Should you accept an offer right now, counter, or wait?

Your home is on the market, and although buyers have come through, and some of them have even placed offers on your home, those offers ended up going nowhere, and your home is still on the market.

So you reduce your listing price to obtain a new buyer, and then nothing.  Maybe you reduce it again, and then...... nothing. I have heard many tales from sellers who ended up reducing their home's asking price to a much lesser price than their first offer, and they just feel like they are giving their home away. How much do you have to reduce your home to sell it, when just a month ago, buyers were banging down the door to come in?

Now I am fully aware that some offers go nowhere, and some deals fall apart- (a lot more than they used to, it seems) but if you have an offer on the table, especially given these circumstances, don't wait to respond.

Have you ever heard the saying, "A bird in the hand is worth two in the bush"? When you receive an offer on your home, respond quickly or respond with a specific time that you will respond, and why, if your agent deems appropriate. That doesn't mean that you have to fire-sale your home. There is no rule on how much of a counter-offer that you must or should give, or when you should give it, for that matter. The important thing in negotiations is that you treat the other party in the manner in which you wish to be treated.

So go ahead, counter offer, make it just a representative gesture if you must, but do something! Otherwise, your home can  end up sitting on the market waiting for the next offer to come in.

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What to do if your real estate agent "drops the ball"?

You would think that since a real estate  agent works only on commission that they would be hungry  for a deal, especially in today's market. Those experienced agents like myself understand that putting a deal together in this market requires a bit more work, and what you may not have had to do a few years ago is now SOP (Standard Operating Procedure)

Communication is key to any transaction- and silence is absolutely deafening. There is  nothing more frustrating to a home seller or home buyer when they put their trust into an agent who "drops the ball" on their transaction and loses the deal altogether. Trust me, the other agent is not happy about it, either. So what can you do?

Pay close attention to your very first clue that something could be amiss in any type of communication at all. This should start at the interviewing process, when you initially select your agent. So if you have even the slightest inkling that there is a communication issue at your very first meeting with your agent, DO NOT DISREGARD IT, and do not hire that agent!  It is a well known fact that people repeat behaviors.  It will only get worse, and that could end up costing you a lot of money. Hopefully, it hasn't already.

A couple of notes on poor communication or miscommunication:

FALLACY: A team of agents is NOT Necessarily better than one. Have you met all of the agents on the team that will be assisting you? Are you supposed to contact certain team members for certain questions? Do certain team members handle only certain things? If you don't have this in writing at the first initial meeting, let them go. They are not organized- if they are not accountable to themselves, for heaven's sake, how can they be accountable to you  if they don't have their duties clearly outlined?

FALLACY: You just cannot tell me that after a buyer's agent submits an offer on their client's behalf to your listing agent, that after a couple of rounds of going back and forth that the buyer's agents suddenly does not return phone calls, and the buyer disappeared without explanation. Face it, your agent is not tracking  down the buyer's agent because your agent was too lazy to make the call. There are NO EXCUSES.

On the VERY RARE occasion that I could not reach the buyers agent or the sellers agent, I have called the office manager, simple as that.

Finally, if you are not getting the representation you deserve, give your agent an ultimatum. Shape up or ship out.
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All about Carbon Monoxide Poisoning & Detectors

I am very pleased to introduce one of the leading authorities in the country on Building Inspections as a guest contributor to the CT Home Blog at www.theCTrealtyBlog.com.

Nick Gromicko, President of www.cominspect.com, is also the Founder of the International Association of Certified Home Inspectors, the world's most elite, non-profit home inspection association. Author of 15 books, his knowledge is unsurpassed in his field, and I am honored that he would share his expertise with my readers. He is also a Director at www.certifiedmasterinspector.org  You won't find a better authority.

CARBON MONOXIDE POISONING AND DETECTORS - by Nick Gromicko and Rob London  

 Carbon monoxide (CO) is a colorless, odorless, poisonous gas that forms from incomplete combustion of fuels, such as natural or liquefied petroleum gas, oil, wood or coal.  

Facts and Figures

• 480 U.S. residents died between 2001 and 2003 from non-fire-related carbon-monoxide poisoning.
• Most CO exposures occur during the winter months, especially in December (including 56 deaths, and 2,157 non-fatal exposures), and in January (including 69 deaths and 2,511 non-fatal exposures). The peak time of day for CO exposure is between 6 and 10 p.m.
• Many experts believe that CO poisoning statistics understate the problem. Because the symptoms of CO poisoning mimic a range of common health ailments, it is likely that a large number of mild to mid-level exposures are never identified, diagnosed, or accounted for in any way in carbon monoxide statistics.
• Out of all reported non-fire carbon-monoxide incidents, 89% or almost nine out of 10 of them take place in a home.

Physiology of Carbon Monoxide Poisoning

When CO is inhaled, it displaces the oxygen that would ordinarily bind with hemoglobin, a process the effectively suffocates the body. CO can poison slowly over a period of several hours, even in low concentrations. Sensitive organs, such as the brain, heart and lungs, suffer the most from a lack of oxygen.

High concentrations of carbon monoxide can kill in less than five minutes. At low concentrations, it will require a longer period of time to affect the body. Exceeding the EPA concentration of 9 parts per million (ppm) for more than eight hours may have adverse health affects. The limit of CO exposure for healthy workers, as prescribed by the U.S. Occupational Health and Safety Administration, is 50 ppm.   Potential Sources of Carbon Monoxide
Any fuel-burning appliances which are malfunctioning or improperly installed can be a source of CO, such as:

• furnaces;
• stoves and ovens;
• water heaters;
• dryers; 
• room and space heaters; 
• fireplaces and wood stoves;
• charcoal grills;
• automobiles;
• clogged chimneys or flues;
• space heaters;
• power tools that run on fuel;
• gas and charcoal grills;
• certain types of swimming pool heaters; and 
• boat engines.

CO Detector Placement

CO detectors can monitor exposure levels, but do not place them:

• directly above or beside fuel-burning appliances, as appliances may emit a small amount of carbon monoxide upon start-up;
• within 15 feet of heating and cooking appliances, or in or near very humid areas, such as bathrooms;
• within 5 feet of kitchen stoves and ovens, or near areas locations where household chemicals and bleach are stored (store such chemicals away from bathrooms and kitchens, whenever possible);
• in garages, kitchens, furnace rooms, or in any extremely dusty, dirty, humid, or greasy areas;
• in direct sunlight, or in areas subjected to temperature extremes. These include unconditioned crawlspaces, unfinished attics, un-insulated or poorly insulated ceilings, and porches;
• in turbulent air near ceiling fans, heat vents, air conditioners, fresh-air returns, or open windows. Blowing air may prevent carbon monoxide from reaching the CO sensors.

Do place CO detectors:

• within 10 feet of each bedroom door and near all sleeping areas, where it can wake sleepers. The Consumer Product Safety Commission (CPSC) and Underwriters Laboratories (UL) recommend that every home have at least one carbon monoxide detector for each floor of the home, and within hearing range of each sleeping area;
• on every floor of your home, including the basement (source:  International Association of Fire Chiefs/IAFC);
• near or over any attached garage. Carbon monoxide detectors are affected by excessive humidity and by close proximity to gas stoves (source:  City of New York);
• near, but not directly above, combustion appliances, such as furnaces, water heaters, and fireplaces, and in the garage (source:  UL); and
• on the ceiling in the same room as permanently installed fuel-burning appliances, and centrally located on every habitable level, and in every HVAC zone of the building (source:  National Fire Protection Association 720). This rule applies to commercial buildings.

In North America, some national, state and local municipalities require installation of CO detectors in new and existing homes, as well as commercial businesses, among them:  Illinois, Massachusetts, Minnesota, New Jersey, Vermont and New York City, and the Canadian province of Ontario. Installers are encouraged to check with their local municipality to determine what specific requirements have been enacted in their jurisdiction.

How can I prevent CO poisoning?

• Purchase and install carbon monoxide detectors with labels showing that they meet the requirements of the new UL standard 2034 or Comprehensive Safety Analysis 6.19 safety standards.
• Make sure appliances are installed and operated according to the manufacturer's instructions and local building codes. Have the heating system professionally inspected by an InterNACHI inspector and serviced annually to ensure proper operation. The inspector should also check chimneys and flues for blockages, corrosion, partial and complete disconnections, and loose connections.
• Never service fuel-burning appliances without the proper knowledge, skill and tools. Always refer to the owner's manual when performing minor adjustments and when servicing fuel-burning equipment.
• Never operate a portable generator or any other gasoline engine-powered tool either in or near an enclosed space, such as a garage, house or other building. Even with open doors and windows, these spaces can trap CO and allow it to quickly build to lethal levels.
• Never use portable fuel-burning camping equipment inside a home, garage, vehicle or tent unless it is specifically designed for use in an enclosed space and provides instructions for safe use in an enclosed area.
• Never burn charcoal inside a home, garage, vehicle or tent.
• Never leave a car running in an attached garage, even with the garage door open.
• Never use gas appliances, such as ranges, ovens or clothes dryers to heat your home.
• Never operate un-vented fuel-burning appliances in any room where people are sleeping.
• During home renovations, ensure that appliance vents and chimneys are not blocked by tarps or debris. Make sure appliances are in proper working order when renovations are complete.
• Do not place generators in the garage or close to the home. People lose power in their homes and get so excited about using their gas-powered generator that they don't pay attention to where it is placed. The owner's manual should explain how far the generator should be from the home.
• Clean the chimney. Open the hatch at the bottom of the chimney to remove the ashes.  Hire a chimney sweep annually.
• Check vents. Regularly inspect your home's external vents to ensure they are not obscured by debris, dirt or snow.

  In summary, carbon monoxide is a dangerous poison that can be created by various household appliances. CO detectors must be placed strategically throughout the home or business in order to alert occupants of high levels of the gas.  

Nick Gromicko, FOUNDER. 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  www.NACHI.TV

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Which is better to find out my home's market value, a CMA or an appraisal?

What's the difference between a CMA and an Appraisal?

Both a CMA (Comparable Market Analysis) and an appraisal are important to determine market value. Which one you choose for your present needs is up to you. You may require both in some circumstances.

When a  REALTOR performs a CMA, which is comparison of a variety of active listings, pending listings (to see how the market is trending)  and sold listings within the past six months as they can best compare to your home, with adjustments as necessary. The agent may NOT quote an exact price, but must give a range of value. There is no cost to this service- the agent  hopes that if you decide to sell, that you will hire them. They will also give you a detailed marketing plan including positioning your home in its best light in the marketplace.  Take note: Some agents are starting to charge fees for  CMA's. Ask before you invite them over. CMA's can range greatly in pricing from agent to agent, given that agent's experience and expertise in pricing. It is important to meet with an agent familiar with your neighborhood and town.

When you hire an Appraiser to give you a price on your home, or evaluation, that appraiser will perform much the same research as an agent, however he/she is also required to use a standardized form, which holds more information thatn most CMA's. Another difference is that the appraiser will typically only use what they determine are the three most relevant active listings, and three most relevant sold properties within the last six months, within a specific radius guideline.  An appraisal will have an quoted market value price- rather than a range,  additional photos,  your Schedule A from the deed (metes and bounds description),  the volume and page number as recorded in town hall of your purchase,  standardized calculations and adjustments, mortgage amount, and the reason for your appraisal request clearly on the form. Expect to pay anywhere from $300- $600 for an appraisal, depending on the type of home you have and where it is.

Both Realtors and Appraisers are licensed through the state of Connecticut and must complete continuing education to maintain their licenses. Both can give you very accurate opinions of value. It is imperative  that no matter which professional you hire, that you make sure that they are very familiar with your area. I sometimes see banks  hire appraisers for properties where the appraisers that they send out live as far as 50 miles away. They just can't possibly know your area well enough to do the best job. Local Appraisers are best, if you need to go that route.

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Mortgage Rates and Weekly Financing update 6/10/2011

I would like to thank seasoned Mortgage Broker Jennifer Buchanan of Metlife Loans  for posting mortgage rates again this Friday, as a guest contributor to update you on the current interest rates and trends. Please feel free to contact Jennifer for any mortgage questions that you may have, and know that she and I work closely together as a team to help you reach your goals.

Fixed mortgage rates fell for the eighth straight week in the widely watched Freddie Mac survey of what lenders are offering to well-qualified borrowers.  The 30-year fixed-rate mortgage averaged 4.49% this week, down from last week when it averaged 4.55%, Freddie Mac said.  Freddie Mac economist Frank Nothaft said a weak jobs report had pushed down yields on long-term Treasury bonds. Those debt securities are a benchmark for home lending rates, and mortgage rates followed suit
This week mortgage experts examined the 10 year Treasury note charts due to its ideal role as a benchmark of the general "bond market."  While it's true that loan pricing is derived from MBS,  or mortgage backed securities the goal was to examine long-term, big-picture movements.  The highest yield levels of 2007 through present day lie roughly along the same line. There appears a near perfect parallel line that, with the exception of the initial panicked flight-to-safety in 2008 and the repeat performance in 2010, the 10 year Treasury note charts contains every last bit of trading since the crisis. 

This is one of those times where technical analysis really is saying something very clear about the future: we're either in for an unfriendly bounce, or we're looking at the possibility of rates going lower. 

Plain and Simple: The revisiting of a long term technical level coincides with several other uncommon market dynamics, including the end of QE2, this is combining to create a perfect storm where rates are "on the ledge, poised for directional volatility.  Best advice, if you are purchasing or refinancing, work with a lender who has real time live MBS market data streaming to them so you can lock if the market starts to move into negative territory.

Mortgage rates this week:

30 year fixed - 4.375 %  with  .250%  points for rate
20 year fixed - 4.125 0%  with .250% points for rate
15 year fixed - 3.625% 0 points for rate
10 year fixed - 3.250% with 1.00 point credit to borrower for rate
5/1 ARM - 2.75% - 0 points for rate
7/1 ARM - 3.125% - 0 -points for rate
Jumbo - over 729,000
30 year fixed - 4.99% 0 points  for rate
15 year fixed - 4.50% - 0 points for rate
5/1 ARM - 3.50% - 0 points for rate
7/1 ARM - 4.00% - 0 points for rate

About Jennifer Buchanan:

    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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