Friday, February 4, 2011

Repair Walls to Give Rooms A Fresh Face

Sooner or later you’ll repair walls that make rooms look worn out. Erasing dings, dents, and scuffs is an easy fix. We’ll show you how.
Repair walls filled with dents, dings, and scuffs, and you’ll make rooms look young and fresh and maintain the value of your home. Fortunately, repairing walls is a good weekend warrior project. Here’s how to fix your home’s face in a hurry.

Patch drywall to smooth walls

A putty knife, Spackle, or joint compound can repair wall damage that ages a room.

Dents and dings: A quart of Spackle ($11) and a putty knife can fill dozens of small wall indentations. Spackle adheres to painted walls better than joint compound, though it takes a bit longer to dry. Cut wall repair time by thoroughly wiping away excess Spackle.

Fist-sized holes: Joint compound is your best bet when covering the mesh or drywall patches that cover big holes. You’ll need at least two thin coats of compound and fine grit sandpaper to blend repairs into the rest of the wall.

Nail pops: Nail pops travel in packs: Rarely do you see just one. To repair walls pocked with pops, hammer the popped nail back into the wall or pull it out with a needle-nose pliers; refasten the drywall to the nearest stud with a couple of screws, then fill dents with two or three coats of joint compound. Sand until smooth and flush with the rest of the wall, then repaint.

Remove marks for a clean start

Microfiber cloths are little miracles that erase the evidence of a childhood well spent, drawing on and caroming off walls. To get rid of scuff marks and fingerprints:
  • Spray an all-purpose cleaner onto the cloth (never directly onto walls to avoid drips) and swipe the scuff. (Test a hidden spot to make sure the cleaner doesn’t take off paint with the mark.)
  • Pour a little dish soap onto a damp cloth and wipe the mark.
  • Dip a sponge into an earth-friendly and slightly abrasive paste of dish soap, baking soda, and water, and gently scrub grime.
  • To repair walls decorated with crayon marks, dab toothpaste onto a towel or toothbrush and scrub marks.
  • Use Mr. Clean Magic Eraser ($3), the best instant wall cleaner around. Wet and wring the eraser before attacking scuffs.

Touch up what you can’t wipe out

Prepare for inevitable touch-ups by keeping leftover paint or at least recording the paint number and/or formula (paint names change). Don’t have the original? Scrape off a little and ask your paint store to match it.

For touch-ups, use the same type of brush or roller the original painter used. Feather the paint from the outside borders in.

If touch-ups stand out, paint the entire wall, making sure to paint corner to corner and avoid splatters onto the ceiling and adjacent walls.

Jane Hoback is a veteran writer whose work has appeared in the Rocky Mountain News, Natural Foods Merchandiser magazine, and ColoradoBIZ Magazine.


Read more: http://www.houselogic.com/articles/repair-walls-give-rooms-fresh-face/#ixzz1D0M0zUbm

Thursday, February 3, 2011

Passive Roof Vents: Helping Your House Breathe Easy

Passive roof vents expel excess heat and moisture. The key is to balance incoming air with outgoing, and perform an annual maintenance checkup.
Added to Binder
Passive roof vents encourage natural air flow and work without the aid of motorized fans. Roof vents enhance the overall comfort of the house by providing escape hatches for hot, stale, moist air, which can reach temperatures of 150 degrees in summer.
In winter, you need to dump that hot air before it condenses, which can lead to rot and mold. Warm air trapped in the attic during winter also may cause rapid melting of snow, which then refreezes as ice dams—mini glaciers that can push up shingles and peel off gutters and soffits.

How much roof ventilation?

The rule of thumb for proper attic ventilation calls for a minimum of 1 square foot of vent area (openings) for every 300 square feet of attic floor space. If you have asphalt shingles, you must have some kind of attic ventilation or you’ll risk voiding the warranty.

Check your roof vents

You or a professional roofer should check your roof vents annually.
  • Periodically clear vent screens of dirt, leaves, dust, pollen, spider webs, bird nests, and other debris that impedes air flow.
  • Repair screen rips or tears and damaged flashing.
  • Check for rust or rot around the framing or flashing.
  • Clear insulation from soffit vent openings. You’ll need to inspect from inside your attic. Make sure attic insulation stops clear of the under-eave area.
If you’re having problems with ice dams, mold, and damaged shingles, have a ventilation or roofing professional evaluate whether you have adequate ventilation and need to retrofit exhaust or intake vents.

Roof vent options

  • Ridge vents run along the peak of the roof. They feature an external baffle to increase air flow and protect your house from snow, rain, and dust. They’re usually capped with a material that blends in with the roof. It costs about $245 for a professional to install a 40-foot ridge vent
  • Static vents have no moving parts. They’re basically protected holes in the roof that allow air circulation. They come in various designs—roofline, dormer, roof louver, or eyebrow vents—and are installed in an even line across the roof. Some pros swear by them; others think they tend to leak. They cost between $35 and $50 per vent to install.
  • Gable vents, or wall louvers, are placed in the gable ends of the attic and can be used in combination with other vents. The higher they are, the more effective. However, the airflow from gable vents is limited because they’re under the roof deck, resulting in hot spots. Professional installation costs about $185 per vent. Or, buy a set yourself and install them for $45 apiece.
  • Wind turbines are mushroom-shaped caps atop roofs designed to catch natural wind currents, which spins an internal fan and propels hot air out of the attic. Wind turbines are most effective in areas where winds average about 5 mph.
For areas with little wind, a power-assisted vent is an option.

Soffit vents provide a breath of fresh air

Getting rid of hot air is just part of the equation. You also need intake vents, which are usually soffit (or under-eave) vents. Made of aluminum or vinyl, they contain tiny perforations or slits for airflow, and are available as either narrow strips that butt together, or as smaller, wider vents that fit between roof joists.

Soffit vents are most effective when used with a ridge vent. Most new houses have soffit vents, and they can be retrofitted on old ones. If you have only small gable or roof vents, putting in soffit vents will increase airflow.

Laura Fisher Kaiser is a contributing editor at Interior Design magazine, a former editor of This Old House, and writes the blog Secret Science Geek. She lives in Washington, DC.


Read more: http://www.houselogic.com/articles/passive-roof-vents-helping-your-house-breathe-easy/#ixzz1Cu6SIMWG

Wednesday, February 2, 2011

Ceiling Fans: Know the Spin Before You Install

By: Laura Fisher Kaiser
Published: January 28, 2011
Proper placement and installation of your ceiling fan is important for efficiency and safety.
  • Ceiling fans should be installed so they hang no less than 7 feet above the floor, and no closer than 18 inches from the walls. Image: Fanimation.com
Installing a ceiling fan is fairly simple, especially if there is an existing light fixture. Once you've figured out where to put the fan, make sure you've got the right electrical requirements.
The right height and position for a ceiling fan
For greatest efficiency, place your fan:
  • In the middle of your room.
  • 8 to 9 feet above the floor (and, for safety, no less than 7 feet above the floor).
  • So that the ends of the blades are no closer than 18 inches from walls.
The lowdown on downrods
A standard downrod (the shaft that connects the motor to the blades) for an 8-foot ceiling is 3 to 5 inches long. You'll need a 6-inch downrod for 9-foot-high ceilings; 60 inches for an 18-foot-high ceiling. Consult a showroom or manufacturer's website on the correct downrod length for your ceiling height.
The lowdown on low ceilings
For ceilings lower than 8 feet, use a flush-mount fan designed with special vents to cool the motor. These fans have a depth of only 6 to 9 inches. However, they generally don't include a light fixture because of their short depth.  
Electricity and support for your ceiling fan
For a virgin ceiling, an electrician will have to bring electricity to that spot, install an electrical box, and a wall switch. Depending on the extent of this work and whether the electrician has to punch holes in your walls and ceiling to thread the wire, you might have some patching and painting to do. Expect to pay a licensed electrician for 2 to 4 hours of work at $50 to $100 per hour.

For safety, your ceiling fan must be supported by a special bracket that's firmly anchored to the joists. These brackets typically are sold separately from your fan for $35 to $50.
Staying in control
Many models feature a traditional pull-chain to control the power and speed, or are operated by a wall switch with a variable speed control. Switches range from simple knob types ($12) to dual fan-light dimmer switches ($25 to $38). Other models include remote control "clickers" that operate the fan from any point in the room.

Most fans are reversible, allowing the blades to push air directly down beneath the fan, or upwards to create a circulation pattern that flows down along walls. Conventional wisdom says the fan should push air directly down in summer for maximum wind chill effect, and that the pattern should be reversed in winter.

However, research from Consumer Reports suggests that reversing fan rotation according to the seasons is unnecessary.

Quote of the day:

 A signature always reveals a man's character - and sometimes even his name.
by Evan Esar

Tuesday, February 1, 2011

Replace Old Windows with Energy-Efficient Models



Adding new energy-efficient windows can pay off at resale, as well as boost your energy savings—$126-$465 annually—if you choose the right ones.
If your windows are more than 15 years old, you may be putting up with draftiness, windows that stick in their frames, and skyrocketing energy bills. Energy-efficient windows would be a great improvement, but replacement can be very expensive. In a 2007 survey conducted by Consumer Reports, half of respondents spent $8,000 or more to replace all the windows in their homes, and 16% shelled out $15,000+.

Windows recoup much of their cost

The range for energy-efficient window pricing is wide, but Energy Star-qualified windows start around $120 for a 36” x 72” single-hung window and can go up 10 times that. With labor, you’re looking at about $270 to $800+ per window. Typically, windows at the low end of the price spectrum are less energy efficient.
But that doesn’t mean the numbers can’t make sense for you. For starters, window replacement is one of the best home remodeling projects in terms of investment return: For vinyl windows, you can recoup almost 72% of the project cost in added home value, according to Remodeling Magazine’s annual Cost vs. Value Report.
Based on the replacement projects outlined in Cost vs. Value that use vinyl windows, that’s a value add of about $8,000 to $10,400. Plus, if you choose windows that qualify for the federal tax credit (U-factor and solar heat gain coefficient ratings must be 0.3 or less), you can effectively lop $1,500 off the purchase price for windows put into service in 2009 or 2010.
You’re also likely to see modest savings on your energy bill. In general, you’ll save $126 to $465 a year if single-pane windows in a 2,000-square-foot house are replaced with tax-credit-eligible windows, according to the Efficient Windows Collaborative, a coalition of government agencies, research organizations, and manufacturers that promotes efficient window technology.
Keep in mind, though, that the savings can vary widely by climate, local energy costs, and the energy efficiency of both the windows purchased and the windows being replaced. Finally, you may qualify for low-interest loans or other incentives offered by your local utility that can sweeten the deal.

Sample costs, incentives

Here’s a hypothetical situation to help frame your purchase decision:
Location: Minneapolis, Minn.
Old windows: Double-pane, non-Energy Star windows
New windows: Energy Star-qualified, tax credit-qualified vinyl windows
Purchase price plus installation: $10,500
Subtract tax credit: -$1,500
Subtract local utility rebate for installing Energy Star replacement windows (12 windows, $25 each): -$300
Net price: $8,700
The Minneapolis home owner could recoup about 69% of the project cost at resale, according to estimates in Cost vs. Value. From a net price of $8,700, the owner has “lost” only $1,350.
And his annual energy savings will be $91. Had the original windows been single-paned non-Energy Star, his annual savings would be $385. Double-paned windows are more common.

Evaluate price vs. energy efficiency

The range for energy-efficient window pricing is wide, but you can expect to pay about $500-$1,000, including installation per window. The most efficient windows on the market are usually the most expensive, but it’s not necessary to buy the highest-end products to realize utility bill savings or improve comfort and aesthetics. So how do you choose the most energy-efficient models for the price?
Thanks to Energy Star, you really don’t have to, according to Nils Petermann, project manager for the Efficient Windows Collaborative. Energy Star labels will tell you whether a window performs well in your climate based on ratings from the National Fenestration Rating Council.
However, if you’re looking for windows that qualify for the $1,500 federal tax credit, make sure the U-factor and SHGC are both less than or equal to 0.3 regardless of climate zone. Not all Energy Star windows qualify.

Know the language of windows

It’s also helpful to familiarize yourself with terms that appear on many window labels:
Glazing is simply the glass used in the window. The number of layers of glazing (single, double, or triple) don’t necessarily equal greater efficiency; the presence or absence of the other items in this list affects a window’s total energy performance, says Petermann. Glazing coatings can substantially affect a window’s U-factor, or degree of insulation against the outdoors.
Low-E stands for low emissivity, the window’s ability to reflect rather than absorb heat when coated with a thin metallic substance. Low-E coatings add up to 10% to the price of a window.

If your windows are in relatively good shape but you’d like better insulation, you can buy and apply Low-E films to your windows. They’re effective, but not as much as those put between glazing layers during manufacture. Look for the NFRC rating on these films, Petermann says. Low-E films start at about 50 cents per square foot, but you may want to check into the cost of having them professionally installed for large or complicated applications.
Gas fills typically consist of argon or krypton gas sandwiched between glazing layers to improve insulation and slow heat transfer. They often won’t work at high altitudes because differences in air pressure cause them to leak out.
Spacers separate sheets of glass in a window to improve insulating quality; the design and material are important to prevent condensation and heat loss.
Frame materials include vinyl, wood, aluminum, fiberglass, and combinations of. They each have different strengths: Vinyl windows are good insulators and are easy to maintain, but contract and expand with temperature changes, affecting the window’s air leakage; wood offers a classic look but is similarly affected by moisture changes and needs regular maintenance; fiberglass is very stable and low-maintenance but can be expensive; and aluminum is lightweight, stable, and a good sound proofer but is a rapid conductor of heat, making it a drain on energy efficiency.
Karin Beuerlein has covered home improvement and green living topics extensively for HGTV.com, FineLiving.com, and FrontDoor.com. She has also written for dozens of national and regional publications in more than a decade of freelancing, including Better Homes & Gardens, The History Channel Magazine, Eating Well, and Chicago Tribune. She and her husband started married life by remodeling the house they were living in. They still have both the marriage and the house, no small feat.


Read more: http://www.houselogic.com/articles/replace-old-windows-with-energy-efficient-models/#ixzz1CiYOgIMc

Monday, January 31, 2011

Will It Flush? Check Your Toilet Before You Buy With New Web App

Need to know if a toilet can handle flushing adversaries like golf balls, kids’ clay, cat litter, chicken nuggets, hotdogs, and even bananas? There’s an app for that—American Standard®’s Toilet Challenge.
The Toilet Challenge App, available for download at iTunes, serves up a video demonstrating how American Standard® toilets fair against a variety of unusual materials.
The results of the flushing challenges are derived from actual product tests, so users who are shopping for a toilet upgrade can simulate tests and be confident that the toilet they select will flush without the assistance of a plunger.
After a toilet has proven itself in battle, users can also use the app to access product specifications, locate local retailers, and find toilet technology social media feeds.
Source: American Standard


Read more: http://www.houselogic.com/news/articles/will-it-flush-check-your-toilet-you-buy-new-web-app/#ixzz1CcaCFRJ6

Thursday, January 27, 2011

Don’t Hesitate to Take Home Office Tax Deductions

By Jennifer V. Hughes
As April 15 approaches, those who work from home have special considerations when it comes to tax time. Sandy Lefstein-Suchoff, a CPA based in Fair Lawn, has the following tips and suggestions:
  • If you have a separate and distinct space in your home that is used regularly and exclusively for work, you can deduct a percentage of your rent or mortgage interest, your utilities, home insurance, and real estate taxes. So, if you work from your kitchen table, that would likely not qualify, but if you have a partitioned basement area—that probably would.
  • If you use a portion of your home for storage of work-related materials, that also can qualify you for deductions.
  • Most people know they can deduct items they use for work—from paper and supplies to computers and office furniture. Deductions are taken in a different way, however, depending on the item. Deductions for machinery and equipment like a computer or printer that depreciates over time is taken in one way, while other items like paper and pens are taken in another. Check with your accountant to make sure you have the right forms. And, of course, keep all of your receipts and paperwork.
  • One common misconception about tax filings for people who work from home is that it is an “automatic red flag,” when it comes to possible audits. Suchoff said that’s untrue: “If you truly use your home as a business, it should not be a problem.”
  • Some home improvements might even qualify for tax deductions. If you frequently have clients or customers come to your home and you purchase, say, new siding to improve the appearance, that can be seen as a capital improvement.
  • Suchoff said she sees far more work-from-home clients than in previous years. She noted that even the Internal Revenue Service allows its employees to work from home three or four days a week.
— Jennifer V. Hughes


Read more: http://www.houselogic.com/news/articles/dont-hesitate-take-home-office-tax-deductions/#ixzz1CF6jB0vk

Wednesday, January 26, 2011

Housing Woes Bring a New Cry: Let the Market Fall

 by David Streitfeld

The unexpectedly deep plunge in home sales this summer is likely to force the Obama administration to choose between future homeowners and current ones, a predicament officials had been eager to avoid.
Over the last 18 months, the administration has rolled out just about every program it could think of to prop up the ailing housing market, using tax credits, mortgage modification programs, low interest rates, government-backed loans and other assistance intended to keep values up and delinquent borrowers out of foreclosure. The goal was to stabilize the market until a resurgent economy created new households that demanded places to live.
As the economy again sputters and potential buyers flee - July housing sales sank 26 percent from July 2009 - there is a growing sense of exhaustion with government intervention. Some economists and analysts are now urging a dose of shock therapy that would greatly shift the benefits to future homeowners: Let the housing market crash.
When prices are lower, these experts argue, buyers will pour in, creating the elusive stability the government has spent billions upon billions trying to achieve.
"Housing needs to go back to reasonable levels," said Anthony B. Sanders, a professor of real estate finance at George Mason University. "If we keep trying to stimulate the market, that's the definition of insanity."
The further the market descends, however, the more miserable one group - important both politically and economically - will be: the tens of millions of homeowners who have already seen their home values drop an average of 30 percent.
The poorer these owners feel, the less likely they will indulge in the sort of consumer spending the economy needs to recover. If they see an identical house down the street going for half what they owe, the temptation to default might be irresistible. That could make the market's current malaise seem minor.
Caught in the middle is an administration that gambled on a recovery that is not happening.
"The administration made a bet that a rising economy would solve the housing problem and now they are out of chips," said Howard Glaser, a former Clinton administration housing official with close ties to policy makers in the administration. "They are deeply worried and don't really know what to do."
That was clear last week, when the secretary of housing and urban development, Shaun Donovan, appeared to side with current homeowners, telling CNN the administration would "go everywhere we can" to make sure the slumping market recovers.
Mr. Donovan even opened the door to another housing tax credit like the one that expired last spring, which paid first-time buyers as much as $8,000 and buyers who were moving up $6,500. The cost to taxpayers was in the neighborhood of $30 billion, much of which went to people who would have bought anyway.
Administration press officers quickly backpedaled from Mr. Donovan's comment, saying a revived credit was either highly unlikely or flat-out impossible. Mr. Donovan declined to be interviewed for this article. In a statement, a White House spokeswoman responded to questions about possible new stimulus measures by pointing to those already in the works.
"In the weeks ahead, we will focus on successfully getting off the ground programs we have recently announced," the spokeswoman, Amy Brundage, said.
Among those initiatives are $3 billion to keep the unemployed from losing their homes and a refinancing program that will try to cut the mortgage balances of owners who owe more than their property is worth. A previous program with similar goals had limited success.
If last year's tax credit was supposed to be a bridge over a rough patch, it ended with a glimpse of the abyss. The average home now takes more than a year to sell. Add in the homes that are foreclosed but not yet for sale and the total is greater still.
Builders are in even worse shape. Sales of new homes are lower than in the depths of the recession of the early 1980s, when mortgage rates were double what they are now, unemployment was pervasive and the gloom was at least as thick.

To read the entire article email me at johntorrey@kw.com

Tuesday, January 25, 2011

Home Security Systems: Types and Costs

Understand home security systems’ price, installation, and option.
Few events are as unsettling as coming home to a house that’s been broken into. A home security system can provide not simply a sense of safety but also genuine protection from burglars who are looking to rob a defenseless house.

What you’ll pay

A home security system’s price comes in two forms. First, there’s the equipment cost, which can vary from $250 to $700, depending on the options you choose. Some companies may offer a basic package at a deep discount just to get your business.

They make their real money on the monthly monitoring fee, which ensures that someone is keeping an eye on your home 24/7. Expect to pay $35 to $75 a month for that peace of mind.

Talk to your insurance agent about a discount

You might be able to save money. Some insurance companies will shave off a percentage of your yearly premium if you have an electronic alarm system; a few go as high as 20%.

With an average national premium of $800, according to the National Association of Insurance Commissioners, that means a basic security system can pay for itself in as little as three years.

Prepare for light construction…

Installing a basic home security system takes a pro about three hours. If you’re building a new house or an addition, you can simply run the wires through open walls. Retrofitting an older home takes more time.

…Or go wireless

You can also go completely wireless. In this case, key components of your home security system are battery-powered and communicate with a monitor device inside your home. That monitor is in touch with a remote cellular network—the heart of your provider’s service.

Some critics point out that a wireless home security system can be disabled more easily than a wired one.

Get more than security

Sensors or detectors can be added to address just about any household danger, from fire to carbon monoxide poisoning. Elderly home owners can even get a wearable “panic button” in case they fall or need assistance.

Some home security systems are part of a larger home automation complex that will adjust your home’s temperature, turn lights on and off depending on whether a room is occupied or not, and even water your landscape plants when soil dries out. Expect to pay $5,000 or more for a full home automation system.

The key element: you

For all its bells and whistles, a home security system is useless if you don’t use it correctly and consistently. Resolve to learn how to arm and disarm your system, teach each family member, and use it daily. 

And don’t forget to use those stickers and signs to broadcast your new home security system. Some security experts say their presence is the biggest deterrent of all. 


Joseph D’Agnese is a journalist and book author who has written numerous articles on home improvement. He lives in North Carolina.


Read more: http://www.houselogic.com/articles/home-security-systems-types-and-costs/#ixzz1C4UrZYGK

Monday, January 24, 2011

Small Home Storage: Maximize Your Storage Space



Your small home has more storage space than you think. For relatively little money but a lot of common sense and ingenuity, there’s space to be found.
Finding storage space in a small home doesn’t require remodeling or room additions. Start by getting rid of accumulated stuff. Take a hard look at room space, and buy furniture and storage items that can do double-duty.
Here are six tips to maximize storage that won’t empty your savings account:

1. De-clutter. It’s the first thing architect Sarah Susanka of “Not So Big House” tells clients who talk of expanding their homes. Haven’t used something for a couple of years? Pitch it, she says. You’ll be amazed at how much space opens up when you do.

Cost: $0.

2. Platform/bunkbeds. Add space and eliminate a dresser in a small bedroom with a three-drawer or six-drawer platform bed. Find one at a furniture or big department store, and online.

Cost: $400 to $600, queen size.

Bunkbeds won’t have drawers, but save space by stacking beds. And kids love ‘em. They come in a variety of styles and configurations. Some will convert to two twin beds.

Cost: $300 to $550.

3. Shoe organizers. They’re for so much more than just shoes. Hang one in a kitchen closet or pantry, and use it as your small home catch-all for remotes, keys, notepads, cell phones, and chargers, and other household essentials. It’ll free up a kitchen drawer or two for other uses.

Cost: Less than $20.

4. Toe-kick storage. The space under your kitchen cabinets is a treasure trove of storage possibilities. Put placemats, napkins, cookie sheets, and how-to manuals there. Hire a cabinet-maker to install them, or request them as a custom feature in a new-cabinet order.

Cost: About $300 per drawer.

5. Floor-to-ceiling storage. Furniture-style 6-foot-tall bookcases don’t use all available wall space. But extend shelving that extra two feet to the ceiling, and you’ve got room for a lot more books, knickknacks, or art objects. Home improvement stores have brackets and shelves in a variety of colors and sizes to match your décor.

Cost: Under $200, depending on the space size.

Terry Sheridan is an award-winning writer who has covered real estate and home ownership issues for more than 20 years. She’s owned homes ranging from 1,500 square feet to 3,000 square feet


Read more: http://www.houselogic.com/articles/small-home-storage-maximize-your-storage-space/#ixzz1Bxxomo2h

Friday, January 21, 2011

Owners, Renters Agree: Owning a Home Is a Smart Decision

A substantial majority of both home owners and current renters agree that owning a home is a smart decision over the long term. That’s according to the results of a NATIONAL ASSOCIATION OF REALTORS® survey of 3,793 adults conducted online by Harris Interactive.
The American Attitudes About Homeownership survey found that in today’s challenging economy, 95 percent of owners and 72 percent of renters believe that over a period of several years, it makes more sense to own a home. In addition, an overwhelming majority of home owners are happy with their decision to own a home—93 percent of owners surveyed would buy again.
“Home owners and renters agree that home ownership benefits individuals and families, strengthens our communities, and is integral to our nation’s economy,” said NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I. “The results of this survey illustrate just how important issues related to home ownership are to people in this country.”

Home owners are happier than renters

The survey uncovered some differences between home owners and renters as well. While more than half of owners are “very” or “extremely” satisfied with the overall quality of their family life, only one-third of renters report the same levels of satisfaction. Similarly, 43 percent of home owners are very/extremely satisfied with their community life, compared with 30 percent of renters.
A majority of renters—63 percent—said that it was at least somewhat likely that they would purchase a home at some point in the future. Among this group, young adults (18-29 years old) have the strongest aspirations for home ownership; only 8 percent of young adults said that it was “not at all likely” that they would purchase a home at some point in the future.
In today’s market, many aspiring home owners are faced with worries about job security and creditworthiness. Among renters who are very or extremely likely to buy a home in the future, three out of five consider confidence in job security and creditworthiness to be an obstacle.

Even renters support mortgage interest deduction

One point of agreement between renters and home owners was support of the mortgage interest deduction (MID). Seventy-four percent of owners and 62 percent of renters say it’s “extremely” or “very” important that the MID remain in place.
“At a time when the middle class is under increasing economic pressures, both home owners and renters agree that the mortgage interest deduction should not be targeted for change,” said Phipps. “Given strong public support of and aspirations toward owning a home, we need to keep policies in place that support and encourage responsible, sustainable home ownership for our future.”


Read more: http://www.houselogic.com/news/articles/owners-renters-agree-owning-home-smart-decision/#ixzz1BgqaV8Qe

Thursday, January 20, 2011

Repair Wood Floors and Erase Ugly Scratches

Repair wood floors and scratches that make rooms look worn out. We’ll show you easy ways to put the luster back into your floor.
Scratches in wood floors can be camoflaged with a stain marker that matches the color of the wood. Image: Minwax Company
Dogs chase kids, pans drop, chairs scrape, and soon you must repair wood floors and erase scratches that make a mess of your red oak or Brazilian cherry. A professional floor refinisher will charge $1 to $4 per sq. ft. to apply a new coat of finish. No worries. We’ve got inexpensive ways to remove wood scratches and repair deep gouges in a few easy steps.

Camouflage scratches

Take some artistic license to hide minor scratches in wood floors by rubbing on stain-matching crayons and Sharpie pens. Wax sticks, such as Minwax Stain Markers, are great scratch busters because they include stain and urethane, which protects the floor’s finish.

Don’t be afraid to mix a couple of colors together to get a good match. And don’t sweat if the color is a little off. Real hardwoods mix several hues and tones. So long as you cover the contrasting “white” scratches, color imperfections will match perfectly.

Homemade polish

Mix equal parts olive oil and vinegar, which work together to remove dirt, moisturize, and shine wood. Pour a little directly onto the scratch. Let the polish soak in for 24 hours, then wipe off. Repeat until the scratch disappears.

Spot-sand deep scratches

It takes time to repair wood gouges: Sand, fill, sand again, stain, and seal. Here are some tips to make the job go faster.
  • Sand with fine-gauge steel wool or lightweight sandpaper.
  • Always sand with the grain.
  • Use wood filler, which takes stain better than wood putty.
  • Use a plastic putty knife to avoid more scratches.
  • Seal the area with polyurethane, or whatever product was used on the floor originally.

Fix gaps in floor

Old floorboards can separate over time. Fill the gaps with colored wood putty. Or, if you have some leftover planks, rip a narrow band and glue it into the gap.

Jane Hoback is a veteran business writer who has written for the Rocky Mountain News, Natural Foods Merchandiser magazine, and ColoradoBIZ Magazine.


Read more: http://www.houselogic.com/articles/repair-wood-floors-and-erase-ugly-scratches/#ixzz1BaTYAmoi

Wednesday, January 19, 2011

Air Conditioning Equipment: Repair or Replace?

If you’re deciding whether to repair or replace central air conditioning equipment, assess the quality of your house’s ductwork and insulation first.
So much has changed in the world of air conditioning in recent years that if your system has almost any significant breakdown—or if it’s just not keeping you as cool as it used to—it may be worth replacing it instead of repairing it. As of 2010, for example, manufacturers must use a new kind of refrigerant that’s not an ozone-depleting chlorofluorocarbon. And a new system can use less than half the electricity of your old one while doing a far better job of keeping you cool and comfortable.
If your air conditioner is more than eight years old, repair is probably not worth the expense, unless it’s a simple problem like debris clogging the condenser unit or a worn fan belt. Still, to best weigh your repair-or-replace decision, ask your contractor to assess not just the condition of your existing equipment, but also the ducts that deliver the cool air and the overall quality of the insulation in your house. Improving those elements might increase the effectiveness of the system as much or more than installing new machinery.

Assess the efficiency of your current system

Even if your central air conditioner is just eight to 10 years old, it could suck up to twice the electricity that even a low-end new one would use. That’s because it operates at or below 10 SEER, or Seasonal Energy Efficiency Ratio, which is the amount of energy needed to provide a specific cooling output. Until 2006, 10 SEER was standard, but these days, the minimum allowed by federal law is 13 SEER. That translates to 30% less electrical consumption and 30% lower cooling bills than equipment installed just a few years ago.

For an 1,800 square foot house, a new 13 SEER unit will cost $3,000 to $4,000. You can double your energy savings by jumping up to 16 SEER, which will reduce cooling expenses by 60% over a 10 SEER unit. At $5,000 to $6,000, these super-efficient units are more expensive, but they qualify for a 30% federal tax credit of up to $1,500 and possibly local incentives, too. So the added cost might be negligible.

“Your installer can run the numbers for you to see whether it’s worth the additional cost,” says Ellis Guiles of TAG Mechanical in Syracuse, New York. “If you’re south of the Mason Dixon line, certainly, you can make up those dollars pretty quickly.”

Inspect the condition of the ductwork

You could upgrade to the highest efficiency gear available and still not feel comfortably cool on hot days. That’s because the mechanicals are only part of the central air system. The average house’s ductwork leaks 10% to 30% of its air before it can reach your living space, according to Pacific Gas & Electric. Before deciding whether to repair or replace your condenser and blower units, your technician should run a duct-leakage test, by sealing the vents and measuring how much air escapes the system.

If the ducts are inefficient, he can locate and seal the gaps, typically for $25 to $35 per vent (per “run” in industry jargon), or replace the ductwork entirely with new, insulated pipe for around $100 per run, according to Guiles. Your technician may recommend doing the duct improvements in conjunction with replacement of the mechanicals or may recommend only one or the other job.

Consider the building envelope itself

If your house is poorly insulated, it’s putting a strain on your aging air conditioner. Resolving the house’s flaws may mean that your old system will have enough cooling power to continue to do the job for a few more years. Or it may enable you to buy a smaller replacement system, lowering your upfront and ongoing energy costs significantly.

Your heating and cooling contractor should assess and, if necessary, upgrade the building envelope. For example, he might seal gaps and cracks in the outer walls and attic floor, or he might blow insulation into the walls, either of which could knock as much as 30% off your heating and cooling costs. This work too may be eligible for federal and local tax credits—and in some cases, it may be a more effective solution to your cooling problems than replacing your equipment.

Make sure a new system is sized right

If you decide to replace, make sure the contractor’s bid includes a load calculation, which is a computer printout showing how big a system you need and why.

Air conditioning is measured by the ton, which is the cooling power of a one-ton block of ice melting in 24 hours. Some old-school installers use a ballpark estimate for sizing equipment—say, one ton for every 400 or 600 square feet of living space. But that typically leads to systems that are too big, according to Greg Gill of Action Air Conditioning and Heating in San Marcos, Calif. Not only do oversized systems cost more, but they also do their cooling work too quickly, which means more frequent on/off cycles, wearing out components and gobbling electricity. Plus, they don’t have a chance to effectively dehumidify the air.

Good contractors use load-calculating software that factors in such data as the number of windows in your house, the thickness of insulation, the configuration of the attic, and the building’s orientation to the sun. It produces not only an exact tonnage requirement, but determines how much cool air each room needs. All bids (get at least three, from licensed, well-regarded companies) should include this one-page printout.

A former carpenter and newspaper reporter, Oliver Marks has been writing about home improvements for 16 years. He’s currently restoring his second fixer-upper with a mix of big hired projects and small do-it-himself jobs.


Read more: http://www.houselogic.com/articles/air-conditioning-equipment-repair-or-replace/#ixzz1BVdktkBF

Monday, January 17, 2011

Cleaning House: Secrets of a truly deep clean

Deep clean your house and you’ll brighten rooms and maintain your home’s value.

Deep cleaning your house is that top-to-bottom, take-no-dust-bunny-prisoners, mother-in-law-quality cleaning that truly maintains the value of your home. Here are frequently overlooked areas that a little spit and polish wouldn’t hurt.

De-bug the light fixtures

See that bug burial ground within your overhead fixtures? Turn off the lights and carefully remove fixture covers, dump out flies and wash with hot soapy water. While you’re up there, dust bulbs. Dry everything thoroughly before replacing the cover.

Vacuum heat vents and registers

Dirt and dust build up in heat vents and along register blades. Vents also are great receptacles for coins and missing buttons. Unscrew vent covers from walls or pluck them from floors, remove foreign objects, and vacuum inside the vent. Clean grates with a damp cloth and screw back tightly.

Polish hardware

To deep clean brass door hinges, handles, and cabinet knobs, thoroughly wipe with a damp microfiber cloth, then polish with Wright’s or Weiman brass cleaner ($4). Dish soap shines up glass or stainless steel knobs. Use a Q-tip to detail the ornamental filigree on knobs and handles.

Replace grungy switch plates

Any amateur can wipe a few fingerprints off cover plates that hide light switches, electric outlets, phone jacks, and cable outlets. But only deep cleaners happily remove plates to vacuum and swipe the gunk behind. (OK, we’re a little OCD when it comes to dirt!) Make sure cover plates are straight when you replace them. And pitch plates that are beyond the help of even deep cleaning. New ones cost less than $2 each.

Neaten weather stripping

Peeling, drooping weather stripping on doors and windows makes rooms look old. If the strip still has some life, nail or glue it back. If it’s hopeless, cut out and replace sections, or just pull the whole thing off and start new. A 10-ft. roll of foam weather stripping costs $8; 16-ft. vinyl costs about $15.

Replace stove drip pans

Some drip pans are beyond the scrub brush. Replacing them costs about $3 each and instantly freshens your stove.


Friday, January 14, 2011

HouseLogic Spotlight: Bargain Babe’s 8 Money-Saving Tips to Go Green

Save money and Mother Earth with tips from a babe: Bargain Babe.
  
 Recycling, growing your own vegetables, and going solar are all good ways to save money and go green. Images: Getty/iStockphoto/SolarCity
Going green means spending beaucoup bucks on scratchy toilet paper, heirloom tomatoes, and vinegar-based anything. Right?
Half-right, says Bargain Babe blogger Julia Scott in her post “Being Green IS Frugal.”

We agree.

Buying organic food, makeup, and alternative energy sources can make big dips in your budget. These are good ways to be green while saving money.

Bargain Babe should know. She’s a famous savvy saver—you can also see her on AOL’s WalletPop—who embodies the idea: Save a dollar here, grab a coupon there, and pretty soon it adds up to lunch.

In her go green/save money blog post, she and her readers wax excited about a bunch of fabulous tips:
  • Trade clothes at swap sales to save up to 80% off retail prices.
  • Donate items to charities where they earn a second life, and earn a tax deduction.
  • Recycle cans, bottles, and newspapers. Did you know you can make a lot of money from recycling electronics?
  • Eat vegetarian meals more often. Protein from eggs and vegetables is so much cheaper than meat, and leaves a smaller carbon footprint.
  • Switch to solar power on a budget. Many companies lease solar panels for zero down.
  • Turn pantry items into beauty products: Grapeseed oil moisturizes skin and a spritz of green tea closes pores.
And in the summer months:
  • Line-dry clothes in the sun.
  • Grow vegetables and fruit at home or in a community garden. But watch out, it’s easy to spend more on a garden than what you would pay in the grocery store.
We’ll visit Bargain Babe on a regular basis for more strategies, coupons, and inspiration to save on everyday purchases.


Read more: http://www.houselogic.com/articles/houselogic-spotlight-bargain-babes-8-money-saving-tips-go-green/#ixzz1B1xQSb8h

Thursday, January 13, 2011

How to Inspect Windows, Doors to Stop Air and Water Leaks

Inspect windows and doors regularly to stop air leaks and water seeps that create high energy and repair bills. We’ll show you how.
Take a look at windows, doors and skylights to stop air leaks, foil water drips, and detect the gaps and rot that let the outside in and the inside out. You can perform a quick check with a home air pressure test, or do a detailed inspection. Luckily, these inspections are easy to do. Here’s how to examine the barriers that should stand between you and the elements.

Big picture inspection

A home air pressure test sucks air into the house to reveal air leaks that increase your energy bills. To inspect windows and other openings:
  • Seal the house by locking all doors, windows, skylights, and shutting all vents.
  • Close all dampers and vents.
  • Turn on all kitchen and bath exhaust fans.
  • Pass a burning incense stick along all openings—windows, doors, fireplaces, outlets—to pinpoint air rushing in from the outside.

Windows and the outside world

Air and water can seep into closed widows from gaps and rot in frames, deteriorating caulking, cracked glass, and closures that don’t fully close.

To stop air leaks, pinpoint window problems.
  • Give a little shake. If they rattle, frames are not secure, so heat and air conditioning can leak out and rain can seep in. Some caulk and a few nails into surrounding framing will fix this.
  • Look deep. If you can see the outside from around—not through—the window, you’ve got gaps. Stop air leaks by caulking and weather stripping around frames.
  • Inspect window panes for cracks.
  • Check locks. Make sure double-hung windows slide smoothly up and down. If not, run a knife around the frame and sash to loosen any dried paint. Tighten cranks on casement windows and check that top locks fully grab latches.

Door doubts

  • Check doors for cracks that weaken their ability to stop air leaks and water seeps.
  • Inspect weather stripping for peels and gaps.
  • Make sure hinges are tight and doors fit securely in their thresholds.

Inspect skylights

Brown stains on walls under a skylight are telltale signs that water is invading and air is escaping. Cut a small hole in the stained drywall to check for wetness, which would indicate rot, or gaps in the skylight.

To investigate skylight leaks, carefully climb on the roof and look for the following:
  • Open seams between flashing or shingles.
  • Shingle debris that allows water to collect on roofs.
  • Failed and/or cracked cement patches put down the last time the skylight leaked.
Lisa Kaplan Gordon is a managing editor at HouseLogic


Read more: http://www.houselogic.com/articles/how-inspect-windows-doors-stop-air-and-water-leaks/#ixzz1AvYjLScG

Wednesday, January 12, 2011

Homeowners Insurance: Are You Over- or Underinsured?

Paying for more homeowners insurance than you need is a waste of money, but it can prove even more costly to get caught without enough coverage.
Trying to get just the right amount of homeowners insurance for your house and possessions may leave you feeling a bit like Goldilocks searching for a chair, a bed, and porridge that are just right. If you underinsure your home and suffer a devastating loss—flood, fire, theft—then you risk not being able to return to the lifestyle you’ve worked hard to achieve. Yet if you overinsure, you’re throwing money away every year on unnecessarily high premiums.
What you need is coverage that’s just right. Here’s how to get it, and it shouldn’t take more than 4 or 5 hours of your time spent reviewing your homeowners insurance policy, talking to your agent, and doing a little research.

Look before you leap into a policy

All homeowners insurance isn’t created equal. That’s why it pays to review your coverage every year to ensure your policy meets your evolving needs. Begin by understanding the types of coverage available.
Actual cash value coverage reimburses you for the value of your home based on its current condition, explains Marjorie Young, senior vice president at E.G. Bowman Co., a New York City insurance brokerage. If your home was built 10 years ago, you’d receive only the depreciated value of decade-old windows, cabinets, appliances, and so on.
Most insurers recommend the more comprehensive replacement cost coverage. With it, says Young, you’ll be reimbursed for the amount it will cost to rebuild your home like new with the same kind and quality of materials. Depreciation doesn’t factor into the settlement equation.
To get the full benefit of replacement coverage, you need to purchase enough insurance to cover the total cost to rebuild your home, excluding the value of the land. Many people make the mistake of insuring at the market value, says June Walbert of USAA Financial Planning Services in San Antonio. But the amount you could sell your home for today isn’t necessarily the same as how much it would cost to rebuild.

Construction costs play big role

Look to current construction costs in your local area for guidance. If you’ve purchased a newly constructed home in the past year, you already have the answer. The same is true if you’ve refinanced within the past year. You almost certainly paid for an appraisal during that process that likely includes three valuations: replacement cost, market value, and actual cash value.
If you’re determining replacement cost without those head-starts, Walbert recommends calling several local homebuilders and asking the average square-foot construction cost in your area. If the going rate is $175, and your home is 2,000 square feet, you’d purchase $350,000 in coverage. For just a few bucks you can also order a valuation report online at a website like AccuCoverage ($7.95) or Home Smart Reports ($6.95).
Remember that any time you spend at least 5% of your home’s value on a remodeling project—or $5,000, whichever is less—you should contact your insurer to increase your coverage. Young recently did that after she revamped her own kitchen. An additional $40,000 in homeowners coverage raised her annual premium by about $40.

Don’t neglect valuables, liability

Be sure you’re also insured at the right value for your home’s contents and for personal liability. Most insurance polices provide only actual cash value on contents, says Lisa Lobo, vice president of underwriting operations at The Hartford in Southington, Conn. To get replacement cost coverage, you’ll need to purchase an endorsement. If you have valuables not covered by your policy—silverware, jewelry, furs—purchase endorsements for those, too.
Many people pay no attention to the liability coverage limits in their policies, but Walbert says that’s a mistake. If you have a dinner party and a guest falls down your front steps, you don’t want to be underinsured. In recent years the average liability claim for bodily injury and property damage has been $15,854. Walbert recently increased a homeowner’s liability coverage by several hundred thousand dollars for just $6 more per year.
If you’re concerned about increasing your premiums by adding endorsement after endorsement, ask whether you can save money by splitting your deductible, paying a higher amount for certain claims and a lower amount for others. Bundled endorsements can save you a few bucks, but only if you require them all. Take a pass on unneeded riders. Why spend $8 to $12 a year for $500 worth of refrigerated property coverage when you eat takeout every night?
G.M. Filisko is an attorney and award-winning writer who has been involved in insurance litigation. A frequent contributor to many national publications including Bankrate.com, REALTOR(R) Magazine, and the American Bar Association Journal, she specializes in real estate, personal finance, and legal topics.


Read more: http://www.houselogic.com/articles/homeowners-insurance-are-you-over-or-underinsured/#ixzz1ApjiOwbu

Tuesday, January 11, 2011

5 Steps to Owning a Home Again After Foreclosure

Foreclosure is just a one-time event—with discipline and perseverance, you can get a mortgage and become a homeowner again.
 
It won’t be easy to obtain a mortgage after foreclosure. But with enough time, discipline, and desire, you can own your own home again. Here’s what you need to do:

1. Stick with a job after foreclosure

Did you fall into foreclosure because of the lack of a steady job? If you did, the first step toward homeownership after foreclosure is finding and holding one. And if you already have one—stick with it, unless you can move to a better one. Note that potential lenders will require stable employment before they’ll give you a new mortgage loan after a foreclosure. Even if it means taking a lower-paying job, it’s worth it.

2. Rebuild your nest egg after foreclosure

Establish a safety net. Financial planners generally recommend three to six months of living expenses in a liquid account, but since you’re coming out of foreclosure, six is a minimum to show stability and that you’re able to pay your bills—including your mortgage—for an extended period if you lose your job.

3. Raise your credit score after foreclosure

This is the hardest and most time-consuming part. After foreclosure, your credit score, according to myFICO, probably dropped by about 150 points. You’ll need to raise it back up with perseverance.

Pay bills on time and keep your credit card balances below maximum levels. The foreclosure will stay on your credit report for seven years, but if you prove your money management skills have matured, it will become less of a red mark as years go by.

Tip: Consult a housing counselor. The U.S. Department of Housing and Urban Development offers free housing counseling for distressed homeowners with a foreclosure in their past. A counselor can help you with money management and budgeting. Counseling works—an evaluation of a program in Indianapolis discovered that credit scores greatly improved because of education and counseling, and increased average borrowing power by $4,500 per family.

4. Reduce your waiting time for a mortgage after foreclosure

Normally, you would have to wait seven years after foreclosure before you can apply for a new mortgage under Fannie Mae rules. (Fannie Mae changes rules frequently. You can check the latest rules at Fannie Mae’s site.)

However, you might wait only three years if you can show extenuating circumstances for your foreclosure, which are defined as “events that are beyond the borrower’s control that result in a sudden, significant, and prolonged reduction in income or a catastrophic increase in financial obligations.” These include:
  • Losing a job
  • Getting divorced
  • Having unexpected medical expenses
There’s one last alternative if waiting isn’t your thing—you can obtain seller financing, essentially bypassing the traditional mortgage. If both parties are amenable, you can enter into a lease with an option to buy, or take a mortgage directly from the seller. You’ll most likely have to show some hefty reserve funds, but if you’ve turned around your financial situation quickly after your foreclosure, it’s worth a shot to deal directly with the seller.

Keep in mind that sellers may be motivated to agree to this if they need to sell and the potential buyers they’ve met with can’t obtain a conventional mortgage—perhaps because they’ve been through foreclosures, too.

5. Be honest about your foreclosure

When you’re ready to apply for your new mortgage, don’t try to hide your foreclosure. On the contrary, be proactive and reveal the steps you’ve taken to remedy the problems that led to your foreclosure.

Tip: Try a mortgage broker, who can work with a variety of lenders to find you a loan. When you work directly with a retail lender, like a bank, they have a limited pool of loans to offer you. But a good mortgage broker—one with a vast network of lendersóhas many options, and may be able to find a mortgage solution if the foreclosure in your past is creating challenges in obtaining one.

If you stay disciplined and positive, the American dream—obtaining a mortgage and owning a home of your own—can, indeed, be yours again. Even after foreclosure.

Barbara Eisner Bayer has written about mortgages and personal finance for the past 16 years for the Motley Fool, the Daily Plan-It, and Nursevillage.com, and has been the Managing Editor for CompleteGrowth.com, Mortgageloan.com, and Credit-land.com. She’s grateful that she now knows where to turn if she ever struggles to meet her mortgage payment.


Read more: http://www.houselogic.com/articles/5-steps-owning-home-again-after-foreclosure/#ixzz1AkSUSs4F

Monday, January 10, 2011

Short-sale incentives revamped again

Servicers get more flexibility to pay off second-lien holders


Loan servicers participating in the Obama administration's short-sale incentive program are being given more freedom to pay off second-lien holders, but will be held to stricter timelines for approving or rejecting short sales and forbidden from deducting vendor expenses from commissions paid to real estate brokers.
A new directive from the Treasury Department, which administers the Home Affordable Foreclosure Alternatives Program (HAFA), lifts a cap that had restricted loan servicers to paying second-lien holders no more than 6 percent of outstanding loan balance in exchange for releasing subordinate liens.
It's the second significant revision of the HAFA program since it launched at the end of 2009. Initially, the cap on payoffs to second-lien holders was 3 percent, with an aggregate total of no more than $3,000. The cap was increased to 6 percent with an overall limit of $6,000 in March 2010.
The $6,000 overall limit remains in place, but eliminating the 6 percent cap gives loan servicers more freedom in dealing with second-lien holders when borrowers owe less than $100,000. Second-lien holders -- typically lenders or investors who funded "piggyback" loans -- have been a major obstacle to short sales.
The HAFA program is aimed at distressed borrowers who don't qualify for a loan modification under the Home Affordable Modification Program (HAMP). Before foreclosing on homeowners, loan servicers are instructed to solicit them to determine if they are interested in pursuing a short sale or, if that fails, a deed-in-lieu of foreclosure.
If borrowers are interested in pursuing that option, the new directive gives loan servicers 30 days to send the borrower a short-sale agreement, which spells out list price or acceptable sale proceeds.
The directive also stipulates that when loan servicers hire contractors to help the listing broker, any associated vendor fees cannot be charged to the homeowner or deducted from the real estate commission.
The Dec. 28 directive takes effect Feb. 1 but loan servicers are free to implement it sooner. It does not apply to mortgages owned or guaranteed by Fannie Mae or Freddie Mac, or insured or guaranteed by a federal agency such as the Federal Housing Administration (FHA), Veterans Administration (VA) or the Department of Agriculture's Rural Housing Service (USDA).
Although those mortgage guarantors are now involved in about 90 percent of home loans, during the housing boom, subprime lenders made many loans without their participation.
HAMP and HAFA have both been widely criticized for not helping as many borrowers as envisioned.
Last month, California Association of Realtors President Beth Peerce wrote the Treasury Department and the heads of Fannie Mae and Freddie Mac complaining that lenders were taking too long to review and approve short sales, often leading buyers to walk away from deals.
Many real estate agents refuse to handle short sales because of the difficulties involved, Peerce said.
"Eight months after the implementation of HAFA, our members ... are extremely frustrated," Peerce said. "HAFA short-sale approvals are not only few and far between, but also generally unworkable."
Peerce said limits on payments to second-lien holders have led many to seek additional payments outside of the transaction -- "secretly, outside of escrow, which may constitute loan fraud against the senior-lien holder."
There are also concerns that short sales are vulnerable to "property flopping" schemes -- a potential problem that makes the use of broker price opinions rather than appraisals in HAFA transactions controversial.
The National Association of Realtors has defended the use of BPOs in HAFA transactions, saying there is no evidence that reliance on them heightens the risk of mortgage fraud or abuse.

Friday, January 7, 2011

Do You Need an Electrical Service Upgrade?

 
Not having enough power isn’t just an inconvenience—voltage drop-offs may actually damage sensitive electronics. Even with enough power, you may need additional outlets to avoid relying on a tangle of power strips and extension cords—a potential safety hazard.

The cost of upgrading electrical service

The standard for household power used to be 60 amps. But modern homes may need as many as 200 amps to run air conditioners, computer equipment, high-definition televisions, and high-tech home automation devices.

The cost of upgrading your existing electrical service panel to a 100- or 200-amp panel is $800 to $3,000.

New wiring: open your walls (and your wallet)

To handle increased electrical loads, it’s likely you’ll also need to upgrade electrical wiring, especially if your house is more than 40 years old.

Upgrading your electrical wiring is a big job because the wires are located inside of walls, where they are difficult to get at without opening up walls. The price for a whole-house rewiring job—including opening up walls, running new wires, connecting switches, outlets and fixtures, and then repairing the mess—is $3,500 to $8,000 for an average-sized home.

For a larger home, or a house with restricted access to a crawlspace and exterior walls, the cost may reach $20,000 and more for labor and materials.

Rewire when the time is right and save

Rewiring can be a messy and expensive proposition, but with a little upfront planning you can minimize the disruptions and even turn the job into an opportunity to add features that will increase the value of your home.

The best time to rewire is during a remodeling project, such as renovating your kitchen or adding a family room, when subcontractors are opening up your walls anyway. That way, your electrician has easy access to the walls, and refinishing walls will be part of the larger remodeling project—not just the rewiring.

Plan ahead for your future power needs

Structured wiring is a smart investment and may be a marketing advantage if you should decide to sell your home. Structured wiring is a generic term for any heavy-duty electrical and data cables designed to handle the latest entertainment and communication devices—and those yet to be invented—including phones, Internet, and household heating and lighting systems.

One way to estimate the cost of structured wiring is to determine the square footage of your house. Multiply that figure by $2.

While a standard electrical upgrade essentially maintains the value of your home, adding structured wiring can increase it. According to a 2009 study by the Consumer Electronics Association and the National Association of Home Builders Research Center, almost 50% of homes built in 2008 included structured wiring, a sure sign of its growing value to home owners.

Serial remodeler Pat Curry is a former senior editor at Builder, the official magazine of the National Association of Home Builders, and a frequent contributor to real estate and home-building publications


Read more: http://www.houselogic.com/articles/do-you-need-electrical-service-upgrade/#ixzz1AMTuBrUF

Thursday, January 6, 2011

Why Real Estate Assessments Matter

The real estate assessment letter you filed away unopened is the driving force behind how much you pay in property taxes.

If you're suspicious that your property taxes are too high, you can check for errors by calculating the value of your property tax. Image: CertainTeed
You might not think too hard about your real estate assessment, the dollar value the local government puts on your house and land. You should. The assessment determines how much you shell out on property taxes.
If you have a mortgage, your home lender is probably paying your property taxes out of an escrow account. Odds are you don’t even know how much gets collected. Devote an hour of your time to becoming better informed. Once you understand your real estate assessment, you’ll understand your property tax bill—and, more importantly, whether you’re paying the right amount.

Homeowners and property taxes

Your local government needs every dime it can collect to pay for all of the services you expect as a resident: schools, libraries, hospitals, and so on. A healthy chunk of that revenue is raised from homeowners via property taxes. In normal times real estate values climb steadily, allowing local governments to take in a little more every year to keep up with inflation and perhaps even add a few services. Property tax bills usually come due once or twice a year.
The situation gets stickier when real estate values are in decline. If that occurs, local governments generate less revenue from property taxes, meaning the tax rate needs to go up, the money needs to come from somewhere else, or spending on services needs to go down. According to a 2009 survey conducted by the National Association of Counties, 62% of counties polled say declining property taxes are a major source of revenue shortfalls. Forty-two percent of counties have cut services, and 11% have raised property taxes.

Assess your real estate assessment

No matter if property values are rising, falling, or stagnant, you need to understand how you’re being taxed. Everything starts with your real estate assessment letter, which reveals what your property is judged by the local government to be worth. The letter will differ, depending where you live, but most will have a legal description of your house and separate values for the land and the structure. Add those two numbers together to get your home’s assessed value.
Some local governments will appraise your home every year, others every two or more years. Tax assessors generally use one of two methods to come up with an assessment value for your home. The most common relies on looking at recent sales of comparable homes. Keep in mind that “recent” is a relative term. To come up with a real estate assessment, assessors may be looking at sales that occurred as long as 18 months prior. Alternatively, especially in the absence of recent sales data, assessors will calculate the cost to rebuild your home, and add that to the estimated worth of your land to come up with a dollar amount.

Break out the calculator

How much you pay in property taxes is based on your real estate assessment. Put simply, your home’s assessed value is multiplied by the local tax rate to come up with a figure. However, it can become more complicated if there are multiple taxing authorities where you live—a city and a county, for example—or if there are special one-time assessments. Qualifying for property tax exemptions, perhaps due to age or disability, will also alter the formula. Some local governments offer online calculators on their websites, or call the tax assessor’s office for help.
If you want to run the numbers for yourself, don’t be intimidated by how your tax rate is expressed. Sometimes it’ll take the form of a percentage, say 1.5%, or perhaps a decimal, 0.015. Both equal the same thing. So the owner of a home that’s assessed at $100,000 would owe $1,500 a year in property taxes. Other times it’ll be expressed as an amount per $100 or $1,000 of home value. In the case of a 1.5% tax rate that would mean $1.50 per $100 or $15 per $1,000. Regardless, the math doesn’t change: Multiply $100,000 by 0.015.

Knowledge is power—and savings

Assessors have a lot of ground to cover. Many rely on valuation formulas that assess whole streets or neighborhoods. Most haven’t seen your house in person, so don’t wait for a knock on your door from an assessor hoping to take a look around. That’s why you need to read your real estate assessment letter carefully, look for errors, and challenge your assessment if it seems too high.
If you find a way to reduce your real estate assessment, whether by contesting it or qualifying for an exemption, the savings can add up. The median annual property tax paid in the U.S. in 2008 was $1,897, or 0.96% of the median home value of $197,600. Trimming just 15% off the median value would result in savings of about $285. Of course, if your home value and local tax rate are higher, then you’re looking at even greater savings.
This article provides general information about tax laws and consequences, but is not intended to be relied upon by readers as tax or legal advice applicable to particular transactions or circumstances. Readers should consult a tax professional for such advice, and are reminded that tax laws may vary by jurisdiction.
Geoff Williams has written about personal finance for numerous publications including Bankrate.com, WalletPop, and Consumer Reports. He’s a columnist at FrontDoor.com, a real estate website


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