We all love to save money! Some of these you may have already incorporated, but I bet you did not know some of these helpful hints!
Via Karen Rittenhouse (Triad Residential Solutions):
30 Ways to Save Money on Utilities
1. Check it out! In many area…
This is such a great analogy of homes that I thought it worthy of a reblog! I love the way Debe is able to take her previous occupation and apply it to the sale of a home!Via Debe Maxwell – Search Charlotte Homes for Sale – Charlotte NC Neighborhoods (…
The Termite Report
One of the inspections you will most likely get when purchasing a home is a Termite Report. Also called a Wood Destroying Pests and Organisms Report. This report is designed to tell you if the home you are about to purchase has termites or other pests; such as beetles; that may damage the structure.
What are termites?
Termites are small, ant-like insects that feed off of the cellulose in wood. These little pests will burrow and tunnel through wood, eating their way through your home. If they go untreated, they can cause complete destruction of the wooden structure. Not good news.
There are different types of termites. Subterranean Termites which live and move in the ground. Any earth to wood contact provides the perfect setting for the termites to make a buffet of your home. There are also Dry Wood Termiteswhich will colonize in non decayed wood which has a very low moisture content. They will obtain entry to the wood, the queen will lay the eggs and the damage begins. There are also Damp-wood Termites and Powder-post Termites but the most common in California are the Subterranean and Dry Wood Termites.
How are they treated?
There are different types of treatment for each of the different types of termites. The treatment will also depend on the seriousness of the infestation. There are both chemical and non chemical treatments for termites. Fumigation is the most common and effective way to eradicate Dry Wood Termites, although 
microwave and heat are also effective as non chemical treatment.
Subterranean Termites are treated with a soil treatment that requires application directly to the soil in, under and around the structure. Often times the soil treatment may only be applied where the infestation is found and not around the entire building. You may want to get clarification on which procedure is being used to treat the Subterranean Termites found in the report.
Understanding the Report
The scope of the termite report is to identify for the client any condition or damage which is related to termite infestation, wood destroying beetle infestation and fungus infection. Fungus infection is also known as Dry Rot and is caused when the moisture content of the wood exceeds 20 or 30%. This creates a 
fungi that feeds off the cells of the wood. Fungiis treated with borates which are injected into the wood. This treatment will kill the fungi, however, it does not add strength to damaged wood. Most often time the Termite Company will recommend replacement of wood infected with Dry Rot.
Any items found with damage will be identified as either Section 1 items or Section 2 items. Section 1 items are any conditions existing from termite damage, water damage, Dry Rot or active termite infestation. Section 2 items are identified to alert the client of a situation that could lead to future 
damage. Most lenders will require any Section 1 item to be corrected prior to the close of escrow. VA loans will require clearance of both Section 1 AND Section 2 items.
Once the problem has been identified as either Section 1 or Section 2, the company that has prepared the report will usually recommend the proper work necessary to remedy the problem right under the item found. The remedies may include fumigation, localized treatment, wood replacement and further inspection.
Once you have received the termite report, be sure and take the time to review and understand the process necessary to correct the problem. If you have any questions, please be sure and speak to your REALTOR® to help you understand the work being performed. Depending upon how the purchase contract has been written will determine who is responsible for paying for what work to be done. Most times the seller will agree to correct Section 1 items and the buyer would then be responsible for any Section 2 items 
they would like corrected. Prior to the work being completed, make sure all parties understand which items are going to be repaired. If you have determined that you would like the Section 2items completed, make sure that is communicated prior to the work being ordered complete.
After the work has been performed, the Termite Company will go back out to the property and inspect the work that has been completed properly and issue a Termite Clearance.
The Termite Report is an important part of your inspection process. Understand the treatments, the necessary repairs and the type of warranty offered after any work has been completed. Your investment is worth it! Get a Termite Report!
Making the Home of Your Dreams A Reality. As your Agent of Possibibility it is my intent to make your home buying or selling process a smooth one!
Please feel free to subscribe to my blog or contact me at 619-838-4408.
Flipping a home is not as easy as you see on TV! There are some strategies and planning that need to be addressed prior to making an offer on a property you are considering flipping. Deena Cottingham has nailed it with this post. Thanks for the great information Deena!
Home Flip . . . or Flop?? Common mistakes to Avoid when selling a House for profit!
Spring is on the horizon, and with it, it seems like there is a lot more hope in many real estate markets. Here in Calgary, new home starts have nearly tripled compared to this same time last year! That is certainly good news.
With the general consensus being that perhaps the market has seen its bottom, with a slow rise in prices expected, it is a more promising scenario for home flippers to get back at buying and selling real estate for profit.
However, the house flipping industry has seen its share of casualties! If you are contemplating fixing up a house with the intent to sell it for a profit, be on guard against the following common mistakes:
1) Selecting the Wrong Property
Rule #1 for real estate isn’t location, location, location for nothing! You might get a better “deal” upfront on a property that has been difficult to sell – and the seller is now desperate – but be careful you won’t be in the same boat later on. This includes poor location, overall quirkiness, unusual floor plan for the area, or anything that is not easily fixed and would prevent the majority of people from wanting to buy it. Not sure? Consult a professional first.
2) Falling in Love
Getting emotionally involved with the house is one of the most common mistakes amateur home flippers make. Never lose sight of the fact that this is a business deal, pure and simple. Don’t make decisions based on what you’d like to see or you’d like to have in the home. If you won’t get at least double your money back on that tile or appliance decision, don’t put it in!
3) Underestimating the Time Value of Money
The longer you hang onto that property, the more it eats away at your profit. Many home flippers decide that they are going to do some work themselves to “save” on costs (been there, done that!). BIG mistake. Unless you are expertly proficient at the task, hire a professional to do it. They will do a better job, have fewer delays, get it done faster, and won’t create additional problems. (Anyone know what I’m talking about?!)
4) Over Renovating
This is a combination of #2 and #3 above. Your goal is to sell that property quickly, for the maximum profit possible. You are not creating your own dream home. If the maximum profit is attainable with only paint and new carpet, don’t replace the kitchen and bathrooms. Sure you it would look nicer and you might be able to sell it for more, but if your return on investment is lowered . . . and the job starts taking a whole lot longer . . you are making less money on the venture.
You’re better off to sell it with less done to it, and re-invest that money into your next project.
5) Pricing to Cover your Costs
When it’s all said and done, the property is only worth what it’s worth. Regardless of the decisions you made, how much you spent, or how much your carrying costs have added up to, you cannot sell the property for more than its fair market value. Listing high will just take longer to wear you down to that fair market price — increasing your carrying costs more and putting you further into debt.
And once a property has sat for more than a month or two, buyers start to think they can low-ball an offer because they figure you’ll be a more desperate seller (and you are, aren’t you?). That is, if they’ll even look at the overpriced listing in the first place. Many won’t.
Instead, follow the first 4 rules as best you can, and then just sell it. If you aren’t going to make as much money as you had hoped, chalk it up to a lesson learned . . . and move on. No buyer is going to overpay because you made poor decisions along the way.
6) Not Budgeting for Professionally Marketing the Home
Lastly, in order to have your best chances at a quick sale (remember, time is money), don’t forget to get the professionals to help you do this task, as well!
Since your flip is likely to be vacant, get it professionally staged. Home staging will help give those empty rooms scale and purpose; help tell a lifestyle story which also helps create an emotional connection; and will help distract the buyer’s eye from any minor flaws left in the property (don’t hide . . . distract!).
A professional Real Estate Agent will help you get maximum exposure for your property, and give buyers peace of mind about entering into a deal with you. They will also be able to advise you appropriately, preventing other costly mistakes in the negotiating and closing phases of the deal.
Home flipping is a great way to earn a decent income, and can be a lot of fun. Having been there myself, though, I can say that it’s not as easy as it looks on TV, kids! If there is a mantra for house flipping, it should be education, education, education! Know what you’re getting into.
Happy Flipping!
Deena Cottingham
GreenApple Staging & Images
Serving Calgary and Okotoks, Alberta©GreenApple Staging & Images, 2010
All information is copyrighted and may not be used, borrowed or copied without written permission.
Making the Home of Your Dreams A Reality. As your Agent of Possibibility it is my intent to make your home buying or selling process a smooth one!
Please feel free to subscribe to my blog or contact me at 619-838-4408.
Multiple Offers ~ Make an Offer They Can’t Refuse
With California property values being at the lowest in years, a First Time Buyer Tax Credit of $8000, a 
Move Up Credit of $6500 and low interest rates we have seen a market that has become quite competitive. Multiple offers on properties have become the norm in the San Diego Real Estate Market.
Frustration has hit many of the buyers that are anxious to get into a home as they make offer after offer; only to lose out. The competition is grueling. Many buyers are up against investors with all cash offers or are not moving quick enough to get in the game.
So what does it take to get a deal done? First and foremost, work with a REALTOR®. An experienced REALTOR® can help you navigate through the market, provide you with the tools and knowledge to make a competitive decision and will provide strong negotiating skills. Your REALTOR® has access to closed comparable sales and understands what it takes to write a competitive offer.
In putting together a competitive offer, there are some things you will want to consider:
• Loan Pre-approval~ By having a pre approval for a loan prior to writing your offer, you will be in the best position to know the highest amount you can make your offer. In addition, many sellers are requiring that a pre approval be submitted with your offer.
• Purchase price~ Consider looking at homes with a purchase price below the amount you are pre approved for. This will open up a wider range of homes as well as provide some wiggle room to offer more than the asking price if need be. Prior to offering more than the asking price, consult your REALTOR® to confirm the comparable sales will support the increase in price.
• Who is your competition? With many investors out there presenting all cash, no contingency offers, be prepared to present your highest and best offer from the beginning. Your REALTOR® will be able to assist you in determining how your offer should be written
• Bank owned property ~ Don’t assume just because the property is owned by the bank it will be an easy property to acquire. Often times these properties are listed below market value and many people want to get a good deal. Investors are watching these properties and move quickly in order to flip the property for a profit. Be prepared to make a strong offer. This may entail offering a larger down payment or no closing cost assistance. The more attractive your offer can be, the more competitive you will be in a multiple offer situation.
• Short Sales ~ When making an offer on a Short Sale property, understand the process. In many instances if the seller’s lender is unaware the property has been listed and requiring a short sale. The seller and listing agent will prepare a package for the lender to review for short sale approval. Once the seller has accepted an offer, it will be contingent upon the lender (or lenders if the seller has more than one loan) approval. The time period for approval can range anywhere between 2 weeks and 6 months or longer. Be prepared to wait. Understand the lenders may come back with a counter, even after a long wait period. If there is more than one lender, the 2nd lender may not agree with the amount offered by the first. This makes the negotiation period even longer. In working with Short Sales, you will want to work with a REALTOR® that is experienced in the process.
• Low Ball Offers ~ Don’t assume that in the current market situation it is a good time to make low ball offers. Perhaps you have been watching a property that has had multiple price reductions. Remember, you are not the only one who has been watching this. There may be any number of reasons the property has had price reductions. Work with your REALTOR® to understand the situation and prepare a competitive, attractive offer.
The more prepared you are, the more you are educated, you will be able to work with your REALTOR® and make an offer they can’t refuse!
Making the Home of Your Dreams A Reality. As your Agent of Possibibility it is my intent to make your home buying or selling process a smooth one!
Please feel free to subscribe to my blog or contact me at 619-838-4408.
Home Inspections~Not only for the buyer!
If you are considering selling your home or currently have it on the market, have you considered a pre-listing Home Inspection? You may ask, why should I spend the money when the buyer is going to get a home inspection anyway? Let’s examine this a little further. You have spruced up your home, given it a fresh coat of paint, planted some flowers in the yard and gotten rid of the clutter. Heck, you may even consider staging the property. Why do you need a pre-listing Home Inspection?
With a pre-listing Home Inspection a Certified Home Inspector will come to your home and perform a detailed inspection of the home and potential areas that may require repair. So how does this help you?
The most important thing in selling your home is finding a ready, willing and able buyer to purchase your home. Once you have an accepted offer, one of the contingencies in the contract is the buyer has the right to inspect the property. If there are items found the buyer’s inspector that they do not want to deal with, they can cancel the contract. You are back to square one. Perhaps there are items found by the buyers inspector that will be very costly to repair. You may not be in a position to repair these items. You may be asked to reduce the purchase price or to credit money at close for the cost of the repairs. This will cut into your bottom line. If you can not come to an agreement, the buyer can cancel the contract. Back to square one.
If you find out prior to an offer of any major problems requiring repair, you will be in a better position to negotiate the best price to sell your home for. In addition, it shows the buyer that you are pro active in selling your home and have made any repairs found in your home inspection and will give the buyer 
assurance the home is sound. Additionally, what a great selling tool for your REALTOR to be able to show potential buyers!
If you do decide to get a pre-listing home inspection, don’t forget the golden rule, you must disclose! Anything you find out in your home inspection, must be disclosed to potential buyers. Again, this may not be a bad thing. It puts you in a position of power. The power to sell your home at the best price, with or without the repairs! If the buyer agrees to the price and already knows repairs have been made or which items may need reepair, you are in the drivers seat!
Don’t get hit with the unexpected and risk the deal going south. Know what you are working with before you get into contract! Consider a pre-listing Home Inspection, it’s not only for the buyer!
Making the Home of Your Dreams A Reality. As your Agent of Possibibility it is my intent to make your home buying or selling process a smooth one!
Please feel free to subscribe to my blog or contact me at 619-838-4408.
Home Inspections~Not only for the buyer!
If you are considering selling your home or currently have it on the market, have you considered a pre-listing Home Inspection? You may ask, why should I spend the money when the buyer is going to get a home inspection anyway? Let’s examine this a little further. You have spruced up your home, given it a fresh coat of paint, planted some flowers in the yard and gotten rid of the clutter. Heck, you may even consider staging the property. Why do you need a pre-listing Home Inspection?
With a pre-listing Home Inspection a Certified Home Inspector will come to your home and perform a detailed inspection of the home and potential areas that may require repair. So how does this help you?
The most important thing in selling your home is finding a ready, willing and able buyer to purchase your home. Once you have an accepted offer, one of the contingencies in the contract is the buyer has the right to inspect the property. If there are items found the buyer’s inspector that they do not want to deal with, they can cancel the contract. You are back to square one. Perhaps there are items found by the buyers inspector that will be very costly to repair. You may not be in a position to repair these items. You may be asked to reduce the purchase price or to credit money at close for the cost of the repairs. This will cut into your bottom line. If you can not come to an agreement, the buyer can cancel the contract. Back to square one.
If you find out prior to an offer of any major problems requiring repair, you will be in a better position to negotiate the best price to sell your home for. In addition, it shows the buyer that you are pro active in selling your home and have made any repairs found in your home inspection and will give the buyer assurance the home is sound. Additionally, what a great selling tool for your REALTOR to be able to show potential buyers!
If you do decide to get a pre-listing home inspection, don’t forget the golden rule, you must disclose! Anything you find out in your home inspection, must be disclosed to potential buyers. Again, this may not be a bad thing. It puts you in a position of power. The power to sell your home at the best price, with or without the repairs! If the buyer agrees to the price and already knows repairs have been made or which items may need reepair, you are in the drivers seat!
Don’t get hit with the unexpected and risk the deal going south. Know what you are working with before you get into contract! Consider a pre-listing Home Inspection, it’s not only for the buyer!
Making the Home of Your Dreams A Reality. As your Agent of Possibibility it is my intent to make your home buying or selling process a smooth one!
Please feel free to subscribe to my blog or contact me at 619-838-4408.
One of the first things you will be doing in your new home search is getting pre-approved for a mortgage loan. While going through this process, you will come across financing terms that you may not be familiar with. Your understanding of these financing terms will help you make an educated decision on what the best loan for you will be. In addition, while speaking with your loan officer, it is important you understand
the process. Understanding some of the financing terms will help make sense of all that is going on.
• Adjustable Rate Mortgage (ARM)~ This type of loan has an interest rate that will adjust after a pre-determined period of time. The time periods can range from 6 months to 10 years.
• Amortization ~ the way a loan is paid off, with regular payments over a specific period of time. Payments must be sufficient to cover both principal and interest.
• Annual Percentage Rate (APR)~ the actual interest you are paying which factors in fees, points and other costs paid for obtaining the loan
• Appraisal/Appraised Value ~ A report completed by a qualified professional that makes a complete market analysis of a properties surrounding area to determine a reasonable value for a home. Based on comparable properties that have recently sold.
• AUS/DU/LP~ Automated Underwriting System/Desktop Underwriter (FNMA)/Loan Prospector(FHLMC) Using completed loan application information, an automated underwriting systems retrieves relevant data, such as a borrower’s credit history, income information, asset information and arrives at a logic-based loan decision.
• Buy Down ~ Money paid to “buy down” an interest rate. Interest rates may be permanently bought down by paying points or temporarily bought down 1 year, 2 years or 3 years. Example: interest may start at 3% for the first year, 4% for the second year 5% for the remaining life of the loan.
• Caps ~ Both payment and interest rate safeguards set in place for an ARM loan that will not allow a payment or interest rate to increase over a certain amount in a given time period.
• Certificate of Eligibility~ Document given to qualified Veterans that show their eligibility to use the benefit of a VA Home Loan.
• Closing ~ The date written into your offer as when the escrow will be completed. Money will be transferred to the seller. Close of Escrow date.
• Closing Costs ~ Expenses over and above the purchase price of the property for lenders fees, appraisals, property taxes, escrow and title fees.
• Conventional Loan ~A mortgage loan that is not insured or guaranteed by a government entity. A loan that will meet guidelines set forth by FNMA (Fannie Mae) and FHLMC (Freddie Mac) (also known as a conforming loan)
• Credit Report ~A detailed report of all loans, credit cards, car payments and the payment history for each. Will include all current and closed accounts. Will also include any liens or judgements in public record.
• Credit Score~also known as FICO score. Based on the information in your credit report, it is a statistical summary of the payment history. It is a mathematical summary calculation that gives numerical values to information in the credit report. YOUR CREDIT SCORE IS AN IMPORTANT FACTOR IN OBTAINING A MORTGAGE LOAN
• Debt to Income Ratio (DTI)~ This figure is calculated by taking any long term monthly debt and dividing it into your gross monthly income to determine affordability.
• Deed of Trust ~ Document executed by the borrower evidencing the debt owed to a lender. This document is recorded with the County Recorder’s Office and will be public record of the debt.
• Discount Points ~ Prepaid interest based on 1% of the loan amount for each point. Paying discount points will help lower the interest rate being negotiated.
• Earnest Money Deposit~ Money given by a buyer to a seller to bind the contract. This money is held by the Escrow Company and will be applied to down payment at the close of escrow.
• Escrow~ A third party intermediary who will hold and disburse funds in the transaction. The Escrow Company will assist in getting paperwork signed and arrange the recording of documents.
• FHA Loan ~ A mortgage loan insured by the Federal Housing Administration. FHA loans have their own underwriting guidelines that must be met, but may also be underwritten by an automated underwriting system.
• Fixed Rate Mortgage ~ A mortgage loan where the interest rate will remain consistent throughout the life of the loan.
• Impound Account ~ An account set up for the buyer by the lender to collect monthly payments that will cover property taxes and insurance. The lender will pay these installments when they come due.
• Jumbo Loan~ A mortgage loan that is higher than the conforming loan limits that are set by Fannie Mae and Freddie Mac
• Loan Origination Fee ~a percentage of the loan amount charged by the lender to originate the mortgage loan.
• Loan to Value (LTV) ~ Based on the appraised value of the home, the amount of money borrowed. Example: A loan with 20% down payment would equal an 80% Loan to Value ratio.
• Lock or Rate Lock ~ An opportunity to lock in a certain interest rate for a period of time. Usually between 12 and 45 days.
• Mortgage Insurance, PMI or MIP~ insurance to protect the lender in the event of default required on any loan with less than 20% down. Please see a more detailed explanation in my post on What is PMI
• Note~ A written promise to pay back money borrowed from the lender. This will include the terms of the loan, interest rate, payment dates, lender and borrower.
• PITI~ abbreviation for describing a total monthly mortgage payment that includes Principal, Interest, Taxes and Insurance.
• Prepayment Penalty~ A penalty charged by the lender for paying off or paying down a loan prior to a specified date. Not as common today as in the past. It is important to ask if your loan has a prepayment penalty.
• RESPA (Real Estate Settlement Procedures Act)~ The requirement for lenders to provide detailed information to the borrower in advance of what closing costs are to consist of.
• Title Insurance~ An insurance policy issued by a Title Company that may cover the lender and the buyer in the event of unfound claims against the property.
• Truth In Lending (Reg Z) ~ Federal law requiring the lender disclose the annual percentage rate (APR) to the buyer.
• Underwriting~ A decision made to lend or not to lend money based on information provided by the borrower regarding income, employment, assets and liability. The property will also be considered in the underwriting decision. Condition and loan to value will be evaluated.
• VA Loan~ A loan guaranteed by the Veterans Administration available to qualified veterans. May require no money down.
This is a short list of financing terms that will at least help you more fully understand the basics of the loan process and some of the forms that will accompany your process. Be sure to ask questions on anything you do not understand, continue to ask until you do. We are so used to talking to people in our industry on a daily basis that often times the terms and phrases that are used are just assumed to be known to the lay person. You should feel comfortable throughout the process you know what is going on.
For information on choosing a lender, please see my post on the Importance of a Good Lender. Happy House Hunting!
Making the Home of Your Dreams A Reality. As your Agent of Possibibility it is my intent to make your home buying or selling process a smooth one!
Please feel free to subscribe to my blog or contact me at 619-838-4408.
If you have purchased a home recently within San Diego County, you may have received a form from the Assessors Office for a Homeowner’s Property Tax Exemption. If you have not already done so, make sure 
you complete the form and send it back to the Assessor’s Office! I have also provided it for you here if you need it.
This Property Tax Exemption is for homeowners who occupy their property as their primary residence. At the time you purchased your home, the purchase price is considered to be the “assessed value” of the property. The Tax Collector uses this value to calculate what your taxes will be. When you file for the Homeowner’s Property Tax Exemption, the assessed value will be reduced by $7000 which will save you about $70 a year on your property taxes!
There is no fee to complete the paperwork, and once you have filed for the Property Tax Exemption, it will remain on the property as long as you own it and keep it as your primary residence.
This Property Tax Exemption is not available if the property is an investment property or if you claim a Disabled Veteran’s Exemption.
If you currently own a home and are not sure if you have filed for the Property Tax Exemption, take a look at your most recent property tax bill and it will tell you if it has been filed. If you have not filed, be sure to do so! $70 is $70! That would pay for 2 tanks of gas in my car! Every little bit helps these days!
If you have any questions or need assistance in completing the Property Tax Exemption form, I am available! I would love to hear from you!
Making the Home of Your Dreams A Reality. As your Agent of Possibibility it is my intent to make your home buying or selling process a smooth one!
Please feel free to subscribe to my blog or contact me at 619-838-4408.
Stephanie Reynolds 
Colleen Mitchell 
