Winterizing Your Vacant Home

 

Whether it is your summer vacation cottage, or your recently vacated home put up for sale, proper winterizing prevents your home from deteriorating while it’s empty and saves you money both now and later.

Make a list

Decide what needs to be done and make a list to check off as you do it. Be sure to add these areas to your list.

• Plumbing: Turn off water at the exterior of your home. Make sure the lines completely drain by turning on all the taps until no more water comes out. Water remaining in the lines can freeze, causing your pipes to burst and resulting in very expensive repairs both to the pipes and to floor coverings and walls. Blow water from pipes using an air compressor. Pour RV-type anti-freeze in the traps. Close sink and tub drains to keep out critters and preventing odors. Cover the toilet bowl with plastic wrap to prevent sewer gasses from entering your home.
• Appliances: Drain water from your dishwasher, washing machine and your refrigerator’s water lines. Remove your refrigerator’s water filter so that it does not freeze and break inside the refrigerator. Drain and turn off your water heater. If your power will be off, completely empty and clean your refrigerator, then prop the door open to prevent mold growth.
• Utilities: If your home has power during the winter, set your thermostat low, but warm enough to prevent freezing and to keep your home dry so that mold does not grow. Also, unplug all appliances, including televisions and microwaves to prevent risk of fire from faulty wires.
• Pests: Remember that mice and rats like warm places. They also like to gnaw on wires. If your home is prone to pests when it is empty, set out bait or traps, or consult a pest control professional. Remove any foods stored in boxes or bags, since pests can chew through the cardboard or plastic to get at the stale crackers or cereal inside.
• Remove any liquids that might freeze. This includes bottled water, soda or beer in cans or bottles, and even paint.
• Close flues and dampers, windows and vents. Seal any opening that might invite pests or the cold into your home.
• Closing shutters or drapes will keep the sun from fading your carpet and protect your windows from inclement weather such as hail.
• Wash linens and store them in plastic bags. The vacuum-sealed storage bags repel water, dirt and insects and protect your sheets, towels and blankets from mildew and mold.

If your home is for sale

When your vacant home is for sale, it is smart to leave the power on. If the home uses gas for heating, then be sure to leave the gas on as well. Buyers want to see the home, so if it is too cold or too dark, your home is less likely to sell. Check with us about managing your empty property.

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The First Thanksgiving in Your New Home

 

You’ve invited everyone to celebrate Thanksgiving with you in your new home … a joy-filled day with family and friends, good company, great food, celebrating old traditions and creating new ones!  The first holiday gathering in your new home celebrates more than the season, it celebrates the start of special memories in a new place.

To mark your first Thanksgiving in your new home, consider these ideas:

The Decor

Most likely, you’ve spent your decorating budget on long-term furnishings for your new place.

• To add a little holiday panache, create a centerpiece of beeswax candles, gourds, mini pumpkins and dried leaves.
• Or place some bare branches in a vase. Have everyone write something they’re thankful for on a paper leaf and tie it to the tree. As you gather for the meal, let everyone choose a leaf to read.
• A floral basket with late blooms from you new backyard blend nicely with branches of dried berries and white pumpkins.

For more simple and beautiful centerpiece ideas, check out these great options or search on “thanksgiving decorations” on Pinterest to see what others are doing.

Realize, too, that your new home may be décor enough since many friends and family will be seeing it for the first time.

The Feast

Whether your plans include an elaborate spread or simpler fare, everyone loves to get involved. So, let Great Aunt Lydia bring her famous fruit salad, and let the kids make the green bean casserole. Part of the fun is in the doing and the best memories include both the old traditions and the new.

Speaking of new … try a simple new recipe like Sweet and White Mashed Potato Swirl, or an easy make-ahead fresh cranberry Jello salad or a cranberry mimosa. Simplify the day by making some of your meal in a slow-cooker. If you’re adventuresome, try a Cajun-style deep-fried turkey.

If your new home is smaller, consider serving buffet-style. If you live in a warmer clime, perhaps adding a portable outdoor heater can extend your dining area to the patio.

The best advice?

Enjoy the time with family and friends. Don’t make your menu so complex that all your attention is on the meal preparations instead of your guests. If there are ways to minimize the mess — foil pans, paper plates, etc. — and simplify the cleanup, so much the better. You don’t want to miss out on family tag football in your new backyard because you had dishes to do and pots to scrub.

Need a new home for the next holiday?

If you’re not yet in your new home, we can help you find one for the next holiday. Give us a call … we might even help you find a Black Friday special over the holiday weekend and get you well on your way to celebrating next Thanksgiving in your new place.

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Having a Thanksgiving Weekend Open House

To have an open house or not to have an open house over the Thanksgiving weekend: that is the question! Many sellers assume that the Thanksgiving holiday weekends and the week between Christmas and New Years Day are less than favorable times to have an open house. Some real estate agents disagree.

Less competition

Often, because both sellers and their agents assume the holidays are off limits, if you have an open house over the holidays, you’ll have less competition. Typically, the number of open houses during the Thanksgiving holiday is less than half what a normal weekend might have. That means your home may get more exposure than it would with more competition for the same day.

More serious buyers

Since many people have that weekend off, it may be the best opportunity for them to go out and look. When the buyer and seller both are serious, a holiday open house can be effective. When the buyers are motivated, they are more than happy to shirk Black Friday shopping in hopes of finding the right house. A recent survey of real estate agents revealed that two-thirds of them believe a Black Friday home seller is more serious and over sixty-one percent believe Black Friday buyers are more serious.

Year-end timing

If a buyer needs to complete the deal prior to the end of the year for financial reasons, the Thanksgiving weekend is the last opportunity for a big push toward that goal. Homebuyers waiting for their year-end bonuses to add to their down payment often take advantage of the holidays to house hunt.

Proximity

Young couples seeking to relocate nearer to family most often “come home” for the holidays. Since they are in the area anyway, they take the time to see what is available on the market. Exposing your home to buyers during this time may give them the impetus they need to make the move they already want to make.

Winter open house best practices

Holding an open house in winter has both advantages and disadvantages, so here are some best practices to make sure your open house is a success.

DON’Ts

• DON’T over decorate. While buyers may adore your holiday décor, they also want to be able to see the home’s features.
• DON’T forget to remove holiday feast leftovers. This includes airing out the smells of cooking from the day before. When a home is closed up in the winter, those stale odors linger even though those living in the home no longer smell them.
• DON’T hang around. Find a special place to take your family while your agent handles your open house. Buyers, even serious buyers, may be uncomfortable asking serious questions with the homeowner present.

DO’s

• DO put your pet in a safe place. Strangers in the home can make your pet anxious and potential buyers may find animals frightening or off-putting.
• DO turn on all the lights. In the winter, the sun sets early, and even a daytime open house may find a cloudy day. Potential buyers prefer light bright rooms. That means windows and blinds should be open as well.
• DO keep the heat to a comfortable temperature. While your family may prefer it cooler, or you choose to conserve energy by wearing sweaters and extra layers, do not assume your potential buyer will appreciate those efforts.

If you are considering a holiday open house, contact us immediately so that we have advance marketing in place for the best possible turnout.

Stan Rector – 805-577-7902 – Stan@StanRector.com

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Moving During Holiday Season

Whether Thanksgiving weekend or the full week between Christmas and New Years, the holidays may be the best time, or indeed the only time, you can plan the move to your new house. Here are some tips to make the transition smoother.

Plan ahead

If you have young children, you’ll want to plan a time of holiday celebration, even if it is less elaborate than you normally would.

• Spending the holidays in a hotel: If you’ll be in a hotel over the holidays during your move, find one that is planning a holiday celebration. You might work with the hotel staff to schedule a special time to “use” the hotel’s Christmas tree to open your gifts.
• Make sure you know which restaurants are open or deliver on the holidays. Since cooking utensils may already be packed away, don’t assume your new kitchen will be up and running. If you’re moving to a new city, knowing which restaurants will be open may require some searching on the Internet or a few phone calls.
• Bring along some holiday spirit. Even if you’re foregoing traditional gift-giving during your move, take stockings and a few decorations with you.
• If you’re planning to celebrate in the new home, shop online and have gifts delivered to your new home. Arrange with the local postmaster and delivery services to hold your packages until you arrive, or arrange to have them delivered to a relative or the hotel where you are staying.
• Choose the gift-wrap option during online shopping. The last thing you need is to be looking for tape and scissors in the midst of all your boxes.

Prepare for hidden costs

While some companies charge less to move over the holidays since demand often is lower, others may charge more because paying for movers and drivers on a holiday costs them more. Before choosing your moving company and a holiday moving date, make sure you know what the costs will be when moving over the holidays. Even if the movers are less expensive, some moving costs that could be higher include:

• Cable/satellite installers may cost more or be unavailable
• Plumbers and electricians may charge a premium
• You may not be able to get the lights or heat turned on until after the holiday
• There may be more breakage from slips and falls on icy driveways and sidewalks when loading or unloading a truck.

Other tips and considerations

If you need to move during the holidays and want to celebrate at the same time, consider leaving one room set up for your celebration while packing up all the other rooms. Alternatively, plan the actual celebration day at a family member’s home or a hotel. Prioritize packing so that non-essentials are packed first, and if space on your truck allows for it use the last-in-first-out rule so that the items you need to celebrate in your new home are readily available when the truck gets there. If you’re moving a long distance and are driving, check along the way to see if you can take advantage of special holiday celebrations, concerts or events in any cities you pass through.

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What to Know about Fall Leaves and Your Home

This time of year, leaves turn beautiful shades of red, vermillion, orange and yellow. We enjoy their beauty. We take photographs. We collect them. Our children play in them. For a homeowner, however, leaves pose the possibility of damage to their landscaping, their home and their relationships.

Leaves and lawn-care

If you’re new to homeownership, you may not know that while allowing leaves to lay a thick carpet over your lawn is beautiful, a solid mat of large wet leaves, such as those from oak, maple or sycamore trees, can damage your lawn. They promote mold growth, cause moisture to run off rather than seep into the ground, and hide the grass from the winter sun.

Experts suggest keeping your lawn clear of leaves. Here are some options to consider:

• Raking. This historic method of dealing with leaves is still the preferred method for some lawns. If you have specialty turf, lightly raking and removing leaves protects your lawn from damage. Bag leaves or ad them to your compost pile. Remember that paper bags will decompose much more quickly than plastic ones. If your city offers leave removal, be sure to utilize the appropriate process required.
• Mulching. Many mowers have mulch settings that chop the leaves into smaller bits that you can leave on the lawn to decompose naturally, and add nutrients to the soil.
• Blowing. Many gardening professionals prefer blowing leaves out of flowerbeds and lawns with power blowers into large piles to then “vacuum” them up with large machinery and haul them away. Typically, you would hire a professional to do this since purchasing the equipment for yourself might be cost prohibitive.

Leaves and gutter-care

Blowing and falling leaves create problems for your gutters. Once most of the leaves have fallen, you should have your gutters inspected for clogs. A clogged gutter is more than just an inconvenience. It can cause water and ice to back up under your roof creating leaks and other damage. When rainwater overflows a clogged gutter or plugged downspout, your fascia and soffits are endangered, too. Water backing up a downspout may dislodge or warp gutters, pulling them away from your house. When water spills down the sides of your home, it damages windows, walls and even your foundation.

Consider a professional gutter-cleaning service, especially if your home has more than one story. You might investigate gutter guards if your property is particularly prone to leaf buildup. Your local gutter professional can help you determine what works best in your situation.

Leaves and relationships

Most municipalities consider leaves to be a natural product, so while a homeowner might be responsible for damage to a neighbor’s home from a falling branch, that is not the case with falling leaves. So, when the leaves from your yard blow into your neighbor’s yard, he may not have a legal claim, but it will strain your neighborly relationships. Make sure to talk to your new neighbors about the leaf situation. If she finds them a nuisance, you might offer to rake her yard as well. The best neighbors come up with a solution together.

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Can I Sell My House with a Reverse Mortgage?

To help you through your retirement, you took out a reverse mortgage on your family home. Now, several years into your retirement, your son wants to buy his childhood home so you can move to a warmer climate. Can I sell my house?

Reverse mortgage

A so-called “reverse mortgage” is a home loan that offers regular cash payments (in a single lump sum, a monthly advance, a line of credit, or a combination of the three) to a homeowner based on the home’s equity. The borrower must be above the age of 62 (in the U.S.) and the home must be his/her principle residence. Economists proposed the loans as a means of assisting seniors in maintaining a level income, and the IRS does not consider funds from a reverse mortgage to be income, but rather, loan advances.

Repayment

Typically, the borrower can defer repayment of the loan until he dies, sells the home or moves away from the home for more than 12 consecutive months. When the loan comes due, the borrower or her heirs may refinance the loan, pay the loan with interest or sell the home, cashing out any remaining equity. Alternatively, they may turn the home over to the lender of the reverse mortgage, giving up all claims to the property or the equity in the property. With a HECM (Home Equity Conversion Mortgage), available through the Federal Housing Authority (FHA), the borrower can never owe more than the home is worth, so the lender only has recourse on the property, not the borrower or the borrower’s heirs.

Selling the home

The interest on a reverse mortgage compounds over the life of the loan, which means that each month, interest accrues on both the borrowed amount and the unpaid interest. The final mortgage owed may be much higher than the original amount borrowed. If selling the home, here are the first steps to take:

1. Determine how much is owed. You will owe all of the money borrowed to-date, compounded interest on that money, and fees that the lender may charge.
2. Obtain a payoff quote from the lender. This gives you an estimate of the amount required to pay the loan in full. Remember that a payoff quote is for a specific date or date range, so if the sale takes longer than anticipated, the final amount likely will be higher than the quote.
3. Contact your real estate agent. We not only can help you with the sale of your home, we can help determine the fair market value and determine if selling a home with a reverse mortgage is appropriate for your situation.

 

When the home sells, the reverse mortgage will be paid from the proceeds of the sale. Any remaining monies after paying off your real estate agent and any liens, fees or other loans will be yours.

Remember that the original reverse mortgage loan may be higher than what the property currently is worth. In that case, it may not be in your best interest to sell the home. We can help you determine if selling your home is the right decision for your circumstances.

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Black Friday Home Sales

As we prepare to enter the holiday shopping season, home sellers may think it is too late to sell their home this year. You may have heard that homes sell better in the spring, so you might be tempted to take your home off the market until after the New Year. After all, you have shopping to complete, baking to do, decorating to finish and myriad programs and activities vying for your time.

However, a survey of real estate agents shows that while Thanksgiving Day typically is set aside for families, Black Friday and the remainder of the weekend are days when serious buyers have more time to look for a home. In fact, sixty-eight percent of agents surveyed agreed that the buyers out looking on Black Friday are serious about buying a home.

Motivated Sellers

During the holidays, serious sellers can offer extra bonus items to entice buyers: a new washer and dryer or big-screen TV. Motivated sellers could offer holiday discounts, or offer to cover some of the buyer’s fees. Committed sellers may consider dropping their asking price, thereby lowering the effective tax rate on the home—a terrific value to homebuyers.

Sellers can take advantage of Black Friday sales to upgrade appliances and fixtures to improve their home’s appeal. Tasteful holiday decorations add curb appeal, too! Seasonal accents and colorful baskets of mums or pumpkins add a burst of interest to porches and walkways. Brightly painted doors graced with wreaths add a welcoming touch, and new door hardware and carriage lamps add that extra boost of pleasant hospitality to your home’s exterior.

Remember the little touches. Adding a little pumpkin spice or the smell of fresh baked cookies to your home gives buyers the sense of celebration and warmth. They can imagine celebrating the holiday there next year with their own family.

If you are a motivated seller, talk to your agent about ways to make your home more exciting or enticing to holiday buyers, and how to increase your curb appeal.

Bargaining Power

More than forty percent of agents responding to a survey believe that sellers perceive Black Friday homebuyers to be serious, and would likely entertain or accept offers during this time. Buyers with preapproved mortgages have increased bargaining power, especially when sellers want to close the sale by the end of the year.

If you are in the market for a home, talk to your agent about shopping on Black Friday or the remainder of the holiday weekend. Both you agent and motivated home sellers will know that you are serious and will make time for you. If you have picked out the home you want, consider making your offer during the holiday weekend instead of waiting. In the spirit of the holiday, some sellers may be more inclined to accept your offer, or add other values or incentives to the home … so tell your agent what you want, and what would seal the deal for you.

It has been my experience that home sales during the holiday are more profitable. During the holidays the fact is that the people looking normally have to move, and the inventory is normally less then what you will see in the spring. Less competition means more opportunity to sell your house for the highest price in the least amount of time. If you are considering selling, lets talk.

Give us a call now!

Stan Rector

805-577-7902

Stan@StanRector.com

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Should I Buy or Sell on Contingency?

Buy or sell on a contingency?

While your home is on the market, and you find your dream home (or at least the perfect “next” home), it is tempting to place an offer on the new place to hold it until your home sells. Unless you own the house you are selling free and clear, or can afford two mortgage payments, selling on contingency is the only option.

Or, you’re the seller and a buyer wants to make a contingency offer on your home. Buy or sell on a contingency?  Do you accept it?

What is a “contingency”?

A contingent offer means that completion of the sale or purchase does not finalize until a requirement, the contingency, is satisfied. In many cases, the contingency is simply good business practice such as having a home inspection or making necessary repairs to the home. In other cases, the contingency waits on an appraisal: mortgage companies rely on an appraisal before approving the amount of the mortgage, so if the home’s appraisal does not meet the asking price, the buyer could back out due to the inability to get a mortgage approved. This is a “mortgage contingency.”

The more difficult type of contingency for both buyer and seller is the one that relies on the buyer selling his own home before completing the purchase of the new home.

How does a first home sale contingency work?

For buyers, this sort of contingency is mostly a win/win scenario. If their current home does not sell, or the sale falls through for any reason, they do not have to complete the purchase of the new home. This protects the buyer from having to pay two mortgages at once. Even so, the buyers typically must place earnest money on the purchase of the new home that they will lose if the sale falls through. They also forfeit costs of home inspections and appraisals, bank fees and other expenses. Without a contingency, however, contractually they would be on the hook for the complete sale price.

Conversely, the seller also has some protection in this case since he can continue to market his home, and if the contingency falls through, he keeps the earnest money. If, during the contingency period, the seller receives a second offer on the home, the original buyers with the contingency have a specified time—typically 24 to 48 hours, or even up to 72 hours in some agreements—to settle the contingency and purchase the new home. If they are unable to do so, the seller is free to terminate the contract and accept the new offer.

A home sale contingency does pose risk to the seller, however, because a motivated buyer may not be willing to risk having her purchase fall through because of the prior contract. Before accepting a contingency arrangement, the seller’s agent will determine the potential buyers’ actual ability to purchase the home:

• Do they have a preapproval letter from their mortgage company?
• Do they have a contract in place on the sale home?
• If not, is their current home already on the market?
• If so, has it been on the market a long time and is it priced to sell?

 

We can investigate the likelihood of the sale completing, so when you do receive a contingency offer you can be confident in your decision whether or not to accept it.

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Elections Affect Homeowners

One of the very first discussions the Founding Fathers had was about how to balance the rights of all individuals with the rights of those who owned property. They knew that if only property owners could vote, the rights of individuals and minorities might be suppressed … but, if voting extended to non-property owners, the rights of property owners could be unfairly overruled. In the end, they left the question of voter rights to the individual states. Now, nearly 240 year later, with suffrage extended to all citizens, with or without property, the question remains:

“Do elections affect property owners differently than non-property owners?”

Levies

Nearly every municipality imposes property taxes on homeowners for, well, owning homes (and other property). The tax authority typically bases these taxes, or mill levies, as a percentage of the assessed value of the property owned. Proceeds from levies on property fund local services including:

• Law enforcement
• Roads, bridges, street lights, and other infrastructure
• Public schools
• Emergency services
• Debris and snow removal

Each locality and school district sets the property tax rates each year to meet the needs of that community. This means that tax rates vary widely from one municipality to another, and even between neighborhoods. They can increase each year, or may even decrease. For homeowners, voting for or against a levy affects property owners in two ways:

1. The actual tax increase affects a property owner’s bottom line. Yearly property tax increases might push the cost of owning a home higher than the owners plan, or higher than their income can bear. Putting stress on property owners’ financial situation may make it more difficult for them to maintain their property. Homes in distress can bring down the value of an entire neighborhood.
2. When homeowners vote to increase levies—such as those that provide local services, upgraded roads, improved schools or increased emergency personnel—they are voting to increase the value of their homes and communities, making them more attractive to buyers.

Voting for or against levies is a delicate balance between increasing an owner’s outgo with increasing the property’s value and the community’s desirability. Researching the fiscal impact of the levy you intend to vote on is an important first step in determining how it may affect your bottom line.

Sales Taxes

Taxes based on the sale of goods typically spread the burden of the tax across both property owners and non-property owners. Sometimes, however, a sales tax increase is for a specific neighborhood or commercial area. If you own property in an area with a higher sales tax rate than one nearby, it can determine how easily you keep your space leased to shop owners since customers may choose to shop elsewhere.

If you are new to home ownership, increases in sales taxes make purchasing furnishings and appliances more expensive. If you are considering upgrades and improvements, renovations or additions, a tax increase may expand your scope costs.

Other Taxes

Taxes specifically affecting homeowners include those like the one embedded in the Affordable Care Act. It taxes the capital gains income of upper-bracket homeowners that sell their home at a sizable profit and even taxes rental income from investment property.

Candidates

Decisions by both national and local elected officials—from state senators to congressional representatives, governors to county commissioners, city council members to school board members—impact the future levies imposed on local property. Knowing your candidates and how they hope to legislate their agenda can affect both your bottom line and your property values.

Not only are elections about national and state officials, international and social concerns or party platforms—they are about local schools, streetlamps, parks and 911 services.

Voting

Do not leave decisions that affect property ownership to others. Take the time to vote in your local and national elections. Balance how a levy can affect your immediate bottom line with the impact it might have on the sale of your property in five years.

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