Which Home Improvements Pay Off?

by SmartMoney.com Staff
June 9, 2006

GENERALLY SPEAKING, there are two ways to go about making home improvements. Either you splurge for something purely for the sybaritic pleasure of having it — the Italian marble bathroom you've dreamed about; that skylight that your spouse has been hinting at for the last six years — or you take a pragmatic approach, buying an energy-efficient furnace or repairing a leaky roof because you want to increase your home's market value.
Don't expect to score on both counts. "Just because you pour $20,000 into your home doesn't mean that your house is worth $20,000 more," says Frank Dell'Accio, a real-estate broker in Lindenhurst, N.Y. "I had a guy who invested $100,000 in a $130,000 home after he lived there for four years. He put it on the market at $225,000. He was offered $170,000." His mistake: spending money on amenities that were only peripheral to the value of the house. "He wanted phones in the bathroom," says Dell'Accio, "but [who else is] going to pay for them?"
Exactly how much you'll recoup in costs depends on several factors, including the direction of the broader housing market, the value of the homes in your neighborhood, when you plan to sell the home and the nature of the project itself, explains Jim Cory, senior editor of Remodeling magazine. In the hottest housing markets, you could indeed earn more than your investment back on a remodeling project. A new deck in San Francisco, for example, recoups 152% of its costs, according to Remodeling magazine's latest survey (which assesses the cost recouped should the house be sold within one year of project completion). But you shouldn't count on those types of returns. In Columbus, Ohio, the same project is likely to only recoup 45% of its costs.

And keep in mind that the longer you hold on to your home after a remodeling project is completed, the less likely you are to recoup its value. That's in part because design tastes can shift significantly over time. Remember when avocado green was all the rage? Also, there's little reward for having the fanciest house on the block, warns certified financial planner Dee Lee of Harvard, Mass. A house that's priced higher than its neighboring homes could be perceived as overpriced — even if it does have more value.

This section examines a few improvements that pay off more often than not — and some that rarely make a difference when it comes time to sell your home.

Kitchens Even a few basic improvements to your kitchen can pay handsome dividends, says real-estate agent Michael Murphy in his book "How to Sell Your Home in Good or Bad Times." Murphy writes: "For most buyers, [the kitchen] is the heart of the house. Paint, wallpaper, and even refloor the room if necessary. Consider sanding, staining or painting dingy-looking cabinets. Replace old cabinet hardware — a low-cost improvement that makes a big difference in appearance." Just be sure to go with a classic design and, if possible, use high quality materials, says Remodeling magazine's Cory. After all, good taste endures.
The average amount spent on a major kitchen-remodeling job in the U.S. is $42,660 for a mid-range update; an upscale designer makeover averaged $75,206, according to Remodeling magazine. The mid-range kitchen overhaul nationally recouped 79% of its cost, the upscale makeover was valued at 80%.

Creating New Space As a rule, improvements that increase the functional space of a home hold their value longer than ones that just make a house look better. It's also significantly cheaper than adding an addition to your home. Converting an attic into a bedroom suite, for example, usually costs about $35,960 and returns about 83% of its cost, according to Remodeling magazine. Turning your basement into a room for socializing will set you back, on average, $47,888, and allow you to recoup 76% of your costs.

An Extra Bathroom Adding an extra bathroom with all the trimmings — marble vanity top, molded sink, bathtub with shower and ceramic tile — almost pays for itself. At an average cost of $21,087 a full bath recoups 86% of its price tag.

Decks Installing a deck may be the most cost-efficient way to add square footage to your house, and of all the outdoor home improvements except painting, it may be the most reliable value. Decks average $6,917 and generally recoup 87% of their value. That may not sound terribly impressive, but other touted outdoor improvements fare much worse.

New Windows The savings on your utility bill might make up for the spotty resale value. Replacing 10 three-by-five-foot windows typically costs $9,273 and recovers 85% of its costs at resale, according to Remodeling magazine. "A good window arrangement, as long as they're standard, will make money back," says William Eccleston, a broker in Coventry, R.I. But, he warns, "as soon as you get into customizing, with fancy shapes, bays and bows you can't see from the street, you're throwing money down the drain."

Swimming Pools It's commonly agreed that a swimming pool has no resale value at all. "I've had clients spend $300,000 and fill in the pool," says one agent. The main reason pools repel more prospective buyers than they attract is that they require expensive upkeep. Running a close second is the fear of liability: Pool accidents are a quick way to end up the subject of a negligence suit. "A lot of people don't want the responsibility," says Remodeling magazine's Cory.

Manicured Gardens Fancy gardens — which will require time and money to tend — usually won't add to the offering price. "Landscaping is for your own enjoyment," says New Jersey agent Frank Dell'Accio. "It may be a $40,000 investment, but there's no way it'll add $40,000 to the value of your house." The same goes for expensive fences and stone walls. They look nice, but buyers don't pay up for them.

Basic Improvements It may not be all that enjoyable, but it's the basic improvements that may have the greatest return on your home's value. "You could have a beautiful new kitchen, but if your roof is leaking, you have a real problem," says Cory. So if you're thinking of putting your house on the market in the next year or so, be sure to tackle any problems with the home's structure or mechanical systems before you, say, install that hot tub you've always dreamed of.

CMA

CMA Steps

From: mratcliffe1, 4 months ago





How to do a market assesment to determine vake

9 Home Staging Tips for Faster Sale

1. First impressions count Roll out the red carpet for potential homebuyers by sprucing up your entryways, especially the one on a lockbox. Welcome mats, planters filled with seasonal flowers, and clutter-free foyers and hallways set the stage.
2. Sell the space, not your stuff. Remember that the goal of a successful showing is to make a prospect feel at home – like it’s theirs, not yours. Put away your extensive personal collections. Less is more: open up your space so prospects can actually see what they’re buying.
3. Paint and elbow grease work wonders. Fresh paint and a thorough cleaning will give you the greatest “bang for your buck.” Remember that neutral walls are your best bet when staging a home for sale. Lowe’s has all the right shades to make your home more inviting. Check out lowes.com for fun tools like the Paint Visualizer http://www.valsparatlowes.com/ coordinate-colors.html.
4. Go with the flow. Arrange furniture for easy traffic flow. Consider placing a major piece of furniture at an
   angle, such as a couch or desk. Angles add interest and can create a more open feel.
5. See the light. Move lamps to dark corners and arrange window treatments so that natural light
   floods your rooms. Brighter is better, and your rooms will look larger. Visit Lowe’s extensive lighting section for the latest in fashionable, functional lighting.
6. Go green. Live plants can add decorative flair, without spending a bundle. Plants and cut flowers have a way of warming up a room.
7. Don’t forget the outdoors, especially this time of year. If you have a porch, deck or patio, clean the furniture and replace worn cushions. Breath new life
   into your deck with a fresh finish; Lowe’s has a variety of deck staining and sealing products that are easy to apply.
8. Make the kitchen sparkle. De-clutter the countertops by removing toasters, food processors and other
   non-decorative items. If you have a breakfast table or counter, put out a couple of table settings complete with place mats, napkins and dinnerware.
9. Warm up an empty home. If your home is vacant, consider renting furniture for key rooms, but don’t
   go overboard. Ask your real estate professional for
   advice, based on your home’s unique features and selling points.

Selling Your Home in a Cooling Market

by Stacey L. Bradford
June 9, 2006

IF YOU'RE THINKING OF selling your home, chances are all the headlines warning of the real estate bubble bursting have you feeling a little anxious.
Already, the buying frenzy has slowed substantially in places like New York City, Miami, Washington, D.C., Las Vegas and San Diego — areas that reported very slow price growth in the fourth quarter of 2005, according to the National Association of Realtors (NAR). At the national level, the real-estate market has slowed down significantly compared with the frantic 2004 and 2005.
The NAR expects that as mortgage rates rise this year, home sales will drop: about 400,000 fewer people will buy homes this year compared to 2005, according to NAR spokesman Walter Molony. Already, the real-estate market is returning to what the trade group calls a balanced market between buyers and sellers. "What's happening now is with buyers being on more equal footing with sellers, they don't feel like they need to make snap decisions," says Molony. "They don't have to bid over the asking price, they can take the time to do the due diligence."
So if you plan to sell your home in the near future, call a handyman to make sure everything is in working order. Then take a close look at your local real-estate market and find out what's selling, what's not and why. Finally, don't expect to get more for your house than your neighbor got a year ago. This is a different market, warns Nelson Zide, co-owner of ERA Key Realty Services in Framingham, Mass. Look at more recent sales data and price your home accordingly.
Here are some more tips to help you get top dollar for your house.
Price, Price, Price
Selling a house is all about price. Ask too much, and you could get stuck with a home that languishes on the market. The longer it sits, the harder it is to unload. "The first question a buyer asks is how long the house has been on the market," says Pamela Liebman, chief executive of New York-based real-estate firm the Corcoran Group. "If it's been on a while, they ask what is wrong with the house."
Ironically, homeowners who ask more for their homes tend to get less in the end. According to Liebman, studies show that if you price your home properly it will sell faster and at a higher price than if the home was priced aggressively. "Overpricing leads to low bids," Liebman says. "Proper pricing leads to high bids."
So how do you set the right price? First, take a look at recent sales in your neighborhood. And don't forget to factor in the condition of your house. A home buyer in a more neutral market is still going to pay up for a new kitchen with Poggenpohl cabinets and a Sub-Zero Refrigerator. But if you failed to notice that Harvest Gold stoves and countertops went out of style with bell bottoms and love beads, you had better be prepared to drop your price by about as much as it would cost a new owner to renovate your relic.
Curb Appeal
First impressions are everything. The last thing you want is to turn off a potential buyer before he or she walks in the door. So make sure the house is painted, and call a landscaper to get your lawn in tip top shape. "If your grass isn't green, make it green," Liebman says. "If you have weeds, get rid of them. If the shrubs are overgrown, cut them." Even small, inexpensive potted flowers can make your home seem more inviting.
Renovations
Some renovations are worth an investment. An extra bathroom makes a home more saleable, says Jim Cory, senior editor at Remodeling Magazine. A few cans of paint and new carpeting could also provide a handsome return. An outdated eight-room home in South Philadelphia, for example, might go for roughly $130,000, says Cory. Pull the shag carpeting and wood paneling — a project that costs roughly $15,000 — and that same home could list for $180,000.
Fix Everything
Make sure everything works. Have an inspector assess everything from your water heater and furnace to your central air conditioning system. "If there are any doubts about the mechanical functions, a buyer will walk," Remodeling Magazine's Cory says.
Even minor repairs are crucial. Hire a contractor to go through your home with a fine-toothed comb. Make sure the gutters are cleaned and the tub has new grout and caulk in the joints. Every window must slide open, and kitchen cabinets should open with ease. And don't forget to paint over ugly water stains. If you don't, a potential buyer could see it as a warning sign of a larger issue.
If you're inclined to leave your home as is, prepare to drop your asking price. "I hate to say it, but price cures everything," says Era Key Realty's Zide. Historically, buyers negotiate two dollars for every dollar of reported deficiencies, according to home-inspection company HouseMaster.
Additional Tips
There's some basic advice that's worth repeating. Keep your home as clean and as pristine as possible. This means cleaning out your closets and getting rid of excess clutter and furniture. You want your home to look as spacious as possible. The Corcoran Group's Liebman even suggests fresh flowers. "Baking cookies could be a bit silly and obvious," she says.
How long will all this take? Give yourself a good six months. It takes time to plan, and then to coordinate projects with a contractor or handyman. Just know that the hassle will be worth it. With a little hard work, you can get the best price for your home in any market.

Eight Ways to Cut Summer Energy Bills

by Stephanie AuWerter
June 9, 2006

WITH SUMMER FINALLY kicking into gear across the country, you can almost hear the gentle hum of air conditioners ratcheting up. And with it, climbs home energy bills.
These days, the average household spends $1,400 annually on energy (based on electricity and gas usage), according the Environment Protection Agency. But much of that, say energy conservationists, is money wasted.
The good news: Cutting back doesn't mean you need to be a tree-hugging naturalist, suffering stoically as you read by candlelight. These days, you can do right by the environment and your pocketbook — without any major lifestyle sacrifices. In fact, by taking some relatively painless steps, you can cut your bills by one-third or more.
Here are eight easy ways to save this summer (including a few tips that will work year-round).
1. Upgrade Your Thermostat
Are you the type who likes to chill after a sticky workday by coming home to a house that's as cool as a meat locker? You can live this dream and cut your energy costs by investing in a programmable thermostat. These handy little devices allow you to cool your home at different temperatures at specific times, explains Mark Hopkins, acting co-president of the Alliance to Save Energy (ASE).
So you could, for example, turn down the AC during the day, when your family is away from home — and crank it up again 30 minutes before the first family member returns. Or, you could turn it down during the wee hours of the morning, when no one's likely to notice a shift in temperature.
Installing a programmable thermostat shouldn't set you back more than $100 to $150 — and the energy savings can be substantial. According to the U.S. Department of Energy, you could cut your heating and cooling bills by 10% annually just by turning your thermostat back 10% to 15% for 8 hours a day.
2. Go Green
OK — this will require a bit of effort on your part, but the returns are twofold: Planting just three shady trees around your house not only can whack $100 to $250 off your annual heating and cooling costs, according to the DOE, but will most likely make your yard more attractive, to boot. (Leafy trees can shield the house from direct sunlight, keeping temperatures down, while still permitting sunlight to hit your house during the winter months.)
Not interested in nurturing your green thumb? Simply pulling the shades (or drawing your curtains) can cut energy costs as well, says Mel Hall-Crawford, an energy efficiency expert at the Consumer Federation of America.
3. Keep It Clean
Keeping your air-conditioning unit clean and in peak performance is another big money saver. To kick the summer off, your AC unit should have a professional tune up (expect to pay somewhere between $90 and $120), says Wendy Reed, an Energy Star spokesperson at the EPA. (Energy Star is a joint program run by the EPA and the DOE that, among other things, deems certain products energy-efficient.) And air-conditioning filters (regardless of whether you have central air or an individual unit) should generally be checked every month or so to see if they need cleaning or replacement. This is something you should be able to do on your own.
Another item to add to your spring cleaning list: Dusting off your refrigerator condenser coils, says Hall-Crawford. This will make the unit run more efficiently.

4. Buy a Better Bulb
Compact fluorescent light bulbs (called CFLs) require 75% less energy than traditional (officially called incandescent) light bulbs, and last up to 10 times longer, according to the ASE. Be sure to look for CFLs with the Energy Star label, since these bulbs won't have any buzzing or humming problems, promises Energy Star's Reed. These bulbs now come in smaller sizes (called subcompacts) that can fit into any lamp, and they have a wider color spectrum. According to the ASE, replacing just four well-used 100-watt incandescent bulbs with equivalent 23-watt CFLs will save you $108 over three years. (For a table of equivalent wattages, click here.)
Also, do you still have one of those halogen lamps leftover from your college days? (You know — those tall lamps that didn't cost much more than a couple of pizzas to buy?) Do yourself a favor: Dump it. Not only are these dangerous fire starters, but their bulbs, which can generate temperatures of 700 to 1,100 degrees Fahrenheit, are energy hogs as well, says Reed. That makes them considerably less inexpensive than they seemed back in the day.
5. Join the Fan Club
As many as 73% of homes have ceiling fans, according to the International Housewares Association. Are you using yours? A ceiling fan can balance out a room's temperature, allowing you to turn down the AC and still feel cool, says Reed.
6. Unplug
Even when all of your home electronics are turned off, many continue to suck down energy. The main culprits: televisions, VCRs, DVD players, stereos, phones and microwave ovens. (Generally, anything that has a clock, a remote control or an on/off light falls into this category.) In fact, idle TVs and VCRs cost U.S. consumers $1 billion annually, or $30 per household, according to ACE. One solution: Plug the items that can truly be turned completely off into a power strip, and then use that as your on/off switch.
7. Fight Leaks
Your pricey, cooled air might be leaking right out of your house. Leaky windows and ducts (which carry the air to the rooms in your home) are two ways that cool air can be lost, making your air conditioner work harder. "We have found that as many as 70% of ducts are installed with leaks," says Reed. Having your ducts properly sealed and insulated could save you as much as 10% in energy costs, according to the EPA. So if you think your duct system is faulty, try to have it checked out by an HVAC (heating, ventilation and air-conditioning) technician. (One way to find one is to visit the North American Technician Excellence web site, says Reed.)
8. Be a Savvy Shopper
By far the biggest way to save is to invest in energy-efficient appliances. When shopping around, look for the Energy Star label. There are more than 35 product categories that qualify.
Of course, replacing your appliances (particularly the biggies, like a refrigerator or dishwasher) will require an upfront investment. But if you've got an old clunker, you could recoup your costs quickly. For example, if your central-air-conditioning unit is more than 10 years old, replacing it with an Energy Star-rated model could cut your operating costs by 40%.

Sellers Tips: Setting The Stage Sells Your Home

by Marcie Geffner

The age-old observation that "you never get a second chance to make a first impression" certainly applies when it comes to attracting buyers to a home for-sale. Making a good first impression can mean the difference between receiving serious offers for your home or being subjected to months of lookie-loos dropping by but never buying.

How can you ensure that your home will make the best impression possible? Here are six tips for savvy home sellers:

1. Focus on curb appeal. The outside of your house can be the source of a very good first impression. Keep the grass well-watered and mowed. Have your trees trimmed. Cut back overgrowth. Plant some blooming flowers. Store toys, bicycles, roller-skates, gardening equipment and the like out of sight. Have at least the front of your house and the trim painted, if necessary. Sweep the porch and the front walkway. After dark, turn on your front porch light and any other exterior lighting.

2. Clear out the clutter. Real estate agents say buyers won't purchase a home they can't see. If your home has too much furniture, overflowing closets, crowded kitchen and bathroom countertops or lots of family photos or collectibles on display, potential buyers won't be able to see your home. Get rid of anything you don't need or use. Fill up your garage or rent some off-site storage space if that's what it takes to clear out your home.

3. Use your nose. Many people are oblivious to scents, but others are extremely sensitive to offensive odors. To eliminate bad smells, bathe your pets, freshen the cat litter box frequently, shampoo your carpets, dry clean your drapes, and empty trash cans, recycling bins and ash trays. Place open boxes of baking soda in smell-prone areas, and refrain from cooking fish or strong-smelling foods. Introduce pleasing smells by placing flowers or potpourri in your home and using air fresheners. Baking a fresh or frozen pie or some other fragrant treat is another common tactic.

4. Make all necessary repairs. Buyers expect everything in their new home to operate safely and properly. Picky buyers definitely will notice - and likely magnify - minor maintenance problems you've ignored for months or even years. Leaky faucets, burned-out light bulbs, painted-shut or broken windows, inoperable appliances and the like should be fixed before you put your home on the market. These repairs may seem small, but left undone they can lead buyers to question whether you've taken good care of your home.

5. Introduce lifestyle accessories and make your home as comfortable and attractive as possible. Set the dining room table with your best dishes. Put out your only-for-company towels. Make up the spare bed. Hang some fresh curtains. Put some logs in the fireplace. Use your imagination.

6. Get a buyer's-eye view. Walk up to your home and pretend you've never seen it before. What do you notice? How do you feel about what you see? Does the home seem inviting? Well-maintained? Would you want to buy this home? Your answer should be an enthusiastic yes!

How do Home Sales Affect You?

Written by: Lankarge/Nahorney for HomeInsight

Home prices nationwide have grown an average of 53% in the past five years - what does that mean to you? Simply put, brisk home sales help keep the economy humming - they have become one of the most important drivers in our consumer-based economy.

Since 1929, stocks have returned an average of 10 percent per year, making them one of the best long-term investments consumers can make. But the average homeowner has gotten that same 10% over the past five years on their primary residence, making them nationwide feel wealthy, and this in turn has fueled consumer spending. (Historically, homes have appreciated by about 2 percent per year.)

To see a market snapshot of current home values, click here. Interested in home values in your region and the future direction of home prices? See articles about the Northeast, South, Midwest, and West.

Job Growth

Not only do home sales help keep the economy humming but they are also responsible for job growth, and help to make increasing wages possible.

Consumer purchases continue to comprise a growing part of the economy, and home sales are a major driver in consumer purchasing. Home sales provide a pile of cash to the seller, enabling the purchase of another home, or of other goods and services, which also helps the economy.

New homeowners move into a home with energy and enthusiasm, spending money on everything from appliances, to furniture, window treatments, and rugs. New homeowners tend to want to make the home their own, and spend a great deal during the first two years in a new residence making improvements, from cosmetic changes such as a new coat of paint to major renovations such as room additions.

Piggy Banks

Home values also matter because homeowners are more likely than ever to use their homes as banks, extracting their growing home equity to make additional purchases such as a new car, major home improvements, or to pay down credit card debt. So when home values are either flat or declining, those who have recently purchased a new home may be shut out of this source of money, which can have a dampening effect on the economy.

And with the average homeowner moving every seven years, buying a home at the top of a market, and then looking to sell when the market begins to move down, can leave homeowners upside down on their mortgage, with more to pay on that mortgage than their home is currently worth.

There is also the psychological aspect to home values. Homeowners whose home values are increasing often are more positive about the future direction of the economy and are more likely to keep consumer spending on the rise, supporting the economy. Even though a decline in home values actually represents a "paper loss" unless the home is sold, homeowners whose homes are worth less that the purchase price are more likely to have a more negative view of the direction of the economy, and may spend less, depressing consumer spending and creating a drag on the economy.

Rising home values are important to the economy, but home values that increase at too rapid a rate can depress the economy, pricing out some consumers out of the market. Exceptions to this rule appear to be shorefront homes, desirable retirement communities, and states with vibrant, growing economies.

Massachusetts Leading the Way

Leading the nationwide growth since 1980 has been Massachusetts, according to OFHEO. While home prices rose "only" 70.70 percent in the five years ending June 30, 2005, Massachusetts homes have appreciated a whopping 607.07 percent since 1980. This dramatic increase has been driven by sales in Boston and its suburbs, as well as Barnstable County, which includes desirable retirement and second home communities of Cape Cod and the islands of Martha's Vineyard and Nantucket.

Next in appreciation since 1980 is New York at 492.33 percent, followed by Rhode Island at 469.61 percent, a state whose desirable coastline has attracted many seeking a second, or retirement home.

Many economists have predicted that the housing "bubble" will pop in markets that have gotten overheated (see the states mentioned in the sidebar). But even though your state or region may not directly feel the effects of that bubble popping through lower home values, if enough of those bubbles pop, the economy as a whole will cool down, and you may feel the effects in the form of a slower job market, lower raises, or perhaps higher loan rates.

Keeping an eye on home values can help you make educated purchasing decisions. Check home values in your area by clicking here. To keep an eye on home values in your region, see up-to-date articles about the Northeast, South, Midwest, and West.

10 Steps to House Hunting with a Well-trained Eye

Written by: Lankarge/Nahorney for HomeInsight

It sounds like a great listing - in your price range - in a good neighborhood - with features you're looking for. First impressions mean a lot - but you find the bushes are overgrown, the front hallway is covered with tacky foil wallpaper, the kitchen cabinets are painted dark brown, the living room rug smells musty, and the hardwood floors have black water marks on them.

Should you head back out the door? Maybe. But to fully determine whether you should cross this house off of your list you'll need to gather more information and perhaps look past the blemishes to get a full picture of this house's potential. How do you do that? Follow these 10 steps.

1. Start with emotion, but end with facts. Buying a home is an emotional process. You often find yourself trying to determine if this is where you want to spend the next 10, 20, or 30 years of your life (and perhaps raise a family). It's OK if your initial impression is an emotional one. But because the purchase can be the largest you'll ever make, you need to make sure you gather all of the facts you need to make an educated decision. View homes for sale and find out what homes are selling for by clicking here.

2. Look for good bones. Don't get hooked on the decorating. The town or towns you are targeting for your home search likely have a handful of builders who have built a majority of the homes. Get to know the reputation of these builders. Then, before going to look at a home, find out who the builder was. You'll want to be careful when looking at homes built by those with less than stellar reputations.

Then you need to learn to look past the furniture, wall colors, window treatments, and other decorating, and just look at the home layout and flow. New cherry cabinets and granite counters matter little if they are in the galley kitchen and you have a family of five. At the same time a family room with black walls featuring a mural of the moon on one side also matters little if it is big enough for your needs. Aesthetics are relatively inexpensive to fix - major construction is another matter.

3. When looking at room layout, avoid corner doors. Rooms with doorways in the middle of walls flow better than rooms that open in a corner. Remember that when looking for your dream home.

4. Make sure the most expensive stuff works. The two most expensive rooms in a home to renovate are kitchens and bathrooms. If you're stretching to be able to afford a home and still eat, make sure these two rooms don't need renovating anytime soon.

5. Take an inventory of features, what you like and what needs fixing. Good news: With more houses on the market than in the past several years, you'll likely be able to look at more houses before making a decision to put in a bid. Bad news: That means it can get quite confusing to remember the details of each home you look at. Develop a list and for each home you visit, take note of features, things you like, and things that might need fixing (see Keep Them Straight sidebar, above). Click here to find out about features of properties for sale.

6. Is there room for expansion? You might not be concerned with adding onto the home you're looking today, but what about tomorrow? Don't necessarily exclude those additions that don't have room and a logical place to expand, but do understand that you will be limited in your options down the road.

7. Does the basement leak? If you've been lucky enough to live in a house with a dry basement (or perhaps without a basement) it's hard to imagine the havoc a wet basement can bring to your life. If you've ever lived in a house with a leaky basement or hate the thought of a foot of water surrounding your furnace, you'll likely be sure to check that either the basement doesn't leak or it has a system that automatically removes water.

8. What's the condition of the home's exterior? Does it need painting, or is it sided? Does it have painted brick that's peeling? Is the aluminum siding chalking? Improving the exterior can be costly. Check the exterior walls carefully before putting in a bid.

9. Landscaping: Does it look like a park or a landfill? Landscaping not only includes the grass, bushes and any gardens, but also the hardscaping - the sidewalk, deck and/or patio. People are spending more time than ever outdoors and you're likely no different. Landscaping improvements can be costly, but is one area in which homeowners often tackle projects themselves. If you have the time, energy, and expertise you can save money by doing some landscaping improvements. But costs can add up here - be sure to factor that into your decision and/or bid.

10. Check the zoning, nobody likes surprises. Too often homeowners are horrified to learn that their tranquil neighborhood is being invaded by multifamily housing, a big commercial business, or a 24-hour convenience store. Before you put a bid on a house go the town hall, city hall, or county register of records and find out the zoning of all contiguous properties.

7 Keys to Selling Your House when Sales Are Slow

7 Keys to Selling Your House when Sales Are Slow
Written by: Lankarge/Nahorney for HomeInsight

What once was a booming residential real estate market across the country has slowed to a trickle.

Rising mortgage rates are lowering the affordability of homes and increasing numbers of sellers looking to cash in on the rapid price appreciation over the past few years has led to a dramatic reduction in buyers and a rapid increase in the number of homes for sale. These factors have led to too few buyers looking at too many houses, putting buyers back into the driver's seat.

It's a whole new world for home sellers. So, how do you make your house stand out so it will sell when sales are slow?

1. Price your home aggressively. When mortgage rates are low and buyers are chasing too few houses for sale, sellers can ask high prices and get them. Even when houses are overpriced for the market, sellers are likely to receive some offers, as buyers are often desperate to find a home that meets their needs.

But, when things are slow, pricing is absolutely critical. But instead of pricing your home aggressively high, you should consider pricing your home no higher than the middle of the range for homes comparable to yours. And if you need to sell your home quickly, you should consider pricing your home among in the bottom 25 percent of comparable homes. Why? With few buyers chasing many homes, you need to quickly get the attention of those who are serious about buying. If your home is priced too high, you many never get buyers to even consider looking at your home. To see data on comparable homes, click here.

2. Quickly cut the price if you don't get action. Everyone wants to sell their home for as much money as possible. Nobody wants to "give" their home away. But homes that languish on the market in a slow market often are forced to make one price reduction after another, as buyers and real estate agents may begin to question why the home has been on the market for so long. In a slow market with few buyers you may want to cut the price to more quickly make the sale. Learn what properties sold within 30 days or less and for how much by clicking here.

3. Find the right agent — it's critical. Any agent can list your house. But when buyers are few you need a first-class real estate professional on your side. They'll help with everything from pricing to advising you on the other 6 other points in this article. Find leading agents who outsell other agents in your home town. Talk with your family, friends, and neighbors to identify the best agents in your area. Interview several - hire the one who you believe will do the best job for you.

4. Curb appeal. After pricing, nothing will bring more potential buyers into your home than a house with outstanding curb appeal. Take a walk down your street with a critical eye. How does your home stack up from the outside? If it doesn't stand out from the rest then it's time to get to work.

5. Consider home staging. The quickest way to add value to a home for sale is a fresh coat of paint. After, you may want to consider home staging—either do it yourself or hire an outside firm. A home staging professional will come in and take away some furnishings and rearrange others to make your home show better. When home sales were going gangbusters this was a technique used mostly by those selling high-end homes. When things get slow and homeowners need to sell, more people find home staging professionals to help them prepare their home to make it home more appealing to prospective buyers.

6. Fix stuff. The loose railing. The broken pane of glass. The closet door off of its track. The leaky faucet. They all need fixing. If you don't have the time or skill, find a handyman to go through your home and make repairs. Also, consider replacing the old roof that looks like it might leak, the antique furnace, and the stained rug. When there are few homes on the market, sellers sometimes offer cash at closing to repair the roof or for the stained rug. With so many homes on the market, buyers can afford to only bid on those that are in move-in condition. Fix what needs repair before listing your house.

7. Offer flexible terms. Flexibility is the key now. You'd like to close in two months, but the buyers might be in a hurry and need to close sooner. Find a way to make it happen. You were planning to take the appliances to your new home but the buyers make a bid near asking price - but with the appliances. Leave the washer and dryer behind (and then go find a store that offers no payments on appliance purchases for a year). And for those items that have deep sentimental value, make sure they are removed prior to any showings. Competition between home sellers is high - you don't want to lose the only buyer who has looked at your home in a month.

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Keller Williams Realty - Career

Real Estate Roller Coaster

Keller Williams Realty Grows

Keller Williams Realty grows to 72,303 associates in shifting market
Firm strengthens its lead as the fourth-largest real estate franchise in North America

AUSTIN, TEXAS (November 28, 2006) — Keller Williams Realty Inc., the fourth-largest real estate franchise company in North America, continues to attract associates despite shifting markets in cities across the nation. In October, the company reported having 72,303 associates and 591 market centers.
The latest tally widens the gap between Keller Williams Realty and the fifth-largest real estate franchise company, Prudential Real Estate Affiliates Inc., which reported having 64,000 associates in October of this year.
Keller Williams Realty CEO Mark Willis attributes the company’s steady growth rate in the midst of a shifting market to Keller Williams Realty’s agent-centric, learning-based business model and razor-sharp focus on technology and the Internet.
“Market trends are a non-issue at Keller Williams Realty, because no matter what the analysts say, our No. 1 mission has been — and will always be — to provide our associates with proven business tools, models and technology that get results in any market,” Willis says. “I think the associates who are choosing to be in business with us embrace our stance that you can leverage the marketplace to work to your advantage.”

In addition to adding Keller Williams University courses that address business tactics in a shifting market, the company has taken great measures to expand the Internet presence of Keller Williams Realty associates and their listings – targeting an ever increasing market segment of real estate consumers online.
“The National Association of Realtors® reports that 77 percent of today’s home buyers surf the Internet for properties prior to contacting an agent,” Willis says. “We want our associates to have an undeniable presence on the Internet, and we want them to have more control over where and how their listings are displayed.”
The recently introduced Keller Williams Listing System (KWLS) will enable associates to enter their listings data in one place and have that information displayed on Keller Williams Realty agent and office websites everywhere. Keller Williams Realty also is negotiating partnerships with some of the most popular search engines in the world, so associates can display their listings on those sites.
“The organic growth we’ve experienced in the past few years is a testament to our mission to build businesses worth owning and careers worth having,” Willis says. “Simply surviving a tough market is not enough; we teach our associates how to thrive in any market.”

About Keller Williams Realty Inc.:
Founded in 1983, Keller Williams Realty Inc. is the fourth-largest real estate franchise operation in North America, with nearly 600 offices and 72,303 associates in the United States and Canada. The company’s agent-centric culture emphasizes access to leading-edge education and promotes an economic model that rewards associates as stakeholders and partners. Keller Williams Realty, which began franchising in 1990, is growing by more than a thousand agents a month. Keller Williams Realty associates place high value on professional education and a full-time commitment to real estate sales. For more information, visit Keller Williams Realty online at (www.kw.com).

Signs of Low Inflation Keep Long Term Mortgage Rates Steady

By Realty Times Staff
May 11, 2007

McLEAN, VA -- Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 6.15 percent with an average 0.5 point for the week ending May 10, 2007, down slightly from last week when it averaged 6.16 percent. Last year at this time, the 30-year FRM averaged 6.58 percent.

The 15-year FRM this week averaged 5.87 percent with an average 0.5 point, unchanged from last week when it averaged 5.87 percent. A year ago, the 15-year FRM averaged 6.17 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.89 percent this week, with an average 0.6 point, up slightly from last week when it averaged 5.87 percent. A year ago, the 5-year ARM averaged 6.22 percent.

One-year Treasury-indexed ARMs averaged 5.48 percent this week with an average 0.7 point, up from last week when it averaged 5.42 percent. At this time last year, the 1-year ARM averaged 5.62 percent.

"Low employment growth in April -- the slowest pace since November 2004 -- and downward revisions to both February and March job growth tempered market concerns of future increases in the rate of inflation," said Frank Nothaft, Freddie Mac vice president and chief economist. "As a result, mortgage rates were little changed this week."

"Despite a slowdown in house price growth, borrowers continue to refinance their loans, extracting approximately $70.5 billion in cash from their home equity in the first quarter of 2007, down slightly from $77.0 billion in the fourth quarter of 2006. According to the Federal Reserve Board, homeowners had nearly $11 trillion in home equity at the end of 2006, an increase of 30 percent over the past three years."

Tax Relief Available for Hurricane, Tornado Victims

By M. Anthony Carr
It's probably one of the worst things you could imagine -- a hurricane, tornado or earthquake occurs, without warning, and your home is severely damaged or absolutely destroyed.

One would hope that homeowners are covered in such instances, but we all know that not every insurance policy is created equal and some homeowners lose everything. Thanks to provisions at the IRS and Presidential-declaration of disaster areas, at least the homeowner is allowed tax relief for his or her losses.

The first place to go to after a natural disaster is to the Federal Emergency Management Agency's online listing of Federal Disaster Areas to see if your area has been declared as a disaster area. This announcement is what gets the ball rolling on whether you can declare deductions on your taxes from loss of uninsured property and for losses not covered by your homeowner's policy.

There have already been 26 Presidentially-declared disaster areas in 2007. These are locales where damage to property and life exceeded the normal damage from natural disasters.

While the devastating tornadoes that hit Kansas made the national news and made all of us aware of that massive damage, many other areas are declared disaster areas for such disasters as severe winter storms, landslides, mudslides and flooding. Nevertheless, just because an area is declared a disaster area, doesn't necessarily mean that the homeowners in that area will also receive tax relief. But it's the first place to start.

Once you see if your county has been listed, then visit the Internal Revenue Service's section on disaster relief. You'll see on this page that the latest declared relief areas include:


May 2007 Kansas storm, tornado victims

April 2007 Texas storm, flooding victims

April 2007 Northeast storm, flooding victims

March 2007 New Mexico storm, tornado victims
If you go to this area and find that your area was declared a disaster area a while back (several years) you can always amend a past tax return if you believe that you should have received that tax relief. Be sure to look on the site or call the IRS to find out if there are limitations on the relief.

Not all damage is deductible. The largest deduction appears to be for people who have losses and have carried no insurance whatsoever. The Q&A area answers most questions for homeowners, such as how the deduction for uninsured losses would be counted. For instance, the way an uninsured loss is handled is, "ordinarily, to figure a deduction for a casualty or theft loss of personal-use property, taxpayers must reduce the loss by $100 and also reduce the total of their casualty and theft losses by 10 percent of their adjusted gross income. Only the excess over these $100 and 10 percent limits is deductible."

As you're researching on IRS.gov what is deductible and what's not, you'll be looking for items such as Notices, Forms, Tax Topics and Publications. These are all linkable items on the web site and very useful in your research on what deductions that area allowed following such losses.

Finally, "affected taxpayers in a Presidentially-declared disaster area have the option of claiming disaster-related casualty losses on their federal income tax return for either this year or last year," according to IRS.gov. "Claiming the loss on an original or amended return for last year will get the taxpayer an earlier refund, but waiting to claim the loss on this year's return could result in a greater tax saving, depending on other income factors.

Individuals may deduct personal property losses that are not covered by insurance or other reimbursements, but they must first subtract $100 for each casualty event and then subtract ten percent of their adjusted gross income from their total casualty losses for the year."

Here are some of the Publications listed on the IRS site that help taxpayers looking for tax relief because of a natural disaster:


Publication 4492, Information for Taxpayers Affected by Hurricanes Katrina, Rita, and Wilma: Provides information on tax law changes and relief provisions for victims of Hurricanes Katrina, Rita and Wilma. Download it (PDF 106.5K, 19 pages).

Publication 547, Casualties, Disasters and Thefts: Provides details on how to figure and claim a disaster loss. Download it (PDF 132KB, 16 pages), or read Pub. 547 online.

Publication 584, Casualty, Disaster, and Theft Loss Workbook. Read it online or download it (PDF 139KB, 24 pages).

Publication 584B, Business Casualty, Disaster, and Theft Loss Workbook. Read it online or download it (PDF 68KB, 8 pages).

Publication 2194, Disaster Losses Kit for Individuals (PDF 860KB, 100 pages). Attention: Publication 2194 is being updated with new provisions of the Katrina Emergency Tax Relief Act of 2005.
For information on these provisions, see News Release 2005-119, New Law Eases Loss Limitations for Katrina Victims.


Publication 2194B, Disaster Losses Kit for Businesses (PDF 943KB, 78 pages): Contains various IRS publications and forms related to claiming disaster losses.

Publication 3833, Disaster Relief: Providing Assistance through Charitable Organizations (PDF 507KB, 28 pages): Explains how the public can use charitable organizations to help victims of disasters, and how new organizations may obtain tax-exempt status.