There are many things a Realtor® has to advise their clients on and many things that they need to give them information on. Before closing there are a couple of things that we all need to remember to let our clients know lest they have trouble down the road.
The following two points that I believe are many a time forgotten:
1) Remind your clients in townhouses/condos that maintenance fees DO NOT COVER THE INSIDE of the unit!
- A call comes in to my cellular a week or so ago and it's from a private number. They needed some
privacy I guess. She introduced herself only by that "she saw my post on Condo/Townhouse Living in Hawaii..........and A Water Leak" and wondered if I had a moment to listen to what happened to them and if I had any advice. Sure. Basically I told them what happened to me .... Bathroom & Kitchen Leaks- Responsible Condo Living in Hawaii - Bottom line, they live in a condo and the unit above them flooded and their unit was severely damaged. They tried to file a claim with the owners insurance, tried to get the association to do something and just did not know what to do.
- My first question: Did you have insurance? Of course they didn't ....and their Realtor® did not say anything either. They ‘thought' the maintenance fees took care of it and I told her that they still needed insurance for the inside and contents of the unit as well as it protects them should something happen and they damage another unit (like what happened to them). She said they got insurance after finding out.....but this was a YEAR ago.
- The New Hawaii Condominium Laws for Insurance states that the Board (by vote or written consent of the majority of home owners, may require the unit owners to obtain reasonable types and levels of insurance. I'm still hoping it becomes mandatory for all. Lest you have to worry about.....It All Comes Out in the Wash......MOLD .
- I advised her to seek legal counsel.
2) The second point is to remind your clients that if they are an owner occupant they are entitled to a home exemption!
The home exemption is deducted from the gross value of your property to arrive at a net taxable value on your property. Right now a single home exemption is $80,000 and 65 years and older and the home exemption is $120,000 (your birthday must be on or before June 30 preceding the tax year for exemption claimed.- It can make a difference in property taxes and payments! Following are a couple of forms: Homeowner's Exemption (BFS-RP-P-3) (124 KB PDF) Or click "File A Homeowners Exemption" link on right pane for online filing and In Lieu of Home Exemptions for Homeowners 75 Years and Older for Low Income Households (BFS-RP-P-4) (469 KB PDF)
- And more information can be found on the REAL PROPERTY ASSESSMENT DIVISION SITE TOO.
I know these clients were forgotten when I am listing a condo or home and I pull up the tax recordsand the home exemption states ‘0' and they've been living there for the past 5 years; and the other one had no condo insurance and calling me from my blog ....after the fact.
The transaction is never over and you can help your clients ahead of time with passing along helpful information.
It really could make the difference in the future.
For them....AND you.
~~~~~~~~~~~~~~~~~~
Celeste "Sally" Cheeseman is a Realtor-Associate with Century 21 Liberty Homes in Mililani, Hawaii. With a sharp understanding that a listening ear is the key to a client's needs she serves the island of Oahu (Honolulu County) and all Hawaii Military Relocating to Hawaii, Hawaii Retirees, Hawaii Job Transfers and Hawaii Residents. Website: www.hawaiihomesmarket.com
Celeste "Sally" Cheeseman is a Realtor-Associate® and Certified Residential Specialist (CRS) with Century 21 Liberty Homes in Mililani, Hawaii. With a sharp understanding that a listening ear is the key to a client's needs she serves the island of Oahu (Honolulu County) and all Hawaii Military Relocations, Hawaii Retirees, Hawaii Job Transfers and Hawaii Residents, Home Buyers and Sellers.
© 2007-2012 Celeste "Sally" Cheeseman's Hawaii Real Estate and Relocation Blog.
All rights reserved.
this has nothing to do with this...but we went to see Star Trek movie.....WOW!
Sally - condo living can work for some and not for others. Understanding the fees and what they cover is essential, since I find they vary quite a bit, both in term of what they cover and the amount. Some things are standard, some are not (like hot water, gas).
Jeff
Sally, these sound like no-brainers. But, I know I do take a lot of things for granted. Posts like these remind me there are people out there without brains. :-) Just hold their hand and smile.
Jeff: It sure can save a lot of headache just letting our clients know. If that woman had insurance she wouldn't be sitting with sagging walls, mildew and a ceiling torn apart.
Andrew: You would think it would be. There are and hopefully it will teach...or remind them that this info can save their client money or heartache.
Aloha Sally,
So you loved the movie?
How much would a homeowner normally save a year in taxes if he/she files an examption? Let's say on a $500,000 property? Any idea?
Lynda: At first Gary dragged me there....it was nothing like I expected.... :)
About $200 bucks. I save $100 bucks on my one bedroom townhouse unit.
Hi Sally... These are great reminders that in the hustle and bustle of a transaction could easily be forgotten or overlooked! Glad you enjoyed the movie, too! :)
Hi Sally, Good post. Thanks for sharing.
Best - Sash
It's clear that the homeowner should have used a professional and knowledgeable agent such as yourself. Oh well, another reason to choose Sally for Honolulu real estate needs.
Sally, It is funny, but I always remind folks that the HOA covers the exterior and you (the buyer) are responsible for the drywall inward. Check the HOA regs to find out exactly what they are responsible for ...
Your building consultant for life in Nashville, TN
Sis - I've heard good things about the new Star Trek movie:) Both points you bring up in the post are very good. While I love my house, a condo wouldn't have been a bad idea for a starter back in the day.
Sally, I can't imagine no insurance, that is pretty interesting, guess that would have been a cash deal. But what is also very interesting is that someone called you. Great post.
And I have heard Star Trek is fantastic. Can hardly wait to see it!
Sally, Great information and I didn't know about the taxes on Condos and how they may differ in NY. I was at one time looking at Condos and neither of these points were brought up. Taxes here are so high they play a major role in a purchase (probably there as well).
Sally,
These are very good things to make the buyers aware of! Thank you for sharing it with us! Have a great week!
Judy
Judy: you too!
Carole: They do play a big role in condos but knowing they have a home exemption for condo OR homes is a big deal.
Andrea: It's not REQUIRED to have inside the condo insurance unless the association passed it by vote. It IS a requirement of mine to let my clients know so they don't get in hot water later.
Lil Bro: Yeah..I love my little abode. It's enough for me and taxes aren't too high. :)
Michael: I did that during my mishap...believe me...they find loopholes for sure.
Thanks Leolinda...it's also just common courtesy and being on top of what our clients need to know.
Thanks Sash.
Steve: It was awesome! Nothing I expected...it had action, it had emotion, it had drama, it had humor. I loved it! And we need not overlook these things if we make a checklist :)