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First Impressions

by Dan Groteboer

Good curb appeal is a major plus when it comes to marketing a home.  A little bit of work on the front of your home can pay big dividends.

When a potential buyer pulls up in front of your home, their first impression is absolutely crucial.  Sometimes buyers won't even look at a home with droopy shutters, sagging gutters, peeling paint and a bumper crop of dandelions in the front yard.  Or they might go in expecting to find a "fixer-upper" that could be purchased at a bargain price.  If a home looks neat and cared for from the street, the initial good impression will carry over as the buyers step inside.  It is not necessary to hire a professional landscaper, but listen to your real estate agent's suggestions when you list your home.  Local nurseries can help you select blooming plants that will thrive in your area.  Keep the lawn mowed, and regardless of the season, take care of exterior maintenance.  Strong curb appeal will help your home sell more quickly and for top dollar.

I can help you with your real estate needs.  Please call me at 507-254-0957 or email me at Dan@DanGroteboer.com

Important Tips To Keep Your Home Safe

by Dan Groteboer

Important Tips To Keep Your Home Safe

It's much more than a physical structure. It's the place where memories are made, where dreams are shared, where lives are lived. And many of your home's contents--the video of your baby's first steps, grandmother's brooch or old family photos, for instance--simply cannot be replaced. That's why it makes good sense to do everything you can to protect your home from fire and theft.

Preventing Fires

Most fires are preventable. First, let's look at the top causes of home fires.

  • Cooking fires. Cooking fires pose a serious hazard. Always stay near the stove when cooking. Avoid wearing loose sleeves while cooking; they can be ignited by a burner or a grease splatter. You'll also want to keep curtains and other flammable materials well away from the range or oven. And never put water on a grease fire, which can cause the hot grease to splatter, burning you or spreading the fire. Instead, smother it with a lid or another pan, then turn off the burner. Leave the lid in place until it has cooled off completely.

  • Portable and space-heating equipment. Wood-burning, kerosene, propane and electric heaters can ignite draperies, clothing and other flammable items. Keep anything that can burn at least 3 feet away from all heating equipment. Shut off a heater before you leave the room or go to bed. When you purchase a heater, make sure it's been tested and approved by a reputable organization.

  • Careless smoking. Cigarettes are the leading cause of fire deaths. Never smoke in bed or in a place where you may fall asleep. Also, use deep ashtrays so a lit cigarette won't roll out and fall onto rugs or furniture. It's also a good idea to run water over an ashtray before emptying it into the trash. A smoldering cigarette butt could set the trash on fire.

  • Electrical wiring. You can't see wires hidden inside walls and ceilings, but there are some warning signs of electrical problems. If lights dim or flicker, fuses blow frequently or sparks shoot from receptacles when items are plugged in or unplugged, consult an electrician. Faulty electrical cords can also spark a fire or cause an electrical shock. Never run cords under rugs or heavy furniture. Pressure can crack insulation and break the wires. Don't overload outlets.

  • Children with matches. Children playing with matches or lighters are the leading cause of fire deaths for children 5 and under. Keep these items up high, preferably in a locked cabinet, out of the sight and reach of small children. Teach older ones how to handle matches responsibly.

  • Holiday hazards.Decorations and candles are a special concern during the holidays. If you buy a live Christmas tree, choose a fresh one and water it daily. With an artificial tree, make sure it's made of flame-retardant materials. Keep candles well away from anything that can burn and blow them out when you leave the room or go to bed. Fireworks also deserve special mention. They endanger life, limb and property. Avoid amateurs who set off fireworks. Instead, attend public displays conducted by trained pyrotechnicians. Even sparklers are hazardous; they burn at 1200 F.

There are some other simple, common sense precautions you can take to decrease your chances of a home fire:

  • Never store or use gasoline in the home. Gasoline is a motor fuel only. Keep small quantities in an approved container designed to store gasoline, and store outside, preferably in a locked, detached shed. Wipe up spills immediately and never refuel motors near heat sources, sparks or cigarettes.

  • Don't overload electrical receptacles.

  • Don't use light bulbs with greater wattages than a fixture can handle.

  • Don't let combustible materials such as newspapers and rags pile up in basements and garages.

  • Leave plenty of air space around appliances and television sets; they can overheat and catch fire.

  • Use outdoor gas and charcoal grills with caution. Keep them away from structures, particularly when in use. Never add materials to the fire.

Fireplace Safety

If your home has one or more fireplaces, special precautions can help to keep home fires burning safely:

  • Never burn charcoal or use a hibachi in your fireplace. Both produce deadly carbon monoxide.

  • Protect against sparks by enclosing a fireplace's opening with glass doors or a sturdy screen.

  • Never close the flue while a fire is still smoldering. Carbon monoxide could build up.

  • Never use gasoline, kerosene or lighter fluid to start a fire. Burn only dry, seasoned hardwood. For extra safety, light fires with long-stemmed matches.

  • Have your fireplace and chimney inspected annually. They should be properly vented and free of blockages. Have them cleaned as needed.

  • Protect the top of your chimney with a guard that keeps out birds and small animals and keeps in sparks that could ignite your roof.

  • Keep flammables such as newspapers, magazines, rugs and carpeting well away from the fireplace.

  • Remove holiday decorations from the fireplace and mantle before building a fire to avoid having the decorations ignite.

  • Teach children to stay back from the fireplace.

  • Never leave a fire unattended.

  • Keep a fire extinguisher handy.

If Fire Breaks Out

Smoke detectors greatly increase the likelihood you'll survive a fire. Place at least one on each floor of your home and outside each sleeping area. Install detectors inside bedrooms for added protection. Mount detectors on the ceiling, at least 4 inches away from the wall. Test detectors monthly and replace batteries once a year. To help you remember, plan to install new batteries on an annual event, such as the Fourth of July. Replace smoke detectors after 10 years.

If a fire does break out, take immediate action. Smoke and flames spread rapidly. Get out of the house right away, then call the fire department from a neighbor's house or a cellular phone. Fumes overcome most victims long before flames reach them. Use your safest exit. If you must escape through smoke, get down and crawl low under the smoke, keeping your head about 12-24 inches off the floor.

If you haven't gotten around to conducting a family fire drill, now's the time to do it. And visit your local hardware store or home center to invest in a few fire extinguishers. Extinguishers are classified according to the type of fire they will put out, and you'll find the classification displayed on an extinguisher. A Class ABC extinguisher is multi-purpose and works well against any small, self-contained fire. Keep one in the kitchen, extras in the basement or garage. Contact your fire department to ask about training. Don't attempt to fight a fire unless you know you have the right extinguisher to handle that type of fire, and be sure to keep your back to a safe exit.

Fire Safety Checklist

Take this quick quiz to help you assess your family's fire safety plan:

  • Do you follow the fire prevention practices outlined above? Pay special attention to safety tips on cooking, smoking, use of heating equipment, proper storage of flammables and precautions regarding children and matches.

  • Are your smoke detectors working? There should be at least one on every floor of your home. Test each detector monthly, and replace batteries annually.

  • Do you hold regular fire drills? Several times a year, have your family practice exiting your home safely and quickly in the event of an emergency. Designate a meeting place for all family members to gather once they are out of the house.

  • Have you taught your children to "stop, drop and roll"? In the event their clothing catches fire, kids (and adults) should stop, drop to the floor, cover their faces and roll over and over or back and forth to put out the fire. Keep rolling until the fire goes out.

  • Have you planned an alternate escape route? It's important to have at least two escape routes from each room in your home, often a door and a window. Practice using them now to be sure you could get out in an emergency.

  • Can you safely exit from the second floor? A chain ladder or other easily accessible ladder can help you escape from the upper stories of your home in the event of a fire.

  • Do you know how to use your fire extinguishers? Know where your fire extinguishers are kept, and read the instructions for use before you need them.

  • Do you know the phone number for your local fire department and the location of the nearest phone outside your house? In case of fire, always evacuate your home first, then call for help from a cellular or other nearby phone.

Preventing Theft

Every year, burglars hit more than five million households, stealing more than $4 billion worth of property. Determined thieves can break into just about any home, but you can take steps to make entry a lot more difficult for them.

  • Invest in a quality door. Door security begins not with a good lock but with the door itself and the frame it fits into. Weak door assemblies can be broken with a single kick, popped open with a jimmy bar or even pried out-frame and all-from the wall. Strong exterior doors have solid, not hollow, cores; doors that are sheathed in metal are even better.

  • Install deadbolts. Deadbolt locks provide the best protection for the least amount of money. Ordinary spring-operated locks can be defeated with a credit card. Intruders can't slip a deadbolt lock because it has a solid metal bar that fits into the door jamb. To be effective, a deadbolt lock should have at least a one-inch throw (meaning the metal bolt extends at least an inch past the edge of the door). Doors with glass panes present a special security problem because a thief can break the pane, reach inside and unlock the door. If local laws permit, the solution is a double-cylinder lock-one that must be opened with a key from inside as well as out. But don't defeat the purpose by getting into the habit of leaving the key in the lock on the inside. To exit quickly in case of a fire, keep the key near the door but in a spot that can't be reached from outside. You might want to hang it on a nail near the floor where you can find it easily if fire breaks out.

  • Don't forget windows. Windows and sliding glass doors also should be secured. Look for locks specifically made for different window styles at your local hardware store or home center. You also can secure a sliding glass door with a broomstick or piece of 1" x 2" lumber laid in the door track when the door is closed.

  • Light up. Outside flood lighting reduces your risk of burglary by highlighting the exterior of your home at night. You can choose from lights that remain on all night or motion-sensitive lights that come on only when someone approaches your home. Motion-sensitive lights save energy and could catch a would-be thief by surprise. Timers on inside as well as outside lights give the impression that someone is home, even if you're on vacation, out to dinner or visiting the neighbors.

Sounding an Alarm

For greater peace of mind, consider investing in a professionally installed alarm system. Alarm systems come in many shapes and sizes, at prices that range from a few hundred to several thousand dollars. Many installers also charge monthly monitoring fees, which should be taken into account when you shop for a system. A home alarm system includes some combination of the following components:

  • Perimeter sensors. These consist of photo cells or magnetic contacts on doors and windows that sound an alarm when an intruder tries to get inside. Perimeter sensors are mounted on two points, such as the door jamb and the door itself. Photo cell sensors are activated when something passes through a beam of light projected between the two points, while magnetic sensors are activated when contact is broken between the two magnetized points.

  • Heat and motion sensors. You can use heat and motion detectors to protect specific spaces in or outside your home-a bedroom hallway, for instance, or your backyard. Heat detectors respond to body temperatures. Motion sensors detect movement.

  • Glass break detectors. These devices recognize the sound of breaking glass. They activate the alarm when they sense breaking glass in a window or door.

  • Keypad. One or more keypads allow you to turn the system on and off.

  • Audible alarm. A piercing alarm alerts neighbors and the police. And it lets the burglar know he's been detected, meaning he'll probably leave your house in a hurry.

Keep in mind that false alarms can be a problem. In addition to annoying the neighbors and taking the police away from real emergencies, some communities now assess fines for excessive false alarms. The National Burglar & Fire Alarm Association reports that nearly 80 percent of false alarms are caused by user error. Steps to prevent false alarms include regular system maintenance and ensuring that whoever has a key to your house also knows the codes to activate and deactivate your system. Local police are a good source of information and recommendations regarding security systems. They work with the security services in your area and can tell you what types of break-ins are most common in your community.

After you've determined which alarm system is best for you, ask your insurance agent, family or friends for referrals. Get written quotes from at least three companies. Before you obtain an alarm system, investigate a security service's reputation and how long it has been in business. Also ask about warranties and what they cover.

Insuring Against Loss

Homeowners or renters insurance provides money to replace possessions after a fire or theft. Remember to keep a good inventory of your property, including serial numbers. A quick way to do this is with snapshots or a camcorder. Store your inventory in a safe-deposit box or other location outside your home, and update it every year.

While you're making an inventory of your valuables, consider engraving them with your name. This makes it easier to trace the goods back to you if they're stolen. Many local police departments will loan etching tools.

Most insurers recommend that you insure your property at replacement cost. This reimburses you for what it would cost to replace items today, instead of paying only for their current, depreciated value. You'll pay a little more in premiums for this extra peace of mind, so shop around for the best policy and the best price. Consider only reputable companies and agents. Get at least three quotes. Some companies provide lower rates if you have more than one type of coverage with them, such as auto and home. Review your insurance coverage annually.

If you have any questions or need assistance regarding any of the above items, please feel free to give me a call.

Common Mistakes Made With Money and How to Avoid Them

by Dan Groteboer

Common Mistakes Made With Money and How to Avoid Them

Everybody makes mistakes with their money. The important thing is to keep them to a minimum. And one of the best ways to accomplish that is to learn from the mistakes of others. Here is our list of the top mistakes people make with their money, and what you can do to avoid these mistakes in the first place.

1.  Buying items you don't need...and paying extra for them in interest. Every time you have an urge to do a little "impulse buying" and you use your credit card but you don't pay in full by the due date, you could be paying interest on that purchase for months or years to come. Spending money for something you really don't need can be a big waste of your money. But you can make the matter worse, a lot worse, by putting the purchase on a credit card and paying monthly interest charges.

Research major purchases and comparison shop before you buy. Ask yourself if you really need the item. Even better, wait a day or two, or just a few hours, to think things over rather than making a quick and costly decision you may come to regret.

There are good reasons to pay for major purchases with a credit card, such as extra protections if you have problems with the items. But if you charge a purchase with a credit card instead of paying by cash, check or debit card (which automatically deducts the money from your bank account), be smart about how you repay. For example, take advantage of offers of "zero-percent interest" on credit card purchases for a certain number of months (but understand when and how interest charges could begin).

And, pay the entire balance on your credit card or as much as you can to avoid or minimize interest charges, which can add up significantly.

If you pay only the minimum amount due on your credit card, you may end up paying more in interest charges than what the item cost you to begin with. Example: If you pay only the minimum payment due on a $1,000 computer, let's say it's about $20 a month, your total cost at an Annual Percentage Rate of more than 18 percent can be close to $3,000, and it will take you nearly 19 years to pay it off.

2.  Getting too deeply in debt. Being able to borrow allows us to buy clothes or computers, take a vacation or purchase a home or a car. But taking on too much debt can be a problem, and each year millions of adults of all ages find themselves struggling to pay their loans, credit cards and other bills.

3.  Learn to be a good money manager. Also recognize the warning signs of a serious debt problem. These may include borrowing money to make payments on loans you already have, deliberately paying bills late, and putting off doctor visits or other important activities because you think you don't have enough money.

If you believe you're experiencing debt overload, take corrective measures. For example, try to pay off your highest interest rate loans (usually your credit cards) as soon as possible, even if you have higher balances on other loans. For new purchases, instead of using your credit card, try paying with cash, a check or a debit card.

There are also reliable credit counselors you can turn to for help at little or no cost. Unfortunately, you also need to be aware that there are scams masquerading as 'credit repair clinics' and other companies, such as 'debt consolidators', that may charge big fees for unfulfilled promises or services you can perform on your own.

4.  Paying bills late or otherwise tarnishing your reputation.Companies called credit bureaus prepare credit reports for use by lenders, employers, insurance companies, landlords and others who need to know someone's financial reliability, based largely on each person's track record paying bills and debts. Credit bureaus, lenders and other companies also produce "credit scores" that attempt to summarize and evaluate a person's credit record using a point system.

While one or two late payments on your loans or other regular commitments (such as rent or phone bills) over a long period may not seriously damage your credit record, making a habit of it will count against you. Over time you could be charged a higher interest rate on your credit card or a loan that you really want and need. You could be turned down for a job or an apartment. It could cost you extra when you apply for auto insurance. Your credit record will also be damaged by a bankruptcy filing or a court order to pay money as a result of a lawsuit.

So, pay your monthly bills on time. Also, periodically review your credit reports to make sure their information accurately reflects the accounts you have.

5.  Having too many credit cards. Two to four cards (including any from department stores, oil companies and other retailers) is the right number for most adults. Why not more cards?

The more credit cards you carry, the more inclined you may be to use them for costly impulse buying. In addition, each card you own — even the ones you don't use — represents money that you could borrow up to the card's spending limit. If you apply for new credit you will be seen as someone who, in theory, could get much deeper in debt and you may only qualify for a smaller or costlier loan.

Also be aware that card companies aggressively market their products on college campuses, at concerts, ball games or other events often attended by young adults. Their offers may seem tempting and even harmless — perhaps a free T-shirt or Frisbee, or 10 percent off your first purchase if you just fill out an application for a new card — but you've got to consider the possible consequences we've just described. Don't sign up for a credit card just to get a great-looking T-shirt. You may be better off buying that shirt at the store for $14.95 and saving yourself the potential costs and troubles from that extra card.

6.  Not watching your expenses. It's very easy to overspend in some areas and take away from other priorities, including your long-term savings. Our suggestion is to try any system — ranging from a computer-based budget program to hand-written notes — that will help you keep track of your spending each month and enable you to set and stick to limits you consider appropriate. A budget doesn't have to be complicated, intimidating or painful — just something that works for you in getting a handle on your spending.

7.  Not saving for your future. We know it can be tough to scrape together enough money to pay for a place to live, a car and other expenses each month. But experts say it's also important for young people to save money for their long-term goals, too, including perhaps buying a home, owning a business or saving for your retirement (even though it may be 40 or 50 years away).

Start by "paying yourself first". That means even before you pay your bills each month you should put money into savings for your future. Often the simplest way is to arrange with your bank or employer to automatically transfer a certain amount each month to a savings account or to purchase a Savings Bond or an investment, such as a mutual fund that buys stocks and bonds.

Even if you start with just $25 or $50 a month you'll be significantly closer to your goal. The important thing is to start saving as early as you can — even saving for your retirement when that seems light-years away — so you can benefit from the effect of compound interest. Compound interest refers to when an investment earns interest, and later that combined amount earns more interest, and on and on until a much larger sum of money is the result after many years.

Banking institutions pay interest on savings accounts that they offer. However, bank deposits aren't the only way to make your money grow. Investments, which include stocks, bonds and mutual funds, can be attractive alternatives to bank deposits because they often provide a higher rate of return over long periods, but remember that there is the potential for a temporary or permanent loss in value.

8.  Paying too much in fees. Whenever possible, use your own financial institution's automated teller machines or the ATMs owned by financial institutions that don't charge fees to non-customers. You can pay $1 to $4 in fees if you get cash from an ATM that isn't owned by your financial institution or isn't part of an ATM "network" that your bank belongs to.

Try not to "bounce" checks — that is, writing checks for more money than you have in your account, which can trigger fees from your financial institution (about $15 to $30 for each check) and from merchants. The best precaution is to keep your checkbook up to date and closely monitor your balance, which is easier to do with online and telephone banking. Remember to record your debit card transactions from ATMs and merchants so that you will be sure to have enough money in your account when those withdrawals are processed by you bank.

Financial institutions also offer "overdraft protection" services that can help you avoid the embarrassment and inconvenience of having a check returned to a merchant. But be careful before signing up because these programs come with their own costs. Whenever possible, use your own financial institution's automated teller machines or the ATMs owned by institutions that don't charge fees to non-customers.

Pay off your credit card balance each month, if possible, so you can avoid or minimize interest charges. Also send in your payment on time to avoid additional fees. If you don't expect to pay your credit card bill in full most months, consider using a card with a low interest rate and a generous "grace period" (the number of days before the card company starts charging you interest on new purchases).

9.  Not taking responsibility for your finances. Do a little comparison shopping to find accounts that match your needs at the right cost. Be sure to review your bills and bank statements as soon as possible after they arrive or monitor your accounts periodically online or by telephone. You want to make sure there are no errors, unauthorized charges or indications that a thief is using your identity to commit fraud.

Keep copies of any contracts or other documents that describe your bank accounts, so you can refer to them in a dispute. Also remember that the quickest way to fix a problem usually is to work directly with your bank or other service provider.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bringing the Dream of Homeownership Within Reach

by Dan Groteboer

Bringing the Dream of Homeownership Within Reach

As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed new legislation that:

  • Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
  • Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.

Here is more information about how the Extended Home Buyer Tax Credit can help prospective home buyers become part of the American dream.

http://www.realtor.org/home_buyers_and_sellers/2009_first_time_home_buyer_tax_credit

Author:  realtor.org

Treasury Sets Guidance to Simplify "Short Sales"

by Dan Groteboer

The U.S. Treasury on Monday set long-awaited guidance on a plan for mortgage companies to speed "short sales" of homes and other loan modification alternatives to stem a rising tide of foreclosures.

The Home Affordable Foreclosure Alternatives Program provides financial incentives and simplifies the procedures for completing short sales, a growing practice in which a lender agrees to accept the sale price of a home to pay off a mortgage even if the price falls short of the amount owed, according to an announcement on the Treasury's website.

Guidelines address barriers that have often sidelined short sales by setting limits on the time it takes a bank to approve an offer, freeing borrowers from debt and capping claims of subordinate lenders.

The incentives, first announced in May, expand on the government's Home Affordable Modification Program, known as HAMP, that has seen limited success in lowering payments for distressed homeowners. The Treasury earlier on Monday stepped up pressure on mortgage companies to make permanent the 650,000 trial modifications they have started.

"While HAMP program guidelines are intended to reach a broad range of at-risk borrowers, it is expected that servicers will encounter situations where they are unable to approve" or offer a modification, the Treasury said in its announcement.

Financial incentives for completing short sales or similar deed-in-lieu transactions -- in which the deed is simply transferred to the lender -- include a $1,000 payment to servicers, and a maximum of $1,000 to go to investors who sign off on payments to subordinate lien holders, the Treasury said. Borrowers would receive $1,500 in relocation expenses.

Short sales are favored by real estate agents and community groups over foreclosure because they can preserve the borrower's credit rating and leave the property in better condition than when a homeowner is evicted. While primary lenders typically realize steep losses, their recovery is typically far better than under foreclosure.

But short sales have been frustrating for borrowers and real estate agents, often hung up by negotiations with multiple lien holders and mortgage insurance companies. Real estate agents have complained that sales fall through as lenders bicker over the sales price, what they should receive from the proceeds, and whether the borrower will be held accountable for the debt in the future.

Among requirements, mortgage servicers have 10 days to approve or disapprove a request for short sale, and when done the transaction must fully release the borrower from the debt.

It also prohibits mortgage servicing companies from reducing real estate commissions on the sale, a practice that has dissuaded many agents from taking short sale listings.

In one of the most contentious issues gumming up negotiations between lenders, the guidance caps the aggregate proceeds to subordinate lien holders at $3,000.

Second lien holders in recent months have begun demanding more money from the first lender, seller, buyer or agent in exchange for releasing their claim, agents have said. Because primary lenders would face larger losses in a foreclosure, some subordinate lenders have felt empowered, the agents said.

The largest second-lien holders are Bank of America Corp, Wells Fargo & Co, JPMorgan Chase & Co and Citigroup Inc.

Second lien holders may proceed with a short sale outside of the Treasury program, if they felt the cap was too low, a Treasury official said in October.

"If there was a short sale program that didn't recognize the second lien holder position, it could have pretty damaging consequences for the industry," Sanjiv Das, chief executive officer of CitiMortgage, said in an interview last week.

(Editing by Leslie Adler)

Tips on Selecting a Contractor For Home Improvement

by Dan Groteboer

Home repairs can cost thousands of dollars and are the subject of frequent complaints.  Here is a list of things to consider when selecting a contractor:
  1. Get recommendations and references. Talk to friends, family and other people for whom the contractor has done similar work.

  2. Get at least three written estimates from contractors who have come to your home to evaluate what needs to be done. Be sure the estimates are based on the same work so that you can make meaningful comparisons.

  3. Make sure the contractor meets licensing and registration requirements with your local consumer agency. Some areas require licensees to pass tests for competency and scrutinize licensees for financial solvency. They may also have a fund to cover some financial losses that result from problems with licensed contractors.

  4. Check to see if local laws limit the amount by which the final bill can exceed the estimate, unless you have approved the increase.

  5. Check contractor complaint records with the Better Business Bureau or similar agency.

  6. Get the names of suppliers and ask if the contractor makes timely payments.

  7. Contact your local building inspection department to check for permit and inspection requirements. Be wary if the contractor asks you to get the permit. It could mean the firm is not licensed.

  8. Be sure your contractor has the required personal liability, property damage and worker’s compensation insurance for his/her workers and subcontractors. Also check with your insurance company to find out if you are covered for any injury or damage that might occur.

  9. Insist on a complete written contract. Know exactly what work will be done, the quality of materials that will be used, warranties, timetables, the names of any subcontractors, the total price of the job, and the schedule of payments.

  10. Try to limit your down payment. Local law may specify that only a certain percentage of the total cost may be made as a down payment.

  11. Understand your payment options. Compare the cost of getting your own loan versus contractor financing.

  12. Don’t make final payment or sign an affidavit of final release until you are satisfied with the work and know that subcontractors and suppliers have been paid. Local lien laws may allow unpaid subcontractors and/or unpaid suppliers to attach your home.

  13. Pay by credit card when you can. This may allow you the right to withhold payment to the credit card company until problems are corrected.

  14. Be especially cautious if the contractor:

    • comes door-to-door or seeks you out;
    • just happens to have material left over from a recent job;
    • tells you your job will be a "demonstration";
    • offers you discounts for finding other customers;
    • quotes a price that’s out of line with other estimates;
    • pressures you for an immediate decision;
    • offers exceptionally long guarantees;
    • can only be reached by leaving messages with an answering service;
    • drives an unmarked van or has out-of-area plates on his/her vehicles; or
    • asks you to pay for the entire job up front.

11 Things You Must Know When Finding a Home

by Dan Groteboer


Once you've decided to buy a home, there's a number of issues that need to be considered.  Because buying a home will be one of the biggest purchases you make in your life, learning the "11 Things You Must Know When Finding a Home" can make the process easier.

In this report, we outline 11 Questions and Answers to help you make informed choices when purchasing a home.

1. What Should I Look For When Deciding On A Community?

Select a community that will allow you to best live your daily life. Many people choose communities based on schools. Do you want access to shopping and public transportation? Is access to local facilities like libraries and museums important to you? Or do you prefer the peace and quiet of a rural community? When you find places that you like, talk to people that live there. They know the most about the area and will be your future neighbors. More than anything, you want a neighborhood where you feel comfortable in.

2. How Can I Find Out About Local Schools?

You can get information about school systems by contacting the city or local school board or the local schools. Your real estate agent may also be knowledgeable about schools in the area.

3. How Can I Find Out About Community Resources?

Contact the local chamber of commerce for promotional literature or talk to your real estate agent about welcome kits, maps, and other information. You may also want to visit the local library. It can be an excellent source for information on local events and resources, and the librarians will probably be able to answer many of the questions you have.

4. How Can I Find Out How Much Homes Are Selling For In Certain Communities and Neighborhoods?

Your real estate agent can give you a ballpark figure by showing you comparable listings. If you are working with a REALTOR®, they may have access to comparable sales maintained on a database.

5. How Can I Find Information On The Property Tax Liability?

The total amount of the previous year's property taxes is usually included in the listing information. If it's not, ask the seller for a tax receipt or contact the local assessor's office. Tax rates can change from year to year, so these figures maybe approximate.

6. What Other Tax Issues Should I Take Into Consideration?

Keep in mind that your mortgage interest and real estate taxes will be deductible (USA residents). A qualified real estate professional can give you more details on other tax benefits and liabilities.

7. Is An Older Home A Better Value Than A New One?

There isn't a definitive answer to this question. You should look at each home for its individual characteristics. Generally, older homes may be in more established neighborhoods, offer more ambiance, and have lower property tax rates. People who buy older homes, however, shouldn't mind maintaining their home and making some repairs. Newer homes tend to use more modern architecture and systems, are usually easier to maintain, and may be more energy-efficient. People who buy new homes often don't want to worry initially about upkeep and repairs.

8. What Should I Look For When Walking Through A Home?

In addition to comparing the home to your minimum requirement and wish lists, consider the following:

  • Is there enough room for both the present and the future?
  • Are there enough bedrooms and bathrooms?
  • Is the house structurally sound?
  • Do the mechanical systems and appliances work?
  • Is the yard big enough?
  • Do you like the floor plan?
  • Will your furniture fit in the space? Is there enough storage space? (Bring a tape measure to better answer these questions)
  • Does anything need to be repaired or replaced? Will the seller repair or replace the items?
  • Imagine the house in good weather and bad, and in each season. Will you be happy with it year 'round?

    Take your time and think carefully about each house you see. Ask your real estate agent to point out the pros and cons of each home from a professional standpoint.

    9. What Questions Should I Ask When Looking At Homes?

    Many of your questions should focus on potential problems and maintenance issues. Does anything need to be replaced? What things require ongoing maintenance (e.g., paint, roof, HVAC, appliances, carpet)? Also ask about the house and neighborhood, focusing on quality of life issues. Be sure the seller's or real estate agent's answers are clear and complete. Ask questions until you understand all of the information they've given. Making a list of questions ahead of time will help you organize your thoughts and arrange all of the information you receive.

    10. How Can I Keep Track Of All The Homes I See?

    If possible, take photographs of each house: the outside, the major rooms, the yard, and extra features that you like or ones you see as potential problems. And don't hesitate to return for a second look. You may also wish to find out if the home is available online. Photos of the property may already be up on a website for you to review.

    11. How Many Homes Should I Consider Before Choosing One?

    There isn't a set number of houses you should see before you decide. Visit as many as it takes to find the one you want. On average, homebuyers see 15 houses before choosing one. Just be sure to communicate often with your real estate agent about everything you're looking for. It will help avoid wasting your time.

 

Information On The Tax Credit

by Dan Groteboer

The link below is a GREAT website on the Tax Credit.  The National Association of Home Builders has done a great job providing information on the Tax Credit.  

If you have any questions or need further information, please feel free to give me a call.

Group Cooking Party

by Dan Groteboer

The winter season usually plays itself out with overflowing schedules, making it difficult to even sit down for a family dinner.  For a spin on the traditional party with a finished product that will be a gift to your guests, gather your closest friends together for a group cooking party.

In advance, select twelve main dishes that will freeze and reheat well.  Print out the recipes and divvy up who will bring which groceries for the group, being sure to buy enough packaging for each person's twelve meals.  With five participants, multiply each recipe by five so that each person takes home one of each dish.

During your group cooking party, each participant chooses a recipe, making and packaging it for all five families, until the group has all twelve meals ready to go home in their individual coolers with reheating instructions, guaranteeing many delicious meals in the weeks to come.

9 Buyer Traps and How to Avoid them

by Dan Groteboer


" A systemized approach to the home-buying process can help you steer clear of these common traps, allowing you to not only cut costs, but also secure the home that’s best for you."


No matter which way you look at it buying a home is a major investment. But for many home-buyers, it can be an even more expensive process than it needs to be because many fall prey to at least a few of the many common and costly mistakes which trap them into either:

  • paying too much for the home they want, or
  • losing their dream home to another buyer or,
  • (worse) buying the wrong home for their needs.

A systemized approach to the home-buying process can help you steer clear of these common traps, allowing you to not only cut costs, but also secure the home that’s best for you.

9 Buyer Traps

This important report discusses the 9 most common and costly of these home-buyer traps, how to identify them, and what you can do to avoid them:

1. Bidding Blind

What price should you offer when you bid on a home? Is the seller’s asking price too high, or does it represent a great deal. If you fail to research the market in order to understand what comparable homes are selling for, making your offer would be like bidding blind. Without this knowledge of market value, you could easily bid too much, or fail to make a competitive offer at all on an excellent value.

2. Buying the Wrong Home

What are you looking for in a home? A simple enough question, but the answer can be quite complex. More than one buyer has been swept up in the emotion and excitement of the buying process only to find themselves the owner of a home that is either too big or too small. Maybe they’re stuck with a longer than desired commute to work, or a dozen more fix-ups than they really want to deal with now that the excitement has died down. Take the time upfront to clearly define your wants and needs. Put it in writing and then use it as a yard stick with which to measure every home you look at.

3. Unclear Title

Make sure very early on in the negotiation that you will own your new home free and clear by having a title search completed. The last thing you want to discover when you’re in the back stretch of a transaction is that there are encumbrances on the property such as tax liens, undisclosed owners, easements, leases or the like.

4. Inaccurate Survey

As part of your offer to purchase, make sure you request an updated property survey which clearly marks your boundaries. If the survey is not current, you may find that there are structural changes that are not shown (e.g. additions to the house, a new swimming pool, a neighbor’s new fence which is extending a boundary line, etc.). Be very clear on these issues.

5. Undisclosed Fix-ups

Don’t expect every seller to own up to every physical detail that will need to be attended to. Both you and the seller are out to maximize your investment. Ensure that you conduct a thorough inspection of the home early in the process. Consider hiring an independent inspector to objectively view the home inside and out, and make the final contract contingent upon this inspector’s report. This inspector should be able to give you a report of any item that needs to be fixed with associated, approximate cost.

6. Not Getting Mortgage Pre-approval

Pre-approval is fast, easy and free. When you have a pre-approved mortgage, you can shop for your home with a greater sense of freedom and security, knowing that the money will be there when you find the home of your dreams.

7. Contract Misses

If a seller fails to comply to the letter of the contract by neglecting to attend to some repair issues, or changing the spirit of the agreement in some way, this could delay the final closing and settlement. Agree ahead of time on a dollar amount for an escrow fund to cover items that the seller fails to follow through on. Prepare a list of agreed issues, walk through them, and check them off one by one.

8. Hidden Costs

Make sure you identify and uncover all costs - large and small -far enough ahead of time. When a transaction closes, you will sometimes find fees for this or that sneaking through after the "sub"-total - fees such as loan disbursement charges, underwriting fees etc. Understand these in advance by having your lender project total charges for you in writing.

9. Rushing the Closing

Take your time during this critical part of the process, and insist on seeing all paperwork the day before you sign. Make sure this documentation perfectly reflects your understanding of the transaction, and that nothing has been added or subtracted. Is the interest rate right? Is everything covered? If you rush this process on the day of closing, you may run into a last minute snag that you can’t fix without compromising the terms of the deal, the financing, or even the sale itself.

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