Real Estate Blog

It’s been 25 years since my first experience as a home buyer. We were thrilled to find a house that was in our price range, met our family needs and was in a desirable neighborhood. My recollection of that purchase may be somewhat rose-colored, but the biggest concern I remember having was whether the owner was going to accept our offer, and if we had any competition. As it turned out, both of those were non-issues.

Jettison to today’s home buying situation. My newlywed daughter and her husband are living in the home he has owned for several years prior to their marriage. Recently they began looking at larger homes outside the city limits with a few acres of land. I got a call from her after they made an offer on a house, in which she expressed her anxiety over the whole process.

A little second guessing on her part: Was their offer too low? Was she really in “love” with the house? Should they have looked longer? Although her husband has jumped through these hoops before, for all intents and purposes she is a “first-time” buyer. And I believe she’s experiencing the angst that seems to be typical of “first-timers” in this particular housing market.

Based on my readings, my advice to her and to others stepping out in faith to become homeowners is that long before you actually step inside of your potential “dream home,” you’ve got to do your homework.

Reflect upon these questions:

• Should I become a home owner? Your investment is not only financial, but time-consuming and labor-intensive. If you’re a renter, you’ll no longer have a landlord to rely on for repairs and outdoor maintenance. On the flip side, a home can provide stability for a family and an investment in the future.
• How much house can I afford? Sitting down and determining your monthly budget - including outstanding debt - should give you an idea of how much of your income you’ll have available to pay toward a mortgage.
• How do I begin a home search? It’s been reported that nearly 80 percent of potential home buyers begin their search on the Internet. There are a throng of listings that can be found online. Not only can you see photos of the exterior of a home, often there are multiple shots of the interior. Some even offer virtual tours. This is an unobtrusive way to filter through the market and narrow down the possibilities.

What’s next after selecting a few properties to view? Contact a reputable real estate agent. Don’t know any? An excellent resource is Connect2Agent. It offers buyers (and sellers) a selection of real estate agents, enabling you to select an agent who will best meet your needs.

Of course, any agent would be glad to work with a buyer who comes to them with all of their particular home needs and wants, location and a rough estimate of how much they feel they can afford. However, don’t you want to work with someone who is genuinely looking out for your best interests? Make sure you know who’s representing you.

What are the steps of financing a home? Your local housing market may determine how much of a downpayment will be necessary. Regardless of that requirement, your agent will undoubtedly encourage you to seek pre-approval from a lender. This means your lender is willing to extend a loan to you after verification of your income, assets and debt.

Once your mind is set on purchasing, allow your real estate agent to do his/her job. They know the local market well, have listened to your particular house desires and can arrange to show you your selections. Once you’ve narrowed your choices to one or two homes, take a second look. Don’t be afraid to open closets, look under sinks and behind the furnace. Remember: These spaces potentially could be yours. You want to make sure they’re adequate and problem-free.

Buying a home can be an exhilarating and traumatic experience. Doing your best to be prepared for the process can help take some of the anxiety out of the journey and leave you with the satisfaction that your new home is everything you wanted and can afford.

Posted by Sharon Walker

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If you think running for public office is daunting, try being a first-time home buyer!

Have you been through a real estate transaction where you just scratched your head and wondered why it couldn’t have gone a little easier? Do you read the real estate news or have discussions about housing and wish you could read a broader viewpoint?

You are not alone.

Amber Belbeck, homeowner and Office Administrative Assistant with Connect2Agent, wrote me today. During the weekend, one of our office meetings and her own real estate experiences gave her pause and she put pen to paper. Amber was gracious enough to allow me to share her thoughts on this blog.

Following is Amber’s letter to real estate agents.

Dear Real Estate Agents,

Don’t overwhelm your buyers by following their structure - take the reins and take them to the closing table faster!

Buyers generally have their desires in a home outlined and structured before they even start to contact a real estate agent - especially first-time buyers! It is great that they know what they want and have everything ready to assist you in doing your job quickly and efficiently. But the majority of home closings do not adhere to the ‘quickly’ part of that idea. In fact with some home buyers, you could spend months hunting down a house to match the dream home they’ve drawn up for you.

Buyers tend to know what they want in a home, and thus close off their peripheral vision to any other aspect of the home buying process.

It’s time to knock off those blinders and be proactive in closing buyers - faster, sooner, quicker!

How, you say?

Invest 10 minutes in your client. Maybe it will be a quick 10 minutes and then you are off to lunch, or maybe 10 minutes will turn into 30. Either way, this time spent immediately will save you months of waiting on that closing.

Scenario:

A home buyer calls you and introduces themselves - yay! A lead! Then they immediately start in on their requirements (single-family, 3 bed/2.5 bath, media room with leather seating, etc).

STOP them! Close your ears and don’t hear a word of it. This is where your 10 minutes come into play.

Instead, let them know you definitely want to hear what they are looking for and desiring in a home, but first you’d like to find out a little about them to help you better understand what they will need in a home (and community - and schools - and special needs and interests).

It takes no more than 10 minutes of conversation and asking the right questions.

You get home buyers into a comfortable conversation and listen to what they are saying without saying a word. Listen for the dogs barking in the background (mental note: will need dog-friendly area; dog sounds big - will need a good-sized yard with ample room to run). “Oh! I hear a dog in there, what breed is that? I’m a dog lover myself!”

Let them gush about their interests, their new job and how they have heard traffic is a nightmare in the area. By remembering the simple (and often forgotten) art of listening, we find the things that will be of concern to the buyer without them even yet realizing it will be a concern for them.

That’s it - it is that simple.

Listen to your buyers and let them close themselves for you - by giving you the keys to their perfect home.

Thanks for your time,

Amber Belbeck, a concerned homeowner for future homeowners 

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Are you a homeowner who needs to sell your house right now? Here are a few resources and alternative options I’ve previously blogged about to help you navigate tricky waters.

A convenience store lifestyle is what a home buyer wants … dig? - Explains the importance of listening to feedback from your real estate agent. 

Selling a house? Home staging dresses your house for success - Discusses the importance of staging a house to get it in the best, show-ready shape to compete aggressively against other houses for sale.

Success of short sales begin and end with a real estate agent’s expertise - Why it’s critical to work with a real estate agent who has training/experience in selling short sales if your house has to be sold on a short sale.

Stress busters for real estate sellers - Tongue-in-cheek advice for sellers. A good read to help keep the right perspective when selling your house.

Your real estate listing needs to be everybody’s business - Why it’s important for your house to be marketed everywhere possible.

Do you have real estate advice for home sellers to help them navigate tricky waters? Please share your advice by commenting below.

Posted by Rebecca D. Levinson

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Navigating tricky waters for real estate sellers

The housing market’s problems have seeped into many homeowners’ doors. Stories about foreclosure and mainstream America are abundant.

What about when mainstream America is a military family?

What happens to a military family’s income and ability to pay for normal bills like gas, food, electricity and a mortgage when their soldier ships out? What if their beloved soldier, in the line of duty, becomes a casualty of war? How does that family pay the mortgage?

There is help out there and I am gonna tell you how to find it.

There’s a volunteer-led nonprofit organization, Soldiers’ Angels, whose motto is, “May No Soldier Go Unloved”. It provides support and comfort for deployed soldiers and their families at home. I met Nevada State Coordinator Lizz Phillips, who was happy to dish on the details of the organization, at the BlogWorld & New Media Expo in September.

Phillips shared that sometimes soldiers don’t want to burden their families with requests. She also shared there are so many needs, and sometimes the need is just a kind word and a (distant) shoulder or ear, which makes all the difference. Other needs are more tangible - toiletries or financial aid for the families.

I asked Phillips if they help with housing needs. She stated that has been an increasing need and they do get calls from family members who need help with their mortgage payments. Phillips said not everyone realizes there is financial help available and the Soldiers’ Angels organization will work with the family to point them in the direction of the right resources for housing financial assistance.

There are 20 different teams and programs that offer assistance to soldiers and their families on the Soldiers’ Angels website. To contact them directly,

• Write: Soldiers’ Angels, 1792 E. Washington Blvd., Pasadena, CA 91104
• Call: Monday-Friday, 8-5 PST, (626) 529-5114
• Email: soldiersangels@gmail.com

Do you know of any housing resources for military families in need? Connect2Agent wants to hear from you. Please comment below.

Posted by Rebecca D. Levinson

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The Age of Empowerment Series (Lesson III)

Real estate has gone through many changes during the last 30 years. In “Back to the Future … a time travel through real estate”, Connect2Agent member Steve Osmar led a time travel voyage from handshakes to Internet-powered real estate deals. Osmar dished about real estate times past, when real estate systems were starting to evolve and documents for real estate resembled handshake-type deals.

Fast forward to the Internet-empowered consumer and the present. The iron curtain has been lifted and real estate information is flooding homes across America. Home buyers - 8 out of every 10 - are researching the heck out of listings, communities, schools and house values. They crave real estate knowlege and e-commerce is quick to dish it up.

What will the future hold for real estate? I spoke with Connect2Agent member Deborah Rubley, who sells real estate in Austin Texas, and she was willing to give a preview on the future of real estate.

Housing will be greener. A healthier environment and a smaller utility bill equals a win/win for homeowners. 

“If consumers spend less because of energy-saving appliances, they can save money to pay higher bills. … Many times a city has interest-free loans available that allow homeowners to upgrade their homes to green standards.”

Real estate agents will be better. A more educated and concerned agent equals a win/win for home sellers and home buyers.

“I am a certified real estate instructor and I have seen the attrition of real estate agents in Austin Texas. Many people are not being able to survive. It is costing a little more money to do business than it did the last few years where deals fell into laps. … I teach real estate agents that it doesn’t take much to be better than the next real estate agent. … I think we will see more dedicated, responsible agents that take care of their clients.” 

Mid-size brokerages may become extinct.

“Brokers are downsizing because the cost of overhead far exceeds their profit margins. We’ll see mom and pop brokerages and mega brokerages as the survivors.”

The Internet’s role in the real estate industry will increase.

“If real estate agents aren’t up with technology, they’re done; they’re toast. Pretty soon you’ll be able to walk through a home virtually.”

What’s your prediction? What does the future of real estate look like? Share your preview by commenting below.

Posted by Rebecca D. Levinson

Original post:
Agent preview: The future of real estate

If you’re buying a house because of a corporate relocation or military transfer, you can prevent fire-sale madness easily. Stop your whimsical real estate searches, drop your rush to eccentric housing and roll into a successful home purchase.

Stop and drop. Stop and think: What are your housing needs and what’s available in the real estate market? Will you be transferred within three to five years of buying a house? If you move again, will you have to sell your current house in order to buy a house in a new location?

If you answered yes to the last two questions, then drop any rush to buy eccentric housing. Drop a house with 100 steps leading to the front door or an exotic entertainment room. Drop a house that backs up to a busy street.

“I try to hold standards for all of my clients, relocating or not. I have a list of houses I advise them against - a house shouldn’t back up to a power line or a busy street (for example). … I had a client I was working with for three months who was a corporate transferee.

“I told my client the type of properties he should and shouldn’t look at, but he did end up purchasing a property that backed to nothing at the time. The property ended up backing to a busy road - four lanes. I listed the property in January of last year and it is still listed.” -Jean Bryant, real estate agent in Allen Texas.

Roll into properties that will hold a value. There isn’t a crystal ball to show you how much your house might appreciate over time. You can protect yourself by working with a real estate agent who is willing to do the research on the neighborhood, the subdivision and the house.

“Make sure to focus on the areas that have good resale value. Ignore high-inventory areas.  High inventory might be a reflection of value.” -Jack Dabney, real estate agent in Nashville Tennessee.

Relocating? Fire-sale safety is easy if you stop, drop and roll.

Posted by Rebecca D. Levinson

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Relocating? Fire-sale safety is easy if you stop, drop and roll

Our modern-day society has been living in the age of entitlement. At the speed of light is how we wish we could receive things. Super-sized is what we’ve grown accustomed to accepting.

Ambition isn’t wrong. It’s when we mistake mediocrity for prosperity that there’s a problem. It’s not always easy to see, but if you step back a bit and evaluate, you’ll know what I mean.

I’m guilty of mediocrity. ”I like to support local businesses,” I’ve said. “I really don’t like Super Wal-Mart,” I said when I first moved to Lake Geneva Wisconsin three years ago. Then I found myself shopping at Super Wal-Mart once or twice. Then a little more often - a few times a month. Now that I feel my budget shrinking around me, I am shopping there regularly.

I just can’t seem to find the dollars to justify the prices at my locally owned stores.

If I was extremely careful, stuck only to sales items and pared down on the groceries, I might be able to do it. Then I would be supporting local businesses, local employment and my community.

It will be a sacrifice, but it’s one I am trying to get my head into.

It’s not just shopping local vs. big business. It’s walking where I was driving. It’s turning down the thermostat and piling on layers of clothes and blankets.

The same back to basics recipe can be applied to homeownership. In some real estate markets, with the elimination of downpayment assistance and the pressure on the economy, repeat home buyers are sitting on the sidelines and first-time home buyers are having a hard time getting off the bench and into the playing field.

“The opportunities for first-time home buyers (in the Beavercreek Ohio real estate market) are less and people are being more conservative. It will take awhile,” informed Lynn Gilbert, real estate agent in Beavercreek Ohio.

Does this mean real estate will come to a standstill and homeownership dreams will be squelched? We only have to take a look back through history to assure ourselves that back to basics doesn’t have to eliminate home purchasing power.

“Real estate is constant. There’s always something new to learn. There’s always a new challenge, never a dull moment. … In 1981 to 1992 we found ways to sell property (in spite of the economy) - promissory notes and land sales. People’s lives don’t stop. We need to go back to the basics and remember that we all have the same elements,” Gilbert said confidently.

You don’t have to supersize to have a great lifestyle. Back to basics - it’s a time-tested method. An old beginning we need to revisit in a new era.

How have you begun to get back to basics? Connect2Agent wants to know - give us an earful by commenting below.

Posted by Rebecca D. Levinson

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Back to basics - An old beginning in a new era

There is good news outside your door. If you live in a climate accustomed to change, you are lucky enough to see the beauty of the seasons, green turning to yellow and red and twirling in its inevitable life cycle dance to the ground.

There’s good news outside your Internet door. While there’s no existing “good news” channel on television yet, you can actually type the words “good news” into your Google search bar and come up with some sources that choose to report positive news. So simple; who knew?

In this second lesson in the Age of Empowerment series, I’m going to share a few sources for good news. I hope that as life gets back to basics and you choose to reach out to feel good, this will be a helpful resource to do so.

My first and favorite is an audio story about relationships and trust. You can’t help but pause for thought when you hear it:

“Trust is about relationships”

Good News Daily - This is a free source of good news on the Internet. It has some pretty lighthearted and fun topics like “Chocolate is good for you — and other sweet myths“ to the heroic “Hero pulls woman from crushed car just as fire erupts”.

My favorite was their thought of the day, after reading the Dow Jones average dropped 678.91 points (-7.33 percent):

“We cannot solve problems with the same kind of thinking we used when we created them.” – Albert Einstein

Global Good News - This good news source has two noteworthy categories: Positive Trends and Success Stories. Some noteworthy titles include India clean technology attracts US Investors and Transformation of the Banking System: Dawn of real wealth. I would suggest sticking to these two categories. Don’t entertain the Flops category. That’s not the purpose of being on this website; you can get those types of stories by turning on your television.

Do you have some good news sources to share, an empowering video or audio? Connect2Agent is listening; please speak by commenting below.

Posted by Rebecca D. Levinson

The Age of Empowerment Series (Lesson II)

Is there money out there to buy a house anymore? Officially, downpayment assistance is gone, but here are a few resources and alternative options I’ve previously blogged about to help you get your compass pointed in the right direction.

Approval from your online peers can help pay the mortgage - Have you ever heard of social lending? It’s social networking for money. You name your cost and tell your story, and your peers get to decide if you’re loan-worthy. 

First-time home buyers: there’s a $7500 tax credit in town - A bill signed this year allows new home buyers a $7500 tax credit for home purchases from April 9, 2008 to July 1, 2009.

Three alternative real estate transactions for buyers - REOs (real estate owned), lease to purchase and short sales are three alternatives to a resale or new construction transaction. If you are open, these three alternatives could give you a good return on your money.

How to find first-time home buyer programs - This post is a how-to on searching the Internet or looking for a real estate agent who specializes in first-time home buyer programs. It includes resources and checklists.

All a renter wants to know is, “Can I really get a mortgage?” - I posed the question and some mortgage professionals stepped up and answered. Make sure to check out the comments on this post.

Do you have some home buying advice that helped you? Don’t keep it a secret; share by commenting below.

Posted by Rebecca D. Levinson

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Through the negative mire that clogs the RSS feeds fighting for your attention, my posts will vye for your attention to serve as a distraction. You don’t have to look far to know what’s going on in the economy. You don’t have look far to feel the seeds of fear being planted and the hungry vines trying to spread their tentacles into every soundbite in the media.

I am asking you to commit to a pre-New Year’s resolution. Please repeat after me: “I will remain laser-focused on the positive.”

I understand what it can be like to feel the dream of homeownership quickly slip away. You can come back. I understand what it is like to feel priced out of the market. You can come back.

I understand that if you don’t make this pre-New Year’s resolution, you will find yourself in a world of hurt far greater than any economic cycle will thrust on you. If you allow fear to seep through every corner of your fiber, you set yourself up for full-on panic mode and disable the capability to move on and move forward.

You will become your own worst enemy.

Again, I repeat, “I will remain laser-focused on the positive.” This doesn’t mean I have to bury my head in the sand. It does mean that in the end, I am responsible for creating my own welfare and happiness. I rise or fall based on my ability to navigate my life. I am the creator of my destiny.

I am making this pledge today. I hope you can join me.

Posted by Rebecca D. Levinson

Think about it: Why is it that before the bailout passed, traditional media reported that if the bill wasn’t passed it would have devastating consequences? Why is it that now after the bill has passed, traditional media has increased the doom and gloom predictions?

Source:

Are you having a hard time pulling the trigger finger on the house of your dreams? You’re not alone. Many home buyers are looking, waiting … looking, drooling … looking, longing … looking and wanting to buy a house. Why don’t more make a move, when it’s a fact that in many real estate markets throughout the country, prices are off their inflated highs and more affordable than in the high-demand year of 2005?

Fear turns the dream of homeownership into the perceived nightmare of high risk. In most cases, fear is the number one culprit in letting go of your housing dreams: Fear of the current state of finances in the country. Fear of Wall Street worries. Fear of employment security. Fear of buying at the wrong time.

“There’s a little bit of fear (in the real estate market). It is always hardest to react when you’re afraid. All the money to be made is when you go against the trend. This is when you want to buy,” advises Dick Price, real estate agent in Boise Idaho.

How do you get from wish list to shopping cart? How do you buy a house in a real estate market fueled by fear?

It will take a little courage these days to buck up and buy your dream house. It will take a little courage these days to move from the wish list to the shopping cart. It will take a little courage these days to shut out the noise of worry and negativity and follow your own path.

You can move from trepidation into vision and vision into action. The first key is to realize your intention. Write it down. Verbalize it. Visualize it.

Next, gain knowledge. Get at least three referrals for a mortgage broker from your local real estate agent and from trusted friends or co-workers who have made a recent move. Visit a mortgage broker and get pre-approved. Then sit down with your pre-approval and work out what the numbers mean to you so you don’t end up overextending yourself.

“Don’t listen to your lender when he says you can qualify for ‘X’ amount per month. Listen to your own common sense,” Price advises.

Can you still buy groceries, pay your utility bills and maintain your desired lifestyle without a big drain on your finances?

After you have sussed out your finances, explore your local market with real estate agents who have done their homework. You cannot look nationally to realize your local homeownership goals. You must speak to a real estate agent who has a pulse on local neighborhood values - for current and past markets.

Don’t settle for less than someone who does their due diligence and housing homework.

Realize that it will be difficult for you to time the real estate market just right.

“For a buyer right now, inventory is higher and in Boise Idaho, current real estate prices are at 2004 price per square footage, obviously better than when prices were run up in 2005. … As to when the market will be at its true bottom, my crystal ball stopped working two years ago,” Price said.

Did you make a real estate move recently? What made you decide to take your dream house from the wish list to the shopping basket? Please share your story by commenting below.

Posted by Rebecca D. Levinson

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From wish list to shopping cart: How to buy a house in a real estate market fueled by fear

Say no to blame game playas.

You might have time to say that three times fast as you sit on hold, waiting for the customer service department of any major wireless carrier or utility service.

It is a running joke with my friends and family that it is a part-time job to question your bills or service these days. My latest experience is a glass of customer disservice on the rocks with a twist of lemonade.

Try it - here’s my glass.

I received a bill from my cell phone carrier. It stated I owed three times my monthly amount. I scanned the bill to see that they were charging me for three family plans. I have two cell phone lines that share one family plan and unlimited text messaging. I don’t even own three cell phones.

How could this be?

The first time I tried to call to straighten out my bill was after 5 pm. Big Mistake. I was put on hold for 1 1/2 hours, only to be hung up on. Lucky for me, I have a speaker phone. I was able to cook and eat dinner, discuss the day with my family, clean the dishes, check my email and get the kids in a bath before I was hung up on.

I tried again two days later, at 8 am. After telling three ” account specialists” in three different departments my request, I was connected to a man named Bill.

Bill did not transfer me. He corrected my bill, apologized for his company’s errors and reviewed my account to see if I was in the best package according to usage and price. This man was the cell phone God in my eyes, and I fell over myself on the phone telling him so.

After I showered Bill with compliments and accolades, I said to him “I am sorry if you took more time with me than you were allotted. I hope you don’t get in trouble for helping me for too long.” He simply said to me, “This is my job and that’s what I am here to do. The conversation doesn’t end with my customers until we can resolve the problem. Period.”

This man didn’t have to claim responsibility for his company’s errors. Heck, most times when I call to try and resolve something with customer service, the first thing they do is try to find a way to blame me. When that is unsuccessful, they try to find a way to blame someone else in their company. All that does is infuriate me as a consumer, and I try to find a way toward the exit door.

I can’t change my utility companies. They are the only ones that service my area. I can’t change my cell phone carrier. I upgraded my service and had to sign on for another two-year contract.

If I am a real estate buyer or seller, once my initial listing/buyer agreement expires, I don’t have to return if I am unhappy with your service.

• If you keep me on hold by not returning my calls or emails, I will not turn from prospect into customer.
• If you blame the attorney, home inspector, title company or mortgage broker rather than finding a solution to my problems, I will not use you again.
• If you blame the market for my inactivity, or if you blame me that I listed my house too high without having warned me from the get-go, I will not return.
• If you are not honest about your experience with my specific real estate needs and you try to service me beyond your abilities, I will not refer you to my friends and family.

Blame game playas - take accountability for your services, even in the most uncomfortable of situations. Even if it wasn’t initially “your fault.”

Consumers - Say no to blame game playas. Walk away and find an alternative - they aren’t worth your time or your money.

Posted by Rebecca D. Levinson

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Say no to blame game playas

The 2008 Atlantic hurricane season is expected to continue through November. As we have already witnessed with Gustav and Ike, a hurricane doesn’t have to rank the highest (category 4/5) to have a crushing impact.

You can’t stop the beasts from rearing their heads, but you can cushion yourself from the blow. In “Swiss Re Says Ike, Gustav to Cost It Net $300 Million (Update1)”, Warren Giles of Bloomberg informs, “Net claims from Ike will probably amount to $250 million (for Swiss Reinsurance Co.) and Gustav will cost it additional $50 million, the Zurich-based company said today in an e-mailed statement.”

Got disaster insurance? Check your policy today and make sure your coverage is sufficient. I want to revisit a post I wrote last November, “Homeowners: Do you have enough homeowner’s insurance coverage?” Read on and if you aren’t convinced to do a checkup on your insurance policy, please comment at the bottom of this post.

If you own a house in an area prone to natural disasters, how can you make sure you have enough homeowner’s insurance coverage?

I recently watched a video, “Home Insurance 9-1-1″, that provides a harrowing picture of the insurance industry. The video was co-produced by Bloomberg and NOW, a weekly magazine from PBS. It relays stories of homeowners who have suffered through wildfires, earthquakes and hurricanes, and lost their houses in the process.

One family in the video lost their house to a wildfire in Southern California. This family thought they had full replacement coverage that would guarantee the costs to rebuild their house. When they submitted a claim from their contractor, the insurance company did not pay the full estimate. They had to get a loan for $280,000 to cover the costs needed to rebuild their house.

Another family lost their house in an earthquake. This family was not aware that their insurance policy contained a replacement clause that did not fully cover the cost related to damage/replacement in the event of an earthquake.

The total bid to replace their house came in at $589,000. The insurance company offered $305,000, leaving this family a difference of $284,000 in total out-of-pocket expenses. They were still in mediation with the insurance company at the time the video aired, and had been for six months.

Most of the other families interviewed in the video suffered extensive damage or loss to their houses. In a room of approximately 30 homeowners, only two had received claim money from their insurance companies that covered the full cost to rebuild their houses.

The families who were interviewed strongly suggested that homeowners take the following precautions to protect themselves against being underinsured:

• Read your insurance policy: If you receive any changes or adjustments to your policy in the mail, make sure to review them thoroughly. Ask your insurance agent for specifics if you are unclear.
• Review changes in your policy: Some insurance companies change policies with terms that may be misleading. If your full replacement coverage is reworded to read “extended replacement,” there may be additional disclaimers or stipulations that can reduce the amount of money you are entitled to claim in the event of loss or destruction to your house.
• Take out sufficient coverage: Go to a contractor and find out how much it costs to buy a house. Insist on purchasing a policy for that amount. Do not leave yourself underinsured.
• Maintain extensive records: Many of the homeowners in the video had to provide extensive records of any maintenance or improvements that had been done to their houses, as well as receipts as proof for their belongings. Some of the insurance companies wanted photos and videos also.

Share your insurance stories

Have you had to make a claim with an insurance company because of damage to your house? Do you have any advice that you can share about your claim process? I invite you to share by commenting below.

Posted by Rebecca D. Levinson

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Got disaster insurance? Check your policy today

Do you have debt you need to pay off because of home improvements? Do you need cash to pay for home repairs or house bills? There is an online practice called person-to-person lending or social lending, in which you can seek funding from individuals online and bypass the banks.

Approval from your online peers in a social lending network can help pay the mortgage.

Prosper is a social lending network. It lets consumers find individuals who are looking to lend money. To get a personal loan, you first need to complete a free registration form to become a member of the website. After you register, you’ll receive an email verification.

Click on the link provided in the email and it will activate your membership.

The next step is to verify your driver’s license number and Social Security number to prove your identity. You will also need to provide your checking account information so the funds can be electronically deposited when your loan has been approved.

The last step is to create a loan listing for lenders to bid on. Prosper provides a video tutorial on creating a good listing. The folks at Prosper emphasize that a good listing tells a story. Your story needs to explain how much of a loan you need and just as importantly, the reason why you need it.

A good listing includes photos and a budget that lists your monthly expenditures.

Prosper isn’t a great place for people with less-than-average credit scores (below 640) because of the perceived risk involved in lending to folks with lower credit. If your credit is less than average, you might want to consider credit counseling through a nonprofit organization before you put a loan listing on Prosper.

Have you been approved for a loan from your online peers? If you have used Prosper or another social lending site, I’d like to know about your loan experience. Please share by commenting below.

Posted by Rebecca D. Levinson

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Approval from your online peers can help pay the mortgage