Who’s Responsible for Keeping Up a Property While It is Under Contract?

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Once a property goes under contract it is a unique state of limbo. But that doesn’t mean that the ownership has been transferred as of yet. One of the most frequently asked questions (and often a misconception) is “who is responsible for maintaining the property while it’s under contract?”

The answer is simple. Until it changes hands, the seller is required to keep everything in the same condition as when the buyer first viewed the property. This means that if a glass breaks the seller will need to fix it. If the furnace breaks down, the seller will need to have it repaired. If storm or other damage occurs, the seller will bear the responsibility to rectify the problem.

Through the closing date, it is the seller’s responsibility to maintain and upkeep all aspects of the property, including keeping utilities on and in working order. In fact, as a buyer it is important to arrange the transfer of utilities on or the day after closing to avoid any gaps in service.

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There are lots of questions that go unanswered unless you have a trusted real estate advisor to turn to. We invite your questions, concerns and comments plus of course interest in buying, selling or investing in a home. Call us today!

Website Offers Instant Access to Amenities Within Walking Distance of a Property or Location

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One of the things that a lot of buyers overlook when they are considering a home to purchase has to do with the amenities that extend beyond the home itself. Whether that means the area parks, nearby shops, access to highways, restaurants, trails or other things – you want to know what’s out there.

Consider this: if you had a way of knowing what all is within walking distance of a prospective home, wouldn’t you want to know before you bought the property?

Well, we found a great website to help you do just that. It’s called WalkScore.com and it’s very simple. Just put in an address or location and you’ll be given a list of amenities that are nearby, the average distances to each from your entered location and a score on a scale of 1-100. The score corresponds to a ranking ranging from “Car Dependent” to “Very Walkable”.

This little nugget is especially useful for high foot traffic areas where walking to a nearby place is part of the lifestyle and the site offers a guide into what you can find nearby. One of the ways we use the site is to market listings that have walkable features.
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Keep watching our blog for more tidbits, tips and tricks on all things real estate!

How To Navigate Your Home Search To Avoid Paying Too High Property Taxes

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Believe it or not, there are some neighborhoods that are right next to each other with completely different property tax rates. You might expect a slight change from one area to the next but the reality is that there can be as much disparity to cause a huge impact on your monthly payment.

Depending on the locale of choice, you may even have to pay for additional taxes such as for city-dwellers that have to pay city taxes. This typically is on top of the municipal taxes that are already a part of owning a property in the area. Factor in special assessments or other taxpayer expenses and it can get even more expensive.

To help avoid our clients getting into situations where the taxation puts a burden on their monthly payment and ultimately their affordability of a home, we like to help navigate through some of the more affordable areas. Sometimes that information is not as readily available as it should be and without some extra digging you may not even be aware of the vast difference in taxes between one local area versus the next.
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Please call us today! We’d be happy to help you in your home search and in the process, will make sure that you find the best home, with the least amount of hassle and of course with your affordability and convenience in mind. We look forward to hearing from you today.

Two Things to Know When Buying Foreclosures

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Buying a foreclosed home can be bittersweet.  If you are not careful you stand to face a great deal of financial risk, not to mention the frustration of wanting and pursuing a home that could be lost to you in the end if precautionary measures are not taken. These steps can and will protect you from unforeseen circumstances that have often come back to bite less-than-careful buyers of foreclosed home. 

A Good Deal Can Come At a Steep Price If You’re Not Careful

For all the satisfaction of getting that great deal on a foreclosed home, the single most frustrating thing about buying foreclosures is the inability to communicate directly with the seller.  The purchase of a home is usually the largest financial transaction in many people’s lives and the fear of the unknown should definitely not be a factor.

In normal sales important details must be revealed by sellers through a formal disclosure statement.  The homeowners must divulge any and all information about the home that can impact the buyers’ decision, especially aspects that can affect the property’s value or desirability. In fact, in many states it is illegal to conceal major defects whether structural or cosmetic, prior to sale. 

With foreclosed properties the disclosure statement is extremely limited so the prospect of learning significant financial or personal safety risks in advance is imminent.  Property transactions should not involve a lot of guesswork unless you are able to invest in the property and manage issues that may come up later.

WHAT TO DO TO PROTECT YOURSELF
The amount of money saved on a foreclosed home is worth the extra expense you will have to incur to make sure your dream home is a reality.  Hire an experienced inspector or licensed general contractor that can investigate all aspects of the home in advance.  By weeding out any potential problems ahead of time, you will be able to make an informed decision about the purchase rather than signing the dotted line in the dark.  Major problems such as plumbing and electrical issues, foundation concerns or roof leaks will be investigated and other potential pitfalls that could cost you a sizable amount in the long run will be mentioned. 

Since most lenders require a home inspection to take place prior to financing you may be able to utilize the same inspection results by choosing an inspector recommended by your bank.  Though most home inspections average about $300-$350 the cost can go up depending on the size and complexity of the home.  One of the biggest mistakes many buyers commit is to opt for less expensive inspectors with murky credentials or none at all. 


Make Sure You Are In the Clear Before Saying “Yes!”

Like with any major financial transaction, there are many steps to take when finalizing the process.  One important step is drawing up a title policy as per the bank’s requirements.  Especially in light of recent tightening of lender practices banks are being extra cautious when processing mortgages.  Sometimes they will require that the title policy be done using a company located outside the local area.  It is essential that you follow through all possible scenarios when confirming the title is free and clear of all liens and/or encumbrances otherwise you risk delaying the transaction while waiting to clear up any mishaps.  You could also potentially lose the sale if the title is not verifiably free and clear.

After your title company has come up with the title policy for your foreclosed home, it’s a good idea to check with a local lien company and request a preliminary report on the property.  This allows a more interactive investigation of the title’s condition as opposed to an out-of-town company doing the legwork. Any outstanding liens that may not have shown up on the out of town title company’s report may appear on the prelim report from the local (second opinion) title company.
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Foreclosures are a great way to get a great house without breaking the bank – and if you play your cards right, there is no reason why there can’t be smooth sailing throughout the process.  With just these two important precautionary measures, you can save years of grief and thousands of dollars of pocket pain – all worth it at the end of the day when you live in your dream home at a fraction of the cost of a conventional sale.

Seller Paid Closing Costs Help Homeowners Yield Top Dollar

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When you’re selling your home, there is one thing that matters and usually it’s just that one thing; your financial bottom-line. And in today’s marketplace, we are seeing a lot of sellers begin to have the upper hand with fewer and fewer homes available for sale compared to the high demand for homes.

Many sellers are thrown off by buyers’ requests to assist in their closing costs – because it may seem the buyer is well qualified in every way yet sellers don’t understand why they need help. Often, buyers are able to shoulder a mortgage but may lack the cash needed to close on the transaction. In other cases, it’s simply a negotiating tactic.

The important thing to keep in mind as a seller is how the final net proceeds look. When buyers that may not have enough cash on hand present an offer requesting sellers’ help toward points, pre-paids or closing costs – many times they are conversely able to offer more on the home.
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If you would to see some scenarios on paper to see how this would pan out on the sale of your home, contact us today. We’d be glad to show you how it won’t affect your bottom-line.

Pockets Listings; An Ideal Solution for Buyers Seeking “Untouched” Homes

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It takes a lot out of homeowners to sell a home, especially in today’s fast-paced world. That’s why a lot of times people that would otherwise like to sell their home try to get around selling in the traditional way. They want to avoid having to go through multiple showings, the open house routine or keeping the home in tip-top tidy shape around the clock.

How do they do it?  They let their real estate agent know the home is for sale and then sit back and go on about their busy daily lives until the right buyer comes along.

What does this mean to you as a buyer in today’s very competitive market? It means that if you’re looking for something in particular – we may have access to your dream home.
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Call us today and we’ll match you up with one of our “hidden” sellers. We look forward to helping make your real estate dreams become a reality!

Searching Online For a Real Estate Agent Can Backfire

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In today’s technology-centric age, most of the world relies on the Internet as a primary source of information and it is only natural that as one begins a home search, particularly in an area away from their current location, the first place they turn is online. But unless you are careful you could end up with a less-than-perfect match.

Buying a home is the largest financial transaction in a lifetime for most people and you need someone that is reliable, dependable, experienced, and most importantly someone that you connect with. These days, there is a growing trend among real estate agents to pay for online leads that connect them with buyers that are looking for homes. Those agents then market themselves to these buyers and regardless of their skills or specialties unsuspecting buyers often end up with agents that might not be the best pick for them.

To avoid all this, the next time you hear of someone in your immediate circle that is looking to buy a home, let us know. We have a wide network of business associates, colleagues and fellow top-producing agents around the country. We’ll introduce you to someone that will work well in your home buying endeavor.

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As always, we invite you to contact us for any real estate inquires you may have. It’s a great time to sell your home now, with inventory levels continuously dwindling and an increasingly high demand for new homes. Buyers are still able to lock in very low interest rates that have yet to be rivaled in housing market history. We look forward to hearing from you!

Make a Great Real Estate Investment in Cincinnati

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If you are looking to find a fantastic real estate investment in the hottest spots of Cincinnati, then the place to start your search is with duplexes and four-plexes. The most desirable neighbors throughout our city offer some extremely high quality multi-family homes. If you have a child who is a young adult or a friend looking to move into a hip Cincinnati neighborhood but cannot afford to have such a large housing expense every month, then a multi-family home is a great place to start. By purchasing a duplex or four-plex, you are given the opportunity to bring in additional revenue to offset the mortgage; as an owner occupant you can have someone else writing the check for you. You can also free up some additional tax benefits – talk to your CPA to get some more details on this.

I have experience in this sort of investment; a multi-family home was one of the best purchases I have ever made! So, if you or someone you know is interested in a duplex or four-plex property in one of our beautiful Cincinnati neighborhoods, please give me a call at (513) 766.0656.

Get Debt FREE and Raise Your Credit Score!

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The only way to raise a credit score is to pay off your debt or at least reduce it to an acceptable level! I recommend paying off high interest rate  credit card debt first.They can suck the life out of your finances! As for those, "magic cure" credit repair commercials you hear and see promising a quick fix, their scam is even greater than high interest rate scam your credit card company is charging you!

What steps do you need to take to build your credit score to the highest level possible? How can you secure a mortgage with a lower interest rate? Use my common sense guidelines provided below to get rid of the debts that have reeked havoc on your chances for a lower-interest mortgage on your dream home.

1.) Pay Your Bills on Time – All the Time!
I know, I know – this isn’t always easy. But, lenders of all kinds look for reliability on your part. Since loaning money is a risk for them, they look for signs that you have a reliable income and the discipline to pay your bills over time. When they see those signs, they say to themselves, “Hmmm, this person looks like a good risk to me; therefore, he or she deserves a lower interest rate.”

2.)  Do Not – I Repeat! – Do Not Open Unnecessary Credit Cards!
People sometimes open credit card accounts in order to increase their available credit. Absolutely avoid this temptation! It’s simply too darned easy to charge for items you don’t really need, and, before you know it, you’re back in debt or have increased it to an unreasonable degree.

3.) Budget, Budget, Budget!
Financially, this is possibly the most “unsexy” task there is, and yet it’s the most vital and important one you can possibly undertake! YOU need to figure out where you stand financially. Budgeting will allow you to get rid of debt, improve your credit score, and shape a low interest rate financial future for you!

4.) How Much Debt is Too Much?
Here’s the first question to ask yourself in terms of budgeting: How much debt is too much?
Actually, there’s a standard financial formula that allows you to answer that question. This formula is called the debt to income ratio, and what it does is measure your net monthly income against your debt.

Here’s an example:
"George” has a net monthly income of $2000 and his monthly debt payments are $500.
So, to get his debt-to-income ratio, George divides $500 by $2000 and gets this ratio:
500÷2000 =.25 (25%)
  
Is this a good ratio?
Well, financial experts generally agree that debt expenses should be 25% or less of your income. George’s ratio is reasonable but could be better.So, what’s the ratio of your debt to your income? Figure that out by taking the next step.

5.) Calculate Your Debt-to-Income Ratio
You can answer that question by completing the following tasks:

Task 1: Analyze your bills from the last month. Add up all the fixed expense items (rent, mortgage, car payments, child support, loan payments, etc.)

Task 2: Review your credit card bills and add up the minimum payments owed on each card.

Task 3: Figure out your monthly take-home pay (net salary).

Task 4: Divide your monthly fixed expenses by your monthly income to get your debt-to-income ratio.

What percentage did you get? If it’s 25% or greater, then it’s definitely time to budget in order to reduce or eliminate your debt.

 I’d be happy to discuss some more in-depth  budgeting tips and provide you with information on mortgages at the same time!

Understanding the Difference Municipal Tax vs. Township Tax in the Greater Cincinnati Area

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Most homeowners don’t realize this but you pay different taxes based on where you live and work. So to help you understand the difference between the various taxes you pay accordingly, I wanted to share some examples with you. That way the next time you move you can consult with me and get some additional insight as to what might save you money throughout the year, every year.

Sycamore, Anderson, Simms Township Residents Spared Additional Taxes

If you have established your residence in these townships you will not have to pay an additional city tax for living in the area. Despite working in another area – you are still not charged additional taxes. For example, if living in Blue Ash and working in Blue Ash you are paying a 1% Blue Ash tax. If you live in Blue Ash and work in Downtown, you are paying 2.1%.

Similarly, if you live in Anderson Township and you work in Anderson Township as well, you would not be responsible for any additional municipal taxes – rather you are simply paying federal and state taxes.

Working in a Municipality Will Not Eliminate Taxes

If you are working in a municipality but living Downtown you would still be responsible for the 2.1% tax since your place of work is located in a tax area that is subject to city tax.
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If you are considering a new home and have the flexibility to choose a township, it might be a good idea to consider one of these locales and consequently save money on taxes. This is particularly ideal for self-employed people, business owners or telecommuters that are looking to move.

I look forward to helping you with this or any of your real estate needs and welcome your inquires. Call me today!

Home Warranties Offer Peace of Mind to Existing Homeowners and Buyers Alike

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Most people have heard of home warranties being purchased at the time of sale but did you know that you could also obtain a consumer-direct home warranty? In fact, despite costing just a little bit more the benefits far outweigh the added cost over and beyond the standard buyer or seller policy. In the “few hundred dollar” range, these policies provide protection against major problems with appliances, systems or both – depending on the policy type.

Of course, as is with many insurance products, there are the typical policy exclusions so when you go to inquire about one of these products be sure to request a copy of all exclusions to understand exactly what coverage you will be getting.

If you would like to learn more about obtaining third-party underwritten insurance policies to cover your appliances and systems – we invite you to contact us today and we’ll be happy to share some of our recommended vendors. Since the insurance companies are part of a profit-generating industry, here are some tips for dealing with them:

1. Call during off-peak times. When filing a claim, set aside about a half hour to complete the telephone procedure and more if calling during the morning, lunchtime or late afternoon.

2. Keep track of everything. Document the name of everyone you speak with, the time and dates of each time called and the exact nature of the conversations.

3. If you feel you are not getting anything done or that progress is slow with your claim, ask to speak to the manager in charge when you call.

4. Choose to submit your claim on the telephone rather than via email for a faster response.

5. Keep your cool. If you end up dealing with an unresponsive or worse, rude customer service person – try to be calm but remain consistent.

6. Get creative when you need additional help. District managers of home warranty companies make themselves more accessible to real estate agents so if you need extra help, contact your agent.

Contractual Occupancy; When Can I Move In to My New Home?

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When we agents work on getting a contract together, one of the most important things to discuss is occupancy. When will the keys exchange hands? And believe it or not, the answer varies. Up until a while ago, in our area it was typical for us to offer a 30-day occupancy period after the closing. What that means is that the seller had about a month to move out and vacate the premises after closing.

However these days, the standard has changed. Now when you have a contract between buyer and seller the agreed upon date of possession for the buyer is usually the same as closing. In fact, relocation companies go as far as not even to allow their sellers to accept a contract unless occupancy is given at closing.

For buyers, clearly the last thing you want to do is to complete the process, own the property and be paying insurance on it – only to be restricted from accessing it for 30 days. Particularly since the buyer is financially responsible for the property from the moment closing is completed, immediate occupancy makes good sense.

So as you are preparing to accept an offer on your contract, or if you are making an offer on a property – be sure to address the date of occupancy and confirm with your agent that closing date possession for the buyer is the standard way to go.
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As always, please do not hesitate to contact me for further clarification on this or anything else you’d like to know about. And if you are looking to buy, sell or invest in a property – I look forward to helping you make your real estate goals a reality!

What Are Reverse Mortgages and What Are Their Benefits?

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As the name suggests, “reverse” mortgages work exactly the opposite from a "regular" mortgage. Instead of you making monthly payments to a lender, the lender pays you. And, generally speaking, you don’t have to repay it for as long as you live in your home. So, what does the lender get out of this bargain? Well, in return, he or she holds part or all of your home's equity.

Reverse Mortgage Advantages 

Home owners who are “house rich, but cash poor” can be beneficiaries of this type of mortgage. It allows them to stay in their homes and still meet their financial obligations. In addition, the proceeds of the loan are tax-free. Also, there are no minimum income requirements, and, for most reverse mortgages, the money can be used for any purpose you choose. 

Reverse Mortgage Disadvantages
Below is a list of the major disadvantages of such loans: 

1.) Reverse mortgages tend to be more costly than traditional loans because they are “rising-debt” loans. This means that the interest is added to the principal loan balance each month. Therefore, the total amount of interest owed increases significantly with time as the interest compounds. 

2.) Reverse mortgages also use up all or some of the equity in a home. This fact means that fewer assets are left for the homeowner and the heirs. 

3.) Lenders generally charge origination fees and closing costs; some charge servicing fees. It’s up to the individual lender as to how much the fees and costs are. 

4.) Interest on reverse mortgages isn't deductible on income tax returns until the loan is paid off in part or whole. 

5.) Because you retain title to your home, you remain responsible for taxes, insurance, fuel, maintenance, etc. 

6.) Scams are sometimes run by unethical lenders. Never accept a deal with door-to-door/home solicitation lenders. Reputable lenders have no need to go door-to-door in search of loans.

From all the disadvantages listed above, you can see that you need to understand exactly how they work and what responsibilities you’ll take on with such a loan. Below, I’ve provided you with basic knowledge on reverse mortgages so you have a foundation upon which to consider them. 

Types of Reverse Mortgages 

Reverse mortgages have several different forms: 

1.) Federally insured Home Equity Conversion Mortgages("HECM"). These are administered by the Department of Housing and Urban Development ("HUD") 

2.) Single-purpose reverse mortgages. These are usually offered by state or local government agencies for a specific reason 

3.) Proprietary reverse mortgages. These are offered by banks, mortgage companies, and other private lenders and backed by the companies that develop them.

Qualifying Factors 

You must be at least 62 years of age and have paid off all or most of your home mortgage. In general, income is not a factor, and no medical tests or medical histories are required. If you seek an HECM, you also must receive free mortgage counseling from an independent government-approved "housing agency." This may also be true of financial institutions offering proprietary reverse mortgages.

Loan Amount 

The mortgage loan amount depends on:

- Your age
- The equity in your home
- The value of your home
- The interest rate

If you choose an HECM, federal law limits the maximum amount that can be paid out. There are several ways in which you can be paid - in a lump sum, through monthly advances, through a line of credit, or a combination of all three. 

Recommendation

As with any mortgage, shop around and compare terms of reverse mortgages. In particular, check: 

1.) Annual percentage rate (APR). This is the yearly cost of credit 

2.) Type of interest rate. Check to see if it’s a fixed rate or an adjustable rate. 

3.) Number of points (fees paid to the lender for the loan) and other closing costs. In some cases, this can be costly so check closely.

4.) Total amount loan cost ("TALC") rates. The TALC rate is the projected annual average cost of a reverse mortgage, including all itemized costs. TALC shows what the single all-inclusive interest rate would be if the lender could charge only interest and no fees or other costs. More about it here!

5.) Payment terms, including acceleration clauses. These terms state when the lender can declare the entire loan due immediately. 

Remember: Under the federal Truth in Lending Act, lenders must disclose these terms and other information before you sign the loan. Also, on plans with adjustable rates, they must provide you with specific information about the variable rate feature. And, on plans with credit lines, they must inform you about appraisal or credit report charges, attorney's fees, or any other costs associated with opening and using the account. Make sure you understand these terms and costs. 

Finally, in most cases, you have at least three business days after signing a reverse mortgage contract to cancel it in writing! Want to learn more about reverse mortgages or any other kind of mortgage? Contact me immediately!

Super Low Interest Rates Make It a Great Real Estate Market for Buyers AND Sellers!

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Of course as a real estate agent, other than “hi, hello and how are you” the next most frequently asked thing we hear is “how’s the market doing these days?” That’s why for today’s video blog I wanted to talk about it.

Interest Rates Continue to Beat All Housing Industry Records

Throughout the past many months there has been one very consistent item of big news that seems to be controlling much of our market – and that is interest rates. Chances are you have already heard that interest rates are at their all time historic lows, making it more affordable than ever before to purchase and own a home. For homeowners with existing mortgages the low rates are facilitating significant savings when the mortgage is refinanced.

Buyers Can Afford A Lot More House for the Same Amount of Money

Another factor that low interest rates brings into play has to do with ‘how much house’ you can afford. What might have cost a monthly payment of $2500 just a few years ago may easily cost just $2000 depending on the property, terms and rates. With this added buying power, buyers are out there eager to lock in the amazing rates still available.

Sellers Enjoying Less Selling Competition on the Market

This is exactly what makes it a great time to sell. With so many buyers seeking the perfect home, particularly at the cusp of our 2012 holiday season, any inventory that is out there is scrutinized and often considered by buyers. Fewer available homes on the market make it very ideal for sellers since buyers want to get in before the holidays. Another phenomenon seen by sellers with show-ready homes that are priced right and in great locations and is one of multiple offers and even bidding wars.

Conditions Expected to Stay the Same for At Least a Few More Months

The news is that the government will hold the base rate down until at least the middle or end of 2013 – if not a bit longer. One school of thought is that the elections may have an adverse effect on our housing market but it is too soon to tell. It is important to note that even if there were a resultant outcome on the housing market from the election, the soonest we would see any of it materialize would be in the springtime of next year.

This is what makes now an excellent time to buy and also an excellent time to sell. Very rarely do we see a favorable market for both sides of the fence but today that is the case and it’s a great opportunity to pursue!
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If you’d like to explore your options in today’s real estate market, whether to list your home or find the perfect new home – I invite you to contact us today! We look forward to making your real estate goals become a reality!

An Inspection Contingency Can Change Everything With a Real Estate Transaction

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If you’re in the process of buying or selling a home, there’s a good chance you have implemented, seen or heard of an inspection contingency. This contingency is almost always offered at the time when a property goes under contract.

The Cincinnati Area Board of Realtors cites a specific time frame within which the buyer is allowed to show the property in question to professionals for the sake of inspecting it for defects. If during the inspection process anything is found to be unsatisfactory, defective or questionable, the buyer has a legal right to provide the seller written notice of this fact.

Furthermore, this added step in the home buying/selling process allows the buyer a chance to walk away from the transaction if they are not happy with something. This means they may change their mind if they are not satisfied with the property for any reason as a result of the inspections. The contingency in place allows them to be able to cancel the contract – regardless of the reason. In fact, the buyers do not even have to state a reason for changing their mind.

The Inspection Addendum is drafted on behalf of the buyer and presented to the seller, after which the seller may choose to do one of several things. They may opt to respond to any repairs the buyer may have requested to rectify specific problems. The sellers may choose to offer or accept the buyer’s request for financial concessions and therefore accommodate repairs needed as a result of the inspection. Or the seller may decide to review the terms and choose whether or not to accept them.

As you can see, the settlement period is virtually a second round of negotiations, centered on the findings of professionals hired to check the property in detail for defects or aspects that may be unacceptable to the buyer. Just as the buyer has the right to back out of the deal, so does the seller have the right not to agree to changes proposed by the buyer.

When going through a purchase or sale, it is important to keep in mind the inspection contingency, a very critical part of the contract.

For questions about this, or any other real estate related inquiries you may have – please do not hesitate to contact me today. I would be happy to assist you!

Home Maintenance Does More Than You Think

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For some, the phrase “home maintenance” might sound like a great way to spend a weekend, while to others it might seem like a dreaded, even avoided, task. However you view routine home maintenance, the fact of the matter is that this somewhat simple task, if done consistently, can increase your home’s value over time.

Increased Property Value

Benjamin Franklin once said, “An ounce of prevention is worth of a pound of cure.” This is certainly true when it comes to your home. In fact, proactive maintenance is essential to preserving the value of your home. If you ignore this important task, your home could actually lose 10% of its value over time.

There are a number of benefits you can expect from just making sure you home is kept in decent shape with occasional maintenance. For one, your curb appeal is improved by just simple acts of routine upkeep from time to time. Ultimately, your home reflects your attention to detail, or lack thereof.

Neglecting a home can greatly bring down the value of any property. Things like a house with chipped or fading paint, sagging gutters, or worn carpeting leads to a problem when it is time to sell. Not only does the work accumulate over time, so do the costs. A few simple fixes every year can add up to an increased home value over time.

Cost vs. Value

It’s easy to look at the cost of regular home repairs as a burden that might be able to be avoided. However, it is important to look at the value that you are placing in your home by performing the regular costs of upholding a well-built and maintained home.

A study out of the University of Connecticut and Syracuse University suggests that home maintenance can actually increase a home’s value by about 1% each year. Instead of viewing the routine tasks around a home as “chores,” these tasks should be looked at as a money maker. When you sell your home, you will reap their rewards.

Dr. John P. Harding, Professor of Finance and Real Estate at the University of Connecticut’s School of Business and an author of the study said, “It’s like going to the gym. You have to put in the effort to see the results. People and houses are somewhat similar – the older they are, the more work is needed.”

Some years what needs to be down may be more expensive than others, but it is the overall strategy to keep a “fit” home that should be the ultimate goal.

Proactive Maintenance Strategies

Budgeting for home repairs each year will prevent them from seeming like a burden each year. Knowing there will be a certain amount of money going to home repairs and upkeep makes them a regular part of your annual routine. They won’t be a source of financial devastation they can be for many families.

Other things to keep in mind to take the burden out of home maintenance include:

Play offense, not defense. Being proactive is vital in preventing a small problem becoming a mountain of problems. By having a regular inspections and creating a maintenance schedule, you are in control, for the most part, of home expenses, instead of the other way around.

Focus on a room a year. If you home is generally in good order, you may be at a loss of where to start. By targeting a room each year, you can inspect each and every item in that particular room and know where improvements can be made. This prevents an overwhelmed feeling with you looking at your entire house, scratching you head of where to start.

Keep track. Maintain a notebook or computer file to keep track of all of the maintenance and upgrades you perform is important. Also, either keep a physical file of paper receipts or a file on your computer where can put your scanned receipts. This helps you keep track of what you have done and also helps you prove to a potential buyer exactly what you have done to the home. It also shows you are a conscientious homeowner who has paid attention to the details of your home.

Home maintenance is an important task that should not be overlooked. Not only does it maintain a nice home while you live there, it also helps increase your home’s value when you are ready to sell.

For more on home maintenance visit Bob Vila's home maintenance checklist here!

Want to Add Value to Your Home? Get Into the Kitchen and the Bathroom!

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Everyone knows that – all things being equal – the first areas buyers look at when considering the purchase of the home are the kitchen and the bathroom. They know they’re heavily-used areas and also the most expensive to upgrade. So, buyers want to know they’re in great shape or need, at most, minor repairs.

This tells you that you need to make the kitchen and bathroom “shine” in terms of their appeal. By some estimates, you can earn back 80 to 90 percent of your money in resale value!

Here’s more good news! Depending upon the state of these rooms, improvements don’t have to be all that expensive! Let’s look at the kitchen first.

Making Your Kitchen Shine!

The first bit of advice for you actually applies to both the kitchen and the bathroom – use paint! In fact, use high-quality paint. It’s a fact of life that kitchen walls get spattered with grease and food (especially if you have kids!), and bathroom walls get battered with steam and moisture.

So, the first thing to do is to take a look at those walls, clean them, and then paint them. And consider the color carefully. It should be a color that’s relaxing and tends toward a neutral tone.

Once you’ve chosen a color, spend the money on good paint, not the cheap stuff. It’ll look better, and buyers will notice that it’ll resist stains and water for a longer period of time than lower quality paint. It’ll also tell them that you’ve taken good care of your home.

Another inexpensive “fix” you can do yourself is, of course, the faucets over the sink (or the sink itself). A visit to a “big box” store like Home Depot, Menards, etc. will cost you little money. All you have to do is invest some “sweat equity.”

Of course, fresh curtains always spruce up a kitchen as well as orderly counters, islands, etc. And don’t forget lighting! Warm, friendly lighting can make a huge impact upon a buyer’s first impression. 

Another area to look at is the kitchen floor. If it’s worn, I’d recommend that you replace it with a hard-wearing material. Everyone knows the kitchen is a high-traffic area so they’ll look closely at the floor to see if they’ll have to bear the expense of replacing it.

Again, if you have handyman abilities, you can do this yourself. There are many inexpensive materials available today that are relatively easy to put in – high-quality tile, laminate floors that clean up easily, etc. 

In terms of kitchen cabinets and counters, you may want to consider refinishing them or replacing them if they’re in bad shape. This can be rather expensive, of course, but it also might make the difference between a sale and the home staying on the market.

Moving on up in terms of expenditures, buyers today expect modern appliances in the kitchen – stoves, dishwashers, etc.

These are big ticket items, of course, but if your appliances are worn or out-of-date, think about replacing them, especially if you’re having trouble selling your home.

Look for sales on modern higher-end appliances such as the ones available at Sears, etc. Buyers will spot cheap ones in a heartbeat, and this can cost you a sale.

Today’s buyers look for spacious kitchens that open on to another room and which have a window over the sink. Obviously, if your kitchen doesn’t have these features, it would be far too expensive to put them in.

However, you can make your kitchen look as open as possible. Make sure the counters are clear, visible pots and pans are ordered neatly, and the floor is free of clutter.

Okay, now onto the bathroom!

Making Your Bathroom Shine!

If your bathroom is in good to great shape, then it’s a simple matter of paint, as I mentioned before, and a good all-round clean up. Since we’re dealing with sanitary issues, you want this area to sparkle as much as possible.

But, what if the shower, tub, sink, or toilet are not in great shape or are out of date? Well, then, I’d recommend that you do a whole remodel.

It can be expensive, but when you replace, say, just one item, it can create an unharmonious look. Ideally, you want the sinks, faucets, toilets, showerheads, tile, etc. to match to make the bathroom look as unified and appealing as possible.

Depending upon your expertise, you can install these items yourself at a lower cost. If not, hire an expert to do the work, especially if your home has been on the market a long time and isn’t selling.

Okay, here’s one last suggestion. It’s an expensive one but it’s been proven to add value to your home – add a second bathroom!

One-bathroom houses are simply harder to sell and sell for less than ones with two or three bathrooms. 

So, if you have the financial wherewithal, consider adding one. A good place for a second bathroom is right off the master bedroom. This will appeal to buyers with children since they’ll have a space separate from the kids.

Also, if for some reason, you decide not to sell, a second bathroom can make life easier for you if you have children as well!

Want to hear some more suggestions for improving the value of your home? Contact me today and we can talk about some inexpensive methods of doing just that!