Some homeowners have a long laundry list of to-do repairs and, interestingly enough, many of those items don’t get addressed until (or if at all) it’s time to sell the house. In hot real estate markets, repairs are sometimes not done before the sale. Remember bidding wars over properties that needed work? Well, today sellers are looking for the advantage that makes their home stand out. Even though housing inventory declined toward the end of last year, it’s expected to rise as more foreclosures tumble into the marketplace this year.

While fixing up a home to sell can be costly, there are some ways to reduce the damage to your wallet. Cheryl Reed from Angie’s List spoke to me about important repairs that shouldn’t be overlooked. They are: changing your furnace air filters regularly, fixing leaky faucets/toilets, repairing caulking issues in the bathroom and defective electrical outlets/wiring.

“Our experts in the heating ventilation air conditioning industry tell us that 60 percent of all their service calls start because it’s a dirty filter issue. If you have a dirty filter, it affects the efficiency of your furnace,” says Reed. She says that it’s a simple and easy repair that improves the air quality and saves you money.
“You can save about $100 a year if you just change those filters when you should.” She recommends checking your air filter every time you get your energy bill. “If it’s dirty and you can tell, you can see it; just switch it out. You can buy a number of air filters ranging from moderately good to really expensive and high efficiency, in terms of cleaning the air. You have a number of different options, depending on your budget,” says Reed. She also says, depending on health conditions of those living in the home, changing filters more frequently might be necessary.

The second repair is annoying and easy to spot. “If you’ve got a leaky faucet or running toilet, that’s going to cost you,” says Reed. “If you don’t get it fixed you’re going to be paying more and more. It can also lead to mold damage. It can lead to a loss of your cabinetry—the flooring in your cabinetry can be rotted away and that can affect your floor underneath and the walls. So you can have a big issue if it’s not fixed soon,” says Reed.

If there are problems with your home when you begin to show it, buyers will spot them. Reed says, “People who come to your house to check out whether they’re going to buy it or not are looking really closely and they’re listening really closely too.” With plenty of housing inventory on the market, buyers are likely to move on if they feel the house needs a lot of repairs.

“You have to put forth your best impression. These small relatively inexpensive fixes are really important,” says Reed.

Dirty tiles and damaged caulking can send a message to buyers that the house may be in need of even bigger repairs. “You’re first going to have an aesthetic issue and second that’s an indication that you’ve got a problem that could lead to mold and nobody wants mold in their house anywhere at all—it will grow if you don’t have proper seals in your bathroom,” says Reed.

“Those are things that you can see every day—sometimes we get so used to seeing them that we forget about them,” says Reed. However, buyers don’t.

Reed offers this advice, “Pretend you’re going to try to buy your own home; what do you see that you wouldn’t tolerate?” She says it’s worth it to take the steps to fix the problems. Buyers don’t want to fix those problems any more than sellers do. Check for defective outlets. Electrical problems are not only irritating but also can be very hazardous. “An electrical fire can destroy your home,” says Reed.

Who should do the job? Of course, saving money is always key. Reed says some of these repairs might be suitable for a handyman but she cautions homeowners to be sure that the level of the repair matches the expertise of the person you hire.

“You’re going to pay more in the end if you don’t check out the person you hire to help you. Make sure that person has a good reputation and if it’s required for him or her to be licensed in your area, you really should a licensed person, even if it’s more expensive,” says Reed. Reed says, you may pay more but you’ll get the job done right the first time.

by Phoebe Chongchua

By: Heather Peck, Rosen & Company West

Every state is different when it comes to foreclosures. And in times like these, things have changed. Even here in Las Vegas, it used to be if they foreclosed on your house, the sheriff showed with someone from the bank up a day to two later to evict you, lock you out and then make arrangements for you to come back and get your stuff.

But these are troubled times, and there are large numbers of homes being foreclosed on every day. Currently, at least in Las Vegas, if your house is not purchased at auction by an investor or new owner occupant, the bank will assign your property to an asset manager. This could be a real estate agent or an asset management company who takes care of the property until the bank is ready to list the house.

The asset manager or agent will come by and do an occupancy check to see who’s living in the house. If its a rental tenant, they have different rights than the previous owner.

If you’re a tenant with a lease, the bank has to, by law, give you at least 90 days to make arrangements to move. They may offer you cash to move sooner, or if you have a lease that doesn’t expire for a longer period of time, they are supposed to honor the terms of your lease. This doesn’t mean you don’t have to continue to pay rent, it just means you’ll pay it to the asset management company or whoever the bank chooses while you make plans to move. Another alternative is to go get prequalified and buy the house you’re living in.

If you are the previous owner, the process is a little different. After they do the occupancy check and discover you are still living in the house, they will probably still offer you a cash for keys offer, giving you 30 days to move and also offering you up to $1500 to move and leave the property in good condition. But make no mistake, you have to move out. You have no rights, and the bank is just trying to protect their interest by offering you cash so you won’t trash and strip the property when you move. They could call the sheriff and have you evicted if they wanted to. Once the title went back to the bank (and it usually only takes 1 day to record back into the banks name), you’re tresspassing and subject to immediate eviction.

Another scenario is when an investor buys the house. They may actually come and try to make a deal with you, offering to rent the property to you for a couple of years, and possibly sell it back to you on a lease option. Depending on your current financial situation, this may or may not be a good option for you. Rent may be less than what your house payment was, and you don’t have to move. They will probably want an option payment, but you haven’t paid a mortgage payment for 6 or 7 months so hopefully you now have a little cash set aside.

Lastly, a new owner occupant may have bought the property at the auction. This is now beginnning to occur more frequently. They have the right to evict you. They too may offer you a small financial incentive to move or they may show up with the sheriff. Its their call. Remember, once the property sold to someone else, you’re trespassing.

Foreclosure is a difficult situation and no fun for anyone. This process as I described may or may not work in other states or even cities across the country. Take the time to find out how it works where you live. Talk to a couple of agents who specialize in foreclosures in your town.

Please don’t put your head in the sand. No one wants the sheriff to show up and tell them they have to get out NOW!

If you’re behind on your mortgage, or you think you’re going to be, call a professional and find out what your options are. The sooner you do, the more options you have. They may include a loan modification, forensic audit, deed in lieu, short sale or foreclosure. Some processes are just bandaids, some are real solutions depending on your situation. There is lots of help out there, and a lot of it is free.

Contact Heather: 702-595-7380 or email: LasVegasExpert@yahoo.com