Tag Archives: Real Estate

Protect Yourself from DIY Disasters

DIY Disaster“It always looks so simple, especially when they do it on TV.  Anyone can caulk the bathtub, or install a new light fixture…and think of all the money you can save by Doing it Yourself?  But before you tackle one of these projects, do yo have the right tools, do you really know what you’re doing?  Maybe you’re ready, but maybe you’re not.”

Denise Buck & Ed Johnson – DC Metro Realty Team

“The road to the hardware store is paved with good intentions,” says David Pekel, president and CEO of Pekel Construction in Milwaukee and a master certified remodeler. He is often greeted at his office on Monday by frantic calls from homeowners who failed in their DIY weekend projects.

Just know this: “It takes twice as long as you think it’s going to and generally costs twice as much,” Pekel says.

Here are 11 tips for avoiding your own DIY disasters.

Measure twice, cut once. There is a reason this proverb has been around for decades. If you cut your crown molding, tile or paneling too short, you can’t go back and make it longer.

Beware of plumbing projects. Most people can change the insides of a toilet, but problems can still arise, as Prescott discovered. If you have just one bathroom, be prepared to stay overnight elsewhere if something goes wrong. Make sure you turn off the water before you start any plumbing project.

Leave electrical projects to the professionals. If you know what you’re doing, you can change a light fixture. But replacing a light fixture with a ceiling fan involves more than just changing the fixture. Other electrical projects are even more complicated. If you do give it a shot, turn off the breaker before you touch anything.

Look for instructions online. You can find a YouTube video or detailed instructions for any project. But if that’s all the information you have on a project that you’ve never done before, beware. A video on building a deck from someone in Florida may not tell you what you need to get the deck to withstand 80 inches of snow, and a video from Minnesota on building a deck may not have the instructions you need to ensure your deck can survive a hurricane.

Take a class at Home Depot. Nearly every week, Home Depot stores nationwide offer free classes on everything from replacing a faucet to tiling a room. Be mindful that you need to register ahead of time to participate in these workshops.

Ask questions at the hardware store. Most hardware stores, and even some big-box stores, have experts on staff who can answer questions about home projects. If you’re replacing specific parts, bring along the parts if you can rather than trying to remember what they look like.

Use the right tools. You can rent or borrow some tools if you don’t own them yourself. Hint: If you’re going to assemble a lot of Ikea furniture, invest $20 in an electric screwdriver.

Know which work requires a permit. Some cities are stricter than others about permits, and only licensed contractors can obtain permits for some work. Doing major renovations without a permit could cause problems when you sell your home. Some cities require presale inspections, which can result in fines and the need for retroactive permits. That can mean redoing the job to city specifications.

Know what you can and can’t do yourself. “If you have to go to YouTube to learn something, you probably don’t know what you’re doing,” Pekel says. Homeowners often “don’t know what they don’t know.” If you mess up a painting project, you can always redo it. But if you take down a load-bearing wall and bring the second floor down with it, you’ve created a very expensive problem. With DIY projects, being cautious is typically the way to go.

Consider what your time is worth. If you earn $100 an hour and replacing a faucet takes you three hours, you would probably save money by hiring a plumber.

Be prepared to live with the results. That includes both the quality of work and the time your house will be in disarray. Can you install crown molding well enough to be happy with the results? Or will it forever bug you that it’s not exactly straight? That goes for more complex projects, too. If you gut the kitchen and end up taking six months to redo it, can you live without a kitchen that long?

Written by Teresa Mears, Originally appearing in US News

7 Biggest Mistakes Made with Area Rugs

ARea RugsIt’s such a small thing, but it can make such a big impact.  Do it right and it adds just the right touch to a room.  Do it wrong and it sticks out and takes away from the room.  Just following a few simple tips might make the difference in your room.”

Denise Buck & Ed Johnson – DC Metro Realty Team

1. Choosing a rug that’s too small
Skimp on size, and your room will look smaller. “You need your rug to set boundaries, and ground your furniture,” says interior designer Danielle Oakey. “In a living room, your rug defines the conversation area, and it should be large enough so at least the front legs of the furniture are on it.”

“In the bedroom, you want to feel the rug on your feet when you get out of bed,” says interior designer Amber Lewis. “I like two feet to extend beyond the bed on each side.”

2. Not trying layering
Why do people often choose a too-small rug? Tinier rug = tinier price. “We’re the layering queens,” says Lewis, about her design team. “Buy a neutral jute rug — which cleans up really well, even if you have stain-prone kids or pets — and place your patterned rug over it.”

3. Leaving your wall-to-wall carpeting bare
“Don’t be afraid to layer an area rug over carpet,” says Oakey. “It adds playfulness, and pulls together your room with the boundaries it needs.”

4. Choosing your rug last
If you’re decorating your room from scratch, choose the rug first. It’s the big, impactful piece that ties a room together, and if you wait until you’ve placed the final throw pillow, you could search for months before the perfect rug come around. (Though, you could go with something neutral until the rug gods grant you a better choice).

“When we’re designing room, we’ll choose the rug and then throw pillows, textiles for curtains, and more on the floor with it, and pick whatever goes with the rug best,” says Lewis.

5. Being afraid of pattern
Some contrast (read: a cute print) is necessary to create a happy space. “Brown walls, a brown couch, and a brown rug will make a room look flat and bland,” says Oakey.

6. Skipping the rug pad
A rug pad dispels slipping and sliding, and adds a layer of comfort underfoot — especially to a flat weave rug. “Rug tape is useless,” says Lewis. “It doesn’t work, and will ruin your hardwood floors with its stickiness.”

7. Missing out on a discount
“If you’re looking for a great price on unique, vintage rug, like a Persian one or Turkish kilim, try eBay,” says Oakey. “Same is true with Etsy — thrift stores often post there. I also like RugsUSA. They have a huge selection and always run sales.”

By Lauren Piro on Yahoo! Shine

The Worst Mortgage Advise You Can Get

Worst Mortgage advise“It’s amazing how  many people who have purchased a home in the past automatically become ‘experts’ in mortgage advise.  There is an awful lot of bad information out there and most of it out dated.  When considering financing a new home, or re-financing your current home, consult with a lending professional first to get the most current and accurate information.”

Denise Buck & Ed Johnson – DC Metro Realty Team 

Are you thinking about buying or refinancing a home in the near future? If so, chances are you’re getting all kinds of advice from well-intentioned friends and family.

Just remember to keep this important piece of advice in mind: Don’t listen to everything you hear. According to industry professionals, some words of wisdom are not wise at all.

To help you separate the bad advice from the good, check out five common statements that should cause you to cover your ears immediately.

Bad Advice No. 1: “A 30-year fixed-rate mortgage is best for everyone.”

The common perception is that a 30-year fixed-rate mortgage is always the best option, because it typically offers lower monthly payments than other shorter-term mortgages. But the kicker is that interest payments over the course of the loan can be quite substantial when compared to mortgages with shorter terms and lower interest rates.

Consider this example based on rates from Freddie Mac, as of March 20, 2014:

A 30-year loan on a $200,000 property with a 4.32 percent interest rate has a monthly payment of $992 and interest payments totaling $157,153 over the life of the loan. On the other hand, a 15-year loan for the same property with a 3.32 percent rate has monthly payments of $1,412 and yields $54,187 in total interest paid. So by opting for the shorter mortgage, you could save more than $100,000 in interest, which is worth it if you can meet those higher monthly payments.

Whether or not a 30-year fixed mortgage is the right choice depends on the borrower’s goals and financial situation, says Houtan Hormozian, vice president of Crestico Funding, a Los Angeles-based mortgage brokerage firm.

For example, if you have cash saved up for job, family, or medical emergencies and you already have college and retirement funds set up, then a 15-year mortgage might be a better option. Without money saved up, losing a job or an expensive surgery could deal a hard blow to someone’s finances, including their ability to make mortgage payments.

Bad Advice No. 2: “Stay away from adjustable-rate mortgages.”

An adjustable-rate mortgage (ARM) is a loan with an interest rate that is fixed for a period of time then adjusts, causing the ARM payments to increase or decrease.

ARMs get a bad rap, because they’re seen as risky products that contributed to the housing bubble, easy credit, and ultimately, the subprime mortgage crisis.

“The 30-year fixed-rate mortgage is the most popular type, because everyone is afraid of adjustable [rates],” Hormozian says.

In fact, only 3 percent of homebuyers chose adjustable-rate mortgages in the first half of 2013, reports Freddie Mac. With that low figure it’s easy to get scared off, too. But the fear associated with ARMs is somewhat unjustified, according to Hormozian.

“Depending on the consumer, circumstances, and knowledge of their economic situation, there could be an ARM that fits them,” says Frank Percival, board president of the Washington Association of Mortgage Professionals.

One major benefit of an ARM is that it typically will have a lower interest rate than fixed-rate mortgages at the outset. For example, a 5/1 ARM will have an initial fixed rate for the first five years then adjusts afterward.

This is a great option for homeowners who plan on moving out of their house before the rate adjusts. However, this does carry some risk, since personal finances and the condition of the housing market may make moving difficult in a set amount of time.

So choosing an ARM may come down to your financial situation and your aversion to risk. Percival explains that if a homebuyer with a 5/1 ARM saves $200 a month in interest compared to a 30-year fixed mortgage, it may make sense to choose that type of loan. However, if someone wants to err on the side of caution, given the risks discussed, a 30-year fixed mortgage might be the more sensible choice.

Bad Advice No. 3: “If your home is underwater, consider a short sale.”

“When the housing market was bad a year or a year and a half ago and the values of homes were low, people were encouraged from realtors [and] buddies at work to walk away from their home,” says Percival. He calls this “one of the worst pieces of advice in recent history.”

If desperate homeowners took that advice, they would usually do a short sale on their home. What exactly is that? It’s a real estate transaction in which a lender agrees to let the borrower sell his or her property for less than – or “short” of – what is owed on the mortgage.

Even if your home is underwater, it’s a bad idea, asserts Percival. If homeowners can still afford to make their mortgage payments, then they shouldn’t do a short sale.

“People who didn’t have medical emergencies or lose their jobs were dropping their keys and leaving their homes,” Percival says. This is a dumb choice, he adds, since it’s possible that their home value could go have gone up.

Plus, if you do a short sale, you may have to wait several years to qualify for a home again, says Percival. The reason? Because a short sale usually lowers your credit score just as a foreclosure would, according to myFICO, the consumer division of FICO. Shortsellers may be able to qualify for a mortgage in as little as two years, but this may depend on a variety of factors, like how much you are able to put down.

Beyond your own finances, short sales have a far-reaching effect, according to Percival.

“Every short sale or foreclosure reduces the value of every home in the neighborhood,” he says. “If folks would have waited for the recovery to kick in and housing prices to go up, they could have sold it at a profit. People just wanted to walk away from debt.”

Bad Advice No. 4: “An FHA loan is your only option.”

First-time homebuyers are particularly susceptible to bad advice. For example, homeowners who can’t afford a large down payment may hear that a government-backed FHA loan is their only option, since the down payment requirement can be as low as 3.5 percent of a house’s purchase price. But that’s not necessarily the case.

Some homeowners might be surprised that getting a conventional loan might be better suited – and easier – for them than an FHA loan, says Aaron Vantrojen, president of the Arizona Association of Mortgage Professionals, says.

The standards to qualify for an FHA loan have tightened, says Vantrojen. Plus, the FHA loan has become more expensive in recent years due to its rising mortgage insurance premium (MIP).

According to the U.S. Department of Housing and Urban Development, the mortgage insurance on an FHA loan must be carried for the life of the loan. On the other hand, the private mortgage insurance (PMI) on conventional home loans can be dropped when equity in the home reaches 20 percent, Vantrojen says.

As a result of dropping the insurance premium, homeowners can save thousands of dollars in the long run. “The annual mortgage insurance for FHA loans is so high, we are trying to get people into conventional loans if they qualify,” Vantrojen says.

The biggest advantage FHA loans have over conventional loans is the low down payment requirement. But conventional loans, with a 5 percent down-payment required, might be a better deal when you factor in the mortgage insurance payments, says Vantrojen.

“I will always look at options for conventional loans [for homebuyers],” says Vantrojen, president of Geneva Financial, a mortgage banking firm based in Tempe, Arizona. “The guidelines for conventional loans are changing, and a person who couldn’t qualify for one a month ago might be able to qualify now.”

Bad Advice No. 5: “Trust me, I know what I’m talking about.”

If you’re in the market for purchasing a home loan and in need of a little guidance, you might want to think twice about listening to someone who tells you: “Trust me, I know what I’m talking about.”

“One of the most common mistakes is not getting advice from a mortgage investment advisor,” says Hormozian. “Any time you don’t seek advice from a professional, you could be in trouble.”

But not all mortgage professionals are created equal, which is why Hormozian says homebuyers should make an effort to consult and get the opinions of established mortgage advisors, licensed mortgage companies, and reputable professionals when they are ready to purchase a loan.

“At the end of the day, my job is to make sure my client will have a comfortable life and a sound investment,” Hormozian says. “If I feel they are going to have a hard time making a payment or living up to that liability, I have to advise against it.”

For example, if someone tells you it’s a great idea to buy investment property as a source of instant income, you better consider the source. Instead of talking to real estate agents, homebuyers should talk to unbiased resources, who could help them avoid potential mortgage heartaches, says Vantrojen.

 “Do your due diligence, talk to industry professionals – people who have been real estate investors and [who] can tell you the highs and lows of owning real estate,” he explains.

If owning a new home for you and your family is a main objective, Percival says it might be a good idea to check whether you are dealing with licensed mortgage professionals. He suggests verifying mortgage loan originators (MLOs) and their MLO license numbers through the National Mortgage Licensing System (NMLS), which performs this service for free.

Originally appearing on Yahoo! Homes.com

How to Paint a Door

how-to-paint-a-door-2“Painting a door…pretty simple right?  Well maybe not.  It’s an easy way to to add a pop of color to a room, but only if done properly.  Take your time and plan it out before you start to make sure it gets noticed for all the right reasons!”

 

 

Denise Buck & Ed Johnson – DC Metro Realty Team

Considering the low cost of the project and the relative ease with which it can be completed, painting a door is a terrific way to add a punch of personality to any interior. Painting a door involves virtually no risk: If you decide to paint the door orange, let’s say, and you end up hating how it looks, no problem: You can always revert to the original color or experiment with a different one. That said,painting a door is different from painting other surfaces. It requires more planning, a slightly modified approach, and a few supplies you might not have anticipated. Follow the steps below, however, and you ought to encounter few difficulties. 

MATERIALS AND TOOLS 
– Interior paint 
– Sandpaper 
– Tack cloth 
– Mineral spirits 
– Painter’s tape 
– Paintbrush 
– Roller (with paint tray) 

[inset] 

STEP 1 
If you’ve painted before, you’re most likely familiar with the idea that proper surface preparation means the difference between a smooth, lasting, beautiful finish and a sloppy-looking job. Satisfying, professional-level results begin with sanding, which goes a long way toward ensuring that the paint readily sticks to the door. Use 120-grit sandpaper and either manually, or by means of a hand-held power sander, sand the surface of the door in the direction of the wood grain. Once finished, wipe down the door with a lint-free tack cloth dampened with mineral spirits. Doing so removes the dust and oils that can interfere with paint adhesion. 

STEP 2 
Of course, the presence of hardware—that is, hinges and knobs and perhaps a locking mechanism—spells the crucial difference between a door panel and a wall of plaster or gypsum board. Avoid getting any paint on the door hardware, not only for aesthetic reasons, but also because you might disturb the hardware’s functioning. The safest course is to remove the knob and lock—or to completely remove the door from the hinges—before you start painting in earnest. For those looking to avoid that sort of hassle, a decent compromise would be to protect the metal parts of the door with strategically positioned painter’s tape. 

STEP 3 
Paint the frame of the door (also known as the casing) first—assuming you want to—so that any errant brush strokes land on the door panel that you’re going to paint anyway. If you do choose to paint the frame, use a one- or two-inch brush and let the coat dry completely before you proceed any further. That way, you won’t have to tread carefully later on, fearing that your next movement might result in an unsightly smudge. 

STEP 4 
Are you painting a door with inset panels? If so, paint those before the rest of the door. As you did with the door casing, use a one- or two-inch brush for this round of detail work. Your goal is to get these more-demanding aspects of the job out of the way, so you can then speedily finish with a roller. 

STEP 5 
A roller not only enables you to work faster, but it also delivers a smoother finish. As you go, remember to blend in any brush marks created in earlier steps. To avoid leaving fingerprints, it’s smart to paint one side of the door, let it dry completely, and then go on to paint the edge of the door and the opposite side. 

A word to the wise: While the paint is drying, minimize imperfections by keeping pets and children away from the door. Replace any hardware you’ve removed only after the paint is fully dry. Finally, step back and marvel at what a difference a painted door can make!

Originally appearing on BobVilla.com

How to Clean Granite Countertops

how-to-clean-granite-countertops“Many of you have either purchased a home with Granite, just upgraded to Granite, or are thinking about Granite…but do you really know how to clean it?  Don’t make the mistake of using ‘normal’ cleaning products.  Take  a few tips from the pros and do it right!”

 

Denise Buck & Ed Johnson – DC Metro Realty Team

In many people’s minds, granite means strength and resilience. But to clean granite countertops successfully, a homeowner must act with caution. The stone can actually be damaged by many of the products and techniques that are perfectly safe to use on other kitchen surfaces. You don’t have to be a genius to clean granite countertops; the job just requires a bit of extra care and attention. Follow the steps outlined here, and you’re bound to be satisfied with the result of your efforts. 

REGULAR CLEANING 
Your best bet is nothing more sophisticated than mild dish soap that’s been diluted with water. Bear in mind, however, that because granite scratches easily, the solution ought to be applied with a cotton cloth or soft sponge—that is, not with an abrasive scrubber. Before gently wiping down the counter, wring out the cloth or sponge so as not to compromise the highly absorbent stone (it can become discolored under standing water). Dry off the countertop as a final stage in this routine, not only to protect the granite from water damage but also to eliminate streaks and leave the surface with an eye-catching, irresistible shine. 

STAIN REMOVAL 
Don’t panic! Most of the time, stained granite countertops can be cleaned with household items so common that you probably already have them in your pantry. No matter the source of the stain, start with baking soda. If you wish to clean a water stain, mix the baking soda with a small amount of hydrogen peroxide. For an oil-based stain, mix the baking soda with water. In either case, the mixture should generate a thick paste. Generously spread that over the stain, then cover the area with plastic wrap, taping down its edges. Leave the stain remover overnight (or even for a couple of days), before rinsing and wiping down the granite. 

ADDING PROTECTION 
Most installations of granite are protected by a layer of sealant. If you’ve repeatedly tried and failed to remove stains from your counters, chances are that the sealant has ceased to function as it should. In situations where the sealant is to blame, stained granite becomes difficult or impossible to clean, at least for the average do-it-yourselfer. Your best bet is to hire a professional to completely clean and then properly reseal the stone, thereby preventing future problems.

Originally publish by Bob Villa on BobVilla.com

5 Upgrades to Consider when Re-Roofing

reroofing“Putting a new roof on a home is something that almost every homeowner has to deal with at some point.  Once you’ve made that decision there a several additional upgrades that can and should be considered at the same time.”

Denise Buck & Ed Johnson – DC Metro Realty Team

Although re-roofing is not necessarily a glamorous home improvement, it is certainly an important one. If you are planning a new roof, consider these 5 upgrades that will make your roof more beautiful, functional, and long-lived.

Re-roofing your home is not the most glamorous of home improvements. You’ll note that HGTV shows rarely even mention the roof. Unlike decks, kitchens, and baths, the roof is not really something you’d invite your friends over to admire. But re-roofing does present some appealing opportunities for the homeowner who wants to reduce maintenance and unnecessary expenses for years to come. Here are five roof upgrades to consider when you are about to reroof your home.

1. Install an airtight chimney cap
Unlike masonry and metal chimney caps that are designed to keep rain and (if screened) birds and other critters out of your chimney, airtight caps are about saving energy.

When your fireplace is not in use, warm air from inside your home is literally gushing out the chimney when the weather is cold. The damper in your firebox does little to stop it because it is not airtight.

Ask your roofer about installing an airtight chimney cap while the roof is being worked on. These units are spring-activated. To open the chimney cap, you just tug on a steel cable that’s attached to a bracket inside your fireplace. Pull it shut after your fire is completely out. An airtight cap has the added benefit of keeping animals from nesting inside your chimney.

2. Install eave flashing
If you’ve ever experienced damage from an ice dam, you might want to invest a little extra when re-roofing to install eave flashing. These peel-and-stick bituminous membranes are applied prior to shingling to a depth that is 2 feet inside the exterior wall plane (three feet on low-pitched roofs). The membranes self-seal around roofing fasteners, forming a watertight seal over the eaves, which are the portion of the roof most susceptible to ice dams. Bituminous eave flashing may also be specified for other vulnerable roof areas, such as over valleys and around skylights and dormers.

3. Improve roof ventilation
Attics become like furnaces in summer if they are not well ventilated. That heat buildup radiates to the rooms directly below the attic, making them uncomfortable. To keep the attic—and your home—cooler, be sure your roofing contractor installs ridge vents across the top of your roof. Barely noticeable from the street, ridge vents allow air movement beneath the ridge cap shingles. For ventilation to be effective, soffit vents located under the eaves draw cooler air into the attic as hot air is being expelled. Gable vents, which are located near the roof peak of exterior walls, may also be needed to ensure adequate airflow. A cooler attic means your home will be more comfortable during the summer without your having to spend a fortune on air conditioning.

4. Choose an energy-efficient shingle
The recommendation for a cooler roof used to be to select light-colored or white shingles. This option, however, wasn’t always aesthetically appealing to homeowners. Today’s new reflective shingles come in assorted colors, from popular slate to wood tones. The granules not only reflect the sun’s radiation but also quickly reemit much of the heat that is absorbed. Depending on your climate and your home’s construction, a cool roof can save between 7 and 15 percent of your cooling costs.

Photo: LeafGuard Brand Gutters

5. Install low-maintenance gutters
While you’re having your home reroofed, it’s also a good time to scrap your old gutters and install new ones—especially if your existing gutters are misaligned or unsightly. Gutter systems with built-in curved hoods, such as those from Englert LeafGuard, are designed to be maintenance-free. The patented design works on the scientific principle of water adhesion, allowing rainwater to travel down and around its curved hood and into the gutter while deflecting leaves. This prevents clogs and unsightly staining on gutters and siding due to gutter overflow. It also means you can forget about the messy and hazardous chore of climbing a ladder to clean your gutters. The one-piece, seamless LeafGuard Brand gutters are generously sized for the heaviest of downpours, and homeowners like the clean architectural way they define the roof eaves. They even come in a variety of colors, allowing you to choose a tone that will complement your trim, roofing, and siding. Use LeafGuard’s design tool to get a preview of how the gutters will look with your new roof.

With all these improvements, maybe a new roof is worth celebrating.

This posts facts and opinions are those of BobVila.com.

Be a Considerate Buyer when Buying a New Home

Handing over keys“As a Buyer, when you are looking at homes, and especially when deciding to make an offer, always remember to be considerate of the Seller.  More than once we have seen deals go south because one or both parties thought the other was being unreasonable or inconsiderate.  In contrast, we have also seen offers and negotiations go very well when the Seller ‘liked’ the Buyer.  Even though in the end this is a business transaction, it is also a very personal and emotional time for those involved.  Please follow these tips when you set out to buy your next home.”

Denise Buck & Ed Johnson” – DC Metro Realty Team 

Consideration associated with a contract is generally thought to be the price and terms but being sympathetic and courteous towards the seller could make a difference in getting the home you want.

Business people, like store owners, expect to deal with customers and even come to expect behavior that might not be accepted in a purely social atmosphere. Homeowners, on the other hand, may not be aware of what to expect. They are opening the sanctity of their home to the public for review and criticism. Buyers may be detached from emotional feelings while the sellers might react unfavorably to comments that are taken personally.

  1. Be on time for appointments; cancel if necessary. The sellers may be rearranging their schedules and making an additional effort to make it convenient for you to see the property.
  2. Be a good guest and respect the seller’s privacy. Look at the home and avoid looking at the seller’s personal items; there is no reason to look in refrigerators or furniture drawers.
  3. Don’t sweat the small stuff. Try to focus on critical items of a home like location, floor plan, layout, size and not dwell on cosmetic items that are easily and inexpensively changed.
  4. It’s not a good negotiating technique to list the defects. Most people become defensive when presented with a list which could have the opposite effect of helping you get a better deal.
  5. Limit your visits until you actually own the home. It’s natural to be excited and making plans to move into your new home but it is still the seller’s until closing and they’re making plans to move too.
  6. Negotiations are generally finished when a contract is completed. It can be frustrating to continually be asked for “one more thing.” Make a deal with the seller and live with it. If there’s something you’re not sure about, specify it in writing in the contract.

Some things are obvious: the seller wants the most for their home and the buyer wants to pay the least possible. Showing consideration to the seller about things that don’t have anything directly to do with price can actually benefit the buyer.

5 Ways to Improve Your Homes Curb Appeal

Curb Appeal“Nothing Quite sets the tone like good Curb Appeal when you are preparing to sell your home.  This is one of the first things we work on with our Sellers.  It’s all about getting that good first impression.  Through a Buyers eyes, if you can’t take care of the exterior, how could you take care of the interior?”

 

DC Metro Realty Team – Denise Buck & Ed Johnson

House hunting is a little like speed dating. You only get a few minutes to make a great impression. That’s why curb appeal is so important.

“When potential buyers pull up to your house, they’re asking themselves: Is this place worth getting out of the car to look at?” says Kevin Kieffer, a real estate agent based in California’s East Bay area. “Your house needs to be framed up: It needs to look like a picture when people pull up. They expect to see tasteful paint colors, well-trimmed grass, new bark, fresh flowers — the whole deal.”

Real estate agents participating in Zillow’s 2014 Home-Selling Season Survey identified curb appeal as a key way to make a property more attractive to buyers. Kieffer says that, while it’s hard to quantify return on investment, curb appeal is the best way to get quick action and top dollar for your property.

“In a market like ours, if people can see that a property is turn-key and they’re not going to have to spend time resodding or painting, you’re more likely to get more interest,” he said. “If you end up with a multiple-offer situation, it’s typical for the price to go up by 3 percent per bidder — that can add up to $10,000 over asking price really quickly.”

The great news is that you don’t have to spend a lot to make big changes to your home’s exterior appearance. Start the makeover by cutting the grass, power washing the porch and walkway, and getting rid of clutter. Then, tackle one or all five of these perk-up projects to enhance your home’s curb appeal.

Hardware redo

 

Hardware

 

House numbers, a wall-mounted mailbox and a porch light can add interest to your home’s exterior — unless they’re dated or dinged up. Ideally, all this hardware should match, both in style and finish. You’ll also want to choose hardware that coordinates with the style of your home. Sleek, brushed nickel house numbers, for instance, might look great on a contemporary home, but they’d probably be out of place on a log cabin.

Add a splash of color

 

Red front door

 

You can buy a gallon of quality exterior paint for about $25. That should be enough to add new color to — or simple freshen up — your front door, shutters and trim. Don’t be afraid of bold colors; just make sure they complement the other shades on your house and in your landscape. Of course, if the rest of the house is peeling, you may need to outlay more cash and paint the whole thing — or, at the very least, the side that faces the street.

Go green

 

Plants and flowers

 

Plant some flowers along your front walkway or add planters by your front door to give your home a welcoming feel. You can purchase pre-planted containers from your local garden center or create your own with your favorite plants. Window boxes are another great way to add color and interest to your home’s exterior. Just be sure you tend to your flowers after you plant them. Dying geraniums will not enhance your curb appeal.

Manicure trees and shrubs

 

Manicured landscape

 

Your house may be gorgeous, but that won’t matter if no one can see it. When your home’s best features are obscured by overgrown branches and shrubs, it can make the house seem uninviting and unkempt. In addition to looking unappealing, trees that rub against your house can damage your siding and provide a direct pathway for squirrels and other rodents that want to get onto your roof or under your siding. Tame bushes and branches or hire someone to do the job for you.

Bring the indoors out

 

Front porch seating area

 

If your outdoor space allows it, add a comfortable place to sit. Use an outdoor rug to visually anchor a seating area and then add a loveseat or chair and small table. Colorful cushions and pillows in outdoor fabrics will add punch to the space; select cushions with removable covers so you can wash them or swap them out as seasons change. Choose all-weather art to add the finishing touches to your outdoor space. If you already have outdoor furniture, make sure it’s clean and cared for. Create a setting that’s so attractive prospective buyers can’t resist it.

Photos courtesy of Zillow Digs

Don’t Ignore Adjustable Rate Mortgages

ARM“After everything that happened in the Market a few years ago, most people decided that ARMs (Adjustable Rate Mortgages) were just plain bad.  That isn’t always the case.  Don’t write them off until you’ve talked to a lender about all the options available to you.  Depending on your situation it might just make sense.”

 

DC Metro Realty Team – Denise Buck & Ed Johnson

94% of purchasers last year opted for a fixed-rate mortgage at some of the lowest rates in home buying history. Yet, some of them will pay more in interest than necessary based on the time they’ll own the home.

If a person only plans to be in the home a few years, the adjustable-rate can offer significant savings.

Not only is the interest rate on the adjustable-rate lower than the fixed in the initial period, amortization on a lower interest rate amortizes faster than a higher interest rate.

In the example shown below, a $200,000 mortgage for 30 years is compared using a 4.25% fixed-rate to a 3.25% 5/1 FHA adjustable rate. The first five years of the ARM generates a $113.47 a month savings which accumulates to $6,808.20. In addition, due to faster amortization on lower interest rate loans, the unpaid balance at the end of five years will be $3,001 lower on the ARM for a total savings of $9,801.

Assuming the adjustable-rate mortgage was to escalate the maximum allowed at each period, the breakeven would occur in 8 years and 6 months. If a person were to sell the home prior to this point, the ARM would provide a lower cost of housing for the homeowner.

For some people, the uncertainty of how the interest rate may change is not acceptable. On the other hand, for the risk tolerant individual who may be more confident in financial matters or who may know when they’ll be moving next, the ARM can be a smart choice.

To make projections using your individual numbers, see the Adjustable Rate Comparison.

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Investment Property Exchanges Save $’s

Exchange 1031“Many of our clients become landlords by renting out their 1st home when buying a new one.  The following article provides some information on benefits of using a Section 1031 when buying and selling your rental or investment properties.”

DC Metro Realty Team – Denise Buck & Ed Johnson

 

Section 1031 exchange for rental and investment real estate is a tool that allows investors to move the gain from one property to another without immediate income tax consequences.

An instant benefit is to postpone the tax due which gives the investor a larger amount of proceeds to invest. In the example shown, the investor has 21% more proceeds to invest and grow over time than if he had paid the taxes due instead of exchanging.

A legitimate long-term goal might be to make qualified exchanges from one property to another until the investor dies. The heirs would then receive a stepped-up basis on the property based on the market value at the time of the decedent’s death and possibly avoiding taxes altogether.

There are specific requirements to be met in order for the exchange to qualify. For more information on exchanges, see IRS publication 544. In addition to enlisting the services of a real estate professional familiar with investment property, seek the help of Qualified Intermediary to facilitate the intricacies of the exchange. Your real estate agent can help you locate one.