Your Credit Score. What it Means & Why You Need to Know it!

Thanks to Carrie Van Brunt-Wiley, Editor of the HomeInsurance.com for the infomation contained in today'sblog.

Your credit score and your insurance payments- what’s the connection?
You’re likely not surprised when your loan officer asks for your social security number- a thorough credit check is standard when applying for a loan. However, many consumers are caught off-guard when a homeowners insurance agent asks for their social security number. It’s widely debated, but quite commonly practiced- for an insurance carrier to use a customer’s credit score to determine their insurance premiums.

What does your credit score really mean to your potential insurance carrier?
While many businesses will use a consumer’s credit score to determine eligibility for a line of credit or to discern whether a deposit should be held for an advance of services, insurance companies actually perform a different type of credit inquiry that they use for a very different reason.

A “Soft” Credit Check
First and foremost, it’s important to know that when an insurance company runs your credit they are actually performing what is called a “soft” credit check which accesses only your credit score and is not reflected as an inquiry on your credit report. As you probably can surmise, this is different from a “hard” credit check that a lender, for example, may run which does show up on your credit report as an inquiry. Since credit inquiries from “hard” credit checks can hurt your overall score it’s good to limit these types of credit checks when shopping for a mortgage, for example. However, since insurance carriers only perform a “soft” credit check you can feel free to shop for multiple insurance quotes without worrying about hurting your credit rating.

What they use it for
Here’s where a lot of confusion, and sometimes even frustration, can set in from a consumer’s perspective. Once an insurance company has your credit score, they use it (along with many other factors about you and your home, car, etc.) to assign you an “insurance score”. This insurance score reflects your potential risk to the insurer.
The insurance carrier then takes your risk potential and calculates your premiums. The more risk you pose, the higher your premiums will most likely be. This is where the real question comes in:

What does poor credit history have to do with my potential to file a claim?
If you’re asking this question, you’re not alone.
There is much debate over the use of credit scoring as a way to determine risk, and therefore assign rates to insurance consumers. However, insurance companies defend the practice saying that studies have shown a direct correlation between a person’s credit score and their likelihood to file a claim. Therefore, consumers with a lower credit score often pay higher rates for insurance.
Whether you agree with the practice or not, qualifying for better insurance premiums is just one other way that you can save money by keeping a good credit rating

Home Appreciation: Why it's Important to You

A positive recovery rate is predicted through 2017!

We've all gone through several years of a very poor real estate market. It really didn't feel good to be a Seller, and to watch the value of your home depreciate year after year. And some Americans lost everything in the devestation of short sales and home reposessions. We all know someone who was effected.

But the tide has turned and the experts (Home Price Expectation Survey 2013*) are predicting that home prices will fall back into step and become more predictable at an average of 4.7% over the next four years as we move into the mid-20teens. This is on a national basis and will be different based on your regional area. But it's all mainly positive.

Why is this great news for sellers? Now you can plan when you want to sell and even "expect" within a pretty good range, what your home's value will be.


*A nationwide panal of 100+ economists, real estate experts, investment and market strategists

Five Reasons Why Americans Want to Own Our Homes

With all the talk about our fluid housing markets, do we ever stop to wonder why we buy homes?

 

There is a plethora of opinions voiced by real estate gurus as to why the dream of home ownership is so important to most Americans. However, study after study reveals the same five reasons families decide to buy a home. They…

1. Want a good place to raise children
2. Want a place where their family feels safe
3. Want more living space
4. Want control of that living space
5. Realize that owning makes better financial sense than does renting

(For those who question the validity of number five after the recent housing crisis, Harvard University just finished a study on the issue)

If you are considering purchasing a home, look at the five reasons mentioned above. If any of them apply to you and your family, maybe it is time for you to take the plunge. With both prices and interest rates rising, waiting will only increase your monthly cost as we move forward.

Three Things You Should do to Get Your Home Sold and Why!

We've all seen them, the before and after DIY TV shows that transform homes for sale. But are they true? Well folks, as an experienced Realtor, after getting the right listing price, there's nothing more important you can do for the sale of your home than prepare the way it looks. We know that a "well-polished" house appeals to more buyers and will sell faster and for a higher price. Additionally, buyers feel more comfortable purchasing a well-cared for home because if what they can see is maintained, what they can't see has probably also been maintained.

Here are the three top things you should do to prepare your home - even if you can't do anything else - before you put it on the market:

1. Maximize the Exterior and Enhance the Curb Appeal



It's just as important to beautify the exterior of your home as the inside!



Why? If Buyers don't like what they see on the outside they may not even go into your home. Don't forget, if we're not there already, we are approaching a "Buyers Market" meaning they have their pick of many homes to choose from. Make your's the one they want more than any other! Now's the time to trim overgrown trees and bushes, check the foundation, steps, walkways, walls and patios for cracks and crumbling, look for peeling paint and clean the gutters out. And if you have the space, don't forget to put a beautiful (showy) pot of colorful flowers on the front porch to welcome all Buyers and hopefully a quick sale. We know it's a lot of work, but this will pay off in the end. 

2. Maximize the Interior Appeal
Why? Buyers are not really interested in your taste in decoration (unless you happen to be an award-winning interior designer), they want to envision it as their own. Re-paint rooms in neutral tones, re-place broken stove burners, fix that loudly humming refrigerator. And also repair dripping faucets and showerheads. All of these things will distract potential Buyers away from the possibilities.You may even want to purchase pretty new towels for the bathroom, to be brought out only when prospective buyers are on the way.

3. De-Clutter and Thoroughly Clean the Home top to Bottom:
Why? Now's the time to start packing for the move to your next home. Put away all those baby pictures, graduation photos and wedding collages that mean so much to your family. You don't want Buyers to spend time looking at them, you want them to see the beautiful woodwork, the shining hard wood floors and the lovely (expensive) kitchen granite. When your "stuff" is all around they will miss out on the important features of your home. So pack away the knick knacks that you love, hide the 101 spice jars in a neatly arranged cabinet and do a "clean sweep" of all the spaces in your home. You may come to love the uncluttered life.

Good luck selling your Ready-to-List home!

Colonial Lake, A Jewel in the Center of the Holy City

Sometimes we don't know what we have until we almost loose it. Or until it's so broken or outdated.

Colonial Lake in the middle of Charleston has always just been there. A pretty, plain, peaceful place to drive or walk by, but generally not a destination. When my kids were growing up in the seventies, they loved to rollerskate on the wide walkway, fish with their PopPop and see who could race around the entire perimeter the fastest. And the great thing about Colonial Lake today is that kids of any age can still do the same things!


My son, Rob with his grandpop. Probaby about 1975.
 

And the neighborhood residents would love to keep it that way, but it may not be "plain old" Colonial Lake for long. The Charleston Parks Conservancy and the City of Charleston have just begun fundraising to transform Colonial Lake with beautiful landscaping and more seating areas where the public can enjoy this landmark downtown park.

They elicited ideas from the public as well as design consultants and the capital campaign will begin very soon. If you're a lover of our public spaces, I know you'll want to contribute. Right now the Park is beautiful in its simplicity. When the renovation is complete sometime in 2014, it will become a destination and will make us even prouder of our wonderful city.

If you would like more information about the effort, just log on to http://www.charlestonparksconservancy.org/