November
2010
Renovating? Beware…
by Evan, Boston 
Here are some scams that must be avoided during the process of home renovations:
One time specials do NOT exist…
It is extremely rare that business or contracting company is offering you a “special sale”. Sales in that industry tend to last a long time, usually for years. With that being said, if a contractor approaches you with a special offer, do your homework and feel free to request evidence of prior quotes that he has done on similar projects. In other words, don’t feel pressured into accepting a deal that may expire before you’ve had a chance to do research, get multiple competing bids and check up on references.
“In the Neighborhood” contractors…
Contractors have been known to show up unplanned every once in a while. They may claim that they were in the neighborhood and noticed some problems with the exterior of your home. Next thing you know, he could be on your roof, beginning a lengthy, expensive project you did not sign up for. They will usually knock on your door and tell you that if you hire him on the spot that you will save a lot of money, then it just so happens that he was prepared with all of the materials and tools needed to begin the project. This approach is more common than you may believe, but its often used to entice you into doing things that are visible from the outside, such as roofing, painting, window caulking, deck restoration or even chimney repair. If the contractor does have all the materials at his convenience, make sure to ask a lot of questions. A lot of times they will be left over from an earlier job and the previous client footed the bill. This could lead to a quick, rushed job with a fat bill!
Paid in full…
If the work hasn’t started yet and the contractor is asking for a full payment, it is time you re-think who you’re using. Paying in full should never be an option, this will undoubtedly lead to a disappearing contractor who never starts the work. Of course there are reasonable down payments to cover startup labor costs and materials, but the rule of thumb is that it should not exceed one-third of the total contract value. Balance your payments by milestones of project completion. Then of course hold a sizable portion of the money until the project is finished. Your final payment should be made once you’re 100% satisfied with the work. Be in control of your money.
Model Homes…
Many contractors like to have a model home, showing off their work to potential clients. You may come across a scam artist that will proposition an agreement for you to allow him to fix up your home as the “model” unit in exchange for an amazing price. This is most likely a scam, reputable contractors do no need models to showcase their work and if they do, they will not use an occupied home. Stay away from any model home deals.
Notes…
All in all, just use your common sense and if something seems fishy, don’t be afraid to check into it. Use your resources, such as the Better Business Bureau, Department of Consumer Protection and the local license board to check the contractor’s business reputation and credentials. Be sure to check for lawsuits!
October
2010
With 3rd quarter condo sales at the lowest they’ve been in the past 10 years, brokers and sellers are finding new creative ways to market their listings. Buyers in todays market need an extra push to get out there and see these properties — the secret is to get these homes the attention they deserve. Luxury condo buildings have been using their units to host high-end art exhibits, which have proved successful in absorbing vacancy in todays market. Other ideas include wine tastings, private dining events with celebrity chefs, networking events, and more. The possibilities here are endless as long as you can draw the right target market for your product. Don’t let that house or condo sit on the market any longer! Think outside the box and get it done
October
2010
Tip of the Week : Winter Preparation
by Evan, Boston
I know we all hate to think about it, but the cold is on its way, and we all know that the Winter weather in the Northeast can get a bit crazy. From heavy snow,and rainfall to hail and chilling temperatures, there are certainly some different areas of your home that deserve a bit of extra attention to better the chances of your home surviving these horrific winters. So before digging up your scarves, hats and gloves, dig up the tool box or the phone book for some home maintenance professional touches to your house. Here are four non-negotiable things that should be completed before Winter hits.
Gutters & Roofing
This can be a DYI type job or you can hire a professional, but its a pretty simple task to clear all debris from your gutters. Check for any blockages in your gutter by running a water hose through the top of the gutter downspout and make sure that the water is runs out of the bottom. You also do not want any water leaking out of the sides of the gutters either so double check that they’re securely fastened to the side of your house. If it is blocked, run the hose full blast, use a plumbing snake or just be lazy and call a professional. But gutters seriously need to be cleared up pre winter, any precipitation can cause damage to the foundation of your home, so the gutters will protect it by funneling all of the water away from your home. Keeping your foundation dry is key.
Furnace
According to specialists you should have a professional furnace check twice a year, once when the heating season is beginning and again when the cooling season is beginning. You should also replace the filter, this is something I don’t recommend trying on your own. Hire someone to come in and do an inspection, because when 0 degrees rolls around and your furnace decides to fail you, you’ll be on a list of 500 other people in your area going through the same problem. So its better to be safe than sorry in this case. or else you’ll be shivering.
Insulation
Cold drafts coming through doors is one of my pet peeves and I’m sure that I’m not the only one who is extremely bothered and confused by them. Well truthfully there is a remedy for the drafts, they are not unfixable. On the next sunny day, take a stroll around your house, examine the doors that lead to the outside and see if you can notice any daylight seeping through the door frame. If there is, that is a sign that outside air is leaking in. Air leaks are extremely common in most households. The easiest way to fix them are by buying weatherstripping and create a tight seal on the open areas. You can even remove the old insulation and then secure it with the weatherstripping. Weatherstripping also works for windows. If the light is coming through the bottom of the door, you can buy a door sweep to help keep the cold air out as well. If you want to go crazy, get a blower door test done. A blower door test is a fan that connects into the frame of an exterior door. and blows air outside to lower the air pressure inside of your home. This will help auditors detect exactly where the air is leaking from and they will then determine how to seal the affected areas. Some people think it is a waste of money, but experts and practicers say that it can save you as much as 40% on heating/cooling bills.
Outside
If you have a sprinkler system in your yard, its a must that you winterize it so it doesn’t freeze. Pretty much what you’re doing is shutting it off from inside the home, draining it and using the compressed air to blow any remaining water out of the individual sections of the system. Typically is professionally done. Usually runs about $40-$50 to “winterize” it, whereas it can cost you up to $400 to repair a frozen sprinkler system. Also remember to remove all hoses from your outdoor faucets!
Other Recommendations…..
- Fireplace & Chimney Sweeps
- Insulating your pipes
- Check Your Carbon Monoxide/Smoke detectors
- Winter Emergency Supplies (flashlights, batteries, space heaters, snow shovels)
October
2010
Property values have dropped significantly in today’s market, and sellers will do just about anything to get their price. When analyzing a piece of income property it can help to be able to spot of some of the common tricks sellers use to beef up their bottom line. Tip #1: Look closely at monthly rental figures. Have you ever noticed that sellers are getting unusually high rents for their units? Oftentimes, landlords will provide their tenants with a month or two of free rent and then build those initial ”savings” into the remaining months of the lease to report above average monthly rents. This can seriously distort your valuation analysis. Tip #2 : Always ask for a few years of income statements. Landlords typically provide prospective buyers with a year end income statement detailing their revenues and expenses for the prior year. If a seller knows they are gearing up to sell, they will sometimes pre-pay a large portion of their operating expenses (such as heat) in December before the new year (and cold weather) begins. When it comes time to prepare the year end statement, those thousands of dollars in heating bills do not carry over. Make sure you ask for multiple statements to see those costs pile up in prior years. Always keep in mind the crucial real estate doctrine, “Caveat Emptor” — Buyer beware!
September
2010
Tip of the Week: Stay Put
by Evan, Boston
I know renting is nothing but a headache and if you can afford to buy it’d make more sense, but there is no need to get anxious, especially if you are between jobs or if there is a possibility of a big move. If you can’t commit to remaining in one place for at least a few years, then owning is probably not for you. With the closing costs during the process of buying and selling a home there is a great chance that you will end up losing money if you sell any sooner – even in a rising market. When prices are falling, it can get even worse! So my tip to you if you’re not settled, do not get too anxious you could lose some money!
August
2010
Tip of the Week: Get Online – Be Cautious
by Evan, Boston
Online shopping has been on the rise for everything. I mean you can buy anything online and people are doing it. There is nothing you cannot find online. People have eliminated the fun of going to a store in person and picking stuff out. All they do is hop on their laptop and click away. E-commerce is growing and growing and I don’t see it stopping. Home Improvement online shopping is an aspect that has quickly grown into a more popular way of finding contractors and ordering supplies. Here are some tips so that you can avoid the alway common online glitches.
Finding a contractor online is sometimes difficult, but there are plenty sites specifically devoted to people looking for a good contractor, where they provide consumer ratings. Therefore you can get a feel for the contractor based on prior customers reviews. Be cautious with any sites that have anonymous postings and ads that appear in search results that appear to be positive ratings. NYC, Chicago and LA have a great site called Franklin-Report.com. which has user comments that is similar to Zagat ratings for contractors. Another option is Angieslist.com which is $5/mo paid by credit card to prevent users from making more than one account. Once you find a contractor you are thinking about moving forward with, do yourself a favor and do a background check on them. Get a report about a contractors licensing, bonding, insurance, bankruptcy, civil judgements, criminal background, liens and credit rating. All of that information for only $13 at contractorcheck.com.
Ordering supplies is the next step and some of the big time players like HomeDepot.com and Lowes.com have more of a selection with better prices and discounts. Just keep in mind that if something goes sour, those savings could turn into cost overruns. As with any online purchase, you run the risk of shipping damage or late deliveries, which can derail a project with multiple tradesmen working around one another’s schedules. So be sure to work with your contractor before ordering supplies online. Make sure if gives you the green light and provides technical specs. I’m still all about referrals for contractors and going to a local store to pick out my supplies. Can be done quicker and easier to match items and personally I hate dealing with call centers. But if you have the patience and skill for online Home Improvement shopping just be cautious!
August
2010
Its been a good summer weather wise, for the most part, can’t really complain. Although we have had some severe flash flood storms in June and July. As quick as they were, they brought a lot of damage to plenty of homes across Massachusetts (i.e. my apartment…..). Anyways, roofs have been damaged and when this happens all of sudden there happens to be a thousand different contractors in your neighborhood. Here are some tips to help confirm the legitamacy of some these contractors.
First things first, it is super important to address your damaged roof as soon as possible, it is something that you cannot afford to let sit, the last thing you want is a mold issue on top of this, trust me, I know from experience. Start by giving your insurance company a call, theres a solid chance they’ll be able to recommend you a contractor and cover some or all of your repairs. I find the way best thing to do is use a local roofer with a great, lengthy track record. The convenience of a local roofer mixed with a great history is the ideal worker. The one problem with local contractors is that they are often fully booked after damaging rain storms, there is a great possibility that he won’t be able to squeeze you in for weeks or even months and like I mentioned above, do not wait around on a rain damaged roof. So before you go to an outsider, make sure you check the Better Business Bureau and call state licensing agencies to see if the company has met all licensing and bonding requirements. Its okay to ask to see the roofer’s certificates of workmans compensation and proof of current liability insurance. Also don’t feel obligated to pay the full amount up front, instead pay a deposit of a third or half of the work and then pay the remaining balance once you’re satisfied with the workmanship and have closely examined the invoices made by the suppliers and subcontractors.
Pricing is another concern that should be always looked into. Prices will always vary depending on whether your home is a single story or two story and its also based on the roof’s pitch and the condition of your plywood sheathing. But here is what to expect to pay: between $40 – $80 per square or 100 square feet to tear off old shingles and perhaps an additonal $150 – $300 for flashing for chimneys and another $25 for piping needs. You’ll also need to pay for the cost of the new material and its installation which can run about $75 – $100 per square for basic three tab asphalt shingles, but as long as you are replacing the roof, you should consider an upgrade and for about $125 – $175 per square you can get thicker, impact resistant shingles that resisi hail damage and may make you qualified for a discount towards your insurance. If you can afford it, raise the bar a little and get some more durable long lasting materials like concrete tile or slate which can range between $500 – $1000 per square. No matter what you choose to do, make sure you take care of it quickly through a legitamate contractor. For further contracting tips or to get a referal from us please contact Epapa27@yahoo.com
August
2010
Tip of the Week: Ignoring Closing Costs!
by Evan, Boston
Its a buyers time right now and plenty of people are trying to take advantage of the super low mortgage rates to save some money. The only problem are the closing costs! They can add a fortune on to your expenses and all of a sudden you’re hardly saving anything at all. Fees can be added in the blink of an eye by certain lenders and their vendors. Right now the US Department of Housing and Urban Development (HUD) is working on creating regulations that will simplify the mortgage process and save consumers as much as $1,000 off a typical mortgage transaction – theres no promising when this will come into in affect so for now just follow a couple of these rules that CNN.com has provided for all of you borrowers out there.
Get Friendly with your Current Lender
If you’re looking into refinancing, the first call you should make is to your existing lender, who already has critical information about you and your house on file. With an existing relationship with a lender it opens doors to a potential “streamlined” process which will save you a lot of extra paperwork and money on everything from application fees to appraisal fees. For people who have recently refinanced their home or have taken out a loan, you can save as much as 50% on title insurance by asking for a reissue rate, which your lender will request for you.
Get Nitpicky About Fees…
There are about a dozen different kinds of fees that could show up on your final closing statement, including credit report fees, appraisal fees, document preparation fees, title fees, recording fees and underwriting fees. For example, fees on a $200,000 mortgage could add up anywhere from $1,000 – $3,000 and that is WITHOUT any “discount” points that you pay up front to get the best interest rate. Good credit borrowers should challenge any fees that seem excessive, especially when lenders don’t always control many fees that show up on your statement. Your closing costs could jump a lot from the original good faith estimate you’re given, so keep an eye on everything and keep all fees open for discussion if you’re having second thoughts.
…at the same time, do not forget to keep the big picture in view
First priority should be to get the lowest mortgage rate possible and its important not to lose sight of that. The difference between paying a 6% and a 5.5% on a new loan adds up to nearly $23,000 in interest on a $200,000 30-year mortgage. If you have to pay a few hundred dollars in closing costs to get that rate it is definitely worth it! In fact, sometimes if you’re short on cash you might even want to consider rolling the closing costs into your loan, if that is an option. You’ll want to consider how much more you’ll pay each month as well as in interest over the life of a loan. If you roll $2,000 in finance costs into a loan with a 5.5% rate, for example, you’ll pay an extra $11 a month and about $2,000 extra in total interest. In this case you’re still better off than if you had no refinanced at all.
August
2010
New Landlord? Rental Deposits
by Evan, Boston
Students are coming to invade an apartment near you! With 20,000 new students on their way to Boston, the rental market is steady. Landlords should definitely review the process of handling last month’s rent and security deposits so there are no problems when the term of the lease comes to an end. Landlords are more liable than they think when it comes to handling these deposits so its an area to be careful in. Here are the requirements for holding a security deposit:
When the deposit is tendered, the landlord must give the tenant a written receipt which provides:
- the amount of the deposit
- the name of the landlord/agent
- the date of the receipt
- the property address.
Within 30 days of the money being deposited, the landlord must provide the tenant with a receipt stating the amount, bank and account number. The security deposit must be held in a separate interest bearing account that is protected from the landlords creditors. Also within 10 days after the tenancy begins the landlord must provide a written statement of the conditions that the tenants received the property in. Which then gives the tenants a chance to disclose any other damages that were not noted. The security deposit MAY be used for unpaid rent or reasonable damage to the unit. But they MAY NOT be used for eviction costs or attorney fees. The security must be returned to the tenants within 3o days of the tenants leaving. If you follow these directions then you’re in the clear!
July
2010
We’ve all had them, the clients that nothing is ever good enough for. You show them a vacant unit with incredible potential, but they just can’t seem to see it! This generation is getting way to picky about where they are going to live, everybody wants to live in the $1800 2 bedroom in The Mandarin (DOES NOT EXIST). Anyway, heres a tip for landlords struggling to rent their vacant condo. Furnish it with some contemporary and attractive furniture, it’ll turn the lonely, dark and empty room into an amazing pad that is ready to move in to. It is a GREAT way to attract potential renters. Whether you wish to leave it furnished and up the rent or if you are planning on removing the furniture after, its a guarantee that this will hurry the process of getting your place rented! For more tips or help on renting your condo please contact Epapa27@yahoo.com