Great painting tips

Today's Trib featured a great article on painting techniques for tricky jobs. I wish I had read this article a few months ago--before I painted my entire house!

It talks about cutting in around windows, painting radiators and ceilings as well as a few other hard to reach places. To read the full article, click here.

It's the first of the month. Do you know where your assessments are going?

So you bought a condo. You pay the mortgage. You pay these things called assessments. You wish they weren't as high but whaddya gonna do? You're not really sure what they pay for. You're not really sure how they are figured. You just pay them and move on.

Look, it's time to take your head out of the sand. I am amazed at the number of condo owners who don't have a clue what their monthly assessments are paying for or what their association's annual budget is. The condo association exists to defray the cost and responsibility of maintaining the building. But you as an owner should know what your association is doing and how it is spending your money.

Consider these questions:

• Who is your management company or is your building self managed?
  
• What do your monthly assessments pay for?
• When does your condo association have their regular meetings?
  
• Who is your association president? Who is the treasurer?
• Do you have--or have easy access to--copies of your association's current budget proposed budget for next year, rules, declarations, etc?
• How much does your association have in reserves?

Condo associations come in all shapes and sizes--from small, self managed groups that meet for coffee once a month to large buildings whose assessments pay for many common-area amenities. You don't need to be the board president but you should, for your own sake, know what you are paying for. If you don't, it's time to start asking some questions. Get in touch with your president and/or treasurer. Request current copies of the budget breakdown. Attend the next meeting. It's your association--make it work for you.

FHA loans--a great option for many first time buyers

Did anybody catch Robert Siegel's piece on the resurrection of FHA loans on All Things Considered last night? It was an absolutely wonderful exposition on the Federal Housing Administration's history dating back to the Great Depression. In it, he discusses how FHA backed loans--once a popular choice for first time home buyers--fell out of favor in the late 90's. Consumers instead preferred the easier, quicker loan packages offered by mortgage companies that catered to high-risk buyers with poor credit, low income or no money for a down payment. Now that many of those companies have closed their doors do to poor management (in part because they recklessly handed out high risk loans to buyers who then defaulted,) the tried and true FHA loan is once again proving a valuable option. If you are looking to buy a home and considering what kind of loan program would work for you, do yourself a favor and listen to this piece. You can hear an audio recording of the story by clicking here.

Short Sales

Unfortunately, I am talking with more and more homeowners that are in trouble. They either bought their property or refinanced it at the height of the market a few years ago. Their expectations of appreciation haven't been met or, in the worst cases, their home's value has decreased slightly. Now they are faced with the prospect of selling their home and, after paying closing costs, they won't be able to pay off their loan.
A short sale is exactly that--the lender will essentially forgive a portion of the debt allowing the homeowner to sell the home for less then what they owe the bank. As you can imagine, banks aren't too thrilled at the prospect of losing money but they have their reasons to take this option as well. They might make more on the short sale than if the property goes into foreclosure, for instance.
For a more thorough explanation of short sales, here is a great article that outlines the basics of a short sale. As always, getting the right representation is essential. Working with both an attorney and a Realtor who has experience with short sales is crucial to a smooth, successful transaction. If you have any questions about short sales, in the Chicago area, please don't hesitate to email me: jbarclay@prupref.com

Apartment rents are going up

It stands to reason that, as the housing market slows, more and more people are renting. Many are would-be first time home buyers that just aren't ready to make the leap yet. Still some are homeowners that are choosing to return to renting for various reasons (that is the subject of a whole other post.) In any case, as the demand for rental units rises, so then does the cost of renting.
Nationally rents rose again during the second quarter with the Western US leading the way. Over time that has begun to hit renters where it hurts. Rising apartment rents have put a crimp in renters' budgets, according to data from Apartments.com. A recent survey taken on the website showed more than 60 percent of respondents spending more than the recommended percentage of their income on rent, with 20 percent devoting more than half of their annual salary on rent.
As for Chicago, if rents continue to rise, it is reasonable to think that we may again see an rise in home sales--just as we did in the "boom years" of 2001-2005. However, with more and more restrictions in the mortgage industry, first time buyers will probably not be given as much financial latitude as they had during the boom. So, while you may be renting now, be sure you are building up some savings for a down payment!

Preparing your home for an open house

Buyers are drawn to homes that appeal to their senses. This is important to remember when preparing your home for an Open House. Through sight, sound and smell, buyers should leave your home with a lasting impression. Here are some tips to showcase your home in the best-possible light.

Exterior
Start outside by inspecting the front of your home from across the street. Does it have curb appeal? It should look inviting, with a trimmed lawn and flowerbed and a freshly painted front door. Polish door handles and knockers and replace worn items such as a rusty doorbell. Consider adding a new doormat and flowering plants at the entrance. Do the windows need cleaning? Be sure to remove oil stains from the driveway.

Next check the side and back yards. Add some flowering plants to the back as well. Rearrange the outdoor furniture to look inviting. Put away gardening tools. Tidy around the grill area.

Interior
Now focus on the inside of the home where cleanliness, space, smell and lighting are key. First, get your house in tip-top condition by cleaning and clearing away clutter. Steam clean and vacuum the carpet. Make sure your floors are waxed and shiny. Touch up nicks on walls and make sure the porcelain sinks and tubs and metallic fixtures shine. Your kitchen and bathrooms should pass the white glove test. Be conscious of any lingering odors such as smoke, pets or strong-smelling foods. You may need to air out your home prior to the Open House. Consider grinding fresh lemons in the garbage disposal or even baking chocolate chip cookies. And don’t forget to empty all trashcans.

Next, set the mood. You want buyers to be able to picture your home as their own. Consider rearranging the furniture so that rooms look more spacious. Add accessories from rooms with too many furnishings to those that appear bare. Look at your countertops in the kitchen and bathrooms and the tops of your bureaus. Do they seem cluttered? Clear away and store as much as possible. The idea is to make your home appear spacious.

Lighting is also an important factor in creating an inviting atmosphere. Bright lights provide a cheerful environment and make a small space appear larger. Pull back all the drapes and open the blinds. Turn on all the lights. Make sure all the light sockets have working bulbs and install the maximum-wattage bulb that is safe for that fixture. For rooms that you want to have a warm, cozy feeling, use softer lights.

Don’t forget little touches such as fresh flowers, lighted candles in the bathrooms, new logs in the fireplace, or a bowl of fresh fruit on the kitchen counter. You may even want to set your dining room table with color-coordinated table settings.

An Open House is a terrific way to show your property to many people in a short amount of time. However, keep in mind that buyers may see seven or eight homes in a single day. The most memorable home will be the one that seemed the brightest, the most spacious and the most cheerful. So, don’t rely on buyers to use their imagination.
Help them capture it. Work with your real estate professional to get more tips on creating an unforgettable home.

How Important is a Home Inspection?

Should a buyer get a home inspection for a home they are buying? Should a seller order a home inspection prior to putting the property on the market? There are advantages for both. Simply put, a home inspection is a visual examination of both the physical structure and major systems of the entire home including: walls, ceilings, floors, decks, exterior covering, the roof, foundation, insulation and ventilation, plumbing, electrical, heating and air conditioning. It is not an appraisal to validate the value of a home, nor a pass/fail exam. A third-party inspector will give a report on the physical condition and suggest repairs.

Buyers
For buyers, a home inspection clause in the written offer that makes the purchase contingent upon the findings can provide peace of mind. If a serious problem is found, it allows room to renegotiate the purchase price or “opt-out” of buying the home altogether. However, this is usually uncommon. Typically, the seller will already have told the buyer about any major problems. More often, inspections reveal less serious defects that aren’t enough to warrant backing out of the transition. However, knowing about these minor problems can prevent major disasters down the road. In addition, if specified in the inspection clause, the cost of the repairs can be at the seller’s expense.
Another advantage to having a home inspection is it offers buyers an opportunity to become familiar with their new home and learn about maintenance to help in its upkeep. Although not required, it’s recommended that buyers be present during the inspection. This allows them to observe the inspection; ask questions about the condition of the home; and receive an objective opinion.

Sellers
For sellers, conducting a home inspection (or pre-inspection) before listing their homes puts the control back into their hands. When the buyer inspection finds problems, it can impede negotiations and cost the seller more in repairs. By having a pre-inspection, the seller can help eliminate any surprise findings after an offer has been made. The seller can make repairs before placing the home on the market and possibly even increase the value of the home.
A pre-inspection can also serve as a great marketing tool. Sellers are required by law to disclose any known defects in the home. Having a pre-inspection report available for buyers tells them that the seller has nothing to hide. It also gives them a clearer picture of the condition of the home.
If there are major problems found during the pre-inspection, it gives the seller an opportunity to disclose the condition up-front, making it less likely for the buyer to pull out of the deal or try to renegotiate the price.
Knowing the true condition of a home can bring peace of mind to buyers and sellers; and be one less hurdle in the home buying and selling process. Talk to you agent about when you need to contact a home inspector or to get a referral to a qualified professional.