You May Need Noah's Ark One Day

Flood Insurance Rate Hike Imminent

More than 1 million home owners living in older houses along the coastlines and riverbanks of the United States are preparing for federal flood insurance rate hikes effective Oct. 1 under a law passed in the wake of devastating storms.

Congress passed the law in an effort to balance a $24 billion deficit in the National Flood Insurance Program, which had growing losses from Hurricane Katrina in New Orleans in 2005 and earlier disasters. The rate increase is designed to make property owners pay for the true risk of living in high flood hazard areas, including coastal areas of Florida, New Jersey, New York, Texas, and Louisiana, and inland states prone to river flooding.  Members of Congress from high-risk flood states want to delay the higher rates so they can gather more information on the impact on property owners, but with next Tuesday's deadline, time is running out.

The act requires the Federal Emergency Management Agency to phase out insurance subsidies enjoyed for decades by owners of homes that were built in high-risk flood zones before the creation of the original federal flood insurance rate maps and building standards, which in most communities occurred in the 1970s and 1980s.

The act comes on top of a nationwide remapping of flood zones, which in some coastal areas has moved some properties into newly widened hazard zones, exposing them to rate increases.  More than 80 percent of the 5.6 million properties nationwide covered by the $1.12 trillion program already comply with existing standards and would not see any change in their policies, at least for the time being, FEMA director Craig Fugate told a hearing of the U.S. Senate Banking, Housing and Urban Affairs Committee on Sept. 18. He acknowledged that the rates of those homeowners in compliance could go up, too, if new maps reveal higher flood risks.

If you have any questions, feel free to contact James Y. Kuang at (626) 371-5662 or by email -james.kuang@coldwellbanker.com

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Source: "Coastal, Riverbank Homeowners Brace for U.S. Flood Insurance Hike," Reuters (09/24/13)

Be A Psychic, Read Some Minds

Once upon a time I took a psychology class.  I expected to be able to read people’s mind if I am in contact with them after I complete the course.  Well, immediately the instructor made it plain and clear to everyone in the class what the results will be.

“You will not be able to read anyone’s mind after this class.  It wasn’t what psychology is about”

First of all, why would I, or anyone want to read people’s mind?

For me it was simply just having that advantage of knowing what someone’s next step or plans are so I can take the initiative.  It’s pretty much similar to knowing the future.  Imagine you know what tomorrow’s winning lottery numbers will be?  Wouldn’t that be something to dream about.

So, same concept if you can read a seller’s mind, you gain an advantage, or know better than to bother with them.  Well, I have worked with sellers representing them, and still dealt with sellers when I am representing with buyers.  Working with sellers have allowed me to pretty much read their mind.  They mainly have 3 ways of thinking that will determine their decisions.

1.) MONEY MONEY MONEY - These sellers only have money on their mind.  Their sole purpose of selling is to make a profit.  They don’t want to hold on to their property but they do have to sell at a certain price or else they take a loss.  If worse comes to worst, they would have to take a loss of course.

2.) TESTING THE WATER - These sellers don’t really have an urgency or need to sell.  I mean the idea of what they can do after they sell their property has tickled their dreams but not enough to motivate them to be serious about selling.  However, they figure if they can and only if they can get an “X” amount of dollars, then they wouldn’t mind selling.  Otherwise, they will continue with what they are already doing with their home, whether it be living in there or renting it out.  This is where you see expired listings and they never try to sell again.

3.) LIFE EVENT - It could be a job, family, or just want a new life that motivates these sellers.  These sellers are the serious and motivated sellers you want to work out a deal with.  They need to sell and are much more likely to work with you.

Ultimately every seller is selling so they can move on to their next step in life.  Some are more urgent and serious about it than others.  What you know about a seller can give you a winning edge.

So, if you are selling, would you want a buyer to read your mind?  Let me help you cast a spell on buyers to make them pay top dollar for your home.  Let my “demand creation strategy” do the trick for you and no buyer will bother trying to read your mind.

Either that, or have me help you buy your next home and I will read the sellers mind for you so we can strategize!

By The Way...if you know someone who would appreciate the personal service I provide and is thinking of buying or selling a home I'd love to help them, please call or email me with their name, number and email address and I will be happy to follow up with them for you.

If you have any questions, feel free to contact James Y. Kuang at (626) 371-5662 or by email -james.kuang@coldwellbanker.com

www.cbprosperity.ca
www.facebook.com/JamesYKuang