To keep repair costs as minimal as possible, be aware of some problems that can cause serious roof leaks, and stop them at the source whenever possible to prolong your roof’s life. If you aren’t experienced with home repairs, it’s a good idea—for safety’s sake—to call in a professional home inspector to assess the damage, and a trusted repairperson to fix it correctly. And if you’re in the home buying or selling process and a home inspector is required anyway, choose a professionally trained inspector who knows the importance of checking for all of the following problems, which can contribute to leaks:

1. Incorrect shingle installation. Don’t rely on looks alone; even the strongest shingles won’t stand up to rain if they’re not properly installed. Improper joint locations and a lack of underlay are two issues that are particularly hard to see, but can be extremely problematic.

2. Structural sagging. A sagging roof structure is often the result of moisture retention, and nearly always foreshadows, or coincides with, a leak issue.

3. Water “ponding.” Clogged roof drains and indented areas on flat roofs can cause water pooling—which is basically a leak waiting to happen.

4. Damaged nails. Even on shingles that have been expertly installed, nails are the first thing to show wear. Corroding nails leave microscopic holes that invite water in.

5. Improperly hung gutters. Gutter placement is critical, and if you’re in an area with strong wind, just a tiny shift can tamper with the gutter system and divert rain—meant for the gutter—onto the roof.

6. Moss. You might think it’s just an aesthetic problem, but as moss gathers, it retains more and more moisture that you might not be able to see—until it starts dripping into the attic.

7. Insufficient insulation. The roof might look great on the outside, but if it’s not properly insulated underneath, you’re in trouble. Pre-1980s homes, in particular, may not have an adequate vapor barrier; if they don’t, a replacement is warranted—surface patching and minor repairs will just amount to wasted money.

8. A deteriorating chimney. Whether its cracks, eroded joints or a decaying cap, the chimney has plenty of inroads for moisture and water. Don’t discount the chimney; sometimes it might need all the repairs, when the roof might be just fine.

9. Evidence of badly-done past repairs. From improper plastering to inadequately plugged-up holes, any past repairs that look like they’re DIY are probably not up to code, and are just a stopgap measure. Don’t look to them to provide any leak protection in the future. Have a professional inspector evaluate these half-hearted fixes, and suggest ways to re-do them properly, to prolong the roof’s life.

10. Don’t forget the attic. Leaks into the attic aren’t just a problem; but so are leaks originating in the attic. One of the most important precautions: Don’t terminate any vent or exhaust pipes in the attic.

By Charles Furlough
RISMEDIA, December 14, 2010

http://www.wrar.com/LocalArea/StatisticalReports/statisticalreport.htm

Photo: © Nyul – Dreamstime

One way to take advantage of low home prices is through a short sale, in which the homeowner and lender agree to sell the home for less than the homeowner owes on the mortgage, and call it even. All they need is a buyer who is ready and approved for the deal to go through. It can be a very sweet deal for the buyer, but not without its own complications. The smart buyer will look into this option thoroughly before jumping in.

A short sale does not mean “Steal of the Century.”  Why? The lender agrees to sell the house for less than is due on the mortgage, but the lender is no dummy. They will look closely at which route will be most advantageous for them, whether it is a short sale or foreclosure. What does this mean for the buyer? Don’t make ridiculous lowball offers.

Settle in for a long wait.  Short sales are never short, in terms of time. If you are in a hurry to move into a house, a short sale may not be for you. If you can wait, be prepared for at least a few months, depending on the situation. Your actions may help speed up the process:

Before you start looking around, get pre-approval from a bank or lending institution, and have all the necessary paperwork to prove you can afford the loan.

Make sure the property in question is already approved for a short sale by the lender. This can cut out many weeks from the process.

Find an experienced short sale agent who has a successful record.  Besides knowing all the hidden, important details of a successful short sale, your agent can help you settle on a reasonable offer the lender will be more likely to accept.

A short sale is not a guaranteed good deal. Buyers, proceed cautiously when it comes to short sales. But if you have the time, flexibility, and nerves of steel to ride the short sale process, you may be rewarded for your time and determination with a great home.

Keeping your home in good condition will ensure your family’s safety, increase your home’s value, and save you money in future home repairs. Here are some things you should check in and around your house.

Roof and Gutters
Clean your gutters and drain pipes of leaves and debris. Your drain pipes should be positioned so that any precipitation drains away from your house. Check your roof for any missing shingles or damage. You also need to check your ceilings indoors for any water damage or leaks around windows, vents and corners that are prone to leakage over time.

Heating System and Hot Water Heater
You should have your heating system serviced and all the filters changed every year. Draining your hot water heater and removing the sediment that has gathered at the bottom of the tank over the last year, will not only prolong the life of your water heater, but will ensure that it stays in top condition year round.

Siding and Paint
Do a slow walk around your home and look for any cracks or peeling in your house siding or paint. Replace any caulk that may be dried out and cracking. You can use a carpet knife as a simple effective tool to cut away old caulking from house siding. Slide the blade alongside it from both directions and then use the carpet knife to lift the old caulk intact.

Windows and Doors
Check all of your doors and windows for drafts. Replace any seals that seem worn or damaged. Those small cracks that get neglected can be the equivalent of leaving a window open year round, wasting energy and increasing the work of your heating and cooling systems.

Filters and Water Faucets
The filters in your home should be replaced or cleaned once a month or as needed. Remember to check and clean your air conditioner, dryer vent, room fans and stove hood. Always keep furniture and draperies away from heating vents.

Check all faucets throughout your home for leaks. Repairing minor leaks prevents larger issues from happening and can lower your water bill. To fix leaky faucets, you may need to replace worn-out washers and gaskets.

Safety Devices
Check and replace batteries in carbon monoxide, and smoke detectors at least twice a year. If you have a fire extinguisher, make sure it is in good working order and kept out of reach of children.

When investing in real estate, it pays to follow certain guidelines before making, and possibly regretting, such a costly decision. The following eight tips will help you make a successful real estate investment.

1. Do your research. Before you buy a house for income generation, be sure to research historical price data for that particular neighborhood. Try to feel out whether housing prices in that area of town are rising, falling, or holding steady. Look up the selling prices of other homes in the house’s neighborhood. This will let you know if now is the opportune time to buy your desired property.

2. Consider buying cheaper property. If you buy an expensive home you will need to charge a higher rent; conversely, a cheaper home will mean more reasonable rent. Renters who pay a high monthly rent may just as easily move out and pay that money towards their own mortgage. Higher rent properties are a luxury, while cost-effective rents are a need. In other words, needs always outrank wants.

3. Add up all costs. Don’t buy a property just because it is a “steal.” Consider all the costs of buying the property, including any needed repairs, utility bills, property insurance and taxes, and risk of vacancy. If possible, make a cash flow statement, or ask for a cash flow statement from the prior owners of the property (if it was used as a rental property). Collect as many documents as you can which detail the property’s utility and other costs.

4. Know your market. Analyze your property, the type of neighborhood in which it is located, and what businesses or organizations are nearby. Would this property be suited for young professionals with no families? Would this property be better suited for renovation and resell to a family? Knowing what you are buying will help you better turn a profit on your property.

5. Consider capital growth. Assess the neighborhood located around the property that you are buying. Are big corporations being built in the vicinity? Or are houses and buildings being shut down and demolished? Do you see evidence of quaint shops and shopping malls going up nearby? All these events will play a factor in your property’s future price at sale. They will also determine the demand for rental accommodation.

6. Inspect the property. Hire an accredited inspection firm to come in person and inspect the property you are considering. Do not overlook or skimp on this important step. It is imperative that the condition of the house be assessed, including its roof, fixtures, foundation, walls, and plumbing, heating, and electrical systems. Professional house inspectors will also look out for problems indigenous to that housing area, like termite, flood, or earthquake damage.

7. Do not purchase beyond your means. While you may qualify to purchase a lot more property than you originally deemed possible, don’t. The last thing you need is to be house poor. The property you purchase will need an occasional repair or update and you cannot rely on rental income alone to keep abreast of such future developments. Keep at least 5% of your property’s purchase price in a separate account and be prepared to withdraw it should the need arise.

8. Think for the long-term. Buying property should always be considered a long-term investment. The exception might be if you are looking to purchase real estate in order to “flip” it for a quick profit. Otherwise, real estate is a long-term and slow to liquidate asset. If you think that you will need cash soon, it is best not to buy property.

When the temperatures get cooler, you shut the windows, flip the air switch to heat and plug any leak you can find in an effort to keep your house warm. But what you’re also doing is sealing the air inside your house.

While a good tight seal is very important to staying warm and keeping your energy bill in check, it also can really have an impact on indoor air quality.

“When you flip that switch on your heater, there is a lot of dust and debris – collected in the coils over the summer months – that either burns into fumes or gushes into the house through your vents,” says Aaron Marshbanks, board member of the National Air Duct Cleaners Association (NADCA).

In addition, your heating system blends warm temperatures with air that can be moist, and which can be a haven for mold and mildew. Throw a fan on top of that, and the air quality inside your home can quickly plummet.

Heating, ventilation and air conditioning (HVAC) systems have been shown to act as a collection source for a variety of contaminants that have the potential to affect health, such as mold, fungi, bacteria and very small particles of dust. According to the U.S. Environmental Protection Agency, indoor air can be two to five times more polluted than outdoor air. The removal of such contaminants from your HVAC system is crucial to improve indoor air quality. Plus, a clean system can save you money on your energy bill.

Further research from the EPA found that HVAC system cleaning may allow systems to run more efficiently by removing debris from sensitive mechanical components. Clean, efficient systems are less likely to break down, have a longer life span, and generally operate more effectively than dirty systems.

“Heating and cooling uses up about half of the energy in your home,” says Marshbanks. “But having a clean HVAC system can save you up to 30 percent in energy costs. Which means you have better air inside the house, and are helping the environment with an extra bit of cash in your pocket at the same time.”

The top issues that affect a home’s HVAC system, its efficiency and air quality are:

1. Filtration – Low-efficiency filters, lack of a filter replacement program and improperly sized filters can allow particles and debris to flow into a home or building.

2. Duct work contamination – It is estimated that about 90 percent of HVAC systems more than 10 years old will have some level of insulation deterioration. Over time, the insulation fibers are distributed and blown into occupied spaces every time the blower turns on.

3. Dirty evaporator coil – Over time, evaporator coils become matted with dust and dirt. During cold months, the heated air can flow over the dirty coils and be distributed into your home’s interior space.

The best way to determine if your HVAC system is clean is to perform a visual inspection. If any dust or debris can be seen, the system needs to be serviced. Some of the things that may lead a home owner to consider more frequent cleaning include:

* Smokers in the household.
* Pets that shed high amounts of hair and dander.
* Water contamination or damage to the home or HVAC system.
* Residents with allergies or asthma.
* Home renovations or remodeling.

The most effective way to clean air ducts and ventilation systems is to employ source removal methods of cleaning. This requires a contractor to place the system under negative pressure through the use of a specialized, powerful vacuum.

NADCA has published an internationally recognized standard that specifies requirements for proper cleaning. NADCA is a widely recognized nonprofit trade organization representing certified contractors worldwide that sets standards and provides certification and training for the industry. For more information about HVAC cleaning and to find a certified and knowledgeable contractor, visit www.NADCA.com.

The impact of the favorable borrowing costs is being muted somewhat, however, by a high rate of joblessness, foreclosures, and tight credit.

Source: Boston Globe (11/12/10)

In the second quarter of this year, jumbo lending rose 30 percent compared to the first quarter, according to Inside Mortgage Finance Publication, which provides industry data.

J.P. Morgan Chase home lending unit has increased jumbo lending by 146 percent in the first six months of this year. Wells Fargo’s jumbo lending is up 47.5 percent in the same time period.

Securing these loans continues to be difficult. Borrowers need excellent credit scores, verification of income and a down payment of somewhere between 20 percent and 40 percent. Some borrowers report that approval time can be faster at smaller banks.

Source: The Wall Street Journal, M.P. McQueen (11/06/2010)

http://www.youtube.com/watch?v=QJOr7aG9t_Y