AUGUST 9, 2017 • Volume 12 • Issue 32
RE WEEKLY RESIDENTIAL • ACREAGE • FARM • COMMERCIAL • AREA DEVELOPMENT 515-233-3299 • 317 5th Street, Ames • All REALTOR® ads within are REALTORS® licensed in the State of Iowa
Online at www.AmesTrib.com/realestateweekly
Page RE2 • REAL ESTATE WEEKLY • Wednesday, August 9, 2017
Realtors, do you want to reach a wider group of potential buyers? Advertise in the RE Weekly. In print and online.
Call Ali Eernisse 515-663-5956
REAL ESTATE WEEKLY • Wednesday, August 9, 2017 • Page RE3
Page RE4 • REAL ESTATE WEEKLY • Wednesday, August 9, 2017
TIPS OF THE WEEK Avoid contractor scams You hire a contractor to complete a job, not to scam you out of money. To ensure you get the former and protect yourself from the latter, follow these tips from the Chicago Tribune. • Don’t pay an advance deposit, which is a common trick of scammers. Don’t let them steal your money “for materials and tools.” • Ask to see the paperwork, including certifica�ions, [FEMA/PUBLIC DOMAIN] insurance and permits. Your contractor should be able to provide you with copies of each of these documents. • Get your questions answered before you sign the contract. After that, it’s too late.
GARDENING Helpful tips to make it easier Gardening is rewarding but hard work. These tips from HGTV can make your seasonal hobby easier while preserving your enjoyment. 1. Rub your fingernails across a bar of soap before hitting the garden and you’ll deny dirt its place to collect underneath. 2. Spray the line on your string or hedge trimmer with vegetable oil and you’ll stop it from jamming, while reducing breaks. 3. Measure out specific distances using a rake or hoe and a tape measure, then record those distances with a marker on your yard tool. This way you can use the tool to measure your next distance while planting in an easy step. — Brandpoint
HOME STORAGE Use Pinterest, Houzz to find stylish storage options If after a big declutter effort, you may still have essentials and other items you can’t or won’t part with. Search online for solutions to everyday storage problems, as sites like Pinterest and Houzz can be great resources. Pinterest reports that 93 percent of its users shop the platform for new ideas, and 87 percent have made purchases based on things they have seen on the site. — Family Features
REAL ESTATE WEEKLY • Wednesday, August 9, 2017 • Page RE5
Page RE6 • REAL ESTATE WEEKLY • Wednesday, August 9, 2017
DEAR MONTY
Should I pay cash for a house?
RICHARD MONTGOMERY
R
eader question: Are there any benefits to paying cash for a $200,000 home?
Monty’s answer: Leverage is the gold standard for most real estate investors. Many non-investors believe their home is not an investment and should be free and clear of
a mortgage. Others pay cash for all property. The reasons these different philosophies prevail depend on a person’s risk tolerance, their life culture or experience, the motives driving the purchase, and their finances. Pay cash for all real estate: The main benefits to paying cash are no mortgage payment, no financing costs or interest expense, increase in bargaining power at purchase, greater peace of mind and high-quality collateral. These points add up to simplicity. Finance only investment real estate: If one utilizes a single-family home as a rental property that generates income, $200,000 could make a 20 percent down payment on five homes, assuming you wrap the
closing costs into the loans. Conceptually, if the local rental market supported a monthly rental value of $1,000, one rental home with no mortgage would generate $12,000 annually, or a gross 6 percent return on $200,000, plus deductions allowed by the IRS, before income tax. That same home with a 20 percent down payment of $40,000 with a fixed rate $160,000 mortgage for 30 years at 5 percent interest would generate $1,700 annually on $40,000, or a gross 4.25 percent return on your investment, plus deductions allowed by the IRS. With the addition of mortgage interest and the rate of return calculation on $40,000, the net return would likely be greater if financed. You would
still have $160,000 in cash available to buy four more properties. Finance all real estate: Were a person with $200,000 cash to mortgage the home and occupy it on the terms stated above, they would have a monthly payment of $858.91 plus real estate taxes and property insurance, but the mortgage interest and real estate taxes are a tax deduction against ordinary income. They would still have $160,000 in the bank. These deductions help home ownership as renters have few expenses to deduct from their taxable income.
DEAR MONTY
Know the roles during a home inspection taken care of the house. We have had other friends with inspection issues. We were disappointed they walked over two small repairs. How can our next inspection be improved?
RICHARD MONTGOMERY
R
eader question: We just lost a buyer over two inconsequential discoveries by the home inspector. Our agent told us the buyer was edgy, and were afraid they would inherit more problems in the future because the discovery created the impression we hadn’t
Monty’s answer: Education and training are the keys. The buyer’s agent should explain the scope of the inspection, determine the buyer’s expectations, document them, and implement them at the inspection. They should review the seller’s condition report with the purchaser before the inspection. They should explain that minor repairs are not significant defects. They should always attend and ensure the buyer attends the inspection.
The seller’s agent should instruct the seller to provide access to the attic, the electrical panels, all mechanical equipment, the basement walls or crawl space and any other area typically viewed in an inspection, and have the keys available if space is locked. They should see that storage shelves and boxes are moved away from walls that would obstruct vision. They should remind the seller that were the situation reversed, they would want the inspection, that the buyer has not lived in the house and that the seller also benefits from the review. The inspector is there to discover significant defects and safety issues with a visual inspection and
identify and record them for their customer. They may recommend further inspections, or tests by specific equipment experts as the visual inspection has limitations. They should schedule enough time to answer appropriate questions, explain why they cannot respond to questions that are not pertinent, and keep in mind the other attendees also have a keen interest in the results. The buyer and seller should focus on observing the work, understand that the inspector's oral comments are not actionable repair items if not written in the forthcoming report.
REAL ESTATE WEEKLY • Wednesday, August 9, 2017 • Page RE7
Elegant touch
Plant lilies for beauty and fragrance By Betty Montgomery More Content Now
T
here was excitement in our garden this season. Our giant lily, (cardiocrinum giganteum) bloomed. This bulbous perennial is only for the patient gardener. It takes about seven years for one to bloom from seed, but when it blooms, you know it. The tall, trumpet-shaped white lily-like flowers are tall and quite fragrant, perfuming the garden. The Royal Horticultural Society named this as one of the top 200 plants of the last 200 years. They are hardy in USDA zone 7 to 9 and prefer deep, fertile, humus rich soil that is moist and well drained. They perform best if they are sited in a location that is sheltered from the wind, receiving morning sun and afternoon shade. Mine might be a little too shaded, but I love it where it is located near a bench where my husband and I sit and enjoy the wonderful vanilla fragrance. If you prefer to have flowers sooner or live in another zone, there are other wonderful lilies to add to your garden that will bloom the summer after planting. Lilies are lovely, bright and add an elegant touch that is unsurpassed by other flowers. If you plant several different species, you can have blooms coming along most of the summer. Asiatic lilies come along in the early summer and turn their heads upward to show off their lovely faces. They are quite popular, not
very expensive and easy to find. Tiger lilies are another lily that blooms in the early summer. They have freckled pendulous blooms with curved petals and prominent stamem. About a dozen flowers will appear on each stem and the colors range from golden yellow to orange and even red and a cream color. Never discard an Easter lily (lilium longiflorum) after the flowers fade. Take care of the plant and when the weather warms, plant it outside at the same level as it was in the container, leaving the foliage to die naturally. Plant it in an area with good drainage and sun, give it some organic fertilizer or bone meal and it will bloom for you the following year. You can buy lilium longiflorum bulbs from mail order bulb companies too. They have the same wonderful fragrance and will produce 8 foot tall stems with dozens of blooms adorning the stems. The trumpet lilies, oriental lilies and some of the species lilies end the season with a bang. Oriental lilies are the most popular with many different varieties that have exquisite blooms. In addition, they are intensely fragrant and come in a wide range of colors. Lilies demand well-drained soil. This can be accomplished by digging a deeper hole and adding organic matter to improve the soil and drainage or by planting on a slope. Fertilize after the new growth starts to appear with some organic fertilizer and water it in. I find it best to plant lilies in the fall of the year after the bulbs have been harvested.
Yellow tiger lily
Giant Himalayan lily
[BETTY MONTGOMERY PHOTOS]
Easter lily
Lily-growing basics Lilies bloom in early summer to fall, depending on the type. Select a site with full sun to light shade and well-drained soil. Most lilies prefer slightly acidic soil. Planting: Plant lily bulbs in spring ng or fall, spacing plants 8 to 18 inches apart, depending on variety. iety. Loosen soil to a depth of 12 to 15 inches, then mix in a 2- to 4-inch ch layer of compost. Dig a hole about 6 inches ches deep and set the bulb in the hole, pointy end d up. Fill the h h hole l with soil and pat gently until firm before watering thoroughly. If hungry voles or mice are a problem, plant lily bulbs in buried wire cages to protect them from getting eaten. Fertilizing: Apply a thin layer of compost every spring, then a 2-inch layer of mulch for weed control and moisture retention. Water plants during the summer if rainfall is less than 1 inch per week. Once the stem and leaves turn brown at the end of the season, cut back at ground level. — Garden.org
Page RE8 • REAL ESTATE WEEKLY • Wednesday, August 9, 2017
TAKE CONTROL OVER YOUR NEXT
CAR SEARCH SO MANY OPTIONS...SO MUCH NOISE...SO LITTLE TIME Let BestRide.com narrow the choices and cut through the clutter to find your next ride.
LET’S DRIVE
WWW.BESTRIDE.COM
The smartest, easiest way to find a car online.