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Home Property Tips

4 Pricing Tricks to Sell Your Home Faster

Setting the right price is as much about knowing how buyers think as it is about how much the property is worth. By Jonathan Clements of The Wall Street Journal.

If you're selling a car or a house in today's sluggish economy, make sure the price is right.

Americans are constantly buying stuff. But most of us don't do a whole lot of selling — which means we don't have much experience at setting prices.

Want to improve your odds of finding a buyer? As you try to unload your car or your home, consider these four pricing tricks.

Looking slim. We all know that $1.99 is barely less than $2. Yet retailers continue to use this trick, because there's ample evidence it works.

"When we look at prices, we make judgments in a fraction of a second," explains Manoj Thomas, a marketing professor at Cornell University. "We read from left to right. We anchor our judgment on the first thing we see."

For instance, if you're trying to sell your old car that you think is worth $8,000, you might set the price at $7,999. Potential buyers will read the seven first — and have a sense the car is cheaper than it really is.

Alternatively, you might start at $8,222 and then quickly drop the price to $8,111. One study of price comparisons found that, if the left digits are the same, buyers will focus on the right-hand numbers.

At that point, buyers perceive the discount to be larger if those right numbers are declining from, say, two to one rather than from nine to eight. Even though the decline is the same in dollar terms, "people think they're getting a better deal," says one of the study's co-authors, Robin Coulter, a marketing professor at the University of Connecticut.

Stacking up. As buyers check out your car or your house, they'll have in mind a price they are willing to pay. The good news: You can influence that price.

"You should list higher than you're willing to accept," says Alan Cooke, a marketing professor at the University of Florida. "If you ask a high price, people use that as information in setting their reference price. But there's also evidence that, if you set a price that is implausibly high, the impact will be less than if you set a price that's more reasonable."

In addition, you can affect the reference price of buyers by, for instance, telling them your car's book value or sharing the price of competing properties in the neighborhood. The obvious caveat: Pass along this information only if the comparisons are in your favor.

Sending messages. Imagine you're selling your house, which you figure might fetch a little less than $600,000. A round number, such as $595,000, will convey quality, while a precise number, such as $595,385, will indicate a bargain.

The reason: We associate precise numbers with lower-priced goods. A precise number also may signal that you have given a heap of thought to the price and you aren't inclined to negotiate.

Trying to settle on an asking price for your home? "If it's a new development and you're trying to give the impression of prestige, you would want to go for the round number," advises Vicki Morwitz, a marketing professor at New York University. "But if you're going for the quick sale and you want to give the impression of a bargain, you would want to go for the precise number."

Cutting prices. In today's housing market, many homeowners are struggling to find a buyer.

Thinking of dropping your asking price? Suppose that, as in the above example, you initially asked $595,385. If you lower the price to, say, $578,495, potential buyers may perceive the price drop as relatively modest.

"You want to make the computation as easy as possible," Cornell's Thomas says. "If you use digits that make computation difficult, it will lead to a perception of a small difference."

What to do? You might specify the dollar discount — or, alternatively, lower the price from $595,385 to maybe $580,385 or $575,385. That way, it will be easy for buyers to calculate the price drop.

 

Ppaerwork Eased in Loan Modification Program

The Obama administration is trying to simplify the paperwork for people seeking lower home-mortgage payments in an effort to avert more foreclosures.

The Treasury outlined new guidelines Thursday aimed at streamlining requirements for mortgage relief under the administration's Home Affordable Modification Program launched a year ago.

The guidelines specify that borrowers must provide three items to loan servicers, the companies that collect mortgage payments: a form requesting a loan modification, authorization for the servicer to seek tax information from the Internal Revenue Service and evidence of income, such as two recent pay stubs. Previously, some servicers have asked borrowers to fax in copies of their tax returns. Borrowers sometimes couldn't find the needed tax forms or complained that servicers repeatedly lost material faxed to them.

The previous documentation requirements were "somewhat overwhelming" for some borrowers, says Morgan McCarty, head of mortgage servicing at Regions Financial Corp., a banking company based in Birmingham, Ala.

The Treasury also said that, effective June 1, servicers must collect the information before starting borrowers on three-month "trial" loan modifications, during which borrowers must show they can make the payments before being granted a permanent reduction in their loan costs. Many servicers have been starting trial modifications based on unverified information provided orally by the borrower, only to find later that the borrower wouldn't or couldn't provide documentation.

As of Dec. 31, about 900,000 borrowers had been given trial modifications but only 66,465 had been converted to a permanent fix. That largely reflects problems getting documentation. The Treasury acknowledged that some of those 900,000 borrowers won't end up qualifying for a loan modification through the program.

As of Sept. 30, about 7.5 million households—about 14% of those with home loans—were behind on payments or in the process of foreclosure, according to data from the Mortgage Bankers Association, a trade group.

Many of those struggling borrowers owe far more to their lenders than the current value of their homes—a condition known as being "underwater"—and wonder whether it is worthwhile to keep paying. Micah Green, a partner at the law firm Patton Boggs in Washington who represents some large investors in mortgages, says the administration should revamp the program to put more stress on reducing principal owed by borrowers who can show that they would be able to stay current on a smaller, refinanced loan. In many cases, that would require the holders of both a first- and a second-lien loan to accept a write-down of the amount owed, a complicated process.

Treasury officials said Thursday they were looking at ways of helping underwater borrowers but haven't found practical means of doing that on a large scale. "There are no simple solutions," Herb Allison, an assistant Treasury secretary, said in a press briefing.

 

Fannie Mae offers New Closing Costs Assistance and Appliance Incentive for Homebuyers

Fannie Mae is offering a 3.5% incentive for buyers who purchase and close on a Fannie Mae-owned home between January 28 and April 30, 2010. Buyers purchasing properties listed on HomePath.com that are closed within this period may receive up to 3.5% of the final sales price for:

 

·         Closing costs;

·         The purchase of new Whirlpool® appliances by Fannie Mae; or

·         A mix of closing costs and appliances, at the buyer's discretion, up to the maximum 3.5%.

To be eligible for this incentive:

·         Offers must be accepted on or after January 28, 2010;

·         Property sales must close before May 1, 2010, and;

·         Buyers must be owner-occupants (investors are excluded).

 

The incentive reinforces the organization's commitment to stabilizing communities and assisting buyers. For more information about this incentive, visit www.HomePath.com, read the press release on fanniemae.com, or contact a Fannie Mae listing broker.

 

Foreclosure Program has no Plans to Reduce Mortgage Principals

Despite increasing pressure to take more aggressive steps to keep troubled borrowers in their homes, the Obama administration said Wednesday that it had no immediate plans to alter its foreclosure-prevention program by increasing its reliance on reducing loan balances.

The administration's statement came as attorneys general and banking regulators in 14 states warned that policy makers needed to do more to stem the tide of foreclosures.

The Obama program, announced in February as a cornerstone of the administration's efforts to stabilize the housing market, has been running into increasing criticism as delinquencies have mounted. The program has focused on reducing loan payments to affordable levels through interest-rate reductions and other changes in loan terms. But state officials and others say it needs to address falling home prices through principal reductions because many homes are now worth less than their mortgages.

"The failure to reduce principal jeopardizes the sustainability of loan modifications," Mark Pearce, North Carolina's deputy banking commissioner, said at a briefing for reporters.

In a related development, the Treasury Department said the administration next week will issue new guidance for lenders to deal with a looming deadline that is putting many homeowners participating in the program at risk of disqualification because of paperwork problems.

More than 900,000 homeowners have begun trial modifications under the program, but documentation issues are hampering efforts to convert those to permanent fixes. Last month, the administration gave many borrowers in the program an extension until Jan. 31 to provide the documents. But the administration said last week that it doesn't plan to extend the deadline further.

New York State Banking Superintendent Richard Neiman said Wednesday that he believed that about 450,000 homeowners who have made at least three required trial payments "face the prospect of foreclosure on January 31st strictly on account of documentation issues."

Administration officials haven't said how many borrowers in the program would be affected by the approaching deadline. "We expect to issue guidance to servicers next week to expedite conversions of current trial modifications and provide guidance on documentation," Assistant Treasury Secretary Michael Barr said.

Under the program, borrowers must make three trial payments and provide a hardship affidavit and other required documents. On Friday, the administration released a report that said only 7% of the homeowners who received trial modifications on their loans through the plan had received a permanent reduction as of Dec. 31.

Mortgage companies say many borrowers haven't provided some or all of the required paperwork, while borrowers complain they are asked for the same documents multiple times.

State officials on Wednesday called on the administration to loosen documentation requirements and expand the use of principal reductions. A report issued by state attorneys general and state banking regulators found that more than 70% of loan modifications resulted in an increase in the principal amount owed as unpaid interest, fees and other charges were rolled into the loan amount.

The report, by the State Foreclosure Prevention Working Group, said current efforts are failing to keep up with the number of borrowers falling behind on their loans. Only four in 10 borrowers who are at least two months behind on their payments are involved in any sort of loss-mitigation effort. Without more aggressive steps, including a focus on principal write-downs, foreclosures will continue to weigh on the economy, the report warned.

"Despite efforts of servicers, homeowners and the government, the foreclosure crisis continues to worsen. These signs point to more foreclosures in 2010 than in 2009," the report said.

The states' report, based on data from 13 mortgage servicing firms, offered a stark view of the housing market. Through the end of October, there were 1.7 million mortgages at least two months behind on payments, while the number of loans in the process of foreclosure increased by 52% between October 2008 and October 2009, the report said

 

Get Help Before You Fall Behind

Struggling to pay your FHA mortgage? Now you no longer have to be late with your payments to get help.

On Friday, the Federal Housing Administration announced that it will assist borrowers before they become delinquent. All you need do is prove your problems were caused by a reduction of income from a job loss, fewer paid hours, slashed wages or a decline in self-employed business earnings.

"The FHA has always required lenders to establish early contact with delinquent borrowers to discuss the reason for missing a payment and to evaluate reinstatement options," FHA Commissioner David Stevens said in a prepared statement. "Now servicers will have additional options for those borrowers who seek help before they go delinquent, which increases the likelihood that the borrower will be able to retain their home."

The workouts available include forbearance, in which lenders agree to postpone or reduce payments for a specified period. This does not actually forgive the payments, they are just added to balance later in the mortgage term.

In more severe cases, borrowers may qualify for permanent payment reductions. This may be done by increasing the length of the loan, reducing the interest rate or even forgiving principal -- or a combination of any of the three. To top of page

 

Living Smaller

With the average home size declining, owners are cleverly doing more with the square footage they have.

 

Years before house staging came into vogue as a sales tool, Howard Hoffman was helping sellers rearrange their furniture to maximize floor space and enhance a home’s beauty. Hoffman, GRI, SRES®, now owns Stage & $ell, a home staging and redesign company in Indianapolis.

 

Chances are he’ll have a lot more business in the years ahead from people needing to resize their lives. With baby boomers entering retirement, young adults delaying marriage, and the economy improving by fits and starts, Americans are starting to embrace the idea that less is more when it comes to their square footage. The average size of a new house decreased last year for the first time in nearly three decades. 

 

"Home buyers have been changing," says Fran Litton, a planner with Evans Group, an architectural firm in Orlando, Fla. "They still want the luxury and toys, but they’re putting them into a smaller space."

 

Although the average square footage of a new house is still double what it was in 1960, in the last year, it decreased slightly to 2,215 square feet from a high of 2,277 square feet in 2008, according to data from the U.S. Census Bureau. While the decrease doesn’t approach mid-20th century levels, it is the first drop in house size since the recession of the early 1980s.

 

Smaller houses can mean bigger challenges for real estate professionals. "Eighty percent of people appreciate only what they can see," says Hoffman, who also works as a sales associate with F.C. Tucker Co. in Indianapolis. "You have to make sure you’re showing them what you’ve got." That means making sure each room is easily identified. "Get rid of that desk and computer in the dining room," he says. "Make sure buyers can see it’s a dining room."

 

Hoffman also advises clients to remove rugs to show off hardwood floors and take pictures off the walls. "The less the eye has to distract it, the bigger a room feels," says Hoffman. "People buy what they see. If they can’t see the floors or the walls, they won’t buy the house."

 

Interior designer Roberta Lathrop agrees. She tells her clients with smaller kitchens to clear the counters. "You can’t have all the small appliances sitting on the counter," says Lathrop, who runs Designs by Roberta in Belmont, Mich. "It will start looking very cluttered very fast." 

 

Smaller houses require owners to rethink what they have and how they use things. "If you have a smaller house, maybe you don’t need half a dozen different pans," she explains. "Maybe a single flat griddle that you can put over a couple of burners will do."

 

One of the first tasks she assigns clients is to go through their stuff—ruthlessly. "We all have too much stuff," she says. "Get rid of it. If you’re attached to an item, or think maybe you’ll need it, put it in a box and store it somewhere for six months. Then go back through it. 

 

Have you used it? Have you even missed it? If not, donate it. Get it out of the house." That goes for clothes as well, she says.

 

 

Assess Furniture Size

Removing clutter is only one aspect of getting a smaller house ready to sell—or just living contentedly in it. Some big pieces of furniture, for example, won’t fit in modestly sized houses. 

 

"Take a look at the scale of your furniture, and don’t forget depth," Lathrop says. "Things can be a lot deeper than you realize, and all of a sudden, there’s no room to walk because that deep, comfy chair you love comes halfway out into the room."

 

Hoffman frequently asks sellers to remove furniture from rooms that feel overstuffed. "If you’ve got a huge china cabinet in a small dining room, it’s distracting," he says. "At least take the hutch off."

 

The color palette is very important in a smaller house, says Matthew McNicholas, an architect with MGLM Architects in Chicago. "Loud colors make a space feel smaller because they jump across the room at you," he says. "You want the walls and your furniture to recede." That doesn’t mean everything has to match. 

 

"Eliminate the high contrasts," he says. Lathrop says the same colors should move throughout the house. "Blend colors in more medium tones," she says.

 

McNicholas suggests installing a single type of flooring throughout the house. "Using the same color carpet or the same hardwood pulls your eye along from room to room, and maximizes your perception of space," he says.

 

Strategic lighting is another way to create the illusion of more space, the experts say. "Use corner uplighting and a room will feel much more open," Hoffman says. In fact, he adds, make sure the house is flooded with as much light as possible. That means trimming bushes or trees that block windows and tying back or removing heavy draperies that close in a room.

 

Another way to maximize space is to install as much covert storage as possible, such as pressing the furniture into double duty. Hoffman encourages clients with children to buy large wicker baskets that function as coffee tables and toy storage. 

 

When selling a smaller house, he tells clients to keep a couple of large laundry baskets handy. Then, if they have to leave in a hurry for a showing, they can pack the baskets and take the clutter with them to the car.

 

 

Room Mapping

Before purchasing any furniture or accessory, it’s critical to map out a room. "That way you won’t discover you can’t open the door to the storage compartment in your new end tables," Lathrop says. She recommends putting a small console in the entry or living room and buying bookcases with a cabinet section.

 

And then there’s the closets: Clean them out. Kay Courtney, CRS®, GRI, a broker in Grand Rapids, Mich., encourages her clients to remove half the items from their closets to get ready for showings. 

 

"If the closet is overstuffed, it says to a potential buyer, ‘There’s not enough storage space in this house.’ "And just to live comfortably, she recommends storing off-season clothing somewhere other than the closet, such as under the bed. And don’t forget the basement. 

 

Courtney says adding a few inexpensive cabinets, even to unfinished basements, can create lots more storage for off-season clothes and infrequently used items from the kitchen.

 

Hoffman reminds his sellers not to forget the outside of a house. High bushes, overgrown trees, lots of outdoor furniture, and other yard paraphernalia can make a house look smaller. "People want the ideal," he says. "If you don’t have it, create it." Installing flower boxes or hanging a swing on the front porch adds a touch of charm and coziness to a smaller house.

 

For the more adventurous, McNicholas offers a few easy structural changes that give the illusion of more space. Higher ceilings make a room feel larger. In an existing house, building out a small soffit along the edge of the ceiling, creating a tray effect, tricks the eye into thinking the center of the room is higher than the edges. 

 

"It feels bigger," McNicholas says. And lowering the ceiling in a hallway makes the rooms off it feel bigger and grander. "Even a few inches makes a big difference when you walk into the room and get the sense of that extra height," he says.

 

Buyers also may need some extra coaching when looking at smaller houses. "You have to show them how they can repurpose rooms, like splitting that fourth bedroom they don’t need to accommodate a master bathroom and closet," Hoffman says. It’s not uncommon for him to bring along an architect or remodeling expert to help potential buyers see the possibilities. 

 

"People want the perfect house immediately," he says. "When they’re buying a smaller house, you have to prep them. Let them know they may have to make a few changes, but that it’s not scary or overly difficult."

 

He also likes to highlight the benefits of smaller houses. "They tend to be closer to the city, which means easy access to public transportation," Hoffman says. "And they’re often single floor, too, which can be useful in so many ways, from cleaning to just getting around."

 

Another benefit of a modestly sized house is that it forces families to spend time together, says McNicholas. "When everyone has a room to be entertained in, you’re not interacting much," he says. "When you have a smaller space, it puts you together. You can rediscover your family."

 

But buyers do have to think differently. "It takes more thought and planning to live in a smaller space," Lathrop says. "You have to think about what you need, how you can be more efficient, and where can you add storage." The key is not to be afraid and to embrace the benefits, she says. "It’s much easier to take care of, and your electric bill will be lower. What’s not to love?"

 

 

Storage Smarts

If space is at a premium, home owners need storage that’s both functional and beautiful. These days, it’s not hard to find. "They’re coming out with wonderful furniture with storage built right in," says interior designer Roberta Lathrop. "There are storage ottomans, end tables—even chairs with places to store your remote."

 

When looking for pieces that can double as hidden storage space, pick designs that don’t skimp on the details. 

 

"Traditional details like crown molding or base moldings make a room feel grander," says Matthew McNicholas, an architect with MGLM Architects in Chicago. The same can be applied to furniture. "A room is nicer when the details in it are nice," he says. "The trend in bigger houses is to use less expensive materials because you need so much of it." In a smaller space, it’s easier to upgrade the materials for a more elegant feel.

 

Don’t forget "found" storage, or space that isn’t obvious. Home owners can install bed risers, which safely lift a bed five or six inches to create storage space underneath. 

 

Another example: spice risers for kitchen cupboards. The bleacher-like devices create three times the space of a single cabinet. Many companies now offer heavy-duty shelving that attaches to the ceiling in garages, basements, and laundry rooms.

 

 

Stashed Away

Small closets call for big ideas when it comes to maximizing space. Some are simple and relatively inexpensive, such as adding a second hanging rod or storing off-season clothes under the bed. Experts suggest adding a shelf or two above the rods, hooks on the back of doors and bedside tables with lots of drawers. Decorative hooks on the walls can be used for purses or belts and ties.

 

Of course, the simplest way to create more closet space is to reduce what’s going into it. "When it comes to closets, we just don’t realize how much we really have," says interior designer Roberta Latham. She suggests trying on each piece of clothing to see what fits and what still works. 

 

If it doesn’t fit, donate it. If something needs mending or is stained—and has been that way more than six months—get rid of it.

 

"Do an inventory and determine how much space you need for tops, bottoms, shoes, and purses," she says. "Then identify your living habits. Do you like to reach in and grab, or do you prefer everything neatly folded away?" That can help determine what type of storage you need.

 

Target the closet doors. Replacing a sliding closet door with a regular double door can add six inches of hanging space. Changing to bi-fold or pocket doors can add even more space, Lathrop says.

 

Architect Matthew McNicholas says to look for empty or dead space to add built-in bookshelves or cabinets.

 

Other than the bedroom, the kitchen is probably the room most in need of storage space. "There are so many new, more efficient ways of storing things," Lathrop says. "There are rollouts [in the cabinets], spice racks, all sorts of things." 

 

In terms of design, Lathrop says the trend is toward "a European look" that has more efficient storage than the traditional American cabinets. "The kitchen is one of the main meeting areas in a house," she says. "You should think about how you’re going to use the space and what you need to store."

 

 

Keeping Order

Coat Rack A line of decorative hooks hung on the wall can neatly store coats, purses, and scarves. Many sets come with a shelf on top, creating even more space.

 

Trundle Drawers For storing off-season clothes, large or odd-sized toys, or anything else that will fit under the bed or under a table. Be sure to look for rolling casters.

 

Trunks Trunks made of metal, wicker, or canvas can function as coffee tables or end tables with loads of storage inside.

 

Corner Cabinets These shelves slide into corners to turn dead space into storage. They come in a variety of heights, widths, and finishes, and many have doors to hide what’s inside. Try open, hanging corner shelves for a more modern look.

 

 

New Rules Help Borrowers at Closing

Plenty of home buyers have found themselves at the closing table, ready to sign the myriad documents that will officially make them new homeowners--only to get nasty sticker shock. What was originally supposed to cost them, say, $2,500 in closing costs, has turned into $3,000.

The Good Faith Estimate (GFE), a tally of the fees associated with a mortgage loan due at closing, is exactly that – an estimate. Often these costs, which are provided by mortgage brokers and lenders to borrowers within three days of getting a loan application, escalate by closing time.

But on Jan. 1, new federal rules adopted by the Department of Housing and Urban Development took effect, mandating the use of a redesigned, simplified Good Faith Estimate form. The idea behind the revision: to avoid those closing-table surprises.

The main change is how lenders communicate fee information to borrowers. Under the old system, there was no standardized format. "Fees were communicated in multiple ways, which adds to the confusion when comparing costs," says Keith Gumbinger, a vice president at HSH Associates, which tracks the mortgage market. Under the new rules, lenders will all be required to use the same form for their Good Faith Estimates – a three-page document issued by HUD.

There are also new rules capping increases in costs that are disclosed on the Good Faith Estimate and guidelines so that fees listed on the initial GFE reflect the actual cost at settlement. "Those fees on the GFE at the beginning of the process will be the same on HUD-1 form [final settlement statement] at the end of the process," says Mr. Gumbinger.

The new GFE guidelines are certainly better than the old ones and will reduce closing costs modestly – but there are still some kinks in the process, namely opportunistic pricing, says Jack Guttentag, professor of finance emeritus at the Wharton School who also operates a web site that offers free mortgage information.

That means that two different borrowers can go to the same lender but get two different estimates. The lender can size up the first one as a sophisticate, the other as a dupe, and charge the latter more than the former – just because he thinks he can get away with it. "There's no ready way a disclosure statement can prevent that," Mr. Guttentag says.

Prospective buyers should also be aware that while overall costs associated with closing on a home may come down as a result of the new GFE, they might have to pay up down the line in other ways. It will cost lenders to comply with the new regulations: they have to buy new software, print new documents, train loan originators to fill out the new forms properly. "They will be built into fees, so eventually consumers will pay" for these overhead costs, says Mr. Gumbinger.

So will the new good faith estimate make borrowers savvier about shopping around for a loan? Some are doubtful. "The forms are still pretty complicated," says Richard Vetstein, a real estate attorney with Vetstein Law Group in Framingham, Mass. "Even for me – a real estate attorney – it took several hours to go through the forms and all the changes, and figure out what's going on."

Here, a summary of the types of charges you can expect to see on your Good Faith Estimate.

1. Fees that cannot change from the original GFE to final settlement. These include the lender's origination and underwriting charges, and the credit or "points" based on the specific interest rate chosen.

2. Fees that can increase up to 10% at settlement. These include services required and recommended by the lender. If the borrower selects a third-party provider (for title services, title insurance and recording charges) from the lender's approved list, the fees cannot increase by more than 10% from the upfront estimate to the final.

3. Fees that can change without limit. These include charges from service providers (for title insurance) chosen by the borrower, but not recommended by the lender. This category also includes things like daily interest charges, homeowner's insurance, as well as flood and pest insurance, if necessary. It encourages borrowers to do their own shopping. "It prevents the worst abuses of price escalation on third-party charges for service providers selected by the lender.

 

Types of Home Siding

The type of siding on your home should accentuate the character and design of your home. For example, you wouldn't install vinyl siding on a Victorian home, but misguided home owners do it. Nor would you expect to find expensive redwood on a home exposed to the elements of the sea, but builders often cater to those with more money than common sense.

When home shopping -- whether you are a first-time home buyer or veteran -- pay attention to the condition of the siding. It's expensive and time consuming to replace or repair siding, costing anywhere from a few dollars to $30 or more per square foot. The lifespan of various types of siding will depend on the climate where you live. Home siding can require periodic painting or restaining and, in the event of wild temperature swings, some types of siding can crack through expansion and contraction.

Here are four good reasons to replace siding:

  • Change the appearance.
    Little spruces up a home and changes its desirability more than new siding.

     

  • Increase future resale value.
    New siding offers a benefit to home buyers because it extends the life of an exterior.

     

  • Lower utility bills.
    Adding insulation under siding provides a moisture barrier and prevents outside temperatures from disturbing the balance of interior climates.

     

  • Decrease maintenance costs.
    The life expectancy of, say, a new paint job is at least five years, and quality paints are touted by manufacturers to last 10 to 20 years. New siding requires little, if any, maintenance.

Brick Exteriors

Brick can last a century. Because it's made from fired clay, brick doesn't burn and is not susceptible to dry rot. If brick is not part of your original structure, then adding brick is typically accomplished by installing a brick veneer, also known as brick face, which are not full complete brick blocks. Maintenance of actual brick involves repointing, that is replacing mortar in between the bricks. Mortar is a mixture of cement, water, lime and sand.

Stucco Exteriors

Stucco can be applied by a variety of methods, but hand-troweled is considered to be the best. It can be smooth, rough or somewhere in between. Stucco needs to be water tight. If water seeps under the stucco, it will separate the material from the home. In a virgin application, stucco is spread over wire mesh, wood slats, paper and sheathing. Like mudding, drying in between coats is recommended. Re-stuccoing is permissible over original stucco.

Vinyl Siding

Vinyl siding is made of PVC or polyvinyl chloride and comes in a variety of colors. The panels are installed from the bottom row up by nailing galvanized roofing nails through the slots in the panel, exposing the nail head so the panels can move. The vinyl expands and contracts in hot and cold weather and must slide freely from side to side. Two main advantages to vinyl are it's inexpensive and never needs painting.

Aluminum Siding

It's hard to tell the differences between aluminum siding and vinyl without touching it as they look similar to each other. Aluminum siding became popular after World War II; however, the color can fade and, unlike vinyl, aluminum can be dented. It also expands and contracts, depending on temperature. Aluminum siding can be painted, and experts recommend oil-based paint over latex.

Wood Siding

Wood siding is manufactured in a variety of types such as shake, clapboard, singles or lap. Panels are applied vertically or horizontally, and finishes range from stains to paint to sealants. Wood siding should be installed over a moisture barrier and some contractors suggest priming the back of the wood and its sides to prevent water from seeping into the wood. Although wood is beautiful, it requires maintenance and can rot.

Log Siding

Covering the exterior of your home with log siding can make it look like a log home without rebuilding the home. Log siding comes in quarter logs and half logs. The finishes are smooth, knotted or, for that authentic log-home appearance, hand-hewn. Some log siding isn't even wood, but resembles wood and is available in vinyl or steel. Common wood choices for log siding are pine or cedar.

Glass Block Exteriors

Glass block walls are non-load bearing. They are laid by installing panel anchors to the jambs, expansion strips around the opening and panel reinforcing wire stabilizers every third or fourth row. Blocks are set into a special mortar made for glass. The maximum recommended size of a glass block wall is about 20 pounds per square foot or 144 square feet. I have a glass block wall in my home, which lets in light, but it does show interior shadows from the street. Routine exterior caulking is suggested.

Composite Siding

Manufactured siding can be created from almost any material and made to resemble natural wood. Some composite siding is made from shredded wood, binders, glue and Portland cement. James Hardie is a well known manufacturer of fiber-cement products -- built to withstand rain, wind, hail and insects -- and this siding is available in a variety of colors, boasting a limited 50-year warranty. Habitat for Humanity builds many homes with HardiBoard.

Stone Siding

Stone has been used for centuries. Today's stone siding products are natural or simulated. Artificial stone faces are lighter and easier to install. Of all the siding options available, stone siding is the most expensive. Most applications support a first layer, which is wall sheathing, covered by water resistant paper on top of which metal lath is secured. Then the stone is set into mortar and laid.

 
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