Why it is better to buy a home  instead of renting one!

Why it is better to buy a home  instead of renting one!

Listed here are 3 major reasons why you should consider buying a home…

  1. Cost:
    Buying a home is actually less expensive than renting!  Renting a home for $2,000/mo for 5 years is $2,000/mo x 5 years x 12 months/year = $120,000 But buying a home for the same $2,000/mo for 5 years is less than $120,000!
  2. When you buy a home the government gives you a tax deduction for the mortgage interest that you pay.Lets just assume that your tax deduction equals only $8,000/year. That means you get $8000/mo x 5 years =$40,000.That means you can get $40,000 cash when you buy your home over the next 5 years. So you will pay $120,000 towards housing payments over the next 5 years but if you own a home you will get $40,000 cash back. This means you only spend $80,000 for housing over the same 5 years which is only $1333/month!
  3. Equity:The owner of the home is entitled to the equity in the home. Equity is the difference between how much the house is worth and how much you owe. (If a house is worth $200,000 and you owe $150,000 then the equity is $50,000.) If you are renting then the landlord is the owner and they get to keep the equity in the home.

  4. When you buy a home you have a mortgage payment each month. Generally, each payment has a principle amount, an interest amount, property taxes and hazard insurance. The principle amount of the payment reduces the amount that you owe on the property.
  5. Every time there is a repair on the home, if done correctly, that repair can increase the value of your home because it will be worth more. If you upgrade old windows, replace the shingles on the roof or remodel the kitchen, that will make your home worth more money. When you own a home you have to pay for these repairs. When you rent, the landlord must pay for these repairs but they don’t mind because it makes the home worth more money!
  6. Making regular payments on a home mortgage will increase your credit score. Better credit means better financing for your next home purchase, a refinance of the first home and for a vehicle purchase or any other credit purchases saving you thousands of dollars in interest over the years to come.
  7. With interest rates dropping below 3.5% (30 year fixed rate as of 10/30/19) you could $15000 for every 1% interest you save , in span of 30 years, in loan of $300k. Check here for more details.
  8. Requirements:The qualifications for buying a home are nearly the same qualifications for renting a home. You need to have okay credit, a deposit and a decent job.If you have a credit score of 580 (or better) then you can qualify for a FHA loan. A 580 FICO score is not considered good credit and may even be low enough to prevent you from renting. But it is a good enough credit score to buy a small home. If you have better credit then you can qualify for better interest rates with other types of loans.
  9. The deposit for a house purchase with an FHA loan is 3 % of the purchase price. This amount is nearly the same as first & last months rent and a security deposit. One of the little known bonuses for buying a house is that you essentially get the first month FREE! The reason is because the homes mortgage interest is charged at the end of the month while rent is charged at the beginning of each month.

  10. Having a decent job is essential for qualifying for any type of housing. Generally you need to have been in the same line of work for the previous 2 years to show stability in employment. You also need to be making at least 3-4 times your payment on a monthly basis

Article published by Anil Aggarwal Realtor who sells real estate in New Jersey as Vylla Home Agent.

Posted on October 31, 2019 at 6:24 am
Anil Aggarwal | Category: Buying first home | Tagged

How Much Does a 1% Interest Rate Drop Save on a 15-Year or 30 year Fixed Mortgage?

Getting the best possible interest rate on your mortgage can ultimately save you thousands of dollars. Knowing how different interest rates affect your monthly payment can prove an invaluable tool when making a decision, whether you are seeking a new mortgage or refinancing an existing one.

Tip> 1% interest rate drop could save you whopping $60,276.16 in $300000 loan in 30 years . Check your at our calculator https://njfind.com/financial-calculators

Mortgages and Interest Rates

When you purchase a 15-year fixed-rate or 30 year fixed rate mortgage, the interest rate will stay the same for the entire life of the loan. Your monthly payment is based on the interest rate you negotiate with your lender and is structured to pay off your mortgage by the end of the 15-year period or 30 year period resp. 15 year is typically the shortest fixed-rate period offered by lenders and will allow you to pay off your mortgage faster and pay less interest than with a longer term loan. However, the shorter term means your monthly payment will be higher, so consider whether you can afford it. Also when you take 30 year fixed, you are stretching your dollar which is depreciating in years or what dollar can buy today, will be lot less in 30 years.

So as per calculator,

loan amount in $ Interest % # of years Monthly Payment: Number of Payments: Total Payments: Total Interest: saving
per month saving
300000 4 30 $1,432.25 360 $515,608.52 $215,608.52 0 0
300000 3 30 $1,264.81 360 $455,332.36 $155,332.36 $60,276.16 $167.43
300000 4 15 $2,219.06 180 $399,431.48 $99,431.48 0 0
300000 3 15 $2,071.74 180 $372,914.09 $72,914.09 $26,517.39 $147.32
This table made by Anil Aggarwal using Financial Calculator provided free at his website :https://njfind.com/financial-calculators
Posted on October 31, 2019 at 3:15 am
Anil Aggarwal | Category: financial calculator, Seller Tools | Tagged

Home values have more than doubled in the New Jersey since 1970

As per Article in Business Insider https://www.businessinsider.com/home-value-home-price-change-in-50-years-every-state-2018-12

home value increased in new jersey have increased or doubled in New Jersey since 1970.

As per US Census Bureau, which provides a table showing median home values from previous decades in each state and the District of Columbia. We compared the median home value in 1970, adjusted for inflation to 2017 dollars using the Consumer Price Index, to the median home value in 2017, according to the Census Bureau’s American Community Survey, and calculated the percentage change.

Note that median means that half of the homes are valued above that number and half below. This data technically covers the past 47 years, but as the US Census Bureau’s table provided information on a decade basis, it’s the closest information available to the past 50 years.

In 1970, the national median home value adjusted for inflation was $107,291; in 2017, it’s $217,600 — that’s a 103% increase. In fact, more than half of all US States (including Washington, DC) have seen a median home value increase of more than 100%.”

In New Jersey Cost of a home in 1970: $147,683 v/s Cost of a home in 2017: $334,900. This means its Percentage change from 1970 to 2017: 127% or price almost more than doubled. 

Imagine if you or your parents renting than what they lost? They lost equity, tax refund, appreciation credit (see example above) , and most important, home.. that yours with your memories.

Realtime Website Traffic

Posted on October 31, 2019 at 2:35 am
Anil Aggarwal | Category: Generation Z | Tagged

Hot Chilies Entertainment Rajni Chatta and Vylla Home Anil Aggarwal Presents 2020 New Year Eve Party in Pearl Banquet Parsipanny NJ

Posted on October 28, 2019 at 4:48 am
Anil Aggarwal | Category: Events, New Year Eve Party 2020 | Tagged

Why its make sense to Go solar: top 10 benefits of solar energy

There are many reasons why homeowners go solar, but improving the environment and cutting energy costs are the most common. Many people are aware that solar is a great home efficiency upgrade and are eager to reduce their carbon footprint while also improving property value.

Whether your motivations for going solar are economic, environmental, or personal, this sizable list of solar power benefits will have something for everyone. Here are the top ten reasons why solar energy is good for your home and more popular than ever in the United States.

1. Drastically reduce or even eliminate your electric bills

Whether you’re a homeowner, business, or nonprofit, electricity costs can make up a large portion of your monthly expenses. With a solar panel system, you’ll generate free power for your system’s entire 25+ year lifecycle. Even if you don’t produce 100 percent of the energy you consume, solar will reduce your utility bills and you’ll still save a lot of money.

2. Earn a great return on your investment
Solar panels aren’t an expense – they’re one of the best ways to invest, with returns rivaling those of more traditional investments like stocks and bonds. Thanks to substantial electricity bill savings, the average American homeowner pays off their solar panel system in seven to eight years and sees an ROI of 20 percent or more.

3. Protect against rising energy costs
One of the most clear cut benefits of solar panels is the ability to hedge utility prices. In the past ten years, residential electricity prices have gone up by an average of three percent annually. By investing in a solar energy system now, you can fix your electricity rate and protect against unpredictable increases in electricity costs. If you’re a business or homeowner with fluctuating cash flow, going solar also helps you better forecast and manage your expenses.

4. Increase your property value
Multiple studies have found that homes equipped with solar energy systems have higher property values and sell more quickly than non-solar homes. Appraisers are increasingly taking solar installations into consideration as they value homes at the time of a sale, and as home buyers become more educated about solar, demand for properties equipped with solar panel systems will continue to grow.

5. Boost U.S. energy independence
The sun is a near-infinite source o

f energy and a key component of achieving energy independence in the United States. By increasing our capacity to generate electricity from the sun, we can also insulate our country from price fluctuations in global energy markets.


Create jobs and help your local economy
According to The Solar Foundation, the solar industry adds jobs many times faster than the overall U.S. economy. This growth is expected to continue. Because solar-related jobs tend to be higher paying and cannot be outsourced, they are a significant contributor to the U.S. economy.

7. Protect the environment
Solar is a great way to reduce your carbon footprint. Buildings are responsible for 38 percent of all carbon emissions in the U.S., and going solar can significantly decrease that number. A typical residential solar panel system will eliminate three to four tons of carbon emissions each year—the equivalent of planting over 100 trees annually.

8. Demonstrate your commitment to sustainability
Sustainability and corporate social responsibility are important components of an organization’s culture and values. They also produce bottom line results. Increasingly, consumers and communities are recognizing and rewarding businesses that choose to operate responsibly. Businesses are finding that “green” credentials are a powerful driver of consumer purchasing decisions, creating goodwill and improving business results.

9. Increase employee morale
Just like consumers, employees have a demonstrated appreciation for their employers’ commitment to operating responsibility. Employees share in the success and contributions of their organizations. Companies that care about their community and environment tend to have lower turnover rates, more engaged employees, and higher levels of morale.

10. Stay competitive
Companies quickly are realizing the social and economic benefits of adopting solar power. As early adopters pull ahead of the competition, many companies are exploring solar power as a way to keep up.

Sign up if you are Buying

Traffic Counter

Posted on October 23, 2019 at 3:46 pm
Anil Aggarwal | Category: Buyers | Tagged

Vylla Home NJ Anil Aggarwal Team participated in Community cultural Diwali programme organized by Sai Entertainment

Diwali Mela NJ 2019 Organized by Sai Entertainment NJ , Mr Bitto, with support provided by Musik Waves Mr Azim. More than 300 people registered and inspite of heavy rain, some 200+ people came. 30 vendors put up there stalls.

Anil Aggarwal Realtor took stage till 3, and gave away silver dimes to participants who gave right and correct answer to his questions. Further Mass Mutual Insurance Geek, Mr Anil Sharma sang beautiful song

Malaika Faisal singer took stage at 3pm and mesmerizes audiance by her beautiful singing .. follow her at https://www.facebook.com/MalaikaFaisalLIVE/


Vylla Home Nj Team of mine, with Basant Pal, Hanuman Rachoor, Safiyaa Khan Invite you all to #Diwalinj Festival event Organised by Sunny Ranyal.Happy to give Silver #MercuryDime as Gifts ever hour to lucky winner. Win Free Vylla Totes as well.
IF you selling home, ask me why use Realtor or check details at www.WhyUseRealtor.com
If you looking for Realtor, check best at www.BestRealtornj.com
#RealEstate is only option which you can feel, enjoy, live and it appreciate in value, while you can claim #depreciation with many tax advantages and presently rates are ultra low . Check whats properties available at www.NjFind.com
Why i am giving away Silver Dimes? These are US minted silver cute #silverdimes between 1916 to 1945. Value of these grown in years from 10 cents between $10 dollars to $10000 . Idea is to endorse in power of investment in right options So come to Diwali festival Sunday between 12-7pm and meet me or my team member there. If anyone seeking to join Real estate then please visit www.Jobsbliss.com . Call 732-877-8585

Posted on October 22, 2019 at 5:18 pm
Anil Aggarwal | Category: Diwali NJ 2019, Events | Tagged

Realtors Pledge of Performance and Service

I am certified Realtor and this is my pledge to you. Check this Professional page, which shows I am bound by Respect for Public, Respect for your property, and Respect for Peers.

Further I have some duties to my clients and customers and also Duties to Public.. and follow Realtors. All this listed and posted so to remind me and others ,


Posted on October 17, 2019 at 6:35 pm
Anil Aggarwal | Category: Realtors | Tagged

Music can change the atmosphere of an open house

Music can change the atmosphere of an open house and day to day life in general. However, coming up with the perfect playlist for everyday events can be time consuming and overwhelming. Have no fear! Windermere Real Estate recently launched a Spotify page with all the playlists you need. They have a playlist for everything from cleaning motivation to dinner party essentials.

Posted on October 17, 2019 at 6:32 am
Anil Aggarwal | Category: Open house, Realtors

Legal Advise from Attorney

Listen some Legal Videos

Posted on October 15, 2019 at 4:54 pm
Anil Aggarwal | Category: Buyers

As Realtor® I highly recommend and suggest clients to get Home Owners Title Insurance


As Realtor®, so I know that buying a home can be overwhelming for my clients. Homebuyers can feel confused and frustrated by the mounds of paperwork they have to sign. Plus, the fees associated with closing can sometimes be overwhelming even to an
experienced buyer.
Owner’s title insurance is one of those items often misunderstood by homebuyers at
closing, yet its value is tremendous. As an important advisor to my clients, I am in
a position to help homebuyers understand the value of owner’s title insurance and the
dangers that can be incurred without it.

Say, for example, client recently purchased a new home from a builder, but the builder failed to pay the roofer. Wanting
to be paid, the roofer filed a lien against the property. Without owner’s title insurance, my client would be responsible for paying
this existing debt. This is just one example of how owner’s title insurance protects homebuyers from various significant risks.

The good news is that owner’s title insurance protects homebuyers legally and
financially, as long as they own their home. For a low, one-time fee, homebuyers can restnassured, knowing they are protected against
existing debts or claims to their property.

A Guide for Home Buyers

A Guide for Home Buyers

Posted on October 15, 2019 at 11:23 am
Anil Aggarwal | Category: Buyers Check List | Tagged

Title insurance and the home-buying process

Just like car or homeowner’s insurance, title insurance is designed to protect individuals from catastrophic financial loss. While homeowner’s insurance protects physical assets, title insurance protects an invisible, but equally important, asset: the right to own your home free and clear of any hidden problems.

Despite its importance, many home buyers aren’t aware they need to buy title insurance until closing time. They’re often surprised to learn they need title insurance and that they’ll have to pay for a policy as part of their closing costs.

With so much mystery surrounding title insurance, it begs the question: What is title insurance and how does it factor into the home-buying process?

What is title insurance, and why is it needed?

What would you do if you purchased and moved into a house, only to find out three months later that the previous owner’s niece is claiming it’s her house and she’s got a lost will to prove it? What recourse do honest home buyers have in a situation like this?

That’s where title insurance enters the picture. Title insurance is a special type of insurance that protects against hidden problems with a title that might arise after a house is sold. Due to the complexity of real estate transactions, the list of possible title issues is extensive: record-keeping errors at the clerk’s office, unknown liens against a property, unpaid taxes, missing heirs, as well as outright fraud and forgery of documents. Some of these problems may not be found until long after the closing papers have been signed and buyers move in.

While not common, title issues could lead to serious financial loss or being forced out of a property. These include properties bought in good faith, where protocols were followed “to a T” by everyone involved.

Is title insurance always necessary?

Yes. Lenders require borrowers to carry title insurance to protect their financial interests. Homeowners can also purchase their own optional policy separately. Each type of policy covers different circumstances and dollar amounts.

There’s been some debate recently about title insurance. Many home buyers don’t fully understand the value of title insurance, while some financial professionals may wonder how valuable it continues to be. But these questions don’t dismiss the value of title insurance when a buyer needs to call on their title insurance policy.

While the actual number of title-related claims is relatively small, the real estate and land recording process is not always an accurate one. Title problems can arise, and when they do, they can be staggeringly expensive, time-consuming, and stressful to resolve.

Consider this scenario based on a real-life story:

Jared and Sonia had just barely settled into their dream house when their attorney called them with some unpleasant news: There was a pre-existing lien on the house from the previous owner. And because they were the new owners, the lien was now theirs. Turns out the county clerk had filed the previous owner’s loan paperwork in the wrong place, and it got overlooked.

Thinking their lender’s title insurance covered them, they didn’t bother to purchase a homeowner’s policy. Unfortunately, the lender’s insurance was of no help because it was a homeowner’s issue. This oversight ending up costing them $2,000 to pay off the lien. In this case, they were lucky. What if the lien was for $50,000 or $100,000 instead? Jared and Sonia shudder to think of the possibility and wish they would have purchased a homeowner’s policy beforehand.

Again, the chance of title problems are relatively rare, but when they do happen, having title insurance can mean the difference between a straightforward resolution or a nightmare that drags on for weeks, months, or years.

What is the best approach to getting title insurance?

Getting title insurance is a two-part process. First, a thorough search of a title’s history is undertaken to discover any errors or encumbrances. Once that’s completed successfully, the title insurance policy is underwritten.

You have a couple of options when it comes to purchasing title insurance. You can either buy it through a title company or use a larger title and escrow agency. However, there are additional benefits with going to a larger agency that can handle more than just your title insurance.

A title and escrow agency can:

  • Work as your escrow partner and closing agent. The agency can handle all aspects of your real estate transaction including the execution of critical documents, funding of loans, and signing of paperwork.
  • Help you stay on top of everything. An agency that offers centralized processing through technology makes it easy to access your documents online and stay on top of the different steps of the real estate transaction.
  • Help you save money. With a larger agency, you often can get the most competitive price on a title insurance policy.

Article from https://blog.timios.com/posts/title-insurance-and-the-home-buying-process

Posted on October 15, 2019 at 10:12 am
Anil Aggarwal | Category: Seller Tools | Tagged

Giving gifts at closing of home- Realtor Anil Team gives Best Real Estate Closing Gifts

A unique portrait of your client’s new home paired with a heartfelt message is a closing gift any new homeowner will cherish. Best of all, if your clients prominently display the gift in their home, it’s an excellent way to generate leads through local referrals.Real estate closing gifts are a great way to commemorate to our client’s new or sold home while staying top of mind. However, choosing a closing gift can be tricky because everyone has different tastes. We talked to top agents to identify their favorite closing gifts plus rules for buying the best gifts for our clients.

Here we have hand picked 9 good websites that provide best hand engraved customized gift items for our Clients.

Per law, as we know, max $25 worth gift we can give to clients so if you are buying or selling home through us, then be our guest and pick your best gift or leave it to us

Promotional Gifts Items

Posted on October 15, 2019 at 2:16 am
Anil Aggarwal | Category: Credit | Tagged

Dont let that good property you find go, just because Kitchen is not updated..Learn more

You found a good house, with good location. You loved everything but your wife is unhappy as kitchen is not updated or finished as per latest styles. You saving money and don’t want to spend too much so trying to convince your wife but she is just adamant in buying new house which is 50-60k more..

What you should do?

Well talk to your realtor and ask him to give you RPR report.

Check value of home and see what is RPR report suggested RVM price (its like realtors guesstimate for property).

If you see property has value, you liked location, and only issue now kitchen then check links posted below and using good contractor (I can send one or advise one).. and get new updated kitchen using these links and you will be amazed that kitchen can be soo good and so cheap..

  1. AbestKitchen.com
  2. Kerekes kitchen & Restaurant Supplies
  3. Take 30% Off Your New Cabinetry!
  4. Take Up To 25% Off Your New Kitchen & Bathroom! Sale happening June 5th-June 15th!
  5. Free Shipping on $30 or more
  6. The ideal Choice for Under Cabinet Lighting – Lightkiwi
  7. Kitchen
Posted on October 12, 2019 at 1:51 am
Anil Aggarwal | Category: Kitchen

See how Realtor Anil Aggarwal and his team, sells home in New Jersey?

Anil Aggarwal Realtor

I am a Real Estate Agent, realtor, and Investor currently living in New Jersey. My interests range from selling difficult hard projects, real estate to flip properties. I am also interested in investing, home, and helping my clients find best deal , at best price.

Without me, you will save 1% but I am sure, with ample marketing, exposure to 7 mls, and video/website/qr mobile website and weekly open houses, I will sell your home quick, and get you better Return on investment.

I am certified Flipper, Realtor, Finance professional, with 20 years of exposure of working with leading fortune 500 companies .

Buying Real Estate should be your #1 priority, especially if you want to save money for your kids, or for your retirement. Home builds equity, provide safety, give emotional bonding to family and provide tax refunds.

With me, you get ample support, true educated guidance and no if and buts. You buying, and I am there, and if you not buying , still I am there, to provide any and every help.

Same way, I guarantee my clients that your home, will sell with me. Reason, I don’t leave anything to others. I myself check, inspect, update or guide daily progress, till home is sold.

I do regular events, social meetings, networking and love to host, invite, dine and make friends. I hold ample marketing so finding buyer is not a issue for me.Example review past event http://www.NewYearEvesParty.com

I am available 24/7 via mobile/whatsapp/phone/

Posted on October 11, 2019 at 3:23 am
Anil Aggarwal | Category: How to Sell

What is FICO Score

The most common type of credit score is the

, which was developed by Fair, Isaac and Company. FICO is not the only credit scoring company, but is the score used most widely. Lenders usually base your interest rate on some variation of a FICO score, which can range from 300 to 850. As with all credit scores, the higher your FICO score, the lower the interest rate lenders will charge you.

While you can obtain a copy of your credit report for free at www.annualcreditreport.com, the score is separate and is not free. You can purchase a copy of your FICO credit score from their website, which is www.myfico.com or purchase credit scores from Experian, TransUnion and Equifax. Note that not every credit bureau uses the same range and formula for calculating a credit score – there are competing credit score “products” on the market. An example is a Vantage Score, developed by Experian. Another key point — getting a copy of your own credit report and credit score does not affect your credit score. Many people are hesitant to obtain their own reports because they fear a negative mark.

The FICO Score in Detail

FICO Scores are calculated from a lot of different credit data in your credit report. This data can be grouped into five categories as outlined to the right. The percentages in the chart reflect how important each of the categories is in determining your FICO score.

Please note that:

•A FICO score takes into consideration all of these categories of information, not just one or two. No one piece of information or factor alone will determine your score.

•Your FICO score only looks at information in your credit report. However, lenders look at many things when making a credit decision including your income, how long you have worked at your present job and the kind of credit you are requesting.

•Your score considers both positive and negative information in your credit report. Late payments will lower your score, but establishing or re- establishing a good pattern of making payments on time will raise your FICO credit score.

Improving a Score

Make Your Payments on Time

The single most important thing you can do to keep your score high, or improve your score, is to make all your payments on time. Payment history is the largest factor that is used to determine your credit score. Payments that are 30 days or more past due will show up on your credit report and negatively impact your score. These negative marks generally stay on your report for seven years.

Keep Your Total Debt Load Manageable

With the second largest factor of your credit score being the total amount you owe, it is important to keep borrowing and total credit usage under control. If you currently have a significant amount of outstanding debt, your priority should be to stop borrowing and work toward lowering the balance. This isn’t always easy, but the only way to improve your overall debt situation is to stop borrowing or using credit cards and continue to make timely payments that reduce your balance.

In addition, you want to consider how much of your available credit is utilized. For example, having many credit cards that are maxed out, or very close to their limits, will negatively impact your score. Two credit cards with a $5,000 limit and a $1,000 balance on each will look much better than a single card with a $2,500 limit and a $2,000 balance.

Maintain Existing Accounts

Length of credit history is another important credit score factor, so it can be to your advantage to keep older accounts which are in good standing open. While you want to keep the total number of accounts manageable, sometimes it can hurt your score more to close an old account than to keep it open.

Be Careful When Opening New Accounts

While new credit is the least important factor in your score, it is still an important issue to consider. When you are shopping for a new loan or credit card, do your shopping in a relatively short amount of time. You don’t want to have your report show that you are constantly looking for new credit. You also don’t want to open credit accounts you don’t intend to use much. It may be tempting to get that additional 10% off when you open that new retail store card, but the little bit of money you save may be insignificant when multiple new accounts actually lower your credit score.

Posted on October 10, 2019 at 9:57 pm
Anil Aggarwal | Category: Finance | Tagged

Person finds old bills coins and lot more from his grand parents home-while cleaning

It Had Been Empty For Years

Evilenglish’s grandparents’ farmhouse hadn’t been lived in since 1997, so you can only imagine how dusty it was… Evilenglish was planning on selling the property, but before he could even think about putting it up for sale. He had a huge clean-up task on his hands. No one wants to live in a dusty, dirty house! Evilenglish first noticed something interesting… There was a carpet on the floor instead of floorboards…when we removed carpet , he found a giant concrete safe was underneath the carpet. Inside safe, there was safe with tens of thousands of dollars. “Just so you know anything from 1964 or older is 90% silver worth about 20 times face value of the coin,” he revealed on Reddit.

So next time when you buy home and see its need cleaning, think of this and get motivated.. It might be your door key to get rich

Posted on October 8, 2019 at 11:47 am
Anil Aggarwal | Category: Treasure Hunt | Tagged

Help with Flood Insurance and Disclosures

Help with Flood Insurance and Disclosures Flood-related disclosures can generate a deluge of legal and ethical questions for Realtors. What needs to be disclosed? How should you advise sellers? What should you tell buyers about flood risk and insurance? In this video, NAR Associate Counsel Deanne Rymarowicz answers these questions.


Flooding is the most common and costly natural disaster in the U.S., causing more than 1 trillion dollars in damage to crops and property from 2000 to 2018, and that number keeps rising.

As a real estate professional, flooding can also impact your business. Flooding is considered a material fact to a real estate transaction, and failure to disclosure flood damage can result in liability. In addition, it’s important to counsel buyers about the need and availability of flood insurance.

State laws on flood disclosures vary, so it’s crucial to understand your obligations in the state where you practice real estate. In general, a broker or agent must disclose the following facts when they have actual knowledge:

  • that a property is in an area where flood insurance is required;
  • that flood insurance was required in past;
  • that the property is located in an area that has flooded in the past;
  • and that the property is located in an area subject to flood risk that may cause many or most owners to purchase flood insurance.

In addition to state law, REALTORS® are obligated to disclose flood damage under the REALTOR® Code of Ethics. While REALTORS® must disclose reasonably apparent adverse facts, this duty does not obligate REALTORS® to discover latent or hidden defects in a property.

In a recent Texas case, Calhoun v. I-20 Team Real Estate, LLC, an appellate court ruled that a buyer’s agent’s team could be held liable for failing to advise a buyer that additional disclosure from the seller was necessary. While the seller’s disclosure form disclosed that the home had experienced past flood damage, Texas law requires further explanation for any affirmative disclosure. Here, the Seller’s form failed to provide any such explanation, and failed to answer other required questions, including improper drainage; whether the seller had flood insurance; and whether the property is located in a hundred-year flood plain or a floodway. Shortly after purchasing the property, the buyers discovered improper drainage, and that the property had a long history of flooding.

To avoid liability, and to protect your clients:

  1. Know your state’s disclosure laws to understand your obligation to disclose pertinent facts. As a starting point, check out NAR’s state-by-state flood disclosure survey available on NAR.realtor.
  2. Don’t conceal past flooding or water damage. If a seller asks you to conceal those facts, remember you still have a duty to disclose, so be sure to consult with your broker and legal counsel.
  3. Listing agents should ensure a seller’s disclosure form is fully completed, and when representing the buyer, be sure to notify your client of any incomplete disclosure requirements and request follow-up from the seller.

Now let’s talk about flood insurance. Keep in mind that a property does not have to be near water to flood. Heavy rain, rising sea and river levels, melting snow, drainage system backups, and broken water mains can all cause flooding. In fact, 25 percent of flood insurance claims occur in low or moderate risk areas. Flood damage is excluded under standard home owner insurance policies, but you don’t have to be in a high risk flood zone to obtain flood insurance. Flood insurance is available from the National Flood Insurance Program and many private insurers.

So, when counseling buyers about flood insurance:

  1. Remember that flooding can happen anywhere. Recommend that buyers to do their own due diligence, but avoid telling buyers that flood insurance isn’t required or advisable.
  2. Provide buyers with a list of reliable third-party resources about the importance of flood insurance, including the floodsmart.gov(link is external) website.
  3. And, advise buyers to speak with their insurance agent and mortgage lender to determine whether flood insurance is required for the property.

Be sure to check out the additional resources linked below this video. Thanks for watching this episode of Window to the Law!

Posted on October 4, 2019 at 1:17 am
Anil Aggarwal | Category: Buyers, Flood

Federal Agencies Increased Residential Appraisal Threshold

On September 27, 2019, the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation (collectively “the Agencies”) adopted a final rule increasing the threshold for requiring an appraisal in residential real estate transactions from $250,000 to $400,000. Federally related transactions under $400,000 will require an evaluation, rather than a full appraisal, to determine value of the real estate in question. A federally related transaction is a non-Fannie Mae or Freddie Mac transaction and a non-federal financed transaction, such as loans under the Federal Housing Administration, the Rural Housing Service or the Department of Veterans Affairs. Final Rule on Residential Threshold (link is external) The NAR position was to have these limits indexed like the GSE conforming loan limits. This should have minimal impact on the market, as the FHA and Fannie/Freddie follow old limits.
Posted on October 4, 2019 at 12:36 am
Anil Aggarwal | Category: Federal Agencies Increased Residential Appraisal Threshold, Realtors

Status of $10,000 State and Local Tax Deduction (SALT) cap

On Sept. 30, a federal district court dismissed a challenge by four states (New York, Connecticut, Maryland and Jersey) to the $10,000 cap on the federal state and local tax (SALT) deduction that was created by the Tax Cuts and Jobs Act. (New York et. al. v. Mnuchin, No.  18-CV-6427). The states alleged that the SALT cap “violates the federalism principles that undergird the U.S. Constitution.” They pointed out that the cap will result in a significant increase to federal tax bills of residents in their states and that it disproportionately affects the residents of high-tax states whose state and local taxes exceed the $10,000 cap. And, they alleged that Republican legislators and the Republican president intended this differential result to force states to provide a disincentive for these states to impose high tax rates.New Jersey Challenges SALT Cap Earlier this week, the federal courts ruled against a lawsuit initiated by New Jersey and three other states challenging the $10,000 State and Local Tax Deduction (SALT) cap. The courts ruled against the lawsuit, which argued the cap was unconstitutional. It is unclear whether New Jersey and the other states will appeal this decision. New Jersey Realtors® met with Rep. Mikie Sherrill to discuss the importance of reinstating the full deduction due to the high cost-of-living in New Jersey.


Read more at https://www.nytimes.com/2019/09/30/business/economy/state-local-tax.html

Posted on October 4, 2019 at 12:25 am
Anil Aggarwal | Category: Realtors, SALT

Franklin Township information and news for area Realtors

   Franklin Township News Vincent Dominach, Jr., Director of Economic Development for Franklin Township, was a guest speaker at a recent CORE Government Affairs Committee meeting, at which he provided the following information and news for area Realtors:
1.     By next year, most likely during the first quarter of 2020, a cursory inspection is expected to be required prior to all residential transfers in Franklin Township, in order to protect homebuyers. Dominach stressed that the inspection would not be “over-zealous” and would be limited to looking at the number of bedrooms, any ridiculous code violations, checking for open permits and outstanding fines, not to look for a fence or closet added without a permit or if the lawn is mowed. He said the need for this cursory inspection is the result of some attorneys not doing their due diligence checking for outstanding permits and fines, and flippers, who are notorious about not obtaining critical permits and leaving behind fines for unsuspecting homebuyers. He noted that Franklin has lots of permits – for example Franklin had 40 percent of all single family building permits during the financial crisis. He added that Franklin Township offers an amnesty almost every year to fix permit and code issues saying, “We don’t want to fine you if you cooperate. The law requests that we fine for code and permit violations but we also have the discretionary authority to waive some, all, or none of the fines. He asked for assistance from the CORE Association of Realtors to alert our members to this new inspection requirement prior to transfer. It was also noted that conveyancing attorneys will need to know about these new inspections, and Realtors could be of help with alerting those involved in transactions.
2.     Housing affordability is the topic of much discussion, and Franklin Township doesn’t want to risk a so-called builder’s remedy, whereby the courts step in and force high density that may not be a good fit with the surrounding area. Franklin Township is working to meet its targets and is actually ahead of affordable housing targets for age-restricted housing – which doesn’t automatically count toward affordability targets, but they had a real need, so approved a number of age-restricted projects. Some other municipalities “roll the dice” and don’t work to achieve affordability targets, thereby risking a builder’s remedy. Franklin had some high-density areas and raised the density there to help make their affordability targets, and Franklin also gets money from some developers in lieu of providing affordable units, which is used to help subsidize affordability at other projects. He added that, in a redevelopment area, a municipality gets double credit for every affordable unit created. Franklin Township has satisfied its affordable housing need and has Court approval of its plan. Both the Court and Fair Share Housing agreed Franklin was a shining example of how a municipality should provide affordable housing.
3.     Warehouse space is particularly “hot,” due to ecommerce, and that basically, by the time they’re in the ground, they’re leased up. In reply to a question, he said that municipalities can’t deny projects due to the traffic impact, but can require mitigation efforts.
4.     Rutgers is having a housing crunch and freshmen can’t be assured of obtaining on-campus housing. Lots of student housing is being built, and it’s anticipated that at least 500 units will be built within three years.
5.     Not much land is left in Franklin Township for large, residential development projects.
Posted on October 4, 2019 at 12:00 am
Anil Aggarwal | Category: Realtors | Tagged