Real Estate Information Archive

Blog

Displaying blog entries 1-6 of 6

Mortgage Market Update

by Jason Daniels

"I'M MELTING! MELTING! OH, WHAT A WORLD, WHAT A WORLD..." Wicked Witch, Wizard of Oz 1939 And last week, you couldn't watch the financial news for longer than a few minutes without hearing about the "subprime meltdown", talking about a certain type of home loan experiencing heavy rates of default and foreclosure, and what the potential consequences might be on the US economy. Although subprime lending only represents a very small portion of home loans overall, the doom-and-gloom-loving media was loving it, busy forecasting a financial disaster for the economy. While this is a bit overblown, there certainly will be some ramifications, so be sure to read this week's Mortgage Market View below, to know what you should expect, and what you can do now. Overall, the news and hype did worry investors, and both Stocks and Bonds experienced an increase in volatility...but home loan rates ended up very close to where they started for the week.

In other news, Retail Sales came in a bit weaker than anticipated last week - but with a freezing cold February across most of the US, it wasn't exactly the best month to go hit the malls. The Producer Price Index (which measures wholesale inflation) and the Consumer Price Index (which measures retail inflation) both came in a bit hotter than had been expected, indicating that inflation has been stubbornly persistent in the economy. What must the Fed think of all this - and what will they do at their upcoming meeting? Read on...

DON'T MISS THIS WEEK'S MORTGAGE MARKET VIEW, TO LEARN HOW THE ISSUES IN THE SUBPRIME HOME LOAN ARENA MAY IMPACT YOU, WHAT THE FACTS ARE...AND WHAT YOU CAN DO RIGHT NOW.

Forecast for the Week

The week ahead holds a few real headliner news items, including a new round of housing data to sift through, including Housing Starts and Building Permits on Tuesday, and Existing Home Sales next Friday. But the financial highlight of the week will be the Fed Meeting and resulting Policy Statement. There has been rumors of a Fed Funds Rate cut to help the housing market or to smooth out the subprime home loan problem...but don't believe it. The Fed's main charge is to control inflation, period. And they will only consider cutting rates if the core rate of inflation, as measured by the Personal Consumption Expenditure (PCE) Index, falls below 2% for a few consecutive months. The latest Core PCE was 2.3%, so don't look for Home Equity Lines of Credit or other adjustable home loan rates that are tied to the Fed's movements to be dropping anytime soon.

The chart below shows how Bond Prices have been on a nice upward trend for the past six weeks, meaning that home loan rates have been trending lower. But on Friday, Bonds stepped right off that friendly upward sloping trend line, which could mean that Bond prices and home loan rates will worsen over the next few days, at least until some news comes along to drive the action decisively one way or the other. And this will likely be dependent on the flavor of the Fed statement coming up this Wednesday, due to be released at 2:00pm ET.

Chart: Fannie Mae 5.5% Mortgage Bond (Friday Mar 16, 2007)
Japanese Candlestick Chart
The Mortgage Market View...

The headlines are once again full of news from the mortgage and real estate front...and this time, the "subprime meltdown" is taking center stage. What exactly is going on, and what does it mean to you?

A "subprime" home loan is a loan where the client has some significant credit issues, or was otherwise unable to qualify for a standard, conventional loan. Due to the fact that these loans tend to be quite risky for the lender...they also bear higher interest rates to match, as well as often being adjustable rates that likely have recently hiked sky high, not to mention the steep prepayment penalties they generally carry.

These loans have been around for years - so why all the drama now?

Many subprime and other adjustable home loan rates have moved dramatically higher, due in part to the Federal Reserve Boards recent rate hike cycle. So as these rates are adjusting higher - and the payment right along with it - the homeowners are finding that they are unable to keep up with the dramatic increase in payment.

In the past, homeowners in this situation would simply throw the house on the market, realize enough of a profit to cover any prepayment penalties, and literally move on. But the soft real estate market isn't making this quite so easy any more - houses are not selling as quickly, and the home appreciation rates enjoyed in the past have moderated.

So the subprime homeowner is stuck - and many of these homes are falling into foreclosure, causing even more problems. As more and more loans are defaulting, mortgage lenders are forced to tighten up their lending standards across the board in response...making it tougher for a troubled homeowner to even refinance to get out of trouble. Many subprime lenders are feeling the pain, and in some cases, actually being forced to close their doors as they are hit with all the defaulted loans and foreclosed properties coming back home to roost.

How does this impact you?

In the short term, home loan rates are benefiting, as the stock market is taking a beating, causing money to flow into Bonds and Mortgage Backed Securities, which benefits home loan rates. But the longer term picture may spell higher interest rates ahead, as lenders have to absorb the cost of the loans that went belly-up, combined with the cost of increased compliance and accountability standards.

Now in many cases, the advice and loan strategy given to the client was perfectly appropriate for the client at the time they took out the loan...but the "perfect storm" of colliding economic events may have just worked against them. Yet unfortunately, many homeowners are paying a very steep price for what may have been poor advice and counsel given them at the time of their home purchase or refi. Now more than ever before, it is clear that it pays to work with a true professional, especially when your home is on the line. If you've ever thought it's too expensive to work with a real professional...just wait until you work with an amateur. The price paid is clear - and in this case, it's a very painful one.

Because of these events, credit and lending standards are tightening across the board, so it's a great time to get a "financial check up" - both you personally, as well as your clients, friends, family members and coworkers - even if they are not immediately in need of any home loan financing.

You know that I want to build relationships for the long run, not just to provide a "transaction" - so although you may not have a need for my home loan services at this time, I'd like to invite you to contact me for a review of your current credit and financial situation. There may be recommendations I can make now, that will ensure you are in the best possible shape to obtain the most favorable financing terms when the need does arise.

Feel free to forward this newsletter directly, or print out copies for your clients, friends and coworkers who are asking about the headlines. As always, simply give me a call or email - I am always glad to hear from you, and happy to answer any questions regarding this matter or any other way I can be of service to you.

The Week's Economic Indicator Calendar

Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.

Economic Calendar for the Week of March 19 – March 23

Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Tue. March 20
08:30
Housing Starts
Feb
1440K
 
1408K
Moderate
Tue. March 20
08:30
Building Permits
Feb
1560K
 
1571K
Moderate
Wed. March 21
10:30
Crude Inventories
3/16
NA
 
1180K
Moderate
Wed. March 21
02:15
FOMC Meeting
 
 
 
 
HIGH
Thu. March 22
08:30
Jobless Claims (Initial)
3/17
325K
 
318K
Moderate
Thu. March 22
10:00
Index of Leading Econ Ind (LEI)
Feb
-0.3%
 
0.1%
Low
Fri. March 23
10:00
Existing Home Sales
Feb
6.35M
 
6.46M
Moderate

The material contained in this newsletter has been prepared by an independent third-party provider. The content is provided for use by real estate, financial services and other professionals only and is not intended for consumer distribution. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, there is no guarantee it is not without errors.

www.jasondanielshomes.com

Three Ways to Flip Houses in a Down Market

by Jason Daniels

RISMEDIA, March 16, 2007-My team and I flip houses in Michigan, where the housing market is currently experiencing a significant slump. Wherever these dips in the market occur, they often discourage investors, particularly novice investors, from flipping, but you don't need to get discouraged. With the right adjustments, you can flip houses profitably in a depressed market.

I suggest three strategies for successfully flipping houses in a down market:

- Focus on foreclosures.
- Look for deeper discounts.
- Buy and hold.

Focusing on foreclosures

When the housing bubble in a particular area bursts or rapidly deflates, neighborhoods are often littered with homes that have had all the equity stripped out of them. While declining property values erode the equity in the property from one end, homeowners borrow against the equity from the other end, until nothing is left. The market now has a glut of properties with little or no equity.

In such cases, finding a potentially profitable property is more challenging. You may find yourself having to deal directly with banks and REO departments instead of buying properties at sheriff sales, auctions, and "fire" sales. When buying REO properties from banks, the trick is to have your financing in place and be able to act quickly to solve the bank's problem. You see, banks don't like to own properties. They like to own mortgages. So, if you can lessen the bank's loss and stop the bleeding, you may be able to snag a profitable property for yourself.

Negotiating with banks can be tricky, but the more homes they end up with in foreclosure, the more they need investors to step in and buy them. I discuss some of the techniques for buying REO properties in my upcoming book, Foreclosure Investing For Dummies, which is due to be released in June.

Buying at deeper discounts

When I flip houses in a rising or steady market, my goal is to earn at least a 20% return on my total investment. To determine how much I can invest in a property, I start with the price I think I can sell the property for after fixing it up and I divide by 1.2. For example, if I think I can sell a house for $200,000 after repairs and renovations, I divide $200,000 by 1.2 and come up with something in the range of $167,000. I then subtract what I expect to pay in repairs and renovations, agent commissions (to sell the house), and holding costs (utilities, taxes, and insurance for the duration of the project). This gives me a ballpark idea of how much I can pay for the house to earn a 20% profit. If I add up all my estimated costs and come up with $30,000, for example, I could then afford to pay up to $137,000 for this house I plan to sell for $200,000.

In a declining market, I might start by dividing what I think I can sell the house for by 1.3 instead of 1.2. In the example of a $200,000 house, then, I would give myself only about $154,000 to invest, so I would have $13,000 less to invest in the project to be fairly certain of earning a 20% profit. In other words, I would be looking to buy the houses for 10% less than I would normally pay. In our example, I would be able to pay $124,000 for the house I plan to sell for $200,000, because I probably wouldn't be able to sell it for $200,000 a month or two after fixing it up.

Buying and holding-the long-term approach

Some real estate investors adhere to the long-term, buy-and-hold approach as their core strategy. They buy real estate and lease it out for a steady cash flow. The tenants pay down the mortgage principal while the property increases in value, and when the investor is ready to sell, they can typically cash out a huge amount of equity that's built up in the property over the years. In addition, the property offers some nice tax write-offs.

Flippers, by definition, are not buy-and-holders, but when the market takes a dive, and you can't immediately sell a property for a profit, a temporary shift to the buy-and-hold strategy can help you ride out the slump. If you can lease the property for enough money to cover your monthly mortgage payments, utilities, insurance, taxes, and maintenance costs, you can hold onto the property without having to sell it at a loss. You can then wait until the market recovers to sell. If your not landlord material, this isn't for you, but if you can wait out the market on someone else's dime…now you're talking.

Another option is to live in the house yourself for a while, do the renovations over the period of time it takes for the market to rebound, and then flip it. This strategy requires a little more of a commitment on your part and usually is only an option for singles or for adventurous couples and families, but when you're facing the prospect of selling the house at a loss or taking on a little discomfort and inconvenience, discomfort and inconvenience may not seem so bad. If you already have a house, consider putting both houses on the market. If your current residence sells first, move into the investment property!

Regardless of which method you chose, the flipping process is basically still the same-you're simply stretching it out over a longer period of time. Although flipping is usually an "in- the-moment" investment designed for those who desire quick profits and instant gratification, you may need to adjust your strategy to accommodate shifts in the housing market. To rephrase something I heard recently about the state of Michigan, house flippers who are working in a declining market have two options: change or die. For you evolutionists out there, you can either evolve as a new species of house flipper or you can go extinct. No doubt, some will go extinct, but it doesn't have to be you. Adapt, survive, and thrive.

For additional tips on flipping in a slow market and other guidance on buying, renovating, and selling houses for a profit, check out Ralph Roberts' recent book Flipping Real Estate For Dummies  (John Wiley & Sons).

www.jasondanielshomes.com

FORE! It's that time of the year again

by Jason Daniels

The weather is getting warmer and the snow has melted off the the deep winter freeze we've had here in Colorado Springs.  It's spring golf season again.  Get your clubs dusted off and enjoy the early warm spring weather.  Below there is a list of Colorado Springs golf courses with links and information about each course.  I'm always looking for a reason to get out and golf, so if you want somebody to tee it up with just give me a call.  Also, if you are interested in owning a golf course property, I have a special database of homes located on golf courses here in Colorado Springs and would be hapy to e-mail it to you.  It's going to be another great golfing year!  www.jasondanielshomes.com 

Colorado Springs, CO Golf Courses
 
9 holes (Municipal)
900 E Espanola St
Colorado Springs, CO 80907-7746
(719) 385-6934
2 miles from center of Colorado Springs.
9 holes (Municipal)
900 E Espanola St
Colorado Springs, CO 80907-7746
(719) 385-6934
2 miles from center of Colorado Springs.
9 holes (Municipal)
900 E Espanola St
Colorado Springs, CO 80907-7746
(719) 385-6934
2 miles from center of Colorado Springs.
18 holes over 6,806 yards with a par of 71 (Municipal)
610 S Chelton Rd
Colorado Springs, CO 80910-2310
(719) 385-6911
3 miles from center of Colorado Springs.
Award-winning golf course
18 holes over 7,189 yards with a par of 72 (Private Non-Equity)
1 Lake Ave
Colorado Springs, CO 80906-4254
(800) 634-7711
3 miles from center of Colorado Springs.
Award-winning golf course
18 holes over 7,135 yards with a par of 71 (Private Non-Equity)
1 Lake Ave
Colorado Springs, CO 80906-4254
(800) 634-7711
3 miles from center of Colorado Springs.
18 holes over 7,700 yards (Private Non-Equity)
1 Lake Ave
Colorado Springs, CO 80906-4254
(800) 634-7711
3 miles from center of Colorado Springs.
18 holes over 6,980 yards with a par of 71 (Private Equity)
3333 Templeton Gap Rd
Colorado Springs, CO 80907-5737
(719) 473-1782
3 miles from center of Colorado Springs.
18 holes over 7,059 yards with a par of 71 (Private Non-Equity)
125 E Clubhouse Dr
Colorado Springs, CO 80906-4416
(800) 428-8886x4095
4 miles from center of Colorado Springs.
9 holes (Public)
3819 Janitell Rd
Colorado Springs, CO 80906-4109
(719) 226-2466
4 miles from center of Colorado Springs.
9 holes (Private Non-Equity)
4500 Kissing Camels Dr
Colorado Springs, CO 80904-1063
(719) 632-5541
4 miles from center of Colorado Springs.
9 holes (Private Non-Equity)
4500 Kissing Camels Dr
Colorado Springs, CO 80904-1063
(719) 632-5541
4 miles from center of Colorado Springs.
9 holes (Private Non-Equity)
4500 Kissing Camels Dr
Colorado Springs, CO 80904-1063
(719) 632-5541
4 miles from center of Colorado Springs.
9 holes (Public)
1850 Tuskegee Pl
Colorado Springs, CO 80915-1601
(719) 597-2637
6 miles from center of Colorado Springs.
9 holes over 1,077 yards with a par of 27 (Public)
1850 Tuskegee Pl
Colorado Springs, CO 80915-1601
(719) 597-2637
6 miles from center of Colorado Springs.
18 holes over 7,107 yards with a par of 72 (Public)
3525 Tutt Blvd
Colorado Springs, CO 80922-2504
(800) 485-9771
6 miles from center of Colorado Springs.
9 holes (Public)
6865 Galley Rd
Colorado Springs, CO 80915-3843
(719) 597-5489
7 miles from center of Colorado Springs.
18 holes over 6,833 yards with a par of 72 (Private Non-Equity)
401 Glasgow Ave Bldg 1054
Colorado Springs, CO 80914-1112
(719) 556-7233
7 miles from center of Colorado Springs.
18 holes over 7,194 yards with a par of 72 (Public)
9850 Divot Trl
Colorado Springs, CO 80920-1400
(719) 594-9999
10 miles from center of Colorado Springs.
18 holes over 6,407 yards with a par of 72 (Public)
10150 Rolling Ridge Rd
Colorado Springs, CO 80925-9544
(719) 382-3649
12 miles from center of Colorado Springs.
18 holes over 7,276 yards with a par of 72 (Public)
345 Mission Hill Way
Colorado Springs, CO 80921-3237
(719) 488-0900
14 miles from center of Colorado Springs.
18 holes over 7,300 yards with a par of 72 (Private Non-Equity)
13850 State Highway 83
Colorado Springs, CO 80921-3115
(719) 494-1222
14 miles from center of Colorado Springs.
18 holes (Public)
7800 Titus Blvd.
Fort Carson, CO 80913
(719) 526-4122
8 miles from center of Colorado Springs.
18 holes over 7,301 yards with a par of 72 (Private Non-Equity)
Building 3170
U.S.A.F.A
USAFA Academy, CO 80840
(719) 333-2606
12 miles from center of Colorado Springs.
18 holes over 6,519 yards with a par of 72 (Private Non-Equity)
Building 3170
U.S.A.F.A
USAFA Academy, CO 80840
(719) 333-2606
12 miles from center of Colorado Springs.
18 holes over 8,165 yards with a par of 72 (Public)
9650 Antler Creek Dr
Peyton, CO 80831-8494
(719) 494-1900
15 miles from center of Colorado Springs.
18 holes over 6,709 yards with a par of 72 (Private Non-Equity)
18945 Pebble Beach Way
Monument, CO 80132-8971
(719) 481-2272 x243
19 miles from center of Colorado Springs.
18 holes over 6,617 yards with a par of 71 (Public)
100 Lucky Lady Dr
Woodland Park, CO 80863-7704

19 miles from center of Colorado Springs.
18 holes over 6,397 yards with a par of 71 (Public)
19255 Royal Troon Dr
Monument, CO 80132-2889
(719) 481-1518
19 miles from center of Colorado Springs.

The most expensive home in the world tops $155 million for a mega mansion home designed by exclusive Yellowstone Club in Big Sky, Montana real estate. This ultra luxury home is named “The Pinnacle” and Forbes Magazine calls it “The World’s Most Expensive Home.”

The Pinnacle eclipsed the $139 million “Updown Court” in Windlesham, England, which held the most expensive title. Donald Trump’s $125 million renovated luxury estate in Palm Beach, Florida, is next in line. 

Locati Architects, Jerry Locati, from Bozeman, Montana, has spent the last year designing the luxury estate home as one-of-a-kind. Tim Blixseth, real estate and timber billionaire, is the developer with grand ideas of the mega home and the Yellowstone Club resort.

This huge mansion includes 160 acres of land, 53,000 square feet home sitting on the most prized property in the resort.

The most expensive home in the world, includes four guest cottages, will be built in the center of the Yellowstone Club ski resort with dramatic views.

The Pinnacle home will have the customary home theater, three elevators, a bowling alley, a private-covered gondola from ski run to the home, an amazing 8,000 bottle wine cellar and an indoor-outdoor pool.

A large pond and stream will link the four guest houses together.

The rustic exterior luxury home is crafted out of stone, ample floor-to-ceiling glass and includes a huge underground 30 – 40 car garage.

Heated driveways, walkways and patios will melt the large amount of snowfall in the Lone Peak area, up to a half a mile from the home for sale.

There are already several invited high profile home buyers with expressed interest in the purchase of the World’s Most Expensive Home. The $3,000 per square foot property could be finished in as soon as 14 months. Source: ABC News

You can search the nationwide MLS for the most expensive homes in your neighborhood at my website www.jasondanielshomes.com

Mortgage Market Update

by Jason Daniels
Last Week in Review

YOU KNOW WHO IS LOOKING FOR STOCKS? NOBODY! Last week's volatility in the stock market stabbed at the hearts of both the Stock and Bond markets, with home loan rates swinging higher and lower throughout the course of the week. Economic news releases took a backseat to the massive movements in Stocks. Amazingly, when all the smoke cleared, home loan rates were unchanged to slightly improved for the week overall.

What happened? First, remember that the Stock and Bond markets compete for the same investment dollar. This means that when Stocks are worsening and investors are selling off their holdings, some of that money gets moved over into the Bond market, which helps home loan rates improve. And vice versa, when Stocks move higher and investors are buying into the Stock market, some of that money comes back out of Bonds, which causes home loan rates to worsen.

Last week's volatility began with the Chinese Stock market plunging, setting off a string of worldwide stock selling. Our own Stock market was ripe for a reversal lower, and money flowed out of Stocks and into Bonds, helping home loan rates improve. The next day, Stocks began to rebound, moving money back out of Bonds and causing home loan rates to worsen. But the "see-saw" action continued for the balance of the week - and may not be done yet, causing high amounts of volatility in Stocks and Bonds - and therefore, home loan rates.

AND ALTHOUGH WEARY INVESTORS MAY NOT BE LOOKING FOR STOCKS...MAYBE THEY ARE LOOKING FOR A NICE NEW CAR THIS SPRING. IF YOU'RE IN THE MARKET FOR A NEW VEHICLE, DON'T MISS THIS WEEK'S MORTGAGE MARKET VIEW.

Forecast for the Week

So what's the story with the Stock market? The increase in volatility, and even the recent decline, is actually perfectly normal. The steady seven month climb we have seen in Stocks was unusual, and the current 1000-day streak without a 10% decline is the second longest in history. So looking ahead, it would not be a surprise to see Stocks find their way even lower over the near term, before regrouping and making another run at new highs. The fact that outflows from Stocks are being "parked" into Bonds is a long term plus for Stocks, due to the temporary nature of this trade. This also tells us that Bonds and home loan rates will be a short term beneficiary, but will be adversely affected once Stocks start to rebound.

This week holds only one potentially major market-moving economic release, the February Jobs Report. Initial estimates are calling for the creation of 100,000 new non-farm jobs, down from January's report of 111,000 new jobs. The chart below shows some mixed signals for Bonds, with a nice "rising pennant" formation - typically good news for Bond prices and home loan rates; but also shows that Bonds are "overbought" and ripe for a reversal lower. For now, the technicals will take a backseat at least until Friday, as Stocks seem to be driving all the action for Bonds and home loan rates.

Chart: Fannie Mae 5.5% Mortgage Bond (Friday Mar 02, 2007)
Japanese Candlestick Chart

Colorado Springs Real Estate Market Update - February 2007

by Jason Daniels
 
LISTING AND SALES SUMMARY
For the Colorado Springs Area
February 2007
 
 
All Sales
Existing Homes
MONTHLY SUMMARY
Feb 2006
Feb 2007
% + or -
Feb 2006
Feb 2007
% + or -
SINGLE FAMILY/PATIO HOMES:
 
 
 
 
 
 
New Listings
1,507
1,530
1.5
1,332
1,437
7.9
Sales
750
669
(10.8)
654
587
(10.2)
Ave. Sales Price
$248,330
$255,017
2.7
$233,259
$237,414
1.8
Median Sale Price
$205,000
$214,950
4.9
$196,000
$205,000
4.6
Total Active
4,171
5,202
24.7
3,428
4,403
28.4
CONDO/TOWNHOMES:
 
 
 
 
 
 
New Listings
226
268
18.6
197
211
7.1
Sales
108
100
(7.4)
89
83
(6.7)
Ave. Sale Price
$152,278
$182,319
19.7
$135,918
$162,034
19.2
Median Sale Price
$131,500
$143,950
9.5
$120,000
$130,000
8.3
Total Active
703
973
38.4
494
686
38.9
CUMULATIVE YTD SUMMARY
Jan-Feb 2006
Jan-Feb 2007
% + or -
Jan-Feb 2006
Jan-Feb 2007
% + or -
SINGLE FAMILY/PATIO HOMES:
 
 
 
 
 
 
New Listings
3,043
3,244
6.6
2,701
2,929
8.4
Sales
1,425
1,341
(5.9)
1,221
1,148
(6.0)
Ave. Sales Price
$249,955
$254,043
1.6
$231,384
$236,011
2.0
CONDO/TOWNHOMES:
 
 
 
 
 
 
New Listings
481
537
11.6
404
427
5.7
Sales
204
232
13.7
171
182
6.4
Ave. Sales Price
$146,956
$167,403
13.9
$133,119
$151,346
13.7
 
 
 
 
What Does This Mean?
 
We are seeing a slightly decreased number of sales from this time last year, and there are 24.7 % more listings on the market.  The statistics show the market has slowed a bit, but is still good compared to the national average.  Buyers now have more choice and can be more selective.  Sellers need to make sure their homes are priced correctly and are in good condition to be competitive.
 
Now is still a great time to buy with more selection and interest rates still at historical lows.  It is also a great time to sell before more listings hit the market and increase the competition this spring.

 

Meeting 80% of Today's Buyers

Did you know that over 80% of today's home buyers are using the Internet to find their next home?  The New York Times recently found that the majority of buyers research on the internet because of the availability of good home pictures and compelling virtual tours.  The more photos a listing can display, the more interest an online ad can generate for a seller. 

If you are thinking of listing your home with an agent, talk with us about our web marketing plan and let us show you how we can make your home stand apart from the crowd!

 

Protecting Your Home During a Freeze

Here are a few tips to keep your home safe during a freeze.

1:   Stop ice-dams
Heavy snow and ice can do a lot of damage to your roof - as it builds up and as it melts. Ice dams are when ice on your eaves blocks water from draining and the water is forced under the roof and into your attic or down the sides of your walls.

To prevent them, keep your attic well-ventilated to maintain a temperature close to that of the outdoors. A warm attic melts snow on the roof, causing water to run down and refreeze at the roof's edge, where it's much cooler. You should also make sure the attic floor is well-insulated so that heat rising into the attic is minimized.

2:   Protect your pipes
Frozen pipes are one of your home's major vulnerabilities.  To keep your pipes from freezing, wrap your main shut-off valve in insulation.  You'll also want to open hot and cold faucets enough to let them drip slowly. By keeping water moving through the pipes, you'll prevent freezing.

3:   Seal your drafts
Sealing your drafts can save you 20 percent on your heating bills, according to the Alliance to Save Energy. You can use incense or a candle to test for drafts around your windows or doors. A drifting line of smoke, rather than a straight one, could indicate a problem.

If the putty in your windows is dry and cracked, add newer sealant. Seal any visible cracks with the weather stripping or cloth.  But remember, you don't want to completely button up your home. When you have all your heating equipment running, you may need to get some fresh air into that house once in a while.

www.jasondanielshomes.com

Displaying blog entries 1-6 of 6

Share This Page

Contact Information

Photo of Jason Daniels & Associates Real Estate
Jason Daniels & Associates
Jason Daniels & Associates at RE/MAX Millennium
9362 Grand Cordera Pkwy Suite 100
Colorado Springs CO 80924
(719) 966-1500
(888) 351-1099