Real Estate Atlantic City Weekly

Cashing in on Facebook's new millionaires

By Inman News Feed — Fri, 25 May 2012 12:01:00 PDT

Silicon Valley real estate already feeling effects from last week's IPO
Silicon Valley real estate already feeling effects from last week's IPO

Steve Bergsman
Inman News®

In April, Facebook Inc. picked Nasdaq over the New York Stock Exchange for its initial public offering, or IPO, as it is know in the financial world.

The selection of a stock exchange was globally watched and the decision dissected for wider import by the world's tech community. In Northern California's Silicon Valley, home to the Menlo Park-based social networking company, everything Facebook does is carefully watched, even in the real estate sector.

Or, should we say, especially in the real estate sector, because an IPO like Facebook's produces plenty of instant multimillionaires when employee stock options suddenly have trading value. And those multimillionaires will need a place to live, somewhere in Silicon Valley, in driving distance to the corporate headquarters.

For example, Facebook founder and CEO Mark Zuckerberg last year bought a $7 million house in Palo Alto, Calif., and his company hadn't even transformed into a public company.

It should be noted $7 million is not an outlandish price for a home in Palo Alto, where in February the median price for a home was just under $2 million. Palo Alto wasn't even the cream of the crop. In February, 10 homes sold in nearby Atherton with a median price of $5.2 million; three homes sold in Portola Valley with a median price of $4.125 million; and nine homes sold in Los Altos Hills with a median price of $2.85 million.

So, the big question is: Will there be a Facebook effect on the local real estate market when the company becomes publicly traded? I checked in with two veteran Silicon Valley brokers to get their opinions.

Their views were mixed and nontech.

Yes, they think there will be some benefit, but after some tough years during the heart of the recession, Silicon Valley residential prices were already moving in the right direction so it would be naive to attribute any correction solely to Facebook.

Silicon Valley, the famed high-tech corridor stretching south of San Francisco to San Jose, is unique in that the financial movement of a singular company can have an unusual market impact on real estate values. It's not that Facebook's employees were not in the housing market already, either as homeowners or renters, but that an IPO would instantly change the capital status of those same employees, who might then want to improve their living standards.

"We do watch this kind of thing because technology is our employment base and it really drives the Silicon Valley housing market," said Suzanne Yost, president of the Silicon Valley Association of Realtors, and a Realtor with Alain Pinel Realtors in Los Gatos. "When we see a company succeed, we know that it is going to help the employees as well as the investors. That adds to the health of the housing market."

Well, has the Facebook effect began to kick in?

There are two ways to look at that: the direct and indirect effect, Yost said.

As far as newly minted millionaires, the market hasn't seen that yet, Yost said. "What I expect we will see, as per what happened with prior IPOs, is that people will cash in their stock options and buy property, particularly the young workers."

The indirect effect is something else, Yost said. "The Facebook IPO phenomenon has already led to increased consumer confidence and a lower employment rate. What we are seeing is: People are afraid they are going to miss the market and are getting in."

Chris Isaacson, chairman of the Silicon Valley Associations of Realtors and a Realtor with Coldwell Banker in Woodside, operates in the pricey markets of Palo Alto, Menlo Park, Atherton and Woodside.

When Mountain View, Calif.-based Google went public in 2004, there was also expectation that the housing market would take off, but that was in the midst of a booming housing market before the recession, and in actuality the market "just continued to do well," Isaacson said. "With Facebook, there is going to be a lock-up period, and a lot of young people may end up staying in San Francisco and taking the bus to work -- we have a great commuter bus system. We caution: The buzz may be more fiction than actual."

Having thrown up a caution flag against irrational exuberance, Isaacson added, "There is going to be money generated locally, and some of that has already been the case. There have been people working at Facebook who were able to sell stock for some time now and have been buying houses."

As in 2004 with Google, it might be hard to see the IPO effect because the Silicon Valley market has already been improving since the dark days of the recession.

"Prices came down across the board during the recession, but in varying degrees," Isaacson said. "In the lower end of Menlo Park where there was a lot of speculative buying and rental housing, prices declined around 30 percent. Most Silicon Valley homeowners, however, experienced a decline of about 10 percent to 20 percent at the worst. Now, it feels like it is back to where it was at peak."

If anything, there is a problem with lack of inventory in Silicon Valley.

In February 2011, the total inventory for Silicon Valley was 980 single-family homes, with closed sales at 171, Yost said. "In February 2012, total inventory was 698 homes, with total closed sales at 204 homes. In February 2011, the average days on the market was 86; a year later it was 61."

Even those numbers are a bit misleading.

"The stats tell a story, but you have dig deeper," Yost said. "Houses that come on the market at fair market value are selling in the first 10 days and getting multiple offers. If you look at the median days on the market, that is driven higher by a group of homes that have been for sale a very long time because the sellers aren't realistic about the prices."

Indeed, selling price per square foot in February 2012 was $588, down 5.8 percent from February the year before.

Here's a couple of interesting data points for February: Palo Alto reported 24 closed sales with an average 39 days on the market and a median price of $1.95 million; Menlo Park also reported 24 closed sales with an average 39 days on the market and a median price of $765,000.

"The market here had troubles really only at the start of 2008, which was much later than everywhere else," Isaacson said. "Things were humming along quite nicely through the summer of 2008 until the Lehman Brothers collapse. 2009 was a year when a lot of people were trying to understand what happened. Last year was quite good, and this year is going to (be) better."

That's something you might want to read about on Facebook.

Steve Bergsman is a freelance writer in Arizona and author of several books. His latest book, "Growing Up Levittown: In a Time of Conformity, Controversy and Cultural Crisis," is now available for sale on Amazon.com.

Contact Steve Bergsman:
Email	Letter to the Editor

What's Your Home Worth?

Tue, 18 Aug 2009 14:00:26 PDT

Enter an address to see its Zillow.com zestimate!

The Zestimate (pronounced ZEST-ti-met, rhymes with estimate) home valuation is Zillow's estimated market value, computed using a proprietary formula. It is not an appraisal. It is a starting point in determining a home's value. The Zestimate is pulled from data; your real estate agent or appraiser physically inspects the home and takes special features, location, and market conditions into account. Variations in price also occur because of negotiating factors, closing costs, and timing of closing.

Battery tech improves trimmers, chain saws

By Inman News Feed — Fri, 25 May 2012 12:01:00 PDT

Backyard cleanup has never been so efficient, quiet
Backyard cleanup has never been so efficient, quiet

Paul Bianchina
Inman News®

Battery technology has been steadily improving in recent years, and with the coming of lithium ion, tool manufacturers have been quick to incorporate these ever lighter and more powerful batteries into tools of all types. We've become accustomed to manufacturers replacing the electrical cord with a battery in just about every conceivable shop tool, from drills and saws to lights and test equipment.

But it's only been fairly recently that batteries have become powerful enough to really make a useful dent in another arena: tools powered by gas engines. That's led to a new generation of tools for the weekend warrior and even the professional that really helps with backyard cleanup chores. Battery-powered yard tools eliminate all the starting and maintenance hassles associated with gas motors; they eliminate emissions; and they greatly reduce noise and vibration.

I recently tried out two new entries in this growing market. Both tools could easily find a place in anyone's tool shed, adding a lot of convenience to backyard chores and helping you free up your Saturdays that much quicker. As this technology grows, I'd definitely be looking for manufacturers to add more and more tools to the outdoor lineup.

1. Black & Decker 36V Lithium Trimmer Edger (Model LST136 $170): This isn't the first battery-powered string trimmer to hit the market, but it's definitely one of the best I've tried. The 36-volt lithium ion battery gives this trimmer quite a bit of power and torque, so you can cut through taller grass and weeds with ease. You also get longer run time, which is nice for larger yards.

Black & Decker has incorporated a Power Command dial into the handle, with six settings that adjust the motor speed from 6,500 to 8,500 rpm. You may not use all the settings, but it's nice to have the option of more power for thicker weeds, or less power to conserve the battery. I found that even the lowest setting handled normal grass with no problem.

Despite its higher voltage, the battery isn't all that large, and it's mounted in the handle to balance the weight of the cutting head. The entire unit weighs only 7.8 pounds, with the battery. The length of the handle adjusts and locks easily with a thumb latch, and there's an auxiliary handle that adjusts with a single locking nut, making it easy for multiple users. A single push button rotates the head down for edging, and it did a great job edging along walkways.

The battery has an onboard fuel gauge to let you monitor the charge status, and the charger recharges it in about an hour. It includes one battery, a charger and an auto-feed line spool.

2. Oregon PowerNow 40V Max Chain Saw (Model CS250 $399 with Standard Battery Pack, $499 with Endurance Battery Pack): I've used gas-powered chain saws enough to know they're not my favorite tool, between mixing of the gas and oil, the pull cords, the chain sharpening, and the noise. But a battery-powered chain saw? I'll admit I was skeptical. Not any more!

The Oregon 40V Max is powered by a fairly large 40-volt lithium ion battery pack that snaps into a slot on the top of the chain saw, about where the fuel tank would otherwise be. It locks securely in place so there's no danger of it coming out no matter what position the saw is in, and can't be removed until you trigger the release lever. The battery has a button-activated onboard fuel gauge with four green lights to let you know the status of the remaining charge. The standard battery (1.2 amp hours) charges in about one hour with the included charger; the endurance battery (2.4 amp hours) takes about two hours.

With the battery in place, the saw is well balanced, and feels like any other chain saw I've ever held. The total weight is about 10.5 pounds. The saw has a 14-inch bar, and it's all made by Oregon, one of the industry leaders in professional quality tree-cutting equipment.

The real test came in the field, with some actual cutting. It was great not to have to bring along any gas or fiddle with a start-up ritual. Just put bar oil in the reservoir, snap in a charged battery, and pull the trigger! I expected this to be something of a light-duty pruning saw, so I started with some basic small limbing on a downed tree. It buzzed through that task with no problem, so I graduated to cutting the downed tree into sections. Again, no problem.

From there, it was on to actually felling a tree about 10 inches in diameter. It handled the task easily, with good power and a nice, sharp cutting action. It bogged down a little once when I pushed it too hard, and I remembered the old adage about letting the saw do the work -- from then on I was fine (the saw will cut out if pushed too hard in order to save the motor; simply re-triggering it starts it up again). All in all, the saw really outperformed my expectations.

If you're like me, you probably hate sharpening chains, so you're sure to love the built-in PowerSharp feature. There's a replaceable, curved grinding stone located behind the chain. When your chain starts to get dull, you simply trigger the saw to get the chain spinning, then lift a handle to engage the grinding stone with the chain. Three to five seconds later, your chain is resharpened for you, without ever taking it off the bar or having to break out a file.

No emissions, greatly reduced noise, and a whole lot of convenience make this a great saw for yard work, construction projects, vacation homes, even camping and RV use. It includes the saw, bar and chain, bar cover, one battery, charger, and a very well written set of instructions.

Remember when using a string trimmer, chain saw or other outdoor power tools to always wear eye and hearing protection, and follow all of the manufacturer's safety and operating instructions.

Remodeling and repair questions? Email Paul at paulbianchina@inman.com. All product reviews are based on the author's actual testing of free review samples provided by the manufacturers.

Contact Paul Bianchina:
Email	Letter to the Editor

Must-knows when buying pet-restricted condo

By Inman News Feed — Thu, 24 May 2012 08:31:02 PDT

REThink Real Estate
REThink Real Estate

Tara-Nicholle Nelson
Inman News®

Q: I am surprised that so many condos have a "no pets" policy. How strict is this policy? For instance, I have a cat that would not go outside, so would my cat be banned also?

A: As a devoted dog mom, this is an issue that's near and dear to my heart, especially as my first dog years ago was what I call a real estate rescue.

At the time, I was a real estate broker working in a big office, and adopted my Pekinese, Mr. Chom Chom Nelson (RIP), after answering the SOS email of an agent who was selling the home of some clients who were (you guessed it!) moving out of state, to a condo that wouldn't allow pets.

I have personally only owned single-family homes, and all the condo transactions I've managed have been in California, which has a law prohibiting no-pet condo deed restrictions (California Civil Code Section 1360.50), so I was completely outraged at the idea of such a ban. It was a real education for me to find out that in states like Florida and New York, it is extremely common for every condo complex in town to have an outright deed restriction on all pets.

As pets have continued to grow in popularity, there are now groups of pet owners who are banding together to lobby against no-pet and other extreme pet-related deed restrictions; PetsInCondos.org is one such group. As you might guess, though, the wheels of justice move extremely slowly; until the laws change, here are two things you must keep in mind as a pet owner considering condos with pet-related deed restrictions:

1. Don't count on exceptions that aren't in writing. When it comes to pet-related deed restrictions, strict is as strict does; many owners of units with such restrictions live in communities where the restriction is not enforced and pets are tolerated. And legally speaking, if a community doesn't enforce a deed restriction against pets for a given number of years (five years in Florida), owners with pets might be able to argue that their pets are legitimately allowed.

However, at any time, a homeowners association (HOA) can simply notify owners that a no-pet policy that has not been enforced will be, moving forward, breaking the five-year chain and putting pet owners who've been relying on this informal policy in a position where they are fined or even sued.

Most HOA policies that have exceptions to a no-pet policy will expressly state them in writing. For example, it is not at all uncommon for such stated exceptions to include: one "ordinary" pet per unit; two dogs or cats under 25 pounds; one indoor cat; etc.

Given the stress, inconvenience and expense you could encounter by buying and moving into a home in reliance on an informal policy of not enforcing the no-pet rule, I would encourage you not to rely on any exceptions to the rule unless you see them in writing from the HOA.

2. The law does carve out some health-related exceptions to no-pet deed restrictions. Federal and state fair housing laws require HOAs to allow "service" animals, which are not limited (as many people think) to seeing eye dogs, but can include a range of animals who are trained to help people who have a variety of issues. In a similar vein, there is an increasing trend for doctors to recommend that people obtain what attorney Gary Poliakoff has deemed "prescription pets," to manage depression and other medical issues.

Condo buyers seeking to have their animals permitted under these rules may be required to produce doctor's orders or a medical "prescription" to the HOA board.

Tara-Nicholle Nelson is author of "The Savvy Woman's Homebuying Handbook" and "Trillion Dollar Women: Use Your Power to Make Buying and Remodeling Decisions." Tara is also the Consumer Ambassador and Educator for real estate listings search site Trulia.com. Ask her a real estate question online or visit her website, www.rethinkrealestate.com.

Contact Tara-Nicholle Nelson:
Facebook	Twitter	Email	Letter to the Editor

Rules for disposing of tenant possessions

By Inman News Feed — Thu, 24 May 2012 08:16:31 PDT

Rent it Right
Rent it Right

Janet Portman
Inman News®

Q: When I moved out of the house I rented, I mistakenly left behind some prescription medicines. When I contacted the landlord, he said he'd thrown it all out. It's going to cost me a bundle to replace those medications. Do I have any recourse against the landlord? --Robert W.

A: All but a handful of states have detailed laws that explain how landlords may or must handle property left behind by tenants. Sometimes, the rules depend on the reason the tenant left: Those who move voluntarily, at the end of a lease, arguably had time to pack up; what they left behind is more likely to be unwanted, so the landlord has more leeway in disposing of it.

On the other hand, tenants who leave after getting a notice to pay or quit (or cure or quit), who break the lease and move unannounced, or who have been evicted, may not have had time to pack everything; some states make landlords handle any leftover belongings more carefully in these situations (though some take the opposite approach, reasoning that lease-breakers don't deserve special treatment).

State laws also consider the type of property left behind. Obvious junk, such as food and garbage, can always be thrown out. And in many states, abandoned vehicles are a special case; motor vehicle laws often step in and specify how a property owner may dispose of a junker. But items of obvious value -- electronics, tools, certain recreational equipment, and so on -- must be handled as specified by the statute.

In some states, landlords must attempt to contact the departed tenant, hold the items for a specified amount of time, and then dispose of them. Statutes that allow the landlord to sell the property may allow the landlord to keep the proceeds; in California, however, after deducting the cost of storage and sale (and any unpaid rent, but this requires a trip to court), the landlord must donate the balance to the county.

In other states, landlords can dispose of the property immediately.

So as you can see, there's quite a variation in state law approaches. If your state requires landlords to notify and store, you'll be interested in knowing whether prescription medicines would qualify as the type of item that should be kept, not tossed out. Few statutes address this issue directly; in Wisconsin, however, new legislation specifically mentions prescription medications. The law requires the landlord to hold them for seven days. Interestingly, there's no notification requirement; other property may be disposed of immediately as long as the landlord discloses this policy in the rental agreement. (Wis. Ann. Stat. Sec. 704.05 (5) (am).)

Let's suppose that your state statute requires landlords to hold, and notify tenants of, any non-garbage belongings left behind after a move-out like yours, and that your medications would qualify. If your landlord tossed the medicine in violation of the law, you may have a case against him. If the landlord didn't make good on your losses, you could enforce your right by taking your complaint to small claims court and suing for the value of the medicine.

Q: My tenant skipped out on his lease, leaving six months to go. I've found a replacement, and kept the original tenant's deposit, which just covered the time the unit was vacant. But now the replacement is behind on the rent. Can I get any rent money from the original tenant? --Mary B.

A: When tenants break a lease without legal justification, in most states landlords are required to use reasonable efforts to find a replacement. Once the landlord has rented to a new tenant, the old tenant's responsibility for rent for the rest of his or her lease term ends. In most states, renting to a replacement completely ends the original tenant's obligations -- the original tenant doesn't stay on as a guarantor of the replacement.

The state of Maryland, however, takes a unique approach, and one that is very landlord-friendly (Md. Real Prop. Law § 8-207.). In Maryland, an original tenant's lease-breaking is seen as an opportunity for the landlord to sublet the premises, not to retake possession and re-rent to a new tenant. In Maryland, the original tenant is not only liable for rent during the months that the landlord is seeking a replacement -- he remains on the hook for the rent, should the replacement tenant fail to pay.

This arrangement is to be expected when tenants and landlords intentionally create a sublease -- the original tenant is indeed a guarantor of the subtenant's performance if need be. For this reason, tenants choose their subtenants with great care. But an absconding tenant in Maryland can also be responsible for the financial performance of a replacement whom he has never met, as long as the landlord gives the original tenant notice of the replacement's failure to pay rent.

In practical terms, this provision might not do Maryland landlords much good, because it depends on being able to not only find, but collect from, the original tenant. Far too often, tenants leave unannounced and they're never heard from again, making it very hard to track them down, let alone sue them.

But one can imagine this statute having a real impact for tenants who break a lease in order to move into a just-purchased home. They may be willing to pay for a couple of months of rent while the landlord looks for a replacement, but they would probably be quite surprised to find themselves at the other end of a small claims lawsuit if the replacement leaves and the landlord is once again without the rent. It might be much easier to sue and collect from these newly planted, easy-to-find and judgment-worthy original tenants than to try to find the departed sub.

For tenants in Maryland, the lesson is clear: Unless you have a legally recognized reason to break a lease, do your best to find an acceptable replacement before leaving. Otherwise, you may learn later that you're responsible for the financial shortcomings of a stranger.

Janet Portman is an attorney and managing editor at Nolo. She specializes in landlord/tenant law and is co-author of "Every Landlord's Legal Guide" and "Every Tenant's Legal Guide." She can be reached at janet@inman.com.

Contact Janet Portman:
Email	Letter to the Editor

More vacation-home owners renting them out

By Inman News Feed — Wed, 23 May 2012 11:23:24 PDT

Income can help cover mortgage and taxes, or even turn a profit
Income can help cover mortgage and taxes, or even turn a profit

Tom Kelly
Inman News®

Not only are vacation-home sales on the uptick, but the percentage of purchasers who intend to rent out vacation homes to friends, family and travelers is climbing like never before.

Perhaps it's the sluggish economy, coupled with the chance to buy a bargain getaway, but 70 percent of vacation-home buyers say they plan to rent out their home in the next year, according to a survey by the National Association of Realtors.

Recreation home sales were up 7 percent in 2011 from the year before, yet the median sales price dropped 19 percent to its lowest point in four years.

Of the 70 percent who said they intended to rent out their properties, 39 percent said they planned to use the rental income to help cover mortgage, taxes, insurance and other costs, while 14 percent stated they purchased the property to make a profit.

These statistics probably do not surprise the 3.3 million vacation property owners in the U.S. who choose to rent out their homes, condos and apartments. According to Radius Global Market Research, the vocational rental industry generated more than $85 billion in 2010 in the U.S. and Europe.

"Families and groups have just begun to discover the value proposition that renting a home holds over renting a hotel room," said Jeff Mosler, a former group manager at Microsoft and Amazon and now vice president, global customer experience, at HomeAway. "People not only appreciate the space but also the ability to use a kitchen and laundry services plus the privacy of their own patio and pool."

HomeAway, the parent company of VRBO and dozens of other international websites that allow owners to display and rent out their properties, showed a revenue increase of 37.1 percent to $330.2 million last year, up from $167.9 million in 2010.

The company has become the major player in the vacation rental space, charging owners an annual average of $300 to list their homes with pictures, description and reviews. HomeAway had 640,000 paid listings in 2011, up from 324,933 in 2008. The Austin-based company went public last year and now employs 1,010: 642 in the U.S. and 368 abroad.

According to the National Association of Realtors, there are approximately 7.7 million recreational properties in the U.S. Of the second-home owners who bought in 2011, approximately 33 percent of those surveyed by NAR said that they purchased solely for personal use, less than half of the number found a decade ago.

That stat is mostly likely a reflection of a "luxury-adverse" economy plus the addition of online tools making it easier to locate and bill travelers and vacationers. For example, HomeAway has negotiated deep discounts for credit cards, rental guarantees and insurance while streamlining reservations and providing customer profiles.

"There's no way a person in the vacation rental business could go into a bank and get a merchant credit card rate of lower than 3.5 or 5 percent," said Brent Bellm, HomeAway's chief operating officer. "All of our owners can take credit card charges at 2.5 percent with no additional fees, which is a relationship you could not receive as a single individual or small-business owner."

Potential owners considering another purchase have also been viewing online results in making their decisions to get into the vacation rental business. For example, HomeAway reported that 51 percent of its owners who financed their vacation home were able to cover more than 75 percent of their mortgage by renting it to travelers. In addition, owners averaged 19 rental weeks a year, generating more than $28,000 in annual rental income.

Michael Smith, a vacation-home owner who specializes in large groups who want to visit Disneyland, said not only are his bookings on the rise, but so is his competition.

"Two years ago, we were probably the only people with homes that could accommodate 18-25 people," Smith said. "Now, there are at least four other competitors just in the immediate Anaheim area. Consumers now have more option where we used to be their only call."

Bellm said that HomeAway's target market is groups of at least three-plus people, not individual couples headed out for a romantic weekend or vacation.

"Those people often don't require the size of a vacation rental home," Bellm said. "Often, they are looking for specific services that a certain hotel offers. We see that changing, however, as more vacation property owners expand the creative services in their homes."

Next week: Vacation rentals get the cold shoulder in some communities.

Tom Kelly's new e-book, "Bargains Beyond the Border: Get Past the Blood and Drugs: Mexico's Lower Cost of Living Can Avert a Tearful Retirement," is available online at Apple's iBookstore, Amazon.com, Sony's Reader Store, Barnes & Noble, Kobo, Diesel eBook Store, and Google Editions.

Contact Tom Kelly:
Email	Letter to the Editor

Know when to replace your kitchen faucet

By Inman News Feed — Wed, 23 May 2012 10:56:13 PDT

Leak leads to under-sink revelation
Leak leads to under-sink revelation

Bill and Kevin Burnett
Inman News®

We get a fair amount of questions that don't require a detailed answer, but deserve a response. So it's time once again to empty the question bag:

Q: I have a Moen kitchen faucet that is leaking. It is a rotating, single-handle, one-hole installation, with no plate. The leak seems to come from a rusted base under the sink and drips down the flexible tubing. Is it easy to fix?

A: Yes, but the fix is to replace the faucet. The rust is the key. The faucet's innards are shot. It's possible that some parts need replacing, but for about $100-$200 (installed yourself) you can have a new one. We say live large and go new instead of trying to repair the old one.

Q: Thanks for the tip on fixing a leaky faucet. My question is: I have a two-handle faucet that turns on and off backward. How do you fix this problem?

A: If "backward" means the valve opens when turned to the right and closes when turned to the left, there's nothing you can do to reverse the operation. This is opposite of "normal," but it's the way the faucet was designed.

It's common for some old fixtures -- especially wall-mounted laundry tub faucets -- to work this way. If "backward" means hot water comes out when the cold valve is opened (and vice versa), simply reverse the supply lines to the faucet.

Q: I understand everything you had to say about hanging pictures from plaster walls. But my house, which was built in 1963, uses an expanded metal screen instead of wood lath. I normally see this material used as part of a guard on industrial machinery. Do I just use a screw or nail and hope I get past the metal?

A: The metal lath may look like an industrialized machine protective cage, but it's much lighter. Don't try the hit-or-miss method. Blind nailing or screwing -- especially with heavy pictures or wall hangings -- is a bad idea.

Get out the drill, insert the appropriate-size twist bit, and drill a hole for a molly bolt. The twist bit goes right through the metal, and a molly bolt expands in the wall when tightened, providing a secure anchor. Once the bolt is set, back it out a bit, and there's your hanger.

Contact Bill and Kevin Burnett:
Email	Letter to the Editor

Climb out of that rut and engage with life

By Inman News Feed — Tue, 22 May 2012 10:47:21 PDT

Book Review: 'The Charge: Activating the 10 Human Drives That Make You Feel Alive'
Book Review: 'The Charge: Activating the 10 Human Drives That Make You Feel Alive'

Tara-Nicholle Nelson
Inman News®

Book Review
Title: "The Charge: Activating the 10 Human Drives That Make You Feel Alive"
Author: Brendon Burchard
Publisher: Free Press, 2012: 272 pages; $20.80

We've all fallen into ruts. And after the recession, many have found their ennui and generalized dissatisfaction to be worse than normal. Maybe you worked and worked to get a job, then you get one, and still ... blech.

Maybe you fought and fought to keep your home, and you got that elusive loan mod, only to find yourself feeling much less than victorious; or you didn't get it, and have been dealing with feelings of failure.

Or perhaps you had personal dreams around relationships, children, whatever -- and whether or not you realized them, you just lack the excitement about life you thought you would have at this stage of the game.

Enter Brendon Burchard, a writer and achievement coach, and his new book, "The Charge: Activating the 10 Drives That Make You Feel Alive." Burchard's premise is that the root cause of this widespread dissatisfaction is that our brains and human needs have evolved at light speed, so that in 2012 we all have a much more intense need for self-actualization and fulfillment, relative to basics like food and such, than previous generations did.

Proposing that any universal ideal of what life should look out is already uber-obsolete, Burchard sketches out what the new ideal should be and deems it "The Charged Life," a life that is engaged and energized, versus a life that is comfortable, but stale, or one that follows social normals but feels limited.

After exploring these various, more or less conscious ways of living, Burchard presents a set of characteristics, including self-reliance, creativity and connection, that position certain people -- so-called "chargers" -- to live a "charged life."

The rest of "The Charge" is devoted to exploring Burchard's own take on respectfully revising Maslow's hierarchy of needs, offering readers his list of "10 Human Drives" that reflect what most of us really want to activate in our lives. Here are a few:

1. The Drive for Control. Burchard posits that the first five of his 10 drives are akin to next-gen food and shelter; they are the "baseline drives" that allow us to feel secure and connected enough to move toward real fulfillment, which are the second set of drives, his "forward drives." He defines the drive for control as "the desire to regulate and influence our overall life experience."

Burchard goes on to help readers learn to distinguish between the things they can and cannot control, and to provide super-specific action steps for activating the sense of control in our lives with respect to things we can both control and that flick neuropsychological happiness switches: novelty, challenge and workflow.

2. The Drive for Connection. The clashing of simultaneous human drives for interdependence (via interpersonal relationships, close and casual) AND independence is the root of all human conflict and much human upset, according to Burchard.

Counting the ability to share your "charge" with others in relationships as a critical element of a "charged life," Burchard walks readers through the process of optimizing those relationships to minimize disconnects and dissension, through intentionally defining and designing what ideal relationships would look like, practicing what he calls "positive projection" and cultivating "growth friends," or people with whom you can grow and energize your life.

3. The Drive for Challenge. Challenge is one of Burchard's future-facing, fulfillment-creating "forward drives," and it's the one he calls out as being "the most powerful drive for advancing our lives."

Challenge also dominates the drives because it unifies them, according to Burchard, "in that it introduces a change in our lives that we must now control, build new competence around, and, often, socially manage (activating caring and connection)."

Burchard provides three actionable steps -- and a number of mindset shifts -- for activating our excitement and engagement in the realm of challenge, including choosing the right challenge, focusing on the right things and avoiding a focus on the wrong things that come up during your challenge quest, and breaking off bite-sized, 30-day, personal, social or giving challenges every single month.

This book is a great engine-revver for those who feel like they are in a rut, or for those who feel like their calling is out there and they are struggling to find the structure or juice to take off in hot pursuit. I strongly recommend this book.

Contact Tara-Nicholle Nelson:
Facebook	Twitter	Email	Letter to the Editor

How not to get rid of a time share

By Inman News Feed — Tue, 22 May 2012 09:35:47 PDT

Sellers: Beware of scam artists, upfront fees
Sellers: Beware of scam artists, upfront fees

Benny Kass
Inman News®

DEAR READERS: I frequently receive questions about how to get rid of a time share. I must admit that my response thus far has been less than satisfactory. I once suggested that the time share be donated to a church or a synagogue, but several priests wrote and asked that I stop making that recommendation, because the religious groups don't want the expense or the headaches of ownership.

Other readers asked if they could just walk away, and while I reluctantly indicated that was a possibility, I warned that the time-share management could file suit to collect the moneys that were due. This obviously would impact credit ratings.

Many readers advised me they had been taken advantage of by a scammer who promised (for as much as $5,000 upfront) to quickly sell the time share. As you all can guess, the scammer pocketed the money and did absolutely nothing. Fortunately, some of the state attorneys general -- Florida, for instance -- are investigating and prosecuting some of these crooks.

However, I just learned of an organization called the Timeshare Users Group (TUG) that may be of assistance to my readers who own time shares. According to its website (www.tug2.net), the Timeshare Users Group, which started in 1993, "is a family-run self-help organization providing an unbiased source of consumer-oriented information and advice on time shares and the time-share concept. ..."

TUG offers advice to owners, as well as a bulletin board for people seeking to rent or sell.

I offer this information with absolutely no guarantees or representations. I learned about this in an AARP publication and checked it out myself on the Web. Readers are cautioned not to take any action (or spend any money) before consulting with a legal adviser.

DEAR BENNY: After talking to several "agents" that specialize in the sale of time shares (all of which I would consider scam artists), I found Redweek.com and sold my mother's two weeks (late January in Florida) to legitimate buyers, and the association gave us the name of a legitimate title company who took care of everything for $300.

Obviously, I didn't get the "big" money out of them that was originally paid, but I did get $3,000 for one week and $3,500 for the other, so it is possible to sell them. The advertising in Redweek.com was between $40 and $45 for a six-month listing with pictures. It is certainly better than giving them away just to avoid paying the maintenance fees.

Don't ever pay one of the "crooked" agents that call you and say they will sell your time share, and all you have to do is give them $798 upfront for advertising, which will get you a one-year listing. It will not sell and you'll be out the $798. --Candy

DEAR CANDY: Thank you for writing. I searched Redweek.com and it appears to be acceptable. However, as with the Timeshare Users Group website, I make no guarantees or representations that this is a legitimate operation. Readers will have to find out on their own -- and hopefully with legal advice.

Candy's point must be repeated: Don't give any money upfront to someone who calls you cold, whether it be $798 or (as I have heard) much larger.

DEAR BENNY: If a homeowner is behind on his mortgage payments at the time a lease-option closes, in the event of foreclosure what is the effect on the lessee/purchaser? Is the lease dissolved and tenant removed prior to the end of lease term? --Debi

DEAR DEBI: To some extent, it depends on your state laws. For example, in the District of Columbia where I practice law, if a bank forecloses on an owner, the owner has no rights. However, if the bank forecloses on a property with tenants, the tenants have all the rights as tenants, and their lease remains in full force and effect.

In such a situation involving a lease with option to purchase, local law may give you guidance.

However, practically, it's really up to the bank that has foreclosed on the property. If the tenant who has a contract to purchase has the financial ability to buy, my experience is that the bank will work with the tenant. Clearly, despite what we all think of banks, they do not want to own property that they have just foreclosed upon. They have to pay real estate taxes and insurance, and try to keep the house from falling apart.

Technically, however, the bank is not a party to the lease with an option to purchase. So unless the bank actually agreed to such an arrangement, the bank does not have to honor that contract.

There is a law on the books that not everyone knows about. Called the "Helping Families Save Their Homes Act," it provides that tenants have the right to stay in their homes after foreclosure for 90 days or through the term of their lease. The protections go into effect immediately and expire at the end of this year.

So, whether there is a lease with an option to purchase or just a plain lease, tenants in properties that have been foreclosed upon have the absolute right to stay through the end of their lease or a minimum of 90 days.

If you are a tenant with a purchase option, make sure you contact the bank that foreclosed. You may be able to get a good deal and stay in the house.

DEAR BENNY: The exact situation referenced in your recent column (in which the landlord took money from the tenant but did not make the mortgage payment) happened with regard to a property in our area. The circumstances were well-documented in our local newspaper.

When the bank found out the landlord had taken option money for a purchase and rent money from prospective buyers, it negotiated a settlement whereby it credited the tenants with what they had paid the landlord, and the landlord had to pay to the bank those funds. The landlord had to transfer ownership of the property to the tenants, and the bank refinanced the property to the tenants who were deemed creditworthy since they had lived in the house paying rent for more than a year.

In our state, deeds of trust are public information that can be researched in the online deed records for each county. And foreclosure actions are posted in the paper. So the tenants can find out this information for themselves in most states. In other states with private property information laws (like Massachusetts) they have to have an attorney research the information, or gather the information from the mail that was delivered to the house.

The tenants have leasehold rights to the property that the lender must acknowledge in any foreclosure action. In this case, they also have an option to purchase, which should allow them to go through with the purchase and pay off the foreclosure action. They or the owner can ask the lender to postpone the action to allow them to try to get the property financed for the purchase transaction.

As you know, many properties in today's market have lost value. Hopefully, the tenants did not agree to pay more for the property than it is worth today. In any case, they should get an appraisal and find out if the property will appraise for what the owner had it financed for. If the value has dropped below that or what they agreed to pay, then they should renegotiate the purchase contract.

Also, the bank can allow what is called a short sale, whereby the property sells for less than it is financed for. The bank needs to know that there is an option/contract for sale. This should have been disclosed to them when the preforeclosure appraisal was completed. But, in many cases, the banks are not using appraisers to come up with this value, and if they didn't use an appraiser, then they may have no knowledge of the existence of the option.

Even if an appraiser was used, they may have asked for an exterior appraisal only and may have told the appraiser not to disturb the occupants. In that case, neither the appraiser nor the bank would have any awareness of the existence of the tenants' occupancy.

Just my two cents for your consideration. --Susan

DEAR SUSAN: Thank you. Your comments are worth more than two cents. I actually thought that deeds of trusts (the mortgage document) were public throughout the country, so, if you are correct, I am surprised.

Benny L. Kass is a practicing attorney in Washington, D.C., and Maryland. No legal relationship is created by this column. Questions for this column can be submitted to benny@inman.com.

Contact Benny Kass:
Email	Letter to the Editor

Resolving dispute over home repair estimates

By Inman News Feed — Tue, 22 May 2012 09:26:20 PDT

Buyers think sellers' contractor choices are inadequate
Buyers think sellers' contractor choices are inadequate

Barry Stone
Inman News®

DEAR BARRY: We are in contract to purchase a house, and our home inspector found problems with the old steam heating system. A follow-up inspection by a heating contractor revealed a cracked boiler.

The sellers got three estimates for the work, but the expertise of these contractors is questionable, and their bids say very little about the scope of the work.

We have gotten our own estimates from contractors we trust, and their bids are significantly higher than the ones provided by the sellers. When we insisted that the work be done by one of our contractors, the sellers' agent said this was an "outlandish" request. What is your advice in this situation? --Charlie

DEAR CHARLIE: There is nothing outlandish about wanting to ensure that a heating system is installed by persons who are truly qualified and who will provide a safe and operational system. If the sellers and their agent find this unreasonable, they should provide evidence that that their contractors are qualified and competent to install a heating system that will be safe and functional.

Hopefully you have an agent of your own who will negotiate on your behalf, rather than giving in to the sellers' refusal. If they insist on using their own contractor, then that contractor should resubmit his bid, providing specific details of the work to be done. The contractor should also provide his license number and references of satisfied past customers. Stand strong.

DEAR BARRY: My daughter and son-in-law bought a house 10 years ago. Recently, while remodeling their home, they found the well and holding tank hidden behind a wall, and this has caused problems with the county building inspector. How could this have been overlooked by their home inspector when they purchased the property? --Joyce

DEAR JOYCE: The most likely reason for the home inspector to have missed the well is that it was concealed behind a wall. Unless there was some visible evidence, there may have been no way for the inspector to make that discovery. Unusual conditions such as this are sometimes found in a very old home, and municipal building inspectors typically regard them as "grandfathered," rather than requiring upgrade to current standards. If the inspector presses the issue, your daughter and son-in-law may need to discuss the matter with an attorney.

DEAR BARRY: We bought our house seven years ago, and our home inspector said that the roof would last about 12 more years. But this year we started having leaks, and three roofing contractors have said the roof is worn out and needs replacement. Is the home inspector liable now that seven years have passed? --Shirley

DEAR SHIRLEY: Predicting the longevity of a roof is something that can seldom be done with accuracy. Home inspectors who try to do this are foolish or inexperienced, and they expose themselves to needless liability.

After seven years, it would be difficult to hold your inspector legally liable for faulty disclosure, unless he stated the 12-year prediction in writing.

To write to Barry Stone, please visit him on the Web at www.housedetective.com.

Contact Barry Stone:
Email	Letter to the Editor

4 traits of unhappy homeowners

By Inman News Feed — Mon, 21 May 2012 11:21:08 PDT

Mood of the Market
Mood of the Market

Tara-Nicholle Nelson
Inman News®

As the parent of a newly-minted adult, I can reflect on how much of my advice thus far has been delivered in the negative. "Son," I've said, time and time again, "I've been there and I've done that and here's what NOT to do."

I suspect this might be a theme of any great advice in any realm of life: it's critical to know from those who have gone before what you should do, and just as critical -- sometimes more so -- to know what not to do. In the interest of ensuring that the advice I gave last week on how to be a happy homeowner is comprehensive, then, it behooves me to share some insights on how to be an unhappy one -- in the hopes it will help you avoid this fate.

1. Move a lot. Moving house is stressful, in and of itself. Mention the prospect of moving to any cocktail party crowd, and you'll undoubtedly hear a chorus of moans and groans of "I hate to move!" Studies actually rank moving right up there with getting a divorce or being widowed in terms of stressfulness -- no joke! And that's just the moving part -- there's also the stress multiplier of selling your home, which includes such unhappy-making activities as:

Deciding when to sell.
Studying market data on recent sales in your area.
Interviewing listing agents.
Giving your home the deepest clean ever.
Opening your home to strangers.
Waiting for, fielding and responding to offers.
Holding your breath, anxiously awaiting the appraisal and closing.

Homeowners who move a lot not only have to deal with the inherent stresses of moving, but also with each of these other attendant stresses of selling.

2. Make mortgage moves a lot. In a landmark study by Thomas Holmes and Richard Rahe ranking various life events in terms of their relative stress, taking out a mortgage was given a score of 30. And here's some context, having your home foreclosed was given a score of 31! For smart homeowners, taking out a mortgage can be a tense series of decisions that they don't always feel well-equipped to make, from selecting a mortgage broker to selecting a loan type and term to trying to ascertain whether they're getting the best deal on rates and fees. And there are also the uncertainties involved -- the feeling that an appraiser and an underwriter who you'll never meet are in control of your financial fate doesn't feel good.

Beyond that, it's highly worrisome to have to scurry around and meet seemingly nonsensical documentation requirements or show up to sign stacks of papers at weird times in weird places at the whim of the mortgage lender, which you must do on the principle my Dad leveraged so frequently during my childhood: "he/she who holds the cash makes the rules." And the biggest stresses around frequent mortgage moves come when they are being made because the current mortgage obligations are simply too burdensome or overwhelming, which just puts an even greater level of pressure on the unhappy homeowner to close the loan -- something that is not 100 percent within their control.

3. Try to time the market. Those who try to time the market, whether trying to lock in an interest rate at the precise bottom or trying to sell at the tippy-top of the market, rarely do. By the time you can register that a bottom is in the wind, it has usually passed -- and if you've been a homeowner in an ascending market, you know that the temptation is to hold in order to collect every penny of appreciation, not to get out while things are hot.

Those who are very emotionally invested in their timing games set themselves up not just to fail, but also to experience great distress. This is about fixating on things beyond your control -- at some point, with home ownership, as with investing in other asset classes, you have to make a decision and commit to feeling good about that decision. Fretting that rates went down after you locked yours or that you could have made an extra ten grand if you had held onto your place another few months is a sure-fire way to stress yourself into a premature spot on the Botox power user list.

4. View your home as a short-term investment. In light of recent market madness, this seems silly, but the reality is that a large number of homeowners who lost homes in the last wave of foreclosures were people who had bought homes planning to be in them a few years or less -- and who were counting on them to rise in value in the interim.

Not only does viewing your home as a short-term investment (vs. a long-term residence) make you more likely to take on mortgage obligations that are unsustainable in the long-term, it also positions you to select a home that is more of a Band-Aid for your living needs than a real solution. And that renders you less likely to pick a place that will be functional for your life over the long run if the market does decline and you need to stay put. I personally know at least three young men who lost urban lofts they had counted on to appreciate through short sales or foreclosure when they found themselves married with children at the bottom of the market.

Contact Tara-Nicholle Nelson:
Facebook	Twitter	Email	Letter to the Editor

Think twice before rejecting request for an extension

By Inman News Feed — Mon, 21 May 2012 10:42:05 PDT

In today's market, sellers may be wise to compromise with buyers
In today's market, sellers may be wise to compromise with buyers

Dian Hymer
Inman News®

In some cases, your past experience will help you make a good decision about what to do in a current home-sale transaction. But if you rely only on past real estate experience to make decisions about selling a home today, you could end up with an unsatisfactory result.

The old rules, such as they were, don't always work for the current home-sale market. For example, more purchase contracts specify that time is of the essence. In other words, contingencies will be met on time.

In today's market, it's often difficult for buyers to remove their financing contingencies on time unless they are paying all cash and don't need to go through the rigors of mortgage underwriting. Due to no fault of the buyers, they often need to ask the sellers for an extension in order to satisfy a contingency.

Extensions should be reasonably granted but only after making due diligence investigations. For instance, it wouldn't be wise to grant an extension to a buyer that hasn't even submitted a loan application. In this case, it would be better to find yourself another, more dedicated buyer.

However, if the lender is so backlogged that it hasn't had a chance to underwrite the buyers' loan package, and there doesn't appear to be a problem other than the time delay, grant the extension.

HOUSE HUNTING: To make it through a home purchase or sale in the current market, it's important to understand the point of view of the person on the other side of the transaction. It's impossible to control all facets of a home-sale transaction. Patience and compromise are essential.

When buyers are doing everything they can to make a deadline in the contract, or the closing date, but are delayed for conditions beyond their control, they are doing what they agreed to do.

Most buyers don't like to ask for extensions any more than sellers like granting them. But, standing on principle could result in a dead deal. If you won't grant an extension because a seller refused to grant you one in a previous transaction, you could find your home is back on the market.

Buyers have a choice. They don't have to buy your house, no matter how much they like it. Some buyers will walk away from a home if they think the sellers are unreasonable or are treating them unfairly.

Another rule that is broken fairly often in the current market has to do with inspections. In situations where sellers provide buyers with presale inspection reports, the expectation is that buyers won't come back and ask the sellers to pay to correct defects they were aware of when they made their offer.

Buyers were more forgiving in the bubble market when prices were rising rapidly. They felt they had less to lose and could afford to take on some of the repairs. Today's buyers are more cautious and conservative. Some are more risk-averse than others.

Second opinions by buyers' inspectors are more common today than they were when the market was hot. Second opinions can lead to different conclusions about the seriousness of a defect and the urgency for making repairs.

Although sellers may feel they're being taken advantage of, they should weigh the merits of the offer in hand, even if it means settling for a lower price, before they decide to play hard ball. If you can't resolve inspection issues, you might have to start over again searching for a buyer. This takes time and could cost more if you have to sell for less.

Disclosure obligations vary from state to state. Even so, it's wise to make any future buyer aware of all reports generated on the property to protect yourself legally.

THE CLOSING: Another buyer might be even tougher on inspections.

Dian Hymer, a real estate broker with more than 30 years' experience, is a nationally syndicated real estate columnist and author of "House Hunting: The Take-Along Workbook for Home Buyers" and "Starting Out, The Complete Home Buyer's Guide."

Contact Dian Hymer:
Email	Letter to the Editor

Where did all the lease-to-own deals go?

By Inman News Feed — Mon, 21 May 2012 10:29:17 PDT

Despite huge demand, purchase obstacles are plenty
Despite huge demand, purchase obstacles are plenty

Jack Guttentag
Inman News®

Of the 700 or so articles on my website, the article accessed most frequently over the last year has been one I wrote in 2004 on lease-to-own home purchases. This is a combination lease and purchase where the renter/buyer occupies the home as a tenant but has an option to purchase it within a specified period at a specified price. I will call these "LTO" deals.

The intense interest in LTO deals today partly reflects the more restrictive and rigid mortgage qualification requirements that emerged after the financial crisis. This has created a large body of wannabe homebuyers who can't qualify for the mortgage they need to make it happen. An LTO gives them a shot.

LTO buyers are hopeful that they can remedy their shortcomings as mortgage borrowers within the option period. This could mean repairing their credit, accumulating the cash required for a down payment, increasing their documentable income, or placing more distance between themselves and a prior bankruptcy or foreclosure.

On the other side of the table are homeowners looking to sell but, because of the decline in home prices, don't have the equity in their homes that they had been counting on. The LTO gives them a chance to sell at a better price in the future than they can realize in the current depressed market, and in the meantime they collect rent.

This simultaneous increase in interest by both buyers and sellers should result in a thriving market, but as far as I can tell (nobody collects data on LTOs!) this has not happened. A major part of the reason is that LTO deals are extremely complicated, combining features of both lease and purchase contracts, plus features that are peculiar to LTOs.

The party who develops the contract, usually the seller, tends to structure the deal in ways that are favorable to himself, which creates a hazard to the other party. For example, I once saw an LTO contract in which the buyer lost the purchase option if the rent payment in any month was five minutes late. A well-justified fear of being taken advantage of puts a damper on transactions.

My initial plan for dealing with this problem was to work with a lawyer to develop a model LTO contract that was fair to both parties, but that turned out to be impractical. Because real estate law varies from state to state, I would have to develop 50 model contracts.

Instead, what I have done in collaboration with Jack Pritchard is to develop a checklist of all the major provisions that might be included in an LTO, explaining the implications of each for both buyer and seller. The checklist can be used as a negotiating platform for the two parties, who can turn the results over to a local lawyer for conversion into a contract. If one of the parties has already developed a contract, the other party can use the checklist to assess its fairness.

The list of LTO provisions is too long and boring to present here, but there is one provision that warrants special attention because it is unique to LTO deals and has great potential, but is the source of much confusion. This is the rent credit, an amount above the market rent paid by the buyer, which is credited back to the buyer at closing. Rent credits can be used in two different ways that are not always distinguished.

The simplest approach reduces the sale price at closing by the total rent credit paid by the buyer. This reduces the required down payment only slightly. For example, if the sale price is $100,000 and the rent credit totals $5,000, the sale price becomes $95,000 and the down payment required at 5 percent falls from $5,000 to $4,750.

The rent credit is much more useful to the buyer if it can be used for the down payment in its entirety. If the rent credit of $5,000 in the example above is used in this way, the price of the house would remain at $100,000 but the buyer would receive $5,000 from the seller at closing, which could be used as down payment.

For this to work, however, the lender must accept the rent credit as legitimate savings by the buyer. To be sure that the rent credit is an amount paid above a fair market rent, the lender will require that the market rent be documented by an appraisal. To be sure that the buyer actually made the payments, the lender will want to see the canceled checks that evidence the payments. The Web version of this article will explain how to set up an LTO to meet these requirements.

The writer is professor of finance emeritus at the Wharton School of the University of Pennsylvania. Comments and questions can be left at www.mtgprofessor.com.

Contact Jack Guttentag:
Email	Letter to the Editor

Neighborhood social networking site taking off

By Inman News Feed — Fri, 18 May 2012 09:35:02 PDT

Launched in October, Nextdoor is up and running in more than 2,000 communities
Launched in October, Nextdoor is up and running in more than 2,000 communities

Steve Bergsman
Inman News®

David Milliron lives in Avondale Estates, a small, historic city about seven miles east of downtown Atlanta.

Never heard of it? Well, you should have, because Avondale Estates is home to the very first Waffle House, a restaurant chain very important to early morning Southern society, where folks meet up for hot waffles, coffee and who knows what else all the while exchanging gossip and important local news.

Milliron, who had been an Avondale Estates council commissioner, was looking for a more modern and efficient way for citizens of his community to exchange information and came upon Nextdoor.com, a free platform that enables neighbors to create private social networks for their neighborhoods.

"Nextdoor has worked out beautifully," Milliron said. "We have over one-third of our city already participating. Although I was involved early on, it has taken roots and no longer do I have to be the one. Organizations are posting; real estate agents are posting; people are making reservations and buying and selling things."

He added, "It has been an invaluable tool to bring our community closer together."

Nextdoor is slowly snaking its way across America.

The small technology company was founded in 2010 by a group of Silicon Valley veterans who had experience creating online communities going back to the 1990s.

"They recognized there was a lack of community in the world, and what is a better way to bring people back together than through social networking?" said Dabney Lawless, vice president of communications for Nextdoor.

More importantly, the concept proved so intriguing that it was funded by a couple of major equity investors, Benchmark Capital and Shasta Ventures, both of Menlo Park, Calif. One of the outside board members is Rich Barton, chairman and co-founder of Zillow.

After about a year testing its program in 176 neighborhoods across America, the company was officially launched in October 2011. Nextdoor claims more than 2,000 communities are now on board.

Growth has been all word of mouth, Lawless said.

"Nextdoor was created based on the idea that the neighborhood is one of the most important and useful communities in a person's life," according to Nextdoor.com. "Our mission is to bring back a sense of community to the neighborhood."

OK, all sounds good. Even warm and fuzzy, but how does it work?

Basically, each neighborhood creates a private Nextdoor website that is -- and this is important -- accessible only to the residents of that neighborhood. The information on the website is not sold to others nor is it indexed by Google or Yahoo. The only people who can see what's going on in your neighborhood vis-à-vis Nextdoor are the people who live in that neighborhood.

It's even difficult to fake belonging to a Nextdoor neighborhood because addresses need to be verified.

"These are privately closed networks specifically created for neighborhoods," Lawless said. "You decide how you want to set up Nextdoor in your neighborhood. You create the boundaries. Whatever makes logical sense. We have some neighborhoods that are almost a whole town, and we have neighborhoods that are just two or three streets."

Inviting neighbors to join the network is easy. Simply click the "invite neighbors" link on the website. Or, one just as easily can do emails, print fliers or send postcards. If postcards are sent, Nextdoor will pay for the postage and mail on your behalf.

Another cool feature of Nextdoor is that it includes a neighborhood map and directory of residents, so it becomes a little easier to understand with whom you might be exchanging messages.

These messages might include: the city is doing roadwork in the neighborhood; finding a babysitter; old furniture for sale; organizing a barbecue; recommending a local restaurant; or creating alerts if there have been, for example, burglaries in the neighborhood.

The success of Nextdoor in the Marin County, Calif., community of Laurel Grove had a lot to do with perceived threat to property.

"Back in December, I had just read about Nextdoor in my local newspaper and I thought it looked promising for organizing a playgroup," said Heather McPhail Sridharan. "I thought it would be fun to try this out online, a lot easier than getting all the emails and coordinating times."

To Sridharan's surprise, Nextdoor just took off. "It was viral. Now, we have almost 300 members."

What really spurred Nextdoor participation was a crime wave in the neighborhood, a series of break-ins stretching over a couple of weeks.

"A group of us decided to put some fliers into everyone's mailbox saying this site exists and it could keep us connected," Sridharan said.

"If we heard about someone soliciting door to door, it would be posted on the Nextdoor site," Sridharan said. "People wanted to be in the know about what was going on relating to the break-ins. If solicitors came in the neighborhood, the police were called."

Not surprising, the crime wave dissipated entirely.

"Our neighborhood is a mixed bag of younger families and older residents," Sridharan said. "The ones that are really posting a lot and being active are the older generation. I don't know if they are not on Facebook or they remember a time when neighborhoods used to be connected, but we had a couple of neighborhood meetings and overwhelmingly the people who attended were the older generation of folks."

If you're wondering how much Nextdoor costs to use, the answer is zero. The company is in a startup phase, focusing on building out the network in the best possible manner. It can do that because of the venture capital funding.

However, the model is designed to make money. The vision is to partner with local businesses in a Groupon kind of model.

"We've got several years before we have to think about monetization," Lawless said. "Right now the main focus of the company is perfecting the user experience."

Contact Steve Bergsman:
Email	Letter to the Editor

One man's Guggenheim, another man's toilet

By Inman News Feed — Fri, 18 May 2012 09:35:40 PDT

Unconventional design is like an architectural Rorschach
Unconventional design is like an architectural Rorschach

Arrol Gellner
Inman News®

Way back in 1978, at the dawn of postmodernism, the architect and social critic Charles Jencks noted how bad most architects are at gauging public reaction to their work.

Unlike many architects, Jencks recognized that laypeople, rather than perceiving sly aesthetic references to history or some other arcane theoretical underpinning, often associate unusual architectural forms with things that are closer to their personal experience.

To cite a common example, while modern architects considered the monotonous window grids of their high-rise buildings to be the apotheosis of form following function, critics and cartoonists routinely lampooned them as grid-paper charts or huge filing cabinets.

Architects often despair over such misinterpretations of their work by less high-minded observers. While Frank Lloyd Wright saw the circular, outward-leaning shell of his Guggenheim Museum (1959) as an organic spiral for the display of art, others saw it as a gigantic beige toilet.

Likewise, when Philip Johnson fielded ironic allusions to Georgian architecture in his postmodern, broken-pedimented AT&T Building in Manhattan (1984), many laypersons instead perceived a towering Chippendale wardrobe.

It's natural for people to associate an unusual shape with something more familiar, and this is one reason that popular nicknames for famous buildings stick so easily. Hence, when famed architects Pietro Belluschi and Luigi Nervi designed San Francisco's ultramodern Cathedral of St. Mary of the Assumption (1970) -- topped by a towering white cruciform roof resembling a giant washing machine agitator -- locals lost no time in christening the church Our Lady of Maytag.

Then again, there are designs so unusual that they stand as a sort of Rorschach test not merely for the beholder, but for the architect as well. Jorn Utzon's celebrated Sydney Opera House, finally completed in 1973 after years of controversy, provides a renowned example. It has perhaps invited more interpretations than any other building in history, having been been compared to everything from seashells and sails to angry alligators or trios of copulating turtles.

In the case of the Sydney Opera House, however, it's not really clear that Utzon himself understood the singularly evocative form he'd created. He'd unexpectedly won the competition for the building's design in 1957 -- notably, with a set of drawings that was conceptual at best -- and one can only presume that the design bubbled up from some intuitive place deep in his subconscious.

Utzon later coined the term "additive architecture" to describe a design approach based on the growth patterns of nature, and no doubt he already had such a paradigm in mind when he created the opera house's unforgettable form. It may be this very ambiguity in the architect's intentions that has led to such a rich variety of interpretations -- an architectural Rorschach for everyone who beholds it.

Then we have the even less conventional work of architects such as Frank Gehry, whose later buildings are commonly described as having exploded, collapsed or been wrecked by a tornado. What these descriptions say about the architect's mind probably remain beyond our reach, but what they say about us is no less interesting.

Read Arrol Gellner's blog at arrolgellner.blogspot.com, or follow him on Twitter: @ArrolGellner.

Contact Arrol Gellner:
Email	Letter to the Editor

Replacing a toilet fill valve

By Inman News Feed — Fri, 18 May 2012 09:36:27 PDT

New product makes adjustments easier, eliminates corrosion concerns
New product makes adjustments easier, eliminates corrosion concerns

Paul Bianchina
Inman News®

Do you have an older toilet that annoys you with the sound of water trickling after you flush, long after it should have shut off?

Have you tried adjusting and bending that big, frustrating, slimy rod and ball thingy and still can't get things right?

Then it's probably time for a new valve, and luckily this should prove to be one of the easier and less expensive projects on your to-do list.

Out with the old

Inside your toilet tank is a device called a ball cock. It's a vertical valve on the left side of the tank, and it passes through a hole in the bottom of the tank itself, where it attaches to the incoming water line. When the toilet is flushed, water in the tank is released into the bowl to flush away waste, and the ball cock valve opens, allowing water to enter and refill the tank. A small tube coming out of the side of the valve enters a vertical tube called an overflow pipe, which is attached to the bowl. That allows a certain amount of the incoming water from the ball cock to be diverted into the bowl as well.

Older toilets utilize a float ball attached to a long arm, which floats on the surface of the water in the tank. As the water level rises, so does the float, until it reaches a preset level and shuts off the incoming water. Those float arms are notoriously cranky to adjust, and the older style of ball cock valves can get gummed up with sediment and other gunk over the years, leading to noisy operation and, worse yet, water-wasting leakage into the bowl because the valve never truly shuts itself off.

The solution is to replace the old-style ball cock valve with a newer one, such as Fluidmaster's 400A Fill Valve. Fluidmaster has replaced the float ball and arm with a float cup that rides up and down on the valve itself, so it's a lot easier to adjust. It's also all plastic, so corrosion isn't a factor, and it tends to maintain itself in the position where you set it.

Replacement is very straightforward

I recently had to replace a couple of these at my own house. The box said it was a 15-minute operation. The first one took a bit longer than that, due to a leaky water line that wasn't the valve's fault, and I got the second one changed in less than 10 minutes, so the average was right on. I will say that their instructions are some of the best I've seen.

To begin, shut the water to the toilet, then flush it to get most of the water out of the tank. After that, it's bail-out time. Use a small can or whatever's handy to scoop out as much remaining water as possible, then sop up what's left with a sponge or a towel. It doesn't need to be bone dry.

Now, unscrew the water line where it attaches to the bottom of the old ball cock (below the tank, on the left side), then loosen the big nut that holds the old ball cock in place. Take care not to damage the porcelain tank – advice that holds true throughout this process. Remove the old ball cock and discard it.

There are some parts packed in the Fluidmaster kit that you need to separate from one another; the instructions clearly explain how. One of those parts is a rubber washer, which you need to place over the end of the new valve before placing the valve temporarily into the hole in the tank.

Now comes a simple adjustment. On the side of the valve is a mark labeled "C.L.," which stands for critical level. Basically, it's a guide to help you with where the water level needs to be so that the valve operates correctly. As the instructions explain, you're going to want the C.L. mark to be at least 1 inch above the top of the overflow pipe. To achieve that, simply wind the adjustable valve stem clockwise or counterclockwise into the valve body, then measure from the overflow pipe to the mark until you have the measurement you want (in the "tools needed" part of the instructions, they neglect to mention you should also have a ruler or a tape measure, but that's no big deal).

Once you have the dimensions correct, you can install the valve. Hold it in place so that the refill tube outlet is facing the overflow pipe and the float cup isn't contacting the side of the tank anywhere, then press down to seat the washer and secure the valve in place with the provided lock nut. You're instructed not to use tools on the lock nut, and that's good advice; hand pressure is enough to get a watertight seal against the washer, and anything more risks cracking the tank.

Now, reconnect your water line to the bottom of the new valve. The instructions clearly cover four different types of water lines. New washers are provided where needed.

Next, connect the new refill tube between the valve and the overflow pipe, using the angle adapter fitting and clip that's provided in the kit; you may need to trim the tube to the proper length so that it doesn't kink, which is easily done with a pair of scissors.

To clear the valve of any possible sediment, you need to remove the cap from the top of the valve and flush it out. This is done by simply rotating the cap 1/8 of a turn counterclockwise, and it will unsnap and pop right off. Place a can or other container over the top of the valve to contain the water, then slowly turn the water valve back on. Water will shoot out of the top of the valve, clearing out any sediment. Repeat this a couple of times, then leave the water valve off.

Replace the cap on the valve by pressing down and turning 1/8 turn clockwise until it snaps back in place, then turn the water valve back on. The tank will now fill with water. Watch the level of the water in the tank. Your toilet should have a mark inside the tank indicating the ideal water level. If it doesn't, you'll want to shoot for a level that's about 1/2 inch to 1 inch below the top of the overflow pipe. If the water level is too high or too low, simply turn the adjustment rod on the side of the valve to raise or lower the float cup, which will change the water level; you may need to flush the toilet a couple of times to finalize the adjustments.

Fluidmaster valves and other replacement toilet parts can be found at home centers, hardware stores and a variety of other retailers, as well as online through retailers such as Amazon.com.

Remodeling and repair questions? Email Paul at paulbianchina@inman.com. All product reviews are based on the author's actual testing of free review samples provided by the manufacturers.

Contact Paul Bianchina:
Email	Letter to the Editor

Landlord may object to tenant subletting to tourists

By Inman News Feed — Fri, 18 May 2012 09:56:10 PDT

Rent it Right
Rent it Right

Janet Portman
Inman News®

Q: I rent an apartment in a great location in a tourist-heavy city. Frequently, big events come to town, like sports events, conventions and festivals, which attract many visitors, some of whom would prefer to live in an apartment rather than a hotel. I'm planning on moving in with a friend for a few weeks next summer and renting my place to these tourists. I can earn a lot of money from this. Besides a risk to my belongings, is there any downside to this plan? --Randy S.

A: Before placing your ads, you might take a look at your lease. If it's even half-way comprehensive, it will have a "no subletting without consent" clause. That clause is intended to prevent tenants from turning their rental over to someone else for a period of time (or renting out part of it while they still live there) without the landlord's consent. Violating the clause is typically grounds for termination and (if necessary) eviction.

Landlords regularly use these clauses for two reasons: First, they don't want people living on their properties whom they haven't screened. For example, they want to make sure residents come with solid references and a history of good tenant behavior. If someone begins living on the property whom they haven't screened, they will worry about damage, noise and more.

Second, landlords believe that they alone have the right to make money from their property, not tenants. The thought that a tenant will turn around and make money off their properties makes them livid. When tenants propose a sublet that nets the tenant some money, many landlords will refuse it outright (or, borrowing a page from the commercial landlord's playbook, insist that any profit be split evenly with the landlord).

If your lease has such a clause, and you have a hands-on landlord who is likely to notice that you're not in residence, you risk a termination notice for violating the clause. Even if your landlord is far away or obtuse, don't put it past other tenants to complain if your subtenants, unmindful of the neighbors' expectation of peace and quiet, create disturbances as they come and go at late hours (after all, they're on vacation).

The wholesale subletting of rent-controlled apartments in San Francisco has recently become a hot issue. News reports speak of tenants who enjoy low rents, thanks to continuous residence in a rent-controlled building, who rent their units almost continuously to tourists or long-term business visitors. In a rare showing of agreement, tenant advocates and landlords are on the same side of this issue. Tenants don't like that these units are being used by visitors and are not available to genuine tenants; and landlords hate not only the profits that their tenants are making, but that such behavior deters these tenants from moving out (only at move-out can the landlord raise the rent to market rates).

In addition, zoning laws may be violated when these rentals operate in an area not zoned for commercial use.

Landlords who are concerned that their units are being run as businesses by their tenants need to make sure that their leases include a subletting clause that forbids such practices. After that, it's up to the landlord to be vigilant (but not nosey) as to who is living on the property.

Q: One of our tenants was injured when an ungrounded outlet in the kitchen shorted out as she was using an appliance. Our building should have had grounded plugs, but we didn't know they were ungrounded. Are we responsible for her injuries? --Barb and Bill M.

A: When tenants are injured on rental property, usually the question for the landlord is this: In this situation, was the landlord negligent? And if so, did this negligence cause the accident; and was the tenant hurt as a result?

For example, a tenant who slips on wet stairs must prove that the landlord was careless -- for example, by failing to fix a leaky hose that kept the stairs wet. Once carelessness is proved, it's only a matter of whether that carelessness caused the injury, and whether the tenant was, in fact, injured.

Sometimes lawmakers identify certain acts (or inactions) that are so important that the question of negligence is bypassed.

For instance, landlords everywhere must adequately fence swimming pools to keep children from wandering in unattended. If the fence is missing or inadequate, and a child is injured in the pool, the jury won't be asked to decide whether the landlord was negligent in failing to provide or maintain the fence. Instead, the absence of an adequate fence will be deemed negligent, period. The only questions for the jury are whether the lack of a fence caused the injury, and whether the child was in fact hurt.

These laws are called "negligence per se" laws, which means that failure to follow the law is conclusive proof of negligence. Your state legislature may have written its "grounded plug" law in this manner, saying right in the statute that a landlord's failure to provide required grounded plugs is negligence as a matter of law. If that's the case, and your tenant was injured because of the failure to ground the appliance, you may well be liable. A possible defense might be the tenant's own carelessness -- if she knew the plug was ungrounded and unsafe, but used it anyway, that might defeat (or reduce) her ability to look to you for her damages.

Contact Janet Portman:
Email	Letter to the Editor

Why bad roofs make lenders cringe

By Inman News Feed — Thu, 17 May 2012 07:48:38 PDT

REThink Real Estate
REThink Real Estate

Tara-Nicholle Nelson
Inman News®

Q: Why is it so difficult to find a mortgage company that will finance a house that may need a roof?

A: If you have done any house hunting in the universe of foreclosed properties, and compared them -- their condition, that is -- with the nonforeclosed homes in the same area, one thing becomes immediately clear: On average, foreclosures are in worse shape. And that makes them difficult to sell without a steep discount.

Lenders extend financing on guidelines that have the end in mind: They both want to avoid foreclosures, and want to minimize their own exposure in the event a loan does end up in default.

So, if you keep running into scenarios where you're looking at homes with bad roofs and struggling to find financing to buy one of them, keep these things in mind:

1. The federal government has health and safety guidelines for roofing that apply to many home purchases. Here's a little bit of the backstory on how lending works these days: Well over 90 percent of the mortgages originated on today's market are backed by the federal government. You might think that you're immune from kooky condition guidelines if you opted not to get an FHA or other "federal" loan (i.e., VA, USDA, etc.), but the truth is that most "conventional" loans will eventually be sold by the mortgage lender to some federal agency, so the lender can put that money back to use making more loans. And all these federal agencies impose guidelines on the condition of the homes that secure mortgages they buy.

Of course, FHA guidelines are notorious for being the most stringent when it comes to property condition, and roofs in particular, so if you're planning on using an FHA loan and you keep running into this issue, talk with your lender about whether you might be eligible for another type of loan without such strict standards, or even an FHA 203(k) rehabilitation loan, which is specifically intended to fund the purchase of homes that need work.

FYI, here are the Department of Housing and Urban Development (HUD) guidelines for roofing that apply to all FHA loans; these are generally intended to protect the health and safety of residents of FHA funded homes:

Roofs: The covering must prevent moisture from entering and provide reasonable future utility, durability and economy of maintenance. The appraiser must visually examine the roof to determine whether deficiencies present a health and safety hazard or do not allow for reasonable future utility. (4905.1 REV-1, 2-12.)

Life expectancy: The appraiser must exercise sound judgment when evaluating roof condition. The roof should have a remaining physical life of at least two years. If the roof has less than two years of remaining life, then the appraiser must report this condition in the appraisal report.

2. Lenders don't want the repair costs to foul up the financing. First, lenders want to be sure they are not green-lighting a loan where the price is not appropriate, given the condition of the home. Having roofing guidelines that prevent such homes from being financed creates an incentive for sellers to execute the needed repairs in advance, or to allow for a piece of the purchase price to be held in escrow for the repair.

This does double duty, making sure the home is not overpriced and ensuring that the buyer will not have to come up with the cash to make an emergency repair. The lender has reviewed the buyer's financial ability to pay for the home on a month-to-month basis, not his ability to pay for the home and a $6,000 roof when it fails one month. The reality is that such a big, emergency repair bill can be the reason a buyer falls behind on his mortgage, and lenders don't want that.

3. Homes in bad shape are more prone to foreclosure. Time and time again, I've seen homeowners who were so excited about their fixer-upper walk away from it, mid-fix, when: the market takes a turn for the worse; they run out of money; they realize how much more the fixing will cost than they had planned; or they suffer a job loss or other personal problem.

In those cases, not only does a lender end up with a foreclosure on its hands, but it ends up with a half-fixed foreclosure that will be tough for a buyer to get a mortgage on. This is just one more of a meaty list of reasons lenders avoid extending money on homes with bad roofs.

Contact Tara-Nicholle Nelson:
Facebook	Twitter	Email	Letter to the Editor

When do late-payment fees become 'excessive'?

By Inman News Feed — Thu, 17 May 2012 07:29:09 PDT

Tenants shocked by bill nearly equal to monthly rent
Tenants shocked by bill nearly equal to monthly rent

Robert Griswold
Inman News®

Q: My husband and I rent a townhouse that is privately owned. Per the lease that we signed, the rent is due on the first of the month and there is a five-day grace period. The landlord charges us $35 for the first day if we pay on the sixth of the month and $25 each additional day that we are late in paying the rent. Our monthly rental is $810.

I will admit that we have paid our rent late several times due to delays with our payroll. We do pay the late fees. But there have been times that we have paid $1,500 in rent and late charges in a single month. This is killing us, and my question is, could this be deemed excessive?

A: Late fees are very controversial, and many state courts have ruled that excessive late fees are not enforceable. So I caution that the answer to your question could depend on the opinion of courts, but I do feel that the fees being charged by your landlord are excessive.

Of course, charging tenants late fees when they don't pay their rent on time is one of the most effective ways to encourage on-time payments. And I am a strong advocate for timely payments, as most landlords aren't so financially well-off that they don't have a mortgage and expenses to pay for the ownership of the property they rent to you.

So your failure to pay your rent most often creates a real hardship for a landlord. But the late fees should be reasonable and in line with the actual harm caused by the late payment.

If you are late in your rent, then the landlord does have to continue to make his payments without the benefit of your rent money, and he also has to call you or send you legal notices to prompt you to pay. This is a real out-of-pocket cost to your landlord.

The five-day grace period is generous, and the $35 late fee for the first day is not out of line. But the unlimited $25 per each additional day you are late can add up to some serious money very quickly, especially when you consider that your $810 per month rent equates to a daily rental rate of $27 per day or just $2 per day more than the late charge!

Of course, the simplest solution is to just pay your rent on time, but I know that may not always be possible. So when your lease comes up again for renewal, I would suggest that you talk to your landlord and negotiate a more reasonable late charge.

Q: I have been a tenant for many years. I recently moved out of my old apartment and I have just spoken to the managers in regards to my deposit of $1,750, as it has been almost a month without any word from them.

They finally got back to me and said that the cleaning fees and such would total $1,700.

I had hired professionals to deep-clean the carpet and spent hours cleaning myself. I have never been charged so much. I know I can go to small claims court, but that would take me away from work. I am hoping you can suggest some other options. Can you advise me on how to best handle this matter?

A: You certainly are due an explanation of the charges, as a written full accounting along with a check for the small remaining balance of your security deposit should have already been sent to you. At this point, I would start documenting your concerns in writing and send a demand letter seeking a full accounting with copies of receipts and photos or any supporting evidence that the landlord has to justify the $1,700 in deductions from your security deposit.

Remember that the charges should be only for items that are broken or damaged and not for components that would need replacement because of ordinary or expected reasonable wear and tear based on the length of your tenancy.

If all else fails, you can contact your local Better Business Bureau or tenants' rights agency or even local media, as they will sometimes have a consumer reporter. There are also local mediation and alternative dispute resolution (ADR) services in many communities that offer low-cost or even free services.

You will want to present your evidence of the condition of the unit when you moved in versus when you moved out, and the length of your tenancy plus the receipts for the cleaning. If that fails, I still think small claims court would be appropriate based on the amount of the deductions -- unless they can justify the majority of them to the point that it is just not worth your time.

This column on issues confronting tenants and landlords is written by property manager Robert Griswold, author of "Property Management for Dummies" and "Property Management Kit for Dummies" and co-author of "Real Estate Investing for Dummies."

Email your questions to Rental Q&A at rgriswold.inman@retodayradio.com. Questions should be brief and cannot be answered individually.

Contact Robert Griswold:
Email	Letter to the Editor

Home staging on a budget

By Inman News Feed — Wed, 16 May 2012 08:59:36 PDT

Know which items to pack away and when to leave the shower curtain open
Know which items to pack away and when to leave the shower curtain open

Tom Kelly
Inman News®

I mentioned "home staging" to a single dad who asked about selling his home this spring. The rest of the men in the group looked at me as if I were from Mars.

"That's great for the high rollers -- the white wine and brie set," one of them said. "But what about people who serve hamburgers and beer, and not watercress sandwiches?"

Home staging is not reserved for the rich -- or for creative women. In fact, cleaning and clearing clutters are the two primary items on Pam Christensen's Inexpensive Staging Tips list for any market. And, guys, it doesn't take a genius woman to help you through the other tips on the list.

Christensen, founder and owner of Staging for Charisma LLC, said guys often forget that they are selling their space, not their stuff.

"There are some staging tips that apply no matter where you live," said Christensen, a licensed real estate instructor and certified staging trainer. "Some tips apply more if you are living on the East Coast than on the West Coast."

Guys, if you're thinking of selling your house or condo this spring, now is the time to prepare your home for sale. Why now? Well, it's the traditional selling season, which means that in most communities, recorded residence transfers are at a peak during June and July. Most of those sales are actually made 30 to 60 days earlier, and it takes time to complete the transaction. Think about the academic year. Many deals are made when the kids are in school, and moves are made when they get out.

What's the best way to make a deal happen? A fresh coat of paint, inside and outside, will do wonders to make your residence show its best and make buyers want to purchase it. If your home looks tired, prospective buyers either won't make a purchase offer or they will highly discount it to allow for the fix-up costs, especially painting. Most buyers want to purchase a residence in model-home condition, so all they have to do is turn the key in the front door and move in.

"White is out, designer neutrals are in," Christensen said. "So what the heck is a designer neutral? Beige, but if you're not careful, that beautiful beige that looked so fabulous on the brochure could look pink on your wall. Warm beiges like Sherwin Williams Practical Beige and Kilim Beige are some of my favorites."

Christensen's other cheap staging tips:

Curb appeal is not dead: OK, nine times out of 10, the first impression of the home is the Internet, but that doesn't mean that curb appeal is out of vogue. The contrast between the chocolate brown bark and the bright green grass makes a striking first impression.

How to get rid of it: It's time to give away the purple cookie jar that you got from Aunt Mary for your 18th birthday, and anything else that you have been saving just in case you might need it someday. Divide everything into three stacks: The purple cookie jar and other things that you never use go directly to the garage sale or Goodwill. The second stack is the things you use but rarely, or they are seasonal and you won't need them while you are on the market. These are packed and stored. What's left can go back into the closets. Will people really look in the closets? Only if they want to buy the home.

Counter patrol: Small appliances like toasters can go into a cupboard. If you have an espresso machine and a coffee pot, choose which one you use the most and tuck the other away.

Bathroom essentials: For toiletries, buy a plastic tote that can come out in the morning and evening and be easily tucked under the sink during the day. Keep no more than one shampoo, one conditioner and one liquid soap in the tub or shower.

And what about that shower curtain? Open or closed? If you have just invested in a new tile tub surround, leave the shower curtain open to show it off.

Say welcome home: Buy a new, tasteful welcome mat for the front entry. It's best if it says "welcome." Adding a pot of blooming annuals by the front door if there's space also creates a friendly atmosphere.

Mirror, mirror on the wall: Place one in the entry or in one of the main living rooms. Mirrors help buyers see themselves in the home. They also help to make the room look larger and lighter. Check the reflection. Make sure you aren't reflecting a view that is less than attractive.

Less is more: You've heard it before, but it is really true. When staging a room in a home for sale, a few well-placed pieces of furniture are all that's needed to show the room at its best.

Contact Tom Kelly:
Email	Letter to the Editor