Karen Church

It's important for Realtors to remind home buyers that all homes-old or new-need ongoing maintenance. That's why Karen Church, your Go To Gal with Remax Integrity and Todd Bowers with Pillar to Post Home inspections are here for you. We want your home to be in its best shape always.

First, buyers should understand the 1% rule. This rule postulates that normal maintenance on a home is about 1% of the value of the home per year. For example, a $250,000 home would require $2,500 per year to maintain. This would be enough to replace the roof covering...and then, a few years later, to replace a failed hot water tank...and then a few years more until a new central air system is required.

Then there is the 3% rule. Some experts say that home buyers should plan on spending 3% of the value of the home in the first year of ownership. This is because new homeowners will most likely have to buy drapes, blinds, a washer and dryer, a stove, maybe even a new roof covering. Also, new homeowners often customize the environment to their taste, so they need to budget for repairs, replacements and maintenance.

In addition, most home components have fairly predictable life cycles. For example, the typical life cycle of a high-efficiency furnace is 15 to 20 years. What this means is that most high-efficiency furnaces last between 15 and 20 years.

One way to know the extent of the maintenance needed and the costs to repair and/or replace items is to have a home inspection conducted. Home inspectors are required to let the buyer know if a component is significantly deficient or if it is near the end of its life cycle (service life), and a reputable home inspection company may offer up-to-date repair-cost guides to help clients with their planning.

Home inspectors work with Realtors and buyers to help them understand the issues that are found in the home, regardless of age, offering the right perspective and objective information. Home buyers need to understand that it's normal for items in a home to wear out. This should be regarded as normal "wear and tear" and not necessarily a defect.

A good home inspection determines the current condition of the house, offering a report of all the systems and components in need of maintenance, service, repair or replacement.

For example, consider a home inspection that uncovers that the heating system is old and requires replacement. A home buyer may see this as a huge problem. However, this problem may be the only item in the home that requires attention. If a buyer were to look at this situation in perspective, this home could be well above average-a home merely requiring a new furnace.

A good home inspection provides objective information to help the buyer make an informed decision. Knowing what items need to be budgeted for repair or replacement will help home buyers plan or negotiate better and not be stuck with unexpected costs of hundreds, or even thousands of dollars in the long run. Also, fixing these items will make a marked improvement on the performance of a home and minimize issues that could affect its future integrity...and value.

Thank you.

Todd.Bowers@pillartopost.com
www.pillartopost.com

541-998-4559

Have you seen a MarshAnne Landing? If not, now is your chance. Two very wonderful people named Greg and Fran Cramer, own the MarshAnne Landing Winery in Oakland, Oregon. The winery is set in a peacefull valley overlooking their vineyards. You can sit on the deck, sipping a Red Planet, which is a combination Cabernet Sauvignon, Merlot and Cabernet Franc in the Bordeaus tradition, or a 2008 Caballo, which is an artful blend of Grenache and Tempranillo spanish style, all the while listening to a small orchestra or one man band. Nothing better! Go to their website at www.marshannelanding.com for more information on this wonderful vineyard.

Karen J. Church, Your Go To Gal at Remax Integrity at www.EugeneHomesGal.com, shared that the Tax Credit has been Extended for Veterans.

News from CNN this morning - The National Association of Realtors reported that existing home sales jumped 7.6% last month to a seasonally adjusted annual rate of 5.77 million units, up from the upwardly revised rate of 5.36 million in March. Sales year-over-year were up 22.8%.

Great news! Or was it because of the tax credit that expired? It is important for you to know that the tax credit has been extended for veterans that were deployed during the last year. If you have any buyers that are VA eligible, have them call me to determine if they meet the requirements for the extension of the $8000 tax credit.

Have a great week!

Karen J. Church, your "Go To Gal" at RE/MAX Integrity recommends 8 Tips to Take Advantage of the Home Buyer Tax Credit before Time Runs Out. Go to my website at www.eugenehomesgal.com and find out more, search for properties, or contact me to see how I can help you reach your dreams.

8 Tips to Take Advantage of the Home Buyer Tax Credit before Time Runs Out

RISMEDIA, March 27, 2010-RE/MAX agents report that the home buyer tax credit currently can deliver meaningful savings, but only for those who, at a minimum, have a binding contract to purchase a home in place on April 30, 2010. With that deadline bearing down, potential buyers who want to capture the tax credit had better get serious about home shopping. "It is certainly possible to find a great home and get it under contract in a month or less, but doing it requires intense focus on the part of both the buyer and the buyer's real estate agent," said Jim Merrion, regional director of the RE/MAX Northern Illinois real estate network. Two versions of the tax credit are still being offered: a maximum credit of $8,000 for first-time buyers (and those who last owned a home 3 or more years ago), as well as a $6,500 credit for current homeowners. Either way, the credit applies only to the purchase of a new principal residence costing $800,000 or less, and there are income restrictions and other limitations, including a requirement to close the sale before July 1.

How can buyers eager to capture the tax credit streamline their home shopping?
Here are some suggestions:

1. Get to Know Your Market: Buyers can do that using Internet sites that permit you to see the homes currently on the market, and by finding a good real estate agent who is ready to expedite the shopping process. "A capable agent can guide buyers through the home search process and save them a lot of time," contends Debbie Laskowski of RE/MAX Select in Chicago. "New listings can be emailed to buyers as they are posted, and buyers should stay on top of the market on a daily basis, seeing what properties are coming onto the market and which ones have sold."

2. Line Up Your Financing: Talk to a reputable lender right away and go through the pre-approval process. That will tell buyers quickly how much they can borrow. At today's extremely low interest rates, that amount may be more than many buyers imagined. But either way, the process will help buyers determine how much they are willing and able to spend on the home.

3. Start Narrowing Your Search: With a large inventory of homes to choose from in the current market, buyers won't have time to look at everything in their price range. By establishing specific criteria of the home they want, buyers can screen out homes that won't fit their needs. "If you can give your real estate agent answers to two questions: Where do you want to live, and how much can you invest, you should be well on your way to a successful home search," said Merl Carberry of RE/MAX Suburban in Arlington Heights, Ill. "When it comes to geography, buyers should factor in their daily commute. Few of us want to be more than 45 minutes from work. If buyers need access to public transit, then that also shapes their choice, and if they have children, schools are going to be a factor. Ideally, you can narrow you search to one or two communities rather quickly."

4.Separate Needs from Wants: Buyers can look at fewer homes if they can tell their agent what features the home they buy must have and what features would be nice but aren't required. "When it comes to must haves, start with the basics," recommends Dan Bundy of RE/MAX Center in Grayslake, Ill. "How many bedrooms are needed? Is a separate home office essential or just desirable? Do you require a basement? Will a two-car garage be sufficient, or do you need something larger? And don't forget to consider the type of home. Are you interested only in a traditional two-story single-family detached dwelling, or would a ranch plan work just as well? And what about a townhouse?"

5. Consider Condition: In today's market, many of the best values are foreclosed homes that aren't in perfect condition. Buyers should decide up front if they are willing to tackle a home that needs work, and if so, how much. "Buyers often have a hard time articulating what they will accept when it comes to condition," explained Jim Hannigan of RE/MAX Properties in Western Springs, Ill. "That's why it is important for a buyer to get out and walk through some properties with their agent as soon as possible. Buyers' reactions give an agent the clearest picture of their priorities."

6. Keep Things in Perspective: As nice as it may be to get the tax credit, don't let the desire to do so completely control your home search. "Some buyers are quick decision makers, and others aren't," noted Debbie Laskowski. "If you like to mull over important decisions, take the time you need. The tax credit is a great incentive, but an $8,000 credit equals just 2.5% of the price of a $320,000 home. Buying the wrong home can end up costing you a lot more."

7. Leave Time to Handle Standard Contingencies: The typical purchase contract may have several contingency clauses, for such things as a home inspection, attorney's approval, obtaining financing and even the sale of the buyer's current residence. Fortunately, standard contingencies in a contract won't prevent it from qualifying for the tax credit, according to Dan Bundy of RE/MAX Center. However, "the more contingencies you have in a contract, the greater the risk that it won't close," said Bundy. For example, if an issue arises in the home inspection, and it can't be resolved, the buyer may want to find another house, but doing that after April 30 will mean losing the tax credit. Allowing time to work through the contingencies before the deadline reduces that risk.

8. Be Careful of Short Sales: If the home you want to buy is offered as a short sale, qualifying for the tax credit may become more difficult. "Short sales require that purchase offers be approved by both the seller and the sellers' lender, and lenders often are slow about responding," said Merl Carberry of RE/MAX Suburban. "Waiting for lender approval could leave you without a binding contract on April 30."