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Home Heating Types....but I want AC

10/25/2015

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​Upcoming Free (& non-promotional) Home Buyer Classes: 
 
  Saturday November 7th , from 9am- 12pm (ish)
       Marshall Community Center, conference room
       1009 E. McLoughlin Blvd, Vancouver WA (kitty corner from Clark College) 

Tuesday night, November 10th , from 5pm-8pm (ish) 
       Marshall Community Center, conference room 
       1009 E. McLoughlin Blvd, Vancouver WA (kitty corner from Clark College)

Saturday November 14th , from 11am-2pm (ish)
       Vancouver YMCA
       11324 NE 51st Circle, Vancouver WA (SR 500 & 112th/Gher Road)

**please remember that in November & December we do limited classes because of the holidays.  If these class dates and/or times don't work for you, please let us know.  We understand that you have lives, and families, and work.  We will work something out that works better with your schedule.  Just let us know....                                                                                  
....we also have home seller classes available too...link on left on website
                  
Remember...with reservation...we will throw in lunch, or dinner!  :-D
~~~~~~~~~
                                                                    
Hey there!

    How is Halloween next weekend?  I don't even have a pumpkin yet?  The Indian Summer we have been having has extended the buyers summer, but that looks to be starting to change.  This is a positive for many buyers who have been waiting for the market to 'cool down' a bit before jumping in.  It just feels like we are careening to the holidays...I can't believe we are a week from NOVEMBER!!  Yikes..., and speaking of November....don't forget to turn your clocks back on November 1st.  :-)

   As a reminder, our WINTER CLIENT APPRECIATION event will be held on Saturday, December 19, 2015, for the Opening Weekend of STAR WARS: The force awakens.  The event will be held from 2:30pm-5:30pm, with seating to start at 2:45pm.  
Because this is expected to be a pretty big event, Chris Berg (Pinnacle Mortgage 503-320-0295,cberg@pcmloan.com), & I are also renting out the top living room portion for 21+....and yes, there will be tickets this time that we will have available for pick up at the Pinnacle Mortgage office with Chris.  We are taking reservations now, so please...if you plan on attending let us know how many tickets you need, and if you want the general sitting, or the 21+ living room.  We currently have 12 seats left in the 21+ area, but plenty (so far) for the general seating area.  We look forward to seeing you there!!  :-D

   Talking about the extended summer, we had a very warm one this year, didn't we?  I can't believe how many 90+ days we had, and we even broke records for 80+ & 70+ days too!  For those of us who have AC, it wasn't too bad, but for people without AC, it was pretty miserable.  This year, more than ever, I have had clients asking for homes with AC, and I don't blame them!!  However, in our area, we typically don't see such warm weather so a home with AC is not the norm like in other parts of the country.  Buyers who limit their options to only homes with AC really don't have that many homes to see, and right now, those are the homes with the most multiple offers.  So, what do you do if you don't want to drown in your own sweat again during the summer months....if we have another hot one?   Well, there are options... typically I save this email for later in the year as the weather is colder, but I think it will be good right now since it does address AC, heat efficiency, and what YOU, the buyer/homeowner, can do to help with that in your new home.  :-D

    You know I do have to put in the disclaimer...  that while I do know something of heating/cooling because of the homes I have helped people buy & sell, and the home inspections (all of them) that I have been at, I am not a heating technician though...so always bring your big questions to a trained heating technician.  If you need some help finding one, then let me know and I will be happy to help you get those answers....it is what I do!  :-D

   So what types of heating are most commonly available?  What are you options?  What do you need to know?  Let's get started...

Forced Air...
   This is the most popular type of heat, but it does have pros/cons.  On a listing this is Forced air, and just because the home has forced air doesn't automatically mean it has air conditioning. 
PROS:  Efficient, and you can get a heat pump, or air conditioner unit  for heating and cooling.  Doesn't take up much space in the rooms (but don't cover your vents and be aware that it can dry out your christmas tree so keep that away from a vent).  
CONS:  There is only one temperature for the home, and that is the one that is set.  So if someone likes it warmer/cooler...too bad.  It is very dusty as your ducts are consistently blowing dust and dander around....and if anything gets dropped (or heaven forbid one of your animals pee) in the duct it does cause a problem.  
Maintenance:  With any heating system you must MAINTAIN IT!  One of the things you do need to maintain with a forced air heating system is the duct work.  You will want a company to company in every couple of years and clean out your ducts to help with the dust in the air.  If an animal does pee in it (don't laugh...it happened with one of my dogs) there are cures on the internet, but it takes some time and effort on your part, or you can hire out a company to help.  As a homeowner you can lift the vent cover up and vacuum it with your vacuum hose every so often to help with the dust issue.  I have two members of my family with allergies and our forced air can be an issue with that.  Also you need to have your furnace serviced every two years to keep it up.  A couple of winters ago, our furnace blew its heating coils....over New Years weekend when the weather was in the 30's.  Service your furnace to 1) keep it running for optimum efficiency 2) so you aren't left freezing over a holiday weekend with 3 space heaters while you wait for people to get back to fix it.  You'll also want to keep an eye on the duct work under your home.  If an animal gets under your home they can tear one down to sleep on it, and this is not good.  Keep your duct work up and off the ground.
Types of forced air:  Gas, Electric, and Apollo.  Whether or like or hate Gas or Electric, it really doesn't make much different there.  I have an electric furnace/forced air unit because the smell of Gas ones is a migraine trigger, and yes, I know they 'don't' smell, but for some reason I can tell.  Weird....yes, I know, but I never pretended to be otherwise.  :-)  Apollo furnaces are something else though, and for a certain area of town about 80% of the homes have one.  An Apollo furnace works a lot like a radiator.  It heats (and/or cools) with water.  It is a forced air furnace that is located in the attic space, and yes that is a system in your attic space that is heating/cooling your home with water....in your attic space.  These aren't terrible systems...at all...but you need to maintain it, and if you have one make sure there is a drain pan and/or pipe that leads to the outside of your home...for obvious reasons.  Many folks who had a home with one has switched it out for an electric or gas furnace as the ductwork is all already there.  Cost of a new furnace runs about $2000 (+/- depending upon the size of the home.and when the ductwork is already there).  A lot of homes still have the Apollo forced air units in the attic space and they are fine.  Maintenance is key....
Air Conditioning:  Forced Air/furnaces are the easiest for AC.  If you have an electric furnace, for AC you would install a heat pump.  The heat pump actually acts as both heat & cooling, and is fairly efficient until the weather drops to (I think) about the low 40's.  Once the outside air gets to that 'special' temperature, the heat pump actually doesn't work at all and the homes auxiliary furnace kicks in to heat the home.  I can always tell when this happens at my home because I can smell the difference
If you have a gas furnace, then you would install a central air unit.  With gas furnaces, the furnace does all the heating, and the central air unit does all of the cooling.  

Wall heaters (aka Cadets)
  These are not bad heaters, and many people prefer them due to allergy reasons.  They are also efficient and are 2nd most popular in my experience...and it is close 2nd.  On a listing this is listed as Wall, or Zonal.  
PROS:  If you are not using a room you can shut the door, and not have to heat the room.  Each room can have different temperatures depending upon the occupants preference.  Good choice for allergies as less dust/dander is being blown around.  Inexpensive and easy to replace, and maintain. 
CONS:  Window air conditioning unit for cooling will be needed.  Most people complain about the 'smell' . when these are turned on (see Maintenance for why and how to prevent this).  Bed rep due to the recalled cadet heaters.  If you are buying a home with cadet wall heaters one of the first things your inspector will do is to look at the heaters to see if they were the recalled ones.  If they are it is a cheap fix as the Cadet Company is located in Fruit Valley area.
Maintenance:  One of the biggest complaints about these is the smell when they are turned on....that and the 'brownish' marks around the heater vents that concerns people.  What the smell is, and usually the brownish 'burnt' looking vent covers are is the dust/dander around your home that gets on the coils and is burning off.  How you prevent this is to vacuum your wall heater with the vacuum hose whenever you vacuum.  Once a year, before the cold weather hits in the Fall/Winter time, unscrew the cap/vent of the wall heater and really vacuum it out and wipe off your vent cover.  I feel the need to remind you that the heaters should be turned OFF when you do both of these items, and make sure your heater vent cover is dry when you screw it back on.  :-)  This is the best thing you can do to take care of your wall heaters.  

Ceiling Heat
  This is probably the least efficient heating system, but still in a LOT of homes...especially 70's homes.  And yes, there are quite a few people who do like them.  :-)  In a listing this is listed as Ceiling, or Radiant.  
With ceiling heat there are coils in the ceiling.  What it actually does is heat objects in the room, and not the air itself, and there is no air flow.  With ALL types of heating ceiling fans are actually good for the home as they help to move the air and the heat around.  With ceiling heat it is almost a necessity as if you put a piece of furniture up against a wall (as we all do) it can create condensation behind that object and create mold looking stains on the wall.  You need air flow....ceiling fans are your friends as they will help to push the heat down, and to keep air moving in the home that can help prevent condensation behind your furniture.  This is kind of an outmoded type of heating really. If the coils go out there is only one company who can repair them.  Sometimes with ceiling heat you will see cracks in the ceiling but that is because someone cranked up the ceiling heat and the coils heated up and expanded too fast and cracked the ceiling.  
If the home you fall in love with has ceiling heat it doesn't mean that you automatically want to discount it.  There are a couple of easy fixes.  You can easily and cheaply put in wall heaters, and cut the lines to the ceiling heat.  You can leave the lines to the ceiling heat cut or hook them up to the wall heaters.  Cost for about 5 is about $1500-$2000...with labor.  Again....inexpensive, and by putting in the wall heaters vs the ceiling heat you are actually increasing the homes value.  Crazy, huh?  

Another option is to contact the Clark County PUD for a ductless heat pump.  Yep, a ductless heat pump.  It is a white thing/machine on the wall that heats and cools the home.  They are a little unattractive, but very efficient.  The Clark PUD will put them into your home for a low interest loan....and there was a rebate....don't quote me on that as I am not sure there is still one available.  
The other option for many people is to put in an forced air furnace, but this is costly as you also need to put in the duct work.  

Other Heating...
There are a lot of different kind of heating types, but the above are the most common in our area....and some a few others are....
Fireplaces
  This is a tough one as I don't know too many people who use this as their only heating source.  However, it is a form of heating so here you are.  Fireplaces are wonderful, but honestly open fireplaces are more for ambiance than actual heating.  If you want to actually use your fireplace as a heating source your best bet is to put in a fireplace insert....or a pellet stove.  Many people burn paper in their fireplace and I have to tell you....this is BAD!!!!  DON'T burn paper in your fireplace...it is NOT an incinerator.  That is the number 1 reason for creosote in in your chimney that causes fires.  DON'T burn your bills, or your boxes, or your christmas paper....etc...NO!  
We get a lot of rain here (I know...big shocker), so make sure that your chimney has a rain cap.  A lot of chimneys in our areas, especially with older homes, need some work.  With an fireplace insert a pipe is inserted in your chimney that takes care of any issues.  The only downside to using a fireplace is that it dries out the air, so you will want to use a humidifier, or like my grandma used to do, put a kettle or something on the insert with some water and potpourri, scented oil, etc and it will keep your home smelling yummy all winter.  :-)  
Baseboard
  Ok, I admit I have a bias against this type of heating because it takes up way too much space in a room for your furniture....and when my 19 year old son was little he would stick crayons down it.  Ugh....talk about the smell!!  You can remove these baseboards and put in the cadet wall heaters, or again....call Clark PUD for the ductless heat pump and leave the baseboards in, or remove them...it is up to you.  I would love to say something good about them....but for the life of me I can't.  :-)
Older coil wall heaters.....I once lived in a rental home with old, old wall heaters that had those visible huge coils that glowed red when heated up....yuck.  It actually caught fire!  Very occasionally I will still see a couple of these in homes.  Not very often, but sometimes...  I suggest that you might want to remove these old ones for the new cadet wall heaters.  
Old Red Coil ceiling heaters that you sometimes see in bathrooms.  These can be switched out pretty easily by a professional....

...and last, but not least....
Ductless Heat Pump 
(aka split system heating/cooling)...  I talked a little bit about these above.  They are very efficient, and can save money in your heating/cooling bills over almost all the other heating options out there.  I recently talked to one seller who had these installed in her home and her monthly bill dropped by 40%!  These are becoming more, and more common.  I used to see them only every so often, but now I am starting to see them quite frequently...especially in older homes that had ceiling heat, and even some homes that have/had wall cadet heaters.  The biggest con, but it doesn't really bother me, is that some people don't like the way it looks on the wall.  Call the Clark PUD and ask them for some more information. The Clark PUD was also offering a low interest loan to help homeowners have these installed.  That is a great deal!   I also have some pamphlets on these if you are interested.  Just let me know...
Pros:  Very energy efficient.  Air Conditioning!  These act like a heat pump in that they both heat & cool a home.  
Cons:  as noted above, for some people, they don't like the way the look.  My opinion is that if it is over 90+ degrees outside, and you have air conditioning....I don't think you will care.  LOL  

....and there you are!  Did I miss any??? :-D

               
      Information is power, and I hope that I am able to help you.  Good luck, and as always...May the odds be ever in your favor out there....  If you are looking for a real estate agent, I would love to be able to help you.                                                                       
 
    As always....this is just a quick overview.... please remember that your agent, and your lender work for YOU.  You drive the bus...we are merely GPS to help you get to your goals.  Like the classes, this weekly blog email is to help you with your home adventure.  The goal is to be informative and non-promotional.  :-)  We are, however, hoping you will call and want us to help with your adventure.  

If you have any questions about this, or something you have heard...or if you would like me to help you with your home adventure, please call, email,  text, or facebook me anytime.  I am, as always, happy to help!
 
Thank you again for your business and your referrals!!  ...and thank you for referring these classes to your friends, family, and co-workers. 
 
 .   ..disclaimer...if you have already purchased a home, or would no longer like to receive these emails, please let me know and I will be happy to remove you from any further mailings... 
 
 
Upcoming Topics:  Septic vs Sewer,  Buyers Due Diligence, & "When do I get KEYS?"

Last Week:   Home Inspection 101                                     
Have a great day, and I will talk to you soon,   
;-D   
Tracie DeMars   
Real Estate broker    
Re/Max - Van Mall   
360/ 903-3504 cell   
360/ 882-3600 fax   
www.traciedemars.com   
traciedemars@aol.com   
    
“Interested in free and non promotional home buyer classes?  Go to www.traciedemars.com  for local upcoming classes, or facebook: Tracie DeMars Real Estate for my home buyer education blog.  Classes are now available for home owners thinking about selling their home.  Links are on the left."

"Listen to the mustn'ts, child. Listen to the don'ts. Listen to the shouldn'ts, the impossibles, the won'ts. Listen to the never haves, then listen close to me... Anything can happen, child. Anything can be."    
   - Shel Silverstein, American poet, cartoonist and composer, (1930 - 1999).

0 Comments

Home Inspections 101 (homebuyer education)

10/18/2015

0 Comments

 
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​Upcoming Free (& non-promotional) Home Buyer Classes: 
 
Saturday October 24th , from 12pm-3pm (ish)
       Vancouver YMCA
       11324 NE 51st Circle, Vancouver WA (SR 500 & 112th/Gher Road)

  Saturday November 7th , from 9am- 12pm (ish)
       Marshall Community Center, conference room
       1009 E. McLoughlin Blvd, Vancouver WA (kitty corner from Clark College) 

Tuesday night, November 10th , from 5pm-8pm (ish) 
       Marshall Community Center, conference room 
       1009 E. McLoughlin Blvd, Vancouver WA (kitty corner from Clark College)
 
If these class dates and/or times don't work for you, please let us know.  We understand that you have lives, and families, and work.  We will work something out that works better with your schedule.  Just let us know....                                                                                  
....we also have home seller classes available too...link on left on website
                  
Remember...with reservation...we will throw in lunch, or dinner!  :-D
~~~~~~~~~
                                                                    
Hey there!

    Yay for FALL!!  :-D  Now this...this is a beautiful day.  Raining, low clouds, crisp air, and colorful leaves.  Yep...I'm weird, but I am truly enjoying today.  I may not be saying that in a couple of months, but for right now...I'm ready for jeans, rain boots, and sweatshirts.  :-D  

   As most of you know we have the Winter Client Appreciation coming up, and we are finalizing all the plans for it as Disney has finally released the information for dates & times to the movie theaters this week.  Our WINTER CLIENT APPRECIATION event will be held on Saturday, December 19, 2015, for the Opening Weekend of STAR WARS: The force awakens.  The event will be held from 2:30pm-5:30pm, with seating to start at 2:45pm. 
Because this is expected to be a pretty big event, Chris Berg (Pinnacle Mortgage 503-320-0295, cberg@pcmloan.com), & I are also renting out the top living room portion for 21+....and yes, there will be tickets this time that we will have available for pick up at the Pinnacle Mortgage office with Chris.  We are taking reservations now, so please...if you plan on attending let us know how many tickets you need, and if you want the general sitting, or the 21+ living room.  We look forward to seeing you there!!  

 With all the rain right now, I think it is a good time to talk about home inspections.  :-)  Fall, winter, and spring are great times for home inspections because of all the rain.  When it is dry it is sometimes difficult to see how the home weathers our typical weather pattern of rain and wind.  

 Inspections are an extremely important part of the home buying process, and one that shouldn't be overlooked, or taken lightly. With inspections, you need to ask some important questions, as this is your chance to request repairs....or to back out with your earnest money refunded to you if the repairs needed are to extensive, or won't be done by the seller.
    This is always a very important subject as it is one of the most important parts of the home buying process. Again....I don't care if your home is 5 minutes old, or 150 years old....GET A HOME INSPECTION! Remember, it's not the home builder you are checking out, but the work done by the contractors they have hired. The city/county inspectors who come out do NOT check for the same thing a home inspector does. One more thing... you need to be there, and your agent needs to be there too....we can't help you if we aren't there with you. A buyer's agent is always here to assist, advise, and help you!

When hiring a home inspector some good questions to ask them are:
How long have you been licensed?
    Licensing for home inspectors in the State of Washington has only has only been required since September of 2009. Many inspectors were in business, unlicensed, before that. Some inspectors took the initiative and were licensed way before that. Your inspector should be bonded, insured, and carry E&O (errors and omissions) insurance.

How long will the inspection take? How much is it?
    The average home inspection should take between 2-3 hours. The average cost is about $350-$400...now to be honest, you can get an inspection for cheaper, but sometimes you get what you pay for. Make sure your inspector is inspecting what is important to you. Remember, as a buyer, the inspector works for you...not the buyers agent, the sellers agent, or the sellers. YOU, the buyer, are hiring this contractor to perform a service for you. Ask the inspector what their inspection entails, and what is included...or not.

What does your home inspection entail? What will you do?
    A home inspector should be walking and checking the roof. A roof must have 2+ year certificate for state or government grants/loans, VA loans, and FHA loans. A home inspector should be walking around the exterior and checking the siding, and looking at the housing vents for broken/missing screens. The home inspector will also be looking at vegetation around the home, and look at the water meter on the curb for current activity.
Inside the home, the inspector will crawl the crawlspace looking for leaks, groundwater, evidence or signs of current, or past animal activity, etc. The inspector should also be checking the atticspace for signs of current or past leakage and/or mold.
    The inspector will also be looking at all water faucets and toilets for leakage, drainage, and more. The inspector should also be checking all windows, electrical outlets and the main electric box for safety hazards, vents and heating units, and more.

Do you (the inspector) have a water reader?
    Some inspectors have a water reader that reads moisture 1 inch into a surface, be it wall or floor. These are wonderful for finding such things as leaking wax seals in toilets (very common), moisture in a wall around a window that hasn't had its' weep seals cleaned, moisture in walls or flooring around such places as washer/dryers, fridges, dishwashers, showers, toilets, and bathtubs.

What paperwork will be included at this cost?
    Some inspectors will charge you extra for a FHA Dry Rot and Pest Report, or for a print out of your inspection. You will need a FHA Dry Rot Pest Report for the state loans, VA loans, and FHA loans. Make sure your cost includes a copy of this. Also, ask how the inspector will get you a copy of your inspection, in what form will it come to you, and how soon can you expect it. The average cost for a home inspection is around $350, but the cost can vary with the size of the home you are purchasing.

Some things to Remember:
    The home inspector is just that...an inspector.  She/He is not a contractor, and they are still human.  The home inspector works for YOU. You pay for the home inspection at time of service, and this is a non-refundable fee, but it is also a legal reason to back out (if you want) and get your earnest money refunded to you.
    A home inspectors job is give you a run down of the homes condition and what you can expect in the areas of maintenance, and what needs to be done for safety and/or health reasons.
Anything that is a health or safety concern, or that needs to be done by a licensed contractor is something that needs to be discussed with your buyer's agent for repair.
Both YOU and YOUR AGENT should be there at the time of the home inspection. Again, the home inspector is your employee for the day, so be sure to walk with them and learn about your potential new home. Ask questions! Take notes if you want...
    In case of a bank owned home or HUD home, make sure that the water, and all other utilities are turned on for the home inspection. Both your agent, and the inspector should be assisting with this. If the water is NOT turned on then it is outside the scope of the inspection.

On one of our upcoming topics is Buyers Due Diligence which will tie into this topic on Home inspections.  
               
      Information is power, and I hope that I am able to help you.  Good luck, and as always...May the odds be ever in your favor out there....  If you are looking for a real estate agent, I would love to be able to help you.                                                                       
 
    As always....this is just a quick overview.... please remember that your agent, and your lender work for YOU.  You drive the bus...we are merely GPS to help you get to your goals.  Like the classes, this weekly blog email is to help you with your home adventure.  The goal is to be informative and non-promotional.  :-)  We are, however, hoping you will call and want us to help with your adventure.  

If you have any questions about this, or something you have heard...or if you would like me to help you with your home adventure, please call, email,  text, or facebook me anytime.  I am, as always, happy to help!
 
Thank you again for your business and your referrals!!  ...and thank you for referring these classes to your friends, family, and co-workers. 
 
 .   ..disclaimer...if you have already purchased a home, or would no longer like to receive these emails, please let me know and I will be happy to remove you from any further mailings... 
 
 
Upcoming Topics:  Heating Types (but I want AC),  Septic vs Sewer,  Buyers Due Diligence, & "When do I get KEYS?"

Last Week:   What is Title Insurance?                                     
Have a great day, and I will talk to you soon,   
;-D   
Tracie DeMars   
Real Estate broker    
Re/Max - Van Mall   
360/ 903-3504 cell   
360/ 882-3600 fax   
www.traciedemars.com   
traciedemars@aol.com   
    
“Interested in free and non promotional home buyer classes?  Go to www.traciedemars.com  for local upcoming classes, or facebook: Tracie DeMars Real Estate for my home buyer education blog.  Classes are now available for home owners thinking about selling their home.  Links are on the left."

"Listen to the mustn'ts, child. Listen to the don'ts. Listen to the shouldn'ts, the impossibles, the won'ts. Listen to the never haves, then listen close to me... Anything can happen, child. Anything can be."    
   - Shel Silverstein, American poet, cartoonist and composer, (1930 - 1999).

0 Comments

What is Title Insurance?  

10/3/2015

0 Comments

 
Picture
Upcoming Free (& non-promotional) Home Buyer Classes: 

 
Saturday October 10th , from 9am-12pm (ish)
       Marshall Community Center, conference room
       1009 E. McLoughlin Blvd, Vancouver WA (kitty corner from Clark College) 

Thursday night, October 15 , from 5pm-8pm (ish) 
       Marshall Community Center, conference room 
       1009 E. McLoughlin Blvd, Vancouver WA (kitty corner from Clark College)

 
If these class dates and/or times don't work for you, please let us know.  We understand that you have lives, and families, and work.  We will work something out that works better with your schedule.  Just let us know....                                                                                  
....we also have home seller classes available too...link on left on website
                  

Remember...with reservation...we will throw in lunch, or dinner!  :-D
~~~~~~~~~
                                                                    
Hey there!

WHERE IS FALL?!  Don't get me wrong...this is gorgeous weather, but I am ready for fall...  It still seems absurd to me that we are already in October.  Where did this year go?  Is it just me, or is anyone else feeling this way?  We seem to be careening to the holidays at warp speed.  Which reminds me....don't forget that we have our next Client Appreciation Event coming up on Saturday, December 19th from 3pm-6pm for the NEW Star Wars!  eeeek!!!  I am so excited....  The client appreciation events are just a small way for Chris Berg & I to say, "thank you".  Thank you for choosing us as your part of your home adventure team, and THANK you for your continued referrals!!  :-)

Let's talk a bit about title insurance this week.  Next week we will talk about homeowners insurance.  These two types of insurances are often cause confusion as no one really knows what they are, and what they do.  Let's see if I can help with that...  

Title Insurance....


There are 3 different insurances which every buyer needs to be aware of....homeowners insurance, mortgage insurance, and title insurance.  A couple of weeks ago I talked about mortgage insurance, so this week I am going to talk about title insurance.  Next week I will talk about homeowners insurance.  

Title insurance is paid for at closing, and is one of those, 'closing costs' that we talk about.  This is good insurance for you, but not everyone understands what it does, or how to make sure you are getting the best coverage possible. 

After you have a signed around purchase/sale agreement your agent will take your earnest money check to the title company, and along with the signed around purchase/sale agreement, open escrow with the title company.  We aren't going to go into the title company's full job today, but part of this job is to research the property's title.  

The title company will send you, the buyer, a copy of the title report.  The title report will give you information about the home such as, a map of the property, information about the home, and requests for information from you for the title company.  Please be sure to look it over, and if you have any questions, call your title officer.  Remember that there are 28 people involved in a sale/purchase of a home, and no one gets paid unless you get keys.  We all want you to get keys.  :-D

The title report will also talk about title insurance, and this is where we are at today.  One of the responsibilities of the title company, as mentioned above is to research the title....look for any 'clouds' on it...anything that isn't clear.  If the title company misses anything, title insurance protects you, the buyer, from being responsible for something before you owned the property....or so it is in its most protective form.  Let's say that 6 months after you close and move in, some guy comes to the door telling you that you owe him $8,000 for a roof repair from 1 year ago.  You are floored, and freaked out...of course, and you call everyone you can to see if you are actually responsible for this.  I mean, wasn't this before you purchased the home?  So how can you be liable?  Well, without the proper protection, you could be!  I can see you now, "say what?!"

There are 3 forms of title insurance...Standard policy, extended policy, and homeowners policy.  

One of the forms that a buyers agent may have you sign is an 'Optional Clause' addendum, and on this addendum Standard Policy is checked.  YOU DON'T WANT THIS!  It is cheaper for you, but it would not protect you in the case stated above.  Extended policy seems like a good idea, but can be expensive as it requires a professional survey for the property, and still doesn't provide you full coverage.  What you want, as a buyer, is the HOMEOWNERS POLICY as this is the most coverage you can get as a homeowner, and would protect you in the situation above.  The difference between standard policy and homeowners policy?  About $60-$80.  Title insurance is only purchased ONCE, and that is at closing.  In Washington, Homeowners Policy is standard, and unless otherwise stated and agreed upon in the purchase/sale, what you will receive from the title company.  Remember that this is one of those costs that is part of closing costs, and as a buyer you should be asking for 3% in closing costs from the seller.  

Again, if you see the Optional Clause addendum, make sure the standard policy is not checked.  If you are purchasing a bank owned home/foreclosure, or sometimes, even a short sale, only a standard policy will be issued.  My advice to you is to ask for the homeowners policy, and if need be, pay the extra amount to fully protect yourself.  

So what is Title Insurance? 

In a nut shell, Title insurance protects you (or your lender) if a lawsuit is filed against the title.
Owner's title insurance, issued in the amount of the real estate purchase, can be bought for a one-time fee and lasts as long as you or your heirs have an interest in the property. The premium charged varies from state to state, but it is usually 1 percent the purchase price of the property, according to the American Land Title Association (ALTA).
Owner's title insurance fully protects you if a problem surface with the title that was not uncovered during a title search, and pays for any legal fees involved in defending a claim against your title to the property.
Anything you might want to know about your property or its "chain of title" is usually found in a records search. The one-time fee paid for title insurance goes toward administrative fees for searches at large research facilities where the histories of properties and property titles are stored. In some cases, the chain of title could trace back to the early 1800s or when land records were first recorded in the U.S. That is a lot of paperwork. Short searches are common in residential transactions, including searches one to three deeds deep in the chain.

What does it cover?  
Remember that Homeowners Insurance covers ALL of this, and isn't that what you want??  Full coverage is good!  :-)
Basic owner's title insurance: 
 Basic lender's title insurance: 
 Extended owner's title insurance: 
  • Title to the property
  • Incorrect signatures on documents
  • Forgery, fraud
  • Defective recordation
  • Restrictive covenants
  • Encumbrances or judgments against the property
  • Mechanic's liens and unrecorded liens
  • Unrecorded easements and access rights
  • Defects and other unrecorded documents
  • Building-permit violations
  • Subdivision maps
  • Covenant violations
  • Living trusts
  • Structure damage from mineral extractions
  • Encroachments and forgeries after title insurance is issued



               
      Information is power, and I hope that I am able to help you.  Good luck, and as always...May the odds be ever in your favor out there....  If you are looking for a real estate agent, I would love to be able to help you.                                                                       
 
    As always....this is just a quick overview.... please remember that your agent, and your lender work for YOU.  You drive the bus...we are merely GPS to help you get to your goals.  Like the classes, this weekly blog email is to help you with your home adventure.  The goal is to be informative and non-promotional.  :-)  We are, however, hoping you will call and want us to help with your adventure.  

If you have any questions about this, or something you have heard...or if you would like me to help you with your home adventure, please call, email,  text, or facebook me anytime.  I am, as always, happy to help!
 
Thank you again for your business and your referrals!!  ...and thank you for referring these classes to your friends, family, and co-workers. 
 
 .   ..disclaimer...if you have already purchased a home, or would no longer like to receive these emails, please let me know and I will be happy to remove you from any further mailings... 
 
 
Next Week:   Home Owners Insurance or Home Inspections 101 or "When do I get KEYS?"
Last Week:   Closing Costs...explained                                     
Have a great day, and I will talk to you soon,   
;-D   
Tracie DeMars   
Real Estate broker    
Re/Max - Van Mall   
360/ 903-3504 cell   
360/ 882-3600 fax   
www.traciedemars.com   
traciedemars@aol.com   
    
“Interested in free and non promotional home buyer classes?  Go to www.traciedemars.com  for local upcoming classes, or facebook: Tracie DeMars Real Estate for my home buyer education blog.  Classes are now available for home owners thinking about selling their home.  Links are on the left."


"Listen to the mustn'ts, child. Listen to the don'ts. Listen to the shouldn'ts, the impossibles, the won'ts. Listen to the never haves, then listen close to me... Anything can happen, child. Anything can be."    
   - Shel Silverstein, American poet, cartoonist and composer, (1930 - 1999).

​

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    Tracie DeMars
    real estate broker with Re/Max

    I have been in real estate for about 16 years now, and I have seen the market up, down, and now going up again.  I teach the Clark County Free Community Classes for Home Buyers & Home Sellers to help buyers learn about the loan, and home buying process; and sellers to learn about the paperwork and process of selling a home.  We are volunteers, and have no affiliations so we are able to tell it like it is...with no sugarcoating.  The pros, the cons, we tell it all in a fun, engaging, direct manner that encourages class attendee interaction and involvement.  Classes are free and non-promotional and held at community locations.  Walk -ins are welcome and all are invited.  
    ​Whether you're buying or selling a home, Education should always be your first step! 
    **we now offer Home SELLER classes too, by reservation.  It is a sellers market out there, and the classes are designed to go over all the paperwork, the 'right' questions to ask, how to make sure your agent is really working for you, what a CMA (comparable market analysis) is, and what is considered a comparable home....and going over the settlement statement.  What are the fees?  What are you going to net???

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