David Home Inspection: February 2010

We've had an unusually wet season this year here in Rancho Cucamonga, California.  With all the rain, it's important to inspect the roof when shopping for homes.  Look for signs of wear and tear, curled shingles or stained interior ceilings. Never underestimate how much a roof can impact a sale in today's FHA lending environment.

A Roof Can Make or Break a Sale 

If it's not up to par, the roof can turn into a major sticking point of negotiation. On the other hand, a beautiful roof can give Buyers all the reason they need to make an offer. That's precisely why you, as a potential Buyer, must become knowledgeable on this essential home feature.

All Roofs Are Not Created Equal

The material used for roofing can make an enormous impact on the look and style of a house. Let's take a look at the various types of roof materials and the pros and cons of each.  Remember, the longevity of a roofing material is somewhat dependent on the climate, so estimates of lifespan are approximate and also depend on whether the material is properly installed.

Here are some of the more commonly used roofing materials here is Southern California that you should be able to identify.

Descriptions and Estimated Life Expectancies

Slate Roofs:  

Slate Roofs are Pretty and pricey. This is one of the most beautiful roofing materials. It's a beautiful blue-grey stone that lasts anywhere from 70 to 100 years or more. Slate is very expensive and the prospect of having to replace a slate roof will surely be something you, as a buyer will want to keep in mind when negotiating a price for the property. But since these roofs are known for their longevity, they're often worth the investment because a roofing material with a shorter lifespan will have to be replaced many times (at increasing prices) in the period that a slate roof will hold up.  

NOTE:  Artificial slate is also available, but it typically doesn't have as long of a life span as real slate. However, it still lasts for a few decades or more.

Wood Shake or Shingle Roof:  

Wood Shake Roofs have a Natural look. These roofs are usually made with cedar and can last up to 30 or 40 years, depending on the climate. The difference between a shake and a shingle is that shakes are split from a block of wood whereas shingles are sawn from a block of wood. Typically a shake is thicker and more rustic looking than a shingle.

Clay Tile Roof:                                 

Clay Tile Roofs have a Long life span. You often see these roofs in Mission, Spanish Colonial, and Mediterranean style homes. Here in California. The tiles are made with clay or concrete, are fire resistant, and typically last a relatively long time - a few decades or more.

Asphalt Shingle Roof:

Asphalt Shingle Roofs are Functional and affordable. This is perhaps the most widely used and least expensive roofing material used mostly in older homes here in our area. These roofs come in a variety of colors and shades. You'll commonly see black, greenish or reddish hues.  They typically last about 15 to 20 years, a shorter time than the other materials mentioned above.

 

Rare, but gaining in popularity are

Metal Roofs:

Metal Roofs come in a variety of forms, from corrugated metal with ridges to a roof that looks like it is made of shingles. Metal roofs are often chosen in green design because they last a relatively long time (a couple of decades or more) and can be made with recycled materials. Also, metal reflects heat, which can cut down on energy costs in hot climates. However, this roofing material is expensive - and it is also important to note that rain or hail can be very noisy.

Some FHA Lender Guidelines to Keep in Mind

• The roof must have at least 3 years of remaining life.
• FHA will accept a maximum of 3 layers of roofing material. If more than two layers of roofing exist and re-roofing is required, all of the old roofing must be removed as part of the re-roofing.
• The placement of composition shingles over wood shake shingles is not acceptable.

A licensed home inspector should be able to indicate to the condition of the roof during a routine inspection.  You will also have the option to request and inspection from a licensed roofing contractor, but expect to pay for that inspection yourself. 

 

The concept of getting your website to the first page of Google seems like an almost impossible task to many.  People spend months writing more and more content for their site, getting backlinks, and editing things without ever getting your website to the first page of Google.  You feel defeated when your site stays on page 17 and just won't budge.  Then one day you get a call from a company who promises “if you give us $395.00 per month, we will put your site on the first page of Google.” The part that these telemarketers neglect to mention is that the moment you stop paying them, your website will drop faster than lead balloon.  As a former real estate agent, I used to get these calls regularly.

So, how can you actually get your website to the first page of Google?  Well, there are a couple of really basic principles that you’ll need to implement.  The “basics” are just that – basic.  Before I share these, first you need to learn to not over-complicate things.  Here are 3 easy steps to getting your website to the first page of Google:

1. Good, solid, keyword-rich content. So what is quality keyword-rich content? Basically, it’s content that gives something of value to consumers and search engines.  You need to have keyword-rich posts that answer the questions your consumers have.  Do not just spit out some random words and call it a post.  If you write just to write and do not really have purpose, you are basically wasting your time if you are trying to get business.  Develop a gameplan for your content and stick to it.

Ten well-written, targeted, keyword dense posts will bring a greater result than 100 posts that are thrown together quickly, with topics all over the place, and which contain piles of typos, grammatical errors, and more.  This is a prime example of the principle of quality over quantity for the greatest result possible.

2.  Writing Consistently on Your Blog. Many times people start working on getting their website to the first page of Google and after the first month or so they simply give up. One of the key factors to getting your website on the first page of Google is to consistently offer fresh content on your site.  The easiest way to do this, of course, is to integrate a blog into your page.

You don’t need to have a Masters degree in English to have an effective blog.  You just need to publish 2-3 good, quality posts each week that offer valuable content to your readers that are also written with your primary keywords in mind.  One of the biggest excuses that I hear is that a business does not have time to write.  According to HubSpot, businesses who blog receive 55% more visitors than companies who do not.

Here’s a simple time management strategy:  On the weekend or whenever you have a few spare hours, (watching a football game, relaxing by the fire, etc.), sit down and write 2 or 3 really good quality posts.  Then, on Monday, Wednesday, and Friday you can launch these pre-written posts.  You can then take the rest of the week to respond to comments, etc.  To the consumers and search engines, it appears as though you have written new content on three different days.

This practice is far healthier for your rankings than writing a bunch of content one day, then waiting 7-10 days to write more.  Why? The search engines are constantly visiting your page to index more content.  The freshness is important when it comes to Google’s indexing algorithm.  Also, they see a constant stream of new stuff instead of a bunch on one day, then a week of dormancy until you get around to posting again.  This is also helpful for your consumer audience of readers.  If you publish 3-4 posts all at once, the likelihood of those posts bringing you good consumer traffic from those subscribed to your blog is minimal.  Most consumers will read maybe one post, but will not have the time, attention span, or energy to read multiple posts.

3.  Link, Link, Link! The more sites that are pointing links at your page (especially when titled with the keywords you are trying to achieve) will produce a great return.  One easy way to get some great links pointing to your site is to make sure you have added your business site to your profiles on any and all networks you participate in.  Links from higher ranking sites help the search engines realize that these sites recognize your website. 

It is kind of like when Oprah endorsed KFC’s new grilled chicken promo.  In no time, there were over 2 million coupons printed and many were left missing out on the promotion because of lack of supply. Links from reputable sites make your own site seem more reputable. 

One thing for sure, you need to make positive that the links you insert places are actually working for you.  Many networks block the search engines from following the links to prevent spam.  (I will be writing more about this in the future.)

Another great way to get links, is to ask your friends and family members to place a link on their blogs, websites, etc.  Two things with regards to linking: do not pay a link farm service.  Search engines don’t value these links – I could go into great detail about why, but just rest assured that it’s a waste of time and money. The other tip is to not do a reciprocal link when possible.  This means, if your brother links to your site, do not put a link back to his. 

A detour. An easy alternative to reciprocal links is to have a link triangle. In this case, your brother links to your site, you link to your parents, and your parents link to your brother’s page.  All links are one-way and none are going back and forth.  The more links you can have pointed at your site, the better it will help in getting your website to the first page of Google. You can think of each link as a “vote” for your site.

If you implement just these three tips, it will help get your website onto the first page of Google.  Obviously,  there are plenty of other factors that contribute to this phenomenon.  If you take these and not only integrate into your website, but also into your blog, the most vital part to your website, you will start seeing results in a rather quick fashion. These three items I discussed alone can make or break the effectiveness of a website. 

If you have any questions, let me know. And by the way, 210 Consulting- Social Media Advisors offers some really great personal coaching taught by myself and Jason Crouch on this subject.

Photo Credits: http://www.flickr.com/photos/mklingo/245562110/ & http://www.flickr.com/photos/spiderpop/2798740868/

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I am the Co-Founder of 210 Consulting- Social Media Advisors.  If you would like more information on any of the topics discussed in this blog, please contact me directly.

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New FHA Guidelines;  Bye-bye Flipping Rule..Great summation of the new FHA guidelines courtesy of RealtyTrac.  Working with first time buyers and investors here in the Coachella Valley, both of these issues will be important in 2010.

Securing FHA-insured mortgages are attractive to borrowers because down payments are only 3.5 percent. Most conventional loans now require 20 percent down, keeping many creditworthy borrowers on the sidelines.

New Guidelines

The new rules - which are temporary and take effect this summer - come after more than a year of stringent standards from lenders. Among them:

• Better Credit Score - New borrowers will have to have a minimum credit score of 580 to qualify for a 3.5 percent down payment. Previously, there was no minimum score. Those with lower scores will have to make at least a 10 percent down payment. The average credit score of FHA-insured borrowers is 693.
• Higher Insurance Premiums - Buyers who get an FHA-insured loan will soon have to pay a higher initial insurance premium. The new premium will be 2.25 percent of the value of total loan amount, up from 1.75 percent now. A $100,000 mortgage would require a payment of $2,250, or $500 more. But buyers can roll the added cost into the loan amount.
• Reduction in Seller Concessions - Starting this summer, sellers will not be able to offer as much help to buyers to pay their closing costs. The maximum amount of assistance will drop to 3 percent of the value of the property, from the current 6 percent.

FHA removes anti-flipping rule

Another FHA rule change could help foreclosure-plagued markets like Las Vegas, Phoenix, Miami, Detroit and Los Angeles, making it easier for investors to "flip" houses to buyers who use FHA-insured loans.

Effective Feb. 1, the federal government will waive for one year an FHA anti-flipping rule that prohibits insuring a mortgage on a home owned by the seller for less than 90 days.  (This will be huge in the Coachella Valley)

The new rule lets investors buy today and re-sell as quickly as possible. The move is to allow REO homes purchased by investors to resell as quickly as possible, helping stabilize real estate prices and revitalize neighborhoods after the U.S. housing market collapse.

This new rule will open up a new pool of homes to buyers. Waiving the 90-day flip rule is being heralded by many real estate investors as a boon to their ability to buy, rehab and resell foreclosed homes on a more efficient time line.


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If you need more specific information about La Quinta, Palm Desert, or the Coachella Valley, contact me at: kjkpolo@earthlink.net or give me a call!  760-285-3578

Kimberley Kelly, Certified Short Sale Specialist

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Clothes dryers evaporate the water from wet clothing by blowing hot air past them while they tumble inside a spinning drum. Heat is provided by an electrical heating element or gas burner. Some heavy garment loads can contain more than a gallon of water which, during the drying process, will become airborne water vapor and leave the dryer and home through an exhaust duct (more commonly known as a dryer vent).   A vent that exhausts moist air to the home exterior has a number of requirements:

1. It should be connected. The connection is usually behind the dryer but may be beneath it. Look carefully to make sure it's actually connected!
2. It should not be restricted. Dryer vents are often made from flexible plastic or metal duct, which may be easily kinked or crushed where they exit the dryer and enter the wall or floor. This is often a problem since dryers tend to be tucked away into small areas with little room to work. Vent hardware is available which is designed to turn 90° in a limited space without restricting the flow of exhaust air. Restrictions should be noted in the inspector's report. Airflow restrictions are a potential fire hazard!
3. One of the reasons that restrictions are a potential fire hazard is that, along with water vapor evaporated out of wet clothes, the exhaust stream carries lint - highly flammable particles of clothing made of cotton and polyester. Lint can accumulate in an exhaust duct, reducing the dryer's ability to expel heated water vapor, which then accumulates as heat energy within the machine. As the dryer overheats, mechanical failures can trigger sparks, which can cause lint trapped in the dryer vent to burst into flames. This condition can cause the whole house to burst into flames! Fires generally originate within the dryer but spread by escaping through the ventilation duct, incinerating trapped lint, and following its path into the building wall.

InterNACHI believes that house fires caused by dryers are far more common than are generally believed, a fact that can be appreciated upon reviewing statistics from the National Fire Protection Agency. Fires caused by dryers in 2005 were responsible for approximately 13,775 house fires, 418 injuries, 15 deaths, and $196 million in property damage. Most of these incidents occur in residences and are the result of improper lint cleanup and maintenance. Fortunately, these fires are very easy to prevent.

It is March, 2008 and I have been referred to the greatest couple looking for a house in Santee, Ca. This couple is a friend of a friend and we hit it off perfectly! A fun, easy going couple with a couple of kids looking for their Dream Home!

He is active military so a VA loan is no problem! I refer them to my favorite lender, they have perfect credit scores and I thought, boy, this is going to be a piece of cake; and fun too!

Out house hunting we go! And then......within 2 weeks of our hunt, my military home buyer finds out he is being sent to Singapore for 6 months! House hunt on hold. Wife moving to home state of Washington in the interim to save money, pay off credit card debt and hope to qualify for a larger loan amount at the return of her soldier! Great plan!

Fast forward to last week of December 2008. Although we have continued our search virtually, it was more a pass time than an actual home search. Tour has lasted longer than expected, but 6 weeks more and her man will be home in San Diego and they want a home! She flys in for 5 days and we spend 3 days on a massive home search. Inventory has changed over the year. Not as many options available as when we started. Not a problem! We found it! The perfect home!

We make an offer on this short sale, and are assured by the listing agent they have short sale lender approval as a previous buyer walked. Not a problem. We have time to wait. The husband will not be back for 6 to 8 weeks, perfect timing for him to come home to his new home! And then we wait, and wait, and wait. Oh, and then we wait some more. FINALLY we have approval. 1 week prior to the husbands arrival! Such timing!

Day of husbands return is the day of home inspection. We have a fantastic time. This is the first time he is seeing the home in person. He has seen the home via the Internet and heard all of his wife's excitement as she plans to rip out the cabinets, tear down walls, put new flooring in.....As we walk from room to room, the husbands excitement grows with every step. Until the home inspector finds a small crack in the tile in the kitchen floor tile..........and he puts down his golf ball sized ball bearing..........and it rolls to the east. He moves further into the kitchen, it does the same. Then the living room....same.....garage.....even worse. This is the end of our fun.

We contact the listing agent and low and behold, since she was on her last minutes of disclosure and had not received them yet, oh ya, the home had a cracked slab at the time these sellers purchased and it has been corrected. ARE YOU KIDDING ME?? Did you not think to mention this at ANYTIME over the last few months as we are waiting for bank approval? Whatever. Let's move forward. The listing agent offers to provide the previous report showing the problem corrected, but to no avail. They can not find anything. We request the seller to provide a current engineers report. The agent has no idea where to begin to get this, so I provide a company for her.

Report: $70k worth of repairs that need to be done to fix the existing slab. This does not include any amounts to correct the problem to avoid this happening for the THIRD time.

Home Inspection: $400, Cracked slab: $70,000. Value of a home inspection: PRICELESS.

The seller is in no position to correct this. Short sale lender will NOT fix this. Buyer will not purchase this home this way. Escrow canceled. Buyers now must find a place to live in a matter of days. Coincidentally, the house next door to me is for rent. I know have clients as neighbors! 

A new search begins!

 

 

Making the Home of Your Dreams A Reality. As your Agent of Possibibility it is my intent to make your home buying or selling process a smooth one!

Please feel free to subscribe to my blog or contact me at 619-838-4408.

As banks continue to foreclose on homes in Wisconsin, buyers are sure to come across some amazing garage-sale priced homes; but buyers have opportunities to buy homes through a "short sale" before a home goes into foreclosure.

What is a "short sale?" A short sale may be defined as the sale of a home at a price less than the existing mortgage balance; however the ultimate price of a short sale lies in the willingness of the bank to negotiate terms. A Short Sale is a complicated process; and quite a rare occurrence until now.  Without a doubt, short sales transactions are becoming common and will continue to be prevalent over the course of the next year.

It is good advice to consider hiring professional help when you are looking to buy a home.  Look for a Realtor who specializes in distressed properties and specifically certified in the short sale process. A short sale transaction is a specialty field, so you choice of representation should be carefully considered. Be aware of the numerous legal loop holes that can cause the average person could be taken advantage of.

It is very important to realize that the majority of lawyers and real estate agents have little experience with these transactions. In order to be successful, you need to be selective in choosing the professional who will assist you in the process. Keep in mind; the most important consideration is by NOT seeking the expertise of a specialists and going it alone (if not fluent in dealing with pre-foreclosures and bank procedures), you will significantly increase your chance of failure at the bank.

The following 12 steps are a guide, but please consider seeking out the help of a professional who specializes in Foreclosures and Short Sales:

1.  Locate homes which are in default, as early as possible, even possibly before the formal non-judicial foreclosure begins.

2.  Search foreclosed homes with plenty of lead time before the Trustee's Sale (you may need weeks or months of lead time.)

3.  Once you have created a list of such homes, narrow that list to only those homes you would likely purchase for yourself.

4.  Complete an accurate Comparative Market Analysis (CMA) using sold homes with similar features, via a good database such as the local MLS.

5.  Determine the exact mortgage balance and status of default or foreclosure.

6.  Research to find out if there is a second or third mortgage on the house.

7.  Research the possibility of other liens (tax liens, mechanic's liens, labor liens, state liens, etc.)

8.  Determine how best to talk and negotiate with the loss mitigation department of the bank or mortgage holder (email, fax, phone, etc)

9.  Determine whether or not purchasing via the short sale will negate any subordinate loans or liens (another trap for the unwary.)

10. Know which costs and fees in addition to the mortgage balance can be compromised and by how much (experience is the best teacher.)

11. Prepare a comprehensive package to present to the mortgage holder, which is the most critical step in closing a short sale. This should include the Purchase & Sale Agreement, and a thorough analysis of the home, prices, the local market, and justification of your offering price. Your offer must be prepared very professionally or the bank will merely overlook you, without giving your offer a second look. You have to be able to make a case to the bank, as to why they should sell to you at this price.

12. In order to close on a deal in a short sale, you must follow through with all parties involved.

The complexity and difficulty of closing short sales should never be underestimated, even under the best of circumstances. It is hard to find a buyer of foreclosure properties through the short sale process, despite what con artists would like you to believe. You should have some experience before purchasing foreclosure properties; The reckless need to be aware of entrapment.

Buying a foreclosure may be a fast way to lose money if in the process you make major mistakes. On the other hand, because the purchase price is below the current market value of the home, it can be a great way to pick up equity immediately the day of closing. Many people have also come to a dead end with this process after months of frustration.

There are many great people who specialize in the Foreclosure and Short Sale properties. Just please, please do your homework before going it alone. If you are thinking of doing this, please contact me and I will be more than happy to put you in contact with one of my preferred Real Estate Agents that specialize in short sales.

I hope you have found this information helpful, as that is my goal. In closing, if you need help putting together a plan for financing and/or would like to review the various options available to, please feel free to either give me a call, or shoot me an email. I provide this to you as a service and there is never an obligation..... The Sun is shinning . . . Make it a great day....!

Gwenn Tanvas is a Certified Mortgage Planning Specialists who specializes in Credit Restoration and Government Programs such as FHA, State and Federal VA and USDA Rural Housing Loans. Visit her website for more information, on-line calculators and a secure on-line application. She is able to assist with transaction throughout the state of Wisconsin. Her offices are located in Appleton, Oshkosh and Green Bay and offers the convenience of one-stop shopping. http://www.WisconsinLoanTips.com or http://www.MortgageProsOfWisconsin.com she can also be reached for comment or to answer questions via email at gwennt@centurytel.net

Wisconsin Realtors, Grab Your Opportunity to Get Gwennie's Revolutionary New Property Marketing Technology Tool and it is FREE for the asking!!!! http://www.WisconsinPropertyPromoter.com - Check it out!

 I have been happy with the buyers we have converted off Craigslist and online. Buyer agency is the key to successfully converting buyer leads to a sale. One day I realized that we were so good at getting buyers to sign a buyer agency, but a lot of those buyers weren’t buying a home.

 I went back and looked thru the files and realized that a lot of times, we met a buyer at the office, signed them to a buyer agency, and then set them up on the automatic MLS e-mails. A few weeks later, when nothing had happened, I would try to call them to go look at homes. But, often times they were busy at work, or didn’t have the time. They wanted to buy something, but didn’t want to put the time aside to go look. Here’s what I did to fix this.

 I realized that in order to close more of them, I needed to keep the process moving ahead constantly. After getting a buyer’s agency signed I absolutely had to set up an appt to view homes. Or, go show them homes right after meeting them at the office. So, whenever I meet a buyer and sign them up, I don’t let them leave until I’ve set an appointment to go look at homes. Most buyers, especially local buyers, always cool off. They renew their lease, or find a new place to rent for another year.

 Here are a few other things that make the process easier and faster. Never show them more then 5-6 homes per outing. See, buyers aren’t trained to remember houses. After working with buyers for years, my brain is very good at remembering everything about a house. I can remember homes that I showed 3-4 years ago. I can tell you about their layout and paint colors. But, the buyers haven’t trained their brain to do that. When you show them more than 5-6 homes, they won’t remember the one they really liked.

 And, when you do show them the house that they really like, stop! Don’t show them any other homes. You don’t want to have them stumble across another home they kind of like. Then they are stuck trying to decide between the two of them and can’t make a decision. What happens then? They don’t buy either one and might re-sign their lease for another year. Ouch!

 Working with buyers is a lot of fun when you do it right. If you find the motivated buyers and do a great job for them, then you can make a good income and not work all the time.

Got questions about short sales? Just ask. Sign up for daily tips at:
http://www.shortsaleagentadvocate.com

Ben & Chris Curry The Short Sale Agent's Advocate

A Head Start on Your Taxes:
Getting organized is the key to filing an accurate tax return.
By Mary Beth Franklin, Kiplinger's Personal Finance

As you put away the holiday gifts, set aside an empty box to collect all the year-end tax documents that will soon begin arriving in your mailbox. Among the papers to look for:

Form W-2 from your employer, which shows your gross income, tax-deductible contributions to your retirement and flexible-spending accounts, and state and federal taxes withheld from your paycheck.

There's a flurry of 1099 forms from your bank, broker, pension and IRA administrators, and the Social Security Administration. These forms report taxable interest and dividends you received, plus any retirement income.

Form 1098 from your mortgage lender. It reports mortgage interest and real estate taxes you paid. If you paid college tuition or interest on a student loan, look for Form 1098-T or 1098-E.

Form 1099-G from your state if you collected unemployment during 2009. The first $2,400 of benefits received in 2009 is tax-free.

Form 1099-MISC. Independent contractors should receive one from each client who paid $600 or more in 2009. If you think you're missing a form, be sure to check your e-mail. And if you still haven't received a document by January 31, contact your financial institution or other provider.

You may already have some important documents that you'll need to prepare your taxes. For example, if you bought a new car between February 17 and December 31, 2009, check your sales receipt to see how much you paid in state and local sales tax on the vehicle; you may deduct that amount regardless of whether you itemize. And if you installed qualified energy-efficient home improvements during 2009, your sales receipt or installation contract will document your claim to a tax credit of 30% of the cost of materials, up to $1,500.

If you closed on a new home on or after November 7, 2009, you must attach a copy of your settlement sheet to your tax return to claim the home-buyer tax credit.

Reprinted with permission. All Contents © 2010 The Kiplinger Washington Editors.