Archive for August, 2008

How to Avoid Home Owner Scams

Everywhere homeowners are being the victims of fraud through home repair costs. A vast majority of these victims are seniors. The home building industry has joined forces with the police and seniors groups to help identify fraudulent practices and avoid dishonest contractors.

So how do you stop this type of illegal activity? Through consumer education and vigorous action by police and the courts. Unfortunately seniors are the most targeted because of their willingness to trust strangers who sound sincere. Long gone are the trusted “handshake” deals. The old adage still applies, that when it sounds too good to be true, it probably is.

There is a set pattern that most dishonest contractors seem to follow. And it usually goes this way.

A person claiming to represent a home repair contractor will suddenly appear at your door. Because they explain, they are working in the neighborhood and they noticed that your house is in need of repair. It could be anything from worn out shingles, old windows that need replacing, faulty bricks to driveway cracking. You then will be offered a “special discount” or a “seniors discount” because the contractor is in the area or has left over material from another job. But the catch is that in order to get this wonderful price, YOU HAVE TO ACT FAST!!

If you take the bait you will be asked to sign a contract, on the spot. Once signed you may also be asked to make a down payment towards the cost of the work. So what happens next? Well a number of things may happen.

Some people who hand over a substantial deposit find that the contractor “suddenly” disappears, never to be seen again. Or the work does get done but what you ended up paying is considerably higher than the normal market price. Or worse yet, he may start the job but not finish it. Costing you more money in the end to repair what he started.

Many police forces operate crime prevention programs aimed at helping seniors and other people to avoid getting scammed by this type of fraud.

So what type of contractors should you avoid? Well there are few warning signs to watch out for.

1. If they knock on your door offering you a special discount because they are in the neighborhood.

2. Promise you a discount if they can use your house to advertise their work. Everyone else in your neighborhood probably got the same offer.

3. Offer a lifetime warranty

4. Quote a price without seeing the job or do a free inspection of your home, then suggest you need major repairs.

5. Demand a large down payment in order to purchase supplies

6. Suggest that you do not need a written contract outlining what they will do or dissuade you from getting other estimates.`

7. If they object or cannot supply proof of insurance or Workplace Safety Certificates.

Yes it is very important to make sure that whoever you have working on your home that they are checked out carefully. Have a detailed signed contract that will ensure that the contractor is operating his business properly and have the contractor provide you with references.

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The Bright Side to the Slow Housing Market

Believe it or not, there may just be an upside to the slow housing market. There is a lot more bad news out there than good news, with record numbers of foreclosures, the largest inventory of homes for sale ever, and a mortgage industry that is increasingly stingy with loans. What could possibly be good when so many things are bad?

As only a pure optimists would, I have come up with a few things that may brighten up the dark void of the housing market. We know that new construction has slowed down considerably, and home prices are dropping due to the foreclosures. Can anyone make money in a market like this? Absolutely. The laws of investment tell us to buy low and sell high. If you have the opportunity and the means, now is the time to invest in property. Prices are at a low, inventory is high, and rates are at their lowest levels in years. If you can afford to sit on property for a little while, then the benefits in the future may far outweigh the cost.

This poses a problem for the middle class citizens though. Gas prices are at an all time high, the dollar is weakening, and expendable income is decreasing with rising fuel and food cost. If we can’t invest in a new home, what options do we have?

With interest rates as low as they are, it may be a smart option to try to refinance your existing mortgage. If you have equity, you can try for a cash-out refinance, and take your homes equity and pay off consumer debt such as credit cards, loans, and other monthly payments. You can also use these funds to make additions or improvements on your home to increase its value, such as finishing a basement, adding tile, updating fixtures, or remodeling bathrooms and kitchens. These will prove to be valuable investments when the market turns around, and you may find that you get your money back in equity faster than you think.

The ultimate goal is to find creative ways to make the best of the situation. It’s time to reverse the effects of spending more than we make. If the average consumer can use the low points of our economy to find ways to decrease debt, lower interest rates, or make good investments, then the long term results are more usable income for really stimulating the economy and investments in retirement accounts. The most important thing to keep in mind is economic discipline and planning ahead for the future.

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How to Hire a Real Estate Lawyer

Most people by now have heard of the benefits of using the professional services of a real estate agent, home inspector or mortgage broker in the real estate transaction process. However some buyers and sellers my not pay as much attention to choosing the real estate lawyer that will be representing them from the time they sign on the dotted line to the closing of the deal itself.

If you are a first time home buyer or seller, it is always a good idea to be safe with the paperwork and transaction. The safest way to make sure everything goes over smooth is to hire a real estate lawyer. They can handle a lot of the details for you and make sure that everything is taken care of properly. But do you know how to hire a real estate lawyer?

It is really a fairly simple process to hire a real estate lawyer. Before you do anything, it is always a good idea to talk with family, friends and neighbors for referrals. If you can get a good referral, you may be able to save yourself the hassle of searching for days for the right lawyer. But even after you get a referral, still make sure to research the lawyer before making any rash decisions.

The next place to look is with local real estate brokers. Real estate brokers are constantly associating with lawyers that deal with real estate. This is one of the many advantages you can get by hiring a real estate broker is the ability to find a quality lawyer. Therefore, talk to local brokers to see who they refer you to.

It is important that you understand you should keep all of your options open. The more referrals you can get the better. Then you can take the time to research and call all of the referrals you got to see who you think would be best for you.

Aside from getting referrals, you may also want to look in the yellow pages under Attorney: Real Estate. This will give you a list of local real estate lawyers you can call and talk with. It can be a bit tedious looking in the yellow pages and calling up random numbers, but it is worth the time to find the right lawyer.

The next step toward how to hire a real estate lawyer is to prepare a list of questions that pertain to your situation. Typically, simple questions lawyers will answer over the phone allowing you to get a general idea of whether or not it is the right lawyer for you.

The last step before hiring a real estate lawyer is to ask how much each charge per hour and request a general time frame of how long it will take to complete the tasks you require. This should include looking over contracts, handling disclosures and helping with the closing. After you have done all of this, choose the lawyer you feel will be best for your situation.

Mary Anne Murphy is a real estate expert with a firm knowledge about real estate listings Whitby and information about the local real estate market for both buyers and sellers.