Title Insurance

Once in awhile I would have a buyer that questions the costs/benefit of title insurance. You can take your chances of purchasing real estate without it. I would strongly advise against it. If your placing a mortgage on your property, your lender will insist on their coverage. Title insurance will protect yourself from financial loss in the event regarding the rights of ownership. For instance if someone did not sign the deed during the chain of ownership, or someone signed a deed that was not the owner of the property. Title insurance will pay the costs to defend you against a covered claim. You need to have a owner's policy to protect your interest. Most Real Estate attorneys can conduct closings as well as a Title insurance company. If you need more info on this topic feel free to contact me at: findit@LehighValleyRealty.com

Reducing Energy Costs

One topic that draws a lot of attention is reducing energy costs. I put a few of them in this post. Since home heating oil is 6% higher this year, and last year it was 35% higher it makes sense to do some obvious measures. The basic one is caulking and weather striping doors and windows. If you have the money for upgrading your windows a good choice would be a maintenance free vinyl clad windows, with low emittance coatings to double insulated filled with krypton or argon gas. If you can't afford new windows, storm windows may be a good choice. If you like a good reference go to: http://www.efficientwindows.org/ . On Southern facing windows you can gain some free heat, by keeping the curtains open during the day. If you are low on funds or may be renting a home, you can purchase the 3M shrink wrap kits that do a nice job.



You can save on your lighting needs with fluorescent compact light bulbs, which also run cooler. Light dimmers work well and save on your electric bill. They do offer dimmers that are compatible with fluorescent bulbs.



To reduce your heating costs, invest in a programmable thermostat. It will save you money and extend the life of your furnace/boiler. If you have a warm air system change your filter every 30 days. This goes without saying, have your system cleaned at least once a year. If your furnace/boiler is over 20 years old it may only be 55% to 70% efficient. Today's models 80% to upper 90 percent efficient. If you do need a new unit, go for the most efficient model you can afford, in the long run it will pay for itself over time. If you would like more info on this topic & other energy related topics visit U.S. Department of Energy site: http://www.eere.energy.gov/ If you have a topic you like more info on, drop me a line at: findit@LehighValleyRealty.com

Savings With Gas Water Heaters

Natural gas water heaters remain a top value. Next to heating and air conditioning systems, they are the largest energy consumer in the home. Consider that natural gas water heaters:

Cost less than half as much as electric water heating (An average household can take 14 showers with natural gas water heating for the same cost as 7 with electric.)

Heat water twice as fast as electricity.

Are environmentally friendly (Emits far less of the major pollutants that cause poor air quality.) source UGI

How to Price Your Home in 2007

Being a Realtor for 24 years, I had my share of challenging moments. I have to admit, I am up to be challenged. I pride myself to be able to solve problems and keep the process moving. Having said that, one of the most sensitive topics to a Seller is pricing of their home. For the most part it is their largest asset they have and also tied into this is the emotional attachment they have to their home. My job as their counselor, is to do a good job and show them the current market trends. I do this by providing them with solid documentation of comparable properties within the same geographical area and similar amenities. I prefer to use settled properties within 6 months of closing.


If recent comparable sales are not available based on the amount of sales activity or a rural setting, I can extend the time line up to 9 months. Doing this can on an occasion be problematic, even if you have lots of supporting information to support your price range. The seller may want to go much higher. Let me give you a few scenarios.



Seller: I went to Zillow.com and I found out what my home is worth "X" amount....Well computer generated values are relatively new However recent statistics show they can be off by as much as 23% plus or minus. I am sure down the road the software will become reliable. This is what Zillow.com conveyed to Realtors' .."The Zestimate home valuation is Zillow's estimated market value of a home, given the data we have available. It is a starting point in determining a home's value; it's not an appraisal. (After all, you've been in the house and we haven't!)".



Seller: My neighbor got what they wanted last year! Last year is last year. I will research and find out exactly what they received and research if their was any closing costs paid by the Seller on behalf of the Buyer.



Seller: I like to try listing my home for "X" which is higher. You could, but here is where you may have some trouble. The most critical time in any listing is the first 21 days of the listing. This is when you will get your blast of activity. So you have to see the wisdom of pricing your home correctly from the beginning. It is quite possible if your home is listed outside the recommended price range, you may have no or little activity.



Seller: My neighbor said my house is worth "X" amount. Well unless your neighbor is going to purchase your home, it is a moot point.



Seller: I agree with your value, I would still like to try a higher list price....You can, but this may be a more prudent approach. How about investing $350.00 for an independent fee appraiser to come out to appraise your home. Please be advised a buyer going for a mortgage will have an appraiser from their lender to value your home. With this market in a correction mode, I have seen appraisal's coming in under value. The Buyer has the opportunity to walk away from the sale, or the Seller adjusting the sales price to match the appraisal. The worst case scenario is the transaction can falter. In closing, I am not saying it is doom & gloom for the Seller. What I am honestly trying to convey is you have to adapt to this current market. In turn you will receive a fair value for your home, and your home will not be on the market for an extended time. The great thing is, you get to move on with your life. My final thought, Zillow.com does not know the neighborhood, I do and possibly your neighbors. Have a great day!

Seller's Property Disclosure

A Seller disclosure used in Pennsylvania is a 6 page document that must be filled out by the Seller prior to marketing their home. If it is an estate, foreclosure, or relocation buy out, they are not required. You may ask, What is a Seller Disclosure? It asks a series of questions, about all areas of the home, if you had any problems with the home, if you pulled permits for improvements to the home. If their are defects in the home. Do you have water leakage in the home? Was your home ever treated for wood-destroying insects? A big concern addressed are structutural items. You want to know what your source of drinking water is, this is addressed in this document. You will also know what appliances are remaining and if they being sold in a "as is" condition. A good tip! If appliances are staying, with the property, make note of model & serial number so they are not switched out. The disclosure will also state what tests were performed to the property, and the results of them. In a nutshell, it sparks the seller's memory on the condition of the home. Feel free to contact me if you need more info, on this posting or others. Have a great day!

Protecting Your Investment With Home Warranties

A past client of mine emailed me from Arizona this afternoon. I met them over 20 years ago and sold them their 1st. home. I listed and sold the same home last year. They wanted to know the name of the Home Warranty program that I placed on their home when they lived in Bethlehem. They would like the same program on their new home. This prompted me to to write a little bit on "Home Warranty" programs. First off they are great and well worth it for both the buyer and seller. They reduce a lot of concerns for both parties. What do they cover? Each vendor has their own coverage limitations. For the most part standard coverage are as follows, HVAC system, ductwork, plumbing system, Whirlpool motor & pump, sump pumps, water heater, electrical system, exhaust fan, built-in microwave, dishwasher, garbage disposal, cooking range, optional coverage would consist of swimming pool and built-in spa equipment, refrigerator, washer & dryer, and well pumps. Please be advised these do not cover a pre-existing conditions. You should be expected to pay a $60.00 deductible per occurrence. If you have lets say 3 plumbing leaks, this would be considered one deductible. The cost for a program is around $425.00.

Save Up By Saving Water

With over 2 billion Energy Star-certified products sold in the U.S. since 1992, energy-saving appliancesare becoming the rule, rather than the exception. Now, the EPA-the program's creator-is trying to duplicate its success with a new water conserving campaign called Water Sense. First up is a label for toilets that use less than 1.3 gallons per flush-that's 20 percent less water than the 1.6 gallons currently required by federal law. It'll be a few years before Water Sense sets the standards for other products, such as washing machines and dishwashers. Until then, follow these five simple steps to make your home more H2O-efficient:

1. Put a pitcher of drinking water in the fridge; letting the faucet run until water gets cold wastes two gallons per minute.
2. Fix leaks pronto. One drip per second adds up to 2,700 gallons a year.
3. Hose down the garden in the early morning or at dusk to avoid losing water to evaporation caused by the hot sun.
4. Don't use your toilet as a trash bin. Every unnecessary flush equals 1.6 gallons of wasted water.
5. Scrape, rather than rinse, plates when loading the dishwasher. (source Natalie Rodriguez)

What Is Involved With a Building Inspection?

I received an email the other day from Debra from Emmaus, PA. She wanted to know what are the ins & outs of a building inspection. Deb, the home inspection is quite interesting and educational to the new home buyer. I liked to equate it as a crash course on being a new homeowner. A good inspector will spend anywhere from 3-4 hours inspecting & performing tests on the building. During the course of the inspection, he or she will explain all the functions & maintenance of your home. I would advise asking many questions during your visit. I would like to give you a synopsis of what to expect. Please be aware, some of these tests & inspections may or may not pertain to the home your are purchasing. Lets start with the outside, the inspector will look at the lot, grounds, drainage, retaining walls, fences, foundation, windows, doors, decks, patio, porches, roofs, chimneys, gutters, garages, pool and spa, and any out buildings. On the inside, the inspector will check out the kitchen, appliances, bathrooms, ceilings, walls, flooring, fireplaces, screens, stairways, attic, insulation, basement, and obvious health & safety issues. On the mechanical side the inspector will check your, electrical, plumbing, HVAC systems. He should also give you tips on what may need servicing on a periodic basis. The tests that can be performed are for Radon Gas, Septic Inspection, Mold and Air Quality, Lead Based Paint, Wood Destroying Insects, Bacteriological Water Test for additional fee they can test for e-coli, scan for hardness, metals & pH. Other tests can be EIFS Inspection, that is a stucco like exterior coating that can be problematic, Moisture Intrusion Inspection & Carbon Monoxide. The costs for the inspections can range from $200.00 to $700.00 depending on what you like to have done. Thanks for your question.

Smart Homes Get Smarter

AT&T, iControl and Nobu offer some of these services for a monthly fee.

1. Smart sprinklers turn off when it rains.
2. Sensors detect when the medicine cabinet opens.
3. All blinds in the house are centrally controlled.
4. When the phone rings, caller ID is displayed on the TV.
5. The "movie setting" dims the lights and starts the popcorn maker.
6. Lights can be turned on while you're on vacation.
7. Live video of your pets or nanny is sent to your phone.
8. Motion sensors send a text message when your windows or doors open.
9. The garage door can be opened or closed from work.
10. The pool temperature can be set on your drive home. (source Business 2.0)

Why Owning Real Estate Can Make You Rich

People who say it's cheaper to rent than own are simply wrong. Under certain circumstances in certain markets (where real estate values are overheated and rents low), there may be some short-term advantages to renting. But over the long haul, renting is simply not a good deal (except for the landlord whose mortgage you are paying). If you don't own your home, you can easily wind up spending more than half a million dollars on rent during the course of a lifetime-probably a lot more. Let's do the math. Say your rent is $1,500. a month. Over 30 years, that would add up to a total of $540,000. in monthly payments! But that's only if your rent never goes up-and whose rent stays the same for 30 years? And if you ever have to move-well forget about it! You will have a mortgage payment, maintenance, taxes, insurance. However it will be yours! (source David Bach)

Get Prepared to Purchase!

I wish I had a quarter of all the potential buyers' that wanted to look at homes that were not pre-approved for a mortgage. This is the 1st. step that you have to explore. Guess what, it is easy! I can assist you in getting pre-approved not pre-qualified within 24 hours with a good "LOCAL" lender. When you are pre-approved, you are in a position to move forward on a home in "YOUR" price range. You now know if your credit is in good shape, if not what steps you need to know to clear up items on your credit report. When you are pre-approved, you are a more serious buyer, and REALTORS like that. To get pre-aproved follow this link: www.ehjmmortgage.com

Defend yourself from "MOLD"

Follow these suggestions to keep mold from growing in your home:

1. Check the exterior of your home regularly for accumulation of ground water.
2. If you ever see bubbling or dampness in a wall, get the wall opened to see what's causing it.
3. If your house sits above a foundation and there's a heavy rain, put electric fans under the house to dry the ground.
4. Fix leaky faucets, pipes and other leaks as soon as you find them.
5. Have your heating and air conditioning system serviced each year.
6. Clean and dry out wet or damp areas within 48 hours.
7. Keep indoor humidity below 60 percent by venting bathrooms and dryers to the outside, using air conditioners and dehumidifiers, using exhaust fans or opening windows when cooking, washing dishes or cleaning, and increasing ventilation.
8. If you have a leak that saturates carpet, ceiling tiles or upholstery, remove them.
9. Use paint that has an EPA-approved mold inhibitor.
10. Clean kitchens and bathrooms with mold-killing cleaners.
11. Don't carpet bathrooms.
12. Don't put vinyl wallpaper on walls that are at risk of sustaining water damage.
(source Broker Agent News)

Free Credit Reports

Take advantage of receiving up to 3 FREE credit reports per year. Keep tabs on your credit.FICA scores range from 375 to 900. In general, the higher your credit score the better you will be able to obtain credit. A FICA score under 620 makes obtaining credit difficult. You should identify what your score is and if it isn’t a good number you should then work on making it better. Creditors use your FICA score to determine whether to give you credit and sometimes base interest rates on this score. It is a very important number to know. Below is the FICA Score Ranges and Grade

* 750 and above Excellent A++
* 680 to 750 Very Good A+
* 620 to 680 Good A
* 580 to 680 Above Satisfactory B
* 550 to 580 Satisfactory B-
* 480 to 550 Below Satisfactory C
https://www.annualcreditreport.com/cra/index.jsp

Rising Housing Costs Outpace Incomes

The cost of housing has increased faster than the average income over the past five years, causing homeowners and renters alike to pay a larger percentage of their salary in housing costs. A survey published in October by the U.S. Census Bureau finds that 34.5 percent of homeowners spend more than 30 percent of their income on their mortgage, up 5 percent since 2000. The percentage of renters spending more than 30 percent of their income on rent has risen to 46 percent, a 6.7-percent increase. U.S. residents face an increased housing burden in virtually all areas of the country, although Californians were hit the hardest, paying nearly 48 percent of their income on housing. (source The Residential Specialist) January 2007

Quick Fix Up

Here are five improvements you can make that might help you sell faster in a cooling market:

1. Create a welcoming entrance. Make sure your front door is clean, polish the hardware, ( or replace it if necessary) and repaint the door, if it is in poor shape. Finally, add a new doormat, update your mailbox, and place attractive greenery or flowers on either side of the door.
2. Remove clutter and put it in storage. Box up anything you won't use in the next few months (including holiday decorations, seasonal clothing or sport equipment, old toys etc.) and send it to a storage facility.
3. Replace outdated window treatments with simple white mini blinds or wood blinds, cut-to-measure at a home center. This is a fairly simple fix that can refresh your rooms in just one weekend.
4. Update your storage space with closet systems so the closet looks organized not cluttered.
5. Have wood floors professionally cleaned and polished. If you have worn, dirty, or badly colored carpeting with wood underneath, tear it out and expose the wood.