Saturday Reporter-Herald September 10, 2011 E
Real Estate Matters
www.reporterherald.com • Saturday, September 10, 2011 • Reporter-Herald
Homeowner association has an uphill battle ahead ILYCE GLINK TRIBUNE MEDIA SERVICES
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uestion: As an involved resident, I have been trying to help my community tackle the issue of blight. I have brought articles to my homeowner association’s board explaining how liens can be placed on properties that fail to comply with rules. Placing a lien can make a homeowner, lender or investor take care of issues that cause blight or otherwise affect a community. I frequently make calls my association when its rules are violated and to municipal officials about properties that don’t comply with codes. The association or municipality then fines the owner and/or places a lien on the property. The lien prevents the homeowner from refinancing or selling the property until compliance has been achieved. Some town officials seem unaware that they have this right. I believe that enforcing compliance before a sale helps preserve property values. I have also found that offering assistance to a neighbor with a problem property goes a long way toward helping the community. But if the assistance isn’t accepted, then you have to call in code compliance authorities. When you call a government code compliance officer, they don’t disclose the source of the call. That anonymity helps gets things done. I think this is one of the best ways to keep our home values up. The trick is to work with others in the neighborhood to put pressure on those who are not caring for their properties. Once neighbors are motivated, there is momentum in the community to get things cleaned up. Answer: It’s always nice to hear that someone is getting involved for the greater good of the community. I commend your attempts to keep your community looking good and to help maintain everybody’s property values. You are correct that some municipalities have made greater attempts to force property owners and their lenders to keep up their properties. Unfortunately, it’s an uphill battle. Yes, you may succeed in getting some lenders to have to pay penalties for property violations. However, the problem for property values in general is that foreclosed properties are still likely to be sold for far less than if they had been maintained and lived in by the homeowners. Homeowners sometimes abandon their properties even before the banks take control. Some municipalities have gone after the I See GLINK/Page E4
Don’t believe all you hear about mortgage modifications ries at my office that I have adopted a name for it: The Neighbor Syndrome. It’s a serious issue that has affected uestion: My cousin all of us since childhood. We got a loan modificaall remember the guy in high tion in two weeks. school who stayed home evCan I? My neighbor ery Friday night but had a told me that if you send your beautiful girlfriend “from bank a short sale application Canada” or the uncle who on legal-size paper, it gets caught the 5-foot fish, “but done in half the time. And I the camera broke.” Rememread on the Internet that if ber the Rule of Threes — the bank loses my mortgage friends and neighbors tend to note, I will get the house for exaggerate things by three. free. Is this true? People want to believe that Answer: Your cousin’s loan there is some magic trick or mod probably took six weeks secret sauce that will make or longer. A short sale application on legal-size paper has all of their problems go away with minimal effort. If you no bearing on how fast the hear the stories often bank may approve it. And if enough, you may actually your lender loses the note, you do not get your house for start believing them and free. The bank just has to go make bad decisions that greatly affect your life. through a simple legal process of having a copy of it I have spoken to dozens of recognized by the court so people who have stopped that the bank can move formaking their mortgage payward with the foreclosure. ments in order to get loan I hear so many of these sto- modifications when a little
GARY M. SINGER MCCLATCHY-TRIBUN
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research from widely available sources would have quickly shown them that they earn way too much money to ever qualify for the modifications. Now they are in foreclosure, they have to pay attorneys to clean up the mess, they’ve ruined their credit scores and they have to pay large penalties to the banks to get caught up. Do the research yourself from official or direct sources. Do not talk to a
neighbor about the Making Homes Affordable government loan modification plan. Go to the actual government website — www.making homeaffordable.gov — and read it yourself. By getting the information yourself through direct research, you will be able to make sound decisions that lead to good results. Question: My rental home has pests and needs to be tented and fumigated. My
landlord has offered to prorate my rent for the few days I can’t stay in the house. But I also want him to pay for my hotel and food expenses while I am out of the house. Do I have a case? Answer: Probably not. If you and your landlord addressed this issue in the lease, then that will take precedence. If the lease is silent on the matter — and most are — then state law rules.
Five ways to boost home Ask prospective Realtors the right value when selling types of questions METRO CREATIVE SERVICES
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hough the housing market might not be booming, there are still buyers out there looking for a place to call their own. Some potential sellers might prefer a patient approach to selling their homes, choosing to do so when the market rebounds and homes regain some of their lost value. Other sellers might not have a choice and must make due with selling in a lackluster market. Regardless of which category you’re in, there are easy ways to boost your home’s value. Making minor changes to a home can add to your asking price, whether you’re putting your home on the market this week or waiting for the market to rebound. The following tasks might not take much effort, but they pay dividends. • Work on the yard. An appealing lawn is still a great way to catch a prospective buyer’s eye. When a home boasts a lush lawn and well-manicured trees, it’s hard to ignore that for-sale sign out front. If landscaping has proven an Achilles’ heel in the past, make an effort to take better care of your property in the months ahead. It doesn’t take long for even the most neglected lawn to rebound from disrepair. By the time you feel confident to put that for sale sign out front, you might just be putting it up in a lush lawn no buyer can resist. • Upgrade appliances. Prospective buyers won’t be thrilled if they walk into a home and see outdated appliances. Some might even feel older appliances indicate a homeowner who cared little about appearances and might begin to wonder if there are any
additional areas that might have been neglected around the house. Stainless steel appliances in the kitchen and even new fixtures in the bathroom are aesthetically appealing and tend to excite buyers. Homeowners who aren’t immediately putting their property up for sale can gradually upgrade their appliances to lessen some of the financial toll such purchases take. • Replace the carpet. A clean carpet might make a world of difference to a home’s inhabitants, but a new carpet will be more appealing to prospective buyers. Choose a neutral-toned carpet that will boast a more universal appeal. • Paint the home. A fresh coat of paint or new siding is always attractive to prospective buyers. If your home hasn’t had a new coat of paint in awhile that might make buyers feel the home is musty or old. Many buyers judge a book by its cover, and sellers want their home’s exterior to be as attractive as possible. Homeowners can also paint rooms inside the home to give it a fresh and welcoming feel. • Clean up around the house. A cluttered house will almost certainly repel buyers. Buyers want a home that’s roomy and well kept, but clutter creates the opposite impression. Organize the closets to make them appear more roomy and clean up any areas that have become cluttered — consider temporarily renting a storage unit to house excess stuff from closets. Basements or utility closets might be handy for storage, but they should be open and clean before hosting an open house. The less clutter a home has, the more spacious it will appear and the more money sellers can likely demand for the home.
A fresh coat of paint or new siding is always attractive to prospective buyers.
ANGIE HICKS MCCLATCHY-TRIBUNE
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ear Angie: We are selling our house and want to know what kinds of questions we should ask prospective real estate agents. We’ve never sold a house before, and had a less than stellar experience when we purchased six years ago. We want to be informed about what to expect before, during and after the sale. — Marisa D., Stow, Ohio Dear Marisa: If you’re selling or buying a home, it’s extremely important to think ahead when you’re hiring a real estate agent. After all, buying a home is likely the biggest investment you’ll ever make. Find someone with a good track record; one who has the history and references that show they are going to work to get you the best return on your home. Interview prospective agents as you would interview any candidate for a big job with plenty of questions. Ask how long they’ve been in the business. Are they full time or part time? How many hours per week do they dedicate to their real estate business? How many homes did they sell last year? What is the average number days on the market for houses they sell? What is the average difference from their initial asking price and the final selling price? How does their selling prices in your neighborhood compare to the average selling price per square foot in your neighborhood? Do they have references in your neighborhood? Do they have any professional designations? Do they have a website? How will they market your home? Will they be there to answer all of your questions along the way? A good agent should have a marketing plan tailored for you. He or she should be able to advise you about whether you need to update and how to properly stage your home for online photos and in-person showings. Your agent should contact you about your home’s status at least once a week if not more to update you, not only about your house, but also about similar houses in your area that have sold or gone up for sale. You have to know your competition to beat it. If the agent is part of a team, insist on meeting the other players, so that you feel comfortable should your agent be unavailable In this tough housing market, good agents are pulling out all the stops for their clients. If you feel like your agent isn’t working hard enough for you, find one who will.
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