What Does Your Living Room Say About You?

Your living room says more about you than any other room in your house—whether or not you want it to.

With most floor plans, it’s the first room guests are ushered into, and where they spend the most time schmoozing, hanging out, and generally soaking in your style. Some people are messy; others are obsessively organized. Some living rooms are closed off, others are open.

So what signals is your living room sending about you?

Open layout

If you actively sought out an open layout for your living room, it’s a good indication that you keep up with the hottest and most up-to-date architectural trends—or maybe you just inherently understand the vast appeal of a free-flowing floor plan. You’re an entertainer at heart, even if it’s just you and your spouse assembling fish tacos while keeping an eye on the Super Bowl (or maybe the latest episode of “Downton Abbey”), and you think communication and interaction trump private space. You don’t just tolerate controlled chaos—you thrive in it.

Neutral everywhere

You prefer a blank canvas, but it’s never boring. Neutrals are classic and crisp, immune to the variances of seasonal trends. You’re practical, down-to-earth, and easy to please—and happy to be a backdrop for others’ wild antics. But when it comes to décor, you’re not scared to throw in a few colors to liven things up.

Bright colors

Criticism? Haters gonna hate. Who cares! You’re bold and gregarious, eager to show off your tastes and don’t give a hoot whether your guests dig it or not. Your living space makes a proud statement—just like you. Like your décor, your personality is colorful and bright, if a bit overwhelming to the shy among us. (Don’t worry: We’ll come around.)

Metallic accents

You’re a glamour queen or king, full of sparkle and shine. You’re attracted toHollywood Regency, and we bet you’ve got a few bold pops of color tucked away in your bookshelves, too. You love attention and being the star of the show, but you’re happy to cede the stage to friends—after all, you want everyone to feel as glamorous as you.

Formal

You love big-time entertaining with an intellectual twist—from predinner cocktails, to four-course gourmet meals, to galas. We’ll bet we won’t find a single fingerprint on your polished glass cabinets. You’re  not just a clean freak—you’re also meticulous. You’re successful and urbane, and can argue your way through an economics debate without batting an eyelash.

Green thumb

If your shelves are covered in plants and you’ve swapped a gallery wall for a living wall, you’re more than a nature lover. You’re stable and well-balanced—assuming you keep those plants alive, of course—and you’re probably a great listener. You love long hikes and are eager to bring nature home with you.

Gallery wall over the couch

You’re a bit of a Pinterest addict, and you’re proud of the artwork investments you’ve made. There’s no denying your eye is impeccable, and you’re the master of finding the perfect piece at a garage sale—but now that your gallery is made, you’re not sure what blank wall to tackle next. Might we suggest the stairway?

Pristine surroundings

You probably don’t have kids, and if you do, gosh, they’re well-trained. You love order and arrangement, and we’d bet your personality tends toward Type A—you might be just a bit tightly wound. But the payoff is huge: Jaws drop when guests enter your stunning living room (even if they’re a bit nervous about knocking something over). Congrats, you’re the person whom people call when life becomes overwhelming.

A bit of clutter

Don’t let anyone call you a perfectionist. Free spirit, maybe. What’s a bit of a mess in the long run? You’re not a hoarder, but you don’t care if everything is perfect, either. Marie Kondo has no hold over you. You find a lot of joy in your possessions, and you’re proud of your home, but you don’t treat it like precious property.

No TV at all

You’re a bookworm, and that’s great. For you, entertainment is disappearing into a good novel, enjoying deep conversation with friends, or taking in a cup of tea and a warm fire with your pug Humbert at your side. Or maybe you just prefer bingeing on “Jessica Jones” on your laptop—after all, a giant TV can ruin a cozy living room.

Pillows and fluff

Some people might complain about stuffing your couch with throw pillows and fluffy blankets, but they’ve never known the joy of curling up in cozy heaven and chilling with a glass of wine. Comfort is your No. 1 priority—and if those pillows happen to perfectly complement your rug, that’s a bonus! Shine on, you downy dreamer.

Shared from:  http://www.realtor.com/advice/home-improvement/what-does-your-living-room-say-about-you/

Home Design Tips from Ellen

Who knew? Ellen DeGeneres isn’t just an affable talk-show host and beloved comedian. She’s also an extremely prolific home designer and house flipper, as shown in her new book, “Home.”

“I wanted to be an interior designer when I was 13,” DeGeneres admits in her book—which explains why, over the past 25 years, she has bought and renovated nearly a dozen homes. Each home was an adventure and an education, she recalls. Below, from her book, are a few lessons she’s learned, as well as gorgeous photos of her interiors that illustrate her points.

Neutral colors make the best palette

“I like neutral colors with stronger colors in art, pillows, or a nice throw. Big color statements on walls or furniture can be fun, but limit the possibility of changes.”

———

Get a chalkboard in your kitchen

“Chalkboards make a great, fun statement in a home. You can draw on them or use them practically to make lists or write notes. You can write something like, ‘Remember to put away your shoes,’ just as a random, not-specific-to-my-life example.”

———

Less is more

“When finishing a room, I find it’s often useful to take one thing away. I always want to make sure it doesn’t look overdone or fussy.”

———

Go vintage

“Vintage fabrics can help personalize your home. They can be used for throw pillows, upholstery on a headboard—even a dog bed.”

———

Let there be light—lots of it

“Every room needs more than one light source. Lighting can be harsh or insufficient if you just rely on ceiling lighting. I like soft, even lighting, and I think floor and table lamps are essential to creating the right mood.”

Shared from:  http://www.realtor.com/advice/home-improvement/five-home-design-secrets-from-ellen-degeneres/

Buying a Second Home in Seven Steps

Thinking about buying a second home? Whether you're looking for an investment property, a getaway, or a place to eventually retire, plan to take these seven important steps.

One: Decide Whether a Second Home Makes Financial Sense

Whether or not you consider yourself an investor, you no doubt want your second house purchase to be a sound financial move. Yet many second-home owners complain that the house -- including not just the purchase price, but ongoing expenses -- ended up costing more than they'd ever imagined. You'll want to tally up your likely expenses, factoring in any extra costs based on the fact that you won't be there every day (such as hiring a management company and the relatively high cost of hazard insurance). Then you'll need to build up your cash reserve, and, if you plan on renting out the property, determine how much you can expect from rental income (it's often not enough to cover your monthly costs).

Two: Decide Where, and What Type of Home You'll Buy

A home in a badly chosen location won't serve anyone's goals -- an investor can't resell or rent it, a vacationer won't enjoy it, and a future retiree may have to pick up and move again. You'll need to rely on both market research and your own personal preferences. Look into factors like the strength of the local economy, trends in house resale values, convenience and amenities, property tax rates, the quality of local schools and medical care, and more.

The type of home you buy is similarly important. The costs and demands of owning a single-family home are different from those of owning a condominium, townhouse, or co-op. Which type serves you best will depend on factors such as cost, location, and upkeep. For example, condos, townhouses, and co-ops typically require less maintenance, since the areas of the property outside your unit are governed and maintained by a community association (of which you'll be a member). However, you'll pay for that maintenance in the form of monthly fees and special assessments.

Three: Look into the Tax Implications

Second-home owners need to worry about both property taxes (which vary by state and locality) and, if renting out the place, income tax. Though taxes are inevitably a burden, a little advance planning during the house-hunting process can save you thousands of dollars a year. For example, sometimes buying a home just over a town's border can significantly trim your annual property tax bill. And if you're renting out a vacation property, the amount of days you yourself spend there can make a difference in how much you'll owe in income tax.

Four: Come up With Short-Term Cash and Long-Term Financing

Most people pay for their home with a combination of a down payment and a loan for the remaining amount. The higher your down payment, the lower the loan, and the more house you can therefore afford. In order to come up with down payment cash (which should be at least 20% of the purchase price), you may need to get creative. Using the equity in your primary home, borrowing against a life insurance policy, or refinancing your car are among the possibilities.

Most buyers will also need to get a home loan to help with the rest of the financing. Shop around: By reviewing the various mortgage options and sample payment schedules and factoring in your own short- and long-term goals, you should be able to find a mortgage that suits you.

Five: Consider Nontraditional Financing Methods

One unique way to help finance your second home is to tap the "Bank of Family and Friends." Borrowing from parents, siblings, or close friends lets you keep the tens of thousands of dollars in interest you'll pay over the life of your mortgage loan within your circle, rather than handing it over to a bank.

Another money-saving approach is to partner with another purchaser; for example; sharing a vacation home in the sun. Shared ownership is a growing trend -- but not one to rush into lightly. You'll want to start by determining whether co-ownership with a particular person is likely to work. Then draft a written agreement to spell out how ongoing costs will be split and deal with other potential sources of contention, such as what happens if one of you wants out after a few years or if one of you dies.

Six: If You'll Be a Landlord, Be Prepared

Some second-home owners plan to rent out their properties long-term with the idea of eventually turning a profit (rental properties usually take some years to make money). Others just want to rent out their property periodically as a means to offset expenses. Either way, you're taking on the role of a landlord, which means more than just following your instincts. Finding good tenants or trustworthy vacation renters, understanding and preparing leases or short-term agreements, and dealing with ongoing management and repairs are just a few of the practical and legal issues involved. Also, the obligations of managing a long-term rental are quite different from those of a periodic rental.

For more on becoming a landlord, see First-Time Landlord; Renting Out a Single-Family Home, by Janet Portman, Marcia Stewart, and Michael Molinski.

Seven: Take Steps to Protect Your Second Home

Protecting your property starts before you buy and continues long afterwards. For example, you'll want to get a proper home inspection prior to purchasing, so as to deal with some repair issues up front and get a sense of what other repairs may be looming.

You may need to purchase title insurance -- typically required by the lender -- in case problems such as past ownership or debt claims on the property surface after the purchase.

Your lender will also require that you carry hazard insurance, to protect your property against damage from such causes as theft, fire, flooding, or windstorms. The cost of insurance for second homes is usually higher than for first homes, since you won't be there as much. You will probably want to add liability insurance, covering you and members of your household for accidental injuries to your visitors. (Together, hazard plus liability insurance add up to the standard homeowners' insurance package.) Taking these protective steps will guard not only your home, but your peace of mind.

Shared from:  http://www.nolo.com/legal-encyclopedia/buying-second-home-seven-steps-30010.html

DOWN PAYMENT DILEMMA

HOW DO YOU KNOW HOW MUCH TO PUT DOWN ON A HOME?

You'd be a homeowner right now if it weren't for one thing: the down payment. Right? Even for those who have decent credit and make good money, the down payment is often the great homeownership killer.

For many others, who do have enough money set aside to make a substantial down payment, the question is: how much? Conventional wisdom—not to mention most of the banks and a good portion of homebuying and financial experts—will tell you that 20 percent is the standard bearer when it comes to down payments. But is it really necessary to put 20 percent down?

The short answer is: no.

Now for the long answer.

"Raising a 20 percent down payment isn't an easy thing to do. Fortunately, you don't have to. "It's a myth that all homebuyers must have a 20 percent down payment to buy a home," says Nancy Herrera-Siples, a Riverside, Calif., branch manager at Primary Residential Mortgage on U.S. News. "So why do you constantly hear that you need to put 20 percent down? Because if you don't, it usually means you'll have to shell out money for either private mortgage insurance or government insurance, which is usually financed by the Federal Housing Administration (FHA)."

And there's another rub for those who are already struggling to come up with the minimum down payment: that extra couple of hundred dollars per month feels like a penalty. It's not, of course—"Mortgage insurance protects the lender in case you can't make your payments and the house is foreclosed on," said U.S. News—but that money can make a significant difference for those who are stretching to buy a home.

Still, when your only option to buy is a low down payment, which can mean an FHA loan or one of the new low down payment loans from Freddie Mac and Fannie Mae—"At the end of 2014, the two government-backed companies announced plans to slash down payments from 5% to 3%," said CNN—PMI might literally be a small price to pay. Especially if swelling rents are making homeownership look more and more promising. Remember that PMI does go away eventually when your loan balance is 80 percent or less of the home's value. If you're in an area where homes are rising in value, this could happen sooner than you think.

Still confused about the ins and outs of down payments? Here are a few reasons to go high…or low.

When to make a substantial down payment

• When you're looking to keep your monthly payment as low as possible and have cash to spare
• When you just can't fathom paying PMI
• When your goal is to buy a forever home and own it free and clear
• When you are approaching retirement age and can envision a reverse mortgage sometime down the line
• When you want to buy your house and pay it off as quickly as possible
• When the rate is lower with a higher down payment. "The more you put down, the better position you are in for negotiating a lower interest rate with your lender," said Credit.com. Plus, a "low down payment might affect other loan features, such as…the points, which are upfront interest charges," said Banking My Way.
• If you're worried about being under water. If the market should drop in your area, you run the risk of owing more than your home is worth.

When to go low

• When you don't have the funds for a higher down payment and can't earn or borrow them quickly enough
• When the rate on your FHA or Fannie or Freddie loan is comparable to that you'd get with a higher down payment
• When you need to escape a high-rent situation and the monthly payment on a house is lower than what you're currently paying, even with the PMI factored in
• When you're confident your home will appreciate quickly, allowing you to refinance and get rid of PMI quickly
• When your investments can't be touched without a penalty or are returning better than the interest rate you'll get on your home
• If you have something better to do with the money. "If you bought a $400,000 home, 5% down would be $20,000, while 20% down would be $80,000—a whopping difference. An immediate need such as a college tuition payment would make the smaller down payment more appealing," said Banking My Way.
• When you feel more secure setting money aside for emergencies instead of tying it all up in your house.

Shared from:  http://realtytimes.com/consumeradvice/buyersadvice1/item/38415-20150917-down-payment-dilemma-how-do-you-know-how-much-to-put-down-on-a-home

Renovating With Your Kids: Projects You Can Do Together

Renovating your home? Why not make it a family affair, getting the kids involved in projects that can make them feel included and proud of their work.

Not every job is gong to be right for your kids.

But there are several tasks they can do with supervision, and a few they might be able to handle on their own, depending on their age and maturity level.

The first step is to properly explain the tasks at hand and identify any risks.

"Parents really need to talk to their kids who are old enough to understand and lay down ground rules for the renovation," says Eric Phillips, vice president and general manager at DreamMaker Bath and Kitchen of the Triangle in Apex, NC on Bob Vila.

"And once the rules are there, parents really have to have the discipline to enforce those rules with their kids."

Feeling good about their ability to help? Go renovate something together!

Cleaning and chucking

Before any renovation can start, you'll probably have some cleaning out to do. The traditional three-pile method of "keep, sell, donate" can work well for kids. Telling them they can keep whatever they make on the sale of their old things usually inspires a job well done.

Painting the walls

Your kids have probably been painting since before they could speak. With their fingers, anyway. They probably haven't lost the love of covering surfaces in pretty colors, so set them up with a paintbrush and let them go! You'll want to give them a basic tutorial that illustrates how to best get paint on the desired surface without dribbles. And don't forget to prepare the area with heavy-duty dropcloths, tape up baseboards, and move furniture and furnishings out of the way so they don't accidentally get splattered.

teal & lime

Sanding

Use caution with electric sanders, or any power tool for that matter, when your kids are involved. But sandpaper or sanding sticks and a surface that needs to be stripped down could be a good way to bring some kids in on a renovation. You'll need to make sure they have a dust mask, eye protection, and a well-ventilated area. Sandpaper in tender hands might cause abrasions, so make sure there are gloves as well.

Creating new art

You probably already have a stack of your kids' art showcased or stashed in your home. But directing them to create something new specifically for a showcase wall or tabletop is a great way to involve them in your renovation without worrying about them getting hurt. Choosing colors and materials together at an art store and show them ahead of time where their art is going to be displayed can get them excited about this new project—and maybe make them feel better about the fact that they don't get to handle the nail gun.

Backsplash

Doing your own kitchen backsplash is a relatively easy DIY project you can do over the weekend and have a little fun at the same time. If you're doing mosaics on a sheet, kids as young as five or six should be able to help place them and even help adhere them to the wall and apply/clean up the grout.

Pulling up carpet

Kids who love to dismantle stuff (read: all kids) will love being able to help roll up carpet for removal. The box knife needed to slice it up is probably not the best tool to put in a kid's hands, but taking up the tack strip? A handy child can use a pry bar and rubber mallet to handle this task. Just take proper precautions with gloves, eye protectors and the like. Those nails can be nasty.

Chasa

Laying wood floors

Kids can be helpful gluing and placing wood planks and might even enjoy the process. Can you leave your five-year-old alone to handle the job? Probably not. But working side-by-side with your children laying out the wood pieces will make you all feel good every time you take a step.

Wallpaper removal

The tedious peeling away of old wallpaper might be the perfect task for your kids. Even if they don't finish the job, any wallpaper you don't have to peel off yourself is a bonus. Trust us.

Other demolition

An invitation to break stuff? Oh yeah! Just remember to take all safety precautions (goggles, closed-toe shoes, and gloves if needed) and make sure the demo is appropriate for the age group (i.e. you might not want to leave your five-year-old alone with a power saw.).

Gardening

If your renovation includes an outdoor element, you're in luck! Kids love to get dirty. Depending on the age and inclination of your child(ren), a bag of soil and a shovel might be considered a good time!

Shared from:  http://realtytimes.com/consumeradvice/homeownersadvice1/item/38100-20150907-renovating-with-your-kids-projects-you-can-do-together

Focus On Functionality When Buying Your Home

You have to live somewhere. For most of us, the choice is simply functional -- we all need food, clothing, and shelter, but we also want our homes to function well for our needs and preferences.
Functionality begins with making a good decision, based on your requirements and what you can afford. Whether you rent or buy, you decide which home to choose based on affordability, availability and functionality.

Renting is a great option for the short term, when you're building your savings and may have another move or two before settling down to a home of your own. The functions of renting are independence, affordability, and mobility. As your life matures, you may become more interested in homebuying because your ideas of functionality may change.

You may want more room, privacy, and better access to certain amenities, schools, family or work. You may want a different lifestyle that your current neighborhood doesn't foster. You may want the autonomy to choose and change the style of your home so you can enjoy your surroundings with your own décor. You may want a home that allows you to expand your interests, such as cooking in a larger kitchen, creating art in a studio, or having a large back yard for gardening and entertaining.

As your preferences become more focused and as the needs of your household change, you may find that owning a home is more suitable for your lifestyle. But, affordability has to be part of the function. In most areas, you can buy a home more affordably than renting.
Let's say that you find a 2400-square foot home for sale or lease. You may be able to rent it for $1.25 per square foot, or $3,000 per month, but you can buy the property for $1.65 per square foot or $400,000. When you finance the same property over 30 years, your payment is closer to $1,900. Add in typical property taxes and hazard insurance, and you're at about $2,700 per month, making buying the home a better choice for the long term.

You trade the mobility of renting for the opportunity to build equity. When you own a home, it usually takes several years of ownership before you can build enough equity to cover your transaction costs, making owning a home a long-term investment.


Functionality is about how the home itself can serve you. Square footage can indicate if a home is large enough to have the features you want, but you won't know until you go inside if the floor plan, features and number of beds and baths suit your wish list.

Choosing a home is really about how you want to use the space you have. As the owner, you have the option to leave things as they are or you can add or remove features as you wish, to improve the functionality of your home.

Whether you rent or buy, choosing a home is about getting the most benefit for your money. It should be a decision based on how well the location, space, and design can serve your needs and pocketbook.

Shared from:  http://realtytimes.com/consumeradvice/buyersadvice1/item/37585-20150820-focus-on-functionality-when-buying-your-home

The Surprising Way Your Job Can Affect Your Mortgage

It’s pretty well-known that when you apply for a mortgage, a lender is going to look at your income when deciding whether to approve you. But you may be surprised to hear that your commute can also be a major factor. Here’s what you need to know about getting that mortgage.

Occupancy is an integral component of any home mortgage loan. An owner-occupied home is considered to be the least-risky for a mortgage loan. Second homes and vacation homes follow, with investment properties being the most risky type of financing. The lender assumes if the borrower somehow came into dire financial straits, they would be more likely to walk away from an investment property than the roof over their head. For this reason, lenders charge more—in some cases considerably more—for properties that aren’t owner-occupied.

Now, home lenders go to great lengths to ensure they have met all the credit criteria set forth by Fannie Mae and Freddie Mac. If it’s discovered after the loan is sold that the originating lender made a material oversight in the creation of the loan, the lender may be forced to buy back that loan. A buyback is incredibly costly to a mortgage company’s bottom line. This is why underwriting is necessary, and documenting everything is paramount.

So mortgage underwriters (the decision-makers on approvals) thoroughly review each mortgage application, questioning “Is this loan scenario plausible?” Mortgage underwriters are incredibly sharp. They are specifically trained to mitigate risk for a mortgage company by documenting, questioning, and leaving no stone unturned.

And the proximity of your job from your prospective new home is something they will scrutinize.

How a long commute can affect your mortgage

Let’s say you’ll work two hours away from your new home, leaving you to commute four hours per day, five days per week. Such a scenario would be difficult for an underwriter to believe without some additional layer of support detailing the unique circumstance.

Maybe in this type of scenario you have the ability to telecommute, where you commute a few days per week and work from home on the other days. Perhaps your job description letter from your human resources department could explain the nature of your occupation, how important traveling is to your job, and what percentage of your job requires traveling. This is the type of documentation mortgage companies want to see. If your job proximity is an unexplained factor on your loan, then an underwriter could change your transaction to an investment property. This would come at a cost of higher rates, fees, and a subsequently higher monthly payment even if your intention is to live in the home.

Please, Mr. P

Generally speaking, an hour commute from where you work to where you will be living is acceptable. Anything beyond an hour commute will open up questions, prompting the need for detailed explanations and                                           more paperwork.

Be clear and upfront with your mortgage company about what it is you’re trying to accomplish. Make sure your documentation supports your scenario well. Alternatively, in some cases, it might be better to structure the home as a second home, especially if you live in one property the majority of the week and an alternative home on the weekends, for example. What you have to reveal within your proposed scenario will dictate the loan structure.

What’s considered a primary residence?

As long as the scenario can be justified on paper, documented and explained, and if your true intention is to live in the home, it is a primary residence transaction and is considered as such on your loan application. The more unique your scenario is, the more specific you’ll need to get in documenting that the home you are financing is in fact a primary residence. The following things would be needed to document such a scenario:

• letter of explanation
• job description specifically identifying travel time requirement
• documentation supporting the commute time
• offer letter from new employer stating job acceptance if relocating

What’s considered a second home?

Your transaction could be considered a second home if the property is more than an hour away from work and is in a resort-type area. If the underwriter determines it to be a second home, you’ll be required pay at least 10% down.

What’s considered an investment property?

This can be the most dreaded scenario for someone who’s intending to actually occupy the home. Let’s say a loan is sent to underwriting as a primary home or second home, but something in the file with the location does not jibe with the believability of the transaction—then the underwriter determines it to be an investment property, which requires 20% down.

Typically, it would not make sense if the property you are planning to buy is right down the street from your primary home as secondary residence; it’s an investment property. The home would have to be a reasonable commute time from the primary home—up to an hour away—for the loan to hold water as secondary residence. If the property is a vacation rental, for example, it could be a tough nut to crack if you plan to finance the home as second home, especially if tax returns identify the property as a rental. Tax returns hold all the cards in residential mortgage lending. As far as proximity to your home, an investment property has no limitation; it could be a few miles away or hundreds of miles away.

Because the way the loan is structured can greatly affect the cost of your home, it’s important to have a good idea ahead of time to know how much house you can afford (this calculator can help you figure that out). This is why it’s also important, if your loan has any “outside the box”-type structure to it, to make sure you work with a loan officer who has a thorough knowledge of the underwriting process, which can only be acquired through years of experience.

Your credit score is also a big factor in how much your mortgage can cost you, so check your credit far in advance of shopping for a home to determine whether you need to take some time to build your credit. You can get your credit scores for free from many sources, including Credit.com, to see where you stand.

Shared from:  http://www.realtor.com/advice/finance/the-surprising-way-your-job-can-affect-your-mortgage/

9 Real Estate Myths - Debunked!

9 Real Estate Myths That Need Debunking

We've all been fed—and have sometimes believed—more than a few old wives’ tales: Poinsettias are lethal, tomatoes are vegetables, and a pat of butter will soothe that nasty burn. But what about the popular myths in real estate?

Real estate myths are often passed around among buyers and sellers. Some of them have some truth; others are outright false; and still others depend on a variety of factors that are best discussed in depth. Be prepared to help educate your buyers and sellers, so they make the smartest choices, rather than just accept what they hear.

Myth #1: Always change bold paint colors to neutrals before selling.

Reality check: False

Bold doesn’t automatically mean bad, says Kim Grant, broker with John Greene Realty in Oswego, Ill. Sometimes, a room calls for a grand color in order to play up an architectural feature, divide a room in two visually, or add cheer when there’s little natural light. But even if a room sports a bold shade of paint, home owners don’t always have to grab a brush to change it up before listing. Sellers can tone down a strong color with a neutral counterpart, such as a calming rug or tranquil array of fresh greenery. If the room needs a change, Grant suggests sharing the name of a painter, getting a bid on the cost of repainting, and offering a handful of paint chips that demonstrate alternative color options that are more universally appealing. “It’s up to the salesperson to explain that another color can transform the space without much effort,” Grant says.

Myth #2: Never buy the biggest house on a street.

Reality check: Usually true

The largest house on a block or in a neighborhood often is the most expensive, which may affect its appraisal and make its price much higher than other homes in the same neighborhood on comparative analyses, says Michelle Shurtleff, salesperson with the Miami Real Estate Team in Key Biscayne, Fla. Most buyers today are concerned about value when making an investment in a home, so they’ll appreciate a caveat about limiting their pool of future buyers by pricing themselves out of or above the local market, she says.

Myth #3: Always avoid first-floor condos because of noise and safety concerns.

Reality check: False

A first-floor unit can be a terrific bargain and a wonderful place to live, says salesperson L.J. Ganser of Fenwick Keats Real Estate in New York, who has sold many in Manhattan. He has found they offer numerous advantages, and sometimes they just need a few tweaks to dampen possible sounds and make owners feel safer. Among the advantages: “You don’t have to wait for an elevator [or] climb stairs, and you can enjoy the changes in scenery from the ground level up,” he says. Suggest ways to soundproof the unit with a good-fitting door and sound-dampening acoustical panels on the interior side. Also, suggest window treatments that block noise and views such as “top down, bottom up blinds” that can be raised from the windowsill to a height that prevents pesky pedestrians from ogling the buyer’s home but still allow in light. For safety, suggest wrought iron bars, if the unit doesn’t have them, or an alarm system.

Myth #4: Sellers should expect to earn back everything they invested in remodeling projects at resale time.

Reality check: False, but…

A quick check of the annual “Cost vs. Value” survey will demonstrate to sellers that it’s nearly impossible to get 100 percent of the money they put into a redo back when they sell. A siding replacement of fiber-cement brought the highest return in the most recent survey in the upscale project category, and that percentage was 84.3 percent. Still, Roman Bruno, a salesperson with Coldwell Banker in Los Angeles,has found that remodeled kitchens and bathrooms continue to be huge selling points to prospective buyers. “They make a home more attractive to potential buyers—and help them avoid doing the work,” he says. Paul Rosso, ABR, GRI, a salesperson with RE/MAX Properties Ltd. in Newtown, Penn., agrees that it pays to keep a house updated and in line with similarly priced homes in the community. The two times he cautions against upgrades are when a home owner plans to sell soon after making changes and when the market is flat or heading downward.

Myth #5: To sell quickly in this market, you must have the most popular features buyers are seeking.

Reality check: False, but…

It’s true that items such as master bedroom walk-in closets and first-floor master suites are all the rage now. But most homes in Los Angeles don’t have these features because they were built before these residential trends became widespread, says Bruno. “There is always a market for these homes, and someone with a vision may buy it just to update it,” he says. “Right now, we have little inventory and a lot of buyers — including absentee owners and investors — so we don’t see the need for redos as a problem.” Rosso agrees, but warns that the selling price usually reflects the absence of the feature: “Every home will sell, but at the right price. Price is the great equalizer.”

Myth #6: If buyers don’t like an exterior, they’ll never go inside.

Reality check: Often true

Without some curb appeal, most think, “Why waste the time,” says Grant. She suggests buyer’s agents prepare clients for the exterior ahead of time by asking buyers in advance what styles of houses they like and dislike, and even showing them images before checking out a place in person. If a house works otherwise—its layout, number of bedrooms and bathrooms, and maybe a backyard—she says listing agents can find ways to remove or downplay features that may not appeal. Exterior changes may be as simple as adding landscaping that dresses up part of the offending façade, painting shutters and a door to focus attention, or upgrading a walkway with a nicer material.  

Myth #7: Homes with swimming pools are always tougher to sell.

Reality check: False

While they bring with them high maintenance and utility costs, a lot of buyers look specifically for homes with pools, especially in warmer climates. Usually it’s just the seasoned investors and older home owners who shy away from homes with pools, says Bruno. To appeal to buyers not looking for a pool, he suggests sturdy canopies that can slide over the top to make a safe, walkable patio. But he never advises clients to remove a pool. “You don’t cater to a market that doesn’t want something. Instead, you use it as a tool to attract those who do,” he says.

Myth: #8: Green features automatically mean a higher listing price.

Reality check: Not always

Bruno says many buyers find added value in smart, environmentally friendly homes. “LEED certification has become a huge marketing feature, and it’s not just something for home owners living on either coast,” he says. Still, Rosso says many buyers shy away from these houses if they’re priced much higher than comparable non-green homes. “In my area, I haven’t seen buyers willing to pay a green premium. I view them as added value that can help with marketing a home,” he says.

Myth #9: Always remove holiday decorations before listing a home.

Reality check: False

If the decorations are tasteful, they’re fine, says Ganser.  If it's Christmas, go green and minimal with a tree, some fresh boughs on the mantle, and a pretty wreath on the door. “There will be some Grinches who come and object to Christmas décor on principle. Perhaps Jacob Marley will pay them a visit that evening and convince them to lighten up,” he says. “But most people like the holidays, and if sellers can warm their spirits with a light, welcoming touch, I say do it. But don’t make potential buyers wonder what's going on with a corner that’s blocked by a 9-foot-high tree.” Follow the same rules for other holidays, he advises. At Halloween, fill a dish with candy corn; for Easter, bring on the jelly beans.

So what’s always true?

Real estate professionals should always advise buyers and sellers to avoid accepting widely held truisms as fact. Help clients put these and other myths in the context of overall economic trends, local and neighborhood factors, and the special features that distinguish individual properties on the market.

Shared from:  http://realtormag.realtor.org/home-and-design/feature/article/2015/02/9-real-estate-myths-need-debunking

A Guide to Decking Materials: Which Is Right for Your Home?

There is something liberating about spending time outside on a deck. Whether you make it a private retreat shaded by vegetation or an energetic entertainment area complete with a built-in BBQ, this outdoor living space is often the most enjoyable area of a home. It also increases the value of your home. Most homeowners see a return on investment between 74% and 87% after adding or renovating a deck. Before you start building, however, you want to make sure that the material you choose matches the exterior of your home and fits your lifestyle. This quick guide on some of the most popular decking materials will help you decide which material best suits your needs.

Wood

Lifespan: 10–30 years
Maintenance: High

Wood decking is the most common choice for residential decks. Durable and strong, it also offers a classic look that complements traditional, craftsman, and virtually any other style of home. The smooth planks stay cool and feel good on bare feet, making wood a natural choice for building your outdoor oasis. Softer woods are fairly easy for a novice do-it-yourselfer to work with; hardwoods generally require a stronger skill set.

The price of wood varies greatly depending on the type you choose. Pressure-treated pine is the least expensive material, but it typically needs to be replaced after about 10 or 15 years. Tropical hardwoods such as ipe, camber, or garapa look stunning and last for upward of 30 years. They also cost quite a bit more per lineal foot. Cedar and redwood are popular choices that fall in the middle of the price spectrum and have a lifespan of about 20 years. Professional installation will add to the price of the deck.

Regardless of the type of lumber you choose, it will require a fair amount of maintenance. Wood decks needs to be cleaned annually and restained and resealed every few years. You may also need to replace a board or two over the life of the deck. If not properly maintained, the wood will absorb stains—especially red wine or BBQ sauce—and will be more prone to cracking, rotting, and warping.

Composite

Average lifespan: 20+ years
Maintenance: Moderate

Composite is an environmentally friendly choice for those who love the look of wood but aren’t as enamored with the upkeep. Premium planks boast a textured surface that mimics the look of wood grain. Made from a combination of recycled plastic and waste wood fibers, composite is available in an array of colors and makes a stylish addition to most any home. Some types of composite also feature grooves in the edges of the planks to allow for hidden fasteners—no unsightly screws. Composite decks are relatively easy to install, but it is imperative to follow the manufacturer’s instructions to allow enough room for heat expansion.

You can expect to pay more for composite decking than for wood boards. It can run two or three times as much as pine, but it usually costs less than exotic hardwoods. Extras, such as scratch-resistant features and UV coating, will up both the price and the life expectancy of the deck. Homeowners will likely recoup the additional costs though, since there is not as much maintenance involved over the life of the structure.

Composite materials need to be scrubbed annually with mild soap and water to prevent mildew. Aside from that, they require very little maintenance. The color often fades with prolonged exposure to the sun, so this may not be the ideal choice for a west- or south-facing location.

Plastic/PVC/polyethylene

Average lifespan: 30+ years
Maintenance: Low

Smooth and splinter-free, this lightweight material is strong enough to withstand the harshest elements of nature. It is impervious to stains and resistant to fading, making it a great choice for an outdoor dining area. Unlike other types of decking, plastic decks typically feature a nonslip coating that becomes less slippery when wet. Even with a faux-wood grain finish, this material does not look natural and may clash with homes that have wood or stone exteriors. The synthetic material also gets rather hot in direct sunlight and can burn bare feet.

Decking made from plastic is comparable in price to its composite counterpart. Certain brands are more prone to sagging than others, so it is a good idea to pay a little extra for a reliable brand. Plastic typically requires a more extensive support structure than lumber because it is not as rigid, which also increases the total cost of the project.

Plastic decking does not necessitate any sanding, staining, or painting. All it requires is seasonal cleaning to keep it looking fresh and new.

Aluminum

Lifespan: 50+ years
Maintenance: Low

Anodized aluminum decking offers a modern look that pairs well with contemporary-style homes. It is also a viable choice for destination decks near natural streams or manmade water features, because the textured finish boasts added traction. It also stays cool, making it barefoot-friendly even in sweltering temperatures.

Aluminum is one of the higher-priced types of decking material. Features such as a polyuria coating to reduce the sound of footfalls and tightly interlocking planks to prevent water from penetrating below will add to the price as well, but they are worth the investment—especially on second-story decks.

Like other synthetic decking materials, aluminum is virtually maintenance-free. It will not rust or rot and is resistant to mold and mildew. A quick sweep of the broom to keep it free of dirt and debris or an occasional hose-down to remove bird droppings or sap is all it requires.

The bottom line

These are four of the most popular types of materials used to construct residential decks. Even though wood is the most prevalent material, that doesn’t mean it is the right choice for your home. Take the time to consider the location of your deck, its intended use, and how much maintenance you are willing to take on before committing to a certain material. A well-designed deck built from the right material has the potential to become the best part of your home.

Reposted from:  http://www.realtor.com/advice/guide-to-decking-materials/

10 Home-Buying Costs You Need to Know About

If you’re a first-time home buyer, you might get a little queasy when the last line of your good-faith estimate comes in at several thousand dollars. And after the color returns to your face, you might also be a little more than perplexed by some of those fees.

Knowing what you’re paying for—like these 10 common costs—can ease that check-writing pain.

1. Earnest money

To prove you’re “earnest” in your purchase commitment, expect to plunk down 1% to 2% of the total purchase price as an earnest money deposit. This amount can change depending on market factors. If demand in your area is high, a seller could expect a larger deposit. If the market is cold, a seller could be happy with less than 1%.

Other governing factors like state limitations and rules can cap how much earnest money a seller can ask for.

2. Escrow account

An escrow account is basically a way for your mortgage company to make sure you have enough money to cover related taxes and mortgage insurance. The amount you need to pay varies by location, lender, and loan type. It could cover costs for a few months to a year.

Escrow accounts are common for loans with less than a 20% down payment and mandatory for FHA loans, but it’s not required for VA loans.

3. Origination

The origination fee is a hefty one. It’s the price you pay the loan officer or broker for completing the loan, and it includes underwriting, originating, and processing costs.

The origination fee is a small percentage of the total loan. A typical origination fee is about 1%, but it can vary. Use your good-faith estimate to shop around.

4. Inspection

You want to be assured your new home is structurally sound and free of surprises such as leaks or pests living in the walls. Those assurances come with a price.

• Home inspection: This is critical for home buyers. A good inspector will be able to notify you of structural problems, flooding issues, and other potentially serious problems. Expect to pay $300 to $500 for a home inspection, although cost varies by location.

• Radon inspection: An EPA-recommended step, this inspection will determine whether your prospective home has elevated levels of the cancer-causing agent radon. A professional radon inspection can cost several hundred dollars.

• Pest inspections: Roaches are one thing. Termites are a whole different story. Expect to pay up to $150 for a termite inspection.

5. Attorney

Some states, such as Georgia, require an attorney to be present at closing. In some other areas, this is optional. If you use a lawyer, expect to cover the costs, which vary by area and lawyer.

It’s typical for mortgage companies to have a lawyer on their end, although they should cover the bill.

6. Credit check

Just because you can get your credit report for free doesn’t mean your lender can (and it will actually pull all three). You have to reimburse the lender, usually around $30.

7. Extra insurance

If you live in a hazard-prone area, you might need to purchase extra insurance, like forflood.

8. Appraisal

Your lender won’t loan you money for a home without knowing what its fair market value is. An appraisal will cost $200 to $400, depending on location and property size.

9. Title company

You pay this to the title company to make sure the property’s title is free and clear. Your lender will recommend a title company, but you can also shop around for one.

10. Survey

It’s not required in all instances, but your lender may require a professional surveyor to determine exactly where your property lines are drawn. Prices vary widely, but expect to pay at least $100.

Remember: You have bargaining power. Shop around to get a feel for what rates and fees apply in your area. If you aren’t sure what a lender is charging, ask for an explanation—the charge might not be set in stone. If you’re unhappy with a charge, negotiate.

Reposted from:  http://www.realtor.com/advice/10-home-buying-costs-need-know/