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Dick and Kathy Littleton
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Prudential PenFed Realty
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Archive for February 2012

Five Home Inspections You Would Rather Not Flunk

Monday, February 27th, 2012

The first thing a high school girl does when getting in a vehicle is to check her makeup in the mirror and the radio stations.

By the same token, most homebuyers are just as superficial when looking at a house to buy – checking the neighborhood for big dogs, garage bands or good lighting and perennials – the homeowners’ equivalent  to makeup and radio.

With a few simple tests and inspections before buying  a house suggested by the Environmental Protection Agency and Home Inspectors, home owner wannabes can be home free – with minimal cost and effort – in a family-safe environment of their choosing.

Before getting to the list, here is a quick mention of methamphetamine. Tests for meth production are not necessary for most houses and are not required by most local law enforcement unless there were reports made to police.  If a report was made it will be logged with the city, and the real estate agent is required to disclose that information to you.

No. 1: Radon

Naturally occurring Radon gas has been identified as the second leading cause of lung cancer in the United States. It is first on most lists of things to check when moving into a previously owned house.  It usually enters the home through cracks in the foundation.

The EPA estimates that one in 15 homes in the United States has a high level of radon.  Real estate agents, contractors and home inspectors can help you test for radon, and short-term tests for homeowner use are available at local home improvement stores.

“Open communication with neighbors and an Internet search will help you glean much helpful information as radon is often a problem consistent from property to property in a given area.” said Doug Seal of James L. Hacking Construction.

Options may be a simple as sealing the basement floor or installing simple ventilation.

No. 2: Foundation

Cracked foundations are second on the list for two reasons. Left unaddressed, they can be a nightmare in addition to admitting radon.  Cement and cinder blocks crack over time, especially if they weren’t sealed on the exterior side – which hasn’t been standard procedure until the last few years.  Leaking water can lead to both structural threats – rot and termites – and health issues – mold and mildew.

Though there are a number of sealants that can be applied from the inside, having a lot of hydrostatic pressure from the outside of the foundation will render any special coatings meaningless.

Previous water damage is not necessarily a black ball for the house.  There are things that can be done to steer water away and into new drainage, and some well-planned landscaping can do the same.  But moisture in the house spells trouble, and a thorough walk around may save you time and trouble in foundation repairs, replaced carpets and wall coverings, as well as mold damage.

Home mold tests check for dangerous black mold, but bear in mind that keeping a nose out is the best defense.

No. 3: Lead Pipes/Paint

Lead pipes and paint are third.  Lead pipes were replaced in the late 1940′s, and the earliest galvanized steel pipes which came next still contained lead for a few years, until manufactures changed over to zinc.  Much of the material used to join copper pipes as recently as the mid 1980′s contained lead as well.

The easiest way to take care of water in lead pipes is with a filtration system, and the easiest way to test for lead in the water is to grab a simple test.

Vintage homes, ones built before 1978, will have lead-based paint.  Whether on interior or exterior surfaces, it’s not harmful unless the paint is ingested, but those eating walls or chewing on window sills are generally children.

The danger is when cured lead paint flakes, peels or is chewed off of outside surfaces, where particles can be ingested or contaminate a vegetable garden.  The interior paint has probably been painted over more than a few times and is well encapsulated in a Latex-based product.

When remodeling, contractors generally prefer to simply remove lead paint-covered exteriors rather than attempting to strip layers of lead.

A simple paint chip can reveal the nature of the paint.

No. 4: Asbestos

Asbestos is fourth.  Asbestos was commonly used as insulation for boilers, furnaces, and water pipes leading from radiators.  It was also used in vinyl flooring, cement-and-fiber siding, and composite roofing materials.

The health threat from Asbestos comes from the softer form found in insulation. When it is disturbed, it sends up a cloud of dust toxic when inhaled.  When you see a white cloth covering ductwork, it is safe to assume that it’s asbestos and is not safe to remove without a licensed professional.  A quick check of the homes’ construction and a talk with neighbors can help you confirm the presence of Asbestos, and a realtor worth his/her salt can as well.

No. 5: Thermal Inspections

Thermal inspections dramatically illustrate the differences between electrical wiring in a new home and an older home by use of colorful photos.  Older home wiring was not typically grounded- easy to tell as older meant two prongs and newer means three.

Also, the electrical box in your grandpa’s house, or an older one you are wishing to purchase had either 60 or 100 amps, where modern homes have 200 – the new standard.

Grandpa’s house was probably not fitted with a Ground Fault Interrupter circuit, which is responsible for cutting the power if anything plugged into the current contacts water – important for bathrooms and kitchens.

A simple infrared scan can point our hotspots where the power is overloaded before anyone gets burned.

Article provided by Davison Cheney

Do You Know How to Avoid the Four Most Common Mistakes Made When Buying a Home?

Tuesday, February 21st, 2012

Buying a home is one of the biggest purchases of your life and you want to be cautious that you don’t make any mistakes that you’ll regret later on.  Here are the top four most common mistakes made when buying a home, along with tips on how to prevent yourself from doing them or how to recover if you have already made them.

Mistake #1: Not Getting Pre-Approved  The biggest mistake made by homebuyers and is the first thing you should do if you plan on buying a new home!

How to Prevent: Easy, get pre-approved! By getting pre-approved, you’ll be able to search for homes that are affordable for you, while also putting you in a strong negotiation position when you make an offer.

Mistake #2: Not Using a Qualified Agent  If you’re not sure why you should use a buyer’s agent, click here.  Ask friends, family or your loan officer for recommendations of who to use.

How to Recover:   It’s never too late to get an agent, even if you’re already at contract, they can help with all the legal and negotiation aspects.

Mistake #3: Not Getting a Thorough Inspection Getting a thorough inspection is the only way you’ll know you have real knowledge about the house.

How to Prevent: Hire a licensed home inspector.  They take the emotion out of inspecting a home and give you a real, critique about the home you’re thinking to purchase.

How to Recover: If you didn’t hire a home inspector, try to get a good home warranty in case any issues do arise in the future.

Mistake #4: Focusing on Wants, Not Needs This mistake is usually made by first-time homebuyers, but can happen to even the most experienced homeowner.

How to Prevent: Make a list of must-haves and refer to it when you’re house hunting.  Make sure it is a list of NEEDS not WANTS.

How to Recover: If you’re in negotiations and realize you made this mistake, try using provisions of contract to either get our of the deal or fix the issues before you close.

Article provided by Ricardo Brasil

Steps on Buying a House – Tips on Inspecting Properties

Friday, February 17th, 2012

You want to prevent yourself from any big surprises when you’re thinking of a brand new property purchase, so contracting a specialized inspector for houses will minimize much of the stress regarding your potential property early on in the buying process.

However, it is not required to have an actual house inspection before signing the preliminary contract, so it’s probably best to understand as many things as possible about the condition of the home by having a genuine talk with the seller as well as doing your own inspection at which you could see any fundamental architectural damages and other potential damages.

A lot of vendors will probably be amenable to having you examine the house well before you sign the preliminary sales deal, and this might give you some leveraging influence when you are bargaining the closing cost.  The book “Smart Consumer’s Guide to Home Buying” (Barron) encourages all future homebuyers to prepare on inspection guideline and take note of whatever issues as well as areas of concern before the contract signing.  The authors of the book explain that, “If you are thinking about buying a house that will need renovation or upgrading, the more value will be derived from your mini-inspection.”

Create an inspection guideline for a home inspection report so that you can perform a thorough inspection of the real estate and also note down the overall look of the said real estate.  Below are a handful of the very important areas for you to check:

Learn about how old the property already is – you’ll need to ask the seller exactly when the house was built, what types of renovations or new construction took place on the home site, and also ask for any blueprints on hand.

Examine the foundation for potential problems – be on the lookout for big breaks or prehaps noticeable water conditions in the property or in the basement. Inquire regarding flooding issues and potential problems caused by weather that have taken their toll on the home in the past.

Examine the details of the house, especially the interior, for potential problems and other damages – you will need to be sure that all of the doorways do not have problems and also that all the walls are still stable and well-grounded. Keep an eye on any visible cracks or deterioration and make sure you also take a picture or two of anything that particularly stands out from the rest.  You will need to examine potential problems of odor or molds and check that all water pipes are crystal clear and funtioning.

Check out the exterior for damages and problems – do all the doors and windows have adequate insulation? Are they functioning properlty? Be sure that all the doors, windows and sidings are free of chips as well as any notieceable damages.

Review heaters and air conditioning appliances – inquire with regards to the average cooling and/or heating costs over the last few months, and try to find out how long it has been since the equipment were installed.  You have to know these things as sometimes, you might have to buy a new heating and air conditioning systems.

Besides the actual inspection report, you may consider having images or maybe short videos using a digicam to help you to review everything in more detail later on.  This kind of extra coverage and footage could also provide you an upper hand in the course of the negotiation process with the sales agent.

Article provided by Alex P. Anderson

What Is A Buyer’s Agent Used For?

Friday, February 10th, 2012

Q: I found a place that is online with a Realtor, but it says to contact a “Buyer’s Agent” instead of the listed Realtor.  Why? What does this mean? -Shell, Las Vegas, NV

A: Having a good buyers agent is key. They can walk you through the buying process, at no cost to you.  They will be able to be the giver of advice, schedule appointments, explain to you about neighborhoods and properties.  They will negotiate on your behalf and write up contracts for you.  It’s a great service, and it’s free.  Why not take advantage of it?  Matt Laricy is a Realtor with Americorp Real Estate in Chicago, IL.

A: The listing agent has a fiduciary duty to the seller first and foremost.  It would be in your best interest to get a Realtor (who under these circumstances would be the Buyer’s agent) to represent you.  Think about it this way, if you were getting sued, would you hire the same attorney of the person suing you? Of course not.  You need someone who will fight for your interests/rights diligently.  Alex Cortez is a Realtor with Wailea Village Properties LLC dba/Island Sotheby’s in Kihei, HI.

A: Every person is entitled to their own representation.  A buyer’s agent is an agent who works with buyers, not sellers.  The listing agent’s first responsibility is with the seller.  If you use the same agent, it is considered dual agency. In other words, that agent will represent both sides.  Some question whether an agent can represent both sides fairly.  Consider a lawyer representing both sides in a court room.  It could be a conflict of interest.  Most buyer’s agents do not cost the buyer a commission since most are paid by the seller.  Beverly Houlier is a Realtor with Hilltop Chateau Realty in San Diego, CA.

A: You are not required to use the listing agent to see any house. It is almost always to your advantage and will almost never cost you anything to have your own agent.  This is a buyers agent.  It is a form of representation-any agent can act as one.  To take it a step further, you could look for an exclusive  buyers agent.  They specialize in buyers and do not represent sellers at all.  Linda Walters is a Realtor with Sage Realty LLC in Wayne, PA.

A: A buyers agent also called “selling agent” is a real estate agent that shows homes and matches buyers to homes.  They work hand-in-hand with “listing agents” who have a contract with a person or banks to list their property on the market.  So, if a property is on the market in NV for $100,000 usually the total commission the realtors would receive would be 6% (3% goes to the listing agent for listing it on the MLS, 3% goes to buyers agent for finding a buyer to buy-you).  In my book REO BOOM I discuss the difference between a “listing agent” and a “buyers agent” and how the listing agents control some of the best deals in the marketplace.  Aram Shah is a Realtor with Florida Capital Realty in Doral, FL.

A: A buyers agent works only for the buyer. That means the agent cannot show you any of their own company’s listings.  A dual agent is able to show ALL listings.  I suggest you interview a couple of different Realtors who are FULL TIME in the business and go with the one who you think is a good fit.  Maria Picardi-Kenyon is a Realtor with Re/Max Tri County Realtors in Hamilton, NL.

Things to Consider When Buying a Fixer Upper

Monday, February 6th, 2012

  Anytime that you purchase a home, whether it needs love or if it is move-in ready, you already need to be considering the resale of that home, no matter what your plans for the future might be.  This will better enable you to make the right choices at the right time.  Making good buying choices will help you make good selling choices later, and you wouldn’t want to make a purchase that will not return your investment plus a profit later.

  The Perks

  The price of a house that needs some attention is one of the main draws behind purchasing a fixer upper.  A large number of buyers are looking for something that is move-in ready so the competition for fixer-upper properties won’t be as high.  Many people are not willing to look beyond a building’s flaws to see its amazing potential, and sometimes you can find killer deals on overlooked homes because of some torn up carpet and a few broken windows.   There is also the ultimate advantage of being able to transform the home with your own ideas and visions, giving it the character you’ve always wanted in a home without spending a fortune.

The Downsides

  Since the price of many fixer uppers seem so affordable up front, many people focus on “today’s costs” and don’t think about the costs of tomorrow.  While many common issues with fixer uppers are relatively inexpensive to solve, some are not.  Painting, replacing carpet or adding a deck are pretty affordable, while replacing the HVAC systems or re-roofing can get pricey.  Having inspections performed by professionals is never a bad idea before you buy, but make sure you look for experienced inspectors, as they are not regulated by state.

Location, Location, Location

  It stands true no matter how you look at it.  Location is the first thing to consider when purchasing any home whether it’s move-in ready or a fixer upper.  Buyers will be more interested in appealing neighborhoods, than the character of the home.  Fixer uppers in nice neighborhoods that are owner friendly will always sell more successfully than those that are close to industrial area, or less accessible to schools, and other necessities.  Take the neighborhood’s growth into account when you purchase as well.  If it is an area where new housing developments are being built there will be a lot of buyers in the area in the future.

Layout

  Consider the layout of the home carefully.  What are its biggest selling points?  Buyers that have small children may not want to purchase a home where the bedrooms are too far away from one another.  Also, consider the size of the home.  Buyers looking for a certain size home may buy something larger, but rarely buy something smaller than what they had in mind.  Kitchens that have more than one entrance are a selling point, as is homes that open to a common room with multiple entrances.

Article provided by Linda Hare

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