Don't Tell Anyone What Your Home Just Sold For!

That's the agents job, and its their job to do it in a way that won't hurt you if your home comes back on the market. If you are going it alone a/k/a/ FSBO, it's even worse.

Keep your mouth closed- there are good reasons for it. Of course you should tell someone that your home just took a deposit if they are interested in buying it, or tell an agent that is wants to show your home to  an interested buyer, but it absolutely stops there. You don't want to ever misrepresent your home's status, but don't give out any other info, period.

I know, your first instinct  when you  finally accept a bid on your home might be to tell your friends and family that you just got a sale for "x" amount of dollars . DON'T DO IT. You should NOT tell anyone this information, no matter how much they are chomping at the bit to know the details.

Did you ever notice that you can not get an agent to tell you the sale price of a home after it goes under deposit? You might wonder why they won't tell you, and it's purely for the sellers protection. It's a closely guarded secret, and the reason why is because if that sale should happen to fall through, and it is already known what the sale was supposed to be, then there's a slim chance that the seller can ever get that same price again.

Let's look at it another way. Imagine that you are the buyer. You like a house enough to place a bid on it, and you find out that the sellers were willing to accept a lower price than you were going to offer. Are you still going to offer the same price as you were going to just a few minutes ago? Probably not.  You would probably submit a lower bid, because you have that knowledge.

Remember that when you call the listing office for a property that you are interested in, the whole office works for the seller and they owe a  fiduciary responsibility to that seller. They are bound to protect that seller's best interests, which includes not disclosing an agreed upon price until the property closes and the price becomes public information.

So,  sellers- remember. "mums the word" on the details.

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All About Septic Systems For your Fairfield County Connecticut home

All about Septic Systems and Inspections:
 
A septic system receives, treats and disposes of unwanted wastewater and solids from a building’s plumbing system. Solids are partially broken down into sludge within a septic tank and are separated from effluent (water) and scum (fat, oil and grease). Effluent regularly exits the tank into a drainfield where it is naturally filtered by bacteria and reentered into the groundwater. Scum and sludge must be pumped periodically and should never enter the drainfield.
 
When should a septic system be inspected?

• as soon as a house is put on the market. This will enhance the home’s value and avoid any liability issues that might result from a malfunctioning system. It is in the interest of a prospective buyer to insist that the septic system be inspected before they purchase the home if it has not been done recently.
• once per year.

How to locate the Septic System:

Since they perform their essential functions underground and out of sight, it is not uncommon for a homeowner to not have any idea where the septic system is located. This is usually not an issue except for when it comes time to inspect or pump the tank!
 
The following suggestions can be used by inspectors to locate a septic tank if the homeowner does not already know where it is:

•     An “as-built” drawing of the house should include the tank’s location. These drawings are often held in local health and zoning agencies. Old systems might not have any such record.
•     The previous homeowner can be contacted.
•     Newer tanks contain risers that rise visibly above the ground surface.
•     A thin metal rod can be inserted into the earth and used to probe a suspected area. It is important to do this gently and only in soft, wet soil to avoid damaging the tank and associated pipes. A shovel can also be used but it requires a bit more work.
•     A metal detector can be used if enough tank components are metal.
•     A small radio transmitter can be flushed down the toilet and followed with a receiver.
•     The greenest grass in a yard is often directly above the septic tank. Snow also melts faster above the tank than the rest of the yard. While these are not foolproof location methods, they have been known to be helpful.

What should InterNACHI inspectors look for?

    Find the date that the tank was last pumped. Ultimately, sludge level should determine whether a tank should be pumped, but knowledge of previous pumping dates can be a helpful reference.
    Check the sludge level with a “sludge judge” or a similar device. Sludge accumulates on the tank bottom and should not occupy more than 1/3 of the tank’s total volume or rise to the level of the baffles.
    The septic tank and drainfield should be far from wells and streams.
    Ensure that the system is large enough for the home that it serves. A four-bedroom home, for instance, typically requires a 1,200-gallon tank. The more occupants living in the home, the larger the tank that is required. Capacity in gallons can be calculated by tank dimensions. For rectangular tanks, length x width x depth in feet x 7.5 = capacity in gallons. For round tanks, 3.14 x radius squared x depth in feet x 7.5 = capacity in gallons.
    Check for liquid waste that has made its way to the ground surface. This condition is unsanitary and indicates that the system is overloaded. Make sure that the tank is watertight so that wastewater does not contaminate groundwater, and groundwater does not flow into the tank and cause it to overfill.
    If riser lids are present, they should be inspected for cracks and made sure they are secure.
    Make sure that the baffles are firmly connected to the tank’s inlet and outlet pipes.
    Drain lines should each receive the same amount of wastewater. They can be examined by opening the distribution box. If the box becomes tipped or clogged, it will disproportionately allocate effluent, and potentially flood sections of the drainfield.

What are baffles?
Baffles are septic tank components that slow wastewater entry sufficiently to ensure the distillation of solids, and prevent their release (as well as the release of scum) into the drainfield. In doing so, they protect the absorptive quality of the soil and prolong the life of the septic system as a whole. They are normally made from the same material as the septic tank -- either fiberglass, steel or concrete.
 
Inspectors should check baffles for the following:

    solids covering the baffle. This should be reported immediately, as it indicates overflow.
    erosion from chemicals and water flow.
    evidence of previous overflow.
    sewage level should be several inches below the baffle top. A lower level indicates leakage and a higher level indicates blockage.

Maintenance Tips
Inspectors should know the following information so they can inform their clients about ways they can inadvertently damage their septic system:

    Only bath tissue can be flushed down the toilet. Tampons, paper towels, cigarette butts and diapers should be put in the trash. Household chemicals such as gasoline, paint, medication, antifreeze and pesticides can damage bacteria in the septic system and should never be flushed or dumped down the sink. Detergents and bleach can enter the plumbing system in moderate amounts.
    Cars should not be driven on or near the drainfield. Their weight can unknowingly damage subterranean piping.
    Only grass should be planted above the septic tank and drainfield. Roots from trees and large shrubs can cause unseen damage.
    No one should ever dig or build on top of the drainfield.
    All water drainage from rainwater, sump pumps, or any surface water should be diverted away from the drainfield. An over-saturated drainfield can retard the water treatment process and cause plumbing fixtures to back up.
    An easy way to prolong a septic system’s life and prevent a very costly replacement is to fix leaky faucets and toilets immediately. Any household water waste should be avoided. Taking shorter showers and not using a garbage disposal are ways to limit water use.

Some Precautions:

    Inspectors should not enter the septic tank to look for cracks. Tank interiors are very dirty and entrance should be avoided. If a crack is present, it will likely be at the level of the effluent, which will have drained from the tank through the crack. A strong sign that a crack is present is an effluent level significantly below the level of the tank outlet. A tank with cracks that allow effluent to leak into the surrounding earth is essentially a cesspool and needs to be replaced.
    Above-ground water indicates an overloaded septic system, if this water originates from the tank. Inspectors sometimes use a dye flushed down the toilet to confirm that the water originates from the house and not elsewhere. While this measure can be helpful, it is not an acceptable method to test septic system functionality. Flushed dye that appears in the puddle will confirm a faulty septic system, but dye that does not appear does not ensure a working system. Dye can take days to appear and may be too diluted to see clearly.
    Septic system inspection is outside the scope of general home inspection and requires special training. Laws vary by jurisdiction, and inspectors should know them well before performing this service. They should disclaim any part of the inspection of the septic system that they did not inspect.

Septic System Dangers
Septic systems are designed to handle dangerous waste and can pose serious health hazards to homeowners and inspectors. The following are a list of precautions:

    A professional septic tank pumping service, not an inspector, should remove solid waste.
    No one besides a licensed, equipped professional should enter a tank. Noxious fumes such as methane can cause rapid asphyxiation and death.
    If a septic tank shows signs of weakness, tread with caution! Collapse can be fatal. Beware of tanks with rusting metal, homemade lids, or anything else that appears unstable.

 
In summary, septic system inspections should be performed on an annual basis to ensure proper function. The septic tank is the most expensive household fixture and its lifespan will be shortened significantly if it is not maintained.

Judy's note: It is prudent to get a second opinion if your Nachi building inspector has any concerns. If a Septic Company comes out to inspect your system, and notifies you of an expensive fix, you should also get a second opinion.

Article submitted by Nick Gromicko, Rob London and Kenton Shepard

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

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Financing Update and Today's Mortgage Rates in Connecticut- July 8, 2011

This is a great time to buy!

Turmoil and change has been a constant in the mortgage industry and we've always worked our way out of it. Much of what drives our industry is not of our own making or easily managed but we somehow find a way to develop products that both serve the customer and keep our doors open.  It is easy to vilify the mortgage industry, even when the root causes lie far afield as it was with Enron's collapse due to  accounting issues. Caution,  be careful of what you wish for - you may actually get it. For political, economic and accounting - remember:  capital will flow into an arbitrage opportunity, be it a rate arbitrage or a credit arbitrage, until that arbitrage opportunity no longer exists, after which it will not flow at all.  Many, if not most, of the proposals floated to reform real estate finance seemingly forget this basic fact and, if implemented, would be pro-cyclical  - meaning they would serve to provide too much mortgage capital during boom periods and too little during times of slowdown.  Before we wish away Fannie or Freddie or GNMA, we'd be wise to remember this...


30 year fixed - 4.50% - .50 points for rate
20 year fixed - 4.250% - 0 points for rate
15 year fixed - 3.750% 0 points for rate
10 year fixed - 3.250% 0 points for rate
5/1 ARM - 3.00% - 0 points for rate
7/1 ARM - 3.50% - 0 -points for rate
Jumbo - over 729,000
30 year fixed - 4.99% .50 points  for rate
15 year fixed - 4.50% .50 points for rate
5/1 ARM - 3.50% - 0 points for rate
7/1 ARM - 4.00% - 0 points for rate

FHA/VA
30 year fixed - 4.375% - .375%  points for rate
5/1 ARM - 3.250% .125% points for rate
7/1 ARM - 3.625% - .250  points for rate

Jennifer Buchanan,  Certified Mortgage Planning Specialist at MetLife Loans is a seasoned veteran of the Mortgage, Banking and Broker Industry and specializes in mortgage loans throughout Fairfield County, Connecticut.
   Her attention to detail is unsurpassed, and her understanding of the marketplace makes it easy to find the right loan to fit her clients specific needs .  Jennifer's local processing and closing team are also known for their exemplary service.
   Understanding that the vast majority of mortgage brokers never discuss the long or short term  financial needs or goals with their clients, she set herself apart from the rest by obtaining the coveted CMPS  designation. (Certified Mortgage Planning Specialist)
    She is a member of the National Association of Responsible Loan Officers, and her commitment to ethics, understanding of the marketplace, and business acumen have earned her the respect of her peers and clients alike.

Jennifer Buchanan
Metlife Loans
203-341-6949

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Sellers! What NOT to tell a Realtor

There are certain things that you should never tell an agent when you are interviewing Realtors to sell your home. That may sound a bit contrary, but let me offer some clarification.

• Don't tell the Realtor that you have not hired yet that you are going to go with the agent that tells you they can get the highest price for your home, even if that's what you are thinking. There are a lot of unscrupulous agents out there who will inflate a price just to get you to sign an agreement, only to reduce it to a reasonable price later on.  And, by the way, all of the agents that work in town know the agents that do that,  and tend to somewhat dismiss their listings as being overpriced. You don't want that reputation inadvertently lowering your final sales price.

• If you choose to interview a few Realtors to decide which one is the best choice to sell your home, you should absolutely be candid and frank with them. Most agents will ask you a number of questions when you meet them as well, in order to "qualify" you and see what your motivation is before they get too involved. In other words, they are interviewing you just as much as you are interviewing them.

The danger posed to you and the final sales price of your home is in offering to tell that agent your "bottom line" sales price, or answering the seemingly innocent question of, "What is your bottom line?"

Why should  that information be kept so close to the vest? The answer is simple. That agent does not yet represent you, and if you choose to hire another agent after you have told another agent how much you would accept, then that can sabotage your efforts in effecting the highest sale possible.

That agent that you don't hire may have a buyer, either presently or at some time in the future.  If you have already told them your bottom line, and they are under contract with a buyer to get them the best price, then they have "inside info" as to what you will take (as well as a fiduciary responsibility to that buyer).  I would think that you may not even get an offer from those buyers that equals your bottom line.

The agent that you don't hire may mention your bottom line price  to someone else in the office that has a buyer for your property. Same results.

When you decide on an agent that you are going to hire, you can tell them this information after the contract is signed. At that point, that agent owes his/her fiduciary responsibility to you, and cannot divulge this information.

So think before you speak, and also before you sign.
If you are thinking of selling your home, contact me. I'll guide you in all the right ways.

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Why isn't your home selling when everything around it is?

Remember those first few weeks that your home was on the market? Buyers came, you may have gotten an offer or two.. (that unfortunately didn't go together) and then the bustling activity that your home experienced almost slowed to a crawl?

It's buying season and homes are selling around you, and  for what seems to be exhorbitant prices, and yet you've drooped your asking price a few times, and nothing??

I hate to say it, but buyers AND agents can get finicky about a house that's been on the market for a length of time, and the length of time varies town by town.

Most buyers rely on their agent to pick out homes, and only choose a few that they want to see.  It's usually the buyer's agent that may have a few reasons for not showing your home.

Here are the top few reasons that you may have already figured out:

• Your home does not suit their clients needs, and they know it. It would be a waste of both the buyer's time and the agent's time.
• The buyer does not like your general location, your style of home, or the fact that your home  doesn't have a specific amenity that they want.
• Your home needs updating, and the buyers aren't prepared emotionally or financially to do it.

Now here are a few that no one has told you:

• Agents think that after a certain period of time that your home becomes stale. If nobody else wanted it, then why should their buyers want it?
• Your agent is difficult to deal with, or has a reputation as being difficult to deal with.
• YOU may have gotten a reputation as being difficult to deal with. Here's how that can happen- If you are offering a less than generally accepted commission, you already look like you won't negotiate.
• If you are at the home during showings, or speak with the agents showing your home, you may have said something inadvertently to aggravate an agent. No one says you did it on purpose. The way to get around this one is easy- just don't talk to the agents that represent the buyers that come through your home.
• Your home has not been marketed properly

Ask your agent for an honest evaluation as to what the problem is, another market analysis, and to show you all the homes that have sold during the time your home has been listed. If they are not willing to do this, fire them, period.

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