How to Budget for Home Maintenance
All homes—old or new—need ongoing maintenance.
First, buyers should understand the 1% rule. This rule postulates that normal maintenance on a home is about 1% of the value of the home per year. For example, a $250,000 home would require $2,500 per year to maintain. This would be enough to replace the roof covering…and then, a few years later, to replace a failed hot water tank…and then a few years more until a new central air system is required.
Then there is the 3% rule. Some experts say that home buyers should plan on spending 3% of the value of the home in the first year of ownership. This is because new homeowners will most likely have to buy drapes, blinds, a washer and dryer, a stove, maybe even a new roof covering. Also, new homeowners often customize the environment to their taste, so they need to budget for repairs, replacements and maintenance.
In addition, most home components have fairly predictable life cycles. For example, the typical life cycle of a high-efficiency furnace is 15 to 20 years. What this means is that most high-efficiency furnaces last between 15 and 20 years.
One way to know the extent of the maintenance needed and the costs to repair and/or replace items is to have a home inspection conducted. Home inspectors are required to let the buyer know if a component is significantly deficient or if it is near the end of its life cycle (service life), and a reputable home inspection company may offer up-to-date repair-cost guides to help clients with their planning.
Home inspectors work with Realtors and buyers to help them understand the issues that are found in the home, regardless of age, offering the right perspective and objective information. Home buyers need to understand that it’s normal for items in a home to wear out. This should be regarded as normal “wear and tear” and not necessarily a defect.
A good home inspection determines the current condition of the house, offering a report of all the systems and components in need of maintenance, service, repair or replacement.
For example, consider a home inspection that uncovers that the heating system is old and requires replacement. A home buyer may see this as a huge problem. However, this problem may be the only item in the home that requires attention. If a buyer were to look at this situation in perspective, this home could be well above average—a home merely requiring a new furnace.
A good home inspection provides objective information to help the buyer make an informed decision. Knowing what items need to be budgeted for repair or replacement will help home buyers plan or negotiate better and not be stuck with unexpected costs of hundreds, or even thousands of dollars in the long run. Also, fixing these items will make a marked improvement on the performance of a home and minimize issues that could affect its future integrity…and value.
December 23, 2009
3 Sussex County Vacant Homes for use
There may be some houses in Santa’s pack for human service agencies serving Sussex County.
The county has three vacant houses, which after some fixing up could be used for temporary housing.
Even fiscally conservative Council President Vance Phillips, R-Laurel, seemed to be touched by the holiday spirit at the Tuesday, Dec. 15 meeting.
“Maybe there should be a social component to county government,” Phillips said. “As long as it’s revenue neutral.”
After listening to a pair of presentations from organizations in need of housing, County Administrator David Baker said the county purchased three homes near Georgetown in anticipation of county airport expansion. He said the houses would be available for a limited amount of time – one until 2013 and the others until 2020.
Baker said some rehabilitation work would be needed.
By consensus, council agreed to allow county staff to get more information.
The organizations making presentations are involved in providing housing for released prison inmates, homeless people and those recovering from substance abuse.
Patricia Taylor Walp, wife of a fallen police officer and mother of a prison inmate, said The One Program is a 12-month residential reentry initiative that helps incarcerated fathers reconnect with their children.
“We want to bring the father back into the family,” she told council. About 50 percent of all male inmates are fathers.
She said the pilot program would involve inmates at Sussex Correctional Institution where she works as a counselor in the Boot Camp program. She said fathers’ and children’s programs would run simultaneously and include counseling, training, visitations, and employment and educational paths for fathers.
She said the program costs about $17,000 per family a year compared to $26,000 to $30,000 per year to house an inmate in prison.
Jim Martin, Delaware outreach coordinator, was once a resident of Oxford House, which provides housing for people recovering from alcohol and drug addiction. In the self-help environment of an Oxford House, residents are given training and opportunities to stay out of jail while curing their addition.
Not only did Martin conquer his addiction, he became employed by the program and has helped start six houses. Twenty-five Oxford Houses can be found in Delaware, including Georgetown, Lewes and Rehoboth Beach.
He said it’s hard for anyone, let alone those with substance abuse problems, to find affordable housing. He said 14 months is the average stay.
“We are not a halfway house but a three-quarters house because we pay our bills,” Martin said. “Give us a chance and see how cost effective we can be.”
He said he would also like to pursue a modest loan program with the county. Martin said residents pay up to $100 a week for rent.
Baker said other social organizations could be interviewed. “We can do more research to see if the properties fit with any programs,” he said.
Virtual Staging
RISMEDIA, December 23, 2009—Realtors and Homeowners are raving about www.virtualstagingsolutions.com, a low-cost, innovative, home staging site that’s helping them sell vacant properties faster than ever before with a new technique that virtually displays the properties furnished in order to show its potential.
Today’s technology is letting the team at Virtual Staging Solutions do things that have never been done before. Virtual Staging Solutions has taken advantage of that opportunity and has become a leader and role model for the new and upcoming virtual home staging industry. “It is becoming a key marketing tool for real estate agents around the world,” says Bryan Bittner, co-CEO of Virtual Staging Solutions.
What exactly is virtual staging?
Today’s technology has allowed the team at Virtual Staging Solutions to take uploaded photos of a home and warm up the home by putting almost any type of furniture in the photo so that it appears as if the furniture is actually in the home.
Selling a vacant home has been a major problem for homeowners and real estate agents in particular. Home staging is a proven way to increase the appeal of any vacant home on the market and provide an enormous amount of value as a marketing tool. Virtual Staging Solutions now helps assist in real estate marketing efforts by providing home staging easier and at low-cost. “Our aim is to stimulate the housing market and assist realtors by offering a staging service that’s 1/3 of the cost of actual staging. “Vacant Home Sellers are now able to do staging on a low budget,” says Dennis Miller, co-CEO of Virtual Staging Solutions.
As added value, Virtual Staging Solutions.com provides a free listing of the property and agent profile suitable for search engines.
Launched in late 2008, Bryan Bittner and his partner Dennis Miller are rapidly dominating the Virtual Home Staging market and have developed a systematized approach to working with their team of home staging designers and becoming one of the industry leaders for virtual home staging.
“The value that this company provides is not only fair, but it delivers far more return on investment,” says Sean Carroll of Team Carroll at RE/MAX Real Estate in Berkeley Heights, N.J.
For more information, visit www.VirtualStagingSolutions.com or contact Dennis Miller at 888-201-9042.
December 21, 2009
New Home Energy Incentives to boost economy
The National Association of Home Builders (NAHB) recently commended President Barack Obama as he proposed a new initiative to create jobs and make today’s homes more energy efficient.
In a recent speech that took place at a Home Depot in the suburban Washington, D.C. area, the president called on Congress to extend energy-efficiency tax credits for home owners as part of an $8 billion effort to reduce energy use.
“This is the kind of thinking that is going to get America back to work–and make a big difference in many home owners’ monthly utility bills,” said NAHB Chairman Joe Robson, a builder and developer in Tulsa, Okla.
NAHB estimates that 11,000 jobs, $527 million in wages and salaries, and $300 million in business income are generated by every $1 billion in new remodeling and home improvement activity. “That’s a huge impact just in the short run. And in the long run, the energy savings for participating home owners can be quite significant,” Robson said. “This also bolsters a very important message and something we have been saying for years: If we really want to make an impact on the nation’s energy use, we need to take significant steps to make the existing housing stock more efficient,” Robson said.
He pointed out that state and local home builder associations affiliated with NAHB can be instrumental in the effort to weatherize older homes and make them more energy efficient.
For example, the Builders Association of Minnesota served as the conduit for federal stimulus program funds provided to the state for its energy-efficiency programs. The association trained nearly 1,000 remodelers and other residential contractors and funneled the money to 1,300 Minnesota home owners to help them make needed improvements. Minnesota home owners got extra incentives for choosing projects like attic insulation, which some consumers don’t do because it’s something that’s not immediately visible, but when combined with incentives can bring a payback on utility bills within a year or two, depending on the climate.
“President Obama is right that that saving money is very attractive, and so is providing jobs,” Robson said. “These are efforts that the Administration should consider on a much larger scale,” he continued. “They provide employment, stimulate the economy and help us reduce our dependence on fossil fuels–that’s three great outcomes. NAHB can help make this happen all over the country.”
Last month, the White House Council on Environmental Quality invited NAHB to explain how home builders, product manufacturers and remodelers can be part of the Administration’s “Recovery Through Retrofit” solution with programs like Minnesota’s. “We’re anxious to help with these efforts,” Robson said. “It’s what our members do, and do well–and they all want to get back to work.”
6 Tips to Survive the holiday season
RISMEDIA, December 12, 2009—Are you wondering how to survive this holiday season? Do you get caught up in the fast pace to the point of stress and exhaustion? What if, this year, you could create exactly what you want? How about transforming stress into joy? How about making more money, instead of going in the hole?
Here are seix tips to help you thrive this holiday season- financially, emotionally, and energetically.
Tip 1- Reclaim your right to have your own unique version of the holidays.
What is the essence of this season for you? For me, it’s about the joy of giving. Guess what the essence of successful marketing is? You’re right, it’s also about giving your service with joy. The more you love what you’re doing and the more generous you are, the more clients, thus income, will be drawn to you. Each time you market yourself, remember: “You have a unique gift to give—you!” Remember to share this gift with enthusiasm, all year long.
Tip 2- Increase your self care and self maintenance.
Do you want to be healthy this whole holiday season? Are you ready to commit to it? If so, be aware that you are taking time for yourself so that your physical, emotional, mental and spiritual needs are being met. Are you taking “down time?” Are you surrounding yourself with positive people? Are you aware to keep your self talk supportive and encouraging?
Tip 3- Do things that give you joy.
Martha Beck writes in her book, “Finding Your Own North Star,” that there are two rules about joy. The first rule is “Do things that give you joy.” The second rule is “No, really, do things that give you joy.”
Tip 4- Start learning about the Law of Attraction.
What is the Law of Attraction? The bottom line answer is that like attracts like and you get what you focus on. So when you’re thinking of the New Year, are you focusing on what you don’t want or focusing on what you do want? If you focus on your fear of not having enough clients or money, then what you’re likely to get back is not enough clients, or not enough money.
Instead, train your mind to ask the question, “So, what do I want?” Focus on your wants to the point where you can feel yourself having those wants satisfied. What do you get back? More of your wants being satisfied.
Tip 5- Turn your Resolutions into Intentions.
Did you know that 99% of people forget their resolutions by the end of January? Instead of being one of the casualties this year, focus on your intentions, rather than resolutions.
To quote Wayne Dyer from his book The Power of Intention, an intention is not so much of a strong purpose or aim, but rather, “a field of energy that flows invisibly beyond the reach of our normal, everyday habitual patterns”….. “We have the means to attract this energy to us and experience life in an exciting new way.” I invite you to “try on” this new perspective as you plan your New Year.
Tip 6- Take time off; rejuvenate and enjoy.
If you design your own unique version of the holidays, remember to schedule in time to do nothing. For most of us, that is a concept way outside our realms of thinking. Let’s face it, we have been programmed to be human doings rather than human beings. This holiday season, do yourself a favor and commit to spending some time just “being.” Try it, you might like feeling like a human “being” instead of a human “doing.”