Category Archives: Tips

5 New “Rules” to Home Buying

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According to REALTORMag.com, some of the traditional rules of home buying have returned.

“With signs of a housing turnaround getting stronger, housing experts say buyers are finding several recent changes when they go to put in an offer on a home. A recent article at U.S. News & World Report highlights some of these changing “rules” for your home buyer clients:

1. Lowball offers won’t likely stick: Sure, deals are still around, but lowball offers that aren’t in line with comparable sales data are increasingly proving to be a waste of time. Buyers may be better off asking for seller concessions, such as closing cost assistance or making home repairs, rather than making offers way below the asking price. “Keep in mind that a lowball number may turn off the seller and close down any chance at negotiation,” the U.S. News & World Report article cautions potential buyers.

2. Get pre-approved: Getting a loan isn’t easy nowadays as lenders have tightened their credit standards in recent years. Serious buyers should check their credit and get pre-appoved for a loan to determine how much of a home they can even afford even before they start their home search.

3. Get realistic about the market: Real estate agents can show buyers comparable nearby sales to help educate them about local market conditions. Transactions from the last six months are the most important. Another important piece of information for buyers is knowing how long properties are staying on the market.

4. Expect some competition. Housing inventories are dropping in many areas and spurring an increase in demand. Home buyers may face increased competition for the home they want, particularly among short sales and foreclosed properties, in which they may be up against investors who are making all-cash offers. That’s why experts say it’s important bank-financed buyers know their financial situation in advance to better compete.”

5. Conduct property research: Real estate agents will help guide clients on what all they need to do when they find a property they like, but one important step nowadays: Buyers should hire a title company to check for any liens or tax arrearages, the article notes. Housing experts also recommend hiring a home inspector, verifying the accuracy of the property line (by asking seller for the survey or having your own conducted), and make sure all necessary disclosures about the property, required by the state, have been made.

Lawn and Garden Month: Planting a Low Maintenance Garden

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Via Coldwell Banker’s Blue Matter

The reward of a beautiful garden is well worth the work you put into it.

I know what some of you are thinking, “this woman is crazy, the words low maintenance and gardening go together like orange juice and toothpaste (not well)!” I have tried this before and wasted my money. I am not home enough and simply do not have the time to pay attention to a garden. Excuses Excuses, this time is different. Don’t miss out on the benefits of gardening!  Check out these tips and give it another go.

 

Face the Facts: There’s Good News & Bad News

Bad News: Maintaining a beautiful garden often takes hard work. From planning, to planting, to proper maintenance, gardens require one of the most valuable things you have…your time.

Good News: Well thought planning prior to planting can save both time and money and we have the tips to do it!

Do Your Homework

The first step to planning a garden is deciding how you plan to use it. Will you be growing your own vegetables (there is nothing like fresh basil, YUM) or do you simply want a flower garden that will add beauty to your yard? Keep in mind those who will be sharing in the beauty of your garden. Do you have kids or pets that may affect the area where your garden will grow?

After you decide what function your garden will serve it is important to study your yard prior to planting. Note the health of your yard, where do current plants thrive? Do certain areas receive more sunlight than others? Are there any weeds? Is there a place where water accumulates?

Once you assess the current status of your yard, jot down some notes and head to the store to seek professional advice on which low maintenance plants fit the following criteria:

  • Thrives in soil, sun and your climate
  • Looks good for more than one season
  • Perennial (A plant that has a life cycle that lasts more than two years)
  • Will not outgrow the space you plant it into

Keep in mind that native plants grow on their own and don’t require a lot of attention.

Make Smart Choices

Here are ten perennial plants that blogger Marie Ianotti from About.com Gardening suggests as smart choices for a low maintenance garden:

  1. Blazing Star: Blooms: Mid-summer through fall  Colors: Purples or white
  2. Coneflowers: Blooms: Summer  Colors: Purple, white, orange, yellow, pink & red
  3. Coral Bells: Blooms: Late spring / Early summer, but grown for its foliage. Colors: White, pink or red
  4. Foam Flower: Blooms: Late spring / Early summer Colors: White or pink
  5. Globe Thistle: Blooms: Early summer to Early Fall Colors: Blue or white
  6. Hosta: Blooms: Generally mid-Summer Colors: Purples or white
  7. Peony: Blooms: Late spring / Early summer Colors: Pinks, white, reds or yellow
  8. Russian Sage: Blooms: Mid-summer to Fall Colors: Blue
  9. Sea Thrift: Blooms: Spring to Early summer Colors: Pink, rose, lilac, red or white
  10. Siberian Iris Blooms: Late spring Colors: Blues, purples or white

Consider Container Gardening

A great solution for a “wannabe green thumb” that doesn’t have hours to spend on their garden is opting to use the container gardening method. Let your creative juices flow when selecting your container and think beyond planter boxes and hanging baskets. Some of the most beautiful container gardens are grown out of household items that you may look at as junk. A popular, “out of the box”, solution is growing a garden out of the basket of an old bicycle. Other fun ideas include cowboy boots, wheel barrows, bird feeders, dresser drawers and rain barrels.

One benefit of container gardening is that you don’t even need a yard. Decks, windows, balconies and front porches can all be used as a starting point for your garden. For more information on container gardening check out “What is container gardening?”  by TLC.

 

Avoid Common Garden Mistakes

Check out our blog post on avoiding common garden mistakes on tips. This post is packed with goodies and secrets that will guide you through common mistakes that may have tripped you up in the past.

Stick With It

Commit to giving your garden the TLC that it needs and deserves. Be patient and give your garden time to grow before giving up on it. If you see your garden going downhill don’t give up! Seek the help of fellow gardeners in your neighborhood, local nursery or go online and reach out to the garden community.  Share your passion for your garden with a family member or neighbor. Hobbies that are shared with loved ones are always more enjoyable.  The reward of a beautiful garden is well worth the work you put into it.

Good luck and happy planting! Enjoy the extra time you will have after planting your low maintenance garden!

Seven Staging Secrets from a Pro

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This recent post from Coldwell Banker’s Blue Matter gives us some inside scoop on staging homes for sale like a pro. Here are seven tips to help boost your home’s appeal and give homeowners a competitive edge when placing homes on the market. 
  • Stage rooms with one purpose.  Rooms that have many uses can confuse or even deter homebuyers, so staging rooms with one purpose is vital.  Determine who your most likely target market will be, whether it’s young professionals with no kids, families, or even empty nesters.  Then present your areas to fit their needs.  If you’ve been using a room as a guest room/kids playroom/home office, pick the one use that best suits your buyers.
  • Tackle the easy “do-it-yourself” projects. Spruce up your home by updating kitchen and bathroom fixtures and updating cabinet hardware.  Add a fresh coat of paint in a neutral palate that won’t distract from your home’s features. 
    A fresh coat of neutral paint goes a long way

  • Focus on the living areas.  Potential buyers should envision themselves entertaining friends and family in the living areas of the home.  Make sure those areas feel as spacious as possible by removing any unnecessary furniture to allow for easy traffic flow.
  • Make sure the master bedroom appeals to both sexes.  Remember that the master bedroom is a room that a couple will be sharing, so the décor should appeal to both sexes.  It should feel like a calm and peaceful refuge, not a frilly boudoir.  Remove any feature that seems too gender-specific and paint the walls a neutral colour.
  • De-clutter & depersonalize. Buyers want to picture their family living in a home, not the previous owners.  You’re going to be moving anyway, so start now by packing away family photos, personal mementos knickknacks. Store away valuables under lock and key. Some property owners find they need to store some of their belongings off premises to create an open feel.
  • Furnish the home, but don’t overdo it.  While an empty house may look spacious, it’s often hard for buyers to visualize their belongings in a home if they’re just looking at bare walls and floors. Leave the basic components that allow the viewer to define each room.
  • Don’t forget the outside spaces.  First impressions can play a key role in a consumer’s decision-making process, so don’t neglect your home’s curb appeal.  Make sure the home’s exterior is inviting by trimming the bushes, mowing the lawn and painting faded window trim.  Buyers will appreciate the seller’s efforts with the yard work, and will tend to assume that the same attention to detail has been devoted throughout the property.

4 Questions to Ask Before Buying a Foreclosure

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“Foreclosures can offer big bargains, but buyers need to be careful that they don’t get over their heads in purchasing a home that may need more repairs than they bargained for.

Foreclosures are usually sold as-is, and homes that are left vacant standing too long can have a lot of maintenance problems.”

REALTORMag suggest buyers consider the following questions:

1. How long has the home been vacant? Be cautious of a foreclosed home that has stood vacant for more than a few weeks or had its utilities shut off a long time. Marvin Goldstein, a home inspector for many foreclosed properties, says a home can deteriorate quickly when heating, cooling, electricity, and running water have been turned off for awhile.

2. How old is the home? Goldstein says that homes that are more than 50 years old may have a failing plumbing system or inadequate electrical wiring.

3. How does the home look? Are there broken windows, gutters hanging down, or damaged siding? “Trust your instincts. If the house looks bad from the outside, it’s probably worse than you think,” Goldstein told The Oklahoman.

4. Is there anything missing? Sometimes former owners remove anything of value from the home, such as built-in light fixtures, bathroom tile, water heaters, air-conditioning units, and hardwoods, says Bill Jacques, president-elect of the American Society of Home Inspectors.

Housing experts encourage buyers to get a home inspector to look at the property, even if it is sold as-is, so that home buyers know any repairs needed and cost estimates before they purchase the home.

“Buying a bank-owned home gives you the opportunity to enter the market at a very low price level,” says Dorcas Helfant, a past president of the National Association of REALTORS®. “You can find terrific values among foreclosures, especially if they’re not in too bad shape. But, remember, these houses are discounted for a reason.”

Top 5 Reasons to Buy a Home in 2012

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Make the American Dream of home ownership a reality in 2012. Here are the Top 5 Reasons to purchase a home in 2012 via QuickenLoans.com…

  • Appreciation – Buying a home now (at the current rates) can almost ensure your home’s appreciation in the future.  Mortgage rates are near historic lows and home prices in many parts of the country are down.  This is the perfect recipe for home appreciation.  Additionally, many foreclosed homes are available for a fraction of the original cost.  This can translate to a higher profit if you decide to sell once the market rebounds.

  • Property Tax Deductions – For income tax purposes, real estate property taxes for a vacation home and first home are fully deductible.  The IRS (Publication 530) provides detailed tax information for first-time buyers that may answer many questions about what deductions homeowners are eligible for.

  • Preferential Tax Treatment – If you own your home for more than a year and receive more profit than the allowable exclusion after the sale of your home, the profit will be considered a capital asset.  Capital assets are given preferential tax treatment.

  • Equity Building – Many factors such as credit qualification, loan flexibility, and annual percentage rate (APR) contribute to the final decision of what type of mortgage loan best fits your goals.  Yet, a new trend being used by some homeowners is to actually add money to their monthly payment to decrease the principal balance of their loans at a much faster pace.  This trend is called equity building.  Equity builders usually select a home loan with a lower interest rate (and a shorter term loan such as a 15-year fixed) to help build equity faster.  This rapid payment process allows borrowers to:

  • Pay off the principal balance faster
  • Lock in near-record-low interest rates
  • Shorten the length of their home loan
  • Own their home faster
  • Pay substantially less mortgage interest

Equity building is a beneficial trend that’s becoming more and more popular with fiscally responsible homeowners.  Also, home equity is the largest single source of household wealth for most Americans.

  • Pride – Homeownership offers many benefits to many different types of people.  For some homeowners, playing your music as loud as you want and painting the walls the color of your choice is a perk.  For me, homeownership will permit me to build an NBA regulation size basketball court on my own property.  For my coworker Joel Jarvi, home ownership may allow him to build the indoor slide of his dreams.  No matter who you are, homeownership is a purchase, commitment, and journey that’s sure to bring you pride.

Furthermore, when the uncertainty surrounding the housing market fades and the market rebounds, homeownership may in fact transform that pride to profit through a home sale.

 

New Year New Home?

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Via ColdwellBanker.com

It’s officially 2012 so let me start by wishing you a happy new year.  In early January, many of us are planning and setting goals for everything we want to do and achieve in the year to come.  While many people think of spring as the primetime home buying season, the winter months often offer an even greater selection, and the opportunity to settle into the new home before warmer months arrive.  If buying a house is on your “to do” list this year, now is also the time to begin preparing.

I remember when I bought my home.  There were so many things to get in order– it was confusing to decide where to begin! So, even if you plan to buy in the spring, January is a good time to get ready. Here are some tips to help you get on track to reach your 2012 home buying resolution:

  • Select a qualified and trusted real estate agent: At Coldwell Banker, we have a network of knowledgeable, trustworthy agents.  Agents understand the local market and can help you find all the information and resources you need to get started. Researching on your own is important, and using free online tools is a great way to start, but meeting with an agent will ensure you don’t miss any important steps along the way.  In fact, the next three tips were sourced from the great advice of our agents.
  • Create your “must-haves” and “nice-to-haves” list: Easier said than done, right?  But it’s next to impossible to find a first home with everything.  You’ll need to think about your lifestyle needs and prioritize the non-negotiable home accommodations, such as a bedroom for each family member, over items you may want, but not need, such as a large master suite. Everyone’s list is different, but knowing your “must-haves” in advance will help you stay focused.
  • Determine your budget: Be realistic about what is affordable. An agent can help you find comparable home prices and hone in on approximately how much the payments will be.  You should also plan to get pre-approved for a mortgage. Doing this prior to house hunting will let you know how much money you qualify for, and how much you can afford. You’ll also be able to figure out which mortgage type is best for you.
  • Identify the perfect “location, location, location”: Everyone has heard this phrase before, and while the surrounding neighborhood and home itself may improve over time, the physical location will remain the same. Determine in advance how close you would like to live to work, schools or extended family. A short commute to work, proximity to family or having easy access to highways and mass transit will often be items for your “must-haves” list.

Hope your 2012 is off to a good start. If you’re starting your home search in 2012, we’d love to hear what you’re doing to get the home search process started.

How to Stage your Home for Sale

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Via ColdwellBanker.com

With a substantial amount of homes for sale on the market, homeowners looking to put their home up for sale have a number of other home sellers to compete with. However, homeowners can gain a leg up on their competition with some low-cost home repair and redecorating projects that can significantly improve the aesthetic and value of their homes.

Look around the home

According to Inman News, some home sellers often find that by looking around their residence, they can discover areas they can easily make more appealing to prospective home buyers.

For instance, the real estate source reports one pair of home sellers in California stripped the carpet from areas of their home, which revealed nice hardwood floors underneath. These floors may be more attractive to home buyers, which can improve the home sellers’ chances to sell their residence.

Additionally, Inman News reports dated or harsh paint colors on the walls can be unappealing to some home buyers. Applying muted color paint, such as off-white, to replace these old coats could lead to more offers on one’s home for sale.

Declutter the residence

Another way in which home sellers can improve their odds of selling their property is to declutter their home. By doing so, Inman News reports they can make the home neater and cleaner, which is something many home buyers prefer to see when checking out the residence. Even personal possessions should be removed while the home is up for sale, according to the source.

Should home sellers find that they have numerous belongings they want to take out of sight during the period in which their home is on the market, Inman News reports they may want to donate or recycle items they don’t use anymore.

Real estate agents could be able to suggest places to donate unused clutter, which could yield home sellers a tax deduction, according to Inman News.

MSN Real Estate reports homeowners can also keep their possessions in their basement or attic – somewhere they can easily access them but where they aren’t as visible to potential home buyers.

Which Home Improvement Projects Offer the Best Returns?

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“When it comes to remodeling, exterior replacement projects have routinely rewarded home owners with more bang for their buck. This year is no different: REALTORS® recently rated many exterior improvements as among the most valuable home investment projects as part of the 2011-12 Remodeling Cost vs. Value Report.”

Via RealtorMag.com

“This year’s Remodeling Cost vs. Value Report shows the value of putting your home’s best façade forward, so to speak,” said National Association of REALTORS® President Moe Veissi. “Inexpensive exterior replacement projects are not only crucial to a home’s regular upkeep, but are also expected to recoup close to 70 percent of costs. Specific exterior projects such as siding, window and door replacements are part of regular home maintenance, so many homeowners are already undertaking them. These projects also do not require expensive materials and they have the added bonus of instantly adding curb appeal.”

HouseLogic.com, NAR’s consumer Web site, includes dozens of remodeling projects, from kitchens and baths to siding replacements, which indicate the recouped value of the project based on a national average. According to the Cost vs. Value, seven of the top 10 most cost-effective projects nationally in terms of value recouped are exterior replacement projects. REALTORS® judged an upscale fiber-cement siding replacement as the project expected to return the most money, with an estimated 78 percent of costs recouped upon resale.

Two additional siding replacement projects were in the top 10, including foam-backed vinyl siding, expected to return 69.6 percent of costs, and upscale vinyl siding, expected to recoup 69.5 percent of costs. Three door replacements were also among the top exterior replacement projects. The steel entry door replacement is the least expensive project in the report, costing little more than $1,200 on average and expected to recoup 73 percent of costs.

The upscale garage door replacement jumped seven spots to number six this year, primarily due to the average cost of the project declining more than 15 percent nationally. The upscale and midrange garage door replacement projects are expected to return more than 71 percent of costs. One window replacement project — upscale vinyl — rounded out the last exterior replacement project in the top 10, expected to recoup 69.1 percent of costs.

The 2011-12 Remodeling Cost vs. Value Report compares construction costs with resale values for 35 midrange and upscale remodeling projects comprising additions, remodels, and replacements in 80 markets across the country. Data are grouped in nine U.S. regions, following the divisions established by the U.S. Census Bureau. This is the 14th consecutive year that the report, which is produced by Remodeling magazine publisher Hanley Wood LLC, was completed in cooperation with NAR.

Selling a Home in the Winter

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Selling a home in winter can be challenging and some homeowners may find themselves in the position of having to sell during this time of the year. There are some ways to make the process easier, however. Ideally, the homeowners will know in advance they intend to sell and can start preparing the home before the cold sets in.

Fewer home sellers are active in winter, which generally means prospective buyers are looking at fewer choices. This might make it easier to stand out from the crowd and improve the competition for properties.

Winter home staging

According to USA Today, the season does provide a few unique opportunities to grab potential buyers’ attention. A well-shoveled driveway and walkway make a good first impression. Although they are not important in and of themselves, they tend to create an inviting atmosphere and serve as evidence that the homeowners have paid attention to the details of their home, including regular maintenance and upkeep.

To continue fostering that attitude, the source suggests home staging be used to emphasize the property’s comfort, size, warmth and brightness. Good lighting and clean windows make it easier to see and may help buyers envision themselves living in the home. Experts reportedly discourage showing a home after dark, and note it can be helpful to have photos of the home in the summer or spring on display.

Some experts advise keeping tasteful holiday decorations up, although too many could be overpowering. Instead, conservative lighting, wreaths and similar small touches can tap into the holiday feeling and focus buyers on the home’s comfort and potential during the season.

Intangible factors

One expert told Bankrate.com it can pay to play soft music when visitors are expected to look at the house, saying soothing classical music tends to encourage longer visits and more thorough examinations. Pleasant smells, particularly from baking, may also contribute to the sense of the house as a home, not simply a structure.

The seasonal effects will depend on the home’s location, and in sufficiently warm climates snow and ice may not be a problem. Alternatively, home sellers in areas that tend to have more extreme weather may find potential buyers are looking to enjoy skiing or other winter activities, or may be able to tout effective transportation and other advantages over similar homes.

Via ColdwellBanker.com 

 

Invest in Your Ideal Lifestyle

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“The heart buys a place to live, the head buys a good investment, together they buy the perfect home.”

With a price tag involving many zeros, buying a home fits squarely into the investment category. Yet, choosing a home strictly as an investment may not be a great idea. If you ignore your lifestyle needs and aesthetic preferences, you could get unhappy enough to sell your investment long before it can provide a return.

Look for a balance between your personal needs and your financial goals by paying attention to appreciation rates in the area; neighborhood amenities; purchase and maintenance costs; size and architectural style; and proximity to work, schools, friends, shopping and entertainment.

Get more information here