Preparing For An Open House

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QandA WITH PETER G. MILLER

The House Won’t Sell. What’s a Broker to Do? Q: I’m an agent with a highly desirable house that won’t just won’t sell. We’re tried several open houses, two price reductions, flyers to all the neighbors, newspaper advertising and a luncheon for local brokers. What additional steps should I consider?

Green dreams: improving a home’s appearance on the outside can create visual appeal that entices a prospective buyer and leads to a speedier sale.

Prep Home for Open House, Outside and In BY

CHARLES SCUTT

inside and outside of the home.At the top of their to-do lists: painting, lawn and garden and remodeling projects.

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eeing is believing, especially when it comes to buying a home.That’s why home showings and open houses are so important.You only get one chance to make a good first impression.With the right preparation, a little elbow grease and some common sense, your home can make a strong impact that can lead to a quick sale. Most homeowners are well aware that their do-it-yourself projects have as much to do with economics as aesthetics. Some 83 percent of 1,000 people surveyed by Ace Hardware cited enhancing their home’s value as a top reason for taking on these tasks

Applying bark mulch to your beds can hide numerous flaws and makes your home look fresh, says John D. Murray, a principle with The Cunniff Group, Newton, Mass.

THE LONGEST YARD First, focus on yard work and exterior maintenance before working your way inside. Keep the lawn mowed and bushes trimmed, says Diana Brodman Summers, author of How To Buy Your First Home (Sphinx Publishing, 2005).“Plant bright flowers during the growing season.And hang a welcoming wreath or other inviting arrangement on the freshly painted front door.” Overall impressions and curb appeal also can be enhanced by coordinating colors and keeping them flowing throughout the house.

INSIDE INSIGHTS Next, it’s time to tackle the interior. Dust, vacuum carpeting and sweep and wash the floors thoroughly, says Wayne Garcia, partner at Wayne Garcia & Associates, Dallas,Tex. “Buyers don’t want to see dirty kitchens or baths, and unmade beds just say ‘I don’t care.’ Sloppy does not sell.” The rule of thumb for successful home showings is to subtract, not add, says Garcia.

See PREPARATION, Page 2

The ABC’s of Buying a Vacation Home BY

BARBARA BALLINGER

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Seduced by sun, fun and a gentle summer breeze, vacationers have long scanned local newspaper real estate listings, fantasizing about purchasing a permanent spot in paradise. So much for fantasy.These days, the real estate-savvy vacationer may skip the daydream

and quickly shop for a mortgage that will turn a dream into reality.Vacation houses are hot. Sales of second houses surged in 2004, according to the National Association of Realtors (NAR),Washington, D.C.A study from NAR shows that the typical vacation-home buyer now is 55 years old and earned $71,000 in 2003.The median price of a vacation home was $190,000,

between mid-2003 and mid2004. People plunge into vacationhome purchases for many reasons: to diversify their investment portfolios, create a stream of rental income or to provide a personal or family retreat, according to the NAR study. The family connection in a favorite locale was the impetus for second-home buyer Leslie

Stern, a Chicago designer, her lawyer husband, and their two daughters, 18 and 21.They built in Santa Fe, N.M., after years of renting. The need to be surrounded by friends and loved ones and connect or “hive” in a setting abuzz with activity has picked up momentum, says J.Walker Smith,

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A: That there have been two price reductions does not mean the house is yet priced right for the market. You may have to go further. Before lowering the price, ask the owners to consider two alternatives. First, restructure the sale. Instead of lowering the price – say by $5,000 – offer to sell with a $5,000 credit at closing.This will reduce a buyer’s cash requirements. Second, re-structure the commission.With permission from your broker and the sellers, make the transaction more attractive to local brokers and offer more to the broker who brings in a purchaser. Q: What is a mechanic’s affidavit? A:When homes are built or repaired there’s often a situation where a contractor will only be paid after certain tasks have been completed. Sometimes there’s a dispute about the quality of the work or the contractor simply isn’t paid. In such instances a contractor can file what’s called a mechanic’s lien in the local records.This is simply a lien is in the form of an “affidavit,” a sworn statement made in writing.Typically, the contractor must spell out how much is due, the work dates, the location of the property, the name of the owner, etc. There are various requirements for a mechanic’s lien and such requirements vary by location. For example, the lien may have to be filed within a given timeframe once the work is completed.The contractor may have to provide certain notices to the owner. For details, talk to a local attorney. Q: How does real estate impact society and the environment? A: Real estate is profoundly important.A home is shelter and it’s more – it’s a measure of accomplishment and ego, a marker of one’s place in society, evidence of financial success and a haven where one can find peace and separation from the outside world. In broader terms, real estate represents a significant porSee ASK OUR BROKER, Page 2

OPEN HOUSE CONTINUED FROM PAGE 1 “When sellers don’t declutter, their homes always look smaller,” adds Murray.“Move all boxes, extra furniture, or anything hanging around on a floor and relocate it either out of the home or into the basement.” A mix of natural and artificial lighting is important to setting an upbeat mood.“Change your bulbs and position lamps strategically,” says Murray.

OPEN HOUSE, OPEN CALENDAR For quicker sales, Murray encourages sellers to permit flexible hours in showing their home.“If your home can only be seen one or two hours a week it will usually be on the market longer that competitive homes that can be shown more frequently,” Murray says. Most experts agree that the best days to show a home are usually Saturdays and Sundays. Prospective buyers “know that this is when most homes are shown and they sometimes have that time blocked out on their weekend,” Murray says.“The absolute best showings are during sunny days in the late spring or early summer when every-

thing is looking its “best” and flowers and trees are in bloom.” “Sunday afternoon is my top choice,” says Summers.“It is after church services and at the time when many people are relaxed. Motivated buyers may be hard to get, if at all possible conform to their schedule.”

GARCIA CONCURS “Avoid saying ‘no’ to a potential showing or asking for 24 hour notices,” he insists.“Today's buyer may skip work early or want to look during a long lunch. Say no and they will just go look at someone else's house.” Garcia recommends taking advantage of sunny daylight hours, when it’s nice and bright. Remember that safety may be an issue at night for the buyer, seller and agent.“I've even tried weekdays from 5 to 7 p.m. to catch people coming home from work,” Garcia says. On the day of the showing Prior to visitors arriving, be sure to open blinds and leave plenty of lights on when showing your home, says Garcia.“It shows that you are ready for the buyer and have made the effort to prepare.Also, clean and clear all table tops, kitchen and bath counters. Light, pleasant music

adds the final touch.” To create a more lasting impression, Murray advises displaying a small tabletop poster showcasing exterior photographs of your home taken during different seasons. Check outside to be sure that sidewalks and outside stairs free from ice, snow, leaves and other debris that could deter a potential buyer from safely getting into your home. Before the doorbell rings, don’t forget to take out the trash, close the lid on the toilets, empty the litter box and ensure that pets are cared for. “Nothing can deter a potential buyer from entering into a house for sale more that the sound of a barking dog,” says Summers.“Try to secure pets in another location when your home is being shown.” Lastly, if you decide to stay in your home when potential buyers walk through, which some real estate agents encourage,“do not follow the potential buyers around,” Summers says. “However, do offer to answer any questions they may have.” © Content That Works

Ask our broker CONTINUED FROM PAGE 1

tion of the national economy, including a large percentage of all jobs. In terms of the environment, homes represent the use of materials, systems, land and fuels in exchange for providing shelter. One may well argue whether given housing systems and designs might be made more efficient and environmentally friendly, but the very existence of housing means there will always be some ecological impact as a result of real estate development. Looking toward the future, unless we have fewer households we are destined to have more houses and continued debates regarding land use, fuel efficiency and related topics.

Q: I would like to get into the world of real estate; however I don’t have any knowledge. What can I do? A: But you do have knowledge.You live somewhere. You pay rent and utilities or you know folks who do. You can go down the street at any time and see which houses are for sale and how prices are changing.You can read the paper and see whether interest rates are rising or falling. What you need is really close at hand: Speak with local brokers and ask about the classes you need to get a basic sales license.Take the course; it will prepare you to take the entry exam. But the course also will do something else: it will give you a strong overview of real estate and how it is bought, sold, marketed, financed, regulated and managed. It’s not important whether you get a license – you don’t have to.What’s important is that the class will give you a host of ideas and questions to ask. Once the class is finished, you can then read books and speak with brokers, salespeople, attorneys, lenders and closing agents. Q: We moved into a home last year. The house has a pool and now we have discovered it leaks. When we spoke with the repair people, they said they had been to the property two years before and the owner had refused to make repairs. Shouldn’t the owner have disclosed the leaks?

VACATION CONTINUED FROM PAGE 1 president of Yankelovich Inc., the Chapel Hill, N.C., research firm. “People who don’t find the chance to reconnect at home may find the chance to do so at their second home,” he says. To avoid buying wrong, plan carefully.The following points will help: Location.With so many places beckoning, your first decision should be where you’ll go. If you desire a frequent getaway, a place reached quickly by car might prove easier than a place that calls for a plane ride and drive. Chicagoans Tracy Taylor, a graphics designer, and landscape architect husband Doug Hoerr bought and remodeled a vacation house in Michigan that’s 90 minutes by car from Chicago. Their knowledge came from visiting friends.The commute has worked well, even with children, 5 and 2 years old. Stern and her family opted for a 2- to 3-hour plane ride and 50minute drive, which increases their chance for delays.Yet they see an upside: a home with four seasons to enjoy, wonderful restaurants and outdoor activities. In doubt? Rent for a month to test how you feel about the trek and whether the area holds appeal for multiple visits. Costs. If you think that most second homes won’t cost much, don’t bet your second-home kitchen sink – especially that new one by the fancy outdoor grill. More second homes are well appointed today, with dish-

washers, air conditioning and pools, says Walter Molony, an NAR spokesman. If you use the house regularly, costs may seem more palatable, says real estate consultant Marta Bursary of The Concord Group in San Francisco and Newport Beach, Calif. If you intend rare visits, a time-share may be smarter. Guests. If you purchase in an appealing location, you may find yourself as a modern-day Bob Newhart innkeeper. Most second-house owners learn to set rules. Says one Chicagoan with an Indiana Dunes house,“I tell guests to help themselves to the refrigerator.” She also expects some help.Those who don’t may be surprised.“They’re not welcomed back.This is my R&R, too,” she says. Rentals. If you plan to rent to defray costs or because you want to take a vacation elsewhere, know that vacation rentals can reflect real-estate cycles, too.The New York area Hampton market remains hot despite the so-so economy, says consultant Paul Purcell of Braddock + Purcell. But, he says,“There’s always something to be found. Not everything has been snatched up,” Purcell said in late May. One useful change, he adds, is that owner’s no longer rent for the entire season, from Memorial through Labor Day, but do so piecemeal. If you find a renter, keep a log of what you earn and spend for tax deductions, says Chicago CPA David Dahl of Leaf, Dahl and Co. If you plan to live in it for more than 14 days a year, you can’t deduct expenses.

Family Goals. If you have young children, be aware that interests may change as they get older.“Many young ones can be dragged along; older ones may not want to leave friends,” Purcell says.A solution? Let your kids “import” friends, he says, or plan activities that both generations enjoy. Retirement. Many owners buy with the idea of retiring there yet they fail to check whether medical facilities are adequate, transportation to loved ones available and how they’ll feel about being far from family.“It should fit your lifestyle,” Purcell says.“People may think they’ll go skiing for the rest of their life but they forget as they get older they won’t or want a balance,” he says. Some who can afford keep their original place. Stern says they will. Investment. Prices may be escalating, mortgage money may remain plentiful, and interest on a second home may still be tax deductible, all reasons to buy. Vacation properties purchased between mid-2003 and mid-2004 reflected a median price of $190,000 and an appreciation of 12.8 percent from $168,500 in 2001, according to NAR. Those who’ve done their homework know that that situation could change. It’s smartest to buy for an old-fashioned reason: pure enjoyment. Stern did. “If we sold we could get more for the house but I did it more for our mental relaxation,” she says.

A: It may well be that two years ago the leaks were insignificant and not worthy of repair or that weather or a lack of maintenance during the past year made the leaks substantially worse.A professional home inspection at the time of purchase could well have caught this problem – if there was then a problem. © Content That Works

Do you have a question or a quandary about buying, selling or renting? Peter G. Miller, author of The Common-Sense Mortgage, specializes in providing real solutions to real estate dilemmas. E-mail your questions to [email protected].

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© 2005 Content That Works – All Rights Reserved • contact us at 866-6CONTENT or CONTENTTHATWORKS.com for licensing information.