Cut Winter Heating Costs

Now is the optimum time to start thinking about preparing your home for winter. Here are some things you can do:

Take advantage of heat that’s there anyway. There are plenty of activities you do around the house that generate warmth, such as cooking a meal or taking a shower. When you shower, keep the bathroom door open so steam spreads to other rooms, and don’t turn a ventilation fan on; it will rapidly remove the warm air you’re hoping to keep around.

Lower your thermostat. You likely won’t notice a huge difference if you turn it down just a few degrees, a move that can shave 5 to 10 percent off of your heating bill. It’s especially wise to turn down the heat whenever you leave your home for several hours.

Consider a programmable thermostat. They cost between $30 and $100, but that’s money you’re sure to make back over the course of a year due to your heating bills being reduced. A programmable thermostat allows you to adjust the heat on a predetermined schedule, so you can lower the heat when you’re not home or when you’re sleeping.

Watch that water heater. It’s also not likely to be noticeable if you turn down the thermostat on your water heater to a recommended 120 degrees from about 140 degrees.  Consider installing an insulating water heater jacket. Be careful to follow manufacturer's recommendations and don't cover the thermostat.

Don’t let heat escape unnecessarily. Keep your doors and windows shut when the heat is on. If your home has a fireplace that you aren’t using, be sure the flue is closed and glass doors are in place to minimize heat loss.

Call for a checkup. Proper maintenance will help your heating unit run more efficiently. Electric and oil heaters should get professional attention at least once a year and gas heaters every other year. Also, here’s a step you can take all on your own: Remember to check the filters in your heating system and make sure they’re clean and clear. Dirty filters lead to higher heating costs.

Keep windows covered when it’s dark outside. This will help you reduce heat loss and keep cold air at bay, especially if you have older windows. Be sure to let in the light during the daytime — those rays of sun will help heat your home.

Explore outside. Check the exterior of your heating unit. Avoid stacking anything against the heat pump or draping anything over it. Hose the outside unit down to clear it of dirt, leaves and grass clippings. If your indoor unit appears to have excess water around it, see whether the condensate drain and pan are blocked.

Check and replace weather stripping on doors and windows.

Air leaks around faulty weather stripping on doors and windows contribute to making interior spaces of your home uncomfortable and increase heating costs. Check for drafts and repair or replace worn stripping.

The Value of Investing in a Monitored Home Alarm System

The safety of your family and home should always be your number one concern.  Much like our cell phones, home alarm systems have come a long way.  In addition to “scaring away the bad guys”, a monitored alarm system can also call emergency personnel, flash your homes lights in an emergency, be controlled from your cell phone, turn off your air conditioning, turn on the porch light before you arrive at home, detect carbon monoxide and much more.  Alarm systems are most commonly thought of as a way to ward off intruders.  While they still serve that purpose in many cases, they also come with several other benefits. 

·         One touch emergency call – Most systems come with a one touch button for fire, ambulance or police.  This is an incredible feature if you need to leave quickly, tend to someone else in home.  Alarm companies will send emergency personnel after a few minutes of non-response once an alarm is sounded.

·         Deter intruders – The visual signs of an alarm sticker on your window or a sign in your front yard will be enough to make an intruder think twice.

·         Insurance Discount - If you own your home, you may be eligible to receive a discount on your home owner’s insurance policy.  Homes with an alarm system are a lower liability for insurance companies. 

·         Mobile operation - Many alarm systems allow operation from your mobile device.  You have the capacity to arm or disarm your security alarm, turn your air conditioning system on or off as well as operate interior and exterior lighting controls all from your phone.

·         Smoke detector - An alarm system has the capacity to detect both carbon monoxide and smoke, alerting you to danger.

·         Adds value to your home – In this competitive real estate market, an alarm system will add value to your home. 

Most importantly, a home alarm system can give you and your family peace of mind.  If you are considering an alarm system, most companies will offer you a free estimate.  It is wise to obtain three bids and thoroughly investigate any service provider before signing a contract.  In the Las Vegas and Henderson area, our preferred vendor is Total Safety, Inc. 

Glen Valiquette

Total Safety, Inc.

(702) 501-2487

www.tsivegas.com

*The Worthington Hatcher Harbison Team, Laura Harbison LTD and Realty Executives of Nevada cannot be held responsible for any work or service provided by this business.  It is suggested that you thoroughly investigate any business before contracting their services.

Will it get worse before it gets better?

Everyone wants to know why the housing market in our area isn’t getting better.  With interest rates staying at record lows, and housing at now “affordable” prices, it would seem that we would be on our way to recovery.  However, there are “headwinds” that are slowing, or preventing, our progress:

 

1.       Inventories are still too high, and it looks like that will continue to be the case for quite some time.  In addition to the MLS “listed” inventory, we also have to plow through what is now being called the “shadow inventory”,  which consists of inventory held by banks and loan servicers that are not yet offered for sale, plus a large number of homes which are seriously delinquent on their mortgages (so they will become either foreclosures or short sales).. The shadow inventory is increasing as banks struggle to process all of the foreclosures and short sales, and once the processing problems are overcome, we can expect the listed foreclosure volume to surge.  We cannot move toward recovery until there is less inventory.

2.       Home prices are still unstable.  Although we are no longer in “free-fall”, they still continue to fluctuate, and currently the Las Vegas area is experiencing prices similar to those in 1999.  Anticipation of increased future inventory (as the shadow inventory is estimated to be approximately a 2 year supply of homes) puts downward pressure on pricing, and that becomes a reality as that inventory is released for sale.  The fact that over 70% of the homes in the Las Vegas area are “upside-down” (where the homeowner owes more than current market value) tells us that roughly 3 out of 4 homeowners that will sell their property will be in a  short sale situation.  So, it’s predicted that we are going to be seeing even lower prices on the horizon.

3.       The “Foreclosure Crisis”, an inquisition into whether or not the banks have been properly processing foreclosures, has slowed the foreclosure process, and therefore slowed the recovery process.  The true extent of the problem this has created remains to be seen, and should not be underestimated.  This issue is likely to place significant downward pressure on home prices for an extended period of time, which affects not only the housing market recovery, but also the economy as a whole.

4.       The “Employment Crisis” directly affects the housing market and the overall economy too.  Statistics show that over 40% of the unemployed have been unemployed long term (over 27 weeks), which implies that their job loss is most likely permanent rather than cyclical.  Housing related employment, such as construction, has taken the hardest hit with roughly a million jobs “lost” nationwide by the elimination of those jobs completely (roughly 8 million jobs were lost during the recent recession).  Las Vegas had a high concentration of housing related jobs, leaving a large number of people trying to enter different segments of the job market, or in need of relocation.  Our rising population is outpacing the need for workforce, and new jobs are not being created to meet the demand.  The combination of unemployment, fears of unemployment, and stagnant (and decreasing) wages for those that are still employed are all obstacles to home ownership, and do not support growth in our housing market.

5.       Difficulty in obtaining a mortgage is a challenge too.  Currently, stricter underwriting standards are impairing housing growth, but it was the relaxation of those standards that caused a lot of the issue with our housing market in the first place.  With more and more potential home buyers being credit impaired, and overall wealth declining drastically, we have more people “willing” than “able” to qualify to purchase a home.  The fact that the lenders are going back to the previous strict guidelines is ultimately good for the market in the long run, but in the short term, it slows the recovery too.

So, if you want or need to sell your property, or know that in the near future you will, waiting for a “better time” is most likely not the best course of action, as it will probably be quite a few years before you will see a significant improvement in your property's value.  For instance, if our market starts to recover in 2012, and can appreciate at a rate of 4% per year consistently (which is optimistic), it will take approximately 30 years for our property values to get back to 2005 levels.  You will most likely be better off financially if you bite the bullet and get it done.  Think of it as pulling off the Band-Aid; doing it slowly just makes it hurt more and makes the pain last longer, with no benefit.

A definite positive to the current market is the renewed opportunity for investing, for those who are able.  Investing in the now deflated housing market is recommended, as long as it is looked at as a long-term investment.  The days of the “quick flip” are, for the most part, a memory now, and we are back to the credo “The steady pace wins the race.”  Rental return on investment makes sense now, and the potential for long term appreciation seems possible again.  There is a lot of opportunity in this market, as long as you proceed with caution and realistic expectations.  Housing can never go out of style, because people will always need housing, and we keep making more people.   

Seller's Coverage

Most home warranty companies provide FREE "Seller's Coverage" for the homeowner while the property is being marketed for sale.  Although the "free" coverage is not as extensive as the coverage provided to the buyer after close of escrow, it still gives significant coverage on many items, and can also be upgraded to cover additional items for a relatively low cost.  If the homeowner uses the coverage, they are going to pay a low co-pay to the vendor at the time of service (typically $55-75) for the covered repair.  It is important to read over the list of coverages and limits so that you understand what is and is not being covered.  One of the benefits to having the Seller's Coverage on your property during the marketing of the property is that it may reduce the chance of a claim being rejected as a "pre-existing" condition," as the original date the coverage was placed on the property is the effective date of coverage, even though the Buyer's Coverage is typically for one year starting on the date of close of escrow.  When you consider the longer marketing times we are experiencing, it's clear that having the earlier date of coverage is a benefit to both Seller and Buyer.  Even if you are not selling your property, having a home warranty can often defray the cost of unexpected repairs.  If you are purchasing a property, it may be wise to inquire as to whether there is any existing coverage on the property that may be of benefit to you.

Short Sales

Over 70% of the properties in Clark County are now "upside-down", meaning that the mortgage debt on the property exceeds the current market value.  So, property owners who are in this position may consider applying to their mortgage company (or companies, if they have more than one mortgage) for a "short sale."  The term "short sale" simply means that the property is sold for the current market value, even though the amount owed on the property exceeds that figure.  In order  for this to happen, the mortgage company must agree to release the lien on the property at close of escrow so that clear title can be conveyed to the new owner.  Approximately 90% of all short sales are now being approved (and conversely, approximately 90% of all loan modifications are being denied).  If you are curious about the short sale process, feel free to contact me for more information.  We will be hosting a Short Sale Seminar on April 28, 2011, at our office from 5:00 - 6:30pm.