You know the saying? "Too many cooks spoil the pot!" How many times have you used this in your kitchen, when trying to put out the spread for a large party? Everyone wants to help and they do, to the point of disorganized chaos. This can and does apply to Real Estate too, if you are house hunting.
Rochester, NY and the surrounding market are small markets. Our Multiple Listing Service (MLS) is available to the public via Homesteadnet.com and Realtor.com. Locally, most real estate companies and agents that have websites also offer search functions that allow buyers to see what is available in their desired areas. By the time a buyer is ready to seriously look for a home, they have been in contact with several agents at the very least.
If buying, logic would seem that if you have two or more realtors working for you, that you will find your desired home faster. In this case, logic is false! The main reason being motivation, on the part of the agents. An experienced agent will ask if the buyer is working with anyone else.
There could be many reasons why a buyer decides to call another agent. One of the most common is the buyer is hoping that they might get different results for their search. In the Rochester market, this is unlikely since it is such a small market. Another reason could be that the buyer is dissatisfied with their agent. If this is the case, the buyer usually articulates the problem if prompted by questions the agent (should be asking). The agent might then ask that the buyer end the unsatisfactory relationship with the other agent, and work exclusively with them. The buyers response in part gauges how serious the buyer is.
A saavy agent wants to determine if working with a buyer is likely to be a positive experience. The agent takes into account the time and money they will expend on helping a buyer find a home. If there is a possibility when working with multiple agents, that agent number two's efforts and money (spent on gas, paying a baby sitter while they show a home etc...,) could be for nothing-should agent number one scoop agent number two on finding a home, agent number two is much less motivated to go out of their way for the client. If a buyer is working with another agent, agent number two might still work with the buyer, but not be as focused on their needs. This buyer will not be a priority client in their book. When this occurs the buyer will not receive the full attention and energy they normally would receive from this agent. In addition, should agent number one find out that the buyer is working with another agent, they too can demote the buyer from being a priority for pretty much the same reasons agent number two does not make them a priority client.
Knowing this, a buyer would be tempted to say that they are working exclusively with which ever agents asks. Since Rochester is a small market, it's only a matter of time before the agents find out this is not the case. Should this happen, the dynamics between the client and agent(s) will change. Once an agent feels they are being deceived, they no longer trust their client. Motivation to do a good job for their client is diminished.
The important point is, while you may work with as many agents as you like, you are better off working with one agent that makes you a priority. Working with multiple agents and not being a priority client with any of them, ensures that you will not get the focused service and advice that you need to be successful in your quest for a new home.
Wednesday, August 31, 2011
Saturday, February 20, 2010
Short Sale Buyers Face Difficulty Closing Deals Quickly
RISMEDIA, February 19, 2010—(MCT)—Rachel Nacion-Ograyensek and her husband are getting nervous. The house that the two apartment dwellers want to buy—the one with the double oven, pool and tiled patio—may slip away from them.
It’s on the market as a short sale, so the owner can’t act until the mortgage holder approves the discount price. But the Altamonte Springs, Fla. couple insists on buying their first home in time to take advantage of the federal government’s home buyer tax credit, which now expires April 30, 2010.
“The house is our dream house—it’s perfect for us,” Nacion-Ograyensek said. “We are trying to get in on the tax credit, but it’s done in April, and it’s already February. We’ve gotten to the point where we’re passively looking for other houses, but none are quite right.”
Under pressure from the real estate industry, Congress extended and expanded the tax credit last fall. It was to have ended November 30, 2009 and benefit only buyers who had not purchased a home in the past three years. Like the original, the latest version is worth as much as $8,000, but it gives both first-time buyers and qualified existing homeowners until April 30 to secure a contract on a home, and until June 30 to close the deal.
Though real estate agents and home builders hope the measure boosts sales, as the previous version was credited with doing, some fear that buyer’s intent on getting a short sale bargain will not make the new deadlines.
In the Orlando area, 67% of Realtors’ existing-home sales in December 2009 were distressed sales—and about half of those were short sales, known for taking at least three months to complete. Even buyers who nail down a contract with the seller by the April 30 deadline can’t be sure the purchase will close within the required two months. “That’s where you get into that riverboat-gambling mentality,” said Jim Ruddy, the longtime real estate agent representing Nacion-Ograyensek and her husband. “Is it worth gambling that $8,000?” At this point in the tax credit countdown, buyers interested in purchasing a short sale must decide whether they are really committed to that property—enough that they would still want to purchase it if they miss the June 30 tax credit deadline, Ruddy said.
Nacion-Ograyensek said she and her husband recently revisited the short sale house in Altamonte Springs and decided it was worth the gamble. The kitchen is ideal for cooking, and the backyard is large enough if they have children or adopt a dog. They have decided to stick with their plan; still, each day that passes makes them more anxious.
In hopes of capturing tax credit-motivated buyers who aren’t focused on distressed properties, Florida’s real estate agents have scheduled an unprecedented statewide open house of properties listed for sale. The event, organized by the Florida Association of Realtors, is set for April 10-11—just two weeks before the tax credit deadline.
Kathleen McIver-Gallagher, chairman of the Orlando Regional Realtor Association, said buyers intent on getting the tax credit should be concerned if they are trying to purchase a short sale through lenders known for slow responses to short sale offers.
As the April tax credit deadline nears, buyers will probably become more interested in homes other than distressed sales, McIver-Gallagher said. “There are plenty of regular homes out there,” she added.
Compounding the delays are new reporting rules that lenders must now follow. Nate Morris, vice president of Thomas Mortgage and Financial Services, said the new requirements involve good faith estimates and HUD closing documents. “It certainly could further complicate things,” said Morris, a board member of the Mortgage Bankers Association of Florida. “I don’t see this working out till the middle of the year. Everyone in the mortgage business talks about it on a daily basis.”
By Mary Shanklin(c) 2010, The Orlando Sentinel (Fla.).
Distributed by McClatchy-Tribune Information Services.
Friday, February 12, 2010
Home Buyers Rush to Take Advantage of Tax Credit Before It’s Gone
RISMEDIA, February 12, 2010—(MCT)—Liv Mansfield is racing the clock, hoping to find and settle, or at least sign a purchase agreement, on a townhouse before the $6,500 tax credit for qualified repeat home buyers expires April 30, 2010.
While the credit is not as important as staying in the Wallingford school district, where her younger daughter will enter sixth grade next fall, Mansfield says it will help make expenses associated with the move ‘a wash.’ “It will help with moving costs, and with getting this house ready for sale,” said Mansfield, who has lived in the five-bedroom split-level Colonial she bought with her former husband nine years ago.
The house, which she says is far larger than what “two people and a small dog need,” will list for under $525,000 and heads for the market Feb. 15, 2010.
Current homeowners buying a house between Nov. 7, 2009, and April 30 and who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight can qualify for the $6,500. It seems less is known about the repeat buyer credit. This incentive was added when the original $8,000 tax credit for qualified first-time buyers, which expired Nov. 30, was extended.
Houses purchased for $800,000 or less are eligible for repeat buyers. Single buyers with incomes up to $125,000 and married couples up to $225,000 may receive the maximum tax credit for both repeat and first-time purchases. The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Buyers earning more than the maximum are not eligible for the credit. If a binding written contract to purchase is in effect April 30, the purchaser will have until July 1, 2010 to close.
The 2009 credit for first-timers helped jump-start the sagging home market in the summer and fall, data show. Walt Molony, a National Association of Realtors (NAR) spokesman, said two million existing-home sales in 2009 could be attributed to the $8,000 first-time buyer credit. Although it is too early to measure the credit’s effect on sales so far this year, Molony said NAR chief economist Lawrence Yun believes it will add 1.5 million sales to the tally.
The repeat-buyer credit was added to appease builders, who said the original did not offer enough time to purchasers of new houses, which take at least six months to build, to close on them. New homes accounted for only 7% of the tax-credit-based sales, Molony said.
The National Association of Homebuilders’ Donna Reichle said, “We hear builders saying they are getting inquiries, but that’s all so far. According to our economists, it’s way too early,” Reichle said. “If you look back at the passage of the original $8,000 credit and impact on housing starts, it took a couple of months, and that was in the spring as well.”
Moody’s Economy.com chief economist Mark Zandi says the credit will boost sales “modestly,” however, by 300,000, with one-third trade-up buyers. “I don’t expect the credit to be extended again,” Zandi said. “Each time it is extended, it becomes less effective and thus more costly.”
David Krieger, senior vice president and general manager of Coldwell Banker Preferred in Philadelphia, says he believes that “a very large increase in our listing inventory in January is a result of the $6,500 credit.” Still, the $8,000 first-time credit remains the chief reason his company’s home sales were 33% higher last month than in January 2009, he said.
Typically, repeat buyers are better off financially than first-timers, so a lot of repeat buyers realize from the start they don’t qualify for the credit, Weichert Realtors agent Alec Schwartz said. “What they do realize, and what is getting more sellers to list, is that they understand that there are plenty of first-time buyers who qualify for the $8,000 credit out there, and they have a much better chance of selling their house and buying a new one than before,” said Schwartz, Liv Mansfield’s agent.
This is also true in the region’s new-home market, said Wayne Norris, regional sales manager for Hanley Wood Market Intelligence. “Builders have experienced increased activity in recent months” attributable to the $6,500 credit and “the fact that many potential buyers were able to sell their houses” to those taking advantage of the first-time buyer credit,” he said. The sense of urgency to make the tax-credit deadline and fears of rising interest rates will push new-home sales higher in the spring, Norris said.
By Alan J. Heavens
(c) 2010, The Philadelphia Inquirer.
Distributed by McClatchy-Tribune Information Services.
Tuesday, February 9, 2010
Twenty Common Mistakes People Make When Finishing a Basement
Realtors often see finished basements that are poorly done. These types of basements take away from a home's value. When thinking about finishing a basement, a property owner should read this article first, contributed to our Blog by Bill Richards of ProTech Home Inspection
1. Not addressing water problems first – The first step in any basement remodel should be identifying and preventing any and all possible sources of moisture. This can include cracks in the walls, openings around utility lines, high humidity, poor grading around the house, downspouts that direct water against the house, leaking gutters, leaking pipes, or sewer backups.
2. Not making necessary repairs/upgrades beforehand - One of the advantages of an unfinished basement is you still have easy access to your HVAC system, wiring, plumbing, cable lines, etc. So it only makes sense to perform any repairs or upgrades to these systems before you start covering them up with ceilings and walls.
3. Finishing a basement too soon – It can be difficult to anticipate the above two items in a house you’ve never lived in. That’s why I recommend living in a house for a while before you start finishing the basement.
4. Making too many small rooms – A few, large multipurpose rooms generally work better than a lot of smaller rooms. Not only does a large space offer more flexibility, but basement rooms tend to feel smaller than they actually are due to lower ceilings and less natural light.
5. Not understanding code requirements for bathrooms & bedrooms – If your plans include adding a bathroom or bedroom in your basement, you first need to find out what your local building codes require. Beyond the obvious, a bathroom will require venting and GFCI outlets while a bedroom usually requires a heat source in the room, emergency egress, a smoke detector, and AFCI protected outlets.
6. Covering up important access points – Plumbing clean outs, floor drains, water shutoffs, electrical panels, furnaces, humidifiers, and sump pumps all need to be accessible after the basement is finished. Water valves, electrical panels, and sump pumps in particular need to be readily accessible without the use of any tools in case of an emergency.
7. Not installing HVAC ducts into the rooms – Simply put, every room in the basement should have at least one HVAC register.
8. Not adding enough electrical outlets – When it comes to electrical outlets, it’s better to have too many than not enough.
9. Not sealing & insulating properly – Sealing air leaks and insulating the walls can make your basement more comfortable and more energy efficient. Make sure to include these steps as part of your project.
10. Using untreated lumber against concrete – Any wood that comes in direct contact with concrete should be treated. The reason for this is water can seep through concrete and then into any wood touching it, which can then lead to wood rot and mold growth over time. Treated lumber is also termite resistant as well.
11. Not installing overhead lighting –Add overhead lights controlled by a switch to every room in your basement, you’ll be glad you did.
12. Only using can lighting for large basements - Can lights are very popular in basements because they are recessed into the ceiling. The downside of can lights is they only illuminate the area directly below them. This may not be an issue for a small basement, but it can take a large number of can lights to properly light a large basement. This increases both your initial material costs and electricity costs later on. One alternative to consider is adding wall sconces in larger rooms. They take up little space but since they reflect light off the ceiling and walls, they illuminate a larger space than a can light of the same wattage will.
13. Not performing a Radon test – If your house has never been tested for Radon, you should have it done before you finish the basement. This is important since you will be spending more time in your basement once it’s finished. It’s also best to do this early on so you will know if you need to include a radon mitigation system as part of your remodeling project.
14. Blocking off the combustion make-up air – Gas and oil burning appliances such as furnaces and water heaters require fresh make-up air to use for combustion. While many modern furnaces have dedicated intake ducts to supply them with outside air, many older furnaces and water heaters simply use the air from inside the basement. In that case, you may need to add a intake duct next to your furnace and/or water heater to supply enough fresh air for them to burn properly.
15. Using the sump pit as a drain – Sinks, washing machines, etc. should never drain into a sump pit. Condensation drain lines from dehumidifiers and HVAC equipment can empty into a sump pit.
16. Using a floor drain as a sewer line – Likewise, sinks, washing machines, etc. should never discharge into a floor drain. However, it is okay for HVAC equipment and dehumidifiers to use a floor drain.
17. Not getting help when needed – Finishing a basement is a great opportunity to learn new skills and flex you DIY muscles, but chances are even the most experienced do-it-yourselfer is going to need some help. Don’t be afraid to consult professionals for advice, many will gladly share their expertise if you simply ask. Just be upfront with them if you have no intention of using their services.
18. Not having it inspected – It’s always good to have someone double check your work. Especially if you’re doing most or all of the work yourself. Consider having a professional inspection of the basement done before you start work to identify likely problem spots. It is also recommended to have all the wiring, plumbing, and HVAC inspected before the drywall is installed.
19. Overestimating its value – If your primary motivation for finishing the basement is to increase the value of your house, you should proceed cautiously. Many people overestimate the value a finished basement will add to their home. Of course, this varies from house to house, so do your homework first or talk to a realtor who is familiar with the home values in your neighborhood.
20. Not insuring the basement properly – Once your basement is done, it’s time to update your home owners insurance to make sure it is fully covered. You may also want to add or increase your sewer backup coverage. This is usually an additional rider and is not standard on most policies.
Written By Brian Scarth.
You can reach Bill at:
ProTech Home Inspection
4354 Smith Rd
Marion, NY
(585) 377-3876
1. Not addressing water problems first – The first step in any basement remodel should be identifying and preventing any and all possible sources of moisture. This can include cracks in the walls, openings around utility lines, high humidity, poor grading around the house, downspouts that direct water against the house, leaking gutters, leaking pipes, or sewer backups.
2. Not making necessary repairs/upgrades beforehand - One of the advantages of an unfinished basement is you still have easy access to your HVAC system, wiring, plumbing, cable lines, etc. So it only makes sense to perform any repairs or upgrades to these systems before you start covering them up with ceilings and walls.
3. Finishing a basement too soon – It can be difficult to anticipate the above two items in a house you’ve never lived in. That’s why I recommend living in a house for a while before you start finishing the basement.
4. Making too many small rooms – A few, large multipurpose rooms generally work better than a lot of smaller rooms. Not only does a large space offer more flexibility, but basement rooms tend to feel smaller than they actually are due to lower ceilings and less natural light.
5. Not understanding code requirements for bathrooms & bedrooms – If your plans include adding a bathroom or bedroom in your basement, you first need to find out what your local building codes require. Beyond the obvious, a bathroom will require venting and GFCI outlets while a bedroom usually requires a heat source in the room, emergency egress, a smoke detector, and AFCI protected outlets.
6. Covering up important access points – Plumbing clean outs, floor drains, water shutoffs, electrical panels, furnaces, humidifiers, and sump pumps all need to be accessible after the basement is finished. Water valves, electrical panels, and sump pumps in particular need to be readily accessible without the use of any tools in case of an emergency.
7. Not installing HVAC ducts into the rooms – Simply put, every room in the basement should have at least one HVAC register.
8. Not adding enough electrical outlets – When it comes to electrical outlets, it’s better to have too many than not enough.
9. Not sealing & insulating properly – Sealing air leaks and insulating the walls can make your basement more comfortable and more energy efficient. Make sure to include these steps as part of your project.
10. Using untreated lumber against concrete – Any wood that comes in direct contact with concrete should be treated. The reason for this is water can seep through concrete and then into any wood touching it, which can then lead to wood rot and mold growth over time. Treated lumber is also termite resistant as well.
11. Not installing overhead lighting –Add overhead lights controlled by a switch to every room in your basement, you’ll be glad you did.
12. Only using can lighting for large basements - Can lights are very popular in basements because they are recessed into the ceiling. The downside of can lights is they only illuminate the area directly below them. This may not be an issue for a small basement, but it can take a large number of can lights to properly light a large basement. This increases both your initial material costs and electricity costs later on. One alternative to consider is adding wall sconces in larger rooms. They take up little space but since they reflect light off the ceiling and walls, they illuminate a larger space than a can light of the same wattage will.
13. Not performing a Radon test – If your house has never been tested for Radon, you should have it done before you finish the basement. This is important since you will be spending more time in your basement once it’s finished. It’s also best to do this early on so you will know if you need to include a radon mitigation system as part of your remodeling project.
14. Blocking off the combustion make-up air – Gas and oil burning appliances such as furnaces and water heaters require fresh make-up air to use for combustion. While many modern furnaces have dedicated intake ducts to supply them with outside air, many older furnaces and water heaters simply use the air from inside the basement. In that case, you may need to add a intake duct next to your furnace and/or water heater to supply enough fresh air for them to burn properly.
15. Using the sump pit as a drain – Sinks, washing machines, etc. should never drain into a sump pit. Condensation drain lines from dehumidifiers and HVAC equipment can empty into a sump pit.
16. Using a floor drain as a sewer line – Likewise, sinks, washing machines, etc. should never discharge into a floor drain. However, it is okay for HVAC equipment and dehumidifiers to use a floor drain.
17. Not getting help when needed – Finishing a basement is a great opportunity to learn new skills and flex you DIY muscles, but chances are even the most experienced do-it-yourselfer is going to need some help. Don’t be afraid to consult professionals for advice, many will gladly share their expertise if you simply ask. Just be upfront with them if you have no intention of using their services.
18. Not having it inspected – It’s always good to have someone double check your work. Especially if you’re doing most or all of the work yourself. Consider having a professional inspection of the basement done before you start work to identify likely problem spots. It is also recommended to have all the wiring, plumbing, and HVAC inspected before the drywall is installed.
19. Overestimating its value – If your primary motivation for finishing the basement is to increase the value of your house, you should proceed cautiously. Many people overestimate the value a finished basement will add to their home. Of course, this varies from house to house, so do your homework first or talk to a realtor who is familiar with the home values in your neighborhood.
20. Not insuring the basement properly – Once your basement is done, it’s time to update your home owners insurance to make sure it is fully covered. You may also want to add or increase your sewer backup coverage. This is usually an additional rider and is not standard on most policies.
Written By Brian Scarth.
You can reach Bill at:
ProTech Home Inspection
4354 Smith Rd
Marion, NY
(585) 377-3876
Tuesday, January 5, 2010
6 Mistakes to Avoid When Converting to a Roth IRA
As some of you know, a Roth IRA is, in a way, the opposite of a traditional IRA. The Roth is funded with after-tax dollars; a traditional IRA with pre-tax dollars. Distributions from a Roth IRA are tax free while distributions from a traditional IRA are taxed at ordinary income tax rates. The original owner of a Roth IRA account is not required to take minimum distributions; the original owner of traditional IRA is required to start distributions after age 70 1/2.
Despite the obvious appeal of Roth IRAs, traditional IRA owners outnumber Roth owners by nearly two to one. In 2005, 37.5 million U.S. households owned traditional IRAs, while 18.6 million owned Roths, according to the Investment Company Institute.
There are a few reasons Roth IRAs aren’t as popular as traditional IRAs. For one, the traditional product has been around a lot longer. They were created in 1974; Roths came into existence in 1997. What’s more, the restrictions on who can contribute to a Roth are more onerous than those for traditional IRAs. And then, there are the rules that put a damper on who can convert their existing traditional IRA to a Roth. Before 2010, you could only convert your traditional IRA if you had modified adjusted gross income of less than $100,000.
What’s more, the income tax due on conversions in 2010 can be spread over two years, with half paid in 2011 and half in 2012. It’s a sweet deal to be sure. So, let’s say your interest is piqued and you want to take advantage of all that a Roth IRA has to offer. Here are some mistakes you should avoid when converting to a Roth IRA:
1. Neglecting to do the conversion. “Conversions are not for everyone, but the biggest mistake to avoid is to not do a conversion at all,” said Beverly DeVeny, an IRA technical consultant with Ed Slott and Co. LLC. “Why would you not want to pay taxes today at known—probably very low rates—to get tax-free income at a later date? You don’t have to convert the entire IRA all at once, but you should convert at least some of it.” Others agree. The question is not whether but when and how, said Bruce Steiner, an attorney with Kleinberg, Kaplan, Wolff & Cohen. “For most people, the choices are whether to convert all at once or over a number of years, and whether to convert or start converting now, or later upon retirement,” Steiner said.
2. Failing to understand the tax consequences. While not doing a conversion might be a mistake, doing one without a thorough understanding of how the conversion will affect your taxes is an even bigger mistake, said Barry Picker, who recently served as the technical editor of “100+ Roth IRA Examples and Flowcharts,” by Robert Keebler.
3. Converting when your tax bracket is likely to fall. Truth be told, not all traditional IRA account holders should convert. Robert Keebler, a certified public accountant, partner at Baker Tilly Virchow Krause LLP, and author of “The Rebirth of Roth: A CPA’s Ultimate Guide for Client Care,” says it would be a mistake to convert if you are certain your tax bracket will fall in the next few years.
4. Having the taxes owed withheld from the transaction. There are several reasons you should not have taxes withheld when requesting a conversion, said Denise Appleby, founder of RetirementDictionary.com and chief executive of Appleby Retirement Consulting. These include: The amount withheld reduces the conversion amount. For instance if you request a conversion of $100,000 and ask to have 20% withheld for federal taxes, then $20,000 is paid to the IRS as an advance payment of income tax for the year. Technically, this amount is a distribution and not a conversion, and $80,000 is converted to your Roth IRA.
You may need to reverse the conversion for several reasons, including if the converted amount lost significant market value. This reversal is called a recharacterization. The result of a recharacterization is that the conversion is treated as if it never occurred, for tax purposes. But only the amount credited to the Roth can be recharacterized. For instance, if we use the example above, only $80,000 would be available. You would still owe income tax on the $20,000, because it would be treated as a distribution from your traditional IRA. An exception applies if it has been at least 60 days since the conversion was completed. Under this exception, the amount withheld for income tax can be rolled over to the traditional IRA. Of course, this exception is useful to you only if you can come up with the funds out of pocket. The amount withheld for taxes is subject to the 10% early distribution penalty unless the IRA owner is at least age 59 1/2 when the conversion occurs, or qualifies for an exception to the penalty.
5. Converting to just one Roth IRA. Another mistake, according to Picker, is converting your traditional IRA into an existing Roth IRA account. “Every conversion goes into a brand new Roth account,” he said. “You can consolidate later, after the recharacterization deadline.” Indeed, many experts suggest that you convert your traditional IRA into as many Roth IRA accounts as possible, each with investments of a similar type. With Roth IRA conversions, Uncle Sam lets you switch back to a traditional IRA before a certain date should the value of the account fall below the original conversion amount.
6. Forgetting to consider a recharacteriaztion. Not converting is one possible mistake. Not watching the value of your Roth IRA accounts after you’ve converted is a big mistake too, Keebler said. Indeed, there are some tax-saving opportunities that come when the value of your converted Roth IRA accounts falls significantly and you undo the conversion. According to Appleby, when pre-tax amounts are converted to a Roth IRA, income tax is owed on that amount. This rule applies even if the market value falls below the taxable amount of the conversion. The deadline for completing the recharacterization is the tax filing due date, plus an additional six months if the individual files for an extension by his tax due date. You can then re-convert the amount when eligible to do so.
(c) 2010, MarketWatch.com Inc
Tuesday, December 15, 2009
12 Easy Tips for Winterizing Your Home Right Now
I am happy to introduce Bill Richards of ProTech Home Inspections. He will be blogging with us periodically!
In the Rochester area and surrounding counties the weather keeps changing – it’s warm, it’s cold, it’s warm again – but soon the cold days will be upon us for good. Save money this winter and help the environment by winterizing your home. It’s easy to do, and you’d be surprised
how these simple steps can make a big difference in your utility bill and your comfort level.
1. Get your furnace inspected. Furnaces should be cleaned and tuned by a professional annually. It’s not an expensive service, and it will keep your furnace running efficiently and safely. Remember to change furnace filters often.
2. Check your home for air leaks. Especially around doors and windows. Adding weather stripping and insulation is one of the easiest things you can do. Add weather stripping around doors and caulk or foam around gaps in windows to help keep the warm air inside.
3. Insulate your attic and crawl spaces. A little extra insulation in your home’s attic or crawl space can save you a lot of money in heating bills. You need at least 11 to 12 inches of insulation in your attic. Since ceiling joists are about that high, you know you need to add more insulation if you can see the ceiling joists.
4. Get your duct work checked. A home with central heat can lose up to 60% of its heated air before that air reaches the vents if ductwork is not well-connected, sealed or insulated. That’s a huge waste of money.
5. Reverse the direction of your ceiling fans. This pushes hot air down and re-circulates it through the house.
6. Move furniture off your vents. How easy is that?!
7. Wrap your pipes. If you’re worried about your pipes freezing and bursting, wrap pipes in areas that are not heated with pre-molded foam rubber sleeves or fiberglass insulation. Wrapping the pipes leading into and out of your home can help prevent water damage and possible flooding too, especially in basement or crawl space areas.
8. Take the hoses off the spigots. Water expands as it freezes, and any water that’s trapped in pipes has the potential to split them as it cools. Store your hoses in the garage for the winter.
9. Clean the chimney. Before starting that fireplace, make sure the chimney is clean and your smoke detectors are working and have fresh batteries. And everyone in the family should know where your fire extinguisher is and how to properly use it.
10. Shut the door. Have guest rooms or other rooms you don’t use? Close the vents in those rooms and shut the doors.
11. Clean the gutters. Avoiding water overflows especially in icy or snowy conditions. Most of the leaves have fallen from the trees by now. Keep an eye on the gutters and downspouts to be sure they’re clear of leaves and are draining properly.
12. Invest in a programmable thermostat. Program your heating system exactly the way you want it, so that your house isn’t heating when nobody is at home.
Remembering these important home winterization tips each year before winter starts will help you prepare your home to be warm, energy efficient and safe – even if the weather outside turns frightful.
Don’t forget to share these great tips with friends, family and co-workers. We’re sure they would appreciate the energy efficiency and safety reminders.
In the Rochester area and surrounding counties the weather keeps changing – it’s warm, it’s cold, it’s warm again – but soon the cold days will be upon us for good. Save money this winter and help the environment by winterizing your home. It’s easy to do, and you’d be surprised
how these simple steps can make a big difference in your utility bill and your comfort level.
1. Get your furnace inspected. Furnaces should be cleaned and tuned by a professional annually. It’s not an expensive service, and it will keep your furnace running efficiently and safely. Remember to change furnace filters often.
2. Check your home for air leaks. Especially around doors and windows. Adding weather stripping and insulation is one of the easiest things you can do. Add weather stripping around doors and caulk or foam around gaps in windows to help keep the warm air inside.
3. Insulate your attic and crawl spaces. A little extra insulation in your home’s attic or crawl space can save you a lot of money in heating bills. You need at least 11 to 12 inches of insulation in your attic. Since ceiling joists are about that high, you know you need to add more insulation if you can see the ceiling joists.
4. Get your duct work checked. A home with central heat can lose up to 60% of its heated air before that air reaches the vents if ductwork is not well-connected, sealed or insulated. That’s a huge waste of money.
5. Reverse the direction of your ceiling fans. This pushes hot air down and re-circulates it through the house.
6. Move furniture off your vents. How easy is that?!
7. Wrap your pipes. If you’re worried about your pipes freezing and bursting, wrap pipes in areas that are not heated with pre-molded foam rubber sleeves or fiberglass insulation. Wrapping the pipes leading into and out of your home can help prevent water damage and possible flooding too, especially in basement or crawl space areas.
8. Take the hoses off the spigots. Water expands as it freezes, and any water that’s trapped in pipes has the potential to split them as it cools. Store your hoses in the garage for the winter.
9. Clean the chimney. Before starting that fireplace, make sure the chimney is clean and your smoke detectors are working and have fresh batteries. And everyone in the family should know where your fire extinguisher is and how to properly use it.
10. Shut the door. Have guest rooms or other rooms you don’t use? Close the vents in those rooms and shut the doors.
11. Clean the gutters. Avoiding water overflows especially in icy or snowy conditions. Most of the leaves have fallen from the trees by now. Keep an eye on the gutters and downspouts to be sure they’re clear of leaves and are draining properly.
12. Invest in a programmable thermostat. Program your heating system exactly the way you want it, so that your house isn’t heating when nobody is at home.
Remembering these important home winterization tips each year before winter starts will help you prepare your home to be warm, energy efficient and safe – even if the weather outside turns frightful.
Don’t forget to share these great tips with friends, family and co-workers. We’re sure they would appreciate the energy efficiency and safety reminders.
ProTech Home Inspections wishes you and yours a happy and healthy Holiday Season.
Warmest regards,
Bill Richards
ProTech Home Inspection, Inc.
(585) 377-3876
Five things Home Buyers Should Know
RISMEDIA, December 15, 2009—(MCT)—Interest rates on the benchmark 30-year, fixed-rate mortgage dipped to a 38-year low recently, giving consumers another reason to consider purchasing a home or refinancing their current one.
Freddie Mac recently stated the average rate on a 30-year loan was 4.71% with an average 0.7 point, the lowest rate since the agency began its weekly tracking of long-term interest rates in 1971. A point is equal to 1% of the loan amount, payable as a lump sum at closing. While the decline wasn’t overly dramatic, the dip is likely to get people wondering whether it’s time to sign on the dotted line.
The 5 following questions may help you decide if now is the time to go ahead and purchase a home or refinance your current home.
Q: Why are rates so low?
A: Since early January, the Federal Reserve has been purchasing mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae in an effort to stabilize the housing market by making homes more affordable for consumers. The Federal Reserve Bank of New York, which is managing the program, plans on purchasing $1.25 trillion of securities.
Q: Are rates expected stay this low?
A: It’s hard to tell, but don’t count on it because the lending landscape is likely to change next year. In September 2009, the Fed said it would gradually wind down the purchase program, ending it by March 30, 2010. That has some in the mortgage lending industry worried.
In a recently published mortgage survey, more than 60% of Bankrate.com’s panel of experts predicted that rates will move higher over the next 30 to 45 days. How much higher is anyone’s guess. Last year at this time, the average 30-year, fixed-rate mortgage was 5.53%.
Q: Why do different mortgage surveys come up with different average interest rates?
A: It depends on which lenders are in their sample, when the survey was taken and whether the rates quoted are the posted rate, the application rate or the commitment rate. Also, some surveys take into account the points paid to secure the rate.
But regardless of the survey, the general consensus is that rates are ultra-low right now and may be the lowest the market will see.
Q: What else does a consumer need to know?
A: The lowest rates are offered to the most credit-worthy customers who can make sizable down payments. Shop not just for the interest rate and the points involved but also for the fees involved, which can vary widely from one lender to another.
If you’re refinancing, remember the bigger the loan, the greater the payoff for finding a lower interest rate. Savvy customers put in their paperwork with a lender and set a “strike” interest rate at which to lock in the loan, a good move considering rate volatility.
Several refinancing calculators are available online that let borrowers plug in all the required numbers and determine the monthly savings and how long it will take to recoup the expense of a refinancing.
Q: So is now the best time to buy a home?
A: It depends on personal situations. Homebuyers certainly have a lot of factors working in their favor right now—low interest rates, plenty of marked-down homes for sale and an extended and expanded federal tax credit that will expire in the spring.
On the flip side, there’s growing sentiment among analysts that housing prices, which are showing ever-so-minor improvement, may fall further. The reason? Lenders are expected to get better at determining which borrowers will qualify for loan modifications. That means lenders also will get faster at moving homes through the foreclosure process.
Mark Zandi, chief economist at Moody’s Economy.com, recently predicted that housing prices nationally will hit bottom in 2010’s third quarter. That means anyone buying a house now could see the value of their investment initially depreciate.
(c) 2009, Chicago Tribune.
Distributed by McClatchy-Tribune Information Services.
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