Home Buyers

15January

Is it time to flush your water heater?

  • Comments Off on Is it time to flush your water heater?

The flushing of your hot water heater should be part of an annual home maintenance program. Draining water out of the tank flushes out sediments that settle to the bottom of the tank. The flushing helps ensure safe, energy efficient operation of your water heater. Additionally it helps to extend the useful life of the unit. The service can be done professionally or consider it as a do it yourself project with the following recommendations.

To flush the tank:

  1. For electrical water heaters, turn OFF the power at the circuit breaker. For gas water heaters, turn the thermostat on the unit to the PILOT position.
  2. Connect a garden hose to the drain valve at the bottom of the tank, and put the other end either in a 5-gallon bucket, a floor drain, or run the hose outside.
  3. If you have a recirculation pump for your hot water system, then turn this off.
  4. Shut off the supply valve for the cold water inlet to the water heater.
  5. Open a HOT water faucet in a sink closest to your water heater, and open another HOT water faucet in a sink that is at the highest point in your house (NOTE:  Just a little water will flow out, since you have shut the water supply valve to your hot water heater in the step above).
  6. Open the pressure relief valve at the top of the tank (you might want to place a rag or small bowl under the vent pipe to catch any water drops that might come out).
  7. Open the drain valve on you tank and drain 1 to 2 gallons from the tank.  NOTE: The water coming out of the garden hose will be scalding hot so be careful that the water doesn’t splash anywhere except in the bucket, drain, or outside.  As the water begins to drain out, you will probably notice some small scale or sediment in the water.

To re-fill the tank:

  1. Close the drain valve and remove the garden hose.
  2. Close the pressure relief valve at the top of the tank.
  3. Open the valve for the cold water inlet to the tank, and you should start to hear the tank fill with water.
  4. Watch the faucets that you opened in the house.  After you begin to get a steady stream of water from the faucet, shut that faucet.
  5. For electric water heaters, turn the power back on, and for gas models, turn the thermostat on the water heater back to its ON position.
  6. If you have a recirculation pump, then turn it back on.
  7. Double check that the drain valve is tight.

TEST PRESSURE RELIEF VALVE:  The pressure relief valve is at the top of the tank, with a drain tube extending down from it.  To test the valve, with the water supply valve to your water heater in the open position (i.e., its normal operating position), place a bucket under the vent pipe for the valve, then lift the lever on the valve for a few seconds to let water flush out through the valve.  If little or no water flows out, or if the valve doesn’t shut off, then replace it.  NOTE: The water coming out of the vent pipe will be scalding hot, so be careful that the water doesn’t splash on you.

9November

Home Warranties

When purchasing an existing home, there will be unforeseeable repairs that may be necessary. Home inspections conducted prior to a home purchase will not detect future repairs. In some cases, the repairs will be costly without a home warranty. If you are a buyer purchasing an existing or pre-existing home, I would recommend purchasing a home warranty, if the seller does not pick up the annual cost through your home sale transaction. It helped me alleviate costs when my husband and I purchased our first home. A couple of months after we moved in, our heater went out during the cold season. We avoided paying unwanted costs, because we had a home warranty.

Home warranties are typically purchased through a home sale. They are designed to cover mechanical breakdown that insurance companies do not cover on existing or pre-owned homes. Annual fees are paid, which covers repairs or replacement for home systems.

If something breaks down that is covered by the warranty, the homeowner will contact the home warranty company. The warranty company will contact a repair company who will then send someone out to take care of the issue. The homeowner will just pay for the visit.

6November

Congess Extends and Expands Homebuyer Credit

  • Comments Off on Congess Extends and Expands Homebuyer Credit

President Obama is scheduled to sign an economic package passed by Congress this week that will help millions of Americans who have lost jobs and have been unable to rejoin the workforce. It would also extend for seven months an $8,000 tax credit for first-time homebuyers that was enacted as part of the $787 billion stimulus package passed in February 2009 and is set to expire at the end of November 2009. The program would be expanded with a $6,500 credit for homebuyers who have lived in their current residences for five years.

The IRS reports that 1.4 million people applied for the homebuyer’s credit through August 2009.  The legislation would extend the program through June 2010, as long as the buyer signs a contract by the end of April 2010. It also offers a $6,500 tax credit to those who have lived in their current residence at least five years.

The measure doubles the income ceiling for eligible individuals to $125,000. Homes must cost less than $800,000 to qualify.

19October

4 Important Things You Should Know When Purchasing a Home

  • Comments Off on 4 Important Things You Should Know When Purchasing a Home

Purchasing a home is one of the most important personal and financial decisions you can make.  If you are about to make this decision you should take the time to get educated about the process because there are a lot of legal and financial ramifications involved.  Here are four basic, but important things, you should know and do before signing a contract to purchase a home. 

1.  Choose the Right Lender and get Pre-Approved.  This has always been the most important thing to do before buying a home, but today it is even more important with all of the recent changes and restrictions in lending.  The bottom line is this:  if your lender cannot close your loan on the day of closing you cannot purchase your home.  Most importantly, if this happens on the day of closing, you will be in default and can be sued in a court of law.   All real estate contracts have default language and you should read those paragraphs and know the penalties for default before signing. 

When choosing a lender, the worst thing you can do is go online and choose a lender that you know nothing about.  The best thing you can do is ask your real estate agent to recommend a lender.  Good real estate agents have established relationships with two or three reputable lenders and they can give you a good referral.      

Choosing the right lender is also important because they can determine up front if you even qualify to purchase a home.  Otherwise, unless you have the cash to purchase a home, you cannot buy a home without a loan.  If you are not pre-approved you will waste your time and the agent’s time looking for a home.  Any good real estate agent will require a pre-approval letter, or proof of funds for a cash purchase, before they start showing your homes.   This is customary and reasonable. 

2.  Choose a Good Real Estate Agent.  Next to choosing the right lender, you should choose a good real estate agent to represent you.  This is always a tough decision because there are no real standards or criteria to follow.  You can often find a good referral from friends or family who have used them and had a good experience.  Try to choose an agent with at least 2 or more year’s experience.   The most important factor is their real estate education.  There are numerous opportunities for agents to learn but not all of them take advantage of those opportunities.  Try to choose an agent that is knowledgeable and education-minded.  It is also a good idea to choose an agent that is part of a larger brokerage firm; that way if legal issues arise they usually have a good support system for resolving issues or for mediation.  

3.  Termination and Contract Deadlines.   Once you are under contract you should always know your contract deadlines.  As a buyer there are usually several options for you to terminate the contract without losing your earnest money.  Once those deadlines have passed, you “may” still be able to terminate, but you will forfeit your earnest money, which in most cases can be $1000 or more.  A few of the basic termination deadlines are financing deadlines, the option or inspection period, receiving HOA information, the survey or the Seller’s Disclosure Notice.   The financing deadline is very important because after that time period passes, you cannot use financing as a reason to terminate – which is the most common reason buyers terminate.   Most financing deadlines are 14 to 21 days after the contract is signed and executed, whereas the contract deadline is normally 30 to 45 days after it is signed.  That means if your lender determines on day 30 they cannot close your loan, you could lose earnest money.  It is important also that you inform your lender of the financing deadline.  Always look over your contract and highlight the phrases that contain the words “… this contract shall terminate.”  That way you’ll know all you termination options.
 

4.  Know Your Cost.  Before signing a contract, always know what your out-of-pocket costs will be.  As a buyer, there are thousands of dollars of costs associated with a home mortgage and your lender, by law, is required to provide you with a Good Faith Estimate (GFE).  The Good Faith Estimate will break down all of the costs associated with your mortgage, as well as, show you what your monthly payment, taxes and insurance will be.  You should look over the GFE carefully and have your real estate agent look over it to make sure the costs are reasonable and customary.  In addition, you should look over it to see how much money you will be required to bring on closing day and most importantly, how much your monthly mortgage payment will be.  You should know these costs before you even begin to look at houses.  That way you will know if you have the cash necessary to purchase a home and most importantly, if you can afford the monthly payment.  During the pre-approval process you should tell your lender how much you can afford for a monthly payment and how much cash you have for a down payment and for closing costs.  Once your lender knows this, they can give you the price range of homes you need to look at in order to stay within that monthly payment.  As a buyer, it is your responsibility to know the costs and what you can and cannot afford. 

Purchasing a home is a big decision and there are numerous other things that are important as well, and trying to navigate the process on your own is not a wise decision.  Just as you would hire an attorney to represent you in court or a doctor to treat a serious illness, you should choose a real estate professional and a reputable lender to represent you and provide you with good professional real estate advice.