News for Home Buyers and Sellers, courtesy of Inman News
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Will refinancing to lower rate really save money?
DEAR BENNY: I bought my condo 18 months ago. The interest rate on my 30-year loan is 6.25 percent. Should I consider refinancing to a lower rate? I plan on staying here and paying off the loan so it seems even if I save some money on a lower interest rate I will be extending my loan and paying more/longer? --Scott
DEAR SCOTT: Since you've had your loan for a relatively short time, the costs to refinance your loan may not outweigh the benefits of a lower interest rate. more...
Major home remodel may not pay off
Several years ago, if your home no longer suited your needs, you bought another one that worked better. Generally, listings sold quickly, so many homeowners bought first and then sold the old home. Today's challenging residential real estate market makes this process more risky. For some homeowners, it's impossible due to tight credit markets. more...
This is not the condo I signed up to buy
Q: A couple of years ago I signed a contract for the purchase of a new construction condo in Illinois, with a projected closing date of 18 months later. I put down 5 percent earnest money.
When it came time to finally close, I previewed my unit and much to my dismay, the master bedroom was 30 percent smaller than on the floor plan we received. I raised this as a deal-breaker and the builder offered me another unit, but there are no comparable units available. more...
Painting tips from the pros
If you're an avid do-it-yourselfer, you know the value of a simple can of paint for sprucing up walls and revamping tired rooms. But you've probably also experienced the love/hate relationship that seems to be a part of painting, so here are a handful of tips that should make your next paint project a little easier and more enjoyable. more...
Raising rent on advertised unit a risky move
Q: I've taken over the management of my family's small apartment building and recently spoke with someone who answered my ad for a vacant unit. After talking with other owners nearby, I realized that I had set the rent $200 below market. We haven't signed a lease yet, and I'm wondering if I can correct my mistake. --Tim A. more...
When renting out house is unethical
Q: Do I have the right to rent out a property that is subject to foreclosure without telling the new tenant about the foreclosure but stipulating a notice period of one month to vacate the property? Does a Realtor marketing the property need to be made aware of the foreclosure lawsuit?
A: You may have the right to rent out your property that is subject to the foreclosure, but if I were the tenant moving in to your home, I sure would want to know that I might have to move out in a short period of time. more...
Home sellers keep profits, avoid taxes
(This is Part 4 of a five-part series.)
"The taxpayer: that's someone who works for the federal government but doesn't have to take a civil service examination." --Ronald Reagan
Q: How can I make a profit of $500,000 and not have to pay a penny in capital gains tax?
A: Buy a house with your spouse, live in it for at least two years, and file a joint return. Of course, the house has to increase significantly in value. more...
Can landlord refuse to rent to ex-convicts?
Question: We have several multifamily units with moderate turnover and we run a full credit check on everyone wishing to apply. Sometimes we get applicants where their income and basic credit info is marginal, but they do meet our minimum economic rental criteria so we go ahead and rent to them. We are now seeing that some of these applicants that meet our minimum requirements also have served time for convictions for violent crime, drugs or something pretty serious. more...
Tell-tale signs your movers are scammers
(This is Part 2 of a two-part series. Read Part 1, "Hiring movers often takes detective work.")
If you had to list your biggest fears when moving to a new home, what would they be?
You might be worried about something valuable or sentimental breaking. Or, you might worry that a box would get lost along the way. Or, that the movers won't show up on time -- or perhaps at all. more...
Union workers eligible for mortgage relief
While trying to understand the new Internal Revenue Service guidelines regarding the ability to deduct mortgage-insurance premiums, the topic of unemployment insurance surfaced with regard to the Hollywood writers' strike.
How would the 10,000 members of the Writers Guild of America, along with the related surface industries affected by the walkout, afford to keep their homes if the three-month-old strike continued? more...
Save money installing hardwood floors
Our friend Wes is an inveterate golfer. He's a whole lot more comfortable swinging a pitching wedge than a hammer. So, on a recent warm Saturday morning -- perfect weather for 18 holes -- it was strange to see him on his hands and knees in the spare bedroom of his Castro Valley, Calif., home, nailing down a hardwood floor. more...
Heating costs push homeowners further into debt
Q: We have lived in our house for the past 48 years. Last year we prepaid our oil bill up to $4,300 on a Bank of America credit card, which now has a balance of $8,000.
We pay $300 per month on our credit-card debt. Our mortgage payment is $647 per month. We also have a car payment of $269 per month, which will be paid off by May 2009. Our income is around $38,000 a year. My husband does not have a very good credit rating, but mine is excellent. more...
What's causing drafty kitchen cabinet?
Q: We're trying to deal with a couple of drafts in the home we're updating. We have a microwave over the stove with a metal exhaust pipe that runs through the upper cabinet. It's on an interior wall, but we get a terrible draft through that cabinet. How do I cut down on the cold air? Is it safe to wrap the metal vent with insulation? --Erin K. more...
Sellers: Don't withhold bad inspection report
Inspections are an important part of home buying, but the inspection process can be nerve-racking for both buyers and sellers. Both parties want the deal to go through without a hitch. However, sometimes problems surface that the buyers weren't aware of when they entered into contract.
All houses have defects, even new ones. So it should come as no surprise when defects are discovered. The pertinent issues are: Is there a problem? How serious is the problem? How much will it cost to repair? more...
Tips on selling home to 'quick cash' company
DEAR BENNY: Can you advise me about selling to one of the companies that advertise that they buy houses in "as is" condition, for cash, quickly, and with no closing costs. My mother passed away in March 2007 and as the executor of her estate, I am now preparing to put her home up for sale. Due to the current poor market situation, in order to settle her estate within the next six months, I am considering doing this, but I'd like to know the pros and cons of disposing of her house this way. more...
Key industry players blamed for mortgage mess
You have heard the complaint: "In our current home loan system, nobody worries about the risk because they pass it on to the next player in the chain. If everyone in the chain had skin in the game -- something to lose if the loan goes bad -- we wouldn't be in the mess we are in now." more...
