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| Real Estate Guide |
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Articles and Advice |
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| Tips for paying off mortgage early By Benny Kass DEAR BENNY: I was reading in one of your columns about paying off your mortgage faster by making an extra payment each year. You said to make sure your coupon clearly indicates you are making an extra payment. I did this at the end of 2008, but didn't know whether it should go under an extra payment or payment on the principal. I paid it on the principal because otherwise it wouldn't show up until January as a payment. I called the mortgage company and could not get a straight answer from them. I was told I could do it either way, which was not helpful. Did I do the right thing by paying the extra payment on the principal? I was setting up our payments to come out of our checking bimonthly so the extra payment would be included each year. We also have money going into our escrow account to pay our taxes and homeowners insurance. I am confused. –Lynette DEAR LYNETTE: I am also a little confused about your question, but let me try to answer it this way. I always recommend that if you can make at least one extra monthly payment each year, you can lower the amount of interest you will ultimately pay as well as shorten the term of the loan. For example, one additional monthly payment per year should reduce a 30-year loan down to approximately 22 years. You can make this extra payment in several ways. In December of each year, you can make that extra payment. Or, better yet, divide the monthly payment by 12 and add that amount to your payment each and every month. I recommend that you call it "extra payment" and include it in your coupon as an "extra payment." To be on the safe side, I also would include the amount as a note on the bottom on your check, and again call it "extra payment." If you are using an automatic payment account, instruct the organization paying the loan to make sure they label the extra payment as such. And in January of each year, do your own calculations to make sure that these extra payments have, in fact, been included in your new mortgage loan balance. DEAR BENNY: My wife and I (via our LLC) own a two-story brick building built in 1890. We are eight years into a 15-year fixed-rate mortgage with payments of $816 monthly, and a $42,000 balance. We have a successful business, which my wife operates, on the first floor. For the last several years there has been a successful historic renovation of our downtown. Many of the second-story lofts have been or are being renovated into urban living spaces. Our second-story loft has 1,800 square feet and 11-foot ceilings with 8-foot windows, but has been bricked up since the 1950s. We are considering moving forward with a renovation, but we must borrow to complete this work. Our economy has experienced a downturn recently and our county currently has a 10 percent unemployment rate. I am uncertain if we should continue under these circumstances and if we do, is it wise to refinance the total building or extend our HELOC? We are debt-free (except for our home and business mortgage), own four small businesses, have no children, own other free-and-clear rentals, and we have a six-month reserve on hand in the bank. I have proposed a budget of about $100,000 to complete this work, and other downtown rentals are running at about $1,100. What advice can you offer given the current economic situation and our borrowing needs? I do feel confident that given a 90 percent occupancy rate we can accomplish a slightly positive cash flow over our PITI. –Michael DEAR MICHAEL: I always appreciate hearing positive things from my readers. You have asked the $100,000 question, but I can provide only general information. Only you can make the final decision. Since you wrote this question to me, (a few months ago) the economy has not gotten better, and indeed it has declined further. Perhaps the new Obama administration will create hope and optimism similar to Camelot when John Kennedy became president back in 1960. You indicate that the unemployment rate in your county is quite high, but you will need a 90 percent occupancy rate to make a profit. What guarantee do you have that you will reach that goal? Keep in mind that being a landlord means you will have vacancies. Have you lined up any potential tenants, and checked out their financial and credit ratings? That's the first thing I would do before launching in the project. Only you can make the final decision. However, if it were up to me, I would hold off at least until we see some signs of an economic recovery. You can always do this later, but if you fail now, you could lose the building. DEAR BENNY: In June 2007, I purchased a house with a fixed-rate mortgage. A year later, the mortgage company requested an extra payment of $715. Six months later, they sent me another bill, claiming an extra payment was required. I am being told that a mistake was made on the original amount needed for insurance and taxes, and they cannot be sure if or when additional extra payments will be required. And nobody seems sure whether I will be allowed to take over payment of my own insurance and taxes, which I've always done in the past. Since I'm not a first-time homebuyer and have excellent credit and have managed house insurance and taxes in the past, this all seems highly weird. –Willi DEAR WILLI: I personally dislike the concept of having to pay money monthly into an escrow fund managed by a lender to pay real estate taxes and insurance. However, it is legal and most lenders (especially FHA and VA) require this. My objections are twofold. First, most lenders use this money as collateral and do not pay any interest on it. Second, lenders sell/assign loans all over the country, and often a lender in one state does not know where or how to pay the real estate tax in your particular county. But whether you are a first-time homebuyer or have good credit, if you want the loan you have to comply with the lender's requirements. You should obtain and carefully review the lender's financial records regarding your loan. Find out the costs of your tax and insurance, and compare those costs to what the lender has been charging -- and paying. By law, lenders have the right to a two-month cushion, just in case you miss a mortgage payment. Finally, I recommend that every borrower who escrows for taxes and insurance send a demand letter once a year (or twice a year if real estate taxes are paid every six months) requesting proof that your lender did, in fact, make the required payments. This is especially true in today's market economy, when many mortgage lenders are no longer in business. DEAR BENNY: My mother recently applied for a reverse mortgage. I have been trying to find a benchmark for reasonable costs associated with this loan to no avail. Could you please guide me in the right direction? –Peter DEAR PETER: Congress recently enacted a law putting a maximum limit of $6,000 on closing costs for federally insured reverse mortgages. But different lenders will have different costs. I recommend that you do a search for "Reverse Mortgage" at your favorite Internet search engine. Specifically, AARP has a lot of helpful information, which can be found at www.aarp.org. DEAR BENNY: I have an investment property I would like to use in a 1031 tax-deferred exchange. I have great credit scores (770), but my debt ratio will not allow me to qualify for a loan on the new property. I currently own the current investment property in my own name. I now have a significant other in my life. Can he go on the new loan and title work, allowing me to take advantage of the 1031 tax exchange rules and qualify? We plan on the new property being our retirement home eventually. –Kathy DEAR KATHY: It all depends on the price of the properties. Your current property is the relinquished property and the new one is called the replacement property. Since you own the relinquished property by yourself, the replacement property must also be in your name only. However, let's take this example. The relinquished property will be sold for $500,000, and the replacement property will cost $750,000. If you and your significant other take title to the replacement property as tenants in common, with your interest equaling two-thirds (i.e. $500,000), I believe this would fly through the Internal Revenue Service. But confirm this with your own tax and legal advisors. Benny L. Kass is a practicing attorney in Washington, D.C., and Maryland. No legal relationship is created by this column. |
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| A primer on purchase offers By Dian Hymer Decades ago, sellers priced a little high to leave room to negotiate down. Buyers typically offered 5 percent less. Then they negotiated and settled at a price in between. Today, there is so much variability in the housing market that it's impossible to use a pat formula for coming up with an offer price. Your goal is always the same: You want to buy the best house for your needs and pay the lowest price. In many cases, you can start with a price that is less -- maybe even considerably less -- than the asking price and negotiate from there. However, this strategy might not work in some California inland markets where housing prices have dropped about 50 percent in recent years. Some low-end housing markets plagued with foreclosures have heated up in recent months. Multiple offers are common, and some listings sell for more than the asking price. Tailor your offer price to the specific house you want to buy. How much you offer should depend on how much you can comfortably afford to pay, which may be less than what the lender says you can afford. The price should be determined by current local market values, how well the listing is priced for the market, and whether or not you are in competition. HOUSE HUNTING TIP: Buyers making offers in competition should try to make a rational decision regarding how much they're willing to pay. Don't get caught up in the frenzy of activity and offer more than your top price for the property. If you overpay, you could get cold feet and back out. In this case, your deposit might be at risk. An appraisal contingency makes your offer contingent on the house appraising for the price you agreed to pay in the purchase agreement. If the property appraises for less than that price, you can withdraw from the contract and your deposit will be returned to you. That is, if your purchase agreement clearly stipulates this. Other options are to try to renegotiate the price with the seller or put more cash down to make up the difference between the loan amount the lender is willing to lend and the purchase price. Lenders are being just as cautious about appraisals as they are about qualifying buyers for a mortgage. Some appraisals are coming in lower than market value and some lenders are knocking down the appraisal 5 percent or so if they're concerned that home prices might decline. Buyers who offer an under-asking price can improve their chances of starting a dialogue with the seller if they are preapproved by a lender for the financing they'll need to close the deal. The number of transactions that fail has increased in the current market. In most cases, this is due to buyers having difficulty getting financing. If the sellers know you will be able to perform, they'll be more likely to work with you to come up with a mutually acceptable price. Short-sale sellers will need lender approval if the accepted price is lower than the amount of financing secured against the property. This can be a slow and tedious process. Many lenders realize that it makes more sense for them to work with a buyer on a short sale than it is to let the property go into foreclosure. But, your contract should include an escape clause so that you can withdraw without penalty if the lender is not responsive. THE CLOSING: If you make a low offer on a bank-owned property (REO) and you don't get a response, make another offer at a higher price, but only if you think the property is worth it. Dian Hymer is a nationally syndicated real estate columnist and author. |
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| Parents shouldn't place kids' names on real estate Unless occupancy rules are met, capital gains tax may be huge By Benny L. Kass DEAR BENNY: Twenty years ago my mother placed my name on the deed to avoid issues when she passed on. Will the IRS treat this as inherited property or consider it investment property? Did I inherit her half of the property? --Theo DEAR THEO: Why, oh why, do parents do this? For example, let's say your mother and father bought their house years ago for $20,000 (sounds great but that was a lot of money then). For tax purposes, your parent's tax basis was $10,000 each. Your father died 20 years ago, when the house was worth $40,000. Under a legal concept called the "stepped-up basis," the market value on the date your father died was added to your mother's basis. Thus, her basis would be $30,000 (her original $10,000 plus half of the $40,000). Did your mother add you to title or are you the sole owner? I did not understand your question. A very strict tax rule is that the basis of the person giving the gift (the donor) becomes the basis of the receiver (the donee). So, if my calculations are correct, if you are on title with your mother, your tax basis for half of the property is $15,000. On the other hand, if you are now the sole owner, your basis is $30,000. Why is this a problem? Because unless you have lived in the property for two out of the previous five years before it is sold -- in which case you can exclude up to $250,000 of any gain or if you are married and file a joint tax return you can exclude up to $500,000 of gain -- you will have to pay a lot of capital gains tax. If you are now the sole owner, the IRS looks at the difference between the tax basis and the sales price. Any profit that you make is taxable. If the property has been rented out, then you may want to consider doing a 1031 (Starker) exchange. You will have to discuss all tax issues with your own accountant. If your mother is still on title, upon her death you will receive the stepped-up basis for her half. But your half is still, unfortunately, the basis described above. DEAR BENNY: I hold a $120,000 promissory note backed by a first deed of trust in Virginia. The borrower paid back $60,000 in principal in 2001, and I subsequently loaned him back $60,000 in 2004. My thinking was this second advance was covered by the recorded deed of trust and if any dispute ever arose, I could produce the cancelled check and refuse to sign the certificate of satisfaction. Opposing counsel says the 2004 advance is not secured by the deed of trust and is a personal, unsecured loan. Is that correct? --Bob DEAR BOB: There is an old saying that where there are two attorneys there are three opinions. I do not practice law in Virginia, so you should really get a specific opinion from your own attorney -- or at least ask the other lawyer for his or her legal opinion. Is there any language in your promissory note and deed of trust that would cover the situation? The problem is simple: Creditors of the person who borrowed the money from you are put on notice of your security interest because it is recorded among the land records in the county where the property is located. However, these creditors want to be paid also, and if they can find a "legal loophole" they will exploit it. And while they are on notice of the original loan, they have no way of knowing that you advanced additional moneys -- even though the amount is the same as reflected in the original note and deed of trust. The issue of future advances -- sometimes referred to as "dragnet clauses" -- is a very complex area of law. State law -- and the specific terms and conditions of your legal documents -- will determine whether the additional moneys are secured. The courts will also look to the intentions of the parties. Did your borrower intend that the new loan would, in fact, be covered under the original deed of trust? I must caution you, however, that in a number of jurisdictions, if any one gets a judgment against your borrower (or a contractor files a mechanic's lien) the second advance that you gave would be junior in priority to those new creditors. |
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| Not everyone's keen on fluorescent lights Some say CFLs consume extra energy when turned on By Paul Bianchina Q: I have a question about fluorescent bulbs and power usage. I have been told that fluorescents draw the most power when they are turned on and almost no power to keep on. Therefore, they should be turned on and left on, and should not be turned on and off during the day because it would end up using more power in the process. Is that true? --Richard C., via e-mail. A: A fluorescent light does consume some additional energy when first starting up. This is known as "inrush current," and is equal to about five times what the operating current is. However, with today's rapid-start bulbs, that initial surge only lasts for half of one cycle. Electrical current is 60 cycles per second, so the initial startup surge lasts only for approximately 1/120 of a second. In other words, you would have to turn the lamp off only for a couple of seconds to save the equivalent amount of energy that it takes to turn it on again. With any type of light bulb in your home -- incandescent or the new compact fluorescent lights (CFLs) -- it's best to live with the old rule of thumb of turning off the light whenever you're going to be out of the room for more than just a couple of minutes. Q: We have some stucco houses on our street. A couple of them had dry rot, and they had to remove the siding and some of the wood. We were wondering if there is a way to check to see if our stucco house has dry rot. --Art W., via e-mail. A: There can sometimes be some telltale signs. Since water runs downhill, if moisture has been getting behind the stucco it will often migrate down to the bottom of the wall. On some older stucco houses you may be able to see or feel soft spots at the very bottom of the exterior walls, where they meet or overlap the foundations. Also, examine the stucco carefully for signs of discoloration and cracking, and press on those areas to see if there is any movement in the stucco or if the wall underneath feels soft. You can examine the wood around window and door casings, both inside and outside, for signs of rot or water intrusion, and examine baseboards and flooring around the inside of the exterior walls to look for softness or water stains. Finally, you can check under the house at the exterior walls, looking for the same indicators. You mentioned that a couple of the houses on your street had dry rot problems. I would also suggest that you stop by and chat with neighbors who have had work done and see what occurred with their homes. They can tell you exactly where and how extensive the rot was, and if the homes were all built around the same time and by the same builder, that should also get you a few additional tips on where to search. If you do suspect dry rot or other moisture problems, you can contact a contractor who specializes in insurance-related home repairs. These specialized contractors typically have moisture meters that are capable of detecting moisture inside walls. You can also see if any contractors in your area have thermal imaging cameras, which can "see" inside walls for differences in heat patterns that can indicate moisture problems. Q: I have a microhood that has to be replaced. I'm not a big do-it-yourselfer person, but I'm OK with most straightforward projects. On a scale of 1 to 10, how difficult is it? Can you give me some basic instructions? --Michael T., via e-mail. A: If you are replacing the microhood with one that is the same size and type, with the same venting arrangement, then the replacement should be pretty easy. There could certainly be some variables with your installation, but in general the steps should be as follows: 1. Unplug the old microhood, and remove the tape that seals the vent duct to the transition on top of the hood. 2. Remove any bolts that hold the microhood to the bracket, and slide it out of the bracket (you may need two people for this). 3. Remove the old mounting bracket, unless it's identical to the new bracket. 4. Install the new mounting bracket, slide the new microhood into the bracket, reconnect the vent, and plug the unit in. Complete installation instructions are included with the new hood, and because it just plugs in there is no electrical wiring required. As long as there are no alterations to the vent -- which there shouldn't be if you're using the same make and model -- then on a 1-to-10, simple-to-difficult scale, I would rate the job about a 3. You can always give it a try on your own, then hire someone to complete the project if you end up not feeling comfortable with it. |
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| Water conservation tips By Amy Westervelt It seems you can hardly open a newspaper these days without reading the headline "Water is the new oil." But what does that mean exactly? In fact, water shortages may cause more severe problems than oil shortages: our lives literally depend on water, plus there are several alternatives to fuel but none really to water. We can technically "make" more water through techniques like rainwater catchment and desalination, but few individual homeowners have their own catchment tanks and even fewer are likely to rig up their own desalination plant. Even if such things were easy, it would still behoove us all to reduce our water usage first, not only because water is scarce, but also because we could all stand to shave a few dollars off our water bills. With that in mind we compiled the following tips to help you do exactly that. In the Shower Install water-saving shower heads or flow restrictors. Readily available at any hardware or home store, low-flow shower heads deliver 2.5 gallons of water per minute while traditional shower heads use 5 to 7 gallon per minute. Take a Shorter Shower. You don't have to be a hero, just shave off a couple of minutes. According to the EPA, even a one or two minute reduction in shower time can save up to 700 gallons per month. Use the Cold Water. If your shower takes awhile to warm up, catch the cold water in a bucket and use it on your lawn or in the garden. In the Bathroom High Efficiency Toilets. If your toilet is from 1992 or earlier, you probably have an inefficient model that uses between 3.5 to 7 gallons per flush. New and improved high-efficiency models use less than 1.5 gallons per flush - that's 60 to 80 percent less than their less efficient counterparts. According to the EPA, over the course of 10 years, one high-efficiency toilet can save a family of four roughly $1,000 without compromising performance. Displace Water. Here's an old-fashioned trick: Put a plastic bottle or bag weighted with pebbles and filled with water into your toilet tank. Displacing water in this manner allows you to use less water with each flush, saving between 5 and 10 gallons per day. Check for Leaks. To check your toilet for leaks, put dye tablets or food coloring into the tank. If color appears in the bowl without flushing, there's a leak that should be repaired. To check showers and faucets for leaks, read your water meter before and after a two-hour period during which no water is being used. If the meter does not read exactly the same, you probably have a leak. Fixing a leaky toilet saves up to 400 gallons of water per month, while fixing a leaky faucet can save up to 225 gallons per month. Brush and Shave Efficiently. Turn off the water while brushing your teeth or shaving. Fill the bottom of the sink with a few inches of water to rinse your razor. Turning off the water while brushing and shaving saves six gallons of water a day. In the Yard Timing Is Everything. Sprinklers running when it's raining? Not cool. Put your irrigation system on a weather-based schedule. If you set it to water in the early morning, that's even better. Using weather-based irrigation scheduling on a moderate-sized yard can save up to 37 gallons of water per day Maintenance. Make sure a leaky sprinkler head isn't costing you dollars and gallons. Go Native. Use native plants in your landscaping that are adapted to the local weather, and you won't have to water them as much (if at all). Native plants in the yard can reduce residential water use by 20 to 50 percent. |
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| Pros, cons of buying home in today's market Fixer-upper not necessarily best investment for first-timers By Dian Hymer When the housing market slows down, buyers often wait on the sidelines for a clear sign that the market has recovered. The only problem with this strategy is that you can only know for sure that a market has turned through hindsight. In other words, you can't time the market. A slow market is perceived as an opportunity by some buyers, as it takes longer for listings to sell. The inventory of unsold listings tends to grow, giving buyers more choice than is the case in a hot seller's market when listings sell quickly. In a high-inventory market, there are usually fewer multiple offers so buyers can cut a better deal with the seller. However, it pays to be careful about what you buy and how you finance the purchase. HOUSE HUNTING TIP: The least expensive home in an area may not be the best investment. Unless you are a contractor with years of experience fixing up properties, you should hire the best inspectors you can find to look carefully at the condition of a property before you buy. Many home buyers, particular first-timers, don't give enough attention to the cost of maintaining a home. Home maintenance is a necessary part of home ownership. It can be expensive, particularly if you need to hire others to do the work. Some homes require more maintenance than others. A good inspector should be able to give you a good indication about how much work a home needs now and how much it will need on an ongoing basis. Buying a well-maintained home that will also have relatively low ongoing maintenance is one way to keep your overall housing costs down. Inexperienced home buyers should resist buying a fixer-upper just because it's offered at a cheap price for the neighborhood. It's difficult to get a firm grasp on renovation costs during the inspection contingency period, particularly if it's a big job. Remodeling projects can run over budget because of unanticipated problems like faulty electrical or plumbing, or an old furnace that goes bad. Or the city inspector could require that you do additional work to correct non-code-complying improvements done by previous owners. These sorts of costs can mount up so that you end up with far more invested in the property than it's worth on the market. Try to avoid buying a home that has an incurable defect. This is something that you can't change, like a location next to a freeway. These homes don't hold their value well when the housing market softens. A risk of buying in a slow market is that the value of what you buy might drop before it rises. Or, prices could stay flat for some time, which means that you won't build equity unless you pay down principal on your mortgage. If you should have to move during a time when prices are soft, you might not be able to sell for the amount you paid. To decrease this risk factor, don't buy for the short term. Give careful consideration to how you finance your purchase. Stay away from mortgages that have short due dates and balloon payments. If the market in your area stays soft for longer than anticipated, you don't want to be caught having to refinance at a time when your home might not appraise for the price you need to complete the transaction. THE CLOSING: A benefit of buying in a soft market is that you have the opportunity to buy at a reasonable price, without having to compete with other buyers. But, it makes no sense if you put yourself at financial risk. |
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| Contingent sale offers can benefit sellers By Dian Hymer Convincing a seller to accept an offer that's contingent on the sale of another property can be challenging. The odds of acceptance improve if the offer is structured to the mutual benefit of both buyers and sellers. From the buyers' perspective, there are advantages and disadvantages to contingent sale offers. A big advantage is that the buyers don't have to go through with the purchase if their home doesn't sell. They don't risk much. The buyers may incur costs of inspecting and appraising the property, but the expense is minimal compared to buying a new home before selling the old one and ending up owning two homes at once. From the sellers' point of view, contingent sale offers are not desirable because the outcome is uncertain. This is why sellers who agree to a contingent sale offer usually want a release clause in the contract. A release clause allows sellers to continue to market their home and accept other offers in backup position, subject to the collapse of the primary offer. If the first buyers can't perform, they have to withdraw from the contract so that the seller can proceed with backup offer. Buyers can spend a lot of time finding the right house to buy. If they can't sell their current home before another buyer boots them out of contract, they have to start house hunting again. HOUSE HUNTING TIP: A contingent sale offer can be structured to give buyers more certainty about being able to close the deal. Normally, when there is a release in a contingent sale offer, it goes into effect as soon as the contract is ratified. But it doesn't necessarily have to go into effect then. Buyers can request that the release clause not go into effect for a period of time, say 14 to 21 or so days. If the buyers' home is ready to be put on the market and it's priced right and well located, there's a chance it will be under contract before the release clause goes into effect. A release clause that doesn't go into effect immediately should specify that if the buyers' property is under contract within the specified time frame, the release clause will not go into effect unless that deal were to fall apart. Sellers might think this approach benefits only the buyers. However, it can benefit the sellers in terms of their overall marketing strategy. When sellers of a property that's listed on the Multiple Listing Service (MLS) accept a contingent sale offer with a release clause, this information is published in the MLS. It is a material fact affecting the sale. A buyer can make an offer only for a backup position. Many buyers don't want to waste their time. So, a release clause can slow down the marketing of the sellers' property. And, it can be difficult to regenerate enthusiasm about the property if the buyers' property doesn't sell and the sellers' listing is still encumbered by a release clause. The sellers' property will show up as pending in the MLS if the buyers and sellers agree to delay the activation of the release clause. If the buyers' property doesn't sell by the end of the specified time period, the sellers' property will show up in the MLS as back on the market. This quickly and clearly announces that the listing is available for sale with no strings attached. THE CLOSING: Make sure your agent includes in the confidential MLS remarks to agents that the listing is back on the market because the buyers' home didn't sell, and due to no fault of the listing. Dian Hymer is a nationally syndicated real estate columnist and author. |
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| Install crown molding like a pro Job easier with second person, carpentry book By Paul Bianchina Q: I am remodeling my living room and would like to install a wide cove molding at the ceiling, but I need help in mitering the corners. Do I cut them at a 45-degree angle? Do I cope them? Any information would be greatly appreciated. --Steve H. A: Crown molding is one of the most attractive and interesting molding features you can add to a room. It is also, however, one of the more difficult finish carpentry tasks to undertake. Crown molding sits at an angle to the wall, as opposed to a base molding that sits flat against it. Therefore, you have to deal with a compound miter -- one that angles in two directions at once -- as opposed to the standard miter used on a baseboard. You have several options open to you for how to do this, and I would recommend that you purchase some inexpensive, paint-grade crown molding to practice with until you get the hang of the techniques. Some of these techniques are also very difficult to explain in words, so your best bet is to purchase a book on finish carpentry (or get one from the library) that has illustrations of the various step-by-step procedures that follow: Compound miter saw: If you have access to one, the easiest way to cut crown molding is with a compound miter saw. These saws have the ability to be set at an angle relative to the back fence as well as having the head of the saw set at an angle, allowing you to cut both angles at the same time. Full instructions for the proper angle settings are included with the saw (they differ with the type of crown molding being installed). If you have a lot of molding work to do you may want to invest in one, or they can also be rented. Table or radial arm saw: You can also make compound miter cuts on a table saw by tilting the blade and then holding your molding against a miter gauge that's set at an angle. Table saws, however, tend to be awkward for handling long pieces of molding. You can also use a radial arm saw by angling both the arm and the blade, but I've found the cuts on these to be somewhat rough. Standard miter saw and miter boxes: You can use a standard miter box or miter saw to cut crown molding. The trick is to cut the molding upside-down, and with both of the rear faces in perfect contact with the fence. In other words, the molding is upside-down and facing you, with the ceiling edge down and against the bottom of the miter box and the wall edge up and against the back of the box. You can then make the cut with the blade set at 45 degrees. Coping: This is done by first square cutting the end of one piece of molding and running it all the way into the corner, then cutting the end of the intersecting one in a pattern that matches the face of the first piece. This is not as difficult as it may seem, but it does require some patience and the use of a relatively inexpensive hand tool called a coping saw. Corner blocks: If you don't want to mess with angles at all, you can install decorative corner blocks at each inside and outside corner, then simply square-cut the molding and butt it against the flat sides of the blocks. Corner blocks are not a stock item at most stores, so ask to see a molding catalog to find out what's available. By the way, with whatever technique you decide on, crown molding is considerably easier, safer and more accurate to install if you have the help of a second person. Q: I own a small commercial building, which has a flat roof that was recently asphalted. However, there is a low spot where water still accumulates, and I don't know how to correct the problem. Does this water accumulation pose a problem? How do I get rid of this constant puddling, and can a repair wait until summer? --Jon K. A: No flat roof is truly flat, since it has to be sloped slightly to allow the rain water to run off, typically to a gutter or scupper where the water is collected and directed to a drain. In your particular case, there are a couple of things you'll need to determine: 1. Is the low spot you mention right at a drain of some sort? If it is, it may have been intentional to have the roof slope to that point, but it may be that it was never constructed correctly in the first place. In other words, the design or construction of the roof isn't allowing the water to get to where it was intended to go. 2. Did this low spot exist before the roof was redone recently? It's possible that the roofer made a mistake during the asphalting process that actually created a low spot where one didn't exist before. 3. When you step on this area, does it feel structurally solid? If there is "give" in the sheathing underneath the roofing at this point, there could be a structural problem -- dryrot, broken or overspanned framing, etc. -- that needs to be repaired in order to eliminate the low spot. Whether this can wait until summer is dependent on what the problem is. If it's simply a low spot in the asphalt but the roof is structurally solid and the roofing is not leaking, then you can wait for better weather. Structural problems or any situation where water is getting below the roofing -- even if it isn't entering the building -- needs to be dealt with right away. |
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| Tailor open house to market conditions By Dian Hymer People attend Sunday open houses for all sorts of reasons. There are curiosity seekers; neighbors might stop by to see a house if it hasn't been on the market in years; and some come in search of decorating ideas or to check out prices in the neighborhood. In other words, most people who walk through an open house aren't really buyers. This fact infuriates some sellers who feel that public open houses are a waste of time for everyone except perhaps the agent holding the house open who might pick up a client. However, in an area where listings are in high demand, public open houses can be an effective way to drum up buyer interest. When there aren't enough homes for sale to satisfy the need, buyers gravitate to the limited supply that is available. An active open house can create a sense of urgency. This is particularly the case when a listing is new on the market in a sought-after neighborhood. During the hot seller's market of a couple of years ago, public open houses were a useful marketing tool. In some cases, listing agents held off letting any buyers preview the home until the first public open house, thereby forcing buyers to attend the grand opening en masse. In most markets around the country, these frothy days are over. Some markets that didn't heat up a couple of years ago are doing well now, like Raleigh, Austin and Salt Lake City. But, generally, the market has softened in most markets that were previously hot. Even in a soft market, some buyers find the house they buy at a public opening. However, a sale is much less likely to occur this way. In a soft market, buyers are more reticent, as there is less impulse buying than there is when prices are increasing. In a slow market, there are fewer buyers and it takes longer for listings to sell. Buyers usually have more to choose from. A listing that's held open often in a market like this can send the wrong message. It can telegraph a sense of desperation. Or, it may indicate that the price is high, or that there is something wrong with the property. HOME SELLER TIP: A strategic use of open houses is recommended in a buyer's market. You might have your home open when it's new on the market, and periodically during the marketing period so that the prospective buyers and their agents are aware that you are still actively searching for a buyer. But, it's generally not a good idea to have your home open every weekend. You might overexpose it to the market. It's not absolutely necessary to have a public open house to sell your home. The Internet has made it possible for buyers to preview listings without even getting into their car. A good Internet presence for your listing on well-attended Web sites like www.realtor.com, which includes quality photos of the property, is critical. Eighty percent of today's home buyers use the Internet to find a home. When buyers see a listing they like, they request a showing. There's another aspect of public open houses to consider. If there are a lot of listings on the market, an open house can give buyers an easy opportunity to run through the house and cross it off their list. THE CLOSING: The most productive showings are the ones where the buyers are accompanied by their agent who can help them work through any objections they might have to the property. |
| Small improvements make most of utility room More efficient ways to handle laundry, pets, muddy shoes By Paul Bianchina Call it what you will -- utility room, laundry room, mud room -- the names say it all. It's a place for the washer and dryer to live, a place for wet and dirty clothes to hang out, a landing point for muddy boots and chore jackets, you name it. If you have one of those multipurpose rooms and you'd like it to do even more, or at least do it more efficiently, here are a number of suggestions that allow a hardworking room to work even harder. Deal with your hang-ups: Adding a clothes pole will give you a place to hang damp clothes while they finish drying, which saves dryer time and helps prevent clothes from shrinking or wrinkling. Clothes poles can be hung on the same brackets used for closet installations, and also offer an easy way of adding another shelf above the pole. You can also make a simple and decorative clothes rack from piece of wood with pegs or metal hooks. Attach it to the wall near the door for convenient storage of coats and umbrellas. Kick your shoes off: If you're fortunate enough to have a larger utility room that's accessible to the outside, add a bench to make it easier to sit down and remove wet shoes. Leave the bench open underneath, and add a shoe rack to provide a convenient spot for drying and storing shoes. Don't hamper your laundry day: By installing some convenient hampers, you can make laundry day a little easier. One solution is to install roll-out hampers in base cabinets, which better utilize the cabinet space and also free up floor space. Use at least two hampers, so clothes can be sorted as they're tossed in. If cabinet space is at a premium, there are a number of compact hamper units available at home centers, both freestanding and wall hung. Iron out the wrinkles: If you have an old, space-hogging ironing board that always looks ugly and is always in the way no matter where you put it, consider the addition of a folding ironing board that hides away inside the wall. Ironing board cabinets come completely preassembled, and simply slip into a recess in the wall between the studs. After installation, the only thing visible is the face frame and door, which are available in several door styles and wood types to match any home. Basic models of folding ironing boards house the board only, and are the easiest to install. Some of the upgraded versions have an interior electrical outlet with a timer that lets you plug in the iron and then shuts it off again after a predetermined interval, and therefore require an electrical connection as well. Add some flat space: The addition of a flat table or counter for folding clothes can be a real time and work saver. Clothes can be dealt with as soon as they come out of the dryer, and the wide, flat, solid surface is a whole lot easier to work on than folding clothes on the bed. Plastic laminate counters work best here, being durable, water-resistant, smooth, and easy to clean. If space is limited, you might consider a folding table. Attach a laminate counter to the wall on hinges, with legs underneath -- secured either to the wall or to the underside of the counter -- that fold out to provide support and fold back in to let the counter lie flat against the wall when not in use. It also keeps your counter from getting piled high with junk, which kind of defeats its original purpose. Paws for more help: If you're fortunate enough to have a pooch or two sharing your home, the utility room can be an ideal place to handle some of their storage needs as well. A wall-hung hook or peg rack can hold leashes, collars and a towel for those damp, after-walk cleanups. There are a number of sturdy and sanitary bins available to store dog food, and a dedicated shelf or small cabinet is ideal for storing grooming supplies, medications, toys and other items that need their own home. For those of you with larger utility rooms, you might be able to dedicate a corner to a dog-wash area and eliminate the need for those messy bathtub encounters. Some possibilities for this include installing a small bathtub on a raised platform -- the elevated height makes dog-washing a lot easier on your back -- or having a spot for a portable wash tub that can be stored away when not in use. Booster Bath is a great, affordable wash tub that breaks down easily for storage when not in use. Most of the items you need for a utility room makeover are readily available at any home center. |
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