Fixer Upper Myths

BOTTOM LINE, A home will only sell for what the market can bear. What this means is that no matter how many upgrades were made, or how much money has been invested in the upgrades, a home will only sell for what the majority of homebuyers are willing to pay.

Before deciding that your next home must be a fixer-upper, you should do some homework into what to expect when purchasing these types of homes. Many prospective homebuyers tend to have a romanticized version of the entire process, and are quite shocked when confronted with the hard reality. Fixer Upper homes can often represent a good deal, but there are some points that a homebuyer should be aware of before making that offer.

MYTH #1 . . .

I can make a "killing" in the real estate market by buying a run-down home, for tens of thousands of dollars less than the average home, fixing it up, and then immediately selling it for full price, or more.

FACT #1 . . .

Most homeowners looking to sell their "fixer upper" home understand that they will have to list their home at a price that reflects the cost involved in restoring the home to its original condition. The asking price of a fixer upper is usually calculated so that the savings represented by the lower than average market price is roughly equal to the amount of money that a buyer could expect to spend on necessary renovations. Updating the "look" of a home, or upgrading to higher-end finishes, is not included in these calculations, and you should be careful not to spend so much money on renovations that you are unable to recoup your investment. That is how you overbuild. 

MYTH #2 . . .

If I’m buying a fixer-upper home, I don’t need to bother with the added cost and aggravation of a home inspection because I already know what I’m getting.

FACT #2 . . .

WRONG!!! Your agent should make sure a home inspection is always included in your Residential Purchase and Sales agreement; and it is arguably even more important to include one when you are looking to buy a fixer upper. Structural defects are normally not visible to the untrained eye, yet will cost much more to repair than the obvious cosmetic fix-ups. Most licensed home inspectors will not only detail the defects that they uncover, but can also give you a good idea of the costs involved in fixing them. A good licensed and experienced Realtor representing you can help make sure all the areas of concern get addressed, and the right experienced agent can be an extra pair of trained eyes to help protect your interests. 

MYTH #3 . . .

It’s better to pay a lot less and buy a "fixer upper" in an undesirable area, than to pay more for a comparable "fixer upper" in a better neighborhood.

FACT #3 . . .

Most of us have heard the quote, "the three most important things to look for when buying a home are: location….location…and location!" While this is obviously meant to be funny, and is a somewhat over simplified rule of home buying, it does drive home the point of how important it is to consider where you will buy your home. Purchasing a fixer upper in a desirable neighborhood will cost you more initially, but the payoffs -- personal peace-of-mind and higher return on your home investment when you sell -- should not be overlooked.

MYTH #4 . . .

Once I fix this house up, I can turn around and sell it for double the price I paid.

FACT #4 . . .

WRONG AGAIN! A home will only sell for what the market can bear. What this means is that no matter how many upgrades were made, or how much money has been invested in the upgrades, a home will only sell for what the majority of homebuyers are willing to pay. Factors to consider when calculating your possible return on investment:

1. Location: What kind of a neighborhood is the home in?

The type of neighborhood will determine which type of buyers you will attract when you decide to sell. For example: An area consisting of mostly “first time buyers” will attract buyers who have a strict and limited budget. They are looking for affordability above all else – including high-end finishes and perfectly landscaped gardens.

2. Neighbors: What are the neighboring homes like?

A beautiful home surrounded by unkempt, run-down homes will sell for much less, than a beautiful home surrounded by well kept, nicely maintained homes. That neighbor with the junk cars in his driveway will still be there when the potential buyers move in and they know it. 

3. Surroundings: What are the surrounding features?

Buyers are willing to pay more for a home that is in a convenient, yet quiet locale. While you may find it convenient to side onto a school, many potential buyers would eliminate such a location due to the noise level associated with the presence of hundreds of excitable children, and the congestion caused by school buses and parents dropping off and picking up students. 

MYTH #5 . . .

I can make a lot more money by turning this single family home into a multi-family dwelling.

FACT #5 . . .

While this statement is for the most part true, it may not be possible. Most towns and cities have strict zoning laws that not only dictate the maximum allowable occupancy within any given area, but also dictate the size and design of a home when building new, or creating additions to an existing structure.

Once you have thoroughly investigated the pro’s and con’s associated with purchasing a fixer upper home, and you have decided that it’s right for you, be sure to "run your numbers".

1. List Price of Fixer Upper
2. Average Recent Sale Prices of Similar "Non Fixer Upper" Area Homes
3. Estimated Cost of Repairs from Reputable Source (e.g. referred Renovation Company)
4. Buffer Amount for "Unexpected" Repair Costs (usually 1/2 of estimated total)
5. Selling Expenses (real estate fees, lawyer fees, closing costs)
6. Amount of Profit You Desire versus Amount of Actual Profit

For example:
1. $200,000.00 = List Price of Fixer Upper
2. $255,000.00 = Average Sales Price
3. $ 25,000.00 = Estimated Repairs
4. $ 12,500.00 = Buffer for Repairs
5. $ 17,000.00 = Selling Expenses
6. $ 20,000.00 = Desired Profit Versus Actual

Profit of $500.00

If your intent was to purchase the house shown in the example above, make the repairs, and immediately list the house for sale, your Actual Profit shown is only $500.00. If, however, your intent was to purchase the same house, but actually live in it for a few years before selling, you would normally expect to turn a much better profit for three reasons:

• First, historically speaking, the real estate market normally goes up over time and your anticipated sale price would be higher - affording you more profit.
• Second, the money that you would have been paying in rent to live elsewhere - with no return - is actively paying down your mortgage and increasing your equity.
• Third, you will save money on income taxes due to your deductions on mortgage interest, some closing costs, etc.

As with all investments, though, nothing is guaranteed. So when looking to finance a home, keep in mind that the real estate market has taken some big hits in the past. Never overextend yourself financially.

Please note that the figures in the calculations shown were used for example purposes only. Local housing prices in Southern California, repair costs, and selling costs will vary greatly from one location to another. It is recommended that all Buyers thoroughly research their local costs and legal restrictions before purchasing.

Looking for real estate services? If you, or a friend or relative is looking for a new home, commercial building or lease, have them give me a call at (714) 584-5509, or send me an email at frank@resusa.org. There are a variety of listed and unlisted opportunities for investors and first time home buyers alike. Let me know how I can help. 

Top 10 Credit Dos and Don’ts

Nothing is more exciting to me than to hand over the keys to a brand new (or at least new to the buyers) home to a family that is purchasing their first home. For many, it is the realization of a dream that seemed to always be just around the corner, but has now finally arrived.    

Home ownership is a journey that can be filled with many challenges, and it is most definitely a process. The key to success is making sure that you fully understand the challenges, are aware of and have a good understanding of each step, and most importantly have sound counsel to walk you through this process that can be filled with many turns and unexpected surprises that only experience can help you avoid. 

This journey will begin with the mortgage application and preliminary credit check. You will be ultimately be asked to provide a mountain of documentation, and sign disclosures and other paperwork that, when all stacked together, looks like a trade bill instead of a real estate transaction; but get used to it. It’s part of the initiation into home ownership.  I will talk more about that in another blog.  But for now, here are some helpful tips to avoid the credit mistakes that many borrowers make during the loan process:

1.       DON’T APPLY FOR NEW CREDIT OF ANY KIND.  Including those “You have been pre-approved” credit card invitations that you receive in the mail.  Every time that you have your credit pulled by a potential creditor or lender, you lose points from your credit score immediately.  Depending on the elements in your current credit report, you could lose anywhere from 2-50 points for one hard inquiry.

2.       DON’T PAY OFF COLLECTIONS OR CHARGE OFFS during the loan process.  Paying collections will decrease the credit score immediately due to the date of last activity becoming recent.  If you want to pay off old accounts, do it through escrow, and make sure that 1) you validate that the debt is yours, and 2) that the creditor agrees to give you a letter of deletion.

3.       DON’T CLOSE CREDIT CARD ACCOUNTS.  If you close a credit card account it will appear to the FICO that your debt ratio has gone up.  Also, closing a card will affect other factors in the score such as length of credit history.  If you have to close a credit card account, do it after closing, and make sure it is a more recent account.

4.       DON’T MAX OUT OR OVER CHARGE ON YOUR CREDIT CARD ACCOUNTS.  This is the fastest way to bring your score down 50-100 points immediately.  Try to keep your credit card balances below 30% of their available limit at all times during the loan process.  If you decide to pay down balances, do it across the board.  Meaning, make an extra payment on all of your cards at the same time. 

5.       DON’T CONSOLIDATE YOUR DEBT ONTO 1 OR 2 CREDIT CARDS.  It seems like it would be the smart thing to do, however, when you consolidate all of your debt onto one card, it appears that you are maxed out on that card, and the system will penalize you as mentioned above in 4.  If you want to save money on credit card interest rates, wait until after closing.

6.       DON’T DO ANYTHING THAT WILL CAUSE A RED FLAG TO BE RAISED BY THE SCORING SYSTEM.  This would include adding new accounts, co-signing on a loan, changing your name or address with the bureaus.  The less activity on your reports during the loan process, the better.

7.       DO JOIN A CREDIT WATCH PROGRAM.  If you join a credit watch program, you can check your reports weekly, or even daily depending on the program you select.  (When you pull your own reports, you don’t get dinged for a hard inquiry.)  This way, if something does show up on your reports that has caused your score to go down, you’ll know it immediately, and you may be able to take care of the problem before closing. 

8.       DO STAY CURRENT ON EXISTING ACCOUNTS.  Like your mortgage and car payments.  One 30-day late can cost you anywhere from 30-75. If you pay your balance off each month, make sure that your payment posts at least a day before the due date. When the system does its monthly run on that due date, you will appear to have a zero balance. If you are making payments, try to pay more than the minimum.

9.       DO CONTINUE TO USE YOUR CREDIT AS NORMAL.  Red Flags are raised easily with the scoring system.  If it appears that you are changing your pattern, it will raise a red flag, and your score could go down.

10.    DO CALL YOUR LOAN OFFICER OR BROKER if you receive something in the mail from a creditor or collection agency that you believe may affect your score during the loan process.  Your loan officer may be able to supply you with the resources you need to stop any derogatory reporting to the bureaus.

Looking for real estate services? If you, or a friend or relative is looking for a new home, commercial building or lease, have them give me a call at (714) 584-5509, or send me an email at frank@resusa.org. There are a variety of listed and unlisted opportunities for investors and first time home buyers alike. Let me know how I can help. 

How to Choose a Title Company

I was just reading an agent's response to how to choose a title company on Zillow that made my toes curl. One idea even included checking the Yellow Pages! Yellow pages? Seriously? 

Just an FYI, your title company is providing you insurance on the title to your home or commercial building. I would imagine you would want them financially strong enough and efficient not to default on paying your claim should it come to that, or screwing up your vesting, or recording the wrong documents. Any of the aforementioned maladies could expose you to a scenario like someone knocking on your door, telling you that they own your home that you've been paying on, and to please move out quietly, or there will be trouble. The American Land Title Association (ALTA) offers guidelines. 

First American, Fidelity National and LandAmerica are the three largest financially. Many escrow and real estate agents have working relationships with these companies through reps that call on their local businesses. The financial strength of the big three makes them big targets for law suits, so you best believe their research and contracts are tight. 

The key is finding a good title officer that works for one of these larger firms or one of their affiliates.  An escrow company would be the best place to look for a title company referral. The good ones do thousands of real estate transactions per month, and know who the good reps are and how to reach them. Most real estate agents aren't close enough to a volume of closings to know, or form their opinion on a closing that missed a Friday 5pm deadline that had nothing to do with the company or the rep, but the lender wiring funds on time. Escrow officers have the inside scoop.  

Let me know if I can help.

Frank Codispoti, Realtor

REMAX TerraSol
714-584-5509

Looking for real estate services? If you, or a friend or relative is looking for a new home, commercial building or lease, have them give me a call at (714) 584-5509, or send me an email at frank@resusa.org. There are a variety of listed and unlisted opportunities for investors and first time home buyers alike. Let me know how I can help. 

Trendsetting Colors of 2016

Color plays a crucial role in your home's interior. Thankfully it's one of the easiest design elements to change, particularly if you select appliances and other permanent fixtures in classic hues. Is 2016 the year you repaint a few rooms? Here's a look at the latest color trends, as well as tips on how to incorporate them into your home. 

The Non-Color
Benjamin Moore's color of the year is white, or Simply White (OC-117) to be exact. This popular neutral can be tough to pull off, especially with hundreds of variations to choose from, many of which have blue, gray or even pink undertones.

Give your kitchen a fresh look by painting upper cabinets white and bottom cabinets a darker or more colorful hue. Or put together a serene all-white bedroom with contrasting textures like natural woods and linens against sleek ceramic or stone.

Pretty Pastels
Color expert Pantone includes pastels in the 2016 interior design color trend forecast. The Ephemera palette, one of nine highlighted color sets, includes soft hues like Tender Yellow, Wan Blue and Pale Peach.

Nervous about using pastels at home? First consider the natural light in the room throughout the day. South-facing rooms bring in bright midday light that heightens both warm and cool colors. West-facing rooms receive a warm evening light, while east-facing rooms have a bluish tint later in the day. Avoid using the same hue as the incoming light; no soft blue in an east-facing room, for instance.

Night Tones
Paint company Akzo Nobel is highlighting the night in response to growing research about the effects of light pollution. The new interest in darkness translates into colors like deep purple or midnight blue -- hues that mimic the tones of both dusk and dawn.

The bedroom is a great place for dramatic color. Incorporate lighter shades of your main hue for depth, bring in touches of white for contrast, and include a heavy dose of gold to evoke the light of the "golden hour" before dusk and after dawn.

Looking for real estate services? If you, or a friend or relative is looking for a new home, commercial building or lease, have them give me a call at (714) 584-5509, or send me an email at frank@resusa.org. There are a variety of listed and unlisted opportunities for investors and first time home buyers alike. Let me know how I can help. 

10 ESSENTIAL HOME SECURITY HACKS

The bungling burglars from Home Alone may have seemed like idiots for being so easily foiled by a bratty 8-year-old boy, but when it comes to home safety during the holidays, they’re much more realistic than Kevin and his swinging-paint-can defense.

That being said, according to statistics from the FBI, there were an estimated 1,729,806 burglaries in 2014. On the positive side, the U.S. Department of Justice studied the numbers too, finding that household burglary rates are surprisingly lower in winter and higher in summer.

No matter what time of year, you probably aren’t keen on leaving a kid behind to defend the old homestead. And once that sense of security is shattered, you might be prompted to make an expensive decision — such as adding your home listing to the real estate scene just to give yourself some peace of mind.

Before you take serious action, put these 10 holiday safety tips to work and make your home less of a target this holiday season — or any season.

1. Beef up security systems
Sure, you’ve set the alarm and have motion-activated lights outside, but there are some additional things you should consider doing to fortify your home. For instance, install a heavy-duty lock strike plate on your door; it’s the weakest part and where thieves may try to break in. You can also add sash pins to double-hung windows to make them more secure.

2. Look as though you live there when you’re out of town
If you live where the grass is still growing, be sure to mow it before you leave so your home looks well taken care of. Expecting a big snow? Have someone on retainer to shovel your walk and driveway for the same reason.

3. Windows + extension cords = bad
Who doesn’t love twinkly lights? But if you want to bring a touch of Clark Griswold to your home, be sure you aren’t running electrical extension cords through your windows. If they don’t close and latch, you’re sending burglars an invitation to invade.

4. Don’t fall for door-to-door solicitations
A common way to scope out what kind of goodies you have in your home is by posing as a charity asking for donations. If someone comes to your door, don’t open it, or ask for an ID that links them to the charity — and don’t let them see inside.

5. Use the latest tech
Take advantage of a devices like FakeTV, which mimics the flickering light of a TV to make it look as though you are home, or simple lamp timers that can turn appliances like radios and TVs off and on to simulate your presence. You can also buy Wi-Fi- or IP/Internet connected plug-in devices that allow you to turn lights on and off remotely with your cellphone.

6. At Christmas time, keep your tree out of public sight
The Christmas tree in front of the window looks lovely, all piled with presents for thieves to see — and take. Either keep your tree away from prying eyes or wait until Christmas Eve to put out your presents.

7. Do your packing out of sight
Heading out to the river, or Las Vegas?  Make sure you pack the car and any toys you plan to bring on the trip discretely. Nothing says rob me more than someone loading their car for a long term trip in the street in front of their house.  

8. Be smart about boxes
Don’t leave deliveries on your front porch, or empty boxes on the curb for everyone to see. Ask the delivery service to place your shipments at the rear door. Break down the empty boxes, turn them inside out, and put them in your container on the day trash is picked up. 

9. Make a record of expensive items
Got some big-ticket items at home? Collections, or firearms? It’s a good idea to take a picture of anything pricey, and even jot down the serial number. Should the worst happen, you will have a record of what was taken — or at the very least, a handy reminder of exactly how much you should be insuring yourself for.

10. Don’t publicize your vacation plans
It’s hard to fight the allure of Facebook and Instagram. But it’s probably not the best idea to share your travel plans with your 500 closest friends online. Your Facebook profile might not be as private as you think — and it’s better not to take the risk. Make sure your posts during your trip are only distributed to friends or family. 

Looking for real estate services? If you, or a friend or relative is looking for a new home, commercial building or lease, have them give me a call at (714) 584-5509, or send me an email at frank@resusa.org. There are a variety of listed and unlisted opportunities for investors and first time home buyers alike. Let me know how I can help. 

CNBC Explores U.S. Housing in 2016

In Conversation with Marcus & Millichap’s Hessam Nadji they discuss the following:

	Top housing markets for 2016
	Emerging and recovery markets – where investors can find opportunity
	Increased housing construction still falling short of demand
	Low energy prices offer housing a boost

CLICK HERE for the video.

Looking for a new home? If you or a friend or relative is looking for a new home, have them contact me at 714-584-5509. I can help you sell your current home and find the perfect new home. 

10 Things You Must Put in Your Next House

Americans love getting a deal, which might begin to explain why so many consumers flock to shopping malls on Black Friday. Of course, they aren't always ending up with a real bargain, but sometimes this doesn't matter. As long as an item or service has a high perceived value to people, there’s a good chance they’ll choose to buy it. 

That is why staging is so important, as well as adding improvements to your home that have a high perceived value. By creating this higher perceived value, you will stand a better chance of closing the deal with buyers. Try offering higher value at a lower total cost. For example, if your kitchen was inexpensive to build, but looks like it costs you a fortune to have installed, you will have accomplished raising the perceived value of your home. home. 

Here are a few ideas of ways to make your home stand out.

Radiant-heated bathroom floors

Forget fancy water-filled tubes embedded in concrete. You can now buy simple mesh-and-wire mats that install fast and easy under ceramic tiles. The cost range is quite wide to do your homework. They all come with a variety of thermostats and configurations. 

An average Electric Floor Heating Kits runs on 120 volts and puts out roughly 12 Watts Per Square Ft., capable of heating an area of 20 sq. This feature eliminates waking up to a cold bathroom floor. 

Stone counter tops 

Sea Grass Limestone Countertop

Kitchen counters play a huge role in establishing value in a kitchen. Many older homes came with melomar type counter. Upscale kitchens upgraded those to butcher block. 

Over the years, decorating tastes changed, and most upgrades today include a granite counter top as a minimum feature. Counter tops are trending towards more exotic stones, metals and glass. There are many choices in quality and color. Choose wisely as quality can greatly vary.    

Glass tiles

Yes, glass is cool and getting cooler. And yes, it’s pricey, but can make a room stand out. If you have a smaller budget, use glass sparingly as a kitchen or bath backsplash to liven things up. Glass themes like our example and add creativity and style. It reflects light, shimmers with color, and is virtually maintenance-free. If you shop carefully, you can buy it for as little as $7 a square foot from importers directly.

Dual flush toilet

Yes, now we have high tech push button toilets. It's all part of the effort to save water. Each button on a dual flush toilet uses a different amount of water based upon whether or not you are flushing liquids or solids. Literally, number 1 or number 2. Go figure. One can only imagine the perceived value of a dual-flush toilet installed in a powder room close to a public area.  The pricing is about $250, but there are deals everywhere. That is about $130 or so more than a standard toilet, but adding a dual flush can save a typical family of four up to 6,000 gallons of water per year.

Low-flow showerheads

The California Energy Commission adopted new standards for shower heads this past August in a move that will eventually lead to the toughest water use rules in the nation. Read more here..

There’s a chance you’ve used a new low-flow showerhead and don’t even know it. And that’s the point. These units use air to deliver the same robust performance as a traditional showerhead, but with a flow rate of 1 gallon per minute as opposed to 3.5 gallons a minute. THere are different designed that use turbines built into the units.  

Tankless water heater

An on-demand (or tankless) water heater is an excellent choice for an endless supply of hot water. They cost a bit more than your average tank style unit, but instead of heating water at a constant temperature 24 hours a day, the energy-saving unit only activates when there is a need for hot water somewhere in the house. What's more, it hangs on the wall saving floor space, and you have the option of installing it inside or outside your home. 

Remember, once you make the change to tankless, you will always want to make sure you have enough drinking water on hand in case of emergency. 

Water re-circulator

Whether you have a tank type or a tankless water heater, one of your best strategies for saving water is by installing a water recirculation system. If a tankless water heater is a little too edgy (and costly), you can still give your home buyers instant hot water by using a high-efficiency conventional heater and a water re-circulator. With the push of a button, the device circulates ambient-temperature water from the line so hot water is instant and nothing is wasted down the drain waiting for the water to get hot.

Folding patio-doors

Nothing says open floor plan like folding patio doors. This feature allows you to completely remove the barrier to your private outdoor areas. In 2007, four out of the most popular 10 products among BUILDER readers were folding patio-door systems. Here's why: When closed, these doors look like any other, but they fold up like an accordion to provide access to the great outdoors. Full-wall installations are pricey, but you can reduce cost with a two-panel system.

Central vacuum

A central vacuum cleaner is a built-in system consisting of a power unit, collection canister, and hose. Connected by special pipes installed within interior walls, the system collects dust and deposits it in the centrally located canister. Five times more powerful than an upright, it’s quiet and efficient. Plus, an entry-level system can cost as little as $800. Most people who have lived in homes that have had them prefer having it than not having it. The convenience of not having to lug heavy equipment around the house. 

Insulation 

Insulation isn’t sexy, but when it’s 95 degrees in the summer or the mercury dips below freezing in the winter, your buyers will thank you for this, even if they didn't see the perceived or real value when they first signed the sales contract. Forget the entry-level insulation, and go for something that will really stuff the wall and the roof. While you’re at it, don’t forget the attic. 

Material manufacturers have applied some interesting technology like this pictured product that takes phenolic foam as the core material, which is reinforced by Aluminum foil on both sides. It is of light weight, high performance, on-combustible, fire-proof, excellent thermal insulation and heat preservation, which is widely used as walls and partition boards.  

Looking for a new home? If you or a friend or relative is looking for a new home, have them contact me. I can help you sell your current home and find the perfect new home. Complete the Client Registration form to receive daily listings by email that match your specific search criteria.

Preparing Your Home for Colder Weather

Do you make a home maintenance and repair schedule each year? You should, and they are easy to make. Basically it's a to do list of chores to do before summer and chores to do before winter. Sprinkled in between are all those wonderful home improvement projects. An afternoon of maintenance in the fall or spring can save time and money when the winter or summer hits. 

Here are several areas to check and inspect before the cold arrives:

Gutters -- If you don't have them you should. Not only can they collect and direct rainwater away from your foundation, they can also help you to capture it for use in your indoor planters. Clean them out before and after the leaves fall. Even if you don't have trees shedding leaves, you will still have debris that collects and washes down into them. To make the occasional cleanup job even quicker, install gutter guards, which help prevent leaves from clogging up gutters.

Roof -- While you have the ladder out, take a look at the roof. Check for damaged or torn shingles and replace them. Also look for cupping or areas that look concave. The latter can can be an indicator of damage to your sub-roof. If in doubt, give your trusted roofer a call. Next inspect the flashing around skylights, the chimney and any roof vents. Replace bad flashing before a winter storm tests it for you. Also make sure that the caulking around the flashing is still doing the job. If not, a little touch up is in order. Also, make sure that you have a screen covering any gable vents to the attic, or pockets under the eaves. A warm, dry place is exactly what pests are looking for on a cold night.

Windows -- After the heat of summer, the seals around windows can expand and contract, and the rubber can become brittle. Check for air leaks around your home, including around window frames. If you find gaps, re-caulk as necessary. Check with your home improvement store. Caulk is sold in a multitude of formulas and colors. Make sure you are using the right mix for the job. 

Chimney -- Over time, soot and creosote can build up in chimneys, which can become dangerous. Over time, the layers build up on the walls of your chimney flew and can restrict the air flow that is moving the smoke out of your fireplace and out of the house. The build up can also be  afire hazard. You can clean out the ashes yourself, but if you use your fireplace often, schedule a more advanced cleaning with a chimney sweep each year. Another option is to purchase and burn a creosote sweeping log in your fireplace twice a year. Also, in seismically active areas it's always a good idea to check the structure of the chimney itself. Are there any broken or missing bricks, or has it started to pull away from the house? I've seen damage like this before in Orange County CA, so I know it must also occur in other markets. 

Furnace -- Annual furnace maintenance is an important task to leave to a professional who can make sure the system is safely able to keep you warm throughout the winter. What can homeowners do? Change the air filter regularly to ensure proper and efficient airflow. Make sure that your vents are clean and free of debris. Consider a vent cleaning as dust and dirt that blow by your filter (that sometimes you forget to change) and lands in the duct work of the house where it can blow into your rooms thus creating moire sneezes and dusting. They make both disposable and reusable filters. All have rating for purity. If allergies are an issue, I would recommend looking at an air purifier upgrade for your furnace. 

Detectors -- Fall is a good time to replace the batteries in both smoke and carbon monoxide detectors. Use daylight saving time as a reminder, and make the battery change right after you set back any of your unconnected clocks in your home. 9 volt batteries have gotten ridiculously expensive, but don't let that expense of changing them deter you. They sell inexpensive 9 volt batteries, as well as other sizes, for a dollar at most stores of this type.   

Yard -- Fall is no time to skimp on yard maintenance. Make sure to keep the leaves raked or mulched, as leaves can hold moisture in the soil and cause a variety of lawn diseases. Fall is also the perfect time to aerate the lawn. Aeration involves perforating the soil with small holes to allow air, water and nutrients to penetrate the grass roots. This helps the roots grow deeply and produce a stronger, more vigorous lawn that can require less watering. There are several tools available on the market, as well as service providers who will aerate and fertilize your lawn for you.  

Drain Hot Water Heater -- Draining your hot water heater one or twice a year will remove sediment. Be sure to take a moment to make sure the pressure valve is working properly.

Clean Washer and Dryer -- Take this opportunity to clean and maintain your washer and dryer. Check the hot and cold water hoses for cracking and leaks. Clean or replace the water inlet filter on your washer. Move the dryer away from the wall, take the vent hose off of the back of the dryer, and use a vacuum cleaner to remove lint from the ducts. Lint build up is a huge fire hazard, so make sure you reach in there and pull out any large clumps of lint that might get stuck in the folds of the duct. 

Trim Tree Limbs -- Check your trees for limbs that are growing dangerously close to power lines or to your roof. If you have tree limbs that are close to your roof or close to power lines, make sure they are trimmed before winter. Heavy snow and ice on branches can cause them to break, and fallen branches can cause lots of damage to your home or utilities. You don’t want to be stuck in the cold without power!

Looking for a new home? If you or a friend or relative is looking for a new home before winter arrives, have them contact me. I can help you sell your current home and find the perfect new home to spend your fall, winter, and beyond. Sign up to receive listings by email.

Wait Times for Short Sale or Foreclosure Victims Reduced

The waiting periods for loans has changed. Home owners only have to wait 2 years after a Foreclosure or 1 year after a Short Sale to be eligible for a purchase money loan to buy real estate. 

This is a great time to take advantage before the interest rates go up. Let your friends who went through a foreclosure or short sale know that the waiting period they originally were told of 3 years or even 7 years to buy again have totally been changed.

Here are some other features:

1.  Prior Housing and Credit Events? Less waiting time.  620 FICO required

2.  High Debt to Income Ratio? They can go up to 50%, but be careful not to get house poor. ;)

3.  Lack of Mortgage or Rental History? No problem. This is great for those families that have had to move around allot. 

4.  Gift Funds? 100% available. This is great way for families or interested parties to contribute towards the purchase of a home. You can borrow up to $1 million and there is no prepayment penalty.

Looking for a new home? If you or a friend or relative is looking for a new home before winter arrives, have them contact me. I can help you sell your current home and find the perfect new home to spend your fall, winter, and beyond. Sign up to receive listings by email.