Do you have a C.L.U.E. on That CT Home You are About to Purchase?

Every home has one, and there is important information contained in it.  The report will tell you what home  insurance claims have been brought against the property, such as fire, water and smoke damage, among others.Would that be a good thing for you to know?

C.L.U.E. stands for "Comprehensive Loss Underwriting Exchange" and is a claims history database that enables insurance companies to access consumer claims information when they are underwriting or rating an insurance policy. As C.L.U.E. reports play an increasingly important role in real estate transactions, inspectors will find their clients more curious about how C.L.U.E. reports can affect them.
 
C.L.U.E. was created in 1992 and is administered by ChoicePoint, a data aggregation company. Roughly 600 homeowners' insurers (about 90% of insurers) contribute claims data to the database. Most insurers renewing existing policies do not access C.L.U.E. reports at renewal, largely because they already have loss histories for these properties in their own databases. Many buyers now stipulate that a C.L.U.E. report on a home must be included with the real estate transaction.

What information is included in a C.L.U.E. report?

The report contains consumer claim information provided by insurance companies. Policy information, such as date of loss, type of loss, and amounts paid, and a description of the property covered, is all included in the report. Only loss history information within five years prior to the current date is stored in the database. No other sources of data, such as credit reports, civil lawsuits, criminal records or legal judgments, are incorporated into C.L.U.E. reports.

How can C.L.U.E. reports benefit potential home buyers?

C.L.U.E. reports let potential home buyers know about water damage, mold, and other issues that can make it difficult or even prohibitively expensive to insure a home. Without viewing the report, big trouble may be brewing for buyers who simply assume that they will receive an insurance policy for their new home.

Imagine a typical real estate transaction, in which the property sells, ownership is transferred, the buyer gets the keys, and the real estate agent gets paid. But a few weeks later, the buyer gets a letter from their insurance company rescinding the policy due to a previous claim. Many mortgage documents state that a property must remain insured. If the homeowner can't find insurance elsewhere, they can be forced into paying the mortgage company's premium insurance rates or foreclosing on the home. Understandably, many of these situations result in lawsuits:  buyers sue the seller for non-disclosure, the home inspector and the real estate agent if they did not insist upon obtaining an inspection or C.L.U.E. report for their client. This entire situation may have been avoided if a C.L.U.E. report had been ordered by the seller and reviewed by the buyer.

Note that you cannot order a C.L.U.E. report for a home that you are merely interested in buying. Only current owners, insurers and lenders for the property can order C.L.U.E. reports. However, you can request that the current owner of the property order a C.L.U.E. report for you to view.

Why should inspectors care about C.L.U.E. reports?           

During a buyer’s inspection, the inspector is tasked with exposing the property’s dark secrets that may make its purchase less desirable for the buyer. While this process traditionally involves inspection for current defects that affect the safety or functionality of household components, buyers should be concerned with previous defects that, as detailed above, can create nightmare scenarios after the house has been purchased.

If the inspector finds evidence of major damage that has since been repaired – even if the repair has made the component safe – he should advise his client to request that the seller order a C.L.U.E. report, if this has not been done already. Flood damage from four years prior, for instance, can make a property uninsurable under a new policy. Even if the inspector finds no such evidence, it couldn’t hurt to mention the report to the prospective buyer.

How do you get a C.L.U.E. report?
Homeowners can get an electronic or mailed copy of their own C.L.U.E. report for a small fee, depending on which state they reside in. If a homeowner lives in Maryland, Georgia, Massachusetts, Colorado, Vermont or New Jersey, they are entitled to a free copy of their consumer report.
 
In summary, C.L.U.E. reports play an important role in real estate transactions. Inspectors should be ready to inform their clients about the ways in which these reports can affect their ability to receive future insurance coverage.

Submitted by Nick Gromicko

Nick Gromicko, FOUNDER. http://www.nachi.org
International Association of Certified Home Inspectors (InterNACHI) is the world's most elite, non-profit inspection association.
President, ComInspect, www.cominspect.com
Director, Master Inspector Certification Board, www.certifiedmasterinspector.org
Author, 15 books and Co-Host of  http://www.NACHI.TV

Among the Best Places to Live in Fairfield County CT- The Town of Easton

The town of Easton, Connecticut is truly quintessential New England at its best. Easton's distinctly quaint personality is quite charming and the town has worked hard to maintain  its rural feel while offering easy commutability to  New York City.

Easton, Connecticut Quick Facts: Land area is approximately 27 Square miles and the elevation is 393 feet. Incorporated in  1847, Easton currently  has about  7,600 residents in 2,550 households, 93% of which are owner occupied.  Approximately  25.4%  of the housing stock was built prior to 1950.

The town of Easton, Connecticut is one of the most beautiful and quaint towns in Fairfield County. There is no real commercial development, except for a village store, one gas station, and a number of older working farms. The well-known Aspetuck and Hemlock Reservoirs are just two of three, formerly owned by The Bridgeport Hydraulic Company, which is  now known as the Aquarion Company that service many of the surrounding towns. This watershed area comprises almost 40% of the entire town of Easton. The area surrounding these reservoirs is as picturesque as a postcard. On your scenic drive in Easton, expect to see an old barn, many historic homes, and plenty of stately manors. 

The town of Easton  boasts over 7500 acres of preserved land, and you will encounter old-style colonial stone walls everywhere you go. It would not be uncommon to see someone riding a horse here, either privately owned, or from one of the local stables like the Lion Hill Riding Academy. The eighteenth century charm and seclusion is evident throughout the town, which has masterfully planned a mix of vintage homes with newer regal homes, while maintaining its rural beauty.

Founded in 1757, but not incorporated until the 1847, Easton's beginnings were brought upon by men from the Parish of Fairfield. Easton was favored by Redcoat and Colonial troops during the revolutionary war. In 1797, Samuel Staples founded the first 'free' school in Easton, so that rich and poor could both receive an adequate education. The fund for the poor exists today, and is known as the Easton Town Deposit Fund.  

This town's current ambience is that of a quiet residential community. The rural character of Easton has been steadfastly maintained over the years, while still allowing minimal residential growth. Zoning still requires 3 acres lot size in over 90% of the town. Housing is strictly single family residences, with no apartments, condominiums, or industry.

The Connecticut Golf Club and the Aspetuck Valley Country Club offer a low key social setting in town, while bordering towns offer varied social happenings.

Famous past residents include Helen Keller, Ida Tarbell, Hume Cronyn and Jessica Tandy.

For more information about Easton CT schools and town links, click here.

We offer weekly updates on the state of the housing market in Easton, If you are considering a move to Easton, or thinking about selling yoru Easton home,  contact us.

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Connecticut Mortgage Rates and Financing Update November 4, 2011

HARP update (Home Affordable Refinance Program)

On October 24th the Federal Housing Finance Agency (FHFA), Fannie Mae, and Freddie Mac announced several changes to the HARP in an effort to help borrowers benefit from refinancing. Only borrowers with a loan sold to Fannie Mae and Freddie Mac prior to June 1, 2009 are eligible for the HARP program (which is commonly known as Refi Plus or Relief Refinance Open Access). For full details, the FHFA announcement and frequently asked questions can be accessed at www.fhfa.gov  under 2011 News Releases.

The full details of HARP 2.0 have yet to be released (there is an 11/15 deadline), documents released so far set out the broad structure. Gone is the LTV cap for fixed rate borrowers: borrowers with LTV’s in excess of 125% will now become eligible for the HARP program, though execution strategy for those loans remains unclear. A maximum LTV of 105% remains in effect for borrowers refinancing into an ARM.  The program (as outlined) suggests a reduction in loan level pricing adjustments for HARP eligible borrowers and waiver for those who choose to refinance into a shorter term.

The Treasury announced it will be selling $32 billion 3-year notes, $24 billion 10-year notes, and $16 billion 30-yr bonds next week - the same as in August. When this happened, rates were driven lower for a short window of time - however, rates are now back at that window of all time lows - so stay tuned to see how this auctions affects rates next week.  I am hard pressed to imagine rates dipping much lower. 

Today's Mortgage Rates

30 year fixed - 3.875% + .375% cost points for rate
20 year fixed - 3.875% + 0 % points for rate
15 year fixed - 3.250% +  0% points for rate
10 year fixed - 3.250%  + 0%  points for rate
5/1 ARM - 2.625%  +0 points for rate
7/1 ARM - 2.750 %  + 0 points for rate
10/1 ARM 3.375% + 0 points for rate

FHA/VA
30 year fixed - 3.875% with +0 % points for rate
5/1 ARM - 2.75%  with + 0 points for rate
7/1 ARM - 3.25 with .50% CREDIT  point for rate

Jumbo - over 576,000 (in Fairfield County, CT)   to 2,000,000
30 year fixed - 4.625 % with 0 points  for rate
15 year fixed - 4.125% with +.50% points for rate
5/1 ARM - 3.250% - 0 points for rate
7/1 ARM - 3.625 % - 0 points for rate
10/1 ARM - 4.250% with 0 points for rate

Jennifer Buchanan,  Certified Mortgage Planning Specialist at MetLife Loans is a seasoned veteran of the Mortgage, Banking and Broker Industry and specializes in mortgage loans throughout Fairfield County, Connecticut.
   Her attention to detail is unsurpassed, and her understanding of the marketplace makes it easy to find the right loan to fit her clients specific needs .  Jennifer's local processing and closing team are also known for their exemplary service.
   Understanding that the vast majority of mortgage brokers never discuss the long or short term  financial needs or goals with their clients, she set herself apart from the rest by obtaining the coveted CMPS  designation. (Certified Mortgage Planning Specialist)
    She is a member of the National Association of Responsible Loan Officers, and her commitment to ethics, understanding of the marketplace, and business acumen have earned her the respect of her peers and clients alike.

Jennifer Buchanan
Metlife Loans
203-341-6949

Jennifer Buchanan- Your certified expert
 on mortgages offering Free Unbiased
recommendations based on your needs.

The Biggest Factors in Determining Your Home's Future Resale Value

Although no one can predict the  future of real estate with absolute certainty, there are consistent resale trends that enable us to get a very good idea of what the future holds with regards to amenities and improvements in our homes. There are also a plethora of articles on what renovations make the most sense from an investment standpoint. See this article on Best Improvements for the Greatest Return on Your Investment.

At the end of the day, it's all about the resale value.  Resale Value is specifically defined as the anticipated marketability and worth of your property at a future date.

The single most important factor in establishing resale value is the location of the home. You keep hearing, "Location, Location, Location", and it is true. Think of it location relating directly to resale in this way- Given an exact replica of the same house in two different towns in Fairfield County on an absolutely identical lot, except one of those houses is located in Bridgeport, while the other exact same house is located in Greenwich- which house would be worth more?  I rest my point.

Yes, that's a drastic example, but that was to prove a point. That same house would have a different value within the town of Greenwich depending on what neighborhood it was in.

The next biggest factor in resale happens to be the public school system and how it is rated. This still technically falls under location, it just steps it up a notch. If you look at the home sale statistics for some of the more respected public school districts, you will notice that those areas are valued higher, even if the majority of the children who live in those houses attend private schools.  It doesn't matter whether you have children in the school system or not. Living in a  specific school district with a well respected public school definitely has its pluses for resale.

Next, there are specific types of homes that traditionally have better resale value than others, given all the same square footage, amenities and property. See this previous article on Specific Home Styles Resale Value

Then, we look at the amenities within the house, and the specific features that add to resale. The most sought after features do change over the years and they are truly area specific. A few examples of what once was considered helpful that is now considered standard is having more than one bath in the home. An outdoor above ground or in-ground pool for example might be considered nearly mandatory in Florida, but can be seen as a detriment in the Northeast.

The basic parameters for Resale Value are not the same for each town, and change within the individual price pockets within each  town, 

*Starter range

updates
3 bedrooms or more
1.5 bathrooms or more
interior flow
some type of family space
garage  
storage

*Mid Range

 updates
four bedrooms
2.5 baths or more
at least one area for family space
home office area
2 car garage
storage and closets

*Upper Tiers

luxury appointments
luxury improvements
privacy
above average ceiling height
au-pair suite

What will always help resale value no matter what town you are in, what neighborhood, what style home or what price tier your home is in:

Cleanliness
A pleasant view
Attractive landscaping
Modern and updated kitchen and baths

A Few Tips:

Keep your improvements in line with the neighborhood. Your home should stand out for being beautiful, but not for being overdone. See article on owning the best house on the street
    
If it's not broken, don't fix it. Changing fixtures or appliances that are modern and in good repair will not add resale value to your home.

Need to make a decision about buying or selling your home? Contact me and I'll help you get the most for your money.

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Was that Actually the Same House as Described in the MLS listing?

Have you ever seen an MLS listing that seemed so good on paper that you couldn't wait to get to the house? and then....when you got there, the house was nowhere near as big, beautiful or in such mint condition as it was described?

The first thing you might think of is how dare those your agent and, those sellers waste your time like that. Well, I really rest the blame there on the sellers agent for misrepresentation, or utilizing "excessive artistic license" in the listing. Any way you want to label it, it's just plain deceitful on many fronts, and in some cases it can cost you dearly.

The two big offenders? Size and Condition. Once a buyer  figures out that either one of these was not truthfully represented, they almost always walk away from the house. It creates a level of distrust that just cannot be mended.

Size: Truly the biggest intentional error on MLS data sheets is the size of the home. There are so many repercussions to this!

The bigger the better, right? Only if it's true- and by the way, some buyers don't consider bigger as being better. The buyers that do want bigger will know the second they walk through your door that the square footage was not accurate, and they probably won't buy your home.

For example, let me tell you that if you allow  your home to be marketed as 4,000 square feet instead of the 3,000 square feet that it actually is, you will end up paying for it one way or another.

Buyers get a pretty good idea of home sizes as they look at properties.  Your home will look very small compared to home with accurate sizes listed, and it will also appear to be overpriced based upon the competition.

Having a finished lower level is great. Additional living area is wonderful. If you have a full walk out basement, that's great, too. But it cannot be counted as main level living space. Be careful with lower level bedrooms, too. They pose additional risks. The town tax assessor's records are really quite accurate. The appraiser that comes out on the banks behalf to appraise your house will rely on the town's records as well.

There are only a few styles of homes where adding the finished lower level square footage is ever considered appropriate, (raised ranches, hi-ranches, and split-levels)and even then it becomes sketchy. At any rate, and whatever you do, if you feel that you MUST add the lower level square footage, it must always be disclosed within the remarks section of the listing if you choose to go this route. As an FYI, sometimes it really can be appropriate to list it this way with the caveat that it MUST be noted in the remarks section of the listing.

Condition: What about that house that is purported to be in "mint conditiion"? When I see a home that is marketed as being in mint condition when it's not, it always get's me wondering.. just how does that agent live where they think this is mint? Mint condition should mean that the house condition is in near perfection- no if's, and's or but's.

Bottom Line: It's always best to be honest and forthright- in your day to day life, your personal relationships, and your business dealings.

I am in the business of selling homes, and I'd like to be in business with you. Contact me today to get your home IN the Market, and I WILL get your home sold.

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