Positive Real Estate Professionals

Way too many times have I witness homes that have many non-working appliances or other equipment in them. It is sad that the home owner does not care enough to either repair or replace these items. It is especially sad when it is like this and the home is being placed on the market for sale. Our resident home inspector guru, Frank, recently wrote a great article about just this issue. Please enjoy the read.

Via Frank Schulte-Ladbeck, Your Houston Home Inspector:

During my Houston home inspections, I find non-working equipment, mainly alarm systems. When I check, product manuals for these home accessories are missing. The internet can help.

Helping to protect your family and investments, home security systems can be a great feature. With security cameras and new wireless systems your home cannot be set up for any type of intrusion detection. However, trying to find monitoring services that will not hold you to an unreasonable contract or finding low cost monitoring can be hard. I think that is why most homeowners disable alarm systems. The other main reason is not understanding the system, so they do not know how to turn off some annoying alarms, so we turn to the family dog for protection from that burglar, an easy do it yourself solution.

I tried looking for free tech support with many consumer electronic items to discover that this is rarely free, so I save my product manuals to guide me with my equipment. Every time I have called some firm, I first have to sit through a high pressure sales pitch to buy a warranty or some other extra feature, before someone comes online to help me. Even then, I experience a surreal situation where the tech support cannot understand what I am saying, no matter how I say it. My new pet peeve are firms that have online systems for their sites that direct you to FAQ sheets which do not answer your question. When you are able to find the spot where you can get to send an email, they do not respond. That is my rant portion of this post. Let’s move on. I keep all of the product manuals in one file where I keep other form and documents for my home. This post was inspired by two situations. After a home inspection, I did tell a client that he could find a manual for an alarm system, but I also was going through my product manual folder to check that it was relevant to my current accessories (consumer electronics is the big deal here). To manage my home efficiently, I check these manuals to find that I am making the most of this equipment.

What if you are buying a home, and you do not know how to use all of the functions of a piece of equipment? I tell clients that they can use their alarm systems without having them monitored. The system will not call the police or fire department, but it will warn you with its sound. However, moving away from alarm systems, what about a dishwasher from HotPoint or GE or a water heater from A.O. Smith? Knowing the name of the brand can help. Many firms keep product manuals or specifications on their corporate sites. The problem we face now is many brands no longer exist or they are owned by a new firm, so you cannot find any product manual. There are two sites that can help you find such manuals.

OwnerIQ.net is one solution when searching for product information. This site has many equipment manuals with a quick search function. This site also features a forum that allows users to discuss issues with their equipment, or find out what other users have said. I thought that this was a well designed site if you need to find specifications or need to discuss that digital TV.

Another site that can offer assistance in searching for product manuals is SafeManuals. Diplodocs is the other name for this site. It also has a forum, and it has many product guides. My favorite aspect of this site is that you have the manufacturer/brand names to the right, so you can search for your product by that means.

You may find that keeping these manuals in one spot for quick access will allow you do it yourself repairs. To manage a home effectively, and at lower cost, you may see that these product guides can give you repair options that anyone can handle. Always good to know

Fred Chamberlin wrote this excellent article on what many homeowners who purchase a foreclosure may encounter. Not only does Fred discuss these possibilities, he gives some practical information on how to get the funds necessary to finance the repair work needed to make the house inhabitable. If you are considering buying a bank owned foreclosure, I would definitely recommend reading this post.

Via Fred Chamberlin of Eugene Loan Guy:

I want to talk to people that want to purchase a bank owned property (foreclosure) or currently own an Oregon home and want to make some repairs or renovations to it but due to the current real estate market, don’t think that they can. Current home owners have limited choices when it comes to paying for a renovation. I can think of four different choices: (1) pay for it out of pocket, (2) put it on a high interest credit card, (3) pray your home still has enough equity to take out a home equity line of credit (HELOC) or (4) refinance into a FHA 203k Streamline renovation loan. Purchasing a foreclosure has the same problems, but it has to be done after closing and most lenders won’t lend on homes that are not in decent repair.

Now, I want to show you five reasons why the 203k renovation loan is the best choice when the repair costs are $35,000 or less.

1. Have you shopped for home equity line of credit (HELOC) lately? They are much more difficult to find at a reasonable loan to value (LTV). The banks and investors who used to buy them in the secondary mortgage market have stopped because of performance. Many of the major banks are completely out of the home equity market because they are continually writing off non performing loans. Those that do still offer HELOCs, offer them at a much lower LTV and can cut the LTV at anytime if they decide you are in a declining market. Often times the HELOCs can be reduced in the middle of a project with no advance warning.
2. Renovation loans are based on AFTER REPAIR VALUE with an appraisal that is “subject to” the repairs being made. Equity lines don’t consider the value of your home when the repair is finished (only CURRENT value), 203k renovation loans do.
3. 203K loans are first lien mortgage products. You only have ONE loan! Gone are the days of making two mortgage payments. One payment goes to one lender.
4. Moving to a different home that needs repair? Good luck getting a first mortgage let alone a second to renovate. Lenders of traditional loans will not lend on homes in disrepair, but 203K renovation lenders are not concerned with the current condition of the property. Renovation lenders are only concerned with the after repair condition of the property.
5. Thinking of putting the renovation amount on your credit cards? Consider that a 203k loan has a lower interest rate, longer repayment period AND tax advantage?

In this market there is no better loan than the FHA 203K renovation loan if you are looking to spruce up your current digs (or looking to purchase that foreclosure down the street with no appliances). One loan based on after repair value at an affordable fixed rate. FHA 203K loans were built for this market. You can get up to 95% of the current value of your home and up to $35,000 in repairs ($31,500 plus 10% contingency) with the Streamline 203k refinance. You can get up to 96.5% of the purchase price plus the repairs up to $31,500 plus contingency. Sounds complicated, then call me. Let me help you with the process. *NOTE: This loan will not work for foundation repair or landscaping. Manufactured homes are OK as long as foundation and tie downs are installed prior to inspection.

Step two in this process, partnering with a Realtor will be covered in tomorrow’s post. Please check back, because I think that, if you are interested in buying your family home from the supply of foreclosures, this will be some interesting information. Of course, since I am writing it, I could be a bit prejudiced.

Prelude:

If you have not followed this series, then you might just want to go back and check out the first four of these articles. I have linked them at the bottom of the Prelude. For those of you that are familiar, welcome back. It has been a while since I have written a piece for this series. There are many ways to increase the value of a home in today’s economy without breaking the bank. Some of these ideas are simple basic things that one can do and some are a little more complex. All of them are feasible and will work to improve the value not only for today but for the long run. Ultimately, when you are in a down market, one of the first things that a homeowner looks for is the way to increase the value of their property. In this series, we will cover several ideas that will help you. We will do this covering one item at a time.

Increase the Value of your Home: Part 1

Increase the Value of your Home: Part 2

Increase the Value of your Home: Part 3

Increase the Value of your Home: Part 4

Today’s post will be the last of the series that concerns the outside of the house. Basically, we will be discussing making an edition to a home on the outside to increase value and not break the bank.

Curb appeal relates to the exterior of a home. Where most people fail to add value to a home is in the front and rear of the home in relation to decks and patios. This is an inexpensive way to increase the value without breaking the bank. One of the cheapest paths to doing this is to build it yourself. If you are building a wood deck and would like some easy to understand instructions, then you need to read this article. Having a professional come in and do the work is also an option.

The first and foremost thing that you need to determine is what the decking will be made out of. If it is going to be cement, then you need to determine if it will be covered by tile or another material. If it is wood, then are you using treated or composite. Each of these decisions will determine the value of the addition. Plan accordingly as you do not want to be redoing the deck. Another option for this would be to lay pavers and use sand to tighten them up.

Please consult a professional before taking on a project like this. Typically, your local home improvement store can tell you how intense these projects can be.

Prelude:

If you have not followed this series from the beginning, I Highly recommend that you go back and read Part 1, Part 2, and Part 3. All three of these have dealt with the land itself. Today’s will also deal with the outdoors. We will be discussing the exterior of the home and what can be done to increase the value. This particular series is set to be 20 to 30 parts long and will cover the exterior and interior of the home and also the yard. The thing to remember here is that adding value by some of these methods is a more long term project as opposed to a quick fix.

Home Exterior:

In the sections below, we will be discussing how to increase the value of your home. These are some low cost ideas that will help you out when you are going to be putting the home back on the market. Just remember that this is not going to add a lot of value to a property. They are designed to help you achieve top dollar for your property. For the foremost, these “fixes” are more about not detracting from the value than adding to it. Most of the issues below can be tackled either by you or an everyday handyman. Also, most of these projects can be completed in a weekend’s time. They will typically only require no more than visiting your local home improvement center for the supplies to repair the damage or wear and tear.

Home Inspector:

One of the things that I have always directed anyone to do that wants to sell their home is to consult a home inspector first. Bottom line is, the buyer will be doing this after you accept their offer, so why would you not? Ultimately the potential buyer will come back to you do the repairs, so this is just another way to stay a leg up on them and still demand full asking price.

I would never start fixing, repairing, or replaces things in and around the home in the beginning without seeing what his master list is. Also, you can disclose any issues that are already known about to all perspective buyers. This way the potential buyer knows about those issues ahead of time.

Here are a few things that might be common through.

Pressure Wash:

Before I would do anything, including having an inspector out, I would recommend to have your home pressure washed. Now, you can do this yourself or you can get the pros out to do it. I myself would rather have someone come out to do the work and get it done right. A clean home is the first key to a fast sell.

New Paint:

The next thing that I would look at is the paint job. If it is faded, chipping, or peeling, then a fresh coat can do wanders. This is easy to tell after you have pressure washed the home. You can have pros come out and do it or you can tackle this on your own. I personally like to do it myself, but that is me. If you have a 2 story or larger, it might be better to bring in the pros.

Window Screens:

People seem to not think about the screens often. However, if they are down, torn, or just worn out and dirty, this can detract from the value and aesthetic of the home. People like to open windows to invite a fresh breeze in, but that is all they want coming in. Having a screen that is clean and fits nice and snug is an added bonus.

Windows:

Typically you will want to inspect all windows prior to putting a home up for sell. Make sure to check for escaping air, cracks in the panes, and rotting seals. It is better to catch these before the potential buyers do. If your goal is to get top dollar, the last thing that you want someone to have to find is bad windows. This can make or break your deal.

Soffit and Fascia:

A lot of people do no consider the soffit and/or fascia when getting a home to sell. Problem is, lenders think about this as an issue. Replacing or repairing is not that hard and the material can be bought at a local home improvement store. A lot of times these get blown out in a storm and people do not even consider them.

Gutters and Down Spouts:

Not only is it important to have the gutters and down spouts cleaned out, it is also important in having ones that are working properly. Typically the gutters and down spouts stop working due to being clogged. In most cases sections can be replaced. However, if you find bigger issues, call in a gutter professional.

The last thing that you want is to lose a potential buyer because the gutters have a leak, over spill, or simply stays stagnant when it can cause water damage.

Shutters

Outside window treatments are often overlooked. Make sure that they are in great shape, and are able to function properly. If the shutters are designed to actually close, make sure that they can and will actually close. Also, make sure that they can and will stay closed. .

Window Boxes:

Outside window boxes that are meant to hold plants should be filled with nice vibrant plants. Having overgrown ones, dead ones, or none is not a good idea.

Prelude:

If you have not followed this series from the beginning, I would highly recommend that you go back and read Part 1 and Part 2 before you start with this one. This particular series is set to be 20 to 30 parts long and will cover the exterior and interior of the home and also the yard. In today’s article, we will be discussing the use of “yard art” and how it can add value to a property. The thing to remember here is that adding value by some of these methods is more a long term project as opposed to a quick fix. The property value will increase over time.

Yard Art:

Back when I was in Landscaping, one of the things that I would address for a customer is the need for yard art. Well, first, we might want to talk about what yard art is. It can be something simple from adding a few huge rocks or boulders to adding a water fountain. Another thing to think about is adding borders to you flower bed. Now, in most cases, these are not things that one would think about taking with you when you leave. Therefore, it gives an aesthetic value to the property. Below we will discuss how each help.

Water Features or Fountains:

When looking at adding a water feature, you have to always keep in mind that you do not want to go overboard with this particular feature. In the past I have seen huge fountains that just overtake the yard. Or what is worse, I will see someone that has dug a mote through their 1/4 acre plot. Overkill will never benefit you or the property when it comes to value.

Also, another thing to consider when adding water fountains is that you want to keep it all in good taste. Just remember that if you want some value out of it, people have to view it as an asset. A great way to bring better value is to have electricity ran directly to the fountain.

Boulders:

Typically, this is something that I always would recommend for the larger yards that would have a huge flower garden. You would be surprised how much a boulder here or there will do to the aesthetic value. Most of these boulders are 300 to 500 pounds, so you do not have to worry with someone running off with one of them. Once again, do not over do it. Less is more.

Borders:

When making a garden or flower bed, I am all for defining the space. With that said, you want something that will compliment the home. I have viewed homes before that have these big borders that just look like it swallows the bed as well as the yard. In the case of needing to define the edges of a bed, I recommend going with a stone, brick, or cement construction type material, but the choice is up to you.

Prelude:

There are many ways to increase the value of a home in today’s economy without breaking the bank. Some of these ideas are simple basic things that one can do and some are a little more complex. All of them are feasible and will work to improve the value not only for today but for the long run. Ultimately, when you are in a down market, one of the first things that a homeowner looks for is the way to increase the value of their property. In this series, we will cover several ideas that will help you. We will do this covering one item at a time.

Topic: Trees, Plants and Shrubs

One of the biggest things that you have to consider when trying to increase the value of a home is the yard. In part 1 of this series, we discussed the many types of grass and the need for a full, lush lawn. Today, we will talk about the need for trees, shrubs, and plants in the yard.

Trees:

The placement of trees are crucial. Too close to the house or driveway and you can suffer some major damage. Too far away and it has no curb appeal. Ultimately, placement is key. Also, the number of trees in a well manicured yard can help or hurt. Too few for the larger yard and too many for the smaller yards are something to consider. I never consider just one unless you have almost a zero lot line. As for variety, you have to be careful with that. First, you want to make sure that it is hardy to your climate. You also want to make sure that it handles the elements well. An example is that Bradford Pears are not good in Florida due to all the hurricanes. With that said, it still does not stop people from planting then just to see them get split in half.

Plants:

Typically, I am more partial to plant beds as well as the use of urns and other types of pottery and planters strategically place about the yard. Plant beds give a sense of definition to the yard. The urns and other planters allow for you to stage and re-stage the yard as you see fit as well as grow plants in places that the ground is not so kind to the plants.

Plants also bring the element of vibrant color into the yard. But, are not limited to just that benefit. They also bring some of the critters that are so necessary for your yard to flourish. When considering the plant life that you want to incorporate into your yard, consider the facts of what they attract, the colors, life span, water requirements, size, and if they are hardly to your climate area. All of this can be learned at your local nursery or garden center.

Shrubs:

Too many times have I seen a home that is being overpowered by the shrubs. Either that have not been trimmed properly or they are so sparse that they detract from the curb appeal. Shrubs need to be inserted into the landscaping just as plants do. There is a rhyme and a reason for where shrubs are places in the yard.

The biggest thing that gets me is that everyone thinks that shrubs should automatically go against the house.This is not true. In Florida, my house had variegated arboricolas around the front and side as a barrier.

My shrubs were more of a barrier for the fence. We also used them in the flower garden throughout as fillers of space. The placement and use of a shrub can be either helpful or harmful to the curb appeal. Keep in mind how it will look with the other plants around.

There are many ways to increase the value of a home. Some of these ideas are simple basic things that one can do and some are a little more complex. All of them are feasible and will work to improve the value not only for today but for the long run. Ultimately, when you are in a down market, one of the first things that a homeowner looks for is the way to increase the value of their property. In this series, we will cover several ideas that will help you. We will do this covering one item at a time.

The first thing we will cover is something that a lot of people do not even think about. It is your lawn. Now, in Part 1, we will not talk about anything other than the grass itself. I am going to break this into several parts so that you can get the picture

1) The Type: Many people do not think about what type of grass they have growing. However, if you think about it, not all grasses are right for all climates. So, what you first have to find out is which grass may be right for you. The map shows the three areas where Warm (yellow) and Cool season (blue) grasses are used within the USA. In the transition zone (purple), a mixture of these two grass types is sometimes required. However the Transition zone generally favors the cool-season grasses over the warm season ones. Below is a list of the different types of seed for your lawn also.

• Bahia grass
• Bent grass
• Bermuda grass
• Blue grass
• Carpet grass
• Centipede
• Fescue
• Rye grass
• St. Augustine
• Zoysia grass

2) The Care: The next thing that you have to consider is what type of weed and feed that you are going to use on the lawn. Now, in most cases, I typically put down just on application in the early season, but it is really up to you as they typically have fertilizers that are made for different times. One of the things that you have to figure about fertilizing your lawn is that you also need something that will also control the weeds. Make sure to water your lawn regularly. This will allow for you to have a full healthy lawn. Make sure that when you mow, that you do not over cut. Cutting to low will scalp the grass and can be detrimental to the growth.

These simple things can actually improve the value to one’s home. Value is determined by desirability and desirability by aesthetics. In other words, make it look good and people want it.