Wednesday, July 21, 2010

The Truth About the Housing Market

Though I continue to have listings and buyers, the market still remains and challenge as this article explains:

http://online.wsj.com/article/SB10001424052748704723604575379463676740680.html?mod=WSJ_hpp_LEFTTopStories

Home Repairs that Will Save you Money

1. Caulk

If you've lived in your house a few years, you probably noticed that the caulk along your sinks, countertops and bathtub is coming loose. These gaps may not seem like a big deal, but they can wreak havoc inside your walls. Moisture causes mold and even leaks - expensive repairs that can easily be prevented. A tube of kitchen and bath caulk costs just a few dollars, and you'll avoid expensive repairs.

2. Insulate

The quickest way to save money on your energy bill is to insulate, yet so many of us overlook this simple home improvement project for its benefits. Sure, your walls are insulated, but what about your basement, your attic, and your garage? Just in case the energy cost savings aren't enticing enough for you, check with the IRS - there are current credits that allow you to deduct this energy-saving expense from your

3. Change Filters

When was the last time you changed your furnace's air filters? It's an oft-overlooked chore, but one that keep your furnace running efficiently, and improves the air quality inside your home. Change your filters at least every three months to keep your furnace working efficiently for years to come.


4. Install a Thermostat

Does your home have a programmable thermostat? If not, invest in one; it'll earn its money back in no time. By programming heating and cooling, you avoid paying to keep an empty house at a comfortable temperature. Manage the heat appropriately in winter to avoid burst water pipes; in summer, draw your curtains during the day to keep the house cool. Buy a programmable thermostat and you can save big on monthly bills.


5. Fix Leaks

That leaky faucet or runny toilet is draining your water bill, and in most cases it's a cheap and quick fix. Replace the washer on your faucet, and while you're at it, consider installing a faucet aerator if yours doesn't already have one. Faucet aerators reduce water flow from your faucet to save on your water bill; check your home improvement store for this inexpensive fix.

6. Install Dimmers

Dimmers aren't just for romance; they can save you big bucks on your energy bill. They're cheap and easy to install, so look for rooms that could use a little reduction in harsh lighting. While you're at it, replace your light bulbs with energy-efficient ones. They're big money savers.

7. Clean Carpets

Clean your carpet lately? With proper care, carpets can last a long time and look great, but everyone needs to clean them sometime. You don't need to hire an expensive service either - if you can vacuum, you can clean your carpets by yourself. Rent a carpet cleaner at your local supermarket or big-box store for a modest fee. Make sure you vacuum thoroughly before cleaning, and pick a dry day so your carpet dries quickly. With regular cleaning your carpet can last a long time, saving you big bucks on new flooring.

8. Clean Siding and Windows

Windows and siding get a beating in most climates. Wash your windows and siding with a simple hose and water first, and with a cleaning solution as needed; your home improvement store sells specialty products for just this kind of job. Rent a power washer for very dirty jobs. Keep an eye on cobwebs, wasp and bird nests to ensure your home's exterior stays in good shape. Touch up with paint as needed, and your house will look like new at little or no cost.

9. Fight Pests

Those spiders and ants at your foundation, that mouse nest in your crawl space? Take care of it - pests can destroy a home in a hurry. Hire an exterminator, or for small pests, combat with pesticides. Even if you don't think you have a problem, inspect every part of the interior and exterior of your home regularly to avoid small pest problems getting out hand.

10. Clean Ductwork

If your home is older, your ductwork likely has dust, grime, and other unwelcome residue inside. For big jobs, pay a professional; a simple cleaning can easily be done yourself. Simply remove the grates from your air vents, and clean the inside with your vacuum.

The Bottom Line

The best way to invest in your home is to take good care of what's already there. With these simple repair jobs, you'll even save money - with just a little elbow grease as investment.


http://finance.yahoo.com/real-estate/article/109967/10-home-repairs-that-will-save-you-money?mod=realestate-homeimprove

4 Overlooked Homeownership Costs

1. Property Taxes
Property taxes can be demanding because even if you've paid off the mortgage, you still owe what amounts to a monthly fee to the town and/or the municipality in which you reside. It can easily total $500 to $1,000 or more a month, particularly in the northeast United States, where property values have soared in recent years.

In short, when a house is built, it's not the bank that determines the property tax, it's the township in which the home is located. This is something to consider, as property tax is basically a guaranteed annuity in perpetuity at the homeowner's expense. (For more, see Five Tricks For Lowering Your Property Tax.)

2. Risk
If you rent an apartment and someone slips and falls in the parking lot, odds are that the holding company, and/or limited liability company (LLC) that owns the property is adequately insured and will be able to pay any damages with little consequence to its overall financial well being. However, if someone slips and falls on your property, you could be sued personally, and your homeowner's insurance premiums will likely skyrocket if the injured party attacks the policy to pay his or her medical bills.

There are other risks as well. For those who live in low lying areas or near a body of water, there is always the risk of flood and/or hurricane damage. Water damage from storms is very rarely covered in a basic homeowner's policy. Therefore separate flood insurance, which typically costs between $1,000 and $4,000 per year, must be secured. Again, this is over and above the $500 to $1,000 a year that most homeowners typically spend on their basic home policies. (For more insight, read Beginner's Guide To Homeowners Insurance and Insurance Tips For Homeowners.)

3. Maintenance
Assuming an individual or couple owns a house for 20 or 30 years they will most likely have to repair, overhaul, and/or replace several things, such as the roof or furnace.

Homeowners are also more apt to purchase luxury items that renters would not, such as granite counter tops, pricey fixtures, alarm systems and other gadgetry. The cost of these luxury amenities can easily add thousands of dollars to the cost of owning a home.

4. Time
Don't forget the time and the cost associated with maintaining a home, such as mowing the lawn and painting the interior and exterior of the home. In fact, it's not uncommon for homeowners to spend a good portion of the weekend tending to chores around the house.

On the other hand, a renter's maintenance tasks are relatively minimal. For most of their problems, they simply call their landlord.

Minimize Some Of These Costs
There are some things that would-be homeowners can do to minimize the monetary and time costs associated with homeownership.

Buy something that suits you
Buying a home that is close to how you want it to ultimately look will save you time and money. So will buying a home that has been updated and modernized throughout the years. Remember that most prospective homebuyers tend to underestimate the time and the costs associated with refurbishing their homes. Avoid that mistake.

Seek out towns with low property taxes
While there is almost no way to gauge what a given town will charge its inhabitants in property taxes 20 or 30 years down the road, would-be homeowners should seek out towns that have a history of financial conservatism. Another good idea is to move to a town a couple of years after it has raised taxes to build a new school, pave roads, or erect a new town hall. The theory is that it will be another 10 or more years before the homes will be reassessed, or before the local politicians will raise taxes again.

Do the work yourself
While it's unlikely that you'll be able to handle every heating, electric and plumbing problem that arises, there are some things that the homeowner can do on their own to minimize repair and maintenance expenses. For example, almost anyone can paint a living room by themselves or install basic appliances.

Buy a condo
While not traditionally the best investment in terms of appreciation potential, the condominium owner doesn't have to do any work on the outside of the home, such as mow the lawn, trim the bushes or paint. Condominium bylaws will probably prohibit making any structural changes within the residence. As such, the condominium owner will spend less time and money refurbishing. (For more insight, read Does Condo Life Suit You? and Buying A Condo.)

The Bottom Line
While it may be the American dream to own a nice house with a white picket fence, it can cost a lot more than you think. So think twice before making the investment.

http://www.investopedia.com/articles/mortgages-real-estate/08/cost-of-owning.asp?partner=yahoore