Timeshares 101

"Timeshare" used to be a dirty word, and it still leaves a bad taste in many mouths. Say the word to some folks and they begin conjuring up images of a group of people who could make used car salespeople look like amateurs.

Time has changed the timeshare industry, softened its edges and blurred its old, shyster image.

What is a Timeshare?

The word "timeshare" describes a person's right to use a vacation property during a specified block of time each year. The property is typically a condo in a resort complex and your access may be as part owner or on a lease-type basis, depending on the contract. Timeshare units typically feature "at-home" amenities, such as fully furnished kitchens and laundry rooms, and they range in size from studios to multi-bedroom units.

Types of Timeshares

Timeshare companies offer variations when it comes to access. The different programs include:

• The choice of vacationing the same week each year.
• A more flexible plan wherein you reserve the particular time slot you want on an annual basis.
• Choosing a different location every year.

Advantages of Owning a Timeshare

The biggest advantage of a timeshare over a traditional vacation home is that you pay only for the time you use it. Other advantages include:

• Maintenance: There is none. Your maintenance fee pays for all the upkeep.

• Ease of planning: When you own a timeshare, you always know when you'll be vacationing and where.

• Vacations are less expensive: When you use the property's kitchen, you'll save the money that you would have otherwise spent eating in restaurants.

• Flexibility: Use the timeshare company's exchange program to swap locations with other owners. This way you can visit a new place each time you vacation.

Disadvantages of Owning a Timeshare

• Fees: Timeshare maintenance fees can run up to $500 a month and frequently rise 4 percent every year.

• Value: Timeshares don't hold their resale value like traditional residential real estate purchases.

• Financial: Paying upfront for your vacation and paying fees on time may be challenging in a bad economy.

• Trading with others: To trade vacations with other timeshare owners you'll need an attractive location and time period. If you don't, you may find it impossible to locate someone willing to trade with you.

What to Consider When Shopping for a Timeshare

Timeshare sales people are really good at what they do. They may offer you a free night at the resort, and all you have to do is attend their tour or presentation. The pressure to buy is subtle yet high. Resist their urgency and resist the temptation to buy immediately because it's a "limited-time offer." Think before you sign on the dotted line. The Federal Trade Commission suggests that you consider the following:

• Ask questions. While the salespeople should be able to answer your questions, talk to current owners as well. How often do the maintenance fees increase? Are there supplemental fees that you need to know about? How well managed is the resort?

• Check the timeshare company's record with the Better Business Bureau and the attorney general of the state in which it's located.

• Have your attorney go over the contract before you sign it.

Remember that the cost of the timeshare is higher than the amount offered by the salesperson. Add to that figure the interest, taxes and maintenance fees. Oh, and don't forget to factor in the cost of airfare to and from your timeshare.

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Safety for Children: A Homebuyer's Guide to Kids' Rooms and Play Areas

Children alter how families look at homes during the home buying process. A family with children has to consider extra bedrooms, extra bathrooms, and safe places for children to learn and play. Indoor and outdoor recreation should be fun and comfortable, while safety should always remain the highest priority.

Kids' Rooms

Kids' rooms should be large enough for children to grow in. A tiny room may work for a 6-year-old, but could be terribly cramped for a teenager. Kid's rooms should include the following:

• Room to grow
• Accessibility
• Storage space
• A safe exit for emergencies

Families generally want kids' rooms on the same level of the house as the master bedroom. While a teenager might accept, or even want, a basement bedroom, small children's rooms should be close enough for you to access them quickly at night.

Consider the amenities you want in kids' rooms. Bookcases, closet organizers, and other storage space can be a real asset. Some solutions can be added after the home is purchased, but a house with built-in storage can be a plus.

Safety is also a consideration: In case of fire or similar emergency, you'll want to make sure that your children will be able to safely escape their bedrooms. Children's Hospital Boston reports that "over half of children ages five and under who die from home fires are asleep at the time of the fire," but also that "children in homes without working smoke alarms are at greater risk of fire-related death and injury in the event of a fire." This means that you should consider several fire escape routes when looking at the bedroom configuration in your prospective home, but you should also carefully assess the number, location, and condition of smoke detectors in your home no matter where the children will sleep.

Family Rooms and Dens

A home with a family room and a separate, more formal living room will let you relax while the kids are watching shows or host guests while your kids enjoy a minefield of Legos® on the floor in the adjacent room. When the children grow older, the toys can be picked up and the family room can become a place for study, arts and crafts, or hanging out with friends. A den can become a home fitness center, a library, or a guest room when your children fly the coop.

Play Sets and Play Areas

Outdoor playsets and play areas can be real bonuses when families with children go house hunting, but always keep safety in mind. Playgrounds and play areas are only an advantage if they are safe areas for children. While your kids may be delighted by a ramshackle tree house, your first thought should be whether or not it's safe.

Generally speaking, store-bought playsets are safer than DIY play areas slapped together by an inexperienced handyman. Having said that, some amateur-built jungle gyms are well thought-out, inventive, beautifully-constructed, and safe enough for children to use. The U.S. Consumer Product Safety Commission (CPSC) publishes a broad variety of safety information on playground construction, materials, and components.

When building or buying a play structure, think about its placement in relation to your home and the street. Constant supervision is important whenever children play, so make sure the space is visible from where you plan to spend time. The National Program for Playground Safety also recommends watching out for age-inappropriate equipment, hard surfaces, poorly-maintained equipment, and protuberances where children can become trapped.

Swimming Pools

At first glance, a swimming pool seems like a great idea for families with children - it sounds great to have pool parties or just cool off on a hot day. Take a step back, however, and consider swimming pool safety.

According to the U.S. Consumer Product Safety Commission, approximately 350 children under the age of five drown every year in swimming pools - more than three times as many as drown in all other areas of the home (like bathtubs, hot tubs, landscape ponds, and other water containers). A swimming pool safety cover is essential for a backyard pool, but it isn't enough. Many other precautions are recommended to make swimming pools safe places for children:

• Constant parental supervision
• Door alarms
• Safety fences
• Underwater motion detectors
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• Even all of these safety precautions don't completely guarantee your child's safety around swimming pools. Many parents decide the allure of a swimming pool isn't worth the safety issues. Those parents who do purchase a home with a swimming pool must commit to enclosing the pool securely and remaining vigilant as long as they have children in the home.
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Safety, Comfort and Growing Room

Family homes should be safe and comfortable. While children do need practical and fun spaces to relax, play, and grow, parents should also consider safety when looking for the place that their children will call home. If you're shopping for a home for your young children, think ahead to what they'll need when they're in high school. If your family might grow, think about whether you need extra space now or whether you can plan for a future addition. Consider whether the pool, playground, or tree house you're looking at is more likely to enrich your children's lives or endanger them. When you look at potential homes with your kids in mind, you can choose a home that offers the promise of a safe and enjoyable childhood.

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Buying Land: 5 Things to Consider

Whether you're building a residence, need extra storage, or are purchasing as an investment or farm property, the time to buy land has never been better.

It's still a buyer's market in many areas, yet many sources claim the housing market is turning a corner. In fact, due to the election year and historically low interest rates, many areas are experiencing bidding wars that have not been seen since before the economic recession. Combined with an aging existing home inventory, this new flurry of activity has prompted many homebuyers to consider land for their next purchase.

While the decision to buy land may be easy, the process is certainly not.  Here are five tips for buyers interested in purchasing land:

1. Walk the property line. Request a plot plan of the property and walk the entire border line. Make sure your agent and the seller are clear with you about where the property begins and ends and where the site setbacks are. Many first-time land buyers are not familiar with judging acreage and may not always immediately know what land is included in the listing. Alleviate any confusion from the beginning by having the seller or agent walk the property line with you.

2. Research the neighborhood. Get to know the surrounding neighborhood. What does the property line border? Another lot, a farm, a subdivision? What is the nearby land being used for? If you're planning to build a home on the property, be sure to check the surrounding properties for potential noise or construction. If you plan to purchase farm or horse land, you'll want to be sure you don't have any ground contamination or runoff issues from surrounding properties that could impact your future crop or livestock.

3. Check for utilities. Does the property have any utilities set up? Was there any soil or percolation testing done for sewer or any cost estimates for installation of utilities? Is the property zoned for horses, and do you need any permits? In most instances, your real estate agent will be familiar with these issues and will ask the seller on your behalf. However, the buyer should be aware of them and any possible costs that may arise after the sale so he or she can work them into the offer price.

4. Ask about taxes, HOAs and assessments. Do you know how much the property taxes are? Are there any existing assessments on the land? Does the lot or land reside in a common interest community with a homeowners association? All of these factors should be considered when buying property and should determine your price when making an offer.

5. Get the right help. Use an experienced real estate agent and lender. Land sales are different than home sales, and agents who primarily sell land are more difficult to come by. An experienced agent will know the right questions to ask and can help narrow your search significantly. You may also find that your loan options are more limited than if you were buying an existing home. If you're planning to build, you may want to consider a lender who specializes in construction loans and can finance the entire project. Be advised, though, that many lenders shy away from offering full financing for undeveloped land or unfinished construction. In these cases, because there is no collateral and greater risk to the lender, you may find you need a larger down payment or have to settle for a higher interest rate on your loan.

With the right amount of research, preparation and support, buyers should have no difficulty finding the property of their dreams at a reasonable price.

*** For all the real estate tools and the only Realtor you will ever need, visit TulsaHomeGuru.

Lead-Based Paint: Keep Your Family Safe

Lead is a metallic element found in rocks and soil virtually everywhere in the world. Tiny lead particles can be toxic if individuals inhale or swallow them. Over time, those inhaled or ingested lead particles may accumulate in blood, bones and soft tissue. The lead can cause permanent damage to the central nervous system, kidneys, brain, and red blood cells. This is lead poisoning, which can ultimately lead to death.

Infants and small children are particularly vulnerable to the effects of lead poisoning. The Environmental Protection Agency (EPA) reports that lead can harm children more readily for three reasons.

First, "babies and young children often put their hands and other objects in their mouths. These objects can have lead dust on them." Additionally, "children's growing bodies absorb more lead," according to the EPA, and "children's brains and nervous systems are more sensitive to the damaging effects of lead."

Lead-Based Paint Dangers

Lead-based paint is one of the biggest sources of lead poisoning. "The federal government banned lead-based paint from housing in 1978," reports the EPA, while "some states stopped its use even earlier." While lead's toxic effects were understood early in the 20th century, it took decades before it was phased out of use in the United States.

Lead-based paint in good condition typically doesn't pose a risk. Trouble arises when the paint ages and chips or flakes. Small children might eat those paint chips and run the risk of lead poisoning.

Also, if lead-based paint is scraped, sanded, or heated with an open flame (as it would be in the process of paint stripping for the purpose of renovating or remodeling), then lead particles can become airborne and inhaled. Just as bad, those particles can land in carpet fibers and fabrics where they can gradually recirculate.

Be particularly mindful about using a vacuum to clean up paint chips; lead can penetrate your vacuum's filter system and recirculate through the air exhaust stream.

Government Efforts to Reduce Lead Exposure

Fortunately, the government has come to understand the potential dangers of lead-based paint. By 1960, lead-based paint was used in only one-third of all American homes. By 1977, the United States government banned lead in many household products as part of its Lead-Based Poisoning Prevention Act. Since then, federal and state agencies, including the Center for Disease Control and Prevention (CDC), the Department of Housing and Urban Development (HUD), and the EPA have taken additional steps to get lead out of paints, drinking water, automotive fuel, and other products and to minimize the dangers to people living with lead in older homes.

The EPA passed a rule in April of 2010 requiring renovators of 1978 and older homes to obtain training (for individuals) or certification (for firms) for "lead-safe work practices." Renovators aren't the only people with a legal responsibility to help prevent lead exposure:

• Landlords must share lead-based paint information with potential tenants of structures built before 1978. They must disclose "known information" about lead in the building prior to leases becoming effective.

• Sellers of 1978 and older homes are required to include a disclosure of lead-based paint hazards on sales contracts and to disclose "known information."

• Buyers of 1978 and older homes are entitled to have a check for lead performed within 10 days of being notified of the potential for exposure.

A pamphlet detailing some ways to minimize lead exposure in the home is available from the EPA. For more EPA recommendations, you can call 1-800-424-LEAD.

Testing for Lead-Based Paint

If you have reason to suspect lead-based paint is in your home, have it tested by a qualified laboratory. Contact local, county or state health and environmental services for information or referrals to certified testing laboratories. Home testing kits can be unreliable, but the government works hard to make testing affordable and accessible to residents of older homes. A booklet about how to test for lead is available from the EPA.

Lead Paint Removal

If you have lead paint in your home, and if it's peeling, chipping or excessively aged, have it removed immediately (if it's still in good condition, it's probably still harmless). Lead paint removal can be a costly and time-consuming process, but you might have to endure much dearer costs by leaving it alone and exposing yourself and your family to its very real dangers.

Call on a qualified, experienced professional to handle your lead paint removal. If you insist on doing it yourself, consider these important tips:

• First, conduct all testing for lead-based paint thoroughly and accurately.

• Be sure you meet the EPA's requirements for training before you begin.

• Move your family (pets, too) off the premises for the entire procedure. Do not move back home until the job is finished and the area is cleared.

• Make sure any pregnant (or soon to be pregnant) women are out of the house long before you start the paint removal process.

• Do not use belt sanders, propane torches, heat guns or dry sandpaper. These tools will spread lead particles into the air, creating an inhalation risk.

• Note that lead dust can remain in the air and throughout your house long after the procedure is completed.

Removal Alternatives

If your paint is still in good (intact) condition, you may be able to eliminate any potential dangers by covering it with wallpaper or simply repainting the surface with safe (non-lead) paint. Another alternative is to install a layer of wallboard over the surfaces painted with lead-based paint. Consult with a qualified professional for evaluation or paint removal.

The long-term danger of exposing growing children to lead is very real, but avoidable. With care, you can protect yourself and your family from lead by having your home tested for lead-based paint if it was built before 1978, undertaking any renovations only after obtaining EPA-certified training, and using trained professionals for lead-paint removal. If you think there's been lead-based dust or chipping paint in your home, have a blood test performed on any vulnerable family members. Therapies are available to help patients with acute lead poisoning, but the safest thing to do is avoid exposure in the first place by making the home safe.

*** For all the real estate tools and the only Realtor you will ever need, visit TulsaHomeGuru.

Is a Debt Consolidation Home Equity Loan Right for You?

Maybe you've indulged in impulse shopping one too many times or actually found yourself in an emergency where paying with a credit card was the only option. Either way, if you're a homeowner who is struggling to pay those monthly bills, debt consolidation could make sense for you.

Homeowners who have equity in their homes but whose debt load has become difficult to manage are good candidates for debt consolidation loans. A debt consolidation loan allows you to pay off high-interest consumer debt, such as credit cards, by centralizing those balances with one lender in one loan. This means that you can merge a home mortgage payment, a car payment, a student loan payment and credit card debt into a single larger loan. One way to consolidate is through a home equity loan.

What is a Home Equity Loan?

Equity is the difference between the value of your home and the money you still owe on your mortgage. Sometimes referred to as a second mortgage, a home equity loan allows you to borrow against the equity you have built up in your property. With a home equity loan, your home is used as collateral for your debt consolidation loan. This type of debt consolidation allows you to benefit from mortgage interest rates that are typically lower than rates for other types of debt.

Another benefit of a home equity loan is that in most cases, interest paid is fully tax deductible.

Uses for Consolidation Loans

A debt consolidation loan lets you lower your monthly payments by combining your debt into one loan. With lower monthly payments, you can strengthen your cash flow, which will free up money for other uses. The surplus can be used to pay down your mortgage principal, allowing you to pay off the total amount owed in a shorter period of time.

Also, debt consolidation loans often have longer terms than other loans, giving you more time to pay off the money you borrowed.

People get home equity loans for a variety of reasons, including making home improvements, paying for college education or medical expenses, or buying a new car. However, home equity loans should not be used to pay for clothing, entertainment or minor repairs, according to Kathy Sweedler, consumer and family economics extension assistant with the University of Illinois.

Costs of Refinancing Home Equity Loans

While you might hear a lender advertise for "no-cost refinance," often no-cost refinancing simply means the costs have been included in the amount of the loan.

Home equity loans usually have the same costs and fees applied to them that buying or refinancing a house does. When you refinance your home equity loan, you will often pay closing costs, application fees, attorney review fees, appraisal fees and more. Some lenders will waive these fees. However, some costs may still apply.

Disadvantages of Debt Consolidation Using Home Equity Loans

Because you're using your home as collateral with a home equity loan, the primary disadvantage of debt consolidation this way is that, if you can't make the payments, your house may get foreclosed. According to Sweedler, being 60 or 90 days late on a payment can put your home into foreclosure.

Transferring all of your debt to one lender can have some drawbacks. Consolidation loans can keep you in debt for much longer periods. Additionally, if the value of your home decreases and you need to sell it, you may end up owing more on your home than it's worth.

Before signing on the dotted line, be sure you know the terms of the loan, the interest rate and payment amount, the points and fees and what the penalties are for late or missed payments. Also, check with your lender to find out if your home loan has a balloon payment - a large sum of money due all at once. If you feel you've made a mistake, you have up to three days to cancel the loan after signing. This can be done for any reason and must be done in writing.

*** For all the real estate tools and the only Realtor you will ever need, visit TulsaHomeGuru.

Swimming Pools: Do They Add Value or Turn Buyers Off?

Sparkling blue water, especially when it's lit up at night – what's not to love about a swimming pool in your backyard? If you have one, you may feel blessed. If you don't, and are considering adding one, hang on a minute.

Who Wants a Pool?

According to Better Homes and Gardens Real Estate, middle-aged buyers with teenagers at home comprise the biggest market segment for homes with swimming pools. This makes sense when you consider how dangerous an unfenced pool is for families with toddlers.

Another segment of homebuyers who may find a pool desirable are younger couples who entertain frequently. There has been a lot of emphasis over the past few years on outdoor entertainment areas, including outdoor kitchens, fire pits, fireplaces and seating areas. A swimming pool frequently figures into these plans.

Location Always Counts

"Location, location, location" may just be a trite real estate mantra, but it is important nonetheless. If you live in Hawaii, Florida or the Southwest, a pool is far more in demand than for homes in Minnesota, Alaska or North Dakota.

Then, drill down your location even further. Even if you live in the desert climate of the Southwest, if there's a community pool a block away, installing a pool at home may be a waste of money. On the other hand, if your neighbors all have pools, you should probably consider putting one in.

How Big is Your Lot?

Lot size is a huge factor in deciding whether or not to have a swimming pool installed. Remember, if you have a small lot and the pool takes up the entire backyard, you are removing your home from consideration by buyers with small children and buyers who garden or entertain. Pet owners and young families typically want grassy areas where their pets and kids can play safely. Many seniors like to putter in the yard. If there is no room for any backyard activity other than swimming, you narrow the buyer field dramatically.

What is the Home's Value Right Now?

One of the most important factors to consider when thinking about adding a pool as a home improvement project is to not over-improve for the neighborhood. If you own a modest tract home in a neighborhood of similar homes, a pool may be overkill. The value of your home can only rise to that of the most expensive home in the area.

Owners of luxury homes in higher-priced neighborhoods with roomy backyards that appeal to buyers looking for a certain lifestyle may be able to justify the expense of installing a swimming pool. In fact, if you own a luxury home without a pool, you may lose buyers.

Type and Condition of the Pool

It should probably go without saying: If the pool is in poor condition or dirty, it will not add value to the home. If the pool is outdated, it won't add value. If the pool hasn't been maintained, the appraiser may even deduct from the home's value, according to Tim Page, owner of Appraisals by Page in Spokane, Washington. He suggests that if your pool is of the above-ground variety, it is considered personal property and it won't factor into the home's value. Be that as it may, if it is in poor condition it may turn off buyers, so take it down.

Factor in the Ongoing Cost of a Pool

Ongoing home maintenance costs are a turn-off for many buyers, and a pool may be a maintenance nightmare for them. Aside from the cost of pool installation, ongoing maintenance tasks such as heating and cleaning the pool, as well as the ongoing cost of a swimming pool, may be prohibitive to many buyers.

Does a Pool Add Value?

Most real estate agents will tell you that pools do not add value to a home, and for the most part this is true. What value a pool may add is small – typically about 8 percent of the home's value, according to the National Association of Realtors® National Center for Real Estate Research. The margin of increase is larger for homes in the southern U.S., Florida and Hawaii.

The decision to install a swimming pool should be based on your personal lifestyle and desire, not whether it will add value to the home.

*** For all the real estate tools and the only Realtor you will ever need, visit TulsaHomeGuru.