March 12, 2008

Snow melt and basement leaks

Filed under: Gene Lynch — admin @ 4:50 pm

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download Dark Star dvd Unfortunately for those of us with rather old houses or poorly built foundations, yesterday was the day that the snow melt seeped into our basements. My house was build in 1908 and consequently the foundation has a few defects. Hence, this morning I woke up to a basement filled with water which had soaked into the carpets. I am running dehumidifiers and fans to deal with the water, but ultimately I am going to have to invest in some water abatement or basement water fixes.

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While there are many companies promising basement water fixes, a simple tile job with a few sump pumps is not enough. What I really need is a full blown water removal and humidity solution to ensure that mold doesn’t overtake the crevices in the concrete and the walls.

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March 7, 2008

Appraisal Pressure

Filed under: Gene Lynch — admin @ 12:25 pm

During the real estate boom of the last few years appraisers have been under pressure from realtors and home owners to inflate the prices of homes. Seller’s agents and home owners obviously wanted a higher price so that they could make more money. Banks were largely silent and complicit in this home price inflation because they were making money just writing the loans. But, boy how things have changed.

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Because banks have been bitten recently with balance sheets full of junk loans written on inflated properties, there is now pressure on appraisers to deflate the prices of homes. Of course, banks only want to protect themselves from the current situation in which homeowners find themselves owing more on their house than it is currently estimated to be worth. These loan holders comprise the large majority of people just abandoning their homes to foreclosure.

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The pressure to deflate homes and protect the banks is so strong that one major bank has downgraded the entire State of California for home loans.

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 For anyone considering buying a house now, the way to avoid this situation is to buy quality. In real estate quality is always and only defined by one thing– location. But, what about the house itself. Well, in the short term the house itself may matter, but in the long term the only thing that matters in real estate is the property itself, the location, location, location.

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