I recently joined a local camera club (Connecticut Valley Camera Club) and heard a brief discussion about High Dynamic Range imaging (HDR).  The speaker was talking about using this technique to eliminate the light glare that typically occurs when you are shooting a picture inside on a bright day and the outside light forces the camera sensor to under-expose the room resulting in a very dark interior.

This is an inside photo that illustrates the difference between a normal "auto-exposure" and an HDR process photo:

 "Normal" Interior Photo - note dark interior

HDR Processed Photo (below)

 This technique also works with exterior photos as can be seen below (note washed out sky and bright washed out area on left side):

HDR Processed Photo (below):

To learn more about HDR photography, just go to the HDR Photography Group on Active Rain - there's lots of good articles there to provide you with more insight into this remarkable technique.

Tip:  you need a camera that can easily make multiple exposures (typically -1, zero and +1 stops or more) and a TRIPOD IS A MUST. 

Then you will need a computer software program that can process the photos.  There are several available - I've used Photomatix available from HDRsoft at this web site: http://www.hdrsoft.com/ (approx. $99.00)

Check out their web site and let me know if you are impressed!

Have you ever had a buyer who walks on a floor that squeaks and steps back and forth - squeak - squeak - and then glares at you as if to say, "who built this house?"  or "I can't stand squeaks" or "I'll negotiate this deal starting with shoddy construction".  

I've got a solution that has a very good chance of eliminating all the under-carpet squeaks and the home-owner can "do it himself". 

I don't often promote products on my blog but this one works so well (from personal experience) that I thought I'd pass along the tip. 

The product is called "Squeeeek No More®" from O'Berry Enterprises, Inc., Ringwood, IL.  It's a kit that can be ordered on line or from your favorite hardward store - the Ace Hardward store near me knew about the product but had to order it - it came in three days and I saved on the shipping costs. 

I've found it works best on carpeted floors that have a plywood base.  When my wife and I built our house 9 years ago, there were no squeeks but over the years, several appeared in the high traffic areas of our master bedroom.    

I first read about the device in "This Old House" magazine and after reading the review, went ahead and ordered the kit. You can view a video explaining how the system works at http://www.floorscrews.com

As you can see from the video, the kit consists of (1) a triangular jig that makes it easy to stop drilling the screw into the carpet a just the right depth to secure the sub-floor to the floor joist yet not protrude above the plywood and leave a sharp screw end (2) A special drill bit for the screw and jig (3) 50 special scored screws approx. 3" long that allow you to break off the screw after drilling into the carpet and plywood and floor joist. 

There's even a special joist finding screw that you can use to accurately find a floor joist to drill into - and that's key because you need to fasten the plywood into the joist.

I found that I needed about 30 screws (out of 50 supplied) to completely eliminate all the squeaks.  Since the floor joists are supposed to be 16" on center, all you  need to do is carefully measured from a known floor joist to the next, and place screws about 4" apart until the squeak disappears and just like majic, you've eliminated an annoying noise that could kill a deal or at the least, make you and your buyer uncomfortable - you don't need a buyer focusing on a squeak when it can be fixed for less than $25.00.

The kit can be purchased from Amazon:  http://tinyurl.com/n6cw7z

The absorption rate (number of months to sell existing housing inventory) tells us something about supply and demand.  Studies have shown that a "normal" balanced market should have an absorption rate of about 6 or 7 months.  So where are we now?  Based on statistics from our local MLS which includes 24 towns along the Connecticut shoreline, our absorption rate (residential, single family homes, all price ranges) is a whopping 18 thus far in 2009.  Compare that to the last 4 years, and you can see the problem. 

Absorption Rate (Months to Sell Existing Inventory)

Does that mean that prices are too high?  Does that mean that buyers are waiting on the sidelines?  Does that mean that buyers can't get mortgage loans as easily as before?  Most likely, all of the above.

 Clearly, higher absorption rates mean that the supply of homes is higher than normal which means that either 

(1) home prices need to come down more so that sales will increase and reduce the inventory or

(2) the number of new listings coming on the market needs to be reduced. 

Either way, it's not an easy path to a balanced market.    

For months now, many have blamed "negative news" as one factor that is adding fuel to the economic slump. When we hear "doom and gloom" day after day, it has an affect on all of us.  Then we open our monthly investment statement (if you have any money in the stock market) and it gets even more depressing.

So when will we see a recovery?   

Earlier today, I was reading the Wall Street Journal and noticed several "positive indicators" by just reading the headlines alone.  Here's an example of five that caught my eye:

1.  Upbeat earnings forecast from Wells Fargo

2.  Goldman Sachs seeks New Stock Sale

3.  U.S. Exports rose in February

4.  Economists See a Rebound in September

5.  Signs Point to Stabilizing economy

6.  Retail Sales Slip but Profit Outlook Perks Up

Not bad for an economy in a recession!  I'm planning to check once a week or so to see if headlines continue to look positive (at least the majority of headlines). 

This isn't a scientific or statistical survey, just an opinion.  Oh by the way, our office has been busy with buyers and sellers over the last 4-6 weeks - and that's a real sign that things are looking up. 

After all, if we're all continue to talk about "positive news" and  "business continuing to grow" it might just result in a self-fulfilling prophesy!

When showing a buyer a couple of foreclosed properties recently, the listing agent disclosed that there was prior "freeze damage" - read - burst water pipes due to water freezing.  

This is often common in unoccupied homes and during the foreclosure period where the owner is not only unable to pay the mortgage but also, unable to pay utility costs - no electricity: no power to the furnace or to the baseboard heating system. 

So when the temperature goes below 32 degrees for an extended time - pipes burst - even when the water has been turned off and "drained" - why, because you can't really completely drain a typical house - it's not set up like a beach house where winterization happens every year. 

So then, when you're representing a buyer and freeze damage is disclosed, how do you advise your client?  Don't even try to do this yourself! 

A good plumber or contractor can inspect the plumbing and make an estimate of the extend of the damage - often they drain as much water as possible from the system and then use high pressure air to find out where the leaks are located.  With a hot water heating system, this can be a real challenge - with hot air or electric baseboard heat - you're only concerned about the water pipes. 

Then once your inspector has provided his analysis - you have a professional's opinion on the damage and the mitigation.  

In the case of my client, the estimate was $6,000 to $8,000 to replace all the damaged copper pipes.  It can be negotiated but usually you have a weak position because the seller has disclosed this defect and subtracted repairs like this from the price (usually heavily discounted). 

So go ahead, show foreclosed properties and if freeze damage is disclosed - get an estimate of any repairs - if it's not disclosed and there's no heat in the house - make sure you write a contingency to have the plumbing system inspection.  Then you're in a good position to negotiate and have the seller make the necesary repairs.   

Recently, a buyer made an offer on one of my listings and a day before the mortgage commitment date, it was reported that the buyer needed more cash for the down payment.  Seems the loan program he signed up for went away!  In today's tough financing environment, I'm sure that this is not the first time that this has happened.  

Where to get some cash?  Borrowing from friends or relatives? (risky); Getting someone to co-sign? (may end a long term friendship); Borrowing from  your 401K retirement account?  (Maybe not a bad idea!!)   

Yes, the IRS does allow a "hardship distribution" from a 401K retirement plan (if allowed by your employer).  For this to work, the distribution needs to be "an immediate and heavy financial need" and for  "costs relating to the purchase of a principal residence"  (among several options).

Also, once the distribution is made, the employee can't make new contributions for 6 months and unlike a loan, hardship distributions are not re-paid to the plan - your plan balance is permanently reduced.   

Disclosure:  I'm not a tax attorney or CPA so please check with one of these professionals for an opinion before taking any action on this approach!  

Here's an excerpt from the actual IRS web site's FAQ's (underlining is mine for emphasis):    

1. Under what circumstances can a participant get a hardship distribution from a retirement plan?

A retirement plan may, but is not required to, provide for hardship distributions. Many plans that provide for elective deferrals provide for hardship distributions. Thus, 401(k) plans, 403(b) plans, and 457(b) plans may permit hardship distributions.For a distribution from a 401(k) plan to be on account of hardship, it must be made on account of an immediate and heavy financial need of the employee and the amount must be necessary to satisfy the financial need. The need of the employee includes the need of the employee's spouse or dependent. (Reg. §1.401(k)-1(d)(3)(i))

Under the provisions of the Pension Protection Act of 2006, the need of the employee also may include the need of the employee's non-spouse, non-dependent beneficiary.

Whether a need is immediate and heavy depends on the facts and circumstances. Certain expenses are deemed to be immediate and heavy, including: (1) certain medical expenses; (2) costs relating to the purchase of a principal residence; (3) tuition and related educational fees and expenses; (4) payments necessary to prevent eviction from, or foreclosure on, a principal residence; (5) burial or funeral expenses; and (6) certain expenses for the repair of damage to the employee's principal residence. Expenses for the purchase of a boat or television would generally not qualify for a hardship distribution. A financial need may be immediate and heavy even if it was reasonably foreseeable or voluntarily incurred by the employee.
(Reg. §1.401(k)-1(d)(3)(iii))

5.  What are the consequences of taking a hardship distribution of elective contributions from a 401(k) plan?

After an employee receives a hardship distribution of elective contributions from his or her 401(k) plan, generally the employee will be prohibited from making elective contributions and employee contributions to the plan and all other plans maintained by the employer for at least 6 months after receipt of the hardship distribution.
(Reg. §1.401(k)-1(d)(3)(iv)(E)(2))

Hardship distributions are includible in gross income unless they consist of designated Roth contributions. In addition, they may be subject to an additional tax on early distributions of elective contributions. Unlike loans, hardship distributions are not repaid to the plan. Thus, a hardship distribution permanently reduces the employee's account balance under the plan.

Here's a link to the IRS web site with complete details:

http://www.irs.gov/retirement/article/0,,id=162416,00.html

It's been a week or so since I attended the second of five concerts in the 31^st annual Essex Winter Series.  Even though living in Essex for 8 years, I just never heard about the Winter Series and didn't know anyone who attended

When I first received complimentary tickets (my company is a sponsor) to the "great jazz" concert, I was apprehensive - who are the musicians?  What is the program?  What a surprise!

I quickly found out (after reading the program briefly before the program) that is was no ordinary concert: Jeff Barnhart, piano, Scott Philbrick, Trumpet, Dan Levinson, Clarinet and five other WORLD CLASS musicians and entertainers.

The program focused on the early Jazz years from 1890 to 1935 and the first number "Twelfth Street Rag" blew me away - truly outstanding Jazz right here in our small town and very reasonable ($20.00/ticket).   The concert was even more appealing as I used to play the piano and enjoyed playing ragtime music - it sure brought back memories.

During Intermission, there were several CD's for sale in support of the musicians (I purchased "Ivory and Gold" by Jeff Barnhart and "Twin Pianos" by Jeff Barnhart and Louis Mazetier - both great albums).

So what's up next?  It's not all Jazz, they'll be a mix of opera, and classical for the next three concerts ending on March 22.

Can't wait to hear the "String Orchestra of New York City" who claim "No conductor, no bow ties, just strings"!!!  A total of 12 young, highly talented musicians to provide "big city" entertainment on Sunday, March 1 at 3:00pm at the Valley Regional High School - why not make plans to attend - most likely you'll be just as surprised as I was on my first concert.  You can purchase tickets at the door or write "Essex Winter Series, P.O. Box 383, Essex, CT 06426.

When I first moved into town and got into real estate, I thought it would be good to have a catchy screen name that would be easy to remember.  Since my name is Ed and I live in Essex, why not "Essex Ed".  I even bought the domain name which is still active and directs people to my web site.  

Then at the first Saturday in February, I learned that "EssexEd" was the name that the town gave to a 15 foot high fiberglass image of the town mascot:  a groundhog.

So every year, the town sponsors a parade in honor of ground hog day and everybody walks through town banging on pots and pans and yelling so the groundhog will emerge from his hole (I've never seen a live groundhog in Essex!).

Last year he was decorated up as a "birthday boy" 

This year, the theme was "the Beatles" and Essex Ed was decorated and crowned as a 5^th member of that famous group

So maybe my screen name wasn't such a bad idea - who would have thought that I was a famous figure in town!

Recently, a customer found a house on the Internet that was bank owned, partially constructed, and badly in need of repair.  When we made our first visit to the house, he liked the house a lot and his wife loved the location and the room layout.  That's about all that was good about the house - it had burst water pipes, visible mold on the drywall in the lower level, and an addition that was equal to the size of the original house but partially completed (no drywall, no electrical or plumbing). 

Sure, it's a buyer's market and there are great deals out there but is this the time to say "no".  Especially when your client says, "what do you think?"  Is it a money pit or an opportunity?  If you say, "great buy" and during repairs, who knows what lies behind the mold and discoloration?  Maybe water damaged wood; maybe burst water pipes; maybe termites; maybe ????? 

If you say, "it's a money pit; lets keep looking" who knows how many more foreclosures you will need to show your client and what are the chances that the next one will be any better. 

Well, we moved forward and hired a building inspector, plumber, and contractor to give us their opinions - surprise - most of these guys have seen it all, especially if they have been in the business for a few years.  The plumber gave us a good report - not that costly since the house has electric heat - maybe $6000 to repair any broken pipes and replace; the building inspector said, "You've got a great house her - lots of potential".  The contractor gave us a bid for total re-hab and it seemed better than we thought. 

That's all I needed to get my confidence together and keep the deal alive.   It definitely takes VISION - along with support from other professionals.  What's the outcome on this deal?  Don't know yet, closing is in a month and then we'll find out the real truth -

In previous blogs, I talked about my Ecobroker Certification and how this has had an effect on my involvement in local community here in Essex, CT

Went to my first Essex Town Planning Commission meeting as an interested citizen and member of the "Essex Committee for Clean Energy".  My purpose was to support our committee of 5 to promote both an Energy Policy and a Climate Action Plan for our small town (6,000+ people). 

Our committee has been working hard to find out how to get started and to convince our town to move forward on making our town "Green".  There are two initiatives: 

1.  Connecticut Clean Energy Options Program:  The CT Clean Energy Fund is behind this Community program that rewards cities and towns who meet certain requirements: Once certain milestones are met, the clean Energy Fund will provide a 4kW Solar system for one of their town or school buildings

2.  Cities for Climate Protection: To start, our town has joined ICLEI (International Council for Local Environmental Initiatives) with our encouragement and promotion.  One program that is part of ICLEI is Cities for Climate Protection (CCP) where cities pledge to reduce emissions of greenhouse gases that cause global warming.  The organization provides guidelines (Called the Five Milestones) for towns to use.

 At our town meeting last night, one of our members explained our objectives and the Planning Commission appointed a sub-committee to work with us to move forward with both initiatives!

 If you're confused with this energy talk, you're not alone.  It is a monumental task to make progress in this area - often the town Planning and Zoning Boards are spending the majority of their time with day to day applications for building re-construction and additions or modifications of existing homes.

 Once we get started with the town committee, I'm sure things will move along - especially when the Planning Committee finds out how much energy they can save and how much $$$