Archive for the 'Repairs' Category
When It Pays To Get the Thumbs Up
July 31st, 2009 categories: Real Estate News, Repairs
Have you ever seen that old Maxwell House commerical? It’s early morning, and there’s a couple sitting on their back deck, enjoying each other’s company while enjoying a cup of coffee. Haven’t we all enjoyed similar moments? A cool morning or evening on the deck, with our favorite beverage, enjoying the relative peace and quiet, and beauty that surrounds us.
The deck is one feature many home buyers are looking for when shopping for a home. One of the attractions of the Stafford and Fredericksburg area, and Virginia as a whole, is the temperate climate. Outside of a couple of Winter months, our climate is quite comfortable. So, spending time outside, on the deck, just makes sense, whether its lighting up the barbeque or simply another occasion, relaxing with friends. For many home buyers, if the home they purchase doesn’t have a deck, they’ll build one before too long. But, sometimes, in making plans for the deck addition, homeowners forget the most important consideration of all – obtaining the required permit from the county.
Whether adding an room or a deck to a home, Stafford and Spotsylvania counties require a buidling permit. Each of the counties provide clear guidance as to what their permit requirements are on their county’s website.
With the advent of these online resources, homeowners know exactly what they need in order to have their decks built properly. But, as the above “Deck Details Policy” indicates, before beginning with the deck work, ensure the contractor you’ve hired is properly licensed. The Virginia Board for Contractors web site is a good place to begin your search for a licensed contractor. In order to obtain a permit, the contract MUST be properly licensed.
Whether adding a deck or another room onto your home, you’ll need a permit, and the contractor needs to follow the appropriate building code requirements. Licensed contractors are well aware of these requirements. Without these, you’ll not only find it impossible to get these parts of the home insured, but you’ll also face difficulties when it comes time to sell.
Homeowners sometimes fail to report home improvements to the county’s assessor to avoid increases in their home’s assessed value, and, what they are taxed. But, they’ll have to face the music when they decide to sell. As part of the property diclosure process, this improvement, and the lack of permit, which are material facts, will need to be disclosed. A good buyer’s agent will do their best to require the seller to produce the permit before they’ll agree to sign for the house.
So, while you may look forward to those morning or evenings, enjoying a little “down time” on the deck, do yourself a favor, and make sure that deck is permitted first.
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Hazardous Waste and You
September 23rd, 2008 categories: Real Estate News, Relocating, Repairs
Each year, between the end of summer and the Columbus Day Weekend, we try to do a little house cleaning. And, apparently, so do others. While a garage sale regular I’m not, plenty of my neighbors are. And, for all of us the intent is the same; get rid of stuff we no longer need. But, what do we do with that left over toxic or hazardous material we have sitting around? You know, those old paint cans, cleaning solvents, fertilizer, and other chemicals that have been sitting in the garage or shed for years.
Both local area counties, Stafford & Spotsylvania, set aside dedicated time each year for its residents to get rid of this kind of waste. Stafford’s hazardous waste collection is scheduled for the weekend of October 17-18. Spotylvania’s is September 27th. In both each cases, the event is for county residents only. According to local gudelines, hazardous material is any “that can catch fire, react or explode when mixed with other substances, or is corrosive or toxic.”
Take advantage of your local waste dumps and landfills. They’ve provided us with the opportunity to get rid of some of that toxic material we’ve left over and will probably never use. Now, if I can just get my teenager to clean his room, we’ll be set for the Columbus Day holiday. It may mean an extra toxic waste run to the landfill, but it’ll be well worth it!
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What’s “short” About A Short Sale – Part II?
June 29th, 2008 categories: Finance, Market Trends, Real Estate News, Repairs
So, despite the promise and benefits of a “short sale“, why do they seldom work? Why does there seem to be such a huge disconnect between the seller and their real estate agent, and the lender?
Unfortunately, there are a number of reasons for the general failure of the short sale process.
1) One of the biggest obstacles to a successful short sale is the lack of communication between the listing agent and the lender. Coordination between the real estate agent, who has listed the property, and the lender, or the asset manager handling the property is crucial for a successful transaction. Communication between the asset manager and real estate agent is problematic at best. In almost all short sale cases, attempts to contact the lender’s loss mitigation department or asset manager are rarely successful.
As any agent whose handled a short sale transaction will tell you, in a transaction whose success depends on coordination, frequent and easy communication with the asset manager handling the transaction is rarer than rare. Despite agent’s best efforts, it’s normally a struggle (and that’s putting it midly!) to contact the lender’s point of contact. Building this bridge between the listing agent and the lender is crucial to the success of any short sale. Without this relationship, the short sale is destined to be Dead on Arrival (DOA).
2) The asset managers are overwhelmed by their case loads. Like most of America, lenders were blind sided by the subprime mortgage mess, and are in the crisis management mode attempting to stop the financial bleeding. In other words, the lender’s employees, especially those in loss mitigation, are peddling as fast as they can.
3) The real estate community, much like the lenders on the other side of this short sale joy ride, are, in most cases, lacking the preparation needed to properly market the property in coordination with the lender. To begin the process of coordiation with the lender, the listing agent must compile a full package with supporting documentation from the seller. Rarely, if ever, will the lender even begin to listen to an agent without a complete short sale package in front of them. This short sale submission package should include, among other things:
1. A synopsis of items enclosed.
2. Completed financial disclosure.
3. A hardship letter, preferrably hand written. Remember, this the opportunity to relay the seller’s “story” to let the lender know why they’ve missed payments and won’t be able to make them in the future.
4. Purchase contract.
5. Net sheet or HUD1.
6. Proof of income for the last two pay periods.
7. Copies of last two bank statements.
8. Copies of last two years tax returns with W-2s and 1099s.
9. Third party authorization form.
Some additional items that may be helpful include, a Broker Price Opinion (BPO) or Comparative Market Analysis (CMA), neighborhood foreclosure stats & proof of active listings in the area that are priced low but aren’t selling. All of these will assist you in presenting the seller’s case to the lender.
Pricing the property correctly is another must. A simple method is to take the low end of the comparables, and price the property $10,000-$20,000 lower. It’s important to price the property to peek interest, but the pricing needs to be realistic as well.
An opportunity for a short sale is beneficial to both the seller and lender. For both parties, it’s an escape from a difficult financial predicament. The seller unloads a property they can no longer afford, as does the bank, with minimal damage to the credit rating they need for future investments. The bank, unlike a foreclosure, can avoid managing a property, and unload one on much better terms than if foreclosed.
With the attractions of the short sale option, we can only hope the practice gets much better before the window of opportunity for this “bargain” creeps closed. There’s work to be done on both sides of the transaction. For lenders, establishing a routine and regular avenue of communication with the real estate agent listing the property is a necessary first step. For agents, taking the time to learn the steps necessary to comply with lender requirements might make the coordination process on the other end a bit easier to navigate. In either case, progress is measured in dollars, not finger pointing. So, what are we waiting for?
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What’s “short” About A Short Sale?
June 24th, 2008 categories: Market Trends, Real Estate News, Repairs
During the past couple of years the real estate community has been up to its proverbial eyeballs with short sale properties. But, for many, at first “blush”, the term short sale didn’t mean much other than another transaction opportunity with real estate. However, as many Realtors & their clients alike have learned, dealing with a “short sale” can be anything but short.
According to REALTOR.ORG, a short sale is, ”when the net proceeds from the sale of a home are not enough to cover the seller’s mortgage obligations and closing costs, such as property taxes, transfer taxes, and the real estate practitioner’s commission.” In other words, the proposed sales price is short of what is required to pay off the home loan or mortgage. You might ask, “why would the bank/lender allow a home to be sold for less than what is owed. To put it simply, short sales are normally done prior to a home going into foreclosure in order to save money. Yep, to save money. According to the Virginia Association of Realtor’s special counsel, Lem Marshall, outside of the loss incurred to pay off the mortgage, lenders spend approximately $65,000 dollars on foreclosed properties. So, as you can see, to begin with, it makes sense for the bank to consider a short sale in order to head off further expenses resulting from the expenses of a foreclosed property. But, the benefits of a short sale aren’t simply financial. There are other benefits as well.
In the communities plagued with foreclosed properties, neighborhoods often begin to go downhill in a hurry due to the lack of attention to the foreclosed properties. Since these properties are no longer occupied, they are often neglected and rarely properly maintained. Often, they are vandalized.
Remember, banks aren’t in the property management business, nor do they want to be. But, unlike foreclosures, in the case of a short sale property, the occupants inhabit the house, and are there to look after the property. While they may have ceased making their mortgage payments, in most cases, the owners or tenants remain in the house until it is sold, or when repossessed by the bank in the case of a foreclosure. A short sale is also in the best interest of the home owner.
Homeowners facing a possible foreclosure can avoid the stigma, embarassment and credit problems a foreclosure entails. By opting for a short sale, homeowners not only can remain in their home, but the damage to their credit score is small compared to the penalty they face if their home is foreclosed on. Most lenders report “settled” upon successful closing of a short sale instead of the term “foreclosed.” Recent reports indicate the owners who complete short sale proceedings (who have missed 2-5 mortgage payments) have their credit score affected by only 30 to 60 points. Conversely, for those suffering through a foreclosure, their credit score will be penalized 140 to 200 points, or more. That’s a huge difference. So, as you can see, a short sale in lieu of a foreclosure makes sense for all parties involved. But, if that’s the case, why are so few short sales successful? Why is it so difficult to get to a Win-Win scenario? Who is to blame? More importantly, what remedy is their for a process designed to prevent property foreclosure, yet rarely does? We’ll leave those questions for Part II of our short sale discussion.
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Your Home Inspector – More Like Fred Flintstone Than Sherlock Holmes?
June 4th, 2008 categories: Military Installations, Relocating, Repairs
Whether or not a Home Inspection is worth the expense, is an issue that usually prompts a good discussion among prospective home owners. According to some, like a recent client of mine, the inspection is an unnecessary expense that does little more than make a buyer “feel good” about their purchase. But if that’s true, if home inspections are nothing more than a false sense of security, why do some many home buyers, or home sellers, get them done? Are Home Inspections worth it?
First, in any service industry, some professionals are better than others, more competent, more thorough, more professional. Last year, I worked side by side with a home builder who never put down his tools until the job was “just right.” Calling him a “perfectionist” would be an understatement! The same goes for home inspectors. So, make sure the one you hire comes with recommendations – good ones. If you choose to go it alone in choosing an inspector, then make sure you ask some important questions. How long have they been in the business? Are they licensed and certified? If so, with whom? National Home Inspector certification through organizations like the Amercian Society of Home Inspectors (ASHI), National Association of Certified Home Inspectors (NACHI), & National Assocation of Home Inspectors (NAHI), requires their members to adhere to strict standards of practice or conduct.
Second, while home inspections aren’t a perfect science, they are the primary means a buyer protects themselves from getting stuck with a “lemon” when purchasing a property. The Home Inspection Contingency in the Virginia sales contract is designed to protect the buyer. Based upon the Home Inspection, the contingency allows the buyer to:
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Request the seller make the needed repairs
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Re-negotiate the price
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Void the contract
The price re-negotiation is a direct result of the discrepancies found in the inspection. But, at the end of the day, if seller and buyer cannot resolve what needs to be done, then the purchaser can void the contract and move on to their other home choices.
Third, in today’s buyer’s market, the home inspection shouldn’t cost the buyer a thing. With the glut of homes on the market, and home inspections running $250-$350, the sellers will probably be more than happy to pay for the home inspection in order to ratify a contract.
Few things can affect the value of a home more than property discrepancies found after the fact. For many buyers, the expertise required to find these hidden problems are best left to a qualified Home Inspector. 
They have the training and detailed experience necessary to detect even small problems before they become your problems. A certified professional is worth their weight in gold when it comes to ensuring a home doesn’t have any hidden surprises. So, take your time and do the necessary research before choosing your Home Inspector, because the last thing you want is one that reminds you more of Fred Flinststone than Sherlock Holmes.
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Is Your Home Fit for Summer?
May 27th, 2008 categories: Repairs, Spouse Stuff
With summer already here, have you done the prep work necessary for the upcoming heat and humidity? If you’re like me, probably not yet, but, it’s certainly on the “to do” list. Preparing your home for the warmer temperatures is not only practical, but can save you a few dollars along the way.
- Take a look at your cooling system. Make sure your air filters are changed. While its recommended that this be done monthly, if you haven’t done so, do it now.
- Test your air conditioner. Before temperatures get too hot, make sure your unit is working properly. Test the system by turning it down to activate the air conditioner. If it doesn’t come on, check for tripped circuit breakers first. If you can’t identify the problem, call an air conditioning repairman. While no one likes repair bills, catching the problem early is certainly better than facing the same problem in the middle of a heat wave.
This is also a good time to check insulation and seals. Is your attic insulation still in good shape or has it compacted and is not quite as robust as it once was. Take the time to see if you might need to use some additional insulation. Also, seals around windows and doors also need to be checked for inegrity. How many of us have felt that cold air seeping in through a door or window during a frigid winter night? Well, that seepage doesn’t stop with warmer temperatures. So, reseal where needed.
On the outside of the home, if you haven’t already, it’s a good time to get your deck into shape. Sweep and remove all the debris. Next, power wash, or if you prefer, hand scrub the deck to remove stains & mildew. After washing, seal the deck using a water based sealant, preferably a waterproofing sealant, with UV protection against the sun.
Preparing a home for warmer temperatures makes the heat of the summer season a bit easier to handle. Taking a few preventative steps to ensure the air conditioning “moving parts” are ready to go will give you peace of mind as those tempertatures begin to climb with the advance of summer. Doing a little clean up to the outside of the house yields similar dividends. So, take the time during the last few days of May to prepare for the long hot summer – it’ll pay off in more ways than one.
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