Insurers look to your credit history to calculate an insurance score that’s used to judge how much of a financial risk you are. The lower the score, the higher the risk—and the higher the premium you’ll likely pay on your homeowners insurance. Don’t despair. There are strategies, including paying bills on time, that can help improve your insurance score.

Good credit pays off

Wondering what too many credit cards has to do with the limb that landed on your roof? More than you’d think, it turns out. Several studies have found that your credit history is a good indicator of how often you’re likely to file an insurance claim. Because more claims translate into more expense for insurance companies, homeowners with low insurances scores tend to be charged higher premiums.

Insurers claim the use of credit-based insurance scores is fair and actually works in favor of fiscally responsible consumers. A 2006 study found that 53% of Oregon policyholders paid lower premiums on homeowners insurance thanks to credit-based insurance scores. ECONorthwest, the group that conducted the research, estimated the average annual savings for policyholders nationwide at $60.

How your insurance score is calculated

Your insurance score starts with your credit report, a history of your credit use. What credit cards and loans do you have? What are the balances? How promptly do you pay? Your report also includes information gleaned from public records such as bankruptcies and liens. FICO is the best-known company that turns the information in credit reports into credit scores. FICO credit scores range from 300 to 850.

Insurers are less concerned than lenders about your ability to pay back a specific amount than your overall ability to manage money, says Allstate spokesman Adam Shores, especially whether you make late payments and how long since delinquencies took place. Your insurance claims history, as recorded in your CLUE report, also affects your insurance score. So can your age, the construction of your house, and whether you’ve installed smoke detectors and other safety equipment.

All of these data are crunched to come up with a numerical insurance score. This is where it gets tricky for homeowners. There isn’t a single source for insurance scores, and your insurer probably won’t tell you your score even if you ask. Some insurers employ proprietary formulas. Others use insurance scores calculated by companies like FICO and ChoicePoint, the latter of which will sell you your score for $12.95. ChoicePoint’s Attract insurance scores can range from 200 to 997, with a score over 776 considered good.

Ways to raise your score

The most effective way to raise your insurance score is to improve your credit score. You’re entitled to free copies of your credit reports annually from the major credit bureaus: Equifax, Experian, and TransUnion. Order them and look for errors: Is your Social Security number correct? Are all the debts and credit cards yours? Do the balances jibe with your records? Errors can be disputed online.

If the information on your credit report is correct, there are still things you can do to improve your score. Paring down balances on credit cards is a big plus. Paying bills by the due date is another major factor, accounting for 35% of a FICO credit score. Time is also on your side. Most late payments are removed from your credit report after seven years. A few major problems such as a bankruptcy may stay on for a decade or more.

Audits identify a mixture of major and minor air leaks. So if you’re budget-minded, you might opt for inexpensive fixes like adding caulk or insulation at leak points and installing weather-stripping. If you’re embarking on a remodel, you can make bigger investments, such as adding insulation.

The question is whether to hire a pro or conduct a free do-it-yourself audit guided by online tips. There are pros and cons to either approach.

Paying for a pro

Professional audits aren’t cheap: They run from $150 (visual) to $400-$600 or more (diagnostic). But the information they reveal can help you make targeted repairs that lower energy bills by 5% to 30% annually, according to the U.S. Department of Energy’s office of Energy Efficiency and Renewable Energy. With energy bills averaging about $2,200 annually, according to Energy Star, following an auditor’s recommendations could save you up to $660 within a year.

Paying for an audit may not make sense if you have a newly-constructed home, which likely follows the most up-to-date building codes. Energy audits should also take a back seat to urgent home issues that compromise safety, such as old or faulty electrical or structural issues, like roof or foundation problems. So if you own a fixer-upper, it’s worth addressing safety issues before optimizing energy issues.

DIY audits

A do-it-yourself audit may help you make an educated guess about how airtight your home is—or isn’t—and point you toward fixes. A typical DIY test: Hold up a lit candle to windows, doors, and electrical outlets to see if a draft blows the flame.

But be aware that when you fix a problem you uncover yourself, you could err. For instance, you might pay for new windows when you need to insulate existing window frames instead. You could also over-seal your home, creating indoor air quality issues (dirty air, mold) that compromise your health.

Services of a professional audit

Pro audits give you access to high-tech tools that pinpoint the exact location of duct leaks; exactly how airtight your home is (and should be according to local code); gas leaks; and which direction drafts are blowing. Draft direction can alert an auditor that your attic is greedily sucking up your warm air, for instance. They also ferret out drafts between insulated and less-insulated (garage, basement/crawlspace, attic) portions of a home and assess the performance of heating and cooling systems.

Two types of professional audit

A visual inspection (like a home inspection, but focused narrowly on energy issues) might be sufficient if you have semi-finished or exposed spaces (unfinished basements, exposed ducts, crawlspaces, and attics). A diagnostic inspection includes visual work, but also employs tools and devices to pinpoint air leaks.

• Blower door tests use high-powered fans to depressurize a home so that a technician can measure draft levels.

• Thermal or infrared scanning measures surface temperature variations along walls to spot exact locations of air leaks or insulation lapses.

• Smoke puffers release a form of “dust” during a blower door test to reveal the direction drafts are blowing.

• Duct blasters inject and measure air pressure, air flow, and leakage in ducts.

• Gas leak detection devices help assess indoor air quality.

These technologies provide far more specific information about a home’s issues than a typical DIY audit.

Common energy issues

A technician should be able to tell you how much total air leakage exists in your home (10 sq. ft. is like having a door open all the time), where it comes from, and how best to address it, says Robert Stockmann, of Pinnacle Home Inspections in Bellingham, Wash. The most common issues he finds are:

• Ducts in uninsulated areas (crawlspaces, attics, unfinished basements), which need cleaning, insulation, re-sealing

• Moisture in crawl spaces and basements

• Air that’s entering or exiting the home via range hoods, attic trap doors, and poorly sealed doors

Hire an auditor, smartly

Energy audit is a loose term these days, so when hiring an auditor, ask questions. Make sure the auditor doesn’t work for a window company; has a professional affiliation with or training from an auditing organization such as RESNET or the Building Performance Institute; and can provide a written report. If you need diagnostic advice, ask if the auditor can use tools that assess what’s going on behind walls and inside ducts. Your local utility company may offer audits or be able to recommend auditors.

Because an audit is a precursor to further spending for repairs, if your DIY audit indicates you need extensive, expensive, or hard-to-do repairs, consider a paid audit as a kind of second opinion. Likewise, any paid audit that indicates you need only minor fixes may seem unnecessary—but if you consider that small fixes may keep you from overspending on major ones, the money may be worth it.

Jane Hodges has written about real estate for publications including MSNBC.com, Seattle Magazine, and The Seattle Times. In 2007, she won a Bivins Fellowship from the National Association of Real Estate Editors to pursue a book on women and real estate. Her work has also appeared in The New York Times, CBS’s BNET, and Fortune. She lives in Seattle in a 1966 raised rancher with an excellent retro granite fireplace. Latest home project: Remodeling a basement bathroom.

2. Appreciation. Real estate has long-term, stable growth in value. While year-to-year fluctuations are normal, median existing-home sale prices have increased on average 6.5 percent each year from 1972 through 2005, and increased 88.5 percent over the last 10 years, according to the NATIONAL ASSOCIATION OF REALTORS®. In addition, the number of U.S. households is expected to rise 15 percent over the next decade, creating continued high demand for housing.
3. Equity. Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.

4. Savings. Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.

5. Predictability. Unlike rent, your fixed-mortgage payments don’t rise over the years so your housing costs may actually decline as you own the home longer. However, keep in mind that property taxes and insurance costs will increase.

6. Freedom. The home is yours. You can decorate any way you want and benefit from your investment for as long as you own the home.

7. Stability. Remaining in one neighborhood for several years gives you a chance to participate in community activities, lets you and your family establish lasting friendships, and offers your children the benefit of educational continuity.

At the event, our team will camp out overnight and take turns walking around the track to raise money and awareness to help the American Cancer Society create a world with less cancer and more birthdays.

Saving lives from cancer starts one team, one participant, and one dollar at a time. Our team is doing our part to make sure that new treatments continue to be found.

Please join our team or make a donation. The impact we can make together is much greater than what any of us could do alone!

What is Relay For Life?

The American Cancer Society Relay For Life is a life-changing event that gives everyone in communities across the globe a chance to celebrate the lives of people who have battled cancer, remember loved ones lost, and fight back against the disease. At Relay, teams of people camp out at a local high school, park, or fairground and take turns walking or running around a track or path. Each team is asked to have a representative on the track at all times during the event. Because cancer never sleeps, Relays are overnight events up to 24 hours in length.

Although every Relay For Life is different, there are certain traditions at all Relays, no matter where they are held. These traditions help participants celebrate, remember, and fight back

How can you help?

Donate to our team at

Law enforcement officers, pre-Kindergarten through 12th grade teachers and firefighters/emergency medical technicians can contribute to community revitalization while becoming homeowners through HUD’s Good Neighbor Next Door Sales Program. HUD offers a substantial incentive in the form of a discount of 50% from the list price of the home. In return you must commit to live in the property for 36 months as your sole residence.

HOW IT WORKS

Eligible Single Family homes located in revitalization areas are listed exclusively for sales through the Good Neighbor Next Door Sales program. Properties are available for purchase through the program for five days.

Who Can Participate

Law Enforcement

You may participate in the Good Neighbor Next Door program as a law enforcement officer if you are employed full-time by a law enforcement agency of the federal government, a state, a unit of general local government, or an Indian tribal government; and, in carrying out such full-time employment, you are sworn to uphold, and make arrests for violations of, federal, state, tribal, county, township, or municipal laws.

Teachers

You may participate in the Good Neighbor Next Door program as a Teacher if you are employed as a full-time teacher by a state-accredited public school or private school that provides direct services to students in grades pre-kindergarten through 12. In addition, the public or private school where you are employed as a teacher must serve students from the area where the home you are purchasing is located in the normal course of business.

Firefighter/Emergency Medical Technicians

You may participate in the Good Neighbor Next Door program as a Firefighter/Emergency Medical Technician if you are employed full-time as a firefighter or emergency medical technician by a fire department or emergency medical services responder unit of the federal government, a state, unit of general local government, or an Indian tribal government serving the area where the home is located.

Contact one of our agents today if you would like more information, or to see if you might qualify.   We will be able to refer you to a qualified Mortgage lender educated in the program

A HUD home is a 1-to-4 unit residential property acquired by HUD as a result of a foreclosure action on an FHA-insured mortgage. HUD becomes the property owner and offers it for sale to recover the loss on the foreclosure claim.

Who Can Buy a HUD Home?

Almost anyone! If you have the cash or can qualify for a loan (subject to certain restrictions) you may buy a HUD Home. HUD Homes are initially offered to owner-occupant purchasers (people who are buying the home as their primary residence). Following the priority period for owner occupants, unsold properties are available to all buyers, including investors.

Why buy a HUD home?

HUD homes can be a very good deal. When someone with a HUD insured mortgage can’t meet the payments, the lender forecloses on the home; HUD pays the lender what is owed; and HUD takes ownership of the home. Then they sell it at market value as quickly as possible.

Contact Avalar Advantage Real Estate today and discuss buying a HUD home with one of our agents today!

5 Things to do Before Putting Your Home on the Market

1. Have a pre-sale home inspection. Be proactive by arranging for a pre-sale home inspection. An inspector will be able to give you a good indication of the trouble areas that will stand out to potential buyers, and you’ll be able to make repairs before open houses begin.

2. Organize and clean. Pare down clutter and pack up your least-used items, such as large blenders and other kitchen tools, out-of-season clothes, toys, and exercise equipment. Store items off-site or in boxes neatly arranged in the garage or basement. Clean the windows, carpets, walls, lighting fixtures, and baseboards to make the house shine.

3. Get replacement estimates. Do you have big-ticket items that are worn our or will need to be replaced soon, such your roof or carpeting? Get estimates on how much it would cost to replace them, even if you don’t plan to do it yourself. The figures will help buyers determine if they can afford the home, and will be handy when negotiations begin.

4. Find your warranties. Gather up the warranties, guarantees, and user manuals for the furnace, washer and dryer, dishwasher, and any other items that will remain with the house.

5. Spruce up the curb appeal. Pretend you’re a buyer and stand outside of your home. As you approach the front door, what is your impression of the property? Do the lawn and bushes look neatly manicured? Is the address clearly visible? Are pretty flowers or plants framing the entrance? Is the walkway free from cracks and impediments?

Are you educated on the requirements(do’s/dont’s/must-haves) of selling or buying real estate? Do you know where to find answers to questions you may have on a property? Do you enjoy sorting through spam in your e-mail, or filtering telemarketing calls? How about filling out piles of paperwork, conducting endless hours of research? If you answered ‘No’ to any of those questions, you might want to consider hiring a Real Estate Agent.

My job as a Real Estate Agent, is to keep things simple. To help with your buying or selling needs and make sure everything goes as smooth as possible. To make sure you’re getting exactly what you looking for and expecting and that there are little to no surprises. Let me handle the stress, paperwork, legwork and research of buying or selling a property. Just try to sit back, relax and enjoy your experience.

Please click to read about the 10 Reasons to hire a Real Estate Agent

What is a short sale?

So you’ve been searching for your new home on www. avalarnh.com and found a great home.  You look at all of the pictures,  and get “super-excited” to show everyone.  But then you read the description about the house and start to a few questions.

The description reads, “Great house, home offers 3 large bedrooms, 2 full bathrooms, SS appliances, and wonderful hardwood floors.  Subject to third party approval, Short sale“.

Short sale, what the heck is that?

A short sale is a sale of real estate in which the sale proceeds fall short of the balance owed on the property’s loan. It often occurs when a borrower cannot pay the mortgage loan on their property, but the lender decides that selling the property at a moderate loss is better than pressing the borrower. Both parties consent to the short sale process, because it allows them to avoid foreclosure, which involves hefty fees for the bank and poorer credit report outcomes for the borrowers.

Is a Short Sale the right purchase for  every home buyer?  The short answer is “NO”.  A Short Sale may not be the right decision for everyone.  Often times the process can take anywhere from 60 to 180 days from beginning to end.  What does that mean?  That means a lot of waiting for an answer from the bank.

If your current purchasing time frame will allow you to wait for the bank to allow the short sale, then yes, the Short Sale may be a great option for you.  Often times a buyer does not have an obligation to move in any particular time frame, and can simply “wait out” the banks decision.  These buyers will find that the benefits of wait for a short sale approval far out weigh a traditional purchase.  WHY? Because most the time the buyer is able to purchase a property  below fair market value that they may not have been able to afford had it been a traditional sale.

It is very important that when entering into a contract to purchase a Short Sale, you have the representation of a BUYER AGENT.  A Buyer Agent will help guide you through the process, and help answer any questions you may have along the way.

For more information regarding Short Sales, contact our office and one of our agents would be more than happy to assist you.

In today’s current real estate market, it’s more important than ever that your agent has a marketing plan.

The days of listing a home for sale and only placing a sign in the front yard are long gone.  Homes for sale in today’s market need to be marketed and sold to buyers.  A good agent will form a powerful team with his or her clients that makes it possible for them to have a smooth, stress-free transaction.

A good agent will be up-front with his or her clients and set an expectation as to how, when, and where the listing will be advertised and marketed.  There are many avenues agents can use to market a home.  Most agents will use a steady stream of web advertising, coupled with hyper local  print advertising materials.  The mark of a good agent is how he or she puts all of this together and creates a proven marketing plan for your home.

With every analysis of a home, I provide to potential clients a detailed marketing plan and strategy.  This strategy will detail how your home will not only be marketed to potential buyers, but also agents within the local market.  It’s not only the buyers you have to sell your house to, it’s also the agents that are representing those buyers.  If the agents do not know your home is for sale, and the great amenities it offers, their buyers will not know.

Part of my marketing plan will include, but is not limited to:

• A comprehensive analysis of the current, local market conditions
• hyper local print advertising
• website advertising (www.billsomerset.com ,  www.avalarnh.com etc…..)
• social media advertising (Facebook, Twitter, linked-in)
• Local MLS placement and advertising
• yard sign and directional signs
• open houses
• office advertising slide shows
• virtual tours
• and a whole lot more……..!!!!!!!

For more information on how Avalar Advantage Real Estate and Bill Somerset can effectively market and sell your home, call the office at 603-948-1600.  Bill Somerset can be reached at 603-948-1600 x112 or email, bill@avalarnh.com

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