Test and Clean Your Smoke Alarms

You've heard all the statistics about how many people die in home fires every year, but if you're like most of us, this hasn't motivated you. Batteries are easier to replace than people. Don't neglect your smoke alarms.

What?

Test and clean your smoke alarms.

When?

1. Press the test button once a month, but we'll only remind you every six months.
2. Test your alarms with smoke at least twice a year.
3. Clean your alarms at least twice a year.
4. Replace the battery once a year.

Why?

We don't want to get really heavy, but fires kill.

How?

1. Press the test button. This verifies that the unit has power and an audible alarms, but it does not guarantee smoke detection.
2. Blow smoke into the unit. It should take a minimal amount to activate the alarms. The smoke can come from a cigarette, a candle, or preferably an aerosol canister specifically designed to test smoke alarms.
3. Open the alarms cover and lightly vacuum the interior components with the fine brush attachment for your vacuum cleaner.
4. Pull out and disconnect the battery. Replace it with a new one.

Tips

• Smoke alarms have a life expectancy of approximately 10 years. If you don't know how old the smoke alarms are, replace them or smoke test them as described above.
• If your home has a security system connected to a central station, contact the alarms company before testing the smoke alarms.

This Week In Business

This week, business picked up some. It had been relatively dead until this week. Actually, have quite a few inspections scheduled for next week as well. I think the continued marketing efforts are really working. One inspection that I did this week was for a past client earlier this year and I have one scheduled next week with a past client that I worked with over 2 years ago. Despite what is happening in the market, We're not going anywhere and I promise that the Chicago land Real Estate market will see some new and innovative things from Xcellence Inspection Services in 2008.

Seven Tips to Sell Your Home

I came across this article today in the online version of the Wall Street Journal Real Estate section. I am running this from Seattlepi.com in its entirety.

If you are looking to sell, hope you learn something....

Redfin offers 7 tips to sell your home

By AUBREY COHEN
P-I REPORTER

There's a simple reason why the folks at Redfin started mining real-estate data for lessons on how to sell homes.

"We couldn't sell any homes," Glenn Kelman, the Seattle brokerage's chief executive, explained earlier this week. "Now that's an overstatement ... In the fall, we started to really struggle to sell our listings."

The Redfinites found that, although there's a lot of conventional wisdom -- "voodoo," Kelman calls it -- about the best way to sell a home, it's not necessarily backed up with numbers.

So Redfin's computer scientists started dissecting past real estate sales, and on Friday the company released the first seven conclusions from an ongoing autopsy, which included a review of existing research and fresh number crunching.

The primary determinant of how fast a home will sell, and for how much, is the home itself, the study says.

"But taken together, these tactics can, we believe, yield a small but significant improvement in a home seller's results," the study says.

Some of the research confirms the conventional wisdom -- such as starting with an overly ambitious price can lead sellers to fetch less than starting with a more realistic one. "One price reduction begets another," Kelman said. "It's a signal to buyers that they can bargain."

But other conclusions upend traditional ideas, such as when to list a home.

"It's an article of faith to debut a listing on a Thursday," Kelman said.

But Thursday's actually the worst day, while listings debuting on the best day, Friday, get an average of 7.7 percent more Web visitors in the first week, according to Redfin's analysis of 119,000 listings.

"People apparently come to work on Friday morning looking for brand-new properties to tour over the weekend," Kelman said.

Another conclusion: Don't set a price just above a common Internet search threshold. Being just above the upper limit for most buyers in a neighborhood cut a listing's traffic by as much as 7.1 percent, according to an analysis of Redfin Web traffic.

And listings on sites such as Craigslist, which don't get automatic feeds from multiple listing services, are viewed more than those just on listing-service sites.

Another finding based on outside studies is that sellers more involved in the process sell homes faster and for more.

"If you stay really engaged, you're going to get better service from the agent," Kelman said.

But some Redfin recommendations were greeted with a yawn by local real estate agents; others with raised eyebrows.

"I would say this is all pretty basic stuff," said Deborah Arends, a RE/MAX Northwest Realtors agent who was featured as a traditional agent opposite Kelman in a "60 Minutes" segment about online real estate earlier this year.

"It's nothing new," Michael Skahen, broker at Seattle's Lake Real Estate, echoed on Friday. "Don't overprice your property. We have been giving people handouts for 25 years telling them that."

Arends and Skahen also agreed with using Craigslist and other Web sites, and said it's best to set the price right at a threshold, so it's retrieved by searches that start and end that that number.

But Arends also cautioned against putting too much faith in such general recommendations.

"It's great to put information like this out there, but it doesn't apply to every situation," she said.

A teardown or fixer house, for instance, should not debut on a Friday because that would bring less attention from builders, she said, adding that her Web site gets the most hits in general on Mondays.

Skahen favored debuting listings on Thursdays, but was open to other ideas.

"I might even discuss it at our next office meeting to see what agents think," he said.

So why is Redfin sharing its newfound selling secrets?

Part of it is to have dialogue with the rest of the industry and part of it is to attract new clients, Kelman said. "And part of it is I've never been able to keep a secret."

The Redfin scientists also found homes with prices ending in 500 sold closer to list price than ones with prices ending in "000," but left that out of its recommendations because other research contradicted their study.

Redfin is continuing to look into this and other issues, such as the effect of re-listing a home after a pending sale falls through. And the company is taking suggestions.

"We got done probably a tenth of what we wanted to get done," Kelman said.

TACTICS FOR SELLING A HOME

Don't shoot too high -- homes priced right to begin with often sell for more than those that have to come down from an unrealistic initial price.

Price for the Web -- prices just over a certain threshold, such as $350,000, will be excluded from Web searches capped at that amount, cutting potential viewings by as much as 7.1 percent.

Debut on Friday -- a study showed that listings debuting on Friday got an average of 7.7 percent more visitors in their first week than those hitting the market on Thursday, which was the worst day.

Stay engaged -- studies show engaged sellers tend to sell their homes faster and for more money than typical sellers.

Market online -- post listings to sites that do not get automatic feeds from multiple listing services. A study showed each Craigslist posting, for instance, generated 11.9 visits to a listing's Redfin page.

Don't move -- a study found vacant homes were 9.5 percent more likely to cut their prices than occupied homes.

Wait to sell until nearby foreclosures are off the market -- a study found a foreclosure cost neighboring sellers an average of $5,000.

Details available at redfin.com/scientist.

P-I reporter Aubrey Cohen can be reached at 206-448-8362 or aubreycohen@seattlepi.com.

What to Do if You Can't Pay Your Mortgage!!

I Hope this helps someone.....

Question: What do I do when I owe a $450,000 first mortgage, a second at $115,000 and new houses the same as mine are selling for $500,000? I owe two months on the first and two months on the second, and I cannot pay. What do I do?

Answer: Your situation, and that of thousands of other folks like you, is serious. You are, indeed, in dire straights. You are "under water" by $65,000, not including your selling costs. And you'll probably have to take less than $500,000 to sell quickly or beat the competition.

But all hope is not lost, at least not yet.

You should contact your lenders right away. If you are like most folks, you aren't answering the lenders' mail or returning their phone calls. Most think they don't need to speak with their lenders about their situations, or think they can take care of their problems, if they recognize them as such, without involving the lender.

But a large percentage also believe their lenders can't or won't be any help, or are simply too embarrassed or scared to ring them up. But all these people are wrong -- on all counts.

If you are just a deadbeat who can but won't make your house payments in a timely manner, lenders have nothing to offer but a ride to the courthouse steps. But if you have been a good paying customer, have a good reason why you fell behind, and look like you'll be able to get back on your feet, lenders can be plenty of help. The key word is "forbearance."

Here's the thing: Lenders don't want your house, they want you. According to a report I read recently, the costs of foreclosure are enormous. On average, the total cost, including lost interest during the delinquency, foreclosure costs and disposition of the property, ran nearly $59,000, and the situation took about 18 months to resolve. Worse, these figures were five years old. It is probably more expensive now and takes even longer.

At the same time, keeping people in their homes has been found to be far more productive. Indeed, roughly 90% of the loans that are reworked by lenders are likely to "cure" within 18 months. And those borrowers who seek help from their lenders earlier in the process are far more likely to hang on to their places after riding out their financial turbulence than those who seek help later.

What's more, research shows that the factors originally used by underwriters in trying to predict the likelihood would-be borrowers will default -- credit, collateral and capital -- are not nearly as useful when deciding whether to "work" with customers who are already on the books but are having a tough time meeting their obligations.

Lenders have several workout options up their sleeves:

• Partial reinstatement. Under this plan, the borrower would agree to begin making regular payments and make up what is owed in, say, 12 monthly installments over the next year.



• Short-term forbearance. Here, the lender will suspend your payments for, say, three months or reduce your payment for six months, and then you'd make up the difference in some kind of repayment plan as described above.



• Long-term forbearance. Payments might be suspended for anywhere from four to 12 months, with a corresponding repay plan to follow.



• Loan modification. This would be a permanent change in one or more of your loan's original terms. The rate might be cut, the payment period extended or both so that the payment once again becomes affordable.

So my advice is to get on the horn right now with your lender. Make sure you talk to the workout department, though, not the collections folks. Though many lenders are training their repo staff to spot people who need a break and hand them off to the right people, most are bill collectors, short and simple. If the person you speak with has no idea what you are talking about, ask to be transferred to the chairman's or the president's office. You can bet they'll know whom to transfer you to.

You don't need anybody to speak for you, either. So stay away from the growing group of charlatans who are preying on financially distressed homeowners by offering -- for a fee, of course -- to act as a go-between between you and your lender. They don't have any more of an inside track than you do.

If you honestly feel you need to have someone holding your hand, contact a local credit or homeownership counseling agency. These nonprofits don't charge a thing. In fact, in some cases, lenders are paying them to go out into their communities to persuade troubled borrowers to contact their lenders.

The Department of Housing and Urban Development has a list of government-sanctioned counselors on its Web site, www.hud.gov. Also try the National Foundation of Credit Counselors, www.nfcc.org, or the Homeownership Preservation Foundation, www.995hope.org (888-995-HOPE).

Even if you and your lender can't see any way to save your home, there are still options available that are less painful than foreclosure -- for both parties. If selling is too burdensome, you can simply hand over the keys to the lender by voluntarily transferring the title back to it in one of several different ways.

In a deed-in-lieu of foreclosure situation, you would forego continued ownership in exchange for cancellation of the remaining debt. In a short sale, also known as a short payoff or preforeclosure sale, the lender would allow you to sell the place at less than what is owed, and you and the lender would agree to an unsecured repayment plan for the difference.

Checklist: Pre-Holiday Spruce-Up

The holidays are coming on fast. And because so many things really must be done at the last minute, now is the time to take care of the things you can do ahead of time.

So here is a pre-holiday to-do checklist. To pop up detailed step-by-step instructions, point your cursor at the links.

Appliances

Having a major appliance fail during the holidays isn't the worst disaster that can befall you — but it's pretty close. So make sure they're ready for the extra effort.

1. Have your furnace checked.

2.Flush the sediment from your water heater, so Aunt Emelia doesn't run out of hot water halfway through her shower.

3. Why is it that the refrigerator suddenly turns gross right before your mother-in-law arrives? Spare yourself the raised eyebrow - give the refrigerator a good cleaning.

4. Clean your oven. If you use an oven cleaner, don't apply it to the gasket, which could damage the seal on the door. If your oven is self-cleaning, run the self-clean cycle at least a week before the first major holiday cooking event — if you don't remember how, check your owner's manual. If your baked goods tend to be overcooked, undercooked, or lopsided, check out our troubleshooting guides to figure out why.

Cleaning

Take care of the big jobs now and then just maintain until it's time for the last-minute pickup and polish.

1. Get rid of clutter.

2. Childproof, if children will visit. Cover unused electrical outlets, remove breakables from low places, and move all cleansers, cosmetics and household chemicals out of reach. To get a kid's-eye view of other temptations, crawl around the house.

3. Have carpets cleaned professionally. Or rent a cleaner and do it yourself. If the carpets get a lot of traffic, consider covering high-traffic areas with those 1960s-ish clear plastic runners until the holidays.

4. Clean mildew and soap scum from bathroom tiles. To prevent scum from returning, either squeegee the shower after each use or use a daily shower spray.

5. Wash the windows, inside and — weather permitting — outside. For streak-free windows, wash with water, squeegee it off and then polish with a lint-free microfiber cloth. For best results, don't clean windows when they are in direct sunlight.

Get Guest Basics

1. With a tall air mattress or a regular one set on a bed frame, guests can be just as comfortable as in a real bed. Let a new air mattress air out for a week or so to get rid of that vinyl smell. If you already have an air mattress, inflate it now to make sure it still holds air for several days. Make sure you have an inexpensive mattress pad and two sheet sets that fit the air mattress, so you don't have to run to the store for them at the last minute.

2. It's hard to feel at home if you have to put a suitcase on the bed every time you dress. Provide a table or folding suitcase stand at the very least, and closet space and drawers if possible. If you don't have room for a permanent chest of drawers, opt for an inexpensive mobile unit that you can wheel out for guests.

3. Cast a critical eye on your towel supply. If they're frayed and discolored, spring for new ones — finger towels if your guests are just coming for a meal and full towel sets if they're staying over.

While your mind is on the guest bathroom, add a basket with soap, shampoo, lotion, toothpaste, floss and other necessities. Just before guest arrive, put it somewhere in plain sight. And put the spare toilet paper where they'll know to look, such as under the sink or in a linen closet.

By getting the basic cleaning and preparation done now, you have a week or so left for decorating and shopping. All that's left is a quick cleaning the day before guests arrive.

Test Your Carbon Monoxide Alarm

Your best defense against carbon monoxide - that colorless, odorless, killer gas - is alarms installed near fuel-burning appliances and near sleeping areas. But it's not much of a defense if they don't work.

What?

Test your carbon monoxide alarms.

When?

Monthly, but we'll only remind you every six months.

Why?

Because carbon monoxide replaces oxygen in your bloodstream, causing what is, in effect, suffocation. The risk is highest for the young and the elderly.

How?

Press the TEST button, but it's important to realize that this TEST button is not testing the ability of the device to detect carbon monoxide. Instead, you are testing the ability of the detector to sound an alarm.

The risk associated with carbon monoxide poisoning is related to the concentration of carbon monoxide in the air and the duration of the exposure. Therefore, alarms will sound if they detect low concentrations for long periods of time, medium concentrations for medium periods of time, and high concentrations for short periods of time.

In general, alarms manufactured after October 1998 are more likely to perform properly. Replace your old ones.

Tips

• CO alarms can be battery powered, AC powered, or AC powered with a battery backup. Since most oil-fired and gas-fired appliances will not operate during a power failure, alarms with their own power supply may not offer a huge advantage. On the other hand, if you heat with wood, an alarm which will operate during a power failure is a big plus.
• Only buy an alarm that meets Underwriters Laboratory (UL) 2034 Standard.
• If any of your CO alarms go off, immediately open doors and windows to ventilate the house. Call the fire department and evacuate everyone from the home. Because carbon monoxide is colorless and odorless, never ignore an alarm, even if you feel no adverse symptoms.

Sean Bacon appears in The Chicago Citizen Newspaper

Hey Guys,

If you get a chance, pick up this weeks' edition of the Chicago Citizen newspaper (found at various south side, as well as, south suburban locations) and you will find yours truly being interviewed by Brenda Sheriff regarding Holiday safety tips.

Preferred Vendors Reception at SMS

Last night I had the opportunity to be part of Supreme Manor Services Preferred Vendors Reception. Some of the other attendees....Lynn Richardson, my cohort on Wealth & Real Estate, her husband Demetrius (a home inspector), Alex "Dr. Equity" Coffey (who is always everywhere), Cecilia Marlow, Galenda Love, Cathe Evans Williams, Freddie Taylor, Attorney Krystal Rivers, whom I hadn't seen in ages though we've had mutual clients this year. There were a couple of other attorneys, lenders and actually, home inspectors. We home inspectors had our own little lobbying contingent.

Observations from last night....

1. SMS is a quality real estate office, not because they gave me free food, but because they are professional and they make my job a lot easier when I work with them. Sheila has a strong vision and the one thing that impresses me about her is her willingness to share her knowledge and platform, not only with her staff, but others like myself. Just about every agent has been on the radio show with Lynn and myself with an opportunity to shine for themselves.

2. The people that I'm consistently seeing at events like this are true professionals who care about their clients and the real estate process.

3. These same people, though we all know the market has changed, do not appear to be afraid of developing business in 2008 and beyond. (I've noticed over the last 6 months or so, there has been an increase in MLM opportunities that are being sponsored by R.E. professionals as a buffer against what is happening in the market. I see the rationale, but for myself, I look at it in this way....I only have x amount of time in a day. I can spend that time continuing to build my Home Inspection business of which I have knowledge or I can spend that time trying to build a MLM business of which I know nothing about)

4. Freddie Taylor and Alex Coffey are two of the most passionate and knowledgeable appraisers that I know. I think if most R.E. professionals operated this way, maybe some of the excesses that occurred would not have occurred.

That's it for now.....

What Professionals Think......

Last Thursday, I was at Supreme Manor Real Estate over in Beverly for the grand opening of their REO division. In addition to myself, Alex Coffey, Dr. Equity was there (as always), Cecilia Marlow from Pan Am Lending, Galenda Love from Northern Trust, Denise Confer from Draper and Kramer and Jim Lamson from Citimortgage was there. Before the presentation, we, including Annette Dewberry from Supreme talked about the state of the real estate industry. Now, what was interesting was everyone there had at least 6+ years of experience. Who was to blame for the market?

buyers who knew they couldn't afford the house in the first place
unscrupulous lenders
unscrupulous agents
Wall Street
unscrupulous appraisers

There's enough blame to share, anyhow, most of us around the table are glad to see those people who gave all real estate professionals a bad name by their poor business practices leave the profession for good. The time now is for solid real estate professionals to step up and really take care of their clients the right way.

Why This Blog and Why Now?

As some of you are aware, I co-host a real estate radio show with Lynn Richardson on WVON 1690 am on Sunday mornings from 9:00 to 11:00 a.. where we discuss real estate in the Chicagoland area. With the sub-prime mess happening and continuing to happen in the foreseeable future, it is extremely important that those of us who can see what's happening provide accurate and timely information in as many forums possible. That is why I am writing this blog.

What can you expect from me by reading this blog:

1. My understanding of what's happening in the real estate market in the Chicagoland area.

2. My personal experiences as an property inspector.

3. Questions from you asking about specific home related topics.

4. Personal observations that I think may be of use to you.

WHAT I ASK OF YOU...

1. Communicate with me...Ask questions...as we have always heard "No Question is a dumb question"

2. If you think I'm off base, then say so, I'm always up for spirited, but intelligent discussion.

I'm not an expert in the real estate field. But, I do care about what I do in this field and I do care about how what I do affects my clients and other real estate professionals that I work with, thus I do have a strong passion to see people enjoy the American dream of homeownership