Palm Springs Real Estate Podcast with Will Cook Will Cook

There are a number of things that could prompt your insurance company to drop your coverage. Today, I’ll be going over four common reasons this can happen. Buying a home? Click here to perform a full home search Selling a home? Click here for a FREE Home Price Evaluation Homeowners usually see their payments to the home insurance company as a necessary evil. The coverage they offer protects your home, your belongings, and your investment. Still, shelling out thousands to an insurance company can hit your wallet hard. It may seem like a large financial burden, but did you know that an insurance company can choose to drop you altogether? Violating the terms of your agreement, not paying your premiums, or committing fraud are all examples of how this can happen. But, your coverage can also be jeopardized for other reasons. If your insurer feels you or your home are too risky to cover, you could have a hard time finding another company that will provide you with coverage. Today, I’d like to share four common reasons an insurance company will drop you: 1. You have an old roof. This might surprise you, but having an old roof can prompt your insurance company to ask you to replace it. If you don’t, they may drop your coverage. The average lifespan of a roof is 30 years. After that length of time, your roof will become more susceptible to issues like water damage. Since water damage is the most commonly submitted home insurance claim, insurance companies want to ensure your home is not at risk. Nevertheless, age alone won’t trigger a non-renewal. If your insurance company notices issues with your roof, you can expect a letter asking that you make repairs. Don’t use your insurance policy as a maintenance policy by filing claims that barely meet your deductible. 2. You have too many claims. This might sound unfair, but it happens. Insurance companies will most likely drop a policy if you file more than one claim in the same policy term. Insurance is based on averages. The average consumer files a claim every nine or 10 years. So if you file more than that, the insurance company won’t see you as profitable. Pay close attention to how often you file claims, especially if you bundle your insurance. 3. They don’t want to cover a specific area. This might happen if the insurance company is finding that too many claims are coming in from a certain area or state. If your area is prone to crime, flooding, or fires, the insurance company may decide to cease coverage. Thankfully, there are other ways to pursue coverage if this happens to you. You can always discuss your options with an independent broker. 4. They have an issue with your pets. Insurance companies may exclude certain pets from their policies. If your pet is exotic or considered high-risk, this may pose a problem for your coverage. With all of these things in mind, remember that there are steps you can take to stay in your insurance company’s good graces. Perform regular maintenance and make necessary repairs as soon as you become aware of them. Don’t use your insurance policy as a maintenance policy by filing claims that barely meet your deductible. Have money set aside for regular maintenance and repairs, and save your insurance for major issues. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon

There are four steps you can take in order to prepare your home to sell for top dollar. Buying a home? Click here to perform a full home search Selling a home? Click here for a FREE Home Price Evaluation Every seller wants to get as much money as possible for their home, but few know how to accomplish this. As it turns out, there are four steps you can take to prepare your home to sell for top dollar. 1. Do the ordinary updates. These updates include replacing rotten wood, taking care of a leaky roof, getting rid of mold, and remediating other water intrusion issues. It’s also a good idea to put a new coat of paint on the walls. Buyers tend to look over houses very carefully, so it’s important to check out every inch of your home and update what you can without breaking the bank. 2. Consider remodeling or updating your kitchen. If it looks dated, repaint the walls, install a new backsplash, and purchase new, energy-efficient appliances. If you’re going to repaint, consider using low VOC paint, as it has fewer harsh chemicals and is more eco-friendly. A great outdoor space can make or break a sale. 3. Improve your outdoor environment. A great outdoor space can make or break a sale, especially here in the greater Palm Springs area, where we enjoy so many months of incredible weather. Update your landscaping by installing drought-tolerant flowering plants or perhaps an outdoor seating area. For larger projects, you might want to consider creating a covered outdoor entertainment space, or possibly some hardscaping with pavers and a firepit. If your pool needs cleaning or resurfacing, go ahead and do that. Additionally, be sure to take advantage of any views that your property has. 4. Prioritize energy efficiency. More buyers today than ever are looking for energy-efficient installments. To take advantage of this, consider replacing your windows, buying Energy Star appliances, or installing LED canned lighting. These features are not only appealing to prospective buyers, but they can also lower your energy bills while you’re still living in the home. If you have any questions about this or other real estate topics, please feel free to give me a call or send a text or email. I’d be happy to answer them for you.

When the market favors sellers, it can be tempting to test your luck with your listing. Today, I’d like to go over what you should do instead. Buying a home? Click here to perform a full home search Selling a home? Click here for a FREE Home Price Evaluation When you start the process of selling your home, you have to make a shift in your perception. Think of home selling as a business. When you list your home, imagine you’re selling a product in a much larger market. You can ignore the market, but to do so would likely lead to a lot of regrets. There are a lot of risks associated with pricing your home incorrectly, one of them being that you could wind up with less money than if you priced your home appropriately to begin with. When the market is hot, it’s tempting to test it. But, buyers are smart. They have access to a much higher level of data these days. So, as they search for their next home, they make a lot of comparisons between different properties. Rather than testing the market, it’s important to price your home correctly from the start. Buyers won’t put an offer on an overpriced listing, and there are three reasons why: 1. They don’t want to offend the seller. It goes against human nature to offer significantly less than what is being asked. 2. They believe the seller knows the home is overpriced. This belief may be erroneous, but buyers tend to truly feel that if a seller wanted to strike a deal they would lower the price. 3. They assume the seller has already turned down low offers. They think, surely, someone must have already tested the price. In reality, the listing may not have seen any offers yet at all. It is entirely possible, in a seller's market, to get multiple offers on your home if you price it correctly, especially if you list it in a range where a lot of buyers can qualify and absorption rates are low When you list your home, imagine you’re selling a product in a much larger market. When pricing your home, make sure you listen to your Realtor about the current value of your home. Putting your home at or just below market value provides a compelling reason for buyers to submit offers. However, buyers will only be motivated to make an offer over asking price if they have good reason to do so. One common reason they might do this is if they’re competing with another buyer. Make sure you carefully review each offer you get once they start coming in. One offer may be a few thousand dollars higher than another, but there are other factors you should consider when deciding between multiple offers. The offer with the highest price may not be the right choice over another offer that is lower but has better terms or comes in cash.  When examining offers, pay attention to any possible contingencies. Above everything else, make sure you’re letting your Realtor guide you through pricing your home and selecting an offer. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon. .

What are the latest trends of the Palm Springs area market? I’ll fill you in on the numbers today. Buying a home? Click here to perform a full home search Selling a home? Click here for a FREE Home Price Evaluation Are you up-to-date about what’s going on in our local real estate market? As of February 1, the months-of-supply ratio was 4.9, which is a record-low ratio and is responsible for the continued trend of being in a seller’s market. The chart shown at 0:44 in the video shows that March is usually the high in this ratio, and we expect it not to exceed five months of supply for the entire year. This is a considerable improvement over the last three years, when it often went above six months for extended periods of time. This indicates that inventory should remain low and tight in 2018, making it a seller’s market in general, and putting upward pressure on pricing. The days on market remains low as well, at just 66 days. The inventory improvement compared to a year ago is found in all price brackets, but especially between $400,000 and $800,000. As we expect, the months-of-supply ratio increases at higher prices, but it doesn’t really start until prices get over $700,000, while inventory ratios for prices above $900,000 are better than a year ago—that segment of the market is still a buyer’s market. Our continued price appreciation and lower inventory point to a great time to consider selling your Greater Palm Springs area home. Inventory rose by 330 units in January for a total of 4,083 units listed by February 1. As the graph at 2:06 in the video indicates, for the last five years, January has shown an increase in inventory. With some January increases larger than others, the largest increase was in January of 2016, when it rose by 1,000 units. If inventory continues its historical pattern, we should see a peak sometime next month in the low 4,000s, then slowly declining. This continuing low supply of inventory should put upward pressure on pricing. Year-over-year changes in single-family or detached median home prices of the nine major cities remain very strong. Only LaQuinta has a lower median price than it did a year ago. The other eight cities are all higher. The attached, or condo, market continues to show marginal price increases. The two largest condo cities—Palm Springs and Palm Desert—show increase of 4.9% and 3% respectively. With the threat of inflation, interest rates have begun to climb, and most experts project a steady trend towards a 5%, 30-year fixed rate by the end of the year. Our continued price appreciation and lower inventory point to a great time to consider selling your Greater Palm Springs area home. If you’re a buyer who will be getting financing, there is some urgency to get into this market now before interest rates affect your purchasing power. If you have any questions about the value of your home or you’d like to explore purchasing a home in the Palm Springs area, then please feel free to reach out to us. We’d be happy to help you out.

The new tax reform will impact the real estate market in four key ways. These changes indicate that now might be the time to start the process if you’re thinking about selling in 2018. Buying a home? Click here to perform a full home search Selling a home? Click here for a FREE Home Price Evaluation I’ve gotten a lot of questions recently about how The Tax Cuts and Jobs Act will affect the real estate world. There are four key tax changes that will impact the housing market: 1. Deductions for property taxes. Prior to the new tax bill, if you itemized deductions on your federal return, you were able to deduct the entire property tax bill along with any state income taxes. Going forward, this total amount will be capped at $10,000. 2. Deductions for mortgage interest. The final tax bill reduces the limit on deductible mortgage debt to $750,000 for or new loans that were taken after December 14, 2017. Other loans of up to $1 million prior to that time are grandfathered in. 3. Exclusion for capital gains. Previously, if sold your home and turned a profit, then up to $500,000 of that profit was exempted from the capital gains tax if you were married and had lived in the home for two out of the last five years. There was some concern that this rule would be changed so that you had to live in the home for five out of the last eight years, but no change occurred. You still only need to live in the for home two out of the last five years in order to claim this exemption 4. The deduction of moving expenses. You used to be able to deduct your moving expenses if you moved for a job, but the final bill repealed this rule and modified it so that you can only deduct your moving expenses if you’re a member of the U.S. armed forces. The first two changes increase taxes on current homeowners who itemize. Therefore, they might make homeownership a little less attractive. This is why the NAR stated that we would see a 10% drop in prices in 2018. On the other hand, the last change makes it more expensive to sell your home. As a consequence, there may be more homes not coming on the market. If you’re thinking about selling your home in 2018, now might be the right time to start the process. We’ll have to see how things play out, but there seems to be a consensus among experts that these reforms might drive home prices down in the midterm. On the bright side, sellers still get to keep the capital gains exemption, which is a huge win for real estate. If you’re thinking about selling your home in 2018, now might be the right time to start the process. If you have any other questions about these changes or you need help buying or selling a home in our market, feel free to call or email me. I’d be glad to help you.

If you are preparing to buy a home in the new year, there are seven ways you can prepare. Buying a home? Click here to perform a full home search Selling a home? Click here for a FREE Home Price Evaluation Today, I’d like to share seven tips you’ll need to keep in mind to buy a home in 2018. 1. Check your credit score. Your credit score is basically a numerical representation of your credit report. FICO credit scores range from 300 and 850. Having good credit is like gold when it comes to getting a mortgage. Those with credit higher than 740 will get the most competitive rates. 2. Do not open new credit cards. Opening up new lines of credit could damage your score, which would be detrimental to your overall purchasing power. 3. Consider asking for financial gifts for the holidays. Instead of requesting a tangible item, asking for a monetary gift could help you make progress toward your down payment and closing costs. 4. Start shopping for a real estate agent. Ideally, you should find someone who is knowledgeable and has experience in your area. You want someone who will work in your best interest and will be loyal to you. 5. Watch interest rates. Keeping an eye on trends pertaining to interest rates can help you stay on top of what’s going on in the market. Be sure to pay attention to government actions that may have an impact on rates. 6. Find a good mortgage lender. Your Realtor should be able to provide you with a good recommendation for lenders. 7. Get a pre-approval letter. This will demonstrate to any seller that you not only have the desire, but also the ability to purchase a home. When a market is trending toward sellers, demonstrating your qualifications as a buyer is very important. Getting pre-approved will demonstrate to any seller that you not only have the desire, but also the ability to purchase a home. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.