| |
Katrina Assist
Categories
Real Estate for Good
Seller's News
Buyer's News
Sales Information Charts
Real Estate True Life Stories
Nashville Community News
Go green in a day? No way!
Posted at 6:42 AM, May. 31, 2008
I did my normal thing yesterday to start the day. I turned on the shower. Was it my imagination, or was there no hot water? It was NOT my imagination. There was NO hot water.
How than this be, I thought. The water heater is not that old. But then I remembered that it is eleven years old. How time flies!
What are we going to do? I called the gas company who installed it for us originally. Their service man came out and confirmed my suspicion, that the heater is shot. He tells me that it will be a couple of days before they can install a new one, and I tell him to go ahead and order it. We have got to have hot water. I need to have clean hair, look as good as possible for my real estate public! Also, there is a load of dirty, ‘quick rinsed’ dishes in the dishwasher!
Having traveled to India and China recently, I was impressed by their energy efficient ways of heating water. A couple of very efficient ways we found in India, which are not options for me, are -1- have NO hot water in the showers, -2- intermittent hot water, -3- heating water in the teapot and mixing with cold water in a bucket for a bucket bath. That is not what I want. I am a spoiled American and I like hot water.
But we saw one brilliant method of heating water, I thought. A friend’s apartment in India had a water heater in the bathroom, and he pushed the button to turn it on 10 minutes before his shower and he had just enough hot water for the shower. I thought then how nice it would be nice to have small hot water heaters installed at each point of hot water usage in our house.
How would I install such a system in my home? And how quickly? How expensive would it be? Is there even that equipment sold in the Unites States? Truth is, I don’t know. Truth is, I should have been trying to find out several months ago. I knew, somewhere in my subconscious that the water heater was going to go out at some point.
But now I am between a rock and a hard place. I need hot water now. I am going to call the gas company and ask what kind of water heater they ordered, and see how energy efficient it is, and if there are any other options. Maybe that will soothe my conscious a little that I didn’t plan better.
Copyright 2008, Sarah Rummage
A Helpful Airline Employee
Posted at 8:20 AM, Feb. 15, 2008
We like to write about life, not just real estate. I want to praise a nice woman at the United Airlines ticket counter in Nashville, TN.
A couple of weeks ago, John had gotten up at 4:00 a.m. to catch a 6:30 a.m. plane to Wausau, WI. He was going to park the car at the airport, so I stayed in bed and he left the house.
But then I turned on the early morning TV news in the bedroom, and heard that a truck had turned over on one route to the airport. Its load was spread all over the road and this route was blocked.
I waited a few minutes, and then decided to call John on his cell phone to see if he has taken this blocked route or took the other route. I heard his phone ring in the kitchen where he charges it. I thought, ‘uh, oh.’ He is going to be gone for 3 days and has no cell phone. We HAVE to have our phones, don’t we? I wouldn’t be able to stay in touch, and he would miss business calls.
So I pondered for a few minutes how to get the phone to him, how to meet him at the airport and get it through security, how to let him know I am bringing it.
I tried to find the name of the ‘park and ride’ company he uses to see if I could catch him, but realized it has recently changed its name. I called the Country Inn near it, but they didn’t know the name of the parking lot either. I called United Airlines reservation and they could not promise that the counter person at the airport could get the phone to him.
So, what the hay, I am wide awake anyway. I decided to give it a shot and take the phone to the airport. I got there 30 minutes before the plane was to leave, and luckily the counter wasn’t very busy. I asked if there is any way they could get the phone to John, and this nice woman took it, like it was no big deal, and off she went. Another woman told me to sit down and wait, in case they couldn’t get it to him. I waited about 30 minutes and I knew they must have found him. Otherwise, surely the woman would be back with the phone. I was about to leave, but then the woman who took it came back to the counter. I asked her about it, and she said, ‘Oh yeah, I gave it to him.’ I had a tip for her but she wouldn’t take it.
Now wasn’t that nice of her to hand deliver it? I guess she felt sympathy for this woman, with no makeup, and hair sticking up all over her head who needed a favor. It made my day/week. I wished a blessing on that nice woman.
A Safe School Year In Nashville
Posted at 5:34 PM, Aug. 10, 2007
I received this memo from Metro Nashville Board of Education today. School starts August 13, 2007. And there is a new dress code (standard attire) for Metro Nashville Public Schools students. Lots of changes! Everyone have a great year. Click here for the school calendar for 2007-2008.
More than 70 uniformed Metro Nashville police officers and supervisors dedicated to ensuring a safe learning environment are ready to join Nashville’s public middle and high school students when they return to the classroom on Monday.
Of the city’s 15 high schools, 11 will have two officers assigned to each building (Hillwood, Hillsboro, Pearl-Cohn, Overton, Stratford, Maplewood, McGavock, Antioch, Glencliff, Hunters Lane and Whites Creek). Four will have one officer assigned to each building (Hume Fogg, Martin Luther King, Nashville School of the Arts and Antioch 9th Grade Annex).
The city’s 37 middle schools will each have one officer permanently assigned. In addition to responding to any emergencies that might arise, most middle school officers have been cross-trained to teach the GREAT (Gang Resistance Education & Training) and DARE (Drug Abuse Resistance Education) curriculums. Those officers will be spending a good deal of time in the classroom teaching and interacting with students.
In addition to the officers in school buildings each day, teams of precinct-based Flex officers will, from time to time, conduct truancy sweeps to help persuade students to remain in class and not sneak away from campuses during the school day.
In addition to police officers, 194 crossing guards and supervisors will be on duty Monday during school arrival and departure times. School crossing guards work to ensure the safety of children at street corners and intersections surrounding 105 Davidson County schools. Motorists are strongly encouraged to watch for and obey the 15 mph speed limit in school zones.
*Applications are always being accepted from persons interested in being a school crossing guard. The pay is $9.41 per hour. Benefits include great working hours, furnished uniforms & equipment, holiday pay and a bonus for those guards who complete the school year. Persons must be at least 21 years of age to apply. Those interested in employment as a school crossing guard are encouraged to contact 862-7752 for application information.
Lender Help to Avoid Foreclosure
Posted at 9:19 AM, Sep. 18, 2006
There are some real estate attorneys who present the mortgage or the deed of trust to the buyers at the closing table to sign, and say "this is a long document that you can spend an hour reading if you want to, but basically it says that if you don't pay, you don't stay."
You have to pay your mortgage to get to keep your house.
Lenders don't generally want to foreclose on you. They will if they have to, because they have no choice.
But if you communicate with them, and tell them your situation, sometimes they can be a little more lenient and work out something to help you keep your house, or move under a little less stress.
Some of the things that a Lender may do, but not necessarily (check with your particular lender), are:
Special forbearance--If you have recently had an unexpected change in income or expenses, you lender may be able to work out a new repayment plan.
Mortgage modification--The lender may change the interest rate, or put the skipped payments on the back of the loan.
Short sale--The lender may agree to sell the property for less than is owed. This requires a lot of paperwork on your part, and is not easily done, but is possible.
Deed in Lieu of Foreclosure--You voluntarily give back the home to the lender. You need permission from the lender to do this.
Cash for Keys--Sometimes lenders will give you cash to make utility and rent deposits to move out of the home. In exchange, you have to leave the property 'broom clean,' and there should be no damage to the home.
Again, communicate with your lender and explain why you are late on your payments. Ask what can be worked out.
If Foreclosure Looms
Posted at 2:45 PM, Sep. 14, 2006
Moving into a new home is so exciting! Even if it is an older home which needs work and is not brand new, it is exciting. And sometimes we stretch to make the payment to get the sparkling, new home we love, or for the home that is in a wonderful school district, or for the one with enough bedrooms for all the kids.
But if a buyer has stretched a little too much, sometimes a few months or a few years down the road, when the mortgage payment is due on the first of the month , there is not enough money in the bank account to pay it, and the payments start to be sent off later and later in the month, until there is not one payment, but TWO payments are due. And it may be difficult or impossible to catch up.
This can be due to unforeseen bills due to medical treatments, repairs on house or car, loss of a job, loss of a big contract by a self-employed person, bad money management, and for numerous other reasons.
Usually the mortgage company will start calling, sometimes as early as the 16th day after the payment is due. It is never pleasant to have bill collectors call you. And it may be tempting to ignore them...and not answer the phone. And you may be thinking that 'your ship will come in' and you will get money and be able to make up the payments. Can you spell D-E-N-I-A-L?
The brutal truth is that if you miss a mortgage payment, you may lose your home. The lender can foreclose, take your home away from you, and you will have to find a new place to live. And that is not pleasant, because your new lender/landlord will want a reference from the old one, and that will likely be impossible, when you have left your last home under bad circumstances. And you will have to start all over with rent deposits and new utilities on the new home.
What can you do to avoid losing your home? Read all letters from your lender. Contact your lender and explain the situation. Don't hide out! That only makes it worse!
The lender may be able to use some creative methods to help you keep your home. But you have to communicate with them. And you can't make empty promises to them. You have got to deliver what you promise, or tell them why you were unable to deliver.
Our next post will have some ways that some lenders work with an owner who is behind on payments.
Link to News Article About Nashville Census Information
Posted at 6:56 AM, Sep. 2, 2006
E. Thomas Wood has done the work, and studied the census records, and gives us a rundown on Nashville and Middle Tennessee population statistics. http://www.nashvillepost.com/news/2006/8/29/who_are_your_people_ask_the_census_bureau
Sellers Orders An Inspection
Posted at 3:28 PM, Aug. 10, 2006
In the past, it has been the home buyer who arranges a home inspection. But now, some home sellers have their home inspected before putting it on the market. A licensed inspector is hired to inspect the home just as he/she would for a buyer after a contract is negotiated.
There are at least two advantages of a seller-initiated inspection. One, the seller learns of any serious defects in the house and can either fix them, or adjust the price accordingly. Two, a potential buyer may feel more comfortable buying a home which has already had an inspection, and which they can review, along with the invoices for work which took care of the problems.
True, some buyers may want to have the property inspected again by their own hired inspector, and the seller and the Realtors® involved will encourage them to do so. But being able to review an inspection of a house that they like, should give a buyer a better idea of which defects (and all houses have them) the buyer can live with and they ones which the CAN"T live with, and then be able to make an educated offer.
When the appraisal comes in too low
Posted at 5:10 AM, Aug. 8, 2006
You, as a buyer, have looked and looked for a home, have finally found it, and have put an offer on it which has been accepted by the seller. Because you have looked at a lot of homes, you feel that the price on this new home is fair, and a price that you are willing to pay.
One of the steps in going to closing with a mortgage lender is getting an appraisal. Also, the contract usually stipulates that the property must appraise for at least the sales/contract amount. What if the appraisal comes in lower than the contract amount?
Usually, if the difference is small, --either-- the seller will agree to just reduce the sales price to the appraised value. Or, the buyer may agree to come up with the difference (if they have the available cash).
Recently, we heard of a case where the seller had bought a new house in a booming area, closed on it, then for whatever reason, decided to put it back on the market at a $80,000 increase in sales price. Even though the neighborhood values were increasing, and the larger community values probably supported the value, the appraisal did not come in for the full sales value.
The seller and buyer did not come to agreement on this. The seller was not willing to lower the price, nor was the buyer willing to come up with extra cash.
Occasionally, but not often, it works out that way.
Doing Good with Real Estate...
Posted at 1:14 PM, Jul. 11, 2006
John Rummage visits with Gabrielle, a little girl at the Philip Hayden Foundaton, Langfang Village, China.
The average property owner and investor might not be aware of all the positive tax options available to them when they decide to sell their real estate. Did you know that you get the biggest tax break at the current year income tax level and in the future at the estate tax level by being like Warren Buffet and giving your property away? You might even create a bigger cash flow by giving the property to a 501 (c) 3 non-government (non-profit) organization than you could create by selling your property outright, but you need tax advice from a knowledgeable tax professional to calculate your cash flow for you.
You can give your property away during your lifetime, like Mr. Buffet did, or at death through your Last Will and Testament, through a Trust or by setting up a Testamentary Gift. You can also give your property away, but retain a Life Estate in the property. A Life Estate gives you possession of the property and a tax deduction. Your tax deduction takes into account the value of your life estate and may be less than if you gave up all rights to the property.
You can sell your property through a bargain sale with a leaseback in conjunction with a 501 (c) 3 non-profit organization and realize positive tax benefits. In this transaction, you negotiate a sales price less than the appraised value. The difference between the sales price to the non-government organization and the appraised value becomes your tax deduction. You get cash; a tax deduction and you can lease your property back at a fair market lease value. Again, you may be able to create a bigger cash flow by selling at a price below fair market value (a bargain sale) because of the tax deduction, than if you sold your property at it’s appraised value. You need the help of a tax professional to make those calculations for you.
When you choose to create a property transaction with a 501 (c) 3 non-government organization you are actually redirecting some of your tax money that would normally go to Washington to a non-profit organization whose purpose is to help solve social problems. It is important for you to find an organization that is willing to do these transactions, but more importantly does a work that you would want to support. The newspapers are full of information about the Buffet transaction, and that newsworthy information translates into good news for all of us. When you combine a purposeful gift with professional tax planning every party to the transaction is a winner. You and your family are winners, the beneficiaries of the non-government organization are winners and America and the world at large are winners. If you do nothing but pay your taxes the only winner is Washington and their programs, which you have little to no control over. By entering into a transaction with a non-government organization you can interface with the people running the non-government organization and make suggestions as to where and how they apply your gift to a need that you and the organization consider important.
My wife and I are both REALTORS® who understand these property transactions. We are also two of the founders of Founding Family Charitable Foundation, a 501c3 non-profit corporation which helps American families by providing financial grants to adopt orphans around the world. That was our foundation’s initial mission, but over time our mission has grown to include providing food, clothing, shelter, education and medical assistance for orphans anywhere around the world where there is legitimate need. Founding Family is currently helping children in America, China, India and Israel.
If you feel comfortable redirecting some of your tax dollars from Washington to helping children and possibly even reducing your capital gains taxes, please contact us by sending an email message to either John or Sarah. Contacting us might be the best thing you ever did for yourself and the children that entered this world with great potential, yet, also in great need.
The following is a list of property transactions that some non-government organizations will help arrange for owners of property.
If you DO need income, or to own or to live in your property:
Testamentary Gifts
Reserve Life Estate
Sale with a Lease Back
Fair Market Sale with a Gift
Bargain Sale
Option to Purchase
If you DO NOT need income, to own, or to live in your property:
Outright Donation
Donation by Will, or Trust
Donation with a Reserved Life income Option for Heirs
Donation with a Lease Back
Donation by Undivided Partial Interest
Installment Sale or Installment Bargain Sale
Donation to establish a Life Income
“Do not go where the path may lead, go instead where there is no path and leave a trail.” Ralph Waldo Emerson
This information is for educational purposes only, and should be verified by your financial professional.
--John Rummage, 615-620-4372
Items that WILL NOT REMAIN with the property....
Posted at 4:05 PM, Jul. 8, 2006
On most Purchase and Sales Agreements for real estate, there is a section to list items which will remain with the property (such as appliances, window treatments, riding lawn mower, etc.) And most buyers put a few items on this line.
But on the line regarding items that will NOT remain, many buyers leave it blank. This line is important too. Look around the property. Do you see anything that is so ugly, so trashy looking that it will be a chore to get rid of it in the days after you move in? For instance, if you are a retired couple with no children, do you really need, and want, that elaborate children's gym set in the back yard? If you don't, ask that it be removed in the purchase contract. Or if you see an attic full of junk, or a crawl space full or junk, ask that these areas be 'broom clean' before closing. Or the above ground pool which has seen much better days, ask that it be removed. Your Realtor® has certainly had experience writing contracts and stipulating what things need to NOT REMAIN, and can make suggestions.
I visited a property today with an attractive wood fence across the back third of the lot. It looked fine until we got behind the fence, and then we saw mattresses, and other junk that the renters in the property had parked there. If we write a contract on this property, I will suggest that the buyer put this junk behind the fence on the ITEMS THAT WILL NOT REMAIN list.
Inspections and Appraisals
Posted at 7:16 AM, Jul. 7, 2006
Inspection vs. appraisal – How do they differ?
An appraisal is a formal assessment of the value of a home or property, required by a lender. The lender wants to make sure the loan amount doesn't exceed the value of the property being sold, and that the loan to value approved by the underwriter is in line. The appraisal may be ‘full blown’ meaning that the appraiser goes inside, makes photos, measures rooms and checks for interior condition. A ‘drive by’ may suffice if the buyer has a large down payment, and/or if the buyer’s credit is excellent. The lender may also get an online property value report, which uses recent neighborhood sales, and gives an average sales price.
An inspection, on the other hand, is an assessment of a home's systems and structure, and it is designed to find any hidden problems with the home. The buyer normally makes an inspection a condition of the sale, then pays for the inspector to deliver a full report. A home inspector usually requires payment from the buyer at the time of the inspection. The inspection usually takes 2-3 hours, as the inspector crawls in the attic and under the house, as well as inspecting all appliances to be included with the sale, and the interior structure. A buyer should go to their home inspection, as this is a great opportunity to learn about his/her new home!
A new home also needs an inspection. True, the builder usually gives a warranty, and comes back during the first year or so to fix any problems. But an inspection will reveal any irritating situations (like low water pressure or a shower head which is not attached correctly) that may take a few days for the builder to correct. Things are sometimes left undone, because a particular employee starts a job, for instance, then takes a day off, and no one remembers to go back and finish what he started.
Real estate agents don't formally appraise your property, but rather provide a comparable market analysis (CMA), which can give you a good idea of what your home is currently worth based on recent sales in your neighborhood and surrounding neighborhoods. An appraiser is going to look at the same data that Realtors® and sellers look at, to come up with the appraised value.
A seller and Realtor® should price the property reasonably, for the market, to ensure that the property "appraises." Buyers usually have looked at several properties before they submit an offer, and know if a property is overpriced. No one wants to overpay for a property.
Linda's Homemade Carport....the adjective 'homemade' is
Posted at 3:44 PM, Jul. 4, 2006
not a compliment. When I learned to sew, the worse thing that could be said about a hand sewn dress was that 'it looks homemade.'
My friend Linda emailed me this story about closing on a house, with the promise from the seller that they would come back later and make a necessary remedy. The lesson to be learned is that once the closing takes place EVERYTHING should have been taken care of....don't leave any loose ends out there!
"Ok, you all aren't going to believe this story ...but here goes...
When we bought this house in Ardmore, the previous owners had never built a carport (which is a requirement from the City of Ardmore). And when we bought it from them, we were given a year from date of sale to build one.
So, we had a contract drawn up by a real estate attorney when we bought the house from them. One of the stipulations in the contract was that they (the previous owners) had to build a carport for us before the year was up. We had asked them to just reduce the cost of the house by what it would cost to build a carport and we would have it done ourselves ...but they refused that, saying *we have to have every penny we are asking for the house and cannot lower the price at all*. They assured us at the time (when we asked about their building experience) that it would not be a problem because one of their best friends was a building contractor who was going to assist them in building this. When they were here the other night to talk to us, we asked them where was this friend who was going to help them and they told us "oh, we don't talk to him anymore ...we really aren't friends any longer"..
About 3 weeks ago they finally showed up and started building the carport. Oh my gosh .. you should see it. Well, it is only partially built because Bob went out there and asked to see their building permit and of course, they didn't get one. :( This carport looks like a bad tinker toy job, I kid you not. They went to find out about getting one and realized NOTHING they have done so far will meet code (which we already knew by just looking at their work). So now they have spent all their money on really bad materials and have found out they really don't know what they are doing.
We were at the attorney's office on Thursday ... bottom line, we are basically stuck for now. We have to wait for the year date ... which will be Aug. 17th, and if nothing has been done, then we can call someone to build it ... have it built and then sue them for all the costs involved.
I am encouraged today because they actually sent a friend of theirs over and he is out there starting to disassemble the thing. Geez, I have been so afraid one of our infamous *winds* that we get here in Ardmore would come up and just push the thing into our house.
After Bob made them stop construction till they had a building permit posted, I went out ..climbed on a ladder just to see if it would be at all possible for us to start working on taking it down. Yikes* the things swayed all over the place just with me leaning against it on the ladder. No way either of us or anyone we love is going to be trying to take it down. I figure none of us needs any broken bones. And, of course, there is no way I would let Bob get on a ladder to do ANYTHING what with his inner ear problems.
I know there must be a lesson in all this. Probably that in hindsight we should have just walked away from the deal when they wouldn't allow us to reduce the price of the house by the amount it would take to have a carport built. But we just keep on learning our life lessons the hard way......"
|
|
