By Jeremias Manerio

DEAR JMAN, I am in contract for the purchase of my first home. My attorney called and said I need to purchase insurance for the home prior to closing. What do I need to know about buying the insurance and how can I keep my costs down without sacrificing coverage? It is very important that when comparing insurance that it is not always apples to apples. Don’t just shop by what the cost is. You must also look at the coverage. You would never want to be in a situation where you need to use your insurance and then you find out that you don’t have enough coverage. Will you be able to rebuild your house exactly as it is right now? Is it owner occupied or is it an investment property? Are there high priced items that may NOT be covered if you don’t have a separate rider for them? Is there a finished basement in the home? And would it be covered in case of water damage due to a sump pump or pipe breaking? Is it waterfront property? Contrary to popular demand not all waterfront homes require flood insurance. There are many questions that your insurance provider should be asking in order to be sure that you are protected. You may think you are savig hundreds by going with one provider but if the coverage isn’t right or sufficient then it could cost you thousands!!!I always suggest that you talk to at least 3 different insurance providers and be sure that the coverage that your asking for is right for YOU. I have enclosed two reports. One is 5 things to understand about insurance and the other is 10 ways to lower your insurance costs. Good luck to you in your new home.

5 Things to Understand About Homeowners Insurance

Look for exclusions to coverage. For example, most insurance policies do not cover flood or earthquake damage as a standard item. These coverages must be bought separately.

Look for dollar limitations on claims. Even if you are covered for a risk, there may a limit on how much the insurer will pay. For example, many policies limit the amount paid for stolen jewelry unless items are insured separately.

Understand replacement cost. If your home is destroyed you’ll receive money to replace it only to the maximum of your coverage, so be sure your insurance is sufficient. This means that if your home is insured for $150,000 and it costs $180,000 to replace it, you’ll only receive $150,000.

Understand actual cash value. If you choose not to replace your home when it’s destroyed, you’ll receive replacement cost, less depreciation. This is called actual cash value.

Understand liability. Generally your homeowners insurance covers you for accidents that happen to other people on your property, including medical care, court costs, and awards by the court. However, there is usually an upper limit to the amount of coverage provided. Be sure that it’s sufficient if you have significant assets.

10 Ways to Lower Your Homeowners Insurance Costs

Raise your deductible. If you can afford to pay more toward a loss that occurs, your premiums will be lower.

Buy your homeowners and auto policies from the same company. You’ll usually qualify for a discount. But make sure that the savings really yields the lowest price.

Make your home less susceptible to damage. Keep roofs and drains in good repair. Retrofit your house to protect against natural disasters common to your area.

Keep your home safer. Install smoke detectors, burglar alarms, and dead-bolt locks. All of these will usually qualify for a discount.

Be sure you insure your house for the correct amount. Remember, you’re covering replacement cost, not market value.

Ask about other discounts. For example, retirees who are home more than working people may qualify for a discount on theft insurance.

Stay with the same insurer. Especially in today’s tight insurance market, your current vendor is more likely to give you a good price.

See if you belong to any groups—associations, alumni groups—that offer lower insurance rates.

Review your policy limits and the value of your home and possessions annually. Some items depreciate and may not need as much coverage.

See if there’s a government-backed insurance plan. In some high-risk areas, such as the coasts, federal or state governments may back plans to lower rates. Ask your agent.

Please email all of your Real Estate questions to JMan@JManSells.com

By Doug Bragasser

One of the most commonly asked questions that we receive from buyers regarding their home purchase concerns the condition and life expectancy of the roof. The following discussion is intended to help answer general questions regarding residential roof surfaces in Rochester.

Asphalt Shingles

The great majority of roofing on residential structures in the Rochester area is Asphalt Shingle.  The roofing actually consists of an asphalt based material that often contains fiberglass.  The surface of the shingles is coated with granular stones that give the roof color and texture, while protecting the base material.  For many years the general anticipated life expectancy of an asphalt shingle roof was approximately 20 years.  Depending on wear factors, this meant that roof surfaces were typically replaced anywhere from 15 to 25 years after installation.  In more recent years, higher grade roofs (some of which are commonly referred to as “architectural grade”) have become more the norm.  These roofs are advertised as having 25, 30 and sometimes 40 year life expectancies.  Again, depending on wear factors, this does not necessarily mean that they will last that long.

I have often explained to buyers and homeowners that as shingles age they do the same types of things that a leaf does in the fall, at a slower rate.  Specifically, the roofing slowly dries, shrinks, curls, cracks, etc.  The following four photographs clearly show the progression of roof wear.  As you can see, the shingles in the first photo are laying flat, the surface is not deteriorated and the spaces between the shingles are narrow.  In the next photo, the roofing is older.  The spacing is wider, and the shingles have begun to curl.  The third photo shows a roof that is clearly old and worn.  The shingles are quite curled, the surface is very worn and shrinkage has resulted in wide gaps between the shingles.  Lastly, the final photograph shows a roof that is extremely worn and poor.

Another question that we often hear is “when should I replace my roof”?  Surprisingly, this is mostly a matter of judgment and personal preference (and availability of money) on the part of the homeowner.  Obviously, an old roof that has begun to leak should be replaced in most cases.  However, some homeowners choose to try to obtain as much life as possible from a roof.  They will make spot repairs as needed, and will allow the roof to wear very significantly before they finally replace it.  This allows for maximum life, but it necessitates periodic repair, and it can result in damage from leakage.  On the other hand, some homeowners will replace a roof simply because it is old and it is approaching the end of its expected life.  This approach helps to prevent problems before they arise, but it necessitates the cost of replacement sooner than later.  Most roofing contractors will recommend replacement rather than repair if a roof is showing advanced stages of wear (certainly can’t fault them for that).

There are many factors that affect the life of a roof.  They can include the pitch (or slope) of the roof, the direction that it faces, surrounding trees, sunlight, lack of attic ventilation, multiple layers of roofing (thermal mass), and even the color of the roof.  As an example, steeply pitched roofs that face towards the east will tend to provide more life than a low pitched roof that is exposed to hours of mid-day sun from the south/west.  One reason that we as inspectors/engineers pay so much attention to proper ventilation of attic spaces is that proper ventilation can help to prevent premature wear of the roof surface.

Low Pitched Roofs

Speaking of pitch, Asphalt shingle roofs rely on pitch or slope to drain.  Roof surfaces that have a lower pitch are more likely to experience leakage.  Roofs with a slope of less than 3/12 (3 feet of rise for every 12 feet of horizontal run) can be especially prone to leakage with asphalt shingles.  For this reason, alternate roofing materials are encouraged, or even necessary.  Roofs that have a pitch of less than 2/12 should not be covered with shingles.  Rolled asphalt is an alternative, but it is not the material of choice for low pitched or flat roofs.  Instead, good quality membrane roofing is strongly encouraged.  Such roofs should be installed by qualified specialists who are familiar with this type of roof.  The following picture shows a rubber membrane roof.

Roof Warranties

One must be mindful that roof warranties tend to be limited.  It is our experience that they oftentimes only apply to the homeowner who purchased the roof (they may not transfer to a future owner). Also, they tend to lose their value quickly.  In other words, a “30 year roof” that fails after 15 years does not necessarily result in a 50% refund on the cost of materials.  Also, most homeowners don’t realize that if their roof has been installed as a third layer or if the attic is not properly ventilated, the warrantee from the shingle manufacturer may be void.

Number of layers

For years the general practice in this area “allowed” for as many as three layers of roofing at a given time.  Four layers were not unusual.  The building code did not specify a maximum number of layers.  That has changed.  8 years ago the New York State code was revised.  It is no longer permissible to apply a third layer of roofing on a house.  There can be no more than two layers.  Also, it is not permissible to install a layer of asphalt shingles over wood shingles.

Many houses in the Rochester area that were constructed prior to around 1940 still have the original layer of wood shingle roofing.  Whether wood shingles are still present in an older house can be easily determined by looking at the bottom of the roof from the attic.  If there are wood shigles when a new roof is needed, it becomes necessary to remove all existing roofing and re-sheath (install plywood sheathing) the roof prior to the installation of the new roof.  This can be costly.  It is not unusual for roofing contractors to charge $300 – $400 per square for these jobs.  A “square” is 100 square feet of material.  An average house might have 20 – 30 squares on its roof.  As you can see, these roof jobs cost many thousands of dollars.

Ice Dams

Mother Nature can sometimes be cruel to us in the winter.  Ice dams can result when we experience long periods of sub freezing temperatures along with frequent snow falls.  The absence of a few periods of thawing temperatures during the winter months allows for ice and snow to collect on roofs, mostly on the roof eaves.  The winter of 2003-2004 was especially troublesome.   Low pitched roofs (and especially valleys) are more prone to ice build-up.  This ice eventually creates a “dam”, preventing the roof from draining.  Water will then back up under the roof, causing leakage.  Even a roof in very good condition can experience leakage from ice damming if the conditions are right, OR WRONG!  Providing proper insulation and ventilation in the roof can greatly minimize the possibility of ice damming.  For this reason, homeowners should not “skimp” when roof replacement is undertaken.  The proper steps should also be taken to provide good ventilation.  Also, “ice and water” shield should be utilized under the roofing in potentially troublesome areas.  This is a continuous barrier of rolled material that is placed on the roof, beneath the roofing.

Alternate Roofing Materials

Slate, Mission Tile, cement tile, Wood Shake and Metal roofs are also scattered around the Rochester area.  These are specialized roofing materials which can provide decades of dependable life.  Slate and Tile roofs can last for many generations if maintained properly.  They require periodic repair and regular maintenance and they are expensive to install.  Having an experienced roofing contractor regularly (annually) perform inspection and repairs can prolong the useful life of these roofing surfaces.  These specialized types of roofing are often the material of choice for Rochester’s more architecturally significant houses from years past.

I trust that this relatively brief summary of roofing provides some beneficial information for you to use in your day-to-day business.  As is always the case, please do not hesitate to contact our office if we can answer any questions for you or be of any assistance.  We stand ready and willing to provide you and your clients with the best home inspection and consulting service in Rochester.  Also, please feel free to suggest future topics for our Newsletter.

By Carolyn Stiffler

During the 2011 Fall Business Meetings, the New York State Association of REALTORS® (NYSAR) officially launched its REALTOR® video contest.  NYSAR is asking members to produce a video promoting the value of using a New York State REALTOR®.  The video must be no longer than three minutes in length and should not contain any office or broker branding.  The NYSAR logo and the REALTOR® ‘R’ can be included.  The deadline to submit a video is December 21, 2011.

The videos will be voted on by a panel of judges.  The first price winner will receive a $500 American Express gift card, second place will receive a $300 gift card and third place will receive a $200 gift card.  Winners will be announced during the 2012 Mid-Winter Business Meetings in February.

State of New York Mortgage Agency updates loan programs

The State of New York Mortgage Agency (SONYMA) has made some changes to its Down Payment Assistance Loan (DPAL).  If a buyer chose this loan in the past, with two exceptions, their interest rate would be .5 percent higher than without.  SONYMA has decreased this to .376 percent.  The maximum down payment assistance loan has been increased by $5,000, making the DPAL the greater of $3,000 or 3 percent, not to exceed $15,000 (previously $10,000).  This is especially helpful for homebuyers where the median sales price of homes tends to be higher than other areas.

On July 6, SONYMA increased its household income and purchase price limits for all programs and options.  The increase varies by county.  The purchase price limits for new and existing single family homes increased to $301,920 for targeted areas and $247,030 for non-targeted areas for the nine counties in the Greater Rochester and Finger Lakes region.  The household income limits also increased in our region to $84,480 (targeted)/$70,400 (non-targeted) for one and two person households and to $98,560 (targeted)/$80,960 (non-targeted) for three or more person households.

For full details on SONYMA’s programs and options, visit  www.nyhomes.org.

By Jermias Maneiro

Dear JMan, I am thinking of waiting until Spring to list my house. Should I list now in the fall or wait? While Spring may bring more buyer activity it also brings more inventory. There are many sellers who are also waiting to put their properties on the market and have spent all winter improving the condition to make the properties as good as they can be. This makes listing in the Fall/Winter have many advantages. There are less homes on the market which means less competition plus a lower amount of new listings hitting the market. You could be the new “shiny” penny. The showing activity will be less but it’s quality vs. quantity here. A buyer that is out looking in Rochester’s winter weather is the epitome of a motivated buyer. The choice is yours but whatever you decide here are some tips of things to do before you sell, tips to make it more salable and tips to speed up your sale. Good luck.

5 Things To Do Before You Sell

• Get estimates from a reliable repairperson on items that need to be replaced soon, such as a roof or worn carpeting, for example. In this way, buyers will have a better sense of how much these needed repairs will affect their costs.

• Have a termite inspection to prove to buyers that the property is not infested.

• Get a pre-sale home inspection so you’ll be able to make repairs before buyers become concerned and cancel a contract.

• Gather together warranties and guarantees on the furnace, appliances, and other items that will remain with the house.

• Fill out a disclosure form provided by your sales associate. Take the time to be sure that you don’t forget problems, however minor, that might create liability for you after the sale.

10 Ways to Make Your House More Saleable

• Get rid of clutter. Throw out or file stacks of newspapers and magazines. Pack away most of your small decorative items. Store out-of-season clothing to make closets seem roomier. Clean out the garage.

• Wash your windows and screens to let more light into the interior.

• Keep everything extra clean. Wash fingerprints from light switch plates. Mop and wax floors. Clean the stove and refrigerator. A clean house makes a better first impression and convinces buyers that the home has been well cared for.

• Get rid of smells. Clean carpeting and drapes to eliminate cooking odors, smoke, and pet smells. Open the windows.

• Put higher wattage bulbs in light sockets to make rooms seem brighter, especially basements and other dark rooms. Replace any burnt-out bulbs.

• Make minor repairs that can create a bad impression. Small problems, such as sticky doors, torn screens, cracked caulking, or a dripping faucet, may seem trivial, but they’ll give buyers the impression that the house isn’t well maintained.

• Tidy your yard. Cut the grass, rake the leaves, trim the bushes, and edge the walks. Put a pot or two of bright flowers near the entryway.

• Patch holes in your driveway and reapply sealant, if applicable.

• Clean your gutters.

• Polish your front doorknob and door numbers.

5 Ways to Speed Up Your Sale

• Price it right. Set a price at the lower end of your property’s realistic price range.

• Get your house market-ready for at least two weeks before you begin showing it.

• Be flexible about showings. It’s often disruptive to have a house ready to show on the spur of the moment, but the more often someone can see your home, the sooner you’ll find a BUYER.

• Be ready for the offers. Decide in advance what price and terms you’ll find acceptable.

• Don’t refuse to drop the price. If your home has been on the market for more than 30 days without an offer, be prepared to lower your asking price OR improve your condition.