Window Condensation and Cold Weather

With the extremely cold weather we are having right now, many homeowners complain about wet or frosted over windows.  A little frost at the bottom of windows is to be expected – when that frost is very thick or covers a large part of the window, your windows are telling you that the house has too much humidity.  Outdoor www.erature and indoor humidity should be monitored to prevent both over and under humidification. Amazon.com has many hygrometers to choose from and you can find thermometers with humidity readings in most local stores too.

 As www.erates outside drop, it is important to adjust indoor humidity as well to limit condensation.  In small homes or homes with many people living, the house can easily become overhumidified and may require the constant use of bath fans and/or a window cracked open 24/7.  If excessive moisture is building on the windows, it could also be condensing inside the walls, in closets, etc.  That moisture buildup can create damage, both seen and unseen, over time.  I have been in “wet” houses before and can tell you that window damage can just be the start of the problem.  Often I find homes with moisture issues have whole house humidifiers that were set way too high for the conditions.

In larger homes or homes with few people living, the house can get extremely underhumidified due to the dryness caused by the furnace.  In those cases, instead of wet windows you get static electricity shocks and woodwork that shrinks due to the loss of moisture.  A whole house humidifiercan help keep your humidity up in a comfortable range – I suggest the ones that connect to a furnace duct and permanent water supply for ease of use.  Additionally, manufacturers such as Aprilaire are now offering humidifiers with automatic controls that adjust humidity based on outdoor www.erature automatically.

Below is the recommended humidity levels for different outdoor www.eratures:

Outside www.erature (0°F) Recommended relative humidity
+20° and above 35% to 40%
+10° 30%
25%
-10° 20%
-20° 15%

Traditional, Bank Owned and Short Sales – A Comparison

Most of my buyers are NOT housing experts… they are “regular people” and are experts in whatever field they work in but not in real estate.  That’s just fine because that’s why people like me have jobs doing what we do!  One of the most frequent topics that comes up is the differences between traditional sellers, short sales and bank owned (aka foreclosure or REO) homes.  Below you will find a summary of many of the big differences, which is also available in a PDF one-page format if you’d like to print it.

Traditional Seller

What is it?

Most often Traditional Sellers still occupy the home. The Seller is the home owner and they can afford to sell the property at the price listed in the MLS without approval by a 3rd party. Moving by CHOICE.

Condition of

Property

Usually home is maintained appropriately and may only need minor repairs/cosmetic updates. Utilities are current-water & heat have been kept on.

Disclosures &

Warranties

Seller is required by law to disclose defects in the property. Sellers will be able to educate Buyers on work done to the home & any prior problems/issues; frequency & how issue was resolved. Small claims court or arbitration are legal options Buyers may use to pursue Seller if they feel an issue was not properly disclosed.

City

Inspections

(if required)

Seller will have any city required inspections completed per city code. Often Seller will repair major items found on the inspection prior to listing or will negotiate with the Buyer on responsibility of those repairs. Traditional Sellers are typically the most practical and flexible when it comes to inspection issues.

PA

Response

Timeline

Listing agents can typically get an offer to a Seller & have their response back to the Buyer within hours or a day at most.

Financing

Options

Due to condition, most homes will meet FHA, VA & Conventional appraisal and underwriting guidelines.

Closing

Sellers and Buyers attend closing together and sign all paperwork. Often a bonding moment over the transfer of home to new owners.

After

Closing

Some Sellers & Buyers exchange contact information in case there is a question about how something works in the home. If the Buyer feels there is a problem with the property, they contact their agent who will contact the Sellers agent to try to resolve issue.

 

Short Sale

What is it?

Seller may or may not occupy property. They are facing a financial hardship (the house may or may not be in foreclosure) and have the home listed for sale at a price less than they can afford to accept.  They are asking their lender(s) to agree to take less than the amount owed on the home as payment in full so they can sell the home.

Condition of

Property

Homes are often in a state of disrepair due to inability to pay for required maintenance/repairs. Homes are often vacant and show signs of distress, wear & tear or lack of care. There are of course short sale properties in “mint condition” but these are the exception.

Disclosures &

Warranties

Seller is required to disclose defects in the property, however may require the Buyer sign an “As-is” Addendum due to the fact they may have vacated the home months ago & are unsure of changes in condition. Disputes after closing may be harder to resolve as seller may have little to no financial assets to seek for damages.

City

Inspections

(if required)

Seller likely does not have funds available to pay for city inspection, so many aren’t done until AFTER a Buyer has had their Purchase Agreement signed by the Bank (which could be months after offer was submitted). Sellers typically require Buyers assume responsibility for those issues & escrow 1.5x the cost of the repair at closing if required by Buyer’s lender or city code.

Purchase

Agreement

Response

Timeline

Listing agent needs to track down Seller, have them sign Purchase Agreement and then get it submitted to Seller’s mortgage company. Can be 3 weeks to 3 months before Seller’s mortgage company responds.

Financing

Options

Current condition may make FHA and VA mortgages harder to get due to tougher condition guidelines but many will still qualify. Conventional normally not a problem.

Closing

Seller will often presign required short sale package from lender & send power of attorney to closing. Closing docs will need to be submitted to mortgage company & deficiency must be signed off on by mortgage company. Sometimes Seller does attend closing.

After

Closing

Sellers are gone-occasionally a delinquent utility bill will surface. Home may still have debris remaining and/or may not have all of the personal property as agreed upon & sometimes appliances go “missing”.

 

Foreclosed/Bank Owned

What is it?

Vacant home. The prior home owner lost the home through the foreclosure process or gave the keys back to the back in what’s called a “deed in lieu”. Seller is now the bank who filed the foreclosure action. The price listed on the MLS is a price the seller will accept, though it may require additional approvals.

Condition of

Property

Vacant properties-remaining personal property & garbage has been removed. Home is left in last known condition & has been winterized to prevent pipes from freezing/water damage & mold, though some foreclosures are damaged prior to the bank’s possession.

Disclosures &

Warranties

No disclosures/property history available. Buyers must sign “As-is” Addendum as part of Purchase Agreement releasing Seller/Bank from liability on non-disclosed issues. Seller/Bank would have no known prior knowledge of defects since they have not lived in the home-many Banks have not ever seen the property they are selling.

City

Inspections

(if required)

City inspections usually completed as required by city code, however, Buyer is required to assume & escrow for the repairs. Many cities require Buyer to escrow 1.5x the cost of the item at closing.

Purchase

Agreement

Response

Timeline

Listing agents can get offers submitted to banks (during business hours) and Buyer usually gets a response within

24-72 hours.

Financing

Options

Some are in good condition but the majority have some issues that make FHA & VA financing difficult- each property must be evaluated separately.

Closing

Seller/Bank will presign all docs and send them to title company for closing. They will require the final HUD-1 settlement statement to be sent to them 72 hours prior to closing for review-sometimes the Seller takes extra hours or days to sign and closing is delayed.

After

Closing

Home is de-winterized, home may or may not have all of the personal property/appliances as seen at the home prior to closing. Seller’s “As-Is” addendum covers Seller/bank in the event something goes missing prior to closing.

 

Q&A: Is NOW the Right Time for Me to Buy a Home?

This is a very common question I get asked by prospective buyers given our current economic situation and the conflicting information they get from news, friends, family and coworkers.
Below is a list of questions to ask yourself as a guide to help you decide if now is a good time to buy for you.

1. How stable is my job/job field?

With the ever-changing economy as it is, you may want to gauge the stability of your current job/employer in addition to taking a look at how stable the job market is in your field.  If you’re going to make a long-term investment, you need to make sure you have a reasonable expectation of long-term financial stability.

2. Do I have 3+ months available cash reserves/liquid assets?

Having 3+ months cash reserves as a budget is a good safety net in case of emergency or unforeseen events-i.e. job loss, heath issues, family emergency.

3. Do I have the minimum down payment?

MOST loans require the buyer to have a minimum down payment of 3.5% of the purchase price of the home.  There are some exceptions, however, such as gift money from a family member and some special programs offered by cities and neighborhoods or governmental organizations. Check with a qualified lender as to the down payment required for your loan.

4. Will I be in this home for at least 4-5 years?

It is a good idea to look at how the home you want to buy will be able to meet your needs in the next few years i.e. will you outgrow your home due to life events (i.e. marriage and kids) or is there a chance that you will need to adjust location due to drive time to work, daycare, family or even relocate out of state?  In times like these where the housing market is much more volatile, the near-term direction of the housing market is uncertain and the costs to purchase and sell a home are substantial and so it doesn’t make sense to put that much money into a home if you’re expecting a move in the next few years.

5. Will I have the funds for all the costs of homeownership?

Owning a home includes more costs than just monthly mortgage payment. Many homeowners want to decorate and furnish their new home.  It is truly amazing how quickly little things add up.  Plus, there are the costs of monthly utilities, occasional repair/maintenance items which pop up, and of course, the costs of snow & lawn equipment or service!

6. When something breaks, who will fix it?

You are your own landlord now-are you, your friends or family handy? If not, you will need to hire a contractor or handy man to fix what breaks and to do any improvements.

7. What is my current living situation?

If you are renting, make sure you know what, if anything, it will cost you if you break a rental lease. Also, keep in mind your moving timeline if you are looking to buy a “short sale” property, it may be months before you get a response back from the bank regarding your offer, and there are no guarantees that offer will move forward.  Each situation is different and it is important to discuss your situation with your agent so that he/she can assist you in the transition.

8. How’s my credit?

There are interest rate penalties for buyer’s with lower credit scores and there may be some qualification hitches along the way.  In some cases it may be 3-9 MONTHS before you can get approved for a loan if you have problems on your credit report that need to be fixed.  It’s important to get pre-approved (not just pre-qualified) very early on in the process.

9. Can I find a home that fits my lifestyle?

Buying a new home=buying a lifestyle. If you aren’t around much, buying an association maintained property might work well for you, or depending on your level of activity, you way want to buy in an area where there are many walking/biking/running paths. Other lifestyle issues include: distance to school for kids, proximity to grocery stores, gas stations, shopping, work, etc.  It is important to make a list of your wants and needs to help you narrow down your search.

Q&A: Twin Cities Foreclosure Information

I often get questions on where to find information on foreclosure properties in the Minneapolis/St. Paul area.  Here are a few free resources that you can refer to:

Hennepin County Foreclosures

Dakota County Foreclosures

Search Foreclosures and Short Sales currently for sale

Unfortunately the other counties have not become user-friendly enough to post their sheriff sales onlines… I really wish they would.  I regularly reference Hennepin County’s data for myriad reasons and I’m sure I’m not the only one.  It’s public data… make it public!

There are other resources for foreclosure information (foreclosures.com, etc. but I have found their data quality to be far less than desired).



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TwinCitiesRealEstateBlog.com is not a Multiple Listing Service MLS, nor does it offer MLS access.
This website is a service of Aaron Dickinson of Edina Realty, a broker Participant of the Regional Multiple Listing Service of Minnesota, Inc.