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Pleco Fish Eat Algae in Abandoned Swimming Pools

Tuesday, September 8, 2009 posted by Tommi Crow

The large number of foreclosed homes have become a blight on the residential landscape.   But, swimming pools in abandoned, foreclosed homes, with no electricity, pose special problems.   Swimming pools become stagnate and unsantitary due to a lack of chemicals, then quickly grow thick with algae that is unsightly, and expensive to get rid of.

Enter the pleco algae eating fish, which are commonly found and abundant in fresh water lakes.   Only 15 pleco fish, placed in an abandoned pool, quickly eat away the algae and keep it away.

The environmentally smart solution leaves pools more sanitary, makes the homes more attractive to prospective home buyer’s and saves thousands of dollars in upkeep.   After the new owner moves in, they can return the fish to the lake or leave them in the pool for backyard fishing fun.

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Bed Bugs are New Housing Scare

Tuesday, September 1, 2009 posted by Tommi Crow

I’m sure we’ve all heard our parents warn, “and, don’t let the bed bugs bite”, as we toddled off to bed…but most of us have never considered that bed bugs were real pests, because most of us have never seen a bed bug.  

As creepy as it is, Bed Bugs are real and they are back with a vengence.  The use of DDT eradicated bed bugs more than 50 years ago, which explains why most of us have never seen one.   Today, exterminators use roach traps, instead of insecticide sprays, which do not wipe out the bed bugs along with the roaches.  So, the tiny bed bug is making a resurgence in a big way.

How Can You Find Bed Bugs before You’re Eaten?  READ MORE…..

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Home Insulating Paint Additive

Monday, August 17, 2009 posted by Tommi Crow

Green News Alert:  A new paint additive, Insuladd, developed by the government, cuts energy costs and reduces mold and mildew.

Insuladd insulating paint additive increases the “Mean Radiant Temperature” of any home or office and provides energy savings by reflecting and dissipating heat.   Reports show an average decrease in utility bills of 20 percent (and, as high as 40 percent for in some homes) after a home or building has been painted with the additive.  

Product Features:

  • Increase the R value by making paint insulating.
  • It is safe and non-toxic
  • It can be applied to roofs, walls and ceilings.  Interior or exterior.
  • It works in hot or cold climates.
  • Reduced heating and cooling costs, while increasing comfort.
  • It prevents mold and mildew by blocking moisture and condensation.
  • It can be added to any house paint.
  • Can be used for all residential or commercial paint applications

Tips for Using the Product:

  • Add the mixture to your paint, then stir throughly before applying.
  • If you want a satin or gloss finish, add Insuladd to the primer coat and first coat.  Apply a finish coat without the additive.
  • If you want a high gloss coat on trim, don’t use the additive.
  • Insuladd will leave a very slight texture to the walls that can be felt, but usually isn’t visable.  It may hide cosmetic defects such as gouges, dents and surface imperfections if 2 coats are applied.
  • Insuladd is ideal for light colored paints and you will notice no change in the color of your paint.
  • If you are using a dark paint, Insuladd may lighten the color by up to one shade.   If this is a problem, tint the paint one shade darker at purchase.
  • Don’t pour the mixture into a one gallon paint can to avoid overflow.  The additive will overfill a full gallon of paint.  Pour the paint into a 5 gallon can, add additive and mix.  Left over paint with additive can be stored in the original container for touch ups.

Paint, insulate, save money on energy bills, increase the comfort of your living space, prevent mold and mildew.  What’s not to love.

Thank you for visiting InfoTube.net.  We have been helping home sellers since 1988 and we can help you too.  Check out all the freebies on our site.

Protect Your Vacant Home and Yourself.

Tuesday, July 28, 2009 posted by Tommi Crow

The housing recession/depression and the long number of days on the market, means that many people need to move to a new location, before they sell their home.  If you are facing this situation, please be aware of some special problems and concerns regarding vacant property before you decide to move on and leave your home behind.

  1. Insurance.  Insurance companies place a higher risk, therefore cost, to insure vacant property.  As many owner’s have also discovered, vacant homes are targets for thiefs, vagrants and vandals.  In addition, vacant properties are more likely to suffer damage from fire and water.  Add in the higher liability of “No one lives there…let’s play” and it is no wonder that the cost to insure a vacant home is substantially more expensive.   Talk to your insurance agent, before you move out, to determine the best protection for the money.
  2. Protect Your Property.  It’s a good idea to install a monitered security system in a vacant property.  If the service moniters fire, smoke and theft, it can lower your insurance premiums.  Also, don’t forget to install new batteries in all smoke detectors.   You should also have a friend or neighbor check the property on a regular basis. 
  3. Create the Illusion of Occupancy.  Ask a neighbor to park their car in your driveway.  Stop mail and newspaper service, or make sure someone collects it.  Install timers on lights.  Leave some window treatments and furniture in the home.  Keep the lawn, landscape and home exterior maintained at all times.   
  4. Rent it Out.  Renting the home will insure it is occupied and the rent will offset the costs of carrying the property.   The insurance will need to change to a rental policy, but rental insurance is much cheaper than the premium for vacant homes.
  5. Let a Friend Live in the Home.  If you don’t want to tie the house up by renting it, consider letting a trusted friend or family member live in the home until it sells.  If you don’t know anyone, hire a housesitter.  Either way, the home remains occupied and vacancy problems are averted.
  6. Don’t Sneak.   If your home is vacant for longer than your insurance policy allows, you could save a ton of money by sneaking.  But, don’t.  First, insurance fraud is a serious matter.  Secondly, if your vacant home is damaged or totaled, the insurer can and will challenge your claim.   Don’t commit fraud.  The little bit of money you may save is just not worth it.

Thank you for visiting InfoTube.net, a Free Homes for Sale and Rent website.  The market is certainly showing some positive signs.  We have better than expected sales across the entire country, price declines have lessened, rates are low and banks are lending.  If you need to buy or sell, InfoTube.net is the place to be.

Story from Philadelphia Inquirer:
LEHIGH ACRES, Fla. – Mike Manikchand points toward his neighbors – a half-dozen empty, foreclosed-upon homes, sitting on weed-strewn yards – and he wonders: What will happen if a hurricane slams into southwest Florida this year?His simple answer: “A lot of these places will get destroyed.”

Unoccupied, these homes would be defenseless in a storm; there will be no one to put up shutters, batten down garage doors, and otherwise secure homes. But that’s not all. Nearby homes and their residents would also be at risk from wind-propelled debris.

Lehigh Acres and other communities at the epicenter of the nation’s housing crisis are coming to realize that this year’s hurricane season, which began this month, represents yet another pitfall. Hurricanes could make hazards of thousands of foreclosed-upon houses, and their diminished value could decrease even more.

“Here’s your choice,” said Julie Rochman, president of the Tampa-based Institute for Business and Home Safety. “Spend a little bit of time and money to secure the properties to withstand wind and water, or not do the right thing and have the homes become damaged and are valued less.”

The Associated Press Economic Stress Index – a month-by-month analysis of foreclosure, bankruptcy and unemployment rates in more than 3,000 U.S. counties – confirms that some of the areas most likely to be struck by a hurricane are suffering the most in this recession.

In March, there were 281,691 homes in foreclosure in Florida and coastal counties in Alabama, Georgia, Louisiana, Mississippi, North Carolina, South Carolina, Texas, and Virginia.

Lee County, where Manikchand lives, is among the hardest-hit counties in the country. A 22-year-old pharmacy student, he took advantage of a dismal housing market and bought a foreclosed duplex for $36,000.

In coming months, he and millions of others along the Atlantic and Gulf coasts will dutifully track tropical weather forecasts and stockpile batteries, flashlights, and tins of tuna, hoping that hurricanes blow harmlessly out to sea.

But who will secure all the foreclosed homes if a storm does approach? No one really knows.

In some cases, a property-management company hired by the bank could do the work. Or it could be a real estate agent, a homeowners’ association, or even resourceful neighbors who clear debris from yards and board windows.

Yet no state laws mandate who prepares buildings before a hurricane; even officials from the Florida Division of Emergency Management say that securing foreclosures isn’t a concern.

“It’s not an aspect that we really deal with,” said John Cherry, the agency’s external-affairs director. “Our No. 1 concern is life safety.”

Quick evacuation, not securing vacant homes, will be the priority if a major storm looms, others say. But shutterless homes can be a major safety hazard in a hurricane. And a region full of destroyed or heavily damaged homes would depress real estate values even further.

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Rent A Goat and Forget the Mower.

Thursday, May 14, 2009 posted by Tommi Crow

Being raised in rural Missouri, the concept of using goats (goating out a property) to clear and maintain land is not a new one.  But, for many people, the idea of using goats, instead of noisy mowers, to help with the chores is an option they never considered.

Goats, What’s Not to Love?  In addition to being very cute and smart, goats are great at clearing brush and weeds without using gasoline, polluting the air or disturbing the peace.  Mowing by goat means less work for busy people, it is chemical free and the little darlings automatically fertilize as they work. 

Even Silicon Valley and other metro area’s are looking to the environmentally, friendly goat as a non-tech means of maintaining their grounds and property.  Google “hired” 200 goats to maintain the grounds at its Mt. View, CA headquarters.  Yahoo, located just a stones throw away, must have loved the idea because they also rented goats to cut their grass.  Even cities are joining in the goat movement.  Mesa, AZ has used goats to maintain the land around their water reclaimation plant for quite some time.

All “Kidding” Aside….  If Rent-A-Goat appeals to your lazy and green side, renting one is as easy as locating your nearest goat farm.  Or, you can visit GoatFinder.com, which has a directory for goat rentals for 10 states.  But beware before you rent, using goats has risks, like a deep attachment.  Goats are so cute and friendly, it can be very hard to say Goodbye when the work is done. 

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In the annual Berkshire Hathaway shareholder’s meeting, Warren Buffett, the oracle of Omaha, predicted that inflation will hit the US economy due to the financial crisis.  Buffett told shareholders, “I haven’t had my taxes raised.  My guess is the ultimate price will be paid by a shrinkage of the value of the dollar”.  

If Warren is right, and he usually is, the average person can use his wisdom to profit with a smart real estate investment.    

  • To invest safely, a home buyer should put 20 percent down and take out a 30 year fixed rate mortgage, locking in an interest rate around 4.5 percent.   If you haven’t owned a home over the past 3 years, you can cash in immediately with the $8000 tax credit.   When inflation hits, your mortgage costs will remain the same, as your salary increases.  This means that you have even more money to save and invest later on.
  • If you are currently renting, there is another compelling reason to invest.   During periods of inflation, rents will rise.  If you don’t own a home, your monthly rent obiligations will soar. 
  • Another reason to invest in real estate is that during times of inflation, home prices appreciate, if even at a slower pace.  History shows that during inflationary periods, real estate appreciation tends to beat inflation by 2-3 percentage points.
  • Leveraged assets, such as real estate, outperform other asset classes.  Leverage magnifies gains because as your income rises, your debt payments will not.   You’ll be able to pay off the mortgage with money that is worth less than it was when you borrowed it.
  • With home prices and interest rates hovering at historic lows, now may be the perfect time for investor’s to withdraw the cash they have sitting in savings accounts that is paying only a 2-3percent and buy a piece of property.   If you buy a property where the tenant covers the expenses and costs of ownership, then the investor can relax and wait for inflation to move up rents and home prices.

InfoTube.net and Warren Buffett agree that inflation, over the next 5 years, is a sure bet.   And, when we get rampant inflation, real estate is the perfect hedge.   Throw in low prices, cheap money, ridiculously low returns on cash investments and thousands of dollars in tax savings, and you have a powerful case for buying a home now.   

Thank you for visiting InfoTube.net.  Seller’s can place a Free Property listing on the site or add an MLS listing to their by owner strategy with the click of a button.  Bonus:  Buyer’s can search for thousand’s of homes in complete privacy.  We do not sell or distribute user information and there are no pop up’s or dead links anywhere on our site.

Condo and Homeowner Associations in Trouble

Tuesday, April 21, 2009 posted by Tommi Crow

Foreclosures and loan delinquency’s wreck havoc on the budgets of Homeowner’s Associations (HOA’s) across the country. 

Many condominium communities are glutted with nonpaying units that swamp their operating budgets, force cutbacks on promised services and increase monthly dues for owners who are paying their mortgage and association dues.

Crisis In Florida:

In Florida, the land of the condo dweller, things are spinning out of control for HOA’s and property owners.  As a result, Florida constituents are turning to legislators for an help they can provide.

Under the current system in Florida and other states, lenders can avoid paying homeowner’s fee’s until they foreclose and become the owner of the unit.   Lenders face a continuing avalanche of foreclosures and loan defaults, which means that up to 2 or more years can pass before the property transfer gets through the court system.  

During the lengthy legal process, homeowners often continue living in the units, using the ammenities and facilities for free.  Some even rent the units for income, after they have stopped making payments on the property.  Many associations are forced to cover the costs of water, cable, laundry, lawn and pool maintenance and garbage collection for paying and non-paying owner’s alike.  To make up for the added expenses, paying unit owner’s have to foot the bill or the entire association goes down.   

And, things get even more complicated.  Some banks stall on taking title to units because they have a cap that limits the amount of past-due fee’s they have to repay to 6 months or 1 percent of the original loan amount.   Some luxury condo associations report that some units have as much as $50,000 in unpaid fee’s by the time the bank takes ownership.

Downward Spiral:

Lenders are also denying financing for financially unstable buildings, which essentially means the property can not be sold, even if a buyer is found.  In January, mortgage giant Fannie Mae said it would no longer fund loans in buildings if more than 15 percent of the units were 30 or more days past due with their association fee’s.  

The problem has reached a crisis point for many HOA’s that are struggling to cover basic utilites such as water and electricity.   If they raise fee’s on paying owners for the shortfalls, they risk pushing even more residents into delinquency.  Most owners are already upside down on the property and they simply can not afford a higher payment.

Renting out units could offset loses, but rentals are usually prohibited or they are limited to a very small percentage of the number of units in the complex.  Furthermore, lenders such as Fannie Mae also deny funding for buildings that are less than 51 percent owner occupied.   So, raising money with rent income does not appear to be a viable solution, nor does it maintain the quality of life for the paying residents.

The housing crisis has uncovered many problems that we have never encountered before, but the number of failing HOA’s is an imminent crisis.   Unfortunately, it isn’t simple and if solving it isn’t done correctly, more permanent damage may occur.

Thank you for visiting InfoTube.net homes for sale website.   Search our database for thousands of great deals on property across the USA.

Developer and Real estate trust ProLogis looks upward to ’electricify’ its cash flow and reduce its overhead. 

ProLogis, who owns more rooftops than anyone in the world, announced  plans to develop the rooftops (equal to 10,000 football fields) of their existing buildings, and lease the space to power companies to install solar panels.

From the press release:

Headquartered in Denver, Colo., as a manager and developer of real estate, ProLogis is actively seeking out electric utilities to lease out its rooftops as a way to earn extra income with no capital investment, while meeting the company’s goal of contributing to global sustainability.

As a real estate investment trust, ProLogis isn’t interested in owning the solar installations, but rather in engaging utilities as a renter of its space. Utilities make solid tenants that will enter long-term leases, as most power-purchase agreements for solar power generation are for 15 to 20 years.

ProLogis manages more than five hundred million square feet of industrial space and they are putting all of it to good use on three continents. Actually, ProLogis owns more rooftops than anyone in the world – they have available space in twenty-four countries across the globe. The amount of space is equivalent to approximately 10,000 football fields.

 Although Prologis continues to develop new buildings on virgin land, their plan to put solar panels on their rooftops is a win-win for ProLogis, power companies and the environment.  It makes good use of existing, undeveloped real estate, feeds the electrical grid and generates cash flowAdded Bonus:  In addition to increasing cash flow for ProLogis, adding the solar roof panels also insulates their buildings, reducing their operating costs and their carbon footprint, simultaneously.

Kudo’ to Prologis for thinking “out of the box” and on the grid.  Maybe it will encourage other developers to do the same.

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Home Inspections and Repairs. What you Should Know.

Wednesday, February 11, 2009 posted by Tommi Crow

 

I receive a lot of questions from buyers and sellers about home inspections and repair issues.   So, I decided to post links to a couple of articles I recently wrote about the subject.   I hope the information clears up some of the confusion.

Buyer Repair Requests. What Repairs should the seller make.

Home Inspections. What you Should Know.

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Renters can Stay is Good news for Homeowners

Thursday, December 18, 2008 posted by Tommi Crow

 

The unfolding mortgage crisis ushered in some good news for home sellers and renters, alike.  Fannie Mae will allow paying tenants to stay in their rental homes, after a defaulting borrower’s property is foreclosed on.

The new policy brings some much needed relief to tenants, who find that they are often innocent victims of the foreclosure crisis.  Landlord’s often use tenants as a revenue stream, long after they quit making mortgage payments.  As a result, thousands of renters, who were unaware that their landlord was in foreclosure, have been evicted through no fault of their own. 

The new policy is historic because lender’s want to get foreclosed property ready for a new buyer, as soon as possible.  Typically, renters make this difficult to do.  But, in this environment, thousands of homes sit vacant and fall into disrepair, because the tenant is gone and no one is buying. 

This policy is a win-win for lenders and neighboring homeowners, as well.  Vacant properties pull down prices and the appeal of any neighborhood, even the good ones.  By leaving the paying tenant in place, the lender’s home’s are occupied and maintained, while they collect rent. Homeseller’s benefit from a stable neighborhood, and they don’t have to compete against the vacant foreclosure’s, as they try to sell their owner occupied homes.

Fannie Mae and Freddie Mac have a moratorium on foreclosures and evictions through January 9, 2009.  The hold on holiday evictions has allowed 10,000 families to stay in their homes, and the new policy means that thousands of renters may escape eviction after the first of the year. 

Thank you for visiting InfoTube and Happy Holidays to all.

2009 Real Estate Prediction – Rents will Rise

Wednesday, November 12, 2008 posted by Tommi Crow

Prediction:  2009 will be a good year to be a landlord, as five factors collide to make rents rise in 2009.  

  1. 1.  An estimated 1.9 million homes will be foreclosed upon in 2009, which will tranform these former homeowners into tenants.
  2. New construction will grind to a halt, which means fewer rental properties will be available.
  3. As credit remains tight, potential buyer’s will be forced to renew their current leases after they are turned down for a mortgage.
  4. Consumer fear and an uncertain employment picture will keep would-be, credit worthy buyer’s on the sidelines, meaning less turnover in rental housing.
  5. Thousands of Americans who have been burned by recent homeownership will decide that ownership is not worth the risk and trouble.  They will sign a lease for the ease and flexibility, and happily return to rental living.

Investors and Landlords Take Note:  This convergence can be summed up in two words.   Higher Rents.  As the demand for rental units outstrips the supply, the upward pressure on rental rates will occur naturally.

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Best Advice for Emerging Trends in Real Estate

Friday, October 24, 2008 posted by Tommi Crow

 

The housing market and US economy is extremely scary this Halloween.   Many of us feel as if we have been buried alive.  But, just like the zombies on a late night horror flick, real estate investor’s will raise from the dead and roam the earth again.

The market forecaster’s predict that the market will hit bottom in 2009, and will fight to survive through much of 2010. 

During this period, we will experience further drops in property values, as foreclosures and deliquencies continue.  Job loss and the faltering US economy will continue to pinch property cash flows and hamper an active lending environment, .

So, what signs of life will investors see before exhumation begins?   Which opportunities are lurking, just below the surface, that the prudent should take advantage of?

  • The gruesome death of US real estate market has a beneficiary.  The cash rich, foreign buyer.  These well-healed investors will take advantage of a weak dollar, focusing on “trophy” properties located in major, active cities with plentiful employment and quality of life.
  • The first area’s of the country to show signs of recovery will be the “cities that never sleep”, located in coastal area’s.
  • Multi-family and higher density properties with retail shopping will be the focus for future developers.
  • Other developer’s will focus building in area’s with neighborhood retail centers with big box grocery and chain drug store anchors.
  • Apartment building investments may pay off now.  Look for mid-range property near transit in high density locations.  Vacancy rates are very low, and will remain so, as people cut living expenses. 
  • Distressed condo’s located in urban area’s near transit bode watching.
  • GREEN is GOOD.  Cutting energy expenses will be a priority for investors and buyers, alike.
  • Residential building lots will get a cheaper, as builders dump options and inventory.   Spelling profit potetianal for the patient.
  • Commericial will show signs of life, before residential.

The world is indeed a dark, scary place at the moment.  But, rest assured, the sun will come up.  And, while we have no quick way to stop the bleeding, the ones of us who survive the slaughter may grow fat on the plentiful carnage.  To the mindful, patient go the spoils.

Thanks for visiting InfoTube.net.  Happy Halloween and Happy Home Hunting!! Don’t be SCARED to make a comment…no one will BITE your HEAD OFF.

5 NEW RULES FOR REAL ESTATE INVESTING

Thursday, October 16, 2008 posted by Tommi Crow

The new, US economy brings with it, a whole new set of rules for investing in real estate.   In the past, real estate has been a tried and proven method for quickly building wealth, but the current rules for successful investing have changed.

Making money in real estate is still a possibility, but investor’s must pay very close attention to the changes that this ecomonic cycle brings.  Today’s investors need to reexamine their criteria for buying, selling or holding property.  They also need a lot of patience and flexibility, along with complete and detailed research, before they jump in and take advantage of some of the best bargains seen in years.

NEW RULES FOR INVESTING IN TODAY’S REAL ESTATE MARKET

NEW RULE #1:  LOCATION, LOCATION, LOCATION.   For the baby boom generation, the suburbs were “the” location for profit and life style.  Fuel was cheap, commutes were short and the ‘burbs’ offered the big house, with picket fenced yards and the image of the Leave It to Beaver lifestyle.   Not so much, today.  Today, it is the urban scene that is making a comeback.   While homes in downtown area’s are generally more expensive on a price per square foot basis, buyer’s today are willing to pay a bit more money for less square footage.   Urban center living eliminates long commutes, urban sprawl, expensive fuel bills and provides nearby ammenities without the need to drive.

NEW RULE #2:  STAY PUT AND DO NOT REMODEL WHEN THE MARKET IS SLOW.   In the past, many homeowners gained equity by renovating their old home while the market was slow.   The improvements added value to their real estate, while they waited for more favorable market conditions.  In the 2008 housing market, any major renovations should be analyzed purely from a return on investment perspective.   According to Remodeling Magazine, which just published its Cost vs Value Report, homeowners should be warned that they will not recover as much of their costs for remodeling as they did in the past.   The best investment today’s homeowner can make in terms of renovating fall in the category of paint, landscape and green, energy saving features. 

NEW RULE #3:  Technology and Networking are the Key to Locating Great Properties.   Home listings, valuations and other crucial information for real estate investment used to be available only through a real estate agent.  Now, the genie is out of the bottle and the best sources for real estate information can be accessed with nothing more than the click of a mouse.   More technology has also made it possible for home seller’s to list their property on the powerful, national MLS, without listing with a agent.  Companies like Why 6 Percent.com, and its national network of broker’s, list property for seller’s, investors and builders who want the exposure the MLS provides, but do not want to pay 6 percent of their sales price for the priviledge.   Technology has changed the way buyer’s and seller’s connect, and the way that property is advertised.   Smart investor’s should take advantage of this new alternative, as it offer’s accuracy, speed and control unmatched by the traditional route of buying and selling through agent’s only.

New Rule #4:  BIGGER IS NOT ALWAYS BETTER.  In the past, agent’s and home builder’s advised buyer’s to purchase as large of a home as they could possibly afford.  As a result, home size in the 1970’s averaged about 1700 square feet, with 3.1 people in the average family.  In 2004, the average size of a home was around 2400 square feet with only 2.6 occupants on average.   Today’s lending and energy crisis has changed our thinking and bigger is not necessarily the best investment.  Buyer’s are looking for a home that meets their needs without paying for space they don’t need.   Today’s investor needs to adapt their thinking and focus on useable living space, energy saving ammenities, security and conveniences instead of targeting the over blown McMansion.  Another demographic also backs up the theory that smaller may be better.  For the next two decades, retiring baby boomers will be scaling out of their McMansions, now that their families have left the nest.  The boomer’s will favor smaller homes with more ammenities, located in convenient neighborhoods that are clean and safe.

New Rule #5:  FLIPPING IS OUT. BUY AND HOLD IS IN.   Today’s falling prices and the huge inventory of unsold property means that potential bargains are plentiful.  Smart Investor’s will take advantage of the current market and lock themselves into a good deal now, and hold the property until stability returns.  Prospective investors should be warned that the crash we are experiencing will not turn around anytime soon.  Prices will continue to fall, though not as dramatically as we have seen in the recent past.  As prices firm and inventory is sold, the patient investor will see gains, but they should plan on waiting five years to ring the register.

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Home Repair Requests. What Items Should Sellers Fix?

Thursday, September 11, 2008 posted by Tommi Crow

Every offer to purchase a home will contain a repair contingency.   The contingency will outline the options for seller and buyer, in the likely event that repair issues are discovered during the buyer’s property inspection. 

Before we begin to address the repair issues, I would like for all sellers and buyers to remember that there is no perfect home.  Every house, new or old, will most certainly turn up a list of repairs.   If you are a buyer searching for a perfect house, you can stop searching.   There are no perfect houses.

The purpose of home inspections is to identify safety issues or serious (ie: expensive) problems that are in need of repair, before the buyer complete’s the home purchase.  The buyer will use an inspection report to compile a list of repairs that they want the seller to fix, before closing.   Since both parties desire to maximize their cash, sellers are often left to make a decision about which repairs are necessary or reasonable, and which are not. 

So, what helpful facts should sellers and buyers know about handling repair requests?

  1. First, all Buyers should have an independant, professional home inspection and seller’s should only accept inspection reports done by a qualified, home inspector.  Sellers are not obligated to accept the opinions of the buyer, the buyer’s friend or cousin, or any non-professional, for that matter.
  2. The Buyer should provide a copy of the inspection report, along with the list of items they want the seller to fix.   If the seller hasn’t received a copy of the report, they should ask the buyer to provide it, before responding to the buyers repair request.
  3. The Buyer should not “nit pick”.  A request for repairs should focus on major problems and safety issues.   The buyer should not ask the seller to fix cosmetic problems, such as a bad paint job or peeling wallpaper.  The buyer should have addressed those issues in the purchase offer, during their initial walk through.
  4. If a seller receives a long list of repairs, they can consider offering a home warranty that covers major defects.  This insurance can save a deal by easing the buyer’s fear that the home is a money pit.  For a few hundred dollars, companies such as American Home Shield, provide an insurance policy at closing, which  covers major items and gives the buyer peace of mind.
  5. In a buyer’s market, they often want everything fixed.  Sometimes the seller can ascertain inside information about which “big ticket” items are the most important to the buyer, but the seller should always keep in mind that they risk the buyer walking, if they don’t agree to complete the entire list of repairs.
  6. When a seller is presented with a lengthy repair list, they should remember that known problems become material facts.  If a seller declines to fix buyer requested repairs, the problems are now “known” and must be disclosed to any future purchaser, in the event the buyer walks and the deal falls through.
  7. If a seller wants to cooperate with a buyer, but is unable or unavailable to oversee repairs, the buyer might be willing to accept a cash credit at closing to cover the expense estimates.   Many buyer’s are comforted by the fact they can use the seller’s money and hire their own contractors to make the repairs in a way the seller may not have done.

What Repairs Requests are Deal Breakers?  Which are Reasonable for the Seller to Refuse?

  1. Lender Required Repairs-Any problem noted on an appraisal, such as a bad roof or structural problem, is grounds for the bank to refuse to lend money on the property until the problem is fixed and the structure is properly protected.   Sellers are advised to make all repairs noted on an appraisal.  They affect the buyer’s ability to borrow funds and complete the purchase.
  2. Leaking Pipes-It is not unreasonable to ask a seller to repair water leaks and the damage which the leaks may have caused.  Unrepaired leaks raise mold issues and other problems seller’s don’t want to have if the deal falls through.
  3. Water Penetration-Sellers should address water penetration issues.  Most are caused by improper drainage of water away from the home.  Adjusting the grade or installing a french drain is usually the fix. 
  4. Roofing System-As stated in item #1, the seller should expect to repair or replace their roof, if deferred maintanence has caused water penetration issues.   If your roof is in good shape, sellers can aleviate problems ahead of time, by providing the buyer with a roof certificate, since most inspectors do not cover roof inspections.
  5. HVAC and Hot Water Heaters-Usually, age is a good indicator of whether the seller should replace these systems.  The average life expectancy of a HVAC system is about 20 years, and about 10 years for a water heater.  It is not unusual for the buyer to ask for new systems, if the existing ones are on their last legs, but these are big ticket items for the seller to repair, so no easy answer here. 
  6. “Tar Paper” Sewer Lines, aka “Orangeburg” Sewer Pipes-These pipes, which are made from tar paper, are famous for collapsing.  Generally, they last about 30 years before they disintegrate.  While replacing sewer lines is expensive, they are an item most sellers will replace.
  7. Unsafe Decking or Handrails-Sellers should generally fix any items that effect the safety of the occupants, or are matters of local code enforcement.
  8. Galvanized Water Pipes-Many homes built 30 years ago have galvanized, steel water pipes.   These pipes become clogged with minerals overtime, which is often the cause of low water pressure.  These type of pipes are also prone to rust and leaks.  While it isn’t unreasonable to expect the seller to fix leaks, few sellers are willing to replace all the plumbing lines.
  9. Electrical System-The electrical panel should be safe and not overloaded.  The breakers should be marked with the name of the area of the home that they service.  Sellers, again should expect to repair any safety or fire issues that are found during the inspection.   If your home was built before 1960, it is likely the electrical service is Ungrounded, meaning the plugs have only two outlets.   Most sellers will refuse to rewire a house, simply because the service is Ungrounded, since it does not cause any problems.  A tip might be for the seller to offer to run “Romex” from the electrical panel to any new receptacles that the buyer intends to use for sensitive electronics and large appliances.  As a general rule, buyers who require grounded wiring should be looking for newer homes.
  10. Foundation or Wet Basement-These are difficult issues that effect the very structure the home is built on.  These homes are best purchased “as is” at a steep discount.   Buyers should always think twice about purchasing a home with this type of problem.  Problems with or repairs to these systems never go away.  These are material defects and must be disclosed to any future purchaser.

Before seller’s make a judgement about what items they will, or will not, repair, they should strongly consider that we are in a buyer’s market.  Buyers are hard to come by and they have a lot of home choices available to them.  If you need to sell, you should realize that it is likely the buyer will walk, if you refuse to address reasonable problems with your home.  In addition, if another buyer comes along in the future, it is likely they will ask that the same items be fixed.  Smart sellers should take a deep breath, and if you have to err, do it on the side of caution.   A qualified buyer has a great deal of value in this marketplace.  Please don’t lose your deal over a small deferred maintanence issue.

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