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Help to Fight Mold in Your Home
Unfortunately, mold in your home is sneaky and can creep up on you when you least expect it. For a healthy home, monitoring and eliminating mold is crucial. Commonly, household mold develops because of water damage or a damp surface that isn’t regularly cleaned. Spores are known to stay dormant until they have the moisture and nutrients they need to bloom.
Common Mold Locations
Bathroom:
The bathroom is the most common hotspot for mold! Check toilet seals, wet walls, shower curtains, beneath sinks, and ESPECIALLY the shower. To keep mold from penetrating the tiles, you need to ensure your caulking and grout are in good shape.
Kitchen:
A slow leak can go undetected and be a breeding ground for mold. A leak under the sink, behind the fridge, or around the dishwasher can likely lead to a mold problem. Try to check these areas monthly.
Carpeting:
Mold can become active in carpeting because of flooding, moisture from concrete foundations, or even spills. The carpet that houses mold will need to be replaced.
Windows:
Condensation can build up on your windows as temperatures fluctuate, and spores hanging around can gradually take hold and bloom into a black, spotty mess. Mold is more common on shaded windows or windows that are often covered by curtains.
Drywall:
Unfortunately, the materials in drywall can promote mold growth when moisture is involved. To uncover the problem, you will often have to remove considerable sections of drywall to identify and remove the mold. Your nose is your best guide here.
Basements:
Basements meet all the qualifications for a perfect growth area for mold: dark, proximity to the earth, and hidden from view. Be sure to create proper drainage and ventilation to discourage the growth of mold.
The best way to locate mold is to search for leaking pipes and dry out wet areas in your home. To help prevent mold growth, look into an air purifying system, such as a “Quiet Cool Advanced Whole-Home Fan,” which exchanges the home’s indoor air and replaces it with fresh outdoor air in minutes. Learn more about Quite Cool Home Fans.
Effects of Mold on Your Health
Many people are sensitive to molds, but mold exposure does not always present a health problem indoors. Although, a moldy environment does worsen indoor air pollution, which is a risk factor for certain respiratory conditions.
Molds can produce several substances that can be harmful. Allergens, irritants, and mycotoxins are potentially toxic substances that can affect individuals susceptible to them. The EPA says that exposure to molds can irritate individuals’ eyes, lungs, nose, skin, and throats, even if they do not have a mold allergy.
I Can Help
I enjoy every aspect of helping individuals buy and sell homes, even if it is dealing with mold! If you have questions or are ready to make a move, contact me at (928) 710-9148.
What Generation of Buyer is Your House Geared Towards?
Staging presents your home in the best light. Staging can help position your home to sell faster and potentially for a higher price. But there are a couple of ket points to remember when staging:
1) Decorate the home to appeal to the buyer, not to appeal to you. Look at your house from the viewpoint of the buyer. How might they see the home? Set aside your own decorating and aesthetic preferences to create an inviting space geared toward wowing potential buyers.
2) Stage for the right generation of buyers. Is your house geared towards Baby Boomers, who are looking to downsize, or is your home geared towards the younger generation of Millennials who are looking to upgrade from their first house or buy for the first time? The younger generation of home buyers also may be more willing to buy a home that needs some upgrading or renovations.
Don’t stage for yourself… stage for the generation buying your home.
Staging Tips
Stage a house to helps buyers imagine themselves living in it. Here are a few tips to get you started:
- Declutter: Rather than hiding clutter in a closet, box it up, and put it into storage. Clutter creates a smaller feeling home. Stagers suggest less furniture as well to create more room, because when your house looks bigger, it will appeal more to buyers.
- Lighting: Create a bright and warm environment with lighting. Utilize natural lighting by opening your blinds and updating light fixtures. A simple solution is increasing the wattage in your lamps and fixtures.
- Paint: A helpful tip from HGTV states that “to make a room appear to be bigger than it is, paint it the same color as the adjacent room. If you have a small kitchen and dining room, a seamless look will make both rooms feel like one big space.” Along with this, paint with fresh neutral colors. Bold colors can actually reduce offers.
- Odd Number of Accessories: Accessories can create a more inviting room. For a pleasing look, stick with odd numbers, especially three.
- Make Every Space Functional: If you have an empty space at the end of a hallway or stairs, create a small reading nook or desk space. Make awkward spaces functional.
- Curb Appeal: Don’t forget the curb appeal, because if you neglect the outside, then you won’t attract buyers to the inside.
- Finishing Touches: Add finishing touches of fresh flowers, folded towels, a bowl of fresh fruit, or fresh baked cookies!
I’d be happy to work with you to find a stager who can help make your home as appealing as possible. I work with my clients to ensure their home sells for the best possible price. Contact me at: 928-710-9148
Common Real Estate Acronyms
Sometimes, when buying a home, you feel like you are in the middle of alphabet soup!
There are multiple acronyms in the real estate industry that help communicate the matters at hand. But what if you don’t know what the acronym means? Don’t worry. We are here to help!
First of all, before I start my list, I would like to stress that it is entirely acceptable and good practice to speak up and ask if you don’t understand what is being communicated to you. Realtors are in the business to help you with your home buying or selling process. It is our job to make a smooth transaction and make sure you fully understand the terminology.
Below are some of the common real estate acronyms and their meaning to give you a little head-start.
- APR – Annual Percentage Rate
Annual cost of borrowing money based on the loan amount, interest rate, and certain other fees. - ABR – Accredited Buyer Representative
A certificate of National Association of Realtors for buyer representation - CD – Closing Disclosure
This five-page document spells out all the loan terms: the amount, the interest rate, the monthly payment, mortgage insurance, the monthly escrow amount, and closing costs. It is given to the buyer three days before closing. - CMA – Comparative Market Analysis
Comparative market analysis is the process of determining an investment property’s value by comparing it to other properties similar in size, amenities, etc. Comparative market analysis takes both the property itself into consideration, as well as the market in general. - DTI – Debt-to-Income
Percentage of your monthly income that goes toward your monthly debt payments. - FHA – Federal Housing Administration
A government agency created by the National Housing Act of 1934 that insures loans made by private lenders. - FRM – Fixed-Rate Mortgage
An interest rate that does not change during the entire term of your loan. - FSBO – For Sale by Owner
Properties that are not listed on the MLS. - HOA – Homeowners Association
The governing body of a housing development, condo or townhome complex that sets rules and regulations and charges dues and special assessments used to maintain common areas and cover unexpected expenses respectively. - LTV – Loan-to-Value Ratio
The amount of the loan divided by the price of the house. Lenders reward lower LTV ratios. - MLS – Multiple Listing Service
A database where real estate agents list properties for sale. - PMI – Private Mortgage Insurance
Insurance that protects lenders from losses if a homeowner is unable to pay their mortgage. It is required for homebuyers who make down payments less than 20% of the home purchase price. - P & I – Principal and Interest
Principal and interest are the portions of your monthly mortgage payment that go toward paying off the money you borrowed to buy your home.
If you ever have questions about the terminology of the real estate industry, I would be happy to help! Give me a call: 928-710-9148
Buying a Home with Bad Credit
Bad credit can be disheartening, and many believe that bad credit can disqualify you from buying a house. While it can be difficult, it is not impossible to buy a home with bad credit. Below I have put together tips on what steps you can take to boost your prospects of buying a home. If you’re not in the position to buy today, preparing for what could be available in the future is a strategy that will pay off in the long run.
First, check your credit score.
Checking your credit score is easy to do. Each of the nationwide credit reporting companies, Equifax, Experian, and TransUnion, are all required to provide you with a free copy of your credit report, at your request, once every 12 months.
Along with this, check for errors in your credit report. If you find an error, the best way to attempt a correction is through a dispute letter. Dispute letters allow you to formally request a fix by the reporting agency. Though it may take a little time to get the errors removed, cleaning up these mistakes can have a direct, as well as favorable, effect on your credit score, helping you secure lower interest rates and better terms.
Larger Down Payment
Down payment assistance is complicated to get with a bad credit score. You’re going to have to help your odds of pre-approval by proving you have 10% down to put on your home. That 10% is beneficial if your credit score is sub-550. Above 550, you might be able to land an FHA loan with only 3.5% in equity.
Need help saving for a down payment? Here are some tips for conquering saving for a down payment:
- Find out where your money goes and make adjustments on what are “needs” versus “wants.”
- Get specific about how much you need to save, so you have a visible goal to shoot for.
- Determine the big moves you can make to change your financial picture.
- Set up a separate savings account, so your down payment is out-of-sight and out-of-mind.
- Pretend you already have a house payment by paying that amount to yourself each month.
Make Moves to Rebuild Your Credit
You don’t have to be perfect to improve your access to better mortgage terms. First, pay down your credit card balances. Then identify any outstanding debts or collections that you can manage to get cleared through full payment or a negotiated settlement. If you can push your rating above 620, you’ll not only get closer to better terms, but generally, you’ll experience less scrutiny during the approval process. Focus on doing what you can to bring your debt-to-income ratio below 45%.
Don’t Force It
Suppose you’ve experienced a bankruptcy, foreclosure, or short sale scenario. In that case, it may not be possible for you to secure a mortgage for at least three years (sometimes two, depending on the situation). Use this time to work on the tips above!
If you’d like to begin hunting for your next home, I am happy to help guide you. Or, if you need a referral to a reputable mortgage professional, get in touch! I have a network of trusted folks I work with every year: 928-710-9148
3 Benefits of Owning Real Estate
Success is often worth repeating, and Brent Sutherland, a Certified Financial Planner and Real Estate Investor, has undoubtedly made his way in a momentum-driving direction.
Who is Brent Sutherland?
Sutherland was 35 when he bought his first single home to rent out for income, less than five years later, he owns eight additional properties and part of a commercial real estate project.
Here are three tips Brent shares from a recent piece in Business Insider on the benefits of owning real estate:
1. Real estate diversifies your income
“While it is certainly important to be properly diversified with your investments, it is even more important to be diversified with your income. This is because the largest financial risk for most of you is the loss of your primary source of income, which is typically in the form of a day job.”
The article highlights how having multiple income sources, such as those derived from real estate investments, can eventually lead to relying less and less on a day job. Sound dreamy? It can be. When done well, real estate investments may eventually open up your time and the financial freedom to explore other things, like travel and other aspirations you may have for the future, particularly in the golden years of retirement.
2. Real estate produces near-immediate results
“You can achieve and feel the results almost immediately. Property improvements are visible and tangible. You can cash, spend, and invest rent payments. Today! Not 30 years in the future.”
Currently, home prices are appreciating in all price ranges, and just last week CoreLogic announced their 12-month home value projection at 5.6%, an increase from 4.5% noted earlier this summer. With that in mind, real estate today is driving immediate results!
3. Passive income can help you become financially independent sooner
“If you need $40,000 a year to live, you could alternatively invest in assets that generate an 8% cash-on-cash return. This is a very reasonable assumption. And it means you would only need to save a total of $500,000 (instead of $1 million). Yet, your investments would still meet your annual household living needs.
While returns, taxes, and inflation can, of course, affect your timeline, cash-flowing real-estate is a clear asset.”
Homeownership is a form of ‘forced savings.’ Every time you pay your mortgage, you’re contributing to your net worth by increasing the equity in your home, bringing you one step closer to true financial independence.
Bottom Line
If you want to increase your savings and overall net worth, real estate is a great way to go. To learn how you can make it happen, let’s get together to discuss the process.
What You Need to Know about HOAs
If you’re a first-time buyer and are confused about what a Home Owners Association is (or does), you need to ask the right questions before considering buying. An HOA is an organization designed to protect the quality of life and property values for owners within a neighborhood or shared building. Although, how they make this happen can vary widely. Typically, when you purchase a residence subject to an HOA, you’ll be required to pay monthly dues, which often contribute to major repairs or maintenance or the upkeep of common/shared resources.
But HOAs can also significantly impact what you can and can’t do with your own home. The covenants, conditions, and restrictions (CC&Rs) detail the HOA’s rules. To understand how strict an HOA is (or isn’t), you’ll want to understand the details of its CC&Rs before you consider buying. These might have reasonable restrictions, such as keeping junk cars out of the front lawn, or they might extend to what color you can paint your garage door.
Here are some questions you’ll want to ask yourself and the HOA before you make an offer:
- How comfortable am I sharing decision making about my own home? Yes, you own your property, but if you agree to abide by the CC&Rs of an HOA, you’ll need to be willing to abide by its rules.
- How much are the HOA fees, and how much have they increased over time? Your budget can be seriously impacted not only by current HOA fees but anticipated increases. Sometimes HOAs can even require residents to chip in for major repairs or upgrades beyond HOA fees.
- What are all of the CC&Rs? Get a copy of the CC&Rs and make sure you understand all of the rules. Furthermore, see if you can sit on an HOA board meeting or obtain notes from past meetings. Observing will help you understand the HOA’s temperament and the type of past conflicts residents have had with the board.
- Is the home (or unit) you’re considering in compliance with the HOA’s CC&Rs? If you’re considering an offer on a problematic property, understand a real hassle may follow.
A great way to learn about the association’s history is by asking the neighbors around your desired home. Walk around the community and find a few residents to talk to. Are they happy? Have the neighbors had problems with the HOA? Does the HOA keep a well-run community?
If you like the idea of a group of neighbors who set community or building standards, a residence with an HOA may be for you. But if not, don’t worry, there are lots of other homes out there! Get in touch today: (928) 710-9148
Promises of a Real Estate Pro
There are thousands of licensed real estate agents, but of those licensed, how many are dedicated professionals? No doubt, many can make a good first impression. But to truly represent your needs, they’ll need to be able to follow through on the promises that only professionals can make. One way to separate the professionals from the simply qualified realtors is to ask them if they’re willing to make some promises about how they conduct their business. Here’s what any great real estate agent should be able to say from the beginning of your working relationship:
- Communication is Key. Communication is fundamental to a working relationship, and a great agent knows that a buyer or seller may have questions and concerns which need addressing as soon as possible. Be respectful of your agent’s schedule, but you should never feel that your real estate agent is missing in action.
- Full-Timer Realtors work full-time for you. Those with in-depth real estate experience have graduated from the part-timer’s status to the ability to support themselves with their income in real estate. Full-time realtors make great representatives for their clients.
- Open to work with a variety of professionals to get the job done. A true professional is open to working with lenders, insurance brokers, inspectors, and other companies that make you feel most comfortable. Real Estate professionals may recommend those who they know and trust, which is incredibly helpful, but a great agent will never confine you to their network of associates. They’ll also let you know if someone you recommend may not meet their professional standards.
- Honest advice is a priority.A professional real estate agent is engaged, concerned, and will tell you the best counsel when it comes to serving your needs. Sometimes, this advice may not be easy to hear, especially when it comes to pricing, budget, or repairs. An agent who doesn’t give advice may well be checked-out and giving you less-than-ideal representation.
- Professional Attitude all of the way.Honesty from your agent doesn’t mean abuse, neglect, name-calling, or undue pressure to see things their way. In every interaction, you should feel your agent walks, talks, and projects a competent professional’s image. Stress is part of real estate. The stakes are high, and emotions are always just beneath the surface. A pro agent will have the fortitude and discipline to maintain a professional demeanor under fire.
What is my specific promise to you?
I work hard to sell your home faster, at a higher selling price, and provides a better experience. The secret is simple . . . dedicated customer service.
With all the changes in the real estate business one thing has remained constant, I never waiver in my commitment to client satisfaction. I have put together a dedicated team of professionals that have closed 100% of all short sales we have listed.
Our team of agents, lenders, marketing professionals work to insure that your goal whether purchasing or selling a home is reached. Whether working with buyers in new home sales, retirees downsizing, or first time home buyers navigate the home buying process, I will work tirelessly to insure a smooth transaction.
Make Your Home Baby-Friendly
You may not have kids right now, but chances are you may be entertaining guests one day who do. Below are some sound strategies to make your guest’s visit low-stress and safe by baby proofing your home. These are great ways to put your guests at ease and do your best to protect their little ones from harm by investing in some modest pre-visit baby proofing.
Mind the Power and Appliances
Outlets are enemy #1. Baby fingers are like magnets for electricity, so splurge on some plastic outlet covers which fit snugly into those empty sockets. If you have any multi-socket power strips around, be sure to cover those as well (or elevate them out of harm’s reach). Depending on your youngest visitors’ age, some may be able to reach knobs and buttons on appliances like your stove. Exploring hands can accidentally turn on the gas, so if you think your kitchen will be vulnerable, invest around $10 on stove knob covers.
Make Some Rooms Off-Limits
It may not be practical to baby proof every inch of your house, making certain zones baby-free by using gates. Sturdy, simple, pressure-mounted gates will protect specific passages and prevent you from making any permanent holes in your wall. Alternately, use doorknob covers to make even unlocked rooms less likely to be prone to an infant invasion.
Fight Falling Objects
Babies are all about testing gravity, and as they try to bring themselves upright, they’re liable to tug on anything within arm’s reach. Items that can fall on a child include entertainment centers, bookshelf, floor lamps, or other furniture. Are there any precarious pieces that might tumble down and seriously injure a child? Consider items on top of shelves (like decorative glassware), which can fall if shook, even it is modest force.
Curtail the Cords
Power cords and curtain (or blind) cords can cause falls, entanglement, or even strangulation. Tie these up out of the way or too high for a baby to reach from the floor.
Get Down and Look Around
A baby will put anything in its mouth. That will include choking hazards, dropped medications, or stray chemicals such as rat poison or cleaners. Shift your perspective to the floor and look for anything suspicious.
Looking at things from a child’s perspective is critical. If you have magnets on your refrigerator, move them up out of the child’s reach or take them off your fridge and tuck them away. Kids love sticking things in their moth; magnets could cause a choking hazard. Consider putting bumpers on sharp furniture edges, as toddlers are still figuring out balance and will stumble easier. In the bathroom, install toilet locks to keep the toilet lid closed so that there is no chance for kids to fall headfirst in when they are curious.
Some homes are more kid-friendly than others. If you’re looking for a perfect home for little ones, I can help you find one today!
Is a Home Warranty Right for You?
The idea of a home warranty can sound great. The definition of home warranty is “a service contract, normally for one year, which helps protect home owners against the cost of unexpected covered repairs or replacement on their major systems and appliances that break down due to normal wear and tear” (National Association of Realtors). Coverage is for systems and appliances in good working order at the start of the contract.
It sounds simple: You insure critical systems in the home, and should something go wrong with those systems, the insurance company largely covers the cost of repairs. And it’s true, a home warranty can be exceptionally valuable, especially in the first year of homeownership, when you’re still getting a feel for the overall health and maintenance status of your home.
For basic home warranty coverage, plans average from $350 to $600 per year. An annual premium and service charge is also referred to as a deductible paid by the homeowner for each claim. This fee ranges from $75 to $100 for each repair or replacement.
Sellers often offer a home warranty to ease buyers’ concerns over their first year in the home. In fact, in states where foreclosures are common, home warranties are practically the norm. If a buyer is looking at two comparable homes, a warranty can be a competitive advantage.
But as with all insurance policies, the fine print matters. When researching home warranties, you must be certain of what the policy covers and how the insurance company honors claims. For big-ticket items like heating and cooling systems, the home warranty can be a massive cost savings, often reducing out-of-pocket expenses to less than 10% of the total. However, with smaller appliances and simple repairs, the deductible/service fee can cost you as much as the repair would on its own. Plus, it’s vital to know if the warranty will replace versus repair aging appliances. (Many companies will repair an old stove or refrigerator rather than replace the unit with a more energy-efficient model.)
You should also be aware when having a home warranty isn’t required on certain home features. For instance, if you have a dishwasher or water heater that is already under the manufacturer’s warranty, the home warranty coverage may be superfluous. However, if you have major systems with considerable age, the warranty can be worth the investment.
Be aware of the terms of the warranty when it comes to maintenance and neglect. Occasionally, home warranty companies will try to get out of paying for repairs or replacement by claiming you haven’t kept up with routine maintenance issues. To ensure you don’t get caught out on these technicalities, understand how the insurance company justifies these claims.
We have found that homeowner’s insurance is most valuable for more extensive repairs rather than smaller ones such as a leaking sink or a toilet that keeps running. Insurance is always a complex business, but don’t shy away from investigating a home warranty if you’d like some protection from major, catastrophic repairs.
In addition, check with the insurance company for a list of providers in the Prescott area. Unfortunately, most claims are ‘emergencies,’ and you will want to make sure they have service contractors ready to take care of your needs quickly.
With a little diligence, you can get the coverage you need. If you have any questions about where to get home warranty quotes, get in touch with me today.
How to Make a Down Payment Possible
Every month you pay the rent, you’re probably thinking, “I wish this money were going into my future.” For a lot of would-be first-time home buyers, it’s the down payment, which makes home ownership seem impossible. We want to encourage you, climbing the “down payment mountain” isn’t impossible. Like any significant challenge, it’s all a matter of breaking your essential, challenging, audacious goal down into practical steps.
Here are some tips for conquering saving for a down payment:
Find out where your money goes. You can’t start saving money if you don’t know where you’re spending the money. For a month or two, track each expenditure, no matter how small. Get an objective picture of where you’re spending the cash.
Get specific about how much you need to save. Even if you’re not 100% sure what your down payment needs to be yet, it’s good to start doing a little math to figure out how much you need to save. Pick a dollar amount and a timeline to hit that dollar amount. For example, a $25,000 down payment in two years comes to $1,041/month. Sound unrealistic? Either scale down your home desires to something smaller or scale up your timeline. If you can wait three years, that monthly savings goal drops to $694/month.
Determine the big moves you can make. If you’re in a three-bedroom apartment and can handle the idea of scaling down to a one-bedroom, how much would you save in rent? What about going from two cars down to one? If you can make it work, these sacrifices will have a massive impact on your savings goals.
Establish a separate savings account. Don’t let your dream home money mingle with your regular checking or savings account. Establish high-yield savings account with a credit union or money market account to protect and build your savings. It’s essential to have a separate account with a “hands-off” attitude.
Pretend you already have a house payment. Once you determine the approximate amount of what a new house payment would be, start making that payment now. Instead of paying the bank, pay your savings account. This trick is two-fold. It will help you accumulate a down-payment faster, and it will ensure that you can afford the amount of the new house payment.
Mind the risky investment schemes. Once you have a little momentum, it may be tempting to take some of that cash and invest it to make it grow faster. Be very prudent about this, as investing in stocks, startups, or high-yield funds can quickly decimate your savings. Be conservative.
Of course, it’s essential to know how much home you want to buy when you’re saving up for your down payment. I’m happy to give you an idea of what homes are selling for in your area.
Feel free to get in touch at any time if you have questions.
