11-20-19 Real Estate Weekly

Page 1

NOVEMBER 20, 2019 • Volume 14 • Issue 47

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

Always Available Online SEPTEMBER 14, 2016 Volume 11 • Issue 37

RE WEEKLY

SEPTEMBER 7, 2016 Volume 11 • Issue 36

RE WEEKLY STORY

COUNTY

STORY

COUNTY

• AREA DEVELOPMENT • FARM • COMMERCIAL RESIDENTIAL • ACREAGE 317 5th Street, Ames State of Iowa 515-233-3299 • ® licensed in the

RESIDENTIAL • ACREAGE • FARM • COMMERCIAL 515-233-3299 • AREA DEVELOPMENT • 317

5th Street, Ames All REALTOR® ads within are REALTORS® licensed in the State of Iowa

® are REALTORS All REALTOR ads within

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Page RE2 • REAL ESTATE WEEKLY • Wednesday, November 20, 2019

TIPS OF THE WEEK TIP OFTHE WEEK

HOME BUYING

HOME RENOVATION

TAKE THESE STEPS TO MAKE RENOVATION EASIER

HOW TO EXPLAIN THE SLUGGISH MARKET

TIPS TO IDENTIFY A LOAD-BEARING WALL

Homeowners are staying in their homes longer than they used to, according to The Wall Street Journal. Many homes are staying off the market as a result, which helps explain the recent slower home sales. Homeowners nationwide are typically remaining in their homes for 13 years, five years longer than they did in 2010, according to a new analysis by realestate brokerage Redfin. When owners don’t trade up or downsize, market is plugged up for buyers coming behind them. More homeowners staying put has helped cause housing inventory to dwindle to its lowest level in decades, which has also helped push up prices on homes for sale. Fewer homes on the market is a reason why low mortgage rates, high levels of home equity and a strong job market haven’t jump-started the market.

In your home, there are two types of walls: load-bearing and non-bearing. While you can cut into and remove non-bearing walls, loadbearing walls are off limits. Even cutting into them can bring your house down. BobVila.com describes how to identify a load-bearing wall: Before cutting anything, check which direction the joists or rafters run in your basement or attic. If they run perpendicular to the wall, it’s almost certainly a bearing wall. Those that run parallel are probably not. —More Content Now

Modernizing your home can increase its value, salability and energy efficiency. Renovations, however, are often more complicated and expensive than originally anticipated. CNBC recently published steps homeowners should take to make renovating less painful. 1. Before selecting a contractor, perform your due diligence. First, shop the project to multiple contractors to get an idea of the price range. Check their backgrounds and make sure they’re licensed in your state. Be sure they carry insurance. 2. Review the contract. Contracts would spell out the estimated start and finish dates, payment schedule, and the project’s scope. Be sure it includes specifics on what the contractor’s responsibilities are, such as cleanup and trash removal. 3. Ensure they get permits. Failure to obtain the proper permits and undergo inspection could result in structural problems and damage your homeowner coverage won’t pay for. It can also affect the sale of your home. 4. Avoid liens. If your contractor hasn’t been paid, a lien can be put on your home, preventing you from selling it or refinancing

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REAL ESTATE WEEKLY • Wednesday, November 20, 2019 • Page RE3

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Page RE4 • REAL ESTATE WEEKLY • Wednesday, November 20, 2019

DEAR MONTY

Is your real estate transaction failing?

RICHARD MONTGOMERY

R

eader question: How many days before the scheduled closing does the buyer’s agent have to present us with the final “letter of commitment?” We want to firm up our plans. Monty’s answer: The first place to look for your answer is the contract. Each

state has its laws and forms, so there is not a straight answer. Additionally, the document you refer to is rarely, if ever, a total commitment. Most pre-approval, or commitment letters, contain language with a statement in the communication that states the approval is subject to the borrower’s circumstances not changing before the closing. Time is of the essence “Time is of the Essence” as to (1) earnest money payment(s); (2) binding acceptance; (3) occupancy; (4) date of closing; (5) contingency deadlines and all other dates and deadlines in this offer except: If “Time is of the Essence” applies to a date or deadline, failure to perform by the exact date or deadline is a breach of contract.

If “Time is of the Essence” does not apply to date or deadline, performance within a reasonable time of the date or deadline is allowed before a breach occurs. Typically, lenders, attorneys, real estate agents, appraisers, surveyors and other vendors are not always able to meet deadlines in real estate transactions. Failure to meet deadlines can occur for a variety of reasons. Surges in sales, shortage of appraisers, unrealistic customer expectations, illness, unknown surprises and more happen in real estate transactions. Experience has demonstrated that the vast majority of contracts are written to nullify time is of the essence. The closing in most any real estate transaction is uncertain until the seller negotiated the proceeds

check. Deal killers There are many reasons the closing file never reaches the table. In no particular order, the most common terminators are financing fails, inspection issues, agent error, and buyer or seller remorse. Deal fatigue is real. Richard Montgomery is the author of “House Money - An Insider’s Secrets to Saving ThousandsWhen You Buy or Sell a Home.” He advocates industry reform and offers readers unbiased real estateadvice. Follow him on Twitter at @ dearmonty, or at DearMonty.com.


REAL ESTATE WEEKLY • Wednesday, November 20, 2019 • Page RE5

Building materials:

How much should you buy? By Laura Firszt More Content Now

I

s there a home improvement in your future? Help keep your project on schedule and within budget — work out the quantities of building materials you’ll need in advance. Here’s how to figure amounts for 10 popular house and garden building materials. (Learn to calculate square footage and cubic footage for home improvement here.) Important: If you plan to hire a contractor to handle your project, get their professional guidance before you purchase materials.

Paint Calculate the square footage of all walls you plan to paint, plus the ceiling if appropriate. Then subtract doors and windows. Estimate 20 square feet per door or 15 per average-sized window. Add the square footage of bays and bump-outs. Estimate approximately one can of paint for every 350 square feet you plan

to cover. Buy more if you’ll be painting on unfinished drywall or applying a light color over dark.

Wallpaper Find the square footage of your wall space to be covered, minus floors and windows (using the calculation described above). Divide this figure by the number of square feet per roll of wallpaper. Round the answer upward to allow for matching and wastage.

Drywall Once again, calculate your walls’ square footage, minus windows and doors. Drywall for residential use is generally sold as 4x8 sheets. Plan your drywall layout to minimize seams.

Ceramic or porcelain tile For ceramic or porcelain tile, use as your base number the square footage of your floor, backsplash, etc. Add approximately 10-15% to allow for cutting and breakage, more if your room layout or tile design is complex. You may also want to stock up on a few extra tiles for future repairs. Porcelain and ceramic tile is usually

sold by the box. Check the square footage which your chosen tile will cover; a box tends to contain between 10 and 15 square feet.

Carpet For wall-to-wall carpet, figure out the size of your room in square yards: divide the square footage by nine. Because carpet is manufactured in standard widths — usually 12 feet, 13.5 feet or 15 feet — you’ll likely need an extra 10-20% to allow for cutting to size.

Siding Find out wood siding coverage by subtracting amount of lap from the width of your boards. Then calculate square footage of your exterior walls and divide by coverage to calculate the linear feet of siding required. Non-wood siding is sold by the “square.” To figure out how many squares you need, divide square footage by 100.

Roofing Similar to non-wood siding, roofing materials such as asphalt shingles are usually sold by the square. The formula

When using ceramic or porcelain tile, add approximately 10-15% to allow for cutting and breakage, more if your room layout or tile design is complex. [Goran tek-en/Wikimedia Commons]

is the same: square footage divided by 100.

Blown-in insulation For blown-in insulation, you’ll need approximately 1.3 pounds per square foot to give an R-value of 38, as recommended by Energy Star.

Concrete “Concrete is sold in 60- and 80-pound bags, which yield up to 0.6 cubic feet. Having the right amount of product on hand before beginning is critical — measure twice and pour once, as they say,” advises Cory Olson of Sakrete.

Mulch Buy landscaping mulch by the cubic foot. To discover how much you’ll need, calculate square footage times the desired depth (as a percentage of one foot). For instance, for a flowerbed of 3 feet by 5 feet, mulched 3-inches deep (25% of 1 foot), the calculation looks like this: 3 x 5 x .25 = 3.75 cubic feet. Laura Firszt writes for networx.com.


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