How Termites Can Devalue Your Home, And What You Can Do About It!

Termite damage can have even more of a negative effect on a home’s value than high crime rates, low quality schools and having a freeway close by. Even if the damage is incredibly small, if evidence of termite damage is found be a home inspector then price of the property is significantly decreased and the home will most likely not be sold until the termite issue is resolved.

If you are currently dealing with a termite problem of your own or you are concerned about the possibility of termites affecting the sale of your home, the continue reading to find answers to some FAQs about the wood-consuming machines and real estate.

Who is responsible for paying for termite treatment?

Most commonly, the seller is responsible to pay for the treatment of a termite problem. However, even though extermination costs tend to be small when compared with the destruction they can cause ($1000 to $2000 in most cases), it is possible that the basic structure could be compromised if the damage is extensive (which can make the extermination costs pale in comparison).

How do I know if my home has been affected?

Although some damage will be immediately detectable to a trained inspector, there will still need to be more intensive and extensive inspection done. Depending on the origin of the damage, excavation may be needed to solve the problem. Inspectors usually check the underground and exterior areas for signs of termite problems.

How much does repair cost if the structure has been compromised?

This depends on the overall extent of the damage done, however structural repairs have been known to cost anywhere from a few thousand dollars all the way up to the entire value of the home! If a home is determined to be structurally unsound as a result of termite damage, it must be demolished and reconstructed.

How do I go about getting a complete termite inspection?

To discover the existence or extent of termite damage in a home, you will have to have fully invasive testing done. Walls will need to be taken apart, floors will have to be torn out, and they will have to expose the core of your house for investigation. This can be a very costly process which will only be made worse if termite damage is found.

Is there anything that I can do to protect against a termite infestation?

Today, when new homes are constructed, a pest control specialist comes to the construction site and applies a pesticide (or termiticide) on the plot of land prior to the foundation being poured.

For homes that are already built, homeowners can protect themselves against infestations by minimizing the contact between ground and wooden supports (like a deck, for example), by improving drainage, by taking out wood from any crawl spaces, and by ensuring that there is sufficient ventilation to crawl spaces.

Will a regular home inspector check for termites and termite damage?

No, usually home inspectors will not include perform a thorough termite inspection. However, many regular inspectors do have certification to charge for a quick, visual termite inspection. It is important not to try and cut costs by saying no to this basic inspection. It is well worth the additional costs for the peace of mind that your home is structurally safe.

5 Real Estate Tips For The Summer

Similar to our weather, real estate markets heat up in the summer time. Usually there are more buyers out looking to purchase houses, and more sellers looking to sell their homes. If you’re searching the market for a house or are considering selling your house during the summer time, there are a few tips that should be kept in mind in order to help maximize your results.

1. Buyers: Don not Forget About the Inside

It’s easy to get overly excited about a home with a great fenced lawn, deck, pool, and other attractive features such as these, especially if you are looking at houses during the peak of the summer time. But do not be blinded by daydreaming about relaxation and entertaining outdoors. It is important not to become overlook the other important aspects of the home or turn your attention away from the interior features.

2. Sellers: Do not Forget About the Outside
In the summer time, landscaping and outdoor features are extremely important selling points for your home. Optimize the space by ensuring that the exterior is organized, clean, and inviting. Using a pressure washer clean the driveway, performing basic lawn care, and other routine maintenance improvements can add real value to your home.

3. Buyers: Keep Your Goals In Mind

When a wave of houses hit the market at the beginning of summer, it is all to easy to become overwhelmed by all of the choices. Do not forget the features that are crucial to you, and have reasonable expectations considering your lifestyle, budget, and general needs.

4. Sellers: Know Who Your Competition Is

When there are many homes on the market, knowing who your competition is can be important. Paying attention to the other houses selling in your community can assist you defining your home’s particular strengths and weaknesses. Going over the information contained in area listings is another way to ensure that you have priced your home correctly.

5. Everybody: Do Not Feel Pressured By The Season

Although summer time is an excellent time for real estate deals, do not allow the seasonal time frame to add unnecessary stress when searching for the house of your dreams (or selling your home). It is always possible to make deals at other times throughout the year!

Falling House Prices: A Blessing Or A Curse?

We have recently seen declining property values in the United States and United Kingdom. Some people think that declining property values represents weakness in the wider economic situation, and although this is often the case, there are also some advantages and explanations for why it is good that property values are declining.

- Advantages of Declining House Prices

There will be more bargains in the market. Recently, a lot of young people buying houses for the firs time have effectively been “priced out of the market”. Thus, if prices do fall then it will allow many more young people to make a purchase. It will also assist in reducing the inequality; people that own homes have an advantage when retiring because their mortgage will be paid off. This can help them avoid unnecessary expenses such as rent.

Interest Rates may go down. Falling property values are correlated with a reduction in the inflationary pressure in the economy. This helps allow the Central Banks to slice interest rates. As a result, mortgage repayment costs go down which is a great help to people that own homes.

Greater Flexibility in the labor markets. Soaring property values make it increasingly difficult to move to some areas. For example, London and the South East have had job shortages in important industries such as health care, education and law enforcement. These labor market shortages are often detrimental to local economies.

Help Prevent Speculation in Property Market. The United Kingdom and United States observed that the number of speculators who purchased homes in an attempt to make capital gains has increased. One side effect of this is that it made the market more volatile. Falling house prices gives speculators a much needed “reality check”, letting them know that house prices cannot continue to rise at a rate that outpaces average incomes.

- Disadvantages of Declining House prices.

Declining property values can slow down economic growth. When house prices are on the decline, consumers are faced with negative equity preventing them from remortgaging. Declining house prices also cause a decline in consumer confidence since the housing market is viewed by many as representative of the overall economy. Furthermore, if housing prices fall too quickly, it could help provoke a recession (unless other parts of the economy are sufficiently strong like rising exports and investments).

Declining property values can create negative equity. This occurs when the value a home falls below the cost of the mortgage.

Discourages construction of additional housing. If house prices decline, then home builders will delay the construction of new houses. This could cause a long-term house shortage problem. In the short-term, it will cause construction industry jobs to be lost.

A Glance On Declining Home Values

The recent trend in the real estate market of UK and US is showing a falling trend in the prices of houses. The critique group argues that it reflects a threat towards the economic situation. In fact there are both the benefits and the problems which are there because of the falling home prices.

Positive perspective for the Fall in prices

1. Increase in Affordability:

Affording your own house in the metropolitan states like UK and US is no longer an unattainable desire. The fall in the house prices has made it possible for the consumers to afford the housing. If the trend of falling prices continues then it is considered that the number of buyers will also increase.

2. Reduction in Inequality

It is also contributing in reducing the inequality and is providing the equal access to the facilities.

3. Reduction in Expenditures

Homeowners will not have to pay for the home rent and this will reduce their rental expenditures per month. Hence, it will also contribute in increasing the standard of living.

4. Flexibility in labor market

The fall in the prices can make it possible for the laborers to move to different markets. Previously there have been always shortages of the workgroups like laborers, health care workers, teachers and police in the cities like London. The damage to the economy because of the labor shortage market will be recovered because of the falling in the prices of homes.

5. Reduction In Inflationary Pressure

The inflationary pressure in the economy is also reducing and the interest rate is also falling. State bank is also able to cut the interest prices further because of decreasing inflation. Eventually, cost of mortgage repayments is also a benefit for the homeowners. For getting the capital gains, there is an increasing number of speculators in UK and US, that is making the market more volatile.

Negative Perspective For The Fall In Prices

From the negative perspective some of the problems in the economy are also not ignorable.

1. Negative Equity

Remortgaging will decline, because the consumers will be left with negative equity as a result of the falling prices. This will also cause a drop in economic confidence, as there will be a false impression about the economic view of the state.

2. Recession

Even if the exports and the investments in the real estate increase because of the falling prices but still the chances of recession will also increase.

3. Effect on Construction Industry

Falling in home prices will lead in dropping number of the new home buildings that can result in shortage of home construction in the long run. Eventually there will be unemployment because of the reduction in job opportunities in the construction industry.

Hot Real Estate Market & Your Decision

The seasonal trends also have an impact on the real estate market because there is more demand of homes in summers. Number of buyer of homes increases and the lists of the homes for sales are also increased. In other words there is more hustle and bustle in the real estate market in the hot summers. For getting the maximum financial gains, as being a buyer or a seller, you must have a look on our suggestions:

From Seller?s Perspective:

Firstly, never ignore the importance of landscaping and outdoor space, especially in summers before selling home because these are the influential factors which can affect the purchasing power of the buyers. Moreover, focus on the exterior look, lawn care, and other maintenance tools to get the maximum financial benefit.

Secondly, never ignore your rivals and keep an eye on your competitors is the key. Do your SWOT (strengths, weaknesses, opportunities and threats) analysis from time to time and the best way is to consider the homes for sale in your neighborhood. Also go through the area listing from time to time and you will surely get benefit out of these.

From buyer?s Selling Perspective:

Phantom of outdoor relaxation can distract you from the fundamentals of home buying. Do not consider the exterior features, like great fenced lawn, pool, deck etc. the only appealing factors and do not neglect the basic factors which should be considered for home buying. Therefore, keep the importance of the exterior and the internal concerns parallel to each other.

Always consider your goals especially, when there is a heave of homes in the real estate market, it will be easier to be inundated by the options. Consider your budget, lifestyle, and needs first and then match them with your expectations. In other words, see what you have and then what you want.

No doubt, summers can be considered as the prime time for the real estate market but you should think realistically. You have to be neutral when you go for house hunt or home sale because if you let seasonal time frame affecting your transaction, then you may end up with a non-profit deal. Both the buyers and the sellers can get the success in this market throughout the season and the probability increases in summers, therefore, do not squeezed by the season and consider it just a good option.

The Role Of Sweat Equity In Home Improvement Projects

“Sweat Equity”, as it pertains to real estate, can be defined as the time and energy that a person dedicates towards a home improvement project. If done correctly, these projects can greatly increase the value of a home and improve the overall comfort level enjoyed while you live there. Thus, if moving to a nicer home is not economically feasible for you, fixing up your current home to reflect your style can be a rewarding experience.

One of the first things that a homeowner should decide when considering a home improvement project is the amount of time and money they are willing to spend. It is essential to give an honest evaluation of what you expect to accomplish. You should be sure to research common techniques and methodology pertaining to your home improvement plan and determine whether or not you will be capable of executing it. Remember that even if the projects seems simple, you may run into unforeseen issues (like mold or rotting wood) that will complicate things. Obstacles such as these may cause you to move outside your budget or force you to tolerate living with an incomplete area of your home for a while.

Less substantial projects like updating light fixtures, removing old carpets, landscaping and painting usually do not cause too many problems. However, you must still be prepared to invest money in purchasing the necessary tools and you must be prepared to get your hands dirty. For larger projects, you may need to rent tools, so it is important to factor these costs into your budget as well. Also, do not forget to obtain any necessary permits, and carefully consider the effect that this project will have only your family life and social life. If you make mistakes while working on your project, you may even have to pay for someone to come in and fix the problems and redo the whole project.

If you aren’t yet ready to tackle a home improvement project alone, you might be able to get a bargain price by putting in some sweat equity. Do not be alarmed if a private contractor is unenthusiastic about the deal though. Contractors are typically paid in hourly wages. If your personal work is not up to their standards, it may postpone the project and cost the contractor money. You should only try and do work before the project has begun or after the project is completed, like if you want to do some cleanup work, painting, installation, or minor carpentry. All in all, being realistic about your personal skill level is the best way to ensure that your home improvement project is a positive experience.