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Declutter for a Better Sale

Smart Moves by by Ellen James Martin
by Ellen James Martin
Smart Moves | May 27th, 2015

In the movie "5 Flights Up," Diane Keaton and Morgan Freeman portray a married couple putting their Brooklyn apartment up for sale. Their real estate agent exhorts them to remove "all your clutter." The artist-husband scoffs at the notion that items in his studio are clutter. Still, he does as instructed and soon the couple receives several strong bids for their place.

Like it or not, home sellers who prune their accumulations fare better than those who fail to remove superfluous items prior to selling, says Vicki Norris, who heads her own professional organizing firm.

"People want to picture themselves living in your place, and they can't do that if it's crowded with all your stuff," says Norris, author of "Restoring Order to Your Home."

Would-be sellers are not only advised to streamline their possessions, they're also urged to reduce the inflow into their home until they receive a solid contract for sale. And that means less shopping.

Ironically, many people begin an anti-clutter campaign with a shopping spree involving the purchase of numerous storage containers. But all those big plastic bins prove more of a hindrance than a help, according to Barbara Hemphill, author of "Less Clutter More Life," who began her career in professional organizing in 1978.

"What's inevitable is that those containers will just get in your way," she says.

"Before you start acquiring new items, you need to measure your new space and see what will fit," says Judith Rough, a downsizing expert.

Here are a few pointers for sellers:

-- Enlist outside help with major projects.

Rough estimates that to fully declutter an average-sized house usually takes at least four weeks of concentrated effort. And to avoid getting sidelined with the feelings that the process arouses, many people need assistance.

"Going through everything you've acquired for decades is extremely emotional -- particularly if you've raised your family in that house," Rough says.

Sellers often turn to relatives for help. But Rough says you're better off with an objective third party --ideally a professional organizer. One source for referrals is the real estate agent who will list your property. Another is the National Association of Professional Organizers (napo.net).

If you're on a budget, Rough suggests you limit the organizer's help to just a few hours of planning time. Then also pay the person for a few one-hour "check ins" on a weekly basis, during which you'll receive a "homework" assignment for the following week.

-- Query your loved ones on items they wish to keep.

Are you the parent of grown children? If so, Rough says you may be tempted to hang on to nostalgic possessions you believe your offspring may someday want to claim. But as Rough says, "your kids will want far less of your stuff than you expect." So she suggests you ask them directly what they want.

To illustrate, she tells the true story of a former client who'd retained her wedding gown for decades on the assumption that her teenage daughter would one day wish to use it.

"But when the mom asked the girl if she ever planned to wear the gown, she replied that she 'wouldn't be caught dead in it'," Rough recalls.

-- Photograph cherished items that you can't keep.

Before seeking to declutter, Hemphill often recommends that home sellers take photographs of entire rooms to create compact memories of these spaces. She also advises taking pictures of valued items that are too large to bring to the next property.

"Converting prized belongings to art is a great way to hasten the clearing process and make your house more saleable," she says.

In addition to taking photos, Hemphill recommends you keep a small box of special items from the children's early lives, such as clothing and toys. Still other mementos, including drawings or small pieces of sculpture, can be framed or placed in shadow boxes.

Those who convert precious items from your kids' early years into art or photographs often find the transition to their new environment to be emotionally easier, Hemphill says.

-- Store keepsakes and valuable documents in a safe manner.

To safeguard small items that need to be kept, such as passports and diplomas, Rough suggests you encase them in clear plastic sheet protectors and place them in a three-ring binder. Alternatively, you may wish to buy a storage item designed for vital records. This is known as a "PortaVault" (securitaonline.com).

-- Find a new home for your discards.

In sifting through your accumulations, you're bound to find many things you no longer want, need or value. There's obviously little reason to haul these items -- including extra books, toys and pieces of unused sports gear -- to your new property.

Whenever possible, Rough encourages you to donate serviceable items to a reputable charity. Through the years, for example, she's donated many of her own discards through church groups.

Another option is to post your giveaways on a social network account, which could result in finding a friend, relative or acquaintance who would appreciate receiving them.

"It's hugely satisfying to know that things you paid good money for will find the right home," Rough says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

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Tips for Selling a Showplace Home

Smart Moves by by Ellen James Martin
by Ellen James Martin
Smart Moves | May 20th, 2015

A woman owned a large colonial house close to Harvard University that she'd pampered for more than a decade. Among other features, she'd added a heated and air-conditioned conservatory. She'd also upgraded the kitchen with elegant limestone countertops.

When it came time to sell, the owner wanted a premium to reflect the exceptional condition of her house and its perfectly groomed gardens. And to the surprise of her listing broker, Fred Meyer, she soon received a bid offering every penny of that price.

"The over-the-top mint perfection of this house, along with its location, put it in a class of its own," he says.

Though the seller of this colonial was able to command a price higher than that fetched by other houses of comparable size in the area, Meyer cautions against seller hubris on pricing.

One way to get a handle on pricing for an exceptional property is to hire a real estate appraiser for an impartial evaluation.

The timing of your sale is another factor to consider when deciding how much to ask. Dorcas Helfant, a former president of the National Association of Realtors (www.realtor.org), says the owners of a showplace can be a bit bolder if they live in an area that currently favors sellers.

"But if you're selling a showplace in a buyer's market, I wouldn't go more than 3 to 5 percent above other homes of the same size in your area, even if your place is gorgeous," she says.

Here are pointers for sellers:

-- Don't assume you'll recoup every dollar spent on upgrades.

Many people who've been devoted to their properties have spent lavishly on improvements, and did so assuming they'd continue to live in the property indefinitely. Yet Helfant says sellers shouldn't assume they'll be reimbursed for every outlay they've made.

"You're especially unlikely to get all your money back for upgrades you've customized to your own particular preferences and taste," Helfant says.

"That's why builders outfitting a model home typically go for light, neutral features that appeal to the widest possible range of tastes," she says.

-- Look for a listing agent with a good eye.

"Visuals are especially important to show off a very good-looking house. These include photos for print advertising and video for online listings, including the 'virtual tours' now in widespread use," Helfant says.

She notes that an increasing number of agents are taking classes in digital photography and producing the sort of professional-quality visuals sellers need to compete.

-- Request a neighborhood-wide open house.

Some real estate experts downplay the value of an open house as a way to attract buyer interest. They say many open house visitors are either curious neighbors or wishful buyers who lack the money to go through with a purchase. In contrast, well-qualified buyers are typically guided through homes by their agents.

But Helfant says there's a way to increase the impact of an open house conducted for your showcase property: encourage other sellers in the neighborhood to hold open houses the same day, thereby increasing your potential draw.

Having multiple homes open simultaneously can be especially beneficial to the sellers of an attractive property. That's because buyers who visit multiple houses can easily make comparisons. And if your home is in superb condition, it will stand out from the pack.

-- Don't let owner pride cause you to back off from your selling plans.

Tom Early, a broker who was twice president of the National Association of Exclusive Buyer Agents (www.naeba.org), says pride is one characteristic many showplace owners have in common. As a result, they're often ambivalent about letting go and sometimes consider backing off from a planned sale.

But before retreating, Early urges you to look at the big picture -- taking into account the personal and financial implications of postponing.

"Granted, prices could rise in the future in your area. But you should factor in all the ways you could lose out by waiting," Early says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

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Tips for Buying in High-Priced Metro Areas

Smart Moves by by Ellen James Martin
by Ellen James Martin
Smart Moves | May 13th, 2015

Escalating home prices in many metro areas have brought new urgency to the quest for first-time homeownership among young adults who worry that, as renters, they're losing ground financially.

"The problem is there's a huge trend toward everyone wanting to live urban. Because of that, a lot of affordable housing is getting sucked out of close-in neighborhoods where young people want to buy," says Jane Fairweather, a top-selling real estate agent in the field for more than 20 years.

In especially popular urban neighborhoods, she notes, builders are even tearing down older homes to make way for new, higher-end properties.

"In many prime areas, the entry-level house is going away," she says.

One proven approach to housing affordability for first-timers is to accept a property in "as is" condition. The best choice is a place that requires only cosmetic improvements, such as painting, that buyers can do themselves immediately or minor improvements, such as new kitchen flooring, for which they could hire contractors in coming years.

"You may need to take a house you don't like now but that you can make into your dream place going forward," Fairweather says.

Here are a few other pointers for homebuyers:

-- Take your time before making a final selection.

Even an alluring, well-priced property isn't a good deal if it's poorly located, says Michael S. Knight, a longtime financial adviser affiliated with the Garrett Planning Network (garrettplanningnetwork.com).

Knight urges homebuyers to make sure they consider neighborhood alternatives before settling on one area or property.

"Often people select a neighborhood too quickly," says Knight.

To help with your due diligence, he says it's smart to talk with an agent who specializes in the sale of real estate in each neighborhood on your short list.

Which communities are most likely to hold or gain value in the future? Ashley Richardson, an agent affiliated with the Council of Residential Specialists (crs.com), says access to high-quality schools is one critical factor.

"Strong schools anchor property values," Richardson says.

What's more, she says buyers of all ages want to live in an area with quick access to stores and restaurants.

"Look for a neighborhood with a nearby Starbucks or other coffee shop. Many people love to take a Sunday morning stroll for coffee," Richardson says.

How can you quickly tell if an area you're considering is pedestrian-friendly? One way is to visit a website that rates communities with "walk scores." In many cases, this website will also give you a neighborhood's "transit score" and "bike score."

-- Hunt for a deal from sellers who are highly motivated.

Richardson recommends that buyers searching for a good deal consider homes that have languished unsold for multiple weeks, usually because they were overpriced when they first hit the market.

"After about three months, many people are exhausted with the selling process and the need to keep their place clean all the time. At that point, they become much more flexible on price," she says.

Some of the most motivated sellers are those who've already moved. If a property is nearly vacant, or there are no clothes in the closets, you can normally assume its owners have moved. To learn more, pose polite inquiries to neighbors living near the place.

"Stop by on a weekend when you're likely to find local residents out in their yards. Tell them you like their neighborhood and would appreciate knowing more about for-sale properties there. If you're polite, most people will try to help you," Richardson says.

-- Search for a property suitable for your future needs.

In some up-and-coming areas near vital cities or town centers, property values are ascending nicely. But even there, Tom Early, a real estate broker who was twice president of the National Association of Exclusive Buyer Agents (naeba.org), advises against buying for the short term.

"It's true that most real estate markets have strengthened in recent years. But from a financial standpoint -- and due to high transaction costs -- it's always safer to buy a place where you could live comfortably for at least five to eight years," says Early.

-- Check out nearby market values before committing to a purchase.

Once you've narrowed your focus to a single home in a desirable neighborhood, you may feel ready to make an immediate bid. But before doing so, Richardson says it's wise to obtain information on recent sales in the area.

"It's not only sellers who should review the numbers on comparable home sales. Buyers also need statistics about recent sales for like properties to avoid offering too much," she says.

To assess the current market value of a property you wish to buy, ask your agent to give you numbers on at least three similar homes in the same community that have sold recently -- the fresher the data, the better.

What if you're competing with others for a place in a highly desirable neighborhood? In that case, Richardson says you may wish to add a small monetary sweetener to increase your odds of beating rivals.

"Just $1,000 to $2,000 might make all the difference, and that amount will be inconsequential over time. But don't go overboard, or you'll regret it later," she says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

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