Fannie Mae Recommends Using A Realtor

I read a lot of real estate related news feeds every day, but I’ll be the first to admit that it’s not often I visit FNMA.  Under the ‘Know Your Options’ portion of the Fannie Mae web site is this little gem.

Decide How to List

Select how you'll market and list the home (e.g., with a real estate agent or for sale by owner). There are pros and cons to each, but unless you are experienced at selling homes, it usually makes financial sense to get professional help—homes sold by agents typically sell at a higher price and spend less time on the market. An agent will also help you determine the best pricing for the house, they'll market the home, and they'll be your advocate throughout the process. (emphasis is mine)

Yes, as Realtors we’ve known this for a long time but many consumers remain skeptical. And I can understand the reluctance in some instances, but we do make a difference in both time and money for our clients. Are you curious about the value of your home?  Give me a call for a complete market analysis.

House Goes For $100,000 More – With Cat

This report is just so-o-o odd.  An Australian family received an offer on their home with a provision to raise it by U.S. $100,000 if they could keep the family’s pet cat. The buyer’s child took such a liking to Tiffany the cat that they decided to make this unusual offer.  The home’s price was U.S. $1.9 million (with cat).

No word on the seller’s response. I hope the inspection goes well and there’s not an appraisal issue.  Tiffany's picture was not available.

Source: yahoo news

Plumbing Leaks And Water Bills

Plumbing leaks can hit your water bills – hard. I’ve lived in homes serviced by wells and municipal water systems.  Wells are great, except when the power goes out.  Then you have no water. Currently I’m on a municipal system and still use a water softener, so the two are not mutually exclusive.

If you have a slow leak or a toilet that runs due to a bad flapper valve or some other minor problem, letting it run can seriously affect your water bill.  In my area, for every unit of water that I use, the related sewer charge is double the price of the water.  A small leak can add up to big bucks in a short time.

I had a client with a functioning but unused toilet in the basement.  The new purchasers did their walk through and apparently somebody used that toilet after the owner had moved out but before closing.  The flapper didn’t seal all the way, causing a continuous flow of water.  As luck would have it, closing was delayed for a couple of days and when the final water bill came, it was a doozy! Over $600!

Many of us know somebody that went away on vacation, or for the winter, and experienced a water leak. Usually these are more catastrophic than a large utility bill, but here’s a device that can help you.  It’s called a flow sensor and it can be hooked up to a specific line or fixture, or it can be installed on the main line to shut off all water to your home.  For a reasonable investment (under a few hundred dollars, parts and labor) it gives you an added layer of security.

Many alarm companies also provide water sensors that detect standing water on the floor, usually in the basement. Just like an intruder alarm, you’ll get a call, text or email about the problem if the sensor trips.  There are also stand-alone models that you can install yourself should a pipe burst in the middle of the night.

The linked article gives some other great tips on how to proactively prevent plumbing leaks.  

image courtesy of gualberto107/freedigitalphotos.net

Secretary of State Online Services – Great For Seniors

Michigan seniors wintering in the warmer Southern states may have the dilemma of renewing their license plate tabs or driver’s licenses while away.  If you’re eligible to renew plate tabs online, did you know you can do that up to 6 months in advance?  Likewise, driver’s licenses or State ID Cards can be renewed up to a year in advance. Lose your ID while away? You can even request a replacement online.  

My experience has been that I get plate tabs in 7-10 days, and some years it has been as short as 4 business days. Take advantage of the Michigan Secretary of State Online Services at https://onlineservices.michigan.gov/ExpressSOS

I’ve Got A Fireplace! What Now?

One of the home features that stays popular is a fireplace.  I’ll leave it to another post to talk about the different types of fireplaces – natural (wood burning), gas (vented and vent free).  There are also safety issues, and regular maintenance on natural fireplaces is important.  Let’s assume that you have a properly maintained natural fireplace, the colder weather is coming, but you need one thing – firewood.

Of course, if you have a large enough lot, you’ll harvest some trees now and then and that will help you with your supply.  Storm damage, age and disease will contribute to your firewood pile.  If you’re in a more typical subdivision and lacking trees you can always buy firewood.  A ‘cord’ of firewood is 8 ft long by 4 ft high and 4 ft deep.  A ‘face cord’ is 8 ft long by 4 ft high and around 16 inches deep, or one-third of a cord. 

A standard pickup truck bed will hold from one-fifth to one-half a cord of wood, depending on how it’s split and stacked.  If you are buying anything but a full ‘cord’ be careful about the price you pay.  Face cords go from $50-$75 each. At $75 per face cord, that would be (3 face cords x $75) around $225 per full cord.

If you have experience with a chainsaw, you can harvest wood from Michigan State land with a permit from the Department of Natural Resources (DNR).  The permit costs $20 and you are allowed to take up to 5 full cords of wood.  There are restrictions, of course.  The wood must be for personal use only (NO RESALE), it has to be dead wood (think of it as “pre-dried”), down within 200 feet of a road, and only one permit per household per year.  Additionally, you must use the permit within 90 days of purchase and the permit period is only for the period between Apr 1^st and December 31^st of each year.

For information on the State of Michigan’s fuelwood program, see the DNR page at http://goo.gl/CtMZMa. This page has a permit application and maps of areas that are eligible for the program, basically the upper portion of our lower peninsula.  If you plan on taking multiple cords at one time, be prepared for a long day – or even a weekend – of work.  And make sure you have a large enough truck to do the transporting.  You may find out that buying full cords retail is more cost effective.

There are certain types of wood that you should not burn in your fireplace, and it should be dry (aged). For example, conifer trees (pines, etc), and painted or treated woods are not recommended for fireplaces. Remember, it’s a fireplace, not an incinerator.

Whatever your choice, be smart.  Have your chimney inspected and swept. I have friends that have dramatically reduced their heat bills by using wood burning stoves, fireplaces and inserts.  I currently have a vented natural gas fireplace.  While it does kick out some BTU’s it is really more of an aesthetic thing.  And we love the remote control for it, too, so it’s very convenient, but it’s not really a main source of heat.

image courtesy artur84/freedigitalphotos.net