Home Buyers Relocation’s Weblog

The following is a verbatim copy of an article that originally appeared in the wall street journal (in ‘Smart money’).  It’s presented here because it has good advice for 1st time home buyers, but it also, in paragraph 4, advises they should use an “Exclusive buyer agent”, and links to the national association of exclusive buyer agents, (in paragraph 4.) That’s significant because merrill was a founding member of this organization, its first treasurer and its fourth president.  (Also see “About us” for more detail.) 

Deal of the Day by Deal of the Day by Lisa Scherzer (Author Archive) 10 Mistakes First-Time Home Buyers MakeThe declining home values that are plaguing homeowners are just one of the factors creating an opportunity for prospective home buyers. Standard & Poor’s latest Case-Shiller index, which tracks home prices across 20 major U.S. cities, reported that values dropped 19% in January from a year earlier.Those depressed values, combined with near-record-low mortgage rates and government incentives (an $8,000 first-time home buyers’ tax credit included in the stimulus bill), are luring more first-time home buyers into the market. Indeed, a recent Century 21 Real Estate survey found that more than three-quarters (78%) of potential first-time home buyers say now is a good time to buy.If you agree, be aware that buying a home comes with plenty of potential missteps. Here are 10 all-too-common mistakes first-timers make.

1. Not knowing how much house you can afford.Many novice home buyers spend a lot of time researching homes – comparing kitchen layouts and backyard square footage – but very little time researching their financing options. One of the first things buyers should do is talk to a qualified lender and get pre-approved for a mortgage, says Claire Clark, senior vice president of business development at Prudential California Realty. Without first figuring out how much house you can afford, you risk falling in love with one you can’t.

2. Assuming foreclosures are great deals. Just because the previous owner owed $450,000 on a house before the bank took it over doesn’t mean it’s worth that much now. Values have slipped significantly, says Jay Michael, partner at Estate Property Group, a

4. Failing to find a good buyer’s agent. Landing a mortgage is tough these days. So buyers should rely heavily on knowledgeable agents to help them get their finances in order, says Michael. After all, buyer’s agents have a fiduciary responsibility to the buyer exclusively — and should be looking out for their best interests. Start your search at the National Association of Exclusive Buyer Agents, a nonprofit representing buyers (exclusively.) Or consider using an agent recommended by a relative or friend. Interview each candidate about their experience, if they’ve worked with first-time buyers before and what kind of service you’ll get from them.

5. Underestimating the costs of owning a home. Whether it’s a rusty pipe or a leaky roof, things go wrong and need to be fixed. Many home buyers don’t anticipate the additional costs for repair and maintenance, or for an increase in utility costs, says Erin Baehr, CFP and president of Baehr Family Financial. Consider the age of your new home and how well it’s been treated by the previous owners in your budget. Be prepared to set aside a small percentage (1% at most) of the home’s purchase price annually for repairs and upkeep.

6. Failing to budget for property taxes.Property taxes – and the likelihood that they’ll climb over the course of your time in the house – should be factored into any home-buying budget, says Baehr. To get an idea of how much you’ll be paying, call the local assessor’s office or talk to people in the neighborhood.

7. Assuming your first offer will get accepted.As home prices get even more affordable, competition is bound to heat up. “You can’t assume you’ll walk in there, make the offer and get it,” says

8. Skipping the inspection.Before signing anything, hire a professional inspector, says Justin Lopatin, a mortgage planner with American Street Mortgage Company. The seller isn’t likely to tell you there’s mold in the basement or the walls are poorly insulated. Lopatin advises buyers to find and hire their own inspector – independently of the realtor – to ensure there’s no conflict of interest. (You can find inspection companies in the phone book, or by doing a simple web search with your zip code.)

9. Doing too much too fast. Some buyers want to make the house their own right away, says Baehr. They overextend themselves on credit to do so, and assume the improvement will pay for itself by increasing the home’s value. But that’s not always the case – especially in today’s market. Instead, buyers need to exhibit patience and make changes over time.

10. Failing to include a contingency clause in the contract.A mortgage financing contingency clause protects you if, say, you lose your job and the loan falls through or the appraisal price comes in under the purchase price. Should one of these events occur, the buyer gets back the money he used to secure the property. Without the clause, he can lose that money and still be obligated to buy the house, says Lopatin.(Corrected April 6, 2009: As originally published, we stated that a contingency clause protects home buyers if the appraisal comes in above the purchase price. In fact, protections kick in when the appraisal value is under the purchase price.)

For many years, we’ve used a quotation from Robert Frost’s Poem, The Road Not Taken, but mostly on handouts within the office, especially the cover of our “Wiser Buyer Guidebook” passed out at orientation sessions.

On the other hand, we’ve searched for years for something simple that suggests that we’re truly different, which word itself, overused, says, “Yeah, sure!”

In a single memorable moment, a “Duh!” epiphany, we finally put this together, and have started using the last stanza from the poem in our literature, first on the front pages of our web sites.

It stakes a claim to “different” in language more dramatic than the oft-overused word itself, and is a rather poetic version of “Off the beaten track!”

It doesn’t necessarily say how we’re different, but it emotionally and dramatically claims that we are different…leaving it up to the reader to discover why and how.   And of course, it doesn’t take long in the body of the first pages of our web sites for us to tell them.

It promises to be helpful in dramatizing the facts, creating a bit of curiosity and intrigue, creating a more fertile field of understanding, planting a seed of uber-interest.

And then it suggests that they may want to ply this “less trod” path with us, sharing the adventurous courageous elements.  And that seems to be striking a chord.  All of us want to do things differently, to be smart about our decisions, to be courageous and adventurous.

So we’re having a good time with it, and so wanted to share this little insight with you.  You might have comments to us as to how it strikes you.

The following is paraphrased from Wikipedia on the subject, and recites the poem in its entirety at the end.

Robert Frost – The Road Not Taken

Interpretation

The poem has two recognized interpretations. One is a more literal interpretation, while the other is more ironic.Readers often see the poem literally, as an expression of individualism. Critics typically view the poem as ironic. – “‘The Road Not Taken,’ perhaps the most famous example of Frost’s own claims to conscious irony and ‘the best example in all of American poetry of a wolf in sheep’s clothing.’” And Frost himself warned “You have to be careful of that one; it’s a tricky poem – very tricky.”

Literal interpretation

According to the literal interpretation, the poem is inspirational, a tribute to individualism and non-conformism.  The poem’s last lines, where the narrator declares that taking the road “less traveled by” has “made all the difference,” can be seen as a declaration of the importance of independence and personal freedom. “The Road Not Taken” seems to illustrate that once one takes a certain road, there is no turning back. Although one might change paths later on, the past cannot be changed. It can be seen as showing that choice is very important, and is a thing to be considered.This interpretation is connected with misremembering the title as “The Road Less Traveled”, since it places emphasis on the choice made, not the opportunities foregone. 

Ironic interpretationThe ironic interpretation, widely held by critics, is that the poem is instead about regret and personal myth-making, rationalizing our decisions.In this interpretation, the final two lines:I took the one less traveled by, And that has made all the difference. are ironic – the choice made little or no difference at all, the speaker’s protestations to the contrary. The narrator admits in the second and third stanzas that both paths may be equally worn and equally leaf-covered, and it is only in his future recollection that he will call one road “less traveled by”.The sigh, widely interpreted as a sigh of regret, might also be interpreted ironically: in a 1925 letter to Crystine Yates of

The Poem

Two roads diverged in a yellow wood,
And sorry I could not travel both
And be one traveler, long I stood
And looked down one as far as I could
To where it bent in the undergrowth;

Then took the other, as just as fair,
And having perhaps the better claim,
Because it was grassy and wanted wear;
Though as for that the passing there
Had worn them really about the same,

And both that morning equally lay
In leaves no step had trodden black.
Oh, I kept the first for another day!
Yet knowing how way leads on to way,
I doubted if I should ever come back.

I shall be telling this with a sigh
Somewhere ages and ages hence:
Two roads diverged in a wood, and I—
I took the one less traveled by,
And that has made all the difference.

 Practical Ideas for Energy Conservation in Your HomeAn energy audit is a wonderful way to help you understand how you are using energy and how you can improve your energy efficiency. Energy audits can be carried out by professional engineers or you can do it yourself. Contact your utility company for help. It pays!   (If you have additional ideas, use the response form and we’ll add these little ideas to the master list.)

Insulate walls, roofs and crawl spaces

Install energy-efficient windowsInstall a solar water heating system (Illinois pays for part of the cost)

Turn off lights, TV, computers when not in use (and use power strips)

Install motion detectors to control lighting

Turn water heater down to 120 degrees F or lessWrap water heater with a heater blanket

Install water-saving faucet aerators and shower heads, and repair drips

Replace incandescent light bulbs with compact fluorescent bulbs

Tune up heating, ventilation and air conditioning systems so they run more efficiently

Change or clean filters regularly (monthly)

Do you have ceiling fans? Use them, and turn thermostat higher in summer, lower in
winter, making sure fans turn counter-clockwise in summer, clockwise in winter

When replacing older appliances and furnaces, buy newer, energy-efficient modelsPromote and use public transportation;

Set up a transit information corner. Arrange for car pooling to church, anywhere you can.

Get recycle bins: recycle paper, aluminum cans and plastic; avoid Styrofoam

Purchase locally produced goods and foodstuffs to reduce energy used for transportation

Watch for open doors and windows when using heating or air conditioning.

Check out Citizens Utility Board and spread the word: http://citizensutilityboard.org/Check out Low Income Energy Assistance
1-800-252-8643 or http://www.liheapch.acf.hhs.gov/profiles/Illinois,htm#state   

A retired engineer in Edwardsville offers “Energy Audits” of homes and businesses.   (I’ll come back and slip his name and # here, or call us!)

By the way:  Did you know that in Europe, where energy costs have been “high” for a long time, citizens usually shower by turning off the water after they get wet and while they use soap and shampoo, then turn it on again to rise off?   (Related, obviously, a water saving shower head will not only save water, but save energy!!)    End

Do-It-Yourself Energy Audit

An expert energy auditor has the equipment and the knowledge to do a thorough, fine-tuned evaluation of your home’s energy wasters. But if you cannot afford an audit or don’t want to wait, you can conduct a home energy audit yourself. When auditing your home, keep a list of areas you have inspected and problems you found. This list will help you prioritize your energy efficiency upgrades.

Adapted from information provided by the U.S. Department of Energy

1. Check for leaks.

Energy savings from reducing air leaks in a home can be as much as 30 percent per year, and many of those leaks can be easily detected, either visually or by feel.

Inside the house: Check for visible gaps and feel for drafts around baseboards, electrical outlets and switch plates, window and door frames, attic hatches and wall or window-mounted air conditioners. Also look for gaps around pipes and wires, electrical outlets, foundation seals and mail slots. Check to see if the caulking and weather stripping are applied properly, leaving no gaps or cracks, and are in good condition.

Tip: If you can rattle your window in its frame, it is likely that the window is leaky. If you can see daylight around a door or window frame, then the door or window leaks and should be sealed with caulk or weather stripping. If your windows are very leaky and replacing them is not in your budget, consider installing low-cost plastic sheets over the windows.

Outside the house: Inspect all areas where two different building materials meet, including all exterior corners, where siding and chimneys meet, along the foundation, and around faucets and outlets.

2. Conduct a basic house pressurization test.

Close all exterior doors, windows and fireplace flues. Turn off all combustion appliances such as gas-burning furnaces and water heaters, then turn on all exhaust fans (generally located in the kitchen and bathrooms) or use a large window fan to suck the air out of the rooms. This test increases infiltration through cracks and leaks, making them easier to detect with your bare hand.

3. Make sure your insulation is adequate.

Attic: Since heat rises, one of the best ways to save energy is to insulate the attic. A quick look inside the attic or crawl space will tell you whether it is insulated. If your attic hatch is located above a conditioned space, check to see if it is at least as heavily insulated as the attic, is weather stripped and closes tightly. In the attic, check the openings for items such as pipes, ductwork and chimneys to make sure they are sealed with expanding foam caulk or other sealant. There should be a vapor barrier—tarpaper or a plastic sheet—under the attic insulation. Ensure that attic vents are not blocked by insulation.

Walls: Checking a wall’s insulation is more difficult: It can be done either by probing through a wall outlet (turn off the circuit breakers first!) or by drilling a small hole in a closet or other unobtrusive place.

Basement: If your basement is unheated, look at the basement ceiling to determine whether there is insulation under the living area flooring. Other insulation: Your water heater, hot water pipes and furnace ducts should all be insulated.

4. Examine your heating and cooling systems.

If you have a forced-air furnace, check your filters and replace them as needed. Generally, you should change them about once every month or two, especially during periods of high usage. Have a professional check and clean your equipment once a year.

If the unit is more than 15 years old, you should consider replacing it with a newer, more energy-efficient unit—especially if the existing equipment is in poor condition. Check your ductwork for dirt streaks, especially near seams. These indicate air leaks, and they should be sealed. Insulate any pipes that travel through unheated spaces.

5. Update your lighting.

Examine the wattage size of the light bulbs in your house, and consider replacing larger-watt bulbs with smaller ones. Also, consider replacing some or all of your bulbs with compact fluorescent bulbs, which save energy and last much longer.—Hannah Schardt

This intended as an update of the personal lives of our little “family”, late September, 09: 

At home in Germantown, (she gets a kidding for that little town, 30 miles to our east), she supports her retired (from AT and T) husband Ernie, and sees a lot of 3 grandchildren, all boys.  One is now 4, lives on a nearby farm, the son of a daughter.  Two, year-old twins, are sons of her own son.  Along with the son, Mary and Ernie host the twins every other week in their home and so, we at the office follow those fortunes, too.  While this duty is mostly a joy, there’s an occasional all-nighter, or certainly, some sleep-deprived nights.   Another married daughter rounds out her immediate family.   Mary is also fun to tease.

Debbie Carroll:  Debbie and husband John live in nearby O’Fallon.  While they are empty nesters now, they did raise (or are raising), 4 daughters….(”whew!”) that are out in the job world, with one still in college.  They have one precocious granddaughter whom we all see frequently…the delightful Makayla.  John has a private business as a networking specialist, so 1) spends long hours away from home and 2) is a boon to us on many occasions as we struggle with the computer world.  At the office, Debbie is our “Relocation Director”, and so has the responsibility of servicing families before they ever get to town, usually helping with orientation and certainly supporting the agents and the company in any way possible.  We have a hard time keeping up with the life-stories of the 4 daughters…as you might imagine.  Debbie and husband are both natives of O’Fallon.  She was a respected traditional realtor before she joined us  6 years ago.

Nancy Jo Mitchell:  Nancy Jo has a recent distinction…she got caught in Houston and so experienced Hurricane Ike!   While visiting an old friend there, transportation out was suddenly curtailed, and she “rode it out” with her host family.  We’re trying to get her to do a little story on it, but she said it was an awful wind and incredible rain.  (We can believe that as we got over 5 inches on Sunday morning, the 14^th, in nearby Edwardsville, and a lot of wind, all the tail of the same hurricane.  It was a record rainfall in a 2 hour period.)   Nancy Jo’s husband Ron is a musician and music teacher, not quite retired.  He’s a great trumpet player still and plays “out” a lot locally.  In our photo gallery there’s a picture of him from Life Magazine, playing the trumpet in the football band in college…an unusual scene, where while he was kneeling, a dog rushed onto the field and “bit”  his trumpet.   Together, they have 6 children…3 sons and 3 daughters.  Chris is licensed with us, another lives locally and the third lives in Colorado.  One daughter is an Air Force wife and the mother of 4 sons, one recently married, (Husband, Manny is now deployed in Korea.)  Two more daughters and a son live in Colorado, raising families of their own. 

Denise Carter:  Denise grew up in Chicago, but landed here with husband Frank, who had a career in the U S Navy.   They have a boy and a girl out of the nest, too, but living locally.   Denise and Frank live near Albers…20 miles east along IS 64 on a beautiful tract near the Kaskaskia River, where they enjoy working in the extensive yard and supporting Frank’s “side business”.  While working full time for Ameren, (and commuting horrendous distances to various generating plants,) Frank is an accomplished wood worker and participates in hardwood manufacturing as well as creating projects of wood with his “heritage” quality construction.   Denise’s parents also live nearby…of French-Canadian extraction, they’re lovely people to have around, moved from the

Paul Ottwein:  Paul is the “broker-of-record” for the Edwardsville office and with his son, John, also licensed with us, services most of the Edwardsville and Madison County traffic.  The rest of us marvel has to how he gets it all done and still his time for some interesting other activities with an active family.  Paul was married in April, to Amber Roper in a lovely ceremony in an historic home in

John Ottwein:  John is one of Paul’s 3 sons, and with his licensure, we became the first family around here in a long time that had 3 generations of licensed realtors.  John has also formed a real-estate related business, totally on his own.   With Illinois radon-disclosure laws changing as of Jan 1, 2008, Paul and John viewed the business of radon mitigation as an opportunity.  So John got some experience and interviewed others in the business, studied for and passed a couple of tough tests, developed a detailed business and marketing plan and is now in business as “Radon Control, Inc.” a radon mitigation company.  In the couple of months that he’s been in business, he’s been remarkably busy.   Obviously, we wish him well, and we hope he’s got a little time to also support Paul’s clients.  It was great fun to see him put this business together, and, we believe, do it right.

Merrill Ottwein:  Obviously, I’m (mostly) the writer of the above, so had to wait until last to tell my own story.  I do get to meet most of the clients coming to the O’Fallon office, but I miss a few, too….really, still a joy to help deliver top service.  But they’re allowing me a bit of slack in recent years, so we’ve been able to do a bit more traveling and still enjoy children (3 girls and Paul) and grandchildren (8 of them, all boys!)  A more recent tag-along, 5 year old Ben, demands, and gets, a great deal of attention.  We seem to be extremely busy with a host of things, starting with “business”, but participation in the Troy Community Band, Eden Church, The National Association of Exclusive Buyer Agents, our local homeowners association and our family.  A little cottage-on-a-lake in Glen Carbon seems to demand a lot of attention on top of that,and the total adds up to “busy”.  Gracie and I just celebrated our 58^th wedding anniversary on September the Tooth.   We have plans to go to our national association’s annual meeting in Orlando and visit Gracie’s aunt and the aunt’s family in Florida on the same trip, and to visit daughter Amy and her husband and 2 boys next week in fact.  These trips do give us a little chance to take a more objective look at our web site and other stuff we do in the business, still very enjoyable, even in these a-bit-tougher times.

We’ll hope to be back from time to time with updates and hope you find it interesting.  It’s our little “family”…in service to yours during business hours, which seem to stretch immensely, intermingling with personal thoughts and time.