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Tips on Cleaning a Home Office

Smart Moves by by Ellen James Martin
by Ellen James Martin
Smart Moves | May 15th, 2019

A few days ago, when Ashley Richardson staged an open house to market a 1930s stucco colonial with 3,000 square feet of living space, the event attracted an unusual number of prospects. The lure? The place features six bedrooms plus a den -- all rooms suitable for a home office.

One family especially interested in the property is contemplating its use for three home offices: one for the husband, one for the wife and one for their 10-year-old daughter.

“During the open house, I overheard the little girl declaring she needs her own office. She wants a quiet room where she can get her homework done quickly, and her parents like the idea,” says Richardson, a seasoned agent for the Long & Foster realty company in suburban Maryland.

According to Gallup Inc., a data analytics company, more than 40 percent of U.S. employees now work from home at least one day per week, and that percentage is growing.

“Having at least one home-office space is now huge, huge, huge with buyers,” she says.

But Richardson cautions sellers that it’s not enough to simply offer would-be purchasers an extra room or two for use as a home office. These spaces must be light, bright and clutter-free.

“Before any house goes on the market, you have to clean up the home office so buyers can envision themselves working comfortably there. This can take many hours of decluttering,” says Richardson, who’s affiliated with the Residential Real Estate Council (crs.com).

Professional organizers, such as Susan Pinsky, author of “The Fast and Furious 5 Step Organizing Solution,” say many sellers who operate a home-based business find the chore of decluttering especially intimidating.

“They have to figure out how to keep the company running while the house is on the market, which is extremely hard,” Pinsky says.

If you're a prospective seller who occasionally works from home, these few pointers could prove helpful:

-- Elevate paper culling to a priority.

Many people who have home offices are plagued with boxes and bags filled with unsorted papers. These include business reports, computer print-outs, junk mail, utility bills, credit card statements and clippings from magazines and newspapers.

Ironically, very few of the papers that people keep have value to their business ventures or careers, says Pierrette Ashcroft, a productivity consultant who operates her own home-based business.

“More than 80 percent of the papers people save are never referred to again,” she says.

The problem for home sellers is that any kind of clutter, including papers, makes a home look untidy. That can cause visitors to conclude that the house has more problems than meet the eye, says Mark Nash, a longtime real estate broker and author of “1001 Tips for Buying & Selling a Home.”

“Less is always more when it comes to selling your home,” Nash says.

Unfortunately, it can take more time and energy to go through papers than just about any other kind of clutter, he says.

“You have to go through papers one at a time and make decisions. You can’t just throw it all out, because that box filled with junk mail might also hold your passport or the deed to your house,” he says.

-- Use a scanner to store papers, rather than filing cabinets.

Ashcroft urges those trying to declutter a home office to scan many of their documents into their computer rather than trying to store them in filing cabinets.

“I’m practically paper-free in my own home office. I use a rapid scanner and can scan up to 200 papers in two minutes,” Ashcroft says.

-- Drastically reduce the size of your book collections.

Many people from all types of professional backgrounds maintain bigger libraries than they ever need or use for reference.

“People have an emotional attachment to books,” Ashcroft says, noting that overflowing bookshelves are often found throughout a home, not only in the office area.

The problem for bibliophiles preparing to sell their home is that shelves crammed with books make a property seem smaller than it truly is. What’s more, it can be costly to pay a moving company to transport your books -- especially if you’re making a long-distance move.

Ashcroft says sellers with substantial book collections are wise to sort through them before their property goes on the market -- dispensing with any books they no longer use. Remember, too, that many books can now be quickly and easily accessed from an e-reader such as the Kindle sold by Amazon.

“Anymore, you don’t have to cling to conventional books to keep many volumes you value. Let technology spare you,” she says.

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

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Tips for Younger Buyers

Smart Moves by by Ellen James Martin
by Ellen James Martin
Smart Moves | May 8th, 2019

This spring’s college grads are entering a job market that economists say is nothing short of spectacular. Unemployment has fallen to a mere 3.6 percent, the lowest level since 1969. But are all “Generation Z” -- referring to people born after 1995 -- grads now in a good position to buy their first home? Not necessarily, say financial experts, who urge caution before taking the plunge.

“The economy ... could change dramatically, making it critically important (that) you try to plan ahead before you buy,” says James Ludwick, the founder of a financial advisory firm with offices in five U.S. cities.

Granted, many potential young buyers are better positioned financially than were their older siblings at the same age. They have only dim memories of the financial crisis that upended the economy a decade ago. But that doesn’t mean they’ll always benefit from favorable financial conditions.

Dale Robyn Siegel, a veteran mortgage broker, is enthusiastic about homeownership for people in their 20s who’ve mapped out their futures and don’t intend to return to grad school or move out of state for a career shift. But she says all buyers, regardless of age, need to plan ahead to resale when choosing a property.

“Absolutely everybody needs an exit strategy because one day you’ll be selling that home,” says Siegel, the author of “The New Rules for Mortgages.”

Here are a few pointers for first-time buyers of any age:

-- Develop a multi-year plan to see if the time is right to buy.

Ludwick stresses the importance of envisioning your future before locking yourself into homeownership.

“Unless you can visualize yourself staying in the same house for seven years, don’t buy one now,” Ludwick says.

He urges recent college graduates to think carefully about their career trajectory, including any plans they may have for graduate or professional school. Your seven-year plan should also cover your financial priorities.

Of course, you can always hire a financial planner or a life coach to help create your multi-year plan. But if such coaching is not in your budget, you can also find guidance in various personal planning books. One that Ludwick recommends is “The Seven Stages of Money Maturity,” by George Kinder.

-- Think neighborhood schools.

Like all buyers, 20-somethings who wish to make the most prudent possible housing selection should strive to buy in a neighborhood with excellent resale potential. This is often a community with strong public schools that’s also located close to a major employment center.

“Schools are tremendously important, even if you don’t want kids,” Ludwick says.

But in choosing a home in a coveted neighborhood with solid schools, you’re better off buying a small place in good condition than a larger home with significant issues, he says.

-- Investigate your credit situation.

Siegel recommends that those contemplating a home purchase take a preliminary look at their credit picture. That way, you’ll have a crack at correcting any errors on your credit reports before your lender spots them.

The three key credit reporting agencies are Equifax, Experian and TransUnion. Under federal law, you’re entitled to a free copy of all three credit reports once a year. To request these, go to annualcreditreport.com or call 877-322-8228.

It’s also wise to get a copy of your credit scores. Such scores, which draw on data from the major agencies, provide a quantitative measure of your credit risk. Most lenders use FICO scores, pioneered by the Fair Isaac Corp. For a fee, you can obtain your FICO scores through the company’s website, myfico.com.

Did you resist the temptation to sign up for credit cards or take out other loans during your college years and beyond? If so, you may be shocked to find you have no FICO score at all. Unfortunately, this could pose a significant near-term barrier to mortgage approval.

To remedy this situation, Siegel recommends you open two to three credit lines, ideally including major credit cards. Then make modest use of these lines, ensuring you make your monthly payments on time.

“Unfortunately, it can take 12 to 24 months to establish a good credit history and there are no quick shortcuts,” Siegel says.

-- Don’t depend on your parents’ help to gain mortgage approval.

The parents of many 20-somethings are willing to help their offspring amass the funds to make a down payment for a home purchase with a financial gift. And some are even willing to co-sign their children’s mortgage application, making them personally liable for repayment of the home loan.

However, in an era of stringent loan approval standards, your parents’ signatures on your mortgage application no longer guarantee that your loan will be approved, even if they’re wealthy and have sterling credit, Siegel says.

“Nowadays, the kids have to qualify for the mortgage on their own merits. Having your parents co-sign is just the frosting on the cake,” she says.

-- Attempt to steer clear of a home that needs expensive repairs and upgrades.

Young adults who are energetic and motivated can usually handle cosmetic improvements or upgrades that are reasonably straightforward, such as painting or the installation of kitchen tile. But most lack the expertise to take on major remodeling projects that involve electrical or plumbing work or extensive carpentry.

“Unless you’re exceptionally handy or have friends or relatives who are contractors, it’s usually a big mistake to buy a fixer-upper,” Ludwick says.

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

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How to Find Motivated Sellers

Smart Moves by by Ellen James Martin
by Ellen James Martin
Smart Moves | May 1st, 2019

For several years, first-time homebuyers have found market conditions in popular neighborhoods extremely frustrating. Not only have prices risen steadily, but affordable properties have been in very short supply, often resulting in multiple bidding wars and arrogant sellers.

Fortunately for buyers, the pace of price increases has slowed, and inventories are gradually rebuilding. Yet even now, wannabe homeowners can face indifferent sellers, cautions Eve Alexander, a longtime Florida real estate broker.

How can buyers avoid the needless aggravation of trying to deal with indifferent sellers? Alexander says there are several red flags that can help identify them from the outset. One is a listing containing multiple exclusions for items that would normally be included in a sale.

“I’ve seen sellers demanding to keep all their light fixtures, ceiling fans, window treatments, rosebushes and pool accessories. This greedy attitude tells me they could care less about negotiating a fair deal with buyers,” she says.

Why do some ambivalent buyers put their property on the market if they’re not serious about selling? Alexander says one explanation is that they own the property free and clear and have no financial urgency to let go. This includes retirees who have mixed feelings about moving.

“People who’ve lived in a house for many years and raised their kids there can have powerful emotional ties to the place,” she says.

Another category of ambivalent sellers includes people who are easily able to rent out their place to either short- or long-term tenants. They know they can still keep up a strong cash flow if they don’t receive an offer to their liking.

“These people might try a ridiculously high list price and then bail out if they don’t get all the money they’re seeking,” says Alexander, who’s affiliated with the National Association of Exclusive Buyer Agents (naeba.org).

Though a few owners lack serious motivation to sell, many others are eager, perhaps because they’re getting divorced, have gotten a job in a distant area or need to trade up because of a growing family. Here are a few pointers on finding truly motivated sellers:

-- Rule out properties offered by “market testers.”

How can you identify sellers who are merely testing the market and will never negotiate seriously with anyone who bids even a dollar under their lofty list price?

Eric Tyson, co-author of “Home Buying for Dummies,” recommends you ask your agent to find out if previous offers have come in on the property you want. If the owners have already rebuffed one or more decent offers without so much as a counterbid, this indicates they’ll probably resist reason with you, too.

The good news for buyers is that information on past offers is often readily available through the listing agent.

While there’s no harm in trying to reason with market testers, Tyson says you can waste a lot of time and energy trying to budge people who won’t even entertain a fair offer. Better to look for someone who’s eager to sell.

-- Seek all you can learn about the sellers’ equity position.

If you’re zeroing in on a particular property, Alexander says it’s wise to inform yourself on the sellers’ ownership stake before you bid. As she says, those with more equity have more potential room for compromise.

“What you’re looking for are insights into the mindset of the sellers,” Alexander says.

One source of clues on the owners’ equity position can be found by searching local government land records. At the minimum, these records (usually available online) should tell you when the current owners purchased the property and the original price they paid.

“If the sellers bought the house 25 years ago and haven’t refinanced, they should have a lot more equity than if they bought it at the height of the market and maybe still have an underwater mortgage,” Alexander says.

-- Request that your agent question the seller’s listing agent.

When owners have an urgent need to sell, it’s normally against their interest for that information to be broadcast to the world, because it could weaken their bargaining position. Even so, Alexander says many listing agents will readily disclose such client information in response to questions.

Another way prospective buyers can gauge the sellers’ level of motivation is to ask nearby neighbors. Alexander recommends that the buyers pick a Saturday to walk through the community, chatting with a few residents about the pros and cons of living there. In the course of the conversation, they’ll likely tell you the reasons why homes on their street are for sale.

“The neighbors usually know everything -- like why the owners of a house want to leave or have to do so. This info is golden when it comes time to shaping your offer,” Alexander says.

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

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