Decisions When Replacing a Roof

The National Roofing Contractors Association says if you’ve already fixed a few leaks and replaced missing shingles in recent years, it’s probably time to put on a new roof. If the shingles are bare, curling, cracking or mossy, start now.

Get estimates, check references

Since you’ll be spending $5,000 to $10,000 or more, be sure to hire the right person or company. Get three estimates and check references.
Have the roofer agree to remove only as much roofing at one time as he can replace during that day.

What about tear-off?

If you already have two or three layers of old roofing, building codes require you to strip them off, adding $1,000 or more to the job. If a single layer has been on the roof for many years, it can be worth what it costs to remove it so the roofer can repair decking and worn flashing.
A rubber membrane called ice and water shield can be installed to prevent leaks when gutters freeze up.

Rent a dumpster

Unless you want the labor and expense of covering the entire area around your home with tarps and plywood, you’ll need a roll-off dumpster. As a rule of thumb, 8-10 squares of shingles weigh about 1 ton. Shingles from a single residential roof will fit in a 10 cubic yard roll-off dumpster.
As the roofer tears off shingles, the old decking and nails, they all go to a dumpster beside the house.

Selecting shingles

You’ll pay more for 50-year shingles than for 25-year, but they last longer. Architectural shingles cost a little more, but they add beauty to any building, say advisors at Money magazine.

Home Sellers Get a Few Breaks

The numbers are starting to add up for home sellers (and buyers). Statistics show consumer confidence is on the rise and that could be good for the economy.

At the same time, low mortgage interest rates are making home ownership a reality for many people.

When you add up the factors that are in a seller’s favor, it could finally be time to put up the “For Sale” sign.

If you plan to sell and buy another residence, this might be the very best time to do it. In some areas of the country, sellers are receiving multiple competing offers for their homes. In some areas, you might get a little less for your home than you want, but you’ll also pay less for your dream home.

Experts at wealthpilgrim.com give a comparison of trade-up home values. Say your current home is worth $250,000 and you want to buy one that costs $500,000. If you wait a few years to complete the deal, your present home might go for $25,000 more, but your new home will cost $50,000 more. And today’s super-low interest rates might not be there when you trade up.

There are four key elements that go into a successful home sale:

* Find a realtor who has the experience and the work ethic to advertise, negotiate, use technology and handle all facets of the sale.

* Price the property competitively. Your real estate agent will make a competitive market analysis (CMA), considering prices and features of recently sold homes in your area. He or she will help you zero in on the best asking price.

* As the seller, you need to do your part by presenting a home that is attractive, clean and uncluttered. Make any necessary repairs so the home is in “move into” condition.

* Consider your home’s curb appeal. Cut the grass, place pots of flowers by the door and make sure the windows shine.

Register For Your Down Payment

Many newlywed couples face a daunting down payment soon after marriage. This has gotten only more difficult as larger down payments are required since the reemergence of conservative underwriting standards.

A recent article in the Scotsman Guide discussed a new trend at weddings that can ease the financial burden: down payment registries.

“Homebuyers hoping to avoid the typical barrage of plates, glasses and cutlery now have a choice,” explained the article. Couples can learn about down payment registries from their loan officers and using that money as a gift fund for their new home.

Websites allowing secure payments for wedding guests to contribute is the common method, as down payment registries online can allow guests to see the homes a couple likes and feel more involved in the process, as opposed to just sending cash.

For more information about these registries, read the full Scotsman Guide article here and talk to your mortgage professional about it.

Humanitarian Help for Haiti

Christine Meserve, a loan officer at the Princeton corporate office, has spent the last fifteen years doing humanitarian work from Peru to Africa, and dedicated much of her time over the recent years to those suffering in Haiti.

As the Team Coordinator for The Flying Doctors International Chapter, she is responsible for 90% of the fund raising, purchasing and preparing for travel all of the necessary medications, pharmacy manager in country, among other responsibilities. In the years since the devastating Haitian earth­quake, Christine and her organization have been setting up remote medical clinics deep in the mountains and jungles of the country, where peo­ple have little access to medical care of any kind.

This past March, Christine visited two villages that had never seen a doctor before. The workload is intense, with over 2000 patients seen over a five day period, but she always feels that she receives more from this work than she gives.

“It is exhausting, challenging, heartbreaking, and I am grateful and honored to be a part of it,” she said.

Christine is especially passionate about medical humanitarian aid in developing countries, and she advises those looking to get involved to choose an organization that caters to your passions as well. There are likely already outstanding organizations you can join that have the same goals as you – improving education, the environment, and so on.

“I love the people in these countries, the inspiring individuals I work with, and the remote and chal­lenging nature of the locations that we travel to,” said Christine. “The clinics are real, raw, and the gratitude that these patients genuinely have is humbling. Their needs are simply greater than anything we can imagine here. Last year we took over 1600 pounds of medical supplies alone.”

Now Cheaper To Buy Than To Rent

It is now considerably cheaper to own a home than to rent that same home, something unheard of since 2008.

This and other promising information about the housing market was recently released by Harvard in their annual “State of the Nation’s Housing,” an in-depth study performed by The Joint Center for Housing Studies at Harvard University.

Because of historically low mortgage rates and low home prices post-recession, it is a perfect time to buy.

On the other hand, rent prices are soaring, especially in the Bay Area. According to Trulia, San Francisco and Oakland saw the biggest jumps in rent in the United States over the last year, with increases of 14.7 percent and 11.2 percent, respectively.

“With rents up, home prices sharply down, and mortgage interest rates at record lows, mortgage costs relative to monthly rents haven’t been this favorable since the early 1970s,” said Eric S. Belsky, managing director for the Joint Center for Housing Studies at Harvard.

The report also noted that today, mortgage payments for the median priced US home are roughly half of what they were in 1990. The study showed that mortgage payments are now 23% less than rent payments for the median priced home.

This means that it is a fantastic time to be a home buyer, and to get off of the fence if you’ve been waiting for the market to turn around.

Take a look at the entire Harvard study here:

http://www.jchs.harvard.edu/research/state_nations_housing.

New-Home Sales Rise 7.6%

New-home sales got a boost in May, with a 7.6% rise in single-family homes, the highest level since April 2010. They are also selling at the quickest rate in two years, reported the Commerce Department.

Prices of new homes are also on the rise, with a 5.6% increase over year-ago levels, for a median price of $234,500.

According to David Crowe, National Association of Home Builders’ chief economist, “May’s sales report is a welcome sign that the market has returned to a more solid growth path following lackluster reports in March and April, and is in keeping with our expectations for continued, steady improvement through the end of this year.”

However, full recovery is still being held back by low appraisals and lack of available credit, said Crowe.

To read more, check out Realtor Magazine’s article here.

Buying Short Sales or Foreclosures

There’s no question that negotiating the short sales or a foreclosure can be time-consuming and frustrating. It can take months. But if you’re patient and willing to do the work, your reward will be a great house at a bargain price.

Short sales

For a distressed property, you could be dealing with third parties, each with their own agenda and process rules.

On short sales, banks will price a home close to the market value, but they are often willing to take less to avoid a costly foreclosure. The average short sale in the past year has sold at14 percent off the list price, compared with a 7 percent discount for foreclosure and regular sales.

Dealing for a foreclosure

Because banks are eager to unload properties they own, they list the home at a price at which they think it will sell quickly. These properties are often bought for cash by investors. In California, 31 percent of recent deals were by cash, according to Money magazine.

In some cases, the bank that handles the foreclosure may not own the loan. During the real estate boom years, many loans were sold off to other investors. In that case, the bank who owns the property has to consider the amount investors who own the loan are willing to accept.

Wells Fargo short sale and foreclosure servicing department says, on loans insured by the Federal Housing Administration, lenders can accept no less than 88 percent of appraised fair market value in the first 30 days. That declines to 84 percent after 60 days.

How to make an offer

In deciding what to bid on a foreclosure or short sale, remember that banks aren’t interest in making several counteroffers, though they may come back to you once or twice. In weeks to come, you could resubmit the offer and it might be accepted.

Your initial bid should be 10 percent to 20 percent below the list price.