Real Estate Information

The beginning of this week marked the offical day of fall. Early fall is the time of year to prepare your house for the cooler weather just around the corner. Below are some tips on some things you'll need to do to make sure your home is prepared for winter, which will be here sooner than you think!

1. Call out the heating professionals. While you may think it is not necessary to have your unit serviced because your heating system is working well, it is very important to have it inspected by a professional every year.  By taking this preventative measure and making minor fixes now, you can avoid expensive repair jobs in the future.

2. Seal the cracks. You don't want to increase your heating bill by letting in cold air so it is a good idea to do an  inspection of all windows and doors to check for problem areas. Use weather stipping or caulk to repair any damage and and seal up any gaps.

3. Clean The Dreaded Gutters. While most people dread cleaning the cutters, it is very important to do so. Make sure they are free of leaves and debris and repair any broken gutters and downspouts. In addition remove or trim dead or overgrown tree limbs hanging over your house. All it takes is one storm to bring weak branches down and damage your roof.

4. Protect your plumbing. Even if your pipes have never frozen in the past it is important to protect them. Check the lines that run through the exterior walls. Wrap with pipe jackets, fiberglass insulation or electric tape.

5. Don't forget the lawn. Fertilize the lawn  to promote root growth and make your lawn greener next year.

As cold weather approaches you should begin to take action early to prepare and protect your home for the season. With careful planning and preparation you can help to  ensure your utilities will run efficiently during the winter, and in the end save you time and money, 

Your mortgage rate is on the list as one of the most important factors to consider when buying a home. Obviously the lower your rate the less you have to pay back.  Locking in a low mortgage rate in a market that is fluctuating up to a full point over the first half of 2008 will be critical.

What does it mean to 'lock' in a rate?

Locking your interest rate down means that the broker or banker will give you a commitment for a loan at today's current rate (typically for 30-60 days). While locking in your rate before you are ready to close puts you on a time table, it  lets you know upfront the points and terms that you will be buying under.  Some rates can be locked for 15 days and some for up to three months.  You still need to buy before that rates terms expire.  Otherwise you will be back to negotiating a rate and everything else.

A few things you need to do before locking things in:
• Shop around:  your rates and terms may vary wildly from lender to lender and rate locks can be a serious cost.  Don’t be afraid to shop before you lock that rate.
• Make sure you allow for loan processing time in your lock period and be sure to be ready to put in that loan application before the terms will expire.  This includes checking credit reports and even a pre-approval can help.

As with everything it is important to get it in writing.   The contract has to lock the interest rate, the points, terms and other costs.  It must include the names the mortgage will be in, the cost of the lock the terms as well as the effective date and its expiration date and time.  If you have any post-lock options make sure they are included in the contract.

Keep in mind that even a half a percent fluctuation can cost you thousands of dollars.  If you lock in your rate you can be better prepared for what the bottom line of your mortgage will be.  With an uncertain market, this can only help!

The real estate market is full of ups and downs.  When buying a home sometimes you need every advantage.  So what days of the year are the best days to buy a home?  There are at least two days that can give buyers the edge, Christmas and Easter. 

The reasoning that these two days are the best days to purchase a house are that if a house is on the market over Christmas it implies that the owner definitely wants to sell and is motivated.  Moods over these holidays tend to be a little more cheerful and leaning towards good will.  However, sales are normally at a low in December.

Normally, however, most home purchases occur in late spring to late summer.  This is often because families want to move over the summer so that the children, might be able to settle in before school starts.  So, during this time period many home owners will have more showings and may not be as willing to negotiate.

Autumn is also a great time to buy, as the leaves fall , sales begin to also fall away. The need to sell before the home sits empty over the winter becomes more important to the owner.  Many home owners are more motivated to sell before the late fall holidays or the holiday season are upon them.  Open houses and home showings may be hard to come by over the holidays. 

Still, if you can get an agent who is tactful and persistent enough to be able to schedule a viewing over Christmas or Easter those particular days seem to give you an advantage.   You may have an advantage to having a lower offer accepted over those holidays. 

Always, remember that markets vary and seller motivation may not be predictable.  There are lots of reasons a seller might be motivated to accept a slightly lower offer.  These motivations may include divorce, job transfer and retirement. This is a buyers market so if you are in the market for a new home, now is the time to buy!

It’s hard to believe but it is that time of year again. Today children all over the area put on their new backpacks and shoes and boarded the busses all over town to head back to school. While you may have most things on your list done, you might want to check out these resources to help you and your family make this a great school year.  

• If you are new to the area or just in need of information on the schools in your area visit Des Monines Public Schools and Great Schools. It is a valuable resource for parents with children in grades K-12.
• Parent involvement is crucial in your child's success at school. It is a prominent focus of the PTA Web site, and also is featured in the Parent and Community section of the National Education Association Web site. The NEA represents teachers across the country. Parents of middle-schoolers might be especially interested in Bridging the Homework Divide, an NEA publication available for download.
• Update your child’s emergency ID kit.  The next time you are at a community festival or expo and you walk by a booth with your local law enforcement agency offering child identification kits, take the time to do one for your child.  If you haven’t seen one you can do the following: to inquire about a child identification kit check with your local Sheriff's Office or contact the local crime stoppers.
• Check out the FREE page on the federal Department of Education. In this case, FREE is an acronym for Free Resources for Educational Excellence, a guide to information on a wide range of topics compiled by many agencies and organizations such as the Library of Congress, the Smithsonian Institution and the National Science Foundation. The site could be particularly helpful with some of those pesky homework assignments.

It can be difficult transitioning from sleeping in and days at the pool to getting up early and homework. These resources can help make the transition easier and help get everyone prepared and focused. Make it a great and successful school year!

Congress passed a housing bill at the end of July and it was signed into law by President Bush. The new law will make many needed changes. It will provide mortgage relief for more than 400,000 US homeowners facing foreclosure.  The law will also provide $300 billion in federal guarantees to help refinance problem mortgages and will also assist US mortgage giants  Freddie Mac and Fannie Mae.   The bill will give the Federal Housing Administration the authority to help homeowners refinance with mortgages backed by the federal government.  Current lenders, however, will have to agree to take a loss on their loans. 

Those who opposed the bill have said it will end up taking money out of the pockets of the taxpayers and putting it in the pockets of the stockholders.  At this time there is no limit to the amount of help Freddie Mac and Fannie Mae will receive.  The two companies own or back nearly half of the country's total mortgages.  The bill puts a cap of $625,500 on Freddie Mac and Fannie Mae in certain higher priced markets and up to 15% over median prices in other areas.

In addition to FHA-insured mortgages the bill will offer a number of other incentives.  One such incentive is the $15 billion in tax breaks such as a $7500 tax credit for first time homebuyers.  This credit is retroactive to April 9, 2008 and is valid until July 1, 2009.  Another incentive is $3.9 billion in grants for communities with the highest foreclosure rates.

Although there are some very good things in the bill there is one major item that will affect many new Homeowners. This bill will totally eliminate down payment assistance as of Sep .30 2008.

With that said several people in Congress have pledged to do everything the can to keep these programs.  It’s estimated that the down payment assistance programs have helped over 700,000 Americans purchase a home.  Many consumers would not be able to get a Home Loan without down payment assistance.

Purchasing a home is one of the biggest investments you will make in your lifetime, and it can also be one of the most stressful. By having a home inspection it can help to ensure that the quality of your potential home is in good condition and help to eliminate surprises by making you aware to any problems.

So how do you go about selecting a home inspector?    One good way to start is one of the two nationally recognized professional associations for home inspectors; the American Society of Home Inspectors or The National Association of Home Inspectors.   In order to be listed with either of these organizations one has to go through a certification process. Both of these have a search engine to help you find “state certified home inspectors.”  Once you have a few names it doesn’t hurt to check with the Better Business Bureau.  Make a list of inspectors that have been recommended.  Avoiding anyone who has a negative report can help you avoid any potential problems with your inspection. 

A few things questions to ask when talking to your potential home inspector:

• What is the inspector's experience? How many years have they been in the business and how many inspections do they do a year?
 
• Exclusively inspections? Beware of contractors who do house inspections "on the side"--they may be looking for work and this isn’t necessarily what you want.

• What type of report? Will it be written or oral or both? Will the report contain suggestions for remedying deficiencies?   Preference should always be to get it in writing.

• How long will it take? Depending on the size of the house an inspection should take between 2 and 4 hours.

• What will be included in the inspection?

• What certifications do they have? Are they ASHI or NAHI certified?