10 tips for first time home buyers

If one of your goals this year is to make the shift from renter to homeowner, you should begin preparations now for an exciting emotional and financial adventure.

Before you start the home-buying process, make sure you are ready to buy a home where you will live for three to five years or longer, since it can take that long to build equity in a home and recoup your investment costs. Think about your dream home and your dream neighborhood, but recognize that you may need to sift through these dreams to find a community and a home that you can comfortably afford.

Anyone who has watched the news in the past few years should be aware that home prices have fallen in most real estate markets, and that interest rates are at historically low levels — both factors that make buying your first home more affordable.

Here are some tips to get you started on the step-by-step process of buying a home:

1. Check your credit score Lenders base your mortgage qualification on a variety of factors, including your income and assets, your debt-to-income ratio, your pattern of savings and your job stability. But the most important factor in today's tightened credit world is your credit score. Lenders tie the interest rate you must pay to your credit score, so that borrowers with a score of 720 and sometimes 740 and above are the only ones who will pay the lowest mortgage rates. Borrowers with a credit score below 620 may not qualify at all for a mortgage until they can improve their score.

2. Set your housing budget A lender will tell you how much you can borrow, but each potential homeowner should create a simple budget for themselves with income and spending to determine how much they are willing to spend on housing payments. Financial experts recommend that homeowners spend a maximum of about 30% of their gross monthly income on principal, interest, homeowners insurance and taxes. Don't forget to budget about 1% of the home price for condo or homeowner association fees and maintenance costs.

3. Start saving and stop spending Once you have an estimate of your mortgage payment, start saving the difference between that payment and your current rent every month. In addition to building your savings, this allows you to get comfortable with a higher housing payment.

4. Meet with a lender Get pre-qualified for a mortgage loan before you look at homes so you can avoid falling in love with a home you cannot afford. You may be surprised to discover you can afford something pricier than you thought since interest rates are so low. Make sure you ask your lender about your variety of loan options and get an idea of how much cash you will need for a down payment and closing costs.

5. Find a reputable realtor All buyers should have a realtor to represent their interests during negotiations and to help buyers recognize the value in different homes and neighborhoods. Your realtor should be experienced, knowledgeable and familiar with where you want to live. Trusting your realtor is vitally important to buying your first home.

6. Narrow your priorities Decide whether it is more important to you to live in a particular type of home (a single family home with a garage or a condo in a high rise) or in a particular neighborhood. If you cannot find or afford everything you want in your first home, you may need to make some compromises.

7. Choose a neighborhood Some neighborhoods hold onto their value more than others during a housing downturn. Work with a knowledgeable realtor to find a neighborhood that meets your needs - somewhere you will be happy as well as feel safe that home values are stable or rising.

8. Make a reasonable offer If you love a house and don't want to lose it, don't make a low-ball offer. Some sellers are willing to negotiate and others are not. A trustworthy realtor can walk you through the process to make sure you are dealt with fairly.

9. Have a home inspection Never buy a home without having it inspected. Not only are you looking for serious flaws in the home, but you can learn a lot about home maintenance and what to expect in terms of repairing or replacing systems and appliances as an owner.

10. Finalize the details After the contract has been signed, make sure to stay in constant touch with your realtor and your lender to be sure your financing is taken care of along with all insurance needs. A good realtor will have a checklist to make sure everything is accomplished in time for settlement.

The bottom line Buying your first home can be an exhilarating experience, provided you do some research, stay within a comfortable budget and work with reputable professionals who will guide you through the process.http://www.homeinspection247.com/searching-homes-for-sale-or-looking-to-buy-a-home.html

Why should I get a Home Inspection?

Before you buy a home, one of the things you should do is to have the home checked out by a professional home inspector. Buying a home is expensive enough as it is - why would you choose to fork over another $400 if you're not required to? In this article, we'll delve into what a home inspection can reveal and why you shouldn't forgo this optional procedure. 

The Home Inspection ContingencyYour first clue that a home inspection is important is that it can be used as a contingency in your purchase offer. This contingency provides that if significant defects are revealed by a home inspection, you can back out of your offer, free of penalty, within a certain time frame. The potential problems a home can have must be pretty serious if they could allow you to walk away from such a significant contract. 
What a Home Inspection ExaminesInspectors vary in experience, ability and thoroughness, but a good inspector should examine certain components of the home you want to purchase and then produce a report covering his or her findings. The typical inspection lasts two to three hours and you should be present for the inspection to get a firsthand explanation of the inspector's findings and, if necessary, ask questions. Also, any problems the inspector uncovers will make more sense if you see them in person instead of relying solely on the snapshot photos in the report. 

The inspector should note: 

• whether each problem is a safety issue, major defect, or minor defect 
• which items need replacement and which should be repaired or serviced
• items that are suitable for now but that should be monitored closely

A really great inspector will even tell you about routine maintenance that should be performed, which can be a great help if you are a first-time homebuyer. 
While it is impossible to list everything an inspector could possibly check for, the following list will give you a general idea of what to expect.

Exterior

• Exterior walls - The inspector will check for damaged or missing siding, cracks and whether the soil is in excessively close contact with the bottom of the house, which can invite wood-destroying insects. However, the pest inspector, not the home inspector, will check for actual damage from these insects. The inspector will let you know which problems are cosmetic and which could be more serious.
• Foundation - If the foundation is not visible, and it usually is not, the inspector will not be able to examine it directly, but they can check for secondary evidence of foundation issues, like cracks or settling.
• Grading - The inspector will let you know whether the grading slopes away from the house as it should. If it doesn't, water could get into the house and cause damage, and you will need to either change the slope of the yard or install a drainage system.
• Garage or carport - The inspector will test the garage door for proper opening and closing, check the garage framing if it is visible and determine if the garage is properly ventilated (to prevent accidental carbon monoxide poisoning). If the water heater is in the garage, the inspector will make sure it is installed high enough off the ground to minimize the risk of explosion from gasoline fumes mingling with the heater's flame.
• Roof - The inspector will check for areas where roof damage or poor installation could allow water to enter the home, such as loose, missing or improperly secured shingles and cracked or damaged mastic around vents. He or she will also check the condition of the gutters.

Interior

• Plumbing - The home inspector will check all faucets and showers, look for visible leaks, such as under sinks and test the water pressure. He or she will also identify the kind of pipes the house has, if any pipes are visible. The inspector may recommend a secondary inspection if the pipes are old to determine if or when they might need to be replaced and how much the work would cost. The inspector will also identify the location of the home's main water shutoff valve.
• Electrical - The inspector will identify the kind of wiring the home has, test all the outlets and make sure there are functional ground fault circuit interrupters (which can protect you from electrocution, electric shock and electrical burns) installed in areas like the bathrooms, kitchen, garage and outdoors. They will also check your electrical panel for any safety issues and check your electrical outlets to make sure they do not present a fire hazard.
• Heating, ventilation and air conditioning (HVAC) - The inspector will look at your HVAC system to estimate the age of the furnace and air conditioner, determine if they function properly and recommend repairs or maintenance. An inspector can also give you an idea of the age of the home's ducting, whether it might have leaks, if your home has sufficient insulation to minimize your energy bills and whether there is any asbestos insulation. 
• Water heater - The home inspector will identify the age of the heater and determine if it is properly installed and secured. The inspector will also let you know what kind of condition it is in and give you a general idea of how many years it has left.
• Kitchen appliances – The inspector will sometimes check kitchen appliances that come with the home to make sure they work, but these are not always part of the inspection. Be sure to ask the inspector which appliances are not included so that you can check them yourself.
• Laundry room - The inspector will make sure the laundry room is properly vented. A poorly maintained dryer-exhaust system can be a serious fire hazard.
• Fire safety - If the home has an attached garage, the inspector will make sure the wall has the proper fire rating and that it hasn't been damaged in any way that would compromise its fire rating. They will also test the home's smoke detectors.
• Bathrooms - The inspector will check for visible leaks, properly secured toilets, adequate ventilation and other issues. If the bathroom does not have a window and/or a ventilation fan, mold and mildew can become problems and moisture can warp wood cabinets over time.

Home Inspection ShortcomingsA home inspection can't identify everything that might be wrong with the property - it only checks for visual cues to problems. For example, if the home's doors do not close properly or the floors are slanted, the foundation might have a crack - but if the crack can't be seen without pulling up all the flooring in the house, a home inspector can't tell you for sure if it's there. 

Furthermore, most home inspectors are generalists - that is, they can tell you that the plumbing might have a problem, but then they will recommend that you hire an expert to verify the problem and give you an estimate of the cost to fix it. Of course, hiring additional inspectors will cost extra money. Home inspectors also do not check for issues like termite damage, site contamination, mold, engineering problems and other specialized issues.

SEE: 10 Reasons You Shouldn't Skip A Home Inspection
After the InspectionOnce you have the results of your home inspection, you have several options. 

• If the problems are too significant or too expensive to fix, you can choose to walk away from the purchase, as long as the purchase contract has an inspection contingency. 
• For problems large or small, you can ask the seller to fix them, reduce the purchase price, or to give you a cash credit at closing to fix the problems yourself - this is where a home inspection can pay for itself several times over. 
• If these options aren't viable in your situation (for example, if the property is bank-owned and being sold as-is), you can get estimates to fix the problems yourself and come up with a plan for repairs in order of their importance and affordability once you own the property.

The Bottom LineA home inspection will cost you a little bit of time and money, but in the long run you'll be glad you did it. The inspection can reveal problems that you may be able to get the current owners to fix before you move in, saving you time and money. If you are a first-time homebuyer, an inspection can give you a crash course in home maintenance and a checklist of items that need attention to make your home as safe and sound as possible. Don't skip this important step in the home-buying process - it's worth every penny. 

Do I need a Home Inspection?

Should a buyer get a home inspection for a home they are buying? Should a seller order a home inspection prior to putting the property on the market? There are advantages for both.

Simply put, a home inspection is a visual examination of both the physical structure and major systems of the entire home including: walls, ceilings, floors, decks, exterior covering, the roof, foundation, insulation and ventilation, plumbing, electrical, heating and air conditioning. It is not an appraisal to validate the value of a home, nor a pass/fail exam. A third-party inspector will give a report on the physical condition and suggest repairs.

Buyers

For buyers, a home inspection clause in the written offer that makes the purchase contingent upon the findings can provide peace of mind. If a serious problem is found, it allows room to renegotiate the purchase price or "opt-out" of buying the home altogether. However, this is usually uncommon. Typically, the seller will already have told the buyer about any major problems. 

More often, inspections reveal less serious defects that aren't enough to warrant backing out of the transition. However, knowing about these minor problems can prevent major disasters down the road.  In addition, if specified in the inspection clause, the cost of the repairs can be at the seller's expense.

Another advantage to having a home inspection is it offers buyers an opportunity to become familiar with their new home and learn about maintenance to help in its upkeep.  Although not required, it's recommended that buyers be present during the inspection. This allows them to observe the inspection; ask questions about the condition of the home; and receive an objective opinion.

Sellers

For sellers, conducting a home inspection (or pre-inspection) before listing their homes puts the control back into their hands.

When the buyer inspection finds problems, it can impede negotiations and cost the seller more in repairs. By having a pre-inspection, the seller can help eliminate any surprise findings after an offer has been made. The seller can make repairs before placing the home on the market and possibly even increase the value of the home.

A pre-inspection can also serve as a great marketing tool. Sellers are required by law to disclose any known defects in the home. Having a pre-inspection report available for buyers tells them that the seller has nothing to hide. It also gives them a clearer picture of the condition of the home.

If there are major problems found during the pre-inspection, it gives the seller an opportunity to disclose the condition up-front, making it less likely for the buyer to pull out of the deal or try to renegotiate the price.

Knowing the true condition of a home can bring peace of mind to buyers and sellers; and be one less hurdle in the home buying and selling process.  Ask your real estate sales professional for a list of certified independent home inspectors in your area.

Smoke Detectors Specifications Changed

Smoke Detectors Specifications Changed

Starting on July 1, 2014, the State Fire Marshall will not approve a battery-operated smoke alarm unless it contains a non-replaceable, non-removable battery capable of powering the smoke alarm for at least 10 years. This rule was originally slated to take effect on January 1, 2014. Until July 1, 2015, an exception to this rule applies to smoke alarms ordered by, or in the inventory of, an owner, managing agent, contractor, wholesaler, or retailer on or before July 1, 2014. Furthermore, starting January 1, 2015, the State Fire Marshal will not approve a smoke alarm unless it does all of the following: (1) displays the date of manufacture on the device; (2) provides a place on the device to insert the date of installation; and (3) incorporate a hush feature. A previous requirement for the smoke alarm to incorporate an end-of-life feature that provides notice that the device needs to be replaced has been eliminated. The requirements taking effect on January 1, 2015 was originally slated to take effect on January 1, 2014. The State Fire Marshal has the authority to create exceptions to these requirements. Senate Bill 745

List of Items Sellers Should Fix from a Home Inspection Checklist

Home Inspection Checklist Items Sellers Should Fix

If you have a choice, it might be smarter to hire your own contractors and supervise repairs. Before issuing a formal request to repair, consider the seller's incentive to hire the cheapest contractor and to replace appliances with the least expensive brands.

Although home inspectors are reluctant to and, in some cases, refuse to disclose repair costs, call a contractor to determine the scope and expense to fix minor problems yourself. No home is perfect. Every home will have issues noted or flagged in a home inspection. Even new homes.

A repair issue that will be be a deal breaker for a first-time home buyer, causing the buyer to cancel the contract, will not faze a home buyer versed in home repair. Talk to your agent, family, friends and call a few contractors to discuss which types of defects are minor. Perhaps a simple solution is available such as replacing a $1.99 receptacle, which can resolve many outlet problems.

Pat yourself on the back, too, for getting a home inspection. Some buyers feel a home inspection is unnecessary, especially if they are buying new construction. If a light switch doesn't work or the air conditioner blows out hot air, those are problems you can see and test. The problems that aren't readily identifiable to you such as code violations, a furnace that leaks carbon monoxide or a failing chimney, are the types of defects a home inspector could identify in a new home. Builders' contractors make mistakes, too.

10 Most Common Problems Found by a Home Inspection

The 10 Most Common Home Inspection Problems
TIP: Buyers can get extra protection and piece of mind by purchasing a home warranty insurance policy. Such policies may also be a way for sellers to protect themselves from post-sale claims by buyers for defects undetected in home inspections.

1. Faulty wiring—open junction boxes, amperage mismatches, no wire nuts on wires.

The cure: Fix junction boxes; upgrade to at least 100 amps.

2. Poor grading and drainage—spongy soil around the foundation, signs of leaking in basement.

The cure: Regrade so that grounds slopes away from house for 10 feet; remove porous material around foundation.

3. Faulty gutters—clogged or bent gutters, water not channeled away from house.

The cure: Preventive maintenance; gutters of adequate size, splash pans to divert run-off.

Each year the American Society of Home Inspectors conducts surveys related to inspections and U.S. homebuyers. Here are some of their latest findings:

In a 2012 survey, 88 percent of respondents say home inspections increase their confidence about the condition of the property.

In a 2011 study, the ASHI found that nearly 90 percent of all U.S. homebuyers believe some home inspections are a necessity, nto a luxury.

According to a 2011 survey, 72 percent of U.S. homeowners agree the home inspections they had when they purchased their current residence helped them avoid potential problems.

In 2010, the ASHI reported that 64 percent of homeowners said they saved a lot of money as a result of their home inspection.

4. Basement dampness—water stains, powdery residue on walls, mold or mildew.

The cure: Repair gutters to channel water away from house; apply waterproof coatings to basement.

5. Roof problems—brittle or curled shingles; broken or missing flashings.

The cure: Apply new shingle, or tear off if needed (usually after three re-roofs ); replacing flashings, especially around chimneys and other protrusions.

6. Foundation flaws—cracks in foundation, sloping floors, sticking doors or windows.

The cure: Fill cracks with silicon caulking or epoxy; apply waterproof coating to exterior.

7. Poor upkeep—needs repainting, worn carpeting, cracked driveway.

The cure: Give the house a minor facelift.

8. Faulty plumbing—inadequate water pressure, slow drains, signs of leaks on ceilings.

The cure: Clean and rout drains; reseat toilet with new wax ring, repair leaks.

9. Poor ventilation—extreme heat in attic, vapor condensation.

The cure: Ensure that roof soffits are not blocked; install additional roof vents; vent bathroom and kitchen fans outside.

10. Defective heating—cracks in the heat exchanger or water tank; carbon monoxide leaks.

The cure: Reseal chimney flues; replace sacrificial anode in water heater.

10 Eco-Friendly Home Improvements to Help You Go Green

10 Eco-Friendly Home Improvements

Renovating your home? Just want to make a few quick energy-saving updates? Here are 10 eco-friendly improvements that are good for the planet:

Switch On Energy Efficient Lighting – Upgrade your lighting to energy efficient LED or compact fluorescent lights.

Get the Drop on Drips – Fix or replace leaky faucets. Just one drop per second from a leaky faucet can waste as much as 10 gallons of water each week.

Go Low-Flow – Upgrade to low-flow toilets and showers to reduce water consumption.

Become a Fan of Fans – In cooler weather, use clockwise rotation to push down warm air that rises to the ceiling, and when the weather is hot, reverse to a counter-clockwise rotation to create a cooling breeze.

Re-use, Re-cycle and Re-purpose – Use reclaimed building materials instead of buying new and look for ways to re-purpose old materials.

Save With Solar – Install solar panels to offset energy costs. Common uses include heating swimming pools and pre-warming the household hot water supply.

Xeriscape Your Landscape – Conserve water by planting drought-proof plants and/or installing a rainwater system to get you through the dry months.

Conserve Energy – Upgrade insulation and seal any gaps around windows and doors. Don’t forget to turn the thermostat down or up a few degrees during the day and at night.

Go Green to Clean – Reduce indoor air pollution by using all-natural cleaning products.

Choose Natural and Renewable – Use natural fibers like wool or cotton for carpeting, window treatments and textiles, and sustainable woods like bamboo for flooring.

10 Home Buying Mistakes You Can't Afford

1.Don't choose the wrong mortgage: Home loans may no longer be the lifetime obligations they used to be but still -- you don't want to be saddled for even a short period of time with the wrong one. Investigate all of your options, then lay your choices side-by-side and do the math, making sure to compare worst-case scenarios. Be sure to look at initial interest rates, future interest rates and payments (if different), and the possibility, though now rare, of prepayment penalties.

2. Don't confuse "pre-approved" and "pre-qualified" with a loan commitment: When you are "pre-qualified," the lender is making an educated guess about how much you can borrow based on information you've provided. When you are "pre-approved," the lender has verified everything you've provided and is offering to lend you up to a given amount at current interest rates -- under certain conditions. It's much better to be pre-approved when shopping for a home because both you, your real estate agent and the seller know what you can afford. Whether pre-qualified or pre-approved, final clearance and a check at closing -- a loan commitment -- are subject to an appraisal satisfactory to the lender, good title, a last-minute credit check, and other verifications. When meeting with lenders, always ask what additional steps will be required to obtain a loan.

3. Don't have too much credit: Excessive credit is almost as bad as no credit or even bad credit. Even if you pay your bills on time, lenders tend to focus just as much on how much credit you have available to you as they do on timeliness. So being up to your ears in car loans and credit cards is a sure way to be turned down for a mortgage. Postpone any big-ticket purchases until after you buy your house.

4. Don't lie on your loan application: Exaggerating your income on a mortgage application or putting down other untruths can be a federal offense. Lenders rarely prosecute liars but if they find out later, they can call your loan due and payable. Don't ever sign your name to a loan application that is not completely filled out, either. Loan officers have been known to stretch the truth to get a client approved, but it's the borrowers who end up paying the price, often in the form of monthly loan payments they can't afford.

5. Don't hide if you can't make your payments: The worst thing you can do is ignore phone calls and letters from your lender when you are behind on your payments. Lenders have many options at their disposal to help keep borrowers from losing their homes to foreclosure. But they can't do anything for you unless they can talk to you about your difficulties. Lenders are the enemy only if you give them no other choice.

6. Don't skip a home inspection: Failing to make your purchase contingent on a satisfactory home inspection could be a costly mistake. Independent home inspectors examine houses from stem to stern. They'll be able to tell you whether the roof or basement leaks, whether the mechanical systems are in good shape and how long the appliances should last. They can't report on things they can't see, but at least their trained eyes are better than yours. So don't pass just to save $300-$400; that's money well spent.

7. Don't hire just any agent to sell your house: All real estate agents are not the same. You want to look for those who specialize in your neighborhood and are top producers. Ask your candidates how they plan to market your house, what you can do to make the place more attractive to prospects and how much you should ask. If you don't like any of the answers, look elsewhere.

8. Don't fail to check out a remodeler: Never, ever hire a contractor who knocks on your door or says his prices are good for only a few days. Reputable remodelers don't solicit door-to-door, and they don't cut prices just because they happen to be in your neighborhood. Check out a potential contractor thoroughly by calling several of his past clients, your local better business bureau, his bankers and suppliers, and your local consumer affairs agency.

9. Don't pay too much upfront: If a contractor asks for more than a third of the contract price as a downpayment, chances are something's wrong. At worst, he's a scam artist who has no intention of returning after he cashes your check. At best, he's undercapitalized and can't afford to purchase materials on his own. Or, in between, he could be using your money to pay workers on another job. Never give a contractor cash, either.

10. Don't burn your mortgage: It's a wonderful feeling when you make your last house payment. After all, the place is now yours, all yours. Many people celebrate by holding a mortgage burning party. But they torch the original document. Don't. Make a copy and burn that instead. Keep all your loan docs in a safe place.

10 Spring Maintenance Tips for Home Owners

After a long, dark winter, spring's bright sun and warm winds are, well, a breath of fresh air. The only downside? All that sunshine spotlights your leaf-filled gutters, cracked sidewalks and the dead plants in last year's flower beds. Dwight Barnett, a certified master inspector with the American Society of Home Inspectors, shared this checklist to help you target the areas that need maintenance so you can get your chores done quickly, leaving you time to go outside and play in the sunshine.

1. Check for loose or leaky gutters. Improper drainage can lead to water in the basement or crawl space. Make sure downspouts drain away from the foundation and are clear and free of debris.

2. Low areas in the yard or next to the foundation should be filled with compacted soil. Spring rains can cause yard flooding, which can lead to foundation flooding and damage. Also, when water pools in these low areas in summer, it creates a breeding ground for insects.

3. Use a screwdriver to probe the wood trim around windows, doors, railings and decks. Make repairs now before the spring rains do more damage to the exposed wood.

4. From the ground, examine roof shingles to see if any were lost or damaged during winter. If your home has an older roof covering, you may want to start a budget for replacement. The summer sun can really damage roof shingles. Shingles that are cracked, buckled or loose or are missing granules need to be replaced. Flashing around plumbing vents, skylights and chimneys need to be checked and repaired by a qualified roofer.

5. Examine the exterior of the chimney for signs of damage. Have the flue cleaned and inspected by a certified chimney sweep.

6. Inspect concrete slabs for signs of cracks or movement. All exterior slabs except pool decks should drain away from the home's foundation. Fill cracks with a concrete crack filler or silicone caulk. When weather permits, power-wash and then seal the concrete.

7. Remove firewood stored near the home. Firewood should be stored at least 18 inches off the ground at least 2 feet from the structure.

8. Check outside hose faucets for freeze damage. Turn the water on and place your thumb or finger over the opening. If you can stop the flow of water, it is likely the pipe inside the home is damaged and will need to be replaced. While you're at it, check the garden hose for dry rot.

9. Have a qualified heating and cooling contractor clean and service the outside unit of the air conditioning system. Clean coils operate more efficiently, and an annual service call will keep the system working at peak performance levels. Change interior filters on a regular basis.

10. Check your gas- and battery-powered lawn equipment to make sure it is ready for summer use. Clean equipment and sharp cutting blades will make yard work easier.

4 things to think about when deciding to buy or sell

Every real estate market creates its own buyer and seller personas, or profiles. When the market is slow and prices are low, it brings out 'the wheeler-dealer' and 'the lowballer,' as well as the 'paralyzed panicker' in some buyers.

But sellers aren’t immune. 

And in a warm or hot market climate, the rise in home prices makes some sellers wonder whether they should exercise the freedom of finally having some home equity and make a move, or if it's a better idea to stay put in hopes they can sell for more, next year or later.

Truth is, whether any given person should sell their home or stay put at any given time is a highly personal decision. Market dynamics should come into play, but that should be considered in the context of your personal life, career, family and financial plans.

Trying to figure out whether to sell or stay put? Here are four ways to know which decision is right for you.

1.  Sign You Should Sell: You frequently crave a neighborhood upgrade. I have known people who have liveed in “up and coming neighborhoods” for 20 years, and are still waiting for it to up-and-come. Others own homes on streets or in subdivisions they used to love that have changed dramatically because the city has been built up in a different direction, the area was rezoned, or because a school, freeway, commercial development, airport or train station was brought in. And still other home owners fall out of love with their neighborhoods because their job has moved, making their commute a pain.

In any event, if your home’s location is seriously misaligned with your life or your tastes, that fact is one you face all day, every day, for the duration of the time you live in the property. It can become a serious source of life dissatisfaction and resentment that rears its ugly head every time you make your monthly mortgage payment. As I see it, dissatisfaction with your neighborhood or a serious neighborhood-life disconnect can be a strong reason to sell and move, assuming you can make a move to a neighborhood that would better serve your life in a financially responsible way.

2.  Sign You Should Stay:  You can totally afford a new house - if you sell a kidney. A few years back, a friend of mine wrote a book called Life Would be Perfect if I Lived in That House (Vintage 2011). In it, she told how her mother was so addicted to the grass-is-greener promise of moving to a new home that she would actually take her family Open House hunting, even when they were visiting towns they had no interest in moving to! She went on to relate her inherited real estate addiction to the national trend of “moving on up,” so to speak, with financial recklessness - the trend that many believe led to the Great Recession.

There’s nothing wrong with being a real estate aficionado, but it’s important to watch to make sure grass-is-greener-at-that-house syndrome isn’t motivating you to make a financially unwise decision to sell and move. 

If you are considering selling your home and moving up, do your own financial home work. Run your own budgets, income and expense reports and other financials to understand what level of increased financial obligation, if any, your household finances can afford to take. Consider whether you might want to set up some savings, investing or debt elimination targets before making a move. Work with your financial planner, tax professional and your real estate and mortgage pros to fully understand all the financial implications, short- and long-term, of selling and moving before you put the sign up in the yard.

3.  Sign You Should Sell: Space-wise, your family is too close for comfort. (And things will get worse before they get better.) I marvel at how much stuff the smallest infant seems to need.  I once went to a baby shower that generated so many strollers, packable playpens and sheer gear that it took 2 SUVs and a station wagon to cart it all home - for a kid that ultimately weighed in at 6 pounds and some-odd ounces.

If you have very young children and you’re already tripping over each other, chances are good that their space needs will grow as they do, even after all the baby gear is gone. School-aged kids and teenagers develop their own hobbies and need space for studies and sports - and on top of that, many parents of young children can realistically anticipate moving their own parents in at some point in time.

If you’re struggling to find a space for everything (and everyone), project your space needs out five years into the future. If you think you’ll need less space in five years (e.g., because your kids will likely move out in that time frame), it might not make sense to buy a bigger home now. But if it looks like you’ll need more space before you need less, that can be a sound rationale for making a financially rational move.

4.  Sign You Should Stay:  You could fix what ails your home with relatively modest remodeling projects.  If your home is bothersome primarily because things don’t function very well or its aesthetics are out of whack with your style, you might be tempted to sell and move.  Here’s a tip-off: your “dream home” is the Open House one block over that is nearly identical to your home in location, size, architecture, bedrooms and baths, but is impeccably decorated and updated. If you find yourself in this situation, you might very well be able to resolve your issues by investing less than you would spend on the transactional costs of selling and buying another home into some small-to-medium-scale remodeling projects on your current home.

On a budget, painting, landscaping, replacing exterior trims and interior hardware and updating your kitchen appliances will likely give you the biggest boost in home love for your buck. Similarly, you can get a major enjoyment boost out of your home for very little money by bringing a handyperson in to fix all those niggling little items that make a home seem worn out, including:

• drawers that stick
• handles you have to jiggle
• drafts that need stopping up, and
• scrapes and scuffs that make a place look rundown.

That said, when you consider what you would spend on commissions and closing costs to sell one home and buy a nearly-identical new one, you might be able to justify a larger updating/upgrading budget. If you have a little more dough to spend, consider a kitchen or bath remodel, having some custom organizers built in, or putting in the wood floors or deck you’ve always wished for. You might be surprised how fast home hate can turn to love when you start pampering your property.

8 Key Areas for Safe Deck Inspection

Constructing a safe deck requires research, proper hardware, regular maintenance and oftentimes, help from a professional builder or inspector. Many Americans, however, still view adding a deck to their home as a simple, Do-it-Yourself project for Memorial Day weekend. Over the last 10 years, there have been more than 800 reported injuries and 20 deaths as a result of deck collapse. 


The ledger connection, where the deck attaches to the house, is the most common type of deck failure.

Of the 40 million decks in the United States, it’s estimated only half meet building code requirements. To promote deck safety, ASHI is teaming up with the North American Deck and Railing Association (NADRA) and Simpson Strong-Tie to encourage homeowners to make sure their decks are inspected before outdoor barbecues and parties begin. And May — NADRA’s Deck Safety Month® — is a perfect time for a deck inspection. 

There are many components to consider when inspecting a client’s deck. Checking for wood rot and large cracks is key, but you also must evaluate the structure as a whole. 

To ensure the structural safety of a deck, it should be built with a continuous load path. A continuous load path is a method of construction that creates a series of solid connections within the structure of the deck that transfers the load through its frame to the ground and adjacent support structure, commonly the house.

A continuous load path requires more than a few nails and some deck boards. There are a total of eight key areas of a deck that must be secured with connectors and fasteners to ensure that the structure can support all of the weight that’s placed on it. When inspecting a deck, you’ll want to make sure the following areas of the deck are properly fastened.

CRITICAL DECK CONNECTIONS


1. Ledger-to-Wall Framing
Correct ledger attachment is critical when a deck is attached to another structure. One of the most common causes for deck failures is ledgers that are not properly secured and pull away from the primary structure, resulting in collapse. The two most common ways to correctly attach the ledger to a structure are lag screws or machine-bolts through the ledger and into the rim joist of the supporting structure. 

2. Joist-to-Ledger 
When joists terminate into a beam or ledger, a connection is required to provide bearing. In cantilever applications, the connection also must resist uplift.

3. Beam-to-Post
At the point where a beam meets a post, it must be properly connected to the post in order to resist gravity, lateral and uplift loads. This pertains to solid sawn beams or those comprised of multiple members, whether they rest on top or are fastened to the side of the post.

4. Joist-to-Beam
At the point where the joist bears on top of a beam, there must be a connection to resist lateral and uplift forces. Blocking or framing also is required to prevent overturning of the joists.

5. Railing Post-to-Deck
The railing connection is another important connection pertaining to safety that is often overlooked. In order to provide the required load resistance at the hand rail, the post not only must be fastened to the rim joist, but also tied back into the joist framing. Machine bolts through the post and rim joist alone do not typically meet the performance requirements of the code. Instead, a mechanical connector installed into the joist with bolts through the post is needed.

 6 & 7. Stair Tread-to-Stringer and Stair-Stringer-to-Deck
Stair stringers must be properly connected to the deck, and treads properly connected to the stringers, in order to resist loads. In addition, code requirements regarding openings between stair treads and stair railing must also be met.

8. Post-to-Concrete
In order for posts to properly resist various types of loads, they must rest on and be anchored to concrete footings. Patios and pre-cast concrete piers do not qualify as proper footings for deck construction.

Posts must be correctly attached to a concrete footing in order to resist lateral and uplift loads. Unless posts are naturally decay-resistant or made from preservative-treated wood, they must be elevated off the concrete by 1 inch to help prevent decay at the end of the post due to moisture.

CORROSION

Not only should connectors in the critical areas be present and accounted for, they must all be in good condition. The issue of corrosion with metal connectors and fasteners heightened when the industry moved away from CCA to other types of preservative-treated wood. It’s important when inspecting decks made from preservative-treated wood that the proper connectors and fasteners are used. In many cases, Simpson Strong-Tie ZMAX® (G185) and hot dip galvanized (HDG) connectors and fasteners provide adequate corrosion resistance. There are parts of the country that are considered at a higher risk for corrosion, such as areas along the coast, areas exposed to chemicals, industrial zones, etc. In these cases, the use of stainless steel connectors and fasteners is recommended. Stainless steel connectors and fasteners provide the highest level of corrosion resistance. For more information about corrosion and connector coating recommendations, visit www.strongtie.com/corrosion.

Adding the right connectors and fasteners to a deck is an investment of a few hundred dollars that often will prevent a complete rebuild and keep deck owners and their families safe. Always remind your clients to regularly inspect and maintain their decks. If they’re not comfortable doing this themselves, recommend they hire you or another qualified, professional home inspector. If built and maintained properly, a deck will result in years of enjoyable and safe outdoor living.

Simpson Strong-Tie has developed a comprehensive Deck Framing Connection Guide that can help you through the process of making sure a deck is safe, secure and code-compliant. You can download the guide or request a copy atwww.strongtie.com/safedeck.

Top 10 things you need to know when buying a home.

1. Don't buy if you can't stay put.

If you can't commit to remaining in one place for at least a few years, then owning is probably not for you, at least not yet. With the transaction costs of buying and selling a home, you may end up losing money if you sell any sooner - even in a rising market. When prices are falling, it's an even worse proposition.

2. Start by shoring up your credit.

Since you most likely will need to get a mortgage to buy a house, you must make sure your credit history is as clean as possible. A few months before you start house hunting, get copies of your credit report. Make sure the facts are correct, and fix any problems you discover.

3. Aim for a home you can really afford.

The rule of thumb is that you can buy housing that runs about two-and-one-half times your annual salary. But you'll do better to use one of many calculators available online to get a better handle on how your income, debts, and expenses affect what you can afford.

4. If you can't put down the usual 20 percent, you may still qualify for a loan.

There are a variety of public and private lenders who, if you qualify, offer low-interest mortgages that require a small down payment.

5. Buy in a district with good schools.

In most areas, this advice applies even if you don't have school-age children. Reason: When it comes time to sell, you'll learn that strong school districts are a top priority for many home buyers, thus helping to boost property values.

6. Get professional help.

Even though the Internet gives buyers unprecedented access to home listings, most new buyers (and many more experienced ones) are better off using a professional agent. Look for an exclusive buyer agent, if possible, who will have your interests at heart and can help you with strategies during the bidding process.

7. Choose carefully between points and rate.

When picking a mortgage, you usually have the option of paying additional points -- a portion of the interest that you pay at closing -- in exchange for a lower interest rate. If you stay in the house for a long time -- say three to five years or more -- it's usually a better deal to take the points. The lower interest rate will save you more in the long run.

8. Before house hunting, get pre-approved.

Getting pre-approved will you save yourself the grief of looking at houses you can't afford and put you in a better position to make a serious offer when you do find the right house. Not to be confused with pre-qualification, which is based on a cursory review of your finances, pre-approval from a lender is based on your actual income, debt and credit history.

9. Do your homework before bidding.

Your opening bid should be based on the sales trend of similar homes in the neighborhood. So before making it, consider sales of similar homes in the last three months. If homes have recently sold at 5 percent less than the asking price, you should make a bid that's about eight to 10 percent lower than what the seller is asking.

10. Hire a home inspector.

Sure, your lender will require a home appraisal anyway. But that's just the bank's way of determining whether the house is worth the price you've agreed to pay. Separately, you should hire your own home inspector, preferably an engineer with experience in doing home surveys in the area where you are buying. His or her job will be to point out potential problems that could require costly repairs down the road.

Why do I need a home inspection?

The purchase of a home is one of the biggest investments people will make in their lifetimes. But it is also among the greatest sources of anxiety. A home inspection helps ensure home buyers of the quality of their investment by making them aware of its condition and alerting them to any concerns. This can serve to relieve stress, increase confidence and even reduce the threat of legal action in the future.

Some of the benefits of a home inspection are:

Knowledge: Understanding exactly what you're buying - old or new

Peace of mind: Helps in making a sound buying decision

Savings: The home inspection reveals the need for repairs or replacements before you buy

Fewer surprises: The home inspection limits the number of problems you may discover after you move in

Education: A good home inspection also gives you invaluable details about your new home in addition to information about the condition of the property. You'll learn where the main shutoff valves to the utilities are located, how the house operates and more!

How do I find a good home inspector?

Not all inspection companies are alike, and selecting the wrong company could cost you thousands of dollars in repair and replacement costs. Consider the following when shopping for home inspection companies.

Experience: How much experience do the inspectors have and how long have they have been in the business? The best home inspectors have been in business for years and have seen thousands of homes.

Home Inspection Training: Have the inspectors gone through any extensive home inspection training? In many states inspectors can simply call themselves home inspectors without any training or licensing.

Association Membership: Is the inspector a member of a professional home inspection organization? 

Companies that are affiliated with professional organizations are serious about what they do, and know about all the new developments in their fields. Some well-known trade associations are: American Society of Home Inspectors (ASHI) and National Association of Home Inspectors (NAHI). Inspectors in your area can be located through these associations.

Liability Insurance: Does the inspector carry Professional Liability Insurance (Errors and Omissions Insurance)? If you ever need to collect on a legal judgment, an inspector without insurance my not be able to pay your claim.

What if I'm buying a newly constructed home?

An inspection on a new home is important for the buyer to level the playing field. As in any industry there are shortcuts and tricks of the trade in the construction business, and someone who is unfamiliar with them can easily miss them. A home inspector is better able to see nuances that may not be readily visible to an untrained eye. You also need an inspector to offset the builder's or contractor's interest. Much of the information about homes is either taken for granted by people, or remains unfound.

For newly constructed homes, an inspection of the house before the drywall is installed, otherwise known as a "preclosure inspection", provides a level of quality assurance for the buyer that many builders don't usually provide for their contractors. This inspection gives you a better chance of identifying and correcting potential problems when they are much easier and less expensive to fix, before they become physically or financially prohibitive. For example, this inspection may prevent the need for moving a wall so that kitchen cabinets don't protrude into a doorway opening, or moving electrical receptacles so they are placed where you need them.

If you would like more information, or would like to order a home inspection, please call 714-478-3324, or visit www.ochomeinspect.com

5 Things Home Buyers Should Know

A house is the biggest asset that the majority of Americans will ever own. But while most of us delude ourselves into thinking that we actually know something about real estate, the truth is that few of us have any idea what we're talking about.

It's for this reason that I solicited the advice of several highly respected real estate professionals to help our readers navigate the process of both buying and selling their homes. What follows, in turn, are five things that most home buyers should know, but don't.

1. When you buy a home, you're making two purchases
Of all the advice that I came across, this was probably the most insightful: "When you buy a home, you actually are making two purchases,You are buying the home, and you are buying the money to buy the home.

It's tempting for homeowners to think of a mortgage as an incidental expense. But the reality is that the loan itself may be the most significant piece of the transaction.

"For every 1% rise in interest rates, home prices must fall by 10% in order for you to maintain the same monthly mortgage payment," Ness says. "And at the end of the day, that's what matters, the monthly payment. So take advantage of low rates; they add much more buying power to your purchase than low prices."

2. Homes are like people -- they all have problems
This was a point multiple real estate professionals that I spoke with made. "All houses have issues," Hilary Bourassa of Portland's Oregon First Real Estate told me. "Some just have more than others."

The shock generally comes when prospective buyers get their inspection reports back. "Inspectors are professional pessimists, which is why we love them," Bourassa said. "But many issues only require simple and/or inexpensive fixes."

Along the same lines, Ness analogized the experience to "when someone knocks over the DJ table at a wedding and the music stops." All of a sudden, the bliss from going under contract goes away.

"Most inspection reports will be 40 to 50 pages long, and most inspectors will take close-up, HD photos of problems," Ness went on to note. "So while the actual listing shows gorgeous pictures of granite countertops, the inspection report will show awful pictures of a cracked driveway. By the end of the report you'll be thinking, 'This house is a total and complete lemon.'"

3. Your real estate agent is a partner, not a salesman
My industry sources were obviously biased on this point, but there's a lot of truth to what they said.

"Your Realtor should be focused on helping you find a great property, not selling you something," Bourassa advises. Before settling on one, she urges home buyers to "interview at least a few in order to find the fight match."

The flipside of the coin is that you, too, are a partner in the relationship. And that means knowing and respecting the boundaries.

"Sometimes clients forget (particularly first-time buyers) that Realtors have other clients and lives outside of work," Ness says. The key is to make sure that both parties have a clear understanding of communication expectations.

"What is their normal response time? How much lead time do they need to arrange showings? What medium of communication is best -- text, call, email, or something else?" These are the types of questions that Ness encourages homebuyers and real estate agents to settle at the outset.

4. HGTV does not resemble reality
My wife and I love to watch cooking shows. We've watched so many, in fact, that we've deceived ourselves into believing that we could actually compete on them. Of course, given the opportunity, we would most certainly -- and I do mean "most certainly" -- crash and burn in the most humiliating fashion.

And the same can be said about the proliferation of "realty" television shows on real estate -- think HouseHunters, Flip That House, Holmes on Homes, Property Virgins, and Property Brothers, among others.

"The reality is, hundreds of hours or footage is shot and edited down to a 16-minute show (when you take out the Lowe's commercials)," Ness pointed out. "Yes, they're real buyers, but you don't see the half of it. So don't think you're going to waltz into your market and find the perfect house right away, beat out all the other offers, and then walk into the sunset with your significant other. Finding a home can be tough, and take time."

Ness' advice? "Gear up for the homebuying process. It's worth it, but it ain't Hollywood!"

5. Always think about resale
This final piece is something that all people buying assets should always keep in mind: At some point you're going to resell it and will want to maximize what you eventually get.

"When you're buying your home, you're probably not thinking of the day that you will have to sell it," Bourassa said, "but you will be thanking yourself one day if you remember three little things ... location, location, location!"