Navy Fellas Realty Group

Real Estate, Residential sales and purchase

A Bidding War Is Taking Place Among Homebuyers

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A Bidding War Is Taking Place Among HomebuyersWhile businesses have fallen on hard times during the past few months, there are signs that the economy is going to start to recover quickly. This could mean that homebuyers are entering the market again as well.

With summer being a historically hot time for homebuyers all over the country, there are a lot of experts saying that buyers need to get ready for a bidding war.

There are not a lot of homes on the market right now, as sellers are still a bit reluctant to put their homes back on the market with the economy just starting its recovery process.

The end result is that there is a disconnect between supply and demand. This imbalance is causing home prices to climb upward as homebuyers get into a bidding war.

Homebuyers Might Be Surprised

Many homebuyers are surprised that prices are actually rising instead of falling. When the last recession hit, home prices actually fell significantly. This is because mortgage defaults were the cause of the last recession, which is why home prices fell so dramatically.

The cause of this economic downturn is different. Due to a limited supply of homes, this is leading to more competition among homebuyers. This leads to more competition, handfuls of offers for a single home, and a bidding war. In order to find the right home, there are a few tips that homebuyers need to keep in mind.

Put Forth A More Competitive Offer

Those who are looking for a home right now need to place themselves in a position to compete against multiple offers from other homebuyers. Some of the most important tips to follow include:

  • Hire a local expert who understands the state of the market right now who can help homebuyers find the right home. Right now, the real estate market is not normal. It takes an expert to understand the ins and outs of buying a home in this market.
  • Get pre-approved from the market to make sure the offer looks serious to the seller. Those who get pre-approved from a lender will demonstrate a strong desire to buy, pushing their offer to the top.

There are ways to put forth a competitive offer even in this challenging real estate market.

What’s Ahead For Mortgage Rates This Week – August 10, 2020

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What's Ahead For Mortgage Rates This Week - August 10, 2020Economic readings released last week included construction spending, public and private-sector job growth, and government reports on initial and continuing jobless claims. Freddie Mac also released its weekly report on average mortgage rates.

Construction Spending Falls in June

Commerce Department reporting for June showed lower construction spending for the fourth consecutive month, but spending fell by -0.70 percent as compared to May’s negative reading of -1.70 percent. June’s construction spending was $1.36 million at a seasonally adjusted annual rate.

Residential construction spending fell by 1.50 percent in June as public construction spending fell by -0.70 percent. Analysts said that construction spending has held up relatively well in the pandemic as spending was up 0.10 percent year-over-year in June.

Public and Private Sector Jobs Growth Slows Sharply in July

ADP reported 167,000 private-sector jobs added in July as compared to 4.31 million jobs added in June. A resurgence in coronavirus cases contributed to the downturn, as consumers, employers and workers remained cautious and followed state and local guidelines for minimizing exposure to the Covid-19 virus. The leisure and hospitality sector led the falling private-sector jobs growth rate by adding 38,000 jobs in July as compared to approximately two million jobs in June.

The government’s Non-farm Payrolls report posted 1,76 million public and private sector jobs added in July, which surpassed the expected reading of 1.68 million jobs added but fell short of June’s reading of 4.79 million public and private sector jobs added.

The national unemployment rate decreased to 10.20 percent in July and was lower than June’s reading of 11.06 percent and the expected reading of 10.60 percent. While higher than pre-pandemic unemployment rates, July’s lower reading was good news amid overall economic hardship.

Mortgage Rates Reach Another Record Low;  Unemployment Claims Mixed

Freddie Mac reported another week of record-low mortgage rates. The rate for 30-year fixed-rate mortgages averaged 11 basis points lower at 2.88 percent. Rates for 15-year fixed-rate mortgages averaged 2.44 percent and were seven basis points lower; rates for 5/1 adjustable rate mortgages averaged four basis points lower at 2.90 percent. Discount points averaged 0.80 percent for fixed-rate mortgages and 0.40 percent for 5/1 adjustable rate mortgages.

Initial state jobless claims fell to 1.19 million from the prior week’s reading of 1.44 million first-time jobless claims filed. Continuing state jobless claims were also lower than for the prior week with 16.10 million claims filed; 17.00 million ongoing jobless claims were filed the prior week.

What’s Ahead

This week’s scheduled economic reporting includes readings on inflation, retail sales, and consumer sentiment. Weekly reports on mortgage rates and new and continuing jobless claims will also be released.

3 Quick Painting Tips That Will Help Take Your Walls from Tacky to Tasteful

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3 Quick Painting Tips That Will Help Take Your Walls from Tacky to TastefulWhether you happen to be a painting pro or you’ve never dared to pick up a roller, there are a few tricks of the trade that professionals use to make a paint job look its best. If you want to take an old, outdated paint job and turn it into something you can be proud of, here are a few tips from those who know best.

Start With A Perfectly Smooth Surface

If you’re trying to rush through it, sanding might seem like an unnecessary step in re-covering your walls, but it’s very important in order to level out the spackle paste and ensure that no ridges will appear in the paint around the nails. According to one professional painter, you should start by sanding from the baseboard to the ceiling with a fine grit sandpaper, and then move on to a horizontal sand that will make for a smooth wall finish.

Forget About The Plastic

The proper floor coverage while painting is just as important as the paint when it comes to getting the job done properly, so opt for a large canvas cloth instead of linens or plastic. Paint on linen can sink through to your floor and stain it, while paint on plastic takes a long time to dry and may end up smearing all over other things. A canvas cloth will keep any paint splotches away from your floor and ensure they aren’t tracked throughout the home after they fall.

Stick To One Wall

It can be tempting to get done the rudimentary step of completing the corners and trim before you move on to painting, but this can actually make for a less smooth finish. Instead of finishing one task at a time, complete the corners and trim on one wall and immediately reach for the roller. This is something professional painters do to ensure that the brushed and rolled paint will blend together more seamlessly.

There are a few simple steps you can follow when painting a room that will make it look like a professional did the job. By using a canvas cloth to cover your surfaces and sticking with one wall until the job is done, you should have a smooth new surface you can be proud of. If you’re currently painting your home and preparing to sell, you may want to contact one of our local real estate agents for information about your options on the market.

What Is The Impact Of COVID-19 On Home Value?

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What Is The Impact Of COVID-19 On Home Value?It is no secret that the COVID-19 pandemic has had an impact on everyone; however, there are a few impacts that are being overlooked. In addition to the public health crisis and the tanking of the stock market, there are also impacts of the virus on people’s home values.

Some of these impacts have been positive while others have been negative.

Regardless, it is important for everyone to understand how these impacts might impact someone’s home value, particularly for those who are looking to buy or sell a home in the future.

The Dropping Rates Of Mortgages

Because of the shelter in place laws surrounding the COVID-19 pandemic, not many people are looking to move right now. As a result, banks have had a hard time getting people to come in and sign up for loans. 

This means that many people who are looking to buy a home might be able to sign up for a loan at a very low cost. This might open the door for someone to buy a bigger home than they might have been able to during less turbulent times.

The Impact On Sellers

As a result of the low-interest rates from the COVID-19 pandemic, this also means that sellers should anticipate getting a large number of offers for their homes. There are still many people who are hesitant to sell a home in this environment. This means that there might not be many options on the market. For those who decide to take the plunge, they might be rewarded with more offers than usual. This is going to drive up the value of their home, which is good for their next purchase.

The Future Of The Market During The Pandemic

These are just two of the many ways that the COVID-19 pandemic has impacted the value of homes. While it is unclear when this pandemic is going to be behind us, it is important for everyone to understand how the pandemic is going to impact them if they are looking to buy or sell a home. This will help everyone make the right decision during a turbulent time.

The 5-Minute Guide To Flood Insurance: What It Is, How It Works, And Whether You Need It

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The 5-Minute Guide to Flood Insurance: What It Is, How It Works, and Whether You Need ItYou’ve got house insurance, and assume your property is covered for any type of detrimental occurrence that can possibly take place.

However, not all homeowners are aware that home insurance policies don’t necessarily cover damage related to a flood, as the risks are too great. As a result, homeowners must purchase flood insurance through a private company.

Floods are one of the most common hazards in the US, costing billions of dollars in damage to properties every year.

Since this is a common issue lately, the federal government updating these policies currently so please talk with your real estate professional or local insurance company for the most up to date information.

What Is Flood Insurance?

Flood insurance policies are typically made available to homeowners in flood-prone areas. The majority of insurance policies cover some form of water damage, from things like leaking faucets to bursting plumbing pipes.

However, such policies don’t cover water damage as a result of flooding of rivers or sewers that cause water to ruin a home.

Specific flood protection is provided by the National Flood Insurance Program (NFIP), which is run by the Federal Emergency Management Agency (FEMA). Standard flood insurance policies cover “direct physical damage” to a property resulting from floods.

A separate policy must be purchased to protect the belongings inside the home or building. Homeowners can buy up to $250,000 in coverage for the home, and up to $100,000 in coverage for possessions. Even renters are permitted to purchase flood insurance to cover their possessions.

How Does Flood Insurance Work?

Flood insurance isn’t sold by FEMA directly, but rather is sold to customers through private insurance agencies. Premium rates are determined by the government, and they remain consistent from one insurer to the next.

How much a homeowner pays for their own specific flood insurance depends on a number of factors, including how prone the neighborhood is to floods and how much coverage a homeowner wants. The average annual premium is approximately $520 for $100,000 worth of coverage for a property with no basement, and approximately $615 annually for a property with a basement.

Filing A Flood Insurance Claim

The claims process is like any other insurance claim. Once the claim is filed, the damage will be analyzed by an adjustor assigned by the insurance company. A “proof of loss” form will need to filled out and submitted to the insurer within 60 days of the flood occurrence.

Do You Need Flood Insurance?

It’s necessary to find out if you are eligible for flood insurance before buying it. For residents of a community to be eligible, the community needs to enforce floodplain statutes to lessen the chances of flood damage, after which FEMA ensures that such regulations are followed.

Only those who reside in a community that participates in NFIP can buy insurance – today, about 20,000 communities across the country participate in this program.

FEMA offers maps that outline what areas are at high risk for floods, and those that are at moderate-to-low risk. The law requires homeowners to have flood insurance if the properties are located in a high-risk zone and have a federally-backed mortgage. This is because properties located in these high-risk areas have a 26 percent chance of suffering flood damage during the 30 years that it would take to pay off a mortgage.

Homeowners are not required to buy flood insurance if they reside in a moderate-to-low-risk zone, though it may be a good idea to purchase it anyway. Properties outside the high-risk areas make up over 20 percent of NFIP claims. Homeowners in these areas can purchase up to $200,000 in flood insurance.

The bottom line is, even if you don’t necessarily live in a high-risk zone, this doesn’t mean your home won’t ever get flooded. Many conditions can result in flood damage, including clogged drain systems, flash rainstorms, and damaged levees.

Condo Damage Caused By Contractors Hired By The HOA: Who Pays?

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Condo Damage Caused By Contractors Hired By The HOA: Who Pays?For those who live in a condo, they know that there are numerous advantages that come with this living arrangement. Living in a condo means that other people are going to be responsible for landscaping and common areas while homeowners are still able to build equity in the home.

At the same time, the HOA has quite a bit of power and one of the biggest concerns that people might have involves who pays for the damage in the event that something in the building has been damaged. There are a few important points to keep in mind.

Roof Replacement Contractors

Sometimes, the HOA might hire contractors to work on the roof. During this process, there might be a leak that develops in the roof. This could leak through and damage condos that are on the top floor of the building. This could damage the kitchen ceiling. The association might try to get out of paying to fix certain damages.

It is important to note that those who live in a condo building buy into everything that goes along with ownership. This includes the management and the contractors that are hired by the manager.

Read The Document Carefully

When people move into a condo building, there are certain bylaws they agree to follow. Sometimes, this packet might state that the unit owner is responsible for any damage to a unit that is caused by the association. The bylaws usually state something along the lines of “unit owners need to have homeowner’s insurance.” In this case, the insurance carrier should help the unit owner cover some of the costs of the repairs.

If the condo docs are drafted in this manner, then the unit owner is responsible for the repairs even though the contractor caused the damage.

File An Insurance Claim

While this might not sound like a perfect solution, the unit owner might still not have to pay for the damages. This is why unit owners need to have home insurance. The next step should be to file a claim with the home insurance company. This claim might be able to cover the cost of the repairs that were caused by the contractors hired by the HOA.