Buying in an HOA

Jan 25 2012

Super Bowl Host Indianapolis Stepping Up Its Game In The Housing Arena

Jan 25 2012

Correctly Identify the Sites and Win a Kindle

The Chatter (ActiveRain), Jan 26 2012

Want bragging rights and a Kindle?  Yeah, me too!  Correctly identify 6 Websites based on Facebook recommendations and the prize could be yours. Leave a comment below with your best guess for A, B, C, D, E & F by midnight on Sunday, January 29th, Pacific Standard Time.  All correct answers will be entered into a drawing with one lucky winner getting a Kindle (not a Kindle Fire but still a very cool prize).

This is a tough one so I wish you much luck Rainers!

A                B

C               D  

E                F

How to Avoid the Handyman

Jon Solomon (Javic Homes), Jan 26 2012

People are usually surprised when I tell them that I’m one of the least handy homebuilders around.  It’s not that I can’t do the typical maintenance items around the house.  I just don’t want to.

Just to be clear, I’m not lazy.  My dad instilled in me a solid work ethic and I live by it, but I generally abhor home maintenance.  It always takes longer than I expect, and more importantly, it takes me away from my limited time with my family.

It seems the more people I talk to, the more I realize that I’m not an alien on some isolated planet.  Given a choice, most people would like to eliminate or at least minimize the time they spend doing home maintenance.

So how do you do it?

Certainly, outsourcing (e.g., lawn services) is a viable option, but why not simply minimize the amount of home maintenance that’s required in a home. As much as you might enjoy fixing a running toilet, older homes tend to have more maintenance requirements.  Sometimes, it’s the natural life cycle of major systems (e.g., appliances, AC), but other maintenance is simply due to the age.  Fading paint, leaking roofs or plumbing, and wood rot are all typical ways that homes age due to our Florida weather conditions.

There’s a simple solution – get a new or newer home.  Sure, we’d love to build you a new custom home in Tampa, but the simple fact is that a home that is less than 5 years old has significantly less maintenance than a 20 year old home.  The beauty of a Javic custom home is that the 1^st year is virtually maintenance free.  Our homes have a 1-year material and labor warranty.  Additionally, we provide a 10-year structural warranty, so the foundation, trusses and other structural elements are covered for an extended period.

So with apologies to all the Handymen, stay away from my new home, I just don’t need you.

Follow us on our Blog & Social Networks -

Javic Blog:  http://javichomes.wordpress.com/

Facebook:  http://www.facebook.com/javichomes

Twitter:  http://twitter.com/#!/javichomes

LinkedIn:  http://www.linkedin.com/pub/jon-solomon/4/547/660

YouTube:  http://www.youtube.com/user/jondsolomon?feature=mhum

Dropping the Ball

James Quarello - Connecticut Home Inspector (JRV Home Inspection Services, LLC), Jan 26 2012

There are times when we put forth our best effort and come up short of our goal. If it’s a personal goal, we have usually disappointed no one but ourselves. When working / playing on a team, it can be a let down for the entire group. Reminds me of the kicker from the game on Sunday. Who would want to be that guy?

It seems of late I have been inspecting quite a few modular homes. First of all I do not think they are inferior to stick built homes. In fact there are some qualities of the construction process I think are superior to site built houses.

And some I think are not.

One of these aspects is the house wiring. Since the house is built in sections or modules, the wiring has to be connected from section to section. This is accomplished by splices done using a type of locking plug. These connections are in addition to the splices made during the course of wiring up the house. Splices are weak points in any circuit and should be kept to a minimum. Knowing that these splices exist I tend to check the electrical outlets a bit more thoroughly. I do this by using my fancy tester. This tester has features I will never use, but has a few that give me very insightful information. One of these is voltage drop.

Voltage drop is what happens in a circuit when a load is applied, like when you turn on your TV or the microwave. The appliance draws current causing a drop in the voltage. The amount of voltage drop should be minimal, ideally no more than 5% according to electrical industry standards. The other parameter is the voltage associated with the drop. Ideally it should not be less than 108 volts under load.

When I tested the first outlet in the house, the drop was over 22% with a measured voltage of 93.8. I found many more outlets throughout the newer, modular structure with similar amounts of drop. A large amount of drop is indicative of high resistance in the circuit. High resistance is created at connection points.

The culprit more often than not is the connection at the outlet. Removing the cover plate I wasn’t at all surprised to see the outlets had been connected by “back stabbing”. This method is acceptable though not what would be called a best practice. Back stabbing is connecting the wires to the back of the receptacle inside a pressure type connection. The wire is inserted into a hole and is locked in place. The connection however is not as strong as one made using the screws at the sides of the outlet. Basically back stabbing is done because it is faster and easier.

APPRAISER GUIDANCE REGARDING DISTRESSED VALUATIONS

Right Trac Financial Group, Inc, Jan 26 2012

“Appraiser Guidance Regarding Distressed Valuations”

The appraiser world feels that they are being wrongly blamed for any decline in real estate values. We see 100 appraisals a month and can certainly speak from real life experiences. When there is an appraisal issue and we look closely at the values, the comparables that are used are very often the root of the problems.

I know that most appraisers to a really good job, they don’t go out of their way to come up with the lowest possible value. However, AI speaks to the issue about using comparables that are distressed sales, which should absolutely not be used.

Appraisal Institute Issues Guidance to Appraisers on Distressed Valuations

Answering complaints that appraisers are using uncomparable 'comparables' on which to base their valuations, the Appraisal Institute has published new guidance to help valuation professionals know when -- and how -- to use distressed sales in appraising real estate.

Such knowledge is particularly crucial in the current market where distressed sales are common, creating complex valuation challenges, says AI, the nation's largest professional organization of real estate appraisers.

Builders, and brokers maintain that appraisers often rely on distressed sales to bolster their valuations even though those properties are often rundown – and sometimes even vandalized.

According to AI's Guide Note 11, “Comparable Selection in a Declining Market,” while appraisers “cannot categorically discount foreclosures and short sales as potential comps,” they don't necessarily have to use them, either.

“Due to differences between their conditions of sale and the conditions outlined in the market value definition,” the guidance emphasizes, distressed sales “might not be usable.”

Mortgage bankers and loan brokers have been complaining about lowball appraisals scuttling deals for several years, pointing to valuations in the distressed market.

The AI Note calls on appraisers to use their experience and education in deciding whether to use distressed sales and make whatever adjustments are necessary. But it also reminds them that when there are no current sales in the market area to analyze as comps, they are free to expand their geographic search area and/or use less recent sales.

The guidance points out that foreclosures and short sales usually do not meet the conditions outlined in the basic definition of market value. While they may or may not involve a motivated seller, it says, they often are sold without a typical marketing effort and are sometimes stigmatized or in inferior condition.

If that's the case, the Note says, the comps “might” need to be adjusted if they are used by the appraiser in making his valuation

I remember the first time I ever …

Richard Weisser Coweta Fayette Real Estate, Jan 26 2012

I remember the first time I ever …

Saw a color TV. It was at my great-uncle’s house. I was told that he was very wealthy!

Used a touch-tone phone. We all marveled at the fact that we no longer had to “dial” the phone number.

Ate my first piece of shrimp. I was eighteen years old. Back in those days, we didn’t get around much, and shrimp was not as readily available as it is today.

Warmed food in a microwave oven. We take it for granted now, but it was quite a revolution back in the day!

Used my first computer. It was an IBM 360 and I used a keypunch to enter my program via a cardreader.

Bought my first house. It was 1979 and was much easier than I thought that it would be. I saved up my down-payment and after signing a few papers, I had a brand new home with an FHA 245 negative amortization but fully assumable loan.

Was I apprehensive about taking the plunge and buying a house? Actually, not at all. Owning a home was the American Dream and although I was relatively naïve about the process, I have never looked back.

In the ensuing six years I purchased four different homes. I actually enjoyed moving in those days. Then I settled down and stayed in a house until it was owned free and clear.

There is nothing frightening about buying a house. You have to live somewhere anyway, so why not have complete control of your residential destiny?

As far as I am concerned, nothing matches the self-satisfaction that results from owning your own home.

Is it still the American Dream?

That’s up for each individual to decide.

But to me, the notion of living in a house that belongs to someone else is a nightmare!