Real Estate Consumer Info.com

     One of the most common things a buyer wants to know about the house is, “How old is the roof.”  This is code for, “How much longer will the roof last.”

     These questions are not all that easy to answer---especially the later one.

     While I do my best to give some “general” guidance regarding these questions, I make it very clear that whatever I say should be considered a “guesstimate” at best.  There are many factors that can contribute to the condition of a roof:  color, type, style, installation methods, exposure, maintenance, factory defects and many others.

     For example take your typical “15-year,” three-tab, composition roof.  Exposed to full sun, a light colored roof will tend to last longer than a dark black roof.  Protected from full sun all colors will last longer but if this protection results in the roof staying covered with moss the roof can be damaged anyway.  Frequent pressure washing will take years off the life of a roof, as will installing it over other layers of shingles.  Shingles that are stapled as opposed to nailed are more vulnerable to wind damage. 

    Roofs can be subject to other forms of mechanical damage such as from overhanging trees, shoveling off snow in the winter, hail, un-guttered water from upper roofs beating down on lower roofs, and downspouts from upper gutters flooding across lower roof surfaces.  Even pigeons and seagulls hanging out on the ridge pecking at the roofing granules can damage a roof.  Installing shingles when it is too hot can cause mechanical damage that will later result in a shortening of the life of the covering.  Of course using the roof for sunbathing and star gazing can cause damage to the roof----as well as uncontrolled falls to the bather/gazer.

     So when a buyer asks me how long is the roof going to last, these are the kinds of things I must consider in giving any kind of an answer.

     A roof that has few visible signs of aging is the hardest to predict in some ways.  We often have sources of information to give us clues as to when the roof was installed and then we can use rough rules of thumbs to give an “approximate” idea of how much longer the roof might last.  For example if the seller tells us that the roof was replaced when he bought it and we know he bought it ten years ago it is a “fairly” safe bet it is 10 years old.  That info, coupled with what it “actually” looks like at the time of inspection, one could reasonably expect to get another 5 years out of the roof----assuming that it is a 15-year-roof----and it looked like it might last another 5 years. Again, I always warn my buyers that these are “best guesses” and that there are many factors to take into account. 

    No home inspector is likely to “warrant” a roof and most are pretty careful to make their predictions “necessarily” vague.  The reality is, that predicting the life of a roof is very difficult and if one is accurate within 5 years one is probably pretty close.

    On the other hand, some roofs speak very clearly when they are past their expected life, as the following picture will attest. 

     There are no maintenance questions here. 

     There are no questions as to how much longer the roof will last. 

     This roof was likely past its expected life 20 years ago.

Charles Buell

Seattle Home Inspectors, ASHI Home Inspector, Licensed Home Inspector, Structural Pest Inspector, Charles Buell Inspections Inc, Seattle, WA

 

Click on the Rose to check out:  AHA!---A Forum of Landmark Proportions---your Group

PS, for those of you that are new to my blog (or for some other "unexplained" reason have never noticed)all pictures and smiley-face inserts (emoticons) (when I use them) have messages that show up when you point at them with your cursor.

 

DeCroe, is my "ethereal" home inspector assistant and occasionally flies into my blog and other people's blogs to offer assistance. To find out more about her beginnings just click on Raven.

 

 

Dear Mr. Seller,

You contacted my company 3 months ago and requested a staging proposal for your home.  It's in a premier Portland neighborhood and you said you knew it needed some help before listing. You'd already bought another home and were packing up your things to move out in a few days.

When I arrived to view your home, it was surprising to see a huge pool table in your dining room!  We laughed together about that and also the long heavy dark velvet drapes!  Your home needed major cleaning and packing up of many small items.  I knew we could help you!

We'd be able to work with most of your furniture that you'd be leaving behind, and we'd provide the necessary missing pieces as well as accessories, art, trees & plants, etc. as needed.  We discussed that if we were going to work together, I'd give you a detailed list that would include which furniture pieces to leave behind as well as some easy cosmetic improvements that you could do yourself. 

You told me that your listing agent did not believe in home staging.  I was surprised to hear this, because I thought that your home was one of the better candidates for staging that I've seen this year, but I kept my opinion to myself.  I told you that our company keeps track of our staging statistics, and we're proud of them.  I knew we could help you!

Later that day I emailed you a very cost-effective proposal that included staging your home using your furniture and providing accessories and other items from our inventory.  We'd stage your home to make it appealing to your target buyer.  Our proposal also included quality digital photos for the online listing ... critical in today's challenging market.  I knew we could help you!

Later, I was disappointed that you decided not to stage your home.  Looking at the online listing, it was a shock to see the photos of your home!  They're dark, out of focus, crooked, and don't even show the best features of your home.  I won't show them here because that wouldn't be discreet, but I noticed the heavy velvet drapes are still there, and your furniture is not in the right position to showcase the space.  The photos are about the worst I've ever seen.   I knew we could have helped you!

After 6 weeks on the market I noticed that you took a $30,000 price reduction!  After another 4 weeks, I saw that your price had now dropped $50,000!   Hmmm ... your agent discouraged you from staging (even though you would have paid for it) but has no problem recommending that you drop your price by $50K?

Wow! Staging your home with a professional staging company would have cost a tiny fraction of your first price reduction -- but you decided to drop your price by $50,000 instead.   How does that make sense from a financial viewpoint?

The sad thing is, today I drove by your home again on my way to staging one of your neighbor's homes, and saw the new sign addition now hanging from your "For Sale" sign ...

Mr. Seller ~ We really did try to help you!  I wish we could have.

     ***                        ***                        ***    

For help making sure your home shines for potential buyers, contact Room Solutions Staging in Portland OR to learn more about our home staging services.  We work with Homeowners, Banks, Realtors, and Investors to prepare homes to SELL.  Give us a call at 503-246-1800 for more information.  Room Solutions ~ Staging that Sells Portland Homes.

       Staging that sells Portland homes!

Buying The Right Home ... It Isn't Always About The Price  

In Carson Valley, Nevada ... like most communities ... price has, and always will be, a critical factor when buying a home. It seems, however, as if price has recently become an obsession with some Buyers to such an extent that their mindset is detrimental to their own interest.  There is so much more to buying a home to live in than price. 

Value is the eye of the Buyer ... or Seller.  Seller's have their reason for value - their perceived need for a price to achieve, their family memories, or the many upgrades they've put in the home that separate that home from the rest of the market.  Buyer's on the other hand, are visualizing their enjoyment of the property, but don't yet have the personal connection to the property.  They are dreaming about what can be. 

What affects price?  Location, of course.  But what might be a great location for one person can be a terrible one for the next.  Living on a park can be great ... if you can tolerate the crowds that it attracts.  Living conveniently in town is great for kids' activities... unless you want horses.  Living in a condo is great for minimal maintenance ... unless you have three dogs. 

If you travel frequently you will likely enjoy landscaping that requires minimal landscaping.  If you like horses you'll enjoy an existing horse set up.  Like to recreate on public lands - proximity to BLM or Forest Service property can provide great pleasure to you and your family.  Have a boat or other toys - you'll enjoy a three car or larger garage that will protect your investments.  

Many factors inside can make a difference in houses.  Entertain a lot - double ovens will come in handy.  Have a lot of kids - good luck with a single bathroom.  Enjoy the mountain scenery - every day you wake up and see a special view from a real view property will make you feel like a winner.  Whether you like a great room design, or formal "compartmentalized" design - buy the style you really like and you will enjoy your time at home.  Like granite counters or do you prefer tile?  

Want a garden ... or not?  Need room for the RV or do you want a small lot?  Do you mind fixing up a home?  Are carpet and paint all you want to do, or will you do other significant repairs?  Ready to tackle landscaping - new and bank owned properties require that you do.  

Our Advice:  Don't worry about the last $50 on the negotiating table.  Consider the overall transaction and weigh the benefits - pro and con.  If there is a better home for you out there then you should be negotiating to buy that home. 

If you have found the perfect home, make an offer, negotiate the best price, terms and conditions that you can, buy it, and enjoy it.  Unless it is a rental property where the numbers dictate your actions, realize that there is an emotional return on your investment when buying and living in your primary residence.  Get a high rate of emotional return and you will understand why price, though important, is not all-important. 

Finding the right home can be rewarding in many ways.  Don't overpay and don't stress over trivia.  Don't miss the opportunity to enjoy the right home for the sake of a dollar - you'll be "tripping over happiness to chase a dollar". 

When it comes to choosing professionals to assist you with your real estate needs ... Experience is Priceless!  Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, 775-781-5472.  carsonvalleyland@hotmail.com, www.carsonvalleyland.com 

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Lisa Wetzel and Jim Valentine are the authors of this blog.  Lisa, Jim  and Jessie are experts in Carson Valley, Carson City and the tri-county area of Douglas County, Carson City and Lyon County.  Call our team anytime at 775-781-5472 or 775-781-3704.  To Search for Homes go to: www.findhomesincarsoncity.com or visit our website at www.CarsonValleyLand.com

APR Predators and APR Demystified

First, lets demystify Annual Percentage Rate (APR).

APR was designed to allow consumers to use one standardized number to compare the real cost of each lender's interest rate and it works like this.

If I lend you, $10,000  and, I charge a $500 Bump-ta-Bump Fee, you will actually receive $9,500, however you must still repay me $10,000.  APR is my real yield and your real cost on this loan.

We agreed that you will repay the loan at 8% interest on $10,000, HOWEVER you only received $9,500 therefore I will earn more than the 8.0% interest rate I charge on $10,000.  In this case, my yield (APR) is 9.799% on the $9,500 you received.   

APR is the lender's yield on dollars actually lent ($10,000 minus $500 = $9,500); in this case, the lender's yield (APR) on $9,500 is 9.799%   (APR is computed as if the above example is a 30 year loan)

The $9,500 also represents the Amount Financed in the Truth In Lending (TIL) disclosure. 

For those of you who use spreadsheets the Rate Function will find APR.  Use the Amount Financed for Loan Amount and use the monthly payment on the actual loan amount.

Fees that must be subtracted from a mortgage loan to properly calculate Amount Financed for APR

Origination and Discount Points

Processing and Lender Fees

Pre-Paid Interest (Use 15 days when closing date is unknown)

Monthly Mortgage Insurance must be added to the payment of all FHA loans and Conventional loans greater than 80% loan to value. 

The inclusion of Mi or MIP accounts for the large spread between Rate and APR on loans with mortgage insurance.

     Note: Fees Not used in APR calculation; third party fees such as appraisal and credit.

How Do APR Predators Work?

Many sophisticated borrowers shop interest rates by searching for lowest APR which, if property stated, is the real cost of borrowing.  Unfortunately, APR is not always stated properly.

How is advertised APR is misstated? 

• Prepaid Interest is not included - most common deception and true on all online Rate sites   i.e.: Bankrate.com, Interest.com, Mortgage101.com, ShopRate.com, etc.
• Prepaid Interest is understated - must be 15 days when closing date is unknown.
• MI or MIP is not included in the APR on any online rate sites, Bankrate etc.
• Some lenders do not include MI or MIP on their web sites such as Amerisave.com 
• Lender fees are either understated or not included in the APR calculation.  This is a tricky one because No or Low Lender Fees does not necessarily indicate a predatory lender.  Some lenders charge a higher rate and no points or fees for their so called "Zero Cost" loan.  However, the "Zero Cost" rate will always be higher than a rate with points and/or fees. 
• Notes to the above: 
  • there is no such thing as a Zero Cost loan and some states prohibit lenders from advertising Zero Cost Loans.
  • The spread between Rate and APR on loans greater than 90% LTV should be at least 0.700%.  When it is not... you are being scammed

Rate - Points - Fees are all interdependent

The best way I can explain this is show various Rate - Point - Fee combinations where the lender is making the same gross profit on each combination. 

In the examples below, we will use a $200,000 loan amount and Lender gross profit of $1,000, on a day when the Lender's cost for a 5.000% rate is par (0 point).

Best Rate:  $1,000 Lender profit in various combinations of points and fees

Rate	Fees	Points	APR	Profit
5.000%	$1,000	0	5.044%	$1,000
5.000%	$500	0.250	5.044%	$1,000
5.000%	$0	0.500	5.044%	$1,000

Lowest Fees: You pay $0 points and fees and Lender's investor pays the lender $1,000 for the higher rate.  

Rate	Fees	Points	APR	Profit
5.125%	$0	0	5.125%	$1,000

The point here is that lenders design their loans to provide talking points for their sales staff (loan officers).  They all require a certain profit margin and it is not important the way the loan is structured as long as the closed loan delivers their margin. 

This illustration also points out the value of correctly stated APR as a way of evaluating the true cost of a mortgage loan.  For sake of these illustrations, prepaid interest was not used.  If 15 days PP was calculated it would have increased each APR by 0.019%.

Bill Ladewig, Your FHA Guru (and APR)

800.664.7283 (SAVE)

Bill@YourFhaGuru.com

Mortgage Mentor Website

I have many people coming up and asking me about how things are going for me in real estate these days.  Most of them are concerned, for they find it hard to believe anyone can survive in this volatile market.  Many of them are just interested in learning any information they can about real estate or how our market is doing, which of course I am always happy to talk about.

But most ask me the same question...so...”Are you selling a lot of HUD and Foreclosure homes to your Buyers??  ”My response to this question is surprising even to me, “No, I am not selling a lot of HUD or foreclosed homes. “  (And believe me it is not for lack of showing them!)   But how can this be??

Nearly every time I begin working with a new Buyer they request the same thing...”I am really looking for a HUD or Foreclosed home that I can get a good deal on and fix up.”  They all see the media where they hear of Buyers finding their dream home for cents on the dollar, which even appear to be in quite good condition.  What they don’t yet realize is that although this can and does happen it is most often the exception not the norm...until they begin looking that is.

Once we begin our viewing of these homes they start to see the sad and true reality of what the HUD and Foreclosure market really is.  The vast majority of these homes are in great distress that will require many $1000.00’s of dollars and hours of hard work to bring them back to a livable condition.  Once they take all this into consideration the bubble bursts!  Their home buyer vision seems to shift and the request comes...”Can we take a look at some homes that are not HUDS or Foreclosures?”

Just as an example:  I was recently showing a distressed home to a Buyer and when we began to walk into one of the kids bedrooms it smelled STRONGLY OF URINE!   My Buyer didn’t even make it into the room and walked immediately right out of the house.  He was done.  When I contacted the listing agent to let her know what had occurred her response was, “Oh, I know...one of the older kids is a bed wetter and it’s JUST the mattress!”  Now maybe I’m expecting a little too much, but personally, I would get that mattress OUT OF THERE.   Distressed homes are difficult enough to sell but this could have quite easily been taken care of.

It is now when the Buyers notice that even though our market is loaded with  HUD and Foreclosed homes there is also a good selection of homes available for sale that are not...and priced very well.  Often when comparing these ”normal sale” homes (if there is such a thing as a normal sale these days) to the HUDS and Foreclosures, then taking into consideration the money, time and resources they will require just getting into to the home, it becomes quite overwhelming , the HUD and Foreclosed homes seem to just fall by the wayside.

Now, I am not saying there are not good deals out there in the HUD and Foreclosure Market only that it takes someone with a strong motivation, the time, the talent and the financial resources to take on these homes and many of our First Time Home Buyers are finding they are either not willing or capable of doing this ....and their vision shifts.

If you are a First Time Home Buyer is a HUD or Foreclosed Home is What You Really Want?  You may just surprise yourself so be sure to keep your options open.

 

 

-Therese is Selling and Marketing Properties in the Greater Grand Rapids, MI Area while specializing in Jenison, Grandville and Hudsonville.  Please contact Therese directly at 616.780.0786 or by e-mail: tvmhomes@sbcglobal.net  In this Challenging Market Every Advantage is Important! COPY RIGHT 2009 Therese VanderMeer All Rights Reserved.

 

 

 So you've decided to sell your house and you are well aware of the fact that homes for sale in your community have involved foreclosed properties. All those homes that sold in the past 6 months were bank owned and they weren't sold by an individual, but instead, they were sold by those evil banks that got us into this mess in the first place. Not only did the Cretans foreclose on the homes and kick out homeowners, but now they step in and undercut the prices of other sellers and steal their buyers. But we don't have to price our house the way the bank does, because ours is not a foreclosure, so we really don't have to worry about because ours is worth more.

 Well welcome to the harsh reality of what I like to refer to as the truth. It's not always a fun thing, but you have to face it if you want to be successful in today's market. All those foreclosed properties in your community do affect your home. They do lower the market value in a lot of cases, because the banks do lower their prices to aggressively market their properties. As a result, the market value of comparable properties like yours does change.

 I know that's not at all what you wanted to hear. In fact I didn't really want to say it, but it needed to be said. You can't ignore the facts.

 The facts are unfortunately something that we all have to face and foreclosures and bank owned properties are a fact of life today. They are your competition and you do have to price your house for sale in accordance with the current market value for your community.

 Another horrible fact to face is that pricing is one of the most important things to focus on when selling a house. Having a house that's in great condition is also extremely important, but if you find yourself overpriced by ten or twenty thousand dollars, you don't stand a chance of moving anytime soon. So while you may be able to get a little more for your house due to it's better condition, you may want to lose the theory that your house isn'tt affected by foreclosures. Unfortunately, we all are, and we just have to accept it and move on.

 

www.JLBoney.com

Wallpaper, wallpaper on the wall are you the fairest of them all?

Love it or hate it or have no opinion of it, most Professional Home Stagers do address the issue.  It comes, it goes, it's in fashion it's not. It's neat, it's versatile, it's dated, it's faded, out, in ...  your feelings on it, in my opinion, in many cases when selling a home especially, wall paper removal may and should be recommended.

 

Now fair seller, you say, WHY?

1. "I love it!
2. I paid lots of money for this designer look it matches my chair cushions!
3. I paid someone else to hang it perfectly straight! 
4. All the flowers and leaves are joined seamlessly together and it looks like custom paint!
5. We could never remove it ourselves!
6. We have memories tied to this wall paper!"

My answer to you would be this simple two sentence answer, as you said,

1. YOU love it but not all buyers are going to be of the same opinion.  In fact most won't.

What they will see your wallpaper as, especially if worn, torn or forlorn, is WORK, TIME & MONEY and NOT MOVE IN READY.

What may be a bit of sweat, time and about $100 for paint/supplies for you will be a sight for buyer's eyes to behold! A clean, fresh, slate. A warm inviting space. MOVE IN READY CONDITIONS!

And isn't that your goal? To sell your house and make it appeal to the most number of buyers possible?

Below is an example of just what removal of the top portion of the chair rail wallpaper and a warm neutral paint (the color below the rail stayed the same) can do to lighten and brighten up a room.

Can you see the gift that these sellers have unwrapped and given to their prospective buyers?

 

 

 

 

 

 

 

Dining Room Before Wallpaper Removal, Painting and Professional Home Staging

 

 

 

 

 

Dining Room After Wallpaper Removal, Painting (by owner) and Professional Home Staging by Home Star Staging

 

 

 

 

 

 

 

This Frisco, TX home was professionally staged by Home Star Staging in early November 2007. The home had a contract prior to Thanksgiving 2007 and closed shortly after (3 weeks on the market). By working with the right Realtor and professional home stager you too can set your home apart from the competition!

For Professional Home Staging Services and Consulting in Collin County, TX and surrounding areas please visit Home Star Staging on the web or us a call at 469-964-0516. 

We're here for you Realtors, Investors and Sellers.

Let us help you unwrap your home's gifts and make your HOME the STAR attraction in the competitive North Texas Real Estate Market.

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For expert advice on preparing a home for sale contact Home Star Staging, a Real Estate Staging and Consulting company. Home Star Staging is here for you North Texas! 

 

By TwitterButtons.com

Evolving purchasing habits have changed through recent generations.  As I see it, there are two major reasons why there has been a shift in selling real estate; people want "move-in" ready homes and "an experience."

You are no doubt aware, most families and young professionals today are trying to balance work, never ending education, busy personal lives and debt.  People in our society just don't have the time they had in previous decades.  Increasing pressure to do more, get more, pay more has created this shift in demand for a property ready to move in. 

Consider these two examples of lifestyle.  One, a family of four with two working parents and two school aged children involved in activities.  The cost of living, activities and raising children in an image conscious society can put an overwhelming financial demand on a family.  Time would be precious and tackling home improvements is not likely on their list of priorities.  Or two, a young professional couple having only graduated recently likely burdened with post education debt repayment and trying to cope with the demands of their profession and its never ending education required to sustain it.   Also, Generation Y is known for not having the skill set for doing home improvements and therefore would have to hire out to complete any projects.  These two examples are common and demonstrate the desire for move-in ready homes.

The second influence on the change in real estate purchase decisions is the affect the relatively new Information Technology industry has had on the last two generations.  It has created higher expectations for all things faster, better and personal.  Product demand has shifted from the market place buying what is produced to telling producers what to make. 

In conclusion, give your potential homebuyers a home they can live with until they can make it their own and give them an experience so they remember your home over any other.

 

 

Tina Parker, UpStage Home ReDesign and author of "Do Your Own Home Staging"

 

Tina Parker, CSP
UpStage Home ReDesign (.ca)
902-229-5799