San Jose councilman reverses support of homeless housing project

A San Jose City Councilman has come up with the "genius" idea for a homeless camp in a neighborhood close on Senter Road near Tully. As you can imagine many residences complained and raised bloody hell with the city so the project is a no-go for the moment. But in my opinion this is a classic example of NIMBY. Part of the nimbyism is due to the fact that a homeless camp in the neighborhood will almost certainly bring down property values.



SAN JOSE -- After being hammered by a storm of public pressure including threats of a civil grand jury complaint, Councilman Tam Nguyen has reversed his support of a homeless housing project on Senter Road.

Nguyen, who in January supported rezoning the land for a transitional housing community, said Friday the project doesn't have enough safeguards and neighbors weren't engaged. Now, he wants the city to treat homeless housing like medical marijuana dispensaries -- keep them away from schools, churches and liquor stores. San Jose's pot ordinance limits collectives to 1 percent of the city, mostly industrial sites.

Coincidentally, Nguyen's district has the most medical cannabis shops.

The proposed development, called the Renascent Place, is a 162-unit complex for chronically homeless individuals. It would be built on county-owned land at 2500 Senter Road that's inside city limits. Santa Clara County teamed up with Charities Housing, a nonprofit housing developer, to propose the project.

A team of eight to 12 employees would provide supportive services on site and the facility would have 24-hour security, according to planning documents. The lease would be for 85 years. The city's Planning Commission in April unanimously approved the project permit, but a group of neighbors appealed. The City Council on Tuesday will consider whether to deny the appeal.

Nguyen thinks the city should uphold the appeal. But Mayor Sam Liccardo, Councilmen Charles "Chappie" Jones and Johnny Khamis support the project, while calling for a plan to increase community engagement. Nguyen criticized the project managers for a lack of outreach and not having a "safety plan" to protect residents. Though Nguyen's January memo supporting the land-use change cited on-site managers and 24/7 security as important safety tools, he now says that's not enough.

"The way they are doing it does not provide a safe environment for the homeless or the neighborhood," Nguyen said. "They did not consider other criteria like crime activity and dumping." City housing officials counter by saying having "more eyes on the street" will actually deter crime and improve safety in the neighborhood.

"We know that activation of sites and providing more eyes can make the neighborhood safer," said Ray Bramson, San Jose's homeless response manager. "The potential of the project is not only benefitting the residents that are living there but improving the entire area."

Nguyen said public pressure didn't factor into his decision to oppose the project, but emails show a group of residents threatening to file a civil grand jury complaint against the councilman unless he met with them.

The threat came from Delbert Ng, a retired electrical engineer who lives on Albany Circle, not far from the project's property line.

"The main concern is the size of the project and high concentration of the most problematic chronic homeless," Ng said. "These are severely mentally ill and drug and alcohol addicted individuals. And it's not a lockdown facility, so they can come out into the community."

Patricia Ramos-Anderson, who doesn't live near the site but said her parents own property there, said the community wasn't informed about the new development. But city records show there were at least five community meetings with more than 100 attendees.

Homeless advocate Jennifer Loving, who directs the nonprofit Destination: Home, says building more homeless housing is the only solution to end homelessness.

"People are speaking out against things that haven't even happened yet," Loving said. "We need to do projects if we want to end homelessness. The council asks for solutions and we deliver responses to end homelessness and people don't like them. But the projects that are being proposed are good, solid projects."

Nguyen, who just returned from a trip to Portland where he slept in an outdoor tent city, says that experience taught him the importance of keeping homeless housing projects away from neighbors.

"The neighbors want to protect the value of their property -- that's natural," Nguyen said.

But Bramson said the focus should be to transition people back into the community. Affordable housing needs to be near transit and services to be successful, he added.

"Residents are less likely to have vehicles and need to be in places to access what they need for everyday life -- things like shopping for groceries or getting to a pharmacy," he said.

If the housing project is approved Tuesday, city leaders will also ask to apply for a $14 million grant under the Affordable Housing and Sustainable Communities Program to improve transit, trails and other infrastructure.

Source: Mercury News, Ramona Giwargis
http://www.mercurynews.com/bay-area-news/ci_30007401/san-jose-councilman-opposes-homeless-housing-project-ahead

6 SUCKY Realities About Selling Your Home, And 8 Ways To Make It Happen More QUICKLY

Selling your house while you live in it sucks. There is no other way to describe it. And if you don’t live alone it sucks exponentially more with every family member, including pets. You may think I am exaggerating… but these words are the awful TRUTH.

The Sucky Truths

1. You need to keep your house pristine. Not only neat and clean and picked up… but PRISTINE. Sparkly. Shiny. With absolutely no evidence that humans live there. No dishes in the kitchen sink, no toothbrush on the side of the sink in the bathroom, not one water drop on your mirrors. You are competing with model homes, you think model homes have water spots on their mirrors? Never.
2. Not only do you need to keep your house pristine, but you need to keep your yard the same way. The lawn must be mowed and green, and you actually have to edge as well. No weeds, no leaves, no spiders in the corner of your patio. It needs to look like a story book… which is not an easy thing to do in this dust bowl we call home. You know those adorable bright red cushions you bought at Target last summer? They show every speck of dust, and you must clap them out every single day. You must keep the story book fantasy alive for your buyers!
3. You must leave when you have showings. Not only must you leave, but your animals must leave too. Every single man on the planet and several women will say they are allergic to cats, so your cat should not be seen. Don’t even get me started on the litter box, get it outside. And Fido, he’s got to go too. Lots of people are legitimately afraid of dogs. Terrified. Irrational fear. Even if they hear the barking of a dog before they enter, they won’t enter. Forget it. If they don’t enter, guess what, they aren’t buying your house.
4. So now you, your cat, dog, and three kids are in your car driving around in circles waiting for the agent to show up and show your house… and waiting, and waiting, and waiting. Susie forgot to use the potty, and she is hungry, the cat just peed in your car, and you are missing Dr. Phil… where is the agent??????? Finally, 32 minutes after he said he would be there he shows up, wearing shorts and a t shirt, and takes the buyers in… and 5 minutes later they leave??? What the heck was that? What happened? When your realtor calls for feedback she finds out they only want a single level home, no two stories. Are you kidding? It is listed as a two story, there are several pictures showing clearly it is a two story, you even have a picture of the stairs!!!! So you did all of that for nothing… again.
5. When you send your listing to friends and family everyone will tell you how nice your house is, and why again are you moving? They will make you second guess and question every decision you have ever made, and really, look at that beautiful pool…
6. You will get a ridiculous offer. It will ask for crazy things, like for you to pay all of their closing costs, or for you to leave your brand new Rainbow swing set in the backyard, or sometimes even your pet if they happened to catch a glimpse of the adorable thing before you got him in the car. What are they thinking? You are just selling your HOUSE, not your life!

After hearing about some of the challenges of having your home on the market you might be thinking why on earth would anyone ever do that???? Well, because you want to sell your home. Maybe you want, or need, to relocate. Maybe you want, or need, a bigger house, or a smaller house. Maybe you want to be closer to work, or closer to family…maybe you want a pool, or are done with taking care of a pool. Whatever it is there is a reason sellers put themselves through this.

So what is the solution? How can you make this process easier, as painless as possible, and as fast as possible… while still getting the most money for your house?

Before you go on the market:

1. Stage your home. Put away all of the clutter. Pack up half of your stuff and store it in the garage. Make sure closets aren’t stuffed, rooms don’t feel crowded, and your personal items and photos aren’t making it impossible for a buyer to imagine the home as theirs.
2. Make sure your pictures are phenomenal. Whether that is a professional photographer, or your agent, pictures are what 90% of buyers will use to decide if they want to see your home in person. Shine your best light on your house in your photos, get as many people through as possible. But do not overly edit your photos, that will turn people off, and make them feel cheated when they see the real thing.
3. Price your house reasonably. People will skip your house if it is over priced. Buyers don’t like to haggle with unreasonable sellers, so be reasonable, from the start. Don’t dig your feet in during negotiations. Go for the win/win. If you want way above what other homes around you are selling for, don’t list your home for sale. The chance of finding a buyer is slim, and if you do, chances are they will need a loan… and loans need appraisals. Those are tough enough even pricing at market value, don’t set yourself up for a disaster. And if you real estate agent is letting you choose the price, find another real estate agent. One that will support the list price with comparable sales and with market knowledge… someone that does real estate full time.

While you’re on the market:

1. First of all, do numbers 1-6 of selling sucks when you are on the market. Don’t take anything personally, and if you fail occasionally, don’t beat yourself up.
2. Make the house as available as possible. Real estate agents might not be able to give you 24 hours notice, sometimes buyers don’t give them the proper head’s up of what they want to see. Occasionally they will forget to make the appointment and will call from the driveway. If you can, let them in. They might not make it back.
3. Crank your air down if it is hot outside. Make sure it feels good, smells good, and is as pleasant as possible for the buyers while they are in your home.

After you’ve accepted an offer:

1. Expect to make repairs to your house. Lots of issues the buyer will bring to you will be warranted items, make sure you understand this before you accept an offer.
2. Pack up, move out, and leave a clean home for the new owners…by the closing day. Leave your extra keys, garage remotes, mailbox location and keys, and any good to know info for them. Move on to your next home knowing you just completed an awesome win/win sale!

Source: Lighter Side of Real Estate

http://lightersideofrealestate.com/real-estate-life/6-sucky-realities-selling-home-8-ways-make-happen-quickly

Mortgage Payments When You Are In Financial Trouble

None of us can appreciate -- nor anticipate -- the future. Although we always believe it will never happen to us, once in a while, calamity strikes, and then we have to address these very hard and difficult questions.

You own a house, with a sizable mortgage. Suddenly, you (or your spouse) lost their job, and you cannot make the monthly mortgage payments.

There are a number of options you should immediately consider. However, the very first thing you should do is to talk with your lender. Don't just discuss your issues with a low-level employee. Try to go as high up the corporate ladder as you possibly can. And don't be afraid to be honest. Legitimate mortgage lenders will try to work with you, since they don't want to evict you and have to own and carry your house until they sell it.

Here are some of the options which are available to you.

1. Temporary indulgence. Here, the lender, at your request, may grant you a short period of time -- usually not more than three months -- in order to cure any delinquency. However, this is merely temporary relief, and by the end of that short period of time, the borrower must be completely current.

2. Repayment plan. Here, the borrower is given a fixed period of time -- usually not to exceed one year -- in which to bring the mortgage current by immediately making and continuing to make payments in excess of the monthly mortgage payment. It is important to get this repayment plan reduced to a written document, signed by both the lender and the borrower.

3. Special forbearance relief agreement. Here, the regular monthly mortgage payments are suspended or reduced for a period of up to eighteen months from the due date of the first unpaid monthly installment. At the conclusion of this relief period, the regular payments must be resumed; additionally, a comprehensive plan must be agreed upon for the repayment of the amount that has been suspended.

In this case, the lender will make a determination that the default is curable, and based on the current financial and appraisal data, the lender must be satisfied there is a likelihood that the borrower will be able to comply with the repayment plan. Clearly, the burden will be on you to document and justify the plan, so as to satisfy the lender's requirements.

If you are in the military, the Soldier's and Sailor's Relief Act provides various forms of relief, but you should check with your military or civilian lawyer to determine your eligibility under that Act.

4. A short sale. Here, the lender will authorize you to sell the property for what it is really worth, and the lender will get all the proceeds. Let us look at this example. The house can probably be sold at $395,000, but the mortgage is $425,000. The lender may allow you to sell the property for $395,000, giving a real estate broker a commission. The lender gets all the remaining sales proceeds; you get nothing from the sale. However, under this "short sale" approach, you will be relieved of your mortgage. In some cases -- depending on your financial situation -- the lender may want you to pay a portion of the mortgage shortfall; this depends on the lender and is clearly negotiable.

5. Deed in lieu of foreclosure. This is another remedy that may be available to you. Under this arrangement, you deed your property to the lender (or to whomever the lender designates) and this is in lieu of (instead of) foreclosure proceedings. This arrangement is an acceptable and customary procedure when, for example, the borrower is deceased and the estate is willing and able to transfer the property, or the borrower has filed Chapter 7 bankruptcy, and the trustee has abandoned interest in the property.

6. Foreclosure. Here, the lender will sell your property at auction (or in some states at the Courthouse), and you will lose your home and your credit rating (whatever is left of it. Legitimate lenders do not want to foreclose. and they will reluctantly start the process if all else has failed.

7. Bankruptcy. Your final option, of course -- which should be used only as a last resort -- is for you to file bankruptcy. When someone files for bankruptcy, there are many protections that automatically apply from the day the bankruptcy petition is filed with the Bankruptcy Court. The most important protection under the bankruptcy law is known as "the automatic stay." If you are in bankruptcy, no legal action can be taken against your house unless the lender requests the Court for permission to "lift the stay."

You cannot ignore your financial problem, hoping you will win the lottery or find some other immediate source of funds. The level of your cooperation is the most significant aspect that will determine how willing the lender is to similarly cooperate.

Source: RealtyTimes, Benny L. Kass
http://realtytimes.com/consumeradvice/mortgageadvice1/item/43937-20160420-mortgage-payments-when-you-are-in-financial-trouble

Home Owners May Be Too Upbeat About Prices

Home owners may be slightly too optimistic about their home’s value compared to what appraisers say it’s actually worth. Home values are, on average, about 2.17 percent lower than what home owners expect compared to appraisers’ estimates, according to Quicken Loans’ latest Home Price Perception Index.

The gap between home owner expectations and appraisal estimates widened in March. In February, appraisals were 1.99 percent lower than what home owners expected.

Several areas in the Western region of the U.S., however, continue to see that the average appraised value is beyond what home owners were expecting. On the other hand, in the Midwest, appraisals tended to lag behind home owner estimates.

“The varying HPPI values across the country illustrates the importance of examining the market at the local level,” says Quicken Loans Chief Economist Bob Walters. “If home owners are eyeing that new home being built across town, they could be pleasantly surprised how much their home will sell for – or in some instances their equity may not take them as far as they think – depending on what area of the country they’re in. … It’s not always easy for home owners to keep their finger on the pulse of their equity.”

View a chart to see the breakdown of appraisal values versus home owners’ perceptions of value by metro level.


Source: RealtorMag Online - Quicken Loans
http://realtormag.realtor.org/daily-news/2016/04/14/home-owners-may-be-too-upbeat-about-prices?om_rid=AAFmZk&om_mid=_BXEBCMB9MrFoN4&om_ntype=RMODaily

91.5% of Homes in the US Have Positive Equity

CoreLogic’s latest Equity Report revealed that one million borrowers regained equity in their homes in 2015. The outlook for 2016 remains positive as well, as an additional 850,000 properties would regain equity if home prices rose another 5% this year.

The study also revealed:

• 95% of homes valued over $200,000 now have a positive equity position
• 87% of homes valued under $200,000 have entered a positive position
• The 11.5% growth in home equity in Q4 marked the 13th consecutive quarter of double digit gains

Below is a map showing the percentage of homes with a mortgage, in each state, that have positive equity. (The states in gray have insufficient data to report.)



Significant Equity Is On The Rise

Anand Nallathambi, President & CEO of CoreLogic, believes this is great news for the “long-term health of the U.S. economy.” He went on to say:

“The number of homeowners with more than 20% equity is rising rapidly. Higher prices driven largely by tight supply are certainly a big reason for the rise, but continued population growth, household formation and ultralow interest rates are also factors.”

Of the 91.5% of homeowners with positive equity in the US, 72.6% have significant equity (defined as more than 20%). This means that nearly three out of four homeowners with a mortgage could use the equity in their current home to purchase a new home now.

The map below shows the percentage of homes with a mortgage, in each state, with significant equity.




Bottom Line

If you are one of the many homeowners who is unsure of how much equity you have in your home and are curious about your ability to move, meet with a local real estate professional who can help evaluate your situation.

Source: Keeping Current Matters, 
http://www.keepingcurrentmatters.com/2016/03/23/91-5-of-homes-in-the-us-have-positive-equity/

Video - One Cool Thing (Home Projects)

1 Million Borrowers Regained Equity Last Year

Spread the good news: The nation increased its number of financially secure households by a significant amount in 2015. By the end of the fourth quarter, about 46.3 million – or 91.5 percent – of all properties with a mortgage had equity, according to CoreLogic’s most recent analysis, released this week.

“The number of home owners with more than 20 percent equity is rising rapidly,” says Anand Nallathambi, president and CEO of CoreLogic. “Higher prices driven largely by tight supply are certainly a big reason for the rise, but continued population growth, household formation, and ultra-low interest rates are also factors. Looking ahead in 2016, we expect home equity levels to continue to build, which is a good thing for the long-term health of the U.S. economy.”

The majority of residential properties with positive equity tend to be at the higher end of the housing market, according to CoreLogic. Ninety-five percent of homes valued at $200,000 or higher have equity, compared to 87 percent of homes below the $200,000 mark.

Despite recent gains, many home owners are still “under-equitied,” according to CoreLogic’s report. More than 50 million residential properties with a mortgage – or 18.9 percent – have less than 20 percent equity in their properties, and 1.2 million home owners – or 2.3 percent – have less than 5 percent equity.

Some home owners still don’t have any equity. About 4.3 million home owners with a mortgage, around 8.5 percent, owe more on their home than it is currently worth as of the fourth quarter of 2015. That marks a slight increase from 8.3 percent in the prior quarter, but a 19 percent year-over-year decrease from 2014.

Source: RealtorMag Online > CoreLogic
http://realtormag.realtor.org/daily-news/2016/03/11/1-million-borrowers-regained-equity-last-year?om_rid=AAFmZk&om_mid=_BW4z-nB9LrH0Xo&om_ntype=RMODaily

Bay Area real estate: those underwater mortgages are drying up

Going, going, but not quite gone.

We're talking about homeowners whose mortgages are underwater. A new report from CoreLogic, the real estate information service, shows that 6.4 percent of properties in Alameda and Contra Costa counties remained in negative equity at the end of 2015.

But that was down from 9.3 percent a year earlier -- and far removed from the end of 2009, when 36.3 percent of mortgages in those East Bay counties were in negative equity as the recession took hold and the housing market crashed.

"The decline in negative equity mainly reflects rising home values and people paying down their mortgages," said Andrew LePage, research analyst for Core Logic. "As the economy has improved, fewer people find themselves underwater."

The rest of the Bay Area gets an improved report card, too. Only 1.9 percent of homeowners were underwater in Santa Clara and neighboring San Benito counties at the end of 2015, compared with 3.6 percent the year before and 22.4 percent at the close of 2009, when 26 percent of the nation's properties were upside down.

In San Francisco and San Mateo counties, just 0.7 percent of properties were in negative equity at the close of last year, down from 1.3 percent in 2014 and 10.4 percent in 2009.

Negative equity -- colloquially described as "underwater" or "upside down" -- refers to borrowers who owe more on their mortgages than their homes are worth. In the lead-up to the recession, risky aggressive financing got more homeowners in trouble in the inland East Bay counties than in coastal stretches of the Bay Area.

Source: Mercury News, Richard Scheinin
http://www.mercurynews.com/business/ci_29627578/bay-area-real-estate-those-underwater-mortgages-are

Info Graphic - How To Create Real Family Wealth

Source: Keeping Current Matters

Vallejo man builds $1 million house, seeks to raise expectations, property values

Most of us know you shouldn't judge a book -- or a person or a city or neighborhood -- by its cover, and yet we all do it.

Vallejo builder Andy Salon said he's trying to help change this city's image "one house at a time," by building a first-class home and selling it for nearly $1 million.

Salon said he designed and built the two-story home in Vallejo's Heritage District, sparing practically no expense with many European-inspired luxury features, hoping to bring up property values in the surrounding area. He's asking $949,000 for the house that cost him $739,000 to build.

"I'm very proud of this house," he said. "I hope it brings the highest price of any home in the area. That will raise the 'comps' here, and increase property values."

Upscale shouldn't be so unusual here, he said.

"When they find out I'm asking nearly $1 million, they say there's no way to get that much in Vallejo," he said. He hopes they're wrong.

Local Realtor, Toni Foster whose firm, Twin Oaks Realty is selling the house, said she's impressed by the workmanship.

"It sounds like he has great aspirations and inspiration. It's a phenomenal house. And I hope he gets his money and does exactly what he wants to do," said Foster, who is not the listing agent. "I wish everybody felt the same as him, and wanted to bring the city up. I'm excited by someone that feels our town warrants the kind of craftsmanship that he's doing."

When Salon bought the lot at 738 Georgia St., about 18 months ago, it was empty except for a slew of old cement sinks, after the house that stood on it for at least 100 years, burned down in 1999, he said.

Another home of similar size, though 100 years older than the one Salon just built, sold several months ago for about $650,000, he said.

The four bedroom and 4- 1/2 bath, 2,600-square foot house, with a 600 square-foot two-car garage, has two fireplaces, wood floors throughout the downstairs and three levels of redwood decking. That includes one on the roof, accessible by way of a wrought-iron spiral staircase.

All the appliances, including a flat-screen TV and a security camera system with two monitoring locations -- come with the house.

The kitchen is all chrome and glass and the closets all have cedar floors.

Sliding back gates, tankless water heaters, energy and water-saving fixtures and appliances, including a bathtub spout in the master bathroom that resembles a waterfall, are among the special features. There's a panoramic view of Mare Island and to the eastern hills from the upstairs deck, and most of the upstairs rooms.

"You can turn on your heater or your central air-conditioning remotely, so the house is warm or cool by the time you get home," he said. "It comes with the latest model washer and dryer in the laundry room, upstairs. There's a remote for the toilets that controls the temperature of the seats and the water for the bidet."

There's a small glass shelf above the toilet paper dispenser, where one can lay one's cell phone or wallet. Salon said he tried to think of everything.

He included something called a Mansard roof -- a four-sided gambrel-style hip roof characterized by two slopes on each of its sides with the lower slope, punctured by dormer windows, at a steeper angle than the upper. It comes from the French architect François Mansart (1598-1666).

"Back then, in France, they charged extra taxes for a second story, so he used this style and called the second story a roof and only had to pay for one floor," he said. "The story grabbed me."

Other, clever little features include crown moulding, fire sprinklers, built-in surround sound and special USB plugs in the outlets.

"Everybody asks why I put so much money into this house," he said. "Everybody loves it, but they ask why, and I tell them, I want to change Vallejo, one house at a time. When I brought my plan before the planning commission, a couple of people opposed it, because, they said, Vallejo is a working class town, and there's nothing wrong with that, but I want to give it a little bit of an upgrade. I may not see it in my lifetime, but if we get 15 or so million-dollar homes sold here, it will start to change it."

Perception can be the greater part of reality, he said.

"People will start to see Vallejo in a different way," he said. He also said the improved attitude at City Hall encouraged him to test these waters.

"I want to make money on this, I'm not going to lie. I'm not a charity," he said. "But I live here, and I want to make a difference. One man can change the world, for better or worse. I, of course, am going for better."

Like Foster, Shelley Tappin, president of the Solano Association of Realtors and a Broker-Associate with Tipp Realty at Glen Cove, said she loves what Salon is trying to do with the house.

"It is rare to find a new home in the Heritage District that combines old charm with modern amenities," she said. "This home certainly offers some very nice features that buyers won't come across every day. I applaud the efforts and vision that the owner is contributing to the growth and future of our great city."

Source: Mercury News, Rachel Raskin-Zrihen
http://www.mercurynews.com/business/ci_29486969/vallejo-man-builds-1-million-house-seeks-raise

Preventing Accidents at Home During the Holidays

Lights are strung up on houses and trees throughout neighborhoods, snowflakes decorate grade school classrooms, and candy canes fill grocery store shelves. The holidays have snuck up on us yet again.

And with so much going on during this time of year, the old adage “accidents happen” should be kept in mind. The stress of decorating, buying gifts and prepping for the arrival of friends and family can leave even the calmest individuals feeling frazzled. And when your attention is diverted due to stress, injuries or disasters can occur.

An estimated 13,000 injuries result in visits to the emergency room each year around the holidays, according to the U.S. Consumer Product Safety Commission. To keep accidents from spoiling your holiday cheer, follow these safety tips.

Deck the halls

Decorating for the holidays is one of the most widely embraced traditions of the season, but it also can be one of the most dangerous. The most popular decorating-related accidents can be the result of hanging strands of lights, and can include anything from falling off ladders to suffering electrical shocks.

The Centers for Disease Control and Prevention (CDC) reports that the holiday months are responsible for more fall-related injuries than any other time of year.

To keep yourself from becoming a statistic, test all lights before hanging them, and have a friend or family member hold a ladder steady while you’re decorating the roof or a tree in your yard.

Wrap presents, not bandages

Few things are more central to the holiday season than wrapping presents and hanging ornaments. Many people get excited to spoil their loved ones with gifts, and to get the ornaments out of storage to make the house more festive.

Though they’re part of the fun of decorating, these common holiday rituals can result in visits to the hospital if you’re not careful.

Think about it: Wrapping presents exposes you to slicing your hand with scissors or paper, and ornaments can fall or shatter, resulting in lacerations if someone steps on a piece of broken glass.

To help combat potential cuts:

• Take your time wrapping presents, and devote your full attention to the task.
• Always supervise children when handling scissors and wrapping gifts.
• Refrain from hanging breakable ornaments on low tree branches where kids or pets could knock them off.
• If an ornament does break, keep children and pets away from the area and clean up the mess immediately, making sure even the tiniest shards of glass are removed from the floor.

Lift with your legs

Many people must travel to be with loved ones during the holidays, and that may mean lugging around a heavy suitcase. And with loved ones coming to visit, it’s important to shovel snow out of driveways and sidewalks to reduce injuries.

These tasks may seem innocuous, but they can be far from it. The CDC reports that more than 50,000 winter-related back injuries occur each year.

When shoveling snow or transporting luggage — though it may sound silly — make sure you stretch beforehand, wear appropriate attire (including shoes with traction), keep a steady pace, hydrate, and lift with your legs while keeping your upper body straight to reduce strain and tension on your back.

Chestnuts roasting on an open fire

It’s extremely likely that you’ll hear this classic holiday song this month. It’s also likely that your home may be at risk for structure fires.

Strands of lights with frayed wires, Christmas trees, space heaters, candles, flammable items placed too close to open flames, and cooking all present risks for home fires during the holidays.

According to the National Fire Protection Association statistics for home fires between 2009 and 2013, Christmas Eve and Christmas Day are two of the top three days of the year for home candle fires; Christmas tree fires resulted in $17.5 million of property damage per year; and decorations (excluding Christmas trees) were the first items ignited in about 860 home fires, causing an average of $13.4 million worth of property damage per year.

While fire typically is covered by standard home insurance, no one wants to go through the hassle.

Keep your home safe, take these precautions:

• Test trees before bringing them into your home to ensure they’re not dried out, thus becoming a fire hazard. This is done by hitting the trunk of the tree against the ground. If a lot of needles fall off of the branches, keep searching for a healthier tree.
• Check all lights before hanging them on trees or other flammable decorations.
• Keep stockings and other flammable items a safe distance from the flames of the fireplace or decorative candles.
• Never leave space heaters or food cooking on the stovetop or in the oven unattended, and keep items that can easily ignite a safe distance away (typically a minimum of three feet).

This holiday season, make sure that your home insurance is up to snuff and will protect you, your family, and your home in the event of disaster such as an injury or home fire.

Source: Zillow Blog, Shannon Ireland
http://www.zillow.com/blog/prevent-accidents-at-holidays-189848/

7 Ways to Get Top Dollar for Your Home During the Off-Season

After a record-setting summer selling season in many parts of the country, home sales have quieted down for the fall. If you’re putting your home on the market, you might see that as an obstacle, but it can be an opportunity. Even if there is less traffic, there’s less competition from other sellers. In a market where inventory is already tight, that gives you an even greater advantage.

Fall is a particularly good time to sell if you’re marketing to retirees, millennials, or those with very young children—they’re less concerned about tying a purchase to the school calendar. Going into winter, you’ll find that buyers who are willing to trudge through snow to see a home tend to be much more motivated to make a purchase than those who spend a sunny Saturday dropping into open houses.

If you’re thinking of listing your home in the next few months, follow these steps to ensure a quick sale at a great price:

1. Skip the holiday décor

Staging basics such as decluttering and depersonalizing still count during the holidays, so it’s best to keep the inflatable Rudolph and the tinsel in storage.

“You never know who your potential buyer is,” says David Peterson of Synergy Staging in Portland, OR. “We don’t want to pigeonhole or potentially turn someone off.”

2. Update your photos

Even without holiday decorations, photos can quickly look dated as the seasons change. It’s fine to lead your listing right now with a gorgeous photo of crimson- and gold-leaved trees on the front lawn, but once the leaves have fallen, you’ll want a new photo to keep the listing looking fresh, says Jan Niebauer of Niebauer Realty in Milford, MI. Try to snap photos on days when there’s a blue sky, which will pop against a blanket of white snow.

3. Keep the outside neat

Curb appeal is just as important but slightly more difficult to achieve in fall and winter. A leaf- or snow-covered lawn can be beautiful, but it can also get messy quickly.

“Make sure it’s neat and tidy,” Peterson says.

Put an added focus on raking and removing leaves, and consider hiring a snow-removal service to be sure that your driveway and walkways are clear and safe for visitors at all times.

4. Clear the entryway

You’ll want to make sure there’s space for a few people (like a couple and their agent) to stand in the foyer, shed their winter clothes, and stomp off the debris on their shoes, Peterson says. Provide an umbrella stand and shoe covers to keep visitors from tracking mud and snow through your home.

5. Make it warm—literally and figuratively

If you’re going to be out of the house, be sure that your Realtor® arrives early to crank up the thermostat before a showing (or leave it at a warmer temperature when you leave in the morning), which will help potential buyers feel more comfortable.

“It’s vital that a house be warm,” Peterson says, but “not too warm that people have to peel off all their clothes, but definitely not so cold that they want to get out as fast as possible.”

If you have a gas fireplace, make sure it’s lit, and enhance that warm, hospitable feeling with a tasteful throw blanket or area rug.

6. Be more flexible with showings

There are fewer hours of daylight, when your home looks its best, in the winter months, so try to accommodate potential buyers who want to come for daytime visits, Niebauer says.

7. Light it up

Even during the day, cloudy gray skies can make window-lined rooms feel gloomy. Adding floor lamps and turning on all the lights will make the property feel more welcoming.

“Light up every dark corner because they can make a room feel smaller than it is,” Niebauer says. If visitors are coming at night, you’ll want to turn on all your exterior lights as well.

Source: Realtor.com, Beth Braverman
http://www.realtor.com/advice/sell/seven-ways-to-get-top-dollar-for-your-home-in-the-off-season/

4 Renovation Blunders That Can Hamper Value

Renovations are mostly done not only for a home owner’s comfort but to add value to their home. However, in some cases, home owners may end up making their home worth less depending on what they choose to do.

MarketWatch recently featured some of the most common renovations for home owners that potentially could decrease the value of their home, including:

1. Eliminating a bedroom: Even if the home owner plans to remove a bedroom in order to expand another one or make a living space larger, this renovation project likely could burn them at resale. The more bedrooms a home has, the higher the price it usually can get. “When you start eliminating bedroom space, you’ve completely changed the comparable value of your home in the neighborhood,” says David Pekel, president of Pekel Construction and Remodeling in Wauwatosa, Wis.

2. Renovating the garage into living space: Getting rid of the garage space in favor of an extra office, family room, or bedroom can be a turnoff to many potential buyers at resale, real estate professionals say. Seventy-four percent of recent buyers said that having a garage is extremely or very important, according to a survey of 7,500 people by Crescent Communities. For home owners who do choose to renovate the garage into living space, they may find leaving the garage doors on the outside a good move so that buyers could more easily convert the space back into a garage if preferable.

3. Removing closets: Michele Silverman Bedell, chief executive of Silversons in Westchester, N.Y., recalls a client who removed a closet out of the master bedroom in order to make a bigger master bath. But the renovation made the home much more difficult to sell, Silverman says. “People need closets,” she told MarketWatch. “They’ll walk in and count the number of closets per room.”

4. Too much wallpaper: While wallpaper can be removed, it has the reputation of being a lot of work to get it off.

Source: Realtor Mag Online > MarketWatch
http://realtormag.realtor.org/daily-news/2015/11/20/4-renovation-blunders-can-hamper-value?om_rid=AAFmZk&om_mid=_BWT2owB9II1pk0&om_ntype=RMODaily

7 Simple Ways to Increase the Value of Your Home

Unless you have a luxury shoe habit that rivals Carrie Bradshaw’s (who needs 400K in shoes?), your home is probably the most valuable thing you own. But just because it’s already worth a lot doesn’t mean you can’t bump up the value a few more notches. Whether you’re planning to sell in the near future – or you just want to grow your investment – these seven easy adjustments will make your home worth more money!

1. Hire the Right Person for the Job
When you're hiring a contractor to care for your home, you're basically putting your biggest asset in the hands of someone else. Make sure it's the right contractor by using Angie's List. By taking the time to find a reputable contractor, you'll ensure that your home is up to snuff, which will save you money in the long run and increase the value of your home.

2. Inspect Early and Often
When prospective buyers get close to pulling the trigger, one of the first things they’ll do is have your home professionally inspected. If any nasty surprises are uncovered – such as mold or water damage – things are going to change. At best, you’ll have to lower your asking price. There’s also the possibility that the buyer will take their business elsewhere and simply disappear in a puff of smoke. Avoid this problem by inspecting your house regularly! A few important areas to check are your basement, attic and bathrooms.

3. Add Extra Seating
This one is so simple that a lot of people don’t even think of it! By adding some chairs and a table to an open part of your house, you instantly create a second dining or seating area. The furniture helps show the potential of the space, which can translate to a higher perceived value to the buyer. This is especially helpful for outdoor areas, such as your deck or patio.

4. Paint Your Cabinets
Replacing your entire kitchen-cabinet setup can be expensive and time-consuming, but a fresh coat of paint can accomplish almost the same thing! Not only will this hide any scratches your cabinets may have picked up over time, it will give your kitchen a new look, too. For more places around the house that can benefit from a coat of paint, read: Paint: It’s Not Just for Walls.

5. Use Potted Plants
A beautiful, lush garden on either side of the front door is great, but it’s not always feasible. If you don’t have the time to let your green thumb thrive, try placing little groups of potted plants on your front porch, instead. Your curb appeal will get an instant upgrade, but you won’t have to hire a part-time gardener to handle the upkeep.

6. When In Doubt, Add Storage
This is less about providing a ton of storage for potential buyers (although that’s important) and more about establishing an organized atmosphere in your home. You don’t need to fill every open spot in your house with cabinets or wardrobes, but there are probably a few simple additions you can make that will tie a room together. Need some ideas? Start in the kitchen!

7. Make It Shine
When you want to make a great impression at a party, you spend some extra time on your makeup, right? The same principle applies to your house. Except instead of perfecting your eyeliner, you can shine some fixtures! Anything that’s stainless steel (like your sinks and faucets) is a perfect place to start, because it’s easy to really make them sparkle.

Source: Brightnest, Brian
https://brightnest.com/posts/7-simple-ways-to-increase-the-value-of-your-home

This is Where the Equity-Rich Live

If there was ever in doubt in the minds of some of you wondering about the robustness of the real estate market here in the silicon valley, then this new report by RealtyTrac should help drive the point home. If you you can afford to buy now, you should because you are most likely going to reap the benefits in excellent equity appreciation later on down the road. San Jose California makes the top of the list, the heart of the Silicon Valley.


This is Where the Equity-Rich Live


The following metro areas with a population of at least 500,000 are seeing the highest share of equity-rich residential properties – those with at least 50 percent equity – according to RealtyTrac’s Third Quarter 2015 U.S. Home Equity & Underwater Report:

San Jose, Calif.: 43.9%
San Francisco: 37.9%
Honolulu: 36.5%
Los Angeles: 32.1%
New York: 30.4%

Rising home prices in Seattle have prompted more owners to now be in the equity position as well.

“Given the price growth we are seeing in the Seattle housing market, it’s not surprising that equity is growing as well,” says Matthew Gardner, chief economist at Windermere Real Estate in the Seattle market. “This is a sign that many owners who were able to hold onto their homes through the housing crisis have recovered much, if not all, of their lost equity.”

But just because owners now have equity doesn’t mean they’re looking to cash in right away.

“Unfortunately, even though the number of equity rich home owners is on the rise, this isn’t translating into additional inventory in the Seattle market,” Gardner says. “As a result, we find ourselves in the proverbial ‘chicken-and-egg’ situation where there are plenty of people who want to sell, but won’t list their home until they can buy something new. But they can’t buy something new until there are more homes for sale. Unfortunately, I see no end in sight to this cycle in the near term.”

For home owners facing foreclosure, they may be able to avoid it altogether and cash out with the sale of their home.

As home prices rise, the share of in-foreclosure properties that are seeing equity is growing too. The following major markets are seeing the highest share of in-foreclosure properties with positive equity: Denver (85.9%); Austin, Texas (83.3%); Honolulu (79.5%); Scranton, Pa. (77.8%); San Jose, Calif. (77.3%); Pittsburgh (75.9%); McAllen, Texas (75.6%); Baton Rouge, La. (71.6%); and Nashville, Tenn. (71.4%).

Source: Realtor Magazine Online via RealtyTrac
http://realtormag.realtor.org/daily-news/2015/10/26/where-equity-rich-live?om_rid=AAFmZk&om_mid=_BWLng0B9G7tAJR&om_ntype=RMODaily

Renting or Owning? Which costs more?

There’s more to comparing the costs of renting and owning than the dollar cost of payments.

Even with numbers like these, some still say renting is better:

“Investing in a home is riskier than renting.”
No risk, no reward. Besides, even studies conducted by the Federal Reserve show that owning can provide a net worth that is from several to hundreds of times higher than that of renters.

“Home values have dropped in recent years.”
Which is one reason why ownership may now be less expensive than renting. As well, recent price trends in many areas have reversed, and values are once again on the rise.

“The tax deductions aren’t worth it.”
Some people benefit from claiming deductions for mortgage interest and real estate taxes. Others find a standard deduction more valuable. Even if you exclude the tax benefit, the real cost of owning can still be less than renting.

Equity for you or equity for your landlord?
With more or less equal payments, owning will always have an advantage in that you’re paying down principal and earning equity in your own home rather than the landlord’s.

Still renting and want to explore the path to ownership? Reach out, and we'll be happy to help.

Factors used: $500,000 purchase price, 20% down, $400,000 30-yr. fixed loan at 4%/4.25% APR. Principal & Interest payment = $1909.66, taxes = $520.83/Mo. (1.25% of value), insurance = $120.83/Mo. ($2.90 per $1000 of loan amount) & maintenance = $208.33/Mo. (0.5% of value). Tax deductibility at 28%. Tax savings, principal paid and appreciation averaged over a 5-year period. Always consult with your tax advisor for tax advice specific to your situation. This is not a Good Faith Estimate nor an offer to lend. Rates, prices, taxes, insurance, etc., are subject to change at any time. APR calculations are based on closing costs of 3% of the loan amount. Actual fees can be less.

How Do Homeowners Accumulate Wealth?

How Do Homeowners Accumulate Wealth?

Lawrence Yun Contributor

Opinions expressed by Forbes Contributors are their own.


The differences between buying and renting are massive.  According to the Federal Reserve, a typical homeowner’s net worth was $195,400, while that of renter’s was $5,400.  The data reflects 2013 and the next survey of household finances, which is conducted every three years, will be out in 2016.

Based on what has happened since 2013 and projecting a conservative assumption of what could happen next year to home prices if we see only 3% price growth, the wealth gap between homeowners and renters will widen even further. The Fed is likely to show a figure of $225,000 to $230,000 in median net worth for homeowners in 2016 and around $5,000 for renters. That is, a typical homeowner will be ahead of a typical renter by a multiple of 45 on a lifetime financial achievement scale.

Though there will always be discussion about whether to buy or rent, or whether the stock market offers a bigger return than real estate, the reality is that homeowners steadily build wealth.  The simplest math shouldn’t be overlooked. A vast majority of homebuyers take out a 30-year fixed rate mortgage to make a home purchase. After 30 years, there is no mortgage payment (nor rent payment). So the home price growth over that time period would be the equity that the homebuyer would have accumulated. For example, the median home price of a single-family dwelling in the U.S. thirty years ago in 1985 was $75,500. This year, it will be at least $220,000. That figure of $220,000 is the housing component of the person’s wealth. Even had home prices not risen, the person would still have $75,500 in wealth today – on top of not paying any further monthly mortgage after 30 years.

This simple example does not play out nearly as neatly in the real world, since people do not stay in one residence over the 30 year period. Almost all homeowners trade up, change neighborhoods, or move to a better school district at some point. However, they are able to make those residential relocations due to the housing equity accumulated, even over a shorter period, and can immediately apply that equity to the next home as a downpayment. Therefore the conditions of steadily building housing wealth still hold.

We also know that not everyone can or should be homeowners. The memories of easily accessible subprime mortgages and subsequent harsh foreclosure pains are still fresh, and remind us of the devastating impact on the families involved, local communities, and to the broad economy. In addition most young adults have not developed the financial standing or have found a stable, desirable career and, therefore, choose not be homeowners until later.  The homeownership rate among households under the age of 35 is 35% currently and rarely rises above 40% historically. For those under the age of 25, the current ownership rate is 23% and rarely rises above 25%. But the time will eventually come when people want to convert to ownership. By the time people are in their prime-earning years of 45-to-55, nearly three-fourths do eventually become homeowners. By retirement, nearly 80% are homeowners.

A recent survey of consumers commissioned by my organization revealed that 80% believe that purchasing a home is a good financial decision (2015 National Housing Pulse Survey). Most consumers appear to already understand the simple math and the benefits of homeownership. So don’t overthink the matter of whether now is a good time to buy, or whether stock market returns will be better. The exact timing of a home purchase will have little financial impact in the big scheme of things. Just know that homeowners generally do come out ahead of renters in the long run.

Skip the Pain: 7 Things That Will Fill You With Buyer’s Remorse

Home shopping makes you a little (OK, a lot) house-obsessed. Between stalking online listings, flipping through all the design magazines, and gorging on HGTV marathons, you know exactly what you want in painstaking detail.

Ain’t nobody gonna say you can’t have what you want. And hey, we’re totally on board. You’ve earned this! Buy whatever you like (within your means of course)!

But we’re here to share an unsolicited word of caution. All those custom details you’ve dreamed about? Make sure you really, really want them before you put in an offer—and that, in order to get them, you’re not sacrificing other things that will ultimately drive you bonkers.

Is the big backyard really worth all the hours of mowing and landscaping? Is your desire for more space making your home feel less cohesive? Are those floor-to-ceiling windows, which made you fall in love with the home, a total PITA to clean?

We could go on and on about the flip sides that have the potential to fill you with regret. But we talked to some experts in the biz and boiled the list down to seven features. Pay close attention to these things that might set you up for the dreaded buyer’s remorse.

1. Don’t go big, just go home

You may want the space to spread out, but consider what rooms you’ll actually use once you move in.

Do you really need five bedrooms, a game room, an office, and two formal living rooms? If you buy too big a home, you might end up regretting it when it comes time to cool, heat, and clean the place.

And don’t forget room size. If the space is too big, your furniture will seem miniaturized. To avoid going too big (or too small), bring a tape measure and measurements of your own furniture to verify everything will look the way you want.

2. Don’t get boxed in

On the other hand, if you’re planning to stay put for a while, consider the home’s architecture. You may want to expand one day, and not all homes are set up for that.

“Many buyers of split-foyer-style homes—where you enter and you’re at midlevel with the stairs and must go up or down—complain that it is difficult to expand their home,” says Cathy Baumbusch, a Realtor® in the Washington, DC, metro area.

Instead, look for more flexible, one- or two-story homes where additions are easier.

3. Don’t let your stairs become an uphill battle

Finally, when you’re walking the floor plan, think of how you’ll use the space when you own it, especially if you’re looking at an older home.

“Most buyers in my area want the standard three-story—two upper floors and a basement—Colonial-style home,” Baumbusch says. “This type of home often has the laundry room in the basement, which means the family has to haul laundry up and down two flights of stairs.

“It can get old fast.”

4. Get off the island … maybe

What we often consider to be an amenity can create remorse. Take, for example, the kitchen island. It looks cool. It adds more prep space. We all want one. Or do we?

“Kitchen islands can be a mistake if you don’t take your ‘work triangle’ into account,” Baumbusch says.

Walk around the kitchen, following your usual prepping and cooking pattern. If you’re bumping into the island, you may end up hating it.

5. Pay attention to what’s missing

If the home is modern (or previous owners did some upgrading), take a hard look and ask yourself if anything is missing.

Often architects and remodelers will take something out to give a room a cleaner, more minimalist feel, and you may feel the loss after you move in.

“There is a trend to eliminate the bathtub in favor of just a shower,” Baumbusch says. “Some homeowners regret that decision, because sometimes they find themselves wishing for a nice long soak after a tough day.”

6. Pools may not be so cool

You step outside, see a pool and immediately picture all the backyard parties you’re going to have. We know, we know, pools are cool. But pools are also a huge expense.

On top of the regular monthly maintenance and cleaning (and there will be a lot of that), pools in seasonal areas are often opened and closed by a pro. Those costs add up.

“It can cost upward of $600 just to open a pool and prepare it for swimmers,” Baumbusch says.

Moral of the story: Pools are a big regret if the expenses cause a burden. Make sure you can comfortably afford the upkeep.

7. Don’t fall for fads

Today’s popular ice-white appliances, steel countertops, and Edison bulb light fixtures are yesterday’s saloon doors, linoleum, and brass hardware.

If you buy a house just for its trendy look, you may end up regretting it when the styles change, especially if you have to sell the outdated design. Instead, Baumbusch recommends looking for timeless features.

When all is said and done, look for a classic, well-designed home to ensure the smallest chance of stinging regret. It may not sound like as much fun, but you can always add a little (or a lot) of your style in the finishing touches.

Source: Realtor.com, Angela Colley
http://www.realtor.com/advice/buy/things-that-will-fill-you-with-buyers-remorse/

Use Corporate Sales Strategies to Sell Your Home

Competition is keen in the corporate world. Just think of Apple VS Samsung or The Gap VS J Crew. McDonald's, Burger King and Wendy's. How do they make their phones, clothes, and burgers stand apart from each other? The answer is that they follow a strategy and you can do the same thing to sell your home.

Let's start with Apple and Samsung. Apple distinguished its products by going white when other hardware producers had black or metallic casings. Samsung imitated the success of Apple products by copying their interfaces, then took the inside lane by creating a bigger viewing screen. So what does that have to do with selling a home? Here are three ways you can use world-class corporate strategies to sell your home.

Paint it white. One reason Apple products are so hot is the cool factor. Their products are streamlined, minimalistic and great-looking. That's the same thing you should strive to do when selling your home. Like Apple did away with the hard drive, get rid of anything you don't absolutely need for a clean, uncluttered look. Paint your home a single color like white so your buyers can see the bones of the house.

Make it unique. There's a reason you can't shop anywhere else to get the fit you want. The great retailers like J Crew tell a story by creating their own branded clothes and accessories around a theme. You can do the same thing. Make your home stand out from the neighbors with a feature they don't have like a treehouse or a koi pond. Greet visitors with a tableau -- a porch swing decorated with fresh pillows and a tabletop with a tray of lemonades.

Add value. Recognize that competition is stiff, so you have to do something to make your home a little more attractive to buyers. While you can't supersize your home like a McDonald's burger and fries, you can offer more for the money like a meal deal -- a burger, soft drink and fries for less than they would cost separately. Offer touring bikes for the next family to enjoy around the neighborhood. Throw in the first year of HOA fees in exchange for a full-price offer.

You want your home to be memorable and inviting. Let the big corporations show you how it's done.

Source: RealtyTimes, Blanche Evans
http://realtytimes.com/consumeradvice/sellersadvice1/item/39051-20151009-use-corporate-sales-strategies-to-sell-your-home

Why You Shouldn't Hate Your Homeowners Association Dues

If you buy a house in a planned development, a subdivision or a gated community, you’ll likely have to join a homeowners association (HOA). Which means you’ll be faced with the prospect of paying annual dues, whether you like it or not. Condo owners often face these fees, too.

No one expects you to be happy about these payments, especially when they often come due right after the holidays. And it’s true that the dues can be spent for seemingly trivial events such as neighborhood parties, and that management fees for the associations can be steep.

The HOA can make and enforce rules such as what colors houses can be painted, what types and sizes of pets are approved, whether holiday decorations are allowed on properties — even what types of mailboxes are allowed. And it can enforce these rules with fines and threats of foreclosures.

These associations say their rules and methods are necessary to keep property values up and maintain or increase resale values of the homes in the community. You might question that. But the fact of the matter is that HOA dues also can benefit you greatly, in ways that you can see and in ways that you might never think about.

Visible benefits from your dues

In addition to enforcing some degree of uniformity in your housing or condo development, the best-known function of homeowners associations is taking care of the community’s common areas. That includes landscaping — mowing the grass, planting and pruning trees, and taking care of flowers, lakes and clubhouses.

HOAs also operate swimming pools, gyms, and other amenities open to residents. Most also schedule regular pest control in common areas, and some set up garbage and other services.

Seems like these are pretty useful benefits, right? And there’s more to come.

Not-so-visible benefits

You can understand easily how you benefit from landscaping and swimming pools and gyms and the rest. But one of the real advantages of paying HOA dues comes when the association uses them for insurance for the condo or housing development. Why does a housing or condo development need insurance? We’re glad you asked.

Property insurance

This protection covers residents for any physical damage that happens to the common areas — particularly those clubhouses and other amenities mentioned earlier. Much like standard homeowners insurance, this coverage will help when there is damage from fire, wind, hail, and other covered perils.

This is particularly important in condo developments, because it also protects the buildings that house the units from the perils mentioned above. It’s up to the condo owner, however, to protect the contents of the condo.

What if the housing or condo development didn’t have any or adequate property insurance? Then the HOA would level special assessments against all the home or condo owners. Depending on the nature of the damage, that could result in you paying far more than your dues to make the development whole again.

Liability insurance

This is one of the most important parts of an HOA insurance policy, because it protects residents of a development if someone gets injured on common property. An injury could result in HOA members being sued, and legal costs and any award in the case could run into the hundreds of thousands of dollars, possibly more.

Why is this your concern? Because, again, the HOA could levy special assessments to raise the money to pay for the case. And remember, you’d have no alternative but to pay the assessment — otherwise, your home could be in danger.

Directors and officers insurance

Again, if someone — say, another resident — sues the leaders of the HOA, you would face the wrath of the courts just as much as the directors and officers. And again, you could be subject to a special assessment.

Employee dishonesty insurance

This would replace your — and other residents’ — HOA dues in case an employee steals money from the association.

Give your dues their due, but …

The almost-bottom line: Your dues, especially the part of them that goes toward HOA insurance, protect you from the prospect of paying larger amounts. So the dues do perform a useful function.

But here’s the real bottom line: You shouldn’t have to pay any more than is necessary. That means you should take the initiative. Make sure the HOA is spending your money wisely. Is it soliciting bids for the landscaping business? Does it seek several quotes for the insurance coverage before committing to a provider?

In other words, don’t hate the fact that you have to pay HOA dues. But don’t let your association get away with wasting that money, either. Your dues perform an important function that could save you money in the long run.

Source: Zillow Blog, Shannon Ireland
http://www.zillow.com/blog/dont-hate-hoa-dues-184748/