7 SIMPLE & SMART BASEMENT REPAIRS TO CONSIDER

No space in your home is more accommodating and homey, or conversely scary, than your basement. A nicely finished basement can be the entertainment centerpiece of your entire home, housing your big-screen TV, the most comfortable couches in the place and a warm, inviting atmosphere that wraps each guest in comfort.

But, if your basement is unfinished or has other lingering issues, it can be a downright scary place to spend any amount of time. Here are a few simple tips to help you fix your basement: 

#1 Gutter Extensions

Believe it or not, one of the easiest and smartest things you can do to fix your basement takes place outside. By adding extensions to your gutters' downspouts, you can avoid a lot of the issues that commonly plague basements, from foundation issues to leaking walls, mold and mildew buildup. Gutter extensions carry water away from the foundation of your house, helping to prevent seepage and long-term damage from soil erosion. Average gutter extensions cost no more than $10 per foot.

#2 Outer Foundation Work

There are two big steps you can take on the outside of your home that will protect your basement and improve your foundation. Your home ideally sits on a crown of soil that slopes six inches over the first 10 feet in all directions away from your foundation. If the soil around your foundation has settled, build it back up with a shovel and some dirt to ensure water does not build up against the foundation wall.

Second, reshape your landscape by creating a berm beyond the eaves of your home. This will prevent rot, termites and water from getting too close to your foundation. The minimum suggested distance for a dirt berm is six inches away from your home's foundation. You can complete both of these steps in a weekend and help prevent water from pooling against your foundation and leaking into your basement.

#3 Plug Visible Gaps

A number of pipes and vents have to exit the basement of your home through the foundation walls. Examples include the water pipes leading to outdoor faucets, bathroom fan vents and dryer vents. The holes drilled into the foundation to allow for pipes and vents to escape can lead to water issues in your basement through seepage and general rain intrusion. You can easily seal these cracks and holes yourself by using hydraulic cement or polyurethane caulk, both of which retail for about $20.

#4 Repair Leaky Pipes

Insulate any pipes collecting condensation. Insulation will prevent the buildup of condensation on the outside of pipes carrying hot water in the winter months and cold water in the summer months.

Always call a plumber to tackle larger jobs like major leaks or cracks. Many times these pipes run to other parts of your home and require a professional to properly address the problem.

#5 Insulate Your Walls

You can also prevent foundation damage by insulating your walls. As the environment inside your home heats and cools, condensation can build up on exposed foundation walls.

As the condensation builds over time, cold water can expand and crack your foundation, while warm water in the summer can lead to mold and mildew. Insulating your walls establishes a barrier between the internal environment of your home and the temperature outside.

#6 Install Drywall

If you want to improve your basement further, consider installing drywall over the insulation. This can help to dampen the temperature swings in your basement, holding in cool air in the summer and warm air in the winter.

#7 Window Repairs and Replacement

Basement windows are another source of leaks in your basement. Replace your old, faulty weather stripping or apply a polyurethane caulk around the edges to insulate your window frames. For windows that are outdated, upgrading to energy efficient windows will drastically improve the conditions in your basement and prevent seepage of both air and water.

Conclusion

There are many smart, simple ways to fix up your basement in order to create a safe, enjoyable space for friends and family.

Source: Realty Times | Andrea Davis | 09302016

4 Reasons to Buy This Fall

It’s that time of year; the seasons are changing and with them come thoughts of the upcoming holidays, family get-togethers, and planning for a new year. Those who are on the fence about whether or not now is the right time to buy don’t have to look much further to find four great reasons to consider buying a home now, instead of waiting.

1. Prices Will Continue to Rise

CoreLogic’s latest Home Price Index reports that home prices have appreciated by 6% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 5.4% over the next year. The Home Price Expectation Survey polls a distinguished panel of over 100 economists, investment strategists, and housing market analysts. Their most recent report projects home values to appreciate by more than 3.5% a year for the next 5 years.

The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes sense.

2. Mortgage Interest Rates Remain at Historic Lows

Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage have remained at or below 3.5% for 13 consecutive weeks. The Mortgage Bankers Association, Freddie Mac & the National Association of Realtors are in unison, projecting that rates will increase by this time next year.

Any increase in rates will impact YOUR monthly mortgage payment. A year from now, the percentage of your income that you spend on housing will increase substantially if you choose to wait.

3. Either Way You Are Paying a Mortgage

Everyone should realize that, unless you are living with your parents rent-free, you are paying a mortgage - either your mortgage or your landlord’s. As a paper from the Joint Center for Housing Studies at Harvard University explains:

“Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return. That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.”

4. It’s Time to Move on with Your Life

The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise.

But what if they weren’t? Would you wait?

Look at the actual reason you are buying and decide whether it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer or you just want to have control over renovations, maybe now is the time to buy.

If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.

Source: Keeping Current Matters | The KCM Crew 09262016

Tips on how to make a successful offer

So you’ve been searching for that perfect house to call a ‘home’ and you finally found one! The price is right, and in such a competitive market you want to make sure you make a good offer so that you can guarantee your dream of making this house yours comes true!

Freddie Mac covered “4 Tips for Making an Offer” in their latest Executive Perspective.Here are the 4 Tips they covered along with some additional information for your consideration:

1. Understand How Much You Can Afford

“While it's not nearly as fun as house hunting, fully understanding your finances is critical in making an offer.”

This ‘tip’ or ‘step’ really should take place before you start your home search process.

As we’ve mentioned before, getting pre-approved is one of many steps that will show home sellers that you are serious about buying, and will allow you to make your offer with the confidence of knowing that you have already been approved for a mortgage for that amount. You will also need to know if you are prepared to make any repairs that may need to be made to the house (ex: new roof, new furnace).

2. Act Fast

“Even though there are fewer investors, the inventory of homes for sale is also low and competition for housing continues to heat up in many parts of the country.”

According to the latest Existing Home Sales Report, the inventory of homes for sale is currently at a 4.7-month supply. This is well below the 6-month supply that is needed for a ‘normal’ market. Buyer demand has continued to outpace the supply of homes for sale, causing buyers to compete with each other for their dream home.

Make sure that as soon as you decide that you want to make an offer, you work with your agent to present it as soon as possible.

3. Make a Solid Offer

Freddie Mac offers this advice to help make your offer the strongest it can be:

“Your strongest offer will be comparable with other sales and listings in the neighborhood. A licensed real estate agent active in the neighborhoods you are considering will be instrumental in helping you put in a solid offer based on their experience and other key considerations such as recent sales of similar homes, the condition of the house and what you can afford.” 

Consider ways of making your offer stand out! Many buyers write a personal letter to the seller letting them know how much they would love to be the new homeowners. Your agent will be able to help you figure out if there are any other ways your offer could stand above the rest.

4. Be Prepared to Negotiate

“It's likely that you'll get at least one counteroffer from the sellers so be prepared. The two things most likely to be negotiated are the selling price and closing date. Given that, you'll be glad you did your homework first to understand how much you can afford.  

Your agent will also be key in the negotiation process, giving you guidance on the counteroffer and making sure that the agreed-to contract terms are met.”

If your offer is approved, Freddie Mac urges you to “always get an independent home inspection, so you know the true condition of the home. If the inspection uncovers undisclosed problems or issues, you can typically re-negotiate the terms or cancel the contract.”

Bottom Line

Whether buying your first home or your fifth, having a local real estate professional who is an expert in their market on your side is your best bet to make sure the process goes smoothly. Happy House Hunting!

Source: Keeping Current Matters | The KCM Crew 09212016

Don’t Underestimate the Importance of Using an Agent When Selling Your Home

When a homeowner decides to sell their house, they obviously want the best possible price with the least amount of hassles. However, for the vast majority of sellers, the most important result is to actually get the home sold.

In order to accomplish all three goals, a seller should realize the importance of using a real estate professional. We realize that technology has changed the purchaser’s behavior during the home buying process. For the past three years, 92% of all buyers have used the internet in their home search according to the National Association of Realtors’ most recent Profile of Home Buyers & Sellers.

However, the report also revealed that 95% percent of buyers that used the internet when searching for a home purchased their home through either a real estate agent/broker or from a builder or builder’s agent. Only 2% purchased their home directly from a seller whom the buyer didn’t know.

Buyers search for a home online, but then depend on an agent to find the actual home they will buy (53%), to negotiate the terms of the sale & price (48%), or to help understand the process (60%).

The plethora of information now available has resulted in an increase in the percentage of buyers that reach out to real estate professionals to “connect the dots.” This is obvious, as the percentage of overall buyers who used an agent to buy their home has steadily increased from 69% in 2001.

Bottom Line

If you are thinking of selling your home, don’t underestimate the role a real estate professional can play in the process.

Source: Keeping Current Matters | KCM Crew 09192016

Why Getting Pre-Approved Should Be Your First Step

In many markets across the country, the amount of buyers searching for their dream homes greatly outnumbers the amount of homes for sale. This has led to a competitive marketplace where buyers often need to stand out. One way to show you are serious about buying your dream home is to get pre-qualified or pre-approved for a mortgage before starting your search. Even if you are in a market that is not as competitive, knowing your budget will give you the confidence of knowing if your dream home is within your reach. Freddie Mac lays out the advantages of pre-approval in the My Home section of their website:

“It’s highly recommended that you work with your lender to get pre-approved before you begin house hunting. Pre-approval will tell you how much home you can afford and can help you move faster, and with greater confidence, in competitive markets.”

One of the many advantages of working with a local real estate professional is that many have relationships with lenders who will be able to help you with this process. Once you have selected a lender, you will need to fill out their loan application and provide them with important information regarding “your credit, debt, work history, down payment and residential history.” Freddie Mac describes the 4 Cs that help determine the amount you will be qualified to borrow:

1. Capacity: Your current and future ability to make your payments
2. Capital or cash reserves: The money, savings and investments you have that can be sold quickly for cash
3. Collateral: The home, or type of home, that you would like to purchase
4. Credit: Your history of paying bills and other debts on time

Getting pre-approved is one of many steps that will show home sellers that you are serious about buying, and it often helps speed up the process once your offer has been accepted.

Bottom Line

Many potential home buyers overestimate the down payment and credit scores needed to qualify for a mortgage today. If you are ready and willing to buy, you may be pleasantly surprised at your ability to do so as well.

Source: Keeping Current Matters | KCM Crew 09132016

HERE’S HOW TO TAKE ADVANTAGE OF REAL ESTATE FORECLOSURES

Foreclosures do appear in order to settle a dispute between the borrower and the lender but the truth is that it is always the buyer that has the highest advantages. We are faced with a world of opportunities at the moment and the foreclosure rates are higher than they ever were. Because of this, you want to know exactly how to take full advantage of foreclosures. That is possible when you remember the simple facts that are presented in the following paragraphs.

Research

So many research resources are now available and you can easily consider them when you look for foreclose properties. You even have some foreclosure listing sites that come with an advanced search option. That makes queries a lot faster. Narrow down the listings based on location and the budget that is currently available. Always know exactly how much money you want to spend on the property. If you do not know this, you will lose a lot of time during the research.

Confirm The Home Assessment

 The foreclosed properties normally have a discount of up to 40%. However, you should not just assume this when you see the listing price. Take a look at the assessment that was done. If time is available and you are interested in the property, do hire your own assessor. The actual property value is what is very important at the end of the day as you want to be aware of the potential major repairs that may be necessary with the home. Renovation costs should be added to market value. A foreclosed property that you want to consider buying is normally one that requires as fewer repairs as possible.

Educating Yourself

Taking advantage of the very best foreclosed properties automatically means that you need to broaden horizons. There is a lot of knowledge that can be gained and based on all the information you acquire, it is possible to avoid various mistakes and errors. For instance, when you are educated you can be able to spend less money on very good properties. Obviously, the internet can easily help you out the most in finding the information necessary to be able to educate yourself.

Take The Initiative

You always have to seize initiative and look for an opportunity to take advantage of the opportunities available on the market. Try to find a bank or a lender that looks for house claims. These are great sources for you since they would present the opportunity of actually being able to learn about foreclosed properties. The homes do tend to be sold really fast once they hit the market. Also, when you have a good relationship with a lender, you may be given a loan to actually afford the foreclosure auction when it becomes available on the market.

 The bottom line is the investors that do take advantage of all information channels are those that always find the best possible deals. Because of this, you want to start networking and you need to learn all that you can about the facts that should be important in the process.

Source: Realty Times 09092016 

5 Reasons to Sell This Fall

School is back in session, the holidays are right around the corner, you might not think that now is the best time to sell your house. But with inventory below historic numbers and demand still strong, you could be missing out on a great opportunity for your family.

Here are five reasons why you should consider selling your house this fall: 

1. Demand Is Strong

The latest Realtors’ Confidence Index from the National Association of Realtors (NAR) shows that buyer demand remains very strong throughout the vast majority of the country. These buyers are ready, willing and able to purchase… and are in the market right now! Take advantage of the buyer activity currently in the market.

2. There Is Less Competition Now

According to NAR’s latest Existing Home Sales Report, the supply of homes for sale is still under the 6-month supply that is needed for a normal housing market at 4.7-months. This means, in most areas, there are not enough homes for sale to satisfy the number of buyers in that market. This is good news for home prices. However, additional inventory is about to come to market. There is a pent-up desire for many homeowners to move, as they were unable to sell over the last few years because of a negative equity situation. Homeowners are now seeing a return to positive equity as real estate values have increased over the last two years. Many of these homes will be coming to the market this fall. Also, as builders regain confidence in the market, new construction of single-family homes is projected to continue to increase over the next two years, reaching historic levels by 2017. Last month’s new home sales numbers show that many buyers who have not been able to find their dream home within the existing inventory have turned to new construction to fulfill their needs. The choices buyers have will continue to increase. Don’t wait until all this other inventory of homes comes to market before you sell.

3. The Process Will Be Quicker

Fannie Mae announced that they anticipate an acceleration in home sales that will surpass 2007's pace. As the market heats up, banks will be inundated with loan inquiries causing closing-time lines to lengthen. Selling now will make the process quicker & simpler. 

4. There Will Never Be a Better Time to Move Up

If you are moving up to a larger, more expensive home, consider doing it now. Prices are projected to appreciate by 5.3% over the next year, according to CoreLogic. If you are moving to a higher-priced home, it will wind up costing you more in raw dollars (both in down payment and mortgage payment) if you wait. According to Freddie Mac’s latest report, you can also lock-in your 30-year housing expense with an interest rate around 3.46% right now. Interest rates are projected to increase moderately over the next 12 months. Even a small increase in rate will have a big impact on your housing cost.

5. It’s Time to Move On with Your Life

Look at the reason you decided to sell in the first place and determine whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should? Only you know the answers to the questions above. You have the power to take control of the situation by putting your home on the market. Perhaps the time has come for you and your family to move on and start living the life you desire. 

That is what is truly important.

Source: Keeping Current Matters | The KCM Crew 09062016

DON'T HESITATE TO ADD YOUR SPOUSE TO YOUR TITLE

Question: I bought my single family home three years ago in my own name. Now I am married with a young family. I want to add my wife's name to the deed, but the local title company I contacted has recommended I get permission from the mortgage company to do this. According to the title company, adding her name without notice could cause my mortgage lender to cancel the mortgage. I then contacted my lender, who is insisting my wife be added to the mortgage -- and they will only charge $300 to accomplish this process. Does this sound right? Can I add my wife to the title without adding her to the mortgage? For that matter, do I need to add her name at all since if I die my wife automatically will inherit the house under my Will. How does inheritance of a house affect a mortgage anyway?

Answer: You have asked a lot of important questions, but this column is too short to give you a comprehensive response. However, here is my response to most of your concerns.

Your title company -- and the mortgage lender -- apparently are not aware of a law enacted by Congress in 1982, which deals directly with the issue of the due on sale clause.

A "due on sale" clause can be found in most mortgage documents. Oversimplified, it states that if the house is sold -- or otherwise transferred -- the lender reserves the right to call the entire loan balance due. In other words, the loan will not automatically be assumable. This clause was developed by lenders when rates were rising. Let's take this example: Mr. and Mrs. A purchased their house in l975 for $30,000, and obtained a mortgage loan of $25,000 at an interest rate of 6.5%. In l980, they sold the house to Mr. and Mrs. B for $75,000. Interest rates at that time were much higher -- in the range of 9.5%. In the absence of a due on sale clause (a non-assumable provision), Mr. and Mrs. B could have purchased the house and continued to pay the lender at the original rate of 6.5%.

Thus, lenders -- to protect their investment -- developed the concept of the due on sale. However, in l982, Congress address these issues, and specifically stated that "a lender may not exercise its option pursuant to a due on sale clause upon... (6) a transfer where the spouse or children of the borrower become an owner of the property."

There are other exemptions, but clause 6 is relevant to your situation.

Thus, it is very clear you have the right to add your wife to the title, without having the lender call the mortgage due. Furthermore, the lender does not need to have your wife added to the mortgage documents. You signed a mortgage (deed of trust) with your lender and it was recorded upon the land records. When you transfer the property to both of your names, that recorded document will be after the deed of trust. The law looks to priorities of recording; the first recorded document takes priority over the second recorded document. Thus, if you should fail to make your mortgage payments, and the lender would foreclose on the property, your wife's title interest would be subordinate to the recorded first deed of trust, and her interests could be eliminated by the foreclosure sale.

It would appear that the lender is completely protected, and does not have to charge you anything more for this protection.

Your second question raises the issue of inheritance. If the house is in your name only, upon your death there are several options.

1. If you have a Will, the house will go to the person named in your Will. However, your estate will have to be probated, which can be time-consuming and expensive.
2. If you have no Will, the house will be distributed in accordance with the laws of intestacy in the jurisdiction where you live. Depending on the state, your wife may get between one-third or one-half of your estate -- including the house.

If, on the other hand, your wife is on title with you as either tenants by the entireties (reserved exclusively for husband and wife) or joint tenants, she will automatically inherit the entire house. No probate will be required.

Your final question is also answered by the l982 law. Clause 3 states that the lender cannot exercise its option under the due on sale clause where title is transferred "by devise, descent, or operation of law on the death of a joint tenant or tenant by the entirety."

This is a general overview of an answer to your important questions. I have two recommendations for you.

First, discuss your personal situation with your own lawyers and tax advisors.

Second, consider transferring the house into your joint names as soon as possible. If, for example, you are sued and the plaintiff is awarded a large judgment against you, your house can be sold to satisfy that judgment if it is only in your name. If the house is held as tenants by the entirety between you and your wife, unless the judgment is against both of you, the house cannot be touched by a creditor of only one party to the marriage.

Source: Realty Times | 08302016