How to Avoid a Huge HVAC Mistake…and a Big Expense

As things heat up in our area, I wanted to take the chance to remind you of the importance of regularly caring for your HVAC system.

Failing to properly maintain your HVAC can cost you thousands of dollars. Unfortunately, I’ve had clients confronted with HVAC nightmares due to lack of consistent maintenance. And as a Member of the Top 5 in Real Estate Network®, I understand how important it is to keep your home’s value intact…especially in today’s market.

The good news is, while the cost to replace an HVAC system can be in the $10,000 range, simple maintenance is not costly at all. A filter is usually less than $10 and replacing it monthly keeps your air cleaner and your house less dusty.

Filters should generally be replaced every month when the system is running. Replace filters with the same kind and size as the original filter. If your filter is not disposable, follow the manufacturer instructions for cleaning. If you’re using a high-density filter such as an electrostatic filter, check with your local HVAC expert, who can raise the external static pressure of your system. If the external static pressure exceeds the design criteria of your system, it can negatively impact the performance and life of your equipment.

Your air filter should be located in either the blower compartment of the furnace, in an attached filter case, or in a return air grille in a wall of your home. If you cannot find the air filter, contact your local HVAC dealer for assistance.

Have your local HVAC dealer perform preventative maintenance before the start of a new season. Many companies offer service agreements that may include reduced rates on labor and parts and provide priority response. Service/maintenance agreements may also cover:

-Cleaning indoor and outdoor coils
-Tightening electrical connections
-Checking supply voltage and operating current
-Checking refrigerant charge
-Measuring temperature differential at supply and return registers
-Cleaning blower wheel and motor
-Inspecting and adjusting the burner
-Checking heat exchangers
-Cleaning drain lines and pan
-Checking ductwork for leaks and insulation
-Checking the thermostat

Like many of us, your home is most likely your biggest investment. Simple and regular maintenance will not only preserve your home’s value but help you avoid a potential crisis and unexpected expense. For more information or for a recommendation on a local HVAC expert, please e-mail me. Be sure to forward this email on to your fellow homeowner friends as well!

Sincerely,

John Bendall
RE/MAX Classic Group
Office: (908) 231-0700 650
Mobile: 908-578-1485
john@bendallgroup.com
http://www.centralnewjerseyhomes.com

The Top 5 Pitfalls of Selling Your Own Home

While it is certainly understandable why some people would like to avoid paying a real estate agent’s commission—especially in today’s economy—homeowners need to be aware of the serious pitfalls that can occur before they embark on the process of selling their own home.

As a member of the Top 5 in Real Estate Network®, I have had many clients enlist my services after losing valuable time and money attempting to sell their own home. What seems like a relatively easy undertaking at first, can become a time-consuming and overwhelming process. I’d like to share with you some of the most significant snags that often occur when selling one’s own home:

1.  Ineffective marketing. Most homeowners simply lack the resources necessary to effectively market their own home. Working with a professional real estate agent, such as a member of the Top 5 in Real Estate Network®, however, usually means your home will be marketed to the widest group of potential buyers possible, both through digital and print advertising, virtual tours, and online listing portals.

2.  Mispricing your home. In order to sell your home quickly for the best possible price, pricing your home correctly is critical. This very nuanced process of choosing the right listing price, however, is always best left to a real estate professional. Most who sell their own homes price too high, resulting in their home sitting on the market for an extended period of time. And, unfortunately, the longer a home remains on the market, the less desirable it becomes for buyers.

3.  Missing documentation. These days, a real estate transaction requires more documentation than ever before. It’s virtually impossible for the average homeowner to be aware of all the forms necessary to complete a real estate deal, and missing paperwork will bring any transaction to a grinding halt.

4.  Overlooking legalities. The risk of overlooking important legalities, such as disclosure and compliance regulations that vary from state to state, is high for most homeowners. The average person is, understandably, not well versed in the many laws that govern the sale and purchase of a property.

5.  Dealing with unqualified buyers. If you accept an offer from an unqualified buyer, you can delay the sale of your home indefinitely. A professional real estate agent will take the necessary steps to work with a lender to ensure a buyer is qualified before accepting their offer.

In most cases, owners end up exhausting more dollars than they would have paid in commission when attempting to sell their own home. If you would like more information on selling your home, please e-mail me. I also encourage you to forward this email to anyone you know who might be considering taking on the monumental task of selling their own home.

Sincerely,

John Bendall
RE/MAX Classic Group
Office: (908) 231-0700 650
Mobile: 908-578-1485
john@bendallgroup.com
http://www.centralnewjerseyhomes.com

NAROFF ECONOMIC ADVISORS, Inc.

Joel L. Naroff

President and Chief Economist

KEY DATA: Sales: +7.6%; Single-Family: +7.4%; Condos: +9.1%

WHAT IT MEANS:   Existing home sales surged in April as the federal incentives to buy came to an end.  This, of course was expected.

We saw a similar pattern last fall when the first iteration of the home buyers’ incentive neared an end.  This time, even though long-time owners were added to the mix, the run-up in sales was not nearly as dramatic.  Indeed, the peak was about ten percent lower.

That said, there was a really nice pick-up in demand.   Sales of both single-family and condos were solid.  Geographically, the increases were not that well distributed.  Purchases were up over 20% in the Northeast, nearly 10% in the South and West but down over 6% in the West.  I honestly cannot explain the situation in the West, but it is what the National Association of Realtors says it is.

Prices continue to rise, mostly for single-family homes.  As for supply, it increased.  As I have said on many occasions, I expected that to happen and I looked forward to it as a sign that homeowners have rising confidence in the market and they finally think they can unload their albatrosses. 

MARKETS AND FED POLICY IMPLICATIONS:  This was a very solid report but it doesn’t really tell us what condition the housing market is in.  That is because the government has interfered with the market.

We should expect that sales will fall fairly sharply over the next couple of months and only after that adjustment will we get any decent picture of the market.  The terrible mortgage applications numbers clearly point to slowing sales but that was one week of numbers.  It will take a while before the craziness created by the federal policy is washed out of the data.

I believe the housing market will slowly and steadily improve over the second half of the year as extremely low mortgage rates, modestly improving credit availability and job gains convince people to buy.  Rising prices cannot hurt either.  The markets will not probably do much with this number as Europe still seems to be the issue du jour.

There is also a lot of other data coming out this week including consumer confidence.  So caution will likely be the watch word.  This also doesn’t put a whole lot of pressure on the Fed to do anything, not with a possible European slowdown adding another headwind to the recovery.

Lawmakers Tout Tax Credits For NJ Home Buyers

as reported by BRUCE SHIPKOWSKI, Associated Press Writer
TRENTON, N.J. (AP) ― Concern over New Jersey’s struggling housing market has spurred state lawmakers to develop a proposed refundable tax credit program for home buyers.

Proponents say the measure, which was passed Thursday by the Assembly Appropriations Committee and sent to the full chamber for a likely vote this week, gives potential homeowners a strong incentive to buy now.

And those purchases would likely provide a boost to other businesses, such as furniture makers and sellers, hardware stores and insurers.

The program would apply to homes bought in 2010, which would then have to be the taxpayer’s principal residence for three years. Home buyers would get tax credits of up to $15,000 — or 5 percent of the home purchase price, whichever is less — that would be divided into three equal credits that could be claimed over three taxable years.

The total credits available under the program would be capped at $100 million, with $75 million allocated for the purchase of new homes and $25 million for previously occupied homes. Home buyers would be able to determine their eligibility for the program through an automated process administered by the state Division of Taxation.

“This is a creative and sensible way to revitalize our housing market and our economy,” said Assemblyman Vincent Prieto, D-Secaucus, who is among the bill’s primary sponsors. “Much direct and indirect economic activity is generated through new home construction and home re-sales, so this is the smart thing to do in this tough economy.”

Top 5 Remodeling Headaches to Avoid

Whether you’re adding a room to accommodate an expanding family or remodeling to increase value, home renovations can be one of the best investments you make, especially in today’s economy. The key to a successful remodel, however, is knowing what mistakes to avoid.

As a member of the Top 5 in Real Estate Network®, I have advised many clients on what renovations will offer the best return on their investment and pay dividends when the time comes to sell their home.

According to a Consumer Reports poll, the most popular remodeling projects for homeowners are kitchens (19%) and bathrooms (17%). In another survey, however, Consumer Reports asked 6,000 readers to reveal what went wrong when they remodeled their kitchens and baths and how much those mistakes added to the overall cost of their projects. Here’s how to avoid their mistakes and save:

1.Don’t rush in. Changing plans is the most common, but costliest remodeling gaffe. Be sure to leave time for research and create a comprehensive plan, listing every product.
2.Prepare for the unexpected. There’s a lot going on behind the walls. Unexpected water damage was an issue with 17% of bathroom remodels, while structural problems caused headaches for 10% of kitchen projects. A good contractor will be able to anticipate such problems, allowing the homeowner to budget accordingly.
3.Don’t chase the “low ball.” Contractors are lowering their profit margins due to the tight market, but they often make up their costs in labor or other areas. Readers who went for “low-ball” pricing ended up spending a median of $1,500 extra for labor on their kitchens and $1,000 extra on their bathrooms. Don’t sign a contract with a lot of open-ended amounts for products and materials—these are called “allowances,” in contractor speak.
4.Get the paperwork in order. Have the contractor attach copies of his or her up-to-date license, insurance and workers’ compensation policies to the written contract. He or she should also get permits and provide a lien waiver when the job is done; this will keep suppliers from contacting the homeowner for unpaid bills.
5.Focus on the boring bits. Specifying lighting and placement of trash cans are not much fun, but are critical to the process. For example, the proper exhaust fan will prevent mildew in baths and vent odors in kitchens.

Following the above advice will help ensure a successful—and profitable—remodel. For more information or for contractor referrals, please e-mail me. And please forward this email on to anyone you know in the midst of remodeling—don’t let them make these same mistakes!

Sincerely,

John Bendall
RE/MAX Classic Group
Office: (908) 231-0700 650
Mobile: 908-578-1485
john@bendallgroup.com
http://www.centralnewjerseyhomes.com

Top 5 Ways to Build a Green Home

Most of us know that adopting an environmentally conscious or “green” approach to life can benefit the planet and its future generations. But did you know that greening your home can also benefit your bottom line in terms of energy savings and tax credits?

I’ve learned a lot of the latest green building strategies from clients and home builders I deal with as a Member of the Top 5 in Real Estate Network®. I thought I’d share some innovative green building ideas from the National Association of Home Builders (NAHB, www.nahb.org) in case there’s a remodel or new-home build in your future:

1.The roof. According to NAHB, 75% of new homes use “oriented strand board” (OSB), an engineered wood product that does not require the use of large trees in its production, to sheathe roofs and walls. Additionally, durable roof coverings, such as steel and fiber cement, reduce the need for roof replacement and are a key part of many solar roofing products that lock in heat during winter and help keep homes cool in summer.

2.The windows. Energy-efficient windows that incorporate advanced technologies like low-emittance glass coatings, keep heat inside in winter and outside in summer. “Passive” solar design features like large, south-facing windows, also help heat the home in the winter and allow for abundant natural lighting.

3.The walls. Vinyl siding on exterior walls saves money on installation and maintenance; fiber-cement siding is termite- and water-resistant and warrantied to last 50 years. Increasing the amount and R-value of insulation is a cost-effective way to save energy and help reduce heating and cooling bills, which account for at least half of all energy use in the home.

4.The outside. “Xeriscaping,” or using native plants, can significantly reduce the need for watering, fertilizers and herbicides, and preserving trees on your property reduces energy costs by providing shade in summer and a wind barrier in winter. Also consider a covered entry for your front door, which can help prevent water intrusion and costly repairs.

5.The appliances. According to NAHB, the energy efficiency of refrigerators and freezers has tripled over the last three decades. Front-loading washers use about 40% less water and half the energy of conventional models. New toilets have redesigned bowls and tanks that use less water, while advanced shower and sink faucet aerators provide the same flow regardless of reduced water use.

Please consider the above green building ideas for your next construction project and forward this e-mail to anyone else who may be in construction mode. I’d be happy to answer any questions you may have or point you toward further green resources, so feel free to e-mail me for more information.

Sincerely,

John Bendall
RE/MAX Classic Group
Office: (908) 231-0700 650
Mobile: 908-578-1485
john@bendallgroup.com
http://www.centralnewjerseyhomes.com

^[1]RISMEDIA, April 29, 2010—The expiration of the 2010 Home Buyer Tax Credits on April 30 is unlikely to put off Americans looking to purchase homes who believe now is a good time to buy and are confident that home prices will rise according to a survey released by Prudential Real Estate and Relocation Services, Inc., a Prudential Financial, Inc. company. The survey of 1,000 Americans between the ages of 25-64 with at least $35,000 household income was conducted during April 15-20, 2010.

More than 90% of consumers believe that the home buyer tax credits have helped both first-time home buyers and the U.S. housing market overall. Read the rest of this entry »

How to Ensure Smooth Moves

If you’re one of the many who have recently taken advantage of the first-time or move-up home buyer tax credit, there’s a happy move in your future. Unfortunately, I’ve seen the stresses of moving cast a cloud over the excitement my clients feel about heading to their new home, making for a nightmarish experience instead of a momentous occasion.

Thanks to my network of leading real estate professionals, the Top 5 in Real Estate Network®, and my relationships with top moving experts, I can offer several tips to make moving a more streamlined, more palatable experience:

• Put your move details in writing.
Use a large notebook or binder to centralize all the important details of your move. It should contain detailed lists, including an inventory of boxes. Supplement this with a computer printout of box contents and e-mail it to yourself and a couple of other trusted sources as a back-up.

• Order boxes and moving supplies as far in advance as possible.
It’s never too early to start packing as we all have items that are not currently in use—think winter clothes, your baseball card collection, holiday decorations. Moving companies may allow you to return unused boxes, so order more than you think you’ll need, by 20%. Invest in the right tape to keep boxes securely fastened, some new Sharpie pens, and labels to color-code your move.

• Document your AV details.
Take photos and notes on how your media equipment is set up: television, sound equipment, computer equipment, etc., in order to avoid an AV nightmare in your new home. Label all remotes and wires as well.

• Plan for your pets.
Moving can be particularly stressful for animals. Consider leaving them with a friend or at a reputable pet boarding service.

• Plan for valuables and critical documents.
Most homeowners insurance will not cover property in transit, so consider insuring certain items separately. Take photos for documentation to support loss or damage claims, and carry irreplaceable and legal items, like passports and birth certificates, with you.

• Choose a reputable moving company.
Good companies that can guide you through the process will have a proven track record. Ask your friends and your real estate agent for referrals.

• Keep your moving receipts for income tax deductions.
In many cases, moving expenses are deductible from federal income taxes. If you are moving because of a change in employment, you may be able to claim this deduction even if you do not itemize.

For more information on making your move as painless as possible, please e-mail me—and please feel free to forward these tips to any family and friends with a move in their future.

5 Steps to Buying Before Tax Credit Expires

 The expanded tax credit for U.S. homebuyers, which extends the $8,000 First-Time Homebuyer Credit and creates a new $6,500 credit for most repeat buyers, expires on July 1, 2010. As a buyer, you must be under contract by April 30 to make the deadline. This doesn’t leave much time to start the buying process.

To help you get in under the wire, Lisa Escue (CDPE), with RE/MAX Masters II in Grapevine, Texas outlines these steps:

Step 1. Find a Local Lender You Can Talk To in Person
Local lenders understand your market and know of loan programs that might be beneficial to you.

Check with your lender on any local programs that might help with closing costs or in other ways. Even though the media have pronounced the 100-percent-financing option dead, this is not always the case. Check it out for yourself and then get preapproved for a loan so you know how much house you’re able to buy.

View a video on the homebuyer tax credit

Step 2. Be Specific in the Area You Want To Live
Educate yourself. Familiarize yourself with the neighborhoods you’re interested in, the taxes and school districts. This not only helps you narrow down your search when you need to move fast, but also helps you figure out potential mortgage payments. Search for homes in your desired neighborhoods.

Step 3. Find an Agent Specializing in the Area You Want to Live
This will save you time and effort. Once you’ve identified an agent, trust him or her to do the job. Agents who are thriving in this challenging market have proven their worth. They have the resources and skills to help you find your next home.

Step 4. Don’t Shy Away From Houses That Need Some Work
Just because a house needs some paint or cosmetic fixes doesn’t mean it’s not a good buy. Most real estate agents have an address book full of trusted businesses they work with to help you fix up your new home. There’s an HUD program known as 203(k) that enables you to fold repair money into a primary mortgage; ask a RE/MAX agent in your market about the program.

Step 5. Be Prepared To Act
Sometimes the first home you see is the right one for you. Don’t discount it. Remember, good deals still go fast. Take advantage of the electronic tools your real estate agent has to offer. In many instances, real estate agents have access to better information than what you can find in a standard Internet search.

Fact: All Real Estate Headlines Are Not Local

None of us are immune to the constant stream of negative news about the real estate market. There’s no denying the fact that the market has suffered, along with our country’s economy, over the past couple of years.

Unfortunately, this has created a serious dilemma as many consumers unwittingly base their real estate decisions on national media reports. Those of us in the industry live by the term “all real estate is local,” and as a consumer, so should you—otherwise, you run the risk of making an irreversible real estate mistake.

The truth, which you won’t find in the national media, is that real estate markets not only vary from region to region but from county to county, neighborhood to neighborhood…even street to street. I know from my national network of leading real estate professionals, The Top 5 in Real Estate Network®, that there is tremendous variation in home sales prices from locality to locality, and that buyers and sellers are often heading into—or worse, avoiding all together—a real estate investment based on misinformation from national media reporting.

Therefore, if you are thinking about buying or selling a home, it’s essential that you talk to a seasoned real estate professional in the areas you’re considering. Keep the following tips in mind when considering a real estate sale or purchase:

1.  Consult with a local real estate professional—like a Member of Top 5—for the most up-to-date information on the local market.
2.  Ask for statistical reports and trend graphs—the hard facts. Real estate professionals have access to actual data that can be broken down into extremely finite components, such as a particular street or neighborhood.
3.  Ask for comparative reports for the last 3-4 months of the current year, versus the previous year. This will reveal the latest market trend and provide you with concrete facts.
4.  Media reports can vary widely based on state, city, and neighborhood – read, listen, learn, but always revert to the facts for the specific area in which you are looking, especially if you are relocating to a different state or region.
5.  Also take seasonal considerations into account. In vacation-destination areas, the numbers will vary greatly from national and state data.

For many real estate consumers, today’s market is an unbelievable opportunity to buy or move up to a different home. Don’t let the national headlines scare you away. Consult with a local real estate professional to get only the facts that matter to your specific situation and location. Please e-mail me for more information and pass this article along to others who might benefit from the real facts.