Drains, Stains, and Plumbing Pipes

26yr old Galvanized Pipe

Newer homes and older homes have one thing in common, the plumbing.  Most people when purchasing either a new or old home always ask, or in some way think about the plumbing.  When purchasing your new home be aware of how the toilets drain, presence or absence of ceiling or floor stains, and the age and overall condition of the pipes.

The typical types of plumbing pipes:
Waste lines

•    Cast Iron—Prone to rust
•    PVC (poly vinyl chloride)—Prone to rupture short lifespan as compared to other materials
•   Chromed Brass (used for exposed drains and traps), beautification

Water Supply

• Chromed Copper–Beautification
• Galvanized Iron—prone to rust lifespan of about 25-30yrs.
• Copper— Susceptible to pinholes and prone to bust lifespan of about 30yrs
• CPVC (chlorinated poly vinyl chloride)—Inexpensive rigid plastic
• PEX (cross-linked polyethylene)—withstands temps from below 32degrees to 200 degrees Fahrenheit and also resists corrosion.

Plumbing age and type is sometimes easily discerned by the age of the structure.  Typically homes built in the 1980’s had PVC plumbing installed, but PVC has the shortest lifespan, so more than likely an owner along the way has changed the plumbing to something more durable, such as galvanized or cooper piping.  But you should still ask, and your home inspector should also tell you, its part of their report.

When considering a home purchase look for stains and wet spots in the corner of the ceilings, and also look a little lower, about 1-2 inches from the floor boards.  Stains in the ceilings may mean the problem was corrected but any wet spot(s) means the problem is not only still present but is worsening.  If you notice wet spots near the floor then a pipe(s) have damage and need to be replaced, the bigger the water stain the worse the problem can become.

Flush the toilets, if the water is off, bring a gallon of water to aid in the flushing of the toilets.  A toilet flushing can tell you the flow of the pipes; some pipes are louder than others and look for leaks around the toilet.  You may be able to hear if pipes are missing, something not too uncommon in a foreclosure which has been sitting empty for a while.

If you are looking for your new home in the winter, and it snows were you are looking, make sure the toilets have been winterized.  Most homes will have signage on the toilet letting everyone know it has been winterized, which is basically adding antifreeze, yes the kind which goes into your car.

If the toilets have not been winterized in a cold or snow climate, do not flush the toilets or add a gallon to flush, this could cause the plumbing to rupture causing a house full of damage.

So remember that PVC, copper and galvanized plumbing are the most widely used at this time but there are other types of plumbing materials also in use.  Look for wet spots and water damage stains around the floor boards and in the corners of the ceilings.  Only pipes prone to rust will leave a red stain on a wall or ceiling if leaking or has leaked.  Also take note of peeling paint in the corners which can be indicative of moisture damage.

Remember, just because there is plumbing damage or faultiness, does not mean the problem cannot be corrected.  It is better to be aware of any possible damage before finalizing a purchase price.

Happy home hunting.

Buying Real Estate with Inflation Looming

Image via Wikipedia

When in times of inflation not only does the dollar lose value, but real estate values will almost always go down.  Now factoring in the housing crisis which has created a housing glut plus interest rates staying low to no movement upward, this is possibly one of the best times to invest in real estate.

Times only look bleak, if you chose to place your money in a mattress, instead of having the dollar work for you.  There are many deals and duds in the real estate market of today.  But how can one navigate and discern what would be a good, great or bad investment.

Location, Location, LOCATION.

This really means to know whether the real estate investment is in a great location for its specific type.

For example, you would not open a night club in a family oriented neighborhood; business would probably never take off the way you would want it to.  Another example, you would not open a grocery store in a warehouse district where houses were not close by.  Nor would you consider opening a nursery school within 5 miles of a state prison.  Not too many people would build a multi million dollar mansion in an area where the neighboring houses are valued at $100,000.

The aforementioned are just not sound investments.

Considering the location for the purpose of the real estate, should be the leading factor in evaluating and moving forward with a purchase.

Finding Your Dream Home

There are a few things to consider when thinking of purchasing a home, especially your dream home.  Most people have scattered thoughts about what they want the home to look like, but most of the time a specific neighborhood(s) do(es) conjure images of their happy dream home.  When trying to understand your own thoughts on what home you would like to buy here are a few questions that may give you more clarity:

 

• Have an Idea of how much home you can afford
• What type of  loan do you want, fixed or flexible interest
• Area you want to live in
• Type of home, how many bedrooms and bathrooms
• What’s the right price to offer on a home
• What is the purpose of the home
  • Investment property
  • Live in with the family
• Will this house have room for expansion as the family expands

 

As a general rule knowing how much home you can afford is the beginning of getting pre-qualified.  Rule of thumb 3 times your yearly gross income, but remember only you can really gauge where you spend your money.  If you have credit card debit and car notes to pay that will lower how much house you can afford.  Better rule of thumb, the monthly note should not exceed 35% of your gross income.

 

What type of loan would you prefer?  An adjustable rate mortgage (ARM) or fixed rate.  With today’s economic issues it may benefit you to take a fixed rate loan, especially since rates are at all time lows.

 

Just a note: interest only loans are no longer allowed for homeowners.  The current foreclosure issues were increased with the resetting of the interest only loan, which was an investor’s loan and not meant for families.

 

Where do you want to live?  Close to public transportation, downtown, uptown, beach, or the inner city.   In addition to where you want to live, what type of house do you wish to live in, how many bedrooms how many bathrooms.  Will you want an eat-in-kitchen, a den, a family room, or will you need a home office space.

 

Once you answer the above questions you will be more apt to tell a realtor or seller what you are looking for in a dream home making it more of a reality than a dream.

Name(required)

Email(required)

How Did You Find Us(required) Twitter Search Engine WordPress

How soon would You like to Purchase a Home(required)

Where are You interested in Purchasing a Home

Do I Need a Home Inspection When Purchasing a Home

Image via Wikipedia

Now that you have finally chosen a home, condo, or living space; you will need to hire a home inspector before investing your hard-earned cash into your new digs.  For some reason a few people have been under the misconception that you have the home inspected after you purchase, this is not true; know before you buy.

 

Now that you have made a critical decision in choosing a property, and you offer has been accepted, it’s time to think of who you will choose as a home inspector, an equal critical decision.  Choosing a home inspector should not be taken lightly.  This person’s advice may or may not always be good advice.  If the home inspector is suggested by the realtor, be a little leery.  The inspector may tell you the house passes inspection just to help the realtor sell the property.

 

There are many ways to find a licensed home inspector.  You can call the city, ASHI (American Society of Home Inspectors), NACHI (non-profit organization of certified and licensed home inspectors), and your local chamber of commerce, Better Business Bureau, or a reference from relatives and friends.

 

Once you have done your initial checking into the home inspector, schedule the inspection well in advance of the closing.  It will be less stress for you if the closing is 2 weeks or more away when the house is inspected.  It will take the inspector a few days to compile the information into a report.  Most times they can give you the okay or nay on the day of inspection.

The Foundation of Your New Home

This slideshow requires JavaScript.

If you are heading out to one of the many open houses, remember the most important part of any structure.  Some may think the roof is more important, but the roof can be replaced and/or repaired when faulty.  The most important part is the foundation on which the structure is built.

If the foundation is strong and without defect then more than likely you will not find too many defects in the building.

The photo is of a house in Kansas City, MO we were once considering purchasing, then either rent, or lease with the option to purchase, or conventional resale.  The Realtor knew the houses interior and defects and told us that it would be a quick rehab project taking a mere two to three weeks to complete.

A representative for Immaculate Enterprises was sent to Kansas City after our initial offer of $33, 000 was accepted(Offer during February 2008).  The Representative met with the Realtor and a Home Inspector (which is a totally different story of choose a realtor and home inspector wisely- a future post).

The neighborhood was lower middle to mid-middle income, a public high school within walking distance, and a park across the street.  The area was considered below the national and state average for crime, and shopping was also nearby.  As far as the recent home sale price, the area was higher than the national average and a redevelopment of neighboring areas was underway.

The house was estimated to resale for $100,000 with a fair market value of $126,000 after all the repairs for $25,000 was completed, so this would give 21% equity for a future home purchaser.  At that time the $25,000 in repairs was based on the Realtor’s estimate.  It is always best to follow up with your own eyes when estimating repairs.

From the initial photos of the house it looked great- Nice homely area, family oriented, and not in bad condition from outward appearances.

If you look closely at the photo you will see what looks to be a cord, but it is not a cord, it is a crack in the foundation.

The interior of the house had molded and mildewed carpet due to a rupture in the pipe which lead from the house to the street; and even more cracks inside of the house in the corners of the ceiling.

But what took the cake, inside of the second bedroom the floor had a massive opening in the center which ran the length of the room parting it into two sides.  The upside, the carpenter ants had been eradicated.

The house was built in 1950.  The concrete for the foundation for this track of homes was imported from China.  During this time the Chinese were learning how to make concrete, which basically means it was cheap and poorly made; it even could mean that all the homes in the track were possibly experiencing the same problem, a weak foundation.

In Kansas City most homes are not built on a slab foundation.  When we first called the Home Inspector he asked if the home had a basement, when we told him no, he replied with “Oh a slab” as if it were dirty and vile.  In California a slab foundation is the norm, even with the earthquakes.

Needless to say the house purchase did not occur since the repairs went grossly past the initial estimate, making the deal non profitable.  Always be careful when considering a home purchase, a cursory look at something as important as the foundation could lead to having your dream of home ownership literally falling down around you.

Tips When Purchasing Your Dream Home

Finding your dream home is an undaunting task; with multiple things to take care of, issues to considered, and many decisions to make, such as type and duration of your home loan and the points.  One of the first things to understand, your first home may not be your dream home.

So while performing your weekend house hunting remember, this one could be the first home but far from your dream home.

Many first time buyers make the mistake of thinking that they can only pick one home during their lifetime and that’s it.  This is not the case, many buyers move after 7 years.  Neighborhoods change, your housing needs will also change.  Whether going from a small house to medium to large or even going in reverse.  The first home purchase may not be your only home purchase.

The first home may be a small two bedroom one bathroom with an eat-in kitchen, but the yard may be big enough to expand the house and still have a nice size backyard.  Or maybe the home has the potential to be your dream home, but it needs some TLC.

Buying a fixer-upper can be a better deal than a ready to move-in home.  You may buy the fixer-upper at a low price for the area and only have to invest $20,000-$30,000 to make the necessary repairs and upgrades that you would like.

So always remember even in this current economy and housing market you still may have a starter home as a first home then continually move up from there until you find your Dream Home.

Oh There’s no Place like Home Sweet Home for the Holidays

With the holidays fast approaching one would wonder how can you keep up with the holidaying and move into a new home.

 

Even if you are hosting the holidays and trying to move into a new home, taking it one step at a time can help alleviate your stress.

 

Remember no one expects your new home to look perfect just yet.  So keep in the spirit of the holidays- family, friends, and fun.

 

From Thanksgiving through to the New Year, keeping a light attitude will help you enjoy the holidays in your new home as much as everyone else.  If you don’t have enough chairs for your all of your guests then rent or borrow them.  Or do a buffet and let people walk around and mingle.

 

For Thanksgiving you may try a potluck especially if cooking is not your forte.  During the December holidays you may do a sit down dinner and reminisce over old photos from the years past.  Maybe play a few games and have a sing a long of songs of the season.  Break out the old projector, I mean DVD player and watch your family made movies.

 

And for New Year’s you may just lose the chairs and create a makeshift dance floor to boogie the night away ringing in the New Year.

 

But before all the holidaying begins prepare and plan.  Don’t get blindsided, plan for extra people.  You never know your brother may invite his girlfriend’s distant cousin with her three rather healthy looking teenage boys who each hold the family record for packing it away at the holidays.

 

So if you are not that greatest of a cooks do a potluck.  If you are a good cook, prepare enough food for 1 ½ times the amount of people you are expecting.  This way you can have leftovers and or take away.  But if everyone raves over your cooking prepare for 3 times the number of people you are expecting, because your guests may gorge themselves and take away.

 

My Grandmother’s banana pudding is the family favorite and she makes a very large amount, I mean large, the pan is big enough to cook a  20 pound turkey.  We never have banana pudding leftover.

 

If you do gift giving during December here’s a suggestion and secret.  The suggestion for large families draw names you do Kris Kringle’s, draw names with anonymous gifts, or draw names for gifts for individuals, this could be done at Thanksgiving to finish at the end of the parade and/or football game.

 

If your household does gifts for all, then make sure to have a few unlabeled or labeled with ‘especially for you’ wrapped gifts on hand (shhh that’s a secret).  This way you will not feel bad if someone gives you an unexpected gift or if you forgot that person on your list of naughty and nice.  Also works great as an extra gift for people who went overboard on your gift.

 

To round out the holidays make sure every gathering has a designated driver, limit the amount of available alcohol, and have more punch than liquor, which also saves money, this way you have the party with all in attendance the following year.

 

No matter if you light the Advent wreath, Menorah, or Kwanzaa candles have a great and safe holiday season.

 

If you are still looking to buy a home contact us.

 

Equity a look at Rent Vs. Buy

Many people have been arguing the point of rent versus buy, which would you choose.  As a matter of personal choice, I would choose to buy rather than rent.  For others renting may be their best choice.  It depends on if you would rather own where you live or if you rather move quickly and often.

 

Renting gives flexibility in how long and where you live.  Renting an apartment in an area gives you time to see if you really like the area.  If you do not like the area then you can move to another place, different area and see if it is to your liking.  A renter does not have to fix major problems such as a water heater, plumbing issues, roof problems; pretty much all major repairs are exempt for renters.

 

An owner will have to make those repairs.

 

An owner may run into a situation where the repairs out weigh their income, forcing them to defer maintenance on the property.  But as long as the owner has equity then paying for repairs may not become a headache.

 

Equity in a property can be used to refinance, or as a line of credit, or collateral.  A home owner with equity may not have to worry about where the money will come from to pay for repairs to the property.  Some property owners will take out equity on their house to purchase a new vehicle.  In this case the use of equity will aid in a tax benefit for the purchase of a vehicle.

 

Many people would say that in renting you do not have to worry about the property aside from the damage or normal wear and tear you may cause.  With buying property you can use the equity to purchase something else or repair the property.

 

I would not advise living off of the equity, unless you have sold the property and are now benefiting from the proceeds.

 

If you are tired of renting then fill out the form on our website, you’ll be one step closer to home ownership.

Buying a House Does Not Have to Be Scary

When considering a home purchase many people contemplate the ‘what if’s’ so much they scare themselves right out of upgrading or buying a new home.  It does not have to be this way.  Making a plan to buy a home and then following through is the beginning of your new home purchase.

 

First, check your finances.  Make sure your current income will cover the mortgage payment.  Many people do not understand mortgage payments may or may not be higher than a rent payment.  When considering purchasing a home make sure the payment is not higher than 25-30% of your current gross income.  Being over extended in a new home is not fun.  Always have enough room in your net income for the unplanned things that life may throw your way.

 

As with any move, there are always expenses to handle, packing, storage, buying of new items, and hiring movers or renting a moving truck.  Budgeting before the big move will keep the little expenses from becoming a big headache later.

 

When looking at your finances keep in mind there are other expenses most people do not consider or know about.

 

When you move into your home the county assessor’s office will send you either a bill or a refund for the new assessment of your home.  You will have to pay the new property tax assessed.

 

Other expenses you may incur will be setting up your utilities.  If you have a history from a previous address then this may not be an issue.  But, if you have not paid a utility bill in a while or ever then you may want to set aside money for utility set up.  Most utilities will have you make a deposit to set up service.

 

The other new expense will come from up keep and maintenance.  The front and back yard will need to be maintained.  Grass will have to be watered and mowed regularly.  So if you do not have a lawn mower you will have to purchase one.  You may also consider hiring a gardening service to tend to your yard.

 

The expense the interior may cause is furnishings.  Most people move into a new home and find they do not have enough to furnish the entire house.  Others move in and find they need a storage facility.  So whether you are up sizing or down sizing furnishings will be an expense; need to purchase or store things, this should also be factored in when moving.

 

The move itself will also have the expense of either movers or a rental truck.  If you hire movers then most of the work has been done for you.  If you enlist the help of family and friends, that may prove to be fun and less costly.

 

Now that you have a better idea of some of the expenses when looking to purchase a home, now you know to save a little extra before you find your dream home.

Go to our website to join the buyers list

http://www.ImmaculateEnterprisesAffordableHousing.com/applyonline.php

To Buy a Home or Not to Buy a Home

 

Image via Wikipedia

 

In today’s buyer’s market, should you wait for the real estate recovery or buy now?

The short answer- Buy NOW!!

The last real estate boom caused home prices to become very high and in some areas ridiculously high.  This will occur again but at a slower pace.  So buying now is the best time to have a great deal later.

If you decide to wait the home prices will go down a little bit more, but once the economy has more improvement, real estate prices will also improve.

If you buy now, the prices are lower than what they were at the height of the real estate market.  You can actually buy a house now which once sold for twice as much not too long ago.  If you decide to go ahead and buy now, whether it be buying your first house or going bigger, the question still remains what if home prices go down further.

Home prices will probably only take a slight drop then will slowly begin to stabilize with the drop in foreclosures.  Once there is a significant drop in foreclosures, many of the affected markets will begin to robustly rebound.

With the slight drop in home prices it could also equal loss of equity.  The bargain you buy today may not be such a bargain in the near future.  But when the market rebounds you will gain the lost equity back and then some.

If you are confused about whether to buy or not to buy then maybe another option is better for you.  Lease optioning a  property gives a buyer time to check out the neighborhood and assess home values in the area, all while holding onto the property for a future purchase date at a set price.  A lease with an option to purchase is a win-win.

So, if the property values in the area increase, even past the agreed upon purchase price, then you have built-in equity.  If the property values decline past the agreed upon purchase price then you can decline the option to purchase.

Buying now, and not buying, both have advantages and disadvantages.  Not buying can mean homes prices increasing which means losing out on deals.  Buying now you run the risk of property values declining but having an upswing when the pace of foreclosure slows down.  A good alternative to waiting and not waiting is leasing a property with the option to purchase.

For more information on the many ways to buy a property please visit our website or call.  Not taking action is the only wrong decision to make.