Author: Igor Nastaskin
West Coast Home Sellers Cashing in on Record Home Values
Staying in a home longer can net a serious return on investment, especially in some of the nation’s hottest housing markets. That finding comes courtesy of a new Zillow analysis, which shows that U.S. homeowners who lived in their homes for about seven and a half years gained almost $40,000—or almost 24 percent—more than they originally paid upon selling their properties in 2016. “The housing market can change a lot in 10 years, and you see that reflected in this top 10 list,” says Dr. Svenja Gudell, Zillow’s chief economist. “Buying a home is one of the biggest financial decisions people will make in their lifetime, and it really paid off for sellers in these cities. Every city on this list has been growing extremely fast over the past decade, with the majority passing peak home value hit during the housing bubble. It’s extremely difficult to time the market, but if you’re a longtime homeowner in one of these cities, you could potentially see a great return on your investment.” Among Zillow’s top 10 list, three cities have home values growing in the double-digits. In Seattle, home values rose 15.5 percent year-over year, the fastest growing among the list, followed by Boston and Sacramento, Calif. In Los Angeles, those who remained in their properties for nine years and eight months saw a $200,000—or 53.7 percent—increase.
Five Ways to Make Your Home Look Larger
When selling a home, décor choices can impact how large or small a residence appears to potential buyers. Here, the National Association of Realtors offers some simple tips from professional home stagers on how to show off square footage, even when space is tight. 1. Remove heavy drapes Leave windows bare or hang sheer linen curtains. The space will feel brighter, and the view will be extended to the outdoors and automatically make your space feel larger. 2. Go monochromatic Painting every room in the same color can help lengthen a smaller space, preventing your home from feeling choppy and giving it more of a continuous feel. Furnishings and accessories also should be monochromatic. Reduce contrasting colors whenever possible. For example, if you have a room with taupe walls, walnut floors, a brown sofa and milk-chocolate pillows, the edges of each item will be less defined and, in turn, be perceived as taking up less space. 3. Remove rugs The more you break up the flow of your flooring, the smaller your space will feel. Limit rugs to only one or two main areas, such as under the dining table. Also, small rugs can dwarf a space, so when you do use them, make sure they aren’t too tiny. 4. Add mirrors to rooms Mirrors can help make a small room appear larger by reflecting more natural light. Consider placing a mirror next to or directly across from a window to add more depth to the room. 5. Raise the bar (in the bathroom) Place shower curtains and window treatments higher on the wall, which will give the illusion of higher ceilings and greater space.
Four Questions to Ask Your Partner Before Buying a Home Together
Buying your first home is exciting, but there’s also some stress that comes with it. A house is a big purchase, and it brings a host of new hurdles beyond the initial price tag. If you’ll be purchasing your first house with your significant other, one way to avoid some of that stress is to have a few important conversations before you even start your house search. Here, Trulia.com suggests a few questions to ask your partner before you set out to find your perfect pad. 1. How long do we plan to live there? You don’t have to set an exact time frame on your house purchase, but it’s a good idea to see if you’re both on the same page before you find a place to live. You should try to stay in the home at least until you hit your break-even year to recoup the purchasing costs. And, depending on where the house is located, that could be several years down the road. To determine whether you’ll be able to make that much of a commitment, have a frank conversation with your partner about your plans in the coming years. Do you see yourself building a family in this house? Are you both happy in your current jobs, or do you foresee a job search in the future that could make for a long commute? Talking about these things ahead of time will help you narrow down the type of house you both want based on your future goals. 2. How much house can we afford? This is one of the most important questions you should discuss with your significant other before buying a house. It’s not uncommon for people to get approved for mortgages with monthly payments that actually would be very hard for them to afford. Only you and your partner know how your finances work out on a monthly basis. So, sit down and have a solid look at everything to fully understand how much money you can put toward a mortgage each month and still feel comfortable. You also might want to consult with a financial adviser together. Keep in mind that putting down less than 20 percent of your overall home cost at closing likely means that you’ll have to pay private mortgage insurance (PMI) on top of your monthly mortgage fee. 3. Are we looking for a fixer-upper? Some people prefer a house they can add their own touches to, while others would rather walk into a house that’s perfect for them without having to change a thing. Talk about this before your house hunt so you’ll know whether or not you’re both willing to put in the effort (and money) for any necessary updates if that’s the route you decide to go. 4. How will we save for miscellaneous house expenses? When you own your own home, there is no end to the list of things on which you’ll spend money. From leaks and cracks to peeling paint and clogged gutters, it seems like there’s always something that needs fixing. Of course, some of those things can usually wait, but to fix larger issues—especially those that require urgent attention, such as plumbing issues—you’ll need an immediate flow of cash. Chat about how you plan to pay for surprises that crop up, and if you don’t already have an emergency savings account, start one today.
Building Castles in the Sand A Labor of Love for this Riviera Resident
Todd Vander Pluym was born to play in the sand. The creator of Sand Sculptors International, Todd recalls how his parents would put his crib on the beach when he was just a few months old, only to find him reaching between the bars to grab fistfuls of sand. Seventy-fiveplus years later, Todd has made a career out of turning sand into works of art. As one of the world’s premier sand sculptors, Todd and his team have crafted more than 1,600 sculptures around the world, including a 37-foot-tall Sleeping Beauty’s Castle on the beach in Japan and custom work for Walt Disney Corporation, Universal Studios, Sea World, Starbucks and many more companies. He has won multiple awards for his work, including four world championships. You might have even seen him and his sculptures in People Magazine, on Good Morning America, and in many other media outlets. “I’ve always been interested in sand sculptures because they leave visual enjoyment without hurting the environment,” says Todd. “Unlike most dwellings, sandcastles have solar heating, ample running water, are biodegradable and come in as is condition.” Prior to becoming a full-time sand sculpture in 1980, Todd earned a degree in fine arts and went to work as an architect. But making art from sand has always been his passion. Todd has created sculptures on every continent except Antarctica and has organized several world record events. His works have graced not only beaches, but also shopping malls, theme parks, conventions and more. He recently was hired to build a sand sculpture in front of Wall Street. “I like to build anything,” said Todd. “From houses of cards to matchstick towers, I enjoy putting things together. But rolling up my sleeves in sand is my true nirvana.” Todd and his wife have lived in the Riviera since 1977 in a home that, not surprisingly, features a castle in the front yard and shrubbery shaped like dragons. You can learn more about Todd and view photos of his amazing work at www.sandsculptors.com Click here to read Igor’s full newsletter on Scribd.com – http://www.scribd.com/LiveInHollywdRiviera
Are You Paying Too Much for a House in Your Neighborhood?
Sometimes determining how much you should pay for a home can be as simple as looking at the recently sold homes in the neighborhood and considering how your specific lot compares. But if the home you want doesn’t compare so easily with its neighbors—maybe it’s larger or custom-built—figuring out how much to pay can be trickier. Here, Trulia offers six things to do before deciding if a home is worth the price. 1. Use public records Whether you’re hoping to buy in a new development or an already established area, looking through public records can provide you with useful insights such as past sales history and tax assessments. Trulia offers public property records on each home listing. If you want more historic information, you can find it at the county clerk’s office or through online public records services. This public info may help you determine what’s reasonable for a property in the area—and give you a sense of what your tax payments will be. One caveat: If you live in a market that’s changing rapidly, that information could already be outdated by the time you get your hands on it. 2. Look for popular neighborhood amenities Certain neighborhood features appeal to nearly everyone and increase the value of the homes near them. For example, these can include highly rated schools, easy highway access, and nearby stores, markets, leisure facilities and restaurants. Another perk to consider is walkability. Can you get to stores, restaurants and recreation areas without being dependent on a car? 3. Consider the neighborhood’s potential Whether you’re looking for a move-in ready or a project house, when it comes to property values, the neighborhood is just as important as the house. A fixer-upper in a high-value neighborhood allows you to do more updates and enhancements before you risk over-improving the property. What’s a high-value neighborhood? There are some key features that can clue you in on a neighborhood’s potential. Look for new construction that can signify growth, such as new streetscaping or street-widening projects, or construction of new shopping centers or schools. 4. Be wary of too much development Expansion could increase the value of a neighborhood, but there’s a tipping point where too much growth could bring down home values. Big commercial developments could negatively impact a neighborhood’s value, especially if noise and traffic will increase, while taller residential buildings could block sunlight and create more parking congestion on the block. 5. Beware of features that decrease value Factors such as nearby train tracks (especially with loud, late-night traffic), neighbors with unkempt homes and nearby foreclosures can reduce home values. Other things that decrease local pricing include high-tension power lines and any energy-production plants; store closures; and increased ‘for-rent’ signs in store windows. 6. Understand the “Goldilocks effect” Goldilocks always chose the “just right” option, right in the middle. This applies to real estate as well. Many people believe you should never buy the most expensive house in the neighborhood, because you will have a difficult time recouping your investment should you decide to sell. So, what happens if you decide to buy the nicest house? Your home value will help lift up the listing prices of your neighbors’ homes, but their home values will not help to lift yours. Knowing this going in, if you want the house, use the neighborhood average price per square foot as a guide to getting the right price. There’s also wisdom in not buying the worst house in the neighborhood. Unless you put enough money into the home to make it as nice as the surrounding homes, you’re likely to have a difficult time selling.
Why Are You Selling? Ten Answers You Should Never Give
“Why are you selling your house?” might seem like a perfectly innocent question for home buyers to ask, but watch out: If you’re the home seller they’re asking, this is one of the most complicated questions you can answer. The reason? Pretty much any explanation you give is bound to contain revealing info that these home buyers could use against you, thereby compromising your negotiating power. Here, Realtor.com offers 10 responses to avoid when communicating with potential buyers. 1. I got transferred for my job This is one of the most common reasons why people sell their house. In fact, 17 percent of people surveyed by the moving company Allied Van Lines said they’ve been relocated for a job. Nonetheless, revealing this to home buyers could make them think that you’re desperate to sell fast and, in turn, lead them to make a lowball offer. 2. Our family needs a bigger house Trading up? Don’t relay that to home buyers. The reason is pretty simple: You don’t want to give buyers the idea that the house may not be enough room for them, either. 3. Now that our children have left the nest, we’re ready to downsize Downsizing makes total sense for empty nesters and retirees, but likewise, you don’t want home buyers to think that your house is too large and difficult to maintain. 4. We need a smaller mortgage payment There are a couple of reasons why this response is a bad idea. First, you don’t want to give the impression that the house is too expensive or overpriced. Second, you don’t want home buyers to presume that your finances are in such poor shape that you’d accept a lowball offer. 5. We’ve already bought our next house If you want to net top dollar for your house, don’t divulge that you’ve already purchased your next home. This will make the home buyer think that there’s a sense of urgency and that you have to sell quickly, and that’s a valid assumption considering that a lot of people can’t afford to carry two mortgages at once. 6. We want a quieter neighborhood Steer clear of saying anything that could paint the neighborhood in a negative light. Even saying that the area is quiet could backfire. You don’t know what a home buyer wants. For example, some people are drawn to areas that have a thriving night life. 7. We need to move closer to our parents to help care for them Many people move to be closer to family—and in some cases, it’s out of necessity. However, there’s no need to share that information with home buyers, since this suggests you have to sell your home quickly. 8. My back problems make it too difficult for me to climb the stairs A number of home sellers move out of two- or three-story houses for health reasons. However, you don’t want to draw attention to the fact that there are a lot of stairs throughout the home, since it could scare off elderly home buyers or buyers with young children. 9. Our utility bills are through the roof Energy-efficient home features are all the rage nowadays, which makes sense when you consider that home owners spend on average $1,945 a year on their energy bills. But some home buyers still overlook utility costs when they are house hunting. So, the very last thing you want to do is draw attention to the fact that your gas or electric bills are expensive. 10. The house is too difficult for us to maintain Even if you’re selling a clear fixer-upper, don’t mention maintenance costs to a home buyer. Also avoid talking about repairs that you just never got around to making, such as repairing the bathtub caulking or replacing the 20-year-old water heater—all reasons for home buyers to think twice about making an offer.
Five Ways to Prepare for an Appraisal and Showcase Your Home at its Best
Determining a price for your home can be stressful, especially if you don’t know how to prepare for an appraisal. If the home’s appraised value is too far from the listing price, it can make or break the deal. In addition, although appraisers are subject to strict regulations, much of their job is subjective, which means it’s crucial for your home to make a good impression on them. Here, Realtor.com offers five tips on how to present your home at its best. 1. Develop a critical eye Go through your home with a critical eye and make yourself aware of any areas that need maintenance. This allows you to think like an appraiser and identify any factors that might negatively affect your home’s value. Make sure that all of the lights work, doors open and close properly, and there are no leaky sinks or running toilets. As you go through your home, make a list so that you can easily refer to it later. 2. Catch up on your home maintenance Complete small projects, such as fixing squeaky doors and cleaning the gutters, on your own. For bigger jobs—like plumbing and electrical work—your best bet is to hire a certified professional. Although this might cost a bit more upfront, hiring a professional to do the work frees you of any liability and allows you to show an invoice as proof, if necessary. Remember, these should be smaller home-maintenance tasks, not big renovations. While giving a room a fresh coat of paint or adding some curb appeal is probably fine, it’s not the best idea to finish your basement right before an appraisal as there aren’t any guarantees on how much value projects like these will add to your home. 3. Compile a list of upgrades A one-page highlight sheet documenting all of the upgrades that have been done to the home can be valuable because it allows an appraiser to see all the added value in your home at a single glance. Your best bet is to sit down—either with your agent or independently—and draw up a list of all the improvements that have been made to your home within the past decade. Be sure to include approximate dates, permits and warranties for these projects. In addition to aesthetic improvements, such as upgraded kitchens and bathrooms, be sure to include functional and structural improvements like a new roof or HVAC system. 4. Clean like there’s no tomorrow Make sure your house is clean and free of clutter. This is the one and only chance the appraiser will get to view your home. Since his or her opinion of the home can actually make or break the sale, it’s crucial to ensure it’s a good one. Tackle the task in two parts: a deep clean of the home a few days before the appraisal and then a final sprucing up on the big day. When appraisal day arrives, you’ll want to make sure that everything is in its place. Make the bed, pick up any errant toys from kids and pets, and do the dishes. Although these factors technically aren’t included in the appraisal, they might subconsciously influence the appraiser’s opinion of your home, which can affect its determined value. 5. Ask your agent to get involved The appraised value of your home is largely determined by how it compares with similar properties that have sold in your area within the past six months. Most agents will help appraisers with that research by providing them with comparable listings that justify the sale price. Unfortunately, just like everything else in the appraisal process, comps are subject to guidelines, as well as your appraiser’s individual opinion. Some are able to factor in transactions in progress, while others need to stick with settled properties.
Eight Outdoor Trends That Attract Buyers
Thinking about putting your home on the market? Don’t neglect your outdoor space while making improvements indoors as well. Your home’s exterior and the backyard are important in drawing the eyes of potential buyers and making your home as appealing as possible. Here, RISMedia suggests some modern trends in outdoor living that will entice today’s buyers. 1. Outdoor structures Outdoor structures such as a storage shed can make the back yard, and even the front yard in some homes, more functional, while a gazebo or pergola can provide more outdoor living space. These outdoor structures boost the function, and therefore increase your home’s value. 2. Privacy in outdoor spaces Today, the outdoor space is an extension of the home. People are moving indoor furniture outdoors, adding fireplaces and even installing TVs. Yet, when they are relaxing outside, individuals want a measure of privacy. No one wants to be gawked at when enjoying a drink and watching the game after a long day at work. If possible, add some privacy to a pergola by installing walls or choose an enclosed gazebo. 3. Outdoor kitchen The modern outdoor kitchen includes more than just a grill and a picnic table. An outdoor sink, range and even oven can make your home more inviting. Of course, you will need to weigh the costs of this upgrade against the potential benefits; but if you have a great outdoor entertaining space, consider adding an outdoor kitchen to attract potential buyers. 4. Outdoor lighting Outdoor lighting appeals to buyers for numerous reasons. First, it improves the function of the space, making it easier to enjoy an outdoor living space even after dark. A well-lit deck lends itself to summer barbecues and parties that continue after midnight. Outdoor lighting also helps attract buyers by making the home more visible when they drive by the property, even if they drive by after dark. Good outdoor lighting will make the home inviting at all times of day. It also helps improve the security of the property, which may be important to select buyers. 5. Low-maintenance landscaping A lush, yet high-maintenance, garden might keep your home from selling, as many buyers are busy and do not have the time it takes to tend a garden. When upgrading your landscaping, go as low-maintenance as possible, while still ensuring that the home is attractive. Perennials that grow well in your area can add a splash of color, but don’t need to be replanted year after year. Mulch or rock can keep weeds at bay while giving the space a finished look. Automatic watering systems help ensure the plants have enough moisture to thrive, without requiring the owner to keep track of watering schedules. Don’t forget to add stone walkways and decorative items to improve the aesthetics of the space. 6. Natural wood and stone Natural wood and stone features on the home—even if they are made from faux materials such as vinyl—will attract the modern buyer. This design trend can make an outdated home look modern on the exterior, causing more buyers to stop and schedule a showing. It also can boost the appeal of a modern home by helping it to stand out in a crowded marketplace. 7. Fire pits or fireplaces If you have a modest budget, but want to add an outdoor feature that will increase your home’s potential value, consider installing a fire pit or outdoor fireplace. You can even do this as a do-it-yourself project if you have time. A fire pit provides a comfortable, logical place for outdoor entertaining or simply enjoying s’mores together as a family. 8. Permanent seating Many homeowners pull out all the stops when it comes to building decks, patios and outdoor entertaining spaces, but forget the most important part—seating. Consider a permanent, built-in seating option, such as a bench built into the deck or a picnic table that stays with the property. Remember, today’s buyers still have plenty of houses from which to choose. As you prepare yours for the market, be sure to think like a buyer and add features that will make the home as appealing as possible.