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David Manley (Gold Coast Inspections) — Mon, 19 Oct 2009 11:02:48 -0500

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RE Agent, RE Companies and Seller Named In Chinese Drywall Civil Case

David Manley (Gold Coast Inspections) — Tue, 18 Aug 2009 14:47:31 -0500

Broward County, Florida

Well, it's official. Documents filed in Broward County Court last June named the Seller, Selling Agent and both RE companies regarding the infamous Chinese Drywall.

Chinese drywall has made its way in to the headlines, predominately from attorneys jumping on the class action band wagon. Very little has been mentioned regarding official positions on the matter from the State of Florida or any federal agency other than the stuff is "bad."

Until recently, the allegations and filings had been confined to builders, contractors, material brokers and manufacturing facilities. Documents filed in Broward County, Florida name the other individuals and excluded those typically mentioned above, including the Home Inspector and Buyer Agent.

Having the docs in hand and speaking with one of the Defendants, whom which we will not name, is absolutely shocked that there is a case pending. The Defendant citing,"we had no idea that our home had this problem."

The residence in question, located in an upscale WCI community has been identified as having the sulfur contaminated product, but was sold well before the issue came to light.

To shine a bit of light on this situation, after numerous verbal complaints to WCI, the State of Florida Department of Health and a motion for the homeowners to be included in the respective bankruptcy hearings, WCI decided to set aside roughly $20 million in a trust specifically to deal with mitigating the drywall issue

The reality to this is that anyone at anytime can file a lawsuit. Whether the suit has merit is another question. The idea that RE agents, RE companies or Inspectors should have known about the problem before the actual builders knew is about erroneous as it gets. Considering the property went in to contract in March 2008 and closed in October 2008, this is roughly 5 months before WCI make a public announcement that some of their homes were built with the inferior product. In addition, even after WCI sent their own inspectors in to conduct an examination of properties in question, the results of those inspections were not forwarded to the property owners.

Insurance Inspections/FHA Requirements And Your Transaction

David Manley (Gold Coast Inspections) — Tue, 16 Jun 2009 14:02:28 -0500

We all know that when buying a home, finding funding and binding a homeowner policy is a part of the transaction process. But what many RE agents don't know is that attempting to do so could blow your deal.

FHA conditions reports and insurance underwriting guidelines have changed dramatically since the storm seasons of 2004-2005. And conditions of property are of great concern to lenders and the insurance industry. Why? Defects and poor conditions = greater risk.

Mass devastation and record setting insurance claims due to subsequent damage from the previous storm seasons has forced HUD and insurance carriers writing policies in Florida to re-evaluate how they conduct their business. Compiled with the slowed economy and down investment market (where insurance companies make a significant portion of their revenue) has forced them to adjust their policy guidelines to minimize risk.

On the insurance side of things, insurance companies don't want to insure a dwelling that could potentially cause a claim and payout. The way this is managed is by evaluating risk. The means in which is done witha few simple inspections. (1) Adjusting or setting a premium via a Wind Mitigation Verification (not used for binding policy rather in part to set premium). This allows the carrier to assess whether the home has been retrofitted with hurricane protection devices, a newer code compliant roof, truss straps, etc. (2) Four Point Inspection. This identifies whether a home has any defect within its roof, electrical, plumbing or HVACsystems. And, can mandate the upgrade for these systems in order to bind the policy. (3) Roof Certifications. This inspection typically for wind only policies, but has become more apparent lately with the renewal of Citizens policies.

Now, how this can effect your deal....well. If you client is dealing with a smaller insurance agent in which only writes business with a few carriers, they are told that "clear" inspections are a must to bind the policy. Now if there are defects within these inspections (Four Point or Roof Cert) the agent cannot bind the policy therefore you cannot close the deal. Unless, you point your client in the direction of a carrier that doesn't require these inspections.

For instance, prior to the storms of 2004-2005, a Four Point Inspection was only mandated for propertiesthat were 50 years or older. Today, that is not the case for all carriers with the exception of Citizens. Most carriers require this inspection for any property 40 years or older and a select few require it at 30.

So what to do?

First, when your client has made their decision to sign contract, they need to immediately contact an insurance agent. They need to inform the agent of the location and age of the structure. At that point, the agent will be able to tell the client what inspections they will need in order to bind. Keeping in mind that underwriting guidelines change from carrier to carrier. Your client may also need to bind a policy for a condo, villa or townhouse.

How this can mess up the deal??? How about a short sale where the bank nor the owner is willing to remedy the defect prior to close. That creates a problem. It's a short sale for a reason, the owner no longer has the financial resources to repair or replace primary components of the structure. And it is definitely not in the clients best interest to invest in repairs prior to ownership...right. There goes your deal. The worst part is that typically, all parties concerned don't find out about this until the 11th hour.

Because our company provides these services for our clients, we ask at every booking the age of the dwelling. At that point, we can inform the agent and client as to additional inspections that they will need in order to bind policy. We hear it daily from RE agents."I've been in the business for 30 years and never heard of a Four Point being required." This comment is fewer and fewer lately because most of the inventory being sold in South Florida is older. Therefore is becoming more common knowledge.

But what is taking its toll is the agent that had no idea of these requirements and is one week out from closing and the client can't close the deal because of insurance guidelines. Where this hurts is not only the simple fact that you've wasted 2 or 3 months with this deal, but your client just lost their deposit money. Since most contracts are "As Is" with right to inspect, you are past the pull-out date and are left scrambling to salvage without penalty. It's not the seller's fault your client couldn't get a policy and your client accepted the deal knowing the property was as is.

Then there's FHA guidelines. Well, talk about inconsistency in the market. These guidelines have changed a few times and for the most part there is no consistency within the FHA Appraiser market. For instance, if the home has roofing defects, no carpet in the master bedroom and the pool in green with turtles living in it (actual deal from last week). There is a good possibility that the appraiser is going to make mention of this in the FHA conditions report (I should hope so considering that what the report is for). Now considering this is a short sale and the seller doesn't have the funds for switch plate covers, what do you think are the chances of this deal going through? Better yet, if you know that this is an FHA loan, why are you placing such a home under contract in the first place?

The end result, for some transactions, is that I get a phone call 3 days later with an irate RE agent telling me how the Four Point messed up the deal. This is the part that really makes my skin crawl. The conditions of the property are what they are. Intentionally reporting anything less that what they are is fraud. Not only that but not reporting primary defects leaves respectable inspectors such as myself in a position of potential litigation.

Most of the time, I write articles to inform our industry of relevant news and perspectives from the other side. And sometimes I write articles to encite feedback. This is an article in which I would like to hear from the RE agents perspective. So, any comments, questions or feedback is greatly appreciated.

Chinese Drywall: Still A Stinking Mess

David Manley (Gold Coast Inspections) — Tue, 16 Jun 2009 11:28:28 -0500

Not too long ago, I blogged about the infamous "Chinese Drywall" and boy did my phone start ringing. Now, I initially started researching and sending out information in efforts of keeping my clients informed and "in the loop" regarding the topic.

What really got me concerned about the subject was that a majority of RE agents and brokers didn't want to discuss it. In fact, when I reached out for brokers in which I have had a long, quality relationship with....it was like I wanted to talk to them about some sort of CIA secret or something. Conversations actually got to the point of a select few telling me that they didn't want to open a can of worms.

This was absolutely astonishing to me, considering that I assumed that I was not the only one that tunes in to CNN in the evening. The idea that little ol' me could pop the lid off of a national concern and "set the market on fire" was erroneous at best.

Well, I didn't take no for an answer and went ahead and produced a 16 page Power Point on the subject, emailed it over for their review and to date have lectured to over 1200 RE agents within Broward County. In fact, since the eye opening information contained in my presentation, caused brokers to re-evaluate and ammend their Seller's Disclosure and Listing Agreements.

My company does offer Contaminated Drywall Inspections, but that was not the motivating factor in formulating the presentation. The simple fact was that no one was sitting down and weeding out the speculative comments, alleged "facts" vs. what is actually known about the problem and how to deal with it.

If you read the Sun Sentinal or The Post, you'll get about 70% relavent information and 30% alledged lawyer talk. But the reality to the problem is that minimal has been accomplished to address this issue.

The State of Florida, for the most part, has sat on their hands and the Federal Agencies have done less. This drywall has been the hot topic since last December and there has been no definitive statements made on either level. Between you and me, that is just ridiculous.

Why?...you ask. I am not exactly sure why Congress rejected $2 million for inspections and testing but could it be that a third manufacturer alleged in the class action law suit is actually owned by the Chinese government. And if the Federal Consumer Protection Agency were to declare a recall, would be obligated to seize the assets of the Chinese government pending the outcome of the pending lawsuits.

Instead, the State of Florida went on countless TV and radio shows stating that there is no confirmed data available and they are "seriously looking in to the matter." They also went on to say that there is no way to inspect or test for the product. Well that just isn't true. But on the other hand, if they were to endorse a method of testing or establish protocol, then if the manner proved to be ineffective, they could be liable. Liability in an already litigious situation is not good. By the end of the day, all the state had to offer homeowners is that you're on your own.

So what this has created is a shark feed among the civil lawyers in multiple states. Within our state, there have been countless "neighborhood meetings" hosted by multi-partner law firms, banging on the podium telling homeowners how they have been taken advantage of by money hungry, cost cutting builders that have built the family home with toxic products in efforts of shoring up their bottom lines in a declining market. Sounds plausible...but not the truth, by a long shot.

So, lets get back to the facts.

First, the US has been importing drywall from China for years. In fact, Knauf which is named in multiple lawsuits as the manufacturer of the "Chinese Drywall," is the largest manufacturer of drywall and insulation in the world. But the sulfur contaminated product is the first of it's kind. The gypsum that had been used was not properly scrubbed to remove the sulfur. The proper manufacturing techniques were not observed. Whether the gypsum was mined or a bi-prduct of fly ash is not the relevant concern because our reliable domestic manufacturers use the same methods. This was not some kind of conspiracy to intentionally contaminate our homes.

Second, the amount of product imported from China was because of a simple thing called "supply and demand." We witnessed a combination of accelerated growth in construction combined with a series of natural disasters that exceeded companies like US Gypsum's ability to keep the supply chain full. So, with procurement agents for brokers, construction companies, non-profits (New Orleans) and others, turned to importing more construction materials. Solely on the immediate damand.

Testing methods have been established contrary to the state's statements on the radio talk shows. In fact, physical sample testing only takes 5-10 days. This is controlled environment testing that produces accurate results in efforts of identifying the presence of the eroding gases.

Folks, this is not rocket science. It's very basic. Sulfur, when exposed to certain amounts of heat and humidity omit gases that are naturally corrosive to common metals. These metals are found in the electrical system, HVAC system, appliances, electronics.....etc. The gases cause the erosion and eventual failure of these components.

Once the product has been identified to have used in the construction of the dwelling, the ONLY method of mitigation or the only way to fix this problem is to remove all of the drywall.....PERIOD. There is NO way to "seal" it up, cover it up, run air scrubbers...etc. If anyone is telling you otherwise, they're trying to make a buck or just ignorant. And, once the product has been removed, there is no residual effect. Meaning if you remove the cause of the gas....the gas will naturally go away.

We are still in the process of identifying how many builders used the product within the new construction market. But what is just as important is how many homes was the product used in that were partial replacement purposes. Remember the photos of homes with a water line 3 feet off of the slab from flood waters? Well, sub-contractors and homeowners used some of this product too.

Yes, excess materials that were not bought by the large construction companies were sold to idependent builder supply houses that are open to the public. In fact, last month in Dade County, there were supply houses still stacking this stuff on their sales floor and a discounted price. Unbelievable.....right. Meanwhile, the state can only make recommendations to retailers not to sell the product instead of demanding that the product be taken out of the market. Why?...because an official recall has not been issued.

Getting back to my original purpose for writing about this topic, it is to keep our industry informed about these issues and how it impacts our market. I understand that transactions today are harder, even without the stench of rotten eggs and deteriorating electrical systems. And, if you're not reading articles like this and keeping in touch with issues that adversely effect our market, then you are working behind the 8 ball. If you haven't incorporated contaminated drywall in to your Listing Agreements and Seller's Disclosure then you are setting yourself up for litigation.

Keep informed.....keep ahead of the game.....keep pushing forward!

Best regards,

David B. Manley

President

Gold Coast Inspections

International Hurricane Protection Association Launches Investigation

David Manley (Gold Coast Inspections) — Tue, 14 Apr 2009 23:04:33 -0500

The IHPAC announced the formation of an investigative task force intended to act in tandem with the State Of Florida Attorney General to investigate complaints made by homeowners of companies selling window films that are being falsely advertised as hurricane rated or impact products.

There has been a blitz of complaints at a municipal, county and state level alleging that companies are advertising after market window films as the alternative to installing hurricane protection devices or shutters. Not only making face to face presentations with slick brochures but actually telling homeowners that once this product is installed, there is no longer a need for hurricane panels or shutters.

Phyllis K., a Broward resident is just one of many that has been misled and swindled by a local contractor that sold her a bill of goods. "Not only did he say I would get a discount on my insurance, but said his product was so good, the U.S. Embassy installed it," Mrs. K said while we were on site last month conducting a Wind Mitigation Inspection. "Compared to over $30,000 quote to install hurricane impact windows, less than $5,000 sounded great."

Mrs. K is just one of many within her older and established sub-division where most are retired and due to current economic times just don't have the type of money it takes to retro-fit their homes.

"Without a doubt, these homeowners are being taken advantage of and in some cased they are being lied to," David Manley, President of Gold Coast Inspections, "these products do not carry an impact rating and will not receive any discounts from insurance carriers writing windstorm policies in Florida."

The influx of these types of complaints has Florida's Attorney General's office answering quite a lot of angry phone calls lately.

Although some of these window films are beneficial during velocity winds, none carry an impact rating. "What homeowners don't understand is building code," continues Mr. Manley "nor should homeowner have to, it's the state's job to make sure that honest people are kept honest."

The application of these products doesn't require a permit because it doesn't require the removal of the window or glass door component. These films are basically a peel and stick product that is applied over the existing glazing (glass). The concept of or the hurricane rating is given to the entire opening, including the frame and hardware. Specifically how it performs within the impact testing procedures. During these tests, the entire opening must remain in tact, not breaching, in order to be awarded an impact rating.

While it is unlikely that Mrs. K will ever get a refund from the company in which she state misled her, she has taken a very strong stance against this contractor by filing a complaint with the state's Attorney General's Office, Broward County, the Better Business Bureau and has had initial discussions with a private attorney.

Chinese Drywall: What A Stinking Mess

David Manley (Gold Coast Inspections) — Tue, 31 Mar 2009 11:23:00 -0500

Chinese Drywall: What A Stinking Mess

Author: David B. Manley, President, Gold Coast Inspections, Coral Springs, Florida (954)753-3755

Homeowners are worried about whether their home is contaminated with Chinese drywall. After hundreds of complaints, state and federal agencies have narrowed the problems associated with the stench of rotten eggs and component failures within homes across the country.

Chinese drywall, originally thought to have been imported between 2004-2007 and used in the construction of homes within a handfull of states, now has been identified to have been imported as early as 2002 and potentially used in over 100,000 homes in 41 states and Canada. Initially thought to have only been purchased by brokers and sold to developers, are finding the possibility of the excess product being sold to builder supply houses and retail outlets.

The problem ingredient of the drywall is sulfur or sulfur compounds when combined with heat and huidity omit a gases which are a natural corrosives. These gases, hydrogen sulfide, carbonyl sulfide and carbon disulfide, corrode metals such as copper, brass, galvanized steel, nickel and others. These various metals are found in numerous areas of a home's construction; galvanized studs, mechanicals, plumbing, electrical wiring, heating and cooling systems, window and door hardward, burglar alarm systems, fire suppression systems, appliances, low voltage wiring and personal electronics. These gases can also have an effect on automobile parts and wiring of those vehicles that are parked in the home's garage for extended periods of time.

The systems within a home that have seemed to fail initially were the heating and cooling systems. Heat, humidity and moisture being the driving force seems to initiate the immediate deterioration of the internal portions of the air handler, specifically the coil and electrical wiring. An almost immediate tarnishing of the copper wiring and tubing and then system failure. Initially, heating professionals had no idea as to the cause of the corrosion until the complaints started piling up after consistent complaints of foul odors and continual replacement of complete heating and air conditioning systems.

The motivating factor in the importation of the product was the overwhelming demand for drywall after the adverse natural disasters from 2002-2006. Whether it be hurricanes in the Gulf and Atlantic , fires in the west coast or floods, tornados in the mid west and the new homes boom in other locations of the country. The exact extent of where the materials are is inconclusive as all records of sales of the products have not been identified.

Two notable home builders in Florida, Lennar and Tom Morrison, have been identified and have taken an proactive approach to the problem by starting to replace the existing drywall in their respective developments. Both companies have filed suit against the manufacturers.

Latest reports have identified Knauf, a German company owning manufacturing facilities in multiple countries including China, to having imported only 20% of the total potentially hazardous product.

Inspection and testing for the drywall has been established and in now offered by a select few companies in South Florida. A limited visual inspection is offered by our company at a rate of $125.00, while physical sample testing is also available. Physical samples testing requires the removal of a 4"x4" piece of the drywall, chain of custody is implemented and the sample is sent to our lab in Weston for examnination. The testing process takes approximately 10 business days and at a rate of $750.00 per sample.

Mitigation of the problem includes the complete removal of all the contaminated product within the structure. This, of course depending on how much product was used in the construction process, could require a complete "pack out" or removal of all personal items and furniture within the dwelling until the mitigation process is complete. In addition, all damaged items such as faucets, hardware, etc., would be replaced as well.

For more information, please call GOLD COAST INSPECTION @ (954)753-3755

HOME VALUES PLUMMET, WHO'S TO BLAME?

David Manley (Gold Coast Inspections) — Fri, 18 Jul 2008 00:23:35 -0500

Written by:

David B. Manley, President, Gold Coast Inspections, Coral Springs, Florida

Home Values Plummet, Who’s To Blame?

If you turn on the news, there is a blitz of blistering comments condemning the lending industry for the current housing crisis. There’s an epidemic of foreclosures and spiraling home prices. Thousands of homes within the foreclosure process daily with no end in sight. The so-called experts, whom are an executive from the NAR, a real estate agent, lender or someone who’s written a book of flips, reporting better news is just around the corner. This is a bit hard to believe (at least in our market) considering there is a 4 to 5 year housing inventory with more on the horizon. But what we really need to ask ourselves is “How did this happen and who’s to blame?”

I’m not going to pretend to be a road scholar and offer my infinite wisdom on global or national economics. We live in a today, in our own backyard society and that is how I am going to offer this opinion.

Well, for those whom drink the Kool-Aid, it really isn’t just the lender’s fault. There is plenty of blame to go around. So in efforts of cutting through the industry friendly outlooks and all the other “kick the tires on this one” sales pitches, I thought I would share some other views or cruel reality on the issues we face today.

Not Another 911 Soundbyte!

The scary events of 911 nudged the boulder off the hill. It seemed like minutes after the Twin Towers fell our 401 k’s sank faster than the Titanic and President Bush smiled and told us to go shopping. We were told not to fear traveling and go to Disney as we listened to graphic stories of high-jackers taking down planes with picnic utensils. This was the critical moment when consumer confidence started to crumble.

As the market started to tank, loan rates dropped and so did credit score requirements and minimum down payments. Let’s face it, lenders make money off of loans and when real estate transactions slow, the immediate knee jerk is to open the gates for more volume. Hence the immediate push of aggressive loan programs such as paperless, no money down, no income qualifiers, zero interest, ARM’s, etc. Everyone was banking (pardon the pun) on the market getting better and coming out the other side as a winner.

Share The Dream

Families finally get their shot at the American Dream, something reminiscent of the 50’s with exception of a few tiny concerns down the road. Intro rates of 4% converting to 11%, the interest only program shooting from 3.5% to 13% with additional principle. These are all factors that can take a $1,200 payment to $3,000 overnight. And if that wasn’t enough, our elected officials in Washington D.C. approved legislation granting credit card companies the ability to charge up to 30% interest without any legitimate reason. Did I mention investors putting down payments on first phase homes at full price? Oh, but not just one… three and four at a time.

And The Wind And Rain Came Down From The Heavens

A series of hurricanes that Noah couldn’t have predicted hit us like a knock-out punch in a heavy weight fight. Now we have massive property damage adding to the beginning stages of a slowing housing market. Think about this; a slowing market equals a gradual increase of inventory…right? Then property damage takes inventory off the market and delays additional inventory from normal attrition. Follow me so far? Then the influx of the future inventory of homeowners wanting to leave the market because of various reasons: job transfer, retiring to the Carolina’s, Hurricane Fear Syndrome or a sick Aunt. Then “BAMM” all of these properties hit the market within a relatively short timeframe and needless to say, there is more inventory than the market can handle. But wait, there’s more.

Most of us have homeowner insurance but have failed to actually read the policy. Well, it’s not that we haven’t…it just made us cross-eyed trying. I read mine four times, sent it to my attorney and finally gave up. What most didn’t realize were the multiple deductibles, limitations and exclusions. As the “happy-go-lucky” homeowners that we are, we just assumed that we were covered and XYZ Insurance Company was going to greet us with a smile, fork over a check and rub our bellies to soothe our discomfort.

While FEMA was putting the blue tarp on your roof, you had your insurance agent on one phone and the eighth roofer on the other…realizing that this was not going to be as simple as you thought. At the end of the day, you find out that you have a $1500 standard deductible, a 2% or $8,000 hurricane deductible and no code compliance coverage. What this meant was the $40,000 roof that had 30% damage (and replacement is mandated because Florida Building Code requires a full replacement if the damage exceeds 25%) was going to be partially covered but now was to cost you $30,000 once everything was said and done.

Is anyone still wondering why there were so many tarps, two years after Hurricane Wilma? Let’s not forget those whom where wiped out by Katrina and insurance companies disputed flood coverage vs. windstorm damage that to this day, have left folks homeless.

I’m not sure about you but I don’t think many average, middle-income families have an extra $30,000-$40,000 tucked under the mattress unless they liquidate little Johnny’s college fund. By the way, I didn’t mention other damages like windows, fences, screen enclosures or the family mini van. The damage from these storms took an enormous amount of cash from homeowners and put it in to the hands of a few.

The storm passes and restoration starts. As the checks start flying out of the insurance companies like egg rolls at a Chinese Buffet, the company executives realize they’re in deep water. Homeowners receive their insurance renewal notices and their rates have shot from $2,800 a year to $7,000. To add insult to injury, the previous year’s premium had been escrowed and a very large check now has to be written to the insurance company to continue coverage. You don’t have a choice in the matter because your lender requires you to have coverage. How’s the bank account now?

Was Tallahassee Asleep At The Wheel?

It’s easy to blame our officials up north for our grief. But there is the question as to whether this could have been foreseen. Gov. Crist was seen on the news, praising residents for their resilience as he courted special interest groups (the insurance lobby). He made speech after speech about how he was going to help the Florida homeowner through this crisis. There was an enormous amount of time wasted before he actually put a temporary halt on insurance premium increases. Unfortunately, this happened after insurance companies took a 100%-300% increase.

Now those that are in the insurance industry can stomp their feet and squawk about risk, loss and blah, blah, blah. But it’s funny when the companies are making money it's privatized and when there’s losses it’s socialized. The insurance industry has made a ton of money off of Florida homeowners and there has to be an assumed risk on both sides. I didn’t see any share holders giving their dividends back or agents taking a lesser commission in prosperous years past. Instead, let’s jack up premiums to “get ahead of the perfect storm.”

Plenty To Go Around

Don’t think for a minute that we have come to the end of those whom had their hands in our pockets. You may have a homestead exemption, but until recently that didn’t limit the county and municipalities from getting their share. Year after year, during this crisis, we’ve witnessed double digit increases in our taxes while our city officials spent time at luxurious executive retreats and liquid lunches on the taxpayer dime.

Crunch Time

A staggering market we are in. Companies laying off, jobs shipped oversees, U.S. farmers getting paid not to grow, $5.50 for a gallon of milk, gasoline prices at an all-time high, $10 billion a month in Iraq and the constant borage of unethical behavior in Washington is, with out a doubt, fueling the fire in our plummeting housing market.

Pick A Card, Any Card

No so fast, just when the lenders thought I was going to let them off. Let’s be honest about some of the loans out there. I am hoping that there really is a judgment day because for some, there is going to be hell to pay.

The bottom line is that there were a boat load of bad loans. Most because shifty loan brokers knew their loans were going to be packaged and sold off to major banks. These so-called loan professionals took advantages everywhere they existed and I sincerely hope there are more criminal indictments in the near future. Knowingly falsifying docs and not disclosing rate adjustments is just wrong and there is no defense. A business philosophy consisting of “How can we make this work,” is much different than “Is it going to work.”

At the very least, buyers should have been well informed as to what that payment was going be once the intro rate was up and based on their income and debt, whether they would be able to make that monthly stroke. This is even more important in the lower income bracket where most are not the best educated and simple math can seem foreign. People’s lives were crumbled and we are all paying a heavy price.

Send Them The Keys

Getting back to the investors that decided to buy properties three and four at a time, it was actually cost effective to walk away from their 5% deposit rather than follow through with the transaction. There is a laundry list of them that stood to loose $80,000-$100,000+ per property if they had closed. So, they just simply walked away. Now those same properties are selling in upwards of $200,000 less than those properties that initially sold leaving homeowners within sought-after communities upside down.

Then there is the buyer who bought their home at the peak of the market, realizing that their gorgeous country club estate and “great” loan program was about to kick them in the back-side. Doing the simple math told them that it was going to take at least 8-10 years just to break even on the purchase. So what would any self-absorbed capitalist do? Send the keys to the lender. I kid you not! Companies such as Bank of America, WAMU, Countrywide, Wells Fargo, etc. were about speechless when envelopes with keys in them started showing up in lieu of a house payment.

But these weren’t the only individuals that gave up the keys to the farm. The hurricane survivors mentioned earlier, it was just too much. Bad loans, insurance and tax increases, extensive repairs, $70 to fill the gas tank and a job loss took some who actually tried desperately to save their home.

In The End

Americans are a bit smarter than people think. When someone gets on the television and says the poor economy is something in our head and we’re just a bunch of whiners, I have to say that it is not a thing of my imagination that the saying, “Most are only a few paychecks away from being homeless” has actually become a reality. The current housing market has been created from a series of events that were and were not within our control.

At the very least, we all have to take a very deep breath, tighten our belts and keep pushing forward…with a smile. Get up in the morning and ask ourselves what we are going to do to help today.

Are we going to sell that home to a client that we know he can’t afford?

Are we going to sign docs on a loan that will end up ruining a family’s life?

Are we going to overlook issues so we’re not labeled a “deal breaker?”

Can we encourage our peers to bring a consistent level of ethics to the table?

I own and operate a successful inspection company in South Florida and the one thing that I have always kept in mind is, “It’s not about that one deal. It’s about every deal, every transaction, every client, every day.”

Perhaps that is why my company has performed over 4,000 inspections and is having a record year…just maybe.

Are You Ready To Inspect?

David Manley (Gold Coast Inspections) — Wed, 04 Jun 2008 15:34:21 -0500

Our company has been providing inspection services for South Florida since 2002. With over 3600 inspections performed, I though I would touch on how to prepare for an inspection.

Typically, I wouldn't write such a remedial article but over the last few months we've become a bit frustrated with some agents that just can't seem to get it together.

Inspection Ready 101

1. Scheduling - be flexible. The inspection takes the coordination of many people, so if the seller has a restricted schedule, it will be very difficult to execute the inspection. Contracts stipulate an inspection period and the home needs to be available the entire time. If the seller wants to be present, they need to modify their own schedule. Inspectors schedule multiple inspections daily, so trying to accomodate the seller, the buyer, the selling agent and the buyer agent can become quite tasking.

2. Utilities - If the property is bank owned or vacant, make sure all of the utilities are on. We were forced to re-schedule 22 inspections last month due to no utilities. Make sure that you physically verify that these are turned ON!

3. Gated Community - guess what, if the property is vacant or the owners aren't home, the guard gate can't call the house. Can they! Have the homeowner call in advance and put the inspector, agent and buyer on the Visitor's List.

4. Disclosure - Mandatory in some states and highly recommended by others. Have a copy of it with you. One of the first things an inspector will ask for is a copy of the disclosure. It provides a brief history to the property. Possible subsequent damage or improper installation, etc. In addition, it could send up a red flag to the buyer if defects are found that should have been listed.

5. Is the home ready? - The inspection will come along much easier and faster if everything is accessible. Is there a 8x8x8 stack of packed boxes or a car without keys under the garage attic access? I don't move boxes or push a cars, do you want to? The inspector needs to have access to everything, HVAC, water heater, walls, switches, outlets, closets, etc. The longer it takes to reach these items, the longer the inspection is going to take. If the homeowners are packing, stack everything in the middle of the rooms allowing access to the walls, closets, windows, etc.

6. Tax roll - Certain property information is needed for the inspection. Year built, sqare footage, etc. Have your FILE WITH YOU. And while you're at it, put a few business cards in your wallet.

7. Payment - Make sure your client discusses payment options. If at the last minute the client can't be present, make sure you have payment for the inspection. Most inspectors will not forward the report without full payment.

8. SUPRA - DID YOU UPDATE IT ?!? COMBO - DO YOU HAVE IT ?!?

Best regards

GOLD COAST INSPECTIONS

www.goldcoastinspections.net

Windstorm Discounts Mandated By Florida Law

David Manley (Gold Coast Inspections) — Thu, 22 May 2008 10:45:49 -0500

Windstorm Discounts Mandated By Florida Law

2005 legislation mandates that carriers writing windstorm policies in Florida, offer discounts, credits or other rate reductions for construction features that lend in minizing risk and/or damage due to windstorm activity.

In plain English, if your home has:

A newer roof (1994 or newer)

Truss straps

Hip roof

Masonry built

Impact windows/doors or Hurricane panels/shutters

If your home has all of the features listed above, it WILL qualify for HUGE discounts on the windstorm portion of your insurance premium. Even if you only have SOME of the items listed above, your home WILL qualify for discounts. In fact, out of 1300 windstorm inspections that our company has conducted, the average premium discount per calendar year was over $1700.

Talking with homeowners throughout South Florida, there still seems to be some "bad information" coming out of the individual insurance agent network. So in efforts of clearing things up a bit, here are a few facts...

1. In order to receive windstorm rate reductions, your home must have a Wind Mitigation Verification performed. Unless your home was built in 2002 or newer. Building codes in Dade, Broward and Palm Beach mandated the items listed above.

2. Check with your insurance agent to verify that you are receiving ALL of the eligible windstorm credits. If you simply ask if you are receiving discounts, this could result in not receiving all the discounts your dwelling is entitiled to.

3. The Wind Mitigation Verification can be conducted and forwarded to your carrier at any time. You DO NOT have to wait until your policy renews in order to receive these discounts.

4. If you pay your insurance annually, the pro-rated difference in the premium is REFUNDED to you from your carrier. And, the new % discount will continue to apply every year forward.

5. The Wind Mitigation Verification is valid up to (5) years, unless you make a structural modification to the dwelling that will change the verification or the property changes ownership.

6. There is NO minimum age of structure in order to qualify for the credits. Meaning, if your home is older you may qualify for the same discounts as a newer home.

7. Not having shutters/panels DOES NOT disqualify you for reveiving discounts. There are (8) construction feature questions on the verification form that equate to the "all up" credits. The shutter discount is just ONE portion of the overall discount.

8. GUARANTEE? Yes, YOU HAVE NOTHING TO LOOSE. If you are not receiving discounts on your windstorm premium, our company will guarantee that your home will qualify for discounts or we will REFUND the entire inspection fee. If you are already receiving discounts, we cannot assume that your discounts will increase unless the Wind Mitigation Verification is performed. Your agent will know what discounts you are receiving.

9. If you have any questions regarding Wind Mitigation inspections, please call today... 954-753-3755. 10. Compare and Save.... Inspection Fee $99...Other companies...$150...YOU SAVE $51

We encourage you to forward this email to your client base, so they can take advantage of the benifits they are entitiled to.

GOLD COAST INSPECTIONS has been certified by the State of Florida within the My Safe Florida Home Program but does not conduct inspections for the grant program. If your home meets the qualifiers and you intend on making retro-fits to your dwelling, use the program link www.mysafefloridahome.com to apply for grant program.

If you are interested in the Wind Mitigation Verification to immediately forward to your carrier in efforts of reducing your windstorm premium,

CALL US TODAY FOR IMMEDIATE SCHEDULING

SAME DAY FORWARDING TO YOUR INSURANCE AGENT

GOLD COAST INSPECTIONS 954-753-3755 The name you can trust in INSPECTION

www.goldcoastinspections.net

goldcoastinspect@aol.com

Florida Hurricane Grant Program Near End

David Manley (Gold Coast Inspections) — Thu, 22 May 2008 10:35:07 -0500

INSPECTOR NEWS, MAY 22, 2008

Last year, legislation was passed offering $250 million of grant funds for modifications performed on site-built, owner occupied homes for items that make the structure stronger and less vulnerable to windstorm activity. In addition, having these safeguards in place, insurance carriers are mandated by law to give significant premium discounts (windstorm discounts). (more about discounts in next article)

The My Safe Florida Home Program, to be overseen by the Office of Insurance Regulation, was established to assist homeowners in making retro-fits to strengthen their homes against hurricanes.

Specifically, the funds were to used for the intial inspections and the retro-fits including, new roofs, truss straps, exterior pedestrian doors, garage doors, impact windows/sliding doors or hurricane panels/shutters. The programs grant phase is almost over. May 31, 2008 will be the last day to apply for the grant portion of the program.

The program was designed to be a short term, incentive to promote safeguarding homes. Valuable information was learned in the aftermath of the recent hurricane seasons, that (a) simple upgrades could have saved millions in damage and insurance claims and (b) lower income housholds needed financial assistance in securing their dwellings. Hence, the birth of the program.

The way the program is designed;

1. Register online or via phone to schedule the FREE windstorm evaluation.

2. Once the inspection is completed, the areas of concern (upgrades) are reviewed and forwarded to you in report fashion.

3. Make the suggested retro-fits, using a program approved contractor.

4. Submit the documentation from the contractor and the program will re-imburse the homeowner up to $5000.

There are some qualifiers, including a cap on the dwelling's assessed value, so it would be in your best interest to review the program's website. www.mysafefloridahome.com If you are considering the upgrades listed above and your home meets the qualifiers, act now before the funds dry up. As long as you enroll in the program prior to the end date, you should still qualify for the grant funds. Due to the budget cuts, there will no additional funding allocated to continue the program.

7 Points To Ponder When Your Client Is Buying A Foreclosure

David Manley (Gold Coast Inspections) — Sat, 10 May 2008 17:19:11 -0500

Foreclosures...Ther're a significant portion of our business in today's market. But for most agents, this process is way outside the norm. This type of transaction will be more tedious than the "old" days and you may want to fasten your seat belt.

So, I've put together some things to consider when your client insists on looking at this type of property.

1. What does the client really want when they say foreclosure? Most buyers say it, but what it really means is a deal. Whether is bank owned, or REO, shortsale. What they want is a very well-priced home, maximizing bang for buck. What they typically don't understand is the potentially difficult and timely process it will include.

2. Foreclosure usually means more competition. Since there is a mass of distressed inventory, the cllient needs to understand that they're not the only person in the market that is looking for the magic deal. Even though transaction volume may be down, the investors, bargain hunters and other buyers are looking at these properties too. So, if the client is serious about this type of property, they need to be in a position to "pounce." All their ducks need to be in a row. There won't be a lot of time to mull things around on that special deal.

3. Be prepared to move fast. Pre-qualifying letters are simple to attain but actual funding may be an issue. Can your client actually solidify funding? Do they have a mortgage broker? Can they qualify? What is their debt ratio, credit rating, etc. AND will this property meet the lenders qualifications? As an agent, you are showing ten times the amount of properties for that one deal, is it going to fall apart before getting out of the gate?

4. Be prepared to wait. The typical transaction, you have the opportunity to set deadlines for a response from the seller. Not with a bank owned or short sale property. Remember, banks aren't in the real estate business and their are a ton of channels to go through to get a response on an offer. This can take a week and sometimes in upwards of a month or longer. Meanwhile, your client is itchy and can't understand why the delay. Make sure your client understands this is a different type of animal than the traditional transaction.

5. Inspect, Inspect, Inspect. There has never been a more viable reason to conduct a home inspection than the current market conditions. These properties are distressed, hence the term. Defects are common and are typically large price point items. In years past, there was a certain price point in which you wouldn't consider some defects, but those rules no longer apply. But for most, the price points between 180k and 350k seem to have the most propblems. We have seen homes that have been stripped of everything: appliances, cabinets, bathroom fixtures, plumbing, flooring and even HVAC systems. Not to mention the defects that were present before they received the foreclosure notice.

From what we have seen recently, the volume has been within the lower priced and older homes. This can cause some headaches for you and your client. Walk the property with you client and take notice of the "in your face" defects or potential deal killers. If you know your cllient doesn't have an extra 25k for improvements and the deal is an "as is," then inform them that the defects out weigh their bank account. Even if the seller is willing to give them a price adjustment, if they don't have the funds to make necessary repairs ie., roof, AC, then that home will be back on the auction block sooner than later.

In addition, here in South Florida, all insurance carriers will mandate an additional inspection (Four Point) on any property that is 40 years old (Citizens = 50) in order to bind a homeowner policy. And depending on the underwriting guidelines, may not be able to bind if there are defects.

6. Get others involved. If you are "cutting your teeth" in the distressed environment, keep a few of your fellow agents in the loop. In particular your broker. Once again, most of these transactions are outside the box of normal practices and it is in your clients best interest to fully represent them to the best of not only your ability, but your office's as well. If there is a problem, concern or question...bounce it off your office manager or broker. Remember, transactions can come back to haunt you.

7. Take the time to understand the procedure. There is nothing normal about these transactions. There will be banks that respond quickly and those that seem like paint drying. Be prepared to act on both. If you intend on making this a primary avenue or specialty, develope a relationship with the asset manager or the department head of the bank in which your office is doing business with. If you're attempting to establish your own relationship and get the ball rolling, make an appointment with your "go to" and clearly define their expectations. Most want to re-capture the loan with the new buyer. Grab both, asset management and loan department, and go to lunch, dinner, drinks, etc. Have a boat, take them fishing.....etc. This is a great opportunity to develop a long-lasting relationship. Remember, when the market turns again, foreclosures will remain to be a viable, quick close opportunity.

Best regards,

David Manley CRI, CMI, WHMI

President

GOLD COAST INSPECTIONS

954-753-3755

www.goldcoastinspections.net

Best $99 Ever Spent

David Manley (Gold Coast Inspections) — Mon, 31 Mar 2008 12:01:28 -0500

How much do expect for spending $99 on you home? How about saving as much as 56% on your windstorm premium.

Current legislation requires insurance carriers writing windstorm coverage in Florida to offer rate reductions for certain construction features that lend in minimizing and/or damage due to windstorm activity. This 20 minute inspection could save you thousands on your insuarnce premiums.

Call today to schedule you Windstorm Verification

Gold Coast Inspections 954-753-3755

www.goldcoastinspections.net

Serving Dade, Broward & Palm Beach

Florida Legislative Help Needed

David Manley (Gold Coast Inspections) — Mon, 31 Mar 2008 11:03:24 -0500

Florida legislation requires insurance carriers writing windstorm coverage to offer rate reductions, credits or other discounts for certain construction features that lend in minimizing risk and/or damage due to windstorm activity (tropical storms and hurricanes). In order to process these discounts, a Wind Mitigation Verification must be conducted on the property. For properties built in 2002 or newer, the agent should automatically be awarding these discounts (Dade & Broward).

This legislation also requires insurance carriers to notify policy holders about the inspection, the discounts and the actual potential savings. Unfortunately, the carriers are non-compliant with this law as well as others that lend in reducing the premiums being paid by property owners. In fact as per Sen. Geller, 80% of the carriers writing windstorm coverage in Florida have yet to 100% comply with current law in which mandates the reduction of premiums by over 22% in light of the state's reduction in the re-insurance costs.

The problem with the legislation is that there is no check-and-balance. Right now, the Office of Insurance Regulation has no idea how many policy holders are receiving discounts or for those that are, if the discount(s) being applied are of the deserved amount.

The average savings, after the inspection, for our clients has been over $1700 per year with some over $3200. Wow, that is a lot of money! For the average condo owner, it's $250. Still a significant savings. In fact, we have yet to see a home that did not qualify for a rate reduction. In fact, in our advertising we actually guarantee that the property owner will save on their current policy.

So where is this going....?

I ask that you write and support an amendment to current legislation that would mandate this verification for any new or renewal for a windstorm policy in which the property was built prior to 2002, unless the verification has been performed within the last 5 years. The purpose of the amendment is to mandate that all policy holders, regardless of carrier, get these rate reductions as mandated by law.

Please direct your demand to one or all of the members of the Florida House of Representatives Committee on Insurance:

D. Brown, R. Poppell, T. Fields, C. Domino, A. Gibson, E Gonzalez, A. Hayes, J. Long, M. Needelman, B. Nelson, S. Randolph, D. Ross, R. Schneck, P. Taylor

Insurance Inspection Could Save Your Deal

David Manley (Gold Coast Inspections) — Mon, 31 Mar 2008 10:32:27 -0500

With lenders tightening the screws on qualifiers for buyers, there may be an answer for squeezing a few more dollars out for your clients.

Current legislation requires insurance carriers writing windstorm coverage in Florida to offer rate reductions, discounts or credits for certain building characteristics that lend in minimizing risk and/or damage due to windstorm activity (hurricanes and tropical storms). In fact, these discounts can range up to 56% OFF of the windstorm premium!

This inspection, Windstorm Mitigation Verification, is a simple 20 minute verification that can be provided by some inspectors. The key to the discounts is to provide this documentation to the agent prior to binding the policy. Therefore, the discounts can be applied from day one of the policy. If for some reason the inspection cannot be performed prior to close, it can still be conducted and any applicable discounts would be applied and a refund check will be issued to the policy holder.

INSPECTION FACTS:

1. We have yet to see a home that did not qualify for some form of discount.

2. The inspection can be performed on all site built detached homes, multi-units (duplex, etc.), townhomes, and condos.

3. Hurricane shutters are only one portion of the discount.

4. You do not have to wait for your policy to renew to get your discounts applied.

5. Your discounts are applied immediately (once your carrier's underwriting department receives it).

6. It will be the best $99 your client or you will ever spend...GUARANTEED!!!

For more infomation regarding Wind Mitigation Inspections, please call us direct at 954-753-3755 or visit our website at: www.goldcoastinspections.net

Serving Dade, Broward and Palm Beach

Buyer Beware: Bank Owned Properties

David Manley (Gold Coast Inspections) — Thu, 27 Mar 2008 13:54:03 -0500

As you all are aware, the tides have changed in the real estate market. Here in South Florida, as many markets, distressed property inventories are at an all-time high. With the term "distressed" typically equating to a lower price point, it is natural for buyers to gravitate to these particular listings.

As an experienced residential inspector, providing over 3600 inspections, it is imperative that the buyer be very cautious when considering a short sale or bank owned property. There has never been a time where a home inspection is more warranted.

First, we need to consider the term "distressed." Typically the properties condition is going to reflect this not-so-benificial term. For specific reasons, the owners of the property lacked to funds to maintain ownership and make the necessary repairs or upgrades needed to ensure the integrity of the property. That's it, plain and simple.

Over the last six months, we have performed at least 200-225 inspections on short sale and foreclosed properties. The defects for some are minor, but for most the inspection report is 25-30 pages long. Missing appliances, light fixtures and switches, plumbing components and in one case missing laminate flooring. Not to mention the defects associated with not having the funds to correct significant defects that affect the habitability of the dwelling.

Hurrican Wilma is one of the reasons why some homeowners fell behind. Not being able to cover deductibles caused further damage to homes. The credit crunch, with higher credit card interest rates, created an inability to charge that new roof or window.

Roof damage and moisture intrusion have been the two most common defects found in these homes. Unfortunately with moisture intrusion, typically comes the four letter word M-O-L-D. Yes, that nasty little fungus among us. In addition, Dry Wood Termites have been noted in 8 of 10 bank owned properties. Other defects are wide spread such as drywall damage, flooring material defects, bad electrical wirings, leaking plumbing lines and the ever-so-popular swamp-like swimming pool. The largest scheduling problem has been co-ordinating the utilities. We have had over 45 re-scheduled appointments because the agents involved did not ensure the power and water were turned on. Most inspectors charge a "trip fee" to a re-schedule for this.

For some agents, the above mentioned defects otherwise known as a "Deal Killers" is something that we're all going to have to embrace as a fact of the industry and in particular the current market. At least until the majority of these problem properties are sold off.

We have gone from the land of blue tarps to a banquet of bankruptcies. With both circumstances having a significant impact on condition of property, is important to understand the necessity to align yourself with an inspection company that is thorough and diplomatic to the transaction.

There is something the Realtor can do to assist or "break it" to the buyer in a more gentle fashion. We need to collectively explain to these buyers that these are not prestine properties. There could be a laundry list of items that will need to be corrected. There will be the opportunity to present these concerns to the selling bank and perhaps credits can be paid on the back-end of the close. One phrase we use quite often is, "Everything can be fixed." Subcontractors are charging very low for services in South Florida. New construction is at an all tim low equating to more aggresive

In some cases, the banks are so upsidedown, that there is room for negotiation. Then, it's time to move on to the next listing.

Happy Hunting...

David Manley, President

Gold Coast Inspections

954-753-3755

Serving Dade, Broward and Palm Beach

Gold Coast Inspections Launches Citizens Wind Inspections Website

David Manley (Gold Coast Inspections) — Wed, 16 Jan 2008 15:07:08 -0600

coral springs, fl

Gold Coast Inspections of Coral Springs announced Friday, the launch of citizenswindinspections.com. The site, specifically designed to assist South Florida homeowners navigate the inspection needs of the insurance industry.

With Florida legislation requiring insurance carriers to offer discounts, credits and rate reductions for construction features that lend in reducing damage or loss due to wind storm activity, this site explains the criteria included in the inspection and the verification process. In addition, the site defines Four Point Inspections, their criteria and purpose.

"Due to the inconsistent performance by unqualified inspectors, South Florida insurance agents were looking for a one call or one click resource for policy holders to facilitate these inspections," states David Manley, President, Gold Coast Inspections, "as the market has evolved, we have always adapted our business to assist homeowner needs."

Gold Coast Inspections has been in business since 2001 and has performed over 3,000 inspections to date. "We strive to assist homeowners in all respects," adds Mr. Manley,"and our commitment and success in the market is proof, while other inspection companies close shop."

For more information, go to: www.citizenswindinspections.com or www.goldcoastinspections.net

Serving Dade, Broward & Palm Beach

954-753-3755

What Rold Should An Agent Play In The Inspection

David Manley (Gold Coast Inspections) — Wed, 16 Jan 2008 14:41:04 -0600

You could ask ten brokers this question and all would sound in unison, "As little as possible." Point the client to the shelf of tri-fold brochures and let them have at it. Sound familiar, right?

Well, I tend to disagree. Not because I own and operate an inspection firm, rather I feel the agent needs to play a larger role. We can all agree that the inspection is part of the real estate transaction, with over 85% of all transactions containing an inspection.

Where agents tend to get in trouble is when they over-extend themselves. By this I mean, "This is the inspector your HAVE to use." Now I sincerely appreciate the multitude of referrals in which we receive from our agent base but one needs to protect themself.

My recommendation IS to lead them to the file cabinet and advise them that a home inspection is prudent. And a wise consumer is going to utitilize a service in which lends in making an informed decision. Then, hand them a brochure of the inspector in which your clients have used in the past and have found them to be reliable.

The client needs the empowerment and is responsible in making the decision. You are just testifying to the claims of previous clients.

During the inspection, your client is going to ask you specific questions regarding the property and its condition. Here is where it gets tricky. These questions will range in content and when in doubt, refer the client to the inspector. Your inspector should be aware of cause and effect, and common or similar defects pertaining to the development and methods or date of construction. Don't try to be the "contractor expert" unless you are willing to take responsibility for your remarks or suggestions.

During the inspectin recap, if your client is unsure or defects are not clear, ask the inspector to expand or further define the issue. You as the agent can ask specific questions that will produce specific answers without committing yourself to the solution or recommended action.

Some issues are pretty clear cut, ie., roof damage, termites, plumbing leaks, etc. There will be issues that are defined, as per contract, that you can advise the client as to where the accountability lies. Other issues can be laid out as, "these are things that you can take care of when you take possession or I can present them to the seller agent to resolve."

I don't know how many times I have heard an agent tell clients, "mold isn't a big deal, roof damage is everywhere, or there was no LIVE termites found so it must be old damage." These are definately examples of agents over-extending themselves to the point of possible liability.

The role of the agent does evolve over time with other responsibilities thrown in to the mix. We just have to stay one step ahead of the game and we all come out winners.

GOLD COAST INSPECTIONS

954-753-3755

www.goldcoastinspections.net

www.citizenswindinspections.com

Everyone Is Responsible For Higher Insurance Rates

David Manley (Gold Coast Inspections) — Wed, 16 Jan 2008 13:56:45 -0600

There's no doubt that homeowner insurance rates are out of this world in Florida. But, everyone has a role to play in this. One cannot say that the blame should sit solely on the shoulders of the insurance industry.

The three amigas (hurricane seasons of 2004 and 2005) had a devastating effect on Florida homes but this damage could have been reduced with proper attention by homeowners.

We have performed over 3,000 residential inspections for home buyers in South Florida and as real estate agents, you are aware of the defects that are contained in home inspections.

Report findings including damaged windows, missing/broken roof tiles, rotting fascia, termite damage and older (pre-wind rated) windows, pedestrian and garage doors all play a pivotal role in the overall structural integrity. How many times have you seen, listed on the inspection report, fascia damage that flanks the screen enclosure supports? Well, this was the number one cause for enclosure failure during Hurricane Wilma. Or a neighbors roof tile launched through your dining room window. A house down the street, with a 25 year old roof that had been patched and repaired 5 times in the last 5 years, now has a new $38,000 roof. And, don't forget the neighbor that actually has hurricane panels but failed to install them prior to the storm hitting.

These are examples of loss that has significantly contributed to the crisis we are in now.

But in fairness to our current state of risk, it's a lot less than 2 years ago. With all of the upgrades that have been performed since the hurricanes, current risk is actually lower. Why, you say? Simply, code compliance. Since Hurricane Andrew in 1992, Florida as well as municipal building codes have changed dramatically.

With the addition of "wind ratings" and "lift tests" has ensured a better way to build. Screen enclosures today mimic an engineering marvel, 2 part foam for roof tile adhesion has a 130+ wind rating and other codes lend in reducing possible loss.

What insurance carriers are banking on, is using the overall loss figures from those storms and terms like "the perfect storm" to intimidate legislators in to allowing double-digit premium increases. To date, many of the primary carriers have petitioned the state for 35-47 percent rate increases. And of course, to "cherry pick" areas of coverage.

On the other hand, we as Floridians need to start electing individuals that will represent our concerns. The Commission on Insurance passed a bill allowing insurance companies to "pick up" or acquire Citizens policies. That is actually a good thing, considering Florida tax payers are flipping some of that bill. The bad part is that these carriers are "hand selecting" homes to insure. Thus leaving Citizens with the higher probable claim per policy. And, considering Citizens is under-insured, will leave tax payers with liability of paying the claims that exceed the state fund. The state will pass this expense to us calling it, "special assessments."

We all need to start electing people that will actually represent the needs of the people rather that pandering to the special interests of the insurance lobby.

Just my opinion

sponsor:

www.goldcoastinspections.net

www.citizenswindinspections.com

954-753-3755

Orlando Residents May Lose Their Homeowner Insurance Due To LIVE Munition

David Manley (Gold Coast Inspections) — Wed, 16 Jan 2008 13:12:10 -0600

Attorney for hundreds of Orlando residents have filed lawsuits against Lennar homes for building over munitions.

There has never been a more critical time to use the disclosure form than this! It seems that Lennar built 200+ homes, on land that had been back filled using soil from an old WWII bombing range. Public records document that fill from the range in fact had been used for site elevation and thus far, live bombs and bomb debris has been removed from a nearby school, land behind the school and front yards of the homes.

Attorneys for the homeowners are filing against Lennar for not disclosing this at the time of transaction, therefore fraud.

Citizens Property Insurance stated they would not write policies if the area is subject to live munitions. Still to be seen is whether other carriers will start cancelling policies pending more information or the sites are deemed safe.

Lennar has hired their own munitions expert to investigate the property. Lennar maintains it was the government's responsibility to report this and they had no knowledge of the explosive prior to constructing the development.

sponsor:

www.goldcoastinspections.net

www.citizenswindinspections.com

954-753-3755

Florida OIR Blocks Allstate From Writing New Homeowner Business In Florida

David Manley (Gold Coast Inspections) — Wed, 16 Jan 2008 11:44:44 -0600

Today, Commissioner McCarty suspended Allstate's ability to write new homeowner business in Florida. This following Allstate's disregard to comply with subpoenas served on October 16, 2007.

The subpoenas were in efforts of revealing Allstate's reinsuarance program and relationships with risk modeling companies, insurance rating organizations and insurance trade organizations.

What has prompted the OIR to investigate some insurance carriers is the lack of response in reducing policy premiums in Florida. Re-insurance rates have decreased for carriers and Florida legislation required carriers to pass this savings to policy holders. Instead, many carriers have submitted rate filings in which ask for 30-47% premium increases.

McCarty was cited as saying that the suspension will continue until all of the records within the subpoenas have been complied with.

Gov. Crist was supportive of the Commissioner stating,"Allstate must be hiding something, otherwise they would comply." Gov. Crist's position has not changed in that he believes some insurance carriers are not being fair to the Florida consumer and some may be in vioation of Florida law.

Allstate has other issues in Missouri, where they are being fined $25,0000 per day for not complying with similar requests. McCarty acknowledged that the suspension was necessary considering the fines in Missouri served no motivation for Allstate to comply.

This suspension should have no effect on existing policies, fiscal reports or filings. Although, policy renewals may be in jeopardy during this suspension.

sponsor: Gold Coast Inspections 954-753-3755

www.goldcoastinspections.net

www.citizenswindinspections.com

HELPING FLORIDIANS SAVE THOUSANDS ON WINDSTORM PREMIUMS

Citizens Windstorm Discount Website Launched Today

David Manley (Gold Coast Inspections) — Mon, 14 Jan 2008 11:28:50 -0600

CORAL SPRINGS, FL -

In efforts of assisting homeowners navigate insurance inspections, a new site was launched today serving Dade, Broward and Palm Beach Counties.

Please visit: www.citizenswindinspections.com

Gold Coast Inspections Launches New Website

David Manley (Gold Coast Inspections) — Mon, 14 Jan 2008 11:25:21 -0600

CORAL SPRINGS, FL -

Gold Coast Inspections of Coral Springs launches new website for potential clients and agents. Detailing services for the home sellers and new homebuyers describes services that lend in making an informed decision.

please visit: www.goldcoastinspections.net

Wind Storm Discount Inspections $99

David Manley (Gold Coast Inspections) — Thu, 10 Jan 2008 10:09:45 -0600

CORAL SPRINGS, FL-

GOLD COAST INSPECTIONS of Coral Springs is offering a New Year Promomotional

Windstorm Discount Inspections $99 including elevation photos

Four Point Inspections $99 including elevation photos

Valid January & February 2008 ONLY

CALL 954-753-3755 TO SCHEDULE

How Windstorm Inspections Can Benefit Your Client

David Manley (Gold Coast Inspections) — Thu, 20 Dec 2007 12:13:16 -0600

Recently, legislation was passed requiring insurance companies writing homeowner policies in Florida to offer rate reductions, credits or other discounts toward the windstorm premium for certain construction features that lend in minimizing damage due to windstorm activity. The theory behind these rate reductions is; a homeowner should not be required to pay an elevated premium when the construction methods and/or components used in building the home minimizes potential risk and/or loss.

Some of the construction features include; hip style roof, CBS exterior wall construction, certain roof decking materials, truss straps, newer applied roofing materials, FBC compliant garage doors, impact windows and other hurricane protection devices. Some of these features apply to a home regardless of the original date of construction.

In order to maximize and receive these discounts, the dwelling must be certified by an authorized inspection professional. Most insurance carriers require a minimum level of competency, most defined as a General Contractor or better. The average Home Inspector lacks these qualifications unless they are working under an alternate license.

For a new home buyer, this inspection and certification must be conducted and forwarded to the proposed insurance agent prior to close in order to bind the insurance policy with the maximum discounts applied. These discounts can exceed 40 percent of the windstorm (hurricane) premium.

GOLD COAST INSPECTIONS has performed over 1200 of these inspections for South Florida homeowners with an average savings of over $1700 a year in windstorm premiums.

Our staff of Professional Engineers, General Contractors and Florida State Certified Windstorm Inspectors, conduct these inspections daily and typically schedule an inspection within 2-3 business days. If you are using GOLD COAST INSPECTIONS for the Pre-Purchase Home Inspection, the Windstorm Certification can be generated during this inspection and all reports forwarded the same business day.

For more information regarding Windstorm Discount Inspections or Pre-Purchase Home Inspections, please call today.

GOLD COAST INSPECTIONS 954-753-3755

On A Tax Note: Consider The Tax Consequences Of Big Changes

David Manley (Gold Coast Inspections) — Tue, 18 Dec 2007 15:35:24 -0600

A major change in your circumstances has financial consequences. Here are some of the factors to consider when you have...

MOVED

If your capital gains on your home sale exceed $500,000 (married) or $250,000 (single), you can increase your basis by adding sums spent on home improvements, such as room additions and kitchen renovations (but not routine repairs) - as long as you keep receipts.

CHANGED JOBS

Are you a new agent who previously worked at a company with a retirement plan? An IRA rollover might give you more disirable control over your investments rather than leaving your retirement fund with your previous employer. Also, evaluate the sufficiency of your emergency fund, life insurance, disability insurance, and health plan.

HAD A BANNER YEAR

Look at way to reduce taxable income in 2007 and beyond. Year-end tax planning should address this year and next.

GOTTEN MARRIED

You may need guidance re-evaluating your investment portfolios in light of your new joint goals. Decide how to title assests and consider the wisdom of setting up trusts to protect a spouse or children from a previous marriage.

ENDED A MARRIAGE

Your entire financial plan must be reviewed upon separation and divorce. Look at insurance needs, child support, retirement plans, college goals and investment objectives.

ADDED TO THE FAMILY

Having a child is a financial investment. Review everything, from the monthly budget (Loss of one income? Child care expenses? A bigger house?) to the retirement plan. Life insurance is critical now, and it's never too early to start that college fund.

LOST A SPOUSE

Loss of a spouse is a major life event and requires a serious review of all areas of the financial plan. As with divorce, raw emotions may prevent you from tackling everything at once. But always tend to the most important concern, which is helping you feel confident in your ability to pay the bills and carry on.