Market Ready - Decluttering your home

Q. What’s the best way to declutter  my home before I show it to potential buyers? Can I leave packed boxes in a corner or do I need to move things into storage.

A. Even if your house hasn’t been featured on “Hoarders,” making an effort to clear out clutter and to ensure that your home is as neat and tidy as possible before opening your door to buyers is common advice in real estate circles. And for good reason, said Jeffrey Stockwell, a senior vice president with Stribling & Associates in Manhattan. 

“It’s vital, because most real estate is aspirational, and buyers want to see themselves someplace better and more beautiful,” he said. “They want the feeling that if they move in there, it will be organized, clean and attractive. If they walk into a cluttered, messy space, there’s none of that feeling that life will be better.”

Even if your home is in good condition, Mr. Stockwell said, “if it’s cluttered, people will think it needs a renovation, and that lowers the value.” 

But cleaning up isn’t always easy. “You’re parting with things that have emotional value, and that’s very difficult for people,” he said. “They understand the need to do it. It doesn’t cost much, if anything, and yet it’s really hard to get clients to do it.” 

Packing personal belongings into boxes that remain in the apartment isn’t much of a solution. “If I go into an apartment and see a lot of boxes, even if they’re attractive boxes,” he said, “I immediately think there’s not enough storage space.” 

Jeffrey Phillip, a professional organizer in New York, agreed that the boxes need to go.

You could move those things into a storage unit, he said, but “better yet, take that time to get organized.”

Gearing up for a move is a “perfect time to really edit yourself down,” he said. There are a number of advantages to doing so: “You’re going to spend less money for someone to move you, and you’re also going to spend less money on storage.” 

Just “don’t expect to do it all in one weekend,” Mr. Phillip said. Give yourself a few weeks — or even months — to complete the task. 

“It’s all about doing small projects, one at a time,” he said, rather than trying to tackle the entire home in one shot, which could be overwhelming. 

Some areas where you can get quick results include wardrobes, kitchen pantries and drawers, and collections of CDs and DVDs. For the latter, even adding the discs to a binder and doing away with the cases can clear a substantial amount of shelving. 

As Mr. Stockwell put it: “The rule of thumb is, be ruthless.” If you’re unsure about something, he added, “Get rid of it.”

By TIM McKEOUGH

 

5 Ways Sellers Can Prepare for a Home Inspection

1. Don’t hide what isn’t working: If an appliance isn’t working, leave a note that indicates what isn’t working and how you’re getting it fixed. Don’t try to conceal defects because it can make the inspector start to view you as dishonest and wonder what else you’re hiding.

2. Make things accessible: Ensure the location of the attic and crawlspace are identified and easy to access. Don’t make a home inspector move your belongings in order to gain access.

3. Check the lightbulbs: If a lightbulb isn’t working, the inspector will need to determine if the fixture is inoperable. Save them time by making sure all the lightbulbs in the home operate, including those in the crawlspace, attic, and furnace rooms.

4. Note septic systems: If you have a septic system in the yard, be sure to leave a sketch that includes the location of it. It’ll avoid home inspectors, buyers, and real estate professionals having to conduct prolonged searches for it, Leopold says.

5. Keep appliances clear: Don’t leave dirty laundry in the washing machine or dryer because the inspector will need to test the appliances, and he doesn’t want to have to pull out dirty clothes in front of everybody, Leopold says. “Also, make sure your oven and stovetop are clear and clean, so we can easily test them without setting off the smoke alarm,” he adds.

Source: “Ask the Experts: What Should Home Sellers Do to Prepare for a Home Inspection?” RISMedia (April 16, 2013)

18 Ways to Prep Your Home’s Exterior for the Spring Market

Spring is in the air...This is the time of year when thoughts turn to spring cleaning; whether or not you’re selling your home. Of course, if you are listing anytime soon, you’ll want to be even more meticulous.
The busy spring market will be upon us before you know it, so here are some tips for getting the exterior of your home shipshape:


1. Remove glass from light fixtures and take out any little critters that may have found a home over the winter.  Be sure to use glass cleaner on the panes before replacing them in your fixtures.
2. Clean your mailbox.  If it hasn’t weathered well over the winter, it’s probably time to replace it.
3. Clean and polish, if necessary, your front door’s hardware. Replace it as well if necessary.
4. Check your house numbers.  Are they still in good shape and visible from the street?  If not, replace them.
5. Wash down your front door and garage door.  If you find that the previous summer’s sun has faded the paint, consider repainting.  (Your garage door should be painted a color that blends in with the brick or vinyl siding on your home.) Before painting, check with the paint manufacturer to see what the optimal outdoor temperature should be. You don’t want to paint when it’s still too cold outside.
6. Wash the windows.  If this isn’t your strong suit, hire a professional.
7. Hose down the porch and driveway to remove any excess salt left over from de-icing.
8. Sweep the porch, driveway and patio to get rid of any rogue leaves etc. left over from the fall.
9. Check your porch, driveway, and patio for any cracking or lifting of patio stones that may have taken place during a deep freeze.
10. Check your roof to make sure no shingles are missing or were damaged during the winter.
11. Remove debris from your gutters and drain spouts.
12. Rake the lawn.  However, before doing that it’s very important to check with your local garden center first to be sure it’s not too early.  If raked too soon before the ground thoroughly dries, you could potentially damage your lawn.
13. Remove winter displays from your urns.  For a burst of color, plant spring flowers as soon as weather permits.
14. Tidy up your gardens in preparation for planting season.
15. Organize the garage. Put away shovels, snow blowers, toboggans, and any other items that made their way into your garage over the winter.
16. If you don’t use your barbeque year round, it’s time to bring it out.  If it’s a built-in unit that will be staying with the house, be sure to clean the grills and wash down the lid.  If you have a cover for it, replace it if it’s worn.
17. Remove the cover from your swimming pool and clean your pool as soon as your pool service company advises that it’s OK to do so.
18. Bring out your patio furniture and set it up.  Although it may be too cold to sit outside just yet, you want potential buyers to see your outdoor living space’s potential.

These are some suggestions to get your started.  What else am I missing?  Feel free to add to the list!

                  

                     By Charlene Storozuk

Home Affordability Reaches Historic Low as Market Improves

In 2006, during the height of the seller’s market, home prices reached an all-time high. At the time, an interest rate of 6.4% was reasonable. Since then, both home values and interest rates have dropped significantly. The home affordability percentage is the percentage of median family income required for a median price home payment. This year, the United States broke another record with Home Affordability at it’s lowest ever. Today, the home affordability percentage is at 12.9%. The long term average is 21.6%.  Just a few short years ago, this percentage was 23.2% and in the early 1980’s this percentage was as high as 36.3%. 

In 1989, the average home sale price was $94,000.  Today, that average is $176,600.  Yet, the monthly principal and interest payment is nearly $200 a month less today than it was in 1989.  Meanwhile, inflation has caused the price of a new car to nearly double during that time period and the cost of gas has gone up from .97 cents to over $3.54.

Statistics show that the US housing market is slowly recovering. Last year, home sales increased by 9.2% and we have now returned to the 2007 level. In addition to increased home sales, seller inventory has seriously decreased down to 5.9 months of inventory. A balance market is when we have 6 months of inventory. History shows us that we never stay in a balance market long and that it takes approximately 6 months for a market to complete its turn to either a buyer or seller market. These facts cause us to ask the following questions; are we making the turn from the buyer’s market into a seller’s market? And when will we hit rock bottom home prices? These statistic’s seem to prove that we are making the change to a seller market. We will know the  answer to home prices hitting rock bottom when it’s too late.  Perhaps it already is. Interest rates are already on the rise. My recommendation is simple, if you can afford a home and you qualify for a mortgage, you better call me today because tomorrow may be too late.

Article written by: Daniel J. Smith

                                      Statistics provided by NAR

Study: Buyers Can Afford Bigger House If It's New

The National Association of Home Builders says its new study shows that home buyers can buy a more expensive, newer house and still have the same operating costs as owning an older existing home. 

NAHB examined data from the Census Bureau and Department of Housing and Urban Development’s 2011 American Housing Survey to determine how utility, maintenance, property tax, and insurance costs vary depending on the age of a home. 

Houses built prior to 1960 have average maintenance costs of $564 per year. On the other hand, homes built after 2008 have average maintenance costs less than half that — $241, according to the study. 

 

For homes built prior to 1960, operating costs average nearly 5 percent of the home’s value while the average was less than 3 percent for homes built after 2008, the NAHB study found. 

The study also took into account the first year after-tax cost of owning a home by its age, examining the purchase price, mortgage payments, annual operating costs, and income tax savings. “A buyer can afford to pay 23 percent more for a new house than for one built prior to 1960 and still maintain the same amount of first-year annual costs,” according to NAHB.

New houses tend to cost more than existing homes, so the mortgage payments will likely be higher — but the lower operating costs of a newer home will give buyers annual costs that could be about equal if they purchase a lower priced, older home with a smaller mortgage payment but higher operating costs, NAHB says. 

"Home buyers need to look beyond the initial sales price when considering whether to buy new construction or an existing home," says NAHB Chairman Rick Judson. "They will find that with the higher costs of operating an older home, they can often afford to spend more to buy a new home and still have annual operating costs that fit their budget."

Source: National Association of Home Builders