Home Visions: The Absolutely Thrilling Life & Times of a Realtor

2011-07-21T06:41:00.000-07:00

Turn Off the Negative News and Read Why Americans Should Still Buy Homes!

“The universe is merely a fleeting idea in God’s mind - a pretty uncomfortable thought, particularly if you’ve just made a down payment on a house.”
– Woody Allen

There are times I sit and watch the news before bed at night and I wonder how the world manages to hold together; tornadoes are spinning our lands this way and that, tsunamis are tearing apart the fabric of Asia, mudslides are carrying villages away, volcanoes angrily puffing with rage, Phillies hitters looking like deer a split second away from a Mac truck’s headlights, markets jumping up one minute and plunging the next, the real estate markets are getting worse, no worse, and still even worse. As I grow weep and weary I turn the television off and wander to bed. Tomorrow, I will rise to show another home to an anxious buyer, but with the housing markets still sputtering, at least according to the media, what is the point? I might as well build a huge wall around my house, grow my own organic vegetable garden, drill a well and hire five Navy seals to protect me from all the terrorists running around the suburbs. With these pleasant thoughts I lie down to dream of the Iowa baseball field I have built so I can play with dead professional baseball players. Sadly, it is about to be shut down (and converted into a pharmacy or bank) due to defaulting on my mortgage and so the dead baseball players will need to find another field to play with James Earl Jones.

I awaken the next morning, smile at the rising sun, smell the coffee and I realize that there are great reasons for Americans to purchase a home and if you read further you will find out why.

Mortgage Rates;

“People are living longer then ever before, a phenomenon undoubtedly made necessary by the 30 year mortgage.”
- Doug Larson

As of today the Annual-Fixed Rate Mortgage, the most popular financing choice among buyers, sits at 4.68 percent. This is an incredibly low rate and since Freddie Mac began tracking such rates in 1971 this is one of the lowest numbers on record. If you can afford the down payment and closing costs (which can vary depending if you decide to go with a conventional or FHA loan), then this is the time to buy. To give you a sampling of history, during the early 1980s mortgage rates reached an astonishing 18 percent and in 1990 it was still floating around 10 percent. If history is any indicator, we may not see these rates again for another forty years, so it is a great time to find the home of your dreams.

Buying v Renting;

This is an old debate that has lasted longer than the argument between Yankees and Red Sox fans over who has the better team. Some people do not want the responsibility of taking care of the yard, the roof or the enormous house-eating termite named Eaty McWooderson that crashes late night in your basement. It can be intimidating, but at the end of the day the home is yours and as you pay the mortgage you gain equity in your home. Here is what you gain when renting: nothing! Your money goes to the landlord who then loses it at the casinos knowing that next month you will feed his habit again. There are times when renting makes sense, for instance, if you cannot afford the closing costs or if you feel sorry for the landlords gambling problems. Otherwise, call your mortgage professional and get an idea of what you can afford. Then call your real estate professional and start looking for your home. Thirty years from now, when you outright own your home, you will be wondering why you wasted thousands and thousands of dollars on rent for all of those years. For those of you living in New York City and San Francisco, either disregard this paragraph or move.

Investing;

Do you wake up one day and think that today is a great day to buy your dream home, only to wake up the next day thinking that investing your money in the stock market is the better choice? Well, think no more. In a new survey of 2,000 bipartisan voters conducted by the National Association of Home Builders, seventy-five percent of Americans say that “owning a home is the best long-term investment they can make and is worth the risk of the ups and downs of the housing market.” Considering the recent crash and all of the negative news about the foreclosure and short sales fiascos, this is pretty incredible. Still further, eighty percent of the people said they would recommend buying a home to a friend or family member just starting out and seventy-three percent of those surveyed who do not own a home said their goal is eventually to buy one. Americans have spoken and buying a home is still a great investment and a goal they hope to attain. If the markets completely crash and nothing is left, at least people will have a roof over their head, one of the three basic needs; home, food, clothing. And no, guns are not a fourth.

House Hunters;

The show House Hunters on HGTV may be the most popular show on television, only second to shows that have someone signing like Cindi Lauper or trying to dance like a mix of Michael Jackson and Chris Christie. If you are thinking of buying a home and want to make a few dollars while doing so, you can attempt to get on the show. When chosen for the show you can let the national audience know that you prefer a granite countertop, what your man cave should look like and how stainless steel appliances are more necessary than health insurance. And to top it off, this just may be the best chance in your life to get on a television show! Remember in the past when you actually had to have some talent to be on television? Check out the link below if you want to apply. If you do not make the cut or are not interested at least you can still watch the shows for tips on how to spruce up your home.
http://www.hgtv.com/about-us/are-you-getting-ready-to-buy-a-home/index.html

Pride;

I am not sure if Andrew Wyeth ever painted it, but one of the great scenes in America is the three overweight men in your office standing in the kitchen and talking about mowing the lawn, painting the chipped siding, or complaining about the pink fence their new neighbor just put up. It is something we all have in common, something most people innately desire; to be a proud homeowner! To build memories in your home like throwing the ball to little Johnny, inviting your in-laws over and waiting desperately for them to leave, or over-cooking the turkey on your first time hosting Thanksgiving. Many people talk fondly of their homes, of the homes they grew up in, of the homes they raised their children in, of the good and the bad. In the end, the memories we create in a home are long lasting and as human beings, we love our homes! So give me a call and together we can start looking for your dream home.

8 Useful Tips for Hiring a Contractor

2011-05-26T07:15:00.000-07:00

Waking up to whistling birds and a cool morning breeze drifting in from an open window in your bedroom, you take a warm shower, dress for work and walk into your “retro” kitchen. Pouring yourself a hot cup of coffee you peer at the yellow cabinets, the stove that could not heat a day old muffin and you realize the “funky” kitchen is celebrating its fiftieth anniversary. It is no longer the hip kitchen your friends chat about over wine: it has officially become your grandmother’s kitchen. Then the stark reality hits that it was not birds awakening you, but a trash truck beeping as it backed up. And the cool breeze was from a broken window and that the shower was not really warm, but rather cold. You place your stained coffee mug on a cracked counter top and wonder why you have waited so long to renovate the kitchen or the bedroom and you shutter when the reason hits you: CONTRACTORS! The name invokes fear in some, adoration in few and fear and loathing in many. Yet the fact remains that most of us need them to remodel that old kitchen or replace the cracked windows in the bedroom. So here are a few tips from your real estate professional who deals with his fair share of contractors.

1. Get a Recommendation – When hiring a contractor find a solid recommendation from someone you trust and who has worked with the contractor in the past. Do not ask your sister’s husband’s cousin’s best friend’s college roommate’s crazy aunt’s ex-dog walker who happened to be a really nice person. Another strong reason to get a recommendation is that if you run into a problem with the contractor, he will never want to lose two customers on one job.

2. Get it in Writing - I have an uncle who told me once to get everything in writing. Of course, there are times that I have not always followed his advice and eventually kick myself for it. Get an estimate on all of the work, a firm work timetable, a completion date and his pay schedule. Keep the contractor to his written word and do not allow excuses. Perhaps it would be wise to have a lawyer look it over and have him draft a homeowner’s contract to protect you from contractors. If the contractor is not willing to sign it then find someone else to do the job. There are plenty of good people out there wanting to work these days.

3. Withhold Money– In addition to having everything in writing and a work timetable, always withhold at least 20 percent of the money until the job is entirely complete and passed all necessary inspections. Everyone from contractors, Realtors and designers will tell you that this is not the norm and you enlighten them that this is YOUR norm. Contractors have a way of disappearing to their next job before their current job is finished so leave them with an incentive to finish the job.

4. The Dreaded Change Order – In your original homeowner’s contract you should add a stipulation that you shall only pay bills, including change orders, that have been previously discussed. Contractors continually tack on change orders to bills after completing the work, much to the homeowner’s dismay. This leads to an awkward situation with the contractor as the work has been legitimately completed, but you never signed off on any of it in the first place. The bottom line is make it clear in your contract that you do not pay any bills that have not been discussed and agreed upon before the work has commenced. Adding this to your contract will spare you a lot of arguments, lawsuits and contractors walking from jobs.

5. License, Permits and Insurance - This is a simple one. If your contractor is not licensed, does not receive proper township permits and is not insured, then do not hire him. If you choose to hire him, you will deserve whatever ruin you may find yourself in. Remember that a lot of the work you are getting done, including plumbing, electric, and HVAC (Heating, Ventilating and Air Conditioning) is behind closed walls and in crawl spaces so it is very important that all of this work is being done in a proper fashion. Some of the issues can be potentially hazardous, so be smart and protect your family.

6. Who’s The Boss - Make sure there is someone in charge and that can be held accountable for their workers. Often the “boss” is not the one doing the work, but even so, make sure there is a person you can call or email when you have questions or concerns. Also make a note of how quickly they respond while you are getting estimates and negotiating the job. If he is slow to respond, then this will be how the job goes, as he will already have the contract and be able to string you along.

7. Multi-bid - Unless you are one of the lucky ones who has an incredible contractor, get multi-bids. It never hurts to have competition and everything in life is negotiable. Just make sure you watch for the future change orders as contractors often use this to make the money back that was initially negotiated down. But keep in mind that good workmanship is worth the price, especially so you do not need to have everything redone in a couple of years since it was not done properly in the first place.

8. The Notorious Crack – This topic is not referring to a crack in the tile, a crack in your sewage pipes, a cracked window and so on, but the old “plumbers’ crack,” which is not just displayed by plumbers, but by many contractors. This section is more important then it seems, as you want to hire someone who is successful enough that they can afford a belt and has enough self respect to keep their pants up.

A Crystal Ball

2011-05-05T07:04:00.000-07:00

I wish I had in my possession a crystal ball, the mythical object that could inform me as to where the real estate market is heading. If you read a newspaper, watch some form of the news, or simply exist, you have probably taken note that the economy tanked not long ago. Resulting from the collapse a large number of people lost jobs and America took a step backwards as the illustrious nation of progress and innovation. Slowly we are inching our way back, but no one knows exactly what the future holds for our nation, or how long it will take to get our feet back on the ground.

My profession is in real estate and if I were to attain a crystal ball I would peer into the shiny orb and advise everyone when to buy or when to sell. Perhaps the crystal ball would alert me that an army of termites was marching towards your home looking for dinner, or a large maple tree was going to crash onto your home while your family is sleeping. Sadly, the little crystal prophet does not exist, so I do my best in researching the markets and educating myself about the movement of the real estate industry so that I can advise you on every aspect of buying or selling your home.

Clients, friends and strangers repeatedly ask me where the markets are going, up or down, left or right. The truth is that no Realtor knows, no businessperson knows (except if you work for Goldman Sachs) and no homeowner knows. The best we can do is deal with the exact moment in which we are living. The past can be an indicator, but the future always carries new scenarios, new world changes and the creation of new markets.

When you decide to buy a home, you should not simply find a real estate agent, but find a businessperson who happens to be in the business of real estate. The real estate agent should understand the intricacies and moods of the area in which you are living, see the trends in residential and commercial properties and know the schools, playgrounds and communities in the local area. Diligently search for a person who understands a home’s value and can deal with all of the lovely personalities in which you will be working with, including but not limited to, mortgage professionals, home inspectors, staging professionals, buyers and sellers, real estate agents and so on. Ask the agent about the stock market to see if they understand the overall economic picture and check in on their knowledge of the price of gold and the cost of a gallon of milk. Your agent should understand not just local politics but state and federal also. Find a real estate professional that can spin all of these persons and information together and in the end get you the home of your dreams or sell your home at the right price.

So if you have merely skimmed through my first entry, here is the conclusion: In the world of real estate, the sought-after crystal ball does not exist, but I am the next best thing.