7 Reasons to Work With a REALTOR®

7 Reasons to Work With a REALTOR®

REALTORS® aren’t just agents. They’re professional members of the National Association of REALTORS® and subscribe to its strict code of ethics. This is the REALTOR® difference for home buyers:

1. Ethical treatment. Every REALTOR® must adhere to a strict code of ethics, which is based on professionalism and protection of the public. As a REALTOR®’s client, you can expect honest and ethical treatment in all transaction-related matters. The first obligation is to you, the client.

2. An expert guide. Buying a home usually requires dozens of forms, reports, disclosures, and other technical documents. A knowledgeable expert will help you prepare the best deal, and avoid delays or costly mistakes. Also, there’s a lot of jargon involved, so you want to work with a professional who can speak the language.

3. Objective information and opinions. REALTORS® can provide local information on utilities, zoning, schools, and more. They also have objective information about each property. REALTORs® can use that data to help you determine if the property has what you need. By understanding both your needs and search area, they can also point out neighborhoods you don’t know much about but that might suit your needs better than you’d thought.

4. Expanded search power. Sometimes properties are available but not actively advertised. A REALTOR® can help you find opportunities not listed on home search sites and can help you avoid out-of-date listings that might be showing up as available online but are no longer on the market.

5. Negotiation knowledge. There are many factors up for discussion in a deal. A REALTOR® will look at every angle from your perspective, including crafting a purchase agreement that allows enough time for you to complete inspections and investigations of the property before you are bound to complete the purchase.

6. Up-to-date experience. Most people buy only a few homes in their lifetime, usually with quite a few years in between each purchase. Even if you’ve done it before, laws and regulations change. REALTORS® handle hundreds of transactions over the course of their career.

7. Your rock during emotional moments. A home is so much more than four walls and a roof. And for most people, property represents the biggest purchase they’ll ever make. Having a concerned, but objective, third party helps you stay focused on the issues most important to you.

Souce: RealtorMag
http://realtormag.realtor.org/sales-and-marketing/handouts-for-customers/for-buyers/7-reasons-work-realtor

Don’t Be Shocked by These Hidden Costs of Buying a Home

When you’re thinking about buying your first home, it might seem like it’s all about the down payment. You save for years to have it, and you base a good portion of your home-buying budget on it.

Next comes the mortgage. How much will you owe each month in principal, interest, taxes, and insurance? How does that compare with how much you currently pay as a renter?

If you’ve figured out how to tackle those two huge expenses, you might think you have it made in the shade. With lemonade! But the hard truth is that those are far from the only expenses you’ll incur when you buy a house.

In fact, there are lots of hidden costs to anticipate. These fees might affect your overall budget, timeline for buying, and what kind of home you want to buy. It’s important to consider them early in the process, before you fall in love with a place you can’t afford.

Expenses you’ll learn about while home shopping
1. Closing costs and other fees

The house has to be appraised to find its fair market value, the property records must be checked to make sure the seller has full rights to sell you the home, the real estate agent has to be paid for her work, and so on.

The seller might pick up some of these costs, but you’ll have to shoulder some of the burden. We’re talking about fees that, all together, can add up to a few thousand dollars. And you can expect closing costs to run from 2% to 5% of your home’s value.

Your mortgage lender must explain all the fees to you, so if anything confuses you, ask for more information.

2. Home inspection

This is a must to make sure you’re not buying a home with major structural issues. A home inspection will take a few hours and cost up to $500, but it can save you a lot of grief in the future.

3. Home warranty

If you’re buying an older home with appliances that are no longer covered by manufacturer warranties, getting a home warranty could be a good call. They generally cost a few hundred dollars per year and protect things such as kitchen appliances, ceiling and exhaust fans, plumbing, the furnace, and the sump pump. Inevitably, you’ll face a major repair on your new home, so consider whether a home warranty will save you from that expense.

Expenses you’ll encounter after you move in
Owning a home is full of hidden costs. Some cost you actual money, while others cost you time, energy, and happiness (which, let’s face it, also have an equivalent in money!). So even though you might not have to deal with these expenses until after you move in, you should definitely factor them into your decision.

1. HOA and condo fees

If your new home is a condo, or part of a community with a homeowners association, you’ll pay a monthly fee toward maintenance of shared community features. The more amenities you get (e.g., a pool, doorman, roof deck, or community center), the more you’ll pay.

The upside: Your HOA might care for things that save you money and time, like maintaining the landscaping around your townhouse.

If you’re considering a condo, ask for information about the HOA’s budget and cash reserves. If it decides to make a repair to the building that’s not part of its annual budget, you and your neighbors could be slapped with a special assessment to raise money for the unanticipated project—and this could cost you a few thousand bucks!

2. Maintenance, repairs, renovations, and redecorating

Maintaining your home—e.g., cleaning windows and gutters, keeping up the landscaping, and making small updates—typically costs about 1% of your home’s value each year. And that’s not including large unexpected repairs, which can get pricey.

Plus, once you move into your new home, you’re going to want to put your stamp on it.

“People always buy new furniture when they move. The apartment furniture isn’t good enough for the new house,” says Sophia Bera, a financial planner and founder of Gen Y Planning. “This can be really expensive, and I’ve known a few people who’ve financed the furniture, but then they spend more than they were planning on.”

You might also opt to renovate part of the house right when you move in; if that’s the case, make sure to take that into account when considering what home you can afford.

3. Utilities

Those first few utility bills might shock you. For one thing, renters often don’t pay separately for water, trash pickup, and sewer. And if your new home is larger than your previous rental, you’ll pay considerably more for electricity and gas.

4. Commuting

If your daily commute changes, you might need to buy a new car, or pay more to maintain and fuel the car you have.

A longer commute also bleeds into your free time. Don’t underestimate how much you’ll be affected by “just” another 15 minutes each way.

5. Community

Sometimes finding a home that has the amenities you want for the price you can afford means moving to a totally different part of town—and leaving your neighborhood friends behind.

Bera, who opted to spend a bit more to live near friends when she recently moved to Austin, TX, counsels her financial planning clients who are buying their first homes. All too often, people don’t consider the effect of moving miles away for the perfect house.

“The big thing I see is how much it changes their lifestyle. It might not be as convenient to do the activities they love or see their close friends, so they miss out on a lot of these things.” she said. “They have to create a whole new community. One thing we often don’t ask ourselves is: What is the price of community?”

Source: Realtor.com, Sara Rathner
http://www.realtor.com/advice/buy/hidden-costs-of-buying-a-home/?iid=rdc_news_hp_carousel_theLatest

Not Sure How to Price Your Home? Expert Strategies Help You Hit the Spot

You don’t need to be Bob Barker to know when the price just isn’t right. Just ask Candace Talmadge. She originally listed her Lancaster, Texas, home for $129,000, but “eventually had to accept the market reality” and chop $4,000 off the price.

The home’s location proved challenging: Buyers were either turned off by the area — a lower-income neighborhood south of Dallas — or unable to afford the home.

“Sellers have to keep in mind the location,” says Talmadge. “Who are going to be the likely buyers?”

Home pricing is more of a science than an art, but many homeowners price with their heartstrings instead of cold, hard data. Here’s why crunching the numbers is always the better route to an accurate home price — as well as what can happen when home sellers overlook those all important data points.

Related: 5 Things You Need to Ask Yourself Before Turning Down a Low-Ball Offer

The Pitfalls of Overpricing

Homeowners often think that it’s OK to overprice at first, because — who knows? — maybe you’ll just get what you’re asking for. Although you can certainly lower an inflated price later, you’ll sacrifice a lot in the process. The most obvious damage: A house that remains on the market for months can prevent you from moving into your dream home. Already purchased that next home? You might saddle yourself with two mortgages.

“You lose a lot of time and money if you don’t price it right,” says Norma Newgent, an agent with Area Pro Realty in Tampa, Fla.

And worse: Continually lowering the price could turn off potential buyers who might start wondering just what is wrong with your home.

“Buyers are smart and educated,” says Lisa Hjorten of Marketplace Sotheby’s International Realty in Redmond, Wash. “You’re probably going to lose them.”

The Pricing Traps

It’s easy for homeowners to stumble into two common traps:

1.  Conflating actual value with sentimental value — how much they assume their home’s worth because they lived there and loved the time they spent there.

2.  Assuming renovations should result in a dollar-for-dollar increase in the selling price — or more.

“Many homeowners think, ‘Of course my home is worth a bazillion dollars,’” says Newgent. If they put in a few thousand dollars worth of new flooring, for example, they might overestimate the upgrade’s impact on the home’s value into the tens of thousands.

Talmadge’s Texas home came with a built-in renovation trap: It was already the nicest home in the area, making it harder to sell. Major additions had inflated the square footage — and the price, according to one appraiser — without accounting for the surrounding neighborhood. That created a disconnect for buyers: Wealthier ones who might be interested in the upgraded home disliked the neighborhood, and less affluent buyers couldn’t afford the asking price.

“Don’t buy the nicest home on the block” is common real estate advice for this reason.

That’s not to say that renovations aren’t worth it. You want to enjoy your home while you’re in it, right? Smart renovations make your home more comfortable and functional but should typically reflect the neighborhood. A REALTOR® can help you understand what certain upgrades can recoup when you sell and which appeal to buyers.

Another culprit for many a mispriced home is online tools, like Zillow’s “Zestimate,” that prescribe an estimated market value based on local data.

The estimate is often wildly inaccurate. A Virginia-area real estate company, McEnearney & Associates, has compared actual sold prices with predicted online estimates for several hundred homes in the area for the past few years and concluded the predictions failed half of the time.

The Right Stats for the Right Price

The best pricing strategy? Consult a real estate agent, who will use something called comps (also known as “comparable sales”) to determine the appropriate listing price. They’re not just looking at your neighbors; they’re seeking out near-identical homes with similar floor plans, square footage, and amenities that sold in the last few months.

Once they’ve assembled a list of similar homes (and the real prices buyers paid), they can make an accurate estimate of what you can expect to receive for your home. If a three-bedroom bungalow with granite countertops and a walk-out basement down the block sold for $359,000, expecting more from your own three-bedroom bungalow with granite countertops and a walk-out basement is a pipe dream.

After crunching the data, they’ll work with you to determine a fair price that’ll entice buyers. The number might be less than you hope and expect, but listing your home correctly — not idealistically — is a sure way to avoid the aches and pains of a long, drawn-out listing that just won’t sell.

Knowing When the Price is Too High

Once your home is on the market, you’ll start accumulating another set of data that will serve as the ultimate price test: how buyers react.

Agent Hjorten says there’s an easy way to tell if you’ve priced too high: “If we have no showings, it’s way too high. Lots of showings and no offer means you’ve marketed well — but it’s overpriced once people get inside.”

Talmadge didn’t struggle with showings. She says a number of people were interested in the home, but not enough at the price. In the end, Talmadge sold her home for $125,000, with a $5,000 seller’s assist, a discount on the cost of the home applied directly to closing costs.

“It all boils down to location, location, location. In [another] neighborhood, our house might well have sold for well over $130,000,” Talmadge says.

When it comes to finding a buyer, pricing your home according to data — and the right data, at that — is crucial to making the sale.

Source: Houselogic.com, Jamie Wiebe
https://www.houselogic.com/sell/how-much-is-my-home-worth/?cid=pm_ps_google_cac

13 BRUTALLY HONEST REASONS YOU CAN'T AFFORD TO SELL YOUR HOUSE ON YOUR OWN

Thinking about selling your house without a real estate agent? It's a choice some people make, mainly to try to save some money. But the number of people who list their home For Sale By Owner is in decline. "Eight percent of home sellers chose to list themselves - a record low of for-sale-by-owner transactions," according to a National Association of REALTORS® (NAR) survey.

So why isn't it a good idea to go it alone? Let us count the ways.

1. Because you're not thinking with your head

No matter how level-headed you think you are, selling your home is emotional. When someone comes in with a lowball offer or offends your decorating style, will you be able to remain professional, or are the cops going to have to get involved because you punched a guy?

2. Because you think your house looks fine as is

And it may, for everyday living. But a "lived-in" house is not going to wow buyers. Beyond the obvious tips of making your house sparkling clean, a Realtor will help you declutter and depersonalize to get it in selling shape.

3. Because you clearly have no sense of smell

If you did, you'd know your house smells like crap. Cat crap, to be exact. Or maybe it's just musty, which could give potential buyers the idea that there are water issues (which there may very well be). A real estate agent would undoubtedly make you address any odor issues, along with a whole host of other staging stuff to make your place look - and smell - good.

4. Because Formica countertops went out in the ‘60s

Actually, were they ever really in? A dated kitchen isn't just going to affect your sales price. It may keep you from getting offers altogether. The rule about kitchens and bathrooms selling homes is still true; even small but impactful changes can help substantially, which Realtors are keenly aware of. Trying to save a buck by listing a home yourself and not making even small changes can hurt you in the end.

5. Because you have a view of the freeway

Think it's gonna be easy to distract from the eyesore down the street or the overwhelming noise in the backyard? Nope. But an agent will give it their all in ways you may not have thought of or be skilled in, using smart pricing and marketing strategies to deflect, downplay, or refocus attention on other, more attractive elements of the home.

6. Because you don't know thousands of people. And you're not connected to hundreds of agents.

That's the difference an agent can make in using their network to market your home far and wide and getting it in front of potential buyers.

7. Because you need to come down $20k from your "dream" sales price

Then come down another $10k. Then you might actually be close to market value. This goes back to that "emotional" process thing. Your home isn't worth the memories you made there, or the work you put in. Market value is market value, and a real estate agent will have a much easier time establishing that and sticking to it.

8. Because what you call charming and eclectic may just be seen by buyers as tiny and outdated.

You may not be able to get real about the reality of your home. But your Realtor will.

9. Because the only offer you got was $30,000 below your asking price

Know how to proceed? What if you play hardball and lose the only bite you've had? What if you agree and always regret the idea that you left money on the table?

10. Because the inspection report showed all kinds of unpleasant stuff, and now the buyer wants a big, fat credit

It's an agent's job to handle the multiple unpleasant details that would make a regular person run toward a quiet space to roll up into the fetal position. The fact that you don't have to do any of the negotiating - not on sales price to begin with, not on whether or not you can include your master bedroom furniture, set of luggage, lawn chairs, and collection of vintage cookbooks in the home sale, and not on who's going to pay to fix the leaky roof and the cracked living room window - is well worth the commission you pay.

11. That overgrown mess you call a front yard

Curb appeal is critical to getting your home sold. A real estate agent will help you focus on the simple steps to get it in good shape. Fail to address this key area and those coming to see your home may just pass on by.

12. You

Yes, you. You could be the No. 1 deterrent to getting your house sold, starting with the house tour. Shadowing potential buyers while they check out the house, pestering them with questions about how they like it, interrupting their agent to add in inconsequential details - all of these things may turn off buyers and send them off to the next home.

Agents know what to emphasize and how to give potential buyers space. Crowding and/or annoying them may be enough to make them walk. After all, if dealing with you during the home tour is a drag, who's going to want to deal with that during the escrow?

13. And the most important reason of all: the money.

"In reality, homes sold by the owner make less money overall," according to the NAR.

By the numbers: "The median selling price for all FSBO homes was $210,000 last year. When the buyer knew the seller in FSBO sales, the number sinks to the median selling price of $151,900," they said. "However, homes that were sold with the assistance of an agent had a median selling price of $249,000 -- nearly $40,000 more for the typical home sale."

Still want to do it on your own?

Source: RealtyTimes, Jaymi Naciri
http://realtytimes.com/consumeradvice/sellersadvice1/item/44489-20160512-13-brutally-honest-reasons-you-can-t-afford-to-sell-your-house-on-your-own

What to Do When Your Landlord Doesn’t Want to Make Repairs

One of the great things about renting is that when your faucet leaks or the buzzer breaks, you’re not responsible for the repairs. Your landlord is—at least, in theory. While most landlords want to keep their tenants happy, there are plenty who neglect their properties due to the expense of maintenance or sheer laziness.

“The law obligates landlords to keep their rentals in habitable conditions and to provide essential services,” says Shaolaine Loving, a landlord-tenant attorney in Las Vegas. “Things like heat, running water, gas, and functional door locks are examples of essential services. Issues that affect habitability can include insects, faulty plumbing, and mold.”

Never fear—there are ways to push a landlord to fulfill his obligation to keep your place in top shape. Check them out.

Review the terms of your rental agreement

Your first impulse may be to pick up the phone to relay the problem, but read your lease before initiating contact with your landlord, so you know what to expect.

According to Loving, many leases outline the responsibilities of landlord and tenant, and the specific protocol for repairs. Tenants may have a certain time frame to make complaints (or are responsible if the problem worsens due to lack of notification), and landlords must respond within a certain time frame.

“For instance, in Nevada, the response time for essential problems is 48 hours,” says Loving. What’s more, some landlords will accept only requests sent through email, others by postal mail.

Craft the right complaint

In your complaint, describe the issue in as much detail as possible: the nature of the problem, the date it occurred, and why it happened. Then, ask your landlord to reply in accordance to the legal timeline.

It also doesn’t hurt to include photos of the damage and perhaps even a list of witnesses who can attest to the damage—just make sure they’re unbiased third parties (i.e., no relatives), advises Chantay Bridges, a real estate agent at TruLine Realty in Beverly Hills, CA.

Keeping a paper trail is also key, so enable your email server’s “read receipt” or “delivery receipt” functions to track whether the message was opened or received. Or send a certified letter, which requires the recipient to sign upon delivery. (Make sure to keep a copy of whatever you send.) If you visit your landlord in person, ask him to sign a receipt acknowledging the request.

Ask for outside help

Let’s say you don’t hear back from your landlord. You could continue sending letters in order to build your case, but if those don’t work, eventually you’ll need to take matters into your own hands.

Contact your local government to request that a health or building inspector come and assess your home and if any codes have been violated. If so, the inspector can then send your landlord a “Notice and Order” with a time frame for the flaw(s) to be fixed. Some landlords do ignore code violations, but having your complaint on file helps if you ultimately take the matter to small-claims court.

Fix the problem yourself

Landlords often have contracts with repair services, or warranties to fall back on, but offering to pay for the repair yourself and deduct the cost from next month’s rent is an option if you just want to get things moving, says Dan Laufer, co-founder of RentLingo.com, an apartment search service. If your landlord is just not the efficient type, he will appreciate your handling the matter.

“You could even suggest a mutually agreed-upon cost, or to use a specific vendor,” says Laufer.

Don’t use it as an excuse to withhold rent

No matter how tense the situation gets, flat-out withholding rent is rarely the right solution, since you could ruin your rental payment history and potentially provide your landlord with a reason to evict you. However, says Loving, withholding rent is a viable option in some states.

“You do risk facing eviction, but the same could be true of making repairs yourself and deducting from the rent,” she points out. “In both scenarios, you’re not paying the full rent.”

Breaking your lease is also dicey, as your landlord could bill you for early termination penalties or pocket your security deposit.

“As long as you keep your written evidence of communications and noncompliance from the landlord, you have a chance to prove your case,” says Loving. Just be sure to save the money you withhold. If you lose, you’ll probably have to pay it back.

Source: Realtor.com, Elise Sole
http://www.realtor.com/advice/rent/help-my-landlord-wont-make-repairs-what-to-do/?iid=rdc_news_hp_carousel_theLatest

Should I Use the Value of My House as My Emergency Fund?

Q. I don’t have an emergency fund, but I have always felt very secure knowing I have a zero-balance, low-interest home equity line of credit that would allow me to get, on an emergency basis, close to three times my annual salary. Is this a legitimate substitute for a separate emergency fund? — Curious

A. A home equity line of credit (HELOC) is one kind of backup plan, but it’s not a foolproof kind of backup plan.

A traditional emergency fund covers anywhere from three months to a year’s worth of expenses, depending on your personal needs. The money is usually kept in a safe and liquid account.

Chip Wieczorek, a certified financial planner with Tradition Capital Management in Summit, NJ, said it’s not advisable or realistic to keep two or three years of living expenses in a savings account with a near 0% yield.

However, he said, home equity lines have pitfalls.

“I advise clients to maintain three to six months of living expenses in a savings account in addition to establishing a home equity line of credit for large unexpected expenses,” he said.

Wieczorek said when using a line of credit as an emergency fund, you must be aware that lines have a draw period and a principal pay down period.

A typical HELOC has a seven- to 10-year draw period during which the client can access funds and make interest-only payments based on a 20- to 30-year amortization schedule. After the draw period expires, funds can no longer be drawn from the line of credit and both principal and interest payments are required.

“You may think you have two to three years of salary accessible from your line of credit, but if the draw period expires, your emergency fund has dried up,” Wieczorek said. “Most people do not realize this and should review their HELOC terms on an annual basis.”

Also keep in mind that home equity lines are variable and can be frozen by a bank. The interest rate for the line is generally based on an index such as the prime rate, Wieczorek said.

“This means that the interest rate can increase over time, which would increase your monthly payment as well,” he said.

Also, in 2008, major home equity lenders began informing borrowers that their home equity lines of credit had been frozen or restricted.

“Falling housing prices led to reduced equity for borrowers, which was perceived as an increased risk of foreclosure in the eyes of lenders,” he said. “Courts have held that a bank may freeze a HELOC in instances where a home’s value decreases substantially.”

Jerry Lynch, a certified financial planner with JFL Total Wealth Management in Boonton, also referenced 2008 as a problem for many home equity line borrowers.

“It is very possible that the condition that requires you to tap into that credit line—you lost your job or got hurt—may make the bank close the credit line,” he said.

Lynch said a mortgage and a home equity line is not a loan on a home, but instead is a loan on your income.

“If that can be shut down, and that was your plan, you need a better plan,” he said. “Plan A never works. What’s your Plan B and C?”

Consider going a more traditional route over time and build the kind of emergency fund you can always count on.

[Editor’s Note: If you plan on opening a home equity line of credit, make sure your credit score is in good shape, as it will be a major factor in determining the interest rate you’ll pay. You can check your credit scores for free on Credit.com.]

Source: Realtor.com, Karin Price Mueller
http://www.realtor.com/advice/finance/should-i-use-the-value-of-my-house-as-my-emergency-fund/?iid=rdc_news_hp_carousel_theLatest

VIDEO - 5 Reasons Your Home Isn't Selling

5 Reasons Your Home Isn't Selling

5 Tax Benefits of Owning a Second Home

There are tons of benefits that come with owning a second home: novelty and adventure, a place to escape and unwind, an opportunity to create memories that last a lifetime, a valuable tool to make vacation-craving friends like you a whole lot (for better or for worse).

But there’s another benefit that’s often overlooked: the tax breaks.

You already know that owning a home usually offers some tax deductions. But what if you own two? Or three? What if you’re a regular Donald Trump (back in his real estate, meat magnate heyday, of course)?

Since we know you won’t mind a little extra cash to spend while soaking in your surroundings during your next getaway, we thought we’d tell you how to reap the fruits of your second-home purchase.

1. Mortgage interest—yes, again

When it comes to owning a second home, the interest on your mortgage is deductible. The same rules that come with writing off mortgage interest for your first home apply to your second.

In fact, you can write off as much as 100% of the interest you pay on up to $1 million of debt, which includes total debt taken on to pay for both homes, as well as money spent on improving the properties. (That’s not up to $1 million for each property—just up to $1 million in total.)

2. Home improvements

Is your second home a fixer-upper? If you want to spend the off-season making improvements to your hideaway, you can deduct the interest on a home equity loan or line of credit.

But there are a couple of exceptions.

For starters, there will be a limit on the amount you can deduct if the home equity loan on your main or second home is more than $50,000 if filing single or $100,000 if married or filing jointly.

Second, the amount you can deduct has a limit if the mortgage is more than the fair market value of the home, says Gil Charney, director of The Tax Institute at H&R Block.

For example, let’s say a taxpayer has a mortgage of $220,000 and takes out a home equity loan of $65,000. The property’s fair market value is $275,000. Since the difference between the fair market value and the mortgage is $55,000, then $55,000 of the home equity loan can be deducted, not the full $65,000.

3. Property taxes

You can also deduct your second home’s property taxes, which are based on the assessed value of the home. That’s good news. Even better news? Unlike the mortgage interest tax deduction, there’s no dollar limit on the amount of real estate taxes that can be deducted on any number of homes owned by the taxpayer.

But beware: Taxpayers who can afford two homes are likely to land in a higher tax bracket—which means slimmer pickings for tax savings. For example, in 2016, a married couple whose gross income exceeds $311,300 would have limits on the types of itemized deductions they could take.

4. Renting out your home

If you rent out your second home for 14 days or less over the course of a year, that rental income is tax-free—and there’s no limit to what you can charge per day or week. Score!

But if you’re hoping to put your secondary digs on Airbnb or another rental site for more than 14 days during the year, be prepared to do some heavy math come tax time.

You’ll want to figure out the number of days you rent your home and divide that by the total number of days your home was used—whether it was you or a renter staying there. (The total number of days that the home was vacant doesn’t fall into this equation.)

For instance, let’s say you rented out your vacation home for 30 days within a year, and vacationed in your home for 90 days.

We’ll divide 30 (the days you rented it out) by 120 (the total number of days the home was used). The result: 25% of your rental-related expenses—which could range from utilities to the cost of a property manager—can be deducted. Now, if your home is losing value, that same percentage (in this example, 25%) of depreciation costs can also be deducted.

Here’s the caveat, Charney explains: Depreciation costs can be deducted only if there is rental income remaining after taking into account other deductions, such as mortgage interest, property taxes, and direct expenses tied to renting your home—like agent fees or advertising.

5. When it’s time to sell

Maybe you bought a far-off hideaway that you’re lucky to visit a couple of times a year. Or perhaps your vacation home is just a quick drive away, and you spend every possible moment there.

If it’s the latter—and you don’t already know which of your homes is your primary residence and which is the second home—now’s the time to figure it out. Distinguishing between the two can have big tax implications when it comes time to sell.

That’s because a capital gain of up to $250,000 (or $500,000 for taxpayers who are married/joint filers) on the sale of the principal residence may be excluded from taxable income.

Your principal—or primary—residence is the home you used most during the five years prior to the sale. But other factors—such as your job’s location, voter registration address, and banking location—could also come into play. Among other requirements, you must own and use that principal residence for at least two of the five years before the home is sold.

We know—that’s a lot of heavy stuff to take in. But you knew your second home would pay off in more ways than one, right? Now, hurry up and file your tax return—so you can escape to your happy place and forget about burdensome things. Like taxes.

Source: Realtor.com, Renee Morad
http://www.realtor.com/advice/finance/second-home-tax-benefits/?iid=rdc_news_hp_carousel_theLatest

7 Massive Mistakes People Make When They Move

Whether you struck oil—black gold, Texas tea—and are moving to posh Southern California (that’s a reference to “The Beverly Hillbillies,” you millennials!) or maybe you’re making a cross-country migration to work for Snapchat (that’s a popular messaging app, boomers!), there’s a lot to think about when pulling up stakes and settling in a new place. Sure, it’s exciting, but a whole lot can go wrong, too.

So no matter your reason for relocating, beware these top mistakes people make. Check out this list, and brace yourself for some tough decisions.

Mistake No. 1: Renting out your old home badly…

Sure, it seems smart to hold on to your old place just in case. It’s also nice to collect rent! But that’s the best-case scenario; you need to also consider the worst.

“Renting [out] a home can be a great investment, if you know what you’re doing,” says real estate investor Mark Ferguson of Investfourmore.com. “The problem is, many people have no idea how to manage renting a home—like collecting rent and checking on tenants—or [to] anticipate the expenses. Landlords have to account for maintenance and vacancies, not just their mortgage payment, so most houses won’t make money as rentals.”

So make sure you have a plan to manage your home remotely, and that you can afford to keep paying the mortgage in between tenants.

Mistake No. 2: Or selling it prematurely

Robert Palmer, host of the syndicated Saving Thousands Radio Network, talks up the other side of the issue.

“Selling years from now is going to net you more money than selling today, and someone else will have made the [mortgage] payments for you,” he says. “This helps you build wealth.”

The key is the right tenant, like a friend or somebody you know. Bottom line: If your home is in a hot market like San Francisco, Los Angeles, or New York City, it might be impossible to buy back into the market should you ever decide to return to it. Which happens more than you might think.

“In L.A., it’s not uncommon for rental amounts to be more than the mortgage payments,” says Terra Andersen, director of Internet marketing at apartment-rental company NMS Properties. In that case, it might be more wise to rent out your home, as a revenue stream and a fallback option.

Mistake No. 3: Muddling a mortgage on a new home

If you’re relocating for a new job and want to buy a home before you start working, be sure to structure your employment agreement to avoid issues with lenders. While an executed offer of employment can serve as documentation to qualify for a new mortgage, many lenders will require proof that all the offer contingencies have been met as well, says Mary Catchur, president of Marimark Mortgage.

A solution is to meet with a mortgage loan originator licensed in the state you’re relocating to and develop a plan to fulfill those requirements, “preferably before finalizing the new job offer,” says Catchur.

Mistake No. 4: Storing stuff with plans to move it someday

Tempted to leave behind lots of your possessions to transport months or maybe years after you’re settled? If you’re certain a relocation is permanent, it’s best to move everything right away. The reason: “You can take the moving expenses adjustment on your tax return only for expenses paid in the same tax year as your move,” says Crystal Stranger, president of 1st Tax and the author of “The Small Business Tax Guide.”

Plus, “from a realistic standpoint, it’s easy to forget about an item in storage,” points out Christine Haney, executive vice president of Global Relocation at Elliman Real Estate. “When my father was transferred to Europe, my parents stored their 1970s gold, brown, and green furniture. When they returned eight years later, their now-retro furniture had no place in their new home. It did provide a good laugh for all—or tears, once they discovered how much money they had spent in the long run!”

Mistake No. 5: Expecting your possessions to arrive ASAP

And even if you do pack up and send off everything all at once, don’t push it too close to the day you start a new job or endeavor, expecting all your possessions to arrive at one time.

“It can take a few days, if not a week or two, for all your belongings to arrive at your new home, due to weather or road shutdowns,” says Ryan Carrigan, co-founder of moveBuddha. “Many people end up having to buy new work clothes, school supplies, or basic kitchen items” when they show up at a home well before the moving truck does. Pack a starter kit with whatever essentials you need for a week, and always keep important documents with you.

Mistake No. 6: Not getting schooled on schools

“Some people move into a district without checking out the schools,” says Alina Adams, who works in school admissions in Manhattan. What’s worse, she says, is when people move to a neighborhood with a great school without realizing that it has no more room. So play it safe: Call the school district or private school you want to find out if you can enroll your child.

Mistake No. 7: Trying to arrange your new home exactly like your last

Often relocaters “try to replicate the exact same old living environment in a new area,” says Haney.

“As families try to mitigate the impact on the changes that any move can bring, sometimes this can actually add to the stress, especially when the former lifestyle can’t be replicated. Further, it takes away from experiencing new cultures and learning about new areas. The most successful moves I’ve seen is when families embrace the change.” Welcome a new environment to go with your new move. You’ll be glad you did.

Source: Realtor.com, Margaret Heidenry
http://www.realtor.com/advice/move/mistakes-people-make-relocate/?iid=rdc_news_hp_carousel_theLatest

House Flipping: A Guide For Success

Flipping a house means buying a home with the intention of fixing it up and selling it within six months for a profit. Americans flipped 26,947 single-family homes in Q3 2014, accounting for 4 percent of all home sales in that period, according to real estate data firm Realtytrac. The average gross return for investors was $75,990 per home, up 2 percent from Q2.

Flipping houses can be profitable, particularly when home values are rising and interest rates remain at historically low levels. The Federal Housing Administration stopped enforcing anti-flipping regulations—which prohibited insuring any home for less than 90 days—in 2010. If you're looking to get into the home flipping business, follow these four guidelines for the best chance of success.

Build a Bankroll

Everything in life requires money, and house flipping is no exception. You could take out loans to buy properties, but then you are just creating debt in the hopes of making money. A smart house flipper who wants to profit immediately will often use his or her own money.

The best way to build a bankroll is by saving over time. Consider selling your own home if the proceeds will pay off the mortgage and leave you with enough to get started. Those currently receiving regular payments from a structured settlement or annuity can consider selling their future payments to a company like J.G. Wentworth for a lump sum of cash now. Make sacrifices like selling off an extra vehicle, disconnecting cable television and giving up the $5 lattes in the morning to pad your bankroll further.

Buy at Discount

You'll make the most money if you buy a house for less than its actual value at the time of purchase. The best way to do this is by seeking out motivated sellers. These are people who need to sell quickly to relocate for a job or simply need to make fast money.

Use your social media networks to generate referrals. Inform friends and followers that you are looking to buy properties. Knocking on doors in prime neighborhoods can also generate leads—target homes with "for sale" signs and distressed properties that appear neglected.

Location, Location

The total value of all homes in the U.S. was $27.5 trillion at the end of 2014, according to data compiled by Zillow. That represents a 6.7 percent increase from 2013 and the third consecutive year of positive gains. But certain markets are doing even better.

Miami, Atlanta, Houston, Orlando and Las Vegas experienced the largest gains for 2014, with each up at least 11.5 percent on the year. These markets offer the largest margin for error for those flipping homes, particularly with a major housing market correction being predicted by several economists for 2015. This is mostly due to the Federal Reserve ceasing its quantitative easing program and no longer artificially inflating the markets.

A good rule of thumb when buying in areas that experienced low or negative year-over-year home value change (i.e., Indianapolis and Phoenix) is to only purchase homes at 10 percent or more below current market value.

DIY Where Possible

You'll likely need to hire plumbers, electricians and other contractors to tackle major home improvements. But the more you do yourself, the higher your profits will be. You and a few friends can install new sinks and countertops and even shingle a roof. Youtube has hundreds of instructional videos that cover everything from replacing water heaters to installing shower faucets. Creative landscaping can increase the value of a property by 13 percent, according to a study by Virginia Tech University. The DIY Network has several ideas for easy landscaping projects that anybody with a little ambition can complete.

House flipping is a cyclical endeavor that is only profitable when economic conditions are positive. Now is a great time to get started.

Source: RealtyTimes
http://realtytimes.com/consumeradvice/buyersadvice1/item/42438-20160219-house-flipping-a-guide-for-success

The Pros and Cons of Merging Finances

Seeing how it is Valentines Day weekend, I thought this article from Zillow might give some food for thought to all you couples out there.



Whether you’re a newlywed or have recently moved in with your significant other, you two have a lot to decide about the best way to handle household matters. Figuring out how you’ll divide laundry duties, grocery shopping and other mundane responsibilities is a piece of cake compared to the big question: finances.

If you’re thinking about combining your finances, here are a few pros and cons to consider.

Pros

Teamwork
If you’re on the same page, with your short- and long-term financial goals synced up, and financial priorities fully aligned, there’s nothing more fulfilling than knowing you’re in this together via a complete financial union.

By combining all your assets and liabilities, you’re looking beyond your personal wants and needs, and ultimately making the commitment to succeed or fail — together, as a unit.

Simplicity
One of the benefits of joining accounts is that it makes bill paying and record keeping a whole lot easier (particularly if you’ve established a budget).

Furthermore, combining your loan accounts, such as credit cards, could help you get additional loans in the future.

And if you’re making consistent, timely payments, both of your credit scores will improve. If you had kept that credit account separate, only one of you would have the benefit of a higher score, which could hurt you down the road when you apply for additional credit.

Taxes
Sure, filing separate returns may be beneficial in some instances. (For example, if one spouse has large medical bills and can meet the deduction threshold by considering only his or her income.)

But joint filing saves time, and possibly money, too — particularly if you both work and one of you makes considerably more than the other. Combining incomes could bring the higher earnings into a lower tax bracket.

Also, some tax credits are only available to a married couple when they file jointly. Talk to your accountant for additional information about minimizing the tax bite.

Cons

Attitudes
Some couples may not agree on certain issues, like creating a spending/saving plan, setting retirement goals, or even how much debt they should carry. After all, opposites do attract, and in many relationships, there is, in fact, a spender and a saver.

If your financial philosophies don’t align, and you’re combining your financial life with someone who has vastly different expectations, goals, systems, ideals and habits, this could bring challenges and unwelcome relationship conflict.

Dependence
If you’ve been managing your money on your own for years, and have been relatively successful in doing so (from choosing your 401K funds to setting a budget to planning a vacation), you may not want to relinquish your financial autonomy.

Sure, there may be more bookkeeping for you to do if you keep your finances separate, and opt for more of a yours/mine/ours account type arrangement (commonly referred to as the “three pot system”), but it may ultimately provide you with the independence and comfort you desire.

Disentangling
You may be in la la land now, but what happens if the relationship doesn’t work out in the long run? Joint mortgages, credit cards, and bank accounts can be very difficult to separate, even with a formal court-ordered divorce decree.

Souce: Zillow Blog, Vera Gibbons
http://www.zillow.com/blog/pros-cons-merging-finances-192186/

The Nightmare Next Door: What To Do When Your Neighbor Is a Nuisance

The animals that live in the house across the street bark incessantly. The people two doors down play their music so loud you now know all the lyrics to every Kendrick Lamar song ever written. And something, presumably a dog (you hope) keeps leaving presents on your lawn. Annoyances like these can make it unpleasant to live in your neighborhood. And, they can quickly escalate, becoming dangerous or even in need of legal intervention.

So how do you know how to handle a nuisance neighbor, and what should you do when the situation gets out of control? Knowing who you're dealing with is step one.

Annoying but (probably) not dangerous

The situation: Your neighbor is a busybody, always in everyone's business and clearly enjoys spreading it around. The animosity she creates is making it hard to enjoy social outings in the neighborhood.

The strategy: Have a talk with her. Perhaps the simple act of honest discourse is enough to get her to curtail her behavior. After all, no one wants a "Desperate Housewives" scenario.

Multiple people may need to be in on this act to get the point across that her behavior won't be tolerated. As a worst case scenario, disinviting her from social events may be necessary. Uncomfortable, but necessary.

Could go off the rails if provoked

The situation: Your neighbor complains about EVERYTHING. The way your kids' friends park on the street in front of your house. Your dog that barks exactly one time a day, for a 30-second period, when the mail is delivered. Even the way your trash can faces on trash pickup day.

And it's not just you. He's been terrorizing the neighborhood since the day he moved in, and everyone's too scared to confront him.

The solution: Kill him with kindness - but only if it seems safe. Could be the neighbor is a lonely man who doesn't know how to reach out and is channeling his sadness/lack of social interaction in a negative manner. Taking over some cookies, bringing in his newspaper, or offering to water his flowers might be the icebreaker you need to start breaking down those walls.

But, being able to judge a situation is key to knowing how to handle it. If you're not sure if your neighbor is just sad and lonely or if he's going to turn into a psychopath and burn your bunny, you probably want to keep your distance.

You should definitely watch your back

The situation: There has been a rash of vandalism in the neighborhood, with cars being keyed and landscaping being ruined. Or perhaps you've experienced hostile behavior from a neighbor yelling profanity at you or your kids.

The solution: There are some situations that can't be resolved any other way but getting the police involved. If you feel unsafe or if anybody is being threatened, don't be afraid to get the police involved. It could be that the scare is enough to alleviate the situation.

Involving the police could also be necessary if a neighbor is breaking the law.

"When only one person or a small number of people are disturbed by a nuisance, it is a private nuisance," said the Chicago Tribune. "Examples include a noisy neighbor, a barking dog, a trash-filled vacant lot and trespassers attracted to a vacant building. If a state or federal law or a local ordinance is being violated, the police or other officials should be notified to abate the nuisance."

Sometimes, a neighbor's antics affect more than your daily enjoyment of your home. If money or land are involved, things can get beyond testy. If keeping things calm and out of the hands of professionals isn't working, it may be time to take legal action.

"Consider having the property surveyed, which should resolve any questions about property lines. (And a survey could nip the problem in the bud, since the person who wants something to happen usually pays, said Emily Doskow, an attorney in Berkeley, California, and the editor of Neighbor Law: Fences, Trees, Boundaries & Noise on CNN. "The cost can vary anywhere from $300 to $1,500, depending on where you live and how complicated the survey is."

Be aware that there are several defenses that could derail your plight (knowing about the private nuisance when you moved to the neighborhood or tolerating it over a period of time are a few of them). Your attorney should be able to advise you of whether or not you have a legitimate case.

Source: RealtyTimes, Jaymi Naciri
http://realtytimes.com/consumeradvice/homeownersadvice1/item/42105-20160204-the-nightmare-next-door-what-to-do-when-your-neighbor-is-a-nuisance

7 Lessons I Learned From Failing At Real Estate Investing

A lot of people make money investing in real estate. But there’s the real version and and the TV version. I fell for the TV version.

Based on little more than a book from a self-proclaimed real estate superstar, I blazed forward and bought my first real estate investment property.

It was a complete failure. I learned seven lessons from that failure, and now I’ll share them with you.

1. If It Sounds Too Good to Be True, It Probably Is – And it Was!

Have you ever heard of a guy named Carlton Sheets? He was one of those how-to-get-rich-in-real-estate-without-really-doing-anything gurus from back in the 1980s and 90s. I wouldn’t be surprised if you don’t know anything about him – he hasn’t been around much lately.

He had a series of convincing TV infomercials, as well as paid real estate investment courses and books, and was quite successful for a number of years.

My father-in-law bought me one of his books, and after reading it I was hooked. I was going to be a real estate millionaire. Look out Donald Trump, Jeff Rose is on your tail, and will be passing you in the fast lane in just a couple of years!

2. Stick With What You Know and Love

Other than the book by Carlton Sheets, the sum total of my accumulated real estate investment knowledge was zero. I had never actually invested in real estate, at least not apart from my own home.

But if you’ve ever seen one of those glitzy TV infomercials about how to get rich, you have to admit they’re pretty convincing. I’m a positive, high-energy guy, and I figured that if anyone could make this plan work, it would be me.

But there was one problem with my thinking: real estate investing is not exactly my thing. And that means everything!

Financial planning is, and I’m all over it. That may be the biggest lesson I learned from failing at real estate investing. Always stick with what you know and love, and leave the other stuff to other people.

3. True Deals Are Harder to Find than You Ever Imagine

My father-in-law and I decided that we’d go into this real estate investment venture together. I was a seasoned money guy, and my father-in-law is an accomplished handyman. It was the perfect tandem for investing in real estate.

I studied Carlton’s book, and knew the “formula” for buying a winning investment property – buy a property from which you can reasonably expect to receive monthly rental income equal to at least 1% of the purchase price.

We found such a property. The asking price was $120,000, and market data indicated that it could be rented for $1,200 per month. Exactly 1%! We were on our way.

But TV infomercial formulas and reality don’t mix. We purchased the property with a $500 earnest money deposit. I then discussed the deal with my CPA, himself a real estate investor with more than a dozen properties. He quickly told me that we overpaid for the property.

That was a direct blow to the stomach – as well as to my ego. Since we just closed on the property, he recommended that we get out of it anyway that we can. With the cooperation of our real estate agent, we were in fact able to void the deal.

But I learned something else for my CPA friend. Finding bargain real estate for investment is not at all easy. Since every other real estate investor in is looking for bargains, you never find them in the usual places. More on that in Lesson #6 below.

4. Never Overpay for a Property

This one is huge. You need to pay much less for the property than it’s true market value.

Not only will that provide the profit on sale, but it will also afford you some protection in the event the property has costly and unexpected repairs.

5. Cash Flow is Everything – And You Better Calculate it Right the First Time

Forget about the 1% rule, the monthly rental should actually be a lot higher. My CPA friend informed me of this after we close on the property, which is when I bothered to actually ask him.

Cash flow is also critical to the success of any real estate investment. The rent has to be sufficient not only to cover the monthly cost of financing, property taxes, insurance, and landlord paid utilities, but it also has to provide a profit, as well as an allowance for some of those unexpected expenses. Expenses like a new roof or furnace.

But whoodda thought? Definitely not me while I was still in my “expert phase”.

6. Looking for Deals in All the Wrong Places

When you are looking to purchase investment real estate you will not find truly good deals in the newspaper classifieds (where I found my “deal”) or even on the local multiple listing service. It’s more likely that you will find a winning property through word-of-mouth and other backdoor channels. It’s often a matter of locating distressed property sales before they hit the market.

The problem is that real estate investment is very competitive. You’re never the only person out there looking for the next big deal. For that reason, all of the usual places you might find property are quickly picked over, few that there are.

Successful real estate investing requires a lot of patience and investment of time. You have to do a lot of digging and get to know a lot of people in order to find the deals that will make it work.

7. Never Let Greed Control Your Actions

So many people have gotten wealthy by investing in real estate that is hard to ignore the opportunity, even if you know nothing about it. It’s called greed, and the combination of big profits and slick TV infomercials can make it too good to be ignored.

But that’s never a decision that’s based on financial reality, or even a reasonable evaluation of your own skill set. It’s based purely on greed. You see big money being made, and you want in. But wanting in and being able to make it happen are two very different things.

From now on, I’ll stick with what I know, and leave the promise of instant riches to the people who write books about it.

That’s my story. Have you ever fell for what turned out to be a money making scheme? Share and make me feel better about my own crash-and-burn.

Souce: Forbes, Jeff Rose
http://www.forbes.com/sites/jrose/2016/02/07/7-lessons-i-learned-from-failing-at-real-estate-investing/3/#86ffd2a55dac

So You Wanna Sell Your Home? Step 3: List It at the Right Price

Putting a price tag on a home you’re trying to sell is a tricky thing. For one, it’s your home, crammed full of memories, hopes, and dreams—and all that stuff can cloud your thinking and lead you toward the wrong price. There are consequences: Shoot too high, and your home could languish on the market for months and maybe not sell at all. Price it too low and you could bilk yourself out of a whole lot of dough.

That’s why we’re here to guide you through this tough but critical decision (and all the others you’ll have to make) with our step-by-step weekly Home-Selling Guide. Read on to pinpoint a price that’s just right.

Repeat after us: What you paid doesn’t matter

You may have a dollar figure in mind—perhaps based on what you paid originally, plus a little extra. Because homes appreciate, right? Maybe yes, maybe no. While a hefty increase in value is nice in theory—and in general, it’s expected to be a seller’s market this year—“ultimately, it’s up to the market,” says Chandler Crouch, broker of Chandler Crouch Realtors in Fort Worth, TX.

Think of it this way: Would you buy a banana for $1 if those same bananas were on sale down the block for 69 cents? Of course not! And, of course, a home ain’t no banana.

No matter what you paid for your home, market values fluctuate—both up and down. This can work for you or against you. But all that matters on the open market is what buyers are willing to pay now.

Use all your tools: Comps, AVMs, and your Realtor®

The best way to get a handle on your home’s sales price are the prices of similarly sized homes in your neighborhood—otherwise known as “comparables,” or “comps.” For example, if a house near yours with the same square footage and numbers of bedrooms and bathrooms, and in similar condition, sold for $230,000 within the past three months, you can bet your own price will be in that ballpark.

For a quick snapshot, several websites (including this one) offer automated valuation models, or AVMs, where you type in your address and then get a price based on an algorithm that factors in comps in your area. But AVMs are just a starting point.

“No one has actually put eyes on your house, so an AVM can’t really give you an accurate price,” Crouch says. That’s why you need your Realtor to visit your home, so she can factor in your home’s unique strengths and weaknesses along with comps to come to a better estimate.

When your Realtor tells you a price, check it. Ask her how she came up with the amount, and look into the comps in your area yourself. Once you’re able to pore over the info, Crouch says, “you’ll be able to see a price range for yourself, so you won’t feel like you’re just having to blindly trust your Realtor.”

Factor in upgrades with a grain (or two) of salt

Yep, you poured $10,000 into your brand-new chef’s kitchen, or $15,000 to install an in-ground swimming pool. Sweet! So it stands to reason that you’d make that money back when you sell, right? Well, not quite. Surveys by the National Association of Realtors® show that your return on investment for home improvements depends on what kind of renovation you’ve pulled off—and how much prospective buyers want it in your area. Refinishing hardwood floors, for instance, will reap a 100% return, paying for itself. Convert a basement to a living area, and you’ll recoup only 69% of those costs. The harsh truth: Not everyone is going to fall head over heels with your five-seat built-in hot tub.So do your research and find out what those upgrades will really get you.

Leave some wiggle room

Most buyers love to negotiate when you’re trying to sell your house. So it helps to “let them win one,” Crouch says. Instead of starting out with the absolute lowest price you can afford to go, add a bit of a cushion. How much? Crouch says you should round off your asking price in $5,000 increments. “It’s just how people think,” he says. So if you know you want $347,000 for your house, you can play it safe and round up to $350,000.

Also keep in mind that many first-time buyers may have a hard time coming up with cash for closing in addition to their down payment, even if their finances are good and they’re qualified for a loan. Offering to cover closing costs—while sticking to a higher asking price—might help seal the deal.

Price with Internet browsing in mind

Once you find yourself a ballpark price you’re happy with, it’s time to fine-tune it. Keep shoppers’ online search parameters firmly in mind—small differences in your price can spell a big difference in your exposure.

“Home buyers typically fill out a Web form that has a minimum price and maximum price,” says Crouch. “If you’re a dollar outside of that range it is going to be like your house didn’t exist—they’ll never see it.” In other words: Price your home at $300,000, and you could miss out on a whole lot of people who are searching in the $250,000–$299,999 price range. So if you’re on the cusp, consider rounding down to capture more eyeballs. Remember what we said about padding? It cuts both ways.

Test the waters with a soft rollout

While choosing a price can be scary, consider this one small loophole: Some brokerages offer a “soft” rollout plan in which they highlight the house as “coming soon” online, without officially listing the house in a multiple listing service. That buys you time to test the market, see if people will click at that price—then adjust accordingly without having to officially lower or raise your price on the record.

Souce: Realtor.com, Angela Colley
http://www.realtor.com/advice/sell/sell-home-right-price/?iid=rdc_news_hp_carousel_theLatest

6 Things You Should Never Say When You’re Selling Your Home

In real estate, when it comes to selling your home, running off at the mouth can sink your chance of selling the house. It's a talk I have with all me sellers so they know not to say anything that will turn off the buyer or whatever. Below is a list of some of the things a home seller should Never say.



You know that expression about loose lips sinking ships? It holds true for selling your home as well. Sure, there are some things you have to disclose to buyers—such as if your home has lead paint or is located in a flood zone. But there’s plenty more you might volunteer when you would be truly better off keeping your mouth strategically shut.

Yesterday, we revealed the things buyers should never say to sellers. Today, we share some things that sellers should never let slip to buyers, or the agents representing them.

To help hone your “less is more” attitude when it comes to talking with prospective buyers, here are a few doozies that agents recommend never, ever saying.

‘Our house is in perfect condition’

Your home is your castle, and in your eyes it may seem perfect—but don’t make claims that aren’t true, says Cara Ameer, a Realtor® with Coldwell Banker.

“The home inspection may reveal otherwise, and, as a seller, you don’t want to wind up putting your foot in your mouth,” she explains. Bottom line: “There simply is no such thing as ‘perfect condition.’ Every house, whether it is brand new or a resale, has something that needs to be fixed, adjusted, replaced, or improved upon.”

‘It’s been on the market for X…’

Never, ever discuss how long the home has been on the market with prospective buyers, says Pam Santoro, a Realtor with Berkshire Hathaway HomeServices. This info is often listed and available on the home’s information sheet, but bringing it up—especially if the home has been available for eons—can send sellers the wrong message. No one wants to buy a white elephant—and, if they do, it’s probably because they think they’ll be getting it dirt-cheap.

‘We’ve never had a problem with…’

If you’re hoping to move quickly, you may be tempted to tell a few little white lies. So you never had a problem with weird neighbors, eh? Or flooded basements? Or vengeance-seeking poltergeists? Realtors agree that your mistruths—however insignificant they might seem—could come back to you with teeth.

“You’re setting yourself up for potential liability,” explains Ameer. “You may not even be aware of the problem at first, but it could  translate into an embarrassing moment upon inspection.” So come clean with what you know and admit what you don’t.

‘We always wanted to fix/renovate that, but…’

Tempted to mention, “We always thought about knocking this wall down and opening the space for more light?” How about “We planned on renovating this bathroom but ran out of cash”? Mum’s the word when it comes to fixes you intended to address. Nobody cares about good intentions.

“When sellers point out things they might change, this only alerts the buyer of more upcoming costs for them,” says Maryjo Shockley, a Realtor with Keller Williams. Who knows? Your buyers may not even want to knock down that wall or redo the bathroom. So why plant those ideas, along with those dollar signs?

‘We spent a ton of money on X, Y, and Z’

Just because you love the Brazilian koa wood flooring you installed throughout the first floor, that doesn’t mean prospective buyers will be willing to shell out for it.

“The buyer doesn’t care whether you spent $10,000 or $100,000 on your kitchen,” says Ameer. “They are only going to offer what they feel the home is worth in relation to area comparable sales.” So, save your breath, or else you’ll risk sounding like you’re trying too hard to justify your price. Desperation isn’t cool.

‘I’m not taking less than X amount for my home’

When it comes time to sell, it makes sense that you want top dollar. We get it! But at the same time, it’s important to be realistic and open to offers within a reasonable range.

“If you send a message that you are inflexible or not open to negotiating, it may not invite buyers to even try to work out acceptable price and terms as they will feel defeated from the start,” says Ameer. “Word may spread that you have this sentiment as a seller, and people may start to avoid the house.”

Source: realtor.com, Liz Alterman
http://www.realtor.com/advice/sell/things-to-never-say-when-selling-home/

How to Vet Real Estate Agents

Picking a real estate agent could spell financial disaster if you choose the wrong one. After all, the goal is to make money on your home – not lose it.

But how do you know if you’ve picked the right agent? With more than 86,000 real estate brokerage firms in the U.S. as of 2012, according to the U.S. Census Bureau, you have quite a few resumes and websites to wade through.

Follow these recommendations for vetting potential real estate agents, and you’ll find the selling process far smoother.

Treat it like a job interview. Signing with a real estate agent is effectively hiring someone to perform a service, so treat it like any job interview – where you’re the employer. Ask questions, interview more than one candidate and make a decision when you find the right person for the job.

Joe Manausa of Joe Manausa Real Estate in Tallahassee, Florida, says as many as 2 out of 3 buyers and sellers select the first agent they meet, which can easily end in disaster.

“They put so little value in the quality of the people they’re going to work with that they end up getting screwed,” Manausa says.

Pay attention to how they communicate. Your real estate agent’s ability to understand your needs as a client is imperative to selling your home, and possibly finding you a new one.

Richard Ruvin, a real estate agent and team leader for Coldwell Banker in Milwaukee, recommends paying attention to how the agent listens, responds and follows up to your questions, requests and needs. "Almost always the complaints revolve, or the frustrations revolve, around those three,” Ruvin says. Not only should agents do all three in a timely manner, but in a way that you prefer, too, whether it's by phone, email or face-to-face meetings.

Ask around town. As with any job interview, you should check for references. Ask the agents you’re interviewing for the contact information of previous clients, and take it one step further – call around to other professionals in the local market to get a feel for their reputation.

Ruvin explains the ability of an agent to work with others in the business is key to the success in selling your home – if you hire someone who doesn’t play nice with his or her peers, you might find few agents willing to show your house to their buyer clients.

“We invest so much effort in developing relationships with other agents in Southeast Wisconsin," Ruvin says. "And that way, if we get to a point where it looks like a deal isn’t going to come together, we can rely on the good will we’ve created with the other side, so to speak, to keep chipping away and working towards a win-win situation.

The agent’s reputation will reflect on you as well, says Shannon Sharpe, broker and owner of Sharpe Realty in New Orleans. If you sign with a broker who makes closing a deal difficult, you could find yourself struggling to do more real estate deals in the future. “You want it to be a reflection of how you conduct business,” she says.

Talk about marketing and what you can do. In the initial meeting with a potential agent, you should expect her to present everything she plans to do to help you sell your home, including her marketing strategy and what you can do to prepare your home for tours.

Expect a large portion of marketing to be online, as print advertising has largely fallen out of style in a world of to-the-minute listing updates and Instagram ads . “This has become very much an online business. Most of the print advertising out there is designed to pick up listings, and the online listing is designed to pick up buyers,” he says.

Listen to money talk with a skeptical ear. Real estate agents will typically give you an estimate on your home’s value when they make their pitch, but don’t let dollar signs in your eyes cloud your judgment.

Picking a real estate agent based on promises of a higher sale price can leave you with a bad fit, and if an agent is making a higher estimate to try to lure you in, he's probably not a great agent to begin with. Sharpe says a promised price doesn’t mean buyers will actually be willing to pay it. “If it doesn’t go under contract and it doesn’t sell, then it’s Monopoly money,” she says.

Sharpe adds that selecting an agent who agrees to the lowest commission rate isn’t necessarily a smart decision, either. Buyer agents, who will split the commission with the listing agent, can see the commission amount, and may not be inclined to show your property if they know they wouldn’t get much reward for their work.

Go with who you trust. Your real estate agent will be privy to a good deal of personal and financial information about you, so only sign with the one you are confident will work with your best interests in mind. Manausa explains he works best when he has open communication with clients about their financial situation and reason for moving. As a result, he can secure the deal that meets their needs, “Tell your agent everything, but only after you hire one,” he adds.

When you find the agent you feel comfortable with, you can maintain the relationship for the next time you decide to move, and refer him or her to friends who are buying or selling as well.

Ruvin says his team pays particular attention to establishing long-term connections with clients. “They invariably feel like we’re trying to develop a relationship," he says, "and that the questions we’re asking and the efforts that we’re going through, one wouldn’t go through if they were simply looking at a single sale.”

Source: U.S. News & World Report, Devon Thorsby
http://realestate.usnews.com/real-estate/articles/how-to-vet-real-estate-agents/

What I Didn’t Know When My Landlord Kicked Me Out

In real estate, things often don’t turn out the way you’d expect. In this new series, we’re going to take a look at how people’s real-life experiences differed from their expectations. First up, a tale from the world of renting.

Confession: When I was younger, I got kicked out of my apartment by possibly the worst landlord ever. Four months after moving in, I found myself standing on the front lawn at 9 a.m., neighbors staring, fighting with my landlord at top-decibel levels.

Spoiler: The landlord won. I promised to be out by the end of the week.

It sounds like an episode of some trashy (and not particularly fun) reality TV show, but this was real real life, folks. I fled in three days, leaving behind my security deposit, prepaid cleaning fee, pet deposit, and a full month’s rent.

Looking back, I often wonder what I did wrong and how I could have avoided getting fired from my lease (or at least gotten some money back). So I asked an expert to break down my case.

Most lease terminations don’t happen in a day. To understand what happened (and where I started messing up), we have to start at the beginning, the day I signed the lease.

The scenario: When I moved in, I had a puppy, which was destined to rapidly grow into a big, slobbering adult dog. I told the landlord about the pooch, but when it came time to sign the lease, there was no mention of the pet. When I questioned this, the landlord said it was a standard lease form and not to worry. I did worry, but I also chickened out and signed. As you’ll see below, this small thing became a not-so-small flashpoint.

Experts say: I never should have moved in without a pet agreement.

“First of all, you should have requested [the pet] be memorialized into the lease,” says Casey Schwab, co-founder of ResolutionTable.com, an online mediation service for tenant and landlord disputes. “Absent that, an email or text to your landlord about the pet would have supported the theory that your landlord consented.”

The scenario: About a month after moving in, my landlord started snooping. Neighbors would tell me they’d seen him looking in the windows. Creepy! I wrote down the dates and times in some vague attempt to cover myself.  Then one night I heard barking while I was in the shower. Wrapped in a towel, I came out to see my landlord standing inside my apartment! I knew his presence was illegal, so I asked him to leave and then dropped the issue, fearing he would make my life miserable in the apartment if I pushed.

Experts say: I should have manned up. “After the first whiff that your landlord was entering your apartment or spying on you, you should have notified him in writing of the violation,” Schwab says.

The scenario: Not long after asking my landlord to leave, things started to go south fast. My landlord started showing up a lot, saying the neighbors were suddenly complaining about the dog. When I didn’t take the bait and fight back, the landlord said I’d have to keep the dog outside, chained up.

Experts say: As a tenant, you should document everything, Schwab says. Even if the pet wasn’t on the lease, the landlord was acknowledging that he knew I had a pet, and I could have used that in my defense later.

The scenario: Things really hit the fan one morning after my landlord arrived to find that my dog was not chained outside (like I was really going to do that). He banged on the door, shouting like a crazy person. He said things. My mother, who happened to be in town, said things. The neighbor who came out to see what the fuss was said things. I mostly stared in horror until I found myself agreeing to move in three days.

Experts say: “The front lawn brawl is really never a good move,” Schwab says. I would have been better off to nod, pretend to agree, and get inside as soon as possible. “But the moment he left, you should have written down everything you could remember—from start to finish—that your landlord could have possibly done wrong,” he says.

The scenario: I planned to move as agreed. I spent two straight days looking for an apartment while the devil—sorry, the landlord—texted me hateful comments and childish threats. I ignored them, found another place, and moved out.

Experts say: “Those texts were IOUs that you never cashed. The potential of a judge or mediator seeing these texts would have scared any rational landlord into returning your rent and security deposit,” Schwab says.

The scenario: After paying for movers and taking time off work, I was financially strapped and just brave enough to ask for my deposit back. I even cleaned the apartment I was getting kicked out of! But the landlord said no, and I never tried to follow up. I was afraid that I didn’t have the grounds to file suit or seek professional help, since I’d been asked to leave early.

Expert say: Leaving a lease early doesn’t always mean you’re not entitled to your security deposit. According to Schwab, I had the right to sue my landlord for all kinds of things, including invasion of privacy and harassment. And even though I didn’t get my money back, the landlord should have provided a detailed invoice of what was deducted from the security deposit and why. When I didn’t get my deposit—or a deduction notice—back, I should have written a stern letter stating the reasons the landlord was at fault and demanded that my deposit be returned, Schwab says.

From there, I could have filed a suit against my landlord or reached out to a lawyer for mitigation. Instead I folded like a house of cards. Live and learn, right?

If you find yourself straining to deal with your landlord, don’t do the same. Take notes, take pictures, take control. And when the time comes, get your money (and peace of mind) back!

Source: Realtor.com, Angela Colley
http://www.realtor.com/advice/rent/what-i-didnt-know-when-landlord-kicked-me-out/?iid=rdc_news_hp_carousel_theLatest

Resolve to Give Up These 8 Money-Wasters for a Down Payment Before 2017

The all important down payment. Most home purchase won't happen without it. For those of you having trouble saving up for a down payment, below is some advice you might find helpful.


The presents are unwrapped, the holiday decorations are packed up (or not, we won’t tell), and the ball has dropped on the end of 2015. It’s time to make some New Year’s resolutions—homeowner-style.

You can make 2016 the year of the down payment. Really.

By cutting a few things from your budget this year, you can speed up your progress toward having a down payment by the time those holiday decorations come back out of the closet. You probably knew these were splurges eating up your discretionary income, but did you know just how much? Don’t worry—we’ll do the painful math for you so you know what to kick to the curb in 2016.


1. Skip the latte

Annual savings: $876 (plus taxes!)

A medium latte at Starbucks costs $3.65. If you stop by every day before work, that adds up So, suffer through the free coffee at work and think instead of the new kitchen where you can create your own coffee bar.


2. Cut the gym membership

Annual savings: $696

The average monthly cost of a gym membership is $58 a month, or $696 a year, and that’s assuming you’re already a member and not paying sign-up fees as well. Not to mention that most of our good intentions taper off sometime in February and we end up paying for something we’re not even using.

We’re not telling you to stop exercising. But try getting creative with your routine instead. Enjoy the great outdoors! Walk on your lunch break! Ride your bike! You’ll bag a surprising amount of cash toward your down payment.amy schumer gym


3. Cancel the cable

Annual savings: $1,189

Cable gets more expensive every year. In 2015, cable customers paid an average of $99.10 a month, or $1,189.20 for the year, according to the Leichtman Research Group. If you drop the cable in favor of, say, Netflix at $7.99 per month, you’ll save $91.11 per month—or $1,093.32 for the year—and get commercial-free original shows. liz-lemon-12


4. While you’re at it, drop a streaming service

Annual savings: Nearly $100

You don’t really need to subscribe to all the streaming channels at once. If you have Netfix, Hulu and Amazon Prime, you’re paying roughly $25 a month. If you drop Amazon Prime, you could save $99 a year. If you drop Hulu or Netflix, you could save $95.88 a year. Tip: Hulu allows you to put your subscription on hold. So if you find yourself having less time for binge-watching, try suspending your Hulu account until you have more time for it and save yourself that dough.


5. Lower your mega smartphone plan

Annual savings: Up to $300 per year

Did you get one of those unlimited everything plans when you bought your phone and never changed it—even after you realized you don’t talk on the phone that much and Candy Crush Saga doesn’t use much data? If you switch to a lower plan—or at least drop a couple gigs of data—you could save $10 to $25 a month.


6. Pack a lunch instead of buying it

Annual savings: $1,714

Taking a sack lunch to work might make you feel like you’re back in elementary school, but let’s do the math on how much it saves on your lunch costs. The average daily cost for the American worker who bought lunch from a restaurant in 2015 was $11.14, according to Statista. That amount adds up to about $56 a week, or $2,674 a year. If you can make a sack lunch for $4 a day, you will spend about $20 a week, $80 a month, or $960 a year — an annual savings of about $1,714.


7. Quit drinking

Annual savings: $3,168

If you’re an avid social drinker, you may not realize how much those $10 cocktails are adding up.

Say you go out three times a week, ordering at least two cocktails at $10 each plus the standard $1 tip per drink. That adds up to $66 a week, $264 a month, and—wait for it—a whopping $3,168 a year.


8. Go to the cleaners much less

Annual savings: $1,354

Are you still taking most of your clothes to the cleaners? Costs of dry cleaning or laundering items can vary a lot. A survey by Consumers’ Checkbook determined the average price of laundering a men’s dress shirt was $1.87, laundering men’s khaki slacks was $5.57, and dry-cleaning a two-piece suit was $11.13. If you take in two pairs of slacks ($11.14), five shirts ($9.35) and a suit every week, you’ll pay about $31.63 a week before taxes, which can add up to about $1,645 a year. Based on those numbers, if you wash your own slacks and shirts and reduce by half the number of times you have your suit dry cleaned, you could save up to $1,354 a year.

Best of all, you won’t miss the things you cut (OK, maybe some), but you’ll rack up a truckload of money in 12 short months. In fact, drop everything from this list and you could bank nearly $9,400 by the end of the year. Take that, down payment!

Source: Realtor.com, Angela Colley
http://www.realtor.com/advice/finance/resolve-to-give-up-these-8-money-wasters-for-a-down-payment-before-2017/?iid=rdc_news_hp_carousel_theLatest

Holding an Open House? Don’t Make These 7 Huge Mistakes

If you’re selling your home for the first time, you might think of the open house as the point at which your Realtor® waits until you leave, turns into a magician and, with a flick of the wrist, completely transforms the place into something out of Bravo’s “Million Dollar Listing.”

But here’s the truth of it: Your agent isn’t practicing wizardry on the side. And you’re not responsibility-free when it comes to the open house.

In fact, even though you’re not present for the open house (and you never, ever should be, if you want to sell the home), there are still quite a few ways that you can screw it up—and drive away potential buyers.

These seven things will, according to our experts, destroy your chances of a successful open house—and, potentially, the home sale. Are you guilty of them?

1. Leaving your pets behind

This is Fremont, CA, home stager Alice T. Chan’s biggest open house pet peeve.

“That’s an obvious thing,” says Chan, who previously worked as a production designer for HGTV’s “Flip It to Win It” and was co-host and designer for the channel’s “Power Broker.”

Letting them run free is an easy way to annoy potential buyers, who may not like pets and definitely can’t picture themselves living in any home that once housed dogs or cats. Plus, you’ll want to consider the safety of the animals.

“People are going to open the door, and the pets will fly out thinking, ‘Woo hoo, I’m free!’” Chan says.

2. Turning a blind eye to the kitchen

You might be surprised by how many homeowners ignore this entire room when selling.

“Putting dirty dishes in the sink does not make them invisible,” Chan says.

Even if the rest of the home is staged to perfection, a disgusting kitchen will turn off buyers—and that goes for your dishwasher, too. People are nosy (and eager to learn about their maybe-new home). Expect them to open the dishwasher and investigate the fridge during the open house, and prepare your home accordingly: Clean and store your dishes, and clear out any smelly food from the fridge.

The same goes for any other room you think buyers won’t bother checking out, such as the garage, laundry room, or closets. Because guess what? They totally will.

“You’re not selling part of your house; you’re selling all of your house,” Chan says. “You want to make sure everything you’re showing is in showcase condition.”

3. Not hiding your dirty bath towels

Keeping bath towels you’ve used (and intend to use again) tucked out of the way in a closet benefits you twofold: Not only does it make your bathroom look well-staged, but it also keeps them free of dirt and germs from the day’s parade of guests. Instead, swap in a clean set of decorative bath and hand towels for each open house.

“You don’t want (people) wiping their grubby paws on the bath towels you wipe your body with,” Chan says. “That’s just gross.”

4. Cleaning solo

Hosting an open house is a great time to ask yourself: Am I a good cleaner? Really? If the answer to that question isn’t a resounding “yes!” consider hiring a professional.

“Very, very few people are good housekeepers,” Chan says. “If you think you’re going to save $200 on house cleaning because ‘I can do it myself’ … well, if you weren’t doing a good job before, you won’t do a good job now.”

Not only will cleaners scrub all the out-of-the-way spots you might miss (think baseboards and switch plates), they can also help eliminate odors and messes that go back years.

“I’ve worked on houses where it was a complete hellhole, no joke: dogs, cats, smoke, the whole nine,” Chan says. “We had it spit-shined so it would show well, and no one was the wiser.”

5. Not getting a second opinion

After cleaning and staging your home, a blunt-tongued neighbor can be a godsend. Over time, you can get used to smells and odors that can linger, even after a thorough cleaning.

“You need a neutral third party who will tell you like it is, not what you want to hear,” Chan says.

So don’t be offended if they tell you your place stinks—figuratively or literally.

“You’re not in a position to be all ego,” Chan says. “You’re trying to sell your house—and that’s what you need to focus on.”

6. Not maintaining the yard

While it might seem tempting to neglect your side yard, don’t. Not only does a messy yard look terrible, but objects strewed every which way can also be dangerous.

“A garden hose strewn across the yard is a tripping hazard,” Chan says. “Coil it up to make it look nice and organized-looking.”

And unless it’s trash day, keep your bins out of sight. Nothing makes a house less appealing than a pile of trash.

7. Forgetting to stash your drugs (no, seriously)

There’s a reason stagers depersonalize your house. Sure, they want potential buyers to visualize themselves living within its walls—but they also want to remove any ammunition against you during the negotiating process.

One place to look is the medicine cabinet, which should be emptied during an open house.

“You don’t want people knowing your identity. You don’t want people stealing your meds,” Chan says. “And you don’t want them to think, ‘Oh, I know this medication, I know why they need to sell the house,’ because cancer treatment or something. You don’t want people to get information from your house that they can use as leverage.”

The same goes for family photos and things such as walkers and canes: For example, if you’re elderly, they might consider undercutting your price under the assumption that you can no longer take care of your home.

Keeping buyers from learning your personal details isn’t just good staging—it’s good business sense, too.

Source: Realtor.com, Jami Wiebe
http://www.realtor.com/advice/sell/holding-an-open-house-dont-make-these-7-huge-mistakes/