Month: May 2019

Renovations never seem to go as planned. There’s always a cost you didn’t anticipate, or a problem that didn’t reveal itself until the project was underway. Here are five common costs to look out for.

 1. Higher utility bills: If contractors and builders are working in your home all day, there’s a good chance they’re constantly walking in and out the exterior doors. That wreaks havoc on your heating/cooling efficiency, so watch out for higher utility bills.

 2. Movers: It’s pretty hard to renovate a fully furnished home. You may be able to move and store most of your furniture yourself, but homeowners often have bigger pieces that require some hired help.

 3. Food: If your kitchen is being torn apart, preparing meals becomes a lot more difficult. You may be able to keep your food budget steady by switching to meals that don’t require counter space, the stove, or the oven, but don’t be surprised if you end up dining out more often.

 4. A few nights in a hotel: Depending on your renovation, there may be some nights where sleeping in your home isn’t practical, or you just need a mental break from the mess. Budget for a few nights at a hotel … or just schedule your family vacation for the worst part of the renovation.

 5. Deep cleaning: It’s one thing to clean and maintain your home after a typical week or two of living. It’s entirely different to clean up after a construction project, as sawdust and other debris can get in every nook and cranny. It may be worth your sanity to just hire cleaners.

There is a difference between the two—here’s how to get your home ready to sell.

Once you’ve decided to put your home on the market, you’re looking to sell quickly for the best possible price. One tactic that can help sell your home faster is staging.

At first, staging may seem like a real estate term that doesn’t actually mean anything. Isn’t staging just decorating? Well, not exactly …

Appeal to the masses
Your home is likely decorated to your tastes. It could be colorful and eclectic, or rugged and industrial. But when you’re staging your home, rather than appealing to a specific decorating sense, you want to furnish your home in a way that appeals to everyone—and more importantly, doesn’t turn anyone off who just isn’t into your personal style.

Tone down the personal flourishes
Buyers want to be able see themselves in a home and imagine how they’d make it their own. Unfortunately, that means less of your own style as you’re preparing for your move. Cut down on family photos, bold artwork, and unusual furniture. Do some major decluttering so the buyer can see all the space and storage opportunities. It may be sad to start removing the items that make your house a home, but it’s an important part of the process.

Mass appeal doesn’t mean “boring”
Your staged home can still be colorful, just stay away from extremes. If you paint, stick to whites, grays, or neutrals. Add flourishes of color with window treatments or accent furniture, but try to choose items that will appeal to both genders.

Call a pro
There are likely several staging companies in your area. If you need a recommendation, reach out to your trusted real estate professional.

You’re probably familiar with the traditional open house, where your real estate agent hosts an open house at your property for a few hours on the weekend, allowing prospective buyers and passersby to see the place in person.

But there’s a different kind of open house, and it can be a valuable tool for selling your home: The Broker’s Open House.

At a Broker’s Open House, your real estate agent invites other agents and industry contacts to the property, so they can view it and see if it’s right for the buyer clients they’re working with. Rather than the typical weekend hours, a Broker’s Open House is usually held during weekdays, since there’s no need to plan for buyers’ usual weekend house hunting tours, and weekdays often work better for agents’ schedules.

The event itself isn’t much different from a typical open house. Your agent will play host for a few hours, showing other real estate professionals around the property. The difference is that a Broker’s Open House can give your property more exposure—each agent at the open house can then pass along their opinion to their buyer clients.

A Broker’s Open House cuts down on the window shoppers who might not actually be in the market, so you’ll have fewer strangers wandering through your home—everyone who steps foot inside will likely be in the real state business, so it’s a more professional setting.

Smaller rooms can be difficult to decorate, because if you don’t know a few important tricks, the space can end up feeling a little claustrophobic. Here’s how you can keep a room feeling airy and spacious, even if it’s just a studio apartment or an attic.

Breathing room
Your first inclination might be to arrange all your furniture flush against the walls. Though this may add a little extra room to move through the room, it’ll make everything feel more crowded and congested. Instead, try arranging items at an angle, or pull them six inches away from the wall.

Mirrors and strategic colors
Dark paint will make the room feel smaller. Instead, opt for whites, light grays, and other light colors. A well-placed mirror will also expand the room’s appearance—think of the times you’ve been in a restaurant and a mirror made the space look twice as large.

Multi-purpose items
Look for storage everywhere—you can keep books and DVDs inside an ottoman, or store blankets in a bench or hollow coffee table. If you don’t have room for a dining table, you can invest in a coffee table with a pop-up section.

Raise your window treatments
It’s common to hang your curtain rods just a few inches above your windows, but to make the ceilings appear taller, you can hang them just a few inches below the ceiling. It can have a dramatic effect.

Swap out the sofa
The sofa is likely the biggest, most unwieldy item in your living room. What if you swapped it out for a settee or a pair of comfortable chairs? You won’t lose much in functional seating, but you’ll gain some precious space and room for foot traffic.

Research suggests that about 1 in 20 homeowners will make an insurance claim each year. So while it may seem that your monthly home insurance expenses aren’t worthwhile, the chances of needing your insurance are higher than you might think. 

There’s are countless factors that influence your insurance rates, so here are few examples—some you’ve probably considered, and some that might be surprising.

Location: Some areas are simply naturally more prone to damage than others. Potential for weather and natural disaster-related damage will factor into your insurance, as will crime rates and fire protection.

Home value: This may seem like a no-brainer at first glance, but there are some extra considerations. The value of your home and the cost to replace your home from a total loss may not be the same—it can often cost more to rebuild. 

Pets: Just like certain HOAs and neighborhoods forbid specific dog breeds, your insurance company may also increase your premiums for a specific breed. Breeds with reputations for being aggressive (fair or not) like pit bulls, German Shepherds, and rottweilers can cost you more.

Trampolines and swimming pools: All that fun comes at a price! Insurance companies see trampolines and pools as big risks for injury and even death, and that’ll affect your insurance rates.

For many people the garage is the place you mindlessly store stuff just to get it out of the way, and before you know it, you’ve got a cluttered mess on your hands. Here are five steps toward organizing your garage for good.

 1. Make a plan: What do you want you garage to be? Is it a workshop, a storage space, or a nightly place to park your car? Before you roll up your sleeves and get to work, decide on a plan for your garage’s primary use, and prioritize around that goal.

 2. Be vigilant with clutter: There might be items in your garage that you haven’t touched in years—you’ve probably even forgotten they’re in there. It’s easy to justify keeping items when you’re in the moment, but look a the big picture. If you can’t remember the last time you used an item, it’s probably ready to be thrown out, recycled, donated, or sold.

 3. Make use of vertical space: Garages often have space in the ceiling where you can hang your gear or even store some boxes. Store the rarely used items—like holiday decorations—higher up and out of the way.

 4. Keep common items accessible: On the other hand, you don’t want it to be a hassle to get to the things you use often. Create a specific place for each item that is easy to reach.

 5. Stay vigilant: Now that you garage is properly organized, be more mindful of what you’re adding to it. If there’s something new that’s important, choose a specific place for it. If it’s just junk, go through the extra effort to just get rid of it!

With all the money you pay for a home, you want to make sure you spending your hard-earned dollars on a legitimate piece of property—and that’s where a title company comes in.

When you purchase a home, a title company will research the property to ensure that you are the rightful owner. They’ll look through records for anything that might cause problems—ownership disputes, restrictions, unpaid taxes, liens, and more. Their goal is to document the chain of title and identify any issues that could become major problems down the road.

At the end of the process, the title company issues a title opinion. This is a legal document that states that the title is valid.

The title opinion is part of obtaining title insurance. The insurance protects both the owner and the lender if there is a title dispute. If another party is actually the rightful owner of the home, your title insurance protects you from financial loss.

In addition to title opinions and title insurance, title companies also handle escrow accounts and distribute money to the appropriate parties at closing. They’ll also deliver closing documents to the appropriate agencies.

Experience is important in the title business, so look for a company with a great reputation in addition to seeking the best rate. Your real estate professional can refer you to some great title companies.

There’s no more important time to work on your credit score than when you’re about to apply for a mortgage. Improving your credit can save you a ton of money—we’re talking about thousands of dollars over the life of the loan. Here are the actions you can take that will have a notable impact on your score.

Pay down your credit card balances
Credit utilization is one of the biggest factors in determining your credit score. Your credit utilization should at least be less than 30 percent of your limit, and it’s even better if you can get it below 15 percent. This rule applies to both individual cards and your overall credit limit.

It may even be worthwhile to use some of the cash funds you were planning to use for a down payment to pay off credit card balances.

Do no harm
While you certainly want to improve your score if possible, at the very least you’ll want to keep it steady. Avoid opening new lines of credit if you’re applying for a mortgage in the very near future. This will cause a hard inquiry to show up on your credit report. 

Take care of negative items
It’s good practice to check your credit report for negative items a few times a year—you can get one free report from each of the three major bureaus (Experian, Equifax, and TransUnion) per year.

If you find any negative items (collections, late payments, etc.), write a letter to the original creditor. Explain the circumstances that led to the negative item, and request that it be removed from your report. It can be surprisingly effective, and removing a negative item will improve your credit score in a hurry. You can find some good templates for a request letter online.

Is it worthwhile to improve your property, or is moving a better choice?

Unless you built a custom home, you probably have a long list of things you’d like to improve in your current home. Browsing online listings might get you in the mood to upgrade to a new home, or you might be thinking about renovating your current home after binging on HGTV. The answer to renovation vs. relocation depends greatly on what you’re trying to fix.

Thinking about a new kitchen?
If you’re dreaming of a chef’s kitchen with new appliances and beautiful cabinets, renovating your own kitchen gives you incredible ROI and is less costly than moving. You’ll increase the value of your own home if you ever decide to sell, and there’s a great sense of accomplishment that comes with completing a custom renovation.

Need more space?
If you’re running low on bedrooms, there may not be a lot of options. Converting an existing room to a bedroom doesn’t create any new space. If you’re in a condo, an addition is probably impossible. And additions can be expensive even if it’s a possibility. Moving is usually the best option.

If the neighborhood isn’t ideal
You may have seen some potential for your neighborhood when you first moved there, but perhaps it still isn’t welcoming the shops and restaurants you expected. If that’s the case, consider moving. There’s no sense in waiting years for the neighborhood to improve, especially if you can move to a house in the same price range in a more preferred part of the city.