5 Reasons to Shop for a Home in December

1. Limited competition

In December, there’s no competition to speak of. Other (saner?) buyers are at home, gathered around the Christmas tree, opening gifts and preparing a big dinner.

2. Tax benefits

Looking for some end-of-year tax deductions? If you close your home purchase before the end of the year, you can deduct certain costs from your 2016 tax return. They include:

• Mortgage interest
• Loan points
• Property taxes

Remember, mortgage interest costs tend to be especially high in the early years of a home loan. So, this could be a nice last-minute tax break for your family.

3. Desperate sellers

With the holidays looming and a new tax year nearly upon them, sellers who put their homes on the market in December might be especially motivated to close the deal and start the new year fresh.People can be forced to sell in December for several reasons. They include:

• A death in the family
• Financial pressure
• Job relocations

4. You get a realistic look at properties

Winter home-shopping allows a chance to see real-estate properties in a clearer light. With flowers gone and curb appeal at a minimum, shoppers can more easily focus on the permanent features of the home.

As you tour a property, pay attention to things such as:

• How well the home is insulated.
• Whether you feel cold drafts.
• Whether the window seals seem tight.
• How well the furnace is working.

Another advantage to winter shopping is that your inspector will get a good look at the home while it is under the stress of lower temperatures, winds, snow and rain.

5. Rates still are low

Mortgage rates are not as low as they were last year, but they still remain attractive compared with historical norms. For example, the interest rate on the average 30-year fixed-rate mortgage is just 4.03 percent, according to Nov. 23 weekly data from FreddieMac.

However, rates have been on the upswing lately. For example, the 30-year fixed-rate mortgage averaged just 3.57 percent a couple of weeks ago. Rates fluctuate, of course, but the large recent rise is a reminder that low rates might not last forever.

The downside: selection

The bummer about winter house hunting is that, even if you are not the type of shopper who needs to try on 20 pairs of shoes before making a purchase, you probably will be frustrated by the thin selection of properties on the market.

The odds aren’t great that you’ll find the home you envisioned. But house-hunting is like that anyway. Unless you’re building a custom home or buying a new home from a builder who offers you the chance to make pre-construction choices, you’ll always face compromises.

Personal Credit is Improving!

Congratulations, America! 

You've done a great job with your credit. Your average FICO credit score reached 699 in April 2016, at the upper end of what is normally considered the fair credit range(650-699). By the time October 2016's information is compiled and released, you may well have broken into the "good" credit range (700-749).

Average FICO scores have been on a generally upward trend since October 2009, when they hit a relative low of 686. Not only have the average scores been rising, but the scores on either end of the scale also show positive trends. The percentage of Americans in the 300-499 FICO score credit range (the poorest credit range possible) fell consistently from 7.3% in October 2009 to 4.6% in April 2016. In the same period, the percentage of Americans in the highest FICO scoring range of 800-850 rose from 18.2% to 20.4%.

Can a Buyer Sue me for being injured while Viewing My Home?

Question: I put my house up for sale. My broker used a lockbox. Another broker brought by some buyers with an interest in the house. One of the buyers climbed on the roof to inspect it. What would happen if he fell?    Can he sue me?

Answer: Anyone can sue anyone else. That said, there would hopefully have to be some merit to the climber's claim and you certainly have arguments in your favor.

The idea of showing a house means that a prospective purchaser has the opportunity to view rooms, peek in closets, check basements and attics, look in cabinets and wander outside. The actions of the visiting buyer does not extend to behavior outside the realm of either reason or common sense.  For example, if the buyer had a sudden desire to carefully examine the innards of an electrical service box with his hand and screwdriver, that's not a problem which a reasonable and sensible person could anticipate. Check with your insurance agent and attorney concerning coverage and legal matters about your concerns.

If the buyer has concerns about the roof, they can be addressed with a written purchase offer that requires an inspection by a licensed and insured professional home inspector or roofing specialist.

2 Easy Ways to Lower Your Taxes

1. Contribute more to a retirement account

If you put money into a traditional IRA or 401(k) plan, you'll benefit in two ways. First, you'll get the financial security that comes with having savings available in retirement, and the earlier in life you start contributing, the more opportunity you'll give your money to grow. But you'll also benefit from a tax perspective, because the amount you contribute will go in pre-tax. What this means is that if you make $50,000 a year but put $5,000 into your 401(k), you'll only pay taxes on $45,000 of income. Talk about a win-win!

 

2. Donate items you no longer use

Is your basement or hall closet overflowing with clothing, tools, and gadgets you don't need? If you donate those items to a registered charity, you'll get to claim a deduction on your taxes. All you need to do is obtain an itemized receipt of what you give away to verify your donation, and you're all set.

Taken from the Motley Fool. 

Have You Considered a Metal Roof?

Asphalt shingles may last 20 years while a metal roof can be in place for 50 years or more if properly installed and maintained. However, a metal roof is more expensive and some say requires more maintenance than shingles.

There is also another issue to consider: Some people like the sound of rain on a metal roof, some don't. Some people may be wary of a metal roof since it is not the norm in this area. Also, consider how long you will be living in the home as part of the thought process in deciding between the two types of roof.

Will a metal roof add more value than a shingled roof? Some experts say that they add approximately $1.45 per square foot to a home’s overall value. Insurance companies give discounts to homes with metal roofs because when properly installed, they are virtually impervious to wind, hail, and fire. Metal roofs are also energy efficient.

But can you sell a buyer on the benefits of a metal roof? Metal roofs in this area are not popular yet. Do some research on your own, then decide if a metal roof is the right investment for you.

Did the previous owners know about the fire damage?

Question: Long story short, I came home from vacation to major water damage in my home. It seems that my second-floor toilet tank cracked and water ran for almost a week.

When the demolition crew was taking out walls they discovered that there was a fire in our home, at one time. We have lived in our home since 1992 and during the selling process there was no mention of there being a fire in the house. There needs to be some insulation and drywall work that is not covered under the water damage.

The previous owner of this house was the real estate agent. Do we have any recourse in this situation?

Answer: The first questions an attorney for the former owners would probably ask would go like this: You have lived in this house for 15 years. How does anyone know that you did not have a fire at some point in your residency and that in making repairs you did not include insulation?

How do you know the agent-owner was responsible? Did anyone else own the property? Could the fire have occurred while the home was under construction? Do you know for a fact that there was insulation in place when the property was originally built? What if the broker hired a contractor to do repair work after the fire and the contractor -- without the owner's knowledge -- did not install the insulation? How many of us, after all, break down walls to look for insulation?

What, exactly, are the damages here? Were your heating and air conditioning bills higher than they should have been? How much higher?

What were the disclosure requirements in your state 15 years ago?

Given the time, cost and irritation of a lawsuit, why not just fix the damage and be grateful that much of the cost for a better wall is covered by insurance.

Problem with my Contract to Buy a Home

Question: I'm trying to buy a home for the first time, did the usual contract, had the inspection done and found out the roof had four layers of shingles. The inspection report came out and stated the roof was not leaking, but structurally it was dangerous.

The sellers came back and said they will fix the roof, but increase the price of the house. That was a verbal, and we stated no because we did not expect to pay more for the house. To make a long story short, the sellers are two attorneys and they are now threatening us with legal action because they said nothing is wrong with the roof and they agreed to fix it anyway.

Answer: You need to get your own attorney and have him or her look at the purchase agreement and all disclosure statements. Most likely the building code requires that no more than two layers of roofing material can be used. The reason for this is to limit weight on the roof.  Too much weight could cause structural problems.

As to the seller's offer, it's a counter offer to fix the roof at your cost in the form of a higher price to which you have not agreed. What, exactly, is attractive about that?

Don't Overlook Home Security

Did you know: Home security doesn't always need to come with a hefty price tag?

To make sure your home isn't a target for burglars, use inexpensive plug-in timers to operate your lights and appliances while you're away. Leaving a small desk radio on for 6 hours a day only costs about 22 cents per month.

A large dog bowl filled with water will make burglars think twice about entering your home in fear that that big dog bowl is reflective of a big dog with even bigger teeth!

Also look into motion-detecting floodlights, which cost as little as $12. Just remember to put them in a high enough place so they can't be broken or dismantled easily.

Lastly, remember the most common entry points for thieves -- the front, side and back doors, the first floor window, and the garage. Always keep these points locked and secure, and while you're at it, put up home security stickers in these spots too. You can find these for as low as $10 on eBay. Having a few displayed will make anyone think twice before breaking in.

So remember, even if you don't have a big budget, there are some low-cost ways you can protect your home.

Why Do you expect top dollar for your Home?

When we do market evaluations, many times we hear, "My house is worth more money than that."

Similar homes sell at different price ranges. Homes that have been updated and are beautiful demand more money. If your home has not been updated, you will not get top dollar. It's just that simple. A newer furnace does not mean more money for your home. Beauty adds demand, demand creates higher prices. 

Bad Idea Before Marriage

Question: I plan to marry in the near future; my husband-to-be had to buy out his wife's portion of the house in a hurry -- she has also ruined his credit. I have excellent credit and also a home to sell. I will make around $40,000 profit from my house.

Would we be better to use some of my profit to fix up his house and ready it to sell; or should he sell his house "as is" and get him out from under the large payments and interest rate. We plan to buy a home together in my name after we are married.

Answer: Imagine if you sell your home, provide the cash to fix up his property and then the wedding is called off. You would have no cash, no house and no hubby.

It may be best to do nothing until you're actually husband and wife.

2245 June Dr, Schererville. Stunning 4 bedroom, 3 bath Ranch style home that shows like new and is bursting with impressive features. This Home offers high quality finishes & architectural detailing throughout. Thoughtfully designed to capture beautiful views of the Natural area behind the home. Spacious Living room with (2 way) fireplace. Beautiful Kitchen with Granite counters, Ceramic back splash, Tray ceiling, Large Dining area, high quality Cabinetry, Gathering room & Fireplace. Separate Master bedroom wing with Tray ceiling, Walk in closet, private bath, skylight, double sink vanity, separate shower & whirlpool tub. Bedrooms 2 and 3 are located on the other side of the home where there is an updated Main bath. Formal Dining room with 14 ft Tray ceiling. Butler pantry. Finished main level laundry room. Walkout lower level is unbelievably impressive with a Family room & (2 way) Fireplace, wet bar/2nd Kitchen, Large bedroom suite w/ Private (shared) bath & Fireplace. Lower & Upper Deck. Inground sprinklers.

Why Won't They Let Me Buy A Home?

Question: I want to own a home, but the Real estate agent won’t show me homes for sale & the bank guy won’t give me a loan because of my credit score. As a US citizen, I have the right to purchase a home. I have argued my point to these so called real estate people, yet they refuse to listen anymore.  Do you know of anyone that can help me?

Answer:  Mark Twain said: “It ain’t what you don’t know that gets you in trouble. It’s what you know for sure that just ain’t so.”  Homeownership is the right of every adult in our great Country. But, to do so, we must show financial responsibility.

Instead of ignoring their advice, why don’t you listen to their professional knowledge and start shifting your negative energy to improving your credit score and reducing your debt? A real estate agent wants to sell you a home. A lender wants to give you a loan. That’s how they make a living.  But, you must follow the prequalification rules & guidelines. If you don’t meet these rules, lenders won’t lend to you and Realtors won’t show you homes. Do you think home sellers want buyers who cannot qualify for a loan walking through their homes? Would you? I don’t think so.  So now do you understand?

Take responsibility for your present situation and then listen to these professionals that can be part of your successful team. Follow their advice and soon you will own part of that American Dream! 

Should I sell my Home to a "We Buy Houses" Company?

Question:  We have a home that we have not kept updated and is in fair to poor condition. Our friend said we need to sell to a company that buys distressed properties. She said she heard this was the way to go. We have found a company that does this. Can you recommend another company that can help us?

Answer: Don’t sign anything and stop taking Real estate advice from your friend. Yes, we can recommend a company and it’s not a distressed property company. We would recommend you call a Real estate brokerage company. Yes, a local Realtor. Here’s why. There are 4 types of property conditions: Beautiful & updated, the average range, below average and the distressed property condition homes. Each higher level of condition commands more value.

By calling a company that buys distressed properties, you will be getting a distressed property price for your home. Since you know little about real estate values, why not call a local Realtor to establish a likely market sales price based on the condition of your home?

The Realtor may recommend a few inexpensive improvements that you, a family member or even that know it all friend could do, which would escalate your homes’ value to a different condition category.  A few hundred dollars of investment could possibly yield you thousands more in sale price.  You won’t know until you do this little bit of research.                              

E-mail us your Real estate questions at: Cathyah@aol.com

Really Unique Listing in Lansing

Really Nice, Spacious & Unique Home. Over 2600 sq ft of finished Living space. Huge Living room with Cathedral ceiling & floor to ceiling window. Formal Dining room. Large, Eat in Kitchen w/ Breakfast bar, dining area, 48" Viking Professional Stainless stove with double oven, griddle, grill and warming shelf, Sub Zero refrigerator & new dishwasher. Sunroom off Kitchen looks onto the yard. Deck has a spiral staircase leading to yard. 3-4 bedrooms. 2.5 baths. This home is perfect for related Living. Master bedroom has a private bath & walk in closet. Bedroom 2 has 2 closets. Hardwood floors in bedrooms. Lower level has a large Family room w/ a 2nd Kitchen, 3rd bedroom, Rec room or 4th bedroom and a full bath. 3 car garage. 1.5 car attached and a 2.5 car detached. Fenced yard. Private patio w/ hot tub. Main level laundry with Newer washer & dryer. Roof, furnace & Central air are from 2003. This is a very cool Home.

Click on the Norton Safe Link for pictures and Virtual Tour:

https://www.coldwellbankerhomes.com/il/lansing/3259-louise-drive/pid_11585726/

Don't Forget to Give your Home Curb Appeal!

When selling your home, Curb Appeal gives the buyer that First Impression of your Home.
It can affect the way he views and reviews the Interior of your Home.
A Great First Impressions can also mean a higher sales price.
I attended the retirement party of a fellow Realtor several years ago and he always gauged how the interior of a home would look by how the exterior of the home looked,                                              specifically how the garage door looked. 
I'm serious. Since then, I have tested his theory many times and I concluded that in most cases....He was Right!

How Bad Do You Need to Sell?

Question: I own a home with an appraised value of $368,000 and little left on the mortgage. Is now the time to sell or hold? An agent wants to list the home for $300,000.

Answer: Why do you want to sell? Is there some place you would like to move?

Do you have a surplus of cash? If not, and if the property is worth $368,000, why would you want to sell for $300,000? That's better than a 20 percent discount and you haven't even bargained with a buyer.

You need to speak with other brokers in your local community to determine a market value for the property -- have them each prepare a listing presentation for you. Then determine the pros and cons of a sale -- for you.

Inexpensive Selling Tip

Looking for a quick way to rejuvenate your living space? Before you go changing layouts or knocking down walls, try giving your interior a fresh coat of paint. This fairly simple task can dramatically alter the look and feel of your home.

Changing interior paint is an easy do-it-yourself project that most can tackle in a weekend or two. Before you get the rollers out and start painting, here are some basics about the interior paint finishes available:

Flat or Matte -- Hide imperfections with flat paints, which absorb light and make the colors seem darker. The downside? This type of paint is the least stain resistant, so reserve it for low-traffic areas and ceilings.

Eggshell -- Not as dull as flat paint but less shiny than semi-gloss, this low-sheen option works well in living rooms and bedrooms. Be aware that the shine can accentuate wall imperfections, so it's best on smooth, well-prepared surfaces.

Satin -- This easy-to-clean finish is often used on windows, doors and trim. Its soft sheen sets it apart from walls painted in eggshell or flat finishes. Though it is highly durable, satin paint has less protection than shinier options.

Semi-Gloss -- Designed to stand up to stains, semi-gloss paints are the easiest to clean, making them ideal choices for kitchens and children's rooms. Semi-gloss sheen also stands up to moisture, so consider this selection when repainting a bathroom.

Low VOC -- The name says it all. This type of paint contains fewer volatile organic compounds (VOCs), which release toxic gases. Opt for low-VOC paint if you want to go green in your home and deal with less paint fumes.

Mold in a Bank Foreclosure Home

        Here is an example of the Mold we see regularly in a Bank                                                foreclosure home. 

Are Surveys of a Property a Good Idea?

Question: I want to know exactly where the property line is between my house and my neighbor. My sister told me it doesn't matter because it's not much to care about and I would have to take care the grass. Do you think she's right? If she isn't then what should I do to re-measure my property?

Answer: To determine your property's exact boundaries you want to get a survey by a licensed surveyor. Knowing the precise boundaries of your property is important. First, you want to assure that you're not paying taxes on property used by a neighbor. Second, if your neighbor continuously, openly and notoriously uses your property, he may actually obtain title over a number of years. Third, when you sell, you want to assure your buyer that they are getting a given quantity of property and that the boundaries of that property are well defined.

Agreeing on an Offer to Purchase our Home

Question:  Our home is listed for $250,000. We received an offer for $240,000 and they wanted us to pay $6000 of their closing costs. The buyer has FHA financing. We countered their offer with $245,000 and no closing costs.  Anyway, after going back and forth, our Realtor convinced us to pay the $6000 in closing costs and raise the price to $252,000. We did and the buyers accepted our offer. A few weeks later, the appraisal came back at a $247,000 value. Now the buyer wants the home for the appraisal price and wants the $6000 in closing costs that we agreed upon. Our Realtor said take it and move on. We are not happy with this. What is your opinion?

Answer: The concept of a seller crediting a buyer for their closing costs is pretty normal. The amount varies from deal to deal. If the amount can be agreed upon, it is a benefit to both parties, and produces many successful closings.

A lower appraisal means that in order for the deal to be financed by the lender, the seller would have to drop to the appraisal price or the buyer would have to make up the difference. Very few buyers are going to want to purchase a home over the appraised value. This FHA appraisal stays with your home for 4 months. So, if you say no to the deal, the next FHA buyer within the 4 months, would use the same appraisal.  

It is possible that you could find a conventional loan buyer, with the hope that this appraisal would yield a higher value. But you are starting all over and there are no guarantees that it would be easy to find a conventional buyer or that the appraisal would be any different.

Since your contract is being renegotiated at a lower price than what was agreed upon, you do NOT have to pay the $6000 in closing costs. Sure you agreed to pay them, but the buyer also agreed to pay a higher price for your home.

Perhaps you can renegotiate the closing costs or other items in the contract that would make the deal appealing to both sides. After all, the buyer did like your home and you do want to sell!

Why are you in My House so Long!

Question:  My home is currently listed with a Broker. The other night, we left 15 minutes before the 5 and 6 PM showing. I returned at around 7 PM and the Realtor and buyer were still parked in my driveway. As I drove by, I could see them sitting at my kitchen table. I didn’t know what to do so I sat there for another half hour before they finally left. My Broker later explained that they were probably very interested in the home, that’s why they stayed so long, and to take that as a “good thing.” I am still upset about this. Am I wrong being so upset?

Answer: First off you deserve some answers and not just that “it’s a good thing.”   Were they late for their appointment? Why did these strangers use your home as a meeting place?  Why were they there so long? There is no excuse for a seller not knowing that a Realtors appointment is running late. We all have mobile phones. There is no excuse for a showing lasting for more than an hour….even if they are interested in the home. Lastly, if they used your kitchen table as a meeting place in an occupied home, then that Realtor should be reported. That is unacceptable.

Here is our solution:  First, tell your Realtor you want the mobile number of any showing agent. That way if they are late, and they have not contacted you, you can contact them to check on their status.                                     

Second, don’t leave for the showing until they arrive at your door. No rule says you have to leave your home unless you want to. If you decide to stay home, stay out of their way and give them some privacy to openly discuss and view your home. If the weather permits, go outside to your yard. If they are late, refuse the showing if it is an inconvenience to you. An appointment means an arrangement to meet someone at an agreed upon time and place.                                                                                     

Third, if you feel the prospective buyer and Realtor have been in your home long enough, then go home! It’s your home! None of these solutions are rude. They are a response to a bad situation that they put you in! If they don’t understand, then they are probably not the buyers you would want purchasing your home. 

Have you seen this Math calculation?

This calculation was first seen on Good Morning America.
First take your shoe size. (No half sizes).

Example:
Shoe size is 11. Multiply by 5= 55.  Add 50 = 105. Multiply x 20 = 2100. Add 1015 = 3115.

Subtract your birth year:  -1956.  3115-1956= 1159.  11 is your shoe size. 59 is your age.
Try it out for your friends and family.

Low Tax Cities. Many Have Low Snow too.

Home Advisors 7 Hot Home Improvement Trends for 2016

1. Tubs are out; shower stalls are in.

According to the pros, 2016 is the year of the bathroom remodel. It seems homeowners are shifting away from tub-centric, five-piece bathrooms and opting instead for walk-in shower stalls complete with seating, shelving and multiple showerheads.

2. Ceramic is out; glass tile is in. 

When it comes to backsplashes and bathroom surrounds, the pros predict that homeowners will scrap ceramics and indulge in glass. It shows fewer flaws than ceramic too.

3. Granite is out; engineered quartz is in. 

According to our pros, engineered quartz (the Silestone brand, in particular) has officially ousted Granite as countertop supreme. Why? Because engineered quartz is tougher than granite — and it offers the beauty of stone without the maintenance too.

4. Lowboy toilets are out; comfort height is in. 

The standard lowboy toilet is being dethroned.  Homeowners are shifting toward comfort-height toilets that offer higher, more accessible seating (2 to 3 inches higher than standard).
Bonus points: Comfort-height toilets are great for people with joint and mobility issues!

5. Oak cabinets are out; paints and dark finishes are in. 

One of the year’s hottest trends will be a shift from natural oak and cherry cabinets to more modern paints and stains, says Travis Neff of Neff Enterprises. Fortunately, there are a number of ways to update your cabinets without replacing them altogether. In fact, refinishing (painting or staining) or refacing (replacing the doors and drawer fronts) can save you thousands of dollars!

6. High-end appliances are out; mid-range appliances are in. 

Today’s mid-range appliances look just as nice and perform just as well as higher-end appliances, explains Howard Molen of HFM Builders. So, there’s no reason for homeowners to spend top dollar on top-of-the-line machines. 
Bonus points: Saving on appliances means you get to spend more on the fun stuff!

7. Engineered flooring is out; oak is in.

Laminate and engineered flooring enjoyed a good stint of popularity, says Howard Molen of HFM Builders, but homeowners quickly learned that changing weather and humidity caused unsightly separation and gapping in their floors. In 2016, Molen declares, homeowners will turn back to solid oak flooring. Solid wood won’t gap, he says, and it lasts longer and looks better too.

We Will Open the Book. Its Pages are Blank. 

We are going to put words on them ourselves.

The Book is called Opportunity and its first Chapter is New Years Day!

To A Happy & Healthy 2016 !