Are You Ready?

I have just released a book, entitled SHOULD I SHORT SALE MY

HOME? A Homeowners Guide: How to Survive the Worst Real Estate Market in History.

I was deeply appreciative of the opportunity to co-author this book with Tim and Julie Harris.  Helping distressed sellers avoid foreclosure has become my personal mission. I see this book as one more way in which Team Reilly can help our local homeowners.

In addition to finding great local resources if you are a distressed homeowner, readers will discover alternatives to the foreclosure of their home including loan modification and short

sale. Readers will get the answers to the Top Ten “short sale” questions such as, “Can I do a Short Sale if I have 2 Mortgages?” and “Will I be able to Buy a Home Again?” The “You Have Been Warned: Foreclosure Scams” chapter provides tips on the warning signs of a foreclosure scam or mortgage fraud.

This book is a must read before you hire an agent to represent you in a short sale. Chapter 10 reveals “How To Choose An Agent to Handle your Short Sale”. With so much at stake, does your agent have the answers? Are they skilled at negotiating these unique transactions with the lender to get the deal closed? Having these answers can possibly save you thousands of dollars.

Our mission, in writing this book, is to inform the public that solutions are available to help those impacted by this crisis both directly and indirectly.

Should I Short Sale My Home? is FREE to those facing foreclosure and to Attorneys, Accountants and Financial Planners.  For more information go to www.Help4MontereyHomeowners.com.

For your FREE copy email janet@teamreilly.com or call me at

831-601-9592.

You may be hearing more about “staging” your home before putting it on the market for sale, but according to Melissa Birdsong, vice president for Trend, Design and Brand for Lowe’s (www.lowes.com), “refreshing” your home will really help set it apart from the others—and that’s critically important in today’s buyer’s market.

Buyers look at a lot of homes, so I am frequently asked for ways homeowners can make their home stand apart from the rest on the market. While having a well-staged home is now the rule rather than the exception for a faster sell and a better price, Birdsong suggests thinking beyond the obvious for ways to make your entire home feel updated and inspired. Here are her recommendations for quick ways to refresh:

- A fresh coat of paint on worn walls provides a “wow” factor without excessive cost or effort. While this isn’t new news, something that tends to get overlooked (and can have just as much impact) is painting the trim and other accents that may have gotten scuffed or dingy over the years. Freshly painted trim work is cleaner and a healthy home environment is very appealing to buyers.

- Hardware is a quick fix as well. Switching out knobs and pulls in the kitchen or bath will catch the eye and revive an entire room. Taking it a step further to update faucets, light fixtures and even switch plates can take a space from ordinary to inspiring. Area rugs, lamps and plants are also quick ways to add life and warmth to a room with the convenience of portability. Because they are easily changeable, updating “unattached” items can instantly modernize a space with a fresh style.

- And don’t forget first impressions—exactly how fast are prospective buyers driving past the home? No brake lights? A quick tap and then accelerate? Or do they come to a full stop to get a better look? That fresh, new interior will never be revealed if the curb appeal of the exterior is blasé. Everything from container gardening and clean welcome mats to new storm doors and shutters can pull that buyer into your drive.

Artistic staging can showcase the best features in a home. But in today’s market, take a refreshing approach—go that extra mile and look for ways to make the home memorable to a potential buyer.

Local Realtor Earns Most Prestigious of all Industry Achievements
Norwalk, CT – Reaching the pinnacle of her profession nationally, Janet Reilly, of Sotheby's International Realty, was accepted as a Member of the Top 5 in Real Estate Network®, the most prestigious of all industry achievements.
 
More than just a sales-driven recognition, the Top 5 in Real Estate Network® meets a need that heretofore has never been addressed – helping consumers identify the most professional real estate agents in North America.  To qualify, each member must first meet a stringent set of criteria, based upon performance, as well as educational and professional skills and service to the consumer.
 
Members of the Network are carefully selected and managed by RISMedia, which has provided the real estate industry with objective, unbiased news for nearly 30 years. As a Member of the Top 5 Network, Reilly is among the first real estate agents to be accepted into this elite organization.
 
Allan Dalton, the president and co-founder of RISMedia’s Top 5 Network congratulated Reilly for earning this top status within the industry. “Janet has reached the very highest level of North America’s residential real estate industry. Not only are her professional accomplishments extraordinary, she has long been a true champion for home buyers and sellers in her area.  It is a pleasure to welcome Janet into this elite group of industry leaders.”
 
According to John Featherston, RISMedia's CEO & publisher and co-founder of the Top 5 in Real Estate Network, the significance of Top 5 is that consumers deserve full transparency regarding all matters related to the real estate transaction, which often begins with the need to select a highly competent, experienced and results-oriented real estate professional. Top 5 in Real Estate has been established to both empower consumers with leading real estate content through Top 5 members, as well as to ensure that consumers are made fully aware that there is a material difference between average and exceptional real estate professionals.
 
Janet Taylor Reilly, Certified Relocation Professional, Certified Distressed Property Expert, Certified Short Sale Specialist and Pre-Foreclosure Coach has turned her passion for wealth building through home ownership into a highly successful 29 year career in Real Estate. Reilly joined Sotheby’s International Realty in January, 2009, to further enhance her ability to provide world class marketing programs and buyer representation at the highest level. In 2009, troubled by the devastating foreclosure crisis, she was inspired to help distressed homeowners and founded Help 4 Monterey Homeowners, whose Mission is To Help Monterey County Homeowners Avoid Foreclosure. She is a co-author of the book Should I Short Sale My Home? Beginning her real estate career in 1980, Reilly quickly rose to Top Producer status with Merrill Lynch Realty in Hartford, CT, was the launching Team Leader of the Keller Williams Market Center in Carmel, CA and spent a significant part of her career in the field of Corporate Relocation. She holds the CRP designation and has been awarded ERC's Meritorious Service Award. Reilly is also the past Chair of the Carmel Chamber of Commerce, a graduate of Leadership Monterey Peninsula class of 2005 as well as being active in WCR and the Monterey County Association of Realtors. To learn more, contact Janet Reilly at (831) 601-9592 or e-mail janet@teamreilly.com.
 
For more information on RISMedia’s Top 5 in Real Estate Network®, please visit www.top5inrealestate.com or contact Member Relations at 203-853-2167 ext. 139.
 
RISMedia’s Top 5 in Real Estate Network® is a membership network of leading real estate professionals providing leading real estate information to consumers. To qualify for membership in the Top 5 in Real Estate Network, agents must meet specific criteria in five key categories: experience; results; education; information technology; and commitment to community. RISMedia, the leader in real estate information systems, has been providing the industry with news, trends and business development strategies for nearly 30 years through its flagship publication, Real Estate magazine, its leading website, RISMedia.com, and its renowned networking and educational events.

As a leader in real estate, I am repeatedly asked specific questions about today's market - especially in today's economy. In an effort to provide more information to my community, I am posting this Top 5 Real Estate Social Networking System^sm “e-Article,” which contains useful real estate information.

If you find it to be helpful please pass it along.

The 2009 First-Time Homebuyer’s Tax Credit passed by Congress this year just might be the best financial opportunity available to qualified home buyers in a generation. The new credit is retroactive to January 1, 2009. Unlike the 2008 package, this is not a loan. Eligible first-time buyers receive an $8,000 tax credit from Uncle Sam that does not need to be paid back.

Sweetening the pot, the law states that a first-time buyer is not necessarily a first-time buyer; the tax credit is available to any buyer who has not owned a home for the past three years. But the opportunity comes with some caveats. Here are five ways you could potentially miss out on this golden opportunity:

• Miss the buying deadline – The law states a home must be purchased between January 1 and November 30 of this year. But that means the transaction must close—not simply be in progress—before December 1.
• Delay on new construction – Because you must actually close on a home by November 30, 2009, you need to be careful about new construction estimates. If you want to buy a newly-built home, you should buy one that is either already completed or is about to be completed. New construction buyers must occupy the home by the deadline date.
• Misunderstand your eligibility – The right to use the tax credit is gradually phased out as adjusted gross income (AGI) rises from $75,000 to $95,000 on a single return or $150,000 to $170,000 on a joint return. If unsure of your eligibility, check with your tax advisor.
• Fail to plan ahead – There is an exception to the no-pay-back rule: You do have to repay the $8,000 if you sell the house within three years of the time you buy it. The home must be your principal residence and there is a recapture provision if you move out or sell before three years.
• Miss the boat for no good reason – Inertia…fear of rocking the boat…just-too-busy syndrome. Take advantage of today’s buyer’s market and talk to a real estate professional to find out if and how the tax credit applies to your particular situation. Time is running out to take advantage of this financial incentive.

As we take time now to gather receipts and information for our 2008 income tax returns we are often not aware of all the income tax credits that we may be allowed. Did you know that as homeowners, we are allowed an additional tax credit for improving the energy efficiency of our homes?

Under this tax law, homeowners are provided a 10% credit for purchasing energy efficient improvements for your existing main place of residence in the United States. In order to be eligible for this tax credit, the items purchased have to meet specific criteria as set forth by the 2000 Energy Conservation Code.

 The following items are eligible:

• Insulation systems that reduce heat loss/gain
• Exterior windows (including skylights)
• Exterior doors
• Metal roofs (meeting applicable Energy Star requirements)

 Tax credits are also offered to taxpayers for expenses to the home that qualifies as a residential energy property. A residential energy property is also determined by meeting specific requirements as set forth by the Secretary of The Treasury.

 Eligible expenses include the following:

•  $50 for each advanced main air circulating fan
• $150 for each qualified natural gas, propane, or oil furnace or hot water boiler
• $300 for each item of qualified energy efficient property.

Additional credits can be taken for the following:

• Qualified solar panels
• Qualified solar water heating equipment
• Qualified fuel cell power plant

For more detailed information on Energy Credits for Homeowners, including maximum allowable credits, visit the IRS website.

What Is Hard Water?

Hard water contains calcium and magnesium and while this is quite natural, excessive amounts create what is commonly referred to as hard water. Hard water is not considered a serious health risk but people who are more prone to rashes and skin problems can have problems because it changes the skin’s pH and soap remains on the skin, clogging pores.

How to Tell If You Have Hard Water?

The minerals in hard water can affect the ability of soap to clean kitchen and bath surfaces, dishware and laundry. Most homes have hard water problems without necessarily knowing about it. The best way you can tell if can tell if you have hard water is when it is difficult to get soap to form a lather, or you have to use alot of soap into the water to clean your dishes or if your dishwasher is just not getting the dishes clean. However, not all hard water is the same and depending on where you live it can vary.

Hard Water Solutions

If you suspect you have hard water, call a professional to test your water and recommend soft water solutions. The most common solution is to use a water softeners or water treatment systems. While many systems use salt, there are several water softeners available that have a salt free system. However if you are concerned about the presence of sodium ions in their water, use of sodium ions does not make the water noticeably salty or cause a significant increase in a person’s sodium intake. In fact, the FDA defines water that would result from softening 75 gpg hard water (where much more sodium ions would have to be exchanged that is typically the case) as a “low sodium” beverage.
Whatever type of system is used, the applications can be quite affordable and highly worthwhile for those in hard water areas. A typical household water softener costs around $1,000 to $1,500 with a monthly operating expense of around $2 to $8 if sodium is used, and $3 to $15 if potassium is used. Look for the WQA Gold Seal to find products that have been successfully tested to industry performance standards.

Advantages Of Soft Water

•You’ll have less unsightly spots on dishes, and glassware and your knives and forks.
•Your heating bill will also be lowered because heating hard water in the water heater, causes hardness scale which plugs plumbing pipes and vessels and builds up on the inside of water heaters.
•Your skin and hair will look and feel better after bathing or showering. Scum from hard water clogs skin pores and coats hair.
•Clothes are softer, cleaner, brighter, and last longer
•Your food and beverages will taste better using soft water and ice cubes will sparkle more.

Hard water waste can cost hundreds of dollars each year as it impact laundry operations, water heater, efficiency, household cleaning, and the life expectancy of water-using appliances and plumbing. While hard water is not an emergency, the costs do adds up.

October, 2008

· 173 Properties For Sale

· 15 Closed Sales

· 10 Under Contract

· 187 Average Days on Market

· $1,769,672 - Average Sales Price

· 14.6 Months Supply of Inventory

MLS Market Snapshot

Get This Week's Local Market Conditions:

Whether or not it’s the right time to buy is a highly personal decision driven by numerous factors.  The majority of the buyers we are working with fall into one of three categories, they are entry level buyers taking advantage of today's nearly unprecedented affordability, they are first time investors or they are seasoned investors. For those buyers who are ready to take advantage of the lowest prices we’ve seen in years and low interest rates, there are also tax benefits. While you build equity in your home by paying off your mortgage, many of the expenses of maintaining the dwelling provide you with tax deductions.  The higher your income, the greater the limits placed on the deductions, and some requirements must be met before they take effect. Here are some examples of deductible expenses:  

 Interest paid on your mortgage, as long as the acquisition mortgage amount does not exceed $1 million.

Interest paid on home equity loans – not more than $100,000 is deductible.

Casualty losses from fire, storm, flood, earthquake or other such incident. The loss after your insurance reimbursement must exceed $100 and 10% of your adjusted gross income.

Home-office costs that qualify.

Local real estate property taxes paid on a principal residence or second home.

Buying a home adds to your "take home" income – possibly by several hundred dollars or more – simply by increasing the number of federal income tax deductions.

The increase resulted from buyers responding to improved housing affordability conditions, the organization stated.

Existing-home sales-including single-family, townhomes, condominiums and co-ops-rose 5.5% to a seasonally adjusted annual rate of 5.18 million units in September from a level of 4.91 million in August, and are 1.4% higher than the 5.11 million-unit pace in September 2007.

Total housing inventory at the end of September fell 1.6% to 4.27 million existing homes available for sale, which represents a 9.9-month supply² at the current sales pace, down from a 10.6-month supply in August. This marks two consecutive monthly declines since inventories peaked in July.

Regionally, existing-home sales in the West jumped 16.8% to an annual rate of 1.25 million in September, and are 34.4% higher than September 2007. The median price in the West was $253,600, down 18.5% from a year ago.”

How does that play out in Monterey County?  If we compare sales statistics of Single Family Homes for September ’07 vs. ’08 we find the following for the County of Monterey:

The Average Sales Price is down a dramatic 65% from $1,269,335 in September ’07 to $445,807 in ’08.  While available inventory has gone down only 6%, properties Under Contract have gone up dramatically by 392%.  Closed properties have also seen a dramatic upturn of 257%.

The national trend of much lower prices with much higher sales is exactly what we are seeing here in Monterey County as entry level buyers and investors take advantage of vastly reduced prices and, what continue to be, historically low interest rates. 

One indicator of this is Month’s Supply of Inventory (MSI).  This is the statistic which measures the absorption rate of inventory.  It tells us how many months it would take to absorb the current level of inventory if the demand remained the same and no new properties came on the market.  MSI is down by 83% making this a much more balanced market.  In some communities in certain price points we are experiencing a seller‘s market. 

This activity is driven by Short Sales and Foreclosures.  It is very common for buyers of these properties to find themselves in multiple offer situations.  Buying a Short Sale or REO requires patience and fortitude!  As regards obtaining a mortgage, lending guidelines are, understandably, much tighter.  The no doc, 100% loan has basically gone away.

And what of Carmel? The average sales price in September ’07 was $2,394,714.  September ’08 saw a 28% drop to $1,715,893.  The number of properties on the market dropped by 16% with Under Contracts up 82% and number of Sold properties up 100%. Month’s supply of inventory is down 59% to 7.1 months. Average Days on Market is up slightly from 106 to 131.

So, is this a good time to buy?  That really depends on your circumstances and your reason for buying.  We believe this is a market of great opportunity for entry level buyers and investors.  First time buyers have been locked out of our local market for years due to the lack of affordability and a shortage of inventory in entry level price points. We are currently showing property that may sell for less than 50% of what it sold for in the last three years.  Given the tax advantages of home ownership and the probability of long term appreciation, it appears to be a good time for the entry level buyer and for the investor. 

Home ownership builds wealth in three ways, through the tax benefits that homeowners realize, the forced savings of paying down your mortgage over time and through the long term appreciation of the property.  Please note long term is the operative descriptor.  No one is predicting a quick recovery to the current economic crisis and no one, except those willing to assume the risk of buying at the courthouse steps and planning to “flip” a property (sell it quickly after purchase in hopes of a profit), should buy believing they can turn around and sell with any measurable appreciation for the foreseeable future.  We are still in the midst of a long overdue housing price correction and it is anyone’s guess how long it will last.  

This article was provided by Rick Del Pozzo, a great Loan Office with Stonecastle Land Home and Financial.  We think it gives a great overview of the process.

REO vs. Foreclosure

An REO (Real Estate Owned) is a property that goes back to the mortgage company after an unsuccessful foreclosure auction. You see, most foreclosure auctions do not even result in bids. After all, if there was enough equity in the property to satisfy the loan, the owner would have probably sold the property and paid off the bank. That is why the property ends up at a foreclosure or trustee sale. Foreclosure sales begin with a minimum bid that includes the loan balance, any accrued interest, plus attorney’s fees and any costs associated with the foreclosure process. In order to bid at a foreclosure auction, you must have a cashiers check in your hand for the full amount of the bid. If you are the successful bidder, you receive the property in “as is” condition, which may include someone still living in the property. There may also be liens against the property. Since what is owed to the bank is almost always more than what the property is worth, very few foreclosure auctions result in a successful sale. Then the property “reverts” to the bank. It becomes an REO, or “Real Estate Owned” property.

REO Properties For Sale

The bank now owns the property and the mortgage loan no longer exists. The bank will handle the eviction, if necessary,and may do some repairs. They will negotiate with the IRS for removal of tax liens and pay off any homeowner’s association dues. As a purchaser of an REO property, the buyer will receive a title insurance policy and the opportunity to investigate the property. A bank owned property might not be a great bargain. Do your homework before making an offer. Make sure that the price you pay (if you’re successful) is comparable to other homes in the neighborhood. Consider the costs of renovation, including time to complete them. Don’t get caught up in a “bidding war” and pay over market value. It’s an old myth that foreclosures are a bargain. 

How Banks Sell REO’s

Each bank/lender works a little differently, but they all have similar goals. They want to get the best price possible and have no interest in “dumping” real estate cheaply. Generally,banks have an entire department set up to manage their REO inventory.Once you make an offer to purchase, banks generally present a “counter-offer”. It may be at a higher price than you expect, but they have to demonstrate to investors, shareholders and auditors that they attempted to get the highest price possible. You should plan to counter the counter-offer. Your offer and counter-offer will probably have to be reviewed and approved by several individuals and companies. Even once an offer is accepted, the bank may insert wording like “…subject to corporate approval with 5 days.”

Property Condition

Banks always want to sell a property in “as-is” condition. Most will provide a Section 1 pest certificate, but not unless you include it in your offer and negotiate the point. They will allow you to get all the inspections you want (at your expense), but they may not agree to do any repairs. Your offer should include an inspection contingency period that allows you to terminate the sale if the inspections reveal unanticipated damages that the bank will not correct.

Even though you agreed to “as is”, always give the bank another opportunity to make repairs or give you a credit after you’ve completed your inspections. Sometimes they’ll renegotiate to save the transaction instead of putting the roperty back on the market, but don’t take it for granted. Banks do not want to see a lot of proprietary disclosures; they are exempt from the California’s Sellers Transfer Disclosure Statement (TDS-14). If there are real estate agents involved, either representing you or the bank, those agents are required to provide you their disclosure statements.

Anyone who has children that live or visit in their home wants to make sure that their home is safe.  Child safety is such an important topic that September has been designated National Child Safety Month.  The statistics are staggering, according to government figures 2-1/2 million children are injured or killed by hazards in the home each year.  Injury in the home is the leading cause of death in children and young adults. According to the most recent statistics from the Centers for Disease Control and Prevention (CDC), there were approximately 2,800 children, ages one to 14 years, that died from an unintentional injury. However, there are things you can do to keep children safe in your home that can be done without spending hundreds of dollars.

The best way to keep children safe in your home is to childproof every room and area of your home. Evaluate each area for dangers, it is a good idea to get down on the floor-the child's level, so you can see dangers that you may not have thought about.  The following is a list of items that can be used to help in your childproofing efforts:

While these are just  a few safety devices that can help to reduce the risk of the many household hazards to children, it is important to remember that nothing can replace proper supervision. However, these inexpensive items can help prevent injures and offer a little extra piece of mind.

Many people are unaware of what exactly what  Radon gas

How to tell if you have Radon

Radon testing is only way to find out if you have a radon problem in your home, the good news is that it is very easy. Since you cannot see or smell radon, special equipment is needed to detect it.  When you're ready to test your home, you can order a radon test kit by mail from a qualified radon measurement services provider or laboratory.  You can also hire a qualified radon tester, very often a home inspector, who will use a radon device(s) suitable to your situation.   As new testing devices are developed, you may want to check with your state radon office before you test to get the most up-to-date information

What to do if you have Radon

 It is estimated that one in 15 homes are threatened by Radon gas.  Companies like Safety Siren market a Radon detector not unlike a carbon monoxide detector. While the threat is real, the good news it it can be corrected if the gas is found in your home. If your house has failed a radon air to/or water test, you have options available to you to reduce radon levels to an acceptable level. There are companies that specialize in the reduction of Radon.  For Information on Radon Removal and various techniques, the EPA has published an on-line booklet called  "How To Reduce Radon Levels in Your Home" . 

It seems that everything and everyone are 'going green' these days-and that is a good thing! You may not have thought however that you can be environmentally conscious  when you make a move to a new home. Every year over 20 percent of the American population packs and moves each year- generating massive quantities of waste, that ultimately ends up in a landfill. It’s a huge problem but now we have options. There are multiple companies that now market services that will help you do just that.  These companies promote everything from bio-diesel to recycling packing materials. 

Bio-Diesel is one way you can be assured that the company that is helping you move is doing it with an eye on that carbon footprint.  Bio-Diesel is a renewable resource created by splitting vegetable oils into methyl esters (the chemical name for biodiesel) and glycerin (a valuable by product usually sold to be used in soaps and other products).     Companies like Green Moving promote the advantages to Bio-Diesel and use it exclusively in their trucks.

Aside from Biodiesel, how else can you green your move?  Take Part has suggestions with their Top 10 ways to move greenly. Some of their suggestions include using boxes that stores are throwing away rather than buying new ones.  Using green cleaning products when doing clean up and recycling items rather than discarding the things that aren’t going to move with you.

While boxes can be recycled; what about packing peanuts and the likes?  Wait!  Before you fill your boxes of precious fragile items with Styrofoam peanuts, check out your local Uhaul.  A number of moving companies now carry biodegradable packing supplies.  These foamy-looking puffs are made of cornstarch or other starches that start breaking down when they get good and wet!

There are other things you can do yourself to go green.  Rather than wrapping everything in bubble wrap, try newspaper and then recycle it when you get to your destination.  Use blankets and towels that you are going to be packing anyway, to protect fragile items.  This way they both get packed and still save a tree or two.  Not to mention less plastic in a landfill somewhere.  Good luck on your move and Go Green!
 

Types Of Fences

Wood Fences. A popular and cost effective choice, wood fences can be made out of Western red cedar, cypress, or treated pine. When maintained properly, wood fences can endure the harshest weather and provide you with several years of serviceability. Wood fences can come in privacy, picket or rail style. Visit the FAQ for more information on wood fencing.

Vinyl (PVC) Fencing. Vinyl fences are strong and highly durable - retaining their shape, color and structural integrity. In addition to their attractive appearance, this style of fencing offers many benefits. It is fireproof, wont rust or rot, termite resistant and is virtually maintenance free. While this type of fencing is more costly than wood, you will not need to replace the fence in a few years, they are built to last a lifetime. There are many styles of vinyl fencing available to suit your needs from privacy to picket.

Chain Link Fencing. Chain link fences are an economical way to provide years of maintenance-free security and access control. These types of fences are extremely versatile; they can be made in a variety of heights, and can handle anything from a simple boundary marker for a homeowner to perimeter security. You can also get vinyl coated chain link fences in different colors for added versatility.

Wrought Iron Fences. This style of fencing is extremely durable and has a classic look. They are available in different colors, patterns and heights. This style of fencing can be used for walkways, porches, and perimeter and driveway gates as well.

You may have heard the old saying that good fences make for good neighbors,  while this may be true adding a fence to your home can be a significant investment. It is a good idea to shop around and consider all your options. Some things to consider: what is the primary purpose your fence? Will it provide security, satisfy municipal codes, retain children or pets, secure a pool or spa? There as many reasons for investing in a fence as there are  options!

The situation many sellers find themselves in now is different.  To be competitive they need to do the right things to their homes, above and beyone the basics of curb appeal, staging, freshening up etc.  They may well find themselves doing major repairs and improvements.  Also, we highly recommend getting all inspections done in advance of listing and making any repairs or changes noted in the reports.

Before selling our homes I always walked around with a very critical eye (trying to look at the house as a buyer would) to determine what needed to be done in terms of painting, staging (or editing) landscaping, freshing up etc.  By and large we never did a major improvement just to sell the home.  That is not the situation many sellers find themselves in now.

I love Real Simple magazine.  This article on Home Improvements and their value is in the most recent issue.  I think it has real value for anyone contrmplating the sale of their property in this buyer's market.  Read it here or on-line at www.realsimple.com

Home Upgrades That Pay Off

These 10 around-the-house improvements are well worth the investment

No sugar coating here: The housing market is in trouble. But some experts say that it will start turning around as early as 2010. So while you’re waiting for it to recover, you might want to reconsider putting off that kitchen redo or landscaping job. “Any changes you make on your house now should increase your home value later,” says Kermit Baker, project director for the Remodeling Futures program at Harvard University. But which projects will yield the most bang for your buck? Take a look at this list, starting with the upgrades most likely to recoup your investment, and then enjoy that gleaming new kitchen.

1. Painting

Why It Pays Off: Paint provides dramatic results with little investment. If you decide to hire a professional to do the work, expect to pay $3,600 to $6,000 for the interior of an average American house (about 2,400 square feet). An exterior paint job will run $5,000 or more. Can’t decide on a color? Gerri Willis, the anchor of Open House on CNN and the author of Home Rich (Random House, $25, www.amazon.com), says that pale yellow homes tend to sell faster and for more money. Barbara Richardson, the director of color marketing for Glidden and a noted color-trend forecaster, explains, “Yellow is optimistic and inspirational. It gives people joy and the sense that brighter times are ahead.”

2. Adding Siding

Why It Pays Off: According to the 2007 Cost vs. Value Report, a study conducted by Remodeling magazine, fiber-cement siding (which is made of sand, cement, and cellulose fibers and costs an average of $13,200) is estimated to recoup about 88 percent (or $11,635) of a home owner’s initial investment. While vinyl can crack, split, and warp and aluminum tends to dent and fade, easy-care fiber cement holds up well against the elements and is resistant to fire, rotting, and termites.

3. Building a Deck

Why It Pays Off: A deck will provide you with more than a place to flip burgers and soak up the sun. “Buyers see a deck as offering a seamless transition from inside to out,” says Jerry Levine, president of the Levine Group, an architectural and construction firm in Silver Spring, Maryland. Experts suggest using natural, rustic wood. In 2007 wooden decks (as opposed to concrete or composite ones) reaped an impressive return on investment: Home owners who spent an average of $10,350 on lumber and labor could expect to recoup $8,840, or 85 percent of their costs.

4. Updating the Kitchen

Why It Pays Off: You really can’t go wrong with remodeling your kitchen, which can net up to 83 percent of the cost. “People know that renovating can be a nightmare, and potential buyers will appreciate that you did the dirty work for them,” says Vern Yip, a designer and the host of HGTV’s Deserving Design. “But stick with high-quality fixtures, like stainless-steel appliances and granite counters, and don’t pair them with a cheaper material, like laminate.” A word of caution: If your house is a tiny two-bedroom bungalow, don’t bother splurging on, say, a high-end stove. “You’ll never get your money back by installing fancy appliances in a smaller home,” says Leslie Sellers, vice president of the Appraisal Institute, an association of real estate–appraisal professionals in Chicago. And if an appliance overhaul isn’t in the cards, “you can easily make cosmetic updates on a kitchen that’s in decent shape,” says Steven D. Bullock, a designer in New York City and a certified member of the National Kitchen & Bath Association, in Hackettstown, New Jersey. For example, if your existing appliances are in good working order, coat them with electrostatic paint to give them a metallic or enamel-type finish. And you don’t have to rip out your cabinets, either.

5. Replacing the Windows

Why It Pays Off: If you’re experiencing cool and blustery weather…in your living room, it’s time to buy new panes, pronto. Not only are you losing precious heat but your utility bill could also be skyrocketing. “Energy-efficient windows eliminate drafts, so your home feels warmer,” says Sellers. Last year home owners who spent $11,400 on 10 three-by-five-foot insulated vinyl or aluminum-clad windows got an 81 percent ($9,240) return.

6. Modifying a Bathroom

Why It Pays Off: Bathroom upgrades, like updated countertops and new fixtures, provide solid returns — anywhere from 68 to 78 percent. But “avoid anything too trendy,” says designer Vern Yip. “Choose classic features, like off-white subway tiles, that will appeal to people with both traditional and contemporary tastes.” There’s no need to splurge on fancy fixtures, either. “A tub is a tub. A Jacuzzi will never make or break a sale,” says designer Steven D. Bullock. For quick touch-ups on existing sinks, toilets, and tubs, consider hiring Miracle Method, a surface-restoration company that recoats ceramic, porcelain, and fiberglass fixtures with a chemical bonding agent that looks like shiny new porcelain. (Cost: $465 to $600 for a tub, www.miraclemethod.com.)

7. Landscaping

Why It Pays Off: The front of your house is the first thing people see, so it makes sense that any improvements — from planting petunias to surrounding your home with a hedge — will be worth your while. “Don’t be afraid to spend money on perennials, which come back year after year,” says Yip. As for big-ticket investments, like trees, they aren’t just nice to look at; they also stave off erosion, block storm-water runoff, reduce carbon dioxide emissions, and filter groundwater pollutants. They might make your home sell for more money, too. The Arbor Day Foundation estimates a six- to eight-foot Colorado blue spruce or live oak (both are commonly found all around the United States) may grow one to two feet a year. And properties with gorgeous, established trees are even more attractive to potential home buyers down the road. When determining which areas of your yard to attend to first, try approaching the house from the curb to the front door. “Buyers make their decisions in exactly eight seconds,” says Barbara Corcoran, founder of the Corcoran Group, a Manhattan real estate firm. “After that, they’ve either fallen in love or are just honoring an appointment.”

8. Installing Central Air-Conditioning

Why It Pays Off: Adding central air to an average 2,400-square-foot house could cost upward of $10,000 and boost your home’s value by 10 to 20 percent, says appraiser Leslie Sellers. And central air-conditioning is energy-efficient too. Centralized units have an average energy-efficiency rating (EER) of 11.5, compared with an 8.5 EER in single-window models, making them less expensive to run. What’s more, central air won’t block the view the way a window unit does.

9. Fixing up the Basement

Why It Pays Off: “There’s nothing worse than that unmistakable damp-basement smell,” says Corcoran. “A dry basement is far more important than worrying about the right lighting or furnishings.” If your basement is prone to flooding, leaks, or excess moisture, call in a pro. If you do want to finish your basement by adding drywall, insulation, laminate flooring, or even a bathroom, “be sure it’s proportional in quality to other areas of your home,” says Lonny Rutherford, a chairman of the National Association of Home Builders Remodelers, in Washington, D.C. According to Sellers, “basement remodels gain back anywhere from 50 to 100 percent, depending on the quality of the materials.”

10. Putting in a Swimming Pool

Why It Pays Off: When you’re deciding whether to install a pool, it’s important to consider the part of the country where you live. In places where it can get unforgivingly hot, such as Arizona and Florida, an inground pool may boost a home’s value by up to 8 percent, according to a 2003 study by the National Association of Realtors. In more temperate areas, however, a pool can be a big turnoff, as prospective buyers imagine all the work they’ll have to do to maintain it, not to mention safety issues and higher insurance rates. But if you plan to enjoy a pool for a few years and it improves your quality of life, “then go for it,” says Tom Kraeutler, a cohost of The Money Pit, a home-improvement radio show, and a coauthor of My Home, My Money Pit (the Globe Pequot Press, $20, www.amazon.com). “You can’t put a number on that.”

Written by Allegra Muzzillo

September 2008

Homes More Affordable for 3rd Straight Quarter

It's no surprise-with excessive inventory and an increased number of foreclosures-homes became more affordable across the country for the third consecutive quarter, according to the recently released National Association of Home Builders (NAHB)/Wells Fargo Housing Opportunity Index (HOI).
 
From April to June, the national HOI rose to 55, meaning 55 percent of all new and existing homes sold were affordable to families earning the national median income of $61,500. This figure matched the highest-level HOI recorded in the last three years. According to the report, the median home sales price on a national scale last quarter was $215,000, about 10 percent lower than last year.
 
Indianapolis, Indiana was deemed the most affordable major U.S. housing market for the second quarter of 2008. Other cities at the top of the list of affordable markets include Youngstown, Ohio; Detroit, Michigan; and Farmington Hills, Michigan.
 
New York was the nation's least affordable major housing market, marking the first time a city outside of California received this designation since the HOI's inception in 1991. Other major metro areas at the least affordable end of the HOI chart included San Francisco and Los Angeles, California; Miami, Florida; and Nassau-Suffolk, New York.