Exterior Areas to Check and Fix before an Inspection

• Remove soil or mulch from contact with siding so that there are six or more inches of clearance.
• Clean out dirty gutters and any debris from the roof.
• Trim trees, roots, and bushes back from foundation, roof, siding, and chimney.  Then, check the siding and trim for damages and repair as needed.
• Paint weathered exterior wood and caulk around trim, chimney, windows, and doors.
• Remove wood/firewood and other objects from any contact with the house.
• Caulk all exterior wall penetrations.
• Ensure that all doors and windows are in proper operating condition, including repairing or replacing any cracked windowpanes.
• Repair major defects (like roofs) or be straight forward about them and adjust the asking price.
• Remove trash cans, trim branches and brush, dispose of dead limbs, and clear accessible path around the home.  This helps with the appearance of the house and makes inspecting the foundation, outside electrical outlets, and faucets easier.

Interior Areas to Check and Fix before an Inspection

• CLEAN!  An unkempt house gives the impression of uncaring owners and neglected regular maintenance.
• Leave keys to all locked utility boxes and doors.  Inaccessible systems are cause for incomplete inspections and delays.
• Clean or replace heating and cooling features.  Clean dirty air returns and plenum.
• Test all smoke detectors to ensure they are working.
• Have the chimney, fireplace, or woodstove serviced and provide the buyer with a copy of the cleaning record.
• Replace burned out light bulbs.
• Have a clear access to the attic, crawl space, the heating system, garage, and other areas that need to be inspected.
• Make sure all utilities are turned on, including: water, electricity, furnace, air conditioning, and water heater.
• Ensure access to all rooms and crawl spaces.  There will need to be adequate room to access appliances, electrical panels, and heating/cooling units.
• Check that all fixtures, fans, and appliances are working properly.

Basement, Crawl Spaces, Attic, and Garage Preparations before an Inspection

• Check to ensure crawl space is dry, and install proper vapor barrier if necessary.
• Remove paints, solvents, gas, wood, and other materials from crawl space, basement, attic, or porch.
• Update attic ventilation if none if present.
• If windows are at or below grade, install window wells and covers.
• Ensure that all doors and windows are in proper operating condition.
• Make sure the garage door is operating properly and repair as needed.

Bathroom Preparations before an Inspection

• Ensure plumbing fixtures such as toilet, tub, shower, and sinks are in proper working condition.  Fix any leaks and caulk around fixtures if necessary.
• Ensure GFCL receptacles are functional.
• Check bath vents to see if they are properly vented and in working condition.
• Clean out areas under sinks so they can be inspected.
• Look for floor damage around toilets, tubs, and showers.
• Make sure all grout and caulking is in good repair.

Following the checklist should help you avoid any unforeseen complications of your home inspection.  However, it is also important that you are ready at least 30 minutes before the appointment, and plan to leave your home for at least three hours.  Inspectors are often accompanied by buyers, and both parties will want uninhibited, free access to ask questions and explore the home.  It is also in the seller’s best interest to secure animals in crates, kennels, or far away from any area where the inspector will be.  This will alleviate any issues with nervous pets that will prevent the inspector from viewing certain areas that would result in an incomplete home inspection.

There is excitement when moving into a new home, but it can also be stressful. With all of the unpacking and decisions on where items will go in your new home, it is easy to get overwhelmed. Below is a check list of important items to remember in order to relieve some anxiety out of your move.

•  Mail – check with the post office to make sure your mail is being forwarded to your new address.
•  Locks – change the locks on all doors to ensure you have the only keys to your home. On newly constructed homes, some builders install locks that will automatically re-key after closing. Ask your builder if this is the case with your new home.
•  Homeowners Warranty – Although you will have an inspection before move in, make sure you have all of your warranty information handy just in case there are any problems that arise when you get settled into your new home.
•  Smoke Detectors/Carbon Monoxide Detectors – Replace the batteries in all of your smoke and carbon monoxide detectors to ensure they are working properly.
•  Contact Utilities - This includes gas, water, electricity, phone, and cable.  Disconnect these services the day after you move from your old home, and schedule all utilities to be connected at your new home the day before you arrive.
•  Contact Insurance Companies - This includes auto, household, and health.  Find out if you are still covered, or if you need to create new policies with a new company.  Find new health care professionals, if needed.  This is especially helpful when moving to a new state or county.
•  Pest Proof and Clean Your New Home - Set off a bug bomb or hire an exterminator a day or two before your move.  Then, give your new home a deep clean before you move all of your belongings inside.
•  Check Inventory - Make sure everything has arrived safe and sound.  Check major appliances and electronics immediately.  You might have a limited time to make a claim with your insurance policy.
•  Unpack Carefully - Don’t unpack everything at once.  Instead, sort through labeled boxes one at a time, and unpack boxes labeled most important to least important.  This gives yourself time to organize your new space as you go, avoids clutter, and reduces the chance of misplacing items.
•  Collect Moving Receipts - Make sure you have all of your moving receipts in order.  When it comes time to submit your personal taxes, you will need the receipts to write off any moving expense.

These are just a few things to ensure that the move into your new home will go smoothly. Keep in mind, the Connect Realty team is here to help make your move to your new home as easy and stress free as possible.

Connect Realty was founded in 2007 at the beginning of a declining real estate market.  It might seem odd that Connect Realty would select such a disconcerting time to open its doors, but timing as they say, is everything.  Connect Realty immediately recognized that the real estate market was eroding and that the normal way of doing business would have to change for real estate agents to continue to be successful while providing paramount services to their clients.  No longer could an agent be successful by providing “just the basics.”  They would have to utilize every possible advantage to provide their buyers and sellers with the most desirable options.  Real estate professionals now required state of the art technology at their fingertips, but at the same time their expenses had to be minimized in order to survive such a precarious environment.

Connect Realty is not yesterday’s real estate company.  We begin with a primary philosophy that the real estate professional is our customer.   We have reinvented real estate by simplifying the process and providing everything that an agent requires for success straight from their virtual office 24 hours a day, 7 days a week.

Our products and services are directed at providing our agents with the state of the art technology and tools required to provide the utmost professionalism and effectiveness to the ultimate customer; their buyers and sellers.  Connect Realty provides a cloud based platform that enables agents to access their virtual office from work, home, during their commute, or even on vacation.

Connect Realty products and services include:

•  Top Quality Training & Mentor Programs
• Regulatory Compliance & Legal Assistance
• Sophisticated Lead Generation Systems
• Real Estate Virtual Office & Transaction Management
• Worldwide Property Marketing via Advanced Cloud Based Technologies
• Sophisticated  Compensation Plans Based on Agent Specific Goals & Objectives
• Vendor Partners & Programs
• Foreclosure & Short Sale Specialists
• Retirement Building and Profit Sharing

Today, Connect Realty is a full service brokerage that is expanding and rapidly growing every day.  We are currently in 18 states providing services in over 80 markets with additional states and new markets opening frequently.  We are proud to be named one of the leading innovators in real estate by the esteemed Inman News.  Connect Realty provides the products and services necessary to make a successful “client centered” independent real estate professional a reality.

• Real estate professionals help buyers determine their buying power.  This includes your financial reserves plus your borrowing capacity.  Realtors gather information on your savings, income, and current debt to calculate what is affordable to you.  It is recommended to consider all loan options when buying a home.  Using a Realtor® together with your mortgage broker will help you understand the different financing options available to you.

• Realtors assist buyers in their home search.  When properties are not actively advertised, an agent can investigate to find the property that best meets the buyer’s needs.  They can develop a list of residences in the area of interest to view on the web that includes many aspects of the community, including schools, taxes, and the general overall condition of the real estate before managing an in-person tour.

• A real estate professional provides due diligence during the evaluation of the property, which could include assistance with inspections for items such as termites, dry rot, asbestos, roof conditions, and more.  Realtors can help you find qualified professionals to do most of these investigations.  They will review the written reports generated by inspections and assist you with any follow-up required as a result of the findings by the inspectors.  They can also review title search commitments to make sure the property is clearly owned by the seller, resolving any issues that might cause problems at a later date.

• A Realtor® also helps buyers negotiate factors such as price, financing terms, date of possession, and the inclusion/exclusion of repairs and furnishings or equipment.  They will create a purchase agreement that provides a period of time to complete the appropriate inspections and investigations of the property before the buyer is bound to complete the purchase.  They will provide comparables of recent sales to assure the buyer is not overpaying for the property.

• Realtors also provide guidance through the closing process and make sure everything flows smoothly.  Between the initial sales agreement and the closing agreement, questions may arise.  Unexpected repairs are sometimes required to obtain financing, or a concern with the title could potentially be uncovered.  Your real estate professional is the best person to objectively help you resolve these issues and move the transaction to settlement.  A professional real estate agent can make sure any unforeseen issues are handled reliable and quickly, so closing will happen efficiently, without unexpected delays.

Daylight Savings Time has not always been widely accepted among the public, and regions and countries today routinely change their approaches to it.  The concept all started with Benjamin Franklin, and later Britain and Germany began using the concept in World War I to conserve energy.  However, Daylight Savings Time didn’t become widely accepted in the United States until after World War II.  In the 1950s and 1960s, a lot of confusion was created because each U.S. locality could start and end Daylight Savings Time as it desired.  At one point, the twin cities of Minneapolis and St. Paul were even on different schedules!  Then, the Uniform Time Act of 1966 was implemented. It outlined that clocks should be set forward on the last Sunday in April, and set back the last Sunday in October.  In 1986, it was amended to start on the first Sunday of April.  Today, Daylight Savings Time begins on the second Sunday in March and ends on the first Sunday of November.

The implementation of Daylight Savings Time has been fought with controversy since Benjamin Franklin conceived the idea.  Regions and countries today still routinely change their approaches, and many cities in the past remained on different schedules.  Today, each U.S. Time Zone switches at a different time.  The universal time of 2:00 AM was chosen for each time zone because it was practical, and it minimizes the disruption.  Most people are at home at 2:00 AM, there are few trains running, and it’s early enough that the entire continental United States switches by day break, but before early church goers or workers are affected.  Daylight Savings Time is still not observed in Hawaii, Arizona, Guan, Puerto Rico, or American Samoa.

In the European Union, summer begins and ends at 1:00 AM universal time.  It begins the last Sunday in March and ends the last Sunday in October, and all time zones change at the same moment, regardless of the time.  The United States used to share the ending weekend, but in 2007 a new law extended Daylight Savings Time to the first Sunday in November because it provided more light and therefore more safety for trick-or-treaters on Halloween, thus less traffic accidents.  Officials also thought that the elections would receive a higher voter turnout with the longer days.

Today, there are still issues regarding Daylight Savings Time, mainly with trains and the Amtrak system.  However, the positives outweigh the negatives, in this case, as people continue to enjoy their longer, relaxing summer evenings.

According to Marcus & Millichap projections, the monthly rent of a property will increase from $1,000 to $1,200 per month within a five year period.

Owning property is not always cost-effective, so it is important that potential home buyers work with an experienced real estate agent and accountant to discuss the costs of owning their own home. This would include things like mortgage interest, taxes, insurance, homeowners associations, and repairs, and should be compared with the cost of renting.  This includes the loss of principal that renters are basically paying on behalf of the property owner, and the loss of possible tax deductions. If the cost of renting surpasses the cost of purchasing, then now might be the time to consider buying a home. A home may not only become a place that provides shelter, but a home may also be an investment generating an increase in your net worth.

Research firm REIS describes 2011 rental increases for the largest and smallest rental increases in major U.S. cities:

Biggest increases:

Smallest increases:

According to the research firm REIS, Houston ranked 6^th in 2011 annual increase in rental rates.  This bodes well for investors that participate in the ever-growing Houston economy.  Search HERE for all these Houston properties.

 It is all over the news that the real estate market is improving. Things are getting better, so why isn’t my home selling? In today’s economy, in spite recent good news, the real estate market still has its challenges. Real estate agents must be prepared for these challenges, and sometimes this means giving a buyer or seller information they don’t want to hear. Breaking bad news to clients is difficult, yet sometimes unavoidable. Sometimes life throws a curve ball that we can’t dodge. Real estate agents must face them “head on” with confidence and composure.

Regular and continuous communication is the key for any successful relationship, including that of real estate agents and their clients. Always stay in touch with your clients. Update them regularly of weekly activities and stats like virtual tour hits, posted online advertisements, open houses, and marketing materials. This type of communication lets the client know that their real estate agent is committed, and this open communication and trust will help you if and when you have to deliver unfavorable news to a client.

Giving bad news is difficult, but hearing it is even harder. Imagine the situation from your client’s perspective and manage the situation properly. You don’t expect to hear bad news casually in front of other people and/or indirectly through voice-mail, email or texting. Pick up the phone and call your client, and/or set up a personal meeting with them to discuss the situation.

Delivering Bad News – 5 Tips for Real Estate Agents

Don’t Wait, Communicate: There is no justification for delaying bad news. Prepare a mental or written script to deliver the news with an analysis of the situation and a possible specific solution. Don’t beat around the bush; be direct and concise.

Don’t e-mail or voice-mail, Call: Bad news shouldn’t be delivered casually. Talk to them over the phone and offer to meet with them to discuss it in further detail if they prefer. Emailing, texting, or leaving a voice-mail may seem like the easy way out, but you will have no idea how your client received the information or if they understood what you were trying to communicate. This lack of understanding can expose you and your company to increased liability.

 Don’t Blame, Accept Responsibility: Don’t shy away from your responsibility and don’t blame your client. As a real estate agent, the bad news you are giving to your client with reference to their real estate transaction is bad news for you too. Try using “us” and “our” instead of “I”, “mine” and “you” and “your” in your conversation with the client.

Don’t react, Empathize: Hearing bad news provokes emotions and it takes time to make sense of it, and finally to overcome it. Let your client express their emotions and frustrations. Don’t dismiss their emotions. Empathize with them, and show them you have an understanding of their situation.

Don’t be excited, be Calm: People tend to mirror your actions and behaviors. If you are calm, they tend to be calm. Try to stay calm and neutral when delivering bad news. Don’t react to your client’s frustration or anger. Listen more than you talk!

Why People Rent

There are a number of reasons why someone may either choose or be forced to rent, including sporadic or unpredictable income, a high debt-to-income ratio, a bankruptcy or foreclosure within the last six months, unpaid collection accounts or judgments, frequent relocating for employment or the inability to save enough money for a required down payment on the purchase of a home.

Maintenance Matters

As a homeowner, you will be responsible for any maintenance or repair issues that arise. This is a big consideration when choosing whether to rent or buy. When you rent, the property owner is responsible for repairs and it may not always be obvious that these issues can be very costly.

How To Know When It’s Time To Buy

If you have steady income with a good employment history, can provide a down payment of at least 5-10 percent of the purchase price and are current with all debts, it may be time to consider buying a home instead of renting. In some cases, the cost of rent may even exceed that of a typical mortgage payment.

When deciding to buy, job stability is a big factor. If your job does not require frequent relocation and you plan to live in the home for at least 5-10 years, you may want to consider making the purchase. If you need to relocate after that, you may have enough equity from the sale to use as a down payment on another home.

Home Buyer’s Checklist

If you can answer yes to the following questions, you may be ready for home ownership. Your REALTOR® can help you to find the perfect home based on your individual needs.

Have you been steadily employed for at least one year, but preferably two years?

Do you plan to live in the home long enough to build equity?

Can you provide a down payment and still have enough money left to pay for closing costs, utilities and home furnishings?

Are you current on all debts, including auto loans, credit cards, etc.?

In addition to any current debts that you may have, can you afford a monthly mortgage payment which will likely include property taxes and insurance?

Do you have the time to devote to shopping for a home and comparing interest rates from various lenders?

Have you checked your credit reports for inaccuracies and disputed anything that needs correction with each of the three major credit reporting agencies?

The decision to buy or rent is a very personal one that can only be determined after a careful evaluation of your situation. A REALTOR® can show you the perfect home and a lender can tell you whether or not you can afford it, but it’s up to you to make the choice as to whether or not you are ready to make the move.

Interest rates remain at an all-time low. According to the Freddie Mac survey dated February 9, 2012, the 30-year fixed-rate mortgage averaged a record low of 3.87%.  According to the Improving Markets Index, from First American Financial Corp. and the National Association of Home Builders, the number of improving housing markets rose to 76 from 41 in December of 2011. The median sales price of existing dwellings declined by 3.9% during 2011, returning to the level of prices last seen in 2002. There is an abundant supply of real estate including foreclosed homes and homes being sold as a “short-sale.” Many experts believe the housing market has reached or will shortly reach “the bottom” of the real estate market.

Real estate investments can give the investor an inflation hedge by providing possible capital appreciation while earning rental income. There are many options in real estate investment.  Commercial buildings and multifamily buildings are what come to mind most often, but if you are a first time real estate investor, you might want to consider residential housing.

It is important to discuss your options with a Real Estate Attorney.  Most real estate investors establish a limited liability company or limited partnership to reduce risk in the event of a ligation.  It is also extremely important for first time investors to find an experienced real estate agent who can guide them through the process. Obtaining an investment property is an entirely different experience from purchasing a primary residence.  The most significance difference is when a primary home is purchased you are emotionally connected to the home. With investment purchases you are simply looking for potential properties that will yield the greatest returns.

Real estate agents can assist you with finding the best investment properties by finding the most promising locations, navigating through the potential “pit-falls” of real estate investing, and assisting buyers with finding and managing a tenant after the purchase is completed.

Thomas Edison (1847-1931); American inventor

As humans, we seem to have an almost biological drive towards the path of least resistance. Chalk it up to days when food was scarce and the number of predators were high; if we could conserve energy and make it through the day, we’d do so every single time.

We have a lot of good instincts when it comes to self-preservation. Pain is a handy reminder that something is wrong, or we shouldn’t try something again. The “fight or flight” response is always there to spark us into action when we feel our lives are threatened. But at times, it’s best (and even necessary) to overcome our natural responses.

Usually when you contemplate a task–be it getting to the gym, calling a client with bad news, or avoiding that second piece of holiday pie–your mind does a quick cost/benefit analysis of the idea. The problem is, our brains usually look at the immediate short-term cost without an adequate assessment of the long-term gains. Or, our brain pushes the short term pleasure (sitting here) versus the projected costs (wind sprints on the treadmill). Pie is delicious. Watching people eat pie is no fun.

One of the most useful exercises I do to try and overcome “the short and easy path” is a little something I call “Move Toward Your Resistance.” It goes like this: Every time I think of something I should do, and my brain triggers that lazy little “I’d rather not” response, I immediately tackle some aspect of the task at hand. In other words, when I’d rather not do something, I recognize it as something I must do and coax myself to do it.

Here’s the thing: I always feel better after moving toward my resistance. By doing so, I break the loop of “I should do this / I’ll do it later / I wish this was done / I’ll do it later.”

As you plan for the year ahead, make a conscious effort to recognize when you feel resistance around an idea or task. Note the resistance and make an effort to move toward that which sounds unpleasant. It’s a great way to force yourself to attain higher levels of productivity, and the mental boost you’ll experience from knocking unpleasant tasks off the list is fantastic.

The only caveat: Don’t go walking into fires or wrestling mountain lions. Some instincts are worth obeying!

Source:  Scott Levitt / 12/2011