Columbia SC Newsletters

Our Columbia SC Home Inspections Newsletters

Real Estate News - July 2011

In this Issue:*

Seasonal Home Maintenance – Things You Should Do Now

Top 10 Tips For Buying Your First Home

Protect Your Home While on Vacation

(Your comments are welcome at the bottom of our newsletter)

Seasonal Home Maintenance – Things You Should Do Now

Seasonal Home Maintenance - Things You Should Do Now Certain home maintenance tasks should be completed each season to prevent structural damage, save energy, and keep all your home’s systems running properly.

The most critical home maintenance issues have to do with combating heat and humidity. Moisture is a constant in many parts of the country, and keeping your home dry is critical for preventing structural damage caused by mold, fungus, and insect infestations. Also, if you live in a coastal area, you’ll need to make sure your house is ready to withstand hurricanes; The Atlantic hurricane season began June 1st and runs through November 30th.

Key maintenance tasks to perform

Check your drainage. If rainwater is not guided away from the house, it gets into crawl spaces and mold starts growing on the structures and in the insulation. Also, if the soil stays wet around the foundation, the retained water creates an opportunity for termites. Termites love wet soil.

If you have areas of standing water, you need to plan for corrective action, such as re-grading, building landscaping features, or installing a French drain (a shallow trench often filled with gravel that’s designed to redirect water).

Look for overflow from the gutters and weak or non-existent flow from the downspouts that indicate a blockage. Check to see if the gutters have pulled away from the house, and for bent spots. You can make minor repairs to gutters for about $50 by adjusting brackets, gently hammering out dents, and replacing damaged sections.

Look for rotting wood along the eaves. Check your roof overhang—also called the eaves—for dripping water and peeling paint that may indicate roof leaks and rot. If you see signs of trouble, consult a home inspector or roofing contractor.

Look for roof damage. Inspecting your roof is especially important if your house falls under the drip line of a large tree or if you’ve had a recent hailstorm. If your roof is steep or otherwise difficult to navigate, stay on the ground and use a pair of binoculars. Look for loose, damaged, or missing shingles, and be sure to check plumbing vents. Although roofs typically last 20 years, the neoprene boots installed around vents last only 10. If yours are cracked or split, call a roofing contractor to replace—they cost about $50 per boot plus labor.

Test your air conditioning. Have your air conditioning checked to see how it’s working. You might want to consider purchasing a service contract with an HVAC contractor for twice yearly maintenance, an agreement that will cost $150–250 annually. Your air conditioning is like a car tire, in that a slow refrigerant leak can go undetected for a long time before it has a noticeable effect. Annual maintenance guarantees any minor leaks will be caught and fixed, a repair that pays for itself in terms of energy efficiency and increased life of the equipment. Plus, you’ll be prioritized ahead of the pack if your system fails on a hot day.

Clean your siding. Algae growth and mildew frequently appear on siding. Clean your vinyl, brick, stucco, or wood siding with mild soap and water, a brush, and a garden hose with a spray nozzle. A pressure or power washer should only be used by a professional. You can damage the siding and you can even damage the grout between bricks with a pressure washer. Plus you can blow water up under the siding and into the walls and insulation, which leads to mold growth. If you choose to have your siding professionally cleaned, expect to pay $300–$500.

Prepare for hurricanes. If you live on the coast, check the condition of your home’s hurricane-resistant features, such as shutters and bracing, and make sure you have plywood and fasteners on hand for covering windows. Caulk and weatherstrip windows and doors, if necessary. If you have double-entry doors (which consist of two doors side by side, one of which is usually fixed), reinforce them with heavy-duty slide bolts, strike plates, and deadbolts. The materials will cost you around $100 if you do the project yourself.

Spending a few hours here and there on home maintenance tasks helps you spot developing problems quickly and prevent costly repairs.

.

.T

Top 10 Tips For Buying Your First Home

10 Tips For Buying Your First House

Before you start the home-buying process, make sure you are ready to buy a home where you will live for three to five years or longer, since it can take that long to build equity in a home and recoup your investment costs. Think about your dream home and your dream neighborhood, but recognize that you may need to sift through these dreams to find a community and a home that you can comfortably afford.

Here are some tips to get you started on the step-by-step process of buying a home:

1. Check Your Credit Score

Lenders base your mortgage qualification on a variety of factors, including your income and assets, your debt-to-income ratio, your pattern of savings and your job stability. But the most important factor in today’s tightened credit world is your credit score. Lenders tie the interest rate you must pay to your credit score, so that borrowers with a score of 720 and sometimes 740 and above are the only ones who will pay the lowest mortgage rates. Borrowers with a credit score below 620 may not qualify at all for a mortgage until they can improve their score.

2. Set Your Housing Budget

A lender will tell you how much you can borrow, but each potential homeowner should create a simple budget for themselves with income and spending to determine how much they are willing to spend on housing payments. Financial experts recommend homeowners spend a maximum of about 30% of their gross monthly income on principal, interest, homeowners insurance and taxes. Don’t forget to budget about 1% of the home price for condo or homeowner association fees and maintenance costs.

3. Start Saving and Stop Spending

Once you have an estimate of your mortgage payment, start saving the difference between that payment and your current rent every month. In addition to building your savings, this allows you to get comfortable with a higher housing payment.

4. Meet With a Lender

Get pre-qualified for a mortgage loan before you look at homes so you can avoid falling in love with a home you cannot afford. You may be surprised to discover you can afford something pricier than you thought since interest rates are so low. Make sure you ask your lender about your variety of loan options and get an idea of how much cash you will need for a down payment and closing costs.

5. Find a Reputable Real Estate Agent

All buyers should have a real estate agent or broker to represent their interests during negotiations and to help buyers recognize the value in different homes and neighborhoods. Your real estate agent should be experienced, knowledgeable and familiar with where you want to live. Trusting your real estate agent is vitally important to buying your first home.

6. Narrow Your Priorities

Decide whether it is more important to you to live in a particular type of home (a single family home with a garage or a condo in a high rise) or in a particular neighborhood. If you cannot find or afford everything you want in your first home, you may need to make some compromises.

7. Choose a Neighborhood

Some neighborhoods hold onto their value more than others during a housing downturn. Work with a knowledgeable real estate agent to find a neighborhood that meets your needs – somewhere you will be happy as well as feel safe that home values are stable or rising.

8. Make a Reasonable Offer

If you love a house and don’t want to lose it, don’t make a low-ball offer. Some sellers are willing to negotiate and others are not. A trustworthy real estate agent can walk you through the process to make sure you are dealt with fairly.

9. Have a Home Inspection

Never buy a home without having it inspected. Not only are you looking for serious flaws in the home, but you can learn a lot about home maintenance and what to expect in terms of repairing or replacing systems and appliances as an owner.

10. Finalize the Details

After the contract has been signed, make sure to stay in constant touch with your real estate agent and your lender to be sure your financing is taken care of along with all insurance needs. A good real estate agent will have a checklist to make sure everything is accomplished in time for settlement.

Bottom Line

Buying your first home can be an exhilarating experience, provided you do some research, stay within a comfortable budget and work with reputable professionals who will guide you through the process.
.

.

Protect Your Home While On Vacation

Protect Your Home While on Vacation In the midst of the summer vacation season, it’s often easy to forget protecting your home while you’re away, since getting packed and making sure you have what you need when you reach your destination are usually the things most prevalent in your mind.

We’ve created a checklist for you to use to better protect your home while you’re off enjoying yourself. Follow these tips to have a more worry-free vacation this year.

1. If you don’t already have them, install good deadbolt locks on doors. It’s true that an intruder who really wants to get into your house probably can find a way, but most burglaries are crimes of opportunity committed by amateurs. This means the more difficult you make it for someone to enter your house, the more likely it is a burglar will not make the attempt—or at least that an alert neighbor will see or hear the burglar.

2. If a neighbor will not be picking up the mail and newspapers daily, stop the mail and cancel the newspaper. Never tell the newspaper carrier you will be gone. Cancel the paper rather than entering a “vacation stop” for extended (more than two weeks) absences.

3. Install motion detector lights on the outside of your home. Use automatic timers on inside lights and photoelectric switches on outside lights. A week or two before you leave, set your timers so you can establish a pattern while you are still home. There are even timers available that will vary the on/off times. Occasionally have a radio or TV turned on.

4. Don’t leave valuables where they can be easily seen from a window. You can improve window security by drilling a hole from front to back where the top and bottom windows overlap and installing a long nail in the hole. Most new windows installed in the past 10 years have additional security locks that won’t allow the window to go up more than a couple of inches.

5. Leave your drapes in the normal position. Have a neighbor close them at night and open them at daylight, or use sheers. Sheers help to obscure the view into the house without making it obvious, as drapes would, that no one is home.

6. Put at least two lights and a radio on automatic timers.

7. Leave the bathroom light on with the door ajar to add to the impression that someone may be home.

8. Close and lock your garage doors to prevent someone from stealing the contents of the garage. Consider putting a padlock in the track of overhead garage doors or insert a large stove bolt through one of the side track holes to prevent the door from being slid open..

9. Cover your garage windows to prevent anyone from seeing the contents of your garage and whether your car is at home.

10. Check your homeowner’s insurance policy. Does it provide theft coverage while you’re staying in hotels and motels? It should.

11. Don’t let your travel plans be widely known. Try to arrange for a house-sitter, but if you can’t, provide your immediate neighbors with a recipe card with the information shown on page 3 and ask a trusted neighbor to keep this information private. Don’t publish the fact that you’re on vacation on Facebook, Twitter, or any of the other social networking sites. This is just telling burglars you are away!

12. At work, request office staff to be cautious when answering your phone calls. Transfer business calls to another employee or have callers told that you will be out of the office until whatever date you are to return. No information should be given out about why you are not in the office.

13. Make arrangements for the care of your pets.

14. Remind your neighbors to call 911 if they see anything suspicious around your home. Keep a list of valuables with serial numbers, or photographs of unique items, in a safe place.

15. Keep trees and shrubs around windows and doors well-trimmed to avoid giving burglars protection from public view.

16. Video equipment, TVs, stereos, gun collections, etc. should be stored in basements, closets, on the second floor, or left with a friend or neighbor. Equipping a storage closet with a good deadbolt lock makes a safe storage area too.

17. Upon return, if there are signs of a burglary such as a broken window pane or forced door, call 911 immediately. Do not take the chance of confronting a burglar inside.

Enjoy your vacation this year, knowing you have done all you can to protect your home while you’re away.

Home and Commercial Inspections in the Columbia SC area is our specialty! Every year we help hundreds of clients save tens of thousands of dollars, by responsibly finding and exposing conditions that threaten property, value and safety. To learn how we may be able to serve you, please click and read, or call 803-261-5810.

Real Estate News - June 2011

In this Issue:*

Warning Signs To Watch For In a Home

6 Tips to Sell Your Home Faster

Housing Crisis: A Sign The Worst Is Over

 

(Your comments are welcome at the bottom of our newsletter)

Warning Signs To Look For In a Home

Warning Signs to Look For in a Home Buying a home is a very emotional process, but if you allow those emotions to get the best of you, you may fall prey to a number of common home buyer mistakes. Since buying a home has many far-reaching implications – ranging from from where you will live to how hard it will be to make ends meet – it’s important to keep your emotions in check and make the most rational decision possible.

To avoid grief later on, consider these tips and questions when deciding if a particular type of home is right for you.

Neighborhood

*Have neighbors complained about air or noise pollution from traffic and industry in the area?
*How close is the house to power lines or large electrical towers?
* When it rains, is there good drainage or does the street flood, threatening to do the same to your basement or garage?

Exterior

*Stand across the street. Does the land slope toward the house? Drainage should be away from the perimeter of the home.
*Do any of the materials show signs of rotting or a previous bug problem?
*Does the house have suitable storm windows? Do all the windows have screens? Do they open and close easily? Press your finger into the wood of the sills; if it’s soft, it’s rotten!
*Are all doors able to shut completely to avoid drafts/bugs?
*When was the roof last replaced? Are there odd bumps or dips? Are shingles missing?

Garage

*If the house has an attached garage, is there space or a well-sealed door between the garage and the living area?
*Is there adequate vehicle and storage space?

Interior

*Check the ceilings and walls for watermark stains or mold; this is an indication of water damage. Consider visiting the house on a rainy day to check for leaks.
*Does the basement or crawl space smell damp or moldy?
*Does the staircase seem sturdy, or is it squeaky and unsteady?
*Is the paint peeling or the molding cracked?

Flooring

*Wood flooring and natural stone should be sealed with non-toxic sealers.
*What’s underneath? Less expensive subflooring is prone to water damage.
*Inspect tiles and grout for cracks.
*Check for holes and crevices that could allow pests to get in.

Electrical

*Does the location of the home make it prone to power outages?
*Are the switches antiquated? If so, perhaps the wiring is too.
*Is the fuse box easy to understand?
*Are there enough outlets for your needs? Are they in preferable places throughout the house?
*Try to avoid situations where the bedroom backs up against the kitchen wall where the refrigerator or other large appliances are running.

Water

*Does the home have copper plumbing?
*Run the water in the kitchen, bathroom and laundry room to test water pressure, cleanliness of the water and proper drainage.
*Look for moisture damage, mold or leaking around and underneath the sink.
*Check the hot water system. Is it leaky or rusty? Is it big enough for your family?

General

*Does the house have central heating and air conditioning? How old are the systems? Are they functioning well?
*What are the average monthly costs for heating and cooling? Good insulation is key!
*Is there proper ventilation in the kitchen and bathroom?
*The house should be tested for lead, asbestos and radon.  A termite check is a good idea too.
*Is there adequate storage for all of your belongings?
*Bring out a tape measure to make sure the furniture you plan to bring with you will fit in the rooms. Measure spaces to make sure your appliances such as the refrigerator, washing machine, dishwasher and microwave will fit.

You probably have more questions of your own, but hopefully you will consider these to be a good start as you determine whether a particular house is the one you want to call home. Ask us if there is anything else you need to know about a particular house when you’re viewing it. As your agent, we tend to have a more unbiased and un-emotional view of properties than you might.

.

.T

6 Tips To Sell Your Home Faster

6 Tips to Sell Your Home Faster

In a down real estate market where supply outstrips demand, a person can generally sell a house faster by lowering the price. But there are other ways to enhance a home’s attractiveness besides lowering the asking price. If you’re looking to sell your home in this cool real estate market, here are a few tips on how to generate interest and get the best price possible.

Differentiate From the Neighbors

In order to attract attention and make your home more memorable, consider custom designs or additions, such as landscaping, high grade windows or a new roof. This can help improve the home’s aesthetics, while potentially adding value to the home.

Any improvements should be practical and use colors and designs that will appeal to the widest audience. In addition, they should compliment the home and its other amenities, such as building a deck or patio adjacent to an outdoor swimming pool.

However, while it can pay to spice up your home, don’t over-improve it. According to a 2006 article in Realtor Magazine, some renovations, such as adding a bathroom or a sun room, might not always pay. The data suggests that the nationwide average amount recouped for a bathroom addition is about 75%. For a sun room, it’s even less. If you’re going to invest in renovations, do your research and be sure to put your money into the things that are likely to get you the best return.

In addition, if you have added any custom features you think buyers will be interested in, make sure they are included in the home’s listing information. More than ever, in a down market you should take every small edge you can get.

Clean the Clutter

It is imperative to remove all clutter from the home before showing it to potential buyers because buyers need to be able to picture themselves in the space. This might include removing some furniture to make rooms look bigger, and putting away family photographs and personal items.

You may even want to hire a stager to help you make better use of the space. Staging costs can range from a couple hundred dollars for a basic consultation to several thousand dollars, particularly if you rent modern, neutral furniture for showing your home. Many people feel that stagers can make a home more salable, so hiring one deserves some consideration.

Improve Curb Appeal

Sellers often overlook the importance of their home’s curb appeal. The first thing a buyer sees is a home’s external appearance and the way it fits into the surrounding neighborhood. Try to make certain the exterior has a fresh coat of paint, and the bushes and lawn are well manicured. In real estate, appearances mean a lot. What better way to set your home apart than to make it attractive at first glance?

Get Your Home in “Move In” Condition

Aesthetics are important, but it’s also important that doors, appliances and electrical and plumbing fixtures be in compliance with current building codes and in working order. Again, the idea is to have the home in move in condition and to give potential buyers the impression that they will be able to move right in and start enjoying their new home, rather than spending time and money fixing it up.

Sweeten the Deal

Another way to make the home and deal more attractive to buyers is to offer things or terms that might sweeten the pot. For example, sellers that offer the buyer a couple of thousand dollars credit toward closing costs, or offer to pay closing costs entirely will in some cases receive more attention from house hunters looking at similar homes. In a down market, buyers are looking for a deal, so do your best to make them feel they’re getting one.

Another tip is to offer a transferable home warranty, which can cost $300 to $400 for a one-year policy and will cover appliances, such as air conditioners and refrigerators, that fail. Depending on the policy, other appliances and house gadgets may be covered as well. A potential buyer may feel more at ease knowing that he or she will be covered against such problems, which could make your home more attractive than a competing home.

Finally, it’s important to note that some buyers are motivated by the option to close in a short amount of time. If it is possible for you to close on the home within 30 to 60 days, this may set your deal apart and get you a contract.

Pricing It Right

Perhaps most important of all these tips is the importance of pricing the home appropriately. Consult a local real estate agent, read the newspapers and go to online real estate sites to see what comparable homes are going for in your area.

It’s not always imperative to be the lowest priced home on the block, particularly when aesthetic and other significant improvements have been made. However, it is important that your listing price is not out of line with other comparable homes in the market. Try to put yourself in the buyer’s shoes and then determine what a fair price might be. Have friends, neighbors and real estate professionals tour the home and weigh in as well.

In Summary

Do everything you can to get the home in excellent shape and be prepared to make some small concessions at closing. These tips, coupled with an attractive price, will increase the odds of getting your home sold.
.

.

Housing Crisis: A Sign The Worst Is Over

Housing Crisis: A Sign The Worst Is Over Falling mortgage delinquency rates seem to be indicating the housing crisis may be at the beginning of its end.

A quarterly release from the Mortgage Bankers Association revealed that mortgage payment problems eased during the first three months of 2011 for every category of default.

The rate of loans past due, unadjusted for seasonal factors, decreased 1.17 percentage points to 7.79% from 8.96% during the last quarter of 2010. It was down 1.59 points year-over-year.

The percentage of loans somewhere in foreclosure is down from last quarter’s record high.

The overall national decline comes despite continuing delays in processing foreclosures stemming from the “robo-signing” scandal in which banks were accused of mishandling legal paperwork. As a result, foreclosures take longer to work through the system, so they show up in delinquency rates quarter after quarter.

Meanwhile, the nation’s continued, albeit slow-motion, economic recovery is also providing some relief. There’s a close correlation between unemployment and mortgage payment problems. Not only are people with jobs more able to make their mortgage payments than unemployed borrowers, but hiring itself boosts consumer confidence and, ultimately, housing markets.

The light at the end of the foreclosure crisis tunnel may still be some distance off, but at least it’s visible again after years of doom and gloom.

Home and Commercial Inspections in the Columbia SC area is our specialty! Every year we help hundreds of clients save tens of thousands of dollars, by responsibly finding and exposing conditions that threaten property, value and safety. To learn how we may be able to serve you, please click and read, or call 803-261-5810.

Real Estate News - May 2011

In this Issue:*

6 Tips To Sell Your Home Faster

Home Energy Audits – Tips to Cut Costs

Restore Your Winter Damaged Yard

(Your comments are welcome at the bottom of our newsletter)

6 Tips To Sell Your Home Faster

6 Tips To Sell Your Home Faster In a declining real estate market where supply outstrips demand, a person can generally sell a house faster by lowering the price.

But there are other ways to enhance a home’s attractiveness besides lowering the asking price.

If you’re looking to sell your home in a cooling real estate market, here are some tips on how to generate interest and get the best price possible.

Differentiate From the Neighbors

In order to attract attention and to make your home more memorable, consider custom designs or additions, such as landscaping, high grade windows or a new roof. This can help improve the home’s aesthetics, while potentially adding value to the home. Any improvements should be practical and use colors and designs that will appeal to the widest audience. In addition, they should compliment the home and its other amenities, such as building a deck or patio adjacent to an outdoor swimming pool.

However, while it can pay to spruce up your home, don’t over-improve it. According to a 2006 article in Realtor Magazine, some renovations, such as adding a bathroom or a sun room, might not always pay. The data suggests that the nationwide average amount recouped for a bathroom addition is about 75%. For a sun room, it’s even less. If you’re going to invest in renovations, do your research and be sure to put your money into the things that are likely to get you the best return. In addition, if you have added any custom features you think buyers will be interested in, make sure they are included in the home’s listing information. More than ever, in a down market you should take every small edge you can get.

Clean the Clutter

It is imperative to remove all clutter from the home before showing it to potential buyers because buyers need to be able to picture themselves in the space. This might include removing some furniture to make rooms look bigger, and putting away family photographs and personal items. You may even want to hire a stager to help you make better use of the space. Staging costs can range from a couple hundred dollars for a basic consultation to several thousand dollars, particularly if you rent modern, neutral furniture for showing your home. Many people feel that stagers can make a home more salable, so hiring one deserves some consideration.

Improve Curb Appeal

Sellers often overlook the importance of their home’s curb appeal. The first thing a buyer sees is a home’s external appearance and the way it fits into the surrounding neighborhood. Try to make certain the exterior has a fresh coat of paint, and the bushes and lawn are well manicured. In real estate, appearances mean a lot. What better way to set your home apart than to make it attractive at first glance?

Sweeten the Deal

Another way to make the home and deal more attractive to buyers is to offer things or terms that might sweeten the pot. For example, sellers who offer the buyer a couple of thousand dollars credit toward closing costs, or offer to pay closing costs entirely, will in some cases receive more attention from house hunters looking at similar homes. In a down market, buyers are looking for a deal, so do your best to make them feel they’re getting one.

Another tip is to offer a transferable home warranty, which can cost $300 to $400 for a one-year policy and will cover appliances, such as air conditioners and refrigerators, which fail. Depending on the policy, other appliances and house gadgets may be covered as well. A potential buyer may feel more at ease knowing he or she will be covered against such problems, which could make your home more attractive than a competing home.

Finally, it’s important to note that some buyers are motivated by the option to close in a short amount of time. If it is possible for you to close on the home within 30 to 60 days, this may set your deal apart and get you a contract.

Get Your Home in "Move In" Condition

Aesthetics are important, but it’s also important that doors, appliances and electrical and plumbing fixtures be in compliance with current building codes and in working order. Again, the idea is to have the home in move-in condition and to give potential buyers the impression they will be able to move right in and start enjoying their new home, rather than spending time and money fixing it up.

Price It Right

Regardless of how well you renovate and stage your home, it is still important to price the home appropriately. Consult a local real estate agent, read the newspapers and go to online real estate sites to see what comparable homes are going for in your area.

It’s not always imperative to be the lowest priced home on the block, particularly when aesthetic and other significant improvements have been made. However, it is important that the listing price is not out of line with other comparable homes in the market. Try to put yourself in the buyer’s shoes and then determine what a fair price might be. Have friends, neighbors and real estate professionals tour the home and weigh in as well.

The Bottom Line

Selling a home in a down market requires a little extra work. Do everything you can to get the home in excellent shape and be prepared to make some small concessions at closing. These tips, coupled with an attractive price, will increase the odds of getting your home sold.

.

.T

Home Energy Audits – Tips to Cut Costs

Home Energy Audits - Tips To Cut Costs

For many homeowners, electricity use is highest during the summer — that means steeper energy bills are just around the corner.

But a lot of the energy you’re paying for is squandered through air leaks around doors and windows, or through cable boxes and appliances that sap energy when no one is around. Before you shell out the cash for a professional home-energy audit, however, here are some do-it-yourself ways to measure — and then curb — your energy use.

Measure it

The average household will spend about $2,140 on residential energy consumption in 2011, according to the Washington-based Alliance to Save Energy. What’s running up that bill? A home power monitor is one way to find out.

One such power monitor is "The Energy Detective", or TED for about $200. It connects to your circuit-breaker box and to your Internet router. The monitor records and calculates the cost of your electricity use and sends that information (current and projected consumption, plus cost, among other things) to a small box with an LCD display that you keep somewhere convenient in your house.

The monitor also sends the information to your PC or laptop, where TED’s proprietary software lets you assess your energy-use history and projected use in greater detail. In addition, the monitor uploads the data to Google PowerMeter, a free online home-energy monitoring tool.

While the power monitor won’t tell you how much energy each separate device is consuming, the real-time data makes it easy to figure out. When you hear the air conditioner click on, power consumption goes up by seven or eight times.

A cheaper alternative that does give you information on specific devices’ energy consumption is a kilowatt meter, which measures the energy use of any device plugged into it. You plug the meter into a wall socket and then plug the device into the meter.

The kilowatt meter can’t measure an overhead light or other devices hardwired into your home, but it’s still a useful tool. Most kilowatt meters sell for about $30. It might surprise you, for instance, just how many kilowatts your cable box uses — it can add up to $30 to $50 a year, even when your TV is turned off!

Curb it — and save

Whether or not you decide to shell out for energy measurement devices, you can save money on your utility bill with some simple steps to reduce your home’s energy use.

A smart strip, for instance, eliminates vampire energy — the energy devices consume when they’re switched off. Smart strips, which retail for about $30, plug into the wall and also work as surge protectors. The strip’s sensor cuts the power to devices plugged into it when they’re switched off.

Next, check doors and windows for gaps around the frames. Insulation is important any time of year, but in the summer you don’t want to waste all that energy on AC that’s just going to escape through your door.

Check windows and doors every season. Many of the air gaps you find can be sealed with caulk or spray foam.

Black and Decker sells a thermal leak detector that shines a red light on walls; the color of the light will change to blue to indicate a hot or cold spot. But the $50 device has its limits: It can only cover a few inches of wall at a time so you may not always get a reading of exactly where the air is coming from.

Covering pipes and water heaters with special wrapping is another cheap way to save on energy this summer. Water heaters usually are in basements that remain cool even during summer, so they must consume energy to maintain their high temperatures. Putting a thermal barrier around a heater helps it work less, and that can save you money.

It is recommended that you buy a programmable thermostat to better regulate your use of your air conditioner in summer, and the heating system in winter.

You can save around 10% a year on energy bills simply by lowering your thermostat by 10% to 15% for a minimum of eight hours.

Little things help

Some other low-cost or free energy-saving moves:

*Put thicker curtains around windows in summer (including in an unfinished attic) to keep out the sun.

*Regularly dust off the coils under your refrigerator so it doesn’t have to work as hard to stay cool.

*Install low-flow faucets (with an aerator so the water doesn’t just trickle out).

*Replace incandescent light bulbs with more-efficient fluorescent or LED ones.

*Consider checking out Microsoft-Hohm.com. The website details the average energy use of homes nationwide.

These energy-saving steps don’t require technical know-how. It takes a little time and effort. But with all these products available, regular folks can do them just fine.
.

.

Restore Your Winter Damaged Yard

Restore Your Winter Damaged Yard Old Man Winter has moved on, but millions of homeowners are left staring at broken tree branches, browned shrubs, and sick-looking lawns.

That damage doesn’t necessarily mean you’ll have to rip out and replace for big bucks.

Here are some of the most cost-effective ways to get your yard back in shape — an especially pressing concern if you plan to put your house on the market this summer.

Fixes for four common problems follow.

Brown Patches

The cause: Rock salt used to melt ice from roads, driveways, and pathways has gotten onto nearby grass or the bottom of shrubs and trees, often sprayed there by passing cars.

The fix: Even if you’ve already had plenty of rain, give affected areas several good soakings with a hose: The soil needs extra water to dilute the salt. If the brown parts haven’t greened up by summer, cut them off.

Typically the entire plant won’t have to go unless it is completely brown.

The plant is done for? Replace it with a salt-tolerant species; ask a local nursery for recommendations. If grass doesn’t survive, scrape away the dead patches and reseed.

The cost: Nothing unless you replace the plant. Young specimens don’t cost much. A five-pound bag of grass seed — enough for spot coverage — runs about $15.

Broken Branches

The cause: The weight of snow or ice — or high winds — cracked them.

The fix: Small limbs hanging from ornamental trees or shrubs such as lilacs may heal if you wrap each limb loosely in burlap so that it’s touching the spot from which it tore. You’ll have to leave the wrapping in place until fall.

Otherwise the branches must go. If they’re high enough and thick enough that it will take a ladder and chain saw to remove them, for safety’s sake call a certified arborist. Prune lower branches yourself. For trees, cut back to the next healthy limb; for shrubs, cut back to just above a live bud.

The cost: About $100 to $200 for a pro to remove a branch or two on an average-size tree.

Missing Bark

The cause: Unable to reach their usual food sources because of deep snow, pests such as rabbits, mice, or voles ate the bark toward the bottom of your shrub or tree. That damage hurts the plant’s ability to absorb nutrients.

The fix: Inspect the base of the tree or bush. Are the munch marks limited to one or two places? The plant will likely survive. But when the damage nearly circles the trunk, the victim may not make it. If you’re not sure, take a photo of your shrub to your local nursery and ask for an opinion. Ask an arborist whether your tree needs to come down; he can usually do the job.

The cost: $65 to $75 for an arborist’s assessment; $500 to $1,500 to remove each tree.

Unhealthy Grass

The cause: If the grass isn’t growing, heavy snow buildup could have compacted the soil. And if patches look grayish or pinkish, you could have what’s known as snow (or over-moisturized) mold.

The fix: Get oxygen into a dead-looking lawn to generate growth. Do it yourself by using a so-called core aerator machine, which you can rent from your local home center. The fix for snow mold is easy: Rake the grass lightly and reseed.

The cost: About $60 to rent an aerator for four hours.

These tips will have you looking at the fresh new growth of spring and summer in no time.

Home and Commercial Inspections in the Columbia SC area is our specialty! Every year we help hundreds of clients save tens of thousands of dollars, by responsibly finding and exposing conditions that threaten property, value and safety. To learn how we may be able to serve you, please click and read, or call 803-261-5810.

Real Estate News - April 2011

In this Issue:*  

6 Tips For Buying a Home in a Down Market
The Real Value of Home Maintenance
Buying a Home? Don’t Be Too Picky

 

(Please leave us a comment at the bottom of the newsletter.)

6 Tips For Buying a Home In a Down Market

6 Tips for Buying a Home in a Down Market Prospective buyers have an edge in a down market, but this doesn’t mean they are guaranteed to make money on the properties they buy. When real estate sales are slow and there is a glut of homes for sale, buyers have an opportunity to pick up a house at unheard of prices.

The operative word here is “opportunity”. There are times when you should pounce and times when you should show restraint and avoid an impulse buy. Knowing the difference could save you thousands of dollars.

Tip No.1: Do Your Homework
Buyers generally have the advantage in a down market, but this doesn’t mean you should walk into a transaction blindly. Prospective buyers should search the Internet for listings, inquire with a real estate agent and check the local newspapers to gain insight on a particular area. Many national and local real estate agents make their listings available on the Internet. The objective of this research is to get to know the price range for the area. You want to get a sense of what a low price would be for your desired area.

Tip No.2: Get Your Ducks in a Row
To make sure you’re able to pounce on a deal at a moment’s notice, it makes sense to get pre-approved for a mortgage and to have an attorney on retainer to handle the closing paperwork, unless your agent or broker is qualified to handle everything for you. It also makes sense to line up a home inspector and an insurance agent. These professionals can provide valuable information to the buyer about what parts of the home might need repairs and what it will cost to insure.

Tip No.3: Watch For Motivated Sellers
Motivated sellers provide additional bargaining power for potential buyers. If the home has been on the market for several months, has undergone several price reductions, and/or is vacant, this suggests the seller is looking to sell as soon as possible. In situations like this, it makes sense to ask whether the seller will throw in any furniture or fixtures you like. You can also ask the seller to cover closing costs, whether in full or in part. Of course, the listing price is always negotiable as well.

Tip No.4: Make Sure You Have Clear Title
During trying economic times, sellers may be looking to unload their homes because they are in over their heads. In some cases, the property may be encumbered by a lien from a contractor, service provider, bank or other lending institution. For this reason, it always makes sense to use a title insurance company and have a lawyer perform a title search to make sure there are no liens and the property can be transferred. The last thing you want is to have to absorb any of those liabilities.

Although lenders typically require title insurance and a title search if a mortgage is going to be taken out on the home, cash buyers should use these services as well.

Tip No.5: Avoid a Bidding War
When you are shopping in a down market the last thing you want to do is let your emotions get the best of you. A bidding war is almost always an unnecessary waste of time and, in the end, a waste of money. Down markets are all about getting a really good deal, so to fritter away that possibility on an ego-driven desire to win is foolish.

The best advice for avoiding a bidding war is to set a price limit and stick to it. Remember, there are plenty of homes out there and other deals to be had.

Tip No.6: Don’t Be Afraid To Walk Away
Real estate prices usually drop as inventory increases. In a down market, there are always many choices available. If you are not getting the deal you and your real estate agent feel you deserve, do not be afraid to walk away, and look at the next home on your list. Remember, in a down market, it is you – the buyer – that has the power. Some sellers refuse to understand that the market is down, and will not accept any offers less than what they feel their home is worth.

Stick to the price you had initially decided the home was worth; if you cannot make the deal, try again next time.

.

.T

The Real Value of Home Maintenance

The Value of Home Maintenance

If you think home maintenance is an unavoidable series of weekend-eating chores, remember the age-old advice of Ben Franklin: “An ounce of prevention is worth a pound of cure.” The fact is, proactive maintenance is essential to preserving the value of your home. Without it, your home could lose 10% of its value. Regular, routine maintenance enhances curb appeal, ensures safety, and prevents neglected upkeep from turning into costly major repairs.

The little things are what tend to trip up people up. Some cracked caulk around the windows, or perhaps a furnace filter that hasn’t been changed in a long time. These may seem like little things, but behind that caulk, water could leak into your home causing mold, mildew and rot. Same for the heating unit if the air filter isn’t changed regularly. Before you know it, you’re looking at a $5,000 (or more) repair that could have been prevented with a $5 tube of caulk, or a $4 air filter, and a little of your time.

Maintenance affects property value
Outright damage to your house is just one of the consequences of neglected maintenance. Without regular upkeep, overall property values are affected.

If a house is in worn condition and shows a lack of preventative maintenance, the property could easily lose 10% of its appraised value. That could translate into a $15,000 or $20,000 adjustment.

In addition, a house with chipped, fading paint, sagging gutters, and worn carpeting faces an uphill battle when it comes time to sell. Not only is it at a disadvantage in comparison with other similar homes that might be for sale in the neighborhood, but a shaggy appearance is bound to turn off prospective buyers and depress the selling price.

It’s simple marketing principles. First impressions mean a lot to price support.

Estimating the value of maintenance
Although professional appraisers don’t assign a positive value to home maintenance, there are indications that maintenance is not just about preventing little problems from becoming larger. A study by researchers at the University of Connecticut and Syracuse University suggests that maintenance actually increases the value of a house by about 1% each year, meaning that getting off the couch and heading outside with a caulking gun is more than simply a chore—it, actually makes money.

It’s like going to the gym. You have to put in the effort to see the results. In that respect, people and houses are somewhat similar—the older (they are), the more work is needed.

The 1% gain in valuation usually is offset by the ongoing cost of maintenance. Simply put, maintenance costs money, so it’s probably best to say that the net effect of regular maintenance is to slow the rate of depreciation.

How much does maintenance cost?
How much money is required for annual maintenance varies. Some years, routine tasks, such as cleaning gutters and changing furnace filters, are all that’s needed, and your total expenditures may be a few hundred dollars or less. Other years may include major replacements, such as a new roof, at a cost of $10,000 or more.

Over time, annual maintenance costs average more than $3,300, according to data from the U.S. Census. Various lending institutions, such as Directors Credit Union and LendingTree.com, agree, placing maintenance costs at 1% to 3% of initial house price. That means owners of a $200,000 house should plan to budget $2,000 to $6,000 per year for ongoing upkeep and replacements.

Play offense, not defense.
Proactive maintenance is key to preventing small problems from becoming big issues. Take the initiative with regular inspections. Create and faithfully follow a maintenance schedule. If you’re unsure of what needs to be done, a $200 to $300 visit from a professional home inspector can be invaluable in pointing out quick fixes and potential problems.

Keep track.
Having a notebook of all your maintenance and upgrades, along with receipts, is a powerful tool when it comes to sell your home. It gets rid of any doubts for the buyer, and it says you are a meticulous, caring homeowner. A maintenance record also proves repairs and replacements for systems, such as wiring and plumbing, which might not be readily apparent.

Now, get off the sofa this weekend and do something to maintain the value of your home.

.

.

Buying a Home? Don’t Be Too Picky

Buying a Home? Don't Be Too Picky Are today’s first-time home buyers passing up great deals because they insist on flawless “move-in ready” houses requiring little or no changes — even at the starter-home price levels at which shoppers traditionally have been willing to factor fix-ups and renovations into their offers?

Or are they simply reflecting market realities? They see record inventories of houses sitting unsold, and they may not have the money, time or inclination to do fix-ups after making the purchase.

Some shoppers are so picky they walk out of well-priced houses solely because of relatively minor imperfections such as:

…..The kitchen appliances are by different manufacturers

…..There are no granite countertops — even though the house is a modest-priced starter home.

…..Carpet needs to be replaced, or the color doesn’t match their furniture.

…..Wall colors are “wrong,” such as white, when for today’s tastes, they should be a warmer hue.

Some would-be-homebuyers are missing out on some excellent, older lived-in houses — simply because they can’t overlook flaws that would not have bothered shoppers during the previous two decades.

With required down payments rising to 20 percent in some areas, first-time buyers today have to put a huge effort into coming up with their down payment, and they want to make sure that equity investment goes into the house that will need the fewest and least-costly upgrades.

Home buyers today tend to be hipper and more sophisticated about home design, furnishings, floor materials, countertops and appliances because they are exposed to far more information on cable TV than earlier generations. But constant exposure to cable design shows may also be fostering a lack of realism on the part of some shoppers.

Some of these shows have given some buyers the impression that all homes should have granite counters, stainless steel appliances, etc. There are a few shoppers who want all the bells and whistles of that $500,000 house for $200,000, and no amount of talking to them on the realities can change their minds.

The fact is, you just can’t have it all. You can’t have the big yard, the top-line updates and all that in a starter home. You’ve got to compromise somewhere or else you’ll never buy anything.

Home and Commercial Inspections in the Columbia SC area is our specialty! Every year we help hundreds of clients save tens of thousands of dollars, by responsibly finding and exposing conditions that threaten property, value and safety. To learn how we may be able to serve you, please click and read, or call 803-261-5810.

Real Estate News - March 2011

In this Issue:*

9 Ways to Increase Your Gas Mileage
Pending Existing Home Sales Fell In January
IRS Easing Rules on Liens for Late Taxpayers

(Please leave us a comment at the bottom of the newsletter.)

9 Ways to Increase Your Gas Mileage

9 Ways to Increase Your Gas Mileage With gasoline prices rising everywhere on a seemingly daily basis, we all need to work at finding ways to not only save money at the pump, but also reducing our nation’s dependence on oil and oil imports.

Reducing the amount of driving we do — by carpooling, using public transportation and combining trips — has the greatest effect on how much gas each person uses. But there other things we can all do to improve fuel economy.

Go easy on the pedals
Speeding, braking and rapid acceleration waste gas. Depending on the type of vehicle, poor driving habits can negatively affect fuel economy between 5 percent and 33 percent. Based on the current national average of $3.12 per gallon (for regular gasoline), driving sensibly, and not like a race car driver, can lead to an equivalent gas savings of between 16 cents and $1.03 per gallon.

Slow down
Gas mileage decreases above 60 miles per hour. According to fueleconomy.gov, for every five miles per hour that exceeds 60 mph, drivers pay an equivalent of about 24 cents more for each gallon of gas. While each vehicle has its own optimal speed for fuel efficiency, speeding can result in 7 percent to 23 percent reduced fuel economy. Driving at slower speeds can save 21 to 71 cents per gallon.

Leave extras at home
An additional 100 pounds in your car can reduce gas mileage by up to 2 percent. The reduction is relative to the vehicle’s weight: Smaller vehicles are more affected by increased weight than larger ones. For every 100 pounds in extra weight, plan on spending up to 6 cents more per gallon. So clean out your trunk of all that extra stuff you’re just hauling around with you everywhere you go.

Use cruise control (when appropriate)
According to Edmunds.com, using cruise control under appropriate conditions (avoiding use during especially hilly terrain) can improve fuel economy by up to 14 percent. That’s a savings of about 43 cents per gallon.

Turn off the car
Idling gets zero miles per gallon and collectively consumes several billion gallons of fuel per year, according to the U.S. Department of Energy. The California Energy Commission advises that vehicles should be turned off if the expected wait will be longer than 10 seconds, since an idling vehicle can burn as much as one gallon of gas each hour. Turning the car off can save about 5 cents per minute.

Check tire pressure
A little bit of vehicle maintenance can go a long way in improving gas mileage. According to the U.S. Department of Energy, 1.25 billion gallons of gasoline — approximately 1 percent of total consumption — are wasted each year on under-inflated tires. Tires can lose about 2 pounds per square inch per month. Each tire that is under-inflated by 10 psi reduces fuel economy by about 3.3 percent. Four tires that are under-inflated by 10 psi, then, would reduce a vehicle’s fuel economy by a substantial 10 percent at an added cost of 31 cents per gallon.

Follow the guidelines in your vehicle’s owner’s manual (these recommendations also appear on a sticker inside the driver’s side door jamb) — and not what is stamped onto the tire itself.

Replace spark plugs
The National Institute for Automotive Service Excellence indicates that bad spark plugs can decrease fuel economy by up to 30 percent, and can cost drivers up to about 94 cents per gallon at today’s prices. If a car’s gas mileage suddenly drops, there’s a good chance it’s because of misfiring spark plugs.

Check alignment
Misaligned tires drag instead of rolling freely. Improper alignment can reduce fuel efficiency by as much as 10 percent — about 31 cents per gallon. In addition, the tires can wear out more quickly. Tires that are out of balance (symptom: vibration in the steering wheel) can cause uneven tire wear, which can result in lower gas mileage. Tires should be balanced and rotated according to the vehicle’s owner’s manual to improve tire performance and fuel economy.

Fill your tank early in the morning or late at night
Fuel is dispensed by volume. If you fill your tank when it is coolest outside — early in the morning or late at night, and avoid the heat of the day — the fuel will be more dense. As a result, you will get more gas for the same amount of money.

Reducing the amount of driving we do, whether it’s by carpooling or foregoing an unnecessary trip, is perhaps the most effective way to decrease the amount of gas each person uses and make fill-ups at the gas station last longer. Proactive steps can be taken to improve fuel efficiency by paying attention to and changing gas-guzzling driving habits, and following a vehicle’s maintenance schedule. Improved gas mileage is good for you, good for your car and good for the environment.

Do you think rising oil (gasoline) prices could derail the U.S. economic recovery? Share your thoughts and views by clicking the comment link below.

.

.

Pending Existing Home Sales Fell in January

Pending Existing Home Sales Fell in January

The number of Americans signing contracts to buy previously owned homes fell in January, a sign the industry that triggered the recession was struggling at the start of 2011.

The index of pending home resales dropped 2.8 percent after a revised 3.2 percent decrease the prior month that was initially reported as a gain, figures from the National Association of Realtors showed recently. The median estimate in a Bloomberg News survey of economists called for a 2.3 percent decrease.

Foreclosures that are driving down prices and unemployment at 9 percent signal the housing market may not make much headway this year. Interest rates that are rising pose another challenge to real estate, which may lag behind the rest of the economy this year.

Pending home sales were projected to fall after an originally reported gain of 2 percent in December, according to the median of 39 forecasts in the Bloomberg survey. Estimates ranged from a drop of 6 percent to an increase of 1.5 percent.

From January 2010, pending home sales were down 4.4 percent.

Housing demand see-sawed last year, reflecting a boost from a national home buyer tax incentive of as much as $8,000 that gave way to a plunge in sales by mid-2010 as the credit ended.

Pending home sales are considered a leading indicator because they track contract signings. Purchases of existing homes are tabulated when a contract closes, typically a month or two later.

Sales of previously owned homes, which now make up more than 90 percent of the market, unexpectedly climbed in January to the highest level in eight months, led by rising demand for distressed properties. Sales increased 2.7 percent to a 5.36 million annual rate, according to figures from the National Association of Realtors.

Distressed sales accounted for 37 percent of the total, the highest proportion in 12 months, and all-cash sales amounted for 32 percent, the highest since the group started tracking that category in 2008.

.

.

IRS Easing Rules on Liens for Late Taxpayers

IRS Easing Rules on Liens for Late Taxpayers The Internal Revenue Service says it’s trying to help people who are struggling to pay delinquent tax bills, so it’s reducing the number of property liens and easing rules for small businesses to enter into installment agreements.

As the economy has soured, the agency has filed an increasing number of liens on property owned by delinquent taxpayers. The IRS filed nearly 1.1 million liens in the budget year that ended in September, compared with 426,000 in 2001.

The steps announced recently will double the amount of back taxes a person can owe before facing a possible lien. Previously, taxpayers who owed at least $5,000 and ignored numerous IRS notices would get an automatic lien placed on their property. Under the new policy, the threshold is increased to $10,000.

The change will make it easier for people to have liens withdrawn once tax bills are paid or they start paying under certain installment plans. More taxpayers can settle their tax debt for less than they owe, if they meet certain income and debt requirements.

Small businesses with larger delinquent tax bills will be eligible for 24-month payment plans. Previously, the tax bill had to be less than $10,000; now it’s up to $25,000.

The agency believes the changes “will help people trying to get right with their taxes and we think it strikes the right balance to protect the interests of the government,” said Doug Shulman, the IRS commissioner.

The changes, however, don’t go far enough, said Nina E. Olson, the national taxpayer advocate, an independent watchdog within the IRS. The agency will still file liens automatically, without analyzing whether a lien is likely to generate any tax revenue, she said.

“The IRS often files liens against taxpayers who own insignificant or no property interests to which the liens can attach. As a result, the lien filing simply damages the taxpayer’s financial viability and impairs future tax compliance without any corresponding revenue benefit,” Olson said in a statement.

The IRS expects to process more than 140 million tax returns this year, and the vast majority will qualify for tax refunds. But with the economy still weak, and the national unemployment rate at 9 percent, many taxpayers who owe money will be unable to make timely payments.

Liens are notices filed in land records to ensure the government can collect back taxes when property is sold. They also alert potential creditors and employers that property owners owe back taxes.

They can remain on credit reports for years — even once tax bills are paid and liens removed — hurting the ability of taxpayers to get loans or even a job, Olson said.

Do you think this easing of liens for late taxpayers will help or hurt? Please post your comments or thoughts on the matter by clicking the “comment” link below.

Home and Commercial Inspections in the Columbia SC area is our specialty! Every year we help hundreds of clients save tens of thousands of dollars, by responsibly finding and exposing conditions that threaten property, value and safety. To learn how we may be able to serve you, please click and read, or call 803-261-5810.