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Tamara Fisher

Private mortgage insurance, also known as PMI, is cursed by homebuyers when, without it, many of them wouldn’t have been approved for the mortgage used to buy their home.

Yes, it makes house payments higher and, yes, it sticks around far too long. Worse, although it’s called “insurance,” it does nothing to protect the homeowner. Its sole beneficiary is the loan holder.

Most borrowers who pay less than 20 percent down on a loan will be required to obtain PMI.

There are some loans, such as those for physicians and other medical professionals, which waive the PMI requirement when the borrower makes a lower down payment.

FHA-backed loans

The most popular mortgage program among first-time buyers who are low on cash is the FHA-backed loan.

It, too, has a mortgage insurance requirement, known as the “mortgage insurance premium,” or MIP for short.

Consider yourself fortunate if you obtained an FHA-insured mortgage before June 2013. You will be able to ditch the MIP payment once your equity in the home reaches 22 percent of the loan amount (for a 15-year loan).

Whether or not, and when, more recent borrowers can dump the MIP depends on your down payment and the length of the loan.

For loan terms of 20, 25 and 30 years, with a 10 percent down payment, you’re stuck with MIP for the life of the loan.

For the same terms, with a more-than 10 percent down payment, you can cancel MIP after 11 years.

Fifteen-year or less term? With a less-than 10 percent down payment you will be, again, required to pay the MIP for the life of the loan. Put down more than 10 percent and you can cancel it in 11 years.

PMI and conventional loans

Conventional loans are a bit more amenable to cancelling PMI. Reach 20 percent equity in the home and call your lender to terminate the PMI.

The Homeowner’s Protection Act of 1998 mandates that the loan holder must terminate PMI, without a call from you, when the loan reaches a 78 percent loan-to-value ratio (LTV), meaning that you have 22 percent equity.

The beauty of this law is that it’s not based on your actual payments made, but rather on the date the loan should reach the magic 78 percent LTV, which you’ll find on the initial amortization schedule.

You can also dump PMI on a conventional loan at the amortization schedule’s midpoint, regardless of your equity.

The USDA and VA loans and PMI

One would assume that a loan with no down payment required would have one hefty PMI premium.

The USDA loan, however, has none. You will be required to pay an annual fee, but it’s typically less than the average PMI premium.

Since the loans are guaranteed by the U.S. Department of Veterans Affairs, the no-down payment VA loan doesn’t require the purchase of private mortgage insurance, either.

The PMI “Buy-Out”

Private Mortgage Insurance provider MGIC claims that a borrower who puts 5 percent down on a $250,000 home will pay $150 a month for PMI.

If you’d rather use that money elsewhere, and have a smaller monthly mortgage payment, consider a “buy-out” of the PMI.

You’ll pay a slightly higher interest rate (typically a half a percentage point, according to quickenloans.com).

And, lenders typically only offer this tactic to credit-worthy borrowers. In other words, good credit risks. If you have a low credit score and little to put down on a home, this tactic isn’t for you.

Refinance your way out of PMI

Refinancing if you’ve built equity makes sense – especially when mortgage rates are low. Not only will you dump the PMI, but you’ll reduce your monthly interest payments – an exacta of savings.

Some loans require a two-year wait to refinance after obtaining a mortgag, according to Holden Lewis at BankRate.com.

Consider a Piggy-Back Mortgage Loan

Also known as 80/10/10 loans, piggy-back mortgages have three “legs.” The first is a 10 percent down payment.

Then, the lender will provide you with two loans – one for 80 percent of the home’s purchase price and another, second mortgage, for 10 percent.

“The piggyback loan is still debt and money you need to repay. And it comes with its own monthly payments, which can be quite high.

For that reason, homebuyers should be cautious about taking on a piggyback loan,” warns Kali Hawlk at Unicom.com.

Other ways to get off the PMI wheel

Have the home appraised – Some lenders will accept this appraisal in lieu of using the original value when determining your current loan-to-value ratio. Appraisals can be pricey, so speak with your lender first.

Increase the value of your home – Some remodeling projects raise a home’s value better than others. Before heading down this path, speak with your lender to find out if your LTV will be recalculated using a new value after the remodeling project.

Pay down your loan – Pay extra every month to bring down your loan balance.

There is a lot more to know about PMI and how to avoid it or get rid of it. We aren’t lenders or mortgage professionals, but we are happy to put you in touch with one.

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Tamara Fisher

Have you ever noticed that information and advice for first-time homebuyers is plentiful across the internet?

What happens when you look for that same information and advice for first-time home sellers?

Crickets

While buying a home for the first time is somewhat confusing until the process is explained, selling one for the first time is even more so. This is a huge investment you’re selling. How much will you make, and when?

We believe that knowledge is power and we’re always happy to share our knowledge with our clients. You should be aware of every step in the process so that you never have to wonder what happens next.

It starts with listing your home. When you know what happens after you sign the listing agreement, and what is expected of you during this time period, nothing will fall through the cracks and you can relax into the process.

Although you won’t see us, behind the scenes, we will have our hands full with a flurry of activity, from getting the home into the Multiple Listing Service database to implementing our tried-and-true marketing plan.

So, for anyone thinking of selling a home, here is what you can expect after you sign the listing agreement.

The pre-showing period

Immediately after signing the listing agreement, we will suggest ways to improve the home’s curb appeal and, if needed, give you some tips on how to stage the interior to appeal to the greatest number of potential buyers.

We’ll also walk you through any repairs we feel will help the home sell  quicker and for more money.

While you get busy making improvements and needed repairs, we will have our own tasks to complete. Here is just a handful of what we do just after you sign the listing agreement:

  • Ensure that we have all the pertinent information about the HOA, if applicable.
  • Collect a key from you for the lockbox.
  • Talk to you about your current mortgage – is it assumable? Are you considering owner-financing? Do you have a VA loan?
  • We will walk you through the broker’s open process (sort of an open house for real estate agents) and showings to potential buyers.
  • We will advise you how to guard your valuables and what to do with your pets and we’ll ask you if there are any restrictions on showing the home (times that you just cannot leave the home).

After we leave your house with the listing agreement we’ll head back to the office and get to work.

First, we’ll call our sign company and order a sign for your yard or window, arrange to have the lockbox attached to your home and we’ll set an appointment with our professional photographer to take photos of the home.

These photos will not only be used in the MLS listing but in all other marketing materials, so we’ll give you plenty of notice to get the home in tip-top shape before he arrives. We will also determine a good day to hold the broker’s open house.

Then, we’ll verify the square footage of your house and lot via tax records and enter all the information about your home into the Multiple Listing database.

Once the photos and information are in the MLS, your home is officially on the market and all other real estate agents in the area will have access to the information and can begin showing your home.

While the home is on the market

While the home is on the market you’ll be called on periodically to sign various forms. From contingency releases to other acknowledgements, we’ll ensure that you fully understand what you are signing.

Most sellers must fill out various disclosures – forms that tell the buyer anything the sellers know about the home that may bear on their  decision to purchase.

The Seller’s Disclosure Statement is one that all sellers must complete. Although we cannot fill out the form for you, we’re happy to assist you if you have any questions.

Seller disclosures are serious business; it is your most important duty when you sell your home. It may seem that by being brutally honest about known problems you may be sabotaging the sale, but you are actually protecting yourself from future legal liability.

While the home is on the market you will need to keep it tidy and keep your valuables locked away. Leaving the home while it’s being shown is a nuisance, but necessary if you hope to sell the home quickly.

There’s a lot more to selling a home than sticking a sign in the yard with a box of pretty fliers attached to it. Please don’t hesitate to contact us if you have any questions.

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Tamara Fisher

Insurance is a necessary evil – we buy it, hoping we’ll never need it. After all, it’s a hedge against catastrophe.

The sheer cost of replacing a home with custom finishes, and the fact that high-end homes may contain priceless works of art, expensive vehicles and irreplaceable values, makes the process of insuring luxury homes far different from insuring other homes.

Many homeowner insurance policies place a low cap on coverage for jewelry. So, the specialty high-end coverage that the luxury homeowner purchases needs to be broad in scope. This may mean adding special coverage.

Because of this, some homeowners end up with four or five different policies, according to Market Watch’s Christopher Noble. Subsequently, owners of homes that are valued at $1 million or more can pay from $5,000 to $50,000 a year for insurance.

Fortunately, there are ways to save money on your homeowners’ insurance coverage. Let’s take a look at five of these.

1. Stick with the same insurer

If you own more than one home, ensure that both are covered by the same insurer and ask for all the discounts offered. Also, move your auto insurance to the same company for additional discounts.

2. Raise your Deductible

As we’ve all learned with America’s health insurance program the deductible you choose has a large impact on the premium you’ll pay. How much? Check out this ValuePenguin.com chart:

 

The blue bars represent the premium amount. As you can see, raising the deductible from $1,000 to $10,000 will save $359. Even a more moderate hike, such as from $1,000 to $4,000 nets a more than $200 savings.

3. Security

If the home lacks certain safety features, such as alarms, fire sprinkler systems and dead bolt locks, install them. Each safety system typically qualifies for a discount so speak with your agent to determine which he or she recommends.

An example of this is the Chubb Group of Insurance Cos. “It discounts premiums by up to 25% for homes with sprinkler and alarm systems,” according to marketwatch.com.

4. Sensors

Some insurance companies offer discounts if the home features certain trouble detectors. These might include temperature sensors that detect a problem with the HVAC system and leak detectors with alarms that sound when water touches them.

“Particularly if (the systems) are routed back to a service (such as the local fire or police department), well that’s more expensive, so the discount is higher,” claims Loretta Worters of the Insurance Information Institute

5. Take advantage of your age

Last year, Palm Beach, with a median resident age of nearly 55 years old, was ranked the third richest city in the U.S., according to Inman.com. Some insurers reward older American homeowners with discounts, so those affluent homeowners in Palm Beach, and other wealthy cities, may be eligible for a break on their homeowner policies.

Additional savings the affluent homeowner should inquire about:

  • Claim-free – if you’ve gone a long period of time without submitting a claim, you may be eligible for a discount on your premium.
  • New roof? – Call your insurer to find out if the material used in the new roof is disaster-proof. It may save you money.
  • Retirement – Insurance companies consider retirees’ home’s low-risk. After all, they’re home most of the time (or so the assumption goes) so they’re quicker to respond to a house fire and better able to thwart a home break-in. If you are a member of AARP, check out their insurance program.
  • Green home coverage – While this discount isn’t common, one or two companies offer discounts on LEED-certified homes.

Do your research

Shop carefully for home insurance. “Some of the companies that have the most discounts start with the highest price,” Bob Hunter, director of insurance for the Consumer Federation of America tells banrate.com.

The final price you’ll pay should be your priority, not the number of discounts you’ll get.

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Tamara Fisher

You know those gloomy weekend days when you just can’t stand the thought of heading outdoors and and Netflix has nothing new to offer? Have we got a job for you!

Take a look at the grout in your tile floors. Rather gross, right? Unless you suffer from ablutomania (we’ll wait while you go look it up), those spaces have seen better days.

So, take advantage of the downtime and get a head start on spring cleaning with these handy tips.

1. Clean it

Surf the internet for “how to clean dirty grout” and you’ll find enough different ways to keep you busy for the rest of the winter. So, we tried some of them on a grungy entryway tile floor:

  • Toothpaste
  • Nail polish remover
  • Barkeepers’ Friend (a cleanser)
  • Bleach
  • Vinegar
  • Soft Scrub
  • Magic Eraser
  • Vinegar and baking soda
  • Hydrogen peroxide and baking soda
  • A slurry of baking soda and water

The latter, allowed to sit for about five minutes and then scrubbed with a toothbrush was by far the most effective method. Try an old electric toothbrush if you want to use less muscle-power.

One method we didn’t try is that recommended by Tim Carter, owner of the website askthebuilder.com, in his column at the Washington Post.

He uses oxygen bleach powder, which he claims is “nontoxic, doesn’t produce harsh fumes, and is color- and fabric-safe.”

Soak the grout lines with solution of the bleach and warm water (no, he doesn’t give the quantity of bleach to water) and allow it to remain for 15 minutes. During this time, “the oxygen ions attack the stain molecules, breaking them into pieces that rinse away with little effort,” claims Carter.

As it’s absorbed into the grout, add more so that the lines are always flooded with the solution. Then, scrub the grout, adding additional solution as you scrub.

He also suggests adding oxygen bleach powder to your mopping water each time your mop the floor.

2. Hide it

If the sealant is old or wearing off you may lose some of the grout’s color when using abrasive cleaners – we even lost a bit with the baking soda/water slurry. And, you may end up with lingering stains, as did Sherry Petersik at Young House Love.

If so, it’s time to “cheat.” Or, skip the scrubbing all together and head straight for this solution.

Petersik used a product called Polyblend Grout Renew that she picked up at Home Depot. The manufacturer describes it as a “colorant” and, applied with a small paintbrush or toothbrush, its recommended use is to “restore or change grout color of cement grout joints.”

We shopped around for you and, although it comes in a wide variety of colors at Amazon.com, it’s less expensive at Home Depot.

We have seen similar products, in different forms. One comes in a marking pen-like form and in 33 different colors, and another in a hair color applicator-like bottle.

You’ll need to seal the grout after cleaning or coloring and there are a number of products at Amazon.com that, judging by customer reviews, seem to do the trick.

3. Start anew

Although it sounds a bit challenging for the novice DIYer, you can find instructions on how to remove and replace grout, online.

Just the list of equipment required to do the job, however, has us scanning the internet to find a pro to do the job.

  • A rotary tool with diamond blades
  • A large grout sponge
  • Scrub brush
  • Bucket
  • Rubber float
  • Dust mask
  • Shop vac
  • Safety glasses
  • Ear protection
  • Carbide hand tool and blades
  • Gloves
  • Bleach
  • Pre-Mixed grout
  • Sealer

Supplies and equipment for a 129 square-foot grout replacement job will run you from $220 to about $265, according to homewyse.com. Add in whatever you figure your time is worth because the job will take nearly 34 hours.

Then, you’ll need to wait a few days for the new grout to dry (keeping kids and pets off of it — easy peasy, right?). before applying the sealant.

To have a pro do the work for you, plan on spending between $253 and $574, according to homeadvisor.com.

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Tamara Fisher

More than 1,500 years ago, a double-hulled canoe full of Polynesians landed at Ka Lae, on the southern coast of the Big Island of Hawaii.

If they came from the Marquesas Islands, as many archaeologists believe, it was a journey of 2,500 miles, using only the stars to navigate.

It’s a safe bet that none of these first settlers ever dreamed that the future would see more than 1.5 million people visit the island every year.

If you hope to be among them, you’ll find the Big Island, and Kona in particular, will deliver on even your most adventurous tropical vacation dreams.

And, thaw out, you most definitely will. 

Charter Fishing

Kailua-Kona is, at heart, a fishing village. Known as the Billfish Capital of the World, it is home to the Hawaiian International Billfish Tournament, held every August.

Anglers from all over the globe come to Kailua-Kona with hopes of bagging the big one. It’s five days of Pacific blue marlin fishing, weigh-ins, cocktail parties and fun.

If sportfishing is your hot button when you visit our 50th state, you’ll find numerous fishing boats available for charter. In fact, there are so many it may be hard to narrow down your choices.

Of the most-reviewed charter companies on Yelp.com, two are highly rated.

The first is Fire Hatt Sportfishing Charters, offering fishing from a fully outfitted 43 foot Hatteras Convertible, with a 35-year fishing veteran, Captain Chuck Wilson. Rates are listed on their website at firehattsportfishing.com or call them at (808) 987-0038.

Yelpers also highly recommend High Noon Sportfishing. Captain Dee Bradford and crew won the prestigious Award for Excellence from Trip Advisor.

High Noon specializes in live bait fishing on light tackle for mahi mahi, small tuna and spearfish and smaller tuna.

You’ll fish from a 34-foot recently refurbished Blackfin. Captain Bradford is happy to give you not only a rate quote by phone (808-895-3868), but a fishing forecast for the time you’ll be in Kona as well.

Top Snorkeling Sites

If you have only one day to snorkel, we recommend Kealakekua (“kay-all-uh-kay-koo-uh”) Bay, especially near the Captain Cook monument. This is the spot where Cook died and, aside from that sad note, the snorkeling here is nothing short of amazing.

Kealakekua Bay is designated as a Marine Life Conservation District so sea life in the area thrives.

The bay is populated with many honu, or sea turtles, and spinner dolphins ply the bay’s calm, shallow waters in the morning, where they feed and nurse their calves.

Tropical fish of every size and hue swim among the technicolor coral reefs. It’s an underwater wonderland you won’t want to miss.

You’ll need to take one of the many snorkel tour boats from Kailua town to Kealakekua Bay. Kona Ocean Adventures has a permit to use the bay as does Sea Quest Hawaii.

About 10 minutes south of Kealakekua Bay, you’ll find Two Steps, a nickname for the snorkeling spot in Honaunau Bay (“ho-now-now”). Although once a well-kept secret, word got out and it can be quite crowded (but well worth it).

Volcano Watching

Although Kilauea (“kee-la-oo-ay-ah”), the 4,091-foot-tall active volcano is still erupting, it’s not posing any danger to the surrounding communities.

This means that you may get a chance to get up close and personal to the fiery red-hot spots viewed from the Halema?uma?u (Ha-lay-mah-oo-ma-oo) Visitor Overlook at Hawaii Volcanoes National Park.

Get daily updates on volcanic activity by visiting the U.S. Geological Survey website.

Beaches

Not counting Loihi, a submerged seamount forming off the southern tip of the Big Island, Hawaii is the chain’s newest island.  While Kauai, the oldest of the eight major islands, is estimated to be between 4 and 5 million years old, the Big Island crested the ocean only about 300,000 years ago.

Because nature has had less time to erode the lava into sand, there are far fewer beaches on the Big Island than on the neighboring islands.

That doesn’t mean you won’t find a spot of powdery white sand on which to park your okole in Hawaii – there are several areas that are popular with visitors and locals alike.

Magic Sands Beach (also known as White Sands Beach), located on Ali’i Drive, about 4 miles south of Kailua town, is a surfing hot spot but sunbathers enjoy the soft white sand as well – when it’s there.

When there is heavy surf, typically during winter, the sand washes away, leaving behind bare lava rock — thus the name “Magic Sands.” Have no fear, the sand returns when the wave action calms down.

Then there is Kahalu’u Beach Park, a bit further down Ali’i Drive. Although the sand isn’t quite as soft as that at Magic Sands, the beach is larger and the sea is a bit calmer.

Head north of town, toward the airport and, between mile marker 88 and 89, across from the veteran’s cemetery, make a left turn to get to Kua Bay.

You’ll need to take a short hike down lava rock to get to this amazingly beautiful white-sand beach. The park offers free parking, restrooms and showers, but no shade so bring an umbrella if you plan on spending the day.

The Big Island has some pretty amazing bragging rights – from being home to the world’s most active volcano and the world’s tallest mountain (Mauna Kea, measured from sea level) to providing the United States with its southernmost tip – and you can see it all on one amazing island.

Best of all? How does a temperature of 81 degrees sound right about now?

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Tamara Fisher

If you’re one of those people who won’t buy a product or use a service until you’ve checked the online reviews, then you are as pleased as we are with the proliferation of review sites.

Do you ever wonder if a lot of the glowingly positive reviews are fake? Hey, we don’t blame you – skepticism is healthy.

And, thankfully, some sites, such as Yelp, have strict policies to ensure that the reviews are from real people who’ve actually used the product or service.

It’s not as easy to find reviews of real estate agents as it is, say, a restaurant, but they’re out there.

And, when it comes to something as complicated as a real estate transaction, it’s only natural to want to learn of others’ experiences with any particular agent.

But, again – are these reviews real?

A Zillow representative says “We do have published rules and guidelines around our reviews. In addition, our general Terms of Use is also applicable.

Having said this, we are certainly very aware of and keep a close eye on techniques used for submitting fake reviews . . . We take this very seriously. . .”

I think it’s safe to say that it would be quite difficult to submit a fake real estate agent review at Zillow.

The search for representation in a real estate transaction is something that shouldn’t be entered into lightly.

Understand that who you decide to hire will be the person/people responsible for steering your transaction to a smooth and lucrative closing.

Choose the wrong agent and you open yourself to stress, aggravation and, possibly, loss of money

So, how do you find the right agent for your needs?  Starting online, looking for social proof, is a good place to start.

So, yes, read the agents’ reviews on Zillow and Yelp, but don’t stop there. Check out agents’ websites, looking for evidence of their expertise and integrity.

I also recommend that when you narrow your choices to at least three agents to interview, that you ask each one for references from past clients.

Insist that you be given phone numbers so that you can call each one and ask the tough questions about the services they received.

Ask the right questions

Determine what type of agent you want to work with – what attributes are important to you.

We’ve found that most of our clients were looking for someone who was responsive – who actually returns their calls, emails and texts within a reasonable amount of time.

They also complained about other agents who didn’t listen to them. Make a list of what’s important to you and use it as you interview agents, looking for cues that they are actually listening to you.

While asking the right questions of the agent is important, listening to the types of questions the agents ask you is equally crucial.

If you are a homebuyer, did he or she inquire about your loan pre-approval status and explain its importance? If you are selling your home, did the agents ask you about your preferred timeline?

Pertinent questions, specific to your transaction, are important signs that you’re interviewing a good agent.

It takes money to make money

I don’t know who first said that “it takes money to make money,” but whoever it was, nailed it. And it is even more important when it comes to selling a home.

Naturally you’ll want to learn all you can about each agent’s marketing plan but it’s even more important to ask about their marketing budgets.

A new or part-time agent may be (but not necessarily) operating on a shoestring and you’ll receive the bare bones in marketing services.

To properly market a home requires pulling out all the stops

It requires a balance of both innovative and tried-and-true tactics.

Since first impressions are critical, the services of a professional photographer and, perhaps a stager are a must. Marketing to multiple platforms is also crucial.

Does each agent you interview have a marketing budget to cover these services or does he or she expect you to pay for them?

Finding the right real estate agent to sell or buy a home may seem like looking for the needle in the proverbial haystack, but it doesn’t have to be.

Choose an agent with good reviews on Yelp, on social media and at the big real estate portals, such as Zillow.

During the interviews, sellers should ask the tough questions about marketing and marketing budgets and remember to pay attention to each agent’s listening skills and the questions they ask you.

But, if you are still skeptical, ask agents you interview to supply you with additional reviews from clients along with phone numbers so you can call them.

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Tamara Fisher

We all get complacent when it comes to safety factors in our homes, so let’s make 2018 the year we look at our sanctuaries with an eye toward making them safer.

We’ve compiled some tips on how to prevent the three most common types of home injuries.

Falls

Falls are the most common accidents that occur in the home and can cause serious injury or death. The risk increases when it comes to the very young and the elderly.

Reduce the risk of falls with these tips:

  • Use anti-slip trips on stairs
  • Install non-slip mats in the bathtub and shower
  • Older Americans should consider installing a grab-bar in the bathtub or shower.
  • Protect young children from falls by using hardware-mounted safety gates to keep them off stairs.
  • Tape or tack throw rugs to the floor.
  • The experts at WebMD suggest installing “window guards with quick-release mechanisms (in case of fire) on upper floor windows.”
  • Examine each room in the home for potential fall hazards. Look for floorboards that stick up, cords that may present a tripping hazard and loose stairway handrails.
  • Increase lighting in dark areas and place nightlights in hallways, bedrooms, bathrooms and on stairways.
  • Wipe up spills on slippery surfaces immediately.

Poisoning

The second largest cause of deadly accidents in the home is poisoning. In fact, according to USNews.com, it is the leading cause of home injury deaths for the middle-aged and young adults.

And, the leading causes of home poisonings include the unsafe storage of medications and the inadvertent and improper mixing of drugs.

“It’s kind of the Heath Ledger scenario, where people are perhaps on a prescription drug, or maybe more than one, and then they get a cold and they take a decongestant, and then maybe they add a drink to that,” the Home Safety Council’s Meri-K Appy tells USNews.com’s Luke Mullins.

Actor Heath Ledger, who suffered from insomnia and the common cold, died of combined drug intoxication.

Reduce the risk of poisoning in the home by:

  • Calling the Poison Help Hotline at 800-222-1222, before taking more than one prescription or over-the- counter remedy, or mixing prescription and OTC drugs. The hotline is staffed at all times and they can council you about specific combinations of medicines.
  • Placing the Poison Help Hotline number next to the telephone to use in emergencies.
  • Keeping all drugs out of the reach of children.
  • Storing toxic household products where children and pets can’t reach them.
  • Understanding that the fumes of certain household products may be lethal if combined (such as bleach and ammonia).
  • Not storing toxic materials in food containers.
  • Watching  your child even more closely when you are away from home, especially at a grandparent’s home where medicines are often left within a child’s reach.

Burns

When was the last time you checked the temperature on your water heater?

Since more than half of household burn and scald injuries occur in the bath, set your water heater to the temperature the water heater manufacturer recommends, or to 120 degrees Fahrenheit.

If you have small children, who are able to play with the faucets, consider installing anti-scald devices to faucets.

Here are some additional tips to prevent burns and scalds in the home:

  • Never leave anything that contains hot liquid or food where a child can reach it.
  • Turn all pot handles toward the back of the stove while cooking.
  • Unplug all heated appliances when not using them. These include steam irons, space heaters and curling irons.
  • Extinguish candles before leaving a room, the home or before going to sleep.
  • Smoke alarms and fire extinguishers save lives.

You’ll find additional tips for parents of small children at Parents.com and for older Americans at aarp.org.

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Tamara Fisher

Negotiating the successful close of a home sale begins with price and contract terms and doesn’t end until the deal closes.

One of the most frequently negotiated items, after the aforementioned price and terms, has to do with the home inspection results. They’re also among the most contentious negotiations.

Very few home inspections are “clean,” meaning there’s not a thing wrong with the home. And, many of the items mentioned in the reports are minor.

Your real estate agent will counsel you on how to deal with buyer requests for repairs. But, it helps to know why he or she is making certain suggestions.

When you know how to choose your battles, and why, you’ll understand this negotiating process.

The 3 most common types of requests

When homebuyers find items in the home inspection report that they want fixed, their agents typically counsel them to submit one of the following requests:

1. Ask the seller to make the fixes

This method may delay the transaction and, depending on the extent of repairs or replacements required, and the deal the buyer made over the price, the buyer runs the risk of the request being denied.

One thing you, as the seller, should know,  is that the buyer’s lender may require certain fixes before final approval of the loan. These include issues regarding the home’s safety, structural soundness and to remedy building code violations. Expect to make all of these types of repairs.

2. Ask the seller for a credit of the funds required to make the fixes

While an adjustment to the closing date may have to be made (depending, again, on what’s require to get the home where the buyer wants it), this method is quicker than the first one.

A good buyers’ agent, however will ask the buyers if they can trust themselves to make the repairs with the cash-back at the close of escrow.

Again, as the seller, be aware that certain fixes are required by the VA and by FHA, before the close of escrow.

Also, some lenders and some types of loans forbid a cash credit at closing.

3. Ask the seller to lower the price of the home

Buyer agents will suggest to their clients that they may want to request a price reduction to compensate for the cost of needed repairs.

What you should never agree to fix

It’s amazing to me how old, ugly and scary a home inspection photo of an electrical outlet wall plate can look. Each smudge, every crack and that itty-bitty- chipped-corner, when resized to enormous proportions, makes it look like it’s ready to eat the house.

The real estate agent for the buyer that insists that the seller replace that piece of plastic or that the seller buy and install a globe lightbulb in the outlet over the front porch, should counsel her client that

the inspection report is not a repair list for the seller

Typically, repairs to rectify cosmetic issues can be safely ignored. Lender-required fixes, on the other hand, should always be performed.

Even if this particular buyer walks away, these fixes are now a disclosure item and other lenders will most likely demand them.

During a fiery sellers’ market, you are in the driver’s seat and can safely ignore most of the more trivial requests. In a buyers’ market, however, you may have to take a deep breath and carefully consider caving to the buyer’s wishes.

You don’t have to follow the buyer’s agent’s script

If the items on the buyer’s fix-list aren’t of a safety, structural soundness or building code violation nature, you are under no obligation to respond to the buyer’s preferred remediation method.

In other words, you don’t have to offer a credit, make the fixes or lower the price of the home. You have options, too. Some of these include:

Hold back personal property

If you won’t be taking your appliances with you when you move, don’t automatically include them in the sale. Hold them back to use as bargaining chips during the negotiating periods, such as over price and repairs, suggests Realtor.com.

Instead of lowering the price of the home or making non-essential repairs, offer to throw in the appliances.

Offering a home warranty

Offering a home warranty is a win-win way to address those requests for replacement of an item that, although it may be nearing the end of its functional life, still works.

An aging water heater, for instance, may concern the buyer. A home warranty might ease their anxiety and save you money in the process.

As always, consult with your real estate agent about all possible responses to a buyer’s request for repairs.

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Tamara Fisher

All those gorgeous windows that allow summertime sunshine to stream through the home are useless to view the winter wonderland outside if the glass is covered in fog.

When that frosty outdoor air hits the heated glass of a window, it’s inevitable that the result will be condensation. There is a way to foil this natural process, however.

What causes window fogging?

Condensation is the result of temperature and moisture. The amount of moisture the air inside our homes can hold is limited and it depends on the temperature of the air.

When the air becomes saturated, it becomes warm and moist. When it then comes into contact with the cold glass of a window, it condenses into liquid, according to the United States Department of the Interior.

The process is similar to how your iced-tea glass begins dripping on the outside when the weather is hot.

There are solutions to foggy windows

The first solution to try is to get rid of excess humidity in the home. This is no easy task, considering even our breath adds to a home’s humidity level.

The everyday indoor activities of a family of four “can add more than 18 gallons of water a week into the air in the home”

according to the pros at Thermal Windows, Inc.

No, we aren’t suggesting that you stop breathing but there are steps you can take to reduce interior humidity:

  • Houseplants contribute to the humidity level inside the home. Consider moving them to one room during the winter.
  • Use the exhaust fan in the laundry room, in the kitchen while cooking and in the bathroom while showering or bathing. Allow it to run for about five minutes after you’ve finished.
  • Take shorter showers.
  • Open some windows for a few minutes, several times a day, or in the evening.

Then, check the crawl space and basement for moisture and use a plastic vapor barrier to keep moisture to a minimum, suggests Tom Feiza, author of “How to Operate your Home.”

The Family Handyman offers an easy-to-follow walkthrough of the installation process.

In spring, check the yard for correct grading and drainage.

If all else fails, use a dehumidifier

Excess humidity in the home does more than fog windows. It can cause paint to peel, floors to buckle, wood to rot and insulation to deteriorate. It also attracts dust mites to your clothing, rugs, carpeting and — yup — your bed.

A dehumidifier removes “between 10 pints and 50 pints of water from the air each day,” according to the experts at the University of Rochester Medical Center.

Not only is this good for taking in that view outside your windows, but for your health as well, especially for those who suffer from allergies and asthma.

One of the disadvantages of using a dehumidifier is that these machines require consistent cleaning to discourage mold growth.

Also, small units may not work on a larger home, so the University of Rochester Medical Center suggests larger capacity units, rated at 50 pints a day or more.

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Tamara Fisher

The real estate industry does a spectacular job educating first-time homebuyers. There’s so much valuable information out there that no buyer should go through the process uninformed.

Buying a home in a new community – a brand-new home that no-one has ever lived in – is not only first-time homebuying on steroids, but the industry has left the homebuyer behind in terms of offering information and sharing knowledge about the process.

From the home loan process to choosing your real estate agent, it doesn’t have to be confusing.

Read on to learn answers to the two most common questions we receive from our clients who are considering buying a newly-constructed home.

The preferred lender

Many potential new homeowners walk away from the model home tour under the assumption that they must use the builder’s preferred lender as a condition of the purchase.

Is it any wonder?

Some builders’ representatives use carefully-chosen words to make buyers believe this

When, in fact, nothing could be further from the truth.

Now, the builder may require you to obtain loan pre-qualification from the preferred lender but, in the end, you can borrow money for the home from whichever lender you chose.

These lenders often offer good deals, though. They may offer to pay your closing costs or entice you with a specific amount, such as $10,000, if you obtain your mortgage from them.

Others will reduce the price of the home or throw in attractive upgrades as an inducement to use the preferred lender.

These are a bit more challenging to put into monetary terms so you may need to do some research. You’ll need a dollar figure to work with when comparing this lender’s offer to others.

Incentives, however, may turn out to mean nothing if not compared against other terms, such as the interest rate and points charged

By the way, go ahead and allow the builder’s preferred lender to pre-qualify you for a mortgage – you are in no way obligated to use their services in exchange for loan pre-approval.

You’ll be given a Loan Estimate that you can use to compare this lender’s offering against others. The Consumer Financial Protection Bureau offers a sample of the form, with explanations, on its website.

My best advice to my clients is to go loan shopping before you step one foot into a new home community’s builder’s office. Have facts and figures in-hand, ready to compare to what the builder’s lender will offer.

If you don’t have this backup,  there’s a good chance you’ll get swept up in the excitement of buying a new home, perhaps falling in love with one of the model homes, and your emotions will take over.

Armed with hard facts (offers from other lenders), on the other hand, you’ll be able to react logically instead of emotionally, and that’s a good thing when making a financial decision.

About the builder’s real estate agent

Just as it’s never a good idea to use the homeowner’s real estate agent when buying an existing home, it’s unwise to use the builder’s agent, and here’s why:

The owner’s agent, whether a homeowner or a builder, has one overriding aim: to get the owner the most amount possible for the home

The buyers’ agent, on the other hand, seeks to help his or her client spend as little as possible for a home.

See how the two duties conflict?

Regardless of how congenial, knowledgeable and eager the builder’s agent is, you need your own representation.

In fact, you’ll be asked on your first visit if you’re working with a real estate agent and your answer should always be “yes”

To be safe, we recommend that you ask your agent to accompany you on the first visit. If that isn’t possible, register your agent when you sign in.

Now, instead of using an agent with divided loyalties, you have your own representative who will go to bat for you in negotiating upgrades and extras, guide you during the inspections and assist you in taking care of all those details during the transaction.

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