Jul 18, 2014 | Around The Home
When purchasing a home, there are a number of considerations that need to be taken into account. One of those considerations is the foundation of the home. No matter how perfect or suitable a property looks, taking the time to properly inspect the property for foundation problems can save homeowners thousands of dollars in repairs later on.
While foundation cracks are usually present in older homes, that does not mean that newer and even brand new homes aren’t prone to them. When choosing a property, the following tips can help homebuyers find signs of foundation problems and take the right action if any are found.
Concrete Weakness
One of the easiest ways to check for a damaged foundation is to check the concrete of the home. When the foundation is strong and safe, the concrete is not brittle and breakable. To test this, when trying to poke the foundation with a screwdriver, the foundation should be rock solid. If it isn’t, then there may be a foundation issue.
Posts Should Be Sturdy
If the house has a basement, then the posts that hold up the basement and crawl space should stand firmly in place. The bottom of the post should be unmovable and the post should stand straight and tall. If the posts do not do so, then there is a problem with the foundation.
Uneven Floors
The next component of the house that should be inspected is the floors. All of the floors within the house must be solid, straight, and not slanted. If the floor is slanted or separates from the wall in any place, then the foundation is unable to support the home properly and there is a serious issue.
Exterior Cracks
The walls are also a way to examine for foundation issues. Take a tour around the outside of the home and inspect for any cracks to the exterior. Each wall on the outside of the home should be smooth, solid, and free of any cracks. However, if there is a crack, this may mean that the foundation has shifted and the home is uneven.
Windows and Doors
Next, inspect every window and door on the property. Each should be attached to the surrounding wall and they must also open and close without any difficulty. If there is a difficulty in opening and closing windows and doors, there may be a foundation problem like shifting or uneven ground that is unable to support the property.
Moist Ground Around the Property
Lastly, another sign that there is a foundation problem is if the ground around the property is moist. A strong foundation will usually be set upon ground that is completely solid. When the ground is moist, the dirt particles are porous and unable to bind together, leading to shifting, cracks, and major damage to the home.
Choosing the right home is not a difficult process and making the right assessments of the property can save thousands of dollars in future repairs. To help with assessments, foundation repairs, and to get the right information about how to deal with a cracked foundation in a potential property, then contacting a trusted and professional real estate agent is the best solution when purchasing a property.
Jul 17, 2014 | Home Buyer Tips
Knowing what you want before you start looking is a big help when house-hunting. Giving the list of ‘must-have’ items to your real estate professional a few days before you begin touring listings is a great idea because they can find homes that meet as many of your criteria as possible.
It also helps on a more personal level, since being organized and knowing what you want will help you quickly identify whether or not homes meet those standards.
Is it a ‘Must-Have’ or a ‘Nice-to-Have’?
The debate between “I need it” and “I want it” is as old as time. Thinking back to childhood, when the desire for a cookie was met with mom’s stern “not before dinner,” some children seem to develop a magical ability for reasoning that voiced a desperate need for cookies before dinner, but mom was never fooled. The same goes for the ‘must-have’ list for your home search.
There are items that you want and certain ‘deal breakers’ that you cannot live without. An absolute ‘must-have’ might be proximity to work or certain schools, whereas desirable features could include a shed or a built-in barbeque pit. Knowing the difference between something you want and something that is absolutely required can save you a lot of time and money.
How to Organize an Effective List
Write down everything your dream home would have, then ask yourself how necessary each item is. Rate them by priority, whether an absolute requirement, something you would definitely prefer, something for which you would consider a compromise, and something that you don’t really care that strongly about. That first group is your ‘must-have’ list. The second is your ‘nice-to-have’ list, which is a great guiding star for choosing between homes that meet all of your ‘must-have’ items.
Some Suggestions for a Great List
Location, location, location – The top of any good ‘must-have’ list should be location. No matter what else is changed in a home, the location will always remain a constant. Decide what you want to be close to or far away from and make sure the grounds and neighborhood are all acceptable.
Bedrooms and bathrooms – Does everyone need their own room? Do you need a guest room? Could everyone share one bathroom? Ask yourself what you need at a minimum to facilitate everyone in your home.
Energy-efficient windows and good insulation – It may seem technical, but an energy efficient home can save you a lot of money in the long run. Don’t let money seep through a poorly insulated home.
Space for pets – Not everyone has pets, but for those who do it is a good idea to think of them in your ‘must-have’ list. After all, your new home is going to be Fido’s new home too! A fenced yard or a dog run might be a good idea, but also consider whether the space would allow you to add your own later.
Call your real estate professional today to start house-hunting, and don’t forget your new list!
Jul 16, 2014 | Real Estate Tips
As prices continue to rise across the board with everything from food to gas, it’s no wonder that real estate prices are high in many cities across the USA. While this is the case for a large number of cities, there are also certain areas in which prices are decidedly low. Here’s a small look at the most affordable and unaffordable cities within America.
The Seven Most Unaffordable Cities
Oakland, CA – Though Los Angeles and San Francisco are 2 California cities that may first come to mind, Oakland is also highly expensive when it comes to real estate, with a median home value of nearly $450,000, which is over 100 percent more than the national average.
Los Angeles, CA – Los Angeles is another city in California that is particularly unaffordable. With a median household income of just under $50,000, the exceedingly high median home value of nearly $470,000 is largely galling in its expensiveness.
Boston, MA – The Boston real estate market becomes more unaffordable with each passing year. The median home value within the city is set at well over $350,000. This, combined with the relatively high cost of living, can make for a bleak outlook.
New York City, NY – As one of, if not the most, unaffordable cities in America, NYC is also the most populous city in the United States. While the borough of Manhattan is the most expensive for real estate prices, Brooklyn and Queens aren’t much better, while the median home value of the entire city is just over $500,000.
Washington, D.C. – Though the median household income within the city of Washington D.C. is higher than the national average, the median home value sits at a substantial $443,000, with a cost of living over 40 percent above the national average.
San Francisco, CA – Living in San Francisco is extremely unaffordable, though mitigated a bit by higher household incomes. The median home value is likely the highest in the nation, at just over $750,000.
Honolulu, HI – As the capital city of Hawaii, Honolulu is much higher than the national average in everything from utilities to transportation, with the median home value sitting at $547,000.
Three Affordable Alternatives
Cleveland, OH – Though there are a surprising amount of affordable cities in Ohio, Cleveland has a median home value of just over $75,000, well below the state average of $129,000.
Knoxville, TN – Knoxville is a city in Tennessee that combines a generally low median home value of $140,000 with a median household income of just over $60,000, which is much higher than the national average.
Syracuse, NY – If you want to live in New York, but can’t afford the high real estate prices of NYC, the city of Syracuse has a low median home value of just under $80,000.
If you’re searching for the perfect city to buy your next home in, call your real estate agent today for all of the latest information.
Jul 15, 2014 | Around The Home
If you’re getting ready to retire, you may be thinking about downsizing. Having a large house makes sense when you’re raising kids, but once you reach your golden years, it usually makes sense to move into a smaller, more efficient condo. While downsizing may seem impossible, these six tips will help you reach your goal.
1. The Six-Month Rule
If you’re finding it hard to figure out what to keep and what to get rid of, stick to the six-month rule – if you haven’t used an item within half of a year, you probably don’t need it. Seasonal items aren’t used as much, but if you haven’t used them within a year or two, it’s safe to get rid of them.
2. Measure Twice
Measure your furniture, your current room sizes and your future room sizes. After you’ve done that, do it again. Nothing’s worse than wrestling with your heavy sofa for hours on end to find out that it won’t fit in your new living room after all.
3. Pre-Arrange Big Items
Once you know where your new home is going to be, get the floor plan or draw one up yourself. Use measurements from your furniture and other big items to figure out where you’re going to put things. If it looks crowded on paper, it will probably look even more crowded in person, so make sure your plans look okay before you decide to hire a mover or move everything yourself.
4. Get With The Times
With all the new technology coming out, it’s easy to transfer almost all of your physical media to electronic form. While you might want to keep your all-time favorite books and movies in physical form, you can put most of your reading material on an e-book reader and most of your movies on a computer or external hard drive.
5. Multiples Multiply Headaches
Yes, you need to have a soup ladle, but you don’t need five of them. If you have more than one of the same item, consider getting rid of the multiples. You’ll probably find that your kitchen is the biggest culprit as far as multiples go, but you may also find that you have three tops that are very similar in color and style or four laundry baskets even though you only do one load at a time.
6. Use Your Resources
If you’re moving to a neighborhood with a great library, plan to use it instead of bringing all of your books and movies with you. If you’re going to have a gym virtually next-door and can afford a membership, it may be time to give away your home gym equipment.
Don’t forget that your real estate agent can be an invaluable resource when downsizing, so be sure to get in touch with them before you make the jump. In summary: moving is hard enough, but downsizing is even harder. By following these tips, though, you should be able to pare down your belongings so that you will be able to live comfortably in your new home during the best years of your life.
Jul 14, 2014 | Market Outlook
Last week brought news from the Fed as two Federal Reserve Bank Presidents made speeches and the Federal Open Market Committee (FOMC) of the Fed released the minutes of its last meeting. The minutes reveal the Fed’s intention to wrap up its bond-buying program in October with a final purchase of $15 billion in mortgage-backed securities (MBS) and Treasury bonds. No economic news was issued Monday following of the 4th of July holiday.
Further indications of a strengthening labor market were seen. May job openings reached their highest level since June 2007, and quits and layoffs fell from April’s reading of 4.55 million to 4.50 million. Weekly jobless claims fell to 304,000 against expectations of 320,000 new jobless claims and the prior week’s reading of 315,000 new jobless claims.
Fed Speeches Address Inflation, Banks Too Big to Fail
Tuesday’s speech by Minneapolis Fed Bank president Narayana Kocherlakota calmed concerns over inflation; Mr. Kocherlakota said that the Fed expects inflation to remain below its target rate of two percent for several more years. He tied low inflation to the unemployment rate and said that the nation’s workforce is not fully utilized in times of low inflation, and cautioned that June’s national unemployment rate of 6.10 percent “could well overstate the degree of improvement of the U.S. labor market.”
Stanley Fischer, the Fed’s new vice-chairman, spoke before the National Bureau of Economic Research last Thursday. Mr. Fischer addressed the issue of breaking up the nation’s largest banks to eliminate the government’s exposure to banks too big to fail. He said that it wasn’t clear that breaking up the largest banks would end federal bailouts of banks considered too big to fail. Mr. Fisher also said that breaking up the biggest banks would be “a complex task with an uncertain payoff.”
Mr. Fischer also said that any efforts to prevent a housing bubble should focus on the supply side and cautioned that “measures aimed at reducing the demand for housing are likely to be politically sensitive.”
FOMC Minutes Reveal End Date for Bond Purchases
The minutes of the Fed’s last FOMC meeting indicate that the Fed plans to continue bond purchases at the rate of $10 billion per month with a final purchase of $15 billion in October. FOMC members re-asserted their oft-stated position that the Fed’s target interest rate of 0.00 to 0.25 percent will not change for a considerable time after the bond purchase program ends.
Mortgage Rates Rise
Average mortgage rates rose across the board last week. The average rate for a 30-year fixed rate mortgage increased by three basis points to 4.15 percent; discount points were also higher at 0.70 percent. The average rate for a 15-year fixed rate mortgage rose by two basis points to 3.24 percent with discount points higher at 0.60 percent. The average rate for a 5/1 adjustable rate mortgage rose by one basis point to 2.99 percent with discount points unchanged at 0.40 percent.
What’s Ahead
This week’s scheduled economic news includes retail sales and retail sales without the auto sector, Fed Chair Janet Yellen’s testimony, the Fed’s Beige Book report and the NAHB Homebuilder’s Market Index. Housing Starts, Consumer Sentiment and Leading Economic Indicators round out the week’s economic reports.
