Archive for March, 2008

How to Gear up for the Spring Selling Season - Home Maintenance Checklist

March 29, 2008

RISMEDIA, March 29, 2008- The first day of Spring is March 20th and as most homeowners keep to the age-old Spring tradition of deep cleaning, this ritual is even more important as homeowners gear up for the Spring selling season. According to a recent poll, nearly 80% of Angie’s List members said they keep up with routine maintenance, either doing it themselves or by hiring help. The vast majority of these homeowners say their diligence helps them save money and avoid more costly repairs down the road.

“In today’s market, it’s imperative to have your home in the best shape and condition possible in clevelandrealestate.jpgorder to get it sold and attract buyers,” says Cecilia Sherrard , a buyer, seller and relocation specialist for Realty One Real Living. “Starting from the curb, make sure your home is one you’d want to see inside.”

“Making a list of items to check around the home this season - and then actually following through with the tasks - can help reduce home maintenance and utility costs,” says Angie Hicks, founder of Angie’s List.

The 20% who don’t keep up say they just don’t know what to check and when, they forget about doing it or they just don’t have time for it. Angie’s List, a provider of ratings and reviews of local service companies, went to the experts to develop a list to help the veteran maintainers, as well as those still in the dark, keep up with the house this season.

Spring Cleaning

The first step to Spring cleaning is making a list of which areas of your home need to be freshened up.

- Experts recommend a professional carpet cleaning every 12 to 18 months. Schedule an appointment with carpet cleaners now to cut down on your wait time.
- Check your gutters. Professionals recommend gutter cleaning in the spring and the fall. Clogged gutters can lead to water damage.
- Use a garden hose to remove the film left by dirty snow and rain from your siding and deck. Attach a soft-bristled, long-handled car brush to the hose for some extra help. Use a mild cleanser to get those tough-to-clean spots.
- Remove wet leaves and debris from your deck, front porch and around your house on a regular basis. Allowing the debris to accumulate can trap water, lead to staining or mold build-up, as well as create an ideal environment for termites.

Home Maintenance

Snow, ice and wind can wreak havoc on your home, so be sure to go over the structures in early spring. Finding damage early will increase your chances of getting an early repair, as many home improvement companies begin their busy seasons this time of year.

- Scrutinize your crawl space for water accumulation or excessive moisture, and keep an eye out for water damage on the sub-floor and joists beneath the kitchen, bathroom and laundry areas.
- Give your roof a “once-over” for damage inflicted during the winter. Depending on the style and pitch of your roof, you may want to use a ladder and a pair of binoculars to look for missing or broken shingles and other damage. If you don’t feel comfortable on a ladder, call a professional before the busy season begins.
- Check the weather stripping around doors and windows. The winter season may have caused some damage. Also remove any storm windows and replace with screens.
- Check the valve where water enters your house, outdoor faucets and valves to toilets, bathroom and kitchen sinks. Turn each off and on several times to identify any leaks.

Outdoor Maintenance

By preparing for outdoor projects early, homeowners can get a jump on things like landscaping - but don’t forget about your driveway! Water that seeps into your driveway can freeze, causing cracks and other damage.

- Talk with your landscaper or local garden center about the best way to enrich your soil for the types of plants in your yard. Proper fertilization can keep your soil and your plants in great shape throughout the year.
- If you’ve postponed tool care, now is a good time to get in the garage and take a closer look at your garden equipment. Does the mower need serviced? It’s a good idea to call now. Garden service companies will get busy in the next couple of months. Don’t forget to clean and sharpen other garden tools as well.
- Spring is a good time to examine your asphalt driveway’s surface for damage. Regular resealing is the best way to protect the surface and keep it in good shape. If you’re planning to hire a professional to seal the driveway, summer is peak time of year - so call now to get on their schedule.

“Start with the entry door,” says Sherrard. “Paint or replace and take notice of missing screens or old storm doors. Add a new mailbox, lighting fixture, or address to add a new feel. Clean up the garage and landscaping.”

Appliance Maintenance

Regular maintenance on major home appliances can help to ensure their efficiency and lifespan.

- Get your air conditioner serviced. Technicians can test your air conditioner as long as the temperature is above 60 degrees. Call now to get on their schedule before the first warm days of spring.
- Clean and lubricate hinges, rollers and tracks on garage doors with a light household oil - don’t use petroleum-based lubricants. You can call a professional to take care of this, as well as service the opener mechanism itself. Don’t attempt to service the opener mechanism yourself. Your garage door opener can be one of the most dangerous appliances around your house.
- Get your water heater serviced. Maintained properly, water heaters will last for years and deliver gallon after gallon of hot water. Left alone, they’ll quickly lose efficiency, sucking dollars out of your wallet with every degree of heat.
- Spring rains are just around the corner, so be sure your sump pump works properly. To test, fill the sump pit with water and go outside to make sure the pump is actually discharging water. You can also eliminate any build-up in the system by pouring white vinegar through the unit.

Home Projects

You may have already received your tax return. A recent poll found that 25% of Angie’s List members plan on using their tax checks to invest in home repairs. Some investments will have a better return than others, so choose your projects wisely.

“Clean out closets and cabinets providing as much empty space as possible,” says Sherrard. When preparing to sell, “Pack away all personal items including photos. The emptier your home, the larger it appears. Buy a new bed in a bag for your bedrooms. Dust everything including the basement.”

What’s more, says Sherrard, buyers look at mechanicals and corners.

“Freshen the home by airing it out thoroughly and sanitizing baseboards, woodwork, floors and lighting fixtures,” she says.

- The roof, furnace and water heater, won’t garner great returns, but are expected to be in good shape. Proper home maintenance saves you money on a daily basis and positions you well for a sale.
- Kitchen and bath renovations are expensive but great investments if you are going to be in your house at least five more years. They’re also the rooms buyers pay the most attention to and can make or break your sale.
- Turning attics and basements into livable space, or adding decks, can bring a better return than adding square footage, and the upfront costs aren’t nearly as exorbitant. Finishing touches matter, though. Wall-to-wall carpeting and drywall in a basement will bring a lot more than cheap paneling and a drop-in ceiling.

“A clean home is desired as it reflects the owner’s level of activity when it comes to maintenance and keeping up with the property,” says Sherrard. A lot of these tips are cheap and some even free. When done properly, Sherrard reminds that “your home should now give you the feeling of checking into a hotel; decorated, yet depersonalized and clean!”

According to the website, 1,334 of Angie’s List members participated with the poll. Responses are representative of Angie’s List members, but not the general public.

Fed Rate Cuts Give Limited Credit Relief

March 26, 2008

RISMEDIA, March 26, 2008-(MCT)-The Federal Reserve cut interest rates by three-quarters of a point last week to combat the credit crunch. Wall Street rallied immediately after the rate cut, and the Dow Jones Industrial Average ended the week at 12,361.32, 3.5% higher than the previous week’s close.

OK, so when will the credit crunch end?

Sorry to say, not today. Not next week. And maybe not even by this summer. Like it or not, we’re stuck for now living in a world of low rates-and high uncertainty. Yes, it stinks.

While consumers will see lower rates on credit cards, car loans and some other consumer loans _ and yes, savings accounts and certificates of deposit, too-it’s essential to realize that banks aren’t exactly going to make mortgages cheap and easy. Traders aren’t loading up on mortgage-backed securities, not after getting burned by lax lending in the past, not after last weekend’s fiasco at Bear Stearns Cos.

The average 30-year mortgage rate was actually higher March 13 than it was a year ago. The average 30-year rate was 6.39% March-up from a year ago when the average was 6.16%, according to a survey by Bankrate.com.

“The credit crunch is having a much bigger impact on 30-year mortgages than anything the Fed is doing with interest rates,” said Greg McBride, senior financial analyst at Bankrate.com.

The Fed now has lowered short-term rates six times within six months. The federal funds rate-the rate banks charge each other for overnight loans-dropped to 2.25% from 3% on Tuesday. After Tuesday’s cut, we saw banks lower the prime rate to 5.25%.

Again, though, will cheap credit and some bargain prices make more people want to go out and buy a big-ticket item, like a house?

Alex Aloe, associate broker for Remerica Liberty Realtors in Livonia, Mich., sure hopes that the new lower rates will snag serious buyers-and that mortgage rates trend down in the months ahead.

“I’ve been through three recessions in 32 years. This is the worst ever,” said Aloe, who said his business was down about 25% last year, thanks to the high level of foreclosures and falling home prices.

Aloe is somewhat hopeful after seeing more interested home buyers in the past two to three weeks-people who weren’t just fishing to find out a home’s price but actually wanting to go into the house to look around. He sold a home for $490,000 in the past week in Commerce Township. The original asking price was $550,000.

Even so, Aloe remains cautious and concerned that banks will continue to be reluctant to lend.

Other experts agree that credit will remain tight.

Eugenio J. Aleman, senior economist for Wells Fargo in Minneapolis, said he doubts that lower rates will help consumers and some businesses very much because it is far more difficult to get a loan now than it was a few years ago.

“There’s a credit crisis. There’s a tightening of credit standards and lending standards. You have to have excellent credit to get a loan today,” Aleman said.

Most consumers can’t just ignore the reasons the Fed started aggressively cutting rates in the first place.

“Financial markets remain under considerable stress, and the tightening of credit conditions and the deepening of the housing contraction are likely to weigh on economic growth over the next few quarters,” according to the Fed’s statement Tuesday.

Trip Bosart, managing director for Wachovia Securities in Birmingham, Mich., said he would expect that the Federal Reserve wouldn’t have much more room to cut rates once the federal funds rate hit 2%.

To be sure, the Fed had cut the federal funds rate to as low as 1% back in June 2003 in the wake of last U.S. recession, 9/11 and the collapse of the tech stock bubble. And the Fed left rates at that 1% low point for an entire year-only gradually beginning to raise rates in June 2004.

But Bosart and others now say those ultra-low interest rates turned out to be a mistake and led to today’s overheated housing market and troubles in the credit markets. Some say the Fed isn’t likely to drop rates that low anytime soon.

“Look what it cost us,” Bosart said. “I think it created the bubble.”

My Website

March 20, 2008

Thinking of selling? Entry level townhome? Upper bracket luxury home? Call me for all of your MN Real Estate Needs!

www.homesbytony.com

Buying or selling a home in this market!

March 15, 2008

Often times the media can scare the heck out of consumers. They have done a great job painting a picture that the real estate industry is too scary to get into at this time.

The truth is simply there is not a better time to buy a home! Interest rates are great, inventory is high, and sellers are realistic in regards to what their home is worth. In a year or two people will look back, and say, “we should have purchased a house in 2008.” Don’t miss the boat!

Because of the inventory, many potential sellers have been talked out of selling. They think that there are simply too many homes on the market today. Part of this is true. There are several homes on the market, but the condition that many of these homes are in is the most important thing. Many of the homes currently on the market are simply distressed. Be it a foreclosure, or a potential short sale situation, the homes just don’t show well! Buyers buy emotionally, and most often they buy when a home “feels right”. How often does a distressed home “feel right”? -Not to often. What that means to a seller that is not distressed is simply your home will not only show better, it will also FEEL better to your buyer.

Another key point in regards to selling your home is also the timeliness of dealing with a foreclosure or short sale. Most banks are taking 4-6 weeks to respond to an offer. What that means to a buyer is a waiting game that they have NO control over. MOST buyers get burned out on this process, and move on. This is great news to you, the seller, a buyer will most likely not go down that road again. They will make a decision that a non-distressed home is often time worth more money, and will move forward with your home! Peace of mind is worth a lot to many people!

If you are thinking of buying or selling in this market, call a professional! Now more than ever you need someone to go to work for you.

Be it an entry level townhome, or an upper bracket luxury home, call me for ALL your MN real estate needs!

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March 15, 2008

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