Do you really need a termite inspection?
Do not treat lightly your opportunity to have the house inspected for termites. First of all, if you need a mortgage to buy the house, you'll find that institutional lenders REQUIRE that a termite inspection be done. Your lender is concerned - and rightly so - that it might be lending its money to buy a house that is infested with insects that have or will harm the house's structure. If that were the case, the mortgage loan that is being given to you could never be recouped by the lender since the house will be devalued greatly by the little pests. YOU should be just as concerned, because the house that you've contracted to purchase for $500,000.00 may be worth a lot less with termites in it.NOTE: "Termite" or "pest" inspection is the popular term. However, the inspection actually encompasses all "wood destroying insects". Termites happen to be the most prevalent of these pests. Most houses do not have a termite problem, but a substantial minority do. Termites are usually a hidden but potent problem. They literally can destroy a structure without revealing visible signs. You'll be carrying your new television downstairs and fall right through the third step. Why? Because termites have burrowed through the wood and weakened the stair case. For these reasons, a good Contract of Sale (Purchase Agreement) is contingent upon the results of a termite report.Most often, there is a provision placed into the Contract of Sale (Purchase Agreement) giving you, the buyer or seller, a short time period within which to have the house inspected for wood destroying insects. I usually give buyers fourteen days from the full execution of the Contract of Sale (Purchase Agreement). In other words, immediately after receiving a fully-signed Contract of Sale (Purchase Agreement), you should make an appointment with a licensed inspector or extermination company to go to the house and inspect for termites. Ask your Realtor® to refer a company he trusts, or look in the yellow pages, call a few companies and compare their fees. When you've chosen a termite inspection company, you then have to arrange for the company's access to the house, just like with the home inspector. If there is a real estate broker involved in your purchase, let the broker arrange a time with the seller for the inspection.
One of three situations could result from a termite inspection. First, "no evidence" of wood destroying insects on a report means what it sounds like it means - that the inspection revealed no evidence or trace of wood destroying insects, dead or alive, and no evidence of their damage to the house. The inspector will provide you, the buyer, with a report to this effect, and you frequently are asked to provide a copy of the report to your lender.
Second, "evidence of damage" means that the inspector found damage to the house which likely was caused by wood destroying insects. However, in this scenario, the inspector has found no "active infestation" or rather no evidence that the damage is currently being perpetrated by live insects. In this second scenario, you should ask the termite inspection company to issue to you a one-year guaranty against active infestation, in addition to the report itself. Some lenders will be satisfied that there is no active infestation on the date the termite report is issued, but a number will require a guaranty from the termite inspection company that extends for one year.In the third scenario, the inspector finds an "active infestation". It sounds bad, and it is, but a good Contract of Sale (Purchase Agreement) will cover this situation as well. Remember, a Contract of Sale (Purchase Agreement) is a flexible document, not just a form. You and your Realtor® can negotiate almost anything into it. Contracts of Sale (Purchase Agreements) may permit you, the buyer, to back out or terminate the contract if there is evidence of an active termite infestation. A better Contract of Sale (Purchase Agreement) will give the seller an opportunity to remedy the termite problem by having it treated within a reasonable period of time, usually at the seller's expense, and having any termite damage repaired. Not to sound redundant, but . . . most houses are made substantially of wood. Thus, termites are the arch enemies of houses, and you should be sure to protect yourself against the risk they pose. In California "it is not if you have termites, but when are you going to get them"!
1. Call your local regulatory office to verify his license
Make sure the mover you are considering is duly licensed or authorized by your State's Department of Transportation or other regulatory body as required by law and that his certificate number is legitimate.
2. Check your local Better Business Bureau about constant complaints
A responsible mover might have a few complaints lodged against him but his record with the Better Business Bureau should show that he responds to and resolves complaints.
3. Ask if he carries Worker's Compensation Insurance
Most state regulatory bodies require such coverage. This adds to the cost of doing business but it protects you. Be suspicious of the very low bidder for he may be cutting costs by cheating on this needed protection.
4. Make sure his place of business really does exist
Paying a visit tells you something about the mover's integrity and professionalism, for you can confirm that his place of business is there and appears clean, organized and properly staffed.
5. Be wary of high-pressure tactics from Telemarketers
This could be a ploy simply to get a sales person into your home to give you an estimate. Be careful, do research and you decide whom to invite into your home, based on references.
6. Do not listen to sales personnel who tell stories
A high-quality firm with a good reputation does not need to knock the competition, or to criticize other moving firms in an attempt to make themselves look better.
7. Was the company listed in last year's Yellow Pages?
If not, it could be a legitimate new company. However, it could also mean the mover's DOT license was revoked and he is trying to operate under a new name or the name of another licensed mover.
8. You should be able to meet or talk to the owner
If you can talk to the owner of the business, even if only by phone, you will be able to develop a feeling of confidence that he is experienced and capable enough to assure a professional move.
9. It is a good idea to get a recommendation
A satisfied customer is the best sales pitch for a mover. Remember, even a mover with a big franchised name is still a local business who is only as good as his local reputation.
10. Ask if the company is a member of its local trade association
Most industry trade groups were formed years ago to build confidence in the local industry's moving industry. It checks a mover's "Certificate", Worker's Compensation insurance coverage, and reputation before accepting him as a member.
I found this article and thought that it would be very usefull. Hope you enjoy it and find it usefull.
"What they say isn't always what they mean."
By Edward Caldwell
"Don't worry, this is the most you have to pay! This is a binding estimate!"
This is true, however, the price is binding ONLY for the services listed on the face of the estimate and for moving the articles listed on the table of measurements (known as the "cube sheet" in moving & storage language). If you think you will get a deal because the sales rep forgot to include that oak bedroom set on the estimate, think again! The driver will pay close attention to reconciling what you show him or her to be moved and what the sales representative has listed on the Table of Measurements document. You WILL be charged extra for items that you want moved, but are not listed on the Table of Measurements document.
"Don't worry, the most you have to pay is the estimate, plus 10%"
This is true for a non-binding interstate moving estimate, the most you are required to pay upon delivery is the estimate, plus 10%, however, the fine print (that you usually don't read) says that you; "...are obligated to pay the balance of the total charges within 30 days." So, if the Tariff charges exceed the estimate by more than 10% you're responsible for the extra charges.
"This price includes insurance!"
This may refer to the $0.60 per pound, per article carrier's liability for loss or damage that is automatically included in an interstate moving estimate. If so, you are in for an unpleasant surprise at claims settlement time ($.60/lb x 2 lbs. = $1.20 for a valuable Waterford vase). Make sure you purchase additional "Carrier's Liability For Loss or Damage" or that you have "full value replacement coverage".
"We won't charge you for that ________...(flight carry, elevator, long carry, piano handling charge, extra pickup, extra delivery, etc...)"Be careful when you hear this.
With this statement, the salesperson has just taken money away from the driver. These "accessorial" charges are paid exclusively to the van lines' driver as compensation for the extra time and labor required to complete pickup or delivery of your goods. The driver may not be so cooperative when it comes time to honor this promise, a promise that he or she did not have the opportunity to approve. Do you really want an angry driver handling your valuable household goods; is it worth the few dollars you think you will save?
"Don't worry, this estimate is on the high side!"
Typically in the business world you get three estimates and throw out the high and low. You should, however, usually believe the high estimate. The discounts are all approximately the same and most major movers use the same Tariff (base price) to calculate their estimates.
"Don't worry, the driver will pad wrap that ________ .."(painting, glass top, marble top, grandfather clock, mattress, etc...) or "We'll pad wrap it"...
This is what will happen on move day: The van line driver won't load the item(s) because they aren't properly packed for transit and the van operator doesn't want to assume the liability that comes with accepting an improperly packed item into his or her care and custody. If an item is sensitive or fragile it needs to be properly packaged and if it's not done in advance the driver will do it and add the cost to the estimate.
"We'll bring you into storage on an local hourly charge basis. Then, we will move you out of local storage on interstate weight basis. This will save you money!"
It is true that local hourly-based charges into storage are cheaper than weight basis Storage-In-Transit (S.I.T.) charges,
However, if a claim occurs you will be faced with finger pointing between the van line (under whose interstate authority the final interstate move was performed) and the local agent (under whose local intrastate authority the shipment was moved into storage on). It's called "split liability", and while you probably don't understand it, it can make settling a claim an absolute nightmare. Guess who loses?
What is my weight???
Apartment Move - You are moving from a studio or 1-bedroom apartment. Assumed total weight of move is 2,000 pounds.
Small Move - You are moving from a 2- or 3-bedroom apartment or very small house. Assumed total weight of move is 5,000 pounds.
Small to Moderate Move - You are moving from a very large apartment or small house. Assumed total weight of move is 7,500 pounds.
Moderate Move - You are moving from a 5-7-room house. Assumed total weight of move is 10,000 pounds.
Large Move - You are moving from a 7-9-room house. Assumed total weight of move is 15,000 pounds.
Very Large Move - You are moving from a very large or cluttered house. Assumed total weight of move is 20,000 pounds.
IS IT REALLY INSURANCE?
This article deals with cargo protection and storage protection.
Insurance for your goods is referred to as cargo (or transit) protection. Moving companies carry many forms of insurance coverage, one of them being cargo insurance. What movers offer you is an option to be compensated for any loss or damage to your goods while in transit with them. They are not selling you insurance. They are selling coverage and accepting a degree of liability in return for a premium paid. Even sales representatives confuse the fact. Only insurance companies sell insurance. The movers ask you if you want to be protected under their policy or not and to what degree.
Damage and lost items do occur on moves. There is much that you can do to prevent loss or damage, much of which is described in other sections on this server. A moving company is required, by law (Canada) to accept some degree of liability when traveling the roads. This basic, standard protection is 60 cents per pound (per article). For example, if damage or loss occurs to an item weighing 50 pounds, then the carrier's (movers) liability is $ 0.60 X 50 lbs. = $ 30.00. This is fine for items that are cheap and heavy, but not so good for a $ 500.00 lamp weighing 15 pounds!
Here comes the first gray area of "insurance". Take a figurine weighing 10 pounds. It is packed in a box weighing 50 pounds. You did the packing of the box. Different companies have different weighs of interpreting the application of $0.60 per pound. Some will give you the rate on the damaged item only, while some will apply the rate to the cartons weight (50 lbs. in this case). Then, there are some who will not give you a thing because YOU DID THE PACKING. Read any contracts and ask the moving company this question. Quite often, if you do the packing, you nullify any insurance compensation from the movers. It is a fair practice. A mover and its insurance company cannot insure contents of boxes that they have never seen. They also do not know if the contents were packed properly. As a result, if you pack it, you take the risk. There are companies who will negotiate on this issue, but the general rule is, if you pack it (or unpack it) you nullify any insurance coverage.
This option often referred to as "basic" or "no insurance" should cost you nothing since you get very little in protection. However, this may be enough if you can arrange your own coverage through your household insurance. Ask your insurance company or broker, you may find you do not need any extra coverage through the movers.
In general, there is only one other kind of coverage, replacement coverage. However, there may be other kinds offered between the basic coverage and the replacement coverage. One such possibility is called "Added Value Protection". Here the company charges a premium and increases the coverage from $0.60 per pound to a greater value, say $2.00 per pound (may vary).
Another offer may be Market Value or Depreciated Value coverage. This option should be compared against the cost of replacement value. Here, the market value of the damaged item is considered for compensation. Determining the market value of a piece of furniture yourself can be difficult. As a matter of fact, most insurance companies offering cargo protection to movers deal only with replacement costs these days. Watch out for the mover that tries to tell you that replacement coverage doesn't exist. It does and there should not be an excessive premium for it.
What you will pay for transit protection.
As mentioned earlier, there are four possible amounts of coverage.
1. Basic $0.60 per pound (minimum)2. Added Value3. Market or Depreciated Value4. Replacement Value
Basic coverage should cost you nothing. Nobody charges for this. It is included and is the minimum as required by law.
Added Value will cost more, but it varies depending on the increase in value. A typical charge is $1.25 per $ 1000 of declared value for coverage of $2.00 per pound.
Market Value coverage is going out of style. Typically, it would cost around $1.00 to $3.00 less per $1000 of declared value than replacement coverage. That would put it in the $4.00 to $6.00 per $1000 declared value range. You declare an amount of coverage. In the event of total loss of all your goods, you get back the total declared amount. In the case of damage to an individual piece, you would get back a maximum of the market value for that piece.
Replacement Value will fluctuate, as did market value coverage. Typical rates would be $7.00 to $9.00 per $1000 of declared value.
Did you catch all of that $X.00 per $1000 declared? It is tricky. Ok, this is how it is applied. As an example, let's say you are moving. Your moving consultant will ask you (among other things) ,"How much cargo protection do you want"?. Well, after considering all you have to move, you come up with $50,000 worth of goods. (See Inventory List). The consultant has also told you that all your goods weigh approximately 12,000 pounds. You look at your options.
Basic: Coverage @ $ 0.60 per pound x 12,000 pounds = $ 7,200.Cost = 0 Maximum coverage = $ 7,200
Added Value: Coverage @ $2.00 per pound x 12,000 pounds = $24,000Cost = @ $1.25 per $1000 declared value = $ 62.50
Market Value: Coverage against total loss is your declared value = $50,000 Coverage against loss or damage on individual piece is market valueRepairs covered up to cost of market valueCost = $5.00 per $1000 declared = $250.00
Replacement Value: Coverage against total loss is your declared value = $50,000Coverage on individual loss or damage is replacement valueRepairs covered up to replacement valueCost = $7.50 per $1000 declared = $375.00
So you can see that the cost to get cargo protection in place for your move can get a bit pricey. Not only that, but each kind of policy will have some sort of deductible to go along with it. Some won't, but some can be as high as $250. For example, you may pay a premium of $300 for cargo protection and then face a $250.00 deducible on top of it.
What is never insured
Don't risk it. There are things that are not insured, even if you pay for coverage! The most common example would be jewelry. Best to pack them up and take them yourself. Other items not normally insured are coins, stamps, documents, and food. There is no insuring items of sentimental value. A photograph will only be covered up to the cost of the film, for example. The same goes for software data. The loss of data is not covered, so back up your disks before moving!!
Generally, the interior workings of appliances, televisions, stereos, etc., are not covered by the mover unless the mover does some obvious physical damage to the piece. If the item was handled properly and something does not work after the move, it's your responsibility. If there is obvious damage to the item, there is a 99 percent chance the internal damage was a result of the rough handling and the movers will pay (up to your protection selection) for the repair.
Again, contents of boxes are not covered under cargo protection policies unless the mover (or an agent of the mover) has packed and unpacked the cartons. Usually, the mover will cover goods (up to the coverage you selected) for clear mishandling of the carton. If there is obvious damage to the exterior, generally the mover will compensate you.
Sets of furniture and appliances are not covered. That is, if you have a matching couch, love seat and chair, and the chair gets ripped, the mover is only liable to repair or replace (up to your coverage selection) the one piece and does not have to touch the matching pieces, even though they may not match after repair, recovering, or replacement of the one piece.
Extraordinary Value
You will have to declare items of extraordinary value. For example, if the movers are taking your car, they will need a value for the car. You may have a painting or a sculpture worth a fair amount. The idea is, that despite all the cargo coverage there will be a limit on the amount the insurance company will pay out on one given item. Ask your moving consultant what the limit is. If you have any item in your place that exceeds that value, then you must tell the mover. The item(s) of extraordinary value will be noted on the bill of lading and you will be covered.
Dangerous Goods
Do not pack an item classified as dangerous goods. If any damage resulted from a dangerous good, your insurance would be void. You wouldn't even get $0.60 per pound. Ask your moving consultant where your local disposal site is.
Generally speaking, each moving company will charge you a premium for cargo protection. When you move locally, the rates and methods of assessing rates will vary from company to company. Some may charge you a flat rate, some will charge based on how long the move takes (hourly), and some include it in their rates. No matter which way you get charged, you should be asking some important questions.
1) What is the total coverage you get?2) What is the limit per individual item?3) What is the deductible?4) Is the coverage market value or replacement value?5) Ask who the company uses for furniture repairs. This will provide an idea of the quality of repair you can expect if you have damage on your move.
Storage Insurance
Generally, if your goods will be stored in a warehouse for an extended period of time, you will need separate insurance for this. This can be arranged through the storage facility, your mover or your own insurance company. Storage facilities generally charge between $1.00 and $2.50 per $1000 of declared value per month of storage. The rules about dangerous goods and items of extraordinary value apply here as well.
SHOPPING PRICE FOR INTERSTATE MOVES!
People who are moving are rightly concerned about moving costs and obtain many estimates in search of the best price. Unfortunately, the "best price" doesn't really exist in our business. Let me explain...
Most of the major movers use the same base rate book; for 1998 it's called "Tariff 400-M" and it is published by the Household Goods Carriers' Bureau. You will see Tariff 400-M listed as being used on each of your estimates. Tariff 400-M contains the charges for transportation, packing, storage, etc.. These charges are essentially the same for all of the major moving companies (if each has the same weight and mileage estimate). This being true, if you were to clone your move and ship your goods with each of the major movers, you would find that while you may have had four vastly different estimates, in the end each mover was just about the same cost (provided that each mover is giving the same level of discount).
So why were your estimates so different? "Low-Balling" (purposely giving a low estimate to mislead the customer) or "weight bumping" (over estimating) may be the reasons. Inexperienced estimators are another.
In the end, you may pay the actual weight and mileage charges, regardless of the estimate. So be aware of how it works; and hopefully, you won't be misled by a salesperson who cares more about commission than the safety of your goods and the accuracy of your estimate.
One of the best options for the consumer would be to obtain a binding or guaranteed quote. This way the moving company agrees to do a specific job for a specific price. As long as your inventory stays the same and there are no access problems, you know exactly what the cost will be.
Finally, our advice is:
1. Get everything in writing.
2. Do not believe everything you are told.
3. And understand that you are about to entrust everything you own and cherish to complete strangers during one of the most stressful times of your life. Take time to make a careful, informed and thoughtful decision.
THE HOUSHOLD GOODS DISPUTE SETTLEMENT PROGRAM
This program was developed by the American Movers Conference in 1981 as a less costly alternative to the court system to resolve disputes involving loss and damage claims that may occur during a move. Initially a voluntary program, it has been so successful that in 1996 the Federal Government made participation in a "Dispute Settlement Program" mandatory for all household goods carriers.
What Is Arbitration?
Arbitration is a substitute for going to court to settle disputes. Under arbitration procedures, two parties unable to resolve their differences submit their dispute to an impartial third person for a final determination. The proceeding is governed by rules and procedures agreed upon in advance by both parties.
Who Sponsors This Program?
The American Movers Conference (AMC) is a national trade association representing carriers and agents of the household goods moving industry. AMC is sponsoring this dispute settlement/arbitration program so that its member carriers may offer an effective, fair and expeditious way to solve disagreements in connection with loss and damage claims on household goods.
Who Actually Administers the Arbitration Procedures?
The program will be administered by the American Arbitration Association (AAA), an independent, non-governmental organization, not affiliated with either the American Movers Conference or its member household goods carriers. The AAA was chosen to run the program because it is recognized as the leading independent arbitration authority in the country. It is a public service, non-profit agency with 33 offices nationwide, which is dedicated exclusively to the resolution of disputes of all kinds.
Has This Program Been Approved By an Outside Agency?
The Interstate Commerce Commission (ICC), which regulates the interstate operations of household goods carriers, has approved this program. By law, the ICC is responsible for overseeing the functioning of any approved dispute settlement program.
What Are The Legal Effects Of An ICC Approved Program?
The Household Goods Transportation Act was passed by Congress on October 15, 1980. It provided guidelines to permit carriers to establish dispute settlement/arbitration programs, subject to ICC approval. In addition, the Act contains certain provisions relating to the legal effects on shippers (consumers) and carriers. You should carefully consider the legal effects of the following provisions of the Act before you decide whether or not to use the program:
1. To encourage carriers to participate in arbitration programs, the Household Goods Transportation Act of 1980 provides that where a court action is instituted to resolve a dispute between a shipper (consumer) and a carrier concerning the transportation of household goods, reasonable attorney fees must be awarded the shipper: IF the shipper submitted the claim to the carrier within 120 days after the date the shipment was delivered or the day on which the delivery was scheduled, whichever is later; AND, IF the shipper prevailed in the court action. In addition, one of the following must be applicable:
a. There was no ICC approved dispute settlement program available for use by the shipper to resolve the dispute.
b. A decision resolving the dispute was not rendered within 60 days of receipt of written notification of the dispute or an extension thereof as provided under the rules of the program, or under 49 USC 11711 (b)(8).
c. A court action is instituted to enforce a decision rendered under the dispute settlement program.
2. Additionally, to discourage shippers from filing non-meritorious claims in court, the Household Goods Transportation Act provides that a carrier may be awarded reasonable attorney fees where a shipper has brought court action in "bad faith," either:
a. After a decision has been issued under an approved dispute settlement program; or
b. After a shipper has instituted a proceeding under such a program but before a decision resolving the dispute is rendered, provided the dispute is finally resolved within the 60-day period allowed or a valid extension is granted as stipulated by the program.
When Would I Use This Arbitration Program?
This program was established for the settlement of disputes involving loss and damage claims on interstate shipments of household goods. Under ICC regulations, a claim for loss and damage to your household goods during a move must be filed with the carrier within nine months after delivery. However, the above mentioned legal effects may be affected by the date a claim is filed. The carrier must acknowledge any claim within 30 days of receipt, and within 120 days must deny or make an offer in settlement of your claim. If you and the carrier cannot resolve a dispute in connection with your claim, you may request arbitration procedures administered by the AAA. First, however, be sure you have exhausted your remedies through the regular claims process and the carrier has made its final offer.
How Does The Arbitration Program Work?
This arbitration is voluntary and optional, and neither the carrier nor you-the shipper-is committed to arbitrate a claim dispute until both complete and sign the prescribed forms to initiate the procedures. Either you or the carrier may request arbitration from the AAA. However, neither party may force the other to arbitrate a disagreement. Arbitration is voluntary, and each party must agree to it. If a carrier does not agree to take a dispute to arbitration, the reason for that refusal will be clearly stated.
After both carrier and shipper agree to arbitrate and sign the official "Submission to Arbitrate" form, they appoint the AAA administrator of the arbitration. The AAA then appoints an arbitrator from its national panel of arbitrators who will render a decision that is legally binding on both the carrier and the shipper. AAA arbitrators are trained and experienced volunteers from all walks of life. They are never in any way connected with either party in a dispute they are arbitrating. The arbitrator's decision is based on all statements of fact and documents relevant to the claim. The standard procedure is "desk arbitration" where the arbitrator conducts the arbitration on the basis of written documents submitted by both parties. Prior to the arbitration, both parties are provided with copies of everything that the arbitrator will base his decision on.
An optional oral hearing of the evidence in a dispute can also be arranged at an additional cost where both the carrier and the shipper agree to the oral hearing and the date, time and location.
How Much Does Arbitration Cost?
AAA arbitrators are not paid for settling disputes under this program. The AAA does, however, charge an administrative filing fee to institute the standard "desk arbitration" procedures. That fee is paid by the carrier when it agrees to a shipper's request to take a claim dispute to arbitration. The AAA charges an additional $100.00 each to both carrier and shipper for an optional oral hearing as of January 1, 1992. The cost of an optional oral hearing is subject to change at the discretion of the AAA.
What Can An Arbitrator Award And What Is The Legal Status Of That Decision?
The arbitrator may grant any remedy or relief the arbitrator feels is just, equitable and within the scope of the agreement between the parties and the rules of the program. In general, the amount of any award may not exceed the carrier's liability under the Bill of Lading. In reaching the decision, the arbitrator considers applicable federal law, ICC approved tariff rules, as well as applicable usage and practices of the moving industry. Under the rules of the program, the arbitrator does not have jurisdiction to consider claims for consequential or incidental damages, mental anguish, loss of wages, punitive damages, alleged fraud, violations of the law or any claim which cannot be arbitrated under the law, such as allegations of criminal activity. The arbitrator's decision is legally binding on both parties and can be enforced in any court having jurisdiction over the dispute.
Under rules of the program, there is a limited right to appeal on the arbitrator's award; however, courts will usually not revise findings of fact or law in a binding arbitration award.
How Do I Request Arbitration?
A shipper may request arbitration by writing to the American Movers Conference, ATTN: Dispute Settlement Program, 1611 Duke Street, Alexandria, Virginia 22314- 3482. Your letter of notification to the American Movers Conference must be sent within 60 days after a final offer or denial on your claim has been made in writing by the carrier.
In addition to your name, address and phone number, the following information should be included in your letter to the American Movers Conference: the name the shipment moved under, identification number of shipment, dates and location of pickup and delivery, and any assigned loss and damage claim number. The American Movers Conference will promptly send written notice of your request for arbitration to the carrier. The carrier must then respond to you within 15 days by either sending three signed copies of the required forms and the program rules to you, or by advising you in writing that it declines to arbitrate the dispute. If a carrier does not agree to take a dispute to arbitration, the reason for that refusal will be clearly stated.
How Is An Arbitration Case Opened With The American Arbitration Association?
You have 15 days from the date of receipt of the forms and information from the carrier to elect to initiate the actual procedures. The shipper accomplishes this by completing and signing the "Submission to Arbitrate" and "Claimant Questionnaire" forms, and mailing them with other supporting documents to:
American Arbitration Association
Attention: AMC Household Goods Dispute
Settlement Program
140 West 51st Street
New York, New York 10020
How Long Before a Decision Is Announced?
The arbitrator will make an award in each case no later than 60 days after receipt of all necessary forms and documents, or in the event of an oral hearing, within 30 days after the arbitrator concludes the hearing. The arbitrator may, however, extend the time period in order to obtain additional information to resolve the dispute.
How Do I Obtain More Information About This Arbitration Program?
You may request program rules and sample forms from either the carrier or the American Movers Conference.
American Movers Conference
1611 Duke Street
Alexandria, VA 22314-3482
Sherman Smith & Associates
DIVORCE AND THE TOUGH FINANCIAL DECISIONS
IF YOU'VE EVER BEEN THROUGH A DIVORCE OR KNOW SOMEONE WHO HAS...YOU KNOW THAT IT'S RARELY SMOOTH SAILIING DURING THE PROCESS OF MAKING TOUGH FINANCIAL DECISIONS. BUT THERE IS A VERY COMMON DECISION MADE THAT CAN UNKNOWINGLY COST A BUNDLE...
LOVE AND MARRIAGE, LOVE AND MARRIAGE, GO TOGETHER LIKE...Well, you know the song. But more than 50% of marriages end in divorce, and the lyrics quickly change from "love and marriage" to "alimony and child support." Most people know their alimony payments are tax deductible and most also know alimony received is taxable income. But some innocent and seemingly harmless changes in the way alimony is paid can wipe out the deduction and make receipt of it tax free. And in an already emotional environment, more misunderstandings and legal battles are less than welcome.
According to the IRS, alimony can be claimed as a deduction in the year paid if the payment is made in cash. That's the key point - it has to be paid in cash or by check. If it is used as part of a buyout or trade for personal items, furnishings or home equity, the deduction is disallowed. This can be a major issue, especially where home equity buyouts are concerned.
Picture a divorce situation where, after a legal battle, it is determined one spouse is obligated to pay the other alimony. And because the legal settlement took some time to reach, there is back alimony owed by Spouse A to Spouse B of $20,000. Additionally, Spouse A is leaving the marital home but has the right to half the equity in the home, which comes to $20,000 for their share of the home equity.
So...in the interest of keeping things simple and not having to take out loans or sell the marital home, the parties agree to trade the $20,000 owed to Spouse A in home equity for the $20,000 owed to Spouse B for back alimony. While this may appear to be a fair and reasonable way to settle the issue, it does not meet the IRS requirement for alimony to be paid in cash in order for it to be tax deductible. This issue is surprisingly common, and just recently the IRS Tax Court disallowed an ex-husband's deduction for alimony (2006-122 Rocke Richard LaBozetta, Petitioner v. Commissioner of Internal Revenue, Respondent) because it was a trade of equity for back alimony and not paid in cash. Had the ex-husband known this prior to the settlement, he may have structured the settlement agreement differently to take advantage of the tax deduction.
Again, this could be a very common mistake for many individuals and could be a very costly mistake when counting on an extra tax deduction. It is important to take the time to meet with divorce, tax and real estate professionals that can help you make the correct financial decisions. If you need or know of someone who needs a referral for a tax or divorce professional, please contact me and I will be happy to recommend either to you. As well do not forget that I am a trained Separated Family Specialist© (SFS).
Separated Family Specialists® (SFS) are trained to a innovative, constructive, approach to solving the problems inherent to owning real estate when a family separates or when a spouse leaves the marriage.
Divorce: What You Need to Know About Your House, Your Home Loan and Taxes Click Here
Tustin Ranch We finally had enough equity in our home to afford to move. My husband had just received a promotion and our debts where paid off. Now was the time to begin looking for our dream home. We really wanted a new home and it wasn't long before we found it. But now we had to sell our existing home.
The new home tract said that they would give us three months to sell our home. If we hadn't sold it within that time frame we would loose our dream home. We immediately contacted three Realtors® to get the process started. The first one was from a nationwide franchise; the second one was from a very large local company; and the third was from a small local company.
The first Realtor® stressed the importance of her company and that they had a strong connection with a relocation company. They had buyers moving here on a daily basis. She also suggested that we test the market for the right price. " We don't want to leave any money on the table" she said. The second Realtors® conveyed the importance of their companies advertising and all of the open houses that she and her partner would do. I wasn't comfortable with the open houses but I did not want to loose my dream home. When I asked them the price the home should be listed at they replied "we are experts at that and we will determine that for you, don't worry about that". The third Realtor® was very low key. He was very knowledgeable about our tract and about Tustin Ranch. He suggested a price that he felt would get us a buyer within our time frame. He even gave us guarantees on everything that he did. He said, "His goal was to get us moved into our dream home".
Now we had to choose which Realtor® would get our house sold. After careful consideration we choose the nationwide franchise. We felt that the larger company would have more access to buyers and we needed one soon. Boy did we make a big mistake. First of all the nationwide company required us to sign a six month listing agreement. The agent suggested we list the property $10,000 over the last sale because the market was good and her company had plenty of relocation buyers. We were excited and could not wait to move into our new home.
The first month passed and no buyers, about half way through the second month I called our Realtor® and asked her to lower the listed price. I had not spoke to her since she listed our property. At the end of the second month the new home sales agent call to tell us that we only had thirty days before they were going to cancel the purchase of our dream home. They also suggested that I consider listing my property with Sherman Smith & Associates. As it turned out this was the small company that we had considered. I called my Realtor® to see if she would cancel our listing agreement. "No way" she said, "I have worked to hard to let it go"
The next day I was reading the Sunday Los Angeles Times. In the real estate section is a real estate lawyer-real estate broker (Robert Bruss) who writes a column every Sunday. This week's column was on Should I list my home with a National Franchise, large local office or a small local office? The answer was it does not matter the size of the office. What matters is the ability and the success record of the individual agent with whom you list your home. The agent should have a great knowledge for your area and real estate in general.
We were now determined to get out of our listing agreement and list our home with Sherman Smith & Associates. We had to do this quick or loose our dream home. I had very long conversation with my agents broker and he canceled the listing agreement. We then listed the property with Sherman Smith & Associates. The activity immediately picked up and the property sold within three weeks. We learned a valuable lesson that almost cost us thousands of dollars. First never sign a listing agreement that can't be canceled. Second the size of the real estate company has nothing to do with selling my home. If you ever need to sell your home I highly recommend Sherman Smith & Associates.
Before you list your home with anyone you owe it to yourself to review Sherman Smith & Associates 6 home guarantees.
Sale By Owner...Is It Right For You?
Many homeowners believe that to maximize their profit on a home sale they should sell it themselves. At first glance, they feel selling a home is simple and why should they pay a broker fees for something they could do themselves? In fact, close to 15% of all the homes sold last year in Orange County were sold for sale by owner (FSBO).
However, almost half of the FSBO's said that they would likely hire a professional next time they sold their home. Thirty-five percent said they were unhappy with the results they achieved by choosing FSBO. Why?
Here it is. Many FSBO's say that the time and selling process, paperwork and everyday responsibilities involved were not worth the amount of money they saved in commissions. For others, the financial savings were even more disappointing. By the time they figured the amount of fees paid to outside consultants, inspectors, appraisers, title companies, escrow and loan officers, marketing, advertising... they would have been better off having paid the broker's fee which would have included many of these charges up front.
Selling a home requires an intimate understanding of the real estate market. If the property is priced too high, it will sit and develop a reputation for being a problem property. If the property is priced too low, you will cost yourself serious money. According to the National Association of Realtors (NAR), FSBO's get 11% less money doing it themselves. FSBO's discovered that the lost money as a result of poor decision of not using a professional trying to save a few bucks in commission.
Before you decide to sell FSBO, consider these questions and weigh the answers of assuming the responsibility versus employing a professional. A little time spent investigating up front will pay off tenfold in the end.
Questions To Consider:
Do I have the time, energy, know-how, and ability to devote a full forced effort to sell my home?One of the keys to selling your home efficiently and profitably is complete accessibility. Many homes have sat on the market much longer than necessary because the owner was unwilling or unavailable to show the property. Realize that a certain amount of hours each day is necessary to sell your home.
Am I prepared to deal with an onslaught of buyers who perceive FSBO's as targets for low balling? One of the challenges of selling a home is screening unqualified prospects and dealing with lowballers. It often goes unnoticed... how much time, effort and expertise it requires to spot these people quickly. Settling for a lowball bid is usually worse than paying broker commissions. You see most buyers already know going in that you don't have any real estate commissions to pay, so they tend to start out lower. Plus they feel you really don't know the market value of your home anyway.
Am I offering financing options to the buyer? Am I prepared to answer questions about financing?One of the keys to selling, whether it's a home, a car... anything, is to have all the necessary information the prospective buyer needs and to offer them options. Think about the last time you purchased something of value, did you make a decision before you had all your ducks in a row? By offering financing options you give the home buyer the ability to work on their terms and open up the possibilities of selling your home quickly and more profitably. A professional real estate agent will have a complete team, from lenders to title reps for you to utilize...they'll be at your disposal.
Do I fully understand the legal ramifications and necessary steps required in selling a home? Many home sales have been lost due to incomplete paperwork, lack of inspections or not meeting your states disclosure laws. Are you completely informed of all the steps necessary to sell real estate? If not, a professional would be a wise choice. Making a mistake here could be disaster.
Do I have the capability of handling the legal contracts, agreements and any disputes with buyers before or after the offer is presented? Ask yourself if you are well versed in legalese and if you are prepared to handle disputes with buyers. To avoid any disputes it is wise to put all negotiations and agreements in writing. Many home sales have been lost due to misinterpretation of what was negotiated.
Have I contacted the necessary professionals....title, inspector (home and pest), lender and Title company? Are you familiar with top inspectors and Title companies? Don't randomly select lenders, inspectors, and title reps. Like any profession there are inadequate individuals who will slow, delay and possibly even cost you the transaction.
If you have any other questions concerning selling your home, you will find many FREE Reports by visiting http://www.shermansmith.com/.
You have heard the expression "Buyer Be Ware"! Well when it comes to Zillow it is "Buyer & Seller Be Ware". Despite warnings, many people are still getting burned using Zillow as a guide to property values. Buyers are backing out of their purchases because of wrong values that were determined by Zillow. Sellers are asking over inflated values because of wrong values that were determined by Zillow. Yes, sometimes Zillow is right on.
Here are a few examples:
These are example of the erroneous values that Zillow comes up with that could effect a buyer or sellers decision. The problem is Zillow, the laughingstock of the real estate business, is just grossly inaccurate. And it cuts both ways, often coming in outrageously high or low, depending on the property. So use Zillow at your own risk if at all.
Now a word from my attorney: This is just the opinion of Sherman Smith and is not to be relied on as to the accuracy of Zillow.
So, What About the Housing Market?
For a few months now the conventional wisdom is that the housing market is in a tailspin. The problem is that recent data is refuting such thoughts. So what is going on? Well, the housing market has slowed, as any realtor or new homebuilder will gladly tell you. But mortgage interest rates are still quite low and were even dropping again until recently. This continues to make the housing sector desirable, especially as prices are declining in a softening market.
If you own an existing home and you want to sell now, you probably won't fetch as much money as you would have a year ago. In fact you will probably have a hard time getting people to even come and view your house as inventories rise and the market is tilting heavily toward buyers for the first time in about five years.
All in all, U.S. home sales are down about 8 percent over the past year. But it's important to remember that the decline follows a red-hot housing market that was destined to cool off eventually. And even then, the numbers continue to contradict themselves. For example, the Commerce Department reported this week that spending on private residential construction projects fell for the ninth consecutive month in December, pushing total construction outlays down by 0.4 percent. But for all of 2006, construction outlays were still up 4.8 percent.
And the number of mortgage loan applications rose in January, even though the figure is down from a year ago. So what's the message? Well, certainly those who watch the housing industry like to think that they have hit bottom. And the Federal Reserve Bank even hinted at this in its message about the economy yesterday. But that may be a lot to expect. Housing surged so much over the past few years that a little correction may not be enough. Nevertheless, as long as interest rates remain low (and kudos to the Federal Reserve Bank on that note), the cost of financing a new home will still be affordable for most Americans.
If pricing remains soft, as it has been in much of the country, people will continue to buy homes. They may not buy as many new half a million dollar homes, but they will buy homes. If you are a home seller, the thing to remember is that the easy days may be over for a while. No longer can you list your home and hope for competing bids. So if you need to sell, consult with your realtor about how to make your house more attractive on the market. The short list: paint. It's the cheapest and best thing a seller can do. And look at any deferred maintenance that might come up in an inspection report. A new water heater, clean carpets, even a thorough scrubbing of the kitchen and bathrooms can make you money. And that money becomes your profit.
Your home is a big investment. And if you need to sell right now, the environment has changed. Do your homework and be willing to make your property stand out from the rest. The good news is that when you look to buy you will find the most favorable environment in years. Every thousand dollars or so you make on that transaction is money you can put toward retirement.
Q-My wife and I are looking into buying a second vacation home in Palm Springs. I know the rules have changed over the years, but can I still deduct my mortgage interest on that home?
A-You probably can. Here's the way it works. The second home must be a "qualified residence," which means it must have a permanent toilet, kitchen and sleeping facilities. I'm going to assume your home will qualify, but for folks looking to buy an RV or a boat as a "second home," things could be different. Under current law you can take the mortgage interest deduction on your primary residence and ONE other residence. So your second home in Palm Springs should be fine. But if you also decide to buy a cabin in Mammoth in a couple of years you will have to choose which of the two you want to designate as your "second home" for tax purposes. Obviously the one with the higher mortgage interest payment would make the most sense.
If you have a real; estate question of your own that you would like me to answer, please click here or send your questions to: shermansmith@pacbell.net .
"OPEN MOUTH, INSERT FOOT ..."
The door bell rings, you grasp the knob, and throw one last glance around. As your daughter quickly puts the vacuum cleaner away, you open the door with a big smile. There stands an agent and prospective buyers.
" Hi! ... How are you?... Come In." You say.
Those are probably the last three unsolicited comments that should pass your lips for the remainder of the visit. The real estate field is littered with stories of potential sales that were killed by sellers who inadvertently uttered the wrong thing.
Before continuing, you should understand that the types of 'better left unsaid' things discussed here have nothing to do with the Seller's Disclosure Addendum, or hiding anything from a potential buyer. To the contrary, all of the suggested "DON'T SAY IT!" topics presented here are based on personal preferences. Being human, sellers often find it difficult, if not impossible, to keep from offering opinions or information that they think makes them appear credible to the buyer. Without knowing the life's experiences and propensities of each buyer you see, how can you keep from opening your mouth and inserting your foot?
Please don't talk about:
Please don't OFFER the following statements as the reason you are selling:
If you get the distinct impression that everything you say to a potential buyer could get you into trouble down the road then you have correctly interpreted this article. Since you are under contract with a real estate agency, the best course is to make yourself scarce after the greeting. In fact, a good course of action might be to say: "Please take your time viewing my home. And if I do not see you before you leave, thank you for coming. You'll have to excuse me, but : important phone call, helping kids with project, deadline at work, etc." This extricates you from a potential "foot-in-mouth" encounter later, and does not make you appear to be avoiding the buyer's questions. Any Questions?
This is a re-print of February 19, 2007 Businessweek.
Why Housing Hasn't Hit The Skids Low rates are a major factor So this is the much-feared "housing bust"? Bust Lite is more like it. Existing-home prices are as high as they were a year ago, while sales have receded only to 2003 levels. The only extreme decline is in construction: Builders are trying to get rid of the houses they've already built before they put up more. The overhang of unsold homes could be back to normal by around midyear.
The credit goes, at least in part, to low interest rates. Fixed-rate 30-year mortgages averaged a modest 6.2% in the last quarter of 2006-well below a decade ago. That, combined with income growth, means houses in most areas remain affordable even though prices rose more than 50% nationally in the past five years. The affordability index of the National Association of Realtors is still over 100, meaning a family making the median income can afford to buy a median-priced house.The market began gaining momentum in 2001 when the Federal Reserve started lowering rates to end a recession. Corporations cut back on borrowing, but homebuyers exploited the low-cost money. Says Citigroup economist Steven Wieting: "The housing sector acted as a bottom feeder, taking advantage of cheap capital flows."The surprise is that low rates are still keeping a floor under housing. Thirty-year mortgage rates are no higher than in June, 2004, even though the Fed has since pushed up the federal funds rate by 4.25 percentage points. It's the same in Britain, where long-term rates have actually fallen since 2004 despite short-term rate hikes by the Bank of England. No surprise: After a brief lull, Britain's housing market is booming again.Globalization and financial innovation are two key factors in keeping rates low. Investors know more about the loans they're buying, so they will pay more for them. "It's become a much more attractive asset class, hence more dollars are chasing the mortgage market, hence lower rates," says Bryan Whalen, a portfolio manager at Los Angeles-based Metropolitan West Asset Management. As recently as three years ago, he says, investors in mortgage-backed securities received two-page summaries of the portfolio. Now they get data on each loan.Credit default swaps, which let people bet for or against a bond or loan's creditworthiness, have also improved transparency. If investors bet heavily against an issuer's securities, its lending costs are driven up. "This pushes out the marginal lenders," says Whalen. That creates a healthier market-and ultimately, lower rates.
I Can't Complain, My Tenant Is Putting My Kids Through College!
It was 1981 and my second daughter was just born. I now had responsibilities above and beyond the day to day cares. I had two kids that would someday need to complete four years of college. How would I ever be able to save enough money to pay for this? I looked at several options. I could save my money. I could try my luck in the stock market. I could buy an annuity or mutual funds. In any event, I was going to need $15,000 to $30,000 per child, per year, for at least four years of school.
I had been selling real estate for about three years at this time. I knew that real estate was a good, long term investment and we had just gone through a down turn in the real estate market. Now would be the time to buy a long term real estate investment that could be used to help pay for my kids' college education.
Would I buy a condo, house, duplex, triplex or multiple units? The answer was easy. I had very little money. I needed to find something that I could buy with very little down and would come close to carrying itself with the rents.
Shortly after I started to look, I came across a one bedroom condo in Lake Forest, California. The real estate market had caused prices to decline and the owners of this condo now had no equity. As a matter of fact, they were in a negative equity position. They owed more on the property than it was worth. Because of their position, they were willing to sell the property on a contract of sale, just to get out of the property. What this meant to me was that I could buy the property with four or five thousand dollars down and not have to qualify with a lender. The benefit to the seller was that they could sell the property and move on to bigger and better things. The benefit to me was that I could buy a rental property with less than 10% down. It was a win win situation. Yes, there were risks, but we were both willing to take them.
The rents on the property almost covered the expenses of the property. After the tax benefits were figured into the equation, it was a real break even. I bought the property. Within a month, the neighbor upstairs from the Lake Forest condo called me to ask if I would like to buy her condo the same way. Having two daughters that would need to go to college, I said yes.
I purchased both properties on a land contract and held them for about five years. At that time I refinanced the properties on fifteen year loans. With the drop in interest rates, the rents still covered the expenses.
There have been times when I wondered why I have tenants. Then I remind myself that I can't be mad at my tenants, they are putting my kids through college. Not only are the tenants putting my kids through college, but I have enjoyed the tax benefits of rental property. This has saved me thousands of dollars over the years. With the increase in rents over the last few years, I was able to accelerate my payments and pay off both of my condos.
In 2001 my oldest daughter graduated from USC with no student loans. In 2004 my youngest daughter graduated from Westmont College with no student loans. Both of these colleges were $30,000+ per year. I must thank all of my tenants for their support because they put my kids through college.
Oh, there is one other side benefit to this plan. When my daughters graduated from college I gave them the keys to their first condo. Their only payment will be to pay off the loan that helped put them through school.
Grandma Does Not Want To Move!
Try Thinking in Reverse!
Deloris is a sweet, 68 year old grandmother with a problem. Money, or more accurately, a lack of it. Through no real fault of her own, she finds herself as an unemployed widow with a $ 787 per month house payment and a life savings of just under $14,000. She has refinanced her home, so much of her available equity has already been put to use just meeting her living expenses. Not exactly a glowing formula for a comfortable retirement that could see her living another 20+ years. Deloris did not want to sell her favorite home but could no longer afford to stay where she is.
What can she do asked her daughter Linda? After giving it a few minutes Sherman Smith of Sherman Smith & Associates suggested that we think in reverse. A Reverse Mortgage that is. For senior home-owners (age 62+), a Reverse Mortgage can be a blessing because it allows her to continue living in her present residence without making another house payment. With the Reverse Mortgage program, available equity is turned into tax-free available cash (or monthly payments for life) that can be used in any manner she chooses. Home improvements and repairs, a new car, funds for medical insurance or medications, a vacation home, or that vacation cruise-of-a-life-time.
For Grandma Deloris, the reduced equity in her home wouldn’t make a cash payment plan possible, but the Reverse Mortgage did mean that her existing mortgage was paid in full and her related payments stopped, for good. Deloris now gets to live in her favorite home for the rest of her days and has an additional $ 787 per month that she can devote to living expenses. Or maybe that cruise she always wanted to take. If you know a special someone who can use help like this please contact Sherman Smith at (714) 544-5445 or email at shermansmith@pacbell.net.
Contact Us | 1031 Alternative | Tenants & Landlords | Mortgage Glossary | Privacy Statement | Resources | Escrow Glossary | Testimonials | MultipleListingsService | Mortgage Information | Buyers Information | Seller Information | School Information | Who Is Sherman Smith | Real Estate | Multiple Listings Search | Utilities Companies | Real Estate Glossary | Home | Mello-Roos | ARM Calc | APR Calc | Fixed Rate Mtg Calc | 15 vs 30 Year Mtg Calc | Mtg Tax Savings Calc | Balloon Mortgage Calc | ARM vs Fixed Rate Calc | Mortgage Qualifier Calc | Maximum Mortgage Calc | Mortgage Payoff Calc | Rent vs Buy Calc | Refi Interest Savings Calc | Refi Breakeven Calc | Mortgage Calculators | My Blog
Copyright © 2008 Sherman Smith & AssociatesPortions Copyright © 2008 a la mode, inc.Another XSite by a la mode, inc. | Admin Login| Terms of Use| Site MapAll rate, payment, and area information are estimates and approximations only.