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How to Downsize to Two Homes Instead of One

Smart Moves by by Ellen James Martin
by Ellen James Martin
Smart Moves | November 4th, 2015

A retired couple in their late 60s owns a spacious red brick house in a coveted Washington, D.C., suburb where home values are still ascending. They love the walkable community -- close to shops, restaurants and, best of all, their grown daughter.

Sounds perfect, except for two factors: Upkeep on the big brick house has become arduous for the couple, and they no longer enjoy Washington winters. So they're now planning to sell the large place and downsize to two small condos -- one near their daughter's house and another in sunny Arizona.

Obviously, not all retirees can afford to swap one large house for two smaller ones. When they downsize, many must liquidate the family home just to support a basic lifestyle in a rental unit. But couples whose real estate has appreciated can now consider a two-home plan, says Margie Casey, a long-time real estate broker and the author of "Relocate at Retirement or Not?"

"A couple's primary place is usually near their base roots, ideally close to family and longtime friends," Casey says. "The second is often just a small condo or a detached 'villa' in a resort setting like the beach or mountains."

Years ago, ownership of two homes was solely for the wealthy. But now, more middle-class retirees are able to trade down from the big family house to two small domiciles in separate states.

One motivating factor for those downsizing to two smaller homes is the real estate recovery, which has raised property values in many communities.

"People are so happy that they can finally pull their equity out of that big house and move to wherever they want to live. Sometimes this involves two smaller places in different areas," Casey says.

Wherever they choose to live, most retirees want low maintenance, with exterior upkeep provided through a condo or homeowners' association.

Here are a few tips for retirees pondering a two-home plan:

-- Head to a financial planner before committing to any major move.

Casey says anyone considering two-home ownership should first discuss the financial implications with a professional adviser.

"It's a given you should talk to a financial planner who can crunch numbers and give you a second opinion," she says.

In theory, it should be no more expensive to own two small units than a big one worth twice the price. But in reality, dual homeownership can be more expensive, especially after taking into account homeowner's association fees and travel costs. Taxes are a key element as well.

"Once you investigate the taxes, you may decide to live one state away from your grandchildren, assuming that lowers your cost of living," Casey says.

-- Consider whether you'd like small-scale living in a condo.

Michael Crowley, a real estate broker and past president of the National Association of Exclusive Buyer Agents, says homebuyers contemplating the purchase of a condo should exercise caution.

"Going from a house to a condo is a big change. It's just personal taste, but some people never adjust well to condo living," he says. Those considering a dual-home retirement plan should be doubly cautious about condo purchases.

As he notes, there are other options for small-scale living that provide many of the worry-free features of a condo or apartment. For instance, in many "planned unit developments," you can buy a one-level detached unit that comes with exterior maintenance, including lawn service.

-- Factor in transportation access before deciding where to relocate.

Many a retiree has selected a retirement setting without taking into account airport access, which can be a major error.

"Try to live near an airport that's a hub for one of the major carriers. That can save you a ton on travel costs," Casey says.

Another transportation factor to consider is proximity to major roadways, including interstates.

-- Contain your expectations about visits from your offspring.

"Living near the grandkids is a top consideration for lots of retirees," Casey says, but she advises realism about how often you'll see family -- no matter how close they live.

"Your kids have busy lives, with dual careers and limited vacation time. Sure, you hope to see them often. But don't focus your whole retirement on this factor. What's equally important is to choose a lifestyle that works for you," Casey says.

-- Assess the benefits of two-home living.

One reason retirees like living in two places is to take advantage of two distinct climates, perhaps a warmer place from winter through spring and a cooler one the rest of the year.

By living in two places, many retirees have the best of both worlds. They can choose a primary setting near family and a secondary one to satisfy a quest for intellectual stimulation, perhaps in a college town where they can enjoy cultural events, lectures and classes.

Of course, not all retirees are suited to a two-home existence. Some prefer the serenity of a settled life with little travel involved. But others thrive on a dual-town living.

"The world is spinning faster and faster. While they still have time, retired people want an exciting life. There's no monotony when you live in two places," Casey says.

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

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Pointers on Selling Your Baby Boom Era House

Smart Moves by by Ellen James Martin
by Ellen James Martin
Smart Moves | October 28th, 2015

It's not only the U.S. population that's aging, it's also their houses. More than 40 percent of American homes are more than four decades old.

"A large portion of our housing stock was constructed during the '60s and '70s," says James W. Hughes, a professor and housing expert at Rutgers University.

Despite the current surge in renovation and reconstruction, many of the country's more than 100 million properties have a distinctly dated feel -- both on the exterior and the interior.

The problem for the sellers of these older homes is that facades and floor plans that once appealed to buyers are no longer in favor, particularly with the millennial generation.

"Flow is what it's all about for people in their 20s and 30s," says Tom Early, a veteran real estate broker and past president of the National Association of Exclusive Buyer Agents. "They like high ceilings and expansive floor plans. They hate the boxed-in feel that comes with low ceilings and a lot of small rooms."

For example, typical young buyers crave a large kitchen that opens onto an expansive "great room." They also look for a spacious master bedroom that connects to a well-appointed 'ensuite' bathroom.

Of course, when it comes to the tastes of millennial buyers, there are exceptions to the rule, says Sharon L. Ellsworth, a real estate broker and co-owner of a Re/Max Realty office.

"Some purchasers really appreciate the clean lines of mid-century contemporary houses," Ellsworth says.

But if you're seeking to sell a very ordinary and not-very-attractive house built decades ago, you'll need to factor its age into your decision on pricing, says Eric Tyson, co-author of "House Selling for Dummies."

Here are a few pointers for sellers:

-- Get a grasp on how your place looks to others.

Those seeking a candid assessment of their home's exterior appearance may wish to poll relatives, Ellsworth suggests.

"More than your friends, your relatives will give you their honest opinion. This can be helpful when you decide what price to ask," she says.

-- Highlight the positive in your marketing materials.

"Rarely does a house sell on advertising alone," Ellsworth says.

Even so, creating effective marketing materials can help draw people into a property they might otherwise be unwilling to visit due to its lack of street appeal.

"Pick out the two or three strengths of the house and be sure your agent highlights these in your marketing," says Tyson, the real estate author. "Maybe you have wonderful natural light, or a beautifully wooded backyard. Think back to the factors that drew you to the house when you first saw it," Tyson says.

If your house is located close to a highly rated public school or is set in a walkable urban area, those are also strong selling points.

-- Consider hiring a photographer.

More than ever, buyers are previewing properties online. It's not unusual for a listing agent to post between four and 10 photos of a house on the Internet.

Your agent may be skillful at taking photos with a cell phone. But if your home shows poorly from the street, Tyson says you could still do better with a professional photographer.

Your listing agent may ask you to cover the photographer's fees. Yet Tyson says the money could be well spent if it brings in prospects who might otherwise fail to visit the place.

-- Request that your listing agent conduct one or more "broker's opens."

Most people are familiar with public open houses, where anyone can show up. But Tyson says a more effective sales tool is a "broker's open," limited to real estate agents from the surrounding area.

"These kinds of open houses are incredibly important. That's because the vast majority of serious buyers still work with agents. If agents come through the house and like it, they're more likely to show it to their clients," Tyson says.

-- Add appeal to your property with a new front door.

It's rare for listing agents to recommend major upgrades to the exterior of a home in order to sell it, but one upgrade that can prove worthwhile is a new front door. The cost: perhaps a few hundred dollars at most.

"The front door is the focal point of the house. If it's attractive, people will focus on this," Ellsworth says.

If you don't want to spend the time or money to replace your front door, consider other, less costly steps, such as repainting the door or adding new polished brass hardware.

-- Emphasize highly visible upgrades.

Not all sellers have time to make surface enhancements to their home, especially if they're making an urgent move. But those with sufficient time -- and funds -- generally more than recoup their expenses, Ellsworth says.

Flowers, new greenery and freshly pruned shrubs help entice buyers who might otherwise refuse to venture inside. Also, outlays for interior painting, carpet replacement or hardwood floor improvements are typically worth doing, as is replacement of outdated kitchen appliances.

"Very visible improvements could pay you back several times over," she says.

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

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Simple Tips for a Quick Sale

Smart Moves by by Ellen James Martin
by Ellen James Martin
Smart Moves | October 21st, 2015

John Rygiol, a real estate broker who's worked with homebuyers since 1971, has a few words of advice for home sellers and their agents: Remember that first impressions count.

"It just blows me away when sellers fail to fix little things that are huge turnoffs to buyers," says Rygiol, who specializes in the sale of upper-end properties.

One of his biggest beefs is with sellers who have broken or tricky front door locks that frustrate buyers even before they step into a place.

"Everyone's time gets wasted, and the buyers get hopping mad," Rygiol says.

Another gripe: sellers with noisy or bothersome pets.

Another turnoff is a house so cluttered with collectibles that buyers can't appreciate the sizes of the rooms or picture themselves living there.

Savvy sellers should not only address these troublesome issues but also take proactive steps to make a property welcoming, says Sid Davis, a veteran of the real estate business and author of "Home Makeovers That Sell."

Here are a few pointers for sellers:

-- Repair or replace faulty front door locks.

Rygiol is hardly the only real estate broker who underscores the importance of well-functioning front door locks. Another is Merrill Ottwein, a former president of the National Association of Exclusive Buyer Agents (naeba.org).

"When the lock doesn't work, this conveys indifference on the part of the sellers and alerts buyers to the prospect of more serious problems within," Ottwein says.

Assuming you have two or more locks on your front door, he recommends you eliminate all but the deadbolt.

"Redundant locks drive a lot of people crazy," he says.

While you're at it, double-check that your doorbell is working perfectly.

"Like a malfunctioning lock, an out-of-repair doorbell is a big turnoff," Ottwein says.

-- Surround your entrance with attractive landscaping.

For those wishing to make a powerful impression on potential buyers, good landscaping is a must, Ottwein says.

One common error committed by sellers is to allow their bushes and other plants to grow too tall or too close to the front walls of the house.

"This obscures the view of the house from the street. The place looks cramped, as if the greenery has been shoehorned in," Ottwein says.

Creating the right landscaping doesn't require an expensive designer. But it may mean removal of trees that are positioned anywhere in the front yard so as to hide the home.

"To me, the definition of a weed is any plant or tree that's out of place," Ottwein says.

-- Make your front door beguiling.

As Ottwein says, the front door of a home can either attract or repel visitors.

Often, the owners of homes that are well kept inside are scarcely aware that their front doors look shabby, he says, because they habitually enter through a back door or the garage. But buyers will undoubtedly come in through the front.

"It's usually not expensive to greatly improve the look of your front door, unless you have a big mahogany door that needs replacing," Ottwein says.

A thorough cleaning and removal of cobwebs in and around the front door is virtually free, but for the expense of cleaning supplies. And a door that merely suffers from peeling paint can usually be redone for under $100.

-- Welcome visitors with pleasant aromas.

Ottwein, a former veterinarian turned real estate broker, is very favorable to pets. Still, he cautions that the smell of animals in a home can repel buyers as quickly as any other factor.

"A lot of people try to use spray fresheners to cover animal smells, cigarette smoke or other bad odors. But air fresheners can be overwhelming and create a very negative impression, like a woman wearing too much perfume," Ottwein says.

A home that is thoroughly clean and devoid of pet problems and mold issues should also be free of odors --assuming nonsmokers inhabit it.

"You don't need to spray anything in your house to make it smell fresh, which is perfect in and of itself. Beyond that, the only positive would be to have the scent of freshly baked cookies or bread circulating in the air," Ottwein says.

-- Enhance your place with flowers.

There's a good reason why flowers are the primary decor items used at weddings and other elegant events. They create a qualitative difference that no other design element can match -- not even the most remarkable furnishings or works of art.

Potted flowers add welcoming appeal when placed alongside the front door of a house. Also, bouquets of cut flowers can make an otherwise unremarkable home interior look extraordinary.

It can be pricey to keep your vases filled with fresh flowers throughout the time period when your property is being shown for sale. But fresh flowers create so classy an impression that many sellers consider flowers their secret weapon.

"Why bother with fake flowers? This is the biggest sale of your life, so it's foolhardy to shortchange yourself on this expense," Ottwein says.

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

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