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CONTENTS
Let ter from the Editor Letter from the Editor
Departments 4
Market Report Where Do I Find Money for a Down Payment
8
10
Feature What You Should Know Before Getting a Home Loan Part 2
October 2016 • Vol. 09 • No. 10
12
Real Estate Spotlight International Fraudsters
14
Profile Jessica Leon Guerrero
P.O. Box 24881 Barrigada, GU 96921 Tel: (671) 472-3495 | Fax: (671) 472-3498 email: office@yellowpagesink.com
[ Publisher ] [ Business Sales Manager ] Jay-R S. Dominguez
[ Editor ] Arlene Taitague Taitingfong
16
From the Experts Inefficient Appliances That Waste Energy at Home
[ Display Advertising ] John Mendiola Doris Pangelinan Emily Untalan
[ Traffic/Circulation ] Shaun Cruz
18
How to D.I.Y. Building Permits: When a Permit is Required and When It’s Not
[ Production Manager ] Mark S. Burke
[ Graphics & Layout ] Mark S. Burke Edwin E. Valencia
[ Website Development ] 22
Curb Appeal 8 Tips for Adding Curb Appeal and Value to Your Home
25
Who Ya Gonna Call?
27
Classifieds
28
Closing
Edwin E. Valencia
[ Editorial Contributors ] John Arroyo Matt Clawson Pat Curry Joylyn Munoz Arlene Taitague Taitingfong Dawn Walls-Thumma Kim Anderson Young
Arlene Taitague Taitingfong
Hafa adai readers, We have some pretty interesting articles this month! John Arroyo gives us Part 2 of “What You Should Know Before Getting a Home Loan.” Check out our FEATURE as it is the last part of the 2 part series. Our PROFILE is on Jessica Leon Guerrero. She is the Mortgage Underwriting Manager of Community First Guam Federal Credit Union and is a woman who is quite knowledgeable about mortgage loans and programs in her financial institution. Find out more in “Credit Member To Credit Manager.” International Fraudsters? Yes, they are out there! Read Kim Young’s article in REAL ESTATE SPOTLIGHT and be vigilant about fraudulent transactions. Don’t miss out on the great information we have in DIY, CURB APPEAL and FROM THE EXPERTS. Learn when it is necessary to get a building permit, get tips on creating curb appeal on a budget, and see how you can save on energy with your appliances, respectively. We also have our monthly submissions from GAR leadership. Read up on what’s happening in the real estate world! Until next month, keep safe Guam!
Cover Photo: Mark S. Burke CasaGuam is Published by:
CasaGuam Advertising Disclaimer All Advertisers agree to hold the publisher harmless and indemnify it against any and all claims, losses, liabilities, damages, costs and expenses (including attorney’s fees) made against or incurred by the publisher, officers or employees with respect to, or arising out of, the content, text, graphics or representations of any ad published herein, including but not limited to the sole negligence and/or fault of the publisher. The publisher is not liable for any claims, losses or damages of any kind, arising from the wording, text, graphics or representations of any ad published herein, or the condition of the articles sold through the publication, or performance of services advertised in this publication. All advertising and/or performance of services advertising and/or submissions become wholly the property of CasaGuam Magazine. CasaGuam Magazine is a registered trademark of PTI Pacifica Inc. Copyright © 2008. All rights reserved. Reproduction in whole or in part in any form without the express written consent of the publisher is prohibited. We reserve the right to edit or refuse any ad and to reprint any photo for promotional use.
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Market Repor t All information in Market Research is provided by Joylyn Munoz, Principal Broker, Absolute Realty
Tel: (671) 488-5069 joylyn.munoz@absoluterealtyguam.com Thinking of selling? Get a FREE market analysis for current value of your home. Thinking of buying? Call us, it’s FREE, we have access to all property listings.
Joylyn Munoz
Where Do I Find Money For A Down Payment? o you’ve thought of purchasing a home, but it scares you because you know that you may possibly need a down payment. Due to different loan program criteria, some buyers may not qualify for first time homebuyer programs, which offer 100% financing. As a result, buyers may have to furnish a down payment sometimes up to 20%. In an ideal situation, a buyer would have the money saved up for a down payment…that’s not always the case. So the question is “where do I find money for a down payment if I haven’t already saved?” The first step would be to consult your local bank of choice and get a pre qualification. The loan officer will inform you of the type of loan you would qualify for and the amount of down payment you will need. Once you have that information you can start sourcing your down payment. Please remember to ask your loan officer what source of down payment is approved. Please remember to keep documentation of all sources of funds for your lender and or your tax preparer.
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1. Liquidate your assets You may want to sell your nice vehicle and settle with a more practical automobile. You may even want to sell your motorcycle, boat, or even your collectibles. The proceeds from the sell can be applied to your down payment.
2. Save your tax return If there is ever a question about what to do when you get your tax return, a good answer would be save it and use the funds towards a home purchase. The amount of money that taxpayers receive in their tax refund is sometimes a substantial amount. It may be enough for a down payment.
3. Gifted Funds Some loan types allow you to use what they call “gifted funds.” These are funds from immediate family members. In most cases, you will need to provide the bank with a letter from the person giving the funds. It will need to state they will not have to be repaid. Be prepared, the lender may ask for documents such as wire transfer receipts and or bank statements verifying the source of the funds. 4 CasaGuam October 2016
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Market Repor t
Market Snapshot August 2015/2016 Sold Market Analysis Comparison Statistics Type
Total Active
Number Sold
Average Sale Price
Days on Market
Last Year
This Year
Last Year
This Year
Last Year
This Year
Last year
This Year
Condo/ Town House
123
97
10
9
$182,849
$218,222
185
84
Land
465
437
7
9
$168,928
$212,500
198
139
Multi Family
34
46
0
1
$0
$400,000
0
195
Commercial Buildings
21
35
0
2
$0
$525,525
0
218
Single Family
271
264
21
35
$270,157
$310,659
197
161
4. Co-Borrower Finding a co-borrower or a co-signer for a loan can help by sharing the cost for the down payment. The co-borrower will also be responsible for the loan in case the main borrower is unable to make payment.
5. Retirement If you currently have money in your retirement account, this may be an option for you. Some plans allow you to borrow money for a new home purchase. You would need to check your retirement representative, as there may be rules and restrictions or possible penalties for withdrawal. You may want to consider planning for down payment by investing into high yield savings accounts, money market accounts, or you may even want to consider a certificate of deposit. Your banker may help guide you by providing you the best options to reach your goal. The thought of a down payment may cause stress and worry for most first time homebuyers that may not have the money saved, but its not the end of the world with the available resources. The end result will be well worth it! CasaGuam.com 5
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Feature
What You Should Know Before Getting A Home Loan (Part 2 of a 2 part series)
By John Arroyo
elcome back. Last month we used a spreadsheet to determine an affordable monthly loan payment and the associated loan amount, and discussed different home loan structures. In this article we will cover loan amortization, interest and principal components of the monthly payment, escrow accounts, and private mortgage insurance. To be affordable, loans need to be repaid in manageable chunks. Amortization allows for a gradual repayment of principal. Typically, payments are amortized on a monthly basis, so for a 30 year loan, 360 payments need to be made. There are a number of elements that make up the loan payment. The most fundamental are the principal and interest components. The interest payment portion pays the lender for your use of the loan funds. It is a function of the outstanding principal balance, rate interest, and the number of days that elapsed since the last payment. The principal payment portion pays down the loan balance. These components have an inverse relationship, in that at the start of the loan, more of the payment is applied to interest. As the loan matures, more goes towards principal. Here is a snapshot of how interest and principal components are distributed at various payment intervals based on last month’s example: Payment Period 1 60
120 180 240 300 360
Payment
1821.16
Principal Payment 585
Interest Payment 1,236
Loan Balance 390,740
1821.16
852
969
306,095
578
181,634
1821.16
705
1821.16
1,029
1821.16
1,502
1821.16 1821.16
1,244 1,815
1,116 729 319
6
352,729
249,748 99,399
0
An amortization schedule is a useful tool to track payment application and loan balance. You can download a link to an amortization schedule worksheet by visiting the Title Guaranty of Guam Facebook page. Make sure to “like” us while you are there. Lenders may include additional components in the loan payment to ensure that sufficient funds are available when certain obligations become due. Real property taxes and homeowners insurance are two common examples. The annual tax and 8 CasaGuam October 2016
insurance premium are divided by 12 and that amount is added to the loan payment. These funds are held in an escrow account, and after twelve months of accumulation, are used to pay property taxes and renew homeowners insurance. Another common component included in the loan payment is private mortgage insurance. The maximum that residential loan lenders can finance is 80% of the value of the home without private mortgage insurance. Private mortgage insurance (referred to as PMI) is assurance protection covering the lender against default loss, if it allows loan amounts in excess of the 80% limit. PMI is a cost that you pay and will continue to pay until the loan balance drops to 80% of the home value. Lenders are required to analyze escrow accounts annually to ensure that they do not over collect. Escrow payment adjustments are made to reflect changes in the cost of insurance, tax, PMI and other items included in your escrow account.
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Feature
The application review process and new loan disclosure requirements. Lenders are under new federal regulations when financing loans to purchase or refinance your primary residence. The new regulations are intended to protect you from abusive lending practices. At key points in the application review and underwriting process, they are required to give you disclosures that are easy to read and comprehend. They are also required to comply with standards when completing the disclosures that ensure comparison shopping of loan offers across all lenders. There are six specific pieces of information that one provides to a lender to trigger an application. They are your name, income, social security number to obtain a credit report, the address of the property, the estimated value of the property, and the loan amount. Within three business days of receiving this information, the lender must provide you with a Loan Estimate disclosure (sometimes referred to as the “LE�). The lender is at liberty to ask for additional information, but cannot require you to provide verifying information until after you receive a LE and let the lender know that you want to proceed with the application. For example, a lender may ask for banking information such as account numbers and balances, but it cannot require you to submit bank statements as confirmation, if you provided these orally, before you are provided the LE. The LE describes the features of requested loan and discloses the estimated closing costs. The estimated costs need to be
reasonably reliable so that there are no surprise fees or cost increases at loan closing. Some costs are restricted from changing, other cost changes are subject to tolerance limits, and still others have no change restrictions. Lenders are required to revise their LE if conditions change closing cost estimates. Make sure you review the LE in detail with your lender. After you receive the LE and confirm your desire to proceed with the application, the lender will ask for bank statements, tax returns, verifications of employment, and any other information needed to complete the application and underwrite the loan. The lender must let you know what action it took on your application within 30 business days of receiving the completed application. If the loan request is approved, the lender will send you a commitment letter. The letter details all the terms and conditions of the approved loan. After you accept the loan commitment, your lender will order an appraisal report and other services required by the loan commitment in order to close the loan. Three days before loan closing, your lender will provide you with a Closing Disclosure. The Closing Disclosure is similar to the LE, but it discloses the final closing costs, compares those with the costs on the LE and provides other details regarding the loan. For a full discussion of the LE and Closing Disclosure visit the Consumer Financial Protection Bureau’s website. Please feel free to email me at jarroyo@tgguam.net if you have any questions or need help with the spreadsheet. CasaGuam.com 9
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On The Cover
JP International Executive Home International Materials Inc. transformed this once standard 3B/4Ba house in Barrigada, into an exquisitely designed executive home. The materials used to upgrade the dwelling are all top of the line materials which can only be found at JP International. You can see the high quality in every aspect of the home, from the ceramic tiles and window blinds, down to the fixtures in the bathrooms and the kitchen. JP International also supplies customized, high quality aluminum windows, doors, and carport closings. If you plan to renovate your home or are choosing materials to construct a new one, visit their showplace in Barrigada, and see the latest trends offered on the market today! Raise the value of your property with a few upgrades, whether big or small. Choose JP International Materials as your one stop place for everything you need to improve the look or design of your home!
JP
JP International Materials, Inc. Quality Aluminum Windows Doors
CALL US for inquiries/quotes! Tel: (671) 735.6528 / (671) 988.6528 10 CasaGuam October 2016
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Real Estate Spotlight
International Fraudsters
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By Kim Anderson Young
I recently read an article in the Sydney Morning Herald about a woman who lost her house to scammers. It piqued my interest because title insurance is a relatively new concept in Australia, and I was curious as to what her recourse would be in lieu of a title insurance policy. The woman owned a lovely four bedroom home in Canberra, Australia. She was living and working in South Africa and had leased her home to tenants. She had hired an agency to manage the property during her absence, and when she did not hear from the agency for nine months, she contacted them to follow up on maintenance reports and rental payments. When she contacted the agent, she discovered that the house had been sold! Further investigation disclosed that the thieves had gone to elaborate lengths to fool real estate agents, lawyers and even a bank. They had established bank accounts with fraudulent email accounts and forged signatures. Under both Australian and US law, bonafide purchasers have protection against fraud which resulted in the woman not being able to reclaim her home. Protection for registered real estate purchases made in good faith in Australia fall under their ACT Land Titles Act, rather than an owners title insurance policy. The woman made a claim against the ACT Land Titles Act, but while the Government recognized that she was an innocent victim, they disagreed that she was entitled to compensation from the Government. The Australian Court required that she seek remedy against the fraudster first, before requesting compensation from the Government. I can see this going in circles for many years to come! An owner’s title insurance policy would have insured the buyers against fraud, which in turn, would have protected the woman who was defrauded in two ways. First, the title insurer may have agreed to pay court costs to chase the fraudsters, and second, they may have opted to reimburse our former owner for the cost of the house. Either option works better than fighting a legal battle against a Government! Be Secure when dealing with real estate transactions! Guaranty Stockunlimited.com your ownership with an owner’s title insurance policy. 12 CasaGuam October 2016
About the Author Kim Anderson Young, president of Security Title, has over 30 years of experience in the real estate industry. Contact her at kim@securitytitle.net or 647-8100.
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Profile
Credit Member Becomes Credit Manager By Arlene Taitague Taitingfong
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Several months ago, I was given a bit of advice when it comes to selecting a loan officer. It is always best to seek out the person who has the experience, and not just one or two years under their belt. Once you decide to take the plunge and purchase your home, select someone who has been in their profession for at least several years. This will ensure that you are getting a professional who knows what to do and how to handle your loan process with ease. One professional that comes to mind is Jessica Leon Guerrero. Leon Guerrero is the Mortgage Underwriting Manager at Community First Guam Federal Credit Union (CFGFCU). She has several years of experience in the financial field. She joined CFGFCU in November 1997 and started as a teller. She moved up the ladder since then and has held many positions to include Member Service Representative, Consumer Loan Officer, Mortgage Loan Underwriter and currently - Mortgage Underwriting Manager. Her relationship with CFGFCU started previous to her working there. She was in the retail industry at the time she decided to open a savings account and become a member of CFGFCU. This led to interacting with the staff on numerous occasions, which brought about her enlightenment on career opportunities. She realized that there was something other than retail that appealed to her, and took her chance with CFGFCU. It’s 19 years later and Leon Guerrero still enjoys what she does, even more so now that she handles the mortgage side of the business. She said, “It is great to be a part of the credit union movement. We are a not-for-profit financial institution and we exist to serve our members. I enjoy delivering professional, yet personal financial services.” She advises that if anyone wants to get into a career in a financial institution, first scope out how that company handles their clients, especially in the customer service area. You can learn a lot about a company by just being a client. According to Leon Guerrero, a large part of their members have been with them for over 10 years, and have experienced the growth and diversity of products and services that CFGFCU offers. This loyalty enables Leon Guerrero to suggest products and assist members beyond a checking or savings account. “Building that lifetime partnership is important. Members need that trust, more so in a financial institution. This trust allows me to help them in a more specialized manner, especially when it comes to mortgages and identifying the right loan program.” Leon Guerrero also commented that she enjoys reading 14 CasaGuam October 2016
Jessica Leon Guerrero MORTGAGE UNDERWRITING MANAGER COMMUNITY FIRST GUAM FEDERAL CREDIT UNION
CasaGuam, describing it as an outreach to the community and personable to the reader; source for agents to publish their ads and promote diverse property options from single family dwellings to investment properties. “I use it to connect with the real estate market and see what homes are available for our members. The magazine is not limited to first time homebuyers. Anyone can pick up a copy for the articles alone and find a good source of information. When she is not working, you can find her serving in the Guam Air National Guard as a Security Forces Member. She also tries to spend as much time with her family - Ray and her children, Jeremy, Jaelin & Jadean.
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From the Experts
Inefficient Appliances That Waste Energy at Home
By Dawn Walls-Thumma
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Your home appliances may be running up your energy bills for several reasons. Some appliances inherently take up a larger chunk of your energy budget than others, while some models may perform worse than others in terms of energy efficiency. In many instances, you may be able to cut energy costs by using your existing appliances more efficiently.
High-Energy Appliances Home appliances accounted for two-thirds of the energy consumed in the average home, according to a 2001 study from the U.S. Energy Information Administration. A handful of appliances use more than their average share of this energy. A single refrigerator uses almost 14 percent of a home's energy, for example, so if you have an extra refrigerator that's often unstocked, you can realize significant savings by unplugging it. Clothes dryers come in next for appliance energy consumption, using 6 percent of a home's energy. Line-dry your clothes to avoid this energy drain; when you must use your dryer, keep the lint-trap clean, dry only full loads and don't overdry items.
Low-Efficiency Appliances The U.S. government's Energy Star program allows manufacturers that meet high energy-efficiency standards to use the Energy Star label on their products. The U.S. Environmental Protection Agency estimates that Energy Star appliances can save the average home 30 percent on energy expenditures. For example, an old freezer can cost you $40 more per year than a comparable Energy Star model. When replacing appliances in your home, look for the Energy Star label, which indicates that the appliances meet the program's extra-stringent efficiency standards. Although Energy Star appliances often cost more than their conventional counterparts, the program requires that energy savings will allow the purchaser to recover the extra up-front costs in a reasonable amount of time.
Inefficient Appliance Usage Often, homeowners aren't using an appliance in the most energy-efficient manner. For example, 90 percent of the energy used while laundering clothes goes toward heating hot water. Washing clothes in cold water whenever possible can considerably cut your energy expenditures for this essential chore. In addition, simply waiting until you have a full load to do laundry or run the dishwasher is a big cost-cutter. A microwave uses up to 80 percent less energy than a conventional electric oven, according to 16 CasaGuam October 2016
Energy Star, so use a microwave or toaster oven to reheat small portions. When your cooktop is on, use it wisely; for example, use the smallest burner necessary for your pots and pans.
Extra Appliance Energy Savings A few simple changes and habits can maximize the efficiency of your existing appliances. Electronics, for example, use the majority of their energy while turned off, a phenomenon called phantom energy load. Plug televisions, DVD players, other electronics and any small appliance that has a digital display or "standby" mode into a power strip. Switching off the power strip when these items aren't in use can save 75 percent of the energy these appliances use. Citing Source: http://homeguides.sfgate.com/inefficient-appliances-waste-energy-home-78874.html
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H o w To D . I . Y.
Building Permits: When a Permit Is Required and When It's Not
By By Matt Clawson
You have the vision. You know what you want. But getting that sparkling new kitchen or expansive master closet isn’t as easy as making a wish and snapping your fingers. From the beginning, your project is set up for numerous pitfalls and missteps, and nowhere is this more true than in the permitting process. Skip a permit in hopes of a smoother project and you could be faced with very real consequences. What follows is an introduction to a series about understanding and navigating the residential permit process. It’s an informative look at basic processes and guidelines that you should understand before beginning work. You won’t be able to snap your fingers and make things happen, but you might be able to sleep better at night knowing your project is in full compliance with local codes — and your family is safe.
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Why get a permit? The greatest risk to non-compliance is that of bodily harm to the occupant. We recently discovered a fully exposed electrical wire running under a steel bathtub during a bath remodel. It was placed there by a previous homeowner and the imagination does not need to work hard to see how this DIY job could have easily resulted in electrocution. But there are other less dire consequences that might arise from failing to secure a required permit. Every real estate agent has a story about a home sale that was affected by improperly permitted work. If the home’s reported square footage does not match up with what’s recorded, it’s a red flag that can negate a home sale. You might be required to obtain a permit for work retroactively, which can be a costly endeavor involving demolition and repeating work steps. Fines, lawsuits and other legal troubles are all possible outcomes of completing work without the required permit.
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H o w To D . I . Y. informed decisions. The IBC is a uniform code that has been adopted throughout most of the United States. A permit is always required for any addition or structural modification to your existing living space. A permit is required for electrical modifications, plumbing work (even replacing that rusty old water heater), window modifications that enlarge openings and for mechanical system installations. You will always need a permit if you are modifying the roof line of your home. Sewer modifications, major demolitions and added fireplaces are other examples of work that typically requires a permit.
When is a permit not required?
The first rule. It seems obvious, but if unsure, always check with your local jurisdiction. I can’t prioritize this one highly enough; even professionals can be surprised by the vagaries of local building departments. What is required in a highly regulated city like, say, Berkeley, California, might seem laughable in the rural outskirts of Wyoming. So when in doubt, always ask.
The second rule. Construction rules change. Even within a given jurisdiction, requirements can vary greatly over time, usually becoming more stringent and comprehensive every year. Planning conditions, energy-efficiency requirements and local interpretations of building code guidelines are not always static. By checking with your local planning and building departments, you will have acted in the most responsible manner possible.
When is a permit required? Still, a general understanding of the process and of the International Building Code (IBC) is essential to making
A permit usually isn’t required for interior cosmetic changes like new carpet, hardwood flooring, new paint, paneling and the installation of trim like crown molding, baseboard and casing. When a permit might be required. Exterior work such as adding a deck, cutting down trees and building new fences or retaining walls are all elements that may or may not require a permit depending on design, location and the extent of the work. Exterior work on your home, like repairing siding and repainting, may or may not require a permit and can only be determined in context with the rules of your community. Replacing light fixtures, plumbing fixtures and appliances are all examples of work that historically did not required a permit but now may technically require one in some cases. Safety first. The most critical objective of the building code is your safety and that of your family. Railing guidelines, for example, are detailed in the International Building Code, defining specific design characteristics that must be met. Railing requirements ensure the safety of small children as well as anyone who might use the stairs. At no location in the railing is a 4-inch sphere permitted to pass through the barrier. Specific handrail details such as height and maximum circumference ensure support can easily be gripped by those of all ages. Purpose of building codes. Although the priority of the building code is to protect public health, safety and general welfare, the latitude in this mission has evolved to include a breadth of regulations imposed for the public good. Energy-efficiency and green building guidelines are examples that complicate and intensify the extent of regulatory control while ensuring our communities are built in an environmentally sensitive manner. What to do first. You need to determine the scope of your project with as much specificity as possible. It may be easy. A repainted bedroom with added crown molding would almost never require a permit. But if you find yourself considering work with uncertain permit requirements, consult with a professional or your local building jurisdiction. Citing Source: http://www.houzz.com/ideabooks/44893569/list/building-permits-when-a-permit-is-requiredand-when-its-not CasaGuam.com 19
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Curb Appeal
8 Tips for Adding Curb Appeal and Value to Your Home By Pat Curry; www.houselogic.com
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Homes with high curb appeal command higher prices and take less time to sell. We’re not talking about replacing vinyl siding with redwood siding; we’re talking about maintenance and beautifying tasks you’d like to live with anyway. The way your house looks from the street—attractively landscaped and well-maintained—can add thousands to its value and cut the time it takes to sell. But which projects pump up curb appeal most? Some spit and polish goes a long way, and so does a dose of color.
Tip #1: Wash Your House’s Face Before you scrape any paint or plant more azaleas, wash the dirt, mildew, and general grunge off the outside of your house. REALTORS® say washing a house can add $10,000 to $15,000 to the sale prices of some houses. A bucket of soapy water and a long-handled, soft-bristled brush can remove the dust and dirt that have splashed onto your wood, vinyl, metal, stucco, brick, and fiber cement siding. Power washers (rental: $75 per day) can reveal the true color of your flagstone walkways. Wash your windows inside and out, swipe cobwebs from eaves, and hose down downspouts. Don’t forget your garage door, which was once bright white. If you can’t spray off the dirt, scrub it off with a solution of 1/2 cup trisodium phosphate — TSP, available at grocery stores, hardware stores, and home improvement centers — dissolved in 1 gallon of water. You and a friend can make your house sparkle in a few weekends. A professional cleaning crew will cost hundreds — depending on the size of the house and number of windows — but will finish in a couple of days.
Tip #2: Freshen the Paint Job The most commonly offered curb appeal advice from real estate pros and appraisers is to give the exterior of your home a good paint job. Buyers will instantly notice it, and appraisers will value it. Of course, painting is an expensive and time-consuming facelift. To paint a 3,000-square-foot home, figure on spending $375 to $600 on paint; $1,500 to $3,000 on labor. Your best bet is to match the paint you already have: Scrape off a little and ask your local paint store to match it. Resist the urge to make a statement with color. An appraiser will mark down the value of a house that’s painted a wildly different color from its competition. 22 CasaGuam October 2016
Tip #3: Regard the Roof The condition of your roof is one of the first things buyers notice and appraisers assess. Missing, curled, or faded shingles add nothing to the look or value of your house. If your neighbors have maintained or replaced their roofs, yours will look especially shabby. You can pay for roof repairs now, or pay for them later in a lower appraisal; appraisers will mark down the value by the cost of the repair. According to the “2015 Remodeling Impact Report” from the NATIONAL ASSOCIATION OF REALTORS®, the national median cost of a new asphalt shingle roof is about $7,600. Some tired roofs look a lot better after you remove 25 years of dirt, moss, lichens, and algae. Don’t try cleaning your roof yourself: call a professional with the right tools and technique to clean it without damaging it. A 2,000-square-foot roof will take a day and $400 to $600 to clean professionally.
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Curb Appeal These days, your local home improvement center or hardware stores has an impressive selection of decorative numbers. Architectural address plaques, which you tack to the house or plant in the yard, typically range from $80 to $200. Brass house numbers range from $3 to $11 each, depending on size and style.
Tip #7: Fence Yourself In A picket fence with a garden gate to frame the yard is an asset. Not only does it add visual punch to your property, appraisers will give extra value to a fence in good condition, although it has more impact in a family-oriented neighborhood than an upscale retirement community. Expect to pay $2,000 to $3,500 for a professionally installed gated picket fence 3 feet high and 100 feet long. If you already have a fence, make sure it’s clean and in good condition. Replace broken gates and tighten loose latches.
Tip #8: Maintenance Is a Must
Tip #4: Neaten the Yard A well-manicured lawn, fresh mulch, and pruned shrubs boost the curb appeal of any home. Replace overgrown bushes with leafy plants and colorful annuals. Surround bushes and trees with dark or reddish-brown bark mulch, which gives a rich feel to the yard. Put a crisp edge on garden beds, pull weeds and invasive vines, and plant a few geraniums in pots. Green up your grass with lawn food and water. Cover bare spots with seeds and sod, get rid of crab grass, and mow regularly.
Nothing looks worse from the curb — and sets off subconscious alarms — like hanging gutters, missing bricks from the front steps, or peeling paint. Not only can these deferred maintenance items damage your home, but they can decrease the value of your house by 10%. Here are some maintenance chores that will dramatically help the look of your house: • Refasten sagging gutters. • Repoint bricks that have lost their mortar. • Reseal cracked asphalt. • Straighten shutters. • Replace cracked windows.
Tip #5: Add a Color Splash Even a little color attracts and pleases the eye of would-be buyers. Plant a tulip border in the fall that will bloom in the spring. Dig a flowerbed by the mailbox and plant some pansies. Place a brightly colored bench or Adirondack chair on the front porch. Get a little daring, and paint the front door red or blue. These colorful touches won’t add to the value of our house: Appraisers don’t give you extra points for a blue bench. But beautiful colors enhance curb appeal and help your house to sell faster.
Tip #6: Glam Your Mailbox An upscale mailbox, architectural house numbers, or address plaques can make your house stand out. High-style die cast aluminum mailboxes range from $100 to $350. You can pick up a handsome, hand-painted mailbox for about $50. If you don’t buy new, at least give your old mailbox a facelift with paint and new house numbers.
About the Author: Pat Curry is a former senior editor at “Builder,” the official magazine of the National Association of Home Builders, and a frequent contributor to real estate and homebuilding publications..
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W h o Ya G o n n a C a l l ?
472-3497 dvertising “Your Ac Spe ialist” Arlene Taitingfong Editor
Email: ataitingfong@yellowpagesink.com CasaGuam.com 25
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Closing
Message from the President Deanna Palmer 2016 President Guam Association of REALTORS®
The most asked question in Real Estate is "How's the Market?” When comparing the totals for Single Family Homes, Condominiums, and Land Sales for January through September 21, 2016 to the same time frame last year, you will uncover something interesting. The number of sold homes and condos is higher than last year by 4% and 12% respectively. What is more interesting is that the number of listings for homes was the same, and for Condos was lower this year. The actual selling prices were 95% to 98% of the listing price which is also up. This made a larger gain in average Sales prices for both at 9% for home and 11% for condos. The Total Volume in Sales going through the Multiple Listings Service increased by 13% for homes and 26% for condos. • Average Sales price of a Condo is $216,250 (up 11%) • Average Sales price of a Home is $323,347 (up 8%) • Average Sales price of Land is $276,080 (up 117%) Looking at land sales, year over year the Total Sold Volume increased by 100% and the purchase prices were at 90% of the asking price. So what all these numbers indicate is the Real Estate Market is healthy. The List prices of properties for sale are still slightly negotiable. The number of days on the market has been reduced and steady for the last 4 months. Selling Prices are increasing as compared to this time last year. Property Values are increasing. Interest rates are incredibly low which helps all Buyers qualify for their mortgage loans. Sellers are tougher on offering any Seller Concessions for the Buyers closing costs. The closer the property is to "like new" or new condition, the shorter the days on market, a higher number of offers received and the final agreed to prices will be higher. It is time for you to choose a REALTOR® to help you with your Real Estate goals.
GUAM ASSOCIATION OF REALTORS® The Voice for Real Estate on Guam Suite 236A Julale Center 424 West O'Brien Drive, Hagatna, Guam 96910 Office: (671) 477-4271 • Fax: (671) 477-4275 28 CasaGuam October 2016
Message from the Chief Executive Officer and Government Affairs Director Peggy Araullo Llagas Guam Association of REALTORS®
REALTOR® SAFETY Part 2 THE 10-SECOND RULE One of the most common reasons that people find themselves in dangerous situations is that they weren’t paying attention. Take a few precious seconds during the course of your day to assess your surroundings. Take 2 seconds when you arrive at your destination. • Is there any questionable activity in the area? • Are you parked in a well-lit, visible location? • Can you be blocked in the driveway by a prospect’s vehicle? Take 2 seconds after you step out of your car. • Are there suspicious people around? • Do you know exactly where you’re going? Take 2 seconds as you walk towards your destination. • Are people coming and going or is the area unusually quiet? • Do you observe any obstacles or hiding places in the parking lot or along the street? • Is anyone loitering in the area? Take 2 seconds at the door. • Do you have an uneasy feeling as you’re walking in? • Is someone following you in? Take 2 seconds as soon as you enter your destination. • Does anything seem out of place? • Is anyone present who shouldn’t be there or who isn’t expected? Safety in Just 10 Seconds It takes just 10 seconds to scope out your surroundings and spot and avoid danger. Make this “ten-second scan” a habit in your everyday work as a real estate professional. Then share it with someone else. - National Association of REALTORS® Ask if your agent is a REALTOR®. A member of the Guam Association of REALTORS® who shall remain your leading advocate in protecting your best interest. Visit our website at www.guamrealtors.com.
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