Property Sales Outshine the Gloom and Doom

"The big question on the minds of real estate leaders is: "Can the velocity of sales continue in the fourth quarter and in 2008?"
"When 2007 is behind us and we look back in the rear-view mirror, I think it will be a year of two markets: the first half of the year, which was a continuation of the white hot real estate market characterized by rising prices, fierce competition, high leverage, and abundant debt and equity capital at historically low cost; and the second half, which was marked by a severe tightening of credit, widening spreads, lower leverage, and more stringent underwriting," the chairman of the national real estate practice at Greenberg Traurig, Robert Ivanhoe, said. "The pipeline for investment sales coming to market is way off, and this is not surprising. Unless an owner has a compelling reason to sell, why would it sell into an uncertain and perhaps falling market and capture significantly less in price than just three or four months ago?" from Property Sales

Property Sales Outshine the Gloom and Doom

"The big question on the minds of real estate leaders is: "Can the velocity of sales continue in the fourth quarter and in 2008?"
"When 2007 is behind us and we look back in the rear-view mirror, I think it will be a year of two markets: the first half of the year, which was a continuation of the white hot real estate market characterized by rising prices, fierce competition, high leverage, and abundant debt and equity capital at historically low cost; and the second half, which was marked by a severe tightening of credit, widening spreads, lower leverage, and more stringent underwriting," the chairman of the national real estate practice at Greenberg Traurig, Robert Ivanhoe, said. "The pipeline for investment sales coming to market is way off, and this is not surprising. Unless an owner has a compelling reason to sell, why would it sell into an uncertain and perhaps falling market and capture significantly less in price than just three or four months ago?" from Property Sales

Louisville bucks a national real-estate downturn

Louisville Kentucky Real Estate

"The median price of a home in the Louisville area has risen nearly 5 percent a year over the past two decades -- better than inflation, and about the same as the national rate.

And even this year -- in the midst of a national housing downturn -- the metro area is on track for a median price increase of at least 1 percent, according to the Greater Louisville Association of Realtors.

But as the national housing slump deepens, properties are sitting on the market longer, making sellers nervous and prompting some to slash asking prices and throw in such incentives as free wide-screen televisions or refrigerators to close deals......." Courier-Journal Louisville KY Real Estate

visit Kentucky-Insurance.com

Louisville bucks a national real-estate downturn

Louisville Kentucky Real Estate

"The median price of a home in the Louisville area has risen nearly 5 percent a year over the past two decades -- better than inflation, and about the same as the national rate.

And even this year -- in the midst of a national housing downturn -- the metro area is on track for a median price increase of at least 1 percent, according to the Greater Louisville Association of Realtors.

But as the national housing slump deepens, properties are sitting on the market longer, making sellers nervous and prompting some to slash asking prices and throw in such incentives as free wide-screen televisions or refrigerators to close deals......." Courier-Journal Louisville KY Real Estate

visit Kentucky-Insurance.com

Insuring Vacant Homes

Insuring Vacant Homes Can be Tricky

At a time when houses are taking longer to sell, some people must move into a new home before their old one is sold, leaving it to sit vacant with a for-sale sign out front.

Lost in the shuffle of furniture and belongings may be a crucial detail: your homeowners' insurance policy typically requires that you live in the home. So unless you make some changes, you may not be covered if there's a fire, agents say.

"They don't think about it," said Chris Oehrle, senior vice president of Weichert Insurance Agency in Morris Plains. "They have a lot of other things going on in their lives, and calling their insurance agent isn't the first thing on their mind."

There are options. Insurance companies offer policies that cover vacant properties for fire, vandalism, storm damage and even frozen pipes, said Keith Taege, account representative at Turton Signature Insurance in Point Pleasant Beach.

Oehrle said Weichert has written 20 percent to 25 percent more of this type of policy so far this year, compared with last year.

Why? Homes are not selling as fast as they did previously.

"People still need to move. You get a new job. You are transferred to another city," Oehrle said. "Since houses sit on the market a lot longer, the need for a vacant-home policy is greater."

Taege said he, too, has seen an increase in plans for vacant homes, but "not anything dramatic."

"Many people don't know if their coverage is in jeopardy because their property is vacant," Taege said. "They are not going to call an agent up and say, "By the way, my house has been sitting vacant for six months.' "

An insurance company might find out about a vacant home if it is inspected as part of the sale process, or if the owner files a claim, which could be rejected, Taege said.

Sharon Cooper, a spokeswoman for Selective Insurance Group Inc., said homeowners and insurers often find out as part of the process of signing up for homeowners' insurance for a new home. "You would be talking with your insurance company or your insurance agent anyway."

Homeowners' policies don't cover vacant homes. Often, insurers can delete vandalism coverage if a house has been vacant for more than 30 days, Taege said. State law says that an insurer can suspend homeowners' coverage when a property is vacant or unoccupied beyond 60 days.

Companies consider a vacancy a major change in the use of a home. It also increases the possibility of damage, including vandalism or frozen pipes.

"They become neighborhood clubhouses sometimes," Oehrle said.

Some insurers have different ways of handling the situation.

Selective tries to work with policyholders who move into a new home before the sale of their old home by continuing coverage with a dwelling policy for a "reasonable amount of time for the sale to occur," Michele Aromando, vice president of personal lines, said in an e-mail.

How long a policy is continued would be determined by factors including whether a contract is pending, if the home is checked regularly and if the utilities are on, she said.

Once notified by an owner or an agent, State Farm Insurance Co. generally gives a policyholder six to nine months to sell a vacant home or may extend it to the policy's expiration, spokesman John J. Baldino said in an e-mail.

"The company does understand that the real-estate market is cooling down," he said. "We will evaluate each unique case."

But if it is vacant for more than 30 days, the policy may only cover major losses, such as from fire, and not smaller problems such as vandalism or broken windows, he said. People can buy add-on coverage for vandalism and malicious mischief.

"Certain losses may go unnoticed for an extended period of time, which will escalate the severity of damages, whereas if the dwelling was occupied, the issue could be more readily identified and addressed," he said.

But State Farm won't renew a homeowner's policy if a house is vacant, and the company does not insure vacant homes, he added.

Taege said there are speciality insurance companies that cover vacant homes. The policies can be more expensive than a traditional homeowners' policy and can cover fire, storm damage and vandalism.

"If their house is sitting vacant for sale, it is important that they get in touch with their agent to make sure they get the proper coverage," he said.

As a last resort, homeowners also have the option of applying for vacant home coverage from the New Jersey Fair Access to Insurance Requirements Plan, or FAIR. Created by the state Legislature in 1968, it offers property coverage for major losses, such as fire and storm damage, said Steven Mutterperl, vice president of underwriting.

More expensive than insurance in the general market, it also includes a requirement that an owner board up a home to reduce the possibility of damage." from : Vacant Home Insurance

Call Dick Watts Insurance 502-245-3625 for a Vacant Home Insurance Quote

(disclaimer: Every insurance contract is different. Consult your own insurance policy and insurance contract for specific coverages. If you have a question about coverage in your specific policy contact your insurance agent. Coverages above are not included in all insurance policies.)

Vacant Home Insurance Kentucky 502-245-3625

Insuring Vacant Homes

Insuring Vacant Homes Can be Tricky

At a time when houses are taking longer to sell, some people must move into a new home before their old one is sold, leaving it to sit vacant with a for-sale sign out front.

Lost in the shuffle of furniture and belongings may be a crucial detail: your homeowners' insurance policy typically requires that you live in the home. So unless you make some changes, you may not be covered if there's a fire, agents say.

"They don't think about it," said Chris Oehrle, senior vice president of Weichert Insurance Agency in Morris Plains. "They have a lot of other things going on in their lives, and calling their insurance agent isn't the first thing on their mind."

There are options. Insurance companies offer policies that cover vacant properties for fire, vandalism, storm damage and even frozen pipes, said Keith Taege, account representative at Turton Signature Insurance in Point Pleasant Beach.

Oehrle said Weichert has written 20 percent to 25 percent more of this type of policy so far this year, compared with last year.

Why? Homes are not selling as fast as they did previously.

"People still need to move. You get a new job. You are transferred to another city," Oehrle said. "Since houses sit on the market a lot longer, the need for a vacant-home policy is greater."

Taege said he, too, has seen an increase in plans for vacant homes, but "not anything dramatic."

"Many people don't know if their coverage is in jeopardy because their property is vacant," Taege said. "They are not going to call an agent up and say, "By the way, my house has been sitting vacant for six months.' "

An insurance company might find out about a vacant home if it is inspected as part of the sale process, or if the owner files a claim, which could be rejected, Taege said.

Sharon Cooper, a spokeswoman for Selective Insurance Group Inc., said homeowners and insurers often find out as part of the process of signing up for homeowners' insurance for a new home. "You would be talking with your insurance company or your insurance agent anyway."

Homeowners' policies don't cover vacant homes. Often, insurers can delete vandalism coverage if a house has been vacant for more than 30 days, Taege said. State law says that an insurer can suspend homeowners' coverage when a property is vacant or unoccupied beyond 60 days.

Companies consider a vacancy a major change in the use of a home. It also increases the possibility of damage, including vandalism or frozen pipes.

"They become neighborhood clubhouses sometimes," Oehrle said.

Some insurers have different ways of handling the situation.

Selective tries to work with policyholders who move into a new home before the sale of their old home by continuing coverage with a dwelling policy for a "reasonable amount of time for the sale to occur," Michele Aromando, vice president of personal lines, said in an e-mail.

How long a policy is continued would be determined by factors including whether a contract is pending, if the home is checked regularly and if the utilities are on, she said.

Once notified by an owner or an agent, State Farm Insurance Co. generally gives a policyholder six to nine months to sell a vacant home or may extend it to the policy's expiration, spokesman John J. Baldino said in an e-mail.

"The company does understand that the real-estate market is cooling down," he said. "We will evaluate each unique case."

But if it is vacant for more than 30 days, the policy may only cover major losses, such as from fire, and not smaller problems such as vandalism or broken windows, he said. People can buy add-on coverage for vandalism and malicious mischief.

"Certain losses may go unnoticed for an extended period of time, which will escalate the severity of damages, whereas if the dwelling was occupied, the issue could be more readily identified and addressed," he said.

But State Farm won't renew a homeowner's policy if a house is vacant, and the company does not insure vacant homes, he added.

Taege said there are speciality insurance companies that cover vacant homes. The policies can be more expensive than a traditional homeowners' policy and can cover fire, storm damage and vandalism.

"If their house is sitting vacant for sale, it is important that they get in touch with their agent to make sure they get the proper coverage," he said.

As a last resort, homeowners also have the option of applying for vacant home coverage from the New Jersey Fair Access to Insurance Requirements Plan, or FAIR. Created by the state Legislature in 1968, it offers property coverage for major losses, such as fire and storm damage, said Steven Mutterperl, vice president of underwriting.

More expensive than insurance in the general market, it also includes a requirement that an owner board up a home to reduce the possibility of damage." from : Vacant Home Insurance

Call Dick Watts Insurance 502-245-3625 for a Vacant Home Insurance Quote

(disclaimer: Every insurance contract is different. Consult your own insurance policy and insurance contract for specific coverages. If you have a question about coverage in your specific policy contact your insurance agent. Coverages above are not included in all insurance policies.)

Vacant Home Insurance Kentucky 502-245-3625

Best Markets for Landlords

Best Markets for Landlords

"Whether they're waiting out the housing storm, or smack in the middle of it, an increasing number of Americans are choosing to rent, not own. And that's good news for landlords and investors.

Foreclosures and risky lending have dogged the housing market. As lenders have tightened their standards, attractive mortgages have grown harder to come by. Yet rental fundamentals have remained strong, especially in the 10 areas that made our list of Best Markets for Landlords. from Forbes