10 Home Renovations That Offer the Best (and Worst) Return on Investment

Remodeling may be a labor of love, but it’s also an investment that can seriously boost the value of your home.  Only by how much? Well, according to Remodeling magazine’s 2016 Cost vs. Value Report, you’ll recoup an average of 64% of what you paid for a renovation if you sell your home this year.

To arrive at these figures, Remodeling asked consultants in various markets to estimate the average cost for 30 home improvement projects, from adding a bathroom to replacing a roof. Then, they asked real estate agents nationwide to estimate the expected resale value of these renovations so that readers could compare their out-of-pocket costs to how much money they’d get back when it came time to sell their home.

So, what projects gets you the most bang for your home renovation buck? It may not be nearly as sexy (or fun!) as adding a chef’s kitchen or glam bathroom, but attic insulation gets the top spot. That’s right: Stuff some fiberglass insulation into the walls of a 35-by-30-foot attic, and you’ll pay an average of $1,268. But when you sell, you will rake in $116.90 for every $100. For you math-challenged out there, that’s a recoup of 116.9% of your costs. It’s the only home reno on this year’s report that redeems more money than you spend!

The next best-paying renovation on the list: manufactured stone veneer, offering a respectable 92.9% return.

Meanwhile—sorry, luxury tub fans—the home improvement project that reaps the worst ROI is the addition of a bathroom, at 56.2% (although the “added value” of an extra bathroom for anyone who’s ever had to wait their turn for one is, of course, priceless).

Take-home lesson? If you’re looking for a general rule of thumb, it’s that less is more: Lower-cost projects  generally reap bigger returns, with four of the five projects that cost less than $5,000 ranking among the top five for money back when you sell.

Check out the best (and worst) returns for home renovations in the two charts below, including how much you’ll pay and get back if you sell your home this year.

Shared from:  http://www.realtor.com/advice/home-improvement/heres-how-much-remodeling-pays-off/

8 of the Creepiest, Craziest Things People Have Found in Their Homes

Buying a new home is exciting, but you don’t want it to be too exciting—say, by finding a gravesite in your backyard. Not cool! For a glimpse of why you should never, ever skimp on your home inspection, check out this list of the most bizarre things new homeowners have unearthed on their property after moving in.

Dead chickens

During renovations in February 2015, the dream home of the Bretzius family in Auburn, PA, quickly devolved into the stuff of nightmares when they discovered their 1930s house had been insulated with dead chickens in the walls, along with spices and other “ritualistic objects.” Why? Experts theorized it was a form of Dutch folk magic known as Pow-wow, meant to ward off sickness, which is ironic because this discovery made homeowner Kaija Bretzius feel sick to her stomach.

“We were shocked, horrified, and disgusted,” Bretzius told WNEP News—even more so when she learned that excavating the carcasses would cost $20,000 (they started a GoFundMe for donations).

13 graves

When attempting to build a deck at the back of her house in Charlotte, NC, in June 2012, Roslyn Wright got a nasty surprise when she unearthed 13 gravestones. With graves underneath, naturally. Granted, Wright had been informed before buying the house that there was a graveyard somewhere out back, but the macabre discovery still gave her a turn.

“I never expected that they would be that close,” she told WSOC-TV. At least if a poltergeist arrived, she’d know why.

A lot of ammunition

The previous owner of this house was fully armed to fight off a zombie apocalypse. At least, that’s what the new homeowner figured as he posted images on imgur claiming he found a secret room containing tons of ammo, including thousands of bullets, military-grade gun crates, a defused grenade, and hundreds, if not thousands, of pennies. Maybe so they could be melted down into more ammo?

An ‘odd’ fellow

A family in Leflore County, OK, happened upon a coffin while searching their barn out back—and within it, a 100-year-old skeleton. The bones, which were found in February 2015, belonged to the Independent Order of Odd Fellows, who use skeletons in their initiation ceremonies. Yup, those are odd fellows, all right.

A medieval well

Colin Steer in Plymouth, England, had always wondered why his living room floor dipped in the middle, so he started digging. Three days and 17 feet later, he figured out why.

His home was sitting on top of a medieval well.

Further research and excavation revealed that the well dated to the 16th century and went down 33 feet. Crews also unearthed a sword that must have been tossed in centuries earlier.

“I love the well and think it’s fascinating,” Colin told The Telegraph in August 2012. “I’d love to find out who was here before us. I’ve got a piece of Plymouth’s history in my front room.”

A used body bag

In October 2015, a Detroit woman was cleaning out the garage of her newly purchased home when she came across a menacing find: a body bag, empty but for an “unknown male” tag. The funeral home across the street unequivocally states the bag isn’t theirs, but it’s definitely no super-size Ziploc. Local 4 Detroit tried figuring out who it belonged to and why, but doesn’t have any answers. We kind of hope it never does.Shared from:http://www.realtor.com/news/trends/8-bizarre-finds-by-new-homeowners/

Home Buyers: Don’t Wait Forever for ‘The One’

When you’re dating, you can spend years searching for the perfect relationship only to—possibly—wait too long and miss out on something great. Suddenly, over your sad microwave meal and bottle of cheap red, you’re looking back on your life choices, wondering what could have been if you hadn’t been so darned picky.

Well, the same goes for house hunting. You can drive yourself crazy searching for your dream home. You’ve found houses that have come close, after all. So the perfect one is bound to appear soon, right?

Not necessarily. We know the hunt can be emotionally draining, but at some point you have to go from house hunter to home owner.

We’re not encouraging you to make a choice that will fill you with buyer’s remorse. But to borrow a line from the Rolling Stones: You can’t always get what you want, but if you try sometimes … you get what you need.

We can’t give you love advice (and trust us, you would not want us to), but we do happen to know a few things about real estate. Here are three questions to ask yourself; the answers will help you determine whether it’s time to settle on a home that might notbe what your dreams are made of.

1. Are my expectations realistic?

Everyone has a dream home. Mine is a Craftsman with Victorian high ceilings, art deco details, and a Mid-Century Modern feel. But here’s the thing. That Frankenstein of architectural styles doesn’t exist—and your dream home probably doesn’t either.

“There is no such thing as a ‘perfect home,’” says Ryan Fitzgerald, Realtor® and owner of Raleigh Realty in Raleigh, NC.

There’s always going to be something not so lovable in each house you view. The key to finding the right home is setting realistic expectations.

“You can find a home that meets almost all of what you are looking for,” Fitzgerald says.

Make a list of your dream features and amenities before you start house hunting—but be willing to let some of those features go once you start looking at properties. It helps to score each feature on a scale of 1 to 10—that way you (and your partner, if you have one) are on the same page about which amenities are deal breakers and which are simply nice to have.

2. How many properties have I viewed?

Once you’re house hunting, it can be nearly impossible to decide when you’ve looked at enough houses. After all, the perfect house could be listed any day now.

Go ahead and view online listings as much as you want. There’s no harm in real estate stalking in your spare time, but you should set a limit for actual viewings.

“If you go view more than eight homes [without finding anything], there’s a good chance you’re confused as to what you’re actually looking for,” Fitzgerald says. “You’re trying to piece together a home that doesn’t exist.”

If you find that you’re searching for your own Frankenstein (it won’t work, I promise), take a moment and ask yourself how many homes you’ve visited. Have you reached the (self-imposed) cap? If so, make a list of each property’s strengths and weakness, and then get ready to compromise.

3. What am I willing to compromise?

If you’ve set realistic expectations and looked at more than a few houses, it’s time to start making some tough decisions. It might feel like settling, but you’ll probably thank us later when you’re finally a homeowner.

Just make sure you’re not compromising on something you’ll regret later.

“If you’re going to compromise, do not compromise on location,” Fitzgerald says.

The real estate adage “location, location, location” bears repeating here. After all, a great house won’t matter much if you’re driving two hours to work every day or the only nearby grocery store closes at 7 p.m.

If you’re not sure where to compromise, ask your Realtor. That’s what they’re there for.

The exception to the rule

After months of searching (especially in competitive markets), you might feel the pressure to choose something—anything—just to achieve homeownership and stop throwing away your money on rent.

We’re going to contradict ourselves a bit here and tell you this: Sometimes it’s OK to keep looking. When you’re deciding on a home, you should always consider the current market, even if it means you’ll be shopping for a little while longer.

“If you are having trouble finding a home and you have proper expectations, don’t settle—especially if you’re in a hot market,” Fitzgerald says.

If you’re in a sellers’ market, homes can go quickly and you might just be missing the window of opportunity. It might make sense to wait a little longer than rush to try to beat out an overzealous buyer.

After all, competition can breed short-lived desire—and you don’t want to be stuck with a dud after the admirers have moved on to the next attraction.

Shared from:  http://www.realtor.com/advice/buy/when-should-you-settle/

5 Things Not Necessarily Included in Your Home Purchase

The buyer of a historic Victorian home in upstate New York fell in love with the gigantic antique mirror in the foyer.  The mirror looked as if it were made for the space; it fit perfectly on the wall, & the frame matched the surrounding woodwork.  In fact, the mirror was so large, the buyer said she "couldn't imagine it going anywhere."

And yet, when she bought the house & went inside, the mirror was gone.  All that was left were some holes in the wall & the wallpaper behind it ripped & discolored where it was previously mounted.  The buyer promptly called her agent, who told her the mirror was personal property & didn't transfer with the house.

This scenario plays out in some form or another all the time.  In real estate transactions, there are gray areas when it comes to personal property.  Some contracts spell out exactly what's to be left behind for the new owner, while others are vague.

Don't assume anything you see on the property comes with the house.  If you intend to buy a home & there's something in particular you want, speak, up early.  Put your request in writing so that nobody is disappointed when the deal closes.

Here are five things that are often overlooked or not covered in a real estate transaction & that can lead to a dispute.

1.  Appliances

There are norms & customs in every market, which is why it's important to work with a local real estate agent who knows the ins & outs.  And surprisingly, it's not the norm everywhere to include all major household appliances, such as a refrigerator or dishwasher, with the property.  Worse, even if appliances are included, they might not be what you bargained for.

For example, a buyer was purchasing a home with top-of-the-line kitchen appliances.  In the property's marketing brochure, the real estate agent had highlighted the high-end stainless steel appliances.  Even though the contract stated that "appliances included in sale," however, the buyers were shocked when they discovered, upon taking ownership, that the seller had replaced the high-end stainless steel appliances with low-end models.  This led to arbitration, & the seller had to return the appliances.

The lesson learned:  Find out when making your offer if including appliances is customary in your market.  If there's any doubt, be sure to put it in writing - & be specific.  Make sure that "existing" appliances are included, or even go as far as to spell out the specific appliances, such as Bosch Dishwasher & Wolf Range.

2.  Window Coverings

Window coverings are another issue that often results in some nasty e-mail exchanges after a sale.

In nearly every market, the custom is that if there are window coverings present, they stay with the new owner.  Sometimes, there are shades & there are drapes.  The shades may be fully fitted for the window & attached.  But the drapes may be decorative.  Sometimes the seller, w ho had the drapes custom made to match the furniture, will want to exclude the drapes from the sale.  If you don't see it written anywhere or haven't heard about it, get the inclusion of window coverings in writing.  Along with the appliances, specify that you want the "existing window coverings."

3.  Personal Property

As with the drapes or the gigantic mirror noted above, the seller may have a specialty light fixture or a piece of art that appears designed to fit that space.  Or there may be furniture that fits so perfectly into a room, nobody could imagine anything else going there.   Here again, these items are personal property, & the seller may have no intention of letting them go, no matter how obvious it seems to the buyer than they should stay.  Always assume that any personal property, much like the beds & furniture, will not transfer to the new owner.

4.  Flat Screen TVs & Mounting Materials

Often, a seller may have had a high-def, flat-screen TV professionally mounted above the fireplace or on the wall like a piece of art, with the wires running through the walls.  As a result, TVs - long considered personal property - are showing up more & more in real estate negotiations.  But given a history of TVs as personal property, buyers shouldn't assume that a flat-screen TV, its wires or mounting brackets would stay behind after the sale.

5.  Kitchen or Bath Hardware

Hardware - in the form of doorknobs, kitchen cabinet pulls, bed & bath fixtures, & so on - should always transfer to the new owner.  This is just common sense.  These items are permanently attached to & therefore should stay with the property.  In fact, it used to be understood that "anything attached to the property stays with the property."  During the foreclosure drama, however, it wasn't uncommon for the seller to remove nearly all fixtures & finishes from home before it was foreclosed on.  This was their last chance to salvage some part of the house or even make a quick buck selling these items on the side.  If you're considering buying a home in foreclosure, just be aware that it is sold "as-is," meaning how you see the home.

Items to be Sold Separately

Sometimes sellers will decide that they want to keep something, or that they aren't interested in parting with it for free.  What is common is for the buyer to separately make an offer to purchase some of the seller's stuff.

Advice to Sellers

If you plan to take something with you, document it in all of the marketing materials (both print & online) so that there's no doubt in the buyer's mind what stays & what goes.  When a buyer makes an offer, they can factor any exclusion of property into their price.

 

Advice to Buyers

Be as detailed as possible from the beginning.  If there's something in particular you like & want to be sure stays, ask the listing agent during the open house.  If they tell you yes, get it in writing.

Shared from:  http://www.zillow.com/blog/5-things-not-necessarily-included-in-your-home-purchase-86738/

The Ultimate Open House Prep Checklist: Bathroom Edition

It may not be the grandest room in the house, but the bathroom is one of the most important when it comes to selling your home. Buyers want as many bathrooms as they can afford, and they want them pristine. So, if you’re getting set to host an open house, it’s time to spiff yours up! Here’s exactly what you need to do to get it ready:

Clean everything. You know this already: There’s nothing worse than walking into an open house and finding mildew, scum, hair (or worse) in and around the tub, toilet, and sink. Give your bathroom the kind of deep cleaning you’d usually reserve for when the in-laws visit. Ask yourself, “What would Martha Stewart think?” No rings around the tub, no soap scum on the shower door, no beard clippings in the sink. Use a mix of vinegar and water in a spray bottle to make mirrors sparkle—it’s an old-school recipe that gets fabulous results (just remember to wipe away streaks with either newspaper or a microfiber towel).

Hide your toiletries. That means toothbrushes, contact lens kits, loose makeup containers, hairspray bottles—anything that could clutter up your countertop goes into the medicine cabinet, under the sink, or wherever it won’t be seen.

Then put out nicer ones. Now is the time to break out those triple-milled imported soaps, or a nice handsoap and lotion duo. Think hotel bathroom.

Remove prescription drugs. We can’t stress this one enough. If you have a medicine cabinet full of allergy meds, sleeping pills, or anything else your doctor may have prescribed, either lock it in a safe or take it with you when you leave during the open house.

Stock toilet paper. A well-organized bathroom has plenty of toilet paper at the ready. The person who needs it will appreciate it. Though we’re not suggesting that open house visitors use your loo.

Keep that toilet seat down. While we’re on the subject of toilets, the seat should always be down and the lid closed. Always.

Test the water pressure. During my years as a Chicago real estate broker, I saw buyers turn on the shower and the faucet and flush the toilet. They’re checking your water pressure. If it runs at a trickle, get your plumber to take a look.

Fix those drips. If your sink has a slow drip, fix it. A drip isn’t just annoying; to buyers, it’s a sign you might be letting other, bigger things go.

Make it bright. A dimly lit bathroom can make even the cleanest space appear grimy. Try installing a few natural light bulbs to give the appearance of sunshine.

Clear out the library. You may be proud of your bathroom’s collection of old Architectural Digests, New Yorkers, and Teen Vogues. But it’s time to move them to the recycling.

Show off that shower. If your shower is a showstopper, show it off! Pull back the curtain to reveal those coordinating glass tile borders or decorative mosaics you invested all that time and money in.

Fix that fan. A loud exhaust fan is a no-no. If the bathroom exhaust system is audibly exhausting, it might be cheaper to replace it than to have it repaired. Most new fans have a sound rating measured by sones. Be sure to buy one rated at 1.0 sones or less, as advised by the Home Ventilating Institute.

Say it with flowers. Heavy air fresheners can be off-putting, but a vase with fresh flowers goes a long way. Orchids, hydrangeas, and eucalyptus all add a pleasant scent to a small space—and give potential buyers a reason to smile.

Stage the tub. Whirlpool bathtubs may no longer be the sought-after luxury item they once were, but the idea of a drawn bath remains appealing. Stage your tub by placing flameless candles around it and setting a favorite book and a stack of towels nearby, all to conjure up images of “me time.” (There’s no need to fill the tub with water, though!)

Upgrade your towels. The easiest way to gussy up a bathroom is to change the towels. Invest in fluffy new ones that pop with color (especially if the walls are a neutral shade), and fold them in three parts so no edges show.

Nix the rugs. Rugs are necessary, but they’re not always the most attractive aspect of a bathroom. Leave the floor bare—it makes the space look cleaner and roomier, and gives buyers the chance to see a (we hope) nice floor. Which you swept clean, right? Right!

Reposted from:  http://www.realtor.com/advice/open-house-bathroom-checklist-2/

Relocating to an Unfamiliar Area? Here’s How to Get Your Bearings...

Choosing a home in an unfamiliar neighborhood can be nerve-racking, but it’s almost inevitable when moving to a new city—or even across town. There’s a lot at stake: The wrong decision can cost you money and peace of mind.

Here are some tips to guide you in your search.

Mission: Neighborhood reconnaissance

As with any house hunt, you should first figure out your budget and what you would need, want, and like to have in a house and in a neighborhood. But if you’re relocating across the country, your biggest challenge will be doing long-distance recon on your new hometown.

While you can’t gain access to private social networks such as Nextdoor until you verify you have an address in a neighborhood, a little cybersleuthing will reveal insights on day-to-day life and concerns in areas you’re scouting.

Once you know the general area in which you’d like to live, websites such as City-Datacan collect and analyze data from numerous sources to create detailed profiles of U.S. cities, including information from crime rates to weather patterns. Homefacts includes similar information, then drills down further, listing neighborhood statistics such as median home price, homes for sale, and foreclosures.

AreaVibes can help you narrow down a search; after you type a ZIP code or city in which you’d like to live, you can adjust metrics such as amenities, crime, cost of living, and housing prices to compile a list of neighborhoods that match your “livability” needs.

In addition, many regional newspapers or magazines routinely publish online rankings of their best neighborhoods. Listly has lists of five-star New York real estate communitiesand blue chip Massachusetts real estate communities, so it may be worth a search to see whether there is a similar list for an area in which you’re interested.

Speaking of lists, Livability regularly develops city rankings for a range of topics, including small towns, college towns, and overall best places to live.

The Chamber of Commerce in many towns will also provide a guide for people who are relocating. Also, look for news on property taxes in recent years—falling property taxes likely mean that communities have had to cut back on public services.

If you have children, you’ll want to read up on local public schools on GreatSchools.org, as well as determine what day care and after-school activities are nearby. Even if you don’t have children, good schools are a major factor in determining home values in a neighborhood.

No neighborhood is perfectly tranquil, but check CrimeReports.com for crime reports and maps to get a sense of where an area falls on the spectrum. You should also visit theNational Sex Offender registry and FamilyWatchdog.us, which will identify registered sex offenders living in the area. NeighborhoodScout.com will consolidate crime, school, and real estate data in one report, as well as compile lists on safe cities and neighborhoods with good schools.

Draw on a professional’s expertise

If there is one time above all when you’d really benefit from working with a real estate agent with deep knowledge of an area, it’s when moving to a new town.

A knowledgable professional should be able to provide recommendations and compile background information on neighborhoods and homes that fit your needs and price range. Come prepared with a neighborhood or neighborhoods you like, and he or she can give you more information or suggest similar alternatives.

Get down with the locals

Once you’ve done the research and found a neighborhood you like, drive by several times during the day and at night. Look for the following:

• Are there many “for sale” signs on lawns?
• Are there any abandoned or boarded-up houses in the vicinity?
• Is there a lot of trash on the sidewalks?
• Is the neighborhood close to a shopping or business area?
• How well are neighborhood parks maintained?
• Is street parking restricted after school and during rush hour?

Also try to attend a few open houses in your neighborhood of choice. It’s a good way to get a feel for local property values, and to walk around the area. If you see residents out and about, try to talk to them to get their perspective on the community.

If you have time, try to get a drink in a local bar or a cafe and talk to people there. Apps like Meetup and AroundMe will help you connect with people in a town that have similar interests, as well as help you find the nearest hot spot.

These will be your potential neighbors, so they will provide valuable impressions on whether you’ll be pleased with where you eventually live.

Reposted from:  http://www.realtor.com/advice/how-to-get-your-bearings-when-relocating/

How to Get Your Home Ready for an Open House: Security Edition

Holding an open house is an act of faith. You clean, declutter, and prepare your home to look its best, hoping at least one of the visitors will fall in love enough to make an offer, preferably all-cash. At the same time, open houses are invitations to strangers to walk among your most prized possessions, often with only a single real estate agent present—and so there are very real security concerns, for agents and homeowners alike.

At least 40% of the agents surveyed by the National Association of Realtors® for its 2015 Member Safety Report say they have experienced a situation that made them fear for their personal safety: Vacant houses, model homes, properties in remote areas, and open houses all caused trepidation. The study found that many now carry weapons for self-defense—no wonder when agents have been killed in the past.

For homeowners, however, self-defense takes place long before strangers show up at the door—and start looking in the refrigerator, the cabinets, the pantry. (A Maryland woman recently went to jail for stealing jewelry from open houses.) You probably know to lock up or take away valuables, but here are a few more things to remember:

Say ‘No’ to drugs

Remove all prescription drugs from your medicine cabinet, even the ones you think are harmless. There are so many tales of open house visitors rifling through medicine cabinets and taking a few pills, or even whole bottles. In comments on our site, a user calling himself Larry Kean described this very thing, saying people are looking for “abusable” drugs. Likewise, another user, Rose Eneri, wrote that her friend “found a guy looking through her medicine cabinet” at an open house: “Easy pickings for a drug addict or dealer.”

Control your remotes

Most people don’t think about the extra garage remote they leave dangling from a hook near the back door. It’s small and easy to slip into a pocket, so take it with you when you leave for the open house. One commenter wrote that an open house visitor may have taken the garage remote, then returned later to steal the homeowner’s Lexus! All keys, remotes, and fobs should either be locked away or in your pocket.

File this under ‘Lock & Key’

There’s a trend in home office decor to make file cabinets pretty and portable—but portability and security are not always compatible. Buy a heavy, nonrolling commercial-grade filing cabinet that locks—and into it put your important documents: birth and marriage certificates, financial statements, basically any legal, medical, or personal information you wouldn’t want falling into someone else’s hands. Identity theft is real and should be taken seriously.

What about my 50-inch flat-screen?

While it’s unlikely that anyone could walk out of your open house with your TV or other large electronics, they could come back for it. That’s why the next item is so important:

It ain’t over till you check your doors & windows

While agents will go through to make sure all lights are off and the house is in good condition after an open house, they might not check the doors. Unscrupulous people have been known to unlock a window or basement door with the thought of returning later. After the open house, walk through your house and check every window (even on the second floor), gate, and door to be certain that they’re all locked.

Reposted from:  http://www.realtor.com/advice/open-house-security-homeowners/

Selling Deceased Parent's Home

Chris Freitag moving furniture to a trash bin as he cleared out a home in Ridgefield whose owner had died.

After Dwight Trainor's mother died unexpectedly earlier this year, he and his sister decided to sell her Leonia home, which had been in his family since the 1930s. But first, they had to clean it out — a task that took seven days of their time, plus the services of an estate sale company and a junk-removal team.

"There was four generations' worth of stuff squeezed into every corner," said Trainor, a geologist who lives in Texas.

As Trainor discovered, selling a home after a death isn't like other real estate transactions. Not only are the homes often overstuffed with decades' worth of belongings; they're also often poorly maintained.

In addition, heirs sometimes disagree over pricing and marketing the house. And sellers are not only dealing with the house sale, they're mourning their loss and figuring out how to handle an estate — often while living in another part of the country, as in Trainor's case.

"There's an emotional component to this," said Wendy Dessanti, a Weichert agent in Tenafly. "People can be going through a hard time. They miss their parent, and they have to be making smart decisions. Sometimes it takes people a long time to deal with."

Nonetheless, John Kopp, an attorney in Clifton, said that it's a good idea to sell as quickly as possible.

"Acting on an estate property sooner rather than later is always better, because you have carrying charges," said Kopp, who has been dealing with the home sales of his recently deceased mother and mother-in-law. Property taxes and maintenance costs add up, and if a property is empty, the owners have to pay for special vacant-home insurance.

To move the process along, Kopp said, heirs can start doing the preliminary work toward a sale — such as interviewing real estate agents and making repairs — while they're waiting for the will to be probated and the executor to be officially named. And Dessanti recommends that heirs work with a lawyer familiar with both estate and real estate law, if possible.

Because elderly homeowners can't always keep up with maintenance, heirs often find headaches like faulty plumbing and heating, ratty carpets and obsolete septic systems. In the case of Trainor's family home, for example, a contract to sell the house fell apart when an inspection turned up a leaking underground oil tank, which had to be remediated.

And even houses that are in decent repair are often filled with a lifetime's worth of stuff.

"They've been in the homes 40 or 50 years, and they've hung on to things," said Barbara Ostroth, a Coldwell Banker agent in Oradell.

Agents say clearing out the house is usually a multistage process. First, families need to find and remove the important papers, heirlooms and expensive items — a process than can take days. Then, a tag-sale or auction company can be called in to sell anything that has any value, for fees that average around 25 to 30 percent of the sale amount. Items not sold can then be donated to charity. Finally, a cleanout company can haul away what's left, at a cost of roughly $600 to $1,800, depending on the size and contents of the house.

All in all, it's much tougher than a typical move, in part because it takes time to figure out who should get what, said Emilia Freitag, an agent with Rand Realty Better Homes and Gardens in Ridgefield.

Often, the late parent's treasures have little worth, because tastes have changed.

"Collections of Hummels — you can't give them away," Kopp said, referring to the series of porcelain figurines.

Joanne Randazzo of Brick said clearing out her father's belongings was the hardest part of selling his New Milford split-level after his death at age 92 in 2011. He had lived in the home for almost half a century, and it was full of souvenirs from his frequent travels, as well as books, records, a stamp collection and more.

She didn't want any of the furniture, but she couldn't interest charities or a dealer. "I was panicking," she said. "I didn't want to put it on the street." In the end, a family friend who had just bought a second home took the furniture.

But no one wanted the Ellery Queen books and the encyclopedias, which went to the recycling center. And the stamp collection is sitting in her daughter's dining room in plastic bins. "That was so precious to him, but she's not interested in stamps, and neither am I," Randazzo said. "It doesn't mean anything to anybody else — that's sad."

Another complicating factor in estate sales is that there are often a number of heirs.

"When there are four, five or six people involved — typically siblings — with an interest in the estate, it turns into four, five and six different opinions as to what the price should be, how much should a price reduction be if necessary, what price should we accept, what should we give on a home inspection and what attorney should we use," said Rick Bandazian, a Coldwell Banker agent in Upper Saddle River.

"Each has their own idea of value. I've seen four siblings turn down an offer because they wanted $10,000 more," said Terri Golden, a Coldwell Banker agent in Fort Lee. "That's $2,500 per person. In the end, they sold for less and had to pay taxes and maintain the property for longer than necessary."

Ostroth told of a family where the adult children — all living out of state — didn't trust each other to clean out the house unless they were all there to see what everyone took. It took over a year to get the property ready for sale.

Some of the family conflict can be avoided if the executor keeps the other heirs informed.

"The executor should be transparent in their dealings with the property," Kopp said. "Every effort should be made to include the beneficiaries in the process."

Heirs living out of state often lean heavily on real estate agents, asking the agents to check on the house and hire auction and cleanout companies, as well as painters and contractors, to get the house ready for sale.

Lisa Tannenbaum, a Coldwell Banker agent in Allendale, recently worked with out-of-state heirs when she sold an estate house in Oakland. She couldn't find any local charities to take all the furniture, but she did find a charity from the South that took it. She also helped the out-of-state heirs find a contractor to upgrade the cesspool to a modern septic system.

"There's a lot of hand-holding on estate sales," said Chuck Martini of Friedberg Properties in Tenafly.

Agents say it's not necessary to spend a lot of money on major renovations — such as a new kitchen — when selling an estate property. But most say it's crucial to brighten up the space by clearing clutter, having the house and windows professionally cleaned, painting the walls and removing old carpet, especially if there are hardwood floors underneath.

Tannenbaum said she got a good price — more than $300,000 — for the Oakland property, a two-bedroom ranch, because all the interiors were repainted and the floors refinished.

"Whether it's an $800,000 house or a $300,000 house, buyers tend to not want to do a lot of work," she said. "Sprucing up really brought in the money."

Reposted from:  http://www.northjersey.com/real-estate/selling-a-home-when-a-parent-dies-1.671483?page=all

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What to Know Before Buying Your First Home

Buying a home is the most important purchase you’re likely to make. You want to get it right.

Life is full of exciting firsts. Your first steps. Your first day of school. Your first love. Your first job. Your first place.

Whether you want to move out of your parents’ home for the first time, own a home after rentingfor years or buy a place with a spouse or partner, purchasing your first property is a big step. It takes a lot of preparation when you’re in this stage of your life, and a little luck never hurts.

Brittany Frey, 24, may be a little younger than the typical first-time homebuyer, but she probably speaks for most of them when she talks about why she bought a house.

“I’ve been working at the same professional job for the past three years and feel like I’m ready,” says Frey, who lives in Buffalo, N.Y. “My rent has ranged from $600 to $800 per month, and that’s a lot of money to just throw away. And,” she adds, “I think I was just sick of renting.”

Frey is one of the lucky ones. With no house to worry about selling and it being a buyer’s market, Frey could afford to take her time looking -- and then pounce. After looking at 40 houses andcondos, that’s exactly what she did, and she is very pleased with her purchase.

Renting instead of buying a home may seem like the most convenient or most affordable way to go. It pays to do some simple research to understand the pros and cons of buying versus renting. You may find that owning a home is actually your best option.

HOW YOU KNOW IT’S TIME TO BUY YOUR FIRST HOME

When you learn to drive, most states allow you to get a learner’s permit at age 15. Any teenager thinking of joining the military knows you can’t enlist until you’re 18, or 17, with parental consent. And every teenager knows that it’s not legal to drink until you’re 21. Most folks know that no matter how ambitious you are, you can’t be elected president until you’re 35.

But buying a house? There is no age restriction. Some might argue you can’t buy a house until you’re 18, because a bank won’t let a minor sign a contract, but theoretically, if you had the cash and your parents were cool with it, you could be a toddler. Or you could be a senior citizen; this writer’s grandmother bought her first house at the age of 77 and is still enjoying it, almost eight years later.

It’s safe to say you’re going to be somewhere in between those ages -- and you’re going to hear a little voice, just as Frey did, that says, “It’s time.”

That’s largely how Heather Clark, 27, general manager for Chicago Sailing, and her boyfriend, John Honkala, 32, a Web design business owner and part-time bartender, came to buy their house.

“We were planning on moving in together and expected to just rent an apartment,” says Clark, but she and her boyfriend changed their minds when they realized how inexpensive houses were becoming. But even without the lure of the financial incentives, it felt like it was the right time.

Clark says that they were both sick of moving, of dealing with landlords and of living in dated quarters. “My old apartment has been described as '80s Florida chic,” quips Clark, referring, in part, to her “plastic vertical Venetian blinds.”

WHAT TO CONSIDER BEFORE BUYING YOUR FIRST HOME

THE QUESTIONS TO ASK YOURSELF

Regardless of how ideal the market may seem, it’s still a good idea to sit down with your real estate agent and think about how you see your life in three or five years and ask yourself some pointed questions, suggests Althea Smock, a real estate agent with ZAPA Realty in Denver.

Can I afford it?

Buying a house will have a significant impact on your finances, so make sure you can handle it.

Housing is more affordable than ever and incentives like low interest rates and the new expanded tax credit are enticing buyers to enter the market. But purchasing property involves a lot of upfront costs: closing costs, down payment, new furniture, moving expenses. Do you have enough cash?

Create a budget for the monthly mortgage payment and homeownership costs, such as general maintenance if you buy a single-family home or homeowners association fees if you buy a condo.

Am I mortgage-worthy?

Say you saved enough cash, but what about your credit? It’s not a secret that getting a mortgage these days is harder than it used to be. Lenders are looking closely at all documentation of your income, debts, assets and liabilities, to make sure you don’t exceed the maximum debt-to-income ratio. And when it comes to credit scores, the most competitive interest rates (the 5 percent you may have heard about) only go to buyers with credit scores above 700.

The key is to review your financial situation before you check out open houses. Use our affordability calculator to see what kind of monthly mortgage payment you can comfortably afford.

Do I plan to live here for at least five years?

Most personal finance experts say that unless you plan to live in a home for at least five years, you likely won’t recoup any of the expenses associated with buying and later selling the house.

Plus, your first few years of mortgage payments primarily pay off interest, not your principal, so you will not have built up a lot of equity in your home. You may be better off renting if you expect to move in the next couple of years. Just because you live in a buyer’s market doesn’t mean the time is right for you to buy.

If I buy with another person, how will this affect me?

Buying real estate with another person has its perks, if you both have stable financial situations. By combining cash and resources, you're likely to get a bigger, better place than you each would as individual buyers. Plus, when you're starting out, it helps to share the financial burden with someone else.

But before you start house hunting together, sit down, lay all your cards on the table and get the answers to these important questions. Whether you're buying with a spouse, domestic partner, relative or friend, setting the ground rules first will save you both a lot of headaches in the future.

Is it worth the money?

Frey admits that she’s spending slightly more than she wanted to, but, in the end, she decided it was worth it because “the appliances stay, the kitchen is remodeled and it’s a house that I won’t outgrow in a few years.”

In other words, the place in which you live is an investment and the money will always be relevant, but that old-fashioned moniker “home sweet home” is decidedly modern these days. People aren’t buying houses anymore; they’re buying homes.

THE COST TO YOU

In today’s housing market, we’re seeing monthly mortgage payments rival monthly rents in some cities. While this may be the case in your area, keep in mind that securing the “start-up” costs of homeownership is the biggest challenge.

Do I have enough cash?

Buying property requires a large amount of cash upfront to cover closing costs and a down payment, which ranges from 3 percent for a government loan from the Federal Housing Administration to 20 percent for a conventional loan. That’s a lot of cash to fork up. Can you handle it? Will you have enough cash on reserve for emergencies, like an accident or job loss?

How much will I spend on a monthly basis?

Your monthly payment will consist of PITI: principal and interest (determined by the home’s purchase price and your interest rate), property taxes and home insurance. Your monthly homeownership budget should also include utilities, cable/TV/Internet and general maintenance costs.

When buying a condo or townhome, factor in the homeowners association fees and any special assessments.

Will buying a fixer-upper save me money?

If you’re young and driven, you may not mind if your house is a fixer-upper. And if credit is an issue, that may be about all you can afford. But keep in mind that repairs and home improvements still require money, so prioritize your projects and create a budget.

THE HOUSE FOR YOU

The house you buy should at least fit into your five-year vision for yourself. Why spend the time and money on something you’ll outgrow in a couple years?

“I've talked with a few younger people that have taken advantage of the tax credit and the buying market over the past year,” says Smock, the agent in Denver. “The overriding theme with all of them now that they've owned for a year or two is that their lifestyle has changed -- of their own doing -- and the place they bought no longer works for them.”

So look for a house that doesn’t just fit this stage of your life, but would also work for the next one. A mistake that many first-time homebuyers made in previous years was looking at their house mostly as an investment and not a place to live and grow old. It was all too easy to say, “Well, if this small yard drives us crazy, we’ll get a bigger one at the next house.”

And it may, indeed, turn out to be easy -- the housing slump won’t last forever -- or it may be harder than you think. You don’t want to box yourself in and limit yourself before you even move in.

“It all seems like common sense,” concedes Smock, “but people who are used to apartment living and changing houses like outfits will find themselves in a bind when they finally buy, because the house no longer fits their needs a year later.”

And be wary of buying a home because of a low price tag -- it won’t be a deal if it doesn’t fit your lifestyle. Ask yourself these questions:

How often will I be at home?

If you work long hours or travel a lot, it doesn’t make sense to buy a large home that requires extensive maintenance. That 3-bed, 2-bath short sale with a yard may be priced right, but who will take care of it? A one-bed condo, on the other hand, requires minimal upkeep.

Likewise, home styles like Victorians and Craftsmans are beautiful but need attention. Would a lower-maintenance contemporary home work better for you?

Who will live in the house and will that change soon?

The home should accommodate the current and intended household. But this doesn’t mean you should buy a house that’s more than you can afford.

• If you’re single, but hoping to meet someone special and settle down soon, perhaps a one bedroom isn’t enough.
• If you’re newly married and plan to have kids, a two bedroom may not be enough room. Especially, Smock adds, if you were planning to use one of the rooms as a home office.
• If you’re a childless couple and plan to stay that way, you still might want to buy a home with a guest room -- just in case.
• If you have a dog or several pets, a single-family house may work better than a condo in a high-rise building.
• If you’re a 60-something buying a first home and feel that you won’t be one of those “active seniors,” you may want to opt for a ranch house instead of a two-story house with a lot of steps.

What about a foreclosure?

Foreclosures are attractive because of the perceived bargain they offer, but don’t be fooled. Not all foreclosures are deals. You’re also competing with savvy investors who have years of experience buying distressed properties, so as a first-time buyer, it’s essential you work with a real estate professional who knows the market.

Your best bet as a first-time buyer is an REO (real estate owned), a property that has been through the foreclosure process and is now owned by a bank. You work with the lender or lender’s broker, rather than a distressed homeowner.

But if you’re a buyer in a hurry, buying a foreclosure may not work. Foreclosure deals are known to take as long as 90 days or more to close, if they close at all.

What about a fixer-upper?

A fixer-upper is another appealing option for bargain-hunting buyers. Clark and Honkala from Chicago, for instance, bought a fixer-upper and took advantage of the FHA 203KS rehab loan program, which allows borrowers to finance improvements and upgrades up to $35,000 at the time of the purchase, provided the work financed is done by licensed contractors.

“When we’re done with the rehab,” Clark says, “we will have altered all but one room on the first floor and changed everything on the second floor. In prior years, the house had been split into multiple units. We’ve gutted all three kitchens and are only planning on putting one back. But even though it has been a lot of work, it’s definitely worth it.”

With the rehab loan, Clark’s mortgage is for $180,000. The bank appraiser estimates the house will be worth $230,000 when the rehab is finished -- not a shabby purchase, even if the home was initially shabby, and a solid investment to boot.

A fixer-upper also gives you the flexibility to “mold” a modest home into your dream home. Clark says she and Honkala are “both into cooking and hate apartment kitchens with their lack of counter space and sub-par appliances. About 35 percent of our rehab budget has gone straight into our kitchen, and we can't wait to host large dinner parties.”

THE NEIGHBORHOODS AND AREAS FOR YOU

Many first-time buyers tend to be young professionals or young families who want convenient access to arts, culture, good food, shopping, nightlife and recreational activities. For this reason, pedestrian-friendly neighborhoods are great for those starting out, in revitalized downtown areas or up-and-coming communities with history and character.

If you’re a first-time buyer on a budget, you may need to make some compromises when it comes to your first place. You may not be able to afford your ideal neighborhood or dream home, but you can get as close as you can to them. Buy a fixer-upper in the best neighborhood in the city, or buy new construction in an up-and-coming part of town. Just be mindful that your purchase price reflects the home’s market value.

Look at the price of your house and the comparables, advises Gregor Watson, managing partner at McKinley Capital Partners, in Oakland, Calif. Research the neighborhood and school districts. For instance, if you buy a house that’s inexpensive but surrounded by pricey McMansions, your property tax might be much higher than you would think.

Or if you’re going to live in the nicest house in a transition area, that, too, could adversely affect how much your house is worth -- which may not matter to you if you plan to live in the place for years to come and see it as a place to live and not an investment.

If you’re focused on buying a foreclosure, take Watson’s advice: “Once you think you know the area and smell a good deal, don’t waste your time trying to buy an REO home or a short sale. You can’t compete with all the cash buyers. The best way to find a deal is to partner with a broker or a group of investors that are buying direct from banks or on the courthouse steps.”

Whatever you’re looking for, work with a real estate professional that specializes in it, whether it be urban homes downtown, small houses or green living. There are even reputable real estate agencies and government programs that focus on selling houses to people with poor credit histories. Some real estate companies, like Performance Realty, Inc., in Indianapolis, offer programs specifically designed for first-home buyers.

As you search for financing and the right house, “stay patient,” Watson says. “Yes, the government is handing out money through first-time buyer tax incentives, and, yes, interest rates are low. But do your homework and really get to know the areas you want to live in and look for.”

Reposted from:  http://www.frontdoor.com/real-estate/what-to-know-before-buying-your-first-home