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Home Base: News & Issue Briefs for Homeowners

Banks Still Want Buyers

Some would-be buyers in today’s market might think that mortgages just aren’t available to them due to the current tighter lending climate, but buyers who are reasonable credit risks have more financing options than they might think.

For starters, Federal Housing Administration (FHA) loans are back. According to data from the national Association of Realtors® (NAR), FHA loan originations saw nearly a 60 percent increase in 2007, and in 2008, the program’s loan limit has been increased to a maximum of $729,750.

In addition, tax law changes have made private mortgage insurance (PMI) more attractive. PMI premiums have been deductible on federal taxes since 2006, and last year, Congress enacted a three-year extension on PMI deductibility. This helps buyers who would otherwise be financing with piggyback loans, which are harder to get in today’s market.

 

Outdoor Spaces Light Up Buyers’ Faces

Today’s home buyers place a premium on outdoor spaces. According to the 2007 NAR Profile of Buyers’ Home Features Preferences, half of all buyers think a backyard or play area is very important, one-third want a patio or porch, and more than one in five are looking for a deck.

But not all backyards are created equal. Factors like style – whether the deck or patio is compatible with the home’s architecture – size, and placement can all significantly affect value in the buyer’s eye.

 

In Real Estate They Trust

Many of today’s consumers have long-term confidence in the housing market, according to recent research. Fifty-nine percent of those polled in a recent Associated Press-AOL Money & Finance survey said that now is a good time to buy a home, and nearly 54 percent of people surveyed in a recent Reuters/Zogby index agree. The AP-AOL poll yielded two other interesting results:

·         40 percent think that housing prices will rise soon.

·         35 percent think the prices of homes in their neighborhood are about right.

Asheville Foreclosures, REO vs. HUD

Foreclosures: REO vs HUD

What does REO mean anyway? How is this different from the typical buying process? When considering a REO property - as with all properties - it is important to be well informed so you're well aware of the process from the first handshake through the closing.

Q. What does REO mean?
A. REO is an acronym for Real Estate Owned. REO is a financial industry term referring to properties that an institution has foreclosed upon and now owns.

A. Only offers that have been submitted through the listing agent on your own or with a buyer's agent are considered and possibly accepted. Properties are priced in accordance with the local market and expect to sell at or near market value. As with any property listing, the asking price takes into account its condition and other key market indicators then compares them to the current market.

Q. After submitting my offer, how long should it take to receive a response?
A.  Either an offer acceptance or counter offer is provided to the listing agent within 48 hours of receiving the offer from the listing agent. The listing agent will inform your buyer's agent of the response or you directly, if you do not have representation. If an offer is submitted during the weekend, it will be reviewed on the next business day.

Q. What if the property requires repairs, either minor or substantial?
A. Make sure that you or your buyer's agent speak with the listing agent to ensure that you understand the terms of the listing clearly. In most cases, the property will be offered in an "as is" condition, with the list price reflecting its condition. When purchasing a property "as is", ensure you've done your homework to clearly understand the structural and mechanical condition of the building, HVAC, internal plumbing, the well and septic system. Depending upon the condition of these components of the home, the types of financing available may be impacted. However, there are special loan products available that will lend on the "after improved" value of the home thereby making it possible to purchase even the most neglected property and to make it the home of your dreams.

 

HOW TO BUY A HUD HOME

What is a "HUD Home"?
A HUD Home is a property that was previously financed with an FHA insured mortgage and where the owner has defaulted on the loan. The lender, then, forecloses on the home. FHA pays the lender what is owed; and the lender transfers ownership of the home to FHA/HUD. Then, HUD sells it at market value.

Who can buy a HUD Home? 
Anyone who has the cash or can qualify for a mortgage can buy a HUD Home.

Is it true I can get a HUD Home for a dollar?
No. HUD sells homes at market value - that means that the price is set based on the price of similar homes sold in the area.

If the HUD Home needs repairs, will HUD make them?
HUD Homes are sold "as-is," without warranty. That means that HUD will not pay to correct any problems. Buyers are encouraged to get the home professionally inspected.
Houses built before 1977 may have lead based paint, which can cause harm to your family; so be sure to read about this hazard and about what you would need to do to correct it.

How do I buy a HUD home?
HUD Homes are sold through Participating Real Estate Agents.
Start by finding a HUD participating real estate agent. Your real estate agent must submit your bid for you. The real estate agent's commissions are usually paid by HUD.

How can I find out what HUD Homes are for sale?
Right here! The list of HUD Homes for sale is updated daily. If you see one that interests you, contact one of the HUD participating real estate agents in your area. They can help you from there.

How can I get a loan to buy a HUD Home?
HUD does not make loans directly. You can contact a HUD approved lender, who will take you through the steps and actually make the loan.

Can I buy a HUD Home as an investment?
Most HUD Homes are initially offered on a priority basis to owner occupant purchasers (people who are buying the home as their primary residence). Following the priority period, unsold properties are then available to all buyers, including investors.

Have Expert Representation On Your Side When Navigating Through These Complex Purchases. Our company has agents specializing in:

Short Sales/Pre-foreclosures
Foreclosures
REO's

Advantages of working a REALTOR®

  • Strict code of ethics. As a member of the NATIONAL ASSOCIATION OF REALTORS®, every REALTOR adheres to a strict code of ethics that embodies honesty, integrity and commitment. This long-standing symbol of pride and distinction ensures REALTORS live this promise to protect buyers and sellers.
  • Professional advice and representation. Whether you’re buying or selling a home, a REALTOR helps you navigate the transaction properly and safely. Count on this trained professional to guide you through what seems like a complicated process, especially in a heated real estate market.
  • Marketing expertise. It’s comforting to know that REALTORS have a handle on the market — house-by-house, street-by-street — with access to up-to-date information that the Internet cannot match.
  • Buyer’s advantage. A REALTOR who understands your property and location needs can help you the most. REALTORS reach out to their network to gather first-hand information on upcoming homes for sale. Clearly, working with a REALTOR can give you an advantage — as the buyer positioned to make an effective offer on a home.
  • Seller’s advantage. It’s wise to seek a REALTOR’s guidance and experience to sell your home. Going it alone is a huge undertaking, especially when it comes to accurately pricing your home and bringing in qualified buyers. It’s a fact that REALTORS have experience to price your home so it can sell for up to 16%1 more than selling it yourself.

Top Four Home Improvement Myths

For people who are holding off selling their home to complete home improvements and maximize their return, here are some things to keep in mind...
Myth #1: Any remodel is a good one.
You may think any home improvement is a good one, but not all improvements are created equal. For example, one homeowner had a concert hall of his very own built in his ranch-style home. Unless the next homeowner is an opera singer, he may not want a balcony in the den. When making a renovation that leans toward your personal taste and lifestyle, keep in mind you will probably be selling your home one day and this will be come a very costly re-do to get it market ready. The best place to spend your remodeling dollar is in updating bathrooms and kitchens with neutral colors and finishes that will appeal to a wide range of people. Take an honest look at your kitchen and bathroom cabinets. You may not need to replace them, but refinishing them or painting them with an off white paint will go a long way. Kitchen flooring is very important to home buyers.Worn looking, dated patterns or colors... if it needs new vinyl, do it - no question. It's inexpensive and there are some very tastful choices on the market. If you have laminate countertops, same suggestions apply. If it just needs a simple repair on an end there are kits out there to do-it-yourself.
Myth #2: I can do it myself.
You may be convinced that you can do a remodel just as well as a contractor, but news flash! You can't. You may just have an unrealistic idea of your skill level for remodeling. Doing it yourself can sometimes save money, but know your limits. Don't be afraid to ask for help and even take a class before you get started. The value of knowledge will bring great returns. Chances are you probably don't even know enough to ask the right questions yet. Home improvement stores offer great short classes for the weekend remodeler. Certain low-risk projects are simple to tackle on your own, but there are others (like electrical work) for which you need a professional. If you are planning a project that requires demolition before you begin, like re-tiling a bathroom wall or other surface, remember you don't know what is behind the existing tile. Be prepared for demolition as well as repair work that may be necessary.
Myth #3: Pools add value.
Many people think adding a swimming pool or hot tub is a sure seller. That's not always true. Location is extremely important, if every day is summer in your climate that's one thing, but if you live in a cooler climate like ours it could be a different story. For instance, a pool in our mountain area is seen more as a liability and not a strong selling feature to most because of the limited time of pool season. It can be a lot of work to maintain and if the potential buyer does not have children it's usually not worth it. You should think long and hard befor investing in the high cost of a pool, it could end up being a big money pit. Hot tubs are great but can fall into the same category as a pool - maintenance headache instead of a relaxing soak. If you already have either of these features in your home, when you're ready to sell, make sure they look beyond immaculate. Covers should not be faded and show wear 'n tear. Don't let leaves or dirty water gather, even a little, because it makes people think "high maintenance". You may want to even include one year of free pool maintenace with your listing.
Myth #4: Follow the latest design trends.
Many homeowners think it's a good idea to follow the latest design trends. Not true. For instance, peach wallpaper went out in the '80s with many other design features that show up in homes still today. Outdated features must go before a house is put on the market or it can really cost you.If a home feels dated a buyer is thinking of the money they will have to invest to get it up to speed. Important: Granite counters could be shag carpet of the future and not everyone wants stainless steel appliances. When choosing from the bountiful array of design schemes being offered, stick with simple, neutral paint (not wallpaper) to liven up a room.Rooms filled with natural light never go out of style so let go of the days of heavy drapes and use light colored sheers to allow the room to appear bigger. Also, adding a mirror to the opposite side of the room from the window doubles the perception of light and makes a room feel even larger. You can't go wrong with neutrals - they are timeless, but that doesn't necessarily mean boring beige. Choose colors that have richness in tone/hue, like light buttery yellows and chocolatey browns, but not too dark. Use your pillows, art and accessories to give you the color punch that gives your home personality, then you can always take that personality with you to your next home.

 

Save On Costly Home Energy Bills

Your Home

Image: house and treeHomeowners and renters know saving energy means saving money without sacrificing comfort. There are many things you can do to save energy in your current home, or when designing and building a new energy-efficient house. Whether you choose no/low cost improvements or invest in long-term energy saving strategies, the following sites can help you choose what is best for your energy picture.

Tools to Assess Your Home's Energy Use

Heating Your Home

Save Energy and Money in Your Current Home

Save Energy and Money on Your  New Home Construction

More Information

 

Bad Credit & Home Refinance

Bad Credit and Home Refinance
(ARA) - Mortgage rates are still low, and it seems like everyone's jumping on the refinance bandwagon these days.  But is it really a good idea for people with bad credit?

Well, if your credit was better when you took out the original loan and helped you qualify for a low rate, refinancing when your credit is worse makes little sense.  If your credit is better now, but still not great, you should analyze how much you could really save by refinancing now as opposed to waiting until you have time to improve your credit even more.  If your credit is at about the same level now as it was originally, trends in the market will have more to do with how much you can or cannot save by refinancing your home.  

Of course there are other considerations, such as whether your current home loan requires you to pay mortgage insurance that refinancing could alleviate; the type of loan you have; an introductory "pre-pay" period that may be about to expire; and additional factors that your loan officer or financial planner can explain.
   
Once you decide that refinancing makes sense for you, you have two options: try to repair your credit before applying for a loan, or apply for a loan right away without attempting any credit improvements. If you would like to try to repair your credit first, be prepared to spend some money and some time paying down your debts.    
   
If you decide to repair your credit on your own, you'll want to be careful about making payments on collections accounts that you haven't paid on in a few years, in order to avoid bringing them to the forefront of your credit.  Your best bet with credit cards is to pay them all down (but not entirely off), and not to close any of them. Paying off an account sends a message to the credit reporting agency that you're not comfortable carrying a balance, and cancelling a credit card sends an even clearer message that you believe yourself to be in trouble with credit.  
   
As you can see, going about repairing your credit score yourself can be tricky. You may want to enlist the help of a financial planner, a loan officer who offers credit advice, or even a credit counseling agency. These professionals can guide you through the credit repair process and help you maximize the score you receive for the amount of money you're able to spend.
   
If you choose to apply for the loan right away, you'll have to consult with what is known as a B/C lender. These lenders specialize in working with people who have bruised credit. The programs they offer are less stringent in their requirements for approval of the loan. You'll pay more in interest for a B/C loan to offset the implied chance the lender is taking in working with someone who's had credit trouble in the past, but the advantage is being able to apply and be approved for your loan without spending time and money raising your credit score.
   
You must make all these decisions based on how much you can save by acting now or waiting until later. Refinancing with a low credit score is not anyone's first choice, but it may make sense for you if other factors would cost you even more before you have time to bring your credit score up.  A financial planner or loan officer can advise you, but the final decision must be yours.

To get a free refinance quote  log on to www.bills.com.

Copyright © 2006, ARA Content

Price Reduced on 36 Meandering Trail in West Asheville

West Asheville, Asheville  -  Announcing a price reduction on 36 Meandering Trail, a 2,792 sq. ft., 3 bath, 3 bdrm 2 story. Now MLS® $309,900 - Large Home For The $$$.

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Open House in East Asheville on Sunday

April 2008
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Oakley, Asheville  -  We invite everyone to visit our open house at 227 Merchant Street on April 20 from 1:00 PM to 4:00PM. This is a fantasic house and you must see it to appreciate the quality and fabulous location convenient to everything!! Priced to sell, lots of home for the money. Call for details.

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Housing Down turn Hyped?

Bigger Fall After a Bigger Gain

The stream of stories about housing's downturn continue in the media. But I can't stress the reality enough: not all housing markets have suffered to the same extent. We are all well aware of the current weak housing market regions: California, Florida, Arizona, Nevada, and the D.C. region. We should also be aware that these areas were also the places where prices increased the most during the housing boom. Current price declines of 5% to 20% are not as frightening for those who bought a home for the long-term.


Long-term Housing Equity
For example, based on NAR price data, a typical homeowner who bought a property in 2000 would be have accumulated $123,000 in Phoenix, $150,100 in Orlando, $242,800 in Riverside-San Bernardino, and $252,000 in the Washington, D.C. metro region. That does not even include any additional equity that homeowner acquired from paying down mortgage debt from his/her normal amortizing monthly payments. The equity position would be less for those homeowners who took out home equity loans and who took cash-out refinances. (I would personally advise against tapping into housing equity unless it is for investment reasons - like paying for tuition or to open a business).


Data from the Federal Reserve further affirms the long-term housing equity accumulation for homeowners even with recent declines in home prices. Homeowners' net housing equity (home value minus mortgage debt) rose from $6.2 trillion to $9.6 trillion from 2000 to 2007.

No Price Decline in Many Parts of the Country
And as I say, in many parts of the country, there has not been a price decline. NAR data indicate that essentially half of the 150 metro markets studied in the U.S. experienced a price increase throughout the past seven years. Data from the Office of Federal Housing Enterprise Oversight (OFHEO) also show that close to 70 percent of the 287 markets the agency tracks had price increases throughout those same seven years. In rural America, the price declines are even more rare.


Because of different price measurements, the gain could also be different depending on how the price statistics are calculated. Only when the homeowner him or herself sells their home - i.e., has a actual price against which to measure - would they know for sure how much equity was accumulated or lost. The Case-Shiller home price index, by contrast, which looks at a very narrow 20 markets, finds most markets experienced price declines in 2007. Interestingly though, if one uses the Case-Shiller national aggregate price index, the housing equity gains are much higher than under other price data. From 2000 to 2007, a typical U.S. homeowner would have accumulated $103,400 according to Case-Shiller rather than the $75,400 equity gain as is implied by the NAR data.

The Case-Shiller price gain appears outsized and not necessarily what most people would be saying. Perhaps, the methodology of the Case-Shiller price index brings volatile swings that distort underlying trends. So the recent decline in the Case-Shiller price measurement may not be due completely to a decline in home prices but rather to a downward adjustment after illusory high price gains it showed during the market boom. These illusory price gains also fooled Wall Street and global capital providers into believing that the underlying housing collateral was worth more than it actually was. Ask Bear Stearns if it would have made a similar bet if it knew that home values were not as high as indicated by Case-Shiller.

Sure, home prices have fallen measurably in some Florida and California markets - as reflected in both Case-Shiller and NAR data. But broadly speaking the decline in the Case-Shiller price measurement may be just a downward adjustment to compensate for unrealistically strong price gains it recorded during the housing market boom.

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Price Reduced on 227 Merchant Street in Oakley

Oakley, Asheville  -  Announcing a price reduction on 227 Merchant Street, a 1,702 sq. ft., 2 bath, 3 bdrm 2 story "Great Modern Floor Plan". Now MLS® $229,995 - Immaculate Only 3 yrs Old.

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The Importance Of Interest Rate Drops

Why Buyers Should Pay Attention To Interest Rates Drops Just As Much As Price.

By: Ki Gray

Real Estate buyers are usually highly focused on the purchase price of a property. This is a legitimate concern. The purchase price is one of the most important considerations in a real estate transaction. But at the same time home buyers too frequently treat interest rates as a secondary concern. Many buyers will stress over $300 or $400 in negotiations over purchase price. But when told that interest rates dropped half a point, home buyers will often respond with a shrug.

This is frequently because it is easy to understand the difference between paying 200k and 195k for a house. But it's harder to appreciate the difference between an interest rate of 6.5% and 6.0% for a house. But interest rates can have a large influence on mortgage payments. Using a mortgage calculator first let's look at the difference between the mortgage on a 200k and the mortgage on a 195k house assuming a 6.5 percent interest rate.

200k  (6.5%)  Mortgage  $1264.13 per month
195k  (6.5%)  Mortgage  $1232.53 per month

The difference ends up being $31.60 a month.

Now let's look at the difference between an interest rate of 6.5% and 6.0% on a 200k house.

200k  (6.5%)  Mortgage  1264.13 per month
200k  (6.0%)  Mortgage  1199.10 per month

The difference ends up being $65.03 a month or $780.36 a year. A simple half point drop lowered the mortgage payment by 5.4 percent.

Interest rate changes are not that uncommon. We wrote a tool that graphs mortgage rates over time based on the interest rates provided by Freddie Mac. In the middle of 2007 we saw interest rates of 6.7%. At the beginning of 2008, interest rates were down to 5.75%. What is a little more interesting is when we switch the toggle on our tool from the interest rate to the mortgage on a 200k house based on the interest rate for that date http://www.escapesomewhere.com/blogim/mortgage_rates_broker.jpg. From the middle of 2007 to the beginning of 2008, we saw a drop in the monthly mortgage payment on a 200k house drop from $1290 to $1170, a difference of 9.3 percent. This is why when buyers say they are waiting for prices to drop 5%, it might be a good idea to tell them that the actual mortgage they would get on a house has already dropped by more than 5 percent.

In light of all the mortgage issues over the last few years, it highlights why home buyers should shop around for interest rates. All too frequently home buyers will go with the first mortgage person they meet under the assumption that everyone has roughly the same rates and that a half point isn't really that big of a difference. As we have seen above, a half point can make a significant difference in someone's mortgage payment.

In summary, home buyers should still focus on price because it will always be an important part of the real estate transaction. But if home buyers start to look at interest rates more closely, they will end up with more success in their real estate purchases and lower mortgage payments.

10 Must Do Home Repairs Before Selling

10 Must Do Repairs Before Selling

When you put a home up for sale these days, you're facing stiff competition. In most parts of the country, buyers are faced with huge numbers of homes for sale. Before asking strangers to trade hundreds of thousands of their hard-earned dollars for your little palace, make all the little repairs you've always meant to do but never had the time for.

These 10 basic repairs will help prepare your house for a buyer's white-glove inspection:

1. Repair sagging screen doors and other entry red flags.

The entrance to your home is the key to first impressions. Carolyn Brake, a home-staging expert in Aurora, Colo., near Denver, prepares about 10 to 12 homes a week for market and she stresses the importance of creating a great impression right off the bat. "We're not so much selling the house as we're selling the experience of living in this house," Brake says. Buyers will be alert to signs of neglect or deferred maintenance, since they want to avoid expensive hidden problems down the road.

Make sure everything at the entrance is in working order. If the screen door is sagging, you'll probably have to install a new one, as aging aluminum parts often become too bent or broken to repair, says Charlie Hudson, a remodeling professional and owner of Hudson Remodeling, in Lynden, Wash. But first, try replacing any missing or corroded hinge screws and tightening the rest.

Patrol the perimeter of your home, inspecting it with the critical eye of a stranger, advises Katherine Carroll, agent with Century 21 Mountain Lifestyles in Weaverville, N.C. Clear dead plants from flower beds, clip dead blossoms and stems, rake and haul the yard waste far away.

A fresh coast of paint on the front door goes miles toward establishing a great first impression. What color? Drive around for some inspiration and to see what colors prevail in your community. In some towns, a bright red door, or a deep plum, looks great. In others, it'll seem over the top. Forest green, navy blue and black can be great door colors. The front door need not match the exterior colors of your house and trim, only look good alongside them.


2. Spiff up the roof.

Missing shingles and hanging gutters broadcast a loud, scary signal to potential buyers. "You want the house to look as presentable and nonproblematic as possible," says Cathy Cowan, an agent with Windermere Real Estate Co. in Seattle. "There's a great deal of fear when people go out to look at property. You want them to be able to focus on 'Where does my bed go?' and 'Can we live here?' rather than, 'Oh my God, there's a problem with the roof.'"

Get a roofer to replace any missing or broken shingles or roofing tiles. Moss growing on the roof signals neglect, so it's important to get it cleaned off. Ask a roofing expert to remove moss or to recommend someone who can. Roofing professionals may suggest treating the surface of your roof with a chemical to kill moss or they may recommend installing zinc strips on the roof ridge. Water running over the zinc washes minute amounts of zinc carbonate over the roof, killing algae and moss, according to Z-Stop, which manufactures the strips. When hiring someone to work on your roof, it's crucial to check their recommendations. Amateurs can damage your roof with the careless use of a high-pressure power washer.

3. Clear and caulk gutters.

On a dry day, climb up on a ladder and clear all the debris out of the gutters so water can flow freely. While you're up there, recaulk the gutter end caps, advises Hudson. Seamless gutters are finished at the ends with a cap that's crimped and caulked. Aging caulk allows leaks to drain water down your home's siding.

Get started by drying the clean gutter; the drier the aluminum, the better caulk will bond to its surface, says Hudson. He recommends using flexible butyl caulk made for outdoor conditions. Its color doesn't matter, since you're caulking inside the gutter. Squeeze out a generous amount and use your finger to smear the stuff around inside the gutter cap seams. Don't worry about appearances, since no one will see your work.

4. Patch nail holes and repaint.

Moving inside the house, you'll want to patch up nail holes in the walls. Ask at a hardware store for lightweight putty. Apply it with a putty knife and fill in each hole, scraping the excess off the wall. Following directions on the package, wait for it to dry. Then sand the putty until it's smooth and flush with the wall. Paint the repaired spots with primer. Call a handyman for anything bigger than a nail hole, as it's not easy to blend bigger repairs into the wall and obvious patches telegraph the message, "I'm hiding something," says Hudson. Repaint the entire wall -- you're unlikely to be able to hide a touched-up patch, otherwise -- from one corner to the next.

5. Divorce your smoker and ship kitty to Siberia.

All right, just kidding. Sort of. The thing is, smells are a serious deal killer. When strangers enter a home, the first thing they notice is the smell. Don't even try hiding behind scented candles, potpourri and plug-in room fragrances. Buyers, ever suspicious to problems, catch a whiff of those and conclude that you're hiding something.

In the kitchen and bathrooms, deep clean with bleach, then regrout tiles and recaulk cracks between sinks, tubs, toilets, counters and floors to seal out the moisture that encourages the growth of smelly mold, mildew and bacteria.

If you've had smokers in the house, you've got extra work to do. To rid walls of smoke and nicotine film, some experts suggest washing the walls with cleaners using an alkaline builder, such as ammonia, and a glycol solvent (found at paint stores). Brake recommends painting an undercoat of Kilz primer onto clean, dry walls to seal in nicotine smells. Finish the job with a fresh coat of paint and change the furnace filter to further freshen the air in the house.

Then, "send smokers down the street," says Brake. She's not kidding: Ban smoking, even in the garden, because the smell clings to porches, decks and clothing. Gardens lose their appeal when littered with cigarette butts. If possible, board your cat off-premises while you're showing your home; at minimum, clean the litter box daily.

6. Replace damaged vinyl flooring.

Inspect the vinyl flooring in your bathrooms. If it has discolored spots or is loose, moisture may be damaging the floor. You'll probably want a professional to lay the actual flooring, which could cost $400 or more. But you can save as much as half of the cost by preparing the floor yourself.

Remove the baseboards by pulling them away from the walls with a small pry bar. Next, pull up the flooring using a larger pry bar -- it will be glued and nailed or stapled. Also remove the next layer, called the underlayment, made of particleboard or layered plywood.

While your new floor is being installed, you can sand and repaint the baseboards so the whole job will look terrific when it's finished. Another good choice for flooring material is linoleum, a green product made from linseed oil, pine resin, sawdust and other natural binders. It can add 30% or 40% to the cost of a $400 job.

7. Reseal the toilet.

Not all flooring installers will remove and reinstall the toilet, something that must be done to replace the floor. Pulling the toilet yourself can save you money. With plumbers' fees running about $85 an hour (with a minimum hour and a half charge for a house call), you could save yourself $200 or more (for two trips) by pulling the toilet yourself.

Even if you aren't replacing flooring, the seals may need replacing. How to tell? If the toilet rocks when someone sits down, or if the floor at the base is moist or discolored, the seal could be broken. Corroded nuts that hold the toilet to the floor are another sign that the toilet needs to be reinstalled. Before you begin, shut off the water supply at the faucet behind the toilet. Flush the toilet, holding down the handle to drain as much water as possible. Use a wrench to unscrew the bolts holding the toilet to the floor.

Don't move the toilet alone. Get a friend to help, because toilets are heavy and cumbersome, and the tanks are easily cracked. Prepare a bed of old cushions or towels in the bathtub and set the toilet there gently so any drips drain into the tub. At a hardware store, find two wax toilet seals (also called gaskets, about $3 apiece). One seal is conformed to fit into the sewer pipe; the second is a plain wax circle that you'll stack directly on top of the first. (Also at the store, purchase two new bolts -- about $1.50 each.) Back home, remove the old gaskets. Fit the new shaped gasket into the mouth of the sewer pipe first; put the second seal directly over it so the toilet fits into the space with no gaps. Lower the toilet over the seals. Screw in the new bolts, tighten them, reconnect the water supply and caulk the base of the toilet.

8. Stop faucet drips.

A dripping faucet calls attention to itself, and it's not hard to fix. Shut off the water supply to the faucets by turning the valves under the sink to the right. Then, test the faucet to make sure you've shut the water off completely. While you're looking under the sink, check for moisture on the wall around the valves and on the floor of the sink cabinet. Also check the supply lines leading to the dishwasher and disposal. If those areas are wet, get a plumber.

If you've got a newer, rotating, single-arm faucet (through which both hot and cold water run), note the brand and purchase a faucet rebuild kit (roughly $50) at the hardware store. Inside the faucet arm is a metal ball on a stem that lets the handle swivel while allowing water to flow in any direction. The kit contains the six to 12 parts most likely to fail, including that metal ball, O rings, springs and gaskets. The idea is to replace them all rather than trying to diagnose the exact source of the problem. Dismantle the faucet, laying the parts out in order on a paper towel. Snap a photo or draw a sketch to help you with reassembly. Replace the old parts, put the faucet back together and turn the water back on.

For older faucets with independent hot and cold water faucets, shut off the water under the sink as before then dismantle each of the sink's faucets separately. Remove the washers (rings made of rubber, plastic or brass), put them in a plastic sandwich bag and bring them to the hardware store to find replacements. Reassemble the faucets and turn the water back on.

If this seems like more trouble than you're willing to tackle, call a plumber. With no complications, a plumber can install the new parts in an hour, though most will bill you for an hour and a half minimum.

9. Renew dinged baseboards.

Beat-up baseboards detract greatly from the appearance of your home, and they're easy to spiff up.  "All those little things tend to stand out," says Carroll. First, clean them to remove scrapes and smudges left by clawing pets and toddlers on wheels. Brake says a Mr. Clean Magic Eraser sponge works great on painted surfaces. Fill in dents with spackle, sand the baseboards smooth and repaint them. If you've lost the name of the original paint color, chip off a coin-sized bit, slip it into an envelope and bring it to the paint store where you can have the color computer matched.

Use primer before painting. Don't just retouch small areas; paint the entire piece of baseboard, from one end to the other. Choose a washable eggshell finish. White is a great choice for making baseboards and trim look crisp and clean.

10. Repair cabinet scratches.

You can quickly improve the look of unpainted woodwork and worn cabinets with an application of products that even out the surface color. Brake covers scratches on woodwork and cabinets with Old English Scratch Cover or a Tibet Almond Stick, a tight roll of cotton saturated in chemicals that the manufacturer, Zenith Chemical Works, says is a 100-year-old family formula. (You can find these at hardware and home-improvement stores.)

The almond stick goes on clear but covers scratches. "It's amazing," Brake says. Zenith owner Kim MacInnes says the almond stick works best with shallow surface scratches on dark finishes. It doesn't work in every case, he says, and even a good result may fade with time and need to be reapplied periodically.

Old English makes separate formulations for light or dark wood. These are oily stains, so use them carefully. Try out any products first in a corner where results will not be noticed. Do not use the dark stain on light wood. Finally, polish wood cabinets to a glow with lemon oil.

 

National Association Of Realtors Cheif Economist Reports

Economic Commentary
Top-Down Solution

The most recent data indicates that, yes, foreclosures rose again in the 4th quarter of 2007. A number of government agencies are trying to help reverse this trend. There are several policies proposed and some already being implemented to address rising foreclosures. But nearly all are attempting to alleviate the problem from the “bottom up,” rather than from the “top down.” The bottom-up approaches involve a work-out plan of current problematic loans. Let’s look at several of them.

  • The FHA Secure Program offered through HUD allows borrowers to get out of their high-interest rate, subprime loans into a lower-interest rate FHA loan if they meet certain conditions. Those conditions include having some level of housing equity and having demonstrated timely mortgage payments prior to the time when interest rates reset at a higher level.
  • Sheila Bair of FDIC was one of the first to call for voluntary loan remodification. Lenders' profit margins will be lower, but remodification is still better for their bottom line than a foreclosure. Recently, she called for systematic lowering of those resetting rates on 2/28 and 3/27 subprime hybrid loans.
  • Henry Paulson, Treasury Secretary, called for essentially the same after bringing key financial institutions together and putting the voluntary loan restructuring into more concrete form. There are a lot of hoops a borrower has to go through to qualify for the relief, however.
  • Ben Bernanke, Chairman of the Federal Reserve, has suggested lenders give a break to distressed borrowers by lowering some portion of the loan amount. A lower remaining principal will permit more manageable monthly mortgage payments for borrowers. More importantly, the write-down of the principal changes the homeowner’s position from being under water (negative housing equity) to above water. The idea is that borrowers can still make payments rather than walk away.
  • Senator Chris Dodd (D-Connecticut) has proposed legislation that would permit bankruptcy judges to modify the terms of the loans in order to make payments more manageable.
  • Martin Feldstein, Harvard University professor, made an intriguing proposal of immediately converting 20 percent of the existing loan balance into very low interest-rate loans. The federal government will provide the exceptionally low rates.
All of these proposals are well-intended and most will help mitigate foreclosure problems for mortgagees. But in addition to some aspects of these programs, what is also needed – and could well be far more effective – is a top-down solution: raising the housing demand. As I have written in this column previously, there exists a significant pent-up demand. What we need now is to get the home sales rolling. Rising home sales will lower housing inventory. Lower inventory will help quickly stabilize home prices. A recent Boston Fed study showed that home price movements – and not interest rate resets – are the primary determinant of foreclosures. If households have less or negative housing equity, then they have more of an incentive to default on mortgages and simply walk away.


The challenge is unleashing this pent-up demand into the marketplace. Consumer pessimism is pervasive. The raising of the loan limit on FHA and Fannie/Freddie backed loans will likely help unleash some of this demand as more households will have access to lower interest rate loans. And while lower home prices can also work to bring buyers to the market, they are no guarantee because lower prices can also add to excessive pessimism and consequently hold off buyers.

So, what do I think we should do? What is critically needed at this important point in the housing cycle is a measure to assuredly and quickly raise home buying activity. This can be accomplished by providing a home buyer tax-credit. A nationwide $5,000 tax credit (the same amount currently in existence for home buyers in Washington, D.C.) would cost the federal government $40 billion. Factoring in rising economic activity and accompanying rising tax revenue, the true cost could be minimal or even positively favorable. A reversal in the weakness in the housing market, which has been subtracting about one percentage point off GDP growth, can add $40 billion to the U.S. Treasury – essentially offsetting the cost of the tax credit. If the initial $40 billion cost is hard to swallow, how about a more targeted tax credit for only first-time home buyers? That would cost the government about $15 billion.


The ongoing subprime loan mess and related foreclosure problems are due to past lending mistakes. Current home buyers fortunately are not exposed to these “errors in judgment.” And these fresh buyers will also help save the day for existing homeowners who are either defaulting or facing foreclosure. Rising demand lifts all boats. There is a wide selection of safe mortgage products for today’s home buyers. Combine those safe mortgages with a home buyer tax-credit and we have the makings of a solid housing market recovery. Because housing nearly always leads the economy, a solid economic recovery will not be far behind.

Open House in Oakley on Sunday

April 2008
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Oakley, Asheville  -  We invite everyone to visit our open house at 31 Winding Road on April 13 from 1:00 PM to 4:00 PM.

Property information

Open House in Oakley on Sunday

March 2008
SuMoTuWeThFrSa
2425262728291
2345678
9101112131415
16171819202122
23242526272829
303112345

Oakley, Asheville  -  We invite everyone to visit our open house at 31 Winding Road on March 16 from 1:00 PM to 4:00 PM.

Property information

Open House in Oakley on Sunday

March 2008
SuMoTuWeThFrSa
2425262728291
2345678
9101112131415
16171819202122
23242526272829
303112345

Oakley, Asheville  -  We invite everyone to visit our open house at 29 Winding Road on March 16 from 1:00 PM to 4:00 PM.

Property information

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