About Me
- Melissa Kellerman
Buying or selling a home can be a stressful experience without the security of a trusted REALTOR in your corner.
Choose me to be your trusted REALTOR.I will guide you through every step of this rewarding process with professionalism and dedication. My attention to detail, strong communication and 100% effort will deliver the results you deserve. It is my mission to build lasting relationships and earn repeat referrals. The key to this is providing my clients with personalized service before, during and after every transaction. I am here to help you with all of your real estate needs.
Feel free to call or email me anytime!
Wednesday, August 31, 2011
Mortgage Rates Move Higher
Freddie Mac recently released the results of its Primary Mortgage Market Survey® (PMMS®), showing mortgage rates moving higher from the previous week's record lows as Treasury bond yields moved higher and other housing data showed improvement. However, the five-year ARM did decline to 3.07% thereby setting a new all-time record low.
Data shows that the 30-year fixed-rate mortgage (FRM) averaged 4.22% with an average 0.7 point for the week ending August 25, 2011, up from last week when it averaged 4.15%. Last year at this time, the 30-year FRM averaged 4.36%.
Additionally, 15-year FRM this week averaged 3.44% with an average 0.6 point, up from last week when it averaged 3.36%. A year ago at this time, the 15-year FRM averaged 3.86%.
Five year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.07% this week, with an average 0.5 point, down from last week when it averaged 3.08%. A year ago, the 5-year ARM averaged 3.56%.
The numbers show that the 1-year Treasury-indexed ARM averaged 2.93% this week with an average 0.5 point, up from last week when it averaged 2.86%. At this time last year, the 1-year ARM averaged 3.52%.
"Fixed mortgage rates followed Treasury bond yields higher this week while data reports suggest an improvement in the housing market,” says Frank Nothaft, vice president and chief economist, Freddie Mac. “The Federal Housing Finance Agency national House Price Index rose for the third straight month in June bolstered by a 3.3% gain in the East North Central Census Division. In addition, the Mortgage Bankers Association reported that the serious delinquency rate (90 days or more plus foreclosures) on mortgages outstanding fell for the sixth consecutive quarter at the end of June to 7.85%."
For more information, visit www.FreddieMac.com.
Tuesday, August 30, 2011
9 Tips to Successfully Buying a Foreclosure
By Alexis McGee
With foreclosure numbers in the tens of thousands nearly everywhere across the country, many Americans who have never invested in real estate are wondering if now is the right time to find a great deal. The answer is yes as the indicators are strong for investors. Banks are selling foreclosed properties at huge discounts and strapped homeowners with foreclosure looming are looking for ways out of their predicament, including selling to investors.
Done right, buying a home pre-foreclosure creates a win-win situation. The homeowner gets needed cash, and the buyer, a solid investment property. Whether you opt to buy a discounted REO property from a bank or lender, or from an individual homeowner through a real estate agent, it’s essential to pay attention to the details.
1. Understand your state foreclosure laws. Before you set out to buy a foreclosure from anyone, it’s imperative that you understand the foreclosure laws of your individual state. Laws vary dramatically state by state and affect the foreclosure process timeline as well as sellers’ and buyers’ legal rights.
2. Use the right lead sources. Locate solid potential property leads with the help of reputable foreclosure listing websites and a professional real estate agent. Alternatively, you can manually cull county property records at your county recorders office.
3. Beware marketing come-ons like “instant riches.” Avoid websites or foreclosure “gurus” that promise instant riches with no effort and no money, or their “secrets” for a price. Keep your wallet in your pocket until you have thoroughly “Googled” the person and the company. If a website requires a user fee and won’t allow you a free trial first, look elsewhere.
4. Do your homework before you buy. Know the local market and the current prices for comparable properties in the area, as well as what kind of financing is available. Your real estate professional can help you with this. Even in today’s tight credit markets, money is available. If you plan to fix up a property then turn around and sell it quickly, don’t overlook a short-term cash loan from an individual money partner.
5. Investors: build solid relationships with listing agents for lender-owned (REO) properties. These are the people banks and lenders work with to sell the properties they own. With the right relationship, REO listing agents will contact you directly (before the property hits the Multiple Listing Service) so you get first shot at the good deals.
6. Know the quick sale market value of a property. Whether shopping for your own home or investing, before you buy a property, you must calculate the market value of the home if you needed to sell tomorrow. That value, minus your costs to fix up the property, to hold it, and to market and sell it, is the fair price to pay for the property today. If you’re buying the property as an investor, include your profit.
7. Know your not-to-exceed offer price. Set the number based on your calculations above, and stick to it. If you’re buying the home for your residence, you may have a tiny bit of wiggle room, but as an investor, it’s an absolute top offer price.
8. Look for motivated sellers. All discounts—read that "asking prices"—are not equal. REO lenders with overflowing properties in their portfolios likely will be willing to cut prices more significantly in order to remove the nonperforming asset off their books, especially given today’s credit crunch. For pre-foreclosure buyers, sellers need to understand how selling you their home will help them avoid foreclosure and put cash in their pockets for a fresh start.
9. Follow-up and patience is key. Whether you’re buying a bank-owned property or pre-foreclosure from a homeowner, success is in the details. Address and plan for all of them. Patience is critical, but as a buyer, time is on your side. Yes, it takes time and effort to buy foreclosures at a discount, but with the right knowledge and tenacity, your first deal is just around the corner.
For more information, visit www.foreclosures.com.
With foreclosure numbers in the tens of thousands nearly everywhere across the country, many Americans who have never invested in real estate are wondering if now is the right time to find a great deal. The answer is yes as the indicators are strong for investors. Banks are selling foreclosed properties at huge discounts and strapped homeowners with foreclosure looming are looking for ways out of their predicament, including selling to investors.
Done right, buying a home pre-foreclosure creates a win-win situation. The homeowner gets needed cash, and the buyer, a solid investment property. Whether you opt to buy a discounted REO property from a bank or lender, or from an individual homeowner through a real estate agent, it’s essential to pay attention to the details.
1. Understand your state foreclosure laws. Before you set out to buy a foreclosure from anyone, it’s imperative that you understand the foreclosure laws of your individual state. Laws vary dramatically state by state and affect the foreclosure process timeline as well as sellers’ and buyers’ legal rights.
2. Use the right lead sources. Locate solid potential property leads with the help of reputable foreclosure listing websites and a professional real estate agent. Alternatively, you can manually cull county property records at your county recorders office.
3. Beware marketing come-ons like “instant riches.” Avoid websites or foreclosure “gurus” that promise instant riches with no effort and no money, or their “secrets” for a price. Keep your wallet in your pocket until you have thoroughly “Googled” the person and the company. If a website requires a user fee and won’t allow you a free trial first, look elsewhere.
4. Do your homework before you buy. Know the local market and the current prices for comparable properties in the area, as well as what kind of financing is available. Your real estate professional can help you with this. Even in today’s tight credit markets, money is available. If you plan to fix up a property then turn around and sell it quickly, don’t overlook a short-term cash loan from an individual money partner.
5. Investors: build solid relationships with listing agents for lender-owned (REO) properties. These are the people banks and lenders work with to sell the properties they own. With the right relationship, REO listing agents will contact you directly (before the property hits the Multiple Listing Service) so you get first shot at the good deals.
6. Know the quick sale market value of a property. Whether shopping for your own home or investing, before you buy a property, you must calculate the market value of the home if you needed to sell tomorrow. That value, minus your costs to fix up the property, to hold it, and to market and sell it, is the fair price to pay for the property today. If you’re buying the property as an investor, include your profit.
7. Know your not-to-exceed offer price. Set the number based on your calculations above, and stick to it. If you’re buying the home for your residence, you may have a tiny bit of wiggle room, but as an investor, it’s an absolute top offer price.
8. Look for motivated sellers. All discounts—read that "asking prices"—are not equal. REO lenders with overflowing properties in their portfolios likely will be willing to cut prices more significantly in order to remove the nonperforming asset off their books, especially given today’s credit crunch. For pre-foreclosure buyers, sellers need to understand how selling you their home will help them avoid foreclosure and put cash in their pockets for a fresh start.
9. Follow-up and patience is key. Whether you’re buying a bank-owned property or pre-foreclosure from a homeowner, success is in the details. Address and plan for all of them. Patience is critical, but as a buyer, time is on your side. Yes, it takes time and effort to buy foreclosures at a discount, but with the right knowledge and tenacity, your first deal is just around the corner.
For more information, visit www.foreclosures.com.
Sunday, August 28, 2011
Protect Food and Family During Power Outages
The U.S. Department of Agriculture's Food Safety and Inspection Service (FSIS) has issued recommendations for residents in states that might be affected by Hurricane Irene to minimize the potential for foodborne illnesses in the event of power outages, flooding, and other problems that could be associated with the storm. But regardless of storms, if the power goes out under any circumstance, it's always important to know how to keep your food safe to ensure your family's health is never in jeopardy.
Steps to follow to prepare for a possible emergency:
• Keep an appliance thermometer in the refrigerator and freezer. An appliance thermometer will indicate the temperature inside the refrigerator and freezer in case of a power outage and help determine the safety of the food.
• Make sure the freezer is at 0°F or below and the refrigerator is at 40°F or below.
• Freeze containers of water for ice to help keep food cold in the freezer, refrigerator or coolers after the power is out.
• Freeze refrigerated items such as leftovers, milk and fresh meat and poultry that you may not need immediately — this helps keep them at a safe temperature longer.
• Plan ahead and know where dry ice and block ice can be purchased.
• Have coolers on hand to keep refrigerator food cold if the power will be out for more than four hours. Purchase or make ice and store in the freezer for use in the refrigerator or in a cooler. Freeze gel packs ahead of time for use in coolers.
• Group food together in the freezer — this helps the food stay cold longer.
• Store food on shelves that will be safely out of the way of contaminated water in case of flooding.
Steps to follow after the emergency:
• Keep the refrigerator and freezer doors closed as much as possible to maintain the cold temperature.
• The refrigerator will keep food safely cold for about four hours if it is unopened. A full freezer will hold the temperature for approximately 48 hours (24 hours if it is half full) and the door remains closed.
• Discard refrigerated perishable food such as meat, poultry, fish, soft cheeses, milk, eggs, leftovers and deli items after 4 hours without power.
• Food may be safely refrozen if it still contains ice crystals or is at 40°F or below when checked with a food thermometer.
• Never taste a food to determine its safety!
• Obtain dry or block ice to keep your refrigerator and freezer as cold as possible if the power is going to be out for a prolonged period of time. Fifty pounds of dry ice should hold an 18-cubic-foot full freezer for two days.
• If the power has been out for several days, check the temperature of the freezer with an appliance thermometer. If the appliance thermometer reads 40°F or below, the food is safe to refreeze.
• If a thermometer has not been kept in the freezer, check each package of food to determine its safety. If the food still contains ice crystals, the food is safe.
• Discard any food that is not in a waterproof container if there is any chance that it has come into contact with flood water. Discard wooden cutting boards, plastic utensils, baby bottle nipples and pacifiers.
• Thoroughly wash all metal pans, ceramic dishes and utensils that came in contact with flood water with hot soapy water and sanitize by boiling them in clean water or by immersing them for 15 minutes in a solution of 1 tablespoon of unscented, liquid chlorine bleach per gallon of drinking water.
• Use bottled water that has not been exposed to flood waters. If bottled water is not available, tap water can be boiled for safety.
With a little preparation, you can salvage the most food possible from your fridge and freezer and ensure that your family only consumes the freshest of products.
For more information, visit www.usda.gov.
Steps to follow to prepare for a possible emergency:
• Keep an appliance thermometer in the refrigerator and freezer. An appliance thermometer will indicate the temperature inside the refrigerator and freezer in case of a power outage and help determine the safety of the food.
• Make sure the freezer is at 0°F or below and the refrigerator is at 40°F or below.
• Freeze containers of water for ice to help keep food cold in the freezer, refrigerator or coolers after the power is out.
• Freeze refrigerated items such as leftovers, milk and fresh meat and poultry that you may not need immediately — this helps keep them at a safe temperature longer.
• Plan ahead and know where dry ice and block ice can be purchased.
• Have coolers on hand to keep refrigerator food cold if the power will be out for more than four hours. Purchase or make ice and store in the freezer for use in the refrigerator or in a cooler. Freeze gel packs ahead of time for use in coolers.
• Group food together in the freezer — this helps the food stay cold longer.
• Store food on shelves that will be safely out of the way of contaminated water in case of flooding.
Steps to follow after the emergency:
• Keep the refrigerator and freezer doors closed as much as possible to maintain the cold temperature.
• The refrigerator will keep food safely cold for about four hours if it is unopened. A full freezer will hold the temperature for approximately 48 hours (24 hours if it is half full) and the door remains closed.
• Discard refrigerated perishable food such as meat, poultry, fish, soft cheeses, milk, eggs, leftovers and deli items after 4 hours without power.
• Food may be safely refrozen if it still contains ice crystals or is at 40°F or below when checked with a food thermometer.
• Never taste a food to determine its safety!
• Obtain dry or block ice to keep your refrigerator and freezer as cold as possible if the power is going to be out for a prolonged period of time. Fifty pounds of dry ice should hold an 18-cubic-foot full freezer for two days.
• If the power has been out for several days, check the temperature of the freezer with an appliance thermometer. If the appliance thermometer reads 40°F or below, the food is safe to refreeze.
• If a thermometer has not been kept in the freezer, check each package of food to determine its safety. If the food still contains ice crystals, the food is safe.
• Discard any food that is not in a waterproof container if there is any chance that it has come into contact with flood water. Discard wooden cutting boards, plastic utensils, baby bottle nipples and pacifiers.
• Thoroughly wash all metal pans, ceramic dishes and utensils that came in contact with flood water with hot soapy water and sanitize by boiling them in clean water or by immersing them for 15 minutes in a solution of 1 tablespoon of unscented, liquid chlorine bleach per gallon of drinking water.
• Use bottled water that has not been exposed to flood waters. If bottled water is not available, tap water can be boiled for safety.
With a little preparation, you can salvage the most food possible from your fridge and freezer and ensure that your family only consumes the freshest of products.
For more information, visit www.usda.gov.
Thursday, August 25, 2011
95 Percent of Refinancing Borrowers Choose Fixed-Rate Mortgages
In the second quarter of 2011, fixed-rate loans accounted for about 95% of refinance loans, based on the Freddie Mac Quarterly Product Transition Report released recently. Refinancing borrowers clearly preferred fixed-rate loans, regardless of whether their original loan was an adjustable-rate mortgage (ARM) or a fixed-rate.
An increasing share of refinancing borrowers chose to shorten their loan terms during the second quarter. Of borrowers who paid off a 30-year fixed-rate loan, 37% chose a 15- or 20-year loan, the highest such share since the third quarter of 2003.
According to Freddie Mac, 55% of borrowers who had a hybrid ARM chose a fixed-rate loan during the second quarter, while the remaining 45% chose to refinance into the same type of product. The share refinancing from hybrid ARM to hybrid ARM was the highest since the second quarter of 2004.
"Fixed mortgage rates averaged 4.65% for 30-year loans and 3.84% for 15-year product during the second quarter in Freddie Mac's Primary Mortgage Market Survey®, well below long-term averages," says Frank Nothaft, Freddie Mac vice president and chief economist. “The Bureau of Economic Analysis has estimated the average coupon on single-family loans was about 5.3 percent during the second quarter of 2011. It's no wonder we continue to see strong refinance activity into fixed-rate loans.”
He continued, "Compared to a 30-year, fixed-rate mortgage, the interest rate on 15-year fixed was about 0.8 percentage points lower during the second quarter. For borrowers motivated to refinance by low fixed-rates, they could obtain even lower rates by shortening their term. The initial interest rate on a 5/1 hybrid ARM was about 1.2 percentage points lower than on a 30-year fixed-rate loan. For borrowers who plan to remain in their current home for only a few years, the hybrid ARM allows for even greater interest-rate savings."
5 ways to cope when your parents move in with you
Multigenerational households are becoming more common in today’s economy. It can save families money, but be prepared to endure conflicts and learn how to coexist in harmony.
"It's a return to much closer intergenerational ties than we saw through much of the 20th century," says Stephanie Coontz, a professor of history and family studies at Evergreen State College in Olympia, Wash., and author of “The Way We Really Are: Coming to Terms with America's Changing Families.”
Twenty-somethings who move back in with their parents after college are often lamented as "boomerangs." But increasing numbers of seniors are moving in with their adult children and grandchildren as well. More than 3.6 million parents lived with their adult children in 2007, according to recently released U.S. Census Bureau data, up 60% from 2000.
A trouble-free arrangement? Not so much. Here's how to navigate the potential land mines of multiple generations sharing the same home.
1. Sharing the bills
Living in a group almost always cuts the living expenses of all involved. "When you have highly stressed parents raising kids, there is a sort of win-win situation when you have a parent that you are close to helping with child care or housing costs," Coontz says.
Living in a group almost always cuts the living expenses of all involved. "When you have highly stressed parents raising kids, there is a sort of win-win situation when you have a parent that you are close to helping with child care or housing costs," Coontz says.
Here is one case study: Allegra Hinkle, 55, a media technician, was having trouble affording housing in Olympia while her husband, David Stein, worked abroad as a photographer in Amsterdam. Hinkle's son, Dustin Hinkle-Anderson, 28, a chef, was also balking at high housing costs for himself, his pregnant girlfriend, Courtney Norman, and their 2-year-old daughter. The extended family of four had moved into a house by July 2007 that Hinkle had previously rented to college students. The primary mortgage is $850 a month plus $200 for taxes and insurance. Her son and his girlfriend pay $700 and Hinkle pays the remaining monthly balance, which they can afford more comfortably than separate accommodations. When Hinkle leaves the house to visit her husband abroad, her son and his girlfriend will pay $800 and Hinkle will kick in the rest to hold her spot. Stein will also spend the summer in the house.
"We will probably see more of parents moving in with their children to combine households to cut down on costs," says Susan Newman, a social psychologist and author of “Nobody's Baby Now: Reinventing Your Adult Relationship with Your Mother and Father.” "If you have a positive relationship with your parents and your spouse and children get along with your parents, economically it seems like it would make good sense."
2. Raising the (grand) kids
Reliable day care often claims a large chunk of a working parent's budget. But live-in grandparents sometimes share child-care responsibilities. Hinkle spends her mornings caring for her granddaughter, Adaline. "I get her up and feed her, and then I head off to work and [her mother] Courtney takes over -- no day care needed." But there is also a high potential for conflict over parenting strategies. "Be very respectful of your child's parenting style, even if it differs radically from yours," cautions Joshua Coleman, a psychologist and author of “When Parents Hurt: Compassionate Strategies When You and Your Grown Child Don't Get Along.” "Unless advice is requested, try to not intervene."
Reliable day care often claims a large chunk of a working parent's budget. But live-in grandparents sometimes share child-care responsibilities. Hinkle spends her mornings caring for her granddaughter, Adaline. "I get her up and feed her, and then I head off to work and [her mother] Courtney takes over -- no day care needed." But there is also a high potential for conflict over parenting strategies. "Be very respectful of your child's parenting style, even if it differs radically from yours," cautions Joshua Coleman, a psychologist and author of “When Parents Hurt: Compassionate Strategies When You and Your Grown Child Don't Get Along.” "Unless advice is requested, try to not intervene."
3. Finding your space
Cramped living spaces can lead to problems. Hinkle has her own bedroom and bathroom in her shared 1,400-square-foot, three-bedroom house and private entrances to the front and back. "I think it's really important that you still have your own space that is just yours," Hinkle says. "I don't have to ingress or egress through their parts of the house." Discussing ground rules before the parent moves in can ease tensions. Figure out who will do the cooking, shopping, laundry, household chores and child care, and decide how expenses will be shared. Hinkle typically cooks separately from the rest of her family and has her own cupboard and refrigerator shelves. "Once in awhile, we have dinner together or invite my daughter over and Courtney's son [from a previous marriage]," Hinkle says.
Cramped living spaces can lead to problems. Hinkle has her own bedroom and bathroom in her shared 1,400-square-foot, three-bedroom house and private entrances to the front and back. "I think it's really important that you still have your own space that is just yours," Hinkle says. "I don't have to ingress or egress through their parts of the house." Discussing ground rules before the parent moves in can ease tensions. Figure out who will do the cooking, shopping, laundry, household chores and child care, and decide how expenses will be shared. Hinkle typically cooks separately from the rest of her family and has her own cupboard and refrigerator shelves. "Once in awhile, we have dinner together or invite my daughter over and Courtney's son [from a previous marriage]," Hinkle says.
4. Caring for elders
Sometimes adult children have their parents move in to avoid a nursing home. Nancy Koppelman, 50, an American-studies teacher, moved in her 80-year-old mother, Ruby Koppelman, a retired art teacher, in mid-May. Also sharing the 2,200-square-foot house in Olympia are Nancy Koppelman's husband, Steve Blakeslee, and two kids, ages 14 and 8. Ruby Koppelman, who has Alzheimer's disease, goes to adult day care every day while the rest of the family is at work or school.
Sometimes adult children have their parents move in to avoid a nursing home. Nancy Koppelman, 50, an American-studies teacher, moved in her 80-year-old mother, Ruby Koppelman, a retired art teacher, in mid-May. Also sharing the 2,200-square-foot house in Olympia are Nancy Koppelman's husband, Steve Blakeslee, and two kids, ages 14 and 8. Ruby Koppelman, who has Alzheimer's disease, goes to adult day care every day while the rest of the family is at work or school.
"She's in a mental situation where she is still lucid and recognizes everyone that she loves, but her short-term memory is only about two or three minutes long," Nancy Koppelman says. "She would be fed and clothed and warm in assisted living, but she wouldn't be loved there. She is much more likely to maintain her mental health being with family."
The family took out a loan to build an approximately 300-square-foot room and private bathroom onto the house for Ruby Koppelman, which she pays back using her Social Security and pension benefits. The room has a private entrance but only to the backyard. "We did that on purpose because if she does get confused, we don't want her to be able to wander," Nancy Koppelman says. "We do need to adjust our schedule so that someone is always home when we can't have a paid caregiver come in."
Caregiving roles can put a lot of stress on the rest of the family. "If health-care needs are fairly extensive, you want to make sure you have someone to cover for you so that you can get out and are not on call 24/7," says Newman.
5. Interacting with one another
Before a relative moves in, it is also a good idea to bring up what subjects will be taboo, perhaps politics or dating lives. "I've taken oral histories where the parents start to make judgments about the lifestyle of their kids and tell the kids how to behave and the kids start getting judgmental about whether the parents can date or not," Coontz says. "They both have to have their own space and respect the decisions of the other parties."
Before a relative moves in, it is also a good idea to bring up what subjects will be taboo, perhaps politics or dating lives. "I've taken oral histories where the parents start to make judgments about the lifestyle of their kids and tell the kids how to behave and the kids start getting judgmental about whether the parents can date or not," Coontz says. "They both have to have their own space and respect the decisions of the other parties."
Each generation should also maintain an individual social life. "If your parents don't have a social network, help them create their own social network so that they are not totally dependent on you for all social interaction," Newman says. You can find peers with similar interests through religious associations, community centers and volunteer organizations.
In a multigenerational household, it can often be difficult to know who is in charge. "You've got the traditional power structure of the parent having authority and the child saying this is my house and what I say goes," Coleman says. "There is a high potential for conflict, but there is a good potential for increased closeness."
By Emily Brandon, U.S. News & World Report
The lowdown on low-fee real-estate agents
By Michele Lerner of Investopedia
Home sellers in most real-estate markets around the country are faced with the prospect of selling their properties for less than they had hoped, or at least for less than they would have been worth in 2005. But even in the best markets, many homeowners contemplate selling a home without a full-service real-estate agent, in order to save money on the commission. Real-estate commissions vary, but generally they run up to about 6% of the sale price, or about $18,000 for a $300,000 home. Home sellers pay the commission, which is usually split between an agent representing the buyer and an agent representing the seller, from the proceeds of the home sale at settlement.
Disadvantages of discount brokers
If you opt to work with a discount real-estate agent, you may find that you have to do more of the marketing and home showing yourself. Make sure you have the time and energy to handle showing the property.
Some discount brokers, because they charge a low commission, will not share that commission with other agents. Even if they do share, the amount of the commission will be smaller than what a traditional agent earns. Some buyer's agents may be less eager to show your home to their customers if they will earn little or no commission, so it may take longer for you to sell your home.
If you opt to work with a discount real-estate agent, you may find that you have to do more of the marketing and home showing yourself. Make sure you have the time and energy to handle showing the property.
Some discount brokers, because they charge a low commission, will not share that commission with other agents. Even if they do share, the amount of the commission will be smaller than what a traditional agent earns. Some buyer's agents may be less eager to show your home to their customers if they will earn little or no commission, so it may take longer for you to sell your home.
Whether you opt for a traditional real-estate agent or a discount broker, make sure that you have educated, trustworthy guidance about the price and condition of your home and that you know exactly what you are getting for your money.
Wednesday, August 24, 2011
Are You Ready to Buy a Home?
By Michele Lerner
Bankrate.com
Are you ready to buy your first home? Buying a home requires a life plan and a financial plan.
"Getting ready to buy a home should mean that the prospective buyers understand that there is more to homeownership than a housing payment," says Jim Walton, vice president of consumer credit with MetLife Bank in Irving, Texas. "Homeownership requires a commitment to a property and to a community."
Long-Term Commitment
In a hot real estate market, buying and flipping appeals to some buyers, but in a more stable or declining market, owning a home requires a longer time to build equity.
"Even in the Washington, D.C., area, where our market is relatively stable, I counsel buyers to look at a minimum of a three- to five-year investment," says Leslie Wilder, a Realtor with McEnearney Associates in Arlington, Va. "In other markets, I think you need to own for a minimum of five years or longer in order to recoup the costs of buying and selling. If you are not able to make that commitment, you are better off renting."
She also says: "Buyers need to think not only about what they want now, but also what they will want in five years. For example, if a couple wants to start a family, they might want to choose a home in a school district they prefer or to live close to work to shorten their commute."
Affordability
A lender can tell you the maximum mortgage you qualify for, but financial experts recommend that you determine your own upper limit for a housing payment.
"A lender will look at your debt-to-income ratio, but at the end of the day you need to be comfortable with your mortgage payment and also prepared to save for other financial needs even after you become a homeowner," Walton says. "Buyers should take a disciplined approach to saving for a down payment, and then they need to be able to continue to save after they buy, for home maintenance and emergencies."
Marc Schindler, a Certified Financial Planner and owner of Pivot Point Advisors in Bellaire, Texas, says he looks at real estate as an illiquid investment.
"If you needed the cash from the sale of a home, it would take time to sell and cost about 7% of the home value for transaction costs," Schindler says. "I would recommend that no more than 25% of your asset allocation should be in real estate. For someone young with few assets, that may mean postponing buying a home until you can save more money."
Interest Rates
Wilder says a good lender can talk to buyers about a variety of mortgage scenarios based on loan qualifications and size of down payment.
"A lender should also talk to you about the impact of rising interest rates so you understand how much you can afford at different rates," Wilder says. "Buyers need to buy within their comfort level, so they may need to compromise on the home they buy. If they decide to wait to save more, they need to realize that if interest rates go up they may not be able to qualify for the same mortgage amount as they can right now."
Qualifications
A credit score of 720 to 740 is generally required to qualify for the lowest mortgage rates. FHA loan requirements are more lenient and sometimes lenders qualify borrowers with a score as low as 620 for these government-insured loans.
"We generally look for a stable two-year job history, but we know people have lost jobs in the past few years so we are looking for a re-established job history if someone has been unemployed," Walton says.
Home Prices and Rental Rates
Schindler says potential buyers should research their housing market to determine whether owning is more affordable than renting or the other way around. In some markets, demand drives up rents, while a glut of homes for sale drives down prices.
"A rent-versus-own calculator can be a good resource, but generally these will show you the maximum mortgage you qualify for at the best rates," says Walton. "Determining how much you want to spend on rent or a mortgage should be a personal decision."
Responsibilities of Homeowners
"Buyers need to make sure and factor in the maintenance costs of homeownership, which can run from 1 (percent) to 4% of the home value per year," Schindler says. "They need to realize that housing costs also include homeowners insurance, perhaps flood insurance and homeowner association dues, not just the principal and interest on the mortgage payment."
Ready to Buy?
"If you are a good, solid buyer financially, with savings, a steady income and job stability, and you can commit to staying in a home for the long-term, then the only thing to think about is whether you want to own a place to call home," Wilder says. "If all those pieces are in place, then it makes sense to buy now."
Read more: http://www.foxnews.com/personal-finance/2011/08/15/are-ready-to-buy-home/#ixzz1VxqEjtKY
Bankrate.com
Are you ready to buy your first home? Buying a home requires a life plan and a financial plan.
"Getting ready to buy a home should mean that the prospective buyers understand that there is more to homeownership than a housing payment," says Jim Walton, vice president of consumer credit with MetLife Bank in Irving, Texas. "Homeownership requires a commitment to a property and to a community."
Long-Term Commitment
In a hot real estate market, buying and flipping appeals to some buyers, but in a more stable or declining market, owning a home requires a longer time to build equity.
"Even in the Washington, D.C., area, where our market is relatively stable, I counsel buyers to look at a minimum of a three- to five-year investment," says Leslie Wilder, a Realtor with McEnearney Associates in Arlington, Va. "In other markets, I think you need to own for a minimum of five years or longer in order to recoup the costs of buying and selling. If you are not able to make that commitment, you are better off renting."
She also says: "Buyers need to think not only about what they want now, but also what they will want in five years. For example, if a couple wants to start a family, they might want to choose a home in a school district they prefer or to live close to work to shorten their commute."
Affordability
A lender can tell you the maximum mortgage you qualify for, but financial experts recommend that you determine your own upper limit for a housing payment.
"A lender will look at your debt-to-income ratio, but at the end of the day you need to be comfortable with your mortgage payment and also prepared to save for other financial needs even after you become a homeowner," Walton says. "Buyers should take a disciplined approach to saving for a down payment, and then they need to be able to continue to save after they buy, for home maintenance and emergencies."
Marc Schindler, a Certified Financial Planner and owner of Pivot Point Advisors in Bellaire, Texas, says he looks at real estate as an illiquid investment.
"If you needed the cash from the sale of a home, it would take time to sell and cost about 7% of the home value for transaction costs," Schindler says. "I would recommend that no more than 25% of your asset allocation should be in real estate. For someone young with few assets, that may mean postponing buying a home until you can save more money."
Interest Rates
Wilder says a good lender can talk to buyers about a variety of mortgage scenarios based on loan qualifications and size of down payment.
"A lender should also talk to you about the impact of rising interest rates so you understand how much you can afford at different rates," Wilder says. "Buyers need to buy within their comfort level, so they may need to compromise on the home they buy. If they decide to wait to save more, they need to realize that if interest rates go up they may not be able to qualify for the same mortgage amount as they can right now."
Qualifications
A credit score of 720 to 740 is generally required to qualify for the lowest mortgage rates. FHA loan requirements are more lenient and sometimes lenders qualify borrowers with a score as low as 620 for these government-insured loans.
"We generally look for a stable two-year job history, but we know people have lost jobs in the past few years so we are looking for a re-established job history if someone has been unemployed," Walton says.
Home Prices and Rental Rates
Schindler says potential buyers should research their housing market to determine whether owning is more affordable than renting or the other way around. In some markets, demand drives up rents, while a glut of homes for sale drives down prices.
"A rent-versus-own calculator can be a good resource, but generally these will show you the maximum mortgage you qualify for at the best rates," says Walton. "Determining how much you want to spend on rent or a mortgage should be a personal decision."
Responsibilities of Homeowners
"Buyers need to make sure and factor in the maintenance costs of homeownership, which can run from 1 (percent) to 4% of the home value per year," Schindler says. "They need to realize that housing costs also include homeowners insurance, perhaps flood insurance and homeowner association dues, not just the principal and interest on the mortgage payment."
Ready to Buy?
"If you are a good, solid buyer financially, with savings, a steady income and job stability, and you can commit to staying in a home for the long-term, then the only thing to think about is whether you want to own a place to call home," Wilder says. "If all those pieces are in place, then it makes sense to buy now."
Read more: http://www.foxnews.com/personal-finance/2011/08/15/are-ready-to-buy-home/#ixzz1VxqEjtKY
Tuesday, August 23, 2011
Sunday, August 21, 2011
What You Need to Know Before Refinancing
With interest rates lower than they've been in 15 years a lot of consumers are looking to save money on their monthly mortgage payments. Although this is a great option for many borrowers, choosing the right type of refinance is a very important decision.
You can save money by refinancing at the similar term you started with or you can shave years off your mortgage by refinancing into a shorter term mortgage, potentially without upfront costs. Some borrowers are waiting for the rates to bottom out before considering a refinance; the problem with that is there is really no consistent, verifiable way to predict which direction rates will go in the future. At this time with the current financial markets in such a "perplexed" state, no one can reliably predict the short term direction of mortgage interest rates.
The best refinance option depends on the specific borrower and their current economic condition and what the near future holds for them and their lifestyle choices. For example, an ARM may be the right fit for someone who knows they are going to be moving for one reason or another in the next five to seven years. They can get a short term ARM that will have a very low interest rate for a number of years. This could add up to be a significant savings over their current mortgage. If you are not planning on moving but would like to cut down on the number of years you will be paying your mortgage you could reduce your term in a refinance from the most popular 30 year fixed to a 20, 15 or 10 year fixed. The rates will be more attractive and the amount of interest you will save could be very significant over the term of your loan.
Before considering any refinance, you should take a very good look at the current mortgage, the interest rate, and how long you have been paying it off. Additionally, in today's environment it is very important to have a good understanding of home values in your neighborhood. In most cases, values have come down over the past few years and a reduced value on your home could influence your ability to refinance. Lastly, as mentioned above, know what your short- and long-term ideas are for staying in the current home or possibly moving to a new location.
It is important to ask a lot of questions about your lender and their way of doing business. Are they brokers? What banks do they use for mortgages? How long have they been in business? Can they supply references? It is also important to shop around for competitive rates on your transaction. Referrals are a great way to locate a mortgage person that you can trust. Ask your friends and family who they have had experience with and start your search with those that get favorable remarks.
When refinancing, be sure to understand the costs associated with the refinance. In some situations, the breakeven point when paying closing costs can be way too long to make it an effective move. However, if your mortgage lender offers a true no-point, no-closing- cost loan, it is probably a good reason to start the process right away.
For more information please visit www.PoliMortgage.com.
Friday, August 19, 2011
Eight Plumbing Tips for the Dog Days of Summer
You probably noticed an increase in your water bill this month. During peak water use, usually in late July or early August, the average American uses about four times as much water than they do the rest of the year. From taking more frequent showers to watering the lawn to even washing additional loads of laundry, it all adds up.
"Aside from watering your lawn later in the day, there are many other summer water-saving tips that many people don't think about," says John Senescall, general manager of a Minneapolis-based plumbing and drain-cleaning service provider.
Here is a recommend list of plumbing precautions to save your wallet from the summer heat, while saving energy and staying within the family budget.
1. Check the temperature setting on your water heater. It should be set no higher than 120 degrees to prevent scalding and reduce energy use. Summer is a good time to turn the temperature down, especially when away on vacation.
2. Replacing an old shower head can save up to 7.5 gallons of water per minute without sacrificing water pressure. To clean mineral deposits from the showerhead, unscrew it, soak it in vinegar overnight and then gently scrub with a toothbrush to remove deposits.
3. Check washing machine hoses for rupture. Turn valves on and off to check for leaks.
4. Make sure that yard drains, gutters and downspouts are cleaned out, open and free of debris.
5. Check outdoor faucets and hose bibs to make sure water flows freely.
6. Beware of standing water. Excess water can result from leaky or broken pipes or a damaged sewer line. Standing water is not healthy for children or pets, and is a breeding ground for insects and germs. Inspect the yard for areas that are too wet or have unusual plant or grass growth.
7. Conserve water. Water your lawn before sun up or after sun down to reduce usage.
8. In humid weather, ductwork may sweat and cause condensation. This can cause a backup if the drains are not clear. If you have an attic installation, be sure to check for water in the drain pan, which could potentially ruin your ceiling.
Source: www.rotorooter.com
Thursday, August 18, 2011
Mortgage rates at record lows
NEW YORK (CNNMoney) -- Mortgage rates have hit a record low, making homes even more affordable for prospective buyers.
According to mortgage backer Freddie Mac's Primary Mortgage Market Survey, the average 30-year fixed rate loan fell to 4.15% this week -- its lowest level in more than 50 years. Previously, the record low was 4.17%, which was set the week of Nov. 11, 2010. Last week, the 30-year rate was 4.32%.
"The Federal Reserve's policy statement last week and ongoing market concerns over the European debt market carried momentum into this week allowing all mortgage products in our survey to reach all-time record lows," said Frank Nothaft, vice president and chief economist at Freddie Mac.
The rock-bottom rates have made it even more enticing for those who are looking to buy a home to act now.
Housing affordability -- the percentage of homes sold during a quarter that are within the reach of people earning the median family income -- had already been trending near record levels before mortgage rates started to plunge, according to a report from the National Association of Home Builders (NAHB) and Wells Fargo released Thursday. The organization said that when a family spends 28% or less of its gross income on housing expenses it qualifies as affordable.
Yet, despite the extremely favorable conditions, most housing markets remain depressed.
"At a time when homeownership is within reach of more households than it has been for more than two decades and interest rates are at historically low levels, the sluggish economy and the extremely tight credit conditions confronting home buyers and builders remain significant obstacles to many potential home sales," said Bob Nielsen, NAHB's chairman and a home builder from Reno, Nev.
Sales of existing homes fell month-over-month in July, according to the National Association of Realtors (NAR), although they're up from 12 months earlier. Meanwhile, new home sales have been crawling along at about a quarter of what they were during the housing boom
While mortgage rates will probably head lower, any further rate declines would probably be small, according to Ken Johnson, a professor of real estate at Florida International University.
Rates closely track yields on U.S. Treasury bonds, which have also plummeted this week. The 10-year note hit a record low on Thursday, falling below 2% to 1.99%.
"The banks would fall into a liquidity trap [if rates go much lower]," he said. "If they can't make money lending, they'll stop."
According to NAHB, even before interest rates started diving, about 72.6% of all homes that were purchased during the three months ended June 30 were affordable to an American family earning the median income of $64,200.
Syracuse, NY, at an index of 92.6%. Indianapolis at 91.6% and Dayton, Ohio at 90.7% were also very favorable markets for home buyers.
The least affordable market was New York City, where the median price of homes sold during the quarter was $424,000 and where only a quarter of homes sold during the quarter were affordable to those earning the median area income of $67,400.
Three other least-affordable markets were all in California: San Franciscoat 27.5%, Santa Ana at 40.5% and Los Angeles at 41.6%.
NAHB and Wells Fargo's data underlines the stark contrast between expensive coastal markets, where most of the least affordable markets lie, and the heartland, where the most affordable cities are.
"I think prices are turning around," he said, "especially in middle America, but the turnaround will be very slow. "
The record-low mortgage rates, combined with increasing affordability in some markets, could be the catalyst needed for some home buyers who were sitting on the fence to stop renting and put some money on the table.
"It's silly not to buy right now -- if you can," said Johnson. 
Tuesday, August 16, 2011
The Basics of Homeowners Insurance
by Carla Hill
Buying a home is likely the biggest purchase you'll ever make. It's important to protect this investment. This is where homeowners insurance comes in.
As a renter you may have been required to carry "renter's insurance," which was likely a basic plan that covered property losses and damages in case of an accident at which you were at fault, such as fire.
A homeowners policy has to cover so much more. Your possessions now extend on past jewelry and electronics and must protect everything from shingles and flooring to your life savings.
According to Wells Fargo, "Homeowners insurance provides you with broad coverage for losses that can arise while owning or renting out your home – like damage to your personal property, theft and vandalism, and liability coverage for accidental injury to another person or property."
In the aftermath of disaster, whether from fire, tornado, theft, or liability lawsuits, repairs and replacement costs add up fast. The majority of Americans would be unable to come up with the cash needed to return life back to normal.
So, in response, you purchase insurance. Each year you pay a premium. The amount is based on numerous factors, including the value of your home and the location where you live in. Some areas have higher crime rates, greater risks of wildfire, or have multi-million dollar homes. These policy owners will likely pay more than others.
Be sure to ask your insurance provider for the specifics of what your policy covers. You want a policy that gives you the right amount of coverage. Ask about add-ons, such a flood and earthquake policies. According to Allstate Insurance, "Typically, floods and earthquakes are excluded from basic policies, but in some areas, you may be able to get supplemental insurance policies for those situations. A few other conditions most companies specifically exclude are mold, fungus, wet rot, dry rot and bacteria."
Accidents do happen, and with a battery of lawyers around every corner, you want to be sure you're protected if someone injures himself on your property. Guest medical policies also pay for medical expenses should a person injure himself on your land.
In the instance that you must file a claim, you will need to pay a "deductible." This amount ranges from a few hundred to several thousand dollars. Let's say, for example, that you have a fire. The total dollar amount of damage is $10,000. Your policy covers the fire, so you only pay the "deductible," say $500. This is much more manageable for most households.
To cover not only your property losses in this fire, but also your possession, you will need to have proof of what you had. A home has been recorded on the tax roll, but possessions are your own private property. Homeowners should create an itemized list, updated yearly, that gives evidence of what possessions they have and how much they're worth.
You want a policy that has replacement cost coverage, not just the present value. If you lose a mattress in the fire, it will cost you $1,000 to replace, not $50 (the price it might be worth now). In order to have proof of your possession, consider making a video or photo diary.
Most importantly, keep a copy of this diary and itemized list at a second location away from your home, such as at a trusted relative's house or in a safety deposit box.
If you have a mortgage on your home, you may be required to carry Homeowners Insurance. The reasoning behind this logic is simple. You are not the "owner" of your home until you have completed your loan obligations. Until that point, the bank or lender is the legal "owner." They want to be sure their investment is protected.
For those who own their home outright, homeowners insurance is not required by law, but it would be a crime not to carry it.
Buying a home is likely the biggest purchase you'll ever make. It's important to protect this investment. This is where homeowners insurance comes in.
As a renter you may have been required to carry "renter's insurance," which was likely a basic plan that covered property losses and damages in case of an accident at which you were at fault, such as fire.
A homeowners policy has to cover so much more. Your possessions now extend on past jewelry and electronics and must protect everything from shingles and flooring to your life savings.
According to Wells Fargo, "Homeowners insurance provides you with broad coverage for losses that can arise while owning or renting out your home – like damage to your personal property, theft and vandalism, and liability coverage for accidental injury to another person or property."
In the aftermath of disaster, whether from fire, tornado, theft, or liability lawsuits, repairs and replacement costs add up fast. The majority of Americans would be unable to come up with the cash needed to return life back to normal.
So, in response, you purchase insurance. Each year you pay a premium. The amount is based on numerous factors, including the value of your home and the location where you live in. Some areas have higher crime rates, greater risks of wildfire, or have multi-million dollar homes. These policy owners will likely pay more than others.
Be sure to ask your insurance provider for the specifics of what your policy covers. You want a policy that gives you the right amount of coverage. Ask about add-ons, such a flood and earthquake policies. According to Allstate Insurance, "Typically, floods and earthquakes are excluded from basic policies, but in some areas, you may be able to get supplemental insurance policies for those situations. A few other conditions most companies specifically exclude are mold, fungus, wet rot, dry rot and bacteria."
Accidents do happen, and with a battery of lawyers around every corner, you want to be sure you're protected if someone injures himself on your property. Guest medical policies also pay for medical expenses should a person injure himself on your land.
In the instance that you must file a claim, you will need to pay a "deductible." This amount ranges from a few hundred to several thousand dollars. Let's say, for example, that you have a fire. The total dollar amount of damage is $10,000. Your policy covers the fire, so you only pay the "deductible," say $500. This is much more manageable for most households.
To cover not only your property losses in this fire, but also your possession, you will need to have proof of what you had. A home has been recorded on the tax roll, but possessions are your own private property. Homeowners should create an itemized list, updated yearly, that gives evidence of what possessions they have and how much they're worth.
You want a policy that has replacement cost coverage, not just the present value. If you lose a mattress in the fire, it will cost you $1,000 to replace, not $50 (the price it might be worth now). In order to have proof of your possession, consider making a video or photo diary.
Most importantly, keep a copy of this diary and itemized list at a second location away from your home, such as at a trusted relative's house or in a safety deposit box.
If you have a mortgage on your home, you may be required to carry Homeowners Insurance. The reasoning behind this logic is simple. You are not the "owner" of your home until you have completed your loan obligations. Until that point, the bank or lender is the legal "owner." They want to be sure their investment is protected.
For those who own their home outright, homeowners insurance is not required by law, but it would be a crime not to carry it.
12 Steps for Household Mold Removal
Elevated levels of indoor household mold growth are very unhealthy for both homeowners and renters. Here are 12 steps for safe and effective, do-it-yourself household mold removal in houses, condominiums and apartments.
1. Locate, fix and prevent all sources of mold growing water problems, such as severe winter-caused roof ice dams and broken, frozen water pipes, plus leaky roofs or siding, recurring flooding, plumbing leaks, air conditioning condensation, and high humidity (e.g., above 70%), especially for homes in communities near the ocean, a lake, or a large river.
2. Find all visible mold growth by thorough, visual mold inspection. Use a strong flashlight and your sense of smell to help locate mold growth.
3. Inspect for hidden mold growth inside, above, below, and next to water-damaged ceilings, walls, and floors, as well as inside heating, ventilating, and air conditioning (HVAC) equipment and air ducts. Cut one inch by one inch or bigger core dry wall samples. Remove and look in the middle and back of each core for visible mold growth. Then, use a flashlight to look inside each hole for mold growth.
4. Use do-it-yourself mold test kits to test room air and the outward air flow from each HVAC air duct register and all window air conditioners for the possible presence of elevated levels of airborne mold spores. If there are serious mold problems anywhere in a home, airborne mold spores from those mold infestations will enter into the HVAC to cross contaminate both the HVAC and the entire house through the air duct registers.
5. When doing mold inspection, testing and removal, wear proper personal protection including at least: (a) N-95 breathing mask; (b) disposable vinyl gloves; (c) eye goggles with no air holes; (d) head covering; and (e) washable or paper disposable coveralls. These items are readily available at large paint, hardware, and home improvement stores.
6. Contain the mold work area to keep airborne mold spores from cross-contaminating the rest of the house. Tape or staple wall-to-wall, floor-to-ceiling, clear plastic sheeting as mold containment walls, with a lift-up plastic sheeting flap door for easy entry and exit.
7. Dry the work area (especially if still wet from flooding or a now-fixed plumbing or roof leak) with one or more dehumidifiers and/or large fans located right in front of open windows to dry the area and to exhaust dangerous airborne mold spores to the outdoors.
8. Remove visible mold growth by scrubbing it off with a hard bristle brush or wire brush dripping with boric acid powder (mix two cups per gallon of warm water). You can also use a wire brush attachment for an electric drill, hand sander, electric sander, hand-held planer and power planer to remove mold growth from building materials.
9. If you cannot remove all of the mold growth to a visibly mold-free condition, then remove, discard and replace the moldy building materials.
10. Don’t use chlorine bleach because it is not an effective or long-lasting killer of toxic mold growth and mold spores on and inside porous, cellulose building materials such as wood timbers, drywall, plasterboard, particleboard, plywood, plywood substitutes, ceiling tiles, and carpeting/padding. In addition, bleach treatment does not prevent future mold growth.
11. If you have mold growth inside your HVAC system, first have your equipment and air ducts professionally cleaned, and then use a fogging machine to fog boric acid powder (two cups per gallon of warm water) for one hour into the fresh air entry duct of your HVAC to kill any remaining mold and to coat the insides of your equipment and ducts with mold-preventative boric acid crystals (left inside after natural drying). Do this procedure while the system is running on fan ventilation (no heating or cooling) to deliver substantial amounts of boric acid powder throughout the HVAC.
12. During the mold removal process, the residents should move temporarily to a mold-safe place until the successful completion of the mold remediation project and until clearance mold testing documents that it is safe to return.
Sources: www.moldinspector.com, www.workplacemold.com, www.envirodetectives.com
1. Locate, fix and prevent all sources of mold growing water problems, such as severe winter-caused roof ice dams and broken, frozen water pipes, plus leaky roofs or siding, recurring flooding, plumbing leaks, air conditioning condensation, and high humidity (e.g., above 70%), especially for homes in communities near the ocean, a lake, or a large river.
2. Find all visible mold growth by thorough, visual mold inspection. Use a strong flashlight and your sense of smell to help locate mold growth.
3. Inspect for hidden mold growth inside, above, below, and next to water-damaged ceilings, walls, and floors, as well as inside heating, ventilating, and air conditioning (HVAC) equipment and air ducts. Cut one inch by one inch or bigger core dry wall samples. Remove and look in the middle and back of each core for visible mold growth. Then, use a flashlight to look inside each hole for mold growth.
4. Use do-it-yourself mold test kits to test room air and the outward air flow from each HVAC air duct register and all window air conditioners for the possible presence of elevated levels of airborne mold spores. If there are serious mold problems anywhere in a home, airborne mold spores from those mold infestations will enter into the HVAC to cross contaminate both the HVAC and the entire house through the air duct registers.
5. When doing mold inspection, testing and removal, wear proper personal protection including at least: (a) N-95 breathing mask; (b) disposable vinyl gloves; (c) eye goggles with no air holes; (d) head covering; and (e) washable or paper disposable coveralls. These items are readily available at large paint, hardware, and home improvement stores.
6. Contain the mold work area to keep airborne mold spores from cross-contaminating the rest of the house. Tape or staple wall-to-wall, floor-to-ceiling, clear plastic sheeting as mold containment walls, with a lift-up plastic sheeting flap door for easy entry and exit.
7. Dry the work area (especially if still wet from flooding or a now-fixed plumbing or roof leak) with one or more dehumidifiers and/or large fans located right in front of open windows to dry the area and to exhaust dangerous airborne mold spores to the outdoors.
8. Remove visible mold growth by scrubbing it off with a hard bristle brush or wire brush dripping with boric acid powder (mix two cups per gallon of warm water). You can also use a wire brush attachment for an electric drill, hand sander, electric sander, hand-held planer and power planer to remove mold growth from building materials.
9. If you cannot remove all of the mold growth to a visibly mold-free condition, then remove, discard and replace the moldy building materials.
10. Don’t use chlorine bleach because it is not an effective or long-lasting killer of toxic mold growth and mold spores on and inside porous, cellulose building materials such as wood timbers, drywall, plasterboard, particleboard, plywood, plywood substitutes, ceiling tiles, and carpeting/padding. In addition, bleach treatment does not prevent future mold growth.
11. If you have mold growth inside your HVAC system, first have your equipment and air ducts professionally cleaned, and then use a fogging machine to fog boric acid powder (two cups per gallon of warm water) for one hour into the fresh air entry duct of your HVAC to kill any remaining mold and to coat the insides of your equipment and ducts with mold-preventative boric acid crystals (left inside after natural drying). Do this procedure while the system is running on fan ventilation (no heating or cooling) to deliver substantial amounts of boric acid powder throughout the HVAC.
12. During the mold removal process, the residents should move temporarily to a mold-safe place until the successful completion of the mold remediation project and until clearance mold testing documents that it is safe to return.
Sources: www.moldinspector.com, www.workplacemold.com, www.envirodetectives.com
Friday, August 12, 2011
How to Properly Assess Online Photos
With a large majority of real estate buyers starting their home search online, it is more important than ever for sellers and the agents representing them to be sure the photos they post online make a good first impression. The National Association of Exclusive Buyer Agents (NAEBA) warns that real estate images can be misleading, especially as home staging—the practice in which experts make the property attractive to the highest number of potential home buyers by enhancing its visual appeal—is becoming increasingly common. Taking the staging element to the dramatic editing of online photos is a relatively new tactic and can be misleading.
Today’s home buyer spends more time online when shopping for a home. The practice is growing and more popular than ever with the rise of smartphone apps that allow buyers to search property listings, calculate mortgages and more. Virtual showings are integral to the total home buying process and a large part of that is the ability to view the exterior and interior of a home before deciding to view it in person.
The following four tips will help buyers assess online photos in the proper context.
1. Pictures can look better than the actual home. Buyers should view pictures with that understanding and not make a sole judgment based on the photos.
2. Pictures may look worse than the actual home. Buyers may be discouraged by a poorly taken photo, yet the property may actually represent a good bargain.
3. Order and flow make a difference. It can be difficult to get a sense of the flow of the home from photographs. If the photos are not listed in order, try to do it yourself so that you can follow the path of the home from the front door through the rooms of the house.
4. Photos distort scale. It is difficult to get a good view of a whole room from a small picture. Rely on floor plans and room dimensions rather than photos to judge the scale of rooms.
Photos can provide additional information, but home buyers that rely solely on an image can miss out on a great home or be disappointed by an in-person visit. Buyers should assess all available information about a home. Use Google Street View to see the surrounding neighborhood, and Yelp to read reviews about local businesses and stores. A picture may not be worth a thousand words, but when added to detailed research, it can be very valuable.
For more information, visit http://www.naeba.org/.
Today’s home buyer spends more time online when shopping for a home. The practice is growing and more popular than ever with the rise of smartphone apps that allow buyers to search property listings, calculate mortgages and more. Virtual showings are integral to the total home buying process and a large part of that is the ability to view the exterior and interior of a home before deciding to view it in person.
The following four tips will help buyers assess online photos in the proper context.
1. Pictures can look better than the actual home. Buyers should view pictures with that understanding and not make a sole judgment based on the photos.
2. Pictures may look worse than the actual home. Buyers may be discouraged by a poorly taken photo, yet the property may actually represent a good bargain.
3. Order and flow make a difference. It can be difficult to get a sense of the flow of the home from photographs. If the photos are not listed in order, try to do it yourself so that you can follow the path of the home from the front door through the rooms of the house.
4. Photos distort scale. It is difficult to get a good view of a whole room from a small picture. Rely on floor plans and room dimensions rather than photos to judge the scale of rooms.
Photos can provide additional information, but home buyers that rely solely on an image can miss out on a great home or be disappointed by an in-person visit. Buyers should assess all available information about a home. Use Google Street View to see the surrounding neighborhood, and Yelp to read reviews about local businesses and stores. A picture may not be worth a thousand words, but when added to detailed research, it can be very valuable.
For more information, visit http://www.naeba.org/.
Bargain or bust? Buying a house as-is
Buying a home as-is can mean a good deal or a giant headache.
By Marcie Geffner of Bankrate.com
Many homes are sold "as-is" in this housing crisis. The as-is strategy benefits sellers, but whether it means a good deal or a headache for buyers is a more complicated question.
Legally speaking, as-is encompasses more than the seller's reluctance to make repairs. It also releases the seller from responsibility or liability for the home's condition. The buyer gets the property with no guarantee that it's free from minor or major problems, says Joanne Fanizza, a real-estate attorney in Farmingdale, N.Y.
Inspections reveal defects
Houses are sold as-is for a reason. Consequently, there's all the more need for the buyer to obtain a professional property inspection, says David Tamny, owner of Professional Property Inspection in Columbus, Ohio.
An inspection can turn up useful information, but no one can discover all the problems that might plague a property. Even the best inspectors, Fanizza says, aren't magicians or soothsayers.
Repairs? Maybe
Jan Baron, a real-estate agent at HomeSmart Real Estate in Temecula, Calif., draws a distinction between two types of home sales that often involve as-is conditions. Real estate-owned, or REO, refers to the sale of a house owned by a bank after a foreclosure, while a short sale refers to the sale of a house by an individual owner whose mortgage balance exceeds the property value.
An REO might open up some room to negotiate repairs, especially if safety hazards or government mandates are involved, Baron says.
"If it's a bank-owned home, even if they say it's as-is and they won't do any repairs, I always ask," she says. "It's worth a try. Maybe they'll do half a loaf."
A short sale usually means no repairs whatsoever, in Baron's experience.
Sellers who aren't underwater might offer a property as-is because they don't want to pay for repairs that benefit the buyer, not themselves, says Patti Ketcham, owner of Ketcham Realty Group in Tallahassee, Fla.
"They're reluctant to fix up a house and not get any of the pleasure from that," she says.
As-is can be costly
Buyers who don't have the cash or skills to make major repairs should beware of as-is sales, Tamny says.
"Once you buy that house," he says, "it's yours and you're pretty much stuck with whatever decision you made, so you really need to be very educated and thorough about what you're doing. It's a minefield for the unsophisticated buyer."
Some buyers walk away from an as-is sale after they receive the inspection report because they're dismayed by the condition of the house or can't afford the repairs, Ketcham says. But research into the actual repair costs, combined with prioritizing which repairs should be done first and which can wait, might make the deal doable, especially if the house's price is right. Often, Ketcham says, buyers and sellers can "elephant bite" the list, nibbling away at the repairs so the project isn't overwhelming. Top priority should be anything that's "electrical in nature" because such hazards can be deadly.
Disclosures might be worthless
Many states — New York being one exception — require most sellers to disclose what they know about a property's condition, Fanizza says. Often, these disclosures involve a standardized form the seller fills out and gives to the buyer. In the case of an REO, the information might not be useful since the bank obviously hasn't occupied the home.
"All of the foreclosures or bank sales are strictly as-is because the banks aren't in a position to know what happened to these properties over time before they were taken back," Fanizza says.
Buyers must accept risks
The bottom line isn't necessarily that buyers should avoid any house that is being sold as-is, Fanizza says. Rather, "as-is" means buyers should take extra care that they understand the risks and are willing to deal with repairs immediately.
"Some of these houses can be a really good deal, so I wouldn't say anyone should run," Fanizza says. "It depends on the buyers' tolerance for the unknown, combined with their own talents and (access to) experts who can assist them."
By Marcie Geffner of Bankrate.com
Many homes are sold "as-is" in this housing crisis. The as-is strategy benefits sellers, but whether it means a good deal or a headache for buyers is a more complicated question.
Legally speaking, as-is encompasses more than the seller's reluctance to make repairs. It also releases the seller from responsibility or liability for the home's condition. The buyer gets the property with no guarantee that it's free from minor or major problems, says Joanne Fanizza, a real-estate attorney in Farmingdale, N.Y.
Inspections reveal defects
Houses are sold as-is for a reason. Consequently, there's all the more need for the buyer to obtain a professional property inspection, says David Tamny, owner of Professional Property Inspection in Columbus, Ohio.
An inspection can turn up useful information, but no one can discover all the problems that might plague a property. Even the best inspectors, Fanizza says, aren't magicians or soothsayers.
Repairs? Maybe
Jan Baron, a real-estate agent at HomeSmart Real Estate in Temecula, Calif., draws a distinction between two types of home sales that often involve as-is conditions. Real estate-owned, or REO, refers to the sale of a house owned by a bank after a foreclosure, while a short sale refers to the sale of a house by an individual owner whose mortgage balance exceeds the property value.
An REO might open up some room to negotiate repairs, especially if safety hazards or government mandates are involved, Baron says.
"If it's a bank-owned home, even if they say it's as-is and they won't do any repairs, I always ask," she says. "It's worth a try. Maybe they'll do half a loaf."
A short sale usually means no repairs whatsoever, in Baron's experience.
Sellers who aren't underwater might offer a property as-is because they don't want to pay for repairs that benefit the buyer, not themselves, says Patti Ketcham, owner of Ketcham Realty Group in Tallahassee, Fla.
"They're reluctant to fix up a house and not get any of the pleasure from that," she says.
As-is can be costly
Buyers who don't have the cash or skills to make major repairs should beware of as-is sales, Tamny says.
"Once you buy that house," he says, "it's yours and you're pretty much stuck with whatever decision you made, so you really need to be very educated and thorough about what you're doing. It's a minefield for the unsophisticated buyer."
Some buyers walk away from an as-is sale after they receive the inspection report because they're dismayed by the condition of the house or can't afford the repairs, Ketcham says. But research into the actual repair costs, combined with prioritizing which repairs should be done first and which can wait, might make the deal doable, especially if the house's price is right. Often, Ketcham says, buyers and sellers can "elephant bite" the list, nibbling away at the repairs so the project isn't overwhelming. Top priority should be anything that's "electrical in nature" because such hazards can be deadly.
Disclosures might be worthless
Many states — New York being one exception — require most sellers to disclose what they know about a property's condition, Fanizza says. Often, these disclosures involve a standardized form the seller fills out and gives to the buyer. In the case of an REO, the information might not be useful since the bank obviously hasn't occupied the home.
"All of the foreclosures or bank sales are strictly as-is because the banks aren't in a position to know what happened to these properties over time before they were taken back," Fanizza says.
Buyers must accept risks
The bottom line isn't necessarily that buyers should avoid any house that is being sold as-is, Fanizza says. Rather, "as-is" means buyers should take extra care that they understand the risks and are willing to deal with repairs immediately.
"Some of these houses can be a really good deal, so I wouldn't say anyone should run," Fanizza says. "It depends on the buyers' tolerance for the unknown, combined with their own talents and (access to) experts who can assist them."
Thursday, August 11, 2011
5 Home Security and Safety Tips for Seniors
Americans who reach age 65 are living an average of 18.5 more years—a four-year increase from 1960—according to a recent federal Aging Forum report. Friends and family can’t always stay with individuals who remain at home and require caregiver help, so home security is of high concern for this growing segment of the population. Consider these tips to help keep seniors secure at home:
1. Light the outdoors: Motion-activated outdoor lights can discourage potential intruders and alert seniors to potential emergencies. Standard, constant lights should also be installed at home exits like porches and garage doors, and turned on each night.
2. Install a security system: Many home alarm systems offer remote access through key chains that allow seniors who have trouble moving around to arm or disable a system from any room in their homes. Make sure the chosen system covers burglary, fire and medical emergencies. Some providers also offer personal emergency monitoring systems that seniors can use to alert medical professionals in case of an emergency like a fall.
3. Check IDs: Scam artists may promise money and prizes in exchange for payment or personal information like a Social Security number. Ask for identification from anyone that comes to the door. Checking with the affiliated business before letting a service or delivery person in is also a good idea. The website Snopes keeps track of circulating scams and hoaxes. Police should be alerted to any suspicious individuals and activity.
4. Use locks on a regular basis: Existing locks on all entrances and exits of a home are useless if they aren’t routinely used. Make a habit of keeping them locked and replace any in poor shape. Locks should be accessible to seniors from the inside in case of an emergency.
5. Schedule routine check-ins: Whether it’s with a hired caregiver or a loved one, seniors should check-in at least once a day in person or via phone to ensure that all is well.
For more information, visit http://www.securitychoice.com/.
1. Light the outdoors: Motion-activated outdoor lights can discourage potential intruders and alert seniors to potential emergencies. Standard, constant lights should also be installed at home exits like porches and garage doors, and turned on each night.
2. Install a security system: Many home alarm systems offer remote access through key chains that allow seniors who have trouble moving around to arm or disable a system from any room in their homes. Make sure the chosen system covers burglary, fire and medical emergencies. Some providers also offer personal emergency monitoring systems that seniors can use to alert medical professionals in case of an emergency like a fall.
3. Check IDs: Scam artists may promise money and prizes in exchange for payment or personal information like a Social Security number. Ask for identification from anyone that comes to the door. Checking with the affiliated business before letting a service or delivery person in is also a good idea. The website Snopes keeps track of circulating scams and hoaxes. Police should be alerted to any suspicious individuals and activity.
4. Use locks on a regular basis: Existing locks on all entrances and exits of a home are useless if they aren’t routinely used. Make a habit of keeping them locked and replace any in poor shape. Locks should be accessible to seniors from the inside in case of an emergency.
5. Schedule routine check-ins: Whether it’s with a hired caregiver or a loved one, seniors should check-in at least once a day in person or via phone to ensure that all is well.
For more information, visit http://www.securitychoice.com/.
Should I Buy?
by Carla Hill
The amount of material promoting home buying is extensive. Financial and real estate experts from across the country know that today's market conditions are heavily weighted in favor of buyers. Interest rates have never been lower. Home values are more affordable than they've been in decades.
Yet, does this mean now is a good time for you to buy? That depends on a number of personal and financial factors. To really understand if you should enter the market, you must look at what homeownership means.
Irresponsible buying or borrowing could be detrimental to our already fragile economy. Homeownership is a long-term financial responsibility. It brings with it many social, and sometimes financial, rewards, but like any commitment should not be entered into lightly.
First and foremost, how stable is your employment? Has your company been experiencing lay-offs or are they hiring?
Next, do you have at least an 8-month emergency fund in case you get laid off or become too sick to work? If not, things could quickly spiral out of control. Losing your home could spell disaster for your credit, leaving a black mark for 7 years.
Many potential buyers today are unable to attain a mortgage due to bad credit. This has created a multi-month supply of homes for sale. Will you need to sell your current home in order to buy a new one? Today's market, which is full of foreclosures and short sales, is difficult for many sellers.
Yearly homeownership expenses also extend on past the monthly mortgage check. Can you afford property taxes, homeowners insurance, and maintenance and upkeep? Currently, homeowners paying on a mortgage can take the Mortgage Interest Deduction (MID) off their yearly taxes. This deduction is on the chopping block, however. Although, your property taxes would likely be more than you'd save with the deduction.
Real estate can be a way to build long-term wealth. Your home can be one of your largest assets. These do not happen overnight, however. Are you planning on remaining in your new home for at least 3 to 5 years? It will take at least that long for you to break even financially when you sell. You will put cash down to buy it and will pay closing costs to sell it, many times to the tune of several thousand dollars.
What if home values continue to fall? Are you buying for reasons other than building equity? Why do you want to buy? In today's market, housing is affordable. It could be years, however, until your home begins to build equity. By the time you put 20 percent down, pay closing costs, and perform repairs and maintenance, returns can be quite slim.
Owning certain homes in specific neighborhoods can be a sign of status. You should be strongly cautioned that "keeping up with the Joneses" is not a valid reason to buy a home, especially in today's economy. Just ask a good portion of homeowners currently in foreclosure. Over 30 percent of all real estate transactions today are all-cash. While a certain percentage of these are investors, it means that many buyers are purchasing home "within their means."
The majority of homeowners, though, would recommend buying to family and friends. This is becasue homeownership instills a sense of community and stability. Studies have shown that homeowners rank themselves healthier than non-homeowners. Children of homeowners are less likely to become teen parents and are more likely to graduate.
Having a place of your own can be priceless. Just be sure you are truly ready to buy before entering the market.
Published: August 9, 2011
The amount of material promoting home buying is extensive. Financial and real estate experts from across the country know that today's market conditions are heavily weighted in favor of buyers. Interest rates have never been lower. Home values are more affordable than they've been in decades.
Yet, does this mean now is a good time for you to buy? That depends on a number of personal and financial factors. To really understand if you should enter the market, you must look at what homeownership means.
Irresponsible buying or borrowing could be detrimental to our already fragile economy. Homeownership is a long-term financial responsibility. It brings with it many social, and sometimes financial, rewards, but like any commitment should not be entered into lightly.
First and foremost, how stable is your employment? Has your company been experiencing lay-offs or are they hiring?
Next, do you have at least an 8-month emergency fund in case you get laid off or become too sick to work? If not, things could quickly spiral out of control. Losing your home could spell disaster for your credit, leaving a black mark for 7 years.
Many potential buyers today are unable to attain a mortgage due to bad credit. This has created a multi-month supply of homes for sale. Will you need to sell your current home in order to buy a new one? Today's market, which is full of foreclosures and short sales, is difficult for many sellers.
Yearly homeownership expenses also extend on past the monthly mortgage check. Can you afford property taxes, homeowners insurance, and maintenance and upkeep? Currently, homeowners paying on a mortgage can take the Mortgage Interest Deduction (MID) off their yearly taxes. This deduction is on the chopping block, however. Although, your property taxes would likely be more than you'd save with the deduction.
Real estate can be a way to build long-term wealth. Your home can be one of your largest assets. These do not happen overnight, however. Are you planning on remaining in your new home for at least 3 to 5 years? It will take at least that long for you to break even financially when you sell. You will put cash down to buy it and will pay closing costs to sell it, many times to the tune of several thousand dollars.
What if home values continue to fall? Are you buying for reasons other than building equity? Why do you want to buy? In today's market, housing is affordable. It could be years, however, until your home begins to build equity. By the time you put 20 percent down, pay closing costs, and perform repairs and maintenance, returns can be quite slim.
Owning certain homes in specific neighborhoods can be a sign of status. You should be strongly cautioned that "keeping up with the Joneses" is not a valid reason to buy a home, especially in today's economy. Just ask a good portion of homeowners currently in foreclosure. Over 30 percent of all real estate transactions today are all-cash. While a certain percentage of these are investors, it means that many buyers are purchasing home "within their means."
The majority of homeowners, though, would recommend buying to family and friends. This is becasue homeownership instills a sense of community and stability. Studies have shown that homeowners rank themselves healthier than non-homeowners. Children of homeowners are less likely to become teen parents and are more likely to graduate.
Having a place of your own can be priceless. Just be sure you are truly ready to buy before entering the market.
Published: August 9, 2011
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