Home inspections should include the use of Thermal Imaging.

Infrared Thermography (IR), or more commonly referred to as Thermal Imaging, is a technology developed for use by the Defense Department; however, it provides a tool that has become very powerful for other industries, especially the Home Inspection industry. In years past, IR cameras were prohibitively expensive; only recently have the costs of the technology become low enough to be feasible for use by home inspectors, etc.

An IR camera basically takes infrared energy given off by an object and converts it into colors visible to the naked eye. This technology is very advanced, but the use of the camera is very basic. The colors shown by the camera can, with a little interpretation, represent temperatures of an object, or in this case components in a home. It is in understanding what these temperature differences can be caused by that becomes invaluable in a home inspection. For example, when water evaporates, it tends to cool the surface that it evaporates from. If a home is experiencing moisture penetration through a basement wall, or if there is an active roof leak that is not visible because the signs of wetness have dried up since the last rain, the IR camera may be able to identify the leak due to the cool surface where evaporation is still occurring. Using this logic, the camera can also be used to detect defects in: plumbing (some leaks are to slow to cause the surrounding surfaces to become visibly wet), HVAC (loss of conditioned air in duct system…), electrical (overheating of components), insulation (missing or improperly installed), even some wood destroying insect infestations that are otherwise concealed to the naked eye can be found due to the heat termite colonies generate.

Admittedly many issues detectable by an IR camera may also be apparent without the use of the camera. However, for the few defects that would not be found during a typical visual only home inspection, the benefits can be tremendous. Slow water leaks can spread deterioration extensively before becoming apparent to the occupants; missing insulation can cause elevated utility costs and may never be apparent without the use of an IR camera, etc.

Many home inspection companies have not yet invested the resources needed to acquire good equipment and training necessary to properly perform an IR inspection. Although the cost of the cameras has come down a lot in recent years, a minimum specification camera can cost $5,000 or more; lesser cameras do function, but their level of detail may cause the thermographer to miss defects that are more readily apparent with a more powerful camera. Furthermore, many inspectors unfortunately forgo the cost of training which can be as much as $2,000. Without proper training, an inspector can miss defects, or cause as many problems as they may find.

Some home inspection companies do now offer Thermal Imaging Inspections. For most the service is in addition to the standard home inspection; limited surveys are typically $250 to $400. Some home inspection companies include IR as part of the basic home inspection because of the value it brings to the customer.

Save yourself money in the long run by getting your future home inspected.

In years past, most people did not have their homes inspected before they bought them; you accepted the home “as-is.” In recent years, it is more common to have the home inspected by a licensed home inspector prior to closing. If you choose to save a few dollars now by not hiring an inspector, you will be at risk when you sell the home later. It is very likely that the future prospective buyer will get an inspection, and then you may be faced with having to pay for repairs. Your realtor may confirm that in a typical home inspection, the average cost of defects found in the home can be significantly higher than the cost of the inspection. Furthermore, defects found and repairs made by the seller prior to closing may offset the cost of the inspection.

Inspections make sense even for new homes. Even the best of builders will admit that there are no perfect homes. Any hidden defects in the home after the builder’s warranty expires may be a liability for you when you sell the home. When you sell the home in years to come, you may be forced to pay for repairs or corrections that the builder should have done for free when the home was new.

Radon Gas Testing by Homeowners

Radon gas testing relative to a real estate purchase contract requires an unbiased 3^rd party professional to perform the testing; however, everyone should be aware of the radon gas levels in the home/apartment where they live.  Testing a home outside of a real estate transaction can easily be performed by the person living in the home.

There are several sources of radon gas test kits on the market. Most are inexpensive and very easy to use.  A Long Term test is most accurate and only requires placing a test canister in the home for 1 month to up to a year, and then mailing the canister to a laboratory for analysis.

Radon gas is a naturally-occurring byproduct of the radioactive decay of Uranium in the soil. Depending on your geographic location, the radon levels of the air you breathe outside of your home may be as high as 0.75 pCi/L. The national average of outside radon levels is 0.4 pCi/L and it is estimated by the National Academy of Sciences that outdoor radon levels cause approximately 800 of the 21,000 radon induced lung cancer deaths in the US each year. Your risk of lung cancer increases substantially with exposure to higher radon levels. Lung cancer risk rises 16% per 2.7 pCi/L increase in radon exposure.

Radon Act 51 passed by Congress set the natural outdoor level of radon gas (0.4 pCi/L) as the target radon level for indoor radon levels. Unfortunately two-thirds of all homes exceed this level. The US EPA was tasked with setting practical guidelines and recommendations for the nation. To this end, the US EPA has set an action level of 4 pCi/L. At or above this level of radon, the EPA recommends you take corrective measures to reduce your exposure to radon gas. This does not imply that a level below 4.0 pCi/L is considered acceptable, as stated in the BEIR VI study. It is estimated that a reduction of radon levels to below 2 pCi/L nationwide would likely reduce the yearly lung cancer deaths attributed to radon by 50%.

More information is available on the internet at sites such as www.Radon.com and www.epa.gov/radon/pubs.   They also offer the Alpha-Track Long-Term test kits by clicking on “Order Now” tab.  These are the same test kits used by many professional radon testing companies, and cost less than $30.00.

As much as 32% of the homes in Lancaster county South Carolina, as determined by a leading testing/analysis provider is said to contain radon levels over 4.0pCi/L.

If unacceptable levels of radon gas is found in the home, there are mitigation methods that are usually simple and effective.

If your home has not been recently tested for radon gas levels, I recommend either contacting a testing professional, or one of the available radon testing products companies and performing the test.

Great news for Fort Mill Home Buyers and Sellers.  Congress has passed legislation to extend the First-Time Home Buyer Tax Credit. But the bill added incentives to current home owners. Here are the details of the extended home buyer tax credit signed by the President November 6,2009.

The new bill:

* Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.

* Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.

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Here is Tom Kunz, President and CEO, Century 21 Real Estate with more information on the Extended 2009 – 2010 home buyers tax credit.

More information on the the extended home buyers tax credit:

First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010 and current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight qualify for the credit.

To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

The Extended Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

The maximum allowable credit for first-time home buyers is $8,000. The maximum allowable credit for current homeowners is $6,500.

Each home buyer’s tax credit is determined by tw0 additional factors:

1. The price of the home.

2. The buyer’s income.

Under the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for $800,000 or less.

Buyer Income

Under the Extended Home Buyer Tax Credit, which is effective on November 7, 2009, single buyers with incomes up to $125,000 and married couples with incomes up to $225,000—may receive the maximum tax credit.

Some buyers may still be eligible for the credit if their income is over the limits. The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $145,000 for singles and over $245,000 for couples are not eligible for the credit.

Under the Extended Home Buyer Tax Credit, as long as a written contract to purchase a home is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close. The extended 2009 home buyers tax credit info is from National Association of REALTORS®.

Click for more information about the The Worker, Homeownership, and Business Assistance Act of 2009.

Call Carmen for more details.

www.HomesFortMill.com

Should I buy or sell a home now?

If you are thinking about selling or buying a home right now you obviously have to be wondering how today’s economy, interest rates and local real estate market will affect your bottom line. There is not one answer for everyone, and as when any of us invest in the stock market, it is the long term return that should be our focus.

If you are thinking about buying a home now every investor and real estate analyst has stated that this is absolutely the best time. As with most markets, Fort Mill and Tega Cay SC are considered to be a “buyers market”. What does a “buyers market” mean?. It means that buyers are in the driver’s seat. There are a good number of homes on the market which gives you plenty of available inventory to see and choose from. Depending on the location or community some homes are now selling at 2005 pricing. The other side of the equation when looking at purchasing a home is interest rates. Interest rates are changing daily and are still considered to be low when compared to years past. If you are considering a home purchase this is NOT the time to get left behind.

Home sellers how about you? For sellers who have more than three years equity this can be a perfect time to find value in your next purchase. Move up buyers who have a solid amount of equity on their home can still sell for a reasonable profit and purchase in a market that is offering tremendous buying opportunities. Again, this is NOT the time to wait. We are still seeing price reductions and a steady inventory. To sell a home in this market you have to win the beauty contest and you need to be the best value in your price point. Be realistic about your gain today and look forward to the future growth of the investment you are buying at a discount price.

Consider the following points from Elizabeth Weintraub of About.com:

Don’t forget the impact of Interest Rates. Which way are interest rates moving? If interest are near an all time low and the rates begin to inch upwards, waiting could cost you more than you would think:

FACT: Each ½ point increase in your interest rate gives you $25,000 less in purchasing power.
FACT: Each 1 point increase in your interest rate gives you $50,000 less in purchasing power.
FACT: Each 2 point increase in your interest rate gives you $100,000 less in purchasing power.

If you put down 20% and qualify for an 80% loan, here are your principal and interest payments on the following purchase prices:

• $425,000 sales price, at 8.25% interest, your payment is $2,554.
• $450,000 sales price, at 7.75% interest, your payment is $2,579.
• $475,000 sales price, at 7.25% interest, your payment is $2,592.
• $500,000 sales price, at 6,75% interest, your payment is $2,594.
• $525,000 sales price, at 6,25% interest, your payment is $2,586.

The payments are almost identical. However, the home you can afford to buy at 8.25% is $100,000 less than the home you can afford to buy at 6.25%. If you wait for prices to further decline, the perceived value could be lost due to higher rates.

Yes, now is a good time to buy or sell a home. Give me a call to discuss your specific needs and goals.

Carmen S Miller

What is one of the most important things to do when buying a home? Visualize were your furniture will go in each room. Well… yes that is part of the processes but more importantly hire a professional to do a home inspection.

So even if you manage to find the perfect home a good home inspection can help you understand exactly what’s not so perfect about the home you’re going to buy. That’s a good thing. Because when you’re buying a home you’re also buying all of the home’s problems too.

You’re making a large investment in the property and it’s nice to understand exactly what you’re buying. A structural problem or a heating and air condition system that isn’t functioning properly can be expensive to fix. So conducting a series of thorough inspections is a lot like buying an insurance policy against future expenses or knowing more about what you are buying into. Keep in mind, however, that home inspections are not a warranty or guarantee of the home.

What is a typical home inspection like? A home inspection typically includes an examination of the heating and central air conditioning systems, interior plumbing, electrical systems, the roof, attic, visible insulation, walls, ceilings, floors, windows, foundations, and basements.

A typical home inspection will take about 2 to 4 hours depending on the type of home; an unoccupied one story home on a concrete slab will take about 2 hours, where an occupied two story home on a crawlspace foundation will take about 4 hours to complete.

Although the home inspection report should include detailed descriptions and color digital pictures of any defects in the home, it is best if you are able to attend the inspection for a review and discussion of the findings. You, your agent, the owner/sellers, etc. should attend the entire inspection. Once the inspection is complete, you should walk through the home with the inspector to discuss any concerns or defects that may be present.

Some things that are not included in the general inspection are:

• Appliances that are not installed
• Building Code Compliance
• Environmental issues such as Radon, Mold, Lead, etc. (unless specifically requested) I would recommend including a least a radon test for the Fort Mill/York County area.
• Systems/components/areas that are not readily accessible or readily visible or shut down.
• Cosmetic issues (Acceptability is subjective and should be determined by the client)
• Exterior features such as retaining walls, storage buildings, pools, etc. (Unless their condition may affect the building)
• Low voltage systems/components such as: intercom, security systems, antennas, etc.

You will most likely have to hire a separate professional to do a termite inspection.

If you are selling your home, have an inspection done before you put your home on the market and you may avoid any surprises when potential buyers have a home inspector check it out. You may choose to have any repairs made using a contractor of your choice without having to satisfy a potential buyer or you may choose to disclose the conditions you are not going to repair and protect yourself from liability of nondisclosure claims.

Should you hire a home inspector when buying a new home? Absolutely. Just because the home is new doesn’t mean there aren’t problems. The contractors building a new home are human and make mistakes. There is no better time to catch and fix mistakes or problems than before you close and move in.

Make sure the home inspector is at least a member of the American Society of Home Inspectors and other local associations and accreditations. Carmen can recommend local home inspectors. Contact Carmen for more information or questions about the home inspection process.

Making a decision to buy or sell a home is full of challenges. So it’s important to be well educated with quality information to make the process successful.

HGTV is airing a special episode this month called The “25 Biggest Real Estate Mistakes”. Carmen and I watched the first showing of the episode and found the show and tips to be accurate and timely.

The 25 tips are for both home sellers and buyers. We would recommend watching the show or reading all 25 tips. Here is the link to the show and article. HGTV’s special presenation episode

Here are the top 5 biggest mistakes of the top 25:

5. Buying a Home Without a Professional Inspection.

4. Overlooking the Extra and Hidden Costs.

3. Buying What You Want, Not What You Need.

2. Setting Too High of a Sale Price.

1. Failing to Showcase Your Home and Make Small Cosmetic Changes.

Carmen sent me a link the other day for a website called housingmarketfacts.com. So I’ve now become a real estate website critic during my lunch. Should I say two thumbs up?

Anyway, the new website is by the National Association of Realtors® or Realtor.com. The website is a resource promoting the benefits of owning a home. The single web page is populated with home ownership facts, many resource links, and an embedded welcome video with a women walking on your screen to say hello. I was bothered by the fact the women stays on the screen after delivering her welcome message and just stands in place staring at you. OK, moving on.
Here are a few housingmarketingfacts.com or NAR home ownership highlights:

• A home investment could yield you a return 5 times that of the stock market.
• Home owners stay in a home on an average of 6 years. (We have not hit 6yrs yet)
• Financing info links.
• Property search links.
• Research local school and neighborhood links.
• A home equity calculator.
• And of course, facts on why Realtors® add value to the home selling or buying process.

I found an interesting link to Freddie Mac’s mortgage rate history chart by month since 1971. Here is a brief summary of the last 36 years based on a 30 yr fixed rate (average for the year and points varied):

• 1972 – 7.38%.
• 1979 – 11.20% first time over 10% since 1971.
• 1981 – 16.04% high point.
• 1991 – 9.25% finally came down under 10%.
• 2003 – 5.83% bottom.
• 2007 – 6.34%.
• Today’s rate is 6.04%.

I bought my first home in 1983 and I thought 13% was good. The site seems helpful so I’ve added the housingmarketfacts.com link to the blog links section for your future use. You can turn off the sound of the welcome lady but you can’t make her leave.

I am getting calls every single day about the interest rates. Consumers are really confused right now because they are hearing “The Fed just cuts rates!” and then when they call a loan officer they hear “Wow, rates are going up!” How can rates go up if the Fed is cutting them?!?!?The first thing that you have to understand is that the rates the Fed controls are totally different from mortgage rates. The Federal Reserve has absolutely no control over the residential mortgage rates. Mortgage rates are controlled by the secondary market where mortgage backed securities are bought and sold. This market is independent from any government agency and goes up and down daily just like the stock market.

The second thing we need to understand is what effects this market and causes mortgage rates to go up. This market works just like the stock market when it comes to price changes. The people buying the securities decide how much they are willing to pay based on economic indicators, gut feelings, public perception, etc. It is not an exact science because human beings are involved, but it typically makes sense. When MBS (mortgage backed securities) prices go up our rates improve (YIPPEE!!) and when they go down, our rates get worse (YUCK!)

Right now the problem is that the entire industry is seeing more negative results than in past years. There are more foreclosures, more early payment defaults, etc. The investors that buy MBS’s are a little worried about all the risk and that is pushing our rates higher.

Imagine the levies in New Orleans, when Katrina came through the levies were overwhelmed because they were only built to withstand a certain amount of surge. Our secondary mortgage market was built to withstand a certain amount of surge (bad loans, foreclosures, etc), but then the sub-prime era hit and like Katrina the levies could not hold. There have been too many problems for our system to withstand and now we are experiencing the flood waters.

The good news is that our levies are a little better than the ones in New Orleans, and it shouldn’t take but a couple years to repair the damages. We are already over a year into this, so most analysts are predicting the real estate and mortgage markets to be somewhat back to normal by mid-2009.

Its a buyers market even in Fort Mill or Tega Cay, SC. I found a few tips I want to share with my home sellers.  

Below is a reprint of an article by David Sobel and RISMEDIA. The article has good tips for sellers on how they can increase curb appeal to make sure buyers come in to view their home.

By David Sobel

RISMEDIA, Jan. 17, 2008-You’ve all had that experience with a client where you drive up to a house and they don’t even want to go inside. It’s an immediate “un-appeal.” You may know the inside of the house shows much better, but you just can’t convince them to spend the time to even go inside. In today’s market where lots of choices in housing are available to the buyer, why should they?

Here are some easy, inexpensive fixes that will help create that outside appeal and get you one, giant step further to a sale.

1. Paint or stain the front and garage doors, especially if they show any weathering. These are the first visuals where a potential buyer focuses. If garage doors are metal and dented, they may need to be replaced.

2. Any old, basically abandoned sheds or small structures, must be removed, the area graded and the grass replaced.

3. Change any dated, outside light fixtures.

4. Fix that driveway. If it is blacktop, make sure cracks and crumbling areas are dug out and filled and then the whole driveway sealed. If it is cement, have large cracks filled and repaired professionally. The buyer must at least feel they can drive the moving truck in confidently!

5. Make sure landscaping bricks are in their proper placement. Mowing, weed-whipping sometimes moves them and this is something the homeowner rarely notices, but makes the property look unsightly.

6. Fill in bare dirt under large shade trees. Plant shade-tolerant plants in defined planters or groundcover. Landscape properly for that area.

7. All landscaping beds should be cleaned out and updated for the time of year it is in your region. Place new bedding material down.

8. Have trees and bushes pruned and trimmed. If a bush or tree is looking old or about to expire, remove it and replace it with a similar size and type if you can. If there is a tree limb(s) over the roof, have them removed.

9. If the house needs painting and a full paint job is not in the cards; have it touched up professionally in the worst, most visible spots. Paint shutters and fix them if they are hanging crooked. At least this may help get your client in the front door, even if they negotiate a full paint job into the sale later.

10. If the house is sided, have it power-washed and have gutters and windows cleaned. Window cleaning inside and out makes the house feel updated and fresh, rather than old and dingy.

11. Make sure grass is in good shape, weeds are removed, trimming done regularly. So many sellers fall down on this job the minute the house is listed, and this is critical to selling a house quickly, especially one where the owners have already moved out. In snowy climates, removal must be done regularly too. If owners have moved out, make sure you have an HWA Home Warranty to re-assure buyers.

12. Keep garbage and recycle containers inside the garage, along with all toys and equipment. Make sure the garage is neat and organized. Painted walls and floors also go a long way in this area and are inexpensive to do.

13. Decks should be washed and repainted or re-sealed; plantings around them cleaned, weed-free and looking good. Patio furniture should be in excellent condition. Even though it is in the backyard, this is the area where the family can envision enjoying the warm days and the new yard.

14. If the roof has missing shingles and they can be replaced inexpensively, suggest this be done as it may save negotiation over a completely new roof. Roof repair needs and costs should be minor or the homeowner might as well replace the entire roof.

15. If the homeowner wants to do a bit more, suggest solar lights lining the driveway or installing a more attractive front door with lead glass inserts and replacing plain doorknobs with something more custom.

16. If you have an evening showing, make sure lights are on outside and inside the house. This is warm and inviting.

17. If it’s a holiday season, by all means decorate the home! Just like sugar cookies or vanilla scent on the inside of the house, this really says “it’s a home” and I can see myself enjoying life here! In the least, always have some greenery or flowers for the season on the front step or porch; even a birdbath with a little garden around it says home.

A link back to David’s Article

Walk the Walk What a Home Buyer Should Do before Closing – Fort Mill, SC.
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One of the final steps before the closing is called the final walk-through. This is an opportunity for you, the buyer, to see the property one last time before the money is exchanged and the purchase paperwork completed and filed.

It is important to note that this is not a home inspection. That should have been done weeks ago so there was adequate time to negotiate and address concerns. This is also not a time to nit-pick or back-track on agreed upon items. However, it is the right time for you to look! at the property and make sure it is in the condition you agreed to buy it. If repairs or upgrades were part of the deal, now is the time to make sure they were completed to your satisfaction.

Your real estate professional may or may not accompany you to the final walk-through. In either case, you will want to do the following:

• Open and close all windows, doors, garage doors
• Run all faucets and check for leaks
• Flush toilets
• Test outlets
• Check the basement, attic and crawl spaces
• Make sure that certain items as stipulated in the contract are left behind – i.e. light fixtures, window treatments, appliances, etc.
• Test the heating and air conditioning systems

In short, you want to make sure the home systems are operational and the seller has met the obligations laid out in the purchase contract.

If you do have a concern, bring it to the attention of your real estate professional and attorney. They can advise you ! about different courses of action. For instance, if it a significant expense, you may withhold money until a repair is made.

A final piece of advice: don’t skip the final walk-through. Because this is a busy time filled with packing and moving, some buyers are tempted to neglect this step. After all, you are so close to actually buying the home. In reality, the final walk-through is there to safeguard your investment.

This article is from Carmen’s Life at Home Newsletter January 2008 and Century 21. To see the entire newsletter, click here – Jan 08 life at home newsletter

On the Market for Fort Mill, SC
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What makes one home sell in a few weeks while another may linger on the market for what seems like seasons?

Well, each case is different, but it almost always boils down to one of these 4 factors.

Price – A home that is priced right will attract buyer attention. A fair and reasonable asking price that is in keeping with market demands will pique consumer interest and ultimately make the property more appealing.

Condition – Unless they are searching for an investment property, mo! st buyers are looking for a structurally sound home that has been well-maintained. In addition, a home that “shows well” is likely to sell quicker. This means the home is clean, well-kept, updated and appealing to today’s buyer.

Location – The better the location, the more likely the property will demand buyer attention. This could mean a single-family home in a charming town with an exemplary school system. Or it could mean a wonderful apartment in a great section of the city.

Market – Whether it is a “buyer” or “seller’s” also influences how long a property is up for sale. When the advantage is with the buyers, you may need to make allowances, such as

 a lower asking price or favorable terms to help your property attract a bid. Your seller agent is your greatest resource during your home sale. He or she can further explain how these factors will influence your particular listing.

This article is from Carmen’s Life at Home January 2008 Newsletter and Century 21. To see the entire newsletter click here – Jan 08 life at home newsletter