Archive for category Miscellaneous
Water Is Your Home’s Worst Enemy
Posted by Deane in Miscellaneous on January 13, 2010
Water is the most powerful force on earth. Water is the key to life. Water can carve out the Grand Canyon or destroy a city like New Orleans. And if you own a home, water can be your home’s worst enemy. Especially if you are trying to sell your own house. Nothing will scare off a potential buyer faster than seeing water problems or mold.
The main thing you need to know about water in regards to maintaining your house, is that it always finds the path of least resistance to run downward, due to the force of gravity. Even a pin hole in a roof or pipe will cause water to run down that spot and start causing damage. The smallest opening left unattended can cause a lot of damage.
The next obvious concept is that water issues never fix themselves. The instant you seed a drop of water anywhere it doesn’t belong is the moment you start looking for the cause and fixing it or hiring someone to take care of it for you. Ignoring a water problem is like ignoring a tooth cavity. It never goes away and only gets worse with time. And it will cost a lot more money and cause a lot more pain the longer you wait.
As a real estate investor, I’ve seen perfectly decent houses ruined by the owner not taking care of water problems. A few houses I purchased and rehabbed were destroyed by water. In one house, the bathtub had crashed down from the top floor and was sitting in the kitchen when I bought it, because the owner didn’t fix a plumbing issue in the bathroom. I purchased a house where a gutter had half fallen down and now acted like a trough that led right into a poorly sealed bedroom window. This eventually brought down the bedroom floor, the dining room ceiling, ruined the hardwood floor in the dining room and left the basement with standing water which ruined the finished portion of the basement. All this damage was caused just because the owner didn’t have a gutter reattached!
Besides taking care of any visible problems immediately, here are some tips to keep your home safe from water damage.
Make sure all your gutters are clean from leaves and debris and all your drain spouts are flowing properly. If you live surrounded by trees, clean your gutters twice a year, spring and fall.
Put a wire mesh filter over the drain from your washing machine. These look like a metal sock and are inexpensive. You can find them at discount or hardware stores. You won’t believe the lint, pet hair, and bits that are collected. This keeps all this stuff from clogging up your laundry room sink.
If you have a garbage disposal, use it only for the small stuff. I’m embarrassed to admit I once clogged mine cramming too many potato skins down it. Always run it thoroughly with cold water before you run your dishwasher. A plumber who specializes in snaking out drains told me to pour a box of baking soda down the kitchen sink every three months and run it thoroughly with cold water. If you put baking soda in your fridge to keep it fresh, pour the contents of the old box down the sink.
Get some natural enzymes that eat the junk in your pipes and use it as directed in all your drains – sinks, tubs, showers, and toilets. Don’t use caustic chemicals for this, that will only hurry the demise of your pipes.
It you take these preventative steps and are vigilant about looking for water issues and taking care of them early, you should be able to prevent any water disasters in your own home. This is always critical but even more so when you are selling your house.
On The Other Side of A Real-Life Home Selling Lesson
Posted by Deane in Miscellaneous on December 22, 2009
My adult son and his buddy since middle school have been roommates, sharing an apartment. Their lease was up this fall so they decided to take advantage of the tax credit and low prices. They made an offer on a house and it was accepted. How exciting for every one! Except me 
.
I didn’t want to be a wet blanket, but I knew the chances of them getting a loan were slim. I tried to explain this to the kids without being a total “budinsky”. Between them they make well into 6 figures, BUT at least 75% of that money gets paid to them on a 1099. If you don’t understand the significance of this, this is exactly why you need to get a lender on your side when you are trying to sell your own house! Lenders HATE to give loans to the self-employed.
Some lenders lie. They will say anything in the hopes that they can get your business. Their lender insisted from start to finish there would be no problem getting a loan. (I knew better.) The day after Thanksgiving, two days after they were supposed to settle, they get the bad news – no loan!
The sellers had already moved out. Yikes. My son and his friend HAD to be out of their apartment and quickly moved 
into his friend’s parent’s house. Double yikes.
Onto phase two. My son’s friend found another lender. (Not mine, again.) They are “pretty sure” they can get a loan next month. Meanwhile about 10 people’s lives have been totally disrupted. The sellers have one small child and another due any time. And it’s the week before Christmas.
Please put yourself in the seller’s shoes. They have two mortgages. They have a vacant house in the middle of winter they have to heat and worry about. We had 2 feet of snow yesterday they had to go shovel. Their life has been on hold for months. They can’t market the house to someone else because the contract is still binding. Even if they could, they have now entered the WORST time of year to sell a house.
Did I mention, that this wasn’t a for sale by owner house? Both parties, buyer and seller had realtors. I have to laugh when I see realtors saying how much FSBO sellers are risking by not using them and how much trouble they will save you. Right.
What lesson can YOU take to the bank here when you are selling your own house? Don’t believe a lender that you don’t have a relationship with and doesn’t have your best interests at heart. Be VERY leery about selling to a buyer that is relying on self-employment income.
I hope to come to you later and have a happy ending to this story!
Meanwhile, have a wonderful holiday. Stay warm and stay well.
“Sell Your Own Home” Frequently Asked Questions
Posted by Deane in Miscellaneous on October 29, 2009
As an experienced real estate investor who teaches homeowners how to sell their house “for sale by owner” or FSBO, I find many people tend to have the same questions.
Here are answers to some of the most frequently asked questions about selling your home yourself:
Q: How do I know if I’ve “got what it takes” to sell my own house?
A: If you can answer “yes” to these questions, you are an excellent candidate to sell your own home:
- Do you have basic computer skills? Can you surf the net, shop, and fill out basic forms online? If you do, then you will have no trouble doing your FSBO marketing, such as placing your flat fee MLS listing.
- Can you devote 4-5 hours on you initial FSBO marketing? (Remember, you will a lot of time not having to research and find an agent, and then meet with them to fill out their paperwork.)
- Are you open to seeking additional education? Most seller’s “don’t know what they don’t know” and this is where they can fall into trouble.
Q: It seems that I’ll need to do a lot of computer and internet stuff. I’m no “techie”. Can the average person can handle it?
A: Since you have gotten as far as reading this article online, I’d say absolutely! If I can do this, you can do this! I am not a tech person AT ALL. (Compared to the guys in my family, my computer skills are downright primitive!) The most difficult technical thing you’ll do for your FSBO marketing is download digital photos of your house. If you don’t know how, I’m sure you know someone that can show you. Do you know anyone under the age of 25? They’ll know how!
Q: Does selling your home yourself take a lot of extra time? Especially the marketing?
A: It depends! The marketing can if you have to put together a good marketing plan from scratch, then research and test to find the best internet-based tools and services. But once you have these things, I’d plan on an initial 4 hours to get all your marketing set up and 2 – 3 hours per week to talk to buyers and show your house.
Actually, having an agent takes a lot of time! Just trying to pick a good one, meeting and signing the listing agreement, and continually being in touch with your agent takes as much time as doing all your marketing yourself!
Q: Will my FSBO marketing cost me very much?
A: ABSOLUTELY NOT! If you went “all out” with your FSBO marketing, getting custom FSBO signs, a flat fee MLS listing, and place a FSBO listing on a the most popular “for sale by owner” site, you’d spend around $800. But I’ve sold houses spending under $100! There are at least a dozen excellent places to advertise for free online. The number one place for effective free advertising is Craigslist.
Q: I worry about having the right “for sale by owner” forms and documents. Isn’t there a lot of paperwork and documents I have to handle?
A: Again, not really! A standard “for sale by owner” contract is a relatively uncomplicated document. The standard realtor sales contract is much longer because much of it is to protect them, not you. You can get a sales contract, addendum, and any disclosures required in your state from a title company or purchase a FSBO documents package online.
Q: Will selling my own house make it more difficult to sell than if I used a realtor?
A: Definitely not, if you price it right, get it ready right, and market it right.
Q: I really want to sell my own house. But I’m scared. Where to begin? I’m afraid of the details I don’t know.
A: The fact that you realize you don’t know all there is to know is a wonderful thing! Really. I see too many homeowners jump into selling their house, think they know it all, and don’t have a clue what they are doing. You can get into some serious trouble that way.
You are right, “the devil is in the details”. That is particularly true in real estate. There are a lot of details you n
eed to know about. Some mistakes could cost you a lot of time and money, or even a lawsuit. So don’t just jump into selling your home yourself without first doing a little research.
Why not save yourself a lot of time, trouble, and worry when you sell your own home? Find out more. Sign up for “knock your socks off” FSBO tips at The Truth About FSBO today!
Keeping Your Cool When Selling Your Own House
Posted by Deane in Miscellaneous on October 28, 2009
I understand that keeping your cool when selling your house isn’t easy.
Here are some ideas to help you from getting stressed out when selling your house.
1. Don’t worry if you don’t do all the ideas in “The Truth About FSBO”. I’ve given you lots of information and lots of ideas. Actually, I have NEVER had to use all the FSBO marketing ideas to sell a house. I pick and choose from the list of ideas that have worked for me. So don’t kick yourself or make yourself crazy trying to do it all. Do what makes sense to you with the time and resources you have available.
2. Don’t worry if you don’t do everything “perfectly”. There is no such thing, anyway. Do your best, and rely on help when you need it – ask questions on The Truth About FSBO Community online or ask your title attorney or mortgage broker. Take advice from people that are involved in the selling process professionally.
3. That being said, don’t take advice from people that don’t know what they’re talking about. There are always naysayers. I’m sure you’ve already had people say you’re crazy! People who have never sold a house themselves will be happy to give you their advice.
On one level people think they are going to “protect” you from making a terrible mistake. On another level, I believe people get jealous when someone leaves behind the “normal” way of doing things and takes off to do something 
different. Something perhaps they wish they had the guts to do themselves!
The Top Ten Things Your Realtor Doesn’t Want You To Know
Posted by Deane in Miscellaneous on October 28, 2009
As an outspoken proponent of the “for sale by owner” movement, I write about this topic extensively, but I read an article written by a realtor I wanted to share with you. Among his top 10, he includes how little time realtors spend getti
ng their license (as little as 10 days) and how much the hourly rate can be for a listing agent – thousands of dollars an hour. But don’t take my word for it. Here is the link to read the rest of the ten things your realtor doesn’t want you to know. You may be surprised. And glad that you chose to sell your own house!
Some People Don’t Know You Can Sell Your Own House!
Posted by Deane in Miscellaneous on October 12, 2009
I read today on ForSaleByOwner.com ‘s blog, that many consumers are mislead to believe there is some special law or policy which states they have to use an agent during the buying and selling process! Information used to be totally controlled by agents which lead people to believe they had to work with them.
About 4 years ago, an independent study by Real Trends found out about only 50% of consumers were aware 
of the “for sale by owner” method of selling their home. I imagine during the past 4 years awareness has improved considerably and homeowners understand they have the right to sell their own home if they chose. How anyone could miss all the ‘for sale by owner” signs around town is beyond me.
You will need a title company to draw up the necessary paperwork to transfer ownership from you to your buyer. But you definitely are not legally required to use a realtor!
Hire Some Helping Hands When Selling Your House
Posted by Deane in Miscellaneous on October 7, 2009
We are all busy all the time, but few times are we busier than when we are selling a house and moving!
Why not consider hiring some help? At Care.com, you can find help and “care” of all kinds! You can find housekeepers, movers, errand runners, pet sitters, babysitters, and senior care by zip code. There will be a photo, a short bio, reviews and fees on each service provider. When you find someone you like, Care.com will provide you with a free background check and references! (Now if only online dating services did the same…)
So why not make life easier on yourself during this busy time! Get your house cleaned. Find someone to watch your pets or kids on moving day. Hire someone to help you clear out stuff or pack.
If you are moving out of the area, you can prearrange to get help on the other end for when you get to your new home, too!
I hope this helps you because “I care” 
. I want to make selling your own house as easy as possible for you!
Feeling Overwhelmed About Selling Your House? Your Feelings Are Predictable!
Posted by Deane in Miscellaneous on October 7, 2009
Now that you’ve decided to sell your own house, you may be thinking, “What have I gotten myself into?”
That is completely normal and to be expected. Did you know that there is a predictable learning curve that everyone experiences whenever they learn something new? The pattern goes like this:
It starts with “uninformed optimism”. You’re excited about your new venture and can see its potential to improve some area your life and help you get what you want – whether it will make you money, get you in shape, or help you sell your house.
The next phase is “informed pessimism”. This is where the reality of what is involved with your new venture sets in. It’s realizing that the new diet, opening that little shop, or selling your house involves more work than you thought.
The next phase is “crisis of meaning”. This is where you consider throwing in the towel on your new venture, “I can’t do this. This is too hard. I can’t figure this all out. I didn’t know it was going to take so much work.”
At this critical point, many people give up. It’s where they have an overwhelming desire to run back to the familiar, even if the familiar sucks! (I’m going through that right now with a new diet I just started…)
The shame of it is that at this point, the very point where most people give up, they are SO close to being at “informed optimism”. This is where you know the score, you are realistic about what it takes to meet your goal and you are still totally motivated. Getting to this point is what separates winners from losers every day in all areas of life.
So remember if you are feeling overwhelmed about selling your house right now it’s just because you’ve moved from “uniformed optimism” to “informed pessimism”, the normal learning curve.
This Isn’t Actually About FSBO, but You’ve Got to Laugh …
Posted by Deane in Miscellaneous, Uncategorized on August 10, 2009
I read an inadvertently amusing internet article about the ancient Oriental art of feng shui. (I mention feng shui in “The Truth About FSBO” system as a way to promote good luck when selling your house.) I had to share this with you so you could have a good laugh, too. Here a couple of sentences from this article I found particularly amusing:
“Have you ever been mesmerized by the soothing sound or the superb sight of a water fountain? Fine, many others are. Europeans just leave nuts over this point.” Oh, no! Don’t leave your nuts, all you crazy Europeans!
“People that want money try this well-liked technique. They cut a red ribbon in 9 pieces and they attach 3 coins together. They are then emotionally involved to a doorknob.” Don’t even ask!
Anyway, now that I’ve stopped laughing, the point is that it’s a shame but there is a lot of junk on the internet and you can waste a lot of timing cracking a lot of oysters to find a pearl. My commitment to you is to help you navigate through the junk on the internet about selling “for sale by owner” and give you just the pearls.
Prequalified or Preapproved? Why FSBO Sellers Must Know the Difference
Posted by Deane in Miscellaneous on August 2, 2009
Of course you want a potential buyer to be able to get a loan. If they want your house and can’t get one, they have just wasted a lot of your time and perhaps got you all pumped up for nothing. That’s no fun. You probably have heard the terms “preapproval” and “prequalification” but aren’t clear on what they means, the difference, and the significance of that is for you when selling for sale by owner.
Here are the basic definitions:
Prequalification – A condition where a lender has generally assessed a buyer as a good candidate for a loan, based on unverified information from the buyer. It is not a guarantee that the buyer will get a loan.
Preapproval – A condition where a lender has not only assessed the buyer’s loan application information via the prequalification process, but has also taken that loan through several other steps to insure a loan commitment to the buyer.
As you can see, prequalified means very little as it’s only based on what the buyer has told the lender about his finances without verification. Some buyers slant information to make themselves look good on purpose, and some are not aware of exactly what information will be taken into account by the lender.
I always tell my readers that if you are selling your own house, you don’t want to deal with prequalified buyers. If someone really loves your house, tell then to come back and make an offer after they’ve been preapproved.
Handy tip! If you have trouble remembering which is better, think of the phrase “Q&A” as in “questions and answers”. Q comes first and A follows. And that is just what happens with getting a loan. First you get preQualifed and then preApproved! Hey, it works for me!
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