Why sell your Northern Central Ohio Home NOW? Inventory Challenges Continue! [INFOGRAPHIC]

Some Highlights:

• After a surge in March, existing home sales and new home sales slowed due to a drop in inventory available for sale in the start-up and trade-up categories.
• Median existing home prices surged for the 62nd straight month, up 6.0% over last year to $244,800.
• New home prices slowed as builders have started to turn their focus toward single family, smaller homes.

While these are national statistics many markets in our area, and even certain neighborhoods within markets are still RED HOT!

Avon, Avon Lake, Rocky River, Ohio City, Tremont, Gordon Square to name just a few!  

If you have a wisely priced home that is updated your home will move.  Contact me today to review our marketing program.  Let the Hisey Group go to work for you: 440-315-6000 or leehisey@howardhanna.com. 

www.HiseyGroup.com

Do You Know the Cost of NOT Owning Your Home?

Owning a home has great financial benefits, yet many continue renting! Today, let’s look at the financial reasons why owning a home of your own has been a part of the American Dream for as long as America has existed.

Zillow recently reported that:

“With Rents continuing to climb and interest rates staying low, many renters find themselves gazing over the home ownership fence and wondering if the grass really is greener. Leaving aside, for the moment, the difficulties of saving for a down payment, let’s focus on the monthly expenses of owning a home: it turns out that renters currently paying the median rent in many markets could afford to buy a higher-quality property than the typical (read: median-valued) home without increasing their monthly expenses.”

What proof exists that owning is financially better than renting?

1. The latest Rent Vs. Buy Report from Trulia pointed out the top 5 financial benefits of home ownership:

• Mortgage payments can be fixed while rents go up.
• Equity in your home can be a financial resource later.
• You can build wealth without paying capital gain.
• A mortgage can act as a forced savings account
• Overall, homeowners can enjoy greater wealth growth than renters.

2. Studies have shown that a homeowner’s net worth is 45x greater than that of a renter.

3. Just a few months ago, we explained that a family buying an average priced home at the beginning of 2017 could build more than $42,000 in family wealth over the next five years.

4. Some argue that renting eliminates the cost of taxes and home repairs, but every potential renter must realize that all the expenses the landlord incurs are already baked into the rent payment –along with a profit margin!!

Bottom Line

Owning a home has always been, and will always be, better from a financial standpoint than renting.  Contact me today and let my team go to work making your dream a reality!  Call 440-315-6000 or email me at leehisey@howardhanna.com.

Is 2017 the Year to Move Up to Your Ohio Dream Home? If So, Do It Early!

Are you considering a larger home, a better neighborhood, or maybe a waterfront home on Lake Erie?  

If you are considering moving up to your dream home, it may be better to do it earlier in the year than later. The two components of your monthly mortgage payment (home prices and interest rates) are both projected to increase as the year moves forward, and interest rates may increase rather dramatically. Here are some predictions on where rates will be by the end of the year:

Freddie Mac

“While full employment and rising inflation are signs of a strong economy, they also have the potential to push mortgage rates and house prices up. The higher rates and higher prices create significant affordability concerns, which may continue to characterize the housing market for the rest of 2017.”

Lynn Fisher, Vice President of Research & Economics for the Mortgage Bankers Association

“By the time we get to the fourth quarter of this year, we will still be under 5 percent – we are thinking 4.7 percent…Something north of 5 percent by the time we get to 2018, and by the time we get to 2019, we show fourth-quarter rates hitting 5.5 percent.”

Mark Fleming, First American’s Chief Economist

“Despite some regional disparities, title agents and real estate professionals do not expect increasing mortgage rates to have a significant impact on the housing market this spring. Continued good economic news, increasing Millennial demand and confidence that buyers will remain in the market even if rates exceed 5 percent bode well for 2017 real estate.”

Len Kiefer, Deputy Chief Economist for Freddie Mac

“We will probably see rates higher at the end of year, around 4.5%.”

Bottom Line

If you are feeling good about your family’s economic future and are considering making a move to your dream home, doing it sooner rather than later makes the most sense.  Call Lee Hisey, Team Coordinator for the Hisey Group with Howard Hanna today at 440-315-6000 or leehisey@howardhanna.com to start making your dream a reality!  

www.HiseyGroup.com

Homeowner's Insurance Facts from Howard Hanna Financial Services

                                  

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The HannaFinancial Series: Homeowner’s Insurance FAQs

The Low-Down on HOI

For most, the purchase of a home will be the biggest investment made in a lifetime. This means that homeowner’s insurance is the most valuable way to protect your investment. Homeowner’s insurance can cover most everything in your home and everything that’s important to you! Your Howard Hanna Insurance Services team understands that the homebuying process can be overwhelming. That’s why they’ve answered some of the most common questions regarding HOI below.

Do I really need homeowner’s insurance?

By law, you are not required to have homeowner’s insurance. However, if you decide to finance your home through a mortgage lender, including your team at HannaFinancial, you’ll be required to have it. Your insurance is protection against the many property and liability risks you can face as an owner. If you are not buying homeowner’s insurance, you are “self-insuring.” Besides, the unexpected sometimes happens, and the peace of mind that’s provided by having insurance is second to none.
In addition to having homeowner’s insurance, umbrella coverage is an important policy to have as a homeowner. Umbrella coverage gives additional liability protection and helps you to protect your assets. A home is the largest asset most people will ever own. Every homeowner should have at least a $1 million umbrella policy to provide liability coverage beyond the limits of their automobile and homeowner’s insurance policies…even if you have less than $1 million in assets. In the event you are sued, you could be forced to pay a legal judgment from your current assets and possibly future earnings. The policy can also pay for defense costs, which can quickly add up even if you win your case. It’s an inexpensive way to protect your finances from devastating lawsuits.

What does my homeowner’s insurance policy cover?

Policy, form and coverage can vary among carriers and from state to state, but the vast majority of insurance policies cover two very important areas: property and liability. At a minimum, your policy will typically cover the following damages:

• Damage from an aircraft
• Explosions
• Falling objects
• Fire or lightning
• Freezing of a plumbing, heating, air conditioning or other such household system
• Smoke
• Theft or vandalism
• Damage caused to your property by vehicles
• Weight of ice, snow, or sleet
• Windstorm or hail

What are the factors that can affect my premium?

• Location, location, location
• The amount of coverage that you need
• Fire safeguards
• Condition, materials, maintenance, and home age
• Claims
• Your credit score
• Deductible amount
• Other insurance policies with the same insurance company such as automobile, umbrella, life, etc.

What are the parts of a homeowner’s insurance policy?

• Declarations – This portion is an overview including information like the name(s) of the insured, address, dollar amount of coverage, property description and property cost.
• Definitions – This portion explains meanings intended for terms used within the policy. The definitions are critical to understanding the degree of your policy coverage.
• Coverages – This portion explains the extent of the liability and property coverage for the policy.
• Exclusions – This portion explains what is not covered by your policy.
• Endorsements – A policy amendment that changes the standard coverage under your insurance policy. Sometimes endorsements are negotiable based on your specific property needs. For instance, personal property replacement cost and backup of sewers and drains are common endorsements that help to round out your protection.

How do I choose a deductible for my policy?

Under most circumstances, your deductible for your homeowner’s insurance should be as high as you can comfortably afford. The higher your deductible, the lower the cost of your premium. Many times, raising a deductible can reduce your homeowner’s insurance premium. That being said, it’s best to balance short-term cost with long-term policy cost, coming to a compromise that makes sense based on both your needs and budget.

Should I consider additional insurance coverage for specific personal property such as jewelry?

Typically, a policy will list specific monetary limits for certain personal property. If these limits seem low to you when you review your policy, it may make sense to get additional coverage for specific items. The purpose of homeowner’s insurance is to cover general personal possessions, not valuable collections such as artwork or family heirloom jewelry.

What can I do to make my home safer and save money?

Since the condition of the home is a large factor in insurance costs, there may be ways for you to save money by making your home safer. For instance, adding storm shutters to make the house more windstorm-resistant or updating an electrical system to reduce the risk of fire damage may go a long way. Even simple things like installing an alarm system, more smoke detectors, or putting in more dead-bolt locks may not only help to make your home safer, but also lower your insurance cost.  Bundling all of your insurance coverage with a single carrier can also save money with multiple policy discounts, and it is easier and more convenient to have all of your insurance in one place.
Have additional questions? Your Howard Hanna Insurance team has answers! Give us a call or email us at: 800-646-5355  |  insurance-info@howardhanna.com. Or for more information, visit us at: www.HowardHanna.com/Insurance.