Do You Have an Issue With Radon in Your Connecticut Home?

Radon, you can't see it, you can’t smell it, you cant’ taste it, but it may be a problem in your home. Radon is a radioactive gas that can cause significant health risks.

There are two main sources for the radon in your home's indoor air, the soil and the water supply.   The Environmental Protection Agency’s (EPA) website www.epa.gov/radon has answers all your Radon questions.

The  EPA recommends to test your home for radon and fix your home if you find high levels of radon (4 picocuries per liter or higher)

The EPA’s site is an excellent source for your clients to learn about Radon in their home. More specifically the link http://www.epa.gov/radon/pubs/citguide.html gives you the Guide to Protecting Yourself and Your Family from Radon. This site gives an overview, Q & A, Radon Myths and Facts and phone numbers for further reference.

Another great site is the CT Department of Public Heath (CT DPH) where you will find the CT DPH Radon Program whose mission is to promote radon awareness, testing, and mitigation to reduce radon health risks. To view it, click here.

The weekly Tip-of-the-Week* is supplied by Only Closings --

a law firm devoted to real estate closings.

      - Our closing staff is made up of seasoned, experienced real estate attorneys.
      - Close where it is most convenient for the client (home, office, job or bank)
      - Very competitive closing fee and no hidden fees!
      - No fee consultations.
      - Personalized, responsive service from all of our attorneys and paralegals

  To learn more about Only Closings and how they can help you quickly close a property transaction, call them at 203-563-9677 or visit them online at www.OnlyClosings.com

*The content within the "Tip-of-the-Week" is strictly for informational purposes and not intended to be interpreted and/or used as legal advice. Only Closings and OnlyClosings.com is a service provided by Tamara L. Peterson Attorney at Law LLC.

 

Connecticut Landlords: Handling Your Worst Nightmare- The Non-Paying Tenant

It usually starts out the same way with  problem renters. When you initially met your prospective tenant, they seemed just wonderful. Maybe you didn't have a Realtor like me representing you, and since they seemed so pleasant, well spoken and put-together, you may not have even run a credit report, contacted their current Landlord, their employer, contacted their references, or run any type of lawsuit or public record search.

Well, a few months into the lease the rent is just a few days late, and then it's a few weeks late, and then when you call for payment, they tell you that there was a job loss or illness and they are behind but will catch up.

Everything has been okay thus far, so you agree. A few more weeks, or maybe a few months goes by and now they don't take your calls, or they leave messages for you when they know that you're not home so they don't have to speak directly to you and answer the difficult questions, "Where's my money, and when can I pick it up?'

I liken this whole unfortunately all too common  scenario to a personal relationship gone bad.  You both court each other, you date, you get married and then the divorce comes and things get ugly.  This should  NEVER  happen to you.

Here it is in a nutshell- Once your tenant doesn't pay the monthly rent, they may very well realize that you are much more stuck than they are. They may not look like the type of people who would act this way, and you may think that the monthly rental price of your home, apartment or condo may almost make you immune to that sort of tenant behavior, but it doesn't.

Alright, face it. Right now you're stuck. It's a horrible feeling, You're stuck with a mortgage  on that property, tenants that are behind in the rent, or who won't pay, and it's YOU who has to pay money to evict them and draw out the process for that much longer. It's awful.

The best trick that I have up my sleeve for this to help you is to offer to PAY THEM to leave by a certain date.  Do this verbally, and only put it in writing for BOTH of you to sign the day they give you the keys and leave. If you have to sweeten the pot for them to vacate, put it in writing that you will not pursue a lawsuit to recoup any monies owed.

The most important thing to remember is to time it just right, and make the amount worth their while, so they take the offer... and leave.

NOW THE MOST IMPORTANT THING OF ALL. NEVER, EVER attempt to rent your property, or accept a tenant for your property without having an experienced Rental Agent assist you (Like Me)  None of my clients EVER had to go through any kind of proceeding  or negotiating for non-paying tenants, and I am NOT about to break my unblemished record on you.

I run all types of checks on prospective tenants. If they are local, I may even stop by their current residence just to see how clean and well taken care of it is or isn't.

LANDLORD TIP: If you think that getting a reference from the current Landlord is a good idea. Think again. If that tenant is late on his/her payments, or worse yet, doesn't pay that Landlord, I am not quite convinced that you are going to get an honest response.  That Landlord wants them out- and you're right there willing to accept his current headache. Forget it. Just forget it.

I have years of experience representing Landlords, and obtaining reports, and reading through the lines. I won't let you get burned.

If you want to or need to get your home or apartment rented,

contact me. I have the answers and WILL get you a tenant.

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Can you Manage Without Home Insurance?

For most people, their home represents a haven from the stresses and struggles of the world outside. It is a place to spend time with our families or simply to find some time and space to ourselves. However, for most people, their home will also represent the most expensive purchase of their lives as, in addition to the property itself, their will also be an accumulation of possessions over time, which can  add up to a significant amount of money within the property.  

Can you manage without home insurance?

For the majority of homeowners, the answer is likely to be no. Figures suggest that one in every three people will be the victims of a break-in at some point during their lives and, while there are home security measures you can (and should) take to protect yourself, they do not provide a one hundred percent guarantee against theft. If you take into account the increasingly extreme weather we have experienced in recent years, for whatever reason, then you cannot guarantee against your home being damaged by floods or hurricanes, either. Furthermore, if you are looking to take out a mortgage on your property, very few  banks, if any, will lend you the money for it unless you have taken out a comprehensive home and contents insurance policy.

What you need to know when choosing a policy

It is important to have all of the relevant information concerning your house and the contents when shopping around for a suitable home insurance policy. Insurance providers will likely want to know information about the location, the type of materials the house is built from, when it was built and what the total cost of repairs would be. In terms of contents insurance, you will need to be able to provide an accurate estimation of the value of the contents. Thus you will need to secure the appropriate estimates from people qualified to perform this task.

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Is a Short Sale Right For You?

A "short sale" is a real estate sales transaction in which the seller's mortgage lender agrees to accept a payoff of less than the balance owed on a property's loan. This typically happens when a borrower can’t pay the remainder of the mortgage loan on their property, but the lender decides that selling the property at a moderate loss is a better alternative than foreclosure.

Short sales are different from foreclosures because the lender forces a foreclosure, while both lender and borrower consent to a short sale. Consent between these parties may suddenly change, however, such as if the borrower becomes obstinate and forces foreclosure, or if the lender disapproves of the sale price. If the property is collateral for a second mortgage from a different institution, it, too, must agree to the short sale, which may further complicate the transaction. 

Short Sales from the Lender’s Perspective

Banks incur a smaller financial loss from short sales than losses resulting from foreclosures, which cost lenders billions of dollars, mainly through the expense and time required to foreclose on the borrower and subsequently market the property. If the borrower owes $30,000 on their home, it’s often worth it for the bank to waive that amount, as the expense may be as much as $50,000 per foreclosure, according to a study by the U.S. Congress Joint Economic Committee.

 

Short Sales from the Seller’s Perspective

While a short sale will damage the seller’s credit rating, a foreclosure causes even greater credit damage. The process for a short sale is also faster, cheaper and less emotional than a foreclosure, in which former owners are often forcibly removed from their homes.

 

Short sales, however, do not necessarily release the borrower from the obligation to pay some or all of the remaining balance of the loan, known as the deficiency. The bank, depending on state laws, might be able to go after the seller for the remainder of the loan after the home sells. Also, in these states, known as recourse states, the IRS can treat the unpaid portion of the mortgage as taxable income.

 

Communities, too, invariably prefer short sales to foreclosures, which drag down the real estate market of whole neighborhoods. Vacant foreclosed houses, many of which have been ransacked by former owners or vandals, further reduce the property value of neighboring homes which, in turn, increase the likelihood of more foreclosures. Of course, communities don’t have much of a say in whether a home short-sells or forecloses, which is partly why a federal rule was issued to streamline and encourage short sales.  As of April 5, 2010, the various parties that must consent to allow a short sale – the borrower, the lender, the investor who owns the loan, and the bank that owns the second mortgage (provided there is one) – are all offered financial incentives to consent to a short sale. 

 

Typically, the following conditions must be present in order for a short sale to be approved:

• The property’s market value has dropped.
• The mortgage is near or in default status.
• The seller can prove that they have few assets. Tax returns and financial statements may be required to prove that the borrower has no stocks, bonds, or other real estate, for instance, which may be used to pay off the balance of the loan.
• The borrower has fallen on hard times. The seller is required to submit a letter to the lender that describes why they cannot pay the difference due upon sale, and how they wound up in financial hardship. This plea to the lender to accept a loss, known as a letter of hardship, may include the following acceptable explanations:
  • unemployment;
  • divorce;
  • medical emergency;
  • bankruptcy; and/or
  • death.

The following circumstances are generally not accepted "hardships":

• bad purchase decisions, such as gambling or vacationing;
• unhappiness with the neighbors, such as if a meth lab opened up next door;
• buying another home. If you can afford another home, the bank will wonder why you can’t pay off the one in which you currently reside;
• pregnancy. Lifestyle decisions aren’t taken seriously in letters of hardship; or
• moving into an apartment.

If you are considering the purchase of a short-sale property, here are some tips:

• Obtain legal advice from a competent real estate attorney.
• Consult with an accountant to discuss the tax ramifications of buying a short sale.
• Hire an InterNACHI inspector to inspect for problems typical of short sales and foreclosures, such as pests, mold, water damage, and/or structural defects. Realize that short-sale sellers have fallen behind on their mortgage payments, making it likely that they have neglected basic building maintenance and repair, or even intentionally abused the building. Presale inspections, which are suggested for all real estate transactions, are as critical for short sales as they are for foreclosures.

In summary, a short sale is a compromise consented to by the lender and borrower in order to avoid foreclosure, and can be a better financial deal for all parties involved.

by Nick Gromicko and Rob London

 

Nick Gromicko, FOUNDER. http://www.nachi.org
International Association of Certified Home Inspectors (InterNACHI) is the world's most elite, non-profit inspection association.
President, ComInspect, www.cominspect.com
Director, Master Inspector Certification Board, www.certifiedmasterinspector.org
Author, 15 books and Co-Host of  http://www.NACHI.TV

Is it Better to Work with a Buyers Agent or a Sellers Agent ?

If you want to buy or sell a house and obtain the best representation available to you, I am of the opinion that you should work with an agent who represents both buyers and sellers on a regular basis, and there are two very good reasons for that. They are "Marketing" and "Negotiations".

Marketing:

Marketing is defined as the process that is used to determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development, or simply put for the real estate business- Marketing is understanding "who" your customer is, how to reach them, gain their confidence, and effect a sale.

An agent who just represents the seller should have the marketing aspect down pat, and that's a good thing- but what about a strict buyers agent? They won't market to sellers, and quite frankly, they might not even know how because they don't do that as part of their everyday business. If your dream home is not on the market, you will have to rely on another agent in the mix.

Negotiating:

Although I will concede that there is a level of expertise that comes with just representing buyers, or just representing sellers, all of the top negotiators know that reaching  the best agreements come from negotiations where there is empathy for the other side, and a bit of give and take.

If an agent has represented one "side" of the transaction consistently, then I think it would be inherently difficult to remember what the other "side" wants and needs in order to feel satisfied and happy with the transaction, and that's not to say that the agent can even get to that point.

Herb Cohen, author of the book titled,"You Can Negotiate Anything", describes negotiation as this: Negotiation is a field of knowledge and endeavor  that focuses on gaining the favor of people from whom we want things. It's as simple as that".  How better to gain favor than knowing exactly what one wants? When you only represent one side of the transaction, you WILL forget what the other side wants. It's just human nature.

Also, if you have ever heard of the Negotiation Institute, and/or Gerard Nierenberg, who is considered the foremost authority on negotiating, he says, and I quote, "To know what your opposer is thinking and striving for, you must turn detective, you must apply various methods and techniques to your primary objective of recognizing his needs".

The best negotiators are the agents that split their business nearly evenly between representing buyers and sellers, and never forget the ever-changing needs of each type of client in the the current marketplace,. The best marketing agents are also the ones that educate themselves to further their professionalism and their clients interests.

I represent both buyers and sellers, and am proud to have earned the Certified Negotiation Specialist designation, besides earning the following pertinent designations from the National Association of Realtors, such as Certified Residential Specialist, Graduate-Realtors Institute, ePRO  Internet Certified, and Accredited Buyers Representative,  I might venture to say that  what mayhave been the single finest marketing program that I ever have had the privilege of graduating from was with the "Marketing Corporation of America" in Westport a number of years ago. Although it was quite expensive, the lessons I have learned from a pure marketing standpoint are worth their weight in gold regarding the psychology of sales. That is, learning about client behaviors, patterns and tried and true methods of sales. Comprehensive and incredibly insightful.

If you are in the market to buy or sell and need a top notch marketer and negotiator, contact me today.

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