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How to Sell a Run-Down Home

Smart Moves by by Ellen James Martin
by Ellen James Martin
Smart Moves | August 3rd, 2016

In many popular communities, houses on the high end are selling at a leisurely pace. But in the starter-home category, the supply-demand ratio is very much in the seller's favor.

"We're seeing starter homes sell even before they hit the multiple listing service," says Pam Gebhardt, a veteran real estate broker.

In past years, first-time buyer households were unwilling to even consider a "fixer-upper." But that's now changing in desirable areas where entry-level properties are scarce.

Gebhardt tells the true story of some clients in their mid-20s who want to live in an up-and-coming city neighborhood. To gain entry into the coveted neighborhood of their choice, the couple is now considering a house that would require extensive remodeling work. It's a duplex the current owners attempted to convert into a single-family home, but didn't finish the job.

Are you planning to sell an entry-level property in poor condition? If so, these pointers could prove of value:

-- Seek a seasoned agent for frank advice and wise counsel.

Owners planning to market a run-down home are wise to seek out a listing agent willing to serve as a project manager, says Eric Tyson, a personal finance expert and co-author of "House Selling For Dummies."

"Not all agents will give you unvarnished advice and direction on steps you should and shouldn't take to get your house ready for market. But the right agent will spare you costly errors," Tyson says.

Ashley Richardson, a longtime real estate agent affiliated with the Council of Residential Specialists (crs.com), says a skilled agent should give you a list of doable tasks.

"For example, you wouldn't want to put high-end cabinets into the kitchen of a house that's in overall poor condition. But you might want to have your current cabinets repainted," she says.

As the first step in the agent-selection process, Richardson recommends you interview three candidates, asking each to critique your home and itemize cost-effective steps that would make it more saleable.

"You want someone who will look you straight in the eye and tell you the truth, not someone who just tries to flatter you into giving them the listing," she says.

-- Solicit help with the de-cluttering process.

As Richardson says, many owners trying to sell a home in bad condition feel overwhelmed by the sheer magnitude of the work facing them. De-cluttering is an especially daunting prospect for those with health problems.

"Sellers who can't do this work themselves should ask family members and friends to help," she says.

But what if no volunteers step forward? In such cases, Richardson suggests that owners may wish to hire students or others looking for temporary, part-time work.

"Post an ad asking for help 'pre-packing for a move.' And be sure to check background references on any stranger coming into your house," she says.

Richardson recommends you give the person you hire a series of manageable tasks.

"For example, tell them to pack up the contents of your china closet or an overloaded bookshelf. Tell them to put the packed boxes in your garage in neat stacks," Richardson says.

It may seem counterintuitive for the owners of a home priced for an "as is" sale to bother with the removal of clutter. But Richardson says it's essential.

"No one will buy a house if they can't even see how large its rooms are. People can't see past a lot of clutter," she says.

-- Give potential buyers a feel for your home's possibilities.

Though most owners of property in poor condition lack the funds for major improvements, Tyson says it's important that they make their place at least minimally appealing.

"Nearly all buyers now preview properties online. If they don't like what they see there, they're unlikely to go visit the place, even if it's priced well and located in their perfect neighborhood. That means any house that can't pass the online test will likely be overlooked," he says.

Besides clearing out your clutter, you'll want to remove any beat-up furniture or window coverings that make your place seem dark and drab. Your agent may have a stock of furnishings to lend you that would make your place look fresher.

In addition to cosmetic touches, Tyson says the owners of a run-down home should consider providing visitors with mock-ups and contractors' estimates for needed improvements.

"Always remember that most people are devoid of imagination -- meaning they'll need help to envision how great your house will look once all the necessary work is done," Tyson says.

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

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Tips For Maintenance-Free Love

Smart Moves by by Ellen James Martin
by Ellen James Martin
Smart Moves | July 27th, 2016

People age 35 and younger represent the single biggest share of the home-buying market. Spurred by near record-low interest rates and rising property prices, many in this age group are now eager to buy a place. But most remain highly resistant to the purchase of a "fixer-upper."

"Most (millennials) have little extra time or inclination to take on a lot of routine maintenance, let alone big home improvement projects," says Tom Early, a real estate broker who twice served as president of the National Association of Exclusive Buyer Agents (naeba.org).

Karen Rittenhouse, a real estate investor and author of "The Essential Handbook For Buying a Home," says many first-time buyers who face affordability challenges have no alternative but to choose a fixer-upper or retreat from the market altogether.

Rittenhouse's investment company is no longer doing much direct home improvement work itself, she says, "because rehabbing is exhausting."

Here are a few pointers for buyers who aspire to ownership of a low-upkeep home property:

-- Search for a single-level property for easy cleaning.

Sid Davis, a longtime real estate broker and author of "A Survival Guide For Buying a Home," says the demand for single-story houses is increasing rapidly, especially among aging baby boomers who have trouble climbing stairs or expect to face that limitation in coming years.

Beyond their investment potential, single-level properties offer advantages in terms of routine upkeep.

"As anyone who has to clean a multi-level house can tell you, that takes a lot more energy and time," Davis says.

-- Research the possibility that a condo-apartment could meet your needs.

The quest for a low-upkeep home means more people are now considering condo communities, where exterior maintenance is done for them, says Early, who helps his clients grasp the pros and cons of condo living.

But Early says it's important to carefully research the financial aspects of a condo community before committing to buy a unit there.

"You'll want to know that the owners' association has put money into an escrow account to keep up with such improvements as painting ... along with the eventual replacement of the roof," Early says.

Prior to investing in any condo, he urges you to read through the minutes of the condo association's meetings for the last two years.

"The minutes could tip you off about repair problems and indicate if there are any lawsuits pending against a former management firm, for example," he says.

-- Purchase a place where perfectionists now reside.

Are you planning to buy a home where you expect to live for just three to five years? If so, buying a home from maintenance-minded owners could let you coast on their quality upkeep. Their place will probably be in good repair, including all of the appliances.

Those who baby their homes are usually also meticulous about pruning their trees and manicuring their flowerbeds. Still, Early warns against thinking you could get by with their good landscaping habits for very long.

"A well-kept yard needs near constant attention, either from you or the landscaping crew you hire," he says.

-- Include brand-new houses in your search.

Not all new subdivisions are created equal. Some new homes will give you years of maintenance-free living, while others could mean headaches from the outset.

A dedicated real estate agent should be familiar with both new home and resale options in the area where you're looking.

Early believes that builders who add custom features to the homes they construct usually give buyers a better product than do those who mass-produce houses cookie-cutter style.

How can you find a builder with a quality edge?

"One approach is to ask those already living there. Tell them you wish to know whether they're satisfied with the quality of construction in their subdivision and if not, why not," says Early.

Home inspectors could also provide you with a solid assessment of the builder's practices.

"A well-trained home inspector usually knows which local developments will give you problems and which (will) stand the test of time," he says.

-- Consider an "almost new" home if a brand-new one is unavailable.

As Early says, those who buy a brand-new home can sometimes enjoy nearly carefree living for up to 10 years. But if you've chosen a neighborhood where there are no brand-new homes available, you might consider a nearly new place, meaning it's under five years of age.

"There's no guarantees that any house will free you from upkeep worries or let you sleep well at night without worrying that your roof won't leak and your appliances won't break down. But your odds are better if you buy a youthful place," he says.

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

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How to Ease the Pain of Relocation

Smart Moves by by Ellen James Martin
by Ellen James Martin
Smart Moves | July 20th, 2016

After Melody Warnick's husband landed a great teaching job at a university, she vowed to make the transition a positive experience for her family.

But Warnick, a professional writer with an upbeat approach to life, was shocked at how tough it was to let go of friends and possessions and to adjust to her new town.

"Moving was really hard. I felt disappointed and lonely," she says.

Rather than allowing herself to stay miserable, Warnick, the mother of two young children, took a proactive approach to help herself and her family become bonded to their new community. The product of her planning was a book titled: "This is Where You Belong: The Art and Science of Loving the Place You Live."

The book details how Warnick, a natural introvert, forced herself to get involved in civic and volunteer activities that gave her a greater sense of belonging.

She also advocates "making a big effort to explore nature in your new area." To do this, she and her family now take frequent hikes and bike rides in the mountainous region where they live.

"Connecting with nature induces a sense of well-being and helps you feel happier wherever you happen to live," she says.

Ron Phipps, a veteran real estate broker and former president of the National Association of Realtors (realtor.org), says that even when a housing transition is voluntary and the move doesn't involve a new town, it requires lots of adjustments.

Phipps contends that one secret to a fulfilling transition is to downsize gracefully. Here are a few pointers:

-- Ask a friend to help you purge possessions from your old place.

Vicki Norris, a former real estate agent and professional organizer, says it can take up to 24 work hours to de-clutter the average room. To avoid becoming sidetracked when preparing for a move, she says many people need an ally to help them view their possessions objectively and let go of things they can't take with them.

"It's good to have someone there with you to help you stay focused and create an organized strategy," says Norris, author of "Restoring Order to Your Home."

In an attempt to tackle the downsizing project, many people turn to family members. But Norris says you're better off with a professional organizer. One source for referrals is the real estate agent with whom you expect to list your property for sale. Another is the National Association of Professional Organizers (napo.net).

If you can't afford a professional, Norris suggests you ask a friend to come by to assist -- if only to help you structure an action plan and gain momentum toward your move.

-- Ask family members if they want memorabilia.

Retirees making a move often cling to nostalgic items they believe their grown children might want someday. But Norris says many parents believe their offspring will want a lot more things than they do.

"Typically, Mom and Dad hang on to things the kids really don't really want," says Norris, who suggests that downsizers ask grown children what items they value.

-- Develop a memory book with photos of your place.

When Norris' parents retired and put their family home up for sale, they did so voluntarily. Even so, they found it emotionally difficult to let go of a residence where they'd lived for 28 years.

Still, the process of downsizing was eased after their listing agent gave them a book of photos showing all their rooms and furnishings just as they looked before the home was staged for sale.

"That way they were able to seal their memories --including how the dining room table looked when their whole extended family came over for Thanksgiving dinners," Norris says.

-- Give away functional items you can't take with you.

As they plow through their property room-by-room, most downsizers encounter many items that crowd their space and would be costly to ship. In addition, they could have many things their children no longer want, such as outdated toys or items related to long-abandoned hobbies.

Whenever possible, Norris encourages donations of serviceable items to a nonprofit institution that will put them to good use.

"When you have to let go of your old life and transition to a whole new lifestyle, it can be enormously satisfying to know your castoffs will serve a vital purpose to help others," says.

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

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