I came across this interesting article about how a Northern Arizona University research lab has been using the sound of beetles against them. Given how bark beatles have been a tremendous problem for trees throughout Arizona’s forest areas, not to mention across the United States, I thought I would share it.
“Bark Beetles Rocked by Sound“
Essentially, researches found that recording the noise the beetles make and modifying it and playing it back, the beetles’ behavior is altered. They are seeing a disruption in the beetles’ normal behavior patterns.
There is much more research to be done here but I thought it fascinating and hopeful given the extent of the problem. The bark beetles’ really are a national menace to the nation’s forest regions.
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Here’s a tip for preparing your home for show. I know this goes against the environmental crowd, which I would include myself in. However, the impact is minor.
When preparing your home for show. If you have the low-energy lightbulbs in parts of the house, consider changing them out for soft light bulbs. There are a couple of reasons for this.
First, if you don’t have the lightbulbs uniformly across your home, potential buyers going through your home will experience variation in the lighting. This variation can be irritating as buyers walk through one room with a light blue hue to another with a more soft yellow hue. I personally believe the more blue hue alters the feel of colors across a room.
Second, the low-energy light bulbs can take time to reach their full brightness. However, while the bulbs are doing this, the buyer has already tried to look in that room and walked out. They probably even made a comment to their Realtor about the lighting lacking. End result: The buyer fixated on the lack of lighting and not the room or house.
So, take a temporary reprieve from saving energy and make sure you have light bulbs which better accentuate the wall colors and decorations in your rooms and home.
It’s a little tip to help you sell your home.
FYI, if you need help selling your home, call me at 480-227-6911 and I will make sure you are taken care of.
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I thought I would share with you some of the things I look for when showing a home to a Buyer. I believe it is important for Realtors to continually educate their clients during the process of looking for a home. Indeed, I believe the best Realtors are those that are regularly communicating information to their clients that helps those clients gain perspective and insights on what makes a good property. Keep in mind, I call out things I see at the outset so people are aware of them. Of course, if there is interest in purchasing the property, I recommend experts in their respective fields come to look at the property in more detail as I am not licensed as a termite inspector, home inspector, etc.
So, here goes.
When Showing a Home (doesn’t matter whether this is a Chandler home, Gilbert home, or a home in the outskirts of Rio Verde)
Interior
Kitchen
- What kind of cabinets are in the kitchen and are they in good shape or due for an overhaul? Painted cabinets are something to be careful of as many homeowners don’t do a good job of painting them (or the company they hired). I occasionally see a home that does a really good job of this as one I can think of that I helped a young couple purchase in Ahwatukee. Oak is the surface that I see painted. Only on one occasion did I see a home where the maple cabinets in the kitchen were painted over - I thought this was a colossal waste of a fine wood.
- What kind of countertops are there? Laminate is the cheapest but easy to replace. Tile counters are mostly outdated now though I come across one that is quite unique once in a while. Many Corian counters are largely outdated now and buyers avoid them but not so much as tile. Corian does usually have the seamless lines into the sink which I like. However, Corian can look good and if it does, I don’t believe it is worth replacing. The one cool thing about Corian as well is that you can actually sand the surface (have a professional do it) and make the Corian look as good as the day it went in. Granite is the most sought after granite but some granites are what I call ‘retail-grade’ and can be hard on the eyes (these are the kinds I find at the gym or a hair salon). I like granites that are bold with striations and color and not excessively dark.
- Appliances
- Dishwasher - I open it up to see if there are rust deposits in there. If so, are they isolated to the racks only or on the tub? You may be able to replace only the racks to get rid of it all. Is the dishwasher a good brand and quality or a cheap ‘rental’ unit?
- Refrigerator - I look to see what the rough age and condition is if it conveys with the property.
- Range - I like to know the brand and quality of the unit.
- Under the sink - What’s it look like under the sink? This is the most likely place for a leak, so what does it look like under there? Are there signs of a leak? Is the wood damaged in any way? Is it clean?
Master Bedroom and Bath
- Bathroom
- What is the bathroom configuration and how does that work with the clients? It is always good to have both a shower and bath not critical. Are there double sinks? A good configuration is double sinks, separate shower and tub.
- What is the condition of the shower and bath? I look at the bottom of the shower as this is the most telling - inside and outside. Sometimes on the outside at the bottom where the drywall meets the shower, there can be water damage.
- What do under the sinks look like?
- How updated is everything in the bathroom?
- Is the flooring in the bathroom carpeting or hard surface such as tile? Most buyers prefer hard flooring in the master bathroom and other bathrooms. Men definitely do not like carpeting near the toilet.
- What is the size of the master bedroom? Is it really large enough to accommodate furniture?
- What shape is the master bedroom? I generally suggest buyers avoid master bedrooms that have a diagonal cut that reduces the size of the room. Once in a while, you see a house where there are a lot of angled walls. If the master bedroom has an odd angle, then you will want to take that into consideration.
- Sitting areas are great when connected to the master, in my opinion.
- Is the master bedroom clearly split from the other bedrooms in the house? This tends to be a preferred characteristic for many home buyers.
- Is the walk-in closet large? Is it tall? Is it tall enough to add additional storage shelving if you wanted to? Buyers prefer larger walk-in closets and I am always surprised at the emphasis on the size of the master closet by buyers.
- Is the master bedroom on the same level as the other bedrooms? If the master is down and the other bedrooms up, this is an issue for many buyers. So, be sure that your clients know of the potential impact here.
Other Bedrooms
- Are they large enough for the buyer’s purposes. Here’s a rough guide to respectable room sizes. 9′x9′ is really small and will certainly be looked down upon and considered more as an office space and not a bedroom. 10′x10′ is small as well but probably okay for infants and small children, but not teens. 11′x11′ is probably a respectable minimum size. Any larger sizes are great.
- What kind of repainting work is needed? This is because many of the extra bedrooms out there are painted for the kids in mind.
Den/Office
- Make sure that the owner and listing agent isn’t classifying a true den/office as a bedroom. If the room has its own closet and the room can be completely closed, it can be considered a bedroom as well. However, if the room is off by itself in the middle of the home with double doors, it really shouldn’t be looked at that way.
- Pay attention to the size as den/offices often run a little smaller than normal bedrooms when they are separate from the other rooms.
Other Bathrooms
- What does the cabinetry look like and is it consistent with the other bathrooms and kitchen?
- Is the flooring consistent with the other parts of the house?
- If the home is a two-level home, is there a bath and bedroom away from the other bedrooms (on a different floor) that can be a guest room?
Utility Room
- How large is it? Will it accommodate baskets on the floor as well? Most utility rooms are on the way from the garage into the home and aren’t much bigger than the washer and dryer with shelves. The best utility rooms have room for baskets and hampers. If the home is a two-level home, I find buyers really like it when the utility room is upstairs (if this is the case, look for an overflow pan and drain where the washer should go).
- If there are cabinets, do they match what else is in the house? This isn’t really so important and the cabinets are often white.
Garage
- Are there cabinets in the garage that are affixed (permanent)?
- Is there a soft water loop? Is there a soft water softener unit?
- Is there a central vacuum hookup or system in place in the garage? This only comes up about 1 in 20 homes.
- Is there an epoxy coating on the floor? I like the simpler, ‘painted on’ epoxy coats rather than the full epoxy treatments that take days to do. Why? Because they are much less expensive and perform much of the same protective purpose.
- How deep is the garage and will that work for the buyer’s needs? Many buyers have long trucks so this is important.
- Are there window panels in the garage door? I like these as
Pests
- Scorpions - I look for these in any house I enter. First, I don’t want my client to accidentally be stung by one. Also, by looking for them, it gives me a headsup if scorpions may be in the area.
- Black widows - I watch for these to keep my clients from accidentally walking into their web. Black widows are mostly hidden away in the daytime but garages are notorious for black widows to still be out even during the day.
- Bug infestations - I don’t come across anything here usually but
Other
- Signs of leak damage and repairs on the ceiling. Even a faint, yellowish discoloration is a sign of potential damage from a water leak.
- Carpet - The first sign of any problem with carpet is an odor, usually from pets. I try to watch for discoloration in the carpeting. I have come to believe that if a house has a pet urine odor throughout, the carpet is shot. If there is an odor there, plan on replacing the carpet if you are concerned about it. Here’s a tip - Whatever the surface of the carpet looks like when it comes to pet stains, the backside is far worse.
- Single pane windows or dual pane windows? The latter is certainly better. Incidentally, it was sometime in the 1990s that installing dual pane windows became the norm. Newer homes will certainly have them.
- Window treatments - What kind are they and what condition are they in? Here is my scale of the quality of window treatments from worst to best in terms of practical use, quality, and impact. Vertical blinds, Nylon 1″ horizontal blinds, Metal 1″ horizontal blinds, Nylon 2″ blinds, Faux wood 2″ blinds, Wood 2″ blinds (white is always a safe bet), lesser quality plantation shutters, higher quality plantation shutters. By the way, good shutters in a home can run $5,000 to $10,000 depending on the size of the home and number of windows.
- Walls - Generally, I am looking for holes, blemishes, and other marks. I am also looking to see what the extent of likely repainting might be. As well, if there is any wallpaper, I am calling that out given that this is an added cost to get it out and retexture walls.
- Flow of the home - How does the home flow and how does it relate to the buyer’s needs?
- Flooring - Consistency in flooring across a home should be the rule. Keep this in mind. Generally speaking, you don’t want to see more than 3 flooring types across a house if you can avoid it. Very few homes can really accommodate more than that successfully.
- Step-ups and step-downs - These are when you have to step-down into a room such as the living room. I find that many buyers don’t like steps or have family members that would have a hard time with the extra steps.
- Cost of the home - I simply look for things that the future buyer should consider in terms of additional cost. Does the kitchen need to be remodeled or the exterior need to be repainted? Is the tile very dated and severely due for a redo? What kind of additional cost may a homeowner be looking at that they might not have figured on?
Exterior
- What is the orientation of the home - North/South or East/West? Most homes in the Phoenix area are North/South orientation which is preferred. Most buyers will see this as a preference but not outright reject a home if it isn’t facing the right way.
- Paint - How is the condition of the paint. Is it faded and the house in need of repainting? It is common to see paint flaking off at the foundation edge near the dirt so I put less emphasis here.
- Is there cracking on the exterior stucco that appears more significant than common settlement cracks?
- Are there any serious cracks on the foundation?
- Air conditioning - Because exterior A/C units typically look rusty and beat up outside though their operation may actually be fine, I don’t put a lot of emphasis here. However, I like to look at the drains for the unit(s) from the interior units. There is usually a primary and a secondary outlet where water often drips out. I look for serious rust deposits as this is a sign that there may be a blockage as well as the drip pan may be rusting out. If the drain pan under the attic space should rust out and develop a hole, the water will end up draining into your ceiling rather than outside. As well, I like to look at the model number information to determine what the likely tonnage is and how that might relate to the cooling capacity of the home. I wrote a separate blog post on how to read the numbers. Specifically, I am trying to understand if the air conditioning system may be undersized for the home.
- Obvious termite activity - A termite mud tube is usually visible at a home on the foundation cement when there is termite activity. Of course, a termite inspection should always be used as the definitive inspection if the home is to be purchased by the buyer.
- Wood rot on the patio or other places where natural wood is used. It’s not unusual to find dryrot on the patio cover. Typically, this is due to the patio roof surface breaking down and water seaping to the edges and rotting out the wood.
- Signs of additions - In Mesa, due to the age of homes (Mesa has many homes that were built back in the 1950s to 1970s), it is not unusual to see additions to homes and other odd changes. As such, when I suspect there has been an addition, I look at the walls to understand what work might have been done and what looks to be part of the original structure versus not.
- Carport - If the house only has a carport (assuming the client is open to a carport), I am looking to see if the carport could easily be converted to a garage. However, the biggest drawback to many carports is that they are not long enough to accommodate most cars. It’s important to know if this is the case with a home the buyer is considering.
- Shared wall - Once in a while, I come across a home that has a shared wall in the backyard. In other words, the backyard wall is the neighbor’s house. I have seen this at Scottsdale homes I have visited, at homes in Chandler and Ahwatukee, and other parts of the Valley. It’s not a bad thing necessarily - just one of those things to be aware of and comfortable with.
- Roof - With composite rooves, I look to see if there is any lifting of the roof in areas. Sometimes, you can see a dip in the roof indicative of the trusses not sufficiently supporting the roof. I look for fading and any signs of excessive wear and tear. With tile rooves, a roofer will tell you that the underlayment is what matters in knowing the condition of the roof. The underlayment is what really keeps the moisture and water out. When upstairs in a two-level home, I look for damage to the patio or balcony roof that would suggest it needs to be replaced. I might spy for broken or missing tiles as well.
- Yard - What’s the condition of the yard? I try to understand what it would cost to get the yard in shape if it is in disarray. I am looking for a well manicured yard as this is indicative of pride of ownership. Are plants healthy or are they dying?
- Exterior Upgrades - I am looking for upgrades in the yard that would clearly add value to the home. This is the obvious stuff such as rock accents, lush professional landscaping, golf greens, barbecues (though I don’t consider a lot of value for these - I think they are overrated for the average buyer these days), etc.
- Are there any obvious drainage issues?
- If the property is a horse property or property with acreage, I look for where the lot lines appear to go if not defined by fencing.
- Is the house connected to a sewer or does it have septic? The listing should contain this information and I will look around the house for signs of the septic system.
- Are there any signs of drainage or other issues with the grading of the lot?
- What do houses around look like? What condition are they in and are there any blights?
- What is around the home in terms of commercial, residential, and other land?
Pool
Overall, I am looking for any hints that there is a major expenditure required for the pool from a visual standpoint.
- I am looking for chipped tiles, missing tiles, and cracking in the surface of the pool. I often find the spillway from a spa into the pool to be particularly susceptible to lost tiles and cracking.
- I am looking for cracks in the surface of the pool.
- I am looking for any leaks at the equipment that seem significant.
- Plaster pools - If there is growth in the pool, I am looking to see if algae has penetrated the surface of the plaster. If it has, then it will be very difficult to get the staining out. I am also looking for significant cracking indicative of the pool needing a redo.
- Pebbletec - If there is a roll beam, I am looking for any cracking as this is an expensive fix. For instance an 8 foot stretch of roll beam could cost around $1,000 to fix if it is significantly cracked.
Feel free to print this list out as a reminder as to what you should be considering when you look at homes. If you want to share this, feel free. It’s just some thoughts that I hope would be helpful.
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A mortgage colleague I have worked with in the past and only have high marks for, Patty Immekus of PHX Mortgage, graciously gave me a copy of A Colossal Failure of Common Sense: The Inside Story of the Collapse of Lehman Brothers by Lawrence G. MacDonald recently and I have been reading it.
I am about a third through and thought I would share my impressions of it so far.
First, a brief description. The book is about the fall of the investment giant, Lehman Brothers in New York in late 2008. The author was involved in Lehman Brothers convertible bonds business and watched as events unfolded which led to the firm’s demise.
My Critique
Keep in mind that I am not yet done reading. My overall opinion could change here.
I have found the book to be quite interesting as it does shed a lot of light on the pieces to the puzzle of the financial and real estate disasters that have shaken this country. It is for this reason that I continue to read it. It is a fascinating world and provides a sharper picture as to how something like we have seen could have come to pass.
On the flip side, there are elements to the book I find lacking as well as a certain vanity throughout the reading. There seems to be an underlying sense of superiority rather than humbleness when the author talks to his or others accomplishments.
The author likes to take a lot of time talking about his background and how he worked hard to eventually become a trader in Wall Street. This seems to be done less out of relevant description and more out of self-admiration. The author talks a lot about the people he worked with and their pedigrees and intelligence. I can appreciate the point he makes that Lehman Brothers and other Wall Street firms hired the absolute best and sharpest for their roles, but I think there is something lost in his descriptions which makes these people to seem nothing more than exceptionally bright employees driven only to obtain corporate windfalls for the company.
The author talks to the history of Lehman Brothers which is quite impressive. However, in talking to the demise of Lehman Brothers, I believe that Mr. MacDonald doesn’t address the importance of a previous acquisition of Lehman Brothers by Shearson American Express back in the early 1990s. American Express would eventually spin off Lehman Brothers in 1994.
I have studied and worked extensively in the corporate world. As such, in my view, Lehman Brothers ceased to exist in this time period when it was first acquired. No matter what the arrangement, corporate cultures, personnel, and practices change. Though Lehman Brothers would re-emerge later, my take is that any company with a long-standing tradition and history such as Lehman Brothers can’t remain the true Lehman Brothers once it has been acquired. It’s no longer the same company. I realize this is a technicality of perception and highly arguable, but I would suggest that Lehman Brothers didn’t emerge from this exercise in the same vein as its embodiment before the acquisition.
The author makes a point about calling out how the average investor doesn’t have a chance against the powerful teams of analysts and traders looking for opportunities in the markets. This is a pretty blunt comment and it certainly struck me. It is no secret that it is hard for the average investor (one who works a different job by day) to research and comprehend what they should with respect to corporations, stocks, bonds, etc. However, to have this reinforced by the notion that there are teams of highly intelligent analysts and traders who essentially have the average investor at a disadvantage, is certainly disturbing. The average investor doesn’t stand a chance in many respects. It sounds like a battle between David and Goliath where David is swiftly disemboweled of his capital.
The author calls out Lehman Brothers acquisitions of Aurora Capital LLC and BNC so Lehman is complicit in the whole mortgage crisis. The irony is that I can’t count how many Aurora Capital lender-owned properties I have come across since this whole thing began.
I don’t know if the author is looking for pity yet for Lehman Brothers. But this last nugget of insight would seal the deal for me, PERIOD.
If Lehman Brothers helped to create the mess we have been in the last few years with various financial widgets and complex financial tools in addition to employing an army of mortgage representatives chomping at the bit to sell loan products to people that had no real business getting them, then so be their demise. I only wish more banks that were involved in similar practices would have been liquidated.
Of course, I don’t believe the author is suggesting Lehman Brothers was misunderstood at this point. The story is at a point that sounds like a rift was developing in the bank between the ‘mortgage guys’ and the bonds people.
I will write again when I am finished reading.
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