Lizette's Real Estate Stuff

Another Day in Kentucky! Look what I get to see while I work...

2007-11-26T22:51:00.000-05:00

Not long after I enjoyed my morning coffee, I loaded up Old Bessie with signs for my new listing. Brrrr....why is it suddenly so cold outside? It feels like a winter day.

I searched in my closet for a much warmer coat. On second thought better grab one with a hood. A pair of work boots might be good to have on hand too.

The frame for my sign had been freshly coated with a dusting of white paint a few hours before as I stood in the morning frost. Now it too got packed in the trunk for an upcoming deposit in some rich Kentucky loam.

Last check to see I had everything I would need to take care of my new seller's vacant house. Extra keys...yes I had 2 more cut yesterday when I had a moment to stop in the hardware store. Supra lock for the door, charged key to open it, copies of the listing to leave for the seller in a kitchen drawer...I think I'm ready to roll!

I point Old Bessie toward Berea and off we go. As I head down the road I can't help but think how gorgeous all the trees along the road are. Eye candy is EVERYWHERE! So....I stopped right in the road and took this picture right through my front windshield cause I don't want to forget this moment. November 15, 2007. Another day and all the wind might carry these leaves away and all I will have is just this memory. Now, you get to see it too.

By the time I get to the house the wind is really whipping me around and I am so glad I brought that heavier coat.I pulled up the FSBO signs and found a great spot for my sign. Put my lock on the front door and tested it, adjusted the thermostat. opened cabinets under the sink in case it gets too cold, noted that the smoke alarms were chirping, then went out back to tidy up the pool area and stashed unneeded items in the storage shed.

Whew....so glad that's completed! Would you believe that by the time I got home some fellow called me about the house? He had driven by my sign. Hmmm..maybe I should have buried St. Joseph while there. You never know what might help!

2007-06-13T17:09:00.000-04:00

Home inspections

Not all inspectors are created equal.
Some are very detail oriented;
Some give you the main trouble spots to keep an eye on.

Inspectors have all gone to school and in Kentucky they must be licensed.
A good inspector will not needlessly alarm buyers when finding small cosmetic flaws. One thing for sure is that there is no perfect home. We can’t expect them to be.

As far as good inspection reports go; Out of all the home inspection reports (75+) for my client’s homes I can only think of one that only had a squeaky garage door discovered(that was it!).

The good inspectors are there to find major structure issues, roof problems, leaky basements, and plumbing or electrical problems that need immediate attention before you move in. Some of the normal wear and tear issues are to be expected in older homes. As we move into a home we all paint, replace older fixtures, update rooms and decorate. Sellers are not into doing all these updates (that’s why they are moving!)

If there are alarming issues on your home inspection they need to be discussed with your sellers and see if they will repair them before closing. Some sellers kindly repair things and others take offense. You never know till you ask. Sellers are emotional about their homes. If you are handy at fixing things don’t let cosmetic repairs be a sticking point. Moving is always stressful so keep that in mind and be kind.

The key is to be flexible and negotiate so everyone is happy.

2007-04-25T11:13:00.000-04:00

ANCIENT WISDOM OF MADISON COUNTY TREES

Last Saturday, while I was out showing horse farms, I was in the middle of a beautiful plot of land out in Boatwright Estates in southern Madison County. This Sycamore tree is majestic and ancient. Just lean against one and feel the wisdom and peacefulness transfer to you! It made me wonder why developers move off all the beautiful trees when grading an area for a subdivision.

I will be listing this today and it includes 6 tracts that are 10 acres or more for mini horse farms. I know one couple that bought one just for the sunset factor. I went out there with them right before they bought it and we enjoyed an incredible sunset overlooking the gently rolling hills and trees. I can just picture how a home would look with a black plank fence and a horse or two in the backyard. You just can't find that type of land here anymore. Especially one that has been developed for such a purpose. I took this picture of the tree that is in one of the lots. I would have loved to climb this when I was younger! Being a tree-house tomboy I can appreciate the land and trees.

I read today that if builders took care and stayed 40 foot from the tree it will not injure the roots. Tree damage usually doesn't manifest itself until one to five years after the initial abuse. Most builders won't do it, however, because it could cost up to $10,000 to move the dirt off site and bring it back.

Anyway, this tree is for sale along with 10 acres. I'll post the listing tomorrow.

2007-01-28T22:22:00.000-05:00

HOW TO GET A BUYER TO BUY YOUR HOME

The past few years have been great to get houses sold for a good price. There were even multiple offers everywhere. What I noticed overall was just HOW houses sold faster. It wasn't because: the agent was brilliant, the marketing was spot on, open houses were held every weekend or even that there was more than one prospective buyer. What sold the house fast was that sellers took out unnecessary stuff and added paint then cleaned it up!

For most of you this is just everyday stuff. I am cleaning ZEN kind of person and I just like my house clean and fresh. I do have a little dog with mountains of hair but you would never know it when you come inside. I enjoy cleaning. Some people hate it!Many houses I listed that sold lighting fast had pro-active sellers. They had done their homework by checking out new homes to see how they could compete... and it worked!

The number one pet peeve of buyers when looking at homes was wallpaper. When you look at new homes it just isn't there. Not even a border.If you want to get your house sold take out every inch of wallpaper or border. I know you thought it matched your decor, but the next buyer will probably hate it. Not only that, but he will not even want to take the time to take it off the wall. This is when he will roll his eyes and look at his agent and say..."Next". Borders and wallpaper date your home and designers rarely suggest it. Get to work and take it down.

The next in line is paint color. Again take a look at some new homes and pick out neutral earth tone colors. Stay away from pinks, purples, blues, and tutti-frutti tones. Freshen your baseboards by cleaning them and paint. Doors too if needed. Most times all the trim just needs cleaning. You know it's the one thing you never do!

Another peeve is knick-knacks and collections. Keep in mind at all times...you want to move! Pack all that stuff like dolls, angels, toys, religious icons, stuffed animals, glass figurines, deer antlers, gun racks, china, family pictures, stacks of books and magazines, pill bottles, etc. The goal is to make surfaces look a little empty. Don't leave placemats and china on the table either. Replace it with a nice centerpiece like a bowl of fresh green apples or vase of cut flowers. Take off appliances (Blenders,can openers, etc.) rarely used and old towels and sponges on kitchen counters and sink. Survey every room and pack up unnecessary objects. Less is more!

I started to put this at number one but it is SMELL. Your house needs to smell nice when buyers arrive. It is the first impression they will have. I'm not talking about air freshener (that will turn them off fast too!). It should be a "CLEAN" smell. Almost no smell at all. Get carpets and floors professionally cleaned to start. Clean dead bugs and cobwebs out of windows and blinds, dust off ceiling fans and light fixtures.

ANIMALS - Take them with you when the house is being shown. Cute pets in the house or yard do not help you sell your home. Litter boxes are a BIG YUCK! Stick it out in the garage on your way to the car. Put away dirty dog bowls. Some people will not even look at a house that has had dogs or cats. I don't blame them. To sell a home with pets you will have to work harder than the average homeowner just to keep it clean and hair picked up. Have a friend who doesn't have pets come by to take a front door sniff test. Take it from there on how much cleaning will get rid of the odor.

O.K. that’s a BIG start on what can get your house sold. Look at it like it is a part time job you have taken to make more money. You won't have to lower your asking price. Really, I'm not kidding. I want more than anything to see your home sell fast. Sometimes it's hard to say these things to clients. That's why I wrote it all down here...so I don't have to hurt your feelings. I spend long hours taking clients through house after house and see them turn their nose up at all this stuff. Bottom line is you are ready to move, start packing it up and concentrate on the prize...a new home!

DON'T START LOOKING FOR A HOME BEFORE YOU READ THIS!

2006-12-21T22:32:00.000-05:00

1.Find a REALTOR whom you can relate to. Buying a home is an emotional commitment. It's critical that the agent you choose is both skilled and a good fit with your personality. Have your own agent show you homes, not the listing agent. Call your agent if you see a home you want to tour. Your agent will make all the appointments and represent YOU in the offer. The listing agent represents the seller and cannot disclose all that you will need to know about the property & the seller. Find an agent that makes his or her career full time in real estate. Agents usually know one another so if you are unhappy working with an agent and want to change to another please let them know that you will be doing so. This alleviates miscommunications and it's just the right thing to do. An agent will work hard for you if you are loyal.

2. The right house is waiting for you. Sometimes deals just don't work out. You will know as soon as you walk into the perfect home. Everything will fall into place perfectly if it is meant to be. If not...keep looking and stay open to new ideas. If it feels right then make an offer...don't procrastinate.

3. Commission is paid by the sellers. This is how your agent gets paid. Basically, the seller has agreed with his listing agent an amount to pay the buyer's agent at closing. Your agent may show you homes for a long time or it might only be a few homes. All negotiated commission is divided among the agents at closing. The buyer will not have to pay for this.

4. Don't ask for too many opinions from friends and family. It's natural to want reassurance for a big decision, but too many ideas will make it harder to make a decision. If Grandpa is not going to live in the house he isn't going to like all those steep stairs, pool, etc. Negative opinions can spoil all your excitement.

5. Accept that no house is perfect. Focus in on the things that are most important to you and let the minor ones go.

6. Don't try to be a killer negotiator. Trying to "win" by getting an extra-low price may lose you the home you love. Angry sellers do not try to be helpful if you need special considerations later before closing like extra time to get the financing right. Don't be stubborn over the small stuff.

7. Get approved for a mortgage before you find a home. A good lender will see your credit report and offer help in disputing items that need to be removed. This will raise your score and possibly get you a lower interest rate. Not all lenders are skilled in this. Same as with your agent the lender needs to fit with your personality and return your calls promptly. The best ones stay in close contact with your agent also. You can bet that your agent has a good idea of the best lenders to work with to get a successful closing. It can all fall apart by closing time if you don't have the right lender.

8.Factor in maintenance and repair costs in your post-home buying budget. Even in a new home there will be some costs. Homes are not perfect and even though you have had many repairs made after a home inspection sellers are not going to patch every hole in the walls and leave it
spotless. You may have to shampoo carpet and upgrade fixtures to your liking. It's all a part of buying a home.

2006-10-15T10:32:00.000-04:00

STEP ON IT!

Rug Rules

Rugs aren’t cheap and can have a big design impact in a room,

so look for high-quality materials and fabrication.

A good rug can be a great investment.

The range of rug designs is so diverse.

For rug decorating tips:

Going contemporary? Choose a rug without fringe.

Want a focal point? A rug with a bordered design can draw attention down to the floor and help unify your furnishings. In a small room, a rug with strong colors and pattern will create a focal point.

Totally traditional? A rug with an overall pattern will do the trick.

Very versatile? A rug with an open field design—with or without border—can be traditional or contemporary.

Thinking low key? Lighter colors and a smaller, overall pattern is less noticeable and may blend in more with the furnishings.

Want to relax? Because it’s less busy than a smaller pattern, a large-scale design can have a calming effect. A larger pattern with low contrast will fit all decors.

Edging toward eclectic? Many styles of rugs, even those that at first glance seem boldly contemporary, will create a stunning and dramatic space when paired with antiques or "ethnic" furnishings and accessories. Mix it up and give it a try.

Weary of wall-to-wall? Use a smaller rug on top as a focal point, using the carpet as the background.

2006-10-01T08:50:00.000-04:00

California Homes are Solid Gold?

Pity the poor, modern-day Jed Clampett, exchanging the simple and inexpensive life of the Ozarks

for the glitz, glamor and prices

of Beverly Hills.

A typical middle-class house in the Southern California city now costs more than 10 times what a similar place sells for near Clampett's old stomping grounds, Fort Smith, Ark. That's according to the Price Comparison Index released Wednesday.

The index provides apples-to-apples comparisons of 342 U.S. markets, looking at the cost of a four-bedroom, two-and-a-half bath, 2,200 square foot house with a two-car garage in a nice, middle-class neighborhood. This year, that home in Beverly Hills costs $1.8 million; in Minot, N.D. it's just $132,333 - a difference of nearly 14 times from the most expensive to least expensive market. Each year the difference between the most and least expensive city is growing.

Last year La Jolla, Calif. was the most expensive U.S. city, but prices dropped about 6 percent in the past 12 months to $1.76 million. That was still good enough for third place. Santa Monica, Calif. just barely edged it out. Among the major omissions from the list are Manhattan and Brooklyn in New York City. The number of single-family homes that sell in Manhattan is too low to calculate for the purposes of the index.

Joining Minot on the least expensive list are last year's winner, Killeen, Texas, at $140,310, and Arlington, Texas, $140,975. Killeen prices rose 7.3 percent while Minot's fell by 0.7 percent. Topeka, Kan. at $148,050, ranks No. 5 on the least expensive list. Almost all of the costliest markets in the country can be found on the East and West Coasts. California had nine of the top 10 most expensive markets with Greenwich, Connecticut the lone exception. California is where people want to be. Where there's good climate, mountains and the ocean.

Other states over-represented on the most expensive list were Connecticut, Virginia, Maryland, Massachusetts, New Jersey, Florida and Hawaii. Chicago, where such a house costs about $916,667, is the most expensive inland city.

In the international market, Milan, Italy came in as the most expensive foreign city. A house there costs about the same as in Beverly Hills.

Texas has more inexpensive places than any other state; it placed three of its cities in the top 10 for affordability. In no Texas city does the average house of this type cost more than $300,000. Dallas, at $288,278, is the most expensive.

Michigan and Ohio also have many inexpensive housing markets. The costliest city in Ohio, Columbus, averages $251,364 for this kind of house and in Ann Arbor, Michigan, it goes for $324,500. In Canton, Ohio, though, that home can be bought for $148,333 and in Grayling, Michigan it would cost $144,250.

One significant finding is how many markets out there are still very affordable, even after the outsized price increases of recent years. These are more expensive than average homes, yet 29 percent of the markets reported on indicated that their surveyed home was below the National Association of Realtors national median home price of $225,000. About 47 percent of the markets surveyed averaged less than $300,000 for these very nice houses."

2006-08-20T09:04:00.000-04:00

Does Prepaying a Mortgage Make Sense?
Or not?

Repaying a mortgage has a financial effect much like buying a bond -- with your return being the after-tax interest cost you avoid paying on the mortgage, instead of the after-tax interest you receive from a bond.

Example: If you are in the 30% tax bracket and use $1,000 to...Prepay $1,000 on a 6% mortgage, you will avoid having to pay $42 after tax annually ($60 x 70%) on the $1,000 for the remaining term of the mortgage. So your return is $42 a year.Purchase a $1,000 taxable bond paying 6% annually, you will receive $42 of interest annually after tax ($60 x 70%) for the bond's term. So your return is the same $42 a year.

Before prepaying a mortgage consider...If you have other, higher-cost debt outstanding -- such as on credit cards or consumer loans that accrue nondeductible interest -- you'll save more by paying them first.

If your choice is between using money to prepay a mortgage and making another investment with it, realize that prepaying a mortgage provides a secure return while most other investments are riskier. To justify investing in the riskier investment, you should expect a significantly higher return from it than from a mortgage prepayment.

After-tax return is what matters, so contributions to tax-favored retirement accounts may be better than prepaying a mortgage due to the various tax advantages they can offer.
Prepayment risk. There is downside to prepaying a mortgage in that it costs you liquidity -- you lose use of the cash used to prepay the loan, which you could otherwise keep in a savings account or liquid investments.

If it later turns out that you need that cash, and interest rates have risen from today's low level in the meantime, you may have to take out a new loan at a higher rate to get it.

And you may pay more taxes, too -- because only $100,000 of home-equity borrowing qualifies for the mortgage interest deduction. Thus, if you prepay your mortgage, the maximum amount of deductible borrowing against your home will be reduced.

Example: Your home is worth $225,000 and your outstanding acquisition loan (mortgage) is $100,000. If a need to raise cash arises, you can use a home-equity loan to borrow an additional $100,000 -- for a total (with your mortgage) of $200,000 against your home, which will produce deductible mortgage interest.

But if you prepay the mortgage balance down to only $50,000, then no more than $150,000 of total borrowing against the home ($50,000 mortgage plus $100,000 home equity) will produce deductible mortgage interest.

2006-08-15T16:37:00.000-04:00

Want a Custom Home?

Where Does the Money Go?

Just for fun, let’s say you buy a new home.

The purchase price is $226,680.

Now, let’s explore how much you paid for what.

Keep in mind, however, that the numbers are from the National Association of Home Builders and are based on nation-wide averages.

Of course, you paid for the lot. In our example, the raw land cost $30,082.

But the builder can’t build on a raw lot.

Just the cost of processing the necessary approvals adds $1,799 to the price of the land.

Then trees have to be removed, the lot leveled and other site preparation completed;

that’s where another $4,075 went.

Are we ready to build? Not yet.

You still need paving ($4,859); water and sewer lines ($4,593) and perhaps some erosion and sediment control ($1,076). And, of course, you need an environmental assessment ($748).

Other costs associated with site preparation include the water-electrical hookup ($1,260), financing ($2,129), tree preservation and planting ($762), wetland preservation ($235), bonding and escrow fees ($349) plus $1,549 in other fees and costs.

Now you’ve invested $53,516, and you are ready to begin construction.

In case you are keeping tabs, you’ve spent 23.6 percent of your budget so far.

Of the total purchase price, 54.8 percent or $124,276 is the total construction cost.
Of course, you need a building permit ($1,108), and you may have to pay impact fees ($1,182). Let’s not forget the water and sewer inspection ($1,207).

Steel for the foundation will run about $1,406.

That takes care of most of the small stuff.

Now we’re ready to spend some real money.
Excavation, foundation and backfilling will run you an average of $11,952

(9.6 percent of total construction costs).

The biggest expense in your new home construction is for framing, trusses and sheathing.

These will set you back some $25,052 or 20.2 percent of the total.

Budget nearly 6 percent ($7,318) for plumbing.

Drywall will run an average of $6,807.

Cabinets and countertops are another $6,167. Tile and carpeting averages $5,971.

Siding adds $5,350 while heating and air conditioning average $5,110.

Other construction cost averages look like this:

Windows — $4,769
Exterior door — $1,415
Interior doors and hardware — $2,322
Stairs — $558
Roof shingles — $3,226
Gutters and downspouts — $785
Electrical wiring — $4,669
Lighting fixtures — $1,292
Insulation — $1,793
Painting — $4,734
Appliances — $1,675
Trim materials — $3,861
Landscaping — $2,250
Wood deck or patio — $821
Asphalt driveway — $1,873
Other costs — $9,603

Can you move in now? Not quite.

There are financing costs ($4,266);

overhead and general expenses of $12,955;

marketing expenses ($3,180);

and the sales commission ($7,650).
Last, but not least, the builder’s profit has to be paid.

The national average is 9.2 percent of the total purchase price.

In this example, that’s $20,837.
Now you can move in and enjoy your new home.

And don’t fret the cost;

after all, you have 30 years to pay for it.

2006-08-14T08:15:00.000-04:00

Hot weather tips for lawns

Raise mowing height. This promotes deeper root growth.

Mow off no more than a third of the grass blade.

Keep mower blades sharp. Dull blades injure grass and cause stress.

Water in early morning or at night to minimize evaporation.

Water deeply but infrequently to promote root growth.

About 3/4 inch per week is a rule of thumb, depending on soil type.

Measure with rain gauges or shallow pans.Evaluate and make changes.

If you’re tired of battling drought, let your lawn go dormant.

The crowns should stay alive if you give them an inch

or so of water every two or three weeks.

(Don’t do this with lawns less than two years old).

Warm-season grasses such as zoysia grass

and Bermuda grass don’t go dormant,

but handle drought fairly well,

as do native grasses such as buffalo grass and blue grama.

2006-07-26T22:40:00.000-04:00

What is a Reverse Mortgage?

Many retirees are feeling a pinch financially because the fixed-income assets they rely on are producing less income than anticipated while routine expenses, particularly health care, are rising. Reverse mortgages allow older homeowners to tap into accumulated equity for additional income. Borrowers generally use the proceeds of a reverse mortgage to pay off debt or purchase something to enhance their lifestyle, such as a recreational vehicle.

How They Work:

A reverse mortgage is the opposite of a regular, or "forward," mortgage. Ordinarily, a borrower gets a mortgage to buy or refinance a property. The lender advances funds to the seller at closing, and the borrower pays the accrued interest on the borrowed amount at the beginning of each month. Most mortgage loans are amortizing, so each payment includes repayment of some of the principal, causing the accrued interest to decrease over time. At the end of the loan term, the entire principal has been repaid.
With a reverse mortgage, the borrower either receives the proceeds as a lump sum payment at closing or arranges equal monthly payments over the loan term. With each disbursement and accrued interest, the principal balance of the loan increases. The borrower makes no payments during the loan term and, in fact, may pay all origination expenses from loan proceeds. So the reverse mortgage is a mirror image of a forward mortgage: the borrower receives - rather than makes - monthly payments, and the debt increases rather than decreases over the term.

Because these loans are particularly appealing to older homeowners who have substantial equity in their homes, a reverse mortgage might be defined as "the bank pays and granny stays."
The term of a reverse mortgage is indefinite. The loan comes due when the borrower no longer needs the home as a residence. In most cases, this is when the borrower dies, chooses to move or enters a health care facility on more than a temporary basis. The loan is fully repaid when the borrower sells the home. It is a nonrecourse loan, meaning that the lender may take the property pledged as collateral to satisfy a debt but may not take any other assets, no matter how large the loan balance becomes.

A borrower cannot be foreclosed upon for missing a payment, as there are no payments, per se. However, it is possible to default on a reverse mortgage contract and consequently precipitate the sale of the home. This could occur if the borrower commits fraud related to the loan (by providing false information to get the loan, for example), fails to keep the home in good repair, fails to pay taxes assessed against the home, fails to insure the home or creates a lien with higher priority than the reverse mortgage (by failing to pay a repairman who then creates a vendor's lien, for example). In any of these cases, the loan would become due immediately. The homeowner has the option to repay the balance of the loan or let the lender sell the home to satisfy the debt.

Strangely enough, a reverse mortgage can be used to buy a home. Fannie Mae's HomeKeeper for Purchase program allows a person over the age of 62 to purchase a home financed with a reverse mortgage. The purchase may require a substantial cash down payment, but there are no monthly mortgage payments for as long as the home-owner remains in the house. Check lenders or housing counselors to see if this product is available in your area.

2006-07-01T12:57:00.000-04:00

Clever Ways to Get Rid of Garden Pests

Once your plants become established outdoors, it won't be long before critters invade your garden. Whether it's beetles feasting on your flowers or deer devouring the tomato plants, here's how to get rid of pests without resorting to dangerous poisons...

BUGS

Aphids. These tiny, green-gray bugs can suck the life from vegetables, flowers and tree leaves. They usually travel in large swarms so, despite their small size, they can devastate a garden.Aphids are repelled by the scent of citrus rind. Combine one tablespoon of freshly grated citrus rind with one pint of boiling water, steep overnight, strain the mixture through a coffee filter, then pour it into a spray bottle. Add three drops of dishwashing liquid, and spray affected plants and those nearby.If that doesn't do it, buy an insecticidal soap at a garden store. Test it on one or two plants -- insecticidal soaps may do as much damage as aphids. If the sprayed plants show signs of leaf browning, curling or spotting within the next three days, don't use the soap. Otherwise, spray aphid-affected plants every five to seven days as long as the problem persists. Be sure to spray the undersides of leaves as well as the tops.

Japanese beetles. These shiny, half-inch-long copper-colored beetles with green and white markings are a familiar but unwelcome sight to gardeners in the eastern US. Japanese beetles are particularly fond of rosebushes and grape and raspberry plants, but they'll eat virtually any plant.To fight back, put soapy water in a wide bowl and hold it under the branches of beetle-affected plants. Gently shake the branches. Most of the beetles will drop into the bowl and drown.A long-term solution is to apply milky spore disease powder -- available at garden stores -- to your lawn near your garden as directed on the label. In two to five years, the disease will take hold, killing beetle grubs in the soil. The disease is harmless to humans, pets and beneficial insects.

Slugs and snails. These pests eat holes through broad-leaf plants. To limit damage, place a few empty tuna or cat food cans in the soil up to their brims. Then pour beer into them. Slugs and snails are attracted to beer and drown in the cans. Use long-handled tweezers to remove the dead pests, or dump the contents -- beer and all -- on your compost pile. Then add more beer to the cans. Install beer traps in spring before slugs and snails have a chance to reproduce.Also put a few boards on the ground in your garden. Slugs and snails love the moist shade underneath. Every day or two, pick up the boards and scrape the collected critters into a pail of soapy water. Remove the boards in autumn so that slugs and snails can't seek shelter there during cold weather.Helpful: You will substantially reduce your garden's slug and snail population if you water your garden in the morning rather than the afternoon. That way, the soil will be dry by night, when these creatures are active, robbing them of the moisture they need to survive.

ANIMALS

Deer. Deer are naturally mistrustful of certain scents. You can hang cheesecloth bags of human hair (hair is available at salons and barber shops) around your garden. Dirty socks or bags of soap also may do the trick.Organic deer-repellent sprays, such as Deer Away Deer Repellent and Hinder Deer, have odors that are offensive to deer but not to humans. You can expect to spend $25 and up per gallon at a garden store. Odor-based solutions such as these will not stop all deer, but they can cut plant loss in your garden by 30% to 50%.The only way to stop most deer is with an electric fence. Expect to spend several hundred dollars at a home or garden store for a fence kit large enough to protect a 50-by-50-foot garden. To keep deer from jumping over your fence, smear peanut butter on aluminum foil tabs and attach them to the fence (always turn off the power before touching the fence). Deer that lick the peanut butter will receive a small shock and learn that your garden is best avoided. An electric fence is not an option for households with young children. You also can switch to the following plants that deer don't like -- or create a living fence of these plants around your yard...

Flowers: Begonias, daffodils, foxglove, globe thistle, iris, lavender, marigolds, meadow saffron, peony, scented geraniums, snapdragons, stars of Persia, sweet alyssum, strawflowers, yarrow zinnias.

Trees and bushes: American holly, boxwoods, Caucasian daphne, Sawara false cypress, Japanese pieris, northern red oak, pine, red osier dogwood, rugosa rose, spruce.

Rabbits. Rabbits can ravage gardens, consuming everything from vegetables to seedlings. If rabbits are the culprits, you'll find hard, pea-sized dark brown droppings in neat piles.You can try scaring rabbits away with fake snakes. Cut an old garden hose into serpentlike lengths, and place the pieces throughout your garden.If that doesn't work, another way to protect your garden is to construct a two- to three-foot-high chicken wire fence around it. The fence must extend at least six inches beneath the ground so rabbits can't burrow under it.

Voles. These tiny rodents can consume close to their body weight in tubers and bulbs each day as they tunnel through your garden.When you plant bulbs, arrange a handful of sharp crushed gravel around them in the holes to keep voles away. Remove wood chips and mulch from the vicinity of young trees and shrubs in autumn so that voles have less cover during cold weather, when they eat mainly tree roots.Gardeners with serious vole problems can plant their crops in wooden frames with quarter-inch or smaller wire mesh stapled to the bottom (frames are available at garden stores). The mesh allows roots to grow out but prevents voles from tunneling in. Or grow daffodils, one of the few garden bulbs that voles (and squirrels) won't eat.

2006-05-22T10:41:00.000-04:00

Hidden Treasure:

Refinishing Metal Bed Frames

After the moving costs, closing costs, and the first mortgage payment, you may not have extra money for decorating, but a simple -- and cheap -- do-it-yourself can be change your old bed frame to new.

You can find old metal bed frames at garage sales, antique shops, and even in newspaper ads -- and usually pretty cheaply. The only problem, many have been painted hideous colors of yesteryear, or are in states of rusty disrepair.
But refinishing an old frame with a new coat of paint is really pretty simple, and inexpensive. All the supplies you'll need you can find at your local home improvement store for about $20, enough to redo any sized bedframe.

You'll need:

Light sandpaper (rusty metal will take a larger grade paper)
1 quart oil-based paint (glossy will leave the best finish)
2" oil paintbrush
Dropcloth
Ventilated room/garage
Empty plastic container (juice bottle with top cut off works nicely)
Paint thinner
Paint stirrer (usually free when you buy the paint)
Flat bladed screwdriver

First, make sure that you work in a well-ventilated area -- such as outside or in an garage with the doors and windows open. Fumes from paints and paint thinners can be dangerous if the products are not used correctly.

Start by wiping down the metal with a dry, clean rag. Remove any dirt you find. If the frame is especially dirty you may need to actually soap, scrub, and rinse the frame and then let it dry completely.

Next take your light sandpaper and rub the entire frame. Every area that you need to paint needs to be rubbed. Why do you need to use sandpaper? The paint that you will be using needs a readied and "rough" surface to adhere to. Just as you need to scrape a house before painting, you need to sand a frame.
Lay a drop cloth down under the frame. You'll want the bedframe in an upright position. An easy way to accomplish this is to lean the frame against two full cardboard boxes, but any heavy item you don't mind getting paint on will work.
Get out the screwdriver and work your way around the top of the can, leveraging the lid open. Stir. Now you're ready to paint!

Oil based paint seems to cover easily, so don't load the paintbrush up with paint, rather dip on a small amount and see how it will cover. If you need more -- go for it. But the less is more theory will eliminate drips. Work your way from the top of the frame down, so you can smooth out and drips that occur. Do the front of the frame, let it dry (for several hours), and then carefully turn it around to paint the back.

A good test to see if the frame is dry and ready to be painted with another coat is the "finger" test. Press your finger on the frame for about 3 seconds. If you leave a fingerprint in the paint -- or any paint transfers to your finger, the frame needs a bit more time to dry. Painting on dry, hot days will speed this process up, as will painting in the sun, or pointing a fan at the frame.

Look out for missed areas. If you sit on a bench or the floor when you paint, you'll only see the frame from one angle or level. Once you've completed a side, move around the frame, checking all areas for missed spots.

You'll probably find it takes several coats to cover the frame, but the result is well worth the time.

Enjoy your bargain treasure!

2006-05-07T16:42:00.000-04:00

DID YOU KNOW

In George Washington's days, there were no cameras. One's image was either sculpted or painted. Some paintings of George Washington showed him standing behind a desk with one arm behind his back while others showed both legs and both arms. Prices charged by painters were not based on how many people were to be painted, but by how many limbs were to be painted. Arms and legs are "limbs," therefore painting them would cost the buyer more. Hence the expression, "Okay, but it'll cost you an arm and a leg."

As incredible as it sounds, men and women took baths only twice a year (May and October)! Women kept their hair covered, while men shaved their heads because of lice and bugs) and wore wigs. Wealthy men could afford good wigs made from wool. They couldn't wash the wigs, so to clean them they would carve out a loaf of bread, put the wig in the shell, and bake it for 30 minutes. The heat would make the wig big and fluffy, hence the term "big wig." Today we often use the term "here comes the Big Wig"because someone appears to be or is powerful and wealthy.

In the late 1700s, many houses consisted of a large room with only one chair. Commonly, a long wide board folded down from the wall, and was used for dining. The "head of the household" always sat in the chair while everyone else ate sitting on the floor. Occasionally a guest, who was usually a man, would be invited to sit in this chair during a meal. To sit in the chair meant you were important and in charge. They called the one sitting in the chair the "chair man." Today in business, we use the expression or title "Chairman".

Common entertainment included playing cards. However, there was a tax levied when purchasing playing cards but only applicable to the "Ace ofSpades." To avoid paying the tax, people would purchase 51 cards instead.Yet, since most games require 52 cards, these people were thought to be stupid or dumb because they weren't "playing with a full deck."

At local taverns, pubs, and bars, people drank from pint and quart-sized containers. A bar maid's job was to keep an eye on the customers and keep the drinks coming. She had to pay close attention and remember who was drinking in "pints" and who was drinking in "quarts," hence the term"minding your "P's and Q's."

- Source: Unknown via the Internet

2006-04-14T10:02:00.000-04:00

Staging to Sell

What is "staging," exactly?

Staging is anything you do to prepare your home for sale and to make it more attractive to a buyer’s eye. Staging helps present a home in its best possible light, and includes cleaning, de-cluttering, adding color and arranging furnishings.

It’s a little bit of theater–your property is the "set" and furniture and accessories are "props." It’s different from decorating, which is personalizing a space. Staging is about neutralizing a home so that it will appeal to the greatest number of potential buyers. It’s selling your space, not your things. Buyers need to be able to "mentally move in"–to picture themselves living in your home–before they’ll make an offer.

We always tell people that the way they live in their home and the way they sell it are two different things. Think of it this way: You wouldn’t sell your car without having it detailed first. Staging is the same idea–it’s detailing for your house.

How common is staging? In certain markets in cities like San Francisco and Seattle, nearly every home is staged. Staging is also taking off in cities like New York, Los Angeles, Miami, Atlanta, Nashville, Houston, Dallas, and Chicago. Nationally, only about one in five properties on the market is staged, though that number is rising as the concept spreads.

How much does staging cost? It varies, depending on where you live and the scope of the staging. A consultation with a professional stager, who’ll tour your home and then give you a punch list of things to do before putting it on the market, runs a few hundred dollars. Hands-on staging services can cost anywhere from $1,000 for a small condo where they’re mostly using items you already own to $10,000 or more for a high-end home in an expensive market where they’re bringing in all-new furnishings. But the average cost for home staging in most markets is about $1,500 to $3,000.

How does staging work? I’ve never seen sellers not recoup their investment. In fact, a survey recently found that staged listings sold up to seven times faster (in six days compared to 45, on average) and for 17 to 25 percent more than comparable unstaged properties–a few staged homes go for 50 percent more. Even in slow markets, staged homes sell while others sit. It’s a small investment with a potentially huge return.

2006-04-09T17:38:00.000-04:00

Things Not to Do Before Purchasing a Home

No Major Purchase of Any Kind
Review the article titled, "Don’t Buy a Car," and apply it to any major purchase that would create debt of any kind. This includes furniture, appliances, electronic equipment, jewelry, vacations, expensive weddings…
…and automobiles, of course.

Don’t Move Money Around
When a lender reviews your loan package for approval, one of the things they are concerned about is the source of funds for your down payment and closing costs. Most likely, you will be asked to provide statements for the last two or three months on any of your liquid assets. This includes checking accounts, savings accounts, money market funds, certificates of deposit, stock statements, mutual funds, and even your company 401K and retirement accounts.
If you have been moving money between accounts during that time,

there may be large deposits and withdrawals in some of them.
The mortgage underwriter (the person who actually approves your loan) will probably require a complete paper trail of all the withdrawals and deposits.

You may be required to produce cancelled checks, deposit receipts,

and other seemingly inconsequential data, which could get quite tedious.
Perhaps you become exasperated at your lender, but they are only doing their job correctly. To ensure quality control and eliminate potential fraud, it is a requirement on most loans to completely document the source of all funds. Moving your money around, even if you are consolidating your funds to make it "easier," could make it more difficult for the lender to properly document.
So leave your money where it is until you talk to a loan officer.
Oh…don’t change banks, either.

Should You Change Jobs?

For most people, changing employers will not really affect your ability to qualify for a mortgage loan, especially if you are going to be earning more money.

For some homebuyers, however, the effects of changing jobs can be disastrous to your loan application

How Changing Jobs Affects Buying a Home
For most people, changing employers will not really affect your ability to qualify for a mortgage loan. For some homebuyers, however, the effects of changing jobs can be disastrous to your loan application.

Salaried Employees
If you are a salaried employee who does not earn additional income from commissions, bonuses, or over-time, switching employers should not create a problem. Just make sure to remain in the same line of work. Hopefully, you will be earning a higher salary, which will help you better qualify for a mortgage.

Hourly Employees
If your income is based on hourly wages and you work a straight forty hours a week without over-time, changing jobs should not create any problems.

Commissioned Employees
If a substantial portion of your income is derived from commissions,

you should not change jobs before buying a home.

This has to do with how mortgage lenders calculate your income.

They average your commissions over the last two years.
Changing employers creates an uncertainty about your future earnings from commissions. There is no track record from which to produce an average. Even if you are selling the same type of product with essentially the same commission structure, the underwriter cannot be certain that past earnings will accurately reflect future earnings.Changing jobs would negatively impact your ability to buy a home.

Bonuses
If a substantial portion of your income on the new job will come from bonuses, you may want to consider delaying an employment change. Mortgage lenders will rarely consider future bonuses as income unless you have been on the same job for two years and have a track record of receiving those bonuses. Then they will average your bonuses over the last two years in calculating your income.
Changing employers means that you do not have the two-year track record necessary to count bonuses as income.

Part-Time Employees
If you earn an hourly income but rarely work forty hours a week, you should not change jobs. There would be no way to tell how many hours you will work each week on the new job, so no way to accurately calculate your income. If you remain on the old job, the lender can just average your earnings.

Over-Time
Since all employers award overtime hours differently, your overtime income cannot be determined if you change jobs. If you stay on your present job, your lender will give you credit for overtime income. They will determine your overtime earnings over the last two years, then calculate a monthly average.

Self-Employment
If you are considering a change to self-employment before buying a new home, don’t do it. Buy the home first.
Lenders like to see a two-year track record of self-employment income when approving a loan. Plus, self-employed individuals tend to include a lot of expenses on the Schedule C of their tax returns, especially in the early years of self-employment. While this minimizes your tax obligation to the IRS, it also minimizes your income to qualify for a home loan.
If you are considering changing your business from a sole proprietorship to a partnership or corporation, you should also delay that until you purchase your new home.

2006-03-21T18:54:00.000-05:00

10 Ways To Get More Out of Your Local Marketplace

Go for the junk -- and get rid of it. A house with less stuff looks bigger and roomier. If what you want to throw out can have value to others, see if you can help by donating goods to local charities.

Price within reason. Trying to sell a home for $700,000 when like homes go for $525,000 is a non-starter. The days of "testing" the market with huge price increases is finished in many areas. Overprice and you won't be competitive.

Use the best local Realtor you can find. Experience, connections and reputation can be a real edge when marketing a property.Require your Realtor to have a marketing plan that makes sense for you and your property. The technique that sells one property may not be appropriate for another, so find the approach that's right for you.

If the home doesn't sell within a reasonable time period, think about changing the deal rather than lowering the price. In other words, rather than cutting the price from $500,000 to $480,000, instead keep the $500,000 price and offer a 2 percent "seller contribution" to help a buyer pay for closing costs. This approach is cheaper ($10,000 in closing cost help rather than a $20,000 price reduction) plus it gets to the real need of many buyers, closing assistance.

Have a home equity line of credit in place -- even if you don't expect to sell for several years. This way you can have funds available if you want to buy a replacement home while the current property is being sold. Just be aware of the risk -- if your current home does not sell in a reasonable period you could face lots of mortgage payments.

Make sure everything works -- and nothing leaks. Expect buyers to ask for a home inspection and be prepared to make reasonable repairs if requested. Remember that it may be better to upgrade an electrical service box than to look for a new buyer.

Find out what buyers thought after a showing or open house. Don't take negative comments personally. Look for ideas that can help you make a better impression with the next prospect.

Beware of buyers who want you to take back financing. At a time when loans with little or nothing down are available from every lender, don't go into the banking business and take back a loan when there is less risk to you with an outright sale.

Don't get upset with small inconveniences. If a prospect wants to see a home with little notice or at an odd hour, don't worry about it. It's better to show the property than to have a home which is both undisturbed and unsold.

WHAT'S THAT SMELL???

2006-03-15T11:10:00.000-05:00

Fresh House: Smells Sell

A smell can either make or break a home. Yes, it's true. Even a Realtor will tell you to make a batch of homemade chocolate chip cookies before holding an open house or to air the home out and make it smell good.

But let's face it, sometimes there are circumstances that hold this possibility at bay. In other words: kids, dirty clothes, pets, preparing fish for dinner or even cutting up an onion can all stink up the house for weeks on end. So, what's a homeowner to do? Relax.

Here are few tried and true options in getting your home back on track so you can enjoy a home that smells clean and wonderful rather than old and stinky.
Try, try, try. It may be difficult, but try to keep distasteful smells away from the house or at least away from the high traffic areas i.e., Great Room, bathrooms and of course, the kitchen. Make sure the kids and other family members leave stinky shoes and sporting equipment in the garage. Don't let smokers smoke in the house. Keep the bathroom doors shut and be sure that no unnecessary trash builds up under kitchen sinks.

Appealing cleaning products. One of the easiest ways to keep ugly odors at bay is to use cleaning products that smell nice. For example, trying sprinkling a scented powder on the carpet before vacuuming. Put a drop of your favorite essential oil in buckets of water used to clean the floor. Any citrus oil (i.e. orange flower) is perfect for giving your home a fresh scent.

Candle magic. Burn fresh smelling candles or add an incense burner in a room or two and light frequently.

Kitchen Floors. In a bucket mix 1/2 cup white vinegar with 1-gallon hot water. This is safe for hardwood, linoleum, tile, and any washable surface.

Oven Cleaner. Mix 1 tablespoon of baking soda, 1-tablespoon salt, and add 1/2 cup hot water. Make a gritty paste, apply to the oven, heat slightly, cool and then wipe away with a damp rag.

Refrigerator Seals. The plastic seals of refrigerators can be wiped free of debris with a rag dabbed in white vinegar.

Laundry Detergent for White Clothes. Use 1/4 cup washing soda (sodium carbonate) in place of bleach. Bleach is one of the most toxic substances for the environment. Washing with baking soda costs only a few pennies per wash load, and it is far less expensive than bleach. Along with the baking soda, add 1/4 cup of white vinegar.

Laundry Detergent for Dark Clothes. Use 1/4 cup of white vinegar and 1/4 cup of salt. Salt helps restore faded colors, and removes dirt and grime.

Bathroom Glass Cleaner. Use 1-2 tablespoons of white vinegar mixed with 1- quart of water in a spray bottle. To remove oily fingerprints and hairspray from the mirror, dab on a little rubbing alcohol and wipe with a linen rag.

Bathroom/Bathtub Glass Sliding Doors. Use 1/4 cup white vinegar mixed with 3/4 cup of hot water. Those hard water stains will wipe away like magic.

With just a bit of imagination, and some pre-planning, your home can smell fresh, clean and not so lived in! Something most of us strive for on a daily basis.

2006-02-21T15:00:00.000-05:00

Homebuyers Shouldn't Say

"Love"

or They'll Pay Dearly

Valentines Day and phrases associated with it reminds me to tell my clients what not to say when interacting with a home seller or a real estate agent that represents the seller at home showings.

I love it.
It's perfect for us (me).
We (I) just fell in love with the house.
I (we) just found my next home.
It's our dream home.
We've loved it for years.
We love it. We want it.
It's the perfect house for us (me).
We love this house. Dearly.

Here are some tips to help you save some money once you find the perfect home.

Instruct your agent to keep you away from listing agents or sellers when you're viewing a home. As much as the listing agent or homeowner wants to follow you around to sell you the home, ask your agent (yes you should have your own) to tell the listing agent or owner that after a quick verbal overview of the property features you would like to see the property at your own pace, unaccompanied by them. This way if the love starts flowing they won't know it, unless you're screaming with glee.

Adopt a poker face. From the minute you meet real estate agents or sellers, be approachable but not overly engaging. Real estate sales persons first thought is to try to qualify you as a buyer. Resist extensive conversations by extracting yourself with ?we're on a tight property tour timeline today", "it's our first day out", or "some features work for us, but it isn't 100%".

Don't stay too long. The longer you stay, the more likely the listing agent will find out way too much information about your feelings toward the home, and that will not serve you later, if and when you enter into negotiations. Even if you are in love, on the average don't stay longer than half-an-hour. Book a second showing if you need more time.

Moderate picture taking. If you need to take some photos, do, but limit to overview photos and not every detail such as the insides of kitchen cabinets. Pick up the listing sheet and some additional information, but when offered every mortgage rate sheet, listing agent card, refrigerator magnet, decline the offer. You're trying to save some trees and not appear in love.

Delay feedback. Before you leave the home the selling agent or homeowner will ask what you think of the home. No commitment answers please. A quick "thank-you for showing us the (your) home, we need to think about it", "we've seen so many today, but we need to assess which will work the best for us", or "it has features we like, but it's stretching our home search parameters."

Ask factual questions, which can you, can independently verify answers. If you get stuck being questioned by an agent or seller, take charge of the conversation and ask basic questions that you can verify independently later. This is a good lie detector test, so if you start communicating later on a contract, you'll know who's who. Ask what are the most recent taxes, any planned special assessments by the homeowners association, annual, quarterly or monthly assessment amount, how long have you (or the sellers) lived in the home. Use the listing sheet to verify answers.

You haven't tipped your hand, but if you are in love, here's some next step tips.
Sleep on it. Unless you're in an over-heated sellers market (beware of top-of-market-prices) take some time alone and weigh the pluses and minus'. Don't react or be impulsive. You'll feel more confident if it's the right thing to do over time.

Take a second or third look. You'll discover your love level on the second or third tour of a home, or if it's not exactly what you want. If you go back more than three times, you might start to alienate the listing agent or seller and they might not think your decisive enough to go to the closing table.

Review closed sold comparables from the last six months. Compile data from recently sold homes that are similar to the one you are interested in will let you know if yours is over or under-priced or fair market value. These comparables will help you strategize your negotiations.

Don't waive contingencies. Just because you want it, don't give up your legal rights in a contract. Don't let your agent or love convince you to strike attorney, home inspection or mortgage contingencies. Have an attorney review all real estate contracts.

The sellers and their real estate agent will know you want the house when they're presented with a real estate contract. It's a sure sign of love in realty circles.

So....you want to sell your house!

2006-02-17T16:10:00.000-05:00

10 Ways To Get Your Price
by M. Anthony Carr

When buyers gain more leverage in a housing market, sellers must think out of the box to entice buyers to their homes, then to lock in their asking price. Below are 10 ways to get your home sold and, if not at your price, at least a little closer than what you might have gotten otherwise.

Finished rec room. This gives the buyer a lot more than just money in his pocket. You may be able to finish an unfinished space for less than what the buyer wants to lower the price. When you're talking monthly payments, $50,000 in the mortgage amount would be $299.78 per month. By negotiating $50,000 in remodeling costs, the buyer could come up with a third more living space for less than the cost of a car payment.

Decorating allowance. Is your décor tired looking and left over from the 80's or 90's? Then offer cash for upgrades, new carpet and a paint job. With good bidding on the job, you may be able to keep your price, give the buyer what s/he wants and make some money on the backside as well by not dropping your price. Many buyers would love $20,000 to spend the way they want on decorating.

Mortgage payments for 3 to 6 months. How would you like to move into a house and make no payments for 3 to 6 months? On a $300,000 mortgage at 6 percent interest, the principal and interest payment is $1,798.65 per month -- over three months, the buyer would save $5,395.95; 6 months, more than $10,791.90.

Buy-down points to lower the interest rate. For some buyers, it's all about the monthly payment. Try coaxing them into your price with an offer to buy-down their interest rates with points paid by the seller. If they can get the interest rate low enough, they will be able to carry a higher mortgage for a lower monthly payment because of your point money left at the table. This is a technique of "selling the deal" more than selling the house.

Vacations. Buy a house, get a Caribbean Cruise. Take some tips from new home builders -- they're professionals at this incentive thing. Sometimes, a buyer might get cash back at the settlement table, but wouldn't dare spend it in a luxurious way. Offer a cruise, an expensive spa weekend, airline tickets to Asia -- or some other out of the ordinary travel package to entice them. When you consider the inventory has more than doubled in some markets, the only thing different from one house to another may be the cruise line.

Free Media room. Did you know that movie ticket sales are down for the third year in a row? One of the reasons is the advent of the at-home, non-sticky, low-ticket price media room. During the recent Christmas holidays, some media room packages, complete with big screen monitor and surround systems were selling for under $5,000. This one investment alone could be the sweetener your buyer needs to sign the bottom line.

Year-long HOA Fees. Looking for a more practical buyer benefit? How about relieving them of those expensive home owner association dues. Depending on the community, these fees could top out to more than $500 per month -- that's $6,000 for the first year. Offering this bennie could definitely help the cash-poor buyer get into his first condo.

Offer seller financing. This option is overlooked by a lot of sellers because they or their Realtor just don't think about it. Seller financing can be in several forms -- as a first trust, second trust or even 100 percent financing for the whole house. For the seller who can swing a 1st trust mortgage, this can actually become quite the cash cow. For instance, a $100,000 mortgage offered at 7 percent over 5 years with interest-only payments followed by a balloon payment of $100,000 -- would actually result in the seller netting $135,000 over the life of the loan -- not a bad return..

Pay off bills. Some loan programs will allow sellers to pay off credit cards, auto loans, et. al., for the buyer. It could make the difference in qualifying for the mortgage and having to buy a smaller, less expensive house. Again, maintain your asking price and offer to pay off debt for the buyer.

Pay closing costs (up to mortgage program limit). Here's the old standby. It's not as fancy as those above -- but it's very reliable and works very well.

TOP 10 TAX BREAKS ON YOUR HOUSE

2006-01-11T13:31:00.000-05:00

1. Mortgage Loan Interest: The Mother Of All Tax Breaks, because interest payments comprises a large portion of your mortgage payment in the early years of the loan's term, mortgage interest on a maximum of $1 million in mortgage debt secured by a first and second home is deductible. Deductions reduce your taxable income against which your taxes due are calculated. The $1 million level applies to joint tax filers. You get half the deduction if you file single or separately.
Likewise, home equity loan interest is deductible, but limited to the smaller of $100,000 (half as much for each member of a married couple if they file separately), or the total of your home's fair market value as determined by a complicated formula you may need a tax professional's help to decipher.

2. Home Improvement Loan Interest: The interest on a home improvement loan is also deductible, but calculated differently. You can deduct all the interest on a home improvement loan provided the work is a "capital improvement" rather than repairs, maintenance or cosmetic upgrades. Capital improvements typically increase your home's value (say, because you added a room), prolong it's life (a new roof) or adapt it to new uses (universal design improvements to assist older people or people with disabilities). You get tax benefits from repair work (painting, repairing, etc.) only when you sell your home but you can use a home equity loan to make repairs and deduct the interest -- up to the limits.

3. Points: Points, each equal to 1 percent of the loan principal, are charged by lenders as part of the cost of the loan. You can fully deduct points associated with a home purchase mortgage, but not a mortgage broker's commission. Refinanced mortgage points are deductible too, but only when they are amortized over the life of the loan. Once you refinance a second time, the balance of the old points from a refinanced loan offer an immediate write off, as you begin to amortize the new points.

4. Property Taxes: Property taxes or real estate taxes are fully deductible. Any local city or state property tax refunds reduces your federal property tax deduction by the same amount.

5. Capital Gains Exclusion: Home buying investors' best tax shelter comes from provisions in the Taxpayer Relief Act of 1997 which allows married taxpayers who file jointly to keep, tax free, up to $500,000 in profit on the sale of a home used as a principal residence for two of the prior five years. The amount is halved for those filing single or separately. You can use the benefit as often as you qualify.

6. Home-Based Business Deduction: Home offices that use a portion of your home exclusively for business could qualify you to deduct a percentage of costs related to that portion. Included are a percentage of your insurance and repair costs, utility bills and depreciation. Under clarified provisions of the Taxpayer Relief Act of 1997, if your home office qualifies, you don't have to allocate a home sale's capital gains between the home and the business.
Previously if you used, say, 10 percent of your home for a home-based business, 10 percent of the gain from a sale would be subject to capital gain taxes and you couldn't use the capital gains tax exclusion on that portion. The clarified provision does not excuse you from a recapture tax if you've taken a depreciation deduction because of the home-based business.

7. Selling Costs and Capital Improvements: When you sell your home, you can reduce your taxable capital gain by the amount of your selling costs, which include real estate commissions, title insurance, legal fees, advertising and inspection fees. Cost typically stemming from decorating or repairs -- painting, wallpapering, planting flowers, maintenance, and the like -- are also selling costs if you complete them within 90 days of your sale and with the intention of making the home more saleable.
Selling costs are deducted from your gain. Gain is your home's selling price, minus deductible closing costs, minus selling costs, minus your tax basis in the property. Your basis is the original purchase price, plus the cost of capital improvements, minus any depreciation.

8. Moving Costs: A move triggered by a new job comes with some deductible moving costs. To qualify, you must meet certain requirements including, moving within one year of starting your new job, moving 50 miles farther from your old home than your old job was and working full-time at the new job for 39 of 52 weeks following the move. Deductions include travel or transportation costs and expenses for lodging and storing your household goods.

9. Mortgage Tax Credit: Mortgage Credit Certificates (MCCs) allow qualifying low-income, first-time home buyers to take a mortgage interest tax credit of up to 20 percent (the amount varies by jurisdiction) of the mortgage interest payments made on a home. This credit is available every year you keep the loan and live in the house purchased with the certificate. Unlike a deduction that reduces your income, the credit is subtracted, dollar for dollar, from the income tax owed. For example, with a 20 percent tax credit, if you paid $10,000 in interest, your tax credit would be $2,000. If you owe $2,000 in income taxes without the credit, you would end up owing nothing to the IRS after the credit was applied. The remaining 80 percent of your mortgage interest -- $8,000 -- is taken as a normal mortgage interest deduction.

10. Energy Tax Credits: The newest home-based tax credits were made possible last year by the Energy Policy Act of 2005. Tax credits of up to $500 in 2006 and 2007 are available for upgrading heating and air conditioning systems, insulations, windows, doors and thermostats, caulking leaks, installing pigmented metal roofs and for otherwise putting the bite on energy waste in your home. Qualified solar energy and fuel cell systems can net tax credits of up to $2,000. Some states also offer tax credits or rebate deals that could reduce the federal credit. Related tax credits are available for consumers who buy alternative- and clean-fuel burning cars and for entrepreneurial consumers who install clean-fuel vehicle refueling property at the principal residence of the taxpayer

Abreviations! What do they mean??

2006-01-06T20:44:00.000-05:00

BOM! 3/2 F.S.TH,S/E Exp.,

Wbfplc,2 Tan.Gar,S.S. Kit.,

Motv. 1031 Sell. Mid 5's

What it really says: Back on market, 3 bedroom, 2 bathroom, fee-simple townhouse with south and east exposures, wood-burning fireplace, 2 tandem garage parking spaces, stainless steel kitchen appliances. Motivated seller needs to sell to meet guidelines for a 1031 exchange. Price $550,000.

What it really means: Either a contract fell-through (the buyers walked) or the sellers took the property off the market due to illness, repairs or the holidays. There are no homeowners association assessments because the townhouse is owned fee-simple. The indoor garage parking spaces are end-to-end or tandem. The seller who hasn't occupied the property because it is a 1031 exchange needs to sell within a short period of time to meet tax guidelines. Yes the price is fifty thousand over a half-a-million-dollars.

The run-up in real estate prices the last few years has created a new real estate speak. The shorthand used by agents can be difficult to decipher by home buyers and sellers, but don't be fooled by the lack of zeroes in prices or the use of friendly words in place of the real choice. It sounds a lot less expensive if you're looking in the 1.1 to 1.5 range than one million, one hundred thousand to one million, five hundred thousand. Plus "fixer-upper" sounds better than what it really is: tired. "As-is" translates into buyer beware.

Here are some additional abbreviations home buyers and sellers should become familiar with when interacting with real estate agents.

A/G. Above ground. Swimming pools that are above the ground or grade. Accom. Accompany. Listing agent must show property.
A/C. Air conditioning.
W for windows,
CA for central air-conditioning.
Appl. Appliances. Kitchen and laundry.
Appt. Appointment. Shown by appointment only, don't ring the bell unannounced.
Approx. Approximately. Verify anything that is approximate.
As-is.
Assmt. Assessment. Annual, quarterly or monthly homeowners association charges to property owners.
Att. Attached. Any condominium, co-op, duplex, town home or two-flat that is attached to another unit.
A/I. Attorney and inspection. Defined period under terms of contract to purchase where both parties can have an attorney review the contract and the buyers can perform an inspection of the property at their expense.
Bsmt. Basement. Below grade or ground level.
Ba. Bathroom. Either half (no shower/tub), three-quarters (shower no tub) or full (tub and/or shower).
Br. Bedrooms. To qualify usually have to have a window and a closet otherwise a den or office.
BOM. Back on market. Was available, went off-market, now available again. Bldg. Building. Such as high-rise (more than eight floors) or mid-rise (5-8 floors) or low rise (2-4 floors).
Cab. Cabinets. Kitchen or other built-in storage.
Canc. Canceled. A listing is no longer available.
Crpt. Carpet. Wall-to-wall and tacked down.
C/A. Central air-conditioning. Either originally built-in with duct-work or retrofitted as space-pak (spc pk).
CLD. Closed. A property that has been sold and the buyers have received title. Const. Construction. New, recent or quality.
CTG. Contingent. A property is under contract with provisions that must be met. The buyers must sell their home (home sale=HS) or receive a commitment for a mortgage (mort).
Co-op. Cooperative. A form of ownership of an apartment (apt) or a commission paid to a real estate brokerage that procures a buyer for a property.
Det. Detached. A building that is not joined to another.
Din. Dining room. A separate space not combined (combo) with living room. Dir. Directions. How to get to a specific property address.
D/W. Dishwasher. Built-in ( a fixture) or portable (personal property).
Dist. District. School (sch) or historic (hist).
DOM. Days on market. The length of time a property has been in the Multiple Listing Service (mls).
Drv. Driveway. A description follows of what the material is covering the driveway.
Ex. Expired. A listing period for a property has passed.
Excl. Exclusions. The sellers are taking grandmothers light fixture in the breakfast (brkft) room.
Exp. Exposure. Direction home or unit faces. E=East, W=West, S=South, N=North
Ext. Exterior. Features on the outside of a building and the grounds.
Fam. Family. Family room. Beware that use of this word can violate Fair Housing Laws.
Fin. Finished. Basements can be fully finished (full fin) or partially finished (part fin).
Fplc. Fireplace. Fireplaces can be gas (gas fplc) or wood burning (wb fplc).
Flr. Floor. Such as first floor master bedroom (1st flr mstr).
Grdn. Flower gardens or garden level. Can describe exterior landscaping or a interior living level that is partially below ground level.
Gar. Garage. A enclosed space for storage.
GFA. Gas forced air. A type of heating system.
Grt. Great room. A combined (combo) family, kitchen and breakfast room.
Hdwd. Hardwood floors. Beware softer woods are through into this category. Bamboo and poplar can't take the same wear and tear as maple and oak. Diagonal hardwood (d/hdwd) and parquet (parq) are other options.
HVAC. Heating,ventilating and air conditioning. Refers to an all-in-one heating and cooling system.
H/War. Home warranty. The sellers have purchased a warranty on the home to protect buyers from repair expenses.
Hr. Hour. 24 hour notice to tour a property.
Incl. Includes. Any items that would be considered personal property (pers prop) that the sellers are leaving in the home.
Int. Interior. As in decorating (decor) or professionally (pro) designed.
Kit. Kitchen. That's an easy one.
L. List price. The advertised price of a home.
Liv. Living room. A formal room typically adjacent to the front entrance of a home.
Loc. Located or location. Location rules in residential real estate.
LL. Lower level. A nice word for basement.
L.O. Listing office. The brokerage to contact concerning a specific listing.
Maint. Maintenance. Can apply to amount of work to maintain a home or what is included in the homeowners association charges to property owners.
MT. Market time. Same as days-on-market.
Mstr. Master bath or bedroom. The designated space where the homeowners bath and sleep.
Mech. Mechanical systems. The cooling, electrical, heating, and plumbing systems in a home.
MO. Month. Monthly assessments or month-to-month rental.
Ofc. Office. Home office (hom ofc) or office space (ofc spc).
O/M. Off-market. A property that has been withdrawn from the Multiple Listing Service.
Prkg. Parking. Options (opt) include off-street (off-st), space (spc) or covered (covd).
Pend. Pending. When a property in the MLS is under contract and close to closing or escrow.
Priv. Pvt. Private. Entrance (entr) or road (rd).
Poss. Possession. The date when a buyer can occupy (occ) a property.
PCHG. Price Change. The price has been lowered motivated or raised (difficult sellers).
Rm. Room.
S. Sale price. The recorded price a property sold for.
Scrnd. Screened. Lanai's (lan) or porches (por).
Sec. Security. System (sys) or building. Or a deposit (dep).
Sep. separate. Entrance or room not combined with another.
Sing Fam. single family home. A detached dwelling.
Slider. Sliding door(s). Usually pertains to sliding glass pr patio (pat) doors.
Sq ft. Square Feet. Verify all square footage measurements on home marketing materials.
Sty. Story. Describes the number of levels in a home.
Sty. Style. The architectural character of a home. Colonial (Col), ranch (ran) or traditional (trad).
Tx. Taxes. Property taxes for last (2005=05) attainable year (yr).
Thruout. Throughout. Hardwood floors in every room.
TH. Town home. Attached home.
Trans. Transportation. Convenient to buses, trains or highways (hwys).
U/C. Under contract. A property has a fully executed contract to purchase.
Util. Utility (ies). Cable, Electric, gas, oil and telephone services provided to a home.
Vin. Vintage. A home that was built prior to World War II.
W/D. Washer and dryer. Side by side (SBS) or stackable (stk).
W/. With. Wood burning fireplace with gas starter.
Wbfp w/gas Str. Wbfp. Wood burning fireplace.
Yd. Yard. Front, back or side landscaped areas.

Get Ready Now to Show Your Home To Buyers

2005-12-12T10:04:00.000-05:00

Don’t Let Tiny Closets Shut Out Buyers

Experts in home staging and closet organization share their best tips on how to make the most of sparse storage space.

BY KELLY QUIGLEY

Walk-in closets and roomy pantries are a necessity for many of today’s homebuyers who have lots of stuff and need a place to store it all. So when your listing is lacking in storage room, you have a big challenge to overcome in order to maximize buyer appeal.You’re most likely to encounter small storage areas in older homes, condominiums, and lofts. In many cases, the problem is compounded by cluttered living areas, as items that would normally be kept out of view become part of the décor.“We’re a consumer society, and we have more stuff than ever before,” says professional organizer Barry Izsak, owner of Arranging It All in Austin, Texas. “Twenty or 30 years ago, people lived with less. They didn’t have three sets of dishes and 15 pairs of black shoes.”But even tiny closets and other storage problems are surmountable after you get the sellers’ cooperation.

Start by explaining to your sellers that all of their hard work purging and organizing will give them a head start on packing for the move—and will go a long way in winning over potential buyers, says Izsak, who is president of the National Association of Professional Organizers.Izsak suggests telling sellers: “If a closet is packed to the gills, it’s only going to draw attention to how small it is. The smartest thing you can do is weed through what you have so the closets look ample, not overflowing.”Apply the two-thirds rule when you’re facing a jam-packed closet in the bedroom, bathroom, or kitchen, you should ask sellers to sift through their belongings and clean out everything that’s not used regularly. A rule of thumb is to have closets no more than two-thirds full.

Prospective buyers should be able to look inside a closet and think: “I have more stuff than this. But there is extra room in the closet, so surely my things will fit.”Bedroom closets, which can make or break a sale, need special attention when they’re on the small side. That means removing clothes, shoes, and bulky jackets that are out of season or worn only on formal occasions. It’s a fact that most people wear 20 percent of their clothes 80 percent of the time.

But sometimes it’s not just clothes and shoes clogging up a closet. Purses, hats, and sports equipment also are commonly misplaced in bedroom closets—making the space seem smaller than it really is.Box It Up, Move It Out!

If the extra items can’t be moved to an emptier closet in the home, they should be packed away in labeled storage boxes, which can be neatly stored under the bed, in the garage, or in a basement. But if these options aren’t feasible, which often is the case in condos, consider doing what Fisher encourages her sellers to do: rent storage space.The cost of storage is usually well worth the improved appearance of closets and other cluttered areas of the home, she says. What if sellers have weeded out clothes they don’t wear and closets are still packed? Make sure drawer space, hanger space, and shelving in the bedroom are being used wisely. Jeans and tee-shirts that are hanging in the closet are prime candidates for moving to the drawers—if there’s space.

Sellers also can consider buying an inexpensive closet organizer that can double a closet’s capacity. Many discount stores and online retailers sell rods for less than $20 that hang from the existing closet rod and create a second level of hanging space.Declutter kitchens, baths, and beyond. You can encounter closet challenges in virtually any room of a house. In each instance, follow the same advice given for bedroom closets: clear out the items that aren’t used often and box them up for storage, either on-site or off-site.

In the kitchen, have sellers pack up their little-used pots, pans, and other cooking utensils that fill up valuable cabinet space. Non-perishables can be donated to a local food bank or stored in boxes in a less conspicuous part of the house.

Pot racks are a viable option for some, but not for all. You have to have nice-looking pots, otherwise, they can work against you.For overstuffed bathroom closets and shelves, sellers should remove extra towels and toiletries. If a bathroom lacks a closet or shelf space, you must find innovative ways to make sure sparse storage isn’t the first thing a potential buyer notices. Place rolled-up towels in iron wine racks, use decorative baskets to group small items. It looks pretty to the eye, but it serves a very functional purpose.

An excess of toys can be a big problem in kids’ closets. Under-the-bed trundles can store toys out of sight, as can attractive storage bins and toy chests—which can double as benches or tables in the bedroom or playroom. Parents can work with their kids to cut down on the number of toys in the room by donating them to charity or boxing them up.Details Make a Great Impression. Your next task is to attend to details that make a storage area go beyond looking ample to truly shine.

Experts say it helps to paint the inside of closets a bright, neutral color and to clean the lighting fixtures so the space won’t appear dark and dingy.Creel, who runs the Web site OnlineOrganizing.com, says quality hangers also improve the look. “It’s amazing what a difference consistently sized and shaped hangers can make,” she says.Toss out the wire hangers and put those big bulky suit hangers in storage. Instead, use plastic tubular hangers, which can be purchased in bulk from almost any discount retailer.

Take it a step further by grouping similar clothing items together and facing the same direction.If a seller decides to empty out closets entirely before showings, it’s smart to add a few decorative touches by hanging a dress and placing a hat box on the top shelf. Just as it’s smart to make sure closets are no more than two-thirds full, it’s also important that they’re not completely barren.You’ll find that what works for one closet may not work for another closet.

One thing is certain: it’s always better to show off a home’s closets in their best light—even if they’re small—than it is to act as if the storage space is a downside of a property. As popular as walk-in closets are, some buyers may not be put off by smaller storage spaces.As is the case in any other room of the house, if a small closet is too cluttered and too personalized, buyers won’t be able to picture their belongings in your space. But by putting the best face on any small space, you should be on track for a successful home showing.

Learn MoreNational Association of Professional OrganizersUse the online search tool to find local organizers. Hourly fees can range from $50 to $150 an hour, depending on the scope of the work, and some organizers also specialize in home staging.
OnlineOrganizing.com: Organizing Your ClosetThis free checklist provides tips for getting your closets in order. The Web site offers other free resources, before-and-after photos, and an organizing store.

HANDYMAN of the YEAR!

2005-11-14T13:03:00.000-05:00

Streits Maintenance Systems is a new Business in the area offering competitive pricing and are flexible to customers schedules. They specialize in:

Flooring, Drywall, Painting, Deck Cleaning and Deck Building, and Interior Trim Work (Crown Molding & Chair Rail) We also do Maintenance Service Calls (Filter Changes, Leaky Faucets, and so on)to help maintain the value of your home for the future.

Call Owner - JASON STREIT at (859) 358-4385

My FAVORITE SERVICE PEOPLE

2005-11-12T14:19:00.000-05:00

Over the years I have met some fantastic people that I would like to share with others. Handymen, mortgage brokers, house cleaning, etc. So click on the comments to this post to locate the best of the best!