Kevin’s
Homeowner News
Courtesy of Kevin Howe ^ Iowa Realty
How to Avoid the “Oops”
It would be so nice if every real estate deal
closed as expected. But this, of course, is
not the case and some deals never reach
the closing table. This can be especially
aggravating to sellers who lose time and
money in the process, so let’s look at some
common reasons why deals fall apart and
what sellers can do about it.
Financing
The contract is signed and both the buyer
and the seller are excited. The property
is taken off the market, but several
weeks later just before the
closing, bad news arrives – the
buyer can’t get financing. The
seller is dismayed – how can
this be? It happens all the
time when buyers are not
properly pre-approved.
Ideally, everyone who comes
to see your home should
already have the pre-approval
done. However, some
people are too eager to start
looking at homes before first
doing their homework and
some are just clueless about how the
process works. Since you can’t be sure
what kind of a buyer you are dealing with,
you should insist that a pre-approval letter
accompanies any offer. You or your agent
should also follow up with the lender who
issued the pre-approval to confirm that
what is written in the letter is correct.
Cold Feet
Buyers can and do change their minds.
If the buyer walks away from the deal, the
seller might be able to keep the earnest
money, but even that may not be enough
to make up for the lost time and hassle.
^ (515) 710-2458 September 2010
TM
The best thing for everybody is for the
buyer to not change his mind, and as a
seller there are a few things you can do to
ensure that. First, get things done fast.
The longer your property is under
contract, the more time the buyer has to
back out. Second, make sure that the
contingencies the buyer has put in the
contract are reasonable and do not allow
for too much wiggle room. At the same
time, make sure the contingencies you
requested do not unnecessarily delay the
closing. And third, require an
earnest money deposit large For me, the most rewarding part of
enough to both discourage being a Realtor is being able to help
cold feet and compensate people through one of the most
you for lost time should important financial decisions they will
the buyer bail. ever make. My top priority is always
my clients’ satisfaction. My job—to
Inspection Issues make sure that every transaction I am
The easiest time for the entrusted with is handled with the
buyer to get out of the utmost care and professionalism. As
contract is when the
my client, you will feel like you are my
inspection is done.
This is because even the
only client, and my goal is that you are
smallest of issues can be not merely satisfied with my service,
used as an excuse to cancel but that you become an enthusiastic
the deal. To avoid this, carefully prepare fan. I look forward to helping you with
your property for sale ahead of time and your next real estate transaction—just
fix anything that needs fixing. If you are give me a call, or send me an e-mail.
aware of a problem, don’t hope that the
buyer won’t notice it; even if she doesn’t, Kevin Ho
Howwe
her inspector will. Some sellers go as far (515) 710-2458 (mobile)
as getting a property inspection done at (515) 453-5860 (direct)
their own expense before even listing the kevinhowe@iowarealty.com
home. This is not a bad idea – it
www.kevinhowe.com
minimizes the chances of a surprise later
and allows the seller ample time to find a
remedy for any issues discovered. At the
very least, consult a trusted Realtor before
placing your property on the market.
(continued, Page 2)
Homeowner News
Got a Low Ball Offer? No Worries!
When sellers receive a low ball offer, it
seems to cause greater offense than if the
buyer poked them in the eye. The
common reaction is to feel insulted, and
angrily reject the offer right off hand. But,
low ball offers are a fact of life when it
comes to real estate, especially now with
the market being the way it is. No need
to feel insulted, no need to get angry –
here is what to do if you get one.
First of all, getting an offer – any offer
– is a good thing. It means
someone liked your house
enough to want to live in it.
There are several possible
reasons for the low ball
offer, so don’t assume
anything about the buyer’s
motivation right away.
Instead, try to find out
more about their
reasoning for the price
offered and then write
them a counter-offer.
Did their agent do a
Comparative Market Analysis (CMA) for
them? Ask to see it. Are the homes they
are using for comparison really comparable
to yours? Your agent will be of great help
here! They don’t have a CMA? Then how
did they come up with their price?
Or is their reason for the low ball offer
something they didn’t like about your
house that you can correct (like new
carpet, paint, other repairs you may have
missed)? Is there anything else the buyer
needs that you can offer, such as a faster
move-in date or another incentive? Try
to find out about the buyers’ situation as
much as possible as this will make
negotiations easier.
Thank them for their offer! Tell them
you appreciate it, and then give them your
counter-proposal. Provide them with the
proof that your price is reasonable (the
CMA your agent did for you, list of recent
upgrades, etc). Don’t immediately
counter with the lowest price you are
willing to accept, as the buyer may expect
a few rounds of back-and-forth. Be upbeat
and be friendly – let them know that you
want to work with them. If the back-and-
Page 2
September 2010
(continued from Page 1)
While an agent is not an inspector, he
or she can look at your home “through
forth continues, keep the process alive by the buyer’s eyes” and point out things
encouraging the buyer not to give up. Of that you may have overlooked.
course, you don’t want to stretch the
negotiations on indefinitely – the buyer Appraisal
may eventually walk away and pursue Some sellers have a strong urge to
another property if they think they can’t overprice their homes. Their thinking
work with you. is that, hey, someone just might come
Now there is another thing to consider along and pay the asking price whatever
– the possibility that what you thought was it is! There are a number of things
a low ball offer is actually not that bad. I wrong with this approach, not the least
know that it can be hard to swallow, but if of which is that it almost never works.
your house has been on the market for But let’s set that aside and assume that
a while, its value may have gone some poor soul, having never heard of
down. So, double-check your buyer’s agents or the internet, does
numbers. Ask your agent for the agree to buy an overpriced home. Since
most current Comparative not too many people pay cash, the buyer
Market Analysis – what does will be working with a lender, who will
it say? If it looks like the require an appraisal. While it is
market has taken a dive, possible to fool an unsophisticated
don’t despair right away. buyer, fooling a professional appraiser
How much do you need to will be a lot harder. Simply put – the
net in order to meet your deal won’t fly. Setting a reasonable
goals? Is that still doable even price, on the other hand, allows you to
with the lower price? Keep in avoid this problem, and at the same
mind that if you are selling your time enables you to find a buyer sooner.
home for less than what you hoped for, How do you know what the reasonable
you will also be buying your next house price is? Talk to your agent. He or she
for less than you thought. The market is can provide you with a list of recently
the same for everyone. sold homes in your area and the homes
Throughout the process try to be that are still for sale. With this
flexible and patient. It’s just as stressful information you can easily determine
for the buyer, so try not to get upset with the optimal asking price, and even
them. If an agreement is possible, and justify that price to the appraiser should
all parties work together in good faith, he raise any objections to it.
then an agreement will be reached.
ATTENTION FUTURE SELLERS:
A recently released report The Seven Most Common Mistakes
Sellers Make reveals surprising details about expensive selling
mistakes and how you can avoid them. I have obtained several
copies of this report, and I am making them available FREE to
the homeowners in our community.
If you are planning on selling your home soon, order your copy
today - there is no cost and no obligation!
(515) 710-2458 kevinhowe@iowarealty.com
 September 2010 Homeowner News

Windows That Save You Money

Ask an
During the summer, most of the
unwanted heat comes through the
windows, which causes your air
Solar Gain
The window’s ability to block (or allow)
solar heat depends on the types of
Expert
conditioner to work harder, which in turn glazing that are applied to it. Tinted or
causes you to spend more money on reflective glazing is designed to block
energy bills. During the winter, most of solar energy and keep the home cooler
the wanted heat escapes through the in the summer. There is also a heat-
windows, which now causes your furnace absorbing glazing, which, as the name Q: I measur
measureded the squar
squaree ffoota
oota
ootagge
work harder, which in turn suggests, absorbs heat rather of m myy home and it wwas as totall
totallyy
again causes you to spend than deflecting it. dif
difff er ent fr
erent om wwha
from ha
hatt wwasas
more money on energy The measurement for ad
advver tised. Wha
ertised. hatt gi
givves?
bills. Conclusion: if you the window’s sun-
are about to get new blocking ability is A: Measuring a home’s square
windows, choose carefully. SHGC, which stands footage is not as simple as it
for Solar Heat Gain sounds. There are a number of
Insulating Ability Coefficient. This rules about which space can be
How well the window value can be counted and which can’t. The
prevents heat from between 0.4 and basic rules state that, in order to
escaping out of your home 0.9. The windows be included in the square
depends on three main with lower values footage, the space must be (1.)
factors. The first is the number of layers are more suitable for warm climates as intended for human occupancy,
of glass that are used in a window’s they let less solar energy through, (2.) heated by a per manent
construction. Single-pane windows whereas those with higher values are heating system, (3.) have direct
perform poorly because one sheet of glass better suited for colder climates for the access to another living area, and
is not much of a barrier to keep the opposite reason. (4.) it must have finished floors,
warmth in. Two or more panes is better. walls, and ceilings. But there are
The second factor is the air space between Air Leakage special cases. Stairways, for
the panes. There should be about ½ inch All windows leak air, some more and example can be tricky. Bay
of space; definitely not less than ¼ and some less. The quality of the frame is the windows, open foyers and rooms
not more than ¾ of an inch. Some important factor here. Modern vinyl with sloped ceilings can be
manufacturers fill the space with slow- windows perform really well, and those challenging, too. Additions done
moving gases, such as krypton and argon, with wooden frames can be really good without a building permit may not
which further improve the also, provided that be able to qualify at all. Because
window’s insulating they are well-built and there are so many different rules,
ability. The third factor properly maintained. buyers, sellers and even real
is the so-called Low-e Windows with estate agents should not attempt
Coating (which is short aluminum frames are to measure the home. This job is
for Low-Emissivity OK when they are best left to a licensed appraiser.
Coating). This is a new, but over time
special see-through they warp just
glaze, made of either enough to start Ha v e a tough r eal esta estatete
silver or tin oxide, letting air in (or out).
question? T he ans wer is onl
answ onlyy a
which reflects infrared Predictably, they are the
phone call or an email aaw
w ay!
heat radiation back least expensive to buy, but most
into the home. This feature alone can expensive to own.
reduce the heat loss by at least 40 percent. A window’s air leakage properties are
The overall insulating ability of a measured by cfm/ft (which stands for Kevin Howe
How
window is usually measured by its “U- cubic feet of air per minute per foot of
(515) 710-2458
factor” which should be marked on the window perimeter). The values between
window packaging. The lower the U- 0.01 and 0.06 denote a well-built
kevinhowe@iowarealty.com
factor, the better. window.
This publication is for informational purposes only and does not constitute legal or financial advice. All information was obtained from sources deemed
reliable, and while I do not doubt its accuracy, I cannot guarantee it. If your property is listed with another broker, this is not intended as a solicitation. Page 3
© 2010, Resulti and its licensors.
 Kevin Howe
How
Iowa Realty
80 E. Laurel
Waukee, IA 50263

September 2010
ARCHITECTURE CORNER

STICK HOUSE
“To us, our house was not insentient matter – it has a heart and a soul
and eyes to see us… and approvals and solicitudes and deep sympathies;
it was of us, and we were in its confidence.” This is what Mark Twain
had to say about his Stick House near Hartford, Connecticut. He loved
his house so much, that when he was forced to rent it out due to financial
troubles, according to his contemporaries he seemed to have suffered
almost as much as if he had lost a close friend.
Stick style is one of several sub-types of Victorian architecture. The
most recognizable characteristic is the “stick work” – decorative half-
timbering on the outside walls, similar to the Tudor style. However,
while with Tudor homes the stick work is a structural element, with
Stick houses it’s just there for decoration. Other decorative elements
include ornamental gable trusses, and decorative brackets and braces.
Stick houses are almost always made out of wood (another difference
between them and Tudor homes), have high pitched gable roofs, and
have brightly painted façades. Balconies and porches are also common,
and these homes are most commonly two or two-and-a-half stories high.
Stick House first appeared in 1860’s, and it was popularized by
many house pattern books over the next two decades. However, by the
early 1880’s it started being replaced with the more ornate and fancy
Queen Anne style. Still, many fine examples can be found today, and
Stick House had definitely earned its place on the list of most beloved
American architectural styles.