real estate Archives - Page 16 of 101 - Real Estate News and Commentary

October 25, 2019October 25, 2019

Fall Home Maintenance

If you feel that your always doing maintenance on your home, you’re not alone. But the truth is that homes require regular maintenance. Fall is here and time to get to work. Fall home maintenance can help your home keep you comfortable, dry and healthy. Because of the temperature changes and potential for severe weather, the fall is an opportune time to check your roof, gutters, furnace, and chimney.

Most don’t realize that hurricane season goes on through the end of November, which means we could experience sever weather events beyond Thanksgiving. Don’t wait until a storm arrives, check your roof to make sure you stay dry this season. Although today’s commonly used roofing materials are meant to last twenty-five to fifty years, it doesn’t mean that it is maintenance free. Even if your roof was replaced recently, it’s a good idea to have a licensed roofer inspect it for lifting, broken, or missing shingles. The roofer should also inspect for loose or missing flashing and damaged ridge vents. To prolong the roof’s life, any damage should be repaired immediately.

The trees shed their leaves during the fall, and lots of leaves end up in the gutters and downspouts. Gutters and downspouts are designed to carry water away from your home to prevent water penetration in your basement. If the gutters and downspouts are clogged, the system becomes inefficient or doesn’t work at all. Many home owners clean the gutters without checking the downspouts. A clogged downspout will essentially make a clean gutter ineffective. Additionally, gutters can become loose over time and won’t function as intended. Clogged and/or damaged gutters and downspouts should also be repaired immediately.

Because temperatures tend to get colder during the fall, it’s recommended to have your furnace inspected and cleaned by a licensed HVAC technician. The purpose of the fall inspection is to ensure the furnace is operating safely and efficiently. A well-maintained furnace can help it last beyond the average life expectancy. Cleaning and testing the furnace components (such as the blower, ignition, and electronics) as well as replacing filters will help increase the system’s efficiency. Furnaces are becoming increasingly complex machines that require specialized training to inspect and repair. Even furnace air filters can be difficult to replace in newer models (some filters are only available from the manufacturer). If your furnace uses a combustible fuel (such as natural gas, oil, propane, etc), test your home’s carbon monoxide detectors. CO detectors have a limited life span and must be replaced if not working properly.

If your home has a fireplace, schedule a chimney inspection before the evening temperatures get colder. Because proper fireplace and chimney operation is a health and safety matter, don’t put it off. Regardless if your fireplace is wood or gas burning, regular maintenance requires an inspection and cleaning. Any repairs should be completed prior to usage. The chimney should also be inspected, cleaned and repaired as necessary by a qualified licensed contractor. A well-maintained fireplace and chimney will help properly vent CO out of the home, and can prevent a chimney fire.

Many home owners put off fall home maintenance because it’s tedious. To save time, many home owners are hiring a “Home Service Company” that manages seasonal home maintenance. Some maintenance programs are essentially “bundled” handyman services. However, before hiring a home service company for your fall maintenance, check that they have properly licensed service techs.

Original article is published at https://dankrell.com/blog/2019/10/25/fall-home-maintenance/

By Dan Krell
Copyright© 2019

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Disclaimer. This article is not intended to provide nor should it be relied upon for legal and financial advice. Readers should not rely solely on the information contained herein, as it does not purport to be comprehensive or render specific advice. Readers should consult with an attorney regarding local real estate laws and customs as they vary by state and jurisdiction. Using this article without permission is a violation of copyright laws.

October 15, 2019October 15, 2019

How to Market a Home Sale

Some homes seem to sell themselves while others need help. If your home needs help, understand that effective use of marketing tools can increase your home’s appeal, as well as communicate your home’s value to sell it faster and for more money. Home sale marketing tools have been used ever since real estate brokerage began. Although marketing tools come and go, some have stood the test of time. So you might be wondering how to market a home sale…

How to market a home sale according to a Realtor

If you ask your Realtor how to market a home sale, they may tell you about open houses, print ads, and the internet.

Probably one of the most effective marketing tools an agent has is the open house. Unfortunately, the open house is under-used, as well as often misused for the agent’s personal gain. Although the open house routine has changed, brokers have been holding open houses for over one-hundred years. The open house is the ideal time to communicate directly with home buyers and their agents about your home’s appeal and value. Try to avoid the use of open house gimmicks (such as cook-outs and carnivals) because they detract from the home sale message. Furthermore, make sure your agent is focused on selling your home during the open house, instead of focusing on signing-up new clients.

Although not as prevalent today, print advertising was a home marketing staple for over a century. Today, the majority of home buyers search for homes online, so it’s not likely that a print ad will have a wide audience. However, agents will uses post cards and door hangers to announce their new listing. Nonetheless, print advertising is still used to market niche homes and agent self-promotion.

You might be wondering how to market a home sale online? Internet and digital marketing is the most widely used form of advertising today. Internet marketing is easy because the MLS syndicates your home listing across numerous websites automatically! Although the syndication is automatic, your agent still needs to check how the listing appears. If the listing has incorrect information, it needs to be fixed or can hamper results.

There are a variety of other internet advertising opportunities, including a dedicated webpage, pay-per-click, and video. However, results, if any, may be limited if not used effectively.

One of the most important marketing tools to relay your home’s appeal and value is the camera. Technological advances in MLS feeds and digital photography now allow home buyers to see many pictures of your home and its surroundings in crystal clear clarity. However, don’t solely rely on new photo technologies for virtual tours, as the viewing ability may be limited.

Virtual reality (VR) is a cutting-edge tech being touted for virtual tours. Let alone that most home buyers don’t own a VR device, many buyers are likely to search homes when wearing a VR device is not appropriate, such as at work or on the metro. Even though VR marketing sounds cool, it’s reach is still very limited.

Although VR is yet to be an effective tool, augmented reality such as 3D virtual tours are coming of age. Although there are still limitations, updated internet browsers, broadband, and new 5G allow home buyers to view your home as a 3D model.

The basics.

Regardless of what real estate agents will tell you, the best marketing tools for your home are the list price, your home’s condition, and its location. However, a high list price, poor condition and/or location can be helped by your agent’s marketing tools. Effective marketing tools can also help increase your home’s appeal and communicate the home’s value. But ultimately, the nitty-gritty of selling your home depends on your agent’s savvy, ability to facilitate an offer, and negotiate a price.

Original article is published at https://dankrell.com/blog/2019/10/15/how-to-market-a-home-sale/

By Dan Krell
Copyright© 2019

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October 7, 2019November 23, 2021

Housing Finance Reform Time

Earlier this year, President Trump released a memorandum indicating the need to reform the current structure of housing finance. Although some believe this initiative is a distraction, the reality is that housing finance reform has been in the government sights for years. In fact, the current state of mortgage markets was only meant to be a temporary fix after the financial crisis of 2007.

Housing finance reform has been a popular political subject for years. Even before the financial crisis that resulted in the Great Recession, housing finance reform was front and center as a means to increase homeownership. However, it wasn’t until after the financial crisis that touched off in late 2007 that Congress saw the need to make immediate major reforms to the mortgage industry. Although a strategy was mapped out, not everyone agreed on the plan.

One of the first steps taken by Congress was passing the bipartisan Housing and Economic Recovery Act of 2008 (HERA). The purpose of HERA was to be a comprehensive attempt addressing the identified problems and concerns (at that time) that caused the financial crisis. HERA created the Federal Housing Finance Agency (FHFA) to provide oversight of the Government Sponsored Entities (GSE). Among the goals set by HERA was to “modernize” FHA and reduce Fannie and Freddie’s role in mortgage markets. The fate of Fannie and Freddie has been debated ever since.

The subsequent government takeover of Fannie and Freddie all but froze out any private participation in the mortgage markets. A 2010 CBO report indicated that 90 percent of all mortgages were owned by Fannie Mae, Freddie Mac, and Ginnie Mae. Some estimate government’s involvement has been much higher when including FHA and VA loans.

Fast forward to March 27^th 2019, when President Trump issued a memorandum on the urgency of housing finance reform. Although the memorandum provides a rationale to change the system, the timing couldn’t be any more ideal (to help a seemingly plateaued housing market). The President’s push for reform acknowledges the dominant role of the GSE in mortgage markets without much competition from the private sector. The plan is to reduce taxpayer risk by expanding the private sector’s role. Furthermore, the goal is to “modernize government housing programs, and make sustainable home ownership for American families [our] benchmark of success.”

On September 5^th, the Treasury Department submitted its plan on housing finance reform. The pan, as described by a Treasury press release (Treasury Department Submits Housing Reform Plan to President; treasury.gov) “includes nearly 50 recommended legislative and administrative reforms to define a limited role for the Federal Government in the housing finance system, enhance taxpayer protections against future bailouts, and promote competition in the housing finance system.”

Although the result of HERA was a government monopolized housing finance industry, it was not the intention. Housing finance reform means returning to a competitive market that includes the private sector. However, it does not imply the end to government participation. Prior to the financial crisis, the competitive mortgage industry helped a record number of home buyers achieve homeownership. Reforming housing finance markets is key in returning to a stable and reliable housing market across all sectors and price points. Housing finance reform will increase homeownership opportunities for those who have struggled with the prospect of buying a home. And of course, home sellers will benefit from increasing numbers of home buyers entering the housing market.

Original article is located at https://dankrell.com/blog/2019/10/07/housing-finance-reform-time/

By Dan Krell
Copyright© 2019

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September 28, 2019November 23, 2021

Renovate Your Home

Once thought of as a supporting actor in the housing industry, home remodeling is poised to take the spotlight. The growing fascination with home remodeling is generating new renovation trends and research. It’s time to renovate your home! If you aren’t yet thinking of remodeling your home, chances are that you will be planning a home improvement project in the next five years.

Plaut & Plaut’s conclusion to their study (Decisions to Renovate and to Move; Journal of Real Estate Research; 2010; vol. 32; p.461-484) states, “Housing renovation is an important component of housing supply, yet one often ignored both in empirical analysis and in policy discussions about housing.” They point out that that renovating a home was becoming a “substitute for moving.” A possible cause for the trend in 2010 was twofold. First, many homes fell into disrepair during and after the Great Recession. During that time, many home owners could not keep up with regular maintenance, let alone emergency repairs. And second, there was a lack of quality homes for sale immediately after the Great Recession. As foreclosure and REO home sales subsided, many homes for sale showed signs of neglect through deferred maintenance.

Renovate your home.

Fast forward to 2019, home sale inventory continues to be a major problem for the industry (and will likely continue into the next decade). But home remodeling is picking up the slack to improve the nation’s home stock, as well as help increase quality home sale inventory. However, industry experts are learning there are other reasons that home owners are remodeling instead of moving. Trends that have been identified include seniors who are “aging in place,” and multigenerational homes.

Although a recent Freddie Mac study identified seniors who are “aging in place” as a cause of the ongoing home sale inventory shortage, aging in place is also stimulating home remodeling! Homeownership rates for seniors are much higher today than in past generations. Instead of moving to retirement communities or stereotypical senior housing, older home owners are staying put and renovating their homes for comfort and style.

Multigenerational homes became popular again after the recession, when grandparents, parents and adult children pulled resources to live in one home. The trend continues as aging parents are moving in with their children, and young adults are moving back into their parent’s homes. Remodeling a home to accommodate several generations may require turning a basement into an apartment, adding a main level bedroom and bathroom, or possibly building an addition to the existing home.

Even home owners who decide to move are remodeling their homes. According to NAR’s Remodeling Impact Report (nar.realtor), functionality and livability are the top reasons to renovate for a home sale. Most home buyers want a turnkey home that is functional, comfortable and energy efficient. Home sellers who improve their homes before selling typically sell faster and for more than those who sell their home “as-is.”

While “going green” has become a standard in home improvement, a Joint Center for Housing Studies of Harvard University (jchs.harvard.edu) publication “Healthy Home Remodeling: Consumer Trends and Contractor Preparedness” identifies healthy home remodeling as a growing trend. Healthy home building practices are intended on maintaining the physical and emotional wellbeing of the home’s occupants by using healthier building materials, such as “low-VOC paints and formaldehyde-free woods.”

When planning to renovate your home, home improvement experts recommend: create a budget and stick to it; only hire licensed contractors; and make sure your improvements have permits.

Original article is located at https://dankrell.com/blog/2019/09/28/renovate-your-home

By Dan Krell
Copyright© 2019

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September 21, 2019September 21, 2019

Homeowners Insurance Check-Up

Have you thought about your homeowners insurance lately? Chances are that unless you’ve made a recent claim, you probably haven’t given it much consideration. If you’re like most homeowners, you probably think that you homeowners policy is a “set-it and forget-it” item. Maybe it’s time for a “homeowners insurance tune-up” to make sure you’re protected.

Unfortunately, most homeowners don’t really know too much about their homeowners policy until it’s needed. And it’s only when they make a claim they are surprised to know about the limitations of their policy. In fact, United Policy Holders (uphelp.org) states that about two-thirds of homes are underinsured by an average of eighteen percent! (United Policy Holders is a non-profit whose mission is to be a trustworthy and useful information resource and an effective voice for consumers of all types of insurance in all 50 states). Besides the many underinsured homes, many homeowners are surprised to find out about policy exclusions when they make a claim.

Although it may seem unfortunate, it’s not unusual for home buyers to underinsure their home at the time of the purchase to help save on their closing costs. They either believe they will upgrade their policy at a later date, and/or believe that they will never have to make a claim. This is especially true for first-time home buyers, who are most vulnerable and rely on their Realtor and loan officer for advice.

To help homeowners understand and chose their policy coverage, the Maryland Insurance Administration publishes A Consumer Guide to Homeowners Insurance (insurance.maryland.gov). First, understand the purpose of homeowners insurance is to help you recover from the financial effects of a loss that is covered by your policy. Additionally, a homeowners policy may “help protect you if someone is hurt or has their property damaged because of something you do or if something that you own hurts someone else or damages their property.”

According to The Guide, there are a number of types of homeowners insurance. To save money, many homeowners opt for a specific hazard policy that meets the requirements of their mortgage lender. Nonetheless, they may not realize that their coverage is severely limited, and their home is underinsured. However, there are broad coverage policies that are more comprehensive.

The price of a homeowners policy is not fixed. There are many considerations that go into the pricing. For example, your insurance company will investigate if you have a history of making insurance claims. They will also research your home’s claim history through a CLUE (comprehensive loss underwriting exchange) report or an equivalent. Other considerations include (but not limited to) age and construction of your home, the access to and quality of local fire protection, amount of coverage, and deductible.

One way to possibly save on your homeowners insurance is to adjust your deductible. A deductible is an out of pocket expense that is required from you when you make a claim. Typically, the lower the deductible, the more expensive the policy.

Take the time for a homeowners policy “checkup” with your insurance agent. Review your coverage and make adjustments as needed to protect you and your home. The Maryland Insurance Administration’s Consumer Guide recommends that your read the Declaration Page as well as your policy to make sure you have the coverage and amounts you requested. Also, because your valuables coverage may be limited or excluded, you may need additional coverage or policies. Also, consider purchasing a separate flood insurance policy.

Original article is located at https://dankrell.com/blog/2019/09/21/homeowners-insurance-check-up

By Dan Krell
Copyright© 2019

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