Heating Your Home This Winter

It's getting chilly, but it isn't quite cold yet. Now is a good time to take a look at your heating system. You want to make sure it is in good working order so that you are ready when the temperatures really drop.

Check your filter
You should look at your furnace filter every month. When this filter is dirty, your heating system works overtime to heat your home and this wastes energy.

Get a system check
Have a professional go over your heating system and clean it as needed. If you make an appointment now, you can beat the rush.

Don't use the stove for heat
Some people figure that a stove heats up and use it as a source for heat, but this is dangerous.

Keep a well-kept fireplace
Use the proper kindling and get a fireplace screen to protect yourself from sparks.

Be careful with space heaters
Don't leave a space heater running when you leave a room or when you go to sleep. Also, keep space heaters away from flammable objects. If possible, buy a space heater that shuts off automatically.

Painting Your Home's Exterior

Painting the outside of your home is just like painting a room on the inside...except that is costs a lot more and if you don't get it right, there may be more at stake.

OK, maybe that makes it sound more daunting than it really is. Let’s just say that when choosing a color for the outside of a house, homeowners need to take their time. You would try a bit on an inside room, so do the same for the outside. Rather than invest money in lots of paint based on how it looked in the store, try it out. Find an inconspicuous section of the house and give it a little paint with the color you think you want.

Here are some other tips:

Think about a darker version of the shade you want. When spread over a large surface, paint may look lighter.

Look at color samples outside. The fluorescent lighting in a store is different from natural sunlight.

Do keep up with the Joneses. Yes, your neighbors could all paint their houses pink tomorrow, but they probably won't. You don't have to match them, but you do want to be congruous with the properties nearby.

Borrowing on Your Home's Equity, pt. 2

Earlier this week, we looked at a few of the similarities and differences between a home equity line of credit (HELOC) and a home equity loan (HEL). Now let's look at how you choose between them.

Because a HELOC is a "there when you need it" kind of loan, conventional wisdom says you should go for this type of loan when you think you will use it on a continual basis. For example, if you are starting a business, paying college tuition or have ongoing medical bills, you probably will want the more open-ended HELOC

With the HEL, you have more restrictions and must pay it off within a certain span of time, so most people prefer to take out an HEL for a major expense like buying a car or another property. A HEL works to help when you need a one-time influx of money.

The important thing to keep in mind is that both HELOCs and HELs use your home as collateral. So no matter which you choose, you want to be certain that you will not put your home in jeopardy.

Borrowing on your Home's Equity, pt. 1

Although some say that a home equity line of credit (sometimes called an HELOC) and a home equity loan (referred to as an HEL) are two ways of saying "second mortgage," you should know that these two finance options are not the same.

With a home equity line of credit, you essentially get a specified amount of funds that you can draw upon when you feel the need arises. You have to make a minimum monthly payment and can usually pay off as much of it as you would like.

In contrast, a home equity line, comes with a few more restrictions. You still get the specified sum of money, but you also have a specified monthly payment and you have a specified amount of time to pay it off.

Both HELOCs and HELs tend to have lower interest rates than credit cards or loans from a bank and both options use your home as security. And in some cases, you are allowed to deduce the interest you pay on HELOCs and HELs. Even though the interest rates are lower than actual credit cards, they are higher than the interest rate you paid on your original mortgage.

A Garden on the Side

If you have a side yard that you are not making use of, you should know that it is never too late. You don’t need acres to garden and you can do wonders with a small space. Doing the best you can to maintain and beautify your property means it will be a restful place for you to return home to and that it will have plenty of appeal when the time comes for you to sell it.

Here are three tips for making the most of a side yard:

1. Stick to a few colors. If you overstuff a small space with too many colors, it will be overwhelming. Stick to a limited color scheme.

2. Keep things trimmed. Since a side yard is small, you don't want overgrown plants to take over. This is especially true if these plants spill over onto a path.

3. Garden on a curve. If your side yard lends itself to a straight path, why not engineer it to curve a little? This will add interest and the garden won't seem as constricted.

Home Selling Sleepovers?

When buyers have more leverage, they can make more requests, and this is just something that sellers have to deal with when they want to sell a property? But just how far are you willing to go?

One trend that we've seen increasing over the past year and a half or so, is the 'sleepover.' This is when a seller allows a prospective buyer to stay the night in their home so the buyer can 'get to know the house better.' This has even been incorporated into television reality shows that depict would-be buyers sleeping over and spending a great deal more time in a house than they would normally do.

Both sides are hoping for a perfect match, but it seems like the seller has more to lose in this deal. What if a prospective buyer somehow damages the property?

Experts say that clearly, this is not a selling tactic if you are still living in the home when you put it on the market. You may consider allowing a sleepover if you are an absentee owner.

For the buyer, there is the hope that spending the night in a strange house will help it become more familiar. Some sellers who tried this technique have found that is is price and not familiarity that makes a difference after hopefuls who slept over still did not make an offer.

The Government's Takeover of Fannie Mae and Freddie Mac

The government's takeover of Fannie Mae and Freddie Mac has been all over the news lately. Some have applauded it; others have been against it. You are probably interested in how all of this will affect you.

Here are a few facts:

Fannie Mae and Freddie Mac did not make subprime loans.
These two companies did not get involved in making loans directly to consumers. What they did was buy securities connected to some rather shaky home loans.

The government bailout of Fannie Mae and Freddie Mac is about stabilizing the housing market.
While the government has stepped in to help out these two organizations, this does not mean that you will receive personal assistance with your mortgage. Some homeowners mistakenly think that they will be able to get a check from the government or from one of these companies. This is simply not the case.

The takeover could be good news for some sellers.
Right now, mortgage interest rates are getting lower. This may persuade some reluctant would-be buyers to go ahead and take the plunge.

The Maryland Home Show is Back!

The Suburban Maryland Home Show is back again this fall. The Home Show will be making stops in two different locations in our area this fall.

You can catch it in Germantown this coming weekend, September 12, 13, and 14 at the Discovery Sports Center at the Maryland SoccerPlex. Tickets for adults are $9 and children younger than 16 can enter for free. So why not go and make a day of it?

These events are both practical and fun. You get inspired by all of the great stuff you see and you can glean advice from exhibitors.

If you go an get inspired to put the ideas you see to work in a new home, you can click on the title of this post to see some of our great listings.

And if you are not in the Germantown area, then you have plenty of time to make plans to go to the home show when it returns to Upper Marlboro next month. Then it will be here October 24, 25, and 26 at the Show Place Arena.

Go to the Maryland Home Show website for more details.

Take Advantage of Temporary Loan Limit

How many times have you heard something advertised as being available for "a limited time only?" Depending on what it was you either made immediate plans to get the item or just yawned and ignored the ad as another money-grabbing gimmick.

The FHA (Federal Housing Administration) has a limited-time only offer on the table and you may want to consider taking advantage of it while you can. The FHA raised loan limits to $729,750 for people who live in areas like Washington DC, where the cost of living is rather high. But this high loan rate will only be available until the end of this year. Once the clock strikes midnight and Dec. 31 becomes Jan. 1, the coach becomes a pumpkin, the dress becomes rags and the loan limit will be lowered to $625, 500.

For the latest information on the housing market in your neighborhood, call veteran realtor John Day. John can help you find your dream home or sell your house in Maryland or the metro Washington DC area; just click the post title to view homes selling in your area. Whether you're buying or selling a home, John Day is your key to success.

Four Simple Ways to Cut Energy Costs

What you have paid this year to cool your home and what you will pay over the winter to heat your home is likely more than what you paid last year. Some of us will see these costs rise quite high--maybe even 30% above what we are used to seeing.

Pennies in energy savings here and there add up to dollars over time. Here are four simple things that you can do to reduce your energy costs.

1. While it is still hot outside, close the curtains on the sunny side of your home. This will lower your cooling costs less heat will get through.

2. Keep your air conditioning unit and the area around it clean. Clear away debris and clip any plant life that threatens to obstruct airflow.

3. Unplug appliances that you are not using. The "convenience" of having a toaster plugged in so anyone can pop toast in at any time is not worth the added expense.

4. Use compact fluorescent light bulbs rather than incandescent ones. CFL bulbs use a lot less energy and last a lot longer.

Early Fall Home Maintenance

Fall isn't officially here yet, but you can still do things to prepare your home for winter. The days will be getting shorter and it is already cooler (at least when you wake up).

Here are some tips for early fall home maintenance:

Check your storm windows
-Clean and repair your storm windows in anticipation of possible severe weather.

Check your insulation
-Have some installed before you need it and you'll save on energy costs.

Check the gutters
-Make sure your gutters are in the clear before the leaves and precipitation start to fall.

Check your firewood supply
-If you use wood for a fireplace or woodstove you don't have to wait until it is freezing outside to stock up. Just be sure to store it away from the house to avoid the insects in may attract.

Check out the condition of your roof
-You can do any necessary patchwork now before cold weather and precipitation set in.

Check your chimney
-You'll want to make sure that no animals have chosen your house as their winter getaway.

Down Payment Assistance Loophole Closes Oct. 1

Many hopeful homeowners have been helped a loophole in a federal law that allowed them to get down payment assistance from the seller through a non-profit organization. The ability to get down payment assistance this way will no longer be possible after October 1, 2008.

Since the news hit that this loophole would soon be closed, some sellers and non-profits that have helped homeowners have done a lot to get the word out. If you thought to use this type of program to purchase a home you have on more month to do so before a ban is enacted. Builders are aggressively marketing homes with down-payment assistance because they really want sell homes.

If you know that you don't have money for a down payment, but feel you are in financial shape to buy a home and keep up with payments, consider trying to take advantage of this before October rolls around.

The closing of this loophole does not mean that prospective home buyers have no alternatives for down payment help. What you cannot do is get the down payment as a gift from the seller through a non-profit. There are still, many programs that offer down payment assistance. Some programs ask that the buyer repay all or some of that money. Others require that the potential homebuyer attend classes on home finance.

You can learn more about approved down payment assistance programs at the HUD website.

Pedal Power

If you see people pedaling around your neighborhood and they stop to look in on a house that is for sale, this may be a real estate agent with a prospective buyer.

Just as more and more people are thinking about biking to work, some real estate agents are finding that they can do more to impress clients with a ride-around on a bike than in a car.

Touring neighborhoods and looking at available homes this way is more environmentally friendly. It also gives a would-be home buyer the opportunity to test out a neighborhood on a bike. If that is to be their primary method of transportation, they will need to get a feel for just how bike-friendly their prospective neighborhood really is. For home buyers who plan to bike to work and other activities, it makes sense to get an idea of what they will face on their commute from their new home. One expert advises biking home buyers to stay away from cul-de-sacs and other street patterns that would force them to stop often.

Offering to show houses on bicycles is just one more innovative way that real estate agents work hard to help sellers sell homes and get buyers into the homes they really want.

HAPPY LABOR DAY!