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Displaying blog entries 81-90 of 94

Bag Worms

Wednesday, September 17, 2008
by John Jacobus
I was checking my trees Wednesday evening and discovered one of my blue spruces had about 75 bags hanging from defoliated limbs... bag worms. They will actually kill a pine tree because evergreens don't regrow leaves.
 You have to check closely for little bags hanging from the limbs because from a distance they look like pine cones. So check them now and check closely!
 Those little degenerate pests are not actually the brightest worms on the block.  They will inhabit others trees and bushes so check everything, but they love evergreens.  I have found them also hanging from my gutters.  I don't know what they used to make their bags as the paint on the gutters and the shingles didn't look damaged.
 Dispose of the bags permanently... like burning them.  If those eggs hatch you will have an army of little green worms that will lay waste to your tree worse than Sherman marching through Georgia. 
 Bag 'em Dano.  
 

Mortgage Definitions

Monday, September 15, 2008
by John Jacobus
Who are Fannie Mae and Freddie Mac?  And what did they do with my loan? In the real estate business we use abbreviations for everything and most of us assume everyone knows what they mean.  In reality most people have no clue what we are saying let alone what we mean.  Here are some common abbreviations and what they mean.
 HUD-Department of Housing and Urban Development, the Federal Agency responsible for encouraging housing development.
 HUD 1 Statement-A document prepared by a closing agent describing a real estate transaction, including the escrow deposits for taxes, commissions, loan fees, points, hazard insurance and mortgage insurance.  Also called a closing statement or settlement sheet.
FHA-Federal Housing Administration, an agency of the U.S. Department of Housing and Urban Development (HUD). Its main activity is the insuring of residential mortgage loans made by private lenders. The FHA sets standards for construction and underwriting but does not lend money or plan or construct housing.
FHA mortgage-A mortgage that is insured by the Federal Housing Administration (FHA). Along with VA loans, an FHA loan will often be referred to as a government loan.
Fannie Mae (FNMA) - (don't confuse with Mae West) The Federal National Mortgage Association, which is a congressionally chartered, shareholder-owned company that is the nation's largest supplier of home mortgage funds.
Freddie Mac (FHLMC) - (not really an 80's rock band)  The Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac, is a government sponsored enterprise (GSE) of the United States federal government.  It is a stockholder-owned corporation authorized to make loans and loan guarantees.  The FHLMC was created in 1970 to expand the secondary market for mortgages in the US. Along with other GSEs, Freddie Mac buys mortgages on the secondary market, pools them, and sells them as mortgage-backed securities to investors on the open market. This secondary mortgage market increases the supply of money available for mortgages lending and increases the money available for new home purchases.
PMI-Private Mortgage Insurance, Mortgage insurance that is provided by a private mortgage insurance company to protect lenders against loss if a borrower defaults. Most lenders generally require PMI for a loan with a loan-to-value (LTV) percentage in excess of 80 percent.
OHFA-Ohio Housing Finance Agency, a state agency that helps first time homebuyers. OHFA can be used with FHA/VA or conventional loans.  Advantages are low interest rates and if borrower qualifies OHFA will front the down payment.  They have other criteria such as income limits, target areas and non-target areas etc. Most first time buyers qualify for the OHFA loan. 
If you have questions about these abbreviations, call or email me.  I'll "spell" it out in a little more detail.  

Heat

Wednesday, August 27, 2008
by John Jacobus
HEAT
     It is going to cost you more to heat this winter than it did last year.  My propane cost $1.65 per gallon last year ($.49.9 in 2003) and now it is $2.39 per gallon... 45% increase in one year.  Most homes use about 1000 gallons per year so expect to pay an extra $750 this year with propane.  Fuel oil is worse. $3.72 per gallon equates to $3720 per year for heat.   Electric companies are asking for 50+% increases so that won't be much better either.  Natural gas users... you will fare the best but count on prices going up.   Most likely firewood will be costing more due to gasoline prices and demand. 
There is some good news.  Global warming.  But, that may take too long so here are some things you can do right now to help cut your heating bill. 
WHAT'S A BODY TO DO?    
   Most home heat is lost through doors and windows.  So check the weather stripping on the doors and tell the kids the windows should actually be closed in winter.  Cut down the number of times your door is opened.  I'm trying to get Cheri to cut the number of times she lets her dog out... say down to 752 times a day!  That will help.  Has anyone noticed the average winter temperature in Harlem Township has gone up since Cheri got her dog?  I don't understand why her dog can't stay in the garage. It has a fur coat.  
     If your curtains blow in the wind with the windows closed, that could be a sign the windows need replaced.  The pay back won't take long at today's energy prices.  A decent vinyl window will cost $300 - $350 plus $100 - $150 for installation.  Andersen or Pella vinyl clad wood windows will cost about $450.  
     Don't forget the attic insulation.  An additional 2" layer of blown insulation will cost about $250 and will fill in those little gaps that lose your expensive heat.  I just bought a programmable thermostat that claims it will save me another 30% in heating costs.  When I get it installed I'll have my friend’s third grader show me how to program it. 
     Change out those bulbs.  Florescent bulbs now look like incandescent bulbs, both in style and the light.  You may have to change out those Hollywood light strips in the bath room and get a fancy fixture so you can use the florescent bulbs.  It'll save you money while making the bath room look more up to date.  A florescent bulb uses 1/4th of the electricity required by an incandescent bulb and will last 10 times longer!
 Feel free to call me with referrals of contractors we use.
Please:  no emails about dogs or global warming.  The snide remarks about dogs and the cynical remark about global warming are for levity.  Those aren't my true feelings. I love dogs and global warming.

Staging

Friday, August 22, 2008
by John Jacobus
Staging
 You've heard about it.  You watch TV shows about it. But does it really work? 
Regardless of the economy or the market when you sell your house it's a beauty contest.  Even in our current real estate market experienced, professional agents are selling houses if they are properly staged.  That means different things to each homeowner.  Some houses will be need reinforcing beams in the basement.  Others may need drywall and paint in the garage.  Stills others may just need a little paint and carpet.  The nicest houses sell first.  Everyone wants the best price or the HUD repo but when it comes to signing an offer to purchase the house that shows the best gets the nod.  Oh, yes we're working harder and have had to step up the marketing but homeowners have to do more too.  Where before all it would take was a good cleaning and repairing broken stuff, today's sellers have to stage their home.  That could mean a weekend or two and a couple hundred bucks, or hiring some help and investing a couple thousand.  
 A couple weeks ago a homeowner asked me to come over and suggest some staging to prepare to sell.  She just called me back and said "after we did everything you suggested we fell in love with the house all over again."  They're not selling. DRAT!  I did too good of a job again!
 Here's an idea.  Pretend you are selling and stage your house to sell. Maybe you'll fall in love with your house all over again...and if not, well I'm just a call away.    

Real Estate Values

Friday, August 15, 2008
by John Jacobus
HAVE REAL ESTATE VALUES BOTTOMED OUT?
   My wife Cheri said my comments last time were too harsh, negative and cynical.  Teressa and Grace weren't happy with it either but weren't as strong in their unkind comments.   So, I have some good news to share this week.  One simple way to see how the market is doing is to look at the number of sales compared to last year.  Here are the sales numbers compared to last year according to Todd Hanks, Delaware County auditor. 
 
January sales were down 27.12% from 2007
February sales fell back a little more bringing the YTD (year to date) number to 28.19% fewer homes sold
March turned us around and sales YTD improved to 26.16%     
April improved a little more reducing the YTD number to 25.38%
May helped to bring the number down to 23.55%
June numbers reduced the figure to 22.68%
July continued to improve bringing the total sales down to just 18.62% less than last year!
 
Now, there’s something for which you can breathe a sigh of relief.  Sorta like the dentist saying you need a tooth pulled but chances are good you won't die!
 
Since February the real estate market trend is improving.  The market started turning (in central Ohio) from a seller's market to a buyer's market mid year of 2005.  If the trend continues as it has for the last 7 months we should be back to a balanced market in 18-20 months... that is for Delaware County.  Your area may be a little better or little worse.  I have access to more data than I can put in a one minute tip, so call me if you want info about your area or subdivision.  An in depth analysis of the data would reveal the first time home buyer price range has not been affected much by our downturn.  The move up price range has been affected quite a bit and the luxury home market has been affected greatly.  Only makes sense, right?
 
 
Oh, by the way, have you seen gas prices?  There's lots to be positive about!    

Mortgage Bailout

Friday, August 08, 2008
by John Jacobus
BAIL OUT!  BAIL OUT!  BAIL OUT!     Those are exciting words in those war movies I still enjoy.  However, the word bailout means something different today. It means that you and I are being forced to pay for the sins of a few... well, maybe more than a few. Although I am not a big fan of government getting involved in bailing out businesses and individuals, in this case the housing debacle is so large the consequences to our economy would be horrendous if they don’t do something.
 
  This whole housing fiasco has been caused by over building, low interest rates, no down payment loans, adjustable rate mortgages and the American optimism that the economy always goes up and never comes down.
 
What is aggravating is that congress debates mindless trivia while ignoring the financial and energy issues that have been brewing for over 20 years. 
 
  I saw this coming back in 1998.  Since that time I have advised my clients (based off sales statistics) that buying a new home is like buying a new car. A car loses about 25% of the value when you convert it from new to used  and a house will lose 15% of the value the day you make it a used house (move-in date) and another 6% if the builder paid your down payment and closing costs.  The difference is that cars continue to depreciate and real estate use to “appreciate”, therefore masking the fact that it actually lost value when you moved in. What I didn't foresee was the huge impact that it was going to have on the whole real estate market.  
 
  You still get to share in the cost of the bailout in two ways, first in the 20% decline in your property has experienced in the last couple of years, and you better believe congress will be in your pocket in order to balance the budget.  Where else can they go to get money?  No…not oil companies. They don't really pay taxes.  They pass them through to you and me at the gas pump.  People pay taxes, businesses don't.  So you may as well get your checkbook out because they will be asking for it soon.    
  
So call your congressman and thank him or her for doing a great job and tell ‘em you’ll have your checkbook ready.
 
Attached is an article from the August 2008 "OHIO REALTOR" magazine.    
 
 
John Jacobus, ABR, GRI, CRS
 
RE/MAX Impact
Broker/Owner
440 Polaris Pkwy
Westerville, OH 43081
614-523-1000
Cell 614-296-8350
 
 
 
 
 

Double Moving

Friday, August 01, 2008
by John Jacobus
John's Tip this week about Double Moving takes about 47 seconds to read.
 
   The idea for this week's tip comes from a conversation with Gayle Henthorne.   We were discussing the double move the sellers of the home he was buying would need to make.  Since half of the houses on the market are vacant the sellers who are living in their homes are finding they have to give possession at closing so they don't lose the buyer to a vacant home.  Gayle said, "Welcome to the 'Double Movers Club' ".  He had just moved into an apartment until the transaction closes on his new home.  It caused me to think back on the last time I was able to negotiate 30 days free possession for a seller.  I can't even recall the last time.  I did negotiate a delayed possession on one last month, but the seller had to make the buyer's payment.  
 
  It had been a long standing tradition in central Ohio for sellers to get 30 days possession after closing to vacate. FREE! with black racing stripes!!  This area was one of the few if not the ONLY place in America to have such a custom.  How did that come about?  Here's my take on it.  Central Ohio is one of the few places the seller pays for the title search and title insurance.  The cost of title insurance is about the same cost as a payment on the house.  So maybe the custom of permitting a seller possession after closing was just a trade off.  The local custom of seller paying for the buyer’s title still remains even though the current market has caused the 30 days free to go away.  Say goodbye to an old friend.  The 30 DAYS FREE has gone the way of women's hose that had the black racing stripe up the back of the leg.  Reminds me of my first love, a white ’67 Z/28 Camaro
 
John Jacobus, ABR, GRI, CRS
 
RE/MAX Impact
Broker/Owner
440 Polaris Pkwy
Westerville, OH 43081
614-523-1000
cell 614-296-8350
 
 
 

Interest Rates

Friday, July 25, 2008
by John Jacobus
BAM!  Your house just went down in value.  Interest rates shot up this week so property values just went down.  It's just like the U shaped flask that your chemistry teacher used in high school.  If you blow on one side the fluid goes down but it raises the level on the other side. Interest rates up: Home values down.  Interest rates down: Home values up. 
 
As a Realtor and eternal optimist I always try to find the silver lining.  Here are the stats on the central Ohio market taken from the July IN CONTRACT magazine published by the Columbus Board of Realtors. I'll unveil the silver lining at the end.  Sales in the Columbus MLS (Multiple Listing Service) are down 14.1% from last year. Average sale price is down 3.9%.  Where is there a silver lining in that?  Here's my take on it.  The year started off at nearly 25% fewer sales than 2007.  It has actually improved in the last 6 weeks.  Have we hit the bottom and started to rebound?  I think so.  We have had unbelievably low interest rates which now have gone up to July 2007 levels (6.75%)  Other factors that may affect our recovery are gasoline prices, other energy costs, inflation, tax increases. Those could slow our recovery.  Oh, yes, there is one more bit of good news; the number of properties for sale has decreased by 5.2%.  Some areas are actually experiencing a balanced market (6 months of inventory).  A seller’s market is when there is less than 6 months of inventory.  A buyer’s market is when there is more than 6 months inventory.  In fact, just last month one of my clients listed their home and we had three offers at the same time.  That allowed us to work the buyers against each other to find the one who would pay the most.  (You do remember I am a licensed auctioneer too…right?J)    
 
Support the economy. Buy a house... and don't forget to tell me… “John sent me”! 

MOLD

Friday, July 18, 2008
by John Jacobus
MOLD…Should you be concerned? 
 
THE STORY: I recently represented a client on the sale of his home.  The buyer had a normal home inspection, which cost about $300 and is always a good idea. They also paid about another $125 for a radon inspection and $300 for a mold inspection.  The inspector used a cheap dime store radon test kit.  The results were "yep...you got radon and you got mold".  The mold test showed some "spores" but the inspector said it may not be mold but possibly tree or plant pollen.  The buyer requested the seller mitigate the radon and "determine the cause of mold, fix it and "scrub the air".  SCRUB THE AIR!? What the heck is that?  Mom used to "scrub" behind the ears of my brothers and sisters.  She wasn't big enough to scrub mine.  I wouldn't put up with that nonsense.  
  
 A prudent person would want a professional radon test and a professional mold test before spending $1500 to mitigate.  To pacify the buyer, who now thinks he is buying a Love Canal house, my client yielded to the threat of losing his buyer and is paying for radon mitigation and is having the air scrubbed. 
 
I'm not making light of mold.  It is a serious condition in some houses.  However, on this particular house, the sump pump has run about three times in 21 years.  Mold likes damp, dark places... like around the sump pump or corners of your basement where overflowing gutters, misaligned downspouts, or improper grade directs water to the basement wall.  Concrete block, being porous, actually wicks water from the outside to the inside wall where it evaporates leaving on the block some white stuff I call "white stuff" (the real word is "effervescence").  
   
Professional mold mitigators look like Neil Armstrong in a space suit and use a breathing apparatus to avoid inhaling the mold spores.  Sometimes it may be necessary, but I wonder if it's not just part of the show.  One can not charge as much if he uses a $.59 face mask, now can he? 
 
THE FIX.  Keep water away from basement walls.  Paint interior of block with a good basement paint.  Keep moisture out of the air with a dehumidifier.  Clean areas of concern with bleach, or hire a professional mold inspector who uses professional equipment.    
 
MORAL TO THE STORY Use professional inspectors.  The cheapest price is not always (or ever) the best choice. Check periodically for mold.     

Radon

Friday, July 11, 2008
by John Jacobus
RADON…Should you be concerned?
  Radon (a known carcinogen) was a big issue 15 years ago and then died down.  Only about 1 in 20 homebuyers will request a radon test.  Radon is a radioactive gas that comes from decaying radium (form of Uranium).  Ohio isn't exactly the Uranium capital of the world so our numbers are generally low.  They measure radon in picocuries per liter of air.  The U.S. outside air averages .4, so you can't get rid of it altogether. EPA recommends a reading of 4.0 or less.  Now I know you may look on the EPA with a jaundiced eye, and like me would love to have them deported to China or India to mess up their economy, but that ain't happnin' so we need to deal with them and the radon.
 
   Radon is colorless and odorless. It's also heavy so it settles to the basement.  Most of us don't spend much of the day in the basement so it isn't all that important to us.  However, if you live or sleep in the basement or spend a lot of time there, maybe you should have it checked out.  Kits are available at hardware stores and on-line for $15.00.  You can lower the test readings by caulking cracks in the basement floor, sealing the sump pump hole and/or installing a fan to draw it from under the concrete and exhaust it under your neighbor’s window.  Crawl spaces should be sealed.  Either concrete the area or install a plastic barrier to prevent gas from escaping from the ground.  Airing out the basement also helps. 
 
   Readings in Central Ohio average 8 - 12 picocuries.  That's 2 to 3 times the recommended reading but some areas of our state test in the 500-600 range.  Maybe that's why so many folks smoke who live in Appalachia... when they inhale smoke from a cigarette it's the only fresh air they get!
 
   So, should you be concerned about radon?  Depends on how you use the basement.  You could have radon professionally mitigated just to be on the safe side, ($800 - $1500) but that may be a little overkill.  Opps!  Bad choice of words.  Let's face it; most of us don’t drive a Mack truck just to be a little safer on the highway. 

Displaying blog entries 81-90 of 94


Last modified: 10/24/08