Tuesday, May 7, 2013

Home Owner Frequently Asked Questions of Homes In Transition (Part 2)

Continuing on with our series of frequently asked questions from home owners.  You can find Part 1 here.  Onto Part 2.

What is the cost of the program?
There is NO UPFRONT COST for Property Owners to use the HIT program. All applicable fees are collected after closing! 

The cost of the HIT program is $1500.00 but diminishes by $500.00 every 30 days the Caretaker occupies the house. After 90 days of our Caretakers occupancy, if the house is not sold, the fee for the HIT service diminishes to zero (no cost) and you continue to enjoy the same professional service till your property sells. If the house sells within the first 90 days of our Caretakers occupancy, the small applicable fee is collected after closing.

To illustrate the net savings, when you consider the costs to insure, maintain, secure, stage, heat, cool and maintain the landscaping for a vacant house, it's estimated to cost over $1000 per month to provide the same level of service HIT provides for the average vacant property. That's in addition to the monthly mortgage payment (holding costs) and insurance costs. Therefore excluding the mortgage and insurance costs for simplicity, if the house sells in the first 30 days (WOW!) the average net cost to use the HIT program would be only $500.00 ( $1500 - $1000) for the first month!
If the property were to sell in the first 60 days (still not bad) the cost to use the HIT service becomes less than ZERO ($1500- $2000!). The fact of the matter is that beginning the first day of our Caretakers occupancy of your once vacant house, you keep more and more money in your pocket to the tune of $1000 OR MORE per month. The fact that you are not spending this money to provide for the maintenance, security, utilities, and MARKETING of your house, means you have more money every month to put towards other better uses besides breathing life into your vacant house. Yes, we are motivated to help sell your house! We earn a little bonus from the Diminishing Fee arrangement if we do and you keep a lot more money in your pocket!

If you are bank or government institution, HIT will be happy to negotiate a service program tailored to your needs. The fact HIT can eliminate by 100% the monthly asset management / preservation costs while promoting faster sales and higher offers and provide a far more neighbor friendly option for your vacant house holdings, means a lot less RED INK!

How does having a Caretaker in my house effect my insurance?

If your house is owner occupied your coverage will only change a little bit. There is usually a slight cost adjustment for a HIT Caretaker Occupied situation (Homeowner Fire Policy). However, if your house is currently vacant and has been for the last 14 days, your property insurance could be void! The cost to obtain vacant house insurance is anywhere between 3 and 7 times more expensive than a standard Homeowner policy.

IF YOU'RE NOT SURE ABOUT YOUR CURRENT INSURANCE COVERAGE ON YOUR VACANT HOUSE PLEASE CALL YOUR AGENT NOW. Paying premiums every month DOES NOT mean you have coverage! If your agent tells you they will not insure a tenant occupied house, contact our office for an insurance agent referral that will get you the coverage you need while your house is enrolled in the HIT program.


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