Real Estate Information

Welcome to your home improvement New Year’s Resolutions. Based on the most-common top-ten resolutions gathered by “Time” magazine, USA.gov, and other sources, we’ve put together an inspiring list of home management goals. Ready for 2012? Here it comes:

1. Lose weight (cut energy use)
2. Quit smoking (purify indoor air)
3. Get out of debt (budget for improvements)
4. Learn something new (educate yourself on home finances)
5. Get organized (de-clutter)
6. Volunteer (support your community)
7. Drink less (curb home water use)
8. Spend more time with the family (share home improvement projects)
9. Get fit (exercise your DIY skills)
10. Be less stressed (use maintenance-free materials)

1. Lose Weight (cut energy use)

\Your house is a glutton, gobbling energy like a starved elephant. Gain control by trimming energy use.

A good place to start is your HVAC ductwork. Ducts are notorious energy-wasters, leaking your heating and cooling air through holes and loose connections.

Sealing and insulating your ductwork can improve the efficiency of your heating and cooling system by as much as 20%, saving you $200 per year or more, according to Energy Star. You’ll make your home more comfortable, and a more-efficient system helps extend the life of your furnace, air conditioner, or heat pump.

Because ducts are usually hidden inside walls, ceilings, attics, and crawl spaces, sealing and insulating them may be a difficult and time-consuming DIY job. If you can’t reach all your ducts, concentrate on those that are accessible.

Use duct sealant — called mastic — or metal-backed tape to seal the seams, holes, and connections. Don’t use the confusingly named “duct tape,” which won’t provide a permanent solution. Be sure to seal connections at vents and floor registers — these are likely places for leaks to occur.

After sealing your ducts, wrap them in fiberglass insulation. Most hardware stores and home improvement centers have insulation wrap products made for ducts.

A professional heating and cooling contractor will charge $1,000 to $4,000 for the work, including materials, depending on the size of your home and accessibility to your ducts.

Insulating your ductwork may qualify for a rebate from your state or local municipality. Check the Database of State Incentives for Renewables & Efficiency.

2. Quit Smoking (purify indoor air)

The EPA lists indoor air quality as one of the top environmental health hazards. That’s because indoor air is full of potential contaminants, such as dust, mold spores, pollen, and viruses. The problem is at its worst during winter, when windows and doors are shut tight.

You can help eliminate harmful lung irritants in your home with these maintenance and improvement tips:

Maintain your HVAC system and change furnace filters regularly. Use the highest-quality filters you can afford ($10-$20) and change every month during peak heating and cooling seasons.

Keep indoor air pristine by using low-VOC paints when you remodel your rooms.

Use localized ventilation in kitchens and bathrooms to remove cooking fumes, smoke, and excess humidity. Make sure ventilation systems exhaust air to the outside of your home, rather than your attic crawl space or between ceiling joists.

In fireplaces and wood stoves, burn real firewood rather than pressed wood products that may contain formaldehyde.

Use a portable air cleaner to help cleanse the air in single rooms. Portable air cleaner types include mechanical air filters, electrostatic precipitators, ion generators, and ultraviolet lamps.

Note that each type of air cleaner is designed to remove specific pollutants; no portable air cleaner removes all pollutants. Be wary of air cleaners that generate ozone — a known lung irritant.

3. Get out of Debt (budget for improvements)

Creating a yearly budget for home improvement and maintenance helps prevent overspending, and encourages you to put aside money for major replacements — such as new roofing or a kitchen appliance — that come up every few years.

Protect your home finances by knowing how much you’ll probably spend each year. Data from the U.S. Census Bureau says that average annual maintenance and home improvement expenditures are about $3,300 per household. Leading lending institutions agree; HSH Associates and LendingTree.com place average costs of yearly maintenance and upkeep at 1% to 3% of your home’s initial price.

That means the owner of a $250,000 home should budget between $2,500 to $7,500 each year for upkeep and replacements. Have extra at the end of the year? Save it for more costly upkeep and replacement items down the road — you’ll probably need it then.

4. Learn something new (educate yourself on home finances)

Want a little education that goes a long way toward your financial health? Learning how to improve your insurance score can help you keep your home insurance premiums from getting out of hand. Here are a couple of easy lessons:

• Letting credit card debt build up is a black mark on your credit history — and an indicator that you’re likely to file an insurance claim. The more claims, the higher risk you appear to be to insurance agencies, which lowers your insurance score. Low scores mean higher rates for home insurance.

• Keep payments on loans up-to-date. Don’t miss payment deadlines; if you do, notify your lender that your payment is forthcoming. Delinquent payments signal insurers that you can’t manage your money — resulting in a lower insurance score.

Need some Home Owner 101? Any time is a good time to bone up on basic home maintenance skills.

5. Get organized (de-clutter)

No excuses — that clutter has got to go! Start by creating more storage space so you can stash stuff easily.

At wit’s end for new storage space? You’ve probably got storage solutions you didn’t know you had. Put up a high shelf between the walls of a narrow hallway, and tuck storage in out-of-the-way nooks, such as under-stairs spaces and between wall studs.

If your small home is pinched for space, don’t despair: There’s still room for storage. Shoe organizers ($20) do more than hold shoes — use them to store keys, notepads, and cell phones. At about $300 per drawer, have a cabinetmaker install drawers in the toe kicks of your kitchen cabinets for napkins, cookie sheets, and appliance manuals.

6. Volunteer (support your community)

In a world that often seems topsy-turvy, a little altruism helps restore balance. You can volunteer your time and energy to help others, and at the same time help promote safety and preserve the value of your neighborhood.

A neighborhood watch program fosters a sense of community and helps stop crime. Set up a meeting with neighbors to discuss concerns and priorities. Gather facts to present at the meeting: What kinds of crimes happen nearby? Are there patterns? Ask a local police representative to come to your first meeting to answer questions.

Start a community garden. Bring together neighbors for bonding, eating healthier, and saving on groceries. A 4-by-16-foot raised bed garden plot provides $200-$600 worth of food annually. As the organizer, you can expect to spend 20-30 per month for six months getting your community garden going.

7. Drink less (curb home water use)

Our houses are thirsty. The average household uses about 400 gallons of water each day, or almost $700 per year in water and sewer costs. Making a few simple changes, such as installing EPA-certified WaterSense products, could trim up to $200 from your annual water bill. Add to that energy savings from reduced costs to heat water, and your yearly savings could reach $300 or more per year.

Low-flow showerheads include technology that reduces the amount of flow yet keeps pressure up, resulting in shower streams that are powerful and satisfying. They cost from $10 to $150, and installation is an easy DIY job that takes only minutes.

Replacing your pre-1994, water-guzzling toilet with a low-flow toilet prevents $90 worth of water costs from being flushed away. HE (high-efficiency) toilets use compressed air and electric water pumps to flush with less than 1 gallon of water; older models required up to 8 gallons.

8. Spend more time with family (share home improvement projects)

Spending quality time with your family takes quality planning — but it’s worth the effort. Rally your family around these fun-to-do projects to make every minute count:

Plant a tree. Pile the clan into the family wagon and shop for a tree that’ll become a new member of your family. Have your kids name it and help care for it. You might have to dig the hole, but everyone can take turns adding mulch and watering it. A bonus: planted where its shade will protect your house from summer sun, a $50-$100 tree cuts your yearly energy bill by $100 to $250.

Make a home emergency preparedness kit. Make a scavenger hunt of gathering up all the necessary supplies, such as flashlights, toilet paper, and duct tape, and assemble your kit during an evening together. It’s a good, non-scary way to teach small children about what to do if there’s an emergency.

9. Get fit (exercise your DIY skills)

Looking to trim a little of the old spare tire? Routine home maintenance and repair is a double win — you’ll burn calories while keeping your house in tip-top shape. Try these essential fix-ups and improvements from CalorieLab:

• Building a fence: 340 calories per hour

• Caulking windows and doors: 280 calories per hour

• Cleaning rain gutters: 272 calories per hour

• Installing ceramic tile: 238 calories per hour

• Interior painting: 136 calories per hour

• Chopping firewood: 340 calories per hour

• Mowing the lawn: 306 calories per hour

• Planting shrubs: 238 calories per hour

• General gardening: 204 calories per hour

10. Be less stressed (use maintenance-free materials)

If you want less to worry about, install low-maintenance materials and products designed for durability and long, trouble-free service.

Fiber-cement siding lasts for 50 years or more. It’s weather-proof, and resists dents, fire, insects, and rot. It’s exceptionally stable, even with changes in humidity, so that paint jobs last longer than on wood and wood-fiber siding products.

LED bulbs last a phenomenal 20,000 to 50,000 hours between changes, or about 18 to 46 years when used for 3 hours each day. Although the initial cost is high (about $40 per bulb), LED bulbs pay for themselves in energy savings in about 10 years.

Classic ceramic tile comes in many colors and textures, but at its heart it’s incredibly tough, stain-resistant, and impervious to moisture. You can count on ceramic tile’s good looks to last for decades on floors and walls without needing repair or replacement.

Deadly Mistake Buyers make when purchasing a home:

MISTAKE #2
Making an offer on a home without being pre-qualified. 

Here's how to avoid it
Pre-qualification will make your life easier - take the time to talk with bank or mortgage representatives. Their specific questions with regard to income, debt and other factors will help you determine the price range that you can afford. It is one of the most important steps on the path to home ownership.  

Deadly Mistake Buyers make when purchasing a home:

MISTAKE #1
Choosing a real estate agent who is not committed to forming a strong business relationship with you. 

Here's how to avoid it
Making a connection with the right real estate agent is crucial. Choose a professional who is dedicated to serving your needs - before, during and after the sale. 

We value our clients and to show our graditude for helping us be the best real estate company in Erie County – we offered FREE Apple and Pumpkin pies to our valued clients. Clients received an invitation to reserve the pies and picked them up at our main office on Peach Monday and Tuesday. This year we gave out over 140 pies!

Thank you again and we hope you have a blessed Thanksgiving Holiday!

If you would like to work with one of our agents, please call 814.866.8840 today!

Your safety is your responsibility.

• Tell someone where you will be hunting.
• Avoid outings alone. If you go alone, be extra careful and hunt in familiar areas.
• Dress properly and be prepared for the worst possible conditions. Protect against hypothermia.
• Check the weather forecast before going into the woods.
• Identify your target before shooting.
• Check hunting equipment before and after each outing, and maintain it properly. Familiarize yourself with its operation before using it in the field.
• Law prohibits the consumption of alcohol in public places and open containers of alcohol.
• Be wary of permanent treestands made from plywood and pine 2x4s. It is unwise to trust these types of tree stands without checking their structural integrity ahead of time. Falling limbs, wind and moisture weaken permanent treestands over time and make them unsafe.
• Always wear a safety harness when hunting from a treestand. Each season, hunters get injured, some seriously, when they fall asleep and take a dive off their treestands, or slip and fall when climbing in or out of the tree.
• Be sure of your target before you put your finger on the trigger. Most fatalities are the result of mistaken-for-game accidents.
• Don't trespass on your neighbor, and if you see an unfamiliar hunter in your area, escort him (or her) to your property boundary. Never wave to get another hunter's attention, speak loudly in a clear voice.
• Never cross a fence, ride a 4-wheeler or climb a tree with a loaded rifle. Use a tow rope to pull your rifle up and down from your treestand.
• Be careful when dragging out your deer. Each year, hunters die from heart attacks as a result of overexertion. Get help if you can't handle the chore by yourself. Go slow and take your time.
• Tell someone where you are hunting and when you expect to be home if you are hunting alone. Carrying a cell phone is a good safety precaution if you are hunting alone.
• Never carry a loaded rifle in your truck or car, and be sure to unload your rifle when you get back to camp or when you stop hunting for the day. Assume that every rifle in camp is loaded unless the action is open and you can see that it's safe to handle.

You can also find more information on the Pennsylvania Game Commission website.

What does your future home look like? Where is it located? As you hunt down your dream home, consult this list to evaluate properties and keep your priorities top of mind.

Neighborhoods

What neighborhoods do you prefer?

Schools

What school systems do you want to be near?

Transportation

How close must the home be to these amenities:

• Public transportation
• Airport
• Expressway
• Neighborhood shopping
• Schools
• Other

Home Style

• What architectural style(s) of homes do you prefer?
• Do you want to buy a home, condominium, or townhome?
• Would you like a one-story or two-story home?
• How many bedrooms must your new home have?
• How many bathrooms must your new home have?

Home Condition

• Do you prefer a new home or an existing home?
• If you’re looking for an existing home, how old of a home would you consider?
• How much repair or renovation would you be willing to do?
• Do you have special needs that your home must meet?

Home Features

Please circle one of the choices: Must Have, Would Like, Willing to Compromise, Not Important

Other notes:

Not only does owning a home give you a haven for yourself and your family, it also makes great financial sense because of the tax benefits — which you can’t take advantage of when paying rent.

The following calculation assumes a 28 percent income tax bracket. If your bracket is higher, your savings will be, too. Based on your current rent, use this calculation to figure out how much mortgage you can afford.

Rent: _________________________

Multiplier: x 1.32

Mortgage payment: _________________________

Because of tax deductions, you can make a mortgage payment — including taxes and insurance — that is approximately one-third larger than your current rent payment and end up with the same amount of income.

For more help, use Fannie Mae’s online mortgage calculators.

• W-2 forms — or business tax return forms if you're self-employed — for the last two or three years for every person signing the loan.
• Copies of at least one pay stub for each person signing the loan.
• Account numbers of all your credit cards and the amounts for any outstanding balances.
• Copies of two to four months of bank or credit union statements for both checking and savings accounts.
• Lender, loan number, and amount owed on other installment loans, such as student loans and car loans.
• Addresses where you’ve lived for the last five to seven years, with names of landlords if appropriate.
• Copies of brokerage account statements for two to four months, as well as a list of any other major assets of value, such as a boat, RV, or stocks or bonds not held in a brokerage account.
• Copies of your most recent 401(k) or other retirement account statement.
• Documentation to verify additional income, such as child support or a pension.
• Copies of personal tax forms for the last two to three years.

The first step in getting yourself in financial shape to buy a home is to know exactly how much money comes in and how much goes out. Use this worksheet to list your income and expenses below.

Credit scores, along with your overall income and debt, are big factors in determining whether you’ll qualify for a loan and what your loan terms will be. So, keep your credit score high by doing the following:

1. Check for and correct any errors in your credit report. Mistakes happen, and you could be paying for someone else’s poor financial management.
2. Pay down credit card bills. If possible, pay off the entire balance every month. Transferring credit card debt from one card to another could lower your score.
3. Don’t charge your credit cards to the maximum limit.
4. Wait 12 months after credit difficulties to apply for a mortgage. You’re penalized less for problems after a year.
5. Don’t order items for your new home on credit — such as appliances and furniture — until after the loan is approved. The amounts will add to your debt.
6. Don’t open new credit card accounts before applying for a mortgage. Too much available credit can lower your score.
7. Shop for mortgage rates all at once. Too many credit applications can lower your score, but multiple inquiries from the same type of lender are counted as one inquiry if submitted over a short period of time.
8. Avoid finance companies. Even if you pay the loan on time, the interest is high and it will probably be considered a sign of poor credit management.

This information is copyrighted by the Fannie Mae Foundation and is used with permission of the Fannie Mae Foundation. To obtain a complete copy of the publication, Knowing and Understanding Your Credit, visit www.goodmortgage.com.