February 3, 2010 | by tjohannes
Before the 1970’s, household paint often contained lead. Although it is no longer sold, it can still post a serious danger. As lead paint ages, it can chip or crumble into dust. If you live in or own an older home, you need to know how to protect your family. Lead-based paint is a major source of lead poisoning for children and can also affect adults. In children, lead poisoning can cause irreversible brain damage and can impair mental functioning. It can retard mental and physical development and reduce attention span. In adults, it can cause irritability, poor muscle coordination, and nerve damage to the sense organs and nerves controlling the body. Lead poisoning may also cause problems with reproduction and may increase blood pressure. Young children, fetuses, infants, and adults with high blood pressure are the most vulnerable to the effects of lead
If your home was built before 1978, there is a very good chance that there is lead paint. If you are buying a home or even leasing a home, federal law requires a lead-based paint disclosure be supplied. It is possible that the current owner has no idea or if the home is for sale by bank they have no prior knowledge of the contents of the home. Because of the wide spread usage of lead paints before 1978, it is a good possibility that you will find evidence of lead paint. Home kits are available and while they will tell you if there is lead they are not a good predictor of hazard. A paint inspection can be requested with or without a risk assessment. The EPA recommends hiring a trained and certified testing professional who will us a XRF machine, lab tests of paint, dust and soil samples.
While paint isn’t the only source of possible lead contamination; it is the most common. If you think your family may have been exposed, it is important to get tested. Children who may have been exposed to lead-based paint should have a blood test to see if they have elevated blood levels.
January 28, 2010 | by tjohannes
 When shopping for a new home, especially if it is your first time, it can be intimidating when reviewing your different loan options and types. You will see and hear many different terms when dealing with lenders, agents and brokers. Below are some of the common terminology used so you can become familiar when going thru home buying process.
Annual Percentage Rate (APR): The APR for your home loan is an annual cost that includes the interest rate quoted by your mortgage company plus additional home loan costs such as origination fees and points. Required by law, this amount is to be disclosed to the homeowner by the lender under the federal Truth in Lending Act. This amount includes up-front costs paid to obtain the loan but does not include the PMI, title insurance, appraisal, and credit report.
Closing Costs: These are the expenses aside from the price of the property that are incurred by buyers and sellers when transferring ownership of a property. These costs include origination fees, property taxes, charges for title insurance, escrow costs, appraisal fees etc. Many times these costs are shared by the buyer and the seller.
Escrow: During the home loan process, a neutral third party known as Escrow holds documents and money (including earnest money deposits) for safekeeping until the real estate transaction is complete.
Points: The amount paid either to maintain or lower the interest rate charged. Each point is equal to one percent (1%) of the loan amount. This means that, to lower your interest rate by one point on a $300,000 mortgage, you’ll need to pay an additional $3,000 at closing.
Private Mortgage Insurance (PMI): If you are purchasing a home and you do not have a the traditional 20 percent down payment, lenders will require you to carry private mortgage insurance. Private mortgage insurance will usually require an initial premium payment and may require an additional monthly fee depending on your loan’s structure.
Title Insurance: This type of insurance protects both the buyer and the seller against legal issues that may arise with a home’s title. If a problem occurs, the title company pays the associated legal fees to correct the situation.
There are many different terms out there that will come up when you buy a home and apply for a loan. If you are ever confused or have any questions about a particular term or contract be sure to ask your realtor or real estate attorney for clarification before signing any legal documents.
January 21, 2010 | by tjohannes
 You might have heard a few stories on the news or possibly have known someone who found Radon gas in their home. Most people are unclear as to exactly what Radon is and unfortunately are unaware of just how dangerous it is. Radon is a colorless, odorless, radioactive gas that can pose a serious health risk if it becomes trapped under your house. Radon typically enters the home via underground crawl spaces, sump pumps, gaps in the basement and even the water supply. It can pollute your indoor air with its toxic vapors, and is held responsible for more than 20,000 lung-disease-related deaths every year. Radon is assumed to be present in millions of American homes and most homeowners have no idea.
In order to know if you have this dangerous gas in your home you will need to have your property tested by a professional. Many contractors are licensed or certified by state and/or local agencies. They will conduct diagnostic testing to determine if radon gas is at acceptable levels. If levels are dangerous, the contractor can install a radon reduction system. Ask the contractor for references documenting the results of past work in other homes. Make sure the company checks the house after the system is installed, to verify that it is reducing the radon levels.
Radon is a very serious and deadly gas. The U.S. Environmental Protection Agency (US EPA) and the Surgeon General’s Office have estimated that as many as 20,000 lung cancer deaths are caused each year by radon. Radon is the second leading cause of lung cancer. Radon-induced lung cancer costs the United States over $2 billion dollars per year in both direct and indirect health care costs.
If your home has high concentrations of radon there are ways to reduce it to acceptable levels. Most radon problems can be fixed by a do-it-yourselfer for less than $500. If you want or require the assistance of a professional you may wish to look at the list of certified radon mitigators for your state.
January 19, 2010 | by tjohannes
Charlotte Housing Prices Continue to Hold, Even Though Lower Prices Remain
While interest rates are at an all time low, Charlotte continues to see homes listed for sale longer and prices continue to remain low but stable. With area home prices down anywhere from 8 to 15% over where we were in 2008 and area home sales down by 20 to 26% our market is continuing to feel the effects of a down market.
One saving grace in an otherwise concerning market is that we continue to see buyers out looking to get the home buyer tax credit of $8,000 and the expanded tax credit of $6,500 that now includes home buyers that have owned a home over the last 5 years. This extension expires on June 30th and a home must be under contract by April 30th. The timing is providing our area’s sellers with more opportunity to sell in the winter months than we would see without it.
Our data is showing that more buyers are out looking online and visiting our listed homes in the first few weeks of 2010 compared to 2008 and 2009! This will prove positive for buyers and sellers as we continue to move through this cold winter! If you have additional questions regarding our market or want a more focused market update contact Tiffany Johannes at (704) 837-0010 or tiffany@husbt.com.
Median Price Per Square Foot Holds Steady For Most…
 
Days On The Market Indicator Is Up For All Price Points…
January 14, 2010 | by tjohannes
 Energy conservation is a big topic these days for homewoners. Cutting costs on utility bills as well as helping the environment are key benefits. While many homeowners are making changes and smarter choices, according to the U.S. Department of Energy, the typical U.S. family will spend in excess of $1,600 a year on energy costs. This amount could be lessened as a large portion of the energy used is wasted. There are a number of simple steps we can take to save energy, and money, in our homes.
Below are some simple energy saving tips that are easy, and cost little or no money at all to implement into a new energy efficient home for you and your family.
- Heating and cooling your home uses more energy and drains more energy dollars than any other system in your home. Typically, 43% of your utility bill goes for heating and cooling. Install a programmable thermostat that is compatible with your heating and cooling system to help keep the settings low in the winter and a little higher in the warmer months to help conserve.
- To help make your heating and cooling systems more efficient, be sure to clean or replace filters once a month or as needed.
- Use compact fluorescent light bulbs.
- Air dry dishes instead of using your dishwasher’s drying cycle.
- Turn off your computer and monitor when not in use.
- Plug home electronics, such as TVs and DVD players, into power strips; turn the power strips off when the equipment is not in use (TVs and DVDs in standby mode still use several watts of power).
- Lower the thermostat on your hot water heater to 120° F.
- Wash only full loads of dishes and clothes.
- Look for the ENERGY STAR® label on home appliances and products. ENERGY STAR® products meet strict efficiency guidelines set by the U.S. Environmental Protection Agency and the U.S. Department of Energy.
This is the first step in making your home “energy efficient” and will also save you money. For more information on any of the tips listed here, or to learn how you can cut your energy use up to 25%, visit the U.S. Department of Energy’s Energy Efficiency and Renewable Energy website for consumer tips.
January 7, 2010 | by tjohannes
 During the process of purchasing a home you will need to enter into escrow. Many first time homebuyers have many questions about the escrow process.
What exactly is an escrow?
An escrow is an arrangement in which a disinterested third party, called a escrow holder, holds legal documents and funds on behalf of a buyer and seller, and distributes them according to the buyer’s and seller’s instructions. The escrow becomes the depository for all monies, instructions and documents pertaining to the purchase of your home.
How does the escrow process work?
The escrow is a depository for all monies, instructions and documents necessary for the purchase of the home, including funds for the down payment, lender’s funds and documents for the new loan. The duties of an escrow holder include: following the instructions given by the principals and parties to the transaction in a timely manner; handling the funds and/or documents in accordance with instructions; paying all bills as authorized; closing the escrow only when all terms and conditions have been met; and, distributing the funds in accordance with instructions.
Do I need documentation?
Receipt of your deposit is generally included in your copy of your purchase contract. Your funds will then be deposited in your separate escrow or trust account and processed through your local bank.
What information will I have to provide?
Typically you will be asked to complete a statement of identity as part of the necessary paperwork. Because many people have the same name, the statement of identity is pucused to identify the specific person in the transaction through such information as date of birth, social security number, etc. This information is kept confidential.
How long is the escrow?
The length of an escrow is determined by the terms of the purchase agreement and can range from a few days to several months. Typically an escrow often takes an average time of 30 to 45 days.
When does the escrow process end?
The escrow process ends when you actually close on the home, during the closing procedure. This is when all funds are transferred accordingly, when all documents are signed, and when you get the keys to your new home.
December 31, 2009 | by tjohannes
 During the process of purchasing a home, you will most likely be asked to make what is called a good faith deposit or earnest money deposit. A good faith deposit lets the buyer know that you are serious and that you intend to fulfill the terms of their agreement. It is important to keep in mind that these deposits however should not to be confused with a down payment.
How much do you need to deposit?
Many different factors will affect the amount of money that is required for the deposit. If a property generates a lot of interest, a buyer may make a larger deposit to convince the seller that their offer is stronger than the others. Typically the amount requested is anywhere from 1 to 3 percent of the sales price but, there is no set requirement. Generally the larger the deposit the more the seller will take your offer seriously.
Who holds the money?
Once the buyer and seller agree to the amount of the good faith deposit, the money should be deposited with a third party and held “in trust.” Potential third parties include escrow and title insurance companies as well as an attorney if your state requires their involvement or you choose to use one. Never give an earnest money deposit to the seller. Be sure to verify that the third party will deposit the funds into a separately maintained trust account and always obtain a receipt.
Is the money refundable?
If the buyer and the seller cannot come to terms on the sale then the money will be refunded. It is always a good idea to consult a real estate attorney who can help ensure that your offer is written in a manner that protects your rights to the deposit. Always review your purchase agreement as well as to the specifics of the refund of the deposit. Often, third party fees are also paid out of earnest money deposits. For example, if an appraisal has been completed on the property then the appraisal fee is going to have to be paid before money can be released to either of the parties.
The basic idea of a good faith deposit is be an type of insurance for the seller. It is important to remember that the escrow process can take 30 to 60 days, and during that time their property is off the market. The good faith deposit essentially compensates the seller for this time in the event the buyer is unable to follow through on the purchase of the property. This deposit helps reassure the seller you are serious about buying their home.
December 24, 2009 | by tjohannes
 Moving to a new home can be extremely stressful especially if you have children. It is important to be aware of the things that may be a concern to your children when making a move. The best plan of action is to prepare them for the move is to get them involved. By staying involved in the process, they’ll feel they’re part of the transition and more in control of the situation. There are some things you can do to help your children make the move smoothly, below are some tips that can help.
- Prepare them for the move months in advance. Be honest with your children about when, where and how you will make the move as well as how it will affect them. Changes to schools, different neighborhoods mean distance from established friendships and familiar areas. For younger children books or movies on the subject can be very helpful.
- Scope out the neighborhood before you move. Are there other children your child can play with? If not, where can your child go to meet friends? Is there a community center or club such as 4-H, Scouts, or Campfire nearby?
- Arrange to visit the school before enrolling your child. Be sure to point out familiar places like the school cafeteria, library, and restrooms. Kids worry about being able to find their way around.
- Involve your child by taking pictures of your new home, and community and encourage your child to share them with others. Check out the new neighhborhood before you move with your child. Are there other children your child can play with? Locate local community centers or club such as 4-H, Scouts and such. If your child is going to a new school, arrange to visit the school before enrolling your child. Children feel more comfortable if they know where they are going and can have any concerns addressed first.
- Be understanding and patient. It is normal to for children to feel anxious, sad and it make take several months to adjust. Be sure to try to keep routines and other daily living habits as normal as possible. Avoid any unnecessary changes that will add to the stress.
December 17, 2009 | by tjohannes
 Although the current real estate market is very favorable for buyers with rock bottom prices and historically low rates, a common question I hear from potential home buyers is whether or not they should continue to rent or make the plunge and buy a home. The best answer to this question really depends on you–your situation and your goals for the future.
I tell potential buyers to ask themselves themselves these questions: Do you think you’re ready to move into the world of homeownership? Does your job require you to relocate frequently? Are you ready to “settle down” and raise a family? Not sure what you want to do yet?
As a real estate professional, I do know that buying a home has real advantages in today’s market: Realtor.com reports that housing affordability is the best it’s been in nearly 30 years. Right now buyers can cash in on hefty price drops and rock-bottom mortgage interest rates–and many people don’t realize just how great the market is!
So should you rent or should you buy? The Our Family Place Home Buyer’s Information Center lists some of the pros and cons noted below, and I’ve added some of my own:
Advantages of buying a home:
* You gain equity in your home through mortgage payments.
* Your home could be one of the best long-term investments you will ever make.
* You can decorate and remodel the way you want.
* You get homeowner tax breaks.
* You build your credit standing.
* You can improve your property using home equity loans.
* You gain independence and pride as a homeowner.
* You can transfer your property through your will.
Disadvantages Of Buying A Home:
* Your costs are variable.
* Your equity may change due to market conditions.
* You usually must sell your home to move.
* You handle maintenance and upkeep.
* You usually need more cash to get in.
Renting Advantages:
* Your costs are fixed for the term of your rental.
* You don’t lose equity.
* You can move at the end of your lease term.
* You have fewer maintenance worries.
* You need less cash to get in.
Renting Disadvantages:
* You never get equity.
* You can’t always decorate or remodel the way you want.
* You don’t get any tax breaks.
* Your lease is for a limited time period determined by your landlord.
* Your rent may go up at the end of your lease and other terms may change.
* Your landlord may not fix problems or invest in routine property maintenance.
* You normally can’t transfer your lease without the landlord’s OK.
* You may face eviction if you and your landlord have a dispute.
That’s a lot to think about. To put these pros and cons into dollar terms, try out this rent v. buy calculator offered by the Federal Home Loan Mortgage Insurance Corporation (better known as Freddie Mac). Don’t be shy–check out different scenarios and see what they mean for your finances.
Yes, there are lots of variables to consider, and you’ll need to do your homework to decide what’s right for you. Working with a qualified real estate professional who can provide current market advice for your area can help.
December 10, 2009 | by tjohannes
 Once you begin the process of looking for a loan you should be aware there are many different types of options available. However, there are only two categories of mortgages: conventional and governmental.
Governmental loans: These types of loans are mortgage programs sponsored by a government agency. Such programs include: the Federal Housing Administration (FHA), the Veteran’s Administration (VA) for veterans, and the Rural Housing Service (RHS) or Farmers Home Administration (FmHA) for those living in rural areas. Keep in mind that these agencies don’t actually loan homebuyers the money; they only guarantee loans granted by lenders who participate in the program. Conventional loans are loans that are not guaranteed by the government.
There are many different types of loans available and below are some of the most common.
One of the most common types of mortgages are the Fixed Rate Mortgage. With this type of loan the interest rate stays the same and is a great option for those homebuyers who plan to stay in their home for a long period of time and who like to know what their monthly payment will be each month.
The opposite of a fixed rate mortgage is the Adjustable Rate Mortgage (ARM). This type of loan has an adjustable interest rate that changes over the life of the loan. This type of a loan is good for homebuyers who don’t plan on staying in their home for a short period of time. With these types of loans the interest rate in the beginning is usually very low for the the first year or so. But the downside of the these types of loans is that they can be risky. If interest rates raise to high levels your monthly payments will increase, sometimes significantly.
Interest-Only Mortgage. This type of loan is good in the fact that for the first 10 years of your loan, you only pay the interest accrued. Then after the introductory phase is over, the balance is amortized over the remaining term of the loan. This type of loan benefits those homebuyers who want a low monthly payment while they improve their finanical situation. Keep in mind that after the 10 year period is over the original loan balance will not have decreased, meaning that if your financial situation does not increase you could have problems making the mortgage payments.
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