homeowners

Time to Winterize Your Home!

Yes, it's that time of year again when your friendly neighborhood realtors remind you to make sure your home is properly winterized. Although we haven't yet seen snow in the Northampton area, history suggests we can count on it's arrival at some point in the not-too-distant future. It makes sense to have your ducks in a row before the first big snow storm and low temperatures descend upon us. To that end, I include the following article from the Realtor Association of the Pioneer Valley website. It provides a thorough laundry list of how to prepare your home for winter.

Avoid Costly Repairs With These Winter Maintenance Must-Dos

Failure to prepare your home for the upcoming winter months can have dire consequences on your wallet, as well as pose a safety hazard for others. Even those in warmer climates will want to be careful this time of year: Everyone can benefit from an annual maintenance tune-up, and even in the South a winter frost can come as a nasty surprise.

Fortunately, there are some relatively easy preventative measures you can implement in the fall months to help ensure a smooth winter. The list below provides a few of the low-cost measures you can take now that will save you from the hassles of repairs and from the cost of winter issues.

Winterize pipes and outdoor spigots. As the temperatures start to dip below freezing, any water that is exposed to the lower temperatures will freeze. When water freezes, it expands; water left in a hose has nowhere to expand to. The copper piping that feeds the water to the hose will eventually split because of this expansion.

 

The easy fix here is to remove all the hoses and make sure that there is no water left in them. Also, for more protection, you can place a foam box over the spigot.

Additionally, if you live in a place where the temperatures drop dramatically or stay cold for an extended period of time, you need to make sure the pipes inside the home are protected. This is very important if your home has a crawl space underneath the house with exposed pipes. Simple and inexpensive foam pipe covers can accomplish this.

Clean roof gutters. If your home has gutters you need to make sure that you inspect how they are attached to the roof and that they are clear of debris. You want to make sure no dams or clogs are created. The best time to check is after all the fall leaves have dropped and then again during the spring thaw. Cleaning the drains will help ensure that the drains do not get ripped off from the roof and that water will not back up, which can cause a leaky roof.

Remove foliage and potential tree hazards. Trees and foliage provide great shade for your home in the summer and help keep the heat at bay. However, you want to make sure that you do not have branches and other foliage over your roof or potentially covering electric lines, cable, gas or any other cables you may have running to your home. It is easiest to trim back or remove any potential problems in the fall. Snow on branches can weigh them down and potentially cause utility problems or even roof damage.

Inspect your furnace. Winter typically requires the use of a heater. Schedule an inspection of your furnace to make sure it is venting properly and will not be obstructed by winter weather. Check and/or replace your carbon monoxide alarms, which is a low-cost fix that may just save your life.

Dryer exhaust.  Much like your furnace, inspect your dryer vent. Make sure no lint is backing up the exhaust and that winter weather will not cause any issues. A backed-up exhaust can lead to house fires.

These few safety precautions will help ensure that the winter months pass safely and that your home is protected. Take a few minutes and make your home as safe as possible for you and your family.

Thinking About Buying vs. Renting?

The decision to buy a home is not one that is taken lightly by most. It is among the largest purchases (if not THE largest) one will make in their lifetime. Not everyone is in a position to buy vs rent. For this reason, as realtors in the Northampton area, we always suggest that a potential buyer start the process by speaking with their local bank or a mortgage broker to determine whether they can afford to buy and, if so, what purchase price is within their range.

To me, real estate has always made sense as a place to invest money. It seems less fickle than the stock market, and you have the added benefit of being able to live in and enjoy your home, while (hopefully) building equity. While the following piece from the Daily Hampshire Gazette uses the San Diego real estate market to make it's point about the benefits of home ownership - it is still a salient one. If you are in position to be able to buy a home vs. rent, it is an investment worth making. It's always a good idea to work with a knowledgeable buyer agent when purchasing a home. In this way, you are more likely to negotiate a fair price, and choose a home that has solid resale value. Read on for more about buying vs. renting.

Buy vs. rent: Can you afford to wait?

Buying a home is probably the biggest financial decision most of us will make. Dreamtime


By San Diego Tribune Staff
Thursday, November 09, 2017

Buying a home is probably the biggest financial decision most of us will make. While many variables factor into that decision, one key element is whether it makes more financial sense to buy a home rather than renting one.

According to industry experts, it depends on how long you plan on staying in a home.

“Given certain parameters, I can tell you that if you intend to be in a home for three to five years, it is almost always better to buy,” noted Matt Brady, a loan officer at Skyline Home Loans.

That’s because even though there is sizeable upfront expenditure when buying a home, you’ll be seeing the benefits after a few years.

Principal reduction is the amount paid on the cost of the home itself and not the interest. The idea is that by the time you plan on selling the home, you’ll have paid some of the cost of the house and will get more for it than you paid for, resulting in spending less over time than you would have renting a similar place.

Although home prices are high in San Diego — the median price is $535,000 for a home, $400,000 for a condo and $623,750 for new construction — area rent is also high and increasing. The median rent for a one-bedroom is currently $1,560; for a two-bedroom, it’s $2,020, according to the latest figures released by Apartment List, a national rental marketplace. That’s a 4.6 percent increase over last year.

Brady calculates the financial benefits of owning a home this way:

According to the National Association of Realtors, most people own a home for approximately nine years before selling. If a renter initially pays $2,200 for a two-bedroom home, after nine years, the rent will have increased to $3,000 at a 4 percent increase per year.

While the renter will have paid around $40,000 less in rent over those nine years than a buyer who purchased a $400,000 home, the owner’s home will have appreciated by about $200,000 in those nine years, Brady said. (And while no one can predict the future, most analysts assume that home prices will continue to rise and that San Diego will stay apace with the national average of a 4 percent annual increase).

The homeowner also will have paid down the mortgage by about $73,000 and had the added tax benefits of owning a home, which according to Brady would be about $40,000. In nine years, a buyer is ahead more than $225,000 from someone continuing to rent.

“The bottom line is unless you can rent the $400,000 house for $1,500, it makes much more sense to purchase it,” Brady said.

Buying a home is not for everyone. Renting is often less stressful and more flexible. But if you’re ready to settle into one place for a while, go over the numbers to see what works best for you.

___

 

 

 

The Benefits of Adding Solar Power to Your Home

In our development in Florence, MA, just 2.5 miles from downtown Northampton, MA, it seems that solar panels are going up on yet another neighbor's home on a weekly basis. We started the process of interviewing local solar providers last year, but had to put the project on hold for a variety of reasons. Now we are ready to open this can of worms once again. Luckily, our neighbors have done a lot of research, which they are happy to share. The following article from Apartment Therapy does a nice job of explaining the costs and benefits associated with installing solar panels on ones' home. The good news is that buyers do seem to be willing to pay more for solar power - so you needn't stay in your home long enough to see a direct return on investment. 

Can Solar Power Pay Off? One Homeowner Crunches Real Numbers

By Julie Sprankles 

Aside from the obvious benefit of helping the planet, solar power can be pretty enticing to homeowners who are tired of paying an arm and a leg for their electric bill every month. Given that outfitting a home with solar panels comes with considerable costs upfront, though, is doing so practical from a financial standpoint? Can solar power in fact pay off?

For starters, it's worth noting that the benefits—as well as costs—of installing solar (also called photovoltaic) power systems will vary from house to house. This makes sense, right? Your house might be much larger than my house. My house may be in an area where solar power is more readily available and therefore more affordable. The variables go on and on.

In general, however, there are a few universal benefits of installing solar power: it lowers your electric bill, minimizes your carbon footprint and, depending on where you live, it can even bump up your home value.

On the flip side, you'll need to drop a pretty penny upfront in order to buy the equipment and pay for the installation. The big question, of course, is whether the potential savings will outweigh those upfront expenditures—or, more pointedly, whether you'll actually be able to save money (or make money, if the value of your house goes up considerably) should you invest in solar power.

How much does solar power cost to install?

Let's talk numbers, shall we? A solar power system for an average-sized house in the U.S. can run anywhere from $15,000 to $40,000. If those figures give you a serious case of sticker shock, don't fret just yet—many companies allow you to "lease" the equipment, which dramatically reduces your upfront costs. But should you decide to purchase outright, you may qualify for government incentives that cut the cost of the system. In all 50 states, installing a solar power system qualifies the homeowner for the Residential Renewable Energy Tax Credit. This tax incentive allows you to claim a credit of 30 percent of qualified expenditures for your system and, most importantly, helps to shave down the time it would take for your savings to equal out or exceed your initial investment.

If you're the type that likes online calculators, you'll be particularly happy to learn that Google has come up with a handy little number-cruncher to give you an approximation of the costs and savings you can expect with solar in your own home. Called Project Sunroof, the tool relies on high-resolution aerial mapping to calculate your specific roof's solar energy potential. According to Google engineer Carl Elkin, the site "figures out how much sunlight hits your rooftop through the year, taking into account factors like roof orientation, shade from trees and nearby buildings, and local weather patterns."

Technology... crazy, huh?

When I plug my home's address into Project Sunroof, it spits out an aerial thermal image of my street that is, if we're being honest, pretty damn impressive in its detail. The fact that my roof is glowing bright yellow clues me into the fact that sunlight is aplenty, but the site spells it out for me, too.

By their estimate, my roof receives 1,606 hours of usable sunlight per year. Based on 3D modeling of my roof and nearby trees, the site figures I have 564 square feet of roof available to be outfitted with solar panels—and they recommend an 8-kilowatt system, which would cover 40 percent of our household electricity usage.

What does all of this mean for my bottom line and, theoretically, yours? That, yes, a solar power system can pay off.

With the system covering around 40 percent of my household electricity usage, my 20-year benefits of utilizing the system would total $37,000. If the upfront cost of a system after tax incentives amounts to $17,000 and we deduct that from the benefits, the 20-year savings comes out to $20,000. In other words, it would take nine years to pay back that initial investment.

You may be thinking, "Yeah, but this only pays off if I actually stay in the home for nine years." In which case you may be relieved to learn that research conducted by the Department of Energy in 2015 showed that buyers are happy to pay more for homes with solar power systems.

The study, which was cited by The New York Times, revealed that buyers were willing to pay a premium of $15,000 for a home with a solar power system, compared to a similar home without one. The only caveat is that these findings apply to systems that are owned, not leased.

So although there's no hard-and-fast rule for whether or not solar power systems will pay off in every unique situation, they can certainly save you money immediately on your electrical bill whether you buy or lease. And if you have the capital to make the full investment upfront, you could be looking at paying off the system in less than a decade and enjoying sizable savings and a big ROI in the long-term.