Home Hazards and Potential Dangers

4 Home Hazards

These issues don't necessarily cause illness but are serious nonetheless. The following are common hazards home inspectors often find:

1. Faulty wiring: Overloaded circuits, loose wires, missing covers on distribution boxes, abandoned appliances, or aluminum wiring, which can become problematic with age.

2. Loose guard rails: Stairway guardrails, especially on exterior stairways, that are not securely connected. Decks - often installed by home owners unfamiliar with building codes - that have loose boards.

3. Shower doors: Shower doors that lack safety glass and are not properly secured. A home owner who slips when stepping out of the bathtub and grabs a glass door that isn't properly fastened could be severely injured.

4. Drainage problems: Downspouts discharging next to an exterior wall or a negative grade that slopes toward the home and brings water toward the home, causing foundation deterioration. This can lead to water damage, often seen in the basement, and possibly mold growth. Look for cracks, foundation wall stains, and musty, damp smells.

5 POTENTIAL DANGERS IN A HOME

Home inspection company Pillar to Post has identified these common dangers. Buyers and sellers need to contact a home inspector to make sure these problems aren't present.

RADON

This colorless, odorless gas can seep into the home from the ground and has been called the second most common cause of lung cancer.
What to look for: Basements or any protrusions into the ground offer entry points for radon. The Environmental Protection Agency publishes a map of high prevalence areas for radon .
A radon test can determine if high levels of radon are present.

ASBESTOS

This fibrous material - once popular in building materials because it provides heat insulation and fire resistance - was banned in 1985. It may still be found in older homes' insulation materials, floor tiles, roof coverings, and siding. If disturbed or damaged, it can enter the air and cause severe illness.

What to look for: Homes built before 1985 are at risk of having asbestos within construction materials. Home owners should be careful when remodeling because disturbing insulation may cause the asbestos to become airborne.

LEAD

This toxic metal, used in home products for many years, can contribute to several health problems, especially among children. Exposure can occur from deteriorating lead-based paint, lead pipes, or lead-contaminated dust or soil.

What to look for: Homes built prior to 1978 may have lead present. Look for peeling paint and check old pipes. To get a HUD-insured loan, buyers must show a certificate that homes built prior to 1978 are lead-safe.

HAZARDOUS PRODUCTS

Stockpiles of household items - such as paint solvents, pesticides, fertilizers, and motor oils - can create a dangerous situation if not properly stored or disposed. They can cause illness or even death if small amounts are ingested.

What to look for: Make sure these items aren't tucked away in corners, crawl spaces, garages, or garden sheds. Home owners often don't realize these products can pose a danger and may forget they're storing them. But buyers don't want it to become their problem - and expense - to dispose of. If these products are found, the buyer should require their removal and get a disposal certificate prior to closing, which proves the products were disposed of properly and not just dumped in the backyard.

GROUNDWATER CONTAMINATION

Hazardous chemicals that are illegally disposed of can seep through the soil and enter water supplies. A leaking underground oil tank or faulty septic system can also lead to contamination.

What to look for: Look for any conditions that may be conducive to leakage. Homes near light industrial areas or facilities may be at risk. Also a concern: areas once used for industry that are now residential. Pillar to Post offers a Neighborhood Environmental Report that details any dangers or remedies of environmental incidences and sources of contamination that have occurred at a specified address and within its vicinity.

12 Questions for a Home Inspector!

Disputes over property condition and repairs can kill a deal in a hurry. Take the time to schedule inspections and find out the condition of the property as early as possible to allow adequate time for resolving any issues that arise.

12 Questions Buyers Should Ask the Home Inspector

1. Are you a member, in good standing, of a professional inspectors organization, such as the American Society of Home Inspectors?

2. Are you licensed? (Required only in some states)

3. What systems-plumbing, heating, electrical-will the inspection include?

4. How long will the inspection take?

5. How much will the inspection cost?

6. Can we accompany you on the inspection?

7. Do you have references?

8. Do you carry errors and omissions insurance?

9. What is your specialty and what sort of continuing education have you completed?
Note: If the inspector is a plumber by training and has no expertise in home construction, the inspection might not be comprehensive.

10. Do you provide a written report at no extra charge?

11. Does the report include estimates of repair costs?

12. Does your company also do repairs when you find problems? If the answer is yes, it may indicate a conflict of interest.

TIP: If you have particular concerns about one area of the home-the foundation, for instance-you might want to hire a second inspector who specializes in that component.

Real Estate Forecast: Sunny with a strong chance of Sales

Is the worst over?
Though we aren’t sending out the celebratory party invites just yet, there are a lot of strong signals that are leading the real estate community to believe that the “worst of times” may be in the past.
The key to any degree of stabilization in the housing market is, of course, the balance between supply and demand.
What I can tell you based on my experience is that the market is showing some very early signs of building momentum. In fact, over the last few weeks we have seen dozens of stories published both in real estate trade and consumer publications that reveal some interesting facts about a potential turnaround in the economy and housing sector based on supply and demand.
What could this mean for a consumer? Read on.

Increasing Demand
• According to a May 13, 2008 Utah Department of Workforce Services report, the seasonally adjusted unemployment rate was
3.1 percent in April, down from 3.3 percent in March.
• New companies and projects are adding new jobs. According to Deseret News’ June 1, 2008 Utah TrendLines Extra article
entitled, “Utah Economic News and Data,” a new commercial center, 201 Commerce Center, will add 4,000 jobs in the next
ten years. Oracle Corporation will add 100 jobs paying an average wage more than double the Salt Lake County median wage and a Swiss company is looking to add an aircraft maintenance facility at the Ogden-Hinkley airport in Ogden that would create 200 jobs.

Decreasing Supply
• According to the University of Utah's Bureau of Business and Research, residential construction in Utah is falling. The number
of residential building permits for homes, twin homes, condominiums and apartments declined 58.2 percent in the first
quarter of 2008, compared with the same period last year. With fewer homes being built, current plentiful inventories will likely
shrink.

Bright News in Mortgage: Welcome News for Buyers
And if that news wasn’t good enough for real estate, late last month Fannie Mae reported it was scrapping its declining markets policy which previously required borrowers to put up an extra 5% down payment when purchasing homes in areas deemed “declining markets.”
Under the policy change, borrowers will get loans up to 95% loan-to-value, even in markets in which prices have been falling. Prior to the change, borrowers could only get loans up to 90% to give lenders a 5-percentage-point cushion to protect against possible price declines in the future.
The previous controversial policy kept some would-be home buyers from taking action because they could not come up with the funds to make the increased down payment. Others may have avoided buying because they were afraid to do so if prices were still declining. By eliminating this policy, Fannie May will instead require 3% down payments for conventional, conforming mortgages processed through its Desktop Underwriter automated underwriting system and 5% minimum down payments for loans process manually, Inman News reported.
The new policy, which took effect June 1, should be welcome news for many buyers, especially first time buyers. NAR President Richard F. Gaylord said the easement of this policy is good news for the industry: “This means consumers across the country will have access to safe, affordable financing with down payments of only 5% on most mortgages, with 100% financing available on some loan products, and we could see an upturn in home sales this summer.”
NAR Chief Economist Lawrence Yun concurs noting, “I would encourage buyers who were disappointed by poor mortgage options to take another look at the market because the lending changes are significant,” he said. “Also, a recent notable drop in interest rates on conforming loans will help consumers in high cost markets...”


So What Could This Mean For A Buyer?
If Yun’s predictions are correct, the housing market will strengthen and prices are likely to begin a steady upswing in the coming months.
Lancaster Online’s May 18, 2008 “Housing Slump can be a Boon to Buyers,” included a quote from Coldwell Banker President and Chief Operating Officer Jim Gillespie who said, “This is the absolute
best time in my 33 years in real estate to buy a home. Interest rates are still low, inventory levels are high and prices are stable. You should not try to time the market. People who try to time the market get burned.”
In Utah, even with fewer sales, the average sales price declined only 1.2% in the first quarter of 2008 compared with the first
quarter of 2007, according to the Utah Association of Realtors. Homes priced above $500,000 are seeing adjustments but homes priced less than $300,000 are seeing activity and, in most cases, are not seeing significant reductions.
Over the last few weeks we’ve seen a real up-tick in buyer interest and homes going into contract. It seems in most markets, housing prices have adjusted to a point where they are “fair” and it seems buyers are responding. As a result, especially thanks to the recent Fannie May declining markets policy change, people who couldn’t afford a home a few years ago are coming back into the market.

If You’re Ready to Move-Up, Now May Be the Time
I recently came across an article published online by the Wall Street Journal on March 16, 2008 entitled “Opportunity knocks in sinking housing market” that synopsized the move-up market quite well. It read: “If you're hankering after a larger home or a house in a better neighborhood, this could be your chance to trade up on the cheap.
“To be sure, when you go to sell your current home, you will likely get a modest price. Since 2006's second quarter, real estate has fallen 10.2 percent, as measured by the S&P/Case-Shiller U.S. National Home Price Index. But your new, grander house will also be relatively inexpensive, so you're effectively cranking up your real estate exposure when the market is well below its peak.
“In other words, trading up to a larger home or a better neighborhood is really about wanting to consume more real estate.
“Still, like any thrifty shopper, you want to buy when there's a sale – and that is what today's market offers.”

My Recommendation: Carpe Diem!
If you have been sitting on the sidelines waiting to enter the market, there may not be a better time than now. Prices in some markets may not have hit their lowest point, but they probably aren’t far off. In many areas, only the pace of sales has been affected while prices have held firm and in some cases, have gone up.
Waiting for the absolute bottom to hit before buying puts you at risk of missing it and getting caught up in a market on the upswing, which, based on what many industry analysts are reporting, may be on the horizon sooner than originally predicted.

As your real estate professional, I would welcome the opportunity to counsel you on the opportunities available in today’s market and help you take advantage of them before it is too late.
Please call me today so we may get started.

2008 Home Sales Statistics

I thought this is a list of very good FACTS straight from the head of the Utah County Association of Realtors! As we look at real numbers it is comforting to see that the housing market is very stable right now. We are seeing an increase!!

The following letter is from: Taylor Oldroyd,
CEO Utah County Association of Realtors®
Subject: Monthly Statistics--April 2008

1.There is a lot of talk about where the bottom of this housing correction is…I am going out on a limb to say that the bottom was in Dec 2007. December saw the fewest number of homes with only 269. Since then, we have increased at a nice and consistent pace. January increased seven to 276. Februray we saw another step of 15 to 291. March broke the 300 mark and hit 327. In April we reached 395. This represents a 47% increase since Dec 2007. I'd say that is a nice climb out of the bottom.

2. Of course comparing April 2008 with last year we still see a 32.5% reduction in sales. Again though,this is a nice step in the right direction. March 2008 compared to March 2007 was off nearly 10 points higher at 43.4%. The signs of a pick up in the market are clear.

3. How did Condos make out? Last month was off 51% compared to last year and this month again a bit of an improvement. April 2008 sales of Condos is down 37% compared to last April.

4. The upper-end of the market continues to struggle however. For only the second time in recent history, no homes priced above $1 million were sold. And home sales above $500k were down 71% from April 2007.

Summary: Price it right and it will sell. If you're in the higher end, hang in a bit longer and as Utah leads the country in economic indicators, these upper-end homes will see a slow rebound too.

Great Time to Buy or Sell

Utah is among the best states in the nation! We enjoy low unemployment, large influx of new residents, and plenty of available housing! This is a great time to buy or sell in Utah!
* Inventory is excellent, offering many choices in many price ranges. Buyers can truly choose the perfect home!
* The housing market is experiencing price stabilization so buyers are getting better value for their money!
* It is estimated that over 41,000 people will be moving to Utah this year!
* Mortgage programs are plentiful for qualified buyers!
* FHA lending programs are available to more people, even in the Jumbo Loan market!
* Interest rates are historically low!

The market is growing and housing is needed! Buyers and sellers can find the market favorable right now!


This positive information was provided by a great mortgage officer:
Stevan Davis
Axiom Financial
801-836-5678

Waiting to buy might not be in your best interest!

Buyers: We’re in a buyer’s market! But history shows this market won’t last forever and some early implications are showing that it may be changing sooner than you think. Here’s why you may want to act now, before the market begins to adjust:

Fact #1: Affordability is increasing
Fact #2: Interest rates remain attractive
Fact #3: Many sellers are motivated
Fact #4: There are a lot of homes to choose from
Fact #5: Historically speaking, Utah real estate is a strong, long term investment

Why You May Not Want to Make the Mistake of Waiting:
Many buyers are sitting on the sidelines waiting for Utah real estate to “bottom out,” but doing so could cost you plenty in terms of higher housing prices and interest rates. Locally, Salt Lake City, according to an April 29 Forbes article entitled “Recession Proof Cities,” seems to be holding its own as well. The article notes, “A November 2007 report from the U.S. Conference of Mayors projected that Salt Lake City would be one of the few large cities in the country not to suffer a decline in gross metropolitan product from the mortgage crisis.” Furthermore, Lake City’s unemployment is among the lowest among the country’s 50 largest cities and it continues to create job growth in spite of national economic indicators.

What The Experts Are Predicting:
The National Association of Realtors is projecting that home sales will trend up this year. According to the national real estate organization’s April 8, 2008 market update report entitled “Existing Home Sales to Stabilize Before Upturn in Second Half of 2008,” “Little change is expected in existing home sales over the next few months, before improving notably during the second half of the year.” Lawrence Yun, NAR chief economist said the market will come into clear focus this summer, noting “Existing home sales could start to show a sustained increase within a few weeks, unless there are some additional economic problems or excessive inflationary pressure."


Early Implications Show That the Market May Be Changing:
While the stars remain aligned for buyers, in recent weeks there have been some noteworthy developments that could mean positive growth for real estate and a shift towards a more normalized, balanced market. According to an April 25, 2008 Realty Times article entitled, “Real Estate Outlook: Index Says Positive Growth Underway,” there are several implications that show real estate growth may be on the horizon:
• Applications for mortgages to buy houses were up again, for the second straight week, according to the Mortgage Bankers Association of America's national survey. Applications for FHA loans to buy houses jumped by 3.5% and conventional purchase applications rose 2.1%.
• The federal government reported that house prices nationwide stopped their slide between January and February – and actually increased by six tenths of one percent.
• Interest rates remain well under 6%, according to the Mortgage Bankers, with 30-year fixed rate loans last week averaging 5.74% and 15-year loans at 5.27%. The Federal Reserve is likely to knock another quarter percent off short term rates next week.
• Freddie Mac announced plans to pump up to 15 billion dollars into the "jumbo conforming" loan market.


A Good Market:
The bottom line is that this is a very good market for buyers but it won’t last forever. And while it is hard to predict when the market will officially “bottom out,” the only way you may do so is when it has begun to rise again. We are starting to see homes sell, largely in part thanks to a drop in home prices, attractive interest rates and a large number of homes from which to choose. All of these factors are changing consumers’ outlook on real estate.

Crisis is over!

I don't think we were officially in a "crisis"! Yes, home sales have gone down, mortgage lending is tight, foreclosures are high, but it all is part of the cycle. There is some encouraging news. I found this article written for the Wall Street Journal and I agree with it completely.
I have included some quotes from the writer.

"The Housing Crisis Is Over"
By CYRIL MOULLE-BERTEAUX
Wall Street Journal Online
May 6, 2008

"For starters, a bottom does not mean that prices are about to return to the heady days of 2005. That probably won't happen for another 15 years. It just means that the trend is no longer getting worse, which is the critical factor...

The boom made housing unaffordable for many American families, especially first-time home buyers...

Prices got so high that people who intended to actually live in the houses they purchased (as opposed to speculators) stopped buying. This caused the bubble to burst...

Since then, house prices have fallen 10%-15%, while incomes have kept growing (albeit more slowly recently) and mortgage rates have come down 70 basis points from their highs...

Inventories are declining because construction activity has been falling for such a long time that home completions are now just about undershooting new home sales. In a few months, completions of new homes for sale could be undershooting new home sales by 50,000-100,000 annually...

Inventories will drop even faster to a seven months of supply – by the end of 2008. This shift in inventories will have a significant impact on prices, although house prices won't stop falling entirely until inventories reach five months of supply sometime in 2009. A five-month supply has historically signaled tightness in the housing market...

More home sales and smaller price declines means fewer homeowners will be underwater on their mortgages. They will thus have less incentive to walk away and opt for foreclosure...

A milder house-price decline scenario could lead to increases in the market value of a lot of the securitized mortgages that have been responsible for $300 billion of write-downs in the past year. Even if write-backs do not occur, stabilizing collateral values will have a huge impact on the markets' perception of risk related to housing, the financial system, and the economy...

Nonetheless, housing led us into this credit crisis and this recession. It is likely to lead us out. And that process is underway, right now."