Lisa and Jim's Northern Nevada Real Estate Blog: New Home Warranty...Floodplain...Loan Mods A Little Potpourri Today!

New Home Warranty...Floodplain...Loan Mods A Little Potpourri Today!

New Home Warranty...Floodplain...Loan Mods  A Little Potpourri Today!

New home sales in Northern Nevada have been slow over the past couple of years.  Some new homes are selling for the first time even though they were constructed two to four years ago.  Buyers should be aware that the home may be owned by a lender that foreclosed on the property, and there is no New Home Warranty in place.  New Home Warranties are not automatically included in a new home sale transaction.  To be effective they must be in writing.  If you are buying an "old-new" home and aren't receiving a written warranty you likely don't have a warranty.   

Not having a warranty isn't necessarily bad, resale homes don't offer them with the exception of a Home Warranty Insurance policy.  You can buy such a policy for your "old-new" home.  That is a good idea since the appliances are likely out of warranty as well since most have but a year warranty.  Those policies run around $350 depending on the company and policy.  Not having a warranty isn't a reason not to buy, we just want to make sure you get what you think you bargained for.   

Another concern for Homeowners and Buyers today is the implementation of new flood maps in Douglas County.  They become effective this month.  These will primarily affect the east side of Carson Valley, and can have a very big financial impact on the property owner due to the dramatic increase in flood insurance cost in some instances, i.e.- from zero to $4-5,000 annually.  Even if you aren't looking in East Carson Valley beware of floodways in other areas.  FEMA is going around the country reassessing floodways and changing maps.  It recently happened in Lyon County as well.  It doesn't matter how "deserty" the property looks, it could be affected by a floodway floodplain status change in the future. 

Working on a loan modification?  Be advised that the lender can, and likely will, continue with their foreclosure process while negotiating with you.  They won't actually foreclose during the negotiations, but they will have started the clock ticking so you will have very little time for alternative options if your loan mod efforts are unsuccessful, or their terms are unacceptable to you.  Rather than give up and succumb to a foreclosure, be exploring other options during the loan mod process.  These can include a short sale which affords many positive benefits to you versus the ramifications of a foreclosure.  Check with your agent to make sure that your personal circumstances don't prevent you from effecting a successful short sale. 

Our advice:  Real estate isn't as simple as it once was.  Things used to be pretty much "what you see is what you get" and you could make a deal with a handshake.  It just isn't that way anymore and you must be proactive to protect your property and your pocketbook.  Look ahead, consult with a good agent.  Good agents will consult with you even if you aren't buying or selling today.  They understand that part of their job description is that of real estate counselor.  If they do a good job for you it is likely that you will refer them to a family member or friend in need of good professional services.  Don't be bashful - call a professional and discuss your real estate situation thoroughly - whatever it may be.

Real estate isn't as scary as it was in 2008.  Uncertainty in all aspects of the economy prevailed at that time, but now people seem to have confidence that the financial world isn't coming to an end and they are willing to move forward.  Embrace the mystery of real estate today, get the answers to the complexities of your situation, and move forward to your financial success and/or survival. 

When it comes to choosing professionals to assist you with your real estate needs... Experience is Priceless!  Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, 775-781-5472. carsonvalleyland@hotmail.com, www.carsonvalleyland.com

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Lisa Wetzel and Jim Valentine are the authors of this blog.  Lisa, Jim  and Jessie are experts in Carson Valley , Carson City and the tri-county area of Douglas County , Carson City and Lyon County.  Call our team anytime at 775-781-5472 or 775-781-3704.  To Search for Homes go to: Carson Valley Listing Book  or visit our website at www.CarsonValleyLand.com

Comment balloon 1 commentLisa Wetzel • January 13 2010 09:35PM

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Lisa - Good post with lots of good information for prospective Northern Nevada home buyers to keep in mind. Hope you are having a great weekend!

Posted by Christianne O'Malley, Exceptional Service - Delivering Results in Reno! (RE/MAX Realty Affiliates) almost 10 years ago

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