Testing for asbestos in popcorn ceiling

Good article….Health concerns arise after homeowners cut corners

 

DEAR BARRY: We just learned that the "popcorn" ceiling in our home contains asbestos. Unfortunately, we already removed it from two rooms and did not follow the recommended procedures to prevent air contamination. Instead, we scraped the ceilings while they were dry, which made a lot of dust. Then we cleaned up the floor with a shop vacuum. So now we have two concerns. Have we contaminated our home, and have we potentially damaged our health? --Deborah DEAR DEBORAH: Many people have removed ceiling texture from their homes without knowing they were disturbing asbestos. To determine whether your home is contaminated with asbestos, you should hire a qualified asbestos inspector. Air samples should be taken from your home and from the surfaces of fabric-covered furniture and carpets; even from the shop vacuum that you used. All samples should be evaluated by an accredited environmental lab. If the samples are positive, an asbestos abatement contractor should be contacted regarding cleanup. The question of health effects to your family from asbestos exposure cannot be answered with certainty. The asbestos fibers your family members may have inhaled cannot be measured, and the eventual effects of those fibers, if any, cannot be predicted. Most cases of asbestos-related lung disease involve people who were exposed to high levels of asbestos for long periods of time, such as workers who mined asbestos or who handled it in manufacturing or construction. Keep in mind, also, that everyone has been exposed to airborne asbestos fibers, whether they know it or not, and most people do not develop lung disease as a result of that exposure. Fallacies about asbestos abound. For example, it is commonly believed that asbestos was banned from the manufacture of all products. Actually, it has been banned from many products, but not all. There are still building products, such as roofing mastics and flooring materials, that continue to be made with asbestos. Even some automobile brake linings still contain asbestos. Another asbestos fallacy -- involving "popcorn" ceilings -- is perpetuated by many contractors and others in the building trades. It is the belief that asbestos ceiling texture was banned during the 1970s. Some say 1973; others say 1978. Both are wrong. There was, in fact, a ban on the manufacture of asbestos ceiling texture in 1978, but installation of the material remained legal. Banning the installation would have caused financial loss to manufacturers, suppliers and contractors who had already invested in stocks of the product. The installation of remaining supplies, therefore, continued into the 1980s, when inventories were finally exhausted. It should never be assumed that ceiling texture does not contain asbestos, based upon age or physical appearance. I recently witnessed a painting contractor pinch off a piece of ceiling texture, crumble it in his palm, examine it closely, and announce to the homeowner, "This does not appear to contain asbestos." What the painting contractor didn't know is that asbestos fibers are microscopic. A polarized light microscope is needed to determine whether asbestos fibers are present. Fortunately, the cost for lab analysis is very reasonable. Anyone planning to remove "popcorn" ceiling texture should have it tested before tampering with the material. Barry Stone Inman News

 

 

 

 

Pick the Neighborhood First!

With home prices low in many areas, buyers are taking advantage of the opportunity to purchase in new neighborhoods. If you are looking for your ideal home at these low prices and low interest rates be sure to pick your neighborhood first!

 

We work with many buyers who are looking in several different cities let alone multiple neighborhoods within each city. Start to narrow your focus by driving the cities and neighborhoods you like best. Eat dinner at various restaurants, visit different parks and stroll through the down towns. Do what it takes to get familiar with each area and begin to eliminate particular cities and/or neighborhoods.

 

We can provide you with essential neighborhood statistics on crime, schools scores, churches, weather and much more. This valuable information will empower you to make the right decision for you and your family. Once you have chosen the right city or neighborhood, you are ready to begin searching for your dream home. Happy Hunting!

 

 

 

 

On the Way Up!

Check out the good news on the housing market!

 

http://www.foxnews.com/politics/2009/07/27/new-home-sales-rose-percent-june/

 

 

 

When can I get my earnest money deposit back?

When you purchase a home, you include a 1%-3% earnest money deposit with your offer. Once the offer is accepted, the earnest money deposit is delivered to the escrow company. The escrow company deposits the funds into an escrow account. This deposit is a “good faith” deposit demonstrating your intention to buy the home.

 

If you back out of the purchase after removing all your contingencies, then the seller is entitled to keep your deposit. This is a very fair way to do it because, by accepting your offer, the seller has taken their home off the market for a period of time, therefore, not allowing any other buyers to purchase the home.  

 

A higher deposit can strengthen your offer as it shows that you are very interested in following through with the purchase. When writing an offer, you also have the option of adding to your initial deposit amount in the form of an “increased deposit”. This increased deposit amount usually goes into the escrow account after the contingencies are removed.

 

In a standard California offer, there are 3 main contingencies: Finance, Appraisal and Inspection. Some offers include all 3 and other buyers may not have 3 main contingencies. For example, if a buyer was paying cash he/she would not have a finance contingency. If you remove your contingencies and later decide not to follow through with buying the house, you may be out your full deposit for liquidated damages to the seller.

 

If you do not remove your contingencies and are not able to buy the house due to a financing/appraisal reason or do not like something that you have seen after inspecting the home further, you are free to back out of the contract and receive your deposit back from escrow. If you have specific questions, please feel free to call us. We would be happy to explain it in greater detail.

 

 

 

 

 

Financing is Favorable...For Now

Some buyers are concerned about buying a home that will drop in value in the coming months. But buying a home is a long-term investment, and there’s more to consider than just the purchase price. From 1980 to today the 30-year fixed rate mortgage has ranged from more than 18 percent to less than 5%.

 

If you’re waiting for home prices to come down another $10,000, you may pay more in the long run if mortgage rates rise in the meantime. For example, look at the below chart. You’ll see that even with a higher loan amount at a 5% interest rate, the monthly payment is $50/month lower verses a lower loan amount at a 6% interest rate. Also, the amount of interest paid during the total life of the loan is almost $30,000!! So, waiting for prices to come down is very risky.

 

Loan	Rate	Payment	Total Int
$270,000	5.00%	$1,449	$251,791
Loan	Rate	Payment	Total Int
$250,000	6.00%	$1,499	$289,595

When you are looking for a bargain, don’t lose sight of the big picture. If you try to time the market to save a few thousand on the price of a home, you could end up with a higher monthly payment and total overall cost of home ownership.

 

 

 

The Importance of a Home Inspection

Should you get a home inspection when selling or buying? Watch this 5 minute video for important information on the value of a home inspection…

https://www.thinkbigworksmall.com/public/showArchiveVideo/3909/4116

 

 

 

Will a Seller Pay my Closing Costs?

“Will a seller pay my closing costs?” is a question we are asked frequently. It depends on two main items:

1) Type of loan you are pre-approved for

2) Situation with the property

 

Credits for closing costs can be anywhere from 3%-6%. On a $300,000 loan that can be anywhere from $10,000-$18,000. Typically for conventional loans the lender will allow the seller to credit you back 6% of the purchase price towards your closing costs. For FHA loans, it is a maximum of 3%.

 

It also depends on the situation with the property. For example, if there are multiple offers and/or you are going in under the asking price, then chances are the seller is not going to accept your offer if you also ask for closing costs to be paid. However, if you are the only interested party and the home has been on the market for several months the seller may agree to pay all or part of your closing costs. It is important to have us or the Realtor you are using find out the maximum credit allowed by your lender and understand the seller’s situation. We work with our clients to get them credits towards their closing costs whenever possible. The more money you save and the overall lower price you get for your home, the happier you will be.

 

 

 

 

What should I list my house at?

Rule number one in the current market is NOT to start out overpricing your home just to “see what happens”—you will only reach 10% of the buyers. Buyers are shopping price. They want a good deal.

 

For example, if you list your house 15% over market value than you are attracting only 10% of the buyers. If you ask 10% above market value you open it up to 30% of the pool of buyers.

 

Pricing it at market value in this market still only attracts 60% of the buyers. It is not until you begin to price it under market value that you will see higher activity and traffic through your property. 10% under market value typically yields interest from 75% of the buyers out there and 15% under market value widens your target market of buyers to 90%!!!

 

So, what should you list your house at?....Obtain the current market value from your Realtor, then price it at least 10% under that value to receive an offer faster and possibly multiple offers. You can create competition at the right price. Good luck!!

 

 

 

Global On-Line Bidding

Are you interested in selling your house and want to get the highest price possible in a short amount of time? Global On-Line Bidding is the answer. Here are several of the benefits to selling your house via this new innovative marketing approach.  

 

•         Create Competition Among Buyers

•         Expose the Property to a large number of Pre-approved Buyers

•         Accelerate Sales

•         Auction Brings Interested Buyers to a point of Decision

–        They must act now or lose an opportunity to purchase

•         It is a True Market Forum

–        The highest buyer pays the lowest price a seller will accept

•         You know exactly when the Property will Sell

 

Buyers love this method because they get full transparency…they know exactly what their competition is bidding and can feel comfortable going as high as they can afford.

Are we at the Bottom of the Real Estate Market?

As we have said before, we will not know that we have hit the bottom of the Real Estate market until we start going up. However, current listing prices in several Bay Area cities are indicating that we could definetly be at the bottom.

 

How do we know?...Key Real Estate economists have advised that areas which experienced 10%-20% appreciation several years ago needed to roll back to 2001/2002 pricing before home prices stabalized. Well folks, we are seeing this now. Many homes are coming on the market at the prices they sold at in 2001 and 2002.

 

We are now seeing multiple offers on properties not just in the outlining Bay Area cities such as Brentwood, Patterson and Tracy but also now in many cities around the Bay and the Tri-Valley.

 

These low prices and extremely low interest rates are the cause for this incredible market activity.

 

Homes "on-sale": Finding Value

Rich Dad Poor Dad author Richard Kiyosaki uses the example of a sale at the local supermarket to illustrate a common investor mistake---focusing on price movements instead of value. He notes that if a supermarket held a “25% off everything in the store” sale, the store would be packed.

 

But when prices plunge in the stock market or real estate market, many investors hear the bad news and head for the sidelines until prices begin climbing again. In any market, it’s important to consider value along with price. Supply and demand dictates that real estate values are easier to find in slow periods and become harder to find when markets heat up.

 

So, what’s lasting value? Here’s a list of homebuyers’ most sought-after-features, according to the NAR:

1. Central Air Conditioning
2. Garage with two or more spaces
3. Walk-in closet in master bedroom
4. Backyard/Play area
5. Cable/Satellite TV-ready
6. High-speed Internet Access
7. Separate shower in master bath
8. Patio
9. Fencing
10. Home newer than 10 years old

 

If you have looked in the past and not found these features in your price range, it may be time to check again, while properties are still “on-sale”. Be sure to consider features that will make homes more valuable in the future, such as energy-efficient construction and appliances and shorter commuting times. Features like water or mountain views, good schools, recreation opportunities and unique architecture never go out of style. For a list of homes for sale with specific features in a particular neighborhood, call or email us.

Is there a national real estate market?

Most media reports about the housing market focus on national statistics such as sales volume and median home prices. The often-repeated statement that all real estate is local is often repeated because it’s true. It’s interesting to hear about the ups-and-downs of the U.S. real estate market, but those reports really are only useful in the context of local real estate markets.

 

In reality, the national real estate market is made up of thousands of local neighborhoods, each with its own unique circumstances. The local economy, employment picture, tax situation and government policies will have more influence on local housing markets than any national trends. That’s why homes in some neighborhoods continue to sell for the asking price, while across town others languish on the market despite multiple price cuts.

 

The difference might be better schools, an exclusive location or just a neighborhood with a prestigious name. Even within the same neighborhood, Victorian-style homes may be selling well, while Colonial models sit unsold. A condo with a striking skyline view will sell better than an identical unit facing a parking lot and a dumpster. That condo doesn’t have much impact on the national real estate market – and vice versa.

HVCC: Important information regarding Home Values

Check out this video on how HVCC affects you and why you need to be aware of it…

 

https://www.thinkbigworksmall.com/public/showArchiveVideo/3909/4552  

 

 

 

Housing Market Prediction for 2009 and beyond...

 Economic guru, Carol Rodoni, predicts several trends for 2009:

 

1)      Foreclosures CA, NV, AZ and FL are going to continue to rise.

2)      Investors and first time buyers will continue moving into these areas with high foreclosure rates.

3)      Vulture funds out of the east coast are now putting $30K-$40K together; looking at things in the $150-$250K range, targeting a 3-5 year hold with no return, to put them back on the market and sell them once the market has bottomed out.

4)      This market creates opportunity in the lower end. People can now buy homes or investment properties for $150K in the San Francisco Bay Area, rent them out for $1100/month and get into a cash flow property.

5)      First time Home buyers are entering and will continue to enter the market this year. Affordability index has gone from 9-10% to 20%.

6)      Higher price points were the ones that went down 10-15-20%. Areas where a great deal of development occurred went down 20-30-40%. Looking back over the last 30 years the market would typically rise 6-8% per year adjusted for inflation. We hit 2000 and suddenly that escalated to 20% to even 60% in some of those areas that were being built in outlining commuter areas (i.e. Watsonville, Salinas and Brentwood). That growth rate was not sustainable. Most inflation was in the areas where the land didn’t have the value. Those markets are going to come down to prices of 1998-2000. Other areas (i.e. Santa Cruz, San Ramon) which are more primary markets, are going to 2000-2002 prices.

7)      After the above occurs, we are likely to see 6-7 months price of stability, not big changes in either direction, then appreciation slowing returning, mild 3-4% at first, then perhaps 5-6%, but nothing like we saw in the housing bubble cycle of 2000-2007.

8)      When will the bottom of the market occur? It will happen when we get back to these price points.

9)      Real estate is going to become the asset of choice because people are afraid of the stock market. People have seen 40-50% of their wealth dissipate in the past 6 months. The stock market is not going to jump back fast, could take 3-4 years.

10)   Underwriting is tough, but those buyers who can do verification of income, with full documentation can get loans. Interest rates are the lowest in 37 years. This is not going to last forever. We will see rates around 7-9% starting at the end of 2010 and by 2011.

11)   Lending is opening up, affordability numbers are increasing, and we have a new president motivated to get the economy going. All bodes well for the opportunity for Real Estate

 

*Notes by Datta Khalsa

 

Real Estate Auctions

Check out this 5 minute video on Real Estate Auctions… 

 

www.dugganteam.com/auction.aspx

Welcome Video!

The Duggan Group   welcomes you and would like to give you a quick video tour of our complete array of services. Click the link above to view our video...

 

https://www.thinkbigworksmall.com/public/showArchiveVideo/3909/4120

 

 

 

 

 

 

The News is Bad...for a Reason

Quick….which is the more exciting scenario?

 

A man walks slowly down a flight of stairs, sometimes pausing or retracing his steps until he reaches a floor. After trudging along for awhile, he notices another staircase and begins ascending, occasionally pausing or taking a step back before methodically proceeding upward.

 

A second man hurtles down a terrifically high flight of stairs. Ignoring the safety railings, he runs recklessly downward, dodging obstacles in his path as he goes. He suddenly cries out as he loses his footing, sails through the air, tumbles down several flights of stairs in a spectacular crash. The badly injured man is bandaged from head to toe and attached to a variety of beeping, flashing medical devices that monitor his vital signs. Experts debate his condition but agree that the situation is dire and prospects for recovery are uncertain.  

 

…and that’s why more headlines say “Home values off the cliff in Phoenix, Miami and Las Vegas” than “Things aren’t bad in Seattle, Portland and San Francisco.” Most readers just find sensational headlines more interesting. And while they may help sell newspapers, they also scare buyers and sellers to the sidelines, though the news may be very positive for home buyers in particular.

 

 

Market Timing is Far From Perfect!

No one wants to purchase a home only to see its value decline. But should you wait to buy a home until prices bottom out? A quick web search will yield a number of articles and opinions for and against timing the real estate market, but beware of those in favor of market timing who also want to sell you a how-to book or system.

 

Many people who have tried to time the market miss out on the chance to build equity by waiting to buy until prices rise again. The problem? Market cycles only become clear in retrospect. In the midst of a market slowdown, it’s very difficult to predict when housing prices hit their low points. What is the best way to protect against buying at the wrong time? Sell at the right time. In many cases you can’t control when to sell, but you should plan on keeping your home at least six or seven years.

 

The longer you own your home, the better chance you have of building wealth and protecting yourself from the market’s ups and downs.

 

 

Long Term Owning Usually Beats Renting

Typically, a weak housing market corresponds with a strong rental market. If the rental market is strong in your area, it may indicate weakness in the local housing market, which typically favors Buyers over Sellers.

 

When you buy a home with a fixed-rate mortgage, you can lock in a predictable monthly payment for 15 or 30 years. That means the largest part of your housing costs, principle and interest, are fixed. For some people, that stability, along with the sense of community that comes from being a homeowner, is enough to tip the scales toward home ownership.

 

If the monthly cost of buying vs. renting is comparable, you may consider some related factors to help you decide. Use the mortgage calculator under the “Finance Tab” on our website to find out which sales price is equal to what you are currently paying in rent. For example, if you are paying $2600-$2700 in rent per month that is equivalent to the principle and interest payment on a $500,000 Loan (5% 30-year fixed rate). Getting pre-approved for the loan is Step One. Your interest rate may be higher or lower depending on the amount you put down and your credit score. Email or call us and we will connect you with our preferred lenders.

 

When you rent, your landlord receives any appreciation and tax breaks associated with owning the property. If you plan on any significant remodeling, buying may be also preferable to renting. We are here to help you decide which is best for you!

 

 

 

 

Uncle Sam wants you...to be a HOMEOWNER!

Wouldn’t it be great if the government kicked in some money to help make home ownership more affordable? Because of deductions on mortgage interest, property taxes and now the $7500 tax credit for first time home buyers, the practical effect is that the government is subsidizing your home purchase. In fact, home ownership provides three of the best ways to reduce your tax bill.

 

1)  Mortage Interest you pay can be deducted from you gross income to reduce your taxable income. For example, say you take out a $300,000 mortgage loan at 6% interest. You pay $18,000 a year in interest on that loan. That means your taxable income for the year is reduced by $18,000. If you’re in the 25 percent tax bracket that means a one-year tax savings of $4,500 (25 percent of $18,000)

 

2) Property taxes may also be deducted from your gross income, lowering your overall annual tax obligation. Property taxes are levied on homeowners in the US to pay for a variety of public services. You may see local tax rates between 1 and 2 percent of the property’s current assessed value, depending on where you live. Property taxes are fully deductible on your primary home, second home or vacant land.

 

3) New $7500 Tax Credit for First-Time Home Buyers. This credit may be going up to as much as $15,000 in the new stimulus package.

 

Several of our clients have called us this year to THANK US for their larger than normal tax refund. They had no idea how advantageous owning a home could be from a tax perspective, in addition to the many other benefits of home ownership.