’re living near the coast, it’s possible that you may need to have a special windstorm policy along with your home insurance.

Do I Need Flood Insurance?

If you think you may need coverage for water that enters the home as a result of a hurricane, such as pooling water from heavy rains or water damage from storm surge, then you probably do need flood insurance along with your home insurance. Many homeowners think that their home insurance will cover them, but you’ll probably need a good flood insurance policy to ensure you’re well covered.

Will I Need to Pay Special Deductibles?

Living in a hurricane-prone area may mean that you do pay some special, higher deductibles. You may be asked to pay a percentage deductible when dealing with hurricane damage. When buying insurance to keep you covered during a hurricane, make sure you find out the deductible information.

What to Do After a Hurricane Hits

If a hurricane does hit your home in Cypress, TX, make sure that you document your damage with video or photos and work to prevent further damage to your home. Make sure you keep track of temporary repairs that are made. You’ll also need to make sure that you notify the insurance company immediately.

Don’t wait until another hurricane hits to make sure you’re well covered. Contact InsureUS to learn more about your options and the coverage you need.

Is it better to buy or rent a home in retirement?

Posted on October 13, 2017September 17, 2017 by Victor Varma

The kids are gone, the house is paid for, and you are ready for retirement. The question is whether keeping the house is the best idea.

According to USA Today, as many as 46 percent of seniors aged 65 or older are deciding to rent a home rather than buy a new house or keep their previous one.

There are pros and cons to each option.

For someone who already owns their own home with no monthly mortgage payment to worry about, it might seem an obvious choice to keep the house. According to the Motley Fool, this house can be used as a source of income in retirement through a line of credit or a reverse mortgage if there is a sudden need for extra money. On the other hand, annual upkeep eats up as much as 1 percent to 4 percent of the value of the house each year. These expenses can add up quickly on an older home. Then there are property taxes and homeowner’s insurance. Meanwhile, it is entirely possible that a housing market crash could erode the value of the home right when it is needed the most.

On the flip side, selling a home near or during retirement when the market is priced right could add a lot of cash flow and savings to draw from in the event of an emergency. The idea here is that cash can be invested and might be worth more over time than the house’s appreciation.

Kiplinger’s took a look at several scenarios involving home ownership, selling, and renting to decide which option made the most financial sense. They determined that in the short run renting was the better choice while buying a new home was more profitable after ten years or more. They also noted that it could be possible to pay yearly rent with interest gained from investing profits from the sale of a home.

Remember too that retirement is also about freedom. Separate from the financial aspects, renting a home could allow retirees to move around to different parts of the country more easily rather than worrying about having to sell or maintain a house from a distance.

How to buy a home when there aren’t many on the market

Posted on October 10, 2017September 17, 2017 by Victor Varma

In economic parlance, many describe today’s housing market this way: demand is high and supply is low. In practical terms, this means there are more buyers than homes for sale. While this isn’t true in all areas of the country, it is true in many areas.

According to USA Today, there was a 4.3 month supply of homes nationally in August of 2017. That means it would take a little more than four months to run out of homes for sale if no other homes came on the market. This number was down from earlier in the summer when there was a 4.6-month supply. The normal number of homes for sale is a 6-month supply.

Why is supply of homes for sale so low? Baby Boomers don’t want to sell, according to USA Today. A recent realtor.com survey showed that 85 percent of Baby Boomers aren’t selling but 60 percent of millennials are.

In this market, sellers may easily get the price they want, but buyers must have all their shingles in a row these days.

Here’s how you have the best chance of snagging the house you want:

*Get your financing ready
First get pre-qualified for a loan. This is an informal process where you visit with various lenders, giving them an overview of your financial situation. The lenders can then give you an idea of how much you can borrow and an idea of interest rates. But, beware, this is not a promise to loan you the money. It merely gives you working numbers.

*Shop around
The good thing about pre-qualification is that you can start shopping around before you are ready to buy. You can get an idea of what you can afford and what you want in a house. Even if this isn’t your first time in the market, don’t skip the growing period, according to USNews. If you have been out of the market for more than a year, then you don’t know what is out there.

*Get pre-approved
When you know you want to take the plunge, get pre-approved for a loan. At this point, you should have an idea of which lender you might want to use. The lender checks your credit, verifies employment, and confirms your ability to qualify for a mortgage. With a pre-approval in hand, you are ready to make a credible offer when you find the home you want.