One of the first stages during the hunt for a new home is crunching the numbers to figure out your budget. And no matter how high or low that budget may be, prospective homebuyers should take into consideration the cost of insuring the home.

It's easy to overlook insurance, especially since you may be more worried about the number of bedrooms, the school district, or the size of the backyard. But before you can close on the purchase, your lender will require you to line up homeowners insurance. You may be hit with some sticker shock if the home you are about to buy ends up being a high risk- and therefore high cost- home to insure.

Once you’ve got a few homes in your sight, you should get some preliminary home insurance quotes on each property. Just as you will compare asking price and property taxes- figure your insurance costs into the equation as well. Even homes of similar size and style can vary greatly in terms of cost to insure.

Here are a few lesser known home features that affect insurance costs:

Location- The location of a home will have a huge impact on the insurance premiums due to the proximity to a fire station, the fire station ratings and the flood zone it’s located in.

• When you shop for homeowners insurance you will be asked how close the home is to a fire hydrant and to a fire station. In the event of a fire, the quicker the fire department can respond to the home, the less damage will be incurred. The average claim for a residential fire exceeds $33,000, according to the Insurance Information Institute (III). Therefore insurers typically charge lower premiums for homes within a close proximity of each.
• Fire stations in each community each have a specific fire protection class rating which also affects the home insurance premiums on a home.
• Last but certainly not least, the specific type of flood plain that a home is located in may require you to carry a separate flood insurance policy in order to obtain a mortgage. Flood insurance is recommended for all properties, however, in certain high-risk flood plains a flood insurance policy is not only required- but the coverage could double your annual insurance spend.

Roofing- Ask your realtor about the home's roof. You'll want to know how old it is and the material it's made of. Roofs that are 20 or more years old can be considered high risk and may be expensive to insure. Replacing a roof also can be costly so you'll want to weigh the pros and cons. Newer roofs, built with impact-resistant material, are ideal. These roofs are made to withstand nature's harshest elements, and they can also qualify homeowners for more preferred home insurance policies.

Swimming Pool- You might be looking specifically for a house with a pool but you should know swimming pools can drive up your insurance premiums. Accidents frequently happen in and around pools so insurance companies see them as a high-risk home feature. Remember, you can be held liable even if a trespasser has an accident at your pool. For this reason, homes with swimming pools located on the property should meet all local safety codes and carry high limits of liability coverage.

Age- The age of the home can also affect your premium. Typically older homes have outdated electrical wiring and plumbing systems, which can lead to fires or water damage. If you are considering an older home, ask your realtor the age of the plumbing, HVAC and electrical systems. If they have been updated in recent years, this is important to note with your insurance agent. If not, make sure you know what this may cost you in additional premiums and to upgrade in the future.

Security equipment- Security equipment is a plus for obvious reasons- items such as burglar alarms, deadbolt locks, and smoke alarms can make your home a safer environment. In addition, insurance providers offer discounts for homes featuring these items. In fact, you could save 10% or more on your premium. Take note of the types of safety devices in the homes you are comparing so you can get accurate discounts figured into your insurance rates.

You likely won't make a decision on a house because of insurance factors alone. But it's best to have an idea of where you stand as you consider your options. Start by checking out average home insurance rates in your state. Then work with an agent you can trust to compare quotes on various properties. An educated search can help you find the home of your dreams and home insurance premiums that won't break the bank.

Happy Veteran's Day!!

Asking Prices Slowing Down

Asking Prices Slowing Down, But Rise Year Over Year
In October, asking prices for homes listed for sale increased 0.6 percent month-over-month, the second-slowest monthly gain in seven months, according to Trulia’s latest Price Monitor report. This continued slowdown in asking prices is largely due to expanding inventory, rising mortgage rates, and declining investor activity. Asking prices could potentially slow further if consumer confidence suffers from the ongoing budget uncertainty and future shutdown and debt-default worries. Nevertheless, the monthly, quarterly, and yearly gains are all still high compared with historical norms. In fact, asking prices rose 11.7 percent year-over-year – the highest increase since the housing bubble burst.

What Buyers Don't Want

The Importance Of Curb Appeal

Buyer Optimism is Way Up!!

Higher interest rates, economic uncertainty cool California home sales and prices in September

LOS ANGELES (Oct. 17,2013) – California home sales declined for the second straight month in September, following rising interest rates and economic uncertainty, which put the demand for housing on hold for buyers.  Meanwhile, housing supply conditions continued to loosen up as the housing market entered its off season, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported.

“It’s encouraging that housing inventory has been steadily improving since May, when housing supply hit its recent bottom,” said C.A.R. President Don Faught.  “While inventory remains constrained in the lower-priced home segment and primary home buyers continue to compete with investors, the number of properties for sale overall has been rising since March 2013 and is at its highest level since mid-2012.”

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 412,880 units in September, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide.  Sales in September were down 5.1 percent from a revised 434,910 in August and down 2.6 percent from a revised 424,000 in September 2012.  The statewide sales figure represents what would be the total number of homes sold during 2013 if sales maintained the September pace throughout the year.  It is adjusted to account for seasonal factors that typically influence home sales.

The median home price declined in September for the first time since February but was still higher on a year-to-year basis.  The statewide median price of an existing, single-family detached home was down 2.8 percent from August’s median price of $441,330 to $428,810 in September.  September’s price was 24.4 percent higher than the revised $344,760 recorded in September 2012, marking the 15th straight month of double-digit annual gains.  The median sales price is the point at which half of homes sold for more and half sold for less; it is influenced by the types of homes selling as well as a general change in values.

“The debate leading up to the expected tapering of the Fed’s stimulus program caused interest rates to rise over the past several months and might have put some of the housing demand on hold,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young.  “While interest rates have decreased since the Fed’s decision last month to postpone the pullback, the government shutdown and debt ceiling discussions over the past two weeks are likely to have an adverse effect on October home sales.”

Other key facts of C.A.R.’s September 2013 resale housing report include:

• The available supply of existing, single-family detached homes for sale rose in September to 3.6 months, up from August’s Unsold Inventory Index of 3.1 months. The index was 3.7 months in September 2012.  The index indicates the number of months needed to sell the supply of homes on the market at the current sales rate.  A six- to seven-month supply is considered typical in a normal market.

• The median number of days it took to sell a single-family home also increased to 29.6 days in September from 28.8 days in August, but was down from a revised 39.2 days in September 2012.

• Mortgage rates have been on the rise for the past five months, with the 30-year, fixed-mortgage interest rate averaging 4.49 percent, up from 4.46 percent in August 2013 and up from 3.47 percent in September 2012, according to Freddie Mac.  Adjustable-mortgage interest rates in September averaged 2.67 percent, up from 2.65 in August and up from 2.60 percent in September 2012.

Charts:

• Unsold Inventory by price range.
• Change in sales by price range.
• Share of sales by price range.

Note:  The County MLS median price and sales data in the tables are generated from a survey of more than 90 associations of REALTORS® throughout the state, and represent statistics of existing single-family detached homes only.  County sales data are not adjusted to account for seasonal factors that can influence home sales.  Movements in sales prices should not be interpreted as changes in the cost of a standard home.  The median price is where half sold for more and half sold for less; medians are more typical than average prices, which are skewed by a relatively small share of transactions at either the lower-end or the upper-end. Median prices can be influenced by changes in cost, as well as changes in the characteristics and the size of homes sold.  Due to the low sales volume in some areas, median price changes may exhibit unusual fluctuation. The change in median prices should not be construed as actual price changes in specific homes.

Leading the way…® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States with more than 155,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

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September 2013 County Sales and Price Activity
(Regional and condo sales data not seasonally adjusted)

September-13 Median Sold Price of Existing Single-Family Homes Sales
State/Region/County Sep-13 Aug-13 Sep-12 MTM% Chg YTY% Chg MTM% Chg YTY% Chg
CA SFH (SAAR) $428,810 $441,330 $344,760 r -2.8% 24.4% -5.1% -2.6%
CA Condo/Townhomes $344,210 $343,400 $264,800 r 0.2% 30.0% -14.7% 13.4%
Los Angeles Metro Area $390,800 $394,550 $318,470 -1.0% 22.7% -13.5% -0.8%
Inland Empire $252,100 $245,330 $198,270 2.8% 27.1% -15.4% -1.7%
S.F. Bay Area $687,260 $704,830 $554,450 -2.5% 24.0% -15.9% 3.6%
S.F. Bay Area
Alameda $640,340 $654,060 $491,670 -2.1% 30.2% -20.8% 11.8%
Contra-Costa (Cty.) $770,450 $808,560 $655,340 -4.7% 17.6% -15.2% 4.8%
Marin $893,140 $987,740 $769,230 -9.6% 16.1% -14.7% 10.7%
Napa $477,270 $565,970 $381,670 -15.7% 25.0% -8.5% -1.8%
San Francisco $858,330 $871,480 $678,080 -1.5% 26.6% -15.6% 12.9%
San Mateo $908,000 $980,000 $779,000 -7.3% 16.6% -18.5% 4.9%
Santa Clara $778,000 $805,000 $650,000 -3.4% 19.7% -10.9% 3.9%
Solano $286,220 $295,890 $196,980 -3.3% 45.3% -16.8% -12.5%
Sonoma $455,850 $453,790 $368,590 0.5% 23.7% -19.9% -2.3%
Southern California
Los Angeles $459,020 $444,950 $373,020 3.2% 23.1% -10.2% 1.3%
Orange County $672,680 $664,580 $561,830 1.2% 19.7% -15.9% -1.6%
Riverside County $293,560 $290,030 $228,900 1.2% 28.2% -12.8% -5.6%
San Bernardino $185,860 $183,240 $150,090 1.4% 23.8% -19.2% 5.4%
San Diego $490,130 $482,470 $404,880 1.6% 21.1% -20.5% -6.2%
Ventura $550,000 $555,560 $432,790 -1.0% 27.1% -15.9% -6.1%
Central Coast
Monterey $422,500 $407,000 $330,000 3.8% 28.0% -1.8% -1.8%
San Luis Obispo $495,350 $477,420 $424,390 3.8% 16.7% -19.9% -4.2%
Santa Barbara $692,930 $625,000 $415,380 r 10.9% 66.8% -8.1% 18.2%
Santa Cruz $639,500 $629,000 $560,000 1.7% 14.2% -17.1% -13.6%
Central Valley
Fresno $185,830 $184,000 $159,130 1.0% 16.8% -13.0% 0.3%
Glenn $134,000 $135,000 $163,330 -0.7% -18.0% 16.7% 31.3%
Kern (Bakersfield) $195,000 $199,400 r $150,000 -2.2% 30.0% -6.1% 3.2%
Kings County $168,460 $184,000 $156,670 -8.4% 7.5% -3.5% 25.8%
Madera $190,000 $170,000 $120,000 11.8% 58.3% -40.5% -26.7%
Merced $178,570 $155,880 $138,570 14.6% 28.9% -11.2% -3.1%
Placer County $365,290 $361,830 $308,590 1.0% 18.4% -8.2% 1.6%
Sacramento $255,390 $257,660 $180,830 -0.9% 41.2% -12.6% -4.5%
San Benito $428,950 $387,000 $311,000 10.8% 37.9% -24.0% -22.4%
San Joaquin $242,370 $231,390 $179,780 4.7% 34.8% -4.6% 1.0%
Stanislaus $194,890 $203,120 $151,500 -4.1% 28.6% -15.7% -2.4%
Tulare $163,500 $158,460 $137,060 r 3.2% 19.3% -4.7% -12.3%
Other Counties in California
Amador $252,780 $211,110 r $196,670 19.7% 28.5% -13.5% -10.0%
Butte County $250,000 $281,820 $207,140 -11.3% 20.7% -24.2% -6.0%
Calaveras $215,500 $220,000 NA -2.0% NA -16.5% NA
Del Norte $136,500 $100,000 NA 36.5% NA 33.3% NA
El Dorado County $334,900 $355,840 $279,170 -5.9% 20.0% -20.3% -12.4%
Humboldt $251,090 $247,220 $223,610 1.6% 12.3% 5.3% 33.7%
Lake County $150,000 $153,330 $146,670 -2.2% 2.3% -20.5% 0.0%
Tuolumne $207,690 $215,280 $155,710 -3.5% 33.4% -6.8% 4.6%
Mendocino $285,710 $276,670 $211,360 3.3% 35.2% -50.0% -27.7%
Shasta $190,500 $203,650 $166,670 -6.5% 14.3% -30.0% -8.8%
Siskiyou County $155,000 $140,000 $140,000 10.7% 10.7% -4.3% 46.7%
Sutter $204,700 $202,000 NA 1.3% NA -1.3% NA
Tehama $150,000 $146,670 $127,500 2.3% 17.6% -20.6% -22.9%
Yolo $331,030 $320,310 $238,890 3.3% 38.6% -27.7% -17.6%
Yuba $170,000 $186,000 NA -8.6% NA -11.5% NA
r = revised
NA = not available

September 2013 County Unsold Inventory and Time on Market
(Regional and condo sales data not seasonally adjusted)

September-13 Unsold Inventory Index Median Time on Market
State/Region/County Sep-13 Aug-13 Sep-12 Sep-13 ##### Sep-12
CA SFH (SAAR) 3.6 3.1 3.7 29.6 28.8 39.2 r
CA Condo/Townhomes 3.1 2.6 3.6 29.7 28.3 46.7
Los Angeles Metro Area 3.6 3.1 3.8 37.4 36.7 47.2
Inland Empire 3.7 3.1 3.8 31.8 34.3 45.3
S.F. Bay Area 2.8 2.4 3.2 37.4 35.9 40.4
S.F. Bay Area
Alameda 2.6 2.1 2.6 49.2 48.7 59.2
Contra-Costa (Central Cty.) 2.5 2.3 2.4 49.2 49.3 63.6
Marin 3.8 3.0 4.7 43.2 40.6 51.6
Napa 5.0 2.0 5.7 53.1 57.3 67.6
San Francisco 3.4 2.8 4.3 23.7 25.4 29.4
San Mateo 2.6 2.1 3.0 20.1 19.7 21.0
Santa Clara 2.1 2.1 2.3 20.1 19.0 20.8
Solano 3.1 2.7 3.7 35.4 32.1 55.5
Sonoma 3.6 2.9 4.3 48.2 46.8 61.5
Southern California
Los Angeles 3.4 2.9 3.7 33.0 31.1 42.8
Orange County 3.8 3.3 4.1 51.0 46.3 56.1
Riverside County 3.8 3.2 3.6 32.2 36.6 46.3
San Bernardino 3.6 3.0 4.1 31.2 29.8 43.7
San Diego 4.2 3.4 4.3 25.5 24.4 40.0
Ventura 3.7 3.2 4.3 45.6 46.9 55.4
Central Coast
Monterey 4.0 4.0 4.2 26.6 23.5 28.2
San Luis Obispo 5.4 4.4 5.1 29.0 26.7 51.8
Santa Barbara 3.6 3.5 5.1 37.2 38.3 55.0
Santa Cruz 3.8 3.2 3.1 22.8 24.8 34.6
Central Valley
Fresno 4.4 3.7 4.7 25.0 23.1 26.8
Glenn 4.5 4.7 3.8 45.5 40.7 31.0
Kern (Bakersfield) 2.7 2.6 3.9 r 15.0 16.0 23.0
Kings County 3.0 2.9 4.1 37.2 50.3 37.2
Madera 5.0 2.4 3.5 27.6 25.4 43.9
Merced 3.2 2.9 3.4 21.9 24.2 27.8
Placer County 3.2 3.1 2.8 22.1 20.8 26.5
Sacramento 3.0 2.7 2.4 20.4 19.7 24.1
San Benito 3.4 2.8 3.0 19.4 22.3 23.9
San Joaquin 2.8 2.8 2.9 19.5 19.5 23.1
Stanislaus 2.7 2.4 2.6 20.1 19.6 24.4
Tulare 4.2 4.1 4.0 24.1 23.3 25.2 r
Other Counties in California
Amador 4.4 3.9 r 5.6 43.1 53.8 r 82.8
Butte County 5.5 4.2 4.6 37.2 25.6 41.2
Calaveras 6.0 5.2 NA 64.0 53.0 NA
Del Norte 8.8 13.1 NA 96.0 107.0 NA
El Dorado County 4.9 4.1 3.8 r 34.2 36.2 48.1
Humboldt 5.1 5.3 6.3 32.9 27.9 64.6
Lake County 5.7 4.9 6.7 74.2 91.0 64.2
Tuolumne 6.5 6.3 6.7 51.1 57.8 58.9
Mendocino 10.8 5.6 7.6 85.9 87.1 93.4
Shasta 5.7 4.1 4.7 38.4 28.0 37.8
Siskiyou County 8.9 9.1 13.2 57.6 71.2 61.0
Sutter 2.7 2.4 NA 14.0 11.0 NA
Tehama 7.6 6.3 6.9 36.4 41.4 52.8
Yolo 3.6 2.7 2.7 21.0 18.8 32.3
Yuba 2.9 2.6 NA 16.0 10.5 NA
r = revised
NA = not available