Archive for April, 2009
How Firm Is Your Foundation?
April 29th, 2009 categories: Real Estate News, Relocating
So, you’re looking at a home you’re considering purchasing, and you’ve found a couple of cracks in the home’s foundation.
While we might think this is the exception, it is often the case. We’ve found a perfectly good home, but we have questions about the integrity of the cement foundation. Frequently, the cracks are small, but, every now and then, the cracks are much bigger. Which foundation cracks pose a problem? All of them? Any of them?
First, concrete cracks sooner or later. Yes, all concrete cracks. Many cracks are too small to see without the aid of good light and close proximity. However, in most cases, for cracks in excess of 1/4 inch, further investigation is probably warranted. A good source for expert advice is either a home builder/contractor, or, more specifically, a structural engineer. These professionals can ascertain how serious the foundation problem is.
Secondly, there are many factors that cause concrete to crack. These include:
- Settlement – foundation settlement occurs when ground around the foundation “settles” or shifts, caused by tension or stressors in the environment.
- Corrosion – When the steel rebar corrodes inside of concrete, it expands and may cause the surrounding concrete to crack.
- Water – water lines that leak can result in soil movement/erosion beneath the foundation. Without the support of the soil, the foundation often cracks.
- Drying Shrinkage – the combination of concrete and water eventually hardens and cures. The drying out of the concrete results in shrinkage, and frequently, cracks.
REPAIRING CRACKS
- Minor Repairs
Small cracks are easily repaired with off-the-shelf crack fillers from your local Lowes, Home Depot or Walmart. Many opt for hydraulic cement for filling. Their purpose is to seal the crack to prevent moisture and air from moving into the concrete, causing more cracks.
- Major Repairs
If you’ve decided to take on the job of repairing good sized cracks, one of the most popular repair methods is the use of polyurethane foam. This foam is injected into the basement crack in a liquid form. This allows a gentle and slow filling process of the basement crack that will completely fill the crack. The polyurethane foam forms a strong bond to the concrete. This is often the method many choose for the repair. Due to the foam’s expansion and penetration, the seal that develops is about as fool proof as it gets. However, if you’re not one willing to Do-It-Yourself, then, please call an expert. Remember, large foundation cracks are serious and can result in major damage to a home. They aren’t to be taken lightly.
A structural engineer who specializes in residential foundation issues is an important resource to use for questions concerning major foundation problems. Unlike a salesman, the engineer has no product to sell. Additionally, their expertise is exactly what’s needed to identify the cause of the crack, and subsequently, to identifify the proper method of repair.
Home foundation faults are common. Most faults are minor and are simply a result of the settlement of a supporting structure like soil or another supporting element. These cracks are frequently easily repaired using off-the-shelf fillers. However, sometimes, the repair requires more than just a simple fix. Since homes are built from the ground up, there’s nothing more important than having a firm foundation. Without it, you’re just asking for trouble.
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Custom Made For Vets
April 22nd, 2009 categories: Finance, Real Estate News, Relocating
Locating pertinent information on loans, and specifically, home loans, is an exercise every home buyer attempts in preparing to buy a home. For military personnel and veterans, a Veterans Administration (VA) loan is often the vehicle of choice. But, is it the best choice for Vets?
The folks at VAMortgageCenter.com do an excellent job of providing veterans with the information they need to make an informed decision about VA loans and their value. As a matter of fact, they’ve provided me with a brief article outlining the benefits of the loans. Using accurate, factual data is vital to making an informed decision. And, that’s what the article below provides:
Whether you’re getting back from deployment and you’re ready to make that move from the barracks to homeownership, a little one has arrived and your family needs more space, or you’re a seasoned homeowner and you’re looking for the best loan product to fit your needs, the VA Mortgage Center. Com will help you secure affordable financing with a VA loan.
The VA loan is the best product available for active duty members and veterans purchasing a home because of its No-Money down requirement, one of the last mortgage products available to offer such financing. In addition to No-Money down, the VA Loan offers:
è Relaxed Credit Requirements
è Minimal out-of-pocket expenses
è No Private Mortgage Insurance
è No Pre-Payment Penalties
è VA Loans are Assumable
You can also use the VA Loan to refinance your current home, regardless if you’ve used the VA Loan before. Examples of using the VA Loan to refinance:
è Streamline a current VA loan to lower interest rate
è Consolidate a conventional mortgage or second mortgage into a VA Loan
è Take out cash from home equity to eliminate other debt
è Take out cash from home equity to make home improvements
è Transition from an Adjustable-Rate Mortgage into a Fixed-Rate VA Mortgage
While the VA Loan is designed for Active Duty Service Members and Veterans, there are eligibility requirements:
è 24 Months Active Duty
è 90 days of service (wartime) 181 days of service (peacetime) for veterans who served after Sept. 15 1940
è National Guard members completed six years of service
è All members must have been discharged under conditions other than dishonorable
VAMC, one of the nation’s leading VA Lenders and an A-Rated company by the Better Business Bureau for its overall dedication to customer service and ethical lending practices, has a skilled team of VA Specialists who will take you through the VA loan process.
“I could not have asked for a better experience then the one you and VA Mortgage center has given me. I do believe your service is the reason I got into my home and without it I could not have bought a house… Thank you for serving the American Veteran.”
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Aren’t Foreclosures Easy To Buy?
April 18th, 2009 categories: Military Installations, Real Estate News, Relocating
Have you ever heard the bar bell? The one that rings around closing time for last call, and as a reminder that it’s time to pay the tab. In the U.S., the bell is oftentimes used to signify a generous tip.
In the home foreclosure business, there aren’t any bells to ring, but there are an abundance of great deals to be had, if only ready, willing and able buyers have the necessary tools to avoid the pitfalls.
There are a number of roadblocks to purchasing a foreclosed home. They include:
- The Bank handling the property. As most Realtors can attest, this is THE most difficult hurdle in the transaction process. The bank is THE BIG DOG. They literally control the entire transaction. Unfortunately, when, what, and how they process a foreclosure is less than transparent. When they speak, we all listen attentively.
- Many agents haven’t been trained in the finer points of listing or buying REO (Real Estate Owned – by banks or lenders) properties. As a result, one side of the transaction never gets any traction, and unfortunately the clients are left holding….nothing.
- Buyer expectations aren’t realistic. As I’m reminded from time to time, “Disappointment is the result of expectation. If you have no expectation, you won’t be disappointed.” Foreclosed properties can be a great deal, but they are purchased, “As Is”. According to the Northern Virginia Contingencies/Clauses Addendum to the Sales Contract, that meaning is fairly clear:
“The seller makes no representation or warranty, express or implied, as to the condition of the Property, or any equipment or system contained herein.”
Pretty clear, don’t you think? Unfortunately, many purchasers don’t feel that way. Despite the “As Is” clause, they want guarantees. So, many resort to home inspections as a condition or contingency in the contract. While many of these begin as “for informational purposes only”, before it’s all over with, they’re used as leverage in the transaction. And, the good news is, as this chapter in the mortgage mess has evolved, so too has the attitude of many banks in attempting to get these transactions closed. What banks often refused to repair/replace two years ago when the mortgage dominoes began to tumble, are now often given a thumbs up when requested by the purchaser. So, as they say, you never know unless you ask.
4. Lastly, many will argue that today’s market is the polar opposite of what it was in 2003-2005. However, there is one striking similarity to those days that makes buying a foreclosure a challenge; multiple offers. Everybody wants a bargain, especially investors. So, not only do prospective home buyers have the normal ”other buyers” to compete with, they also have the bargain hunter experts, whose FULL-TIME job is to purchase distressed properties.
So, facing all those challenges, how does a buyer compete?
- The best way to buy a home is to use someone who has the expertise. Yes, a real estate agent is probably a good start. But, how about one that’s had some experience or training with foreclosures and short sales. Both of these types of transactions require more than a passing understanding of what those terms mean.
- Catch the properties AS SOON AS they hit the market. If you don’t, another buyer will.
- Trust your agent. If you’ve done your due diligence in selecting your agent, and discussing your needs, then leave it in their hands. It is what they are trained to do!
- Go in with your eyes wide open. It not only improves the odds of success, but minimizes any unnecessary worry and disappointment.
Are foreclosed properties easy to buy? If you’re fortunate, perhaps. But, more than likely, if it’s a bargain property you’ve got your eyes on, you’re not the only interested party. So, do your homework first. Have realistic expectations. Enlist the aid of a knowledgeable, experienced agent that’s worked some foreclosed property transactions. And lastly, you might want to get ready to rumble!
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Dropping Into Your Lap
April 4th, 2009 categories: Market Trends, Real Estate News, Relocating
“Doubtless one man’s loss is another man’s gain.”
Walter Scott, 1821
Yesterday’s New York Times featured an article on the influx of first time homebuyer’s who’ve taken advantage of the current real estate market, which is flush with foreclosured homes for sale. Of course, “foreclosure property” normally means a home priced at a bargain.
The article highlighted a few bright spots in the evolving housing market:
1) Many families, who previously rented, are now finding bargain prices coupled with rock bottom interest rates, resulting in increased purchases.
2) The addition of the first time homebuyers tax credit of $8000.00, coupled with bank incentives (like closing cost assistance for buyers) on listed foreclosed homes has encouraged many to purchase a home for the first time.
3) Additionally, many buyers ar taking advantage of current Federal Housing Authority loan requirements which allow for lower credit scores and a down payment of 3.5 percent of the purchase price of the home.
For many of us in the real estate industry, the Times article is anything but surprising. The price depression is something you’d have to be blind to miss. Coupled with low interest rates, and now, prime buying season, those interested in purchasing a home, who may have been on the sidelines waiting for the dust to settle, have decided it’s time to get in the game. Perhaps they’ve heard the old adage; “Never look a gift horse in the mouth.”
If you’re one of those on the sidelines, don’t you think its time to get moving? Believe it or not, the great deals won’t be there forever.
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