The Chicago Inspector Speaks

Moderate your indoor humidity in winter

2008-12-22T11:17:00.000-06:00

If water condenses on your windows in winter, the problem might not be the windows – it might be that the house is too humid.

Time: 1-2 hours
Difficulty: Easy
Expertise: None
Frequency: Once a year
Where: All US

Overview

Humidity makes your home more comfortable in winter, but you can have too much of a good thing. When you see condensation on your windows in wintertime, it’s a sign that you should lower the humidity level in your house. Otherwise, the water that condenses on your windows – not to mention inside your walls – can cause damage over time.

Try these suggestions for reducing humidity levels.

Steps

Reduce moisture sources within your house:
- Don't store firewood in the home.
- Repair foundation leaks.
- Turn your humidifier down or off.
- Cover any exposed earth floor in a basement or crawl space, as well as sump pits.
- Don't hang laundry to dry inside your home.
- Limit the use of vaporizers or steam generators.
Ventilate your home:
- Vent your clothes dryer to the outside.
- Use exhaust fans when showering or cooking.
- Install a heat recovery ventilator (HRV) to exhaust warm moist air from your house and replace it with dry, fresh air from outdoors.
Adjust the humidifier on your furnace, based on the outdoor temperature:
- -20 degrees F. — 15%
- -20 to -10 degrees F. — 20%
- -10 to 0 degrees F. — 25%
- 0 to +10 degrees F. — 35%
- +10 and above degrees F. — 40%

Home Buyers Turn to USDA for Mortgages Agency Program Backs Loans to Aid Rural Development; No Money Down -- Even Now

2008-12-18T10:45:00.001-06:00

By NICK TIMIRAOS

Tightened lending standards are leaving builders and real-estate agents scrambling for new ways to move cash-strapped buyers into homes. One increasingly popular option: an obscure home-loan program offered by the U.S. Department of Agriculture.

Created in 1991 as a way to boost homeownership in rural areas, the program is being tapped by home buyers in overbuilt exurbs who are attracted to the no-money-down terms.

When Erick Moore first read about the USDA's Rural Development Guaranteed Loan program, he says he imagined it would be "restricted to some little farmhouse." Instead, the 33-year-old computer programmer moved last month into a four-bedroom, three-bath home in Fuquay-Varina, N.C., 17 miles outside Raleigh. The house sits on nearly one acre and features a brick facade, 10-foot ceilings and hardwood floors.

"I couldn't believe it until we closed," says Mr. Moore, who paid only $1,200 out of pocket to move into the $228,000 home. The seller contributed $5,000 in closing costs, and Mr. Moore rolled the 2% fee charged by the USDA into the loan. Mr. Moore, who owned a home in St. Louis before he relocated to the Raleigh area last year, says a 60% drop in his stock portfolio made it difficult to come up with a down payment. He directed his Realtor to show him only homes that were eligible for the USDA program.

Fueled by buyers like Mr. Moore, volume has nearly doubled for these USDA-backed loans. The department insured $7 billion in loans during the 2008 fiscal year, which ended Sept. 30, up from $3.6 billion the previous year. In October and November, the agency has already insured some $1.7 billion in loans.

That's relatively small when compared with the volume of business handled by the Federal Housing Administration -- which guaranteed $102 billion in new loans during fiscal 2008. But interest in the USDA's development lending program is growing rapidly in response to the nation's credit crunch and as most private lenders have stopped offering loans with no money down.

To be eligible for a USDA-backed loan, a borrower can't have income that exceeds 115% of the median county income, and the loans are restricted to areas with lower population density -- generally towns of no more than 25,000 residents. So while home buyers in big cities aren't eligible for the loans, residents of many of America's fastest-growing towns and exurbs do qualify. The loans that come through the program are made by private lenders, then insured by the government and sold to Ginnie Mae, a federal agency that sells mortgages to investors.

Home builders, many of which have overbuilt properties in these areas, are eagerly promoting the program to sell excess inventory. The USDA program accounted for 40%-50% of sales in October and November for Scottsdale, Ariz.-based home builder Meritage Homes, says John Bargnesi, vice president for sales. "It's one of our main tools right now."

Builders Promote Program

Meritage is advertising a "$500 move in" program to clear inventory in new exurban developments, including the Buckeye and Queen Creek subdivisions outside Phoenix that have been hard hit by foreclosures and falling prices. "If a builder is in one of these geographical areas, they certainly are using it," says Mr. Bargnesi. "We're all in tune with it now."

D.R. Horton Inc., the nation's largest home builder by number of houses built, is promoting the program in sales pitches for a number of new developments outside Austin, Texas. One is named Parkside Condos, a development of 144 new two- and three-bedroom condos priced at $130,000 in Pflugerville. Kastera Homes LLC, a home builder based in Boise, Idaho, is offering to pay closing costs for buyers who use a USDA loan. D.R. Horton and Kastera didn't return calls seeking comment.

The success of the USDA program comes at a time when easy home financing is getting much harder to find. Private lenders have stopped offering loans that require no money down, amid worries that borrowers without equity are more likely to let their homes fall into foreclosure. In October, Congress terminated a popular program that allowed sellers to fund down-payment "gifts" for new home loans backed by the FHA. Next year, the FHA will require a minimum 3.5% down payment on all new loans, up from 3%, and private lenders often require a minimum 5% down payment.

Such restrictions do not apply to loans backed by the USDA, which is best known as the guardian of the nation's food supply. In fact, some buyers can finance 102% of the home price, factoring in a 2% USDA insurance fee meant to cover loan losses. The loans also don't require borrowers to pay for monthly mortgage insurance. That means that USDA loans typically carry lower monthly payments than FHA loans, even in cases when the size of the loan is larger.

Sue Botelho of Northstar Mortgage Group in Destin, Fla., is promoting the USDA loans as part of a "move in with a penny down" program. "The down-payment assistance has gone away. Subprime has gone away," she says. "So now mortgage lenders are pretty aggressive in terms of making people aware of this USDA program."

One of Ms. Botelho's clients, 46-year-old insurance adjustor Alan Sammons, paid nothing to move into a new $270,000 home in the Florida Panhandle in June. He had spent more than a year trying to find a reasonable loan before beginning construction on a custom four-bedroom, 3½-bathroom home in his Crestview, Fla., subdivision, which includes a community swimming pool and lighted tennis courts.

"They're still building homes in here," Mr. Sammons says.

Julie Chapman, a Brunswick, Ga., real-estate agent, says she is listing more properties eligible for the USDA loans -- including homes in the Plantation at Golden Isles, a new subdivision adjacent to a golf course. Many of the properties are selling preconstruction. "That's something you don't see anymore in this market," she says.

New housing developments built on open land that were among the first to experience the downturn could now benefit from the USDA program. "They're showing some signs of recovering," says Michael Orr, a housing analyst based in Mesa, Ariz.

Some question the USDA's practice of allowing no-money-down purchases. "If you have to get a 102% loan, you probably shouldn't be buying a house," says U.S. Sen. Christopher Bond (R., Mo.), who adds that he supports the intent of the programs because it has traditionally been "very difficult" for rural borrowers to buy homes.

USDA officials, for their part, say that concerns about the program's 100% financing aren't warranted because the department has a strong track record and because rural areas are less prone to big increases in home prices. "We guarantee in a very controlled environment," says Philip Stetson, a USDA administrator for the lending program. Because its average loan amount is just $120,000, he says that the program is less susceptible to large-scale losses.

Income Verification

USDA- and FHA-backed loans aren't prone to some of the risks that faced subprime loans because the government-insurance programs offer only fixed loans and require income verification. "We have not seen any direct evidence at this point that 100% financing is leading to greater losses," Mr. Stetson says.

The default rate on USDA loans is slightly better than the rate for FHA-backed loans. Some 11.35% of USDA loans were delinquent in 2008, while 1.4% went into foreclosure, according to the department's statistics. Meanwhile, FHA loans had a 13.6% delinquency rate, while 2.3% went into foreclosure. That compares to a 4.3% delinquency rate and 1.6% foreclosure rate on prime loans, and a 20.0% delinquency rate and 12.9% foreclosure rate on subprime loans, according to the Mortgage Bankers Association.

Unlike the FHA, the USDA programs rely on a fixed appropriation from Congress, which totaled $4.1 billion in the 2008 fiscal year, and new loans can't be made once that allocation is exhausted. The program was able to make nearly $7 billion in loans this year because it received additional funding from other department sources.

But heavy demand for the loans has administrators asking for more money. Officials say that the program will run out of money next month, even though it has been funded through March. "Up until only two years ago, we weren't even using the full amount," says Mr. Stetson. "It has been rather incredible at how it has taken off."

Write to Nick Timiraos at nick.timiraos@wsj.com

Dreaming of a Green Christmas

2008-12-15T08:34:00.000-06:00

Holidays are a time of giving, feasting, celebrating, and generating a big old mess. Between Thanksgiving and New Year's Day, Americans create an extra one million tons of waste each week and throw away enough ribbon to wrap around the center of the Earth and tie it with a bow the size of the United States. Fortunately, you can make small changes without losing any holiday cheer.

Driving

Santa makes a list and checks it twice so he only has to make one trip on Christmas Eve (granted, it's a long trip). Do the same when you go shopping — write your list before you leave and do as much as you can in a single go. You can also shop online or by catalog and save yourself driving at all.

For holiday parties, carpool or take public transportation with your friends. You'll get more time to gab and save money on gas.

Bagging

Instead of ending your holiday shopping with a pile of plastic bags big enough for your kids to jump around in, take reusable bags with you. They hold more and don't end up in a landfill.

Giving

Recycling isn't just for Aunt Emelia's fruitcake. Give that gift you never used from last year to someone else (just not the person who gave it to you). Give slightly used items to charities, which helps clear out clutter. If you buy new gifts, look for products made from recycled materials.

If much of what you are buying runs on batteries, get rechargeable batteries. And remember the battery charger: get one for your family and one for whomever you give battery-powered gifts.

Chances are the people you know already have too much stuff, so rather than buying quantity, buy quality. The gifts last longer, are more appreciated and generate less packaging. Gift cards are another good way to go. People get what they like and you wrap less.

Living gifts are another option: seeds, house plants or potted plants to be planted outside in the spring. Gifts of food, events — like tickets to the theatre or the big game — or personal services also reduce holiday waste, not to mention saving you time on wrapping. Speaking of which....

Wrapping

Wrapping gifts doesn't mean wasting a ton of paper. Put gifts in reusable decorative boxes, gift bags or Christmas tins. Cut the pictures off old Christmas cards and use them for gift tags.

As for cards, buy cards made from recycled paper, or send e-cards, which use no stamps, require no gasoline to deliver and arrive faster.

If you love to wrap, use color comics from an old newspaper, old maps, stock reports or want ads (picked with the recipient in mind). For a Christmas project for the kids, have them color or stamp plain paper bags, and then use the bags to wrap relatives' gifts. Remember to save any ribbons or bows you get this year to reuse next year.

Decorating

Buy decorations that last for years. And invite your children to make decorations — they create wonderful holiday memories that will embarrass your children immensely when they are teens (be sure to reminisce in front of their friends).

Instead of using old-fashioned incandescent Christmas lights, which lose a lot of energy as heat, buy LED lights. They cost more, but they use a tiny fraction of the energy that regular bulbs do and last for up to 20 years with proper care. Use a timer to control when the lights turn on and off.

Cleaning Up

Once you've survived the holidays,it's time to get rid of the mess. Start with the paper. If you have pieces you can reuse, save them. If your town recycles wrapping paper (and not all do), recycle the rest. Save any reusable ribbons, bows, gift bags, cards and other materials for next year. Save bubble wrap for shipping and take foam peanuts to a mailing store.

Other things to recycle (check your local program):

Bottles
Cans
Aluminum Foil
Plastics
Cardboard

Recycle your tree, wreaths (remove wires first) and other living decorations. Most communities have programs for tree recycling, so check yours out, too.

Store decorations carefully so you can use them again next year. And please get the decorations down by January 15. After that, the neighbors start whispering about you behind your back.

Holiday Safety for Children and Pets

2008-12-15T08:33:00.001-06:00

The holidays are a tempting time for the little ones in your house — all those interesting new things to touch and taste. That's why it's important to take extra precautions.

Avoid putting tinsel or popcorn on your tree — it looks fun to eat.
Don't leave edible gifts under the tree, where they are easy for pets to discover.
Place small breakable ornaments high on the tree, out of reach
Don't put edible gifts in stockings near a fireplace — that's a disaster waiting to happen.
Mistletoe and holly are toxic, so find a safe substitute.
When opening gifts, dispose of plastic wrapping, bows and ribbons quickly — they too look like they would be fun to eat.
Don't throw wrappings or packaging into the fireplace — some of it burns very rapidly, almost explosively — same goes for Christmas tree branches.
Place candles out of reach and away from combustibles. Extinguish them when they are unattended and remember— hot wax burns.
Don't let your pets drink the water the tree is sitting in.
Don't feed pets chocolate, candies or cookies.

Test your carbon monoxide detectors' alarms

2008-12-08T07:31:00.004-06:00

Make sure the alarms on your detectors are working, so they can alert you to a hazard.

Time: 1 minute per detector
Difficulty: Easy
Expertise: None
Frequency: Once a month
Where: All US

Your best defense against carbon monoxide is detectors installed near fuel-burning appliances and near sleeping areas. Make sure the alarm works correctly. This test doesn't determine if the detector functions correctly, just its 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 sound if they detect low concentrations for a long, or high concentrations for a short time.

Steps

Press the TEST button.
Replace any detector with a non-functioning alarm.

Six Free Ways to Cut Heating Costs

2008-12-02T07:44:00.001-06:00

In a report recently released, the DOE's Energy Information Administration said heating oil prices are projected to average $2.75 per gallon, a reduction of about 17% from the 2007-2008 heating season. Propane prices are projected to average $2.22 this winter, a decrease of 10% from last winter. And natural gas prices are projected to average $13.02 per thousand cubic feet, a slight increase of 2% from last winter.

Bottom line, it's looking like heating your house this winter is going to be close to an all time bargain.With this part of the economy actually working in your benefit, there are a few things you can to actually drive heating costs down even further, without spending a dime:

DO WINDOWS – Keep window shades open and curtains pulled back during the day to take advantage of the sun's energy. At night, keep shades tightly drawn to both insulate the glass and reduce drafts caused by convection, which occurs when warm heated air strikes the cold glass, chills and then falls on you as you are stretched out on the couch, causing an uncomfortable draft.
SET THERMOSTAT – Yes, we know figuring out how to program your clock set-back thermostat sends you psychologically back to the days you spent staring at a blinking VCR. But do it! Programming your heat to go down when you are sleeping or not home, and back up only when you are active in the house can cut heating costs by a whopping 10%.
LAUNDRY LATER – Running your dryer not only dries your clothes, it also sends lots of excess heat into the house. Time your dryer cycles to supply heat when you need it, like during the day when you first get home from work. Running the dryer when you go to bed is a waste since you are already tucked snugly beneath the covers.
REVERSE SPIN - Ceiling fans' reversible motors can spin indoor air into comfortable savings year-round, pushing warm air down in the winter and pulling cold air up in the summer. Add even more savings by installing an Energy Star-qualified model, which is up to 50% more energy efficient than a conventional fan.
PUT OUT THE FIRE – Even though the thought of a roaring fire conjures up scenes from a Norman Rockwell print, you'll save some dough if you skip the fireplace as a source of home heating. Most fireplaces are a home heating vacuum cleaner that sucks expensive, heated air right up the chimney. Instead, use them selectively as you would any luxury expense – because that is exactly what they are to run.
SKIP THE BUDGET PLAN – If your fuel supplier offers a so-called budget plan where the cost of heating is spread over a 12 month period of time, cancel and pay for only what you use. Unless your income is such that you can not take the least bit of fluctuation, it's never been a better time to just pay for what you need.

Clean the Refrigerator Coils

2008-11-20T19:04:00.000-06:00

Clean the refrigerator coils

Your refrigerator is the biggest user of electricity in your home. Clean its coils to keep it running efficiently.

Time: 5-10 minutes
Difficulty: Easy
Expertise: None
Frequency: Once a year
Where: All US

Overview

Clean your refrigerator coils. The coils on the back or bottom of your refrigerator give off heat. Dust or debris keeps them from cooling, making your refrigerator work harder.

Steps

Unplug the refrigerator.
Determine whether the coils are behind or under your refrigerator by pulling the refrigerator out or removing the kick plate under the door and peeking under the refrigerator.
Vacuum the coils to remove dust balls, pet hair or anything else that inhibits air movement. If you prefer, use a coil brush that you can purchase at a hardware store.
While you’re at it:
- Check the door seals for air leaks.
- Clean door seals with soapy warm water.
- Empty and clean the defrost drain pan.
- Remove mildew from the ice and water dispenser openings.
- Check the water dispenser for proper flow rate – normally 8-10 ounces of water in 10 seconds.
- Remove and shelves and crispers, and wash them and all interior surfaces with a warm, damp rag. Don't use any chemical cleaning solutions.

Protect your family from fire and carbon monoxide

2008-11-07T08:04:00.002-06:00

October is Fire Safety Month, but any month is a good time to safeguard your family and home from fire and the silent dangers of carbon monoxide gas.

Time: 15 minutes
Difficulty: Easy
Expertise: None
Frequency: Some monthly, some annually
Where: All US

Overview

You've heard reminders about fire and carbon monoxide safety so often that you might tune them out. The approximately 400,000 home fires in the US each year suggest that a lot of people tune them out – until it's too late. Don't become a statistic; take 15 minutes now to check the alarms on your smoke and carbon monoxide detectors and make sure your fire extinguishers are ready.

Steps

Test the smoke detector.
- Every month, press the test button to verify that the unit has power and an audible alarm.
- Twice a year, make sure the unit can detect smoke by using an aerosol smoke detector tester to blow smoke into the unit. If you don't have a tester, use a candle or smoke stick. It should take very little smoke to activate the alarm.
- Twice a year, open the alarm's cover and lightly vacuum the interior with a delicate brush attachment.
- Replace the battery once a year, or any time it makes a chirping sound indicating that it's failing.
Inspect your fire extinguishers.
- Check that the fire extinguishers hanging near the door of the kitchen, basement, garage and workshop are the right type for the kind of fire likely in that room. Class A fires are combustibles such as wood, paper and fabric; Class B fires involve flammable liquids and grease; and class C fires are electrical fires.
- Reread the owner's manual to remind yourself how to use the extinguisher. Remember the acronym PASS: Pull out the pin, Aim at the base of the fire, Squeeze the lever or button to spray the extinguishing agent, and Sweep from side to side.
- The extinguishing chemical becomes ineffective over time, so check the manual to see when to recharge or replace your extinguishers. Many fire departments can recharge extinguishers.
Test the alarm on your carbon monoxide (CO) detector. The test checks only whether the alarm is audible and the battery works. It doesn't confirm that the alarm can detect CO.
Install more alarms and fire extinguishers if needed. Ask your fire department where local building codes require that you install CO detectors and smoke alarms. And install at least one fire extinguisher in a convenient location on each level of your home.
- Install smoke alarms in the middle of the ceiling; if that's not possible, mount them on the wall at least 3 feet from a corner and 4 to 6 inches from the ceiling.
- Install smoke alarms away from drafts from fans or air ducts. The moving air can blow smoke away from the sensor.
- Avoid placing smoke alarms too near the kitchen stove and bathroom shower, because cooking smoke and shower steam can cause nuisance alarms.
- Mount basement alarms at the bottom of the basement stairwell.
Teach the members of your household what to do in case of a fire:
- Identify two escape exits from any room in the house. Feel the door and doorknob to see if it is hot before opening to escape; if either is hot, use the alternate exit to escape.
- Crawl on the floor to escape smoke — smoke and heat both rise.
- Meet at a prearranged spot outside the home, so you can quickly know who is safe.

Check your attic

2008-10-02T08:18:00.001-05:00

Inspect your attic to stop heat loss and moisture problems.

Time: 15 minutes
Difficulty: Moderate
Expertise: None
Frequency: Once a year
Where: All US

Overview

Your attic is a great indicator of potential moisture problems in your home.

It's often best to inspect the attic by standing on a stepladder, with your upper body through the attic access hatch. That's because in many homes, the floor of the attic is not meant to bear weight. You can stand on the ceiling joists, but one false step could send you through the ceiling below. Also, if the joists are covered with insulation, you risk tripping over buried wiring and getting an electrical shock.

Only go into an attic with a legitimate floor. Wear a mask and other protective gear and clothing to protect you from dust, debris and skin irritants like fiberglass.

Steps

Look for water stains on the underside of the roof and rafters, indicating leaks.
- Monitor old stains for signs of new leaks.
- New stains indicate active leaks. Have the roof repaired or replaced.
Check for signs of animals, such as droppings. Have a professional remove as squirrels, bats, raccoons, mice, bees, wasps and other vermin.
Check for mildew on the underside of roof, indicating poor attic ventilation, humidity or air leakage from the house.
- Increase attic ventilation.
- Install a weatherstripping seal around the attic access hatch if missing or worn.
- Check for possible air leaks around light fixtures, plumbing stacks, and around chimneys and ducts. Have any leak sealed.
Inspect roof vents.
- Check if the roof vents are clogged with bird or insect nests. If so, have the nest removed.
- Wet or compressed insulation under roof vents indicates the vents allow wind-driven snow or rain to enter the attic. Have the vents replaced.

Fill your floor traps

2008-10-02T08:13:00.001-05:00

Keep sewer gases out of your home with these simple steps.

Time: 5 minutes per trap
Difficulty: Easy
Expertise: None
Frequency: Twice a year
Where: All US

Overview

All plumbing fixtures have traps – a bend in the drainpipe that is always filled with water. The water stops smelly sewer gases from entering your house. The traps below your sinks are replenished every time you run the water, but in most homes the traps below the basement or laundry room floor drains never are refilled. The water evaporates, and sewer gases start wafting up from the drain.

Steps

Remove the lid from the floor drain.
Clear any debris from the drain trap.
Pour half a bucket of water down the drain to refill the trap.
(Optional) Add a few tablespoons of mineral oil on top of the water in the trap to prevent the water from evaporating.

Flush sediment from your water heater

2008-10-02T08:07:00.000-05:00

Tired of cold showers? The sediment in your water heater might be lowering your water temperature and the amount of available water.

Time: 15 minutes
Difficulty: Easy
Expertise: None
Frequency: Once a year
Where: All US

Overview

Over time, the minerals in hard water collect in your water heater. Over time, it reduces the amount of hot water available, lowers your water temperature and, in some cases, reduces your water pressure.

Do this simple job carefully; wear gloves to avoid burns.

A drain valve is on the side of your water heater, near the bottom. It looks like a typical outdoor faucet, with a handle and a threaded spout.

Steps

(Optional) Shut off the heating supply.
- With an electric water heater, shut off the circuit breakers or pull the fuses.
- With a gas water heater, turn the gas valve to the pilot position.
- With an oil-fired water heater, turn off the power to the burner.
Attach a hose to the drain valve and direct it to a floor drain.
Open the drain valve until the water runs clear.
Once the water runs clear, turn off the drain valve.
Wearing gloves, detach the hose from the drain valve. Lift up the end of the hose so any hot water left in it runs towards the drain.

Inspect your outdoor wiring

2008-10-02T08:04:00.001-05:00

While you're outdoors during warm weather, take a few moments to inspect your oudoor outlets, lighting and wiring.

Time: 1 hour
Difficulty: Easy
Expertise: None
Frequency: Once a year
Where: All US

Overview

Outdoor fixtures, outlets and their wiring should be in good shape – no worn, loose, or dangling pieces. They should also meet height and circuitry standards to protect them from mechanical damage.
Have a look at your outdoor wiring to make certain it is safe. Call a professional electrician if you spot any problems

The first rule is "look but don't touch." If you spot any problems, contact a professional electrician.

Steps

Check for loose or damaged plugs and fixtures:
- Have fixtures that are loose or hanging from their wires repaired or replaced.
- Examine electrical outlets for mechanical damage. Have worn or damaged outlets replaced with GFI outlets.
Check for damaged or loose wiring:
- Check all the visible wiring on your home’s exterior for fraying at connections. Check the plastic sheathing that coats the wires for cracking, splitting, wear or rodent damage. Have it replaced immediately.
- Loose wiring is prone to damage. Have it properly secured.
Check for improper wiring. Indoor wiring is not designed for damp locations and should not be used outside. If you find indoor wiring being used outside, have it replaced. If you are not sure, consult an electrician. Here are some things to look for:
- Outdoor wiring has heavier casing to protect it from the elements.
- Wiring rated for protected outdoor application has NMW printed on it.
- Wiring rated for indoor use might have the letters NMD printed on it.
- Most often, indoor wiring is white or red and outdoor wiring is black, brown or grey.
Check for unprotected wiring. Wiring less than seven feet above the ground must be armored cable (encased in a flexible metal jacket) or inside a plastic or metal conduit (pipe) to prevent mechanical damage. If you have unprotected wiring below that height, have it fixed or replaced.

Check your exterior wood for paint or stain needs

2008-10-02T08:02:00.000-05:00

Check the condition of the exterior paint or stain on your house.

Time: 30 minutes
Difficulty: Easy
Expertise: None
Frequency: Once a year
Where: All US

Overview

Most wood siding and exterior trim requires painting or staining, so take a moment each summer to check its condition. Wood deteriorates quickly unprotected, so look for warning signs of moisture or wear. Moisture penetration can cause rot, while exposure to ultraviolet light can deteriorate the surface.

Check the entire exterior of you house for paint failures such as bare spots, cracking, peeling and blistering. Use binoculars to look at eaves and other areas to which you can't get close.

Steps

If the paint is failing in a reasonably uniform pattern, or in areas exposed to more weathering, then the paint is simply wearing out.
If the paint is failing in localized areas, further inspection is required. Blistering paint, for example, usually indicates moisture in the wood.
Check carefully wherever the end grain of wood is exposed. Paint is critical in these areas to prevent moisture penetration.
Look behind bushes, shrubs and vines. These areas stay wet longer, causing the paint to deteriorate more quickly.

Inspect wood for rot and insect damage

2008-10-02T08:00:00.001-05:00

When wood touches soil, it's prone to rot and attack from wood-eating and wood-boring insects. Inspect vulnerable areas of your property once a year.

Time: 3 hours
Difficulty: Easy
Expertise: None
Frequency: Once a year
Where: All US

Overview

The soil is full of creatures great and small that feed on or dwell in wood. Decay microorganisms, termites and carpenter ants can weaken wood to the point of collapse.

Steps

Look for places where wood touches soil. Here are some typical areas to check:
- Wooden posts supporting decks and porches. Even those on concrete or brick supports are at risk if the supports settle below ground level.
- Bottom steps of porches and decks.
- The risers that hold up the basement stairs. In older homes, the staircase might have been installed before the concrete floor was poured.
- In the basement, the bottom of wooden posts.
- The base of older wood-frame garages built without a proper foundation.
- Wooden frames of basement windows.
Wherever you find wood touching soil, gently probe the wood with a screwdriver. Rotted wood is soft.
Look for evidence of insects:
- Termites: Look for sandy soil deposits within the wood and sometimes mud tunnels along the surface of the wood. If you break a tunnel open you might find the termites, which are white and about the size of a grain of rice.
- Carpenter ants: Look for large smooth tunnels, often packed with white eggs. Around the nest are large black ants, sometimes with wings and sometimes with reddish-brown mid-sections.
If you find areas where soil touches wood, correct the problem if possible. If fixing it is a major project, monitor the area closely.
If you find or suspect you have insect damage, contact a pest control specialist.

Test and clean your smoke alarms

2008-10-02T07:57:00.000-05:00

A quick testing and cleaning help keep your family safe.

Time: 10 minutes per alarm
Difficulty: Easy
Expertise: None
Frequency: Press the test button once a month, clean and test them with smoke twice a year, and replace the battery once a year.
Where: All US

Overview

Your smoke alarms can only protect you if they work properly, so take a few minutes to test and clean them. And install a fresh battery while you're at it (be sure to recycle the one you remove).

Pressing the test button shows that the alarm makes noise but doesn't show that it detects smoke. That's why you have to test it with smoke. If the alarm fails either the noise or smoke test, replace the battery. If that doesn't correct the problem, replace it.

Steps

If your home has a security system connected to a central station, contact the security company before testing the smoke alarms.
Every month, press the test button to verify that the unit has power and an audible alarm.
Twice a year, test and clean the unit:
- Use an aerosol smoke detector tester to blow smoke into the unit. If you don't have a tester, use a candle or smoke stick. It should take very little smoke to activate the alarm.
- Open the alarm's cover and lightly vacuum the interior with a fine brush attachment.
Once a year, replace it the battery.

Delta Sigma Theta Homeownership

2008-03-24T09:57:00.002-05:00

This past Saturday, March 22nd, myself as well as some of the other wealth builders, most notably Alex Coffey at Dr. Equity Appraisals participated in the Delta Sigma Theta Homeownership seminar held at the Chicago chapter headquarters at 45th and Michigan. It was a good attended event with people eager for good solid information. Had an opportunity to meet the new junior attorney at Woods & Evans LLC as well as renew some old business acquaintances.

Sunday, it was the radio show in the morning. In the theme of Resurrection, we talked about resurrected your life and career. In addition to the wealth builders, we had Latrice Spann-Leavitt on who I thought made some excellent points and is quite a polished lady in her own right outside of her father, Pervis Spann and older sister, Melody Spann-Cooper.

The market is still progressing nicely. We are getting our share of business. I just continue to improve on our business operations so that we can get stronger in the months ahead.

Check Your Floors, Walls and Ceilings

2008-03-24T09:55:00.001-05:00

Houses are like people -- they sag in the middle when they get older!

What?

Check your floors, walls and ceilings

When?

Once a year -- the winter is a good time.

Why?

Your house moves. Not only does it settle over the long haul, but it moves daily and seasonally. The issue is whether the movement is typical, or represents a structural problem.

How?

Assessing the significance of movement within your house requires a skilled set of eyes and a firm understanding of structural engineering. If you have any inkling that any of the components of your house have moved appreciably, call in a professional. Let's look at the components:

Floors -- the day your house was completed, the floors were sagging. It is not uncommon for floors in new houses to deflect as much as half an inch at the midspan.

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With time, bookcases, refrigerators and waterbeds will cause the floors to sag even more. This is normally not cause for alarm. Be concerned however if the floors slope toward a supporting wall.

Walls -- The weight of a wall will cause the floor that the wall sits on to deflect. Therefore, walls that do not rest on other walls immediately below are more likely to show evidence of movement. This movement will show up as doorframes that are out of square and cracks originating at the top corners of doorframes and running diagonally up to the ceiling.

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Cracks in interior partition walls are far more common and less troublesome than cracks in the interior finishes of exterior walls.

Ceilings -- Interpreting cracks in ceilings is difficult. They may be the results of deflection of the floor above or movement of a wall where it intersects with the ceiling.

Tips

Shining a flashlight parallel to a wall or ceiling surface highlights patches, cracks and other flaws.

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Caulking

2008-03-24T09:53:00.001-05:00

Show us a water stain on a ceiling and, more often than not, it isn't a leaking roof ... it's a leaking bathroom fixture.

What?

Check the caulking in your kitchen and bathrooms. Don't just look for moldy or missing caulking; pull at it to see if the seal is good or if it's just sitting there.

When?

Once a year.

Why?

As inexpensive as it is, caulking is essential to maintain the normal life expectancy of tile bathtub and shower enclosures. It's equally important for the long life of laminated countertops and backsplashes.

The backing material behind the tile may be water-resistant, but it is not waterproof. The particleboard backing material for plastic-laminated countertops is even more prone to water damage.

The caulking may last for 10 or more years but because of poor surface preparation, poor tolerances and building movement, the seal rarely lasts that long.

How?

The key to good caulking is good preparation. The surface must be clean and dry. This often requires lots of scraping and vacuuming. If it's damp behind the old caulking, wait until it dries.

Use a caulking gun and caulking that can be cleaned up with water (acrylic latex silicone) for best results. Cut the tip of the caulking tube at about a 30-degree angle and make the hole in the tip the same size as the gap you are about to fill. Push the gun away from you. This fills the gap and the trailing edge of the nozzle leaves a professional finish. Go for one continuous bead. Stopping and starting makes a mess.

Tips

When caulking a tub, fill it with water and stand in the tub. The weight of you and the water makes the tub settle a bit and opens up the joint to be caulked.
After caulking, you can smooth the surface with a wet soapy finger, but don't push too hard.
Some people use masking tape to make the job easier. If you do, be sure to pull the tape off immediately after caulking, and use the soapy-finger trick to smooth the edge.

Check the Gas Meter for Ice

2008-02-18T09:15:00.000-06:00

When people chill, they tend not to vent. Your gas regulator behaves much the same way. For people, this is good. For regulators, not so good.

What?

Check for ice on the gas meter

When?

Periodically throughout winter.

Why?

The gas meter is equipped with a regulator to ensure that excessively high pressure gas does not enter your home. Ice can obstruct the vents on the regulator, causing it to malfunction.

How?

Gas meters or regulators that ice up regularly are usually below the dripline of a roof and receive concentrated amounts of water or snow coming off the roof.

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If the meter is iced up or buried in snow, contact your gas utility. Do not attempt to chip the ice off the meter, which could damage the meter and cause a gas leak.

Tips

Next spring, make sure that leaking gutters are not causing the problem.

Test Your Garage Door Opener

2008-02-04T16:15:00.000-06:00

Most newer automatic door openers have built-in safety features. Make sure yours works properly. Check it regularly to safeguard your family.

What?

Test the safety features of your automatic garage door opener.

When?

Government safety commissions recommend that you do this monthly, but we believe that if you test every six months, you will be way ahead of almost everyone.

Why?

Changes in temperature and humidity cause expansion or contraction of the door, tracks and door frame -- all affecting the ease of operation of the door. If the door is difficult to move, the sensitivity setting on the opener cannot be set up properly, and the door will not automatically reverse in an emergency.

How?

Follow these simple steps. If your door fails any of these tests, adjust it yourself or call in a garage door expert. Do not make any adjustments to the springs, counterbalance weights, or cables. These components are under considerable tension and can cause serious injury if they are released accidentally.

First, make sure the door is balanced and travels freely. With the door open, disconnect the drive mechanism from the door by pulling the emergency release cord, dangling from the center of the top of the door. Close and open the door manually to ensure that it moves easily. It should not take much force.

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Next, ensure the door is balanced properly by pulling the door halfway down and letting go. It should not go up or fall down.

Push the door up and reconnect the door to the opener. Place a full roll of paper towels on the floor, in the middle of the door opening, and press the button to make the door close. The door should compress the roll of paper towels and then automatically reverse. If it does not, open the door and adjust the sensitivity of the opener. Try it again. If you can't get the door to auto reverse, call a specialist.

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Tips

An electric eye, mounted four to six inches above the floor, is an excellent added safety feature (and is required on openers manufactured since 1993).

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The door should not auto reverse in the last inch of travel. This prevents the door from opening if a piece of gravel gets caught under the door.
Place push buttons high on the wall where children cannot reach them. Lots of kids like to play "beat the door," by pushing the button and rolling under the door just before it closes.

Replace Your Air Conditioner Filter

2008-01-18T09:13:00.000-06:00

This is one of those chores most people know they're supposed to do, but few remember.

What?

Replace the air filter on your air conditioner.

When?

Now, and again in three months (for the average home).

Why?

Because a dirty filter restricts airflow through your cooling system. Reduced airflow can mean uneven cooling, increased fuel bills, and added stress on your air conditioner.

How?

Locate the filter, which usually is where the cold air enters the furnace, near the fan section (see the diagram). The airflow arrow on the filter should point toward the furnace.

Slide the filter out and note its size. It's written on it somewhere. Buy a half-dozen filters from the hardware store.

Replace the filter now and check it monthly. Replace it as needed, but at least every three months. The rate at which it gets dirty depends on the number of people, pets and amount of dust in your home.

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Tips

Mark airflow direction on the ductwork with a marker so that it is easier to remember the orientation of the filter the next time.
You may want to have the ductwork cleaned to remove the previous owners' debris. Once is enough though ? don't get talked into doing it annually.
Consider an electronic air filter if you have a family member who suffers from allergies or one who smokes. It does a great job of taking very small particles out of the air. But remember, because it does a better job of cleaning, it gets dirty faster. Clean it once a month.

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January Is Radon Action Month

2008-01-18T09:07:00.000-06:00

January is National Radon Action Month, and the Environmental Protection Agency (EPA) urges all homeowners to test their homes for radon.

Radon doesn't get the attention that high-profile home hazards such as mold and asbestos do. Perhaps people overlook it because it has no taste, odor or color, and overexposure produces no symptoms. But radon is a major cause of lung cancer in the U.S., so its danger should not be overlooked.

The Radon Hazard

Radon is a natural radioactive gas found nearly everywhere. It rises through the soil and finds its way into homes through openings in the foundation. It can be present in any house — new or old, sealed or drafty, with or without a basement.

Being exposed to high levels of radon is dangerous. Radon is the leading cause of lung cancer among non-smokers and the second leading cause of lung cancer in the U.S. Lung cancer caused by radon kills an estimated 20,000 people yearly.

Testing for Radon

Although the statistics are troublesome, radon is a hazard with an easy solution — starting with testing your home. You have several options:

Do-it-yourself testing kits are available in stores and on the Internet, and are reliable and reasonably priced. You expose the kits to the air in your home for a specified time and then send it to a lab for analysis.
Certified radon testers can perform the test for you. Your state's radon office can help you locate certified contractors.
Long-term radon tests remain in the home and monitor levels for more than 90 days.

The test results give the radon level, measured in picocuries. A hazardous level is 4 or more picocuries of radon per liter of air.

Correcting a Radon Problem

Don't panic if a radon tests shows high levels — fixing a radon problem is relatively easy and inexpensive. It's best to hire a certified radon mitigator — your state radon office can direct you to one.

The radon mitigator figures out how the gas is entering your home and then helps you determine the best course of action for your situation. That solution could be as simple as covering your sump pump; or it could call for a more elaborate method such as installing a pipe to let radon rise from the basement to the outdoors.

TIP: If you're building a new home, think ahead. Installing a radon reduction system during construction is more economical than adding it later.

Finally, don't become complacent. Even after a successful radon test or mitigation, the EPA recommends retesting every two years. You can learn more at the EPA's radon website.

I have been saying this all along!!!

2008-01-10T07:30:00.000-06:00

I hope this is picked up in the Chicagoland market. I've been saying this for the last three years. This article is compliments of the Orlando Sentinel. Enjoy........

Take care of small things now before they become deal killers later

Even if you're not selling your home, take care of little things before they morph into potential deal killers.

A simple but efficient layout, affordable and attractive laminate cabinetry and a flood of daylight through the windows give this kitchen a powerful emotional appeal for current occupants and future buyers. (THOMASVILLE CABINETRY / December 27, 2007)

Bill Lahay |Universal Press Syndicate

January 5, 2008

The real estate market, painful as it might be for homeowners who have to sell now, is a wake-up call and a great learning opportunity for the rest of us.

When buyer demand and prices climb incessantly, it's tempting for sellers to get a little careless about the condition of a home. Marginal properties seem to sell fine, so there's not much incentive to invest more time or money on remodeling upgrades that aren't essential and might be undone by a new owner.

But when the market slows and the inventory of available houses accumulates, would-be buyers quickly realize their leverage and get picky, shunning properties that would have seemed perfectly acceptable in a "normal" market. Some homes still sell quickly, though, and it's often because they reflect the right balance of quality, features and realized potential.

There will always be a market for the odd fixer-upper at a bargain price, but for the many people for whom time is as precious a commodity as money, the phrase "needs some TLC" will send them looking elsewhere for something more livable.

Other than timing a decision to sell, there's little that any individual homeowner can do about larger trends in the real estate market, so don't spend your energy there. Instead, try to treat every decision about changes and upgrades to your home the way a potential buyer might see it, even if it will be years before you even think about selling.

This doesn't mean that you shouldn't suit yourself when it comes to remodeling. It means that a home should stay appealing throughout its lifetime, so you won't have a last-minute scramble to undo excesses or errors that will turn buyers away.

Expect the routine work that's always required just before marketing a home -- thorough cleaning, freshening up the paint, light landscaping and perhaps hiring a professional stager to tweak the d�cor.

In the meantime, years of smart decisions can help ensure that these minor preparations will be enough to sell your home even when the buying is slow. Here are the basics:

Keep up with routine maintenance. Whatever your style preferences or those of a potential buyer, a solid and healthy home is the ultimate attraction. You might get a mix of love-it and hate-it responses to your rustic hickory kitchen cabinets or the glass tile in the master bath, but no reasonable buyer will welcome a worn-out roof, antiquated plumbing or a furnace that gasps and rattles.

Take care of the little things. Over time, every house gathers its share of quirks and small scars that occupants learn to live with. The door latch sticks, a light switch goes bad, a window pane breaks and gets secured with duct tape. These are all minor problems, but they can accumulate until there's a lot of work to be done.

Worse still, anything that suggests neglect or a cheap fix sends the message -- correct or not -- that other larger problems have been similarly addressed or ignored.

Don't leave the residue from prior repairs. You might know that the leak stopped after you got the roof shingles replaced, but the water stains on the ceiling or walls still look ominous to a prospective buyer who has only your word to rely on. Repair and repaint the plaster or wallboard, and refinish the wood trim if it has been discolored.

Keep quality levels consistent. There's no sense splurging on high-end kitchen appliances if you pair them with dingy cabinetry or beat-up countertops. The odd pricey feature will serve only to emphasize the poor relative quality of other amenities. Balance your remodeling budget so the improvements look like a well-planned package rather than a piecemeal fix.

Don't over-personalize the home. This is another difficult balancing act, because we all want our homes to reflect who we are. Still, gutting two bedrooms to create a personal Star Wars memorabilia museum will not impress most would-be owners.

Unless you're upgrading with additional square footage, more storage space, better traffic flow or other "generic" improvements, leave the structural stuff alone. Install all the display cases you want and paint wild colors to your heart's content, but be prepared to undo those changes before selling.

Create one or more "wow" features. Even with every practical concern handled, your home needs something to stand out from the crowd. A large bank of windows can allow a dramatic view or simply flood a room with daylight. Detailed millwork and some custom built-ins add an upscale air. A breakfast nook or window seat becomes a powerful symbol of the comfort and safety we naturally seek in our homes. These features all can contribute to a home's emotional appeal.

Create something for everyone. Most homes are purchased by couples or families, and that can mean a longer or more diverse list of must-haves when they go house-hunting. Think about placing an ad for your home. What features and amenities can you claim? Gourmet kitchens, family rooms, home offices, workshops, gardens, outdoor living areas and sports courts are sure to generate interest.

These guidelines won't guarantee the quick or profitable sale of your home, but they should encourage potential buyers to see it as a front-runner rather than a forgettable also-ran.

Better still, it will make the place that much better to live in, so at least make some of the improvements while you still have time to enjoy them.

Clean Your Humidifier

2008-01-02T07:02:00.000-06:00

A malfunctioning humidifier can destroy your furnace and your health.

What?

Clean your humidifier.

When?

At the beginning and midpoint of the heating season.

Why?

Humidifiers are notorious for leaking on the heat exchanger, the most critical component of your furnace. This leaking causes rusting and, eventually, a hole in the heat exchanger. This can allow the furnace exhaust gases, including carbon monoxide, into your home's air supply -- not a good thing.

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Secondly, stagnant water in a humidifier is a breeding ground for bacteria, which can cause illnesses such as Legionnaires' disease.

How?

Humidifiers are prone to leakage because they can foul with mineral deposits. This can cause the supply valve to stick open or clog up the drum, pads, or mesh. The drain line (if there is one) can also become plugged.

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Follow the manufacturer's cleaning instructions. The goal is to dissolve the mineral deposits or replace parts that are beyond cleaning. Replacement parts are easy to find.

Next, you want to ensure that the humidifier responds to the humidistat (the dial where you set the humidity level). When there is a call for humidity, the drum should start to rotate or the valve should open.

Lastly, make sure the unit is not overflowing.

Tips

Most humidifiers have a bypass duct damper. Be sure that the damper is open during the heating season and closed during the cooling season.

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Follow the water supply line from the humidifier back to the point where it connects to the plumbing. The connection is often made using a low-quality valve, which is prone to leakage. This is the valve you turn on at the beginning of the heating season and shut off at the end of the heating season. Make sure it's in good operating condition and doesn't leak.
If you are getting condensation on your windows, your humidifier controls are set too high. You can't see it, but you're creating the same condensation inside your exterior walls. That's not good!

Some Home Fix-Up Tasks Are Worth Skipping

2008-01-02T06:42:00.000-06:00

HAPPY NEW YEAR TO EVERYONE!!!

I thought this would be a good article to read, especially if you are a homeowner and is planning to sell a house this year or as an agent, you are planning to sell a house this year. Please read, enjoy and take action......

This is compliments of The Wall Street Journal.....

Real-Estate Agents
Say Big Upgrades
Don't Give Paybacks

By AMY HOAK
January 2, 2008; Page B11

If your New Year's resolution is to sell a home in 2008, it's probably time to start thinking about how to make that home stand out from the rest.

But before planning any projects, beware: Homeowners aren't recouping as many improvement costs as they could in recent years, according to a recent study by Remodeling magazine. In fact, real-estate agents advise clients not to overdo it, regardless of what the local market conditions are like.

"It's more important that it's neat, it's clean and it looks spacious, rather than making sure it's the top of the line," said Cheri Kuhn, owner-broker of Waters Realty in Minnetonka, Minn. She cautions her clients to bypass projects that aren't necessary.

"The thing I find with sellers: If they do a lot of remodeling, they will take the cost of the remodeling and add it to the cost of the home and ask the buyer to pay for it," she said. Often, though, sellers won't get that higher price.

The reason is that asking prices are based largely on comparisons with similar homes in the area, Ms. Kuhn said. And in the many markets that aren't exactly booming right now, buyers have more negotiating power over the price of a home.

To keep costs down and spend remodeling dollars wisely, consider the following tips.

1. Ask for advice. Before making any remodeling plans, clear your home of clutter and rent a storage unit, if necessary, to hold extra stuff while the home is on the market, said Shannon Aldrich, a Realtor licensed in Maine and New Hampshire with Keller Williams Coastal Realty. Then, get some advice from a local real-estate agent on how the home stacks up against the competition.

"I see more houses in a month than most people see in their lifetimes," said Ms. Aldrich, whose blog includes a series about getting rooms ready to sell. Sellers can use that experience to their advantage when deciding what projects to do.

When Ms. Kuhn first meets with clients -- sometimes six months before the house is listed -- she makes a prioritized list of improvements that will make a difference. Cleaning the carpets, painting the walls and removing wallpaper are common fixes. It is wise to budget for these tasks before putting money aside for more expensive projects.

2. Dig deeper. It also could pay to look below the surface by getting a home inspection before listing the property. That way, problems that could hold up a sale are addressed in advance, said Dan Steward, president of Pillar to Post, a home-inspection company in Tampa, Fla.

Some estimate that for every dollar of perceived defect, buyers want a $2 to $3 discount, Mr. Steward said. If that's true, it might pay to spend $2,500 to replace an old furnace.

Also, replacing something as necessary as a furnace helps create a favorable perception of how well a seller took care of the home, Ms. Kuhn said. If there is a problem with an essential element of the house, a buyer might think, "If that was neglected, what else was?" she said.

3. Look outside. Pay attention to exterior details like the condition of siding and windows, Ms. Aldrich said.

According to Remodeling magazine's 2007 Cost Vs. Value Report, a wooden-window replacement recovers on average 81.2% of its cost at resale, and siding replacement recovers on average 83.2% of its cost. The payoff for those projects is much better than for an upgrade that a buyer might not need. A home-office remodeling, for example, recovers 57% of its cost on average. The estimates are national averages for midrange homes, not upscale ones.

4. Spend time in the bathroom. Freshening up the bathroom doesn't have to be expensive, but it could be important.

"People will put up with a lot of cosmetic challenges in a house if they know they could use the bathroom right away," Ms. Aldrich said.

It's most important for the bathroom to be clean, but sellers should also consider replacing the fixtures, tub, sink and toilet -- if they need it, she said. Replace cracked tiles and curled linoleum.

The replacements don't have to be expensive, Ms. Aldrich added. A toilet can cost less than $250, and she recommends taller, handicap replacement toilets to appeal to an aging population.

5. Keep it small in the kitchen. The other room that often sells a house is the kitchen, but it might be best to keep renovations modest. Remodeling magazine's report found that homeowners could recover 83% of the cost of a minor kitchen remodel at resale, compared with 78.1% of a major kitchen remodel.

Ms. Kuhn cautions her clients not to replace refrigerators, stoves or dishwashers. Buyers considering remodeling the kitchen will likely have their own preferences, she said.

Along those same lines, sellers should replace a countertop if it is crumbling but not if its only fault is that it is outdated, Ms. Kuhn said. Even then, seriously consider material costs: There is no need to update to granite unless the competition has granite countertops as well.

Test and Clean Your Smoke Alarms

2007-12-27T14:48:00.001-06:00

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?

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

Why?

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

How?

Press the test button. This verifies that the unit has power and an audible alarms, but it does not guarantee smoke detection.
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.
Open the alarms cover and lightly vacuum the interior components with the fine brush attachment for your vacuum cleaner.
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

2007-12-21T08:29:00.000-06:00

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

2007-12-19T23:13:00.000-06:00

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!!

2007-12-17T20:05:00.000-06:00

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

2007-12-15T09:52:00.000-06:00

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

2007-12-14T10:48:00.000-06:00

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

2007-12-13T12:03:00.000-06:00

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

2007-12-13T11:46:00.000-06:00

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......

2007-12-12T08:31:00.000-06:00

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?

2007-12-06T08:19:00.000-06:00

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