All posts by Bettina Settles

My clients appreciate my compassion, empathetic nature when dealing with them and their transaction but more than willing to educate in a simple way to make a complex transaction understood. Being accessible and cooperative when it comes to dealing with clients and cooperative agents has earned me high praises from both. They have learned that I am dedicated, honest, and knowledgeable and can become very persuasive when it comes when working a transaction for my clients.
buying, commitment, Communication, education, Inspiration, organizing, planning, selling, Team work, tips

Stage the vacant home……for safety reasons.

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DSC_0008When selling a vacant home it you should have it staged to look as if it is lived in. From the outside, with curtains and a light or two turned on, it will look lived in to a potential drive by thief. Also, when placing you home on the market, try to find pictures of the inside showing furniture. When you do not have pictures with furniture you could have it staged with rented furniture or add a few pieces from your own collection. It will keep the potential thief guessing. We do not want to invite thieves or potential squatters. Each picture posted on the MLS of an empty room might invite the copper and wire “collectors” of the area.

 

The other invitation might be the disclosure “bank owned” on the MLS, but due to having to disclose this to the potential buyer there is not much we can do. I have seen listings where agents leave the “bank owned” part out of the public disclosure but have it written into the Agent-to-Agent remarks. I am not certain if this is kosher but that might be an answer.

 

Many times the under the public remarks is the verbiage used “vacant, OK to show, lock box code XZYT, call for feedback.

 

…..just don’t do that, you are inviting squatters and others who will use this house for their illegal reasons.

buying, commitment, Communication, education, green, Inspiration, organizing, planning, recycle, Team work, tips

Remodelers and Lead base Paint

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paintOn April 22nd 2010 a EPA ruling went into effect that has not only affected the homeowner but also the contractor who is remodeling or entering into remolding contract with a homeowner for a home that is build before 1978.

http://www.epa.gov/lead/pubs/renovation.htm

 

Each Remodeler has to hand the new EPA pamphlet called “Renovate Right” to their clients.

http://www.epa.gov/lead/pubs/renovaterightbrochure.pdf

When the rule took affect each firm that planned on working on homes built prior to 1978 must be certified and need to follow the EPA outlined work practices to prevent the lead contamination. All work completed on a home build before 1978 needs to be recorded and the contractor needs to test the area after clean up. The test has to match 100% to the EPA test card. When the test appears darker or dirtier than the card, the clean up must be repeated. In the new ruling, a contractor must use only equipment with a HEPA filter (example: grinder/sander). Also, a remodeler should not use a high-heat gun that exceeds 1100F.

Last but not the least a contractor needs to post warning signs for occupants and visitors and establish a containment area using disposable plastic drop cloths and clean the work area with HEPA vacuuming and wet washing.

Just keep this in mind when you buy your investment properties and you perform any restorations.

commitment, Communication, education, Inspiration, organizing, planning, recycle, tips

Clean up after the Storms

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blueprintWith the recent and future storms a lot of us will face the daunting task of clean up and major repairs. Facing the loss of everything that had value does not even cover the later possible loss when facing a scrupulous contractor that who’s only intention is to make some quick money. You cannot do anything about what Mother Nature has done or is in store for us but I can give you some small tips and tit bits on keeping from facing more damage due to bad contractors.

Make certain you call your insurance company first and have an appraiser come out to your home. The insurance company will also know some good reliable contractors. There is a good possibility that not everything is covered but at least a good contractor may lessen the loss, unless you have a total loss like one of my friends had. Your insurance agent will let you know what you can or should not do to lessen the loss before the adjuster comes to your home. It would be wise to follow their advice.

The contractor should know what permits you may need or you can call your local municipality and find out what possible permits you need to for any major renovation or reconstruction. Yes these permits they will cost you money but this will require inspections and help insure that the work will get done right and to current code. While talking to your municipalities ask for the cost of each permit. I have seen contractors inflating the price trying to get you to forego a permit. The permit can be a major pain but it is only there to insure that you the homeowner will get what you paid for and that you are safe and up to current code when you are moving back into your home.

When you need to find a contractor yourself you can refer to these and other possibilities:

  1. friends and family referrals
  2. Local Real Estate Agents and Brokers
  3. Chamber of Commerce
  4. Angie’s list
  5. Better Business Bureau

While picking a contractor ask for the following items from them.

  1. Their contractors’ licenses. In most states contractor or general contractors have to be licensed. Did you know you can verify a license online and can check if there is any pending litigation?
  2. Copy of their insurance certificate. A reputable contractor is insured and bonded. Call the insurance agent named on the policy to find out if it is still active.
  3. Get references to call. When you call them ask if you can visit to see the work performed by the contractor.
  4. Call the BBB and log on to Angie’s list to inquire about this contractor.

When getting your estimates of repairs DO NOT let the same contractor provide you with two separate estimates in two different names just to give you a “great Deal”. That is a good indication that the contractor is dishonest. Just last night I overheard one of the contractors I know, but never did business with, talk about this to one of his friends and he was proud of it. He will NOT be on my referral list!!!

Get at least three estimates from separate contractors. This will give you a good idea on how much in average the repairs will cost. One Caution! There are might be hidden damages that will cost you extra and most contractors have an open ended statement in their contracts to that effect. So be prepared for that.

The one thing you will need to pack on this trip is a lot of patience….and be ready for a longer trip!!!

buying, commitment, Communication, education, Inspiration, planning, Team work

Selling your home to today’s buyer.

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familyWhen you thinking of selling your home you should not only make it shine from the inside and out, you should think about what type of buyer is in the market. It also depends what type of buyer would be looking at your house in the area where you are located.  For example you will not see young buyers in a 55 and over neighborhood.

61% of today’s buyers are between 20 and 48 years old, 30% of the buyers are boomers, and the other 9% are the 68 and older generation. The younger buyer is attracted more often to the older homes. It might be due to pricing or they might not be turned off by having to make possible renovations or updates. Where the boomer generation is ready to retire and they are looking at homes that don’t need such repairs. While most of the buyers that are under 60 are attracted to the single family freestanding rather than the condo, the younger buyers are tending to look at connectivity and convenience to the job, shopping, entertainment, good schools, community, cost, and community conveniences.

Most all buyers regardless of what age group started their search for a new home online and very few contacted a mortgage professional. However, most of them purchased their home with the help of a real estate professional.

There is nothing you can do about the location of your home but you should consider who you are selling to and decide whether or not to update your home prior to selling. When you don’t make any renovations or updates to your home be prepared to attract a first time buyer who is not willing to pay much for the home compare to a buyer that is willing to pay a close to full price when your home is renovated and updated.

buying, commitment, Communication, education, Inspiration, planning, Team work

Many homeowners are becoming first time investors

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office_deskWith low mortgage rates and still many “want to be homeowners” not being able to buy a property, the rental market is still a great investment for someone who is considering getting into the rental market. There are also many homeowners, who when buying their move-up house, see the opportunity to offer their previous home for lease rather than selling, and often rent it out for more than their current mortgage payment.

2014 shows great signs that it could become a strong buying market. The huge difference between buyers from 2012/2013 to a 2014 buyer is that today’s buyer is a much more patient buyer. When the house is not priced right they are willing to postpone the purchase and wait until the price is within the range for which they are willing to work. When the house would sell at a price higher than they were willing to pay, they have no trouble moving on and looking for the next opportunity. The 2014 buyer is not falling in love with the house they are falling in love with the deal. And when the deal is not right they move on.

Buyers are worried about the low inventory and that is what has taught them to be patient and wait for their right deal to come across their desk.

What does this mean for a seller?

Just putting your house on the market and hoping it will sell will no longer be enough. Your home has to be the seductresses to attract buyers and it needs to be priced right. Today’s buyer is well informed through the use of the internet and with the help of their buyer’s agent. When a property is priced to high they are more than willing to walk away and wait for the seller to lower their price. They are not in the mood to deal with long negotiations.

buying, commitment, education, tips

Freddie Macs perspective on multifamily housing

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House and Keys in Female HandsIt looks as though Freddie Mac has a positive outlook for multifamily housing in 2014. The expectation is that the rents and vacancy rates will keep up with the average growth momentum and for some of the more depressed areas to improve.

Here is the full Freddie Mac 2014 Multifamily outlook (PDF).

In their opinion a strong employment growth has fueled a strong demand for multifamily housing. I do not agree with this assessment. Many past homeowners who lost their home between 2009 and 2012/13 have been the main fuel for the growth in multifamily housing.  Many of the families are still not able to afford buying and many were forced to move in together due to the lack of income of either the parents or kids.

I do see continued growth of the multifamily market sector and the single family sector is beginning to improve.

buying, commitment, Communication, education, Inspiration, organizing, planning, tips

Vacation time is a great time to scope out retirement areas.

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DSC_0002This winter has been brutal and ruthless to all of us and we are seeking the warmth and relaxing times of spring break, or just a plain vacation.

Many of us who are in the colder climates are talking about retiring in a warmer area but many just don’t take action until the clock hits 5 minutes until noon.  How about getting an earlier start on choosing places where you think you may like to retire and vacationing there to so you can see what they are like ahead of time.

A retirement area may look great in their advertising but as soon as you take a weekend or longer to spend time in the area you might find out that it is really not as good as you had hoped. It happened to me. I picked an area that sounded like it might be a great spot to retire. They had a lot to offer and many things to do so I decided to spend a weekend there to scope things out. I discovered that the traffic in the area, even in an off season, is so horrendous that even going to the grocery store just down the road would take over 3 hours.

You might also find out that home prices are affordable but the overall cost of living is much higher than advertised. Things like this you only find out when you spend time in the area and see what they are not telling you.

Another example I can think of right now is an area that is located at the Atlantic. I visited another beautiful historical area but found out the hard way with my dog at the veterinarian clinic that the area is heavily infested with flees. Dealing with this would be a constant battle. Do you think you find this out by just looking at pictures? No. You have to go there and find out for yourself or find someone who has already been there and are willing to tell you.

When you find an area you like, you might want to return several times for vacation and scope out areas where you may like to buy or rent a home. Just be sure to visit the area during different times of the year. This will give you a more well rounded picture of the area.

buying, commitment, Communication, education, Inspiration, organizing, planning, Team work, tips

Do your “due diligence” before you make an offer on a potential investment.

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paperworkAs the mortgage rates continue to remain low, and many of the current investors leaving the market, new investors are beginning to invest in the market. When buying an investment property you should do your due diligence and run all of your numbers before you buy.

Many investors have their own list of criteria that a property must meet prior to viewing and making an offer. Depending on what type of investment you plan to purchase your list might be longer or shorter. For instance, when an investor is looking to purchase a multifamily home of up to 4 units, they will pick a price range in an area they would like to purchase. With that in mind they begin shopping online to see if there are any properties that meet their criteria. When a potential investment has passed the first hurdle, the second hurdle the investment must pass could be a basic ROI calculation.

Some investors have a set ROI% they would like to meet after expenses. When running the ROI% make certain you use the current real estate tax that is owed and the current or potential rental income, if the property is vacant. If your research reveals a range of rental incomes use the median rental income for that area. After the property has passed this hurdle of due diligence investors will then move to the next step which is a property drive by. You would be surprised how much wear or damage a pretty picture can mask which you may deem undesirable. It depends on the willingness of the investor to put money and sweat equity into an investment. Some of the properties might not make it past this point. The properties that are still in the running and currently have tenants have to now pass the lease agreement test. Make certain you look at the current lease agreements. You would be surprised what you can find or don’t find while looking at the current lease agreements. Make sure you can live with the terms of the current lease agreements.

By now you should have eliminated many of the properties and have a much shorter list. Now it is time to complete a walk through to check the internal condition of the property. When you are not comfortable running your own repair numbers take a contractor with you who can give you an on the spot repair estimate of what it will take to get the property back into shape. Also, don’t forget to call your insurance agent and have them run a CLUE report on the property to find out if it is even insurable.

This is just a short list of due diligence items you should do prior to buying an investment property. Your list of criteria may be shorter or longer depending on what type of property it is and what type of tenants you would like to have.

The bottom line is you should do your due diligence prior to making an offer.

commitment, Communication, education, Inspiration, planning, tips

Don’t become a victim when renting.

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lockFor many years rental fraud has become a growing nationwide issue. Due to the high foreclosure rates in many markets renting has become the only option for many individuals who lost their home through foreclosure or even a short sale.

With “Active for Sale” property listings published online for anyone to find, it has become very easy for scammers to take that basic information such as the address, photo, and description of the property to create a fraudulent “For Rent” advertisement. The scammers pretending to be the legal owner of this property have the interested party contact them, either over the phone or via email, and without even being able to look at the property or meeting them in person, to fill out an application and send a one or two month security deposit via a wire transfer to hold the property for them.

What can you do to help prevent from becoming a victim of rental fraud?

  • Use a trusted REALTOR association website for your rental searches.
  • Google the address. The rental will be listed by the owner or with an agent. If you find a rental has more than one person or agent advertising it be very cautious.
  • Do your due diligence. Find out what the average rental is in the area for the size of home you would like to rent. When the rental price is lower than the average rent in the area be very cautious.
  • Be suspicious when you are asked to wire your deposit. Most owners are willing to take a personal check, bank check, or money order for the security deposit.
  • Don’t rely on pictures and the “owners” words. Visit the property yourself. If the “owner” cannot let you in because they “forgot the keys” or give you some excuse on why you cannot see the home’s interior consider walking away. If you cannot view the inside of the property in person consider contacting a local real estate professional to do this for you.
  • The rental application should never include questions that ask you about your personal banking information like credit card or bank account numbers. Many will ask for your social security number. Many landlords will run a credit and criminal background check.
commitment, Communication, Inspiration, planning, tips

It never will happen to me….

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lock and keyHad a message forwarded to me that had to do with the securing your house and protecting your family. It said many individuals think that it never will happen to them because they consider the area they live in as safe.

They leave the entry doors, garage doors, and windows unlocked at night or when they go shopping. When they go on vacation they announce it to everyone on social media. They think no one but their “friends” will pay attention and nothing will happen while they are gone.

Many people in the winter warming up their vehicle before they go to work leave the doors unlocked with the key in the vehicle.

Personally I can observe daily women leaving their purses in the top of a shopping cart, turning their backs to the cart while just getting maybe a box of cereal, tending to their child that just demands their attention, or putting their groceries into the trunk of their vehicle.

There are several things you can do to safeguard your home and yourself.

First before you know what to safeguard you need to know what all you own. Not only for your personal knowledge but also for insurance purposes! When you don’t know what you own you can’t file a claim if the need arises. The best way to find out what you own is by getting a home inventory. One place to find a company that does home inventories is though the National Inventory Certification Association.

When you are leaving the house, do the obvious. Lock the doors, but also make sure that all your windows are secure as well. If you have an alarm system, set it! If you don’t have an alarm system consider investing in one. Many insurance companies give you a rate break when your home has an alarm.

Many of the older cars need to warm up especially in the winter when it is super cold and  lot of them don’t come with a remote starter which helps to keep the vehicle secure. One option is to install an aftermarket remote starter that would give you the option to remotely start your vehicle without having to keep the key in the vehicle and you would not have to leave it unlocked.