Home buyers become internet detectives

Home buyers have access to more information in today’s internet connected society than ever before. Home buyers have become internet detectives, doing their home buying research online.

Years ago, a buyer would have to act as a detective to verify or uncover more information about a home; their sleuthing could take up lots of time at the court house and library, as well as interviewing neighbors. Besides the seemingly countless number of online resources for home searches, buyers today also have many internet resources available to them to obtain home and neighborhood information.

Home buyers are internet detectives.

Neighborhood and demographic information are now readily available online in many home search websites. For example, neighborhood information currently displayed includes information about a zip code that includes: home sale statistics; general population demographics; economic, school information and environmental information; and even information about quality of life. Other popular search sites with lots of valuable information include (but not limited to): zillow.com, trulia.com, and redfin.com.

Many home buyers also look to greatschools.org as a reference for local school information. The website describes itself as a national non-profit whose mission is to “inspire and support families to champion their children’s education – at school, at home and in their community…”

As interest in the paranormal has increased, more people are interested in knowing if someone died in their home. For a fee, diedinhouse.com offers a report that could include: if a death occurred in the home, the name of the deceased, cause of death, list of previous residents, and possible information about the death.

Besides commercial websites; state, county and municipality websites also offer an abundance of information. For example, some of the local agencies that maintain websites hold valuable data to home buyers and owners. For example, the Montgomery County Department of Housing and Community Affairs’ eProperty Data Mining Tool. The tool allows you to search multiple State and County databases for information about a home. Information that may be included: Department of Assessments and Taxation Real Property, code enforcement, permits, and Montgomery County Police.

Home buyers who are curious about neighborhood crime can find a number of commercial websites that map crime and offender information; however, to get accurate and timely information, you should probably look to the local police departments. By directing specific questions to the police by visiting local precincts, you can obtain a wealth of information. However, much of the information can also be viewed online: For example, the Montgomery County Police website has links to local crime statistics and even active warrants. The site also has a link to the sex offender registry (which is maintained by the Maryland Department of Public Safety and Correctional Services) as well as information about receiving alerts when an offender moves into your zip code.

Another local agency that offers information is the Montgomery County Department of Permitting Services. The website offers a data search tool that can display recent permit applications and permit status for a specific address. The site also includes zoning and code information. However, online County Master Plan (montgomeryplanning.org) information is offered by Montgomery County Planning Department, and can be viewed at.

As online resources grow, anyone can join the “internet detectives.” Although there are many online resources available, the websites listed here are not inclusive; I am not endorsing any commercial websites. Besides being cautious when visiting websites; you should acknowledge that many commercial sites are not 100% accurate, as disclaimers will disclose that technical and/ or reporting errors can occur in the collection and/or reporting of data.

Original located at https://dankrell.com/blog/2014/01/24/home-buyers-become-internet-detectives/

By Dan Krell
Copyright © 2014

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.

January 1, 2014July 2, 2019

Can a home make you sick?

How safe are the materials that were used to build and finish your home?

There are a number of materials that were commonly used in the home that at one time were considered safe, but are now known to cause health problems. And although some of these materials have been discontinued in residential buildings years after production and use, some can be found in older homes. However, there are other materials that are of concern that are still used in building and furnishing materials.

Lead was used as a residential paint additive for many years to enhance the paints’ properties; it was thought to increase paint durability and speed up drying. Since the acknowledgement that lead has deleterious effects on the nervous system, especially in developing children; there was a push to “get the lead out” of paint and other consumer products. Lead paint was subsequently discontinued and banned in 1978 from residential paints. Today, there are numerous disclosures about the possibility of lead paint existing in homes that were built prior to 1978; homebuyers are provided the opportunity to conduct a risk assessment to determine lead levels in homes where lead paint may exist. Lead certified contractors must be used when making repairs and renovations to homes built prior to 1978 (epa.gov).

Before it was acknowledged that asbestos is linked to a number of serious health issues, including mesothelioma; asbestos was used for thousands of years. The ancients mined and found many uses for asbestos. Considered to be a “miracle mineral,” construction use of asbestos mushroomed in the late nineteenth century. Although there were government bans on asbestos products during the 1970’s and 1980’s, asbestos is still used in some commercial applications (asbestos.com).

There has been a longstanding grassroots concern about vinyl and PVC materials because of the linked health issues thought to be from the off gassing and leaching of phthalates (phthalates are a group of chemicals used in the production of plastics). Vinyl and plastic building materials have also been widely used in homes for decades: vinyl flooring has been used in bathrooms and kitchens; vinyl has been used in laminate flooring; and PVC piping has been used for plumbing. The EPA has been and continues to study the production, use and effects of phthalates (epa.gov).

Imported drywall is a more recent issue that was reported to cause severe respiratory ailments; oxidized jewelry and corroded pipes were also highlighted. Although the bulk of the reports of problems associated with the imported drywall emanated from Florida, the Consumer Product Safety Commission (CPSC) has collected hundreds of reports from eighteen states and the District of Columbia. A majority of the complaints reported that affected homes were built in 2006 and 2007; which coincided with a time when building materials were in high demand due to a considerable increase in construction and the rebuilding of hurricane-damaged states (cpsc.gov).

As a result of the increasing awareness of toxins in and out of the home, the “green building” movement has become popular. Besides helping maintain a healthy environment, a key feature of green building is to also maintain air quality in the home; green building uses natural materials to avoid off gassing of toxins. For example, formaldehyde based materials, which are can be found in some “manufactured” woods and some carpets are avoided.

More information about green building, air quality and safety of building materials can be found at the EPA and CPSC websites.

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By Dan Krell
Copyright © 2014

November 20, 2013November 23, 2021

Realtor production or customer satisfaction – importance and meaning of rankings

What’s more important? The number of homes your real estate agent sells; or the customer service they provide?

“#1 Real Estate Agent.” “#1 in Sales.” “Top 1% Nationwide Producer.” If you’ve spent some time with real estate agents, you may notice how many tout themselves as being #1. And although some of these rankings are legitimately given by a recognized organization; many agents may be creating their own production ranking designation to use for marketing purposes.

by Dan Krell © 2013

Ranking designations are used in various industries to demonstrate a superlative product, or excellent service. One of the most recognized organizations that bestow ranking designations is J.D. Power & Associates. J.D. Power & Associates is most notable for ranking customer satisfaction in the auto industry, but they also rank satisfaction and other industries including real estate. In fact, you may see the J.D. Power & Associates ranking on a home builder or national/regional broker.

Production ranking is more prevalent in the real estate industry, however, and there are a number of organizations that rank the production of agents, teams and brokers. With the growth of the internet, unofficial production rankings can be found on many home search and real estate data websites. REAL Trends (realtrends.com) is a company that is dedicated to providing analysis of the residential real estate industry, and offers real estate data online; the site provides agent, team and broker production rankings in the U.S. and Canada

The National Association of Realtors® has been toying with the idea of adding a ranking system on the consumer home search site Realtor.com (operated by Move.com). The pilot program, called “AgentMatch,” has not been received well by many agents. There are concerns about the perceptions created by the displayed production statistics; some critics cite issues about statistics that may not be representative of production, which also may not tell the entire story behind of many transactions.

Another NAR initiative in agent ranking is a pilot program called the “Realtor Excellence Program.” Currently the program is being tested in several U.S. markets; and as a recent Chicago Tribune article (Realtor group testing agent ratings program, March 15, 2013; by Mary Ellen Podmolik) reported, it is being received well. What’s different about the “Realtor Excellence Program” from other agent ranking programs is that this program provides agent ranking through customer satisfaction. A quote from Laurie Janik, general counsel of the Mainstreet Organization of Realtors® says it all, “I’m looking at reducing liability. I want happy sellers and happy buyers…Right now we measure agent performance based on how many deals they did…But was (the transaction) a train wreck?”

This distinction between agent production and customer satisfaction is an important one. Although you might think that high volume production and customer satisfaction are not mutually exclusive, the relationship usually has some negative correlation; customer satisfaction typically takes a back seat when production goals increase. If a high volume real estate agent or team is invested in maintaining or growing their production, you need to ask about their commitment to customer satisfaction.

Many agents use national averages to determine that they are in the top percentile in production. Using these averages and stats, I also find myself in the “top tier” of various categories. Be that as it may, many consumers deem self promotion about production in a service industry as gauche and trivial. Many consumers are less interested in hiring agents whose focus is about being #1; rather, consumers want to be treated as #1.

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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. This article was originally published the week of November 18, 2013 (Montgomery County Sentinel). Using this article without permission is a violation of copyright laws. Copyright © 2013 Dan Krell.

October 16, 2013July 5, 2019

Debt ceiling, default, and fear; how housing market will react

There are no courthouse default notices, and it is unlikely for real estate investors to go knocking on the white house doors to try to purchase it as a short sale. Although a government default is not quite the same as a default on your mortgage, a government default will nonetheless have consequences in the housing market.

A U.S. default would be uncharted economic waters; there is no way to know exactly what will happen – but it will most certainly not be good. When speculating about the consequences of a government default, some talk about 1930’s Germany and 1990’s Russia; these defaults occurred for different reasons and had different outcomes.

Experts discuss a possible consequence of a government default to be an almost immediate economic recession, which could rapidly evolve into a depression. The resulting shock from a possible economic contraction would filter through the economy and would no doubt result in mass layoffs. And just like the most recent recession, mass unemployment had deleterious effects in the housing market and real estate industry resulting in waves of foreclosures and property devaluation.

Other possible outcomes of a default could be runaway inflation, sky high interest rates, and/or general economic calamity. In these scenarios, forget about a housing recovery; home buyers could find it exponentially difficult to obtain a mortgage to buy a home. Homeowners who have fixed rate mortgages should be safe from payment increases; however those with adjustable rate mortgages could possibly see interest rate increases hitting adjustment caps.

In an October 9th article, Morgan Housel wrote (“What Happens If the U.S. Defaults on Its Debt?”; fool.com); “…Those holding bad mortgage debt fared the worst in 2008, but financial pain spread throughout the entire financial system, and to areas that had nothing to do with real estate. The reason was fear. If the global financial system is built on credit, it is supported by trust. When you remove trust, people hide now and ask questions later. The system freezes. I don’t want to lend to you because you might hold something bad, or be lending to someone who is holding something bad, or be lending to someone who is lending to someone who is holding something bad. So people just wait. Credit stops flowing, and as we learned in 2008, that simply devastates the economy… But a credit crisis doesn’t need to last long to bring the house down. Lehman Brothers was well capitalized two days before it was bankrupt…”

Fear is a very powerful emotion that can be used to influence popular beliefs and behavior. As congressional budget talks have been at a standstill, talk of a government default seems to be on everyone’s mind as we approach the debt ceiling. And although we fear a government default, the distinction must be made between default and debt ceiling.

Put in a very simple way: raising the debt ceiling is akin to asking for an increase in your credit card limit. However, you don’t default just because your credit limit is not raised; you default when you fail to make payments on your debt. Even if there is no debt ceiling increase, many experts agree that a chance of a U.S. default is slim; it has been estimated that treasury revenue is much more than the amount needed for debt servicing. Regardless, the fear of a government default is enough to chill the housing market.

By Dan Krell
Copyright © 2013

October 2, 2013July 5, 2019

Another government shutdown article – what home buyers and sellers should know

Yes, another column about the federal government shutdown (like you need to read another column about the shutdown, right?). Although it is expected that the majority of home purchases won’t be affected by the shutdown, home buyers and sellers should be on their toes to avoid possible pitfalls; buyers and sellers should be aware of what could affect their purchase/sale. And even if both houses of Congress agree to some continuing resolution before publication, the shutdown information could be useful during the next budget battle (which is likely to occur in about two weeks).

Many experts agree that the government shutdown won’t last long. Regardless, there is a consensus that the longer the shutdown continues, the potential increases to impair the housing market. Additionally, some experts expect the shutdown to dovetail into an anticipated bitter debt ceiling battle later this month.

It has been widely acknowledged that the recovering housing market has been a major contributor to the 2% GDP growth. Economists have agreed that it would be logical to maintain government functions that compliment and support the still fragile housing recovery.

However, regardless of what you hear; the shutdown will certainly affect the housing market. Some mortgage originations and closings will be affected, and some buyer activity may be put on hold until the government shutdown ends (like the sequester). Although there appears to be a commitment to maintain FHA and VA loan operations during shutdown, new loan processing may experience delays (Federal department shutdown contingency plans can be viewed on Whitehouse.gov).

FHA’s (Department of Housing and Urban Development) contingency plan states that: “The Office of Single Family Housing will endorse new loans under current multi-year appropriation authority in order to support the health and stability of the U.S. mortgage market. (FHA endorsements currently represent 15% of the market.) Approximately 80% of FHA loans are endorsed by lenders with delegated authority. The remaining 20% are endorsed through the FHA Homeownership Centers, leveraging FHA staff with a contractor that works on-site.”

The VA’s (Department of Veteran Affairs) contingency plan states that during 1995-96 government shutdown, “Loan Guaranty certificates of eligibility and certificates of reasonable value were delayed.” However, learning from that experience, the shutdown contingency plans indicate that there will be 95% of employees who are either fully funded or required to perform “excepted” functions.

Conventional loans should be unaffected as Fannie Mae and Freddie Mac operations continue through the shutdown; Fannie and Freddie operations depend on lender paid fees.

Unlike shutdowns in the past (the last Federal shutdown was 1995-96), approximately 90% of all current mortgages in the country are insured, guaranteed, and/or purchased by federal entities. During the last shutdown, a thriving private sector mortgage industry existed; private investor groups that purchased mortgages on the secondary market, as well as many portfolio lenders (lenders that keep and service loans they originate) offered alternatives to home buyers. During the last shutdown, home buyers who were unable to obtain or wait for government loan approval, had other options for financing that included “Alt-A” and sub-prime mortgage programs that seem to not widely exist today.

If you are planning to settle on a home in the next few days, confirm with your lender that there are no delays. If you are in the process of looking for a home, check with your loan officer about a reasonable closing date before you enter into a sales contract.