You may save money in the long run

By Phoebe Chongchua

Looking for a new home can be exciting and frustrating. You can help alleviate the frustration by paying close attention to five key areas of the homes you’re considering buying; it may save you money in the long run.

Don Walker is an inspector and owner of Ace Home Inspections. He says there are five areas in homes that he frequently reports problems with. They are electrical, foundation, plumbing, the attic, and landscaping.

Electrical
Walker says sometimes homeowners assume with newer homes that all will work just fine but that’s often not the case. "I [inspected] a brand new house — four years old but the electrical was all done incorrectly," says Walker.

Having a complete home inspection will help to rule out any problems and point out any areas of concern. However, even as you’re browsing homes, buyers can start to make note of the key areas that Walker mentioned, such as the foundation.

Foundation
Walker says a four-year-old home he inspected recently was already showing trouble signs which could result in a costly repair project. "It was a model home. What [the homeowners] did was plant trees for shade to make it look really nice, but they planted the wrong trees and they’re going to crack the foundation and it’s going to cut the property value down by $50,000," says Walker.

Walker says in the case of that home, the trees were causing micro-fractures in the tile in various locations of the home. "As you walk through the house, 21 feet in and 30 feet deep, there’s just too much root invasion and it’s going to ruin their tile," explains Walker.

He says some tell-tale signs with this home were the minor cracks in the foundation that were causing a lifting and separation of the foundation. Also, the windows were not opening and closing properly, "which means the foundation is moving."

However, just because you see cracks doesn’t mean there is a foundation problem. "Most people don’t understand that there are natural cracks in a house. That’s why when we do an inspection report we have to look at it and say ‘Okay, this is a typical crack and this one is an untypical crack,’" says Walker. He says some cracks may lead to other problems while others won’t.

Plumbing
Walker says another big area of concern is the plumbing. It’s an area that you can’t always spot as easily but it can create expensive repairs if plumbing issues go either undetected or are not properly fixed. "Mold forms underneath sinks when people have a leak and they fix the pipe but they don’t take care of the mold," says Walker.

He says things like caulking the sink can help prevent mold. "That’s my number one thing I always find — bad sinks," says Walker.

He says that when you look at the sink, look behind it and most of the time you will discover a little crack. "What happens is, when you wash dishes or you wash your hands in the bathroom or the kitchen, the water gets in that crack and seeps down. Once the water gets behind the cabinet it’s in a perfect position to create mold," says Walker. The dampness, humidity, and lack of light can turn that area beneath the sink into a mold-breeding ground.

Attic

"You can tell everything about the house by the attic," says Walker. He says other areas of the home can be covered up if a repair had occurred. For instance, if there was a leak and it damaged a wall, with the right contractors and repairs it can be made to look like new and, hopefully, function like new. But Walker says the attic is sort of the eyes to the soul of the home. "In the attic you can tell where all the damage has been," says Walker.

"If you’re in a 20-year-old house and you see that the insulation is brand new, you know that there was a water leak because it had to be replaced," says Walker. He adds, "You can tell if the roof is good because you can look right at the wood."

Landscaping
"There should not be moisture or plants next to your house," says Walker. He says there should be a 12 inch barrier between the landscape and the house. Walker says otherwise you run the risk of having the foundation crack and affect the home. What happens is, as the landscape that is too close to the home is watered, the foundation and soil expand. Then, when no watering occurs, the foundation dries up and shrinks and this can cause it to crack.

Remember, knowledge is power, so learning about the home before you close the deal on it will keep you from making a mistake that may cost you extra out-of-pocket money later.

This selling season is predicted to be the most vibrant in years. Make sure you get the best price for your home without burying yourself in expenses.

By Luke Mullins of U.S. News & World Report

As the temperature drops and the snow piles up, it’s easy to forget that spring is quickly approaching. After more than three years of a painful housing swoon, real-estate experts predict that lower prices, attractive mortgage rates and a tax perk from Uncle Sam will create the most vibrant spring home-selling season in some time. "This is going to be probably the most pleasant experience for a home seller in the last four or five years," says Mike Larson of Weiss Research. "If you have been beating your head against a wall, this is going to feel a lot better." But even if the market does perk up, buyers are likely to retain the upper hand throughout 2010. So to help property owners get the best selling price they can — without burying themselves in expenses — U.S. News has created a list of 10 cheap ways to boost a home’s sales price by spring:

1. Retouch the front shell: If your property’s exterior isn’t appealing, no one will want to see your newly remodeled kitchen. Property sellers must first ensure that their home projects a cozy, inviting feeling. "The shell — the outside front — is probably the most important area for improvement, the area where you can make the biggest improvement with the smallest amount of cash," says Pat Lashinsky, president and CEO of ZipRealty. Touching up the paint on the front-entry portion of the house can be an inexpensive but effective way to make the entire property more inviting. "Really focus on that outside, external shell," Lashinsky says. "You would be amazed by the amount of people that drive by a house and say, ‘Ah, that’s not for me.’ And they can tell just by the way the upkeep and the outside looks."

2. Trim the greenery: Ensuring that the lawn, hedges and flowers are well-maintained helps make your home more alluring to prospective buyers. Property owners can hire professional landscapers or break out the lawn mower and get busy themselves. "Many people have landscaping that is overgrown and too heavy, and it is concealing a lot of the house," says Paul Zuch, the president of Capital Improvements. "Trim the trees, trim the hedges … (and) add a little color to the flower beds."

3. Paint the interior: Putting a fresh coat of paint on the home’s interior is a cost-effective way to make a home more appealing to buyers, says Ron Phipps, a broker with Phipps Realty in Warwick, R.I. When choosing the color, homeowners should be conservative. "The caution is that your favorite color may not be the favorite color of the buyer." Instead, homeowners are best off using neutral colors, Phipps says. "Go with something that is a very light yellow or a light cream with a contrasting white, so it just looks very fresh and crisp. … Having the paint in good condition is almost more important than the color."

4. Don’t forget the floors: Improving the condition of a home’s flooring is also a smart move for sellers — and you don’t need to refinish wood floors or install new carpets to make them more attractive. "If it’s a hardwood (floor), has the floor been buffed?" says David Lupberger, a home improvement expert with ServiceMagic.com. "If you have carpets, have the carpets been cleaned?"

5. Make all major repairs: Because tighter lending standards demand higher down payments, today’s homebuyers won’t have much cash left for improvements once they’ve made their purchase. So it’s imperative for sellers to make all major home repairs — fixing the leaky roof, rebuilding the front stoop — before they put the property on the market. "Repairs can’t be ignored, because nobody has any extra money," Phipps says. To determine what needs to be done, property owners can scrutinize their homes themselves or bring in a home inspector to examine the property professionally. "The home inspection piece, I think, is something that is a huge value, particularly if there is something that is a question," Phipps says.

6. Put appliances under warranty: To give buyers more confidence in a home’s appliances, Phipps recommends that sellers put them under warranty. Sellers can buy home warranties, which cover repair and replacement costs for many home appliances, from several different companies. "If I have got a 40- or 50-year-old house, it is going to be harder for me to persuade a first-time homebuyer with a limited amount of cash to buy it because they will say, ‘Well, what happens if something breaks down?’" Phipps says. "If I have a home warranty … that solves that problem."

7. Make energy-efficient home improvements: Increasing your home’s energy efficiency is another good way to make your property more attractive to buyers. Many such improvements, such as new windows or better insulation, come with federal tax benefits. In addition, a growing awareness of human impact on the environment means that homes that have these upgrades will stand out from other listings. "If you have some cruddy old windows that are leaky and just not energy efficient, you can put in new replacement windows and take advantage of the tax credit," Zuch says. "It’s not greenwashing. Those are really practical things that make your house more sellable." Many contractors will conduct a so-called energy audit free of charge to determine where efficiencies can be created, Zuch says. "If your house is more energy efficient — you use less energy, it’s better insulated — it is going to be more desirable for a potential buyer," he says.

8. New light fixtures: Replacing old or broken light fixtures with new ones can also be a low-cost way to add value, Lupberger says. Installing a new light fixture in the foyer can be a particular benefit, he says, because it can make a strong first impression on would-be buyers. Creating an inviting feeling in the interior entryway helps get home shoppers more interested in checking out the rest of the property. "I am not going to redo the house," Lupberger says. "But I can update those features so that somebody can walk in and say, ‘You know what? (The homeowners) took care of this.’"

9. New stove: While some homeowners might think the only way to jazz up a dated kitchen is a full-on remodeling job, Lashinsky recommends a much less costly alternative: buying a new stove. "If there is an updated stove in the kitchen, it is amazing how that draws people in, and people say, ‘Wow, this kitchen is going to be great,’" Lashinsky says. While upscale homeowners may have to shell out for top-of-the-line appliances to maintain their kitchen’s décor, others can budget well under $1,000 for the upgrade. "You can get a really nice stove for $700 or $800," Lashinsky says. "You can basically have the look of a new kitchen that is going to be really enticing to someone — and what you are really trying to do is differentiate your house from somebody else’s."

Property owners in neighborhoods where most homes have granite countertops can consider making this upgrade as well. But Lupberger says the project makes sense only for homeowners with extremely dated kitchens that are going to serve as a serious impediment to finding a buyer. A real-estate agent with experience in the local market can help you determine whether the upgrade is essential, he says.

10. Freshen up the bathrooms: Getting rid of mildew stains on the bathroom caulking can boost a home’s appeal as well. Such stains "scream, ‘These people haven’t taken care of this house. It’s going to be a money pit,’" Zuch says. Use a razor blade to remove the old caulk, and replace it with new, mildew-resistant caulk, Zuch says. And rather than remodeling the entire space, homeowners can reinvigorate a worn-down bathroom by replacing cracked sinks, Lupberger says.