A qualified, competent real estate agent will help you navigate the myriad of decisions that arise when buying and selling a home. An agent provides value to the homeowner in many ways:

• Pays for all marketing and advertising costs.
• Adds experience and expertise in all aspects of the sales process including marketing, financing, negotiations and more.
• Handles all showings.
• Brings a network of known, trusted real estate professionals. If your agent doesn't have the answer, he or she likely knows someone who does.
• Always has your interests in mind so you always have someone on your side.
• Can handle and advise on all price and contract negotiations.
• Provides you with all the possible options and opportunities without holding back.
• Gives an unbiased, realistic view of your home and your options. Unlike buyers and sellers, an agent has no emotional attachment to property.
• Has the knowledge to help you ask the right questions.
• Being a third party, potential buyers are more likely to tell your agent the truth about your home, even if it is unflattering. This objective viewpoint will help you make the necessary changes to get your home sold.
• Your time is valuable. A real estate agent allows you to spend your time how you want.

What is Credit?
Credit is more than just a plastic card you use to buy things-it is your financial trustworthiness.  Good credit means that your history of payments, employment and salary make you a good candidate for a loan, and creditors-those who lend money or services-will be more willing to work with you.  Having good credit usually translates into lower payments and more ease in borrowing money.  Bad credit, however, can be a big problem.  It usually results from making payments late or borrowing too much money, and it means that you might have trouble getting a car loan, a credit card, a place to live and, sometimes, a job.

Credit Scores
Most creditors use credit scoring to evaluate your credit record.  This involves using your credit application and report to get information about you, such as your annual income, outstanding debt, bill-paying history, and the number and types of accounts you have and how long you have had them.  Potential lenders use your credit score to help predict whether you are a good risk to repay a loan and make payments on time.

Good credit is important, now and in the future.  In most cases, it takes seven years for accurate, negative information to be deleted from a credit report.  Bankruptcy information takes even longer to be deleted-10 years.

Credit scores range from 300 to 850 (Higher the score; the less risk).  Shopping around for a mortgage will not negatively affect your credit score.  Consumer-initiated mortgage inquiries are ignored for 30 days.  Outside the 30-day window, mortgage inquiries that occur within a 45-day period are treated as a single inquiry.

Credit Reports

The Fair Credit Reporting Act (FCRA) requires each of the nationwide consumer reporting agencies-Equifax, Experian and TransUnion-to provide a free credit report copy, once every 12 months, to anyone who requests.  However, they are not required to provide a FICO score at no charge, just a trade line listing.  To request a free copy of your credit report, visit www.annualcreditreport.com and choose which reporting agency you would like the report from.

You may also visit each reporting agency individually.  The information for each follows:

Equifax   1-800-685-1111   www.equifax.com

Experian   1-888-397-3742   www.experian.com

TransUnion   1-800-888-4213   www.transunion.com

Federal Trade Commission

The Federal Trade Commission (FTC) is the nation's consumer protection champion.  The FTC works for the consumer to prevent fraud, deception and unfair business practices in the marketplace.

The FTC provides the information consumers need to spot and avoid fraud and deception.  Consumers can contact the FTC for free information on a wide range of issues, including:

    * Advertising claims
    * Buying, leasing and renting cars
    * Credit
    * Debt collection
    * Employment and job placement
    * Identity Theft
    * Investment schemes
    *Online shopping
    *Scholarship scams
    *Sweepstakes
    *Telemarketing
    *Work-at-home schemes...and more

Contact the FTC at 1-877-382-4357 or www.ftc.gov

 

What Is A Home Warranty?

A home warranty is simply a policy/plan purchased by a buyer or seller as assurance against unexpected home repair costs.  A home warranty offers protection for mechanical systems and some appliances against unexpected repairs not covered by homeowner's insurance.  This coverage is valid for a certain period of time, usually one year.

Do I Need A Home Warranty?

A home warranty is similar to any other warranty or insurance policy in the fact that you may never need to use it, however; it can be a great benefit to you should you encounter an unexpected problem.

Your home systems and appliances won't last forever.  In fact, the average life expectancy of nine critical systems and appliances is 13 years, and the likelihood of failure in a given year is 68%. (Home Repair and Remodel, Marshall & Swift L.P., 2004)

Homeowners spend an average of $900 each year to repair home systems and appliances. (Consumer Expenditure Survey 2002, U.S. Census)  The cost for just one appliance or systems repair can range from $65 to $2,000, and replacement costs average $1,319. (Home Repair and Remodel, Marshall & Swift L.P., 2004) With a home warranty, you reduce the risk of these high costs.

You can protect yourself against many of these financial risks with a home warranty.  When a covered item breaks down due to normal wear and tear, you call a toll-free number the home warranty company provides to you and they send a pre-screened contractor to your home to solve the problem.  You pay the deductible (service call fee) and that is it!  They will repair or replace the item for you.  Keep in mind that most home warranties do not provide coverage for pre-existing conditions.

Which Company Should I Choose?

There are many companies to choose from and as with any purchase, researching the reputation, options, and coverage provided by a company is recommended.  Shopping around is not a bad idea either.

Prestige Home Warranty by American Home Shield is sponsored by the Illinois Association of REALTORS and provides sensible protection, affordable coverage, and reliable service.  They offer plans starting at $420.00.

Covered items may include:

Heating System, Heat Pump, Air Conditioning/Cooler, Ductwork, Plumbing System, Plumbing Fixtures, Stoppages, Electrical System, Water Heater, Range/Oven/Cooktop, Garbage Disposal, Water Softener, Ceiling Fans, Whole-House Attic Fans, Dishwasher, Built-in Microwave Oven, Trash Compactor, Built-in Central Vacuum System, Motel Expenses, Washer/Dryer Package, Sump Pump, Garage Door Opener, Permits, Removal of Existing Unit. 

Optional coverage for other items may be available for additional charges.

For additional information about American Home Shield/Prestige home warranties, visit their website at www.AHSsales.com

Clients have the opportunity to purchase or negotiate a home warranty into a sales contract.  If you have questions regarding home warranties, please let me know. 

What Clients Are Saying About Home Warranties

"We have gotten our monies worth!  We had a small problem with our furnace a few weeks ago, it went out in the middle of the night during the really cold weather.  When the repairman came out the next day, he discovered a bigger, more expensive problem.  American Home Shield is replacing the entire furnace and because we bought the "deluxe" warranty, they cover everything!  Their service has been amazing:  service calls the same day plus AHS always follows up to make sure everything was done to our satisfaction." -Greg & Tricia P., Peoria