Minnesota Real Estate Blog

Radon Information

There are cracks in the foundation. Nothing structural. Nothing that's going to threaten the stability of the home, but they're there. Nooks, crannies and holes through which seeps an invisible threat. Colorless, odorless and undetectable by your average human, it is none the less the second leading cause of lung cancer in the United States.

Radon gas - even the name sounds ominous, evoking images of radiation and nuclear devastation. Radon gas is created when uranium in the soil decays. The gas then seeps through any access point into a home. Common entry points are cracks in the foundation, poorly sealed pipes, drainage or any other loose point. Once in the home, the gas can collect in certain areas - especially basements and other low-lying, closed areas - and build up over time to dangerous levels. The Environmental Protection Agency of the US Government has set a threshold of 4 pico curies per liter as the safe level. As humans are exposed to the gas over a period of years, it can have a significant and detrimental effect.

How widespread is the problem? Radon has been found in homes in all 50 states. Certain areas are more susceptible than others (http://www.epa.gov/radon/zonemap.html), but no location is immune. Concentrations of radon-causing materials in the soil can be either natural or man-made. Homes built near historic mining operations may be at higher risk. The only way to tell for sure is to have a home tested.

Testing for radon comes in two forms: active and passive. Active devises constantly measure the levels of radon in a portion of the home and display those results. Passive devices collect samples over a period of time and then are taken away and analyzed. Either method can help you determine your level of risk. Do-it-yourself kits are available from a number of outlets, normally with passive devices. Over a period of days, the device is left in the lowest level of the home which is normally occupied. This eliminates crawl spaces under the house, but includes finished or unfinished basements. Then the results are analyzed by a professional. The other option is to engage a qualified professional to conduct the tests properly. The EPA web site (http://www.epa.gov/radon/radontest.html) provides information on finding appropriate resources and testing devices.

If high concentrations of radon are found in your home, you have several options. Since radon is only a problem when it is concentrated in high volume, improving the ventilation in an area is often sufficient to solve the problem. In other cases, it may be necessary to limit the amount of radon getting into the home by sealing or otherwise obstructing the access points. Once again, a professional should be engaged to ensure that the radon is effectively blocked. Typical radon mitigation systems can cost between $800 and $2,500, according to the EPA.

If you're buying or selling a home, radon can be a significant issue. Buyers should be aware of the radon risk in their area and determine whether a radon test is desirable. When in doubt, the EPA always recommends testing. The cost of the test can be built into the house price. If test results already exist, make sure they are recent or that the home has not been significantly renovated since the test was performed. If in doubt, get a new test done. If you're selling a home, having a recent radon test is a great idea. By being proactive, you can assure potential buyers that there is no risk and avoid the issue from the start.

So whether you have an old home or a new one, live in an old mining town or in the middle of the Great Plains, radon is a reality. But it is a reality that we can live with. Proper testing and mitigation can eliminate radon as a health threat. For more information, visit the EPA web site on radon at www.epa.gov/radon.

John and Michele Anselmo-RE/MAX Advantage Plus

More information available at www.minnesotarealestatesite.com

Listing Commissions
Real estate brokers normally charge a commission for listing and selling your home. The rate varies, both by region and according to service level. In most areas the commission is calculated as a percentage of the sales price and rates of up to 7% are not uncommon.  Your listing contract will specify both the amount of the commission and the timing for when it will be paid.  Like everything else in real estate, commissions are negotiable.

Discount commissions
It wasn’t to long ago that commissions below the “going rate” for an area were all but unheard of.  These days though, there are many brokers and agents willing to list your home for considerably less than the 7% that might be typical for the area.  You need to be aware though, that lower commissions are nearly always tied to lower levels of service.  Most agents willing to list your home for a bargain commission rate aren’t going to do any advertising or marketing of your home.  They will probably just list it with the local MLS and put a sign in your yard, and that’s about it.  Meanwhile, a full service, full rate agent will probably spend considerable time and money to advertise and market your home – particularly to other agents in the area.  So, when considering a low commission, be sure you know exactly what you’ll be getting, and what you’ll be giving up.

Often, lower commissions will be part of a package deal where you agree to use a particular mortgage broker or you agree to buy your next home through the same agent that sells your present one.  There are some good bargains to be had with these package deals.  But again, it pays to examine the details closely, and make sure the whole package fits your needs.

Paying commissions
It’s important to understand how commissions are earned, and when they are paid.  Your specific listing agreement will spell out the details.  In general, a broker is considered to have held up his end of the bargain when he brings you a “ready, willing and able” buyer.  If the broker finds such a buyer, and you change your mind and back out of the deal at the last minute, the broker is probably going to expect you to pay the commission anyway, since he/she did their job.

Scoring your Credit - How's your FICO?

In today's increasingly automated society, it should come as no surprise that when you apply for a mortgage, your ability to pay can be reduced to a single number. All the years you've been paying your mortgage, car payments, and credit card bills can be analyzed, sliced, diced, spindled and mutilated into a single indicator of whether you're likely to meet your future obligations.

All three of the major credit reporting agencies (Equifax, Experian and TransUnion) use a slightly different system to arrive at a score. The best known is called the FICO score, based on a model developed by Fair Isaac and Company (hence the name) and used by Experian. Equifax's model is called BEACON, while TransUnion uses EMPIRICA. While each of the models considers a range of data available in your credit report, the primary factors are:

Each of these, and other items, are assigned a value and a weight. The results are added up and distilled into a single number. FICO scores range from 300 to 850, with higher being better. Typical home buyers likely find their scores falling between 600 and 850.

FICO scores are used for more than just determining whether or not you qualify for a mortgage. Higher scores indicate you are a better credit risk, and thus may qualify for a better mortgage rate.

What can you do about your FICO score? Unfortunately, not much. Since the score is based on a lifetime of credit history, it is difficult to make a significant change in the number with quick fixes. The most important thing is to know your FICO score and to ensure that your credit history is correct. Conveniently, Fair Isaac has created a web site (www.myFICO.com) that let's you do just that. For a reasonable fee, you can quickly get your FICO score from all three reporting agencies, along with your credit report. Also available is some helpful information and tools that help you analyze what actions might have the greatest impact on your FICO score. Each of the credit services offers similar services on their web sites: www.equifax.com, www.experian.com, and www.transunion.com.

Armed with this information, you will be a more informed consumer and better positioned to obtain the most favorable mortgage available to you.

Plumbing and Fixtures
There are several good reasons to make sure all of your plumbing and fixtures look good and are in good working order before putting your home up for sale. When potential buyers come to look at your home, they are likely to turn on faucets and flush toilets “just to see”. This is no time to make a bad impression with grungy old fixtures, leaks or stained sinks. Before showing your home, you should make sure that all faucets and knobs are clean and shiny. If needed, buy new ones. They don’t need to be expensive.  An inexpensive but shiny and obviously brand new fixture will make a far better impression than an expensive but old and stained one. Another good reason to look after these items before putting your home up for sale is the likelihood of a home inspection prior to closing.  Most savvy buyers will insist on allowing an independent contractor to perform a home inspection before closing. The inspector will be checking for leaks, pressure and making sure any appliances included with the home are in good working order. If the inspector finds any problems in these areas, it could easily cause a delay in closing.    

Call/text or email us for a list of preferred plumbers in the area, 612-790-7504. Email: info@minnesotarealestatesite.com

Which home improvements give the best payback?

If you’re thinking about remodeling your kitchen, or finishing your basement, you probably want to get your investment back when you sell your home. But when it comes to payback value of home improvements, some are definitely more profitable than others.  As a general rule, kitchen and bathroom projects usually get a nice return on investment, typically 90% or more.Things like adding rooms or finishing basements tend to pay back the least. Finishing a basement usually returns less than 50%, so it’s not a project likely to show profit at selling time.

There are a number of factors that go into determining how well a project will pay back. Payback value depends a lot on the current market conditions in your area. If the market is hot and homes are selling fast, you can expect a higher payback value than you would get in a slow market.

The type of project you do and how it fits in with other homes in the area can have a big influence on payback too. If you put your money into the wrong type of improvement, you won’t get your money back. But if you're smart about what you do, you can make money. The payback will be better on improvements that are in demand and conform to neighborhood standards. Adding a second bathroom in a neighborhood where most homes have two bathrooms will give a high return on investment. Building a large addition that makes your home twice as big as the other homes on the block probably won’t pay back very well. Likewise, the popularity of a project will factor into how much it pays back. An improvement heavily customized to your wants and needs won’t pay back as well as something more common to other homes in the neighborhood.

Another factor to consider is the cost of the improvements. If you can do the work yourself, you can save significantly on the cost of the project and greatly improve the chances of getting a good return on the investment.

The list below is compiled from several published surveys and shows typical payback for some popular remodeling projects:

• Kitchen remodeling – 90%
• Add a bathroom – 90%
• Bathroom remodeling – 80%
• Install central heating – 90%
• Install central air – 75%
• Add a deck – 70%
• Replace windows – 70%
• Add a room – 55%
• Build a pool – 45%
• Finish a basement – 40%