The Cost Of Housing

The Cost Of Housing

The cost of renting or buying goes well beyond a rent or mortgage payment, and these days those additional costs add up. TOGETHER, COMBINED we can get an accurate picture of the cost of housing. Below are some of the costs of housing everyone needs to evaluate before purchasing OR renting:
 
1.   Purchase price.
2.   Mortgage payments.
3.   Rent payments.
4.   Real estate taxes.
5.   Closing costs. (loss of interest income from this)
6.   Loss of interest income from capital used for downpayment.
7.   Insurance.
8.   HOA fees.
9.   Garbage collection.
10. Utilities.
11. Yard, pool maintenance.
12. Repairs and other maintenance.
13. Other fees.
14. Future rent, mortgage payment escalations. 
 
Of course, after all of this there are the offsets like a tax deduction on mortgage interest, etc. Longterm, the biggest potential upside to ownership to offset these costs is the longterm appreciation of a property that could generate a capital gain that is tax free up to $250k/500k. And equity building too. 
 

Lead Paint Problems

Lead has been used in paint for centuries. It increases durability and has a color depth quality. In the United States it is estimated that:

• Almost all houses built before 1940 have lead in the paint

• Seventy percent (70%) of houses built between 1940 and 1959 have lead in the paint

• Twenty percent (20%) of houses built between 1960 and 1978 have lead in the paint

After 1978 the amount of lead in paint was limited to 600 parts per million and therefore is not deemed significant. 
Significant exposure can occur when: • paint is peeling, chipping or deteriorating in some fashion • a child chews on lead painted surfaces • lead painted surfaces are disturbed through remodeling or repairs • lead-painted surfaces are exposed to heavy use that will release lead chips or dust into the atmosphere. These potential problem areas are window sashes, doors and door frames, painted drawer guides, stairs, railings and banisters, porches, and fences, etc.

You can download the EPA's Protect Your Family from Lead in Your Home pamphlet at the EPA website: • http://www.epa.gov/lead/protect-your-family-lead-your-home-real-estate-disclosure You can also download an example lead paint disclosure from the OnlineEd file cabinet: • https://r.onlineed.com/pub/1318.pdf

Any house can have a radon problem. New houses and older houses, well-sealed and drafty houses, and houses with or without basements may all be subject to elevated radon levels. The EPA estimates that nearly 1 out of 15 houses in the United States have elevated radon levels. These elevated radon levels have been found in all 50 states. The radon levels in any given location are related to the amount of uranium and radium found in the underlying rock structure and soil. Radon is not considered a hazard unless it becomes concentrated in the living area of a home or work place and provides long term exposure to elevated levels.

Home Buyer's and Seller's Guide to Radon https://www.epa.gov/radon/radon-resources-home-buyers-and-sellers

If the buyer is purchasing a new or recently remodeled house, higher than acceptable levels of formaldehyde will probably be present. The agent should discuss the health concerns that formaldehyde may present, direct the buyer to sources of further information relating to formaldehyde, and should discuss various methods to reduce formaldehyde levels.

At a minimum, homeowners relying upon well water would be well advised to test the water in their system once a year for coliform bacteria, nitrates, pH, and total dissolved solids. Testing for sulfates, chloride, iron, manganese, hardness, and the system's corrosion index should be done every three years.

Download the sample Combined Hazards Disclosure Pamphlet6 - This document includes the Residential Environmental Hazards guide, the Protect Your Family From Lead booklet, and the Homeowner's Guide To Earthquake Safety.

Download the sample Residential Earthquake Hazards Report7 - This document covers common earthquake hazards that might affect a property for sale, and is usually included in the Residential Environmental Hazards guide.

If an agent represents a buyer, care and skill may include:

• Locating property meeting the buyer's criteria.

• Assisting the buyer in evaluation of the property as to condition, value, and neighborhood.

• Assisting in locating financial alternatives available to the buyer. 

• Explaining and preparing the terms and implications of the buyer's offer and responses to counteroffers and other documents.

• Tracking and ensuring that transaction deadlines are met. The generally accepted standard required by a licensee is measured by the level of care a typical broker within the community would exercise in similar situations in representation of the principal's best interest.

Work With Alena

It's a tremendous pleasure helping someone buy or sell their home—that's why I make sure my clients' needs come first. I have a proven system that ensures sellers' homes stand out on the market.

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