Are you buying a house or selling one in Connecticut?

Effective January 1, 2014 a new CT law requires both one- and two-family homes, condos and co-ops built before October 1, 2005 to have both smoke and carbon monoxide detectors installed in order to transfer ownership of the property.

Home sellers closing after January 1, 2014 will be required to sign an affidavit at closing indicating smoke alarms and carbon monoxide (CO) detectors are installed in the home. The affidavit must be signed in front of a notary or attorney.

The new law requires that the home seller provide the Affidavit Concerning Smoke and Carbon Monoxide Detectors or provide the buyer with a $250 credit against the purchase price at closing.

The law allows the detectors to be battery operated unless the home was built after October 1985 when hard-wired smoke detectors were required or after October 2005 when hard-wired carbon monoxide detectors were required.

Detectors must be installed according to manufacturers directions usually with smoke detectors installed outside all bedrooms and carbon monoxide detectors installed on each level. Size of house and number of bedrooms would determine number of detectors. Again, read manufacturer’s recommendations.  If unsure about correct placement for your floor plan, please consult your local fire department for direction on correct placement.

Dangerous levels of carbon monoxide can build up when heating sources like furnaces, fireplaces, space heaters and generators aren’t working properly or are not well ventilated.  If carbon monoxide levels are very high, a person can die within minutes of exposure.

Newer detectors, available in all home improvement stores, have digital readouts that monitor the levels of CO in the home.

Smoke alarms and CO detectors do have a life span.  Smoke alarms should be replaced about every 7-10 years. In addition, carbon monoxide alarms should be replaced every 5 years. (Check back of unit for manufacturers date) Again, manufacturers directions should be followed to ensure maximum operating efficiency.  Keep in mind that batteries should be checked at least every six months. 

If you have any questions, please contact me directly. 

Thanks - 

When I saw the heading of the article I found online I couldn’t wait to click on it.  We get so many buyers that have been pre-qualified by their personal bank.  A few buyers received a financial benefit from using their banks, like a lower interest rate or closing cost help.  But most do not.

In fact, many buyers go to one of the big banks because they don’t realize there are other financial options.  Even if I give them a list of fantastic mortgage brokers, they’ve already spoken to someone at the big bank and for some reason feel like they need to continue with that lender.  One of my most recent closings was a buyer that regretted making that choice, which happened to be Wells Fargo.  

With that said, here is a list of the banks that reject the most mortgages (according to the Wall Street Journal Online’s Market Watch : 

Bank Name: JP Morgan Chase
Total Applications: 80,036
Rejection Percentage: 33.6%
Denied Applications: 26,894


Bank of America
Total Applications: 76,355
Rejection Percentage: 25.6% 
Denied Applications: 19,547

Wells Fargo
Total Applications: 399,911
Rejection Percentage: 21.2 %
Denied Applications: 84,687

Quicken Loans
Total Applications: 25,038
Rejection Percentage: 21.2%
Denied Applications: 4,331
U.S. Bank
Total Applications: 52,425
Rejection Percentage: 17.2 %
Denied Applications: 9, 014
Citibank
Total Applications: 44,945
Rejection Percentage: 14.3%
Denied Applications: 6,442

This chart is interesting as you can see which bank takes the most applications – Wells Fargo.  Chase takes the top prize as the bank that turns down the most mortgage applications.

I have a list of loan officers that I have used and am happy with their services.  If I have a buyer that does not have a pre-approval letter I give them my list.  There isn’t a bank on that list.  I have had closings with the big banks, and the best one I’ve had to deal with is Fifth Third.  However, I just had a mortgage not approved by them and one of my other lenders told me they can do it.

If you’d like my list of the best loan officers and mortgage brokers I have used  in the business, just give me a call at (203) 464-8466 or use my Contact Form.  

Ma

If you bought a rental property during the pre-crash era, you may be feeling the lingering pain of the investment. Whether you’re experiencing negative cash flow or the property is simply not as wonderful as you’d first hoped, either in terms of quality or location, you’re probably wondering if this investment is worth the hassle. Before you make any rash selling decisions, here are some issues you should consider:

Do you want to be a landlord?In the mid-2000s, many people jumped into the  Real Estate market assuming they’d buy rental properties, prices would go up, and they’d get rich with little effort. Chances are, you’ve already learned that isn’t true. Being a good
 landlord is  hard work. Are you willing to put forth the time and effort required to keep properties full and tenants happy? If you’ve decided rental ownership isn’t for you, now is probably a good time to unload the property — even if you have to take a loss on the property.

What if the property is underwater with major negative equity?Fortunately, the values of rental properties in many markets have bounced back in the past six months. Negative equity is bad, but not necessarily the end of the world. A more important consideration: Cash flow. If your income from renters minus expenses and mortgage is positive (or very close to it) and your experience has been a good one, keep the property. A decade or two down the road, you will have forgotten the recent economic downturn and, instead, you’ll have a paid-off property, positive cash flow, and the satisfaction of knowing your current tenants paying for your retirement.

What if your cash flow is negative?Some properties are never going to make money. If you picked up one of these well-located " trophy properties" for very little money, you’re probably realizing it’s no prize at all. Did you do an analysis of the property’s cash flow potential before you bought? If you had, you might have realized it could be decades before you see positive cash flow. If you are in the red by $1,000 or more per month, it’s probably best to dump the property and cut your losses.

What if you want to be a landlord but this property is a stinker?Ask yourself: is a little short-term pain worth a long-term gain? If your current situation isn’t completely unbearable, you may want to buckle down, hold on to this first property and consider this sometimes uncomfortable situation a “life lesson.” If, on the other hand, the future of the property is bleaker than bleak, this may be a good time to dump it. Take the loss and start fresh with a new property.

As you consider your next move, remember that owning rental properties is hard work and unloading one property in favor of another may not make your job easier. If you have the desire, time and energy – and a willingness to get your hands a little dirty – you will likely make it work.

Granted it's been nearly six years, but approximately 4.6 million homes went into foreclosure since 2008, according to CoreLogic.  That's an incredibly high number to digest. Think about it - four point six Million Homes went into foreclosure in six years. It still sends shivers down my spine when I think about it. What's more alarming, is that most of those homeowners became renters. Even as housing is slowly recovering, credit tightened, pushing even more potential home buyers out of home ownership and into rentals -- apartments and single family homes.

There are now 43 million houses being rented, or 35 % of all U.S. households, the highest number in more than a decade, according to Harvard's Joint Center for Housing Studies. That's 4 million more renters today than there were in 2007. If you are between 25 and 54 years old, more of you are renting since the Harvard Center began record keeping in the early 1970's.

As a consequence, rental vacancies have fallen dramatically and rents have gone sky-high.

"We are in the midst of the worst rental affordability crisis that this country has known", said Shaun Donovan, U.S. Secretary of Housing and Urban Development. 

Half of all U.S. renters today pay more than 30 percent of their incomes on rent. That's up from 18 percent ten years ago, according to the Harvard Center. For those with low incomes, the jump is even more dramatic. 

"Over  four years,  we saw a 43 percent increase in the number of Americans with worst-case housing needs", according to Mr. Donovan. " Let's be clear about what that means, they're paying more than half of every dollar they earn for housing". 

The numbers are not lost on Annie Eccles, who is in her late 20s. She has been renting for more than two years, and the rent on her Bethesda, Md., apartment has increased by the maximum the county allows every year.

Most young Americans, my assistant who is 38 years old included, want to be homeowners someday. Whilst so called millennials favor mobility and city living, they still see owning a home one day as a goal. 

Eric Belsky, director of Harvard's Joint Center for Housing Studies, said that "nineteen out of 20 people that were surveyed say that they intend to buy a home at some point in the future, if they're under the age of 30"..." there is no question that the will toward home-ownership remains, it's the way". 

Home prices are rising faster than expected, due to heavy investor demand, ironically. Whilst more than 3 million owner-occupied are now investor-owned rentals, there is still a lack of supply in the market. New rental inventory is coming soon ( fingers crossed!), but demand is not easing. Renters may want to be buyers, but many still can't yet because of rising home prices and mortgage rates.

"Then you add in other things, like higher student debt for many people, you add in the fact that incomes are low - and moderate-income people have not been going up as fast as inflation, and you have a situation where its going to be very difficult to buy homes", said Belsky. 

If you need additional information, kindly let me know.