Gunning Daily News

Word of the Day

September 27, 2013 12:57 pm

Amortize. Pay a debt in monthly or other periodic installments until the total amount, along with the interest, if any, is paid.


Q: What are some costs associated with selling my home?

September 27, 2013 12:57 pm

A: Besides the costs related to making repairs and improving the overall appearance of the home, as the seller you will also need to pay the following:

  • A real estate commission, if you use an agency to sell.
  • Advertising costs, marketing materials, and other fees if you sell the home yourself.
  • Attorney, closing, or other professional fees.
  • Title insurance
  • Excise tax for the sale.
  • Prorated costs for your share of annual expenses, such as property taxes, homeowner association fees, and fuel tank rentals.
  • Any other fees normally paid by sellers in your area, including points, survey, and appraisal fees.
  • To get a better handle on all costs, ask a real estate agent. Agents deal with this information daily and can give you a pretty good estimate of the closing costs you can expect to pay.

Word of the Day

September 26, 2013 7:51 pm

Air rights. Right to occupy and use the open space above a parcel of land or property, such as in the leasing of air space over existing buildings or highways.


Q: How can I get a quick sale, particularly in a slow market?

September 26, 2013 7:51 pm

A: One of the most important things to consider is price. You may want to reduce the price of your home or, at the very beginning, set it at a low price that will generate more buyer interest.  

Cash is often an incentive, both for the buyer as well as the agent. You could offer the buyer a $1,000 to $2,000 decorating rebate upon closing the deal. It is also not uncommon to offer the selling agent a $500 bonus. However, some brokers – who supervise agents and run real estate offices – may prohibit such incentives, as do some Realtor boards. Check to find out.

Other common incentives: paying for the property inspection and warranty policy and getting your home preliminarily approved for FHA and VA loans, thereby making it more attractive to a larger number of buyers. Contact a lender who writes FHA-insured and VA-guaranteed loans.

 


Things to Know If You're Becoming a Tenant

September 26, 2013 6:51 pm

Whether relocating, downsizing or going through a lifestyle adjustment, I know that thousands of folks each month transition from living at home, or living in their own home, to becoming a tenant of someone else.

So a recent post from Providence, R.I., attorney John T. Longo, a contributor for GoLocalProv (golocalprov.com), seemed particularly timely. He offers the following tips for both first-time and frequent renters:

Don’t Talk Like a Lawyer - Coming across as a demanding or litigious person may give a potential landlord a reason not to rent to you. Be easy-going, polite and avoid saying things such as “that’s illegal.”

Know Your Equal Housing Rights - Unless your apartment is in a small owner-occupied building (generally four units or less under federal law), it is against the law for a landlord to discriminate based on multiple criteria.

Got Kids? - Landlords who refuse to rent to people with children often say something like: “Do you have kids?” (It’s illegal to ask.); or “The apartment is too small for kids.” (You get to decide that, not the landlord.) Longo advises anyone experiencing trouble renting because of children to get an attorney or contact HUD.

Inspect and Take Pictures - When moving out, a landlord may claim damage or cleanup costs against a security deposit. To prevent that, take lots of pictures, or make a video of the apartment before moving out or in. Photograph the inside of appliances, closets, a basement storage area and even common hallways.

Finally, Longo says it’s important to watch out for illegal fees.

Depending on the state, a landlord can require the first month’s rent, the last month’s rent, the cost of a new lock and key, and a security deposit equal to one-month’s rent.

If a real estate agent helped a tenant find a rental, there may be a fee involved. If the landlord used a real estate agent or agency, Longo says you do not have to pay their fee.

Resist paying prohibited charges for credit checks, applications, or pet, key, utility and cleaning deposits. Or, consider paying illegal fees with a separate check with its purpose written on the memo line. Renters can then try to get the fees refunded when moving out.

 


College Success Tips for “Later in Life” Students

September 26, 2013 6:51 pm

It's back-to-school time. In the old days, that meant that many high school graduates packed up their VW buses and headed for college, depending on mom and dad to pay the bills for four steady years of campus life.

But today, according to the National Center for Education Statistics, 75 percent of college students are older than age 24, work part or full time, commute to school, pay for their own college expenses and even juggle family life.

According to Jesse Hafen, company director of admissions for Stevens-Henager College, a nonprofit college dedicated to providing higher education for these "new-traditional" students, the path to getting a college degree can be stressful for many, and may even prevent some from finishing their degrees.

"The longer it takes to get a degree, the more life gets in the way of success," said Hafen. "Research shows that more than half of full-time students who enroll in a traditional four-year university take  five to six years to graduate, but institutions such as Stevens-Henager offer many bachelor's degrees in three years, associate’s degrees in 20 months and master's degrees in 15 months."

To help today's new-traditional college students shorten the time to graduation, Hafen offers the following tips:

  • Find a college that caters to your needs with flexible class schedules, frequent enrollment periods (such as monthly), accelerated course formats, and a large selection of on-campus and online courses.
  • Find a program: You know you want to get an education in order to make a good living, but if you aren't sure what career you want to pursue, find a school with free online aptitude assessments and counseling to help you choose.
  • Find a schedule: Most four-year universities require students to plan their own class schedules each semester, but colleges such as Stevens-Henager actually map out a full course of study for each student, figure costs and identify scholarship and financial aid options for those who qualify — all up front.
  • Find and use campus counseling and student services as a resource. Schools that cater to "new-traditional" students will provide information on jobs, transportation, housing, child care and more.
  • Seek a college with instructors with real-world experience who offer practical coursework during class, and one-on-one tutoring to help guide you.
  • Get a career: Before you start your job search after graduation, work with a career counselor to learn how to write a professional resume, dress professionally and interview well. A counselor will also help place you in a job in your field.

"My final recommendation for the new-traditional student is to take the time to thoroughly research the schools you are considering. It's free and well worth your time," added Hafen. "In my career, I've seen students who are single moms, working heads of households and more, who have graduated and gone on to have wonderful careers because they've put these kinds of strategies into play."

Source:  www.stevenshenager.edu   


Car Shopping? Avoid These Costly Mistakes

September 26, 2013 6:51 pm

As the year begins to draw to a close, many consumers may be tempted by model and calendar year-end savings events at their local car dealer. While it's a great time to consider pulling a new car into the garage, the following advice—provided by car shopping experts at AutoTrader.com®—can help buyers avoid mistakes that could turn their new dream car into a nightmare.

"Buying a car is something people usually only do at most every few years, so naturally the right way to go about it isn't always top of mind," says Brian Moody, AutoTrader.com site editor. "But a misstep during the shopping process could turn a great deal into a money pit in the long run."

Below are seven of the most common mistakes people make when shopping for a car – and how to avoid them:

1. Negotiating the price based on monthly payment. "This is one of the most common and expensive mistakes people make," Moody says. "It may seem more affordable to stretch out your payments over a longer term to give you that lower monthly payment, but in the end you're paying much more. Negotiate total price first. If the payment is too high, then you're getting a sign that the car is outside your budget."

2. Not getting a mechanical inspection. When shopping for a used car, an inspection is important. "Just because a car sounds and runs fine during the test drive, doesn't necessarily mean everything is in top working order," Moody says. "Cars are complex machines, and nothing is worse than an expensive repair shortly after you drive the vehicle home."

3. Buying things you don't need. The experts say this goes back to a key tenet in car shopping: make a list of wants and needs before ever setting foot in a dealership and stick to it. Factory and dealer-installed options add up quickly.

4. Not running a vehicle history report. While not a replacement for a mechanical inspection, history reports are a quick, usually fairly low-cost way to get a sense of whether a car is what a seller says it is.

5. Not taking a thorough test drive. Test drives should be at least 45 minutes on a variety of roads and driving conditions. Shoppers should also make sure to bring family members and bigger personal items (strollers, golf clubs, etc.) to make sure the car fits their lifestyle.

6. Falling in love with the car before you buy it. "While we know people have emotional attachments to cars, it's important to stay focused on the fact that this is a major purchase," Moody says. "Play it cool until the deal is done."

7. Not shopping around. Before you make a purchase, be sure to test drive as many of the competitive vehicles as possible. Then narrow the selection and visit several different dealerships. "This will give you peace of mind that you've found the right car for you at the best possible price," Moody says.

Source: AutoTrader.com


Hard Water: Bad for Your Home and Wallet

September 25, 2013 3:03 pm

BPT—Nearly 90 percent of American homes have hard water - water containing high levels of calcium and magnesium, according to The U.S. Geological Survey. The hardest water is commonly found in the states that run from Kansas to Texas as well as in Southern California. Hard water on its own is bad enough, making it difficult to wash clothes and dishes and leaving scaling on your pipes and showerheads as well as nasty brown rings in your sinks and toilets. However, it is also costing you money.

Research by the Battelle Institute found that with hard water, showerheads lost 75 percent of their flow rate in less than 18 simulated months and could not maintain the required flow rate because of scaling.

Water heaters are also negatively affected by hard water. When using softened water, researchers found that all the water heaters tested maintained 100 percent efficiency over a simulated 15-year lifetime, but with hard water, the gas and electric heater efficiency dropped by 25 percent - an incredible loss in energy resulting in significantly higher costs. In the case of the new instant tankless water heaters, hard water caused them to completely fail to function because of plugged-up scale, or mineral build-up associated with hard water, after only 1.6 years of simulated use - about a tenth the normal life of the appliance.

Another study conducted for the Water Quality Research Foundation assessed the impact of water hardness on automatic dishwashers. Soft water was up to 12 times more effective at cleaning dishes than increasing the amount of detergent used. Researchers also found that for washing machines, the most important factor in removing stains was water softness. Reduction of water hardness was up to 100 times more effective at stain removal than increasing the detergent dose or washing with hotter water.

You can take steps to eliminate the source of the scaling with a salt-based water softener. In order to make hard water into soft water, you have to remove the calcium and magnesium. The only way to do that effectively is with a salt-regenerated water softener. These work by running the incoming hard water through a resin filter that traps the calcium and magnesium in the water, as well as any iron, manganese or radium ions and replacing them with sodium ions. Magnetic and other non-salt based water softeners do not remove these harmful hard minerals.

Do-it-yourself water testing kits are available at most hardware stores, or you can have a water treatment professional do the testing. The Water Quality Association's website lets you search by company name, state or ZIP code to help find a professional in your area to handle the testing.

Eliminating hard water minerals delivers significant benefits in terms of the efficiency and maintenance cost of appliances and plumbing. From a budgeting perspective, using less detergent and energy can add up to real savings for families and individuals. Plus the harder these machines have to work, the faster they wear out and need repair or replacement, representing another very significant expense for homeowners. For more information on water softening, visit water-softening.org.


Agents and Contracts: 5 Legal Considerations

September 25, 2013 3:03 pm

Businesses often use agents to enter into contracts on matters both mundane and important -- even matters that can make or break a fledgling company.

When one of these agreements goes sour, a small business may be left on the hook for the slip-up of an employee who was vested with the power to enter into an agreement on the company's behalf.

Still, small business owners must delegate responsibilities to succeed. So here are five legal considerations when dealing with agents and contracts:

1. Who Has Authority?

You may have many employees working for your business, so it's important to know which ones are authorized to act on behalf of your company.

The relationship between a business owner and his or her agent is often defined by contract (i.e., the employment contract), but an employer may also imply authority based on an employee's duties.

Unless it is explicitly defined otherwise, most employees -- and even some independent contractors -- will have authority to act on your company's behalf, and that includes entering into contracts.

2. Who Is Liable?

Just like when an employee crashes the company truck, an employer is liable for those acts that an employee undertakes with the company's authority.

If an employee, vested with the company's authority, violates the terms of a contract or interferes with a pre-existing arrangement, then the employer will be held liable for any contract or tort damages.

3. What Is Apparent Authority?

When an employer authorizes an employee to enter into agreements or make decisions on behalf of a business, that is actual authority. But an employee acting as if he or she has authority is said to have apparent authority.

As an experienced contracts lawyer would tell you, companies can be just as liable if customers or clients have relied on employees' apparent authority to enter into a contract.

4. How Do You Know an Agent Has Authority?

It is very easy for small business owners to be bamboozled by individual sales agents claiming to represent a larger company. In one recent case, a small business owner in Texas claims she was tricked into cutting a sales rep a $3,000 deposit check for a sign that was ultimately not feasible, reports Lubbock's KCBD-TV.

Although the Texas business owner can likely recover from the company for the actions of its representative, it's best to avoid dealing with shady sales associates and never write one a personal check for a business expense.

5. Who Can Review a Contract for Me?

Once you figure out whether an agent has authority to enter into a contract, you'll want to get that contract reviewed. By using a prepaid legal plan like, you can get an attorney to review your contract and answer questions on a wide range of legal topics. Find a prepaid legal plan at www.legalstreet.com.

Sources: www.LegalStreet.com, www.FindLaw.com


Do You Have a Written Income Plan for Retirement?

September 25, 2013 3:03 pm

“Age 85 is a bad time to go broke,” says expert retirement planner Jeff Gorton.  Personal savings, various investments and, yes, Social Security may prove to be short of what you’d expected.

“Budgeting how you spend money before retirement can often be a misleading measurement of how you’ll actually spend it during retirement,” says Gorton, a veteran Certified Public Accountant and Certified Financial Planner™, and head of Gorton Financial Group.

“Spending 40 hours a week at work not only earns you a paycheck, it also keeps you from spending money on more vacations, matinee screenings at the movie theater, extra trips to the mall or shopping online. You need to be exceedingly realistic in your planning, and the five years before retirement are actually the most crucial in solidifying post-employment stability.”

To prevent a rude awakening during retirement, Gorton makes certain his clients start with a written income plan (WIP). He reviews the benefits and importance of this “living document”:

• A comprehensive list of life expenses paints a clearer picture. For a 65-year-old married couple today, there is a 72 percent chance that at least one spouse will live to age 85; a 45 percent chance that one will live to age 90, and an 18 percent chance that one will reach age 95, according a recent study from the CDC National Center for Health Statistics. You may not think of listing things like pet care, yard maintenance, and regular visits to salons or spas. But if you enjoy those services now, you may want them during retirement, and you might find that you underestimated the real cost of maintaining your desired lifestyle. And, that’s not including gifts to children and grandchildren!

• The forecast of a two-legged stool. A WIP helps you appreciate the reliability of retirement income. What sources of income do you anticipate having? Traditionally, retirement funding has been viewed as a “three-legged stool,” implying a balance between Social Security, retirement plans and savings/investments. As the baby boom generation ages, Social Security benefits may decrease — and the age at which an individual can collect benefits may increase. Changes in employment may affect retirement plans. As a result, the third leg of the stool, savings/investments, may become even more important.

• Who is authoring your WIP? As with all written documents, you must always consider the source. What you may not realize is that a financial planner is liable to have a stake in selling you a financial product. Just like a retailer may have an incentive to move certain brands of products, many planners are incentivized to have you invest in specific financial vehicles from major institutions. What plan works best for you? Seek advice from an expert who isn’t trying to sell you something, such as an independent firm.

“If you don’t have a written income plan, then you’re just hoping things will work out,” Gorton says.

Source:  www.gortonfinancialgroup.com