5 tips to stay on top of home maintenance

Where to find reliable contractors
By Dian Hymer
Inman News®

You're not alone if your roof is leaking and you're kicking yourself for not having called a roofer during the summer months. Most people have a limited concept of preventative maintenance. This can lead to big problems that end up being more expensive than if you had routine maintenance in place.

Many buyers don't understand that home maintenance goes with homeownership. When you rent, someone else usually pays for repairs. As a homeowner, you're responsible for keeping your home in good condition.

Unless you're handy at home repairs, it can be costly to maintain a home properly. But there is a benefit at the end of the line. Buyers pay more for homes that are well-maintained and show a pride of ownership.

It can be a hassle to properly maintain your home unless you organize and prioritize the projects that need to be done. You also need to set a schedule and stick to it.

Most home maintenance can be done annually: roof maintenance (including gutters and downspouts); sealing exterior cracks; weatherproofing; a furnace and air conditioning inspection; and inspecting and cleaning the drainage system.

Mark these events on your calendar so that they can be scheduled for about a month before you'd like to have the work done. If you wait until just before the rainy season to start your annual maintenance, you could have trouble finding good contractors to help you.

Don't wait until your roof is leaking to repair or replace it. There will be collateral damage to the interior of the house. Your homeowners insurance company might pay to repair the interior damage, less the amount of your deductible, but it won't pay to replace the roof. Too many claims could be grounds for not renewing your policy.

HOUSE HUNTING TIP: Assemble a crew of contractors and tradespeople who can help you with your home maintenance. It's not always easy to find reliable people who do good work. You'll end up frustrated and having to do more oversight if you work with people who don't show up or do the job right.

Ask your real estate agent or acquaintances who own homes in the area to recommend tradespeople to you. If the seller is happy with people who have worked on the property, ask for a list of names and contact information when you close the sale.

Homeowners who haven't the time or expertise to determine what needs to be done to keep their home in good shape could ask the home inspector that inspected the house for them to do a reinspection periodically to point out areas that need attention.

One of the keys to good home maintenance is to take care of critical items as soon as they become apparent. For instance, don't postpone repairing a plumbing pipe leak. Have it repaired as soon as you notice it.

Don't assume that because your house is new that you won't have any maintenance issues. If the gutters back up on any house, even a new house, water can leak into the house or down the inside of the walls. This, left unchecked, can lead to a major repair to the framing. If repaired right away, you may just need to seal and touch up the paint.

Likewise, even though you just had the exterior painted, you still may have areas that will need touch up every year or so, especially if they receive intense sun exposure.

THE CLOSING: Don't go for the cheapest contractor or building materials just to save money. If an inferior-quality job has to be redone sooner than anticipated, your savings will dwindle.

For Buying or Selling, it helps to have a guide that gives you straight answers. For more information on buying, selling, or renting out an income property in San Diego, please call Frank Rashid's cell phone at (858) 676-5250 or email him at rashid@rashidrealty.com. More to follow within the next couple of weeks.

6 Reasons to Google Your Address

With virtually any type of information imaginable online, it makes sense to do regular internet searches for your home’s address. There are at least six compelling reasons it makes sense to do so, especially if it’s an address you’re thinking of renting, buying or selling. Smart homeowners would do well to search for their addresses, too, and here’s why:

1. To See If Megan’s Law Registrants Live Nearby
There is plenty of information available to the public regarding registered sex offenders in their neighborhoods. Nearly every state that has a Megan’s law-­type sex offender registry has an online version that serves up the names, addresses, sex-­offense history, and even photos in many cases, of convicted sex offenders. Googling your address and “Megan’s law”-­-­ or even your city or ZIP code and “Megan’s law” -­-­ will turn up a quick list of nearby registrants.

2. To Find Crime Reports and Data For Your Home and Environs
City, county and state law enforcement agencies all post crime data online, but a Google search for your address or city and “crime reports” is most likely to turn up your local police office’s crime map. Or, you can check out Trulia Crime Maps for a crime map of recent incident reports for the whole city, ZIP code or neighborhood. The map is color-­coded to represent the intensity of crimes in each area.

3. To Detect Scammers Trying to Rent or Sell Your House
Internet scammers have taken to ripping off home information and putting together fake listings offering other people’s homes for rent or lease-­to-­own. They often list the home on extremely cheap and easy terms, then ask the would-­be-­buyer or tenant to please wire or send the deposit money overseas. These scams often come to light only after the homeowner or current resident notices bargain-­hunters checking out the place. If you start getting an inordinate amount of foot traffic to your home, or someone knocking on your door asking if they can see the place, you may want to Google your address. If you find a fraudulent listing, identify yourself as the home’s rightful owner and ask the offending site to take the scam posting down -­ stat!

4. To See What Your Neighbor’s Place Sold For and Possibly Lower Your Property Taxes
In real estate, the value of your home is largely driven by what is similar or how much nearby homes have sold for. If you search your address, Trulia will first surface some sort of image of your home, a map, the basic property details from the public records (see No. 5, below), and recent sales data for your own home before listing out the comps -­ homes with similar numbers of beds, baths and square feet near yours, and what they recently sold for. If you see a pattern of homes selling for lower than your home’s assessed value, you can use those comps to petition your county to lower your own property taxes!

5. To See Your Home’s Property Records Your home’s records online are populated from the public records about your home, which are either so old they don’t include upgrades and additions, or they’re just flat out wrong. If you Google your address, or search for it on Trulia, and find that your home’s description is riddled with errors, contact your county public record agency to correct them and edit your home facts on Trulia. This is particularly important if you’re planning to sell your home anytime soon.

6. To See Your Home’s Google Street View When you’re selling your home, it’s especially critical to see everything that prospective home buyers will see. That means checking out how your home’s listing looks on all the online real estate sites (yes, even on Trulia), checking out the flyer -­ even stopping by to check out any staging your broker or agent did if you’ve already moved out. One thing even the most savvy sellers don’t check out is the way Google Street View depicts your home. If you’re about to sell your home, and you notice that the street view is outdated, mention it to your agent, and ask them to make a note of that fact in the listing information.

© 2011 Trulia.com · All Rights Reserved

For Buying or Selling, it helps to have a guide that gives you straight answers. For more information on buying, selling, or renting out an income property in San Diego, please call Frank Rashid's cell phone at (858) 676-5250 or email him at rashid@rashidrealty.com. More to follow within the next couple of weeks.

Calculate 'paybacks' before buying furnace

First, consider home's energy efficiency

By Paul Bianchina

Inman News™

Cold weather's upon us again, and you may be looking at changing or upgrading your old heating system to better deal with winter's chill. But what type of furnace should you get? There's actually quite a bit that will go into making that all important decision, and here are some things worth considering.

Understanding paybacks

Throughout the process of selecting a new heating system, and even when considering energy upgrades as discussed below, you'll be faced with the concept of "paybacks." It's an important thing to understand, especially if you're feeling pressured by a salesperson to choose a particular product.

Let's say you currently pay an average of $200 a month to heat your home for an average of seven months of the year, or $1,400 per year. Now let's say that a new, high-efficiency furnace, along with some upgraded insulation, will heat your home for $90 a month, or $630 a year.

That's a savings of $770 annually. If the new furnace and insulation cost $5,000, it would take you about 6 1/2 years for the savings to pay back the investment.

Paybacks aren't difficult to understand, as long as you're able to get the necessary numbers. This is something that your heating contractor and utility company should be able to help you with.

Deal with your home's energy efficiency first

How efficient any heating system is going to be at keeping your home warm is dictated by how energy efficient the home is in the first place. You can have a small home, but if it's drafty and poorly insulated, you'll need a much larger furnace than might otherwise be required in order to keep it heated. That means more upfront cost and higher operating costs.

So before you consider your new heating system, if possible you should complete any required energy upgrades your home needs. Your best bet is to have an energy audit done. The auditor will make a thorough inspection of the house, and will make specific recommendations for upgrades to insulation, windows, weatherstripping, and other components that will make it more energy efficient. Your utility company or heating contractor can often arrange for or recommend energy auditors in your area.

Fuel considerations

Next, you'll want to consider what type of fuel to use for the new heating system. Common choices include electricity, natural gas, propane and heating oil. Quite often, you'll opt for what the house currently has, but that's not always the best choice.

For example, you may currently have an electric furnace, but if natural gas is available in your area, you may find that to be more efficient. However, in your payback calculations you'll need to take into consideration the cost of having the gas line brought to your house, which may or may not be covered by the gas company.

Or you may be considering replacing an oil-burning furnace with propane, but in your payback calculations remember to weigh in the costs of having the oil tank removed and the new propane tank installed. With buried propane tanks, you also have the costs of excavating to consider.

Rating furnace fuel efficiencies

All electric furnaces work on electric resistance, so 100 percent of the energy they consume goes towards heating the house; the inefficiencies with electricity would occur in the power generation process itself, and in losses that occur as the power moves through the transmission lines.

The efficiency of oil furnaces has improved quite a bit in recent years. Changes in burner designs have resulted in efficiencies going from around 60 percent to something more like 80 percent today. However, these higher efficiencies often require upgrades to the chimney if you're planning to reuse the old one, so that's something that needs to be taken into consideration as well.

Most of today's natural gas and propane furnaces achieve efficiency ratings of 85 percent to 95 percent or more. So little heat is wasted with these units that they can actually be vented with plastic vent pipes. As you'd expect, with each step up in efficiency you also step up in initial cost, so that's something to take into consideration with your payback calculations.

Heat pumps and air conditioning

To add to the mix, you'll want to consider whether you want air conditioning. If so, be sure that the contractors are aware of that when they put their estimates together. Even if you don't want to add it now, if you're considering it in the future, you need to make sure the new heating system is compatible with it.

Another option worth considering is a heat pump. Heat pumps work like a refrigerator in reverse, drawing heat from the outside air and transferring it to your home. A reversing valve allows the process to work in the opposite direction as well, drawing heat from the house and exhausting it to the outside, so a heat pump gives you both heat and air conditioning.

Heat pumps generally work best in relatively moderate climates and can be very energy efficient to operate in those conditions. However, when the outside air temperatures drop too low, there's not a lot of ambient heat to draw from, and their efficiency drops quite a bit. Heat pumps can have a significantly higher initial cost, so you need to compare paybacks carefully.

Pulling it all together

For a project this complex and potentially costly, I'd strongly recommend getting at least two estimates. Ideally, the contractors should be bidding equipment from two different, recognized manufacturers, which will give you an additional opportunity to compare costs, efficiencies and paybacks.

Be sure you verify that all licenses, bonds, insurance, and other requirements are in place and in compliance with whatever your state requires. Finally, a good heating contractor should be able to offer energy advice for your home, and should be able to give you specific payback information for the cost of any system they're bidding.

For Buying or Selling, it helps to have a guide that gives you straight answers. For more information on buying, selling, or renting out an income property in San Diego, please call Frank Rashid's cell phone at (858) 676-5250 or email him at rashid@rashidrealty.com. More to follow within the next couple of weeks.

With mortgages at 4%, demand for home-purchase loans rises

-- E. Scott Reckard

With 30-year mortgage rates still averaging a rock-bottom 4%, applications to purchase homes rose after Thanksgiving to the highest level in four months.

Freddie Mac's weekly report on home lender offerings, released Thursday, showed the typical rate for a 30-year loan at 3.99%, the sixth straight week at or slightly below 4%. Last year at this time, the 30-year fixed loan averaged 4.61%.

Fifteen-year fixed-rate home loans, a popular option for people refinancing homes, averaged 3.27%, down from last week's 3.3%. A year ago, the 15-year loan averaged 3.96%, Freddie Mac said.

The big government-backed mortgage buyer asks lenders what rates they are offering to borrowers with good credit and 20% down payments or 20% equity if they are refinancing. The rates are for loans of up to $417,500 with the borrowers paying about 0.75% of the loan amount in lender fees and points.

The typical mortgage rate for larger "jumbo" loans was running about a third of a percentage point higher, according to another report this week, this one from the Mortgage Bankers Assn. Jumbo loans are priced higher because lenders can't sell them to Freddie Mac and Fannie Mae, the other big government-sponsored mortgage buyer.

Offering a bit of hope for housing at a time when foreclosures are drawing angry protests and government investigations, the mortgage bankers said applications for loans to buy houses reached the highest level since early August.

Refinances still made up about three-quarters of all applications for home loans, however.

For Buying or Selling, it helps to have a guide that gives you straight answers. For more information on buying, selling, or renting out an income property in San Diego, please call Frank Rashid's cell phone at (858) 676-5250 or email him at rashid@rashidrealty.com. More to follow within the next couple of weeks.

Tips for Yard Maintenance

Are you having difficulty keeping your yard looking healthy, but encounter dying grass or dead spots? Here are a few solutions to the problem.

Lack of fertilizer: if your grass is not fertilized correctly year round it will not use the water it gets and no amount of watering will cure this. If your yard is made up of a mixture of clay and a small but of topsoil, the topsoil becomes exhausted of nutrients very quickly and needs to be replenished. Try using a turf builder, such as Scotts Turf Builder ($13/bag @ Home Depot) and feed about 1/8^th of a bag every 6 weeks. If you want to plant seed, approximately the top two inches of clay soil needs to be aerated (loosened) and/or apply a soil penetrant, then add top soul. Then add seed and cover with top soil. The soil needs to be kept moist until the grass has grown. Sometimes it’s just easier to re-sod problem areas.

Sprinklers: poorly maintained sprinklers may not water all the areas of your lawn correctly. The water pressure can change; try testing your sprinklers and adjust periodically. Your current irrigation system may be 30+ years old. There are new sprinklers that you can buy that can more effectively water you lawn. Or, try the old standby! Use a hose that is attached to a sprinkler and spray the problem areas. Many plants benefit from deep infrequent watering. Try multiple starts per day and water.

Rabbits: Rabbits eat the grass in certain spots and as they eat the grass in that area they also defecate and urinate which acidifies the soil and kills the grass. The rabbits usually come out in the very early morning around 4 am to 6 am. Please check for rabbits destroying your yard. If you find that rabbits are the cause, get some Vitamin B1 transplant fertilizer from Home Depot and spray on your lawn each time after you mow. This will make the grass taste bad to the rabbits. B1 is about $5/gallon and you can use about 3 tablespoons in a gallon of water.

For Buying or Selling, it helps to have a guide that gives you straight answers. For more information on buying, selling, or renting out an income property in San Diego, please call Frank Rashid's cell phone at (858) 676-5250 or email him at rashid@rashidrealty.com. More to follow within the next couple of weeks.

9 ways to keep lid on energy bills

Air leaks can infiltrate surprising places

By Paul Bianchina

No one likes wasting money, especially in these tough economic times. So it certainly makes sense -- dollars and cents -- to make a small investment of time and supplies to close up those heat-wasting air leaks around your home. It'll pay back big dividends in reduced energy bills and a warmer, more comfortable house this winter. So let's look at some of the areas where those drafts may be lurking, and see how to take care of them.

1. Doors and windows: This should be an obvious one. If you can see gaps between your siding and your windows or exterior doors, close them up with a bead of clear or paintable acrylic latex caulk. Larger gaps can be filled with foam backer rod before applying the caulking.

2. Exterior penetrations: Some of these areas are going to be obvious, while some may take a little bit of searching. Some examples of exterior penetrations where air can leak into the house include exterior faucets, dryer vents, exterior electrical outlets, exterior light fixtures, holes that have been drilled for phone and TV cables, conduit penetrations, exit points for plumbing drains, and penetrations for air conditioning lines. Closing these penetrations may require a variety of different techniques, including caulk, expanding spray foam, or, in the case of electrical boxes and fixtures, specific gaskets that are designed to fit the boxes.

3. Exhaust-vent covers: Dryer vents, range hood vents, bath fan vents, and other interior ventilation equipment typically terminate outside the house in a plastic or metal cover that has one or more louvers on it. The louvers are designed to be in the closed position whenever the fan is not in use, so that outside air doesn't leak in. Check all of these louvers to be sure they're closing completely, with no air leaks. If they aren't, you can adjust the spring tension to hold them closed more tightly; add foam weatherstripping tape for a more air-tight seal; or replace the entire vent cap with a new one.

4. Gaps around interior vents and recessed lights: Inside your home, heated air can be leaking out around that same ventilation equipment, where vent pipes pass through the walls or ceiling, or where vent covers meet wall and ceiling surfaces. Recessed light fixtures can also be real air-leakers. Around the vent pipes and recessed light cans, seal any gaps with caulking. For the vent covers and recessed light covers, remove the covers, then adjust the springs and/or add foam weatherstripping tape to create a tight seal between the cover and the ceiling.

5. Heat-duct penetrations: Gaps around heating-duct cans where they pass through the floor or wall allow cold air to enter from the crawl space, while gaps around ceiling-duct cans allow heated air to escape into the attic. To close those drafts, first remove the register, then use a combination of caulking and/or metallic duct sealant tape to close any gaps between the sheet metal cans and the floor, wall or ceiling surface.

6. Fireplaces and woodstoves: Lots of gaps can occur around these appliances. With a conventional fireplace, keep the damper closed except when burning a fire to prevent heated air from escaping up the chimney. Consider investing in a set of air-tight doors, which close off the air leaks and also make your fires more efficient. Look for gaps around woodstove and gas fireplace flue pipes, and air leaks around masonry chimneys. Use a metal collar if necessary around flue pipe penetrations, and seal gaps with heat-resistant sealant specially formulated for this application.

7. Attic and crawl space hatches: These can be real air losers if they're not weatherstripped, so take care of that with some foam tape. Make sure the hatches are insulated as well.

8. Interior doors to unheated spaces: If you have any interior doors that lead to unheated spaces, including basements, garages or attics, be sure the doors are weatherstripped to prevent air leakage. If possible, replace older, hollow-core doors with solid-core or, better yet, insulated metal doors.

9. Sill plates and penetrations: This one's not as easy to deal with, but it's well worth the effort to try to do whatever you can with it. Air can leak both into and out of the house through gaps where the sill plate meets the foundation or the siding, and around plumbing and wiring penetrations drilled through wall plates in various areas. If you have a gap between your siding and the bottom of your exterior wall, especially in older homes where the use of sill sealers was not a common practice, consider closing up this big air gap with a bead of caulking or expanding foam. In the basement, crawl space and attic, if you can access any of the pipes and wires that pass through the wall plates, seal the penetrations with expanding foam.

For Buying or Selling, it helps to have a guide that gives you straight answers. For more information on buying, selling, or renting out an income property in San Diego, please call Frank Rashid's cell phone at (858) 676-5250 or email him at rashid@rashidrealty.com. More to follow within the next couple of weeks.

Top 6 reasons mortgage applications are rejected

By Tara-Nicholle Nelson

Half of refinance applications are abandoned or rejected, as are 30 percent of purchase mortgage applications, according to the Mortgage Bankers Association. All told, the Federal Financial Institutions Examination Council (FFIEC) says that well over 2 million mortgage applications were rejected last year.

Want to avoid falling into that number? It's tough -- especially in light of the fact that mortgage lenders have become increasingly restrictive in terms of their lending guidelines since the housing market crash.

Here, as a cautionary tale and primer on what to expect, are the top six reasons mortgage lenders reject applications.

1. Income issues. Most failed applications falling into this category have income too low for the mortgage amount they are seeking; often, a spouse's credit issues can create this problem, too, as the income the spouse plans to actually chip in toward the mortgage cannot be considered by a lender.

But increasingly, the recent vagaries of the job market are also causing this issue, as people who have changed their line of work or have changed from salaried employee to freelancer over the last couple of years can also have their home loan applications rejected based on income.

2. Muddled money matters. If the mortgage for which you're applying plus your monthly payments on credit card, car and student loan debts will comprise more than 45 percent of your total income, you could have problems qualifying for a home loan. You might also run into problems if you rely too heavily on bonuses, overtime, cash wages or rental income -- all of these can be difficult or impossible to get a mortgage bank to consider, and if they do, they might not take all of it into account.

3. Credit issues. Today, the mortgage-qualifying FICO score cutoff falls somewhere between 620 and 660, depending on which lender and which loan type you seek. More than one-third of Americans, by some numbers, have credit scores too low to qualify for a home loan. Even if your credit score is high enough to qualify, if you have any late mortgage payments, a short sale, a foreclosure or a bankruptcy in the last two years, loan qualifying could be difficult to impossible.

4. Property didn't appraise. Since the whole industry had its hand (among other things) smacked for allowing home values to skyrocket in a very short time, appraisal guidelines have tightened up -- some would say, even more than overall mortgage guidelines. So, it is increasingly common to have the property appraise for a price lower than the sale price negotiated between the buyer and seller.

This is especially common in the refinance realm, as well over a quarter of U.S. homes are now upside-down, meaning the mortgage balance owed is greater than the value of the home. (If you're trying to refinance an upside-down mortgage, consider the FHA Short Refi program -- contact your lender or get referrals to any mortgage broker who makes FHA details to apply.)

5. Condition problems. With all the distressed properties on the market, and with most nondistressed sellers barely breaking even, more home-sale transactions than ever are falling apart due to condition problems with the property. Many lenders will not extend financing on homes where the appraiser points out problems like cracked or broken windows, missing kitchen appliances, electrical problems, or wood rot.

And in the world of condos and other units that belong to a homeowners association, if more than 25 percent of units are rented (rather than owner-occupied) or more than 15 percent are delinquent on their HOA dues, new applications for refinance or purchase mortgages on units in the development are likely to be rejected.

6. Technical difficulties with application. The days when lenders just took your word for it are long, long gone. Applications with incomplete or unverifiable information are doomed.

If any of these mortgage loan application glitches arise in your homebuying or refinancing process, it's critical that you connect with your mortgage professional, be it your banker or mortgage broker, to determine what course of action to take.

In some cases, it might be as simple as buying a stove you find at Craigslist and installing it before escrow closes; but with income issues your mortgage pro will need to help you determine whether it makes sense to pay some bills down, get a co-signer, or even wait six months so your income documentation will qualify.

Tara-Nicholle Nelson is author of "The Savvy Woman's Homebuying Handbook" and "Trillion Dollar Women: Use Your Power to Make Buying and Remodeling Decisions." Tara is also the Consumer Ambassador and Educator for real estate listings search site Trulia.com. Ask her a real estate question online or visit her website, www.rethinkrealestate.com.

For Buying or Selling, it helps to have a guide that gives you straight answers. For more information on buying, selling, or renting out an income property in San Diego, please call Frank Rashid's cell phone at (858) 676-5250 or email him at rashid@rashidrealty.com. More to follow within the next couple of weeks.

Triggers of Lender Scrutiny

By VICKIE ELMER

IN recent years, lenders have stepped up fraud-prevention investigations and checks on mortgage applications. For borrowers, this may mean facing questions on actions like accepting cash gifts from relatives for the down payment or signing up for new credit cards during the application process.

The research firm CoreLogic estimates that fraudulent residential mortgage originations will total $7.4 billion in 2011; the number is nearly 40 percent lower than the $12 billion in 2010, though the company attributes the decline to a drop in mortgage volume. (Mortgage fraud involves falsifying information to obtain a loan you otherwise might not have qualified for.)

Fraud-prevention measures — mostly required by federal regulators — look into where you work and live, how you use credit, and more.

The investigation process typically starts when you first apply for a mortgage and lenders verify your identity and Social Security number, said Jeffrey Lipes, a senior vice president of Family Choice Mortgage, in Rockville, Conn., and the president of the Connecticut Mortgage Bankers Association. Further inquiries — an effort to obtain a copy of a brokerage account, for instance — may require approval or assistance from the borrower, he said, but mostly “the consumer is not even aware that we’re doing it.”

Lenders also check to see if a borrower’s name shows up on the government terrorist lists, among other things, and they check employment and credit reports — then check them again, within three days of closing.

What are they looking out for? Here are four common triggers to increased scrutiny, and what borrowers can do about them.

A LARGE BANK DEPOSIT Lenders are required by federal regulators to confirm that funds in an account come from bona fide sources, like a gift from your grandmother for the down payment. “We source it,” Mr. Lipes said — “find out where it has come from.” What constitutes a large deposit? That is based partly on your income, he explained. If you earn $5,000 a month and deposit an extra $10,000 beyond your paycheck, that may be considered oversized. Of course, if you were just married and received a bounty of checks as gifts, you might want have your marriage license on hand as proof, when you are providing your bank account information.

YOUR ADDRESS If you are buying a primary home three hours from Manhattan yet list your employment with a Midtown company, your case may draw scrutiny, said Jason Auerbach, the divisional manager for the Manhattan office of First Choice Loan Services. He suggests getting a letter from an employer noting, for example, that you are authorized to work from home four days a week. Likewise, a couple with three children who are buying a one-bedroom apartment may be scrutinized about whether this will be their principal home. Lenders want to make sure you’re the owner-occupant, not buying as a rental or to flip the property.

NEW OR UNDISCLOSED DEBTS When you’re in the process of buying a home, avoid taking on other debt. “Sometimes borrowers don’t think buying a new car prior to closing a loan is a problem, but it is,” said Carolyn Mitchell, a senior vice president of Aklero Risk Analytics, which provides software for mortgage quality control. Buying a sofa or a furnace on credit could also slow or even scuttle your mortgage closing, depending on your situation, if it pushed your total debt levels beyond acceptable limits.

INCOME ISSUES If you disclose that you earn twice what the average person in your occupation earns, you may need to document that discrepancy. Or if you used to be an independent contractor and were recently hired as a full-time worker, that might raise concerns, Mr. Auerbach said. It is relatively easy, Mr. Lipes added, to invent false documents that inflate incomes, so lenders routinely check with the Internal Revenue Service and other sources.

For Buying or Selling, it helps to have a guide that gives you straight answers. For more information on buying, selling, or renting out an income property in San Diego, please call Frank Rashid's cell phone at (858) 676-5250 or email him at rashid@rashidrealty.com. More to follow within the next couple of weeks.

Tax Credit for green improvements

It’s almost the end of 2011 and several tax credits for energy efficiency will soon be expiring. There are limits to the maximum credit allowed on each type of improvement, with a total cap of $500*

• Central Air Conditioning. Cap: $300. Labor allowed: Yes.
• Electric Heat Pump. Cap: $300. Labor allowed: Yes.
• Advanced Main Circulating Fan. Cap: $50. Labor allowed: No, but the credit is 30%.
• Roofing. Cap: $500. Labor allowed: No.
• Gas, Oil, or Propane Water Heater. Cap: $300. Labor allowed: Yes.
• Electric Heat Pump Water Heater. Cap: $300. Labor allowed: Yes.
• Windows. Cap: $200. Labor allowed: No.
• Doors. Cap: $500. Labor allowed: No.
• Insulation. Cap: $500. Labor allowed: No.

If you’ve been considering one of the above home improvements, it may be worth your while to make sure you get the improvement completed before the end of 2011 in order to claim the tax credit.

For further information you can visit

the U.S. Department of Energy http://www.energysavers.gov/financial/70010.html#products_2011

Or

the American Council for an Energy Efficient America http://energytaxincentives.org/uploaded_files/Residential%20Incentives%20Flyer%202011.pdf

In addition to federal tax credits you can also find credits for the State of California through the Database of State Incentives for Renewables and Efficiency (DSIRE): http://www.dsireusa.org/

* http://energystar.supportportal.com/link/portal/23002/23018/Article/19174/What-is-the-maximum-tax-credit-I-can-get-for-the-energy-efficient-home-improvements

Disclaimer – This flyer is intended for informational purposes only and is not to be construed as legal or tax advice. Before making any decisions dealing with the subject matter found in this flyer the Company recommends that you seek out specific advice from legal or tax professionals.

For Buying or Selling, it helps to have a guide that gives you straight answers. For more information on buying, selling, or renting out an income property in San Diego, please call Frank Rashid's cell phone at (858) 676-5250 or email him at rashid@rashidrealty.com. More to follow within the next couple of weeks.

Existing-Home Sales Off in September but Higher Than a Year Ago

Existing-home sales were down in September on the heels of a strong gain in August, but remain well above a year ago, according to the National Association of Realtors®.

Total existing-home sales1, which are completed transactions that include single-family, townhomes, condominiums and co-ops, declined 3.0 percent to a seasonally adjusted annual rate of 4.91 million in September from an upwardly revised 5.06 million in August, but are 11.3 percent above the 4.41 million unit pace in September 2010.

Lawrence Yun, NAR chief economist, said the market has been stable although at low levels, and there is plenty of room for improvement. “Existing-home sales have bounced around this year, staying relatively close to the current level in most months,” he said. “The irony is affordability conditions have improved to historic highs and more creditworthy borrowers are trying to purchase homes, but the share of contract failures is double the level of September 2010. Even so, the volume of successful buyers is higher than a year ago and is remaining fairly stable – this speaks to an unfulfilled demand.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 4.11 percent in September, down from 4.27 percent in August; the rate was 4.35 percent in September 2010.

Contract failures2 were reported by 18 percent of NAR members in September, unchanged from August; they were 9 percent in September 2010. Contract failures are cancellations caused by declined mortgage applications, failures in loan underwriting from appraised values coming in below the negotiated price, or other problems including home inspections and employment losses.

NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I., said access to credit is unbalanced. “All year we’ve been discussing the fact that many creditworthy home buyers are being denied mortgages,” he said. “On top of that, loan limits have been lowered, which means buyers of higher priced homes, including many in more expensive housing markets, now have to pay a higher interest rate for a jumbo mortgage than buyers who can qualify for a conventional loan. We need to remove the roadblocks to a housing recovery – not place more obstacles in the way of financially qualified buyers.”

All-cash sales accounted for 30 percent of purchase activity in September, up from 29 percent in August and 29 percent also in September 2010; investors make up the bulk of cash purchases.

Investors purchased 19 percent of homes in September, down from 22 percent in August; they were 18 percent in September 2010. First-time buyers accounted for 32 percent of transactions in September, unchanged from August; they were also 32 percent in September 2010.

The national median existing-home price3 for all housing types was $165,400 in September, down 3.5 percent from September 2010. Distressed homes – foreclosures and short sales typically sold at deep discounts – accounted for 30 percent of sales in September (18 percent were foreclosures and 12 percent were short sales), down from 31 percent in August and 35 percent in September 2010.

Total housing inventory at the end of September declined 2.0 percent to 3.48 million existing homes available for sale, which represents an 8.5-month supply4 at the current sales pace, compared with an 8.4-month supply in August.

Single-family home sales fell 3.6 percent to a seasonally adjusted annual rate of 4.33 million in September from 4.49 million in August, but are 12.2 percent above the 3.86 million-unit level in September 2010. The median existing single-family home price was $165,600 in September, down 3.9 percent from a year ago.

Existing condominium and co-op sales rose 1.8 percent a seasonally adjusted annual rate of 580,000 in September from 570,000 in August, and are 5.6 percent above the 549,000-unit pace one year ago. The median existing condo price5 was $163,800 in September, which is 1.0 percent below September 2010.

Regionally, existing-home sales in the Northeast rose 2.6 percent to an annual level of 790,000 in September and are 6.8 percent above a year ago. The median price in the Northeast was $229,400, down 3.3 percent from September 2010.

Existing-home sales in the Midwest slipped 0.9 percent in September to a pace of 1.09 million but are 17.2 percent higher than September 2010. The median price in the Midwest was $137,400, which is 1.4 percent below a year ago.

In the South, existing-home sales declined 2.6 percent to an annual level of 1.89 million in September but are 10.5 percent above a year ago. The median price in the South was $144,400, down 3.0 percent from September 2010.

Existing-home sales in the West fell 8.8 percent to an annual pace of 1.14 million in September but are 10.7 percent higher than September 2010. The median price in the West was $207,400, which is 4.5 percent below a year ago.

“The falloff in Western sales from a surge in August was expected because many lenders had lowered mortgage loan limits over concerns that sales wouldn’t close before the higher loan limits expired at the end of the September,” Yun said. “Given the concentration of higher cost housing in the West, particularly in California, many buyers were motivated to close in the months leading up to the changeover while they could still get low interest rates on conventional mortgages. Unless Congress reinstates the higher limits, the overall housing market recovery will be slower than it otherwise could be, and will hold back the broader economic recovery.”

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.

# # #

NOTE: NAR also tracks monthly comparisons of existing single-family home sales and median prices for select metropolitan statistical areas, which is posted with other tables at: www.realtor.org/research/research/ehsdata. For information on areas not included in the report, please contact the local association of Realtors®.

1 Existing-home sales, which include single-family, townhomes, condominiums and co-ops, are based on transaction closings. This differs from the U.S. Census Bureau’s series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Because of these differences, it is not uncommon for each series to move in different directions in the same month. In addition, existing-home sales, which generally account for 85 to 90 percent of total home sales, are based on a much larger sample – more than 40 percent of multiple listing service data each month – and typically are not subject to large prior-month revisions.

The annual rate for a particular month represents what the total number of actual sales for a year would be if the relative pace for that month were maintained for 12 consecutive months. Seasonally adjusted annual rates are used in reporting monthly data to factor out seasonal variations in resale activity. For example, home sales volume is normally higher in the summer than in the winter, primarily because of differences in the weather and family buying patterns. However, seasonal factors cannot compensate for abnormal weather patterns.

Single-family data collection began monthly in 1968, while condo data collection began quarterly in 1981; the series were combined in 1999 when monthly collection of condo data began. Prior to this period, single-family homes accounted for more than nine out of 10 purchases. Historic comparisons for total home sales prior to 1999 are based on monthly single-family sales, combined with the corresponding quarterly sales rate for condos.

Update on Benchmark Revisions: All major statistical data series go through periodic reviews and revisions to ensure that sampling and methodology keep up with changes in the market, such as population changes in sampled areas, to ensure accuracy. NAR began its normal process for benchmarking sales at the beginning of this year in consultation with government agencies, outside housing economists and academic experts.

There will be no change to median prices or months-supply of inventory. Although there will be downward revisions to sales volume and unsold inventory, there will be no notable change to previous characterizations of the market in terms of sales trends, monthly percentage changes, etc.

In the past NAR has benchmarked to the decennial Census, most recently to the 2000 Census, because it included home sales data. However, the data are no longer included in the Census, so we’ve had to develop a new approach using an independent source to improve methodology and to permit more frequent revisions.

Preliminary data for the new benchmark will undergo broad review shortly by professional economists and government agencies. After any issues that may surface in the review process are addressed, we will update monthly seasonal adjustment factors and publish revisions.

2 Contract failures, all-cash transactions, investors, first-time buyers, and distressed sales are from a monthly survey for the Realtors® Confidence Index, posted at Realtor.org.

3 The only valid comparisons for median prices are with the same period a year earlier due to the seasonality in buying patterns. Month-to-month comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Changes in the composition of sales can distort median price data. Year-ago median and mean prices sometimes are revised in an automated process if more data is received than was originally reported.

4 Total inventory and month’s supply data are available back through 1999, while single-family inventory and month’s supply are available back to 1982 (prior to 1999, condos were measured quarterly while single-family sales accounted for more than 90 percent of transactions).

5 Because there is a concentration of condos in high-cost metro areas, the national median condo price often is higher than the median single-family price. In a given market area, condos typically cost less than single-family homes.

The Honest Truth: People Are Buying Houses

The Honest Truth: People Are Buying Houses
Posted by Jim Gillespie

I love my iPad. And one of my favorite apps is Zite. If you don’t have it, get it! It pulls articles of interest to you and essentially creates a daily online magazine with sections of interest to you. And what’s really cool about it is that it doesn’t only pull content from mainstream outlets, but allows me to read “off-the-beaten path” articles or blogs I might not have found before.

My “real estate” section routinely pulls blog posts from an outfit called The KCM blog. Yesterday I saw this great post and thought I’d share it. As a math guy, I loved the simple presence. The author broke down the National Association of Realtor’s estimate for annualized home sales for 2011 and determined that nearly 14,000 homes are being sold every day.

I’d like to break it down a little more. With 22% of all August sales being to investors, that leaves 10,749 homes being sold every day to “regular” people. Those with a lifestyle need. Births. Marriages. Job promotions or transfers. A myriad of other reasons.

Why is that figure important? Because it showcases that those with a lifestyle need and the financial viability to do so ARE buying homes. They are taking advantage of the lowered – yet correcting – prices, increased inventory affording choice and all-time low mortgage rates. These nearly 11,000 “regular” homebuyers a day are really smart.

I know there are many, many people who would love to enter the home buying process today but can’t. The economy is tough, unemployment is high and consumer confidence is low. And, I know, we as people are almost pre-wired to follow the herd.

But in homeownership today, I caution you to make sure the herd has your individual best interests at heart.

No matter where I travel and no matter how many people I meet – both inside and outside of real estate – I continually hear stories of people who just bought a home. These people looked at their individual situations and made the determination that was OK for them to be an active participant in the home buying process.

Is it home ownership for everyone today? No. But for nearly 11,000 “regular” people a day it is!

As always, I’d love to hear your thoughts.

For Buying or Selling, it helps to have a guide that gives you straight answers. For more information on buying, selling, or renting out an income property in San Diego, please call Frank Rashid's cell phone at (858) 676-5250 or email him at rashid@rashidrealty.com. More to follow within the next couple of weeks.

FICO Score and its importance

What is a FICO Score?
FICO is a branded name credit score and stands for Fair Isaac Corporation, which originally developed this method of measuring an individual’s creditworthiness through a number of factors. FICO scores range from 350 and 850.

What’s in your FICO Credit Score?
FICO Scores are calculated from a lot of different credit data which can be grouped into five categories Payment History, Amounts Owed, Length of Credit History, New Credit, and Types of Credit Used as outlined in the chart. The percentages in the chart are based on the importance of the five categories for the general population and reflect how important each of the categories is in determining your FICO score.

Why FICO Credit Scores are Important?
Banks, credit companies and other financial institutions usually take a look at a number of factors before approving any loan. They will normally look at a person’s income, marital status, employment, length of stay at the current residence, and of course the FICO score. People with higher FICO scores will definitely have a better chance of getting approved in comparison to people with lower scores.

How to Improve One’s Credit Score?
It’s important to remember that the items in one’s credit report will stay there for at least seven years, so the negative marks will have to stay there for quite some time before disappearing completely.

One way to prevent a low credit score is by paying on time. Payment history is the most important factor when it comes to credit scores. Paying on time will slowly raise credit scores. Another thing that can be done in order to raise credit score is by reducing the amount of debt. Aside from payment history, debt is the second most important factor for one’s credit score. Reducing debt as much as possible can help increase credit score as well.

Don't Buy A Car Just Before Looking for a Home!

In conclusion, a word of advice not directly related to FICO scores. When people begin to think about the possibility of buying a home, they often think about buying other big ticket items, such as cars. Quite often when someone asks a lender to prequalify them for a home loan there is a brand new car payment on the credit report. Often, they would have qualified in their anticipated price range except that the new car payment has raised their debt-to-income ratio, lowering their maximum purchase price. Almost every time you sit down in a car dealership, it generates two inquiries into your credit.

Not all homeownership expenses are tax-deductible

Not all homeownership expenses are tax-deductible
By Stephen Fishman

Most people know that homeownership comes with great tax breaks: home mortgage interest and property taxes are deductible from federal income tax as itemized deductions. The value of these deductions should always be factored in when determining the true cost of homeownership.

However, homebuyers should be aware many of the costs of buying and owning a home are not deductible.

You cannot deduct any of the following items:

•insurance (other than mortgage insurance premiums), including fire, title and homeowners insurance;
•rent for occupying the home before closing;
•wages you pay for domestic help;
•depreciation;
•the cost of utilities, such as gas, electricity, or water; or
•forfeited deposits, down payments, or earnest money.
Real estate taxes

Homeowners can deduct property taxes based on the assessed value of their real property. However, not all charges imposed on homeowners by local taxing authorities are deductible. These nondeductible charges include charges for services.
The Internal Revenue Service says that an itemized charge for services to specific property or people is not considered tax, even if it is paid to the taxing authority. You cannot deduct a charge as a real estate tax if it is:

•a unit fee for the delivery of a service (such as a $5 fee charged for every 1,000 gallons of water you use);
•a periodic charge for a residential service (such as a $20 per month or $240 annual fee charged for trash collection); or
•a flat fee charged for a single service provided by your local government (such as a $30 charge for mowing your lawn because it had grown higher than permitted under a local ordinance).
You must look at your real estate tax bill to decide if any nondeductible itemized charges are included in the bill. If your taxing authority (or lender) does not furnish you a copy of your real estate tax bill, ask for it.

Assessments for local benefits

You also cannot deduct amounts you pay for local benefits that tend to increase the value of your property, such as assessments for the construction of streets, sidewalks, or water and sewer systems. You must add these amounts to the basis of your property.

You can, however, deduct assessments (or taxes) for local benefits if they are for maintenance, repair, or interest charges related to those benefits. An example is a charge to repair an existing sidewalk and any interest included in that charge.

If only a part of the assessment is for maintenance, repair or interest charges, you must be able to show the amount of that part to claim the deduction. If you cannot show what part of the assessment is for maintenance, repair or interest charges, you cannot deduct any of it.

An assessment for a local benefit may be listed as an item in your real estate tax bill. If so, use the rules in this section to find how much of it, if any, you can deduct.

Homeowners association assessments

You cannot deduct homeowners association assessments because the homeowners association, rather than a state or local government, imposes them.

The interest paid on a mortgage or mortgages of up to $1 million for a principal residence and/or second home is deductible as an itemized deduction.

Home loans

In addition, homeowners can borrow up to $100,000 against the equity in their home and deduct the interest as an itemized deduction. However, lender charges connected with getting or refinancing a mortgage loan are not deductible, including:

•loan assumption fees;
•cost of a credit report, and fee for an appraisal required by a lender;
•notary fees; and
•preparation costs for the mortgage note or deed of trust.
Settlement costs

The following settlement costs are not deductible, but may be added to the home's basis. This will reduce the amount of any taxable profit when the home is sold:

•abstract fees (abstract of title fees);
•charges for installing utility services;
•legal fees (including fees for the title search and preparation of the sales contract and deed);
•recording fees;
•surveys;
•transfer or stamp taxes;
•owner's title insurance; and
•any amount the seller owes that you agree to pay, such as back taxes or interest, recording or mortgage fees, cost for improvements or repairs, and sales commissions.

A REAL ESTATE BROKER IS NOT QUALIFIED TO GIVE LEGAL AND TAX RELATED ADVICE. THE INFORMATION ON THIS BLOG POST IS FOR GENERAL KNOWLEDGE ONLY. YOUR SPECIFIC TAX SITUATION WILL DEFINITELY BE SINGULARLY UNIQUE. THE MANNER OF TAKING TITLE MAY HAVE SIGNIFICANT LEGAL AND TAX CONSEQUENCES. PLEASE CONSULT AN APPROPRIATE PROFESSIONAL.

For Buying or Selling, it helps to have a guide that gives you straight answers. For more information on buying, selling, or renting out an income property in San Diego, please call Frank Rashid's cell phone at (858) 676-5250 or email him at rashid@rashidrealty.com. More to follow within the next couple of weeks.

The Facts and Stats on the Value of a Real Estate Professional

Posted by Jim Gillespie July 28, 2011

I just read an article that made me laugh. I have seen my share of articles and headlines. But this one tops the list: Why Getting Rid Of Realtors Will Save The Housing Market

I hope no one believes anything in the article.

Sellers realize a real estate agent is extremely important today. In fact, according to real estate industry analyst Real Trends, the average commission paid to a professional sales associate has actually gone up because selling a home is more difficult today than it was five years ago. There will be approximately 30% fewer homes sold this year than in the peak year of 2006.

And you want to use an agent. Since 2004, the amount of homes that were For Sale By Owner (FSBO) has dropped from 14% to 9% of all homes sold. And the median price for all FSBOs last year was $140,000 compared to $168,000 for those who started as a FSBO and then hired an agent to get their home sold. That’s a 17.5% increase. Clearly doing it yourself leaves money on the table largely because pricing the home correctly is critical.

Buyers and sellers today are anxious, confused and nervous about engaging in the home buying and selling process. We know that both anecdotally and factually through a survey we did. Where once there was a lot of excitement in the process, today consumers are rightly cautious. Let’s face it, economic conditions impact all of us.

But through all of this, buyers are buying and sellers are selling. And they are doing so largely because of lifestyle reasons. Getting married, having kids, getting a job transfer or promotion, downsizing to a smaller home. These are just some of the reasons people continue to buy or sell today.

And clearly real estate agents play a major role in those transactions. They obviously help set the sales price, market the home, and guide you through every step of the process. And in most cases, they are paid a commission at the conclusion of the sale. And that commission is based upon the sales price, not “added on” as the article indicates.

I could go on and on about this article, but it’s just so off-base that I think 389 words on it is enough! So what do you think?

IRS's top 10 tax tips for home sellers

From time to time the IRS releases tips designed to help people with their taxes. Some of these are quite useful. This list of IRS tips is a good starting place for sellers to begin to understand this often complex area of tax law.

Here are the IRS's top 10 tax tips for home sellers:

1. In general, you are eligible to exclude the gain from income if you have owned and used your home as your main home for two years out of the five years prior to the date of its sale.


2. If you have a gain from the sale of your main home, you may be able to exclude up to $250,000 of the gain from your income ($500,000 on a joint return in most cases).


3. You are not eligible for the exclusion if you excluded the gain from the sale of another home during the two-year period prior to the sale of your home.


4. If you can exclude all of the gain, you do not need to report the sale on your tax return.


5. If you have a gain that cannot be excluded, it is taxable. You must report it on Form 1040, Schedule D, Capital Gains and Losses.


6. You cannot deduct a loss from the sale of your main home.


7. Worksheets are included in Publication 523, Selling Your Home, to help you figure the adjusted basis of the home you sold, the gain (or loss) on the sale, and the gain that you can exclude.


8. If you have more than one home, you can exclude a gain only from the sale of your main home. You must pay tax on the gain from selling any other home. If you have two homes and live in both of them, your main home is ordinarily the one you live in most of the time.


9. If you received the first-time homebuyer credit and within 36 months of the date of purchase, the property is no longer used as your principal residence, you are required to repay the credit. Repayment of the full credit is due with the income tax return for the year the home ceased to be your principal residence, using Form 5405, First-Time Homebuyer Credit and Repayment of the Credit. The full amount of the credit is reflected as additional tax on that year's tax return.


10. When you move, be sure to update your address with the IRS and the U.S. Postal Service to ensure you receive refunds or correspondence from the IRS. Use Form 8822, Change of Address, to notify the IRS of your address change.

These tips can be found on the IRS website at http://www.irs.gov/newsroom/content/0,,id=104608,00.html.

For Buying or Selling, it helps to have a guide that gives you straight answers. For more information on buying, selling, or renting out an income property in San Diego, please call Frank Rashid's cell phone at (858) 676-5250 or email him at rashid@rashidrealty.com. More to follow within the next couple of weeks.

Co-Signing on the Dotted Line

Co-Signing on the Dotted Line
By VICKIE ELMER

TIGHTER lending requirements and an unstable job market have made it tougher for some people, especially those just starting out, to qualify for a home mortgage on their own; finding a family member or close friend with good credit to co-sign a home loan may seem like the good solution.

But money managers and lenders caution those who are asked about co-signing against jumping into such an arrangement.

“A co-signer is really a co-borrower,” said John J. Vento, the president of the Comprehensive Wealth Management Group, a financial planning firm in Staten Island. “Unless you’re ready, willing and able to make the payments for the family member, I would recommend not co-signing for the loan.”

Indeed, if the principal party defaults on the loan, the co-signer is on the hook.

Ronald Rogé, a financial planner in Bohemia, N.Y., suggests that as a less risky alternative, potential co-signers consider providing a cash gift for the down payment. Under current tax laws, you can generally give as much as $13,000 to a person, free of gift taxes, or $26,000 per person, if a married couple filing jointly is giving the money.

“The only reason they want you to co-sign is they can’t afford the house,” Mr. Rogé said. “Make it between them and the bank” on the actual loan.

In 2010, 27 percent of first-time buyers received gifts from friends or relatives toward home purchases, up from 22 percent in 2009, according to a National Association of Realtors survey of 8,449 buyers released last fall. Nine percent received loans from relatives or friends, virtually the same number as during the boom year of 2005, the poll showed.

Those who are considering co-signing a mortgage must conduct some serious due diligence. First, you must understand why the family member or friend is asking for help. Even though it may be, say, your son or your sister, don’t be afraid to look into that person’s personal finances to help determine whether he or she will be able to repay the loan, and to peruse credit reports, which will show the track record for paying off debts.

“Take emotions out of it,” said Neil Diamond, a mortgage banker at Legacy Real Estate in Commack, N.Y. “Ask the questions you would of a stranger, as if it were an investment.”

Also, discuss worst-case scenarios before you co-sign. If your child lost her job or the mortgage became delinquent, what recourse would you have? Work out a written contract containing an agreement that you could, for example, require a sale of the property if the person you were helping was in danger of defaulting. Think about how to protect your interests in a foreclosure or loan default, Mr. Diamond said.

Other financial experts suggest you consider the family connection: how close you are to the person asking for a guarantor.

“When it gets into nephews and cousins,” said Ed Mooney, a wealth strategist with BNY Mellon in Manhattan, “it tends to be more tenuous” to agree to co-sign.

In addition to the potential for being held responsible for repaying a large mortgage if your relative or friend fell behind on payments, there are other potential risks. The mortgage shows up on your credit report, and that could affect your ability to borrow money or buy a second home. Any late payments by the principal borrower will also show up on your report — and if there are several of them, they will very likely reduce your credit score.

Yet Mr. Mooney and others say that co-signing may be inevitable in some instances, given the financial environment. So after you’ve signed on the dotted line and the person you are helping has moved in, keep regular track of that person’s mortgage payments. Request that you be copied in on statements or online payments so you know they are being made, Mr. Mooney added.

And who knows? In three years or so, your relative may have improved his creditworthiness and might even remove you as a co-signer.

For Buying or Selling, it helps to have a guide that gives you straight answers. For more information on buying, selling, or renting out an income property in San Diego, please call Frank Rashid's cell phone at (858) 676-5250 or email him at rashid@rashidrealty.com. More to follow within the next couple of weeks.

Why Real Estate May Be The Buying Opportunity of the Decade

Why Real Estate May Be The Buying Opportunity of the Decade
There’s a convincing argument that real estate is today’s best long-term buy.
By MICHAEL SIVY

No one knows what the economy or the stock market will do over the next six months. But when your time horizon is 20 years, the outlook is actually a lot clearer. And right now, all the trends are lining up to make real estate a fantastic long-term buy.

Of course, if you look at recent real estate statistics, the picture is a total catastrophe. Home prices are down by a third, and the decline recently exceeded that of the Great Depression. Across the country, 2 million homes are in foreclosure and another 2 million are more than 90 days behind in their payments. The backlog of foreclosures could last two or three years.

Falling home prices plus the foreclosure backlog probably mean a flat-to-down market over the next couple of years. But beyond the current desolation, the outlook is exactly the opposite. In fact, three different trends are aligning that figure to produce a major home-price boom over the next 20 years.

1. The Economic Cycle. Admittedly, the current recession is far worse than a typical cyclical downturn. Nonetheless, the economy has grown for seven straight quarters. It is possible that there could be a double-dip recession – triggered perhaps by the default of Greece or Portugal. But the worst damage to the U.S. economy appears to be behind us. Home prices are largely driven by demand, which depends on the number of people working, their prospects for salary increases and the availability of credit for mortgages. All three of those things are bad right now, but they typically lag the economic cycle for GDP. Once the economy finally recovers, the factors that drive housing demand will follow.

2. The Real Estate Bust. The collapse in housing prices has destroyed confidence among home buyers and left perhaps a quarter of all properties worth less than the mortgages they carry. But the experts see prices within 5% to 10% of a bottom. Once the process is done, prices will have been knocked all the way down. As a general rule, the worse the crash in a market, the longer the subsequent recovery can last, because there is nowhere to go but up.

3. The Inflation Outlook. The combination of a cyclical economic recovery and the end of the housing bust is by itself reason enough to buy real estate. But in my view, there is an even more compelling long-term argument – the near-inevitability of higher inflation, as I have argued before. Basically, if the U.S. continued building up debt at its present rate, the country would eventually end up where Greece is today. The reason that won’t happen is that while Greece’s debt is in euros, a currency it can’t control, U.S. debt is in dollars. The U.S. will always be able to pay its debts because the Federal Reserve and the Treasury can simply work together to create more dollars (what people used to call “printing money” in the days before electronic funds).

The catch is that creating money that way would eventually lead to inflation and the devaluation of the U.S. dollar. In such an environment, any kind of tangible property appreciates rapidly. The next two or three years should offer exceptional opportunities for buying actual real estate – primary residences and vacation homes.

For Buying or Selling, You Need a guide that gives you straight answers. For more information on buying, selling, or renting out an income property in San Diego, please call Frank Rashid's cell phone at (858) 676-5250 or email him at rashid@rashidrealty.com. More to follow within the next couple of weeks.

A Home Is a Lousy Investment!

NAR response Letter to the Editor of The Wall Street Journal

NATIONAL ASSOCIATION OF REALTORS®’ Chief Economist Lawrence Yun sent the following response to the Letters editor of The Wall Street Journal in reaction to a July 11, 2011 article, “A Home Is a Lousy Investment.”
________________________________________
July 13, 2011
Dear Sir:

The author ignores some important facts in arguing against the financial benefits of owning a home (“A Home is a Lousy Investment,” July 11, 2011). First, most home buyers do not pay cash for a home, but instead take out a mortgage along with a down payment. Following the author’s example, a home buyer in California who purchased a median priced single-family home in 1980 ($99,550) with a 20 percent down payment ($19,910) would see that investment grow to $296,820 when the home was fully paid off in 2010. Investing the same $19,910 in the Dow-Jones Industrial Index in 1980 would result in a balance of just over $238,000 in 2010 and be subject to taxes on the investment gains along the way.

Second, during the 30-year period while the homeowner is whittling down their mortgage balance and banking home equity, the renter has been paying rent that has increased by an average of 3.7 percent per year even as the monthly principal and interest payments on a 30-year fixed rate mortgage remain level. Based on rental trends, it is not too difficult to come up with reasonable scenarios where the investor who rents a home will pay significantly more in rent than the homeowner will pay in mortgage interest over the span of the 30-year mortgage. That’s because rent payments for a comparable home could easily exceed the principal and interest payment on a 30-year fixed rate mortgage in as few as seven or more years. In the end, the homeowner will have a free and clear asset while the renter will continue to pay rent.

Third, many homeowners also are able to take advantage of deductions for mortgage interest and property taxes when filing their federal income tax return making the cost of ownership even more favorable compared with renting. Furthermore, a capital gains deduction of up to $500,000 ($250,000 for single homeowners) applies when the home is sold.

Fourth, homeownership builds wealth. According to the Federal Reserve’s 2009 Survey of Consumer Finances, the median net worth of the typical homeowner exceeds $190,000 but is less than $4,000 for the typical renter. Given this difference, it’s hard to see how long-term renting is a strategy for financial stability and independence.

And, finally, people who buy homes well within their budget are long term planners. Research suggests that people who are long term thinkers and willing to forego short term gratification do well in many dimensions of life-wellness measures. That is why homeownership meets long term objectives and provides great incentives for people to work hard and lay the foundation for a stable and successful country.

Lawrence Yun
Chief Economist, NATIONAL ASSOCIATION OF REALTORS®
Washington, D.C.

Rather than sitting on the fence … why not own it?

I wanted to call your attention to an advertisement that Realogy and our brands placed in today’s edition of USA TODAY. We did so because we felt it was important to take a leadership position in the industry and deliver a visible pro-housing message in the market at a time when too many others - ranging from Congress to consumers - appear to be sitting on the fence about homeownership.

Five supporting reasons why now is a compelling time for qualified buyers to purchase a home.
1) Homes are more affordable – current housing prices are down 27% on average across the nation from peak values five years ago,[1] and the national affordability index continues to hover at record levels.

2) Rates are low – at 4.6%, 30 – year fixed mortgage interest rates remain near historical lows.[2]

3) Timing is everything – conforming loan limits will be reduced on Oct 1, 2011, which will decrease the availability and affordability of mortgage credit for many home buyers in 42 states [3]

4) Homeownership is still the American dream – nearly nine in 10 Americans say homeownership is an important part of the American Dream [4]

5) Financing is available – today’s borrowers needs to have stable employment of at least two years; sufficient income to cover the monthly mortgage payment and living expenses; adequate saving to make at least a 3.5% down payment; and, in general a good credit score of at least 620 [5]. If you meet these basic requirements and plan to live in the home, you may be well on your way!

We recognize that unemployment levels are still high, but the fact remains that 90% of Americans do have jobs. Thus, we hope that our message will encourage qualified homebuyers and sellers to consider the facts.

[1] according to Freddie Mac House Price Index (June 2006 to March 2011). [2] Primary Mortgage Market Survey® data according to Freddie Mac as of July 7, 2011. Based on average 30-year fixed mortgage rate with an average 0.7 point. [3] new loan limits published by FHFA and HUD. [4] New York Times/CBS News poll. June 24-28, 2011. [5] FHA requires minimum 3.5% down payment; conventional mortgages will require a down payment of 5% or more, FICO score minimums may be higher or lower depending on loan type, income history, property type and other factors.

For Buying or Selling, you need a guide that gives you straight answers. For more information on buying, selling, or renting out an income property in San Diego, please call Frank Rashid's cell phone at (858) 676-5250 or email him at rashid@rashidrealty.com. More to follow within the next couple of weeks.

Seven Out of 10 Renters Say Owning a Home Is a Top Priority

Most Americans still believe that owning a home is a solid financial decision, and a majority of renters aspire to home ownership as a long-term goal. According to the 2011 National Housing Pulse Survey released on July 6th by the National Association of Realtors®, 72 percent of renters surveyed said owning a home is a top priority for their future, up from 63 percent in 2010.

Seven in 10 Americans also agreed that buying a home is a good financial decision while almost two-thirds said now is a good time to purchase a home. The annual survey, which measures how affordable housing issues affect consumers, also found that more than three quarters of renters (77 percent) said they would be less likely to buy a home if they were required to put down a 20 percent down payment on the home, and a strong majority (71 percent) believe a 20 percent down payment requirement could have a negative impact on the housing market.

"Despite the economic setbacks Americans have experienced in today's current climate, it is clear that a strong majority still believe in home ownership and aspire to own a home," said NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I. "However, achieving the dream of home ownership will become increasingly difficult for buyers if they are required to make a 20 percent down payment, which may be a reality for many of tomorrow's buyers if a proposed Qualified Residential Mortgage rule is adopted. That is why Realtors® are strongly urging regulators to go back to the drawing board on the proposed rule."

When asked why home ownership matters to them, respondents cited stability and safety as the top reason. Long-term economic reasons such as building equity followed closely behind. On a local level, respondents said neighbors falling behind on their mortgages and the drop in home values were top concerns. Foreclosures also continue to remain a large concern, with almost half of those surveyed citing the issue as a problem in their area.

The 2011 National Housing Pulse Survey is conducted by American Strategies and Myers Research & Strategic Services for NAR's Housing Opportunity Program. The telephone survey polled 1,250 adults nationwide, with an oversample of interviews of those living in the 25 most populous metropolitan statistical areas. The study has a margin of error of plus or minus 3.1 percentage points.

Information about NAR is available at www.realtor.org. This and other news releases are posted in the News Media section.

For Buying or Selling, You Need a guide that gives you straight answers. For more information on buying, selling, or renting out an income property in San Diego, please call Frank Rashid's cell phone at (858) 676-5250 or email him at rashid@rashidrealty.com. More to follow within the next couple of weeks.

U.S. Homeowners Shift to 15-Year Loan Refinancing to Add Equity

By Prashant Gopal - Jun 15, 2011 9:00 PM PT .

While millions of U.S. homeowners have negotiated lower monthly mortgage bills in an effort to avoid foreclosure, Cecelia Kirchman happily added $250 to her payment when she refinanced last August.

Kirchman took out the new loan to reduce her interest rate to 4.5 percent from 7 percent, and slice the term in half to 15 years. She said she has paid down more principal in the past 10 months than in the previous six years of owning her home in the suburbs of Washington, D.C.

“It’s unbelievable,” said Kirchman, a marketing director for a financial-planning firm who lives in a ranch-style house in Frederick, Maryland, with her husband, Mark. “For very little more each month, I’m paying it off much more quickly.”

The couple are among the growing number of “equity builders” -- creditworthy homeowners with steady jobs and enough cash to lock in near record-low interest rates and shorten the length of their loans, said Stuart Feldstein, president of SMR Research Corp., a market-research firm in Hackettstown, N.J., that focuses on financial services. Others are opting for what’s known as a cash-in refinancing, in which borrowers write a check at the closing to shrink the amount they owe on the property.

The rationale for equity building when foreclosure isn’t a threat is simple. The future interest payments homeowners can forgo by reducing the length of their loan or pumping cash into the deal is greater than what they’d otherwise earn in safe investments such as a bank account or money-market fund, SMR’s Feldstein said. As an added incentive, the 15-year fixed mortgage is the cheapest relative to the 30-year loan than it’s ever been.

15-Year Loans
The portion of borrowers refinancing in January who took 15-year mortgages rose to 29 percent from 11 percent two years earlier, according to the most recent data available from CoreLogic Inc. (CLGX), a real estate information firm in Santa Ana, California. Mortgages with 30-year terms accounted for 52 percent of refinancings in January, down from 80 percent in January 2009.

The share of cash-in refinancings reached a record 44 percent in the fourth quarter, according to data from Freddie Mac dating to 1985. While the share fell to 21 percent in the first quarter as mortgage rates climbed, it was almost double the quarterly average over the past 26 years.

“They are people who -- rather than waiting for home values to rise -- are taking matters into their own hands,” Feldstein said. “They are building equity on their own.”

Refinancing applications have increased 36 percent since the start of the year, according to a Mortgage Bankers Association index. The average weekly rate is about a third below last year’s pace as millions of Americans can’t qualify for a new loan.

Owning a Home Essential to the American Dream, Survey Shows

June 7, 2011 - Despite the ups and downs of the housing market, home owners and non-owners alike consider owning a home essential to the American Dream.

That's the key finding of a recent survey of people likely to vote in 2012 that was conducted on behalf of the National Association of Home Builders (NAHB) by Public Opinion Strategies of Alexandria, Va., and Lake Research Partners of Washington, D.C.

"The survey results show that Americans see beyond the immediate housing market to the enduring value of homeownership," said NAHB Chairman Bob Nielsen, a home builder from Reno, Nev. "An overwhelming 75 percent of the people who were polled said that owning a home is worth the risk of the fluctuations in the market, and 95 percent of the home owners said they are happy with their decision to own a home," Nielsen said.

"Homeownership is worth the risk, pure and simple," said Neil Newhouse, a partner and co-founder of Public Opinion Strategies. "Even though the market is weak, people who don't own say they want to buy a house. Almost three-quarters of those who do not currently own a home, 73 percent, said owning a home is one of their goals. And among younger voters who are most likely to be in the market for a home in the next few years, the percentages are even higher," Newhouse said.

One of the more striking aspects of the survey results is the intensity of sentiment among potential voters, according to Celinda Lake, president of Lake Research Partners. "People believe overwhelmingly that owning a home is an anchor to the American Dream," she said. "It's an anchor to your retirement, and it's an anchor to your personal economic well-being."

Among the other survey results:

Homeownership and a retirement savings program are considered by voters to be their best investments.

80% of home owners would advise a close friend or family member just starting out to buy a home.

Saving for a downpayment and closing costs is the biggest barrier to homeownership.

Americans believe that owning their own home is as important as being successful at their job or being able to pay for a family member's education.

"Owning a home isn't just a policy to people," said Lake. "It isn't just a commodity to people. It is a core value."

This national survey of 2,000 likely 2012 voters was conducted May 3-9, 2011 by Public Opinion Strategies of Alexandria, Va., and Lake Research Partners of Washington, D.C. It has a margin of error of +2.19%.

Public Opinion Strategies is a national political and public affairs research firm based in Alexandria, Va. Founded in 1991, it has conducted more than 6 million interviews with voters and consumers in all 50 states and over two dozen foreign countries.

Lake Research Partners is a leading public opinion and political strategy research firm providing expert research-based strategy for campaigns, issue advocacy groups, foundations, unions and non-profit organizations.

To view slides on the poll, please go to www.nahb.org/VoterPoll

For Buying or Selling, You Need a Teacher that gives you straight answers. For more information on buying, selling, or renting out an income property in San Diego, please call Frank Rashid's cell phone at (858) 676-5250 or email him at rashid@rashidrealty.com. More to follow within the next couple of weeks.

Rental Property Inspection Checklist

Inspection checklist before renting your place:

1. All major utilities (electricity, gas, or water) must be turned on.

2. The cooking stove and oven must be clean and in working condition. All burner control knobs must be present.*

3. The refrigerator must be clean and in working condition.

4. The heating unit must be properly installed and vented and otherwise in good working order.

Check with SDG&E to ensure the safety of the heating system. Heater must be operational.

5. You must have hot and cold running water in the kitchen and bathroom(s).

6. There must be a shower or bathtub that is in good working condition.

7. There must be a flush toilet that works and does not leak.

8. The bathroom must have a window or working ventilation fan.

9. There must be no plumbing leaks or plugged drains.

10. All accessible outside doors and windows must have working locks.

11. Unit must have at least one exit door without a double‐keyed deadbolt lock.

12. All electrical outlets must have cover plates that are not cracked or broken.

13. There must be no missing, broken or badly cracked windows/window panes.

14. The roof must not leak.

15. The hot water tank for your unit must have a pressure relief valve and downward discharge pipe.

16. The carpet or linoleum must not have holes, tears, or loose seams.

17. Stairs and railings, inside and out, must be secure.

18. A stairway of four or more stairs requires a railing.

19. There can be no mice, rats, or insect infestation.

20. There MUST be a properly operating smoke detector on every level of the unit.

21. No cracking, chipping, scaling, or loose paint anywhere inside or outside of the unit if a child under the age of six resides or is expected to reside in the unit.

22. No excessive debris in or around the unit, such as an accumulation of boxes, paper, trash, wood, tires, machine or auto parts, batteries, paint cans, or old appliances. Derelict vehicles must be removed from the premises.

23. Security bars in the bedrooms must have a quick release device.

For more information on buying, selling, or renting out an income property in San Diego, please call Frank Rashid's cell phone at (858) 676-5250 or email him at rashid@rashidrealty.com. More to follow within the next couple of weeks.

Required Items For Loan Applications

The following items are often requested by your lender. You might want to begin gathering this information in anticipation of their request.
1. Last two years worth of W-2 forms.
2. Last four pay stubs or one month’s worth if you are paid less than often than every week.
3. Last three months of checking account and savings account bank statements (all pages).
4. Last Statements from your stock portfolio (stocks, bonds, 401(k), IRA, Money Market, etc. – all pages).
5. Twelve months of cancelled rent checks (both sides).
6. Copy of divorce decree and child/alimony support stipulations.
7. Copy of bankruptcy schedules and discharge (all pages).
8. Names, addresses and phone numbers of all landlords and all employers for the last two years.
9. Copy of valid Driver’s License and Social Security Card.
10. Appraisal and Credit Report fees

We can give you a specific estimate for closing costs and help you figure out what you absolutely need to pay and what is junk fee. Feel free to call Frank Rashid at (858) 676-5250 should you need more information.

If I had my life to live over – Erma Bombeck

I would have gone to bed when I was sick instead of pretending the earth would go into a holding pattern if I weren’t there for the day.

I would have talked less and listened more.

I would have invited friends over to dinner even if the carper was stained, or the sofa faded.

I would have eaten popcorn in the ‘good’ living room and worried much less about the dirt when someone wanted to light a fire in the fireplace.

I would have taken time to listen to my grandfather ramble about his youth.

I would have shared more responsibility carried by my husband.

I would never have insisted the car windows be rolled up on a summer day because my hair had just been teased and sprayed.

I would have sat on the lawn with my children and not worried about the grass stains,

I would have cried and laughed less while watching television and more while watching life.

I would never have bought anything just because it was practical, wouldn’t show soil or was guaranteed to last a lifetime.

Instead of wishing away nine months of pregnancy, I’d have cherished every moment and realized that the wonderment growing inside me was the only chance in life to assist in a miracle.

When my kids kissed me impetuously, I would never have said “Later. Now go get washed up for dinner.”

There would have been more “I love you’s.” More “I am sorry’s”.

But mostly, given another shot at life, I would seize every minute…look at it and really see it…live it…and never give it back.

Stop sweating the small stuff.

Don’t worry about who doesn’t like you, who has more, or who is doing what. Instead, let’s cherish the relationships we have with those who do love us.

Let’s think about what we are blessed with. And what we are doing each day to promote ourselves mentally, physically, emotionally as well as spiritually. Life is too short to let it pass you by. We have only one shot at this and then it’s gone!

Behind the Numbers: Pending Sales Index Up

By Dawn Wotapka

Here’s a bit of good news for the existing-home market: The National Association of Realtors’ monthly index for pending sales climbed 5.1% to 94.1 in March. That is (drumroll) the highest reading since November.

It was the second-straight monthly increase for the index, which tracks agreements to purchase homes. The results beat expectations: Economists were looking for a 1.5% increase.

But, before you break out the bubbly, know that the reading is 26% below its April 2005 peak. Plus, prices, already down 30% from the peak, continue their downward spiral. The median sales price for an existing home is forecast to fall to $169,800 this year, down from $172,900 in 2010.

A reading of 100 refers to the level of sales in 2001. A sale is considered pending when the contract has been signed but the transaction hasn’t closed. Pending sales typically close within one or two months of signing.

Here’s what economists had to say:

Ian Shepherdson, High Frequency Economics: This is a pleasant, though modest surprise. We think the January and February numbers were depressed by the severe winter weather and this gain makes up those losses. … With mortgage rates dropping back in recent weeks and payrolls now rising more rapidly, we think the odds favor a modest but sustainable increase in sales in the second quarter and beyond.”

Steven Wood, Insight Economics: “This report suggests that home re-sales are likely to improve modestly but remain at a relatively low level over the next couple of months.”

Joshua Shapiro, MFR Inc.: “Broadly speaking, this index, and what it implies for actual existing home sales, is roughly back to the level that prevailed before the homebuyer tax credit temporarily distorted market trends. But, in absolute terms these remain very depressed levels, and there is considerably more territory to cover in order to call the late 2010 move anything more than a rebound from a post-tax credit air pocket.”

Alan Zibel contributed to this article.

http://blogs.wsj.com/developments/2011/04/28/behind-the-numbers-pending-sales-index-up/

For Buying or Selling, You Need a Teacher that gives you straight answers. For more information on buying, selling, or renting out an income property in San Diego, please call Frank Rashid's cell phone at (858) 676-5250 or email him at rashid@rashidrealty.com. More to follow within the next couple of weeks.

Earthweek - Cutting Home Heating Bills: Ways to Save Your Money

Given that it is Earthweek, this seems to be an appropriate post. The synergy of cutting your home heating bill, saving your money, and helping mother Earth can coexist!

Solar Power: Consider heating your home with the sun's help. Energy from solar panels or using solar heat to supplement your normal heating source is cost effective in most parts of the world. The initial cost may seem higher, but over the long run it costs the least and there are generous tax rebates for installing solar panels.

Thermostat: Temperature variations near the thermostat will affect the whole house. Be sure your thermostat is located in an area that is not too cold or hot. Install an automatic timer to keep the thermostat at 68 degrees during the day and 55 degrees at night. If it seems chilly - put on a sweater.

Sunlight: Open up those draperies and shades in winter to let in the heat from the sunshine. If you're worried about fading the furniture - use a slipcover. Keep shade trees from blocking the suns rays into your house. Prune any branches that block the sunlight. If you've installed awning to block the sun in the summer make sure you take them off before the cold weather hits. Keep windows closed during cold weather, but be careful to "air out the house" on a regular basis to avoid buildup of any toxins.

Windows: Check to see that glass in all windows have fresh putty. If the putty in your windows is dry and cracked you may want to consider adding some newer sealant. Also seal any visible cracks with weather-stripping or cloth - newspapers will do if you're desperate. Repair all cracks and holes, large or small, in your roof, walls, doors and windows. Make sure you seal off anywhere that heat might escape. You may be able to cut heat loss in half by weather-stripping doors and windows. Don't forget the weather-stripping on your attic and basement doors to prevent heat from escaping.

Insulation: Think about upgrading the insulation in your home. If you haven't already, insulate your attic and all outside walls. Insulate floors over unheated spaces such as your basement, any crawl spaces and your garage. You actually lose more heat through poorly insulated floor spaces and basements in the average house than through drafty doors and windows. The savings here could be as high as $500 a year!

Furnace: Before you use your furnace for the first time in the cold weather have it serviced. Many gas and oil companies provide this in your service contract or for a small additional fee and it could amount to savings of up to $400. Inspect your furnace during the cold months. Keep parts clean. Replace air filters when necessary. Clean filters can save up to $60 a year on heating costs. Make sure that furnace cold air and warm air registers are not obstructed and vacuum them clean once a month. Turn off your furnace pilot light when heat is not necessary.

Fireplace: Check for cracks around fireplace. Keep heat in by caulking all cracks. Keep fireplace damper closed when not in use. Turn off heat when the fireplace is being used. A glass front or glass screen will reduce fireplace heat loss.

Pots and Pans: Cover pots and pans when heating liquids. Cooking utensils with flat bottoms and tight fitting covers save heat. Be sure pots and pans are right size for range burners and elements. Plan some meals so that entire meal can be prepared in oven at same time. Thaw frozen meats to almost room temperature before cooking. Turn off your oven about five minutes before cooking time is over. The heat in the oven will keep on cooking your food, and you'll save on gas or electric bills. Don't open the oven often to check food while it's cooking. You lose 20 to 50 percent of the heat each time you do - and you slow down the cooking process.

Government assistance: Check to see if you qualify for any government assistance with your heating bills if you have a low income or are a senior citizen on a fixed income. Check efficiency ratings before purchasing appliances of any kind. Then check tax breaks and homeowner's insurance policies for savings when you add energy conserving items to your home.

Utility Company: Check with your local electric company to find out if they have times during the day when the rates are lower. Using the oven, dishwasher, washing machine and other energy demanding appliances during these times may lead to big savings. Be careful. Some plans may make you pay a premium price for using electric during peak hours and you'll need to make sure to do wash and other chores during the off hours. Talk to your utility company for other suggestions for saving money on your heating bills. Many companies will actually send someone to your house for a home energy audit and offer suggestions to help you use less energy

Around the Web, check out more facts and information on how to save money on the those monthly electricity bills, and join the legions of homeowners who are "going green" and cutting dependency on foreign oil — in a fight to both cut costs and save the environment....

The Home Energy Saver - U.S government site featuring a home energy calculator for locations nationwide plus energy saving tips, tons of related resources, FAQ, glossary.

Energy Star - U.S. government-backed program helping businesses and consumers protect the environment through better energy efficiency, with online guides to lighting, appliances, heating & cooling, tips, facts and related resources.

EERE: DOE Financing Solutions - Homeowners - Energy efficient homes can save money in more ways than one. With guides to solar energy, consumer information for energy efficient appliances, insulation & sealing, wind turbine systems, landscaping tips and more for apartment dwellers.

Consumer Guide to Energy Savings - From the American Council for an Energy-Efficient Economy including recommendations on energy-efficient appliances, a home energy checklist, plus guides to energy efficient windows, air conditioning systems, halogen lighting, and other money saving tips.

Efficient Windows Collaborative - The benefits of energy efficient windows, how they work, and information on the selection process with a good listing of related resources.

Saving Electricity - The complete guide by "Mr. Electricity" with pages of advice on saving money & reducing consumption, with tips & tricks on using particular household appliances and more on alternative energy sources.

Source: www.chiff.com

Please let me know if you need to get a physical inspection done to evaluate the energy efficiency of your home. I have access to licensed professionals that do exactly this. In fact, now that I have been selling and managing real estate for so long, I have access to licensed professionals that I can trust for just about anything. You trust me and I will vouch for those that I refer to you just as if they were doing the work on my very own home. For your real estate needs, you need a guide. I can be easily reached at 858-676-5250 or via email at rashid@rashidrealty.com.