Homeowners Maintenance Checklist | Foundation | Roof | Septic | Electric | Crawl Space

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Is Your Home a Ticking Time Bomb? | Zillow Blog

There are some maintenance and repair issues that homeowners just hate to deal with — either because they take time, cost money or just don’t seem, well, urgent. But, some of these problems can become ticking time bombs, poised to explode if they’re not defused early, when they are more like firecrackers than bombs.

Here are some of the top structural and mechanical time bombs in your home that experts say have the potential to blow up and are worth squelching now — before the big boom.

The foundation

Why it’s explosive: Houses settle. But not all settling is the same. “A lot of times people will ignore the cracks in the brick veneer on the outside of the house, even when they get to be a half-inch or more,” says Bill Loden, incoming president of the American Society of Home Inspectors (ASHI). Even though that brick is often just the “skin” of the house, a crack that large can signal much deeper problems with a moving foundation, Loden says. Caught early, a repair might cost a few thousand dollars. Caught too late, the tab could run $20,000 to $50,000.

Snuff the fuse: Some cracks in your house are essentially cosmetic — the result of natural settling. When is a crack something more? “If you see a crack big enough to put a No. 2 pencil in, you’re looking at a problem,” says Loden, who also owns Huntsville, AL-based Insight Building Inspection. Other signs of trouble: a tilting chimney or windows and doors that stick or jam, which can be caused by a moving foundation that is twisting their frames. If you suspect foundation issues, hire a structural engineer to evaluate your house, he says.

The roof

Why it’s explosive: ”Most people don’t pay any attention to their roof until they see water coming through the ceiling!” says Bill Jacques, outgoing president of ASHI and owner of American Inspection Service in Charleston, SC. But if you see drips in your living room, the problem is already far gone. A new roof could cost you “probably $8,000 to $10,000,” according to Jacques.

Snuff the fuse: “Some people say, ‘I’ve got a 20-year shingle. It’s gonna last 20 years.’ Well, no it’s not,” he says. “I would just recommend that about every five years they have the roof inspected.” One of the telltale signs of a wearing roof is coarse sand pooling at the base of gutter downspouts; the sand is most likely caused from granules of the shingles washing off. If you see a lot of it, then it’s a good idea to have someone climb higher. If you can safely get on the roof (be careful!) and the surface feels slippery, that’s another sign that the shingle material is coming off, Jacques says.

You can find evidence of additional problems under the roof. Water will usually enter the attic first. Hire an inspector, or look for stains around the chimney and the stack vents, or around other venting pipes that exit the house. Those are places where the metal flashing can fail, says Jacques. Also, look around the attic for wet and/or damaged insulation. Discovering issues early could mean the difference between repair and replacement — or a few hundred dollars rather than thousands.

The septic system

Why it’s explosive: Homeowners who have septic tanks don’t always like to think about them, Loden says. That’s a mistake. “A septic tank is gonna work until the day it quits,” he quips.

Generally speaking, a septic system breaks down the solids and liquefies them. The liquid then goes out into lines and is dispersed into the surrounding ground. But other materials also reach the septic tank — from sanitary napkins and cigarette butts to foodstuffs such as coffee grounds and grease (particularly if you have a garbage disposal). Over time, the baffles that stop the larger solids from going into the lines can get blocked. If that happens, the system can back up into your house. “That’s not a ‘check engine’ light; that’s an ‘engine failure’ light,” Loden says. “That’s when you end up with a backhoe in your yard.”

Snuff the fuse: If you have a septic tank, have the tank pumped every five years. “And, if you have a garbage disposal, you might want to have it done every three years,” Loden says. In his area of the South, the cost is “between $300 and $500,” he says. “It’s really relatively inexpensive to have it pumped. A lot of those guys will pump it and inspect it at the same time.” It’s particularly cheap when compared with the cost of digging up your yard to repair your system, which can run thousands of dollars.

Old electrical systems

Why it’s explosive: Homes built after World War II, as well as homes built earlier, “didn’t have the same requirements for power that we do now,” Loden says. Homes built today can’t have more than 12 linear feet of space between electrical outlets. This stipulation was intended to minimize the use of extension cords, which can cause fires. The electrical systems of older homes, particularly those outfitted with lots of appliances and amenities, just can’t handle modern electrical demands. Sockets can actually wear out, and switches, too. Breakers become less reliable as they age. The upshot can be a fire.

Snuff the fuse: “Probably every 20 years,” a home should have a thorough inspection of its electrical system, Loden says. Homes built prior to 1980 should definitely be looked at, “and another break point in my region — the Deep South — is 1965. There were a lot of improvements in the 1960s,” he says. You could call an electrician, although Loden cautions that “an electrician may see it as a sales call. Like any trade, they’re there to fix things.” An alternative: Consider calling an experienced home inspector.

The crawl space

Why it’s explosive: Few homeowners ever pay attention to their crawl space — that often dank, dirt-floored area beneath many homes. “And why would they?” says Jacques, of ASHI. But you should, because the crawl space is sort of a window into the belly of your home and all of its inner workings, he says. It could reveal all sorts of problems before they get bigger:

  • “You might have a leak in the bathroom under the commode or in a supply line that could be weakening the floor,” Jacques says, and you’d never know it until the day a sag appears in the floor and you need major repairs.
  • Termite damage can usually be seen there before it appears elsewhere.
  • Many crawl spaces carry the heating and air-conditioning ductwork that runs throughout a house. But when repairmen clamber about in this cramped space, over time “they might cause some damage to the insulation or to the ductwork. So you could be pumping your nice cold air into the crawl space itself,” Jacques says.

Snuff the fuse: Jacques recommends homeowners periodically spend a few minutes with a flashlight looking inside the crawl space as a precautionary measure.

He also recommends occasionally hiring a home inspector to do a more thorough examination of the space. An inspector can look for leaks in plumbing and find faulty or damaged ductwork and worrisome wiring. As well, while often not licensed to inspect for termites, an inspector usually knows enough to point out suspected trouble and recommend treatment or repair. (Find an ASHI-certified home inspector in your area here.)

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An unexpected surge: Home prices rise 5.5% in September | Rate rise in December?

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An unexpected surge: Home prices rise 5.5% in September | Construction Dive

Dive Brief:

  • Home prices across the U.S. rose 5.5%, more than the expected 5.2%, between September 2014 and September 2015, according to the S&P/Case-Shiller 20-City Composite Index.
  • San Francisco, Denver, and Portland, OR, saw the greatest year-over-year gains again this month — as they did in last month’s report — but San Francisco was the standout, up 11.2% year-over-year. The National Home Price Index, which measures all nine U.S. census divisions, rose 4.9% in September from the same month in 2015.
  • The general consensus, according to the report, is that the Federal Reserve will raise interest rates in December. But David Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices, said 30-year mortgage rates likely still won’t exceed 4%.

Dive Insight:

Blitzer said this month’s report indicates continuing strength in housing as home prices rise at more than twice the rate of inflation. “The general economy appeared to slow slightly earlier in the fall, but is now showing renewed strength,” he said.

Svenja Gudell, chief economist at Zillow, said the threat of rising prices could negatively affect housing affordability, as homebuyers today are already finding it more difficult to save up for down payments.

“Rising home values and rents alike can make saving a suitable down payment very difficult, and continued shortages in for-sale homes means even qualified buyers with decent savings are often left out in the cold,” she said.

Recent analysis of the real estate market has revealed that young people, who are also burdened with student debt, are having the significant difficulties coming up with down payments because rents are rising, as well as home prices, making it increasingly difficult to save money. In fact, the first-time homebuyer share of the market is at a 30-year low

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Home Buying Tips: How Do I Know If I Am Ready To Buy A Home?

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Home Buying Tips: How Do I Know If I Am Ready To Buy A Home? : Home : Realty Today

Home buying is a very big decision, not only does it impact your current finances, it also impacts your future budget especially if a mortgage is involved.

So how do you know if you are already ready to buy a home? Here are a few guidelines:

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1. Presence of a Stable Income

If you have a job or a business, that would make you one step nearer to qualifying for home ownership. Although of course, this money source should have been present for about 2 to 3 years for it to be called reliable. If you do not have a stable income source, it’s better to wait a bit and assess your financial future before you jump into home ownership.

2. Payment Records

The best way to know if you are ready to buy a home and spend for your mortgage is by looking at your payment records. If you have been able to pay for your current bills without difficulty, you may have the right discipline to pay for your home on a monthly basis, just as long as you have spare budget for that.

3. Outstanding Debts

If you have lots of outstanding debts, adding a new one may be a bad idea, especially if you know that adding a new bill may affect your financial status. Although of cours, a financial assessment would tell you if you are capable of adding a new monthly debt or not. However, if you have zero to little monthly dues, then it would be easier to tell that you are indeed ready for a mortgage. So as a conclusion, it’s better to decrease debts before entering home ownership.

4. DP Budget

Down payment is a big part of mortgage. So if you have not saved up for it yet, then it’s better to start with that first before mortgage application. That way, you will be fully ready to drop cash when you apply for a home loan.

5. All Additional Costs

Aside from the down payment, there are many costs that come with home ownership. So you must have saved up a good amount of cash to say that you can now own a home. Costs include: all closing costs for the initial application: and continuous home repairs.

Overall, the best way to determine your qualification for home ownership, or adding one more monthly debt in general, is to do an accounting of your income, and by asking for a pro’s advice.

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Even as the holidays approach, you still can buy a home this year | Winter is good time to buy

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Even as the holidays approach, you still can buy a home this year – The Orange County Register

With Thanksgiving around the corner, Hanukah beginning a week after, and Christmas only four weeks away, despite all the fun, food, and celebrations, if you have your focus laser beam tight, you can buy a house before the end of 2015.

But why in the world would you want to take any time away from your cherished Holiday traditions – including deep frying a Turducken, hosting a marathon game of Risk, standing in store lines at zero dark thirty on Black Friday, or marching with the Brief Case Drill Team in the Occasional Pasadena Doo Dah Parade – to buy a house?

Here are a couple reasons I can think of that might get your boots on the ground, pounding the local pavements as you deploy from your Realtor’s car, searching for the right house and getting into a time-sucking battle of counter offers until you make a deal.

Taxes: Buying a house triggers a “taxable event” that may give you some tax advantages for your 2015 return, if you close before the end of this year.

Check with your tax professional to see which of your closing costs can be deducted from your taxable income. And as far as I know, for 2016, your mortgage interest paid on your primary residence still qualifies as a tax deduction. This is another point for you to confirm with your tax professional.

Look at you – winning this year and all of next year! Motivated now?

Mortgage Interest Rates: Are you a gambler? There you are, needing a bigger place for yourself, your spouse or significant other, your kids, their kids and your sister (one definition of the modern family).

How long are you going to wait out the impending increase in mortgage interest rates, which will erode your buying power? Because as mortgage interest rates rise, your qualifying loan amount typically decreases. You might choose to leave the Risk marathon, pick up your Pre-Approval letter and go find a house to buy for your “clan.”

Motivated Sellers: If you can take your eye off the Turducken for just a few minutes and study the stats of the homes you’re actually interested in owning, you might see a trend toward a higher number of days on the market in your target zone.

Do you think the owner of a house that’s been listed for sale for 220 days might be motivated to respond to your offer, even if it is as low as your respectable Realtor will let you go? It’s worth a try.

Thirty Day Escrow: Despite the implementation of new lending guidelines, savvy lenders can and are accommodating 30 day escrows. Which means yes, you can buy a house before the end of 2015! So grab your brief case and get going!

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Staging Your For Sale | How Much Is It | Why Stage| Sell for Higher

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Staging Your Home Helps It Sell 73% Faster, On Average

Staged Homes Sell 73% Faster

With current mortgage rates low and rent on the rise, the math has shifted for the nation’s renters. It’s more affordable to own a home than to rent one in many U.S. cities.

As a result, demand for homes has been high. Home prices are up more than five percent since last year, and values have recovered from last decade’s downturn in-full.

More than 6 million homes will sell this year, and even more homes are forecast to sell in the 2016 housing market.

For home sellers, this is excellent news — it’s easier to command high prices when the housing market expands.  However, there’s another way to increase your home’s value as well.

Through a process known as “home staging”, sellers can invest a little bit of money into their sale and earn themselves a huge, huge return.

Furthermore, according to the Real Estate Staging Association, homes which are staged before going on the market sell 73% faster, on average, than their non-staged counterparts.

Click to see today’s rates (Nov 20th, 2015)

What Is Home Staging?

The real estate market is competitive and sellers should always be looking for ways to gain an edge over the competition.

One way to “beat the competition” is to sell your home on the cheap.

A lower sale price versus comparable homes will attract offers from buyers, no doubt, but you’ll net less cash than if you had priced your home at its actual market value.

Another way to make your home stand out is to make expensive home improvements prior to listing for sale.

Replacing your home’s kitchen or bathrooms can add to the property’s value, but making renovations can cost tens of thousands of dollars. There’s also no guarantee your improvements will attract buyers.

A third, and often better, approach is to “stage” your home for sale.

Many homeowners are familiar with the concept of home staging, thanks to reality television. Home staging is the art of preparing a home for sale.

Via home staging, you aim to improve the flow of your home, to eliminate clutter, and to make your home appear bigger and brighter.

A professional home stager is an expert in the art of preparing homes for sale.

And, because most buyers now begin their home searches online, having your home professional staged appropriately can be crucial toward that first step of attracting an interested buyer.

An non-staged home can present worse in photographs as compared to a staged one. Staged homes are often more likely to get a walk-through.

Click to see today’s rates (Nov 20th, 2015)

How Much Does Home Staging Cost?

There are two ways by which professional home stagers charge their clients. Some charge by the hour on a consultant basis; and others charge a flat rate for their time.

All will charge for “materials” required during the home staging process, which may include temporary furniture, artwork, and home accessories.

Estimates are provided free-of-charge.

The median cost to stage a home is $675; and, depending on the size of home and the extent of the work, fees can be lower or higher.

Don’t shrug this off. Home staging is an investment in the sale of your home. It’s not uncommon for a several hundred dollar investment to yield a several thousand dollar return.

Plus, if staging helps your home to present better online, it will be worth every penny you pay. You can’t sell your home, after all, if nobody comes to see it. This is true no matter what your home’s asking price.

A good home stager will do a cost-benefit analysis to help you understand your options. Consider everything presented.

Some Home Staging Idea Yield Big Returns

The concept behind staging a home for sale is to help present the property in its best light, figuratively and literally.

Even simple, inexpensive staging can result in big bumps to your sale price.

  • Painting: New paint can mask home odors while insanely brightening a room
  • Carpeting: New carpet — even low-grade carpet — can make a room look clean and inviting
  • Decluttering: Removing “junk” from rooms, closets, and cupboards adds immediate appeal and gives the illusion of more space

You should also make repairs or replace items in your home which are broken, worn out, or in obvious need of an update.

For example, electrical outlet covers are inexpensive and should be replaced wherever needed; as should door stops and door handles which appear to be old.

Remember: A home buyer will look at the “little things” in your home and, if those items are neglected, the buyer will wonder what else is in disrepair.

Consider re-caulking your kitchens and bathrooms, too. Bright caulk gives the appearance of cleanliness, which can help to sell your home.

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5 Mortgage Tips for First-Time Home Buyers

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5 Mortgage Tips for First-Time Home Buyers

Buying a house entails a ton of work. It is a serious commitment that merits a great deal of planning and preparation to ensure that all aspects are precisely what, where, and how they should be. Furthermore, if you are purchasing a house for the first-time, you will likely need a mortgage. In fact, before even perusing online real estate listings and attending open houses, one should audit his/her mortgage options.

Prepare Your Financial Records

Expect to produce documents, beginning with an X amount of years’ worth of income tax returns and monthly bank statements. Fortunately, you can find copies of the latter in your bank’s website. Simply log in to your account and print the Account Statement, which is usually in PDF format. Banks or private lenders will want a valid proof of income that implies the borrower’s financial stability. Any outstanding debt should also be reported.

Use a Mortgage Calculator

If you have no clue as to how much your mortgage rates will cost, using an FHA mortgage calculator is the fastest and simplest way to put a solid number on it. The calculator can identify the lowest down payment and the highest FHA mortgage rate that is allowed when buying a property. It also generates an estimate of your closing expenses.

Consult a Mortgage Officer

A mortgage officer can help you identify any unidentified and unresolved credit issues that could restrict you from getting approved for a mortgage. Moreover, a mortgage officer can advise you regarding which properties you should focus your search based on specific factors like budget and family size.

Settle Your Debt First

Wiping the slate clean is an important step towards securing a mortgage for your house. Banks and private lenders look at your debt-to-income ratio. A high ratio could raise red flags from the bank’s perspective, so it is best to settle any outstanding debt beforehand.

Develop Good Credit Practices

Late payments or insufficient payments on your loans can lower your credit score considerably. This can make applying for a home mortgage difficult and/or more expensive. Keep in mind that once an unpaid bill or loan gets sent to collections, it will take a long period of time for your credit scores to recover from the damage.

Buying a home can be an exciting process and a dream come true for many individuals and families. However, without any knowledge of how mortgage works, it can also be a financial landmine. Use the five tips above to simplify home-buying and make the right choices every step of the way.

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Rents Will Stay High for Years, Experts Say | More People Lean Towards Ownership

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Rents Will Stay High for Years, Experts Say | Zillow Blog

Like a lot of people, Mark Stevenson has had it with rent prices.

His Walnut Creek, CA apartment complex raised the rent last year, and he recently learned that his 1-bedroom unit is headed up another $351, to $1,830 a month.

“Here’s my dilemma: Renew a 12-month rental lease complete with a 24 percent mugging, or buy a condo,” Stevenson said. “I’m looking to buy now.”

That could be a good financial bet, given the findings from Zillow’s latest Home Price Expectations Survey. A panel of more than 100 experts predicted:

  • U.S. home values will rise 4.4 percent in 2015, to a median value of $187,040.
  • Median U.S. home values will exceed their pre-recession peak of $196,400 by May 2017.
  • 51 percent expect rental affordability will not improve for at least two years.

Already, renting is half as affordable as buying, something Danville, CA broker Kevin Kieffer of Keller Williams Realty hears about all the time.

“‘My landlord is getting ready to hike the rent by $200, and I’ve got to buy:’ Since 2001, I haven’t heard that more consistently than I am now,” Kieffer said.

The issue is basic economics: Demand is outstripping supply.

“Vacancy rates on rental units in the fourth quarter were down to 7 percent, the lowest in more than 20 years,” said David W. Berson, chief economist for Nationwide Insurance.

The squeeze could continue for years, said Berson, who participated in the survey.

Rents will rise as millennials strike out on their own — but not all of them will rent. “If a larger share start to move toward [buying], the rent increase will not be quite as rapid,” he said.

The situation is worse in some places than in others.

In Dallas, for example, a renter making the median household income spends 27.7 percent of it on rent. In Chicago, it’s 31.5 percent; in New York, 40.5 percent and in Los Angeles, 47.9 percent.

More than half of the survey panelists who had an opinion said the market will correct the nation’s soaring rents, requiring no government intervention.

“Uncle Sam can certainly do a lot, but I worry we’ve become too accustomed to automatically seeking federal assistance for housing issues big and small, instead of trusting markets to correct themselves and without waiting to see the impact of decisions made at a local level,” said Zillow Chief Economist Stan Humphries.

What does that mean for the average renter deciding whether to buy?

Homeownership certainly isn’t for everyone. Renters should consider how much they have in savings, how long they expect to live there and other factors — but they shouldn’t expect a break on rents.

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Should You Pay Off your Home or Invest Your Money? | See What Forbes Has to Say

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What’s The Smartest Move: Pay Off Mortgage Or Invest The Money? – Forbes

Retiring your home loan sounds like a great idea. So does investing for your future. If you don’t have enough money to do both – and a lot of people don’t – which do you go for? AdviceIQ Network member Jason Lina, lead advisor at Resource Planning Group in Atlanta, tells us how to figure that out:

Should you invest with your spare cash or pay off your mortgage early? As with most financial planning decisions, the answer is not black and white.

One of the most common questions facing families is whether to accelerate mortgage payments or to borrow as much as possible, make minimum debt payments and save for retirement.

In a world without emotional or behavioral biases where we all rationally evaluate the economics and make choices based on probability-weighted outcomes, the math points to investing over debt elimination.

Yet the mortgage decision is rarely ever this simple. It depends on your specific situation – your tax rate, portfolio allocation, credit history, propensity to save and risk tolerance.

From a purely quantitative standpoint, the economic benefit to maintaining a mortgage and investing the difference is significant for most homeowners over the past several decades.

To help understand the economics of the mortgage decision, we test two scenarios: 1) a family uses $200,000 of savings for a home, and invests each month an amount that would otherwise be the mortgage payment (less the tax deduction), and 2) a family invests $200,000 in stocks and bonds while borrowing the same amount on a 30-year mortgage.

Over the course of 42 years, the family that borrows sees a positive outcome in 97% of the time, which is important for major matters like your retirement. The only period when paying cash would be better was between May and December 1981, when the mortgage rates ranged between 16.4% and 18.5%. If we allowed for refinancing, the mortgage-and-invest approach would be favorable at all time.

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Mortgage Tips: How To Compare Mortgages From Different Lenders

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Mortgage Tips: How To Compare Mortgages From Different Lenders : Home : Realty Today

Buying your new home is a very big financial step, especially if a mortgage financing is needed. The best way to determine if you are getting the best mortgage deal, is to look around. But with so many lenders to choose from, you may find it tough to pick one. So here are some tips in comparing mortgage deals from different lenders so you can be one step nearer to choosing a good  mortgage provider.

Compare Interest Rates

The biggest factor in every mortgage transaction is the interest rate, so this should be your first basis in looking for the best lender. While most providers tend to compete when it comes to rates, you can find that there are different discounts offered by the lenders basing on your credit history. Keep in mind that lenders can also adjust their rates depending on your mortgage term and how much down payment you are willing to drop.

Closing Costs

While your main focus is probably on the monthly payments, you may also wanna calculate how much you will spend initially. The closing costs are necessary to complete your mortgage application and every lender may have different sets of fees that you need to pay for, so the closing costs can vary. Make sure that you include these costs when comparing mortgage deals.

Early Payment Penalties

Lastly, what you wanna do is to watch out for early payment penalties, as these can be a major source of headache later on if you want to get your loan paid off faster. The best mortgage is the type that allows you to pay for the principal at any time without being penalized. But depending on your other criteria, you may need to do a more thorough research before you can find a deal like this.

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