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Posted on 07.01.06 by Admin @ 2:06 pm
Staging a home for sale means just that…setting the stage so that your home may sell faster and often times closer to the listing price than if it were not staged. Staging allows the home to be presented as a canvas and allow the buyer to paint a picture for them; visualizing what the space will look like if they moved in with their items. But that does not mean showing an empty home; rather staging accentuates spaces within the home by creating vignettes, which enhance positive space while downplaying negative areas within the house. You could hire a professional stager for about $400 for a consultation and then shell out another $100 per hour for the stager to do the packing and the redecorating, OR you can do it yourself, keep the savings and put it into staging the home if you do-it-yourself. In order to create the staging scene, understand that for the next 30-90 days, while the house is for sale, you will need to have removed personal items, collections and clutter, (and keep them ‘gone’ until you have a signed contract). Your home may lose its personal style and warmth, but that will be one of the small sacrifices you will need to make to maximize profit from the sale of your house. Staging will require some planning as you will pack away items, which you may have kept handy just for the sake of a convenience (i.e., refrigerator door space used as a bulletin board for ‘to-do lists,’ coupons, family photos and calendars, etc.) or items which may have been left plugged (indefinitely) into electrical outlets for convenience, such a shavers and hair dryers in the bathroom; all of which add clutter to the home. If you stage your home for sale on your own, here are 10 easy tips to remember: 1) Make a list of all the spaces, choose one room at a time and tackle each individually. You will be overwhelmed if you choose to do ‘the whole house’ in one afternoon. Start with the bathroom(s) and the kitchen and then move to the common rooms and finally the bedrooms. Basements, hallways and attics are last. Check off each room on your list as you go helping to make you feel as if you have made some accomplishment. Understand that packing up clutter is ‘work’ and it is time-consuming (that is why there is a $100 an hour price tag on the hiring a professional), but remember always that the savings outweighs the hard work. By all means, ask family members to pitch-in. Even children can pack away their toys and older children can clean a dirty shower. Plug in the Ipod or put on a CD to help the time pass a little more pleasantly. 2) Evaluate the colors of each room individually. Pastel colors do not sell well. Baby blue and princess pink are often gender-inspired colors, which are a huge turn-off for potential buyers. Even if the buyers have children and will use the baby blue room for their own baby, they may or may not like that particular shade or, in fact may wish to use yellow or green, often considered colors, which can traditionally be used for both boys and girls. Play it safe and simply paint over the pastels with a neutral color like beige or off-white. Any wallpaper should be removed or painted over if possible. 3) Go to your neighborhood grocery store and ask them for empty boxes from produce as these usually have side cut-outs for easy grabbing. Start storing empty boxes in a place for easy access a few weeks before you begin to stage. You will need the boxes and having them handy will keep the packing momentum moving along. 4) As you go from room to room, remove family pictures from the walls and replace them with used art from a thrift store or simply purchase framed prints from a local dollar store. Pack away all collections including children’s Hot Wheels, baseball cap collections and any other really personal collections you and your family may be fond of. You may leave out neutral items for decorating such as pricey crystal, Lladro, colorful depression glassware to fill in those spaces left behind when the spoon collections, baseball card collections and Formula 1 car collections come off the fireplace mantle and shelves. This may be ‘painful’ but consider that in 30-90 days you will be able to unpack these items in your new home and enjoy them again. 5) Consider at this point whether you will need to rent storage space or whether a neighbor or a friend will allow you to store these items in their home as filled boxes will accumulate quickly. A new storage idea has streamlined storage space in recent years, whereas you rent a container or a pod and store the items in this portable space for as long as you need to. If you should rent this container space, do not store the entire container on your own property. Ask a friend or a neighbor if you can store it there or ask the container company if you can store at their own facility. You do not want to make your home look like a warehouse. Also, do not consider storing any packed items in a spare bedroom or in the basement of your own home as you would simply be de-cluttering one room and cluttering another. All rooms should be clear of storage boxes, afterall you are selling a home and not a storage space. 6) Clean, clean, clean….particularly bathrooms and kitchens. No home will sell especially well with grit, mold, dirty tiles and floors. For as much as you will stage each room, the buyers’ eyes will focus on the dirt and not on the hard work you put into staging. People remember dirt and grime and it would only remind them how much more work they would have to do when they moved in themselves. If you need to re-grout a dirty tub, then you will need to make that effort. 7) Buyers make a determination of a home within 20 seconds of walking through the front door. Make that experience memorable within that short period of time. If you have an entryway, set up a table, with flowers, a small attractive bowl of expensive mints and add some potpourri somewhere in the area. Scented candles offer a nice smell when you first walk in, so I use them often. I often purchase scented candles at the dollar store or the day after a holiday when the retailers slash holiday item prices. An expensive red Christmas candle can be picked up for half price the day after the holiday season and no one would know it was a holiday candle. The same for Halloween…often orange, black, yellow and green scented candles go on sale after this event, so I stock up at that time and use those candles throughout the year. If you have an entryway, open all the doors off the entry to make the space appear larger and brighter. 9) Go to the supermarket and purchase an inexpensive bouquet of either daisies or carnations. You get many more flowers to work with in these arrangements than you would if you opted to spend money on roses or more expensive flowers. Arrange the flowers in whiskey snifters, small vases, or, if you do not have either take a better drinking glass from your kitchen, tie a small ribbon around the base and fill that with water and a few daisies. Use these arrangements randomly around the home but be sure to place at least one in each room. Change flowers as needed but the daisies and carnations seem to last a long time even if you forget to add more water! Dying flowers MUST be thrown out immediately; they make bad impression to visitors to your home. 10) Move out the bulky furniture and create little seating venues in your home with small tables and chairs. For example, you normally have a large sectional in your TV room with a cocktail table and two side tables…however, you may also have a large window facing the backyard that is blocked by the sectional. Remove pieces of the sectional to make the space appear larger. Place the cocktail table and one end table near the sectional. Find two chairs, which do not always have to match and place the other end table in front of the window with the 2nd end table in between the chairs. Add your bouquet of flowers, a small lamp and you have another seating area in the room. Pull your curtains away from the window, tie back with decorative rope or ribbon and let the light shine in the room. Add a bowl of lemons (I also like to use colored peppers) to the cocktail table for added color. Find two pillows that DO match and place them on the chairs in front of the window to tie the room together. If you do not have matching pillows, take two unmatching pillows and wrap matching pillow cases around the pills and knot in the center with a piece of ribbon. This is an easy formula to pull together a room which works in every bedroom and common area in the home. If you do not have a window to showcase, you may use a blank wall and situate the furniture as indicated above, adding two or three framed prints between the chairs and slightly overlapping the seating space to bring the eye toward the seating venue. For more staging ideas, please click here for Part II of this series http://mtrust.realtownblogs.com/real-estate/staging-a-home-for- sale-10-more-ideas-you-can-use-part-ii About the Author Michael Trust http://www.michaeltrustrealty.com is a native Angeleno. Born, raised, and educated in Los Angeles, and a homeowner himself, Michael is familiar with the challenges of buying, selling and owning real estate in the Greater Los Angeles area. Filed under: Advice Comments: None |
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Posted on 03.21.06 by Admin @ 2:20 am
Build A New House Or Buy An Existing One? I am living in living in the fourth house I have purchased during my 23 years of home ownership. To some that may seem like a lot of houses, to others it may seem like I’ve just started. The simple fact is we Americans move a lot… 11 or 12 times in a lifetime depending on whom you consult. Chances are you are going to purchase a house during quite a few of those moves and somewhere along the line you may have the opportunity to build a new home. Should you? Everyone has fantasized at some point about his or her dream house. You may want closets big enough to live in; a bathroom that doubles as a spa; a kitchen in which you could produce programs for the Food Network But, as in most fantasies, there is usually some epic journey required to achieve the goal. And building your dream house follows that plot line all too closely. But isn’t it the dream that makes the quest worthwhile? Yes, if you can weather the storms and battles along the way. And the determination to keep moving forward is usually a function of a strong will and a big heart. But it helps to use your head before you set off on your personal version of “The Lord of the Rings.” It is likely that you have options when you begin the process of buying a home. There may be existing homes in the area that are affordable and that meet your needs. But there are always things about any property or house that don’t exactly meet with your approval. The basement may not be finished or the yard may be too small or the interior décor may have to be entirely redone. It is virtually impossible to buy an existing home without making compromises. Building new allows you to imagine, design and build the home that accommodates needs and amenities that are important to you… within a budget of course. And that is one thing that must be considered. A new home will be more expensive, on a cost per foot basis, than an existing one. That is due to the cost of land, the price of building materials and labor expense. You might also find that taxes are high as a new area is developed and the municipal authorities factor in the required infrastructure for a growing population and the need for services like education, law enforcement and recreation. You may find yourself subsidizing some of these costs as an area develops. The ongoing costs associated with an existing house are more predictable. However, there will likely be more maintenance expense than for a new house and energy costs tend to be higher with older properties because newer homes are more energy efficient. Commuting costs may be an issue. Developers must go further and further out to find enough land to accommodate a new subdivision. That may mean higher costs for commuting to work and to access other businesses and venues that may be closer to the nearest major population center. You should consider this from both a monetary perspective and to determine if you are comfortable with an additional investment of time. If your new house is built in a subdivision there may be ongoing fees required. In addition, there may be covenants that are designed to protect property values that may apply serious restrictions on your ability to enhance your home and/or your property down the road. A new home needs new landscaping. This may be included in the price of the home but there will likely be a limit to what is covered under the agreement. To landscape the property in a way that is truly satisfying may require an additional outlay. Beware of construction delays! Building contractors are notorious for setting deadlines they miss and making promises they can’t keep. Make sure you do some thorough research about the builder and his track record before you commit. Weather is always unpredictable and may have an effect but that should be factored in from the start. A new subdivision can be a hornet’s nest of building activity. If you move into your home early in the process be prepared for hammering, sawing, trucks, mud and general chaos for quite a while as the subdivision progresses. This is a lifestyle issue and is a temporary inconvenience. But some have found this level of activity disconcerting and disruptive especially when they are settling into their “dream home” and trying to savor the experience. If you build new be prepared to stay for a while. With new construction all around you it would be difficult to compete with the rest of the properties available for others who want to build a house from the ground up. You would have to make it worth their while and that usually means a compromise in price. All this being said (and trust me there is more that could be said) there is nothing quite as satisfying as showcasing the house to family and friends that you designed and built and that reflects your unique vision and personality. If you survive the journey, you will likely have turned your fantasy into reality. About the Author Filed under: Advice Comments: 1 Comment |
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Posted on 03.21.06 by Admin @ 2:20 am
Three Ways To Purchase Property You can purchase property for cash, of course, and if you have it, this can be the best way to get a great price. What if you don’t have the cash? Here are some of you other options. Partner To Purchase Property Join the local real estate investing group in your town. Then start taking notes, names, and numbers. Our group here in Tucson meets once a month. The best part of the meeting is the “I have / I want” part, where anyone can stand up and tell the rest what they are looking for, or what they have to sell. I have a list of people now that are looking for everything from mobile home parks to fixer-upper homes. How do you use this information to purchase property? Here is one of several ways: Make an offer on a property, and include in the offer the right to assign to someone else or bring in a partner. Call the people on your list until you find one that will put up the down payment or arrange financing as a partner. I announced that I had some money at one meeting, and three days later got a call from a couple that had the financing and down payment on a project arranged, but needed a partner to bring in the money to rehab the property. If the deal is good, you can find the money. If you don’t have a real estate investors group nearby? Start one. The Two-Note Technique This creative way to purchase property sounds more complex than it is. You make an offer for, let’s say, $360,000 on a rental property, when the seller is asking only $350,000. Why, if the seller is asking $355,000 and probably only expects to get $340,000, do you offer more than the asking price? Because the seller will be financing the whole deal, and he needs cash, so you’ll be selling one of the loan notes. Let me explain. You offer two mortgage notes, one for $300,000, and the other for $60,000. The payments on the first might be around $2,000, and $400 per month on the second. You’ll have total payments of $2,400 per month (Be sure you still have cash flow). As part of the offer, you arranged for the sale of the second note at closing for $45,000. That’s all a note investor is likely to pay for an “unseasoned note”. The seller gets $45,000 in cash, and payments of $2,000 every month for 30 years. The note investor gets your other payment of $400/month. The numbers will be all different in every deal of this sort. Maybe you have some cash. Maybe the seller needs more cash, so the second note will have to be for a higher amount. Interest rates, balloons, and your credit rating all affect what a note buyer will pay for the note too. The point is that you can create cash out of seller financing, meaning you can purchase property with nothing down, or with less down. No-Doc Loans These loans used to be harder to find, and may still be in your area, but they’re everywhere around here right now. The idea is that you don’t need documentation of a job or even income, hence the name “no-doc.” The bank loans based on your credit score and the property. I can get 95% financing on a $300,000 house without any job or income right now. The catch, apart from needing either great credit or a larger down payment, is that the interest rate will be higher. Now, suppose you find a $100,000 fixer-upper and can put the $5,000 down payment and the repairs on your credit cards. In this case, the few thousand in interest over the six months you own the house isn’t much if you intend to make a $25,000 profit. On the other hand, the higher interest will really add up if you are going to live in the house for 30 years. At the moment, the banks around here seem to want about 2% more for these loans than for conventional mortgage loans, and that is a lot of extra interest over the years. Bottom line? No one way is right in all cases. That’s why you need to know many ways to purchase property. About the Author Filed under: Advice Comments: None |
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