Coldwell Banker's Global Mindset

Keeping your home safe for trick-or-treaters

Halloween is coming up Thursday, October 31. If you're going to give treats, it's important to keep your home safe for the kids who will be visiting. Here are some tips to help the trick-or-treaters feel welcome and safe.

Let there be light

Make sure you've got the exterior well lit, including porch light and spotlight if you have one. (And if you don't, you should consider installing a light with a motion detector.) If you're not going to be home, or if you're not giving treats, make sure to turn off the porch light.

Clear the way

Make sure the walkway, driveway and porch are free of obstacles. Remember that kids don't always pay attention to where they walk. They will walk across the yard, too. So make sure to remove anything they can trip over such as flowerpots, tree limbs and garden hoses.

Be aware of the dog

You may have the nicest, most well-behaved dog in the world, but with knocks and the doorbell ringing non-stop for a few hours, they may get over-excited and make an escape when you've got the door open. Keep them in a separate room or kennel just to be safe.

Flame off

If you've got jack-o-lanterns on the porch, consider replacing candles with electric or battery operated lights.

Don't advertise

Avoid posting on social media if you plan to be away from home on Halloween. At best, nothing will happen. At worst, you just let everyone in the area know you won't be home.

Open up

If possible, keep your curtains and door open so they'll know you're home and they're invited to the door. This will also make more light available on the porch and walkway.

Know the audience

Not trying to cut your enjoyment of Halloween, but don't try to scare the daylights out of the kids when they come to the door. A costume is fine, but a scary mask or walking out in full Texas Chainsaw Massacre regalia is over the top.

Don't give out homemade candy

It's a waste because most parents won't let their kids eat it anyway.

Don't invite children inside

Unless you know the children very well, don't invite trick-or-treaters inside. Although you mean well, this teaches kids it's OK to enter strangers' homes.

A little preparation will help you to enjoy seeing the kids and make them feel welcome and, more importantly, safe when they visit your home on Halloween.

Four home improvement projects you shouldn’t do yourself

Many homeowners have good intentions when they start a home improvement project. They want to save money, for sure; and there's a lot of satisfaction to be had when doing it yourself.

There are occasions, though, when even a DIYer with better-than-average know-how is overmatched. If you're looking around the house at an extensive honey-do list, here are four projects that you may consider doing yourself, but should probably hire a professional.

Refinishing hardwood floors

This is not a job that you want to do by hand or with a handheld or belt sander. Yes, you can rent a floor sander and buy everything you need, but if the equipment is not calibrated correctly, or if you make a mistake, it could cost you MORE to have a pro come in to fix the damage that you did. Floors that are not properly finished are easy to spot. Hardwood floors are very desirable these days, and can increase the resale value of your home.

Installing a water heater

Whether you're installing a traditional water heater, or a tankless system, most municipalities require a building permit to complete the job. A traditional tank heater requires water and gas connections, which means hiring a licensed plumber. A tankless system has the added challenge of an electrical connection. The advantage of a tankless water heater is that it heats water as you use it, instead of heating and storing the water, which means that your hot-water supply is essentially endless. There's no bulky tank taking up a corner of the basement; there's no pilot light, so it's safer; and it will very likely lower your utility bills. Oh, and you'll never run out of hot water because a tankless system will heat 180 gallons of water per hour.

Installing a lamppost

Any time you have to add new wiring, the project is best left to a professional electrician. They will know and adhere to building codes, which makes it easier to pass inspection. This is a very involved project, requiring drilling a hole in your home to run new wiring, digging a trench for the cable, pouring a concrete base and running the cable through the base.

Sheetrocking

This is one of those jobs that seems very easy, but requires a high level of workmanship. Not only does it require more than one able-bodied person to put the sheetrock in place, mudding is involved, usually more than one application. Drywall compound dries very quickly and requires sanding, which kicks up dust. A professional gets it done quickly without the mess, which means it's ready to paint more quickly (a job you can definitely do yourself.)

There are plenty of projects to keep DIYers busy around the house. These are just four projects that are best left to the pros. What did we miss? What projects have you started only to realize that you should hire a professional?

Home improvements that could hurt the sale of your home

Homeowners who are ready to move sometimes think that they need to make some quick improvements to either add value to the home or increase the likelihood that it will sell quickly.

Although it may add perceived value to the current homeowner, prospective buyers are not likely to be impressed with the new renovations and sure aren't going to pay for your sweat equity and monetary investment.

Here are some projects that you think add value to your home, but don't.

Adding a pool

Swimming pools are expensive to build and maintain, will add to your insurance premiums and can be a deterrent to families with young children. Sometimes, the buyer will write in a contingency that the pool be filled in or dismantled.

Overbuilding for the neighborhood

Some improvements and additions will not add value if it causes the home to stand out as "too good for the neighborhood." If the average home in the area is $150,000, potential buyers aren't likely to pay $225,000 for yours if you've added a major addition. The house will seem overpriced even if it is more desirable than the surrounding homes.

Speaking of a new addition

If you need an addition to improve your life in the home, then go ahead with the project. If you're only doing it to increase the value at the time of the sale, you'll never recoup the investment. Buyers are unlikely to increase their offer to cover the amount that you paid for the major renovation.

High-end upgrades

Remodeling the kitchen and bathrooms will add to the value of your home and the expense and effort of doing so are worth the investment. However, many prosepective home sellers make the mistake of overdoing it by installing new stainless steel appliances, imported ceramic tiles, or state-of-the-art electronics in the media room.

New carpeting

Removing the carpet and restoring wood floors to like new condition is usually a more profitable investment than putting in wall-to-wall carpeting. It may clash with the new owners' tastes and furniture. It's expensive and you're unlikely to recover your investment.

Green improvements

While making your home more environmentally friendly is a good thing, prospective buyers will not care that you've made the improvements unless they find eco-friendly homes as important as you do. You're better off sinking any investments on green renovations into your new home.

Invisible improvements

Invisible improvements are usually costly and usually expected to be up to snuff by any new owner. (Think plumbing, HVAC.) A buyer is unlikely to pay extra just because you did this type of project.

Upscale landscaping

A lush, green lawn with nice landscaping is one thing; shaped bushes and ornate trellises are another. It's best to keep it simple with native plants, adding a little color so the new homeowners can see how good the yard can be by adding plants and bushes that fit their tastes.

Driveway expansion

A common mistake made by homeowners is tearing up the front lawn to make room for another automobile. Not only is it expensive, it actually detracts from your home's aesthetic.

If you're considering a renovation and plan to stay for several years to enjoy it, that's one thing. Making home improvements to increase the likelihood that it will increase the value of your home is another. You're unlikely to recoup your investment and could actually hurt your home's value to a prospective buyer.

Enrich your garden and landscape soil by making leaf mold

Building soil is important to any home gardener. One of the best ways to build soil is by creating leaf mold, which is a type of compost that uses only leaves and nothing else.

Different from composting, making leaf mold is a cold process, done primarily by fungus while composting relies on bacteria for decomposition. With composting, you'd add green material (grass clippings, manure, kitchen scraps, etc.) In addition to adding different nutrients, it also adds heat.

This process recreates the environment of the forest floor in a small space and results in a nutrient and mineral rich soil additive you can use in a number of ways.

How to make leaf mold

The other way this process differs from compost is that you can just throw the leaves in and leave them alone. You don't have to mix or turn the compost periodically to promote decomposition.

The first thing you'll need to do is build a wire mesh bin to hold the leaves. Put the leaves in and soak them. You can shred the leaves in order to accerlerate the process. Moisture is important to helping the leaves break down. If the bin is too dry, you can cover with a tarp to retain moisture. You can also weave slats from old window blinds into the mesh or line it with sheet plastic to help retain the moisture. If you live in a cooler climate, the process can take as long as three years. In warmer climates, it can take as little as nine months.

Over the course of a year, your leaf pile will have lost about half of its volume. Open the bin and give the leaves a stir to get some aeration. Move the bin over and start the process again. By the third year, the first pile that you created should be broken down, black and crumbly. It should smell like you're walking in the woods after a rainstorm. It's now ready for use and you can start a new pile on that spot.

Another method is to just store your leaves in lawn bags. Stuff the bags full of leaves and wet them down before closing the bag. Use a garden fork to poke a number of holes in the bags to let some air in. Mark the bags and put them in some out-of-the-way nook of the yard.

Leaf mold is not only organic and environmentally friendly, it is also one of the most effective ways to create the nutrient-rich soil essential for growing vegetables, flowers and shrubs.

Government Shutdown Risks Hurting The Housing Recovery

From: http://www.forbes.com/sites/morganbrennan/2013/10/01/heres-how-the-government-shutdown-will-affect-housing/

By:  Morgan Brennan, Forbes Staff

The government shutdown is here. Whether it’s not being able to get a new Social Security card or visit a national park, Americans will immediately feel the effects. But there’s one bright spot of the economy that stands to be affected as well: housing.

One of the biggest questions regarding the shutdown and how it will affect housing has revolved around the mortgage market, specifically prospective buyers’ access to new home loans. After all, more than 90% of all loan activity is underwritten, insured, or owned by the government and its affiliated entities.

Initially at least, the mortgage market is likely to be only minimally impacted. New loans will continue to push through most government agency pipelines. What will change is how long the process takes, as many agencies expect to experience delays.

Mortgages purchased and securitized by Fannie Mae and Freddie Mac will be unaffected because their operations are paid for by fees charged to lenders. And the Department of Veterans Affairs will continue to guarantee mortgages for Americans that have served in the military since these loans are funded by user fees as well.

But if the government shutdown of 1995-1996 is any indicator, the process will take longer than usual. “Loan Guaranty certificates of eligibility and certificates of reasonable value were delayed,” the VA warned in its September 25th contingency plan.

Where there has been mounting concern is the Federal Housing Administration, which currently endorses about 15% of the entire single-family mortgage market. Several media outlets recently reported that the FHA would be unable to endorse any single-family loans and that no staff would be available underwrite and approve new loans.

That prospect would be somewhat worrisome – if it were actually true. The FHA’s Office of Single Family Housing will indeed remain open for business, albeit with a smaller staff. “FHA will be able to endorse single family loans during the shutdown. A limited number of FHA staff will be available to underwrite and approve new loans,” the report now states. In other words, other lenders’ loans will continue to be insured and some in-house lending will continue to take place at a reduced rate.

The reason for that mix-up: the initial draft of the U.S. Department of Housing and Urban Development’s contingency plan mistakenly stated that single-family loan operations would cease. The report was amended over the weekend.

The FHA’s single-family loan operations are funded through multi-year appropriations, meaning their budget is not tied to the government’s standoff over funding for the new fiscal year that starts in October. On the other hand, what will be more affected is the agency’s Multifamily Housing Office, which is funded through yearly appropriations.

“Because we are able to endorse loans, we don’t expect the impact on the housing market to be significant, as long as the shutdown is brief,” continues the HUD report. “If the shutdown lasts and our commitment authority runs out, we do expect that potential homeowners will be impacted, as well as home sellers and the entire housing market.”

One government lender that will indeed suspend its home loan activity, however, is the Department of Agriculture. The USDA says that no new housing loans or guarantees will be issued through its Rural Development programs in a shutdown. The department also warns that such a scenario could cause “a setback in construction start-up,” and if the shutdown lasts for an extended period, “a substantial reduction in housing available in rural areas relative to population.”

“The government doesn’t generally approve loans, they basically just insure them,” says Don Frommeyer, president of the National Association of Mortgage Brokers and a vice president at Amtrust Mortgage Funding. “For the most part you aren’t going to see much of a hit in the mortgage market unless it goes for a long period of time.”

If it does stretch on, he adds, the worry will be what mortgage rates do in a market shrouded in fiscal uncertainty and how that will affect the home buying, especially in light of recent rate spikes.

Home lending aside, many economists and real estate experts are keeping a close watch on how Americans will react to this shutdown. “Administratively everything should keep moving along, but it’s more about the confidence of consumers and whether they perceive that the government shutdown could lead to a recession,” says Lawrence Yun, chief economist at the National Association of Realtors.

Moody’s Analytics chief economist Mark Zandi recently told the Senate Budget Committee that a partial shutdown could shave as much as 1.4 percentage points off of fourth quarter economic growth if it drags on for several weeks.

Americans’ confidence in their ability to buy and sell homes hit a record high in May, according to a Fannie Mae survey. Since then, as mortgage rates jumped more than a percentage point, that confidence level has plateaued.  If prospective homebuyers fear that the country’s economic recovery will stall, or worse slip back into recession, they will pull back on purchases, worries Yun.

“Home sales is always the first housing variable that changes so one would see sales declining and that would naturally lead to more inventory on the market and eventually put pressure on prices,” he says. But that would be a worst-case scenario based on a long-term shutdown.

Jed Kolko, chief economist at Trulia TRLA +6.43%, notes that if the shutdown lasts longer than a few days, the first places to feel the impact will be local economies with large concentrations of federal government workers. Metro areas like Washington, D.C. and Bethesda, Md., where 19% and 13% respectively of total local wages go to federal employees, would be the feel the negative effects of unpaid furloughs and with them, tightened consumer spending and weakening local economic growth. Though not all will be equally affected, other metro areas like Virginia Beach, Va., Honolulu, Hawaii, and Dayton, Ohio are areas that Kolko is keeping an eye on: “Whether there is a big effect depends on how long the shutdown lasts, how long people think the shutdown lasts, and whether people get back-pay. All those things matter for the impact.”

Still others are worrying even more about the next fiscal standoff, in  mid-October, surrounding the debt ceiling debate and its accompanying threat of debt default by the U.S.  ”With the threat of an impending partial government shutdown and yet another battle over the nation’s debt ceiling, in particular, we are really messing with fire right now—even if it doesn’t seem to bother some legislators,” says Stan Humphries, chief economist at Zillow.

“But the effects of a government default associated with the impending debt-ceiling deadline would be more pronounced because of its greater impact on domestic and international markets. This will rattle consumers and investors alike, slow down the overall economic recovery and further slow the housing recovery, which is already undergoing a moderation in the pace of home value gains due to rising mortgage rates,” he warns.

Six warning signs of termite damage

Termites can cause a significant amount of damage to your biggest asset - your home. Damage can be minor to major, up to and including structural damage. Because the damage can be so extensive, it's important that you know what to look for in order to avoid the high cost of repairing the damage that termites can cause.

Swarmers

Termite colonies have different categories of workers, similar to ants. If you've got termites, the first thing you may notice is the swarmers. They look a little like winged ants with a thick middle and straight antennae. Swarmers have left their colony looking to start their own.

Discarded wings

The problem with swarmers is that you may see a couple of individuals but not see the swarm. When they find a place to mate and start colonies, their wings fall off. The places to look for wings are where they are likely to congregate - in spider webs and corners of window sills, just to name a couple.

Wood damage

Wood damaged by termites sounds hollow when you knock on it. If you think it may be termite damaged, you might even be able to push your finger through the affected piece.

Cracked wood surfaces

Swarmers can enter wood through very small openings. Make sure to look for cracks in your home’s foundation, near roof siding, vents and windows. Make sure to seal any cracks.

Mud tubes

Termites build air-tight mud tubes out of soil and plant life to protect themselves from sunlight. Check the foundation of your home around joists and beams for mud tubes, which will be a brownish color and about a centimeter in diameter.

Frass

Frass is the droppings produced by drywood termites as they eat their way through infested wood.

Termites pose a serious threat to your biggest investment – your home. If you're considering selling your home, a positive termite inspection can cost you a sale.

If you spot any of the signs, call an exterminator immediately to analyze the extent of the damage. A termite specialist will recommend a customized treatment and prevention plan, which may include liquid repellants, wood treatments, baits and fumigation of the entire structure. It is absolutely essential that you not let a colony become established in your home.