Many sellers overlook the true value of curb appeal. Wow your potential buyers before they ever step foot in the house!

1. Add splashes of color. With every changing season, a landscape should provide a new display of colors, textures, and fragrances. “It’s best to use one or two and repeat them,” Glassman says. Example: white iceberg roses that bloom in spring, summer, and fall as a backdrop; in front, a contrasting punch of purple salvia or lavender that will flower at the same time; and as an accent, a crape myrtle tree that provides changing leaf colors in fall and interesting branches come winter.

2. Size trees and shrubs to scale. These should be planted in the right scale for the house so that they don’t block windows, doors, and other architectural features on the home’s facade. A large two-story house can handle a redwood, Chinese pistache, sycamore, or scarlet oak, but a one-story cottage is better paired with a flowering cherry, crabapple, or eastern redbud. Too many trees cast too much shadow and cause potential buyers to worry about maintenance and costs.

3. Maintain a perfect lawn. A velvety green lawn demonstrates tender loving care, so be sure sellers’ homes don’t have brown spots. Some rocks, pebbles, boulders, drought-tolerant plants, and ornamental grasses will generate more kudos, especially in drought areas.

4. Light up the outside. Good illumination allows buyers to see a home at night and adds drama. Sellers should use low-voltage lamps to highlight branches of specimen trees, a front door, walk, and corners of the house. But less is better. The yard shouldn’t resemble an airport runway.

5. Let them hear the water. The sound of water appeals to buyers, and you shouldn’t just reserve this for your backyard. A small fountain accented with rocks provides a pleasant gurgling sound, blocks street noise, and is affordable.

6. Use decorative architectural elements. A new mailbox, planted window boxes, and a low fence wrapped in potato vines add cachet, particularly during winter months when fewer plants blossom. Colors should complement the landscape and home. Just don’t overdo it: Too much can seem like kitschy lawn ornaments.

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1. Don’t Overspend on Furniture and Remodeling
You’ve just handed over a large portion of your life savings for a down payment, closing costs and moving expenses. Money is tight for most first-time homeowners – not only are their savings depleted, their monthly expenses are often higher as well, thanks to the many new expenses that come with home ownership, such as water and trash bills, and extra insurance.
Everyone wants to personalize a new home and upgrade what may have been temporary apartment furniture for something nicer, but don’t go on a massive spending spree to improve everything all at once. Just as important as getting your first home is staying in it, and as nice as solid maple kitchen cabinets might be, they aren’t worth jeopardizing your new status as a homeowner over. Give yourself time to adjust to the expenses of home ownership and rebuild your savings – the cabinets will still be waiting for you when you can more comfortably afford them.

2. Don’t Ignore Important Maintenance Items
One of the new expenses that accompanies home ownership is making repairs. There is no landlord to call if your roof is leaking or your toilet is clogged (on the plus side, there is also no rent increase notice taped to your door on a random Friday afternoon when you were looking forward to a nice weekend). While you should exercise restraint in purchasing the nonessentials, you shouldn’t neglect any problem that puts you in danger or could get worse over time, turning relatively small problem into a much larger and costlier one.
3. Hire Qualified Contractors
Don’t try to save money by making improvements and repairs yourself that you aren’t qualified to make. This may seem to contradict the first point slightly, but it really doesn’t. Your home is both the place where you live and an investment, and it deserves the same level of care and attention you would give to anything you value highly. There’s nothing wrong with painting the walls yourself, but if there’s no wiring for an electric opener in your garage, don’t cut a hole in the wall and start playing with copper. Hiring professionals to do work you don’t know how to do is the best way to keep your home in top condition and avoid injuring – or even killing – yourself.
4. Get Help With Your Tax Return
Even if you hate the thought of spending money on an accountant when you normally do your returns yourself, and even if you’re already feeling broke from buying that house, hiring an accountant to make sure you complete your return correctly and maximize your refund is a good idea. Home ownership significantly changes most people’s tax situations and the deductions they are eligible to claim. Just getting your taxes professionally done for one year can give you a template to use in future years if you want to continue doing your taxes yourself. And remember, tax preparation expenses are tax deductible, so whatever your marginal tax rate is, think of that as a discount on the cost of the service.
5. Keep Receipts for Home Improvements
When you sell your home, you can use these costs to increase your home’s basis, which can help you to maximize your tax-free earnings on the sale of your home. In 2008, you could have earned up to $250,000 tax free from the sale of your home if it was your primary residence and you had lived there for at least two of five years before you sold it. This assumes that you owned the home alone – if you owned it jointly with a spouse, you could each have gotten the $250,000 exemption.
Let’s say you purchased your home for $150,000 and were able to sell it for $450,000. You’ve also made $20,000 in home improvements over the years you’ve lived in the home. If you haven’t saved your receipts, your basis in the home, or the amount you originally paid for your investment, is $150,000. You take your $250,000 exemption on the proceeds and are left with $50,000 of taxable income on the sale of your home. However, if you saved all $20,000 of your receipts, your basis would be $170,000 and you would only pay taxes on $30,000. That’s a huge savings: in this case, it would be $5,000 if your marginal tax rate is 25%.
6. Don’t Confuse a Repair With an Improvement
Unfortunately, not all home expenses are treated equally for the purpose of determining your home’s basis. The IRS considers repairs to be part and parcel of home ownership -something that preserves the home’s original value, but does not enhance its value. This may not always seem true. For example, if you bought a foreclosure and had to fix a lot of broken stuff, the home is obviously worth more after you fix those items, but the IRS doesn’t care – you did get a discount on the purchase price because of those unmade repairs, after all. It’s only improvements, like replacing the roof or adding central air conditioning, which will help decrease your future tax bill when you sell your home.
For gray areas (like remodeling your bathroom because you had to bust open the wall to repair some old, failed plumbing), consult IRS Publication 530 and/or your accountant. And on a non-tax-related note, don’t trick yourself into thinking it’s OK to spend money on something because it’s a necessary “repair” when in truth it’s really a fun improvement. That isn’t good for your finances.
7. Get Properly Insured
Your mortgage lender requires you not only to purchase homeowners insurance, but also to purchase enough to fully replace the property in the event of a total loss. But that’s not the only insurance coverage you need as a homeowner. If you share your home with anyone who relies on your income to help pay the mortgage, whether it’s a girlfriend or a child, you’ll need life insurance with that person named as a beneficiary so he or she won’t lose the house if you die unexpectedly. Similarly, you’ll want to have disability-income insurance to replace your income if you become so disabled that you can’t work.
Also, once you own a home, you have more to lose in the event of a lawsuit, so you’ll want to make sure you have excellent car insurance coverage. If you are self-employed as a sole proprietor, you may want to consider forming a corporation for greater legal protection of your assets. You may also want to purchase an umbrella policy that picks up where your other policies leave off. If you are found at fault in a car accident with a judgment of $1 million against you and your car insurance only covers the first $250,000, an umbrella policy can pick up the rest of the slack. These policies are usually issued in the millions.
With the great freedom of owning your own home comes great responsibilities. You must manage your finances well enough to keep the home and maintain the home’s condition well enough to protect your investment and keep your family safe. Don’t let the excitement of being a new homeowner lead you to bad decisions or oversights that jeopardize your financial or physical security.

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While the market continues to struggle, homeowners are faced with an important question: Is a home remodeling project worth it?

It’s worth it when it makes life more comfortable, convenient and aesthetically pleasing for the homeowner-especially if the homeowner plans to be in the home to enjoy the improvements for years to come. It also is worthwhile if it adds value to the home, and is likely to be attractive to future buyers.

Projects that traditionally boost a home’s value and appeal include kitchen and bathroom remodels, and the renovation or addition of a porch. Simple additions that add character to a home also increase its resale value. Interior and exterior paint can add a lot of zing especially in colors that are currently popular.

Other smaller projects include installing trims such as crown moldings, wider baseboards and tile back splash; changing the hardware on doors; changing toilets, sinks and bathroom hardware; installing new appliances; upgrading countertops; or reworking cabinets by painting them or replacing the doors and hardware.

Two other remodel projects that boost value: the addition of storage space and a multipurpose room. Extra closet space is very valuable. It has a lot of appeal for resale.

Also, flex-space at the back of the house or upstairs is great. Based on the size of the family and where they are in the growth cycle, it could be used as a playroom, recreation room, home office, exercise room or entertainment space. And based on your budget, you could include built-in bookcases, an entertainment center, fireplace, full- or half-bath, wet bar, under-counter fridge and a porch or lanai for outdoor living.

But the kitchen is still king when it comes to adding value to a home, followed by the bathroom. These rooms are designed for today. The look and functionality of cabinets, appliances, tile, lighting fixtures, et cetera, becomes outdated fastest.

Kitchens, in particular, are changing-in looks, layout and function. We’re finally realizing the kitchen has always been the main gathering point in the home. But until recently, most kitchens have been inadequate to take a crowd. A renovation project can expand the kitchen or open it up to an adjoining space by removing a dividing wall.

Other popular upgrades include commercial-grade stainless-steel appliances; a computer desk; comfortable seating; better-quality cabinetry; granite countertops; and even a fireplace.

A remodeled bathroom usually combines luxury with function. Features that increase a bathroom’s appeal include larger showers with rain shower heads, steam showers, body sprays, heated floors and hinged glass doors or partial shower walls. Also, soaking tubs instead of Jacuzzis, more windows and skylights to let in sunlight, and more efficient, quieter ventilation. You’ll never get dollar-for-dollar what you put into a renovation, but with a kitchen or bath, especially, you’ll definitely improve your home’s value and increase its resale appeal.

Which projects have the biggest payback?
Projects that boost curb appeal, such as replacing siding and windows, add the most value to a home, according to the remodeling cost vs. value report for 2008-09 done by Remodeling Magazine. Maintenance-related projects and moderately priced upgrades provide the most stable payback, the report found.

Projects that recoup only a small percentage of their cost include garage, sun-room and master suite additions, roofing replacement, home-office remodel and installation of a backup power generator.

When resale value is a major factor in a homeowner’s decision to remodel, the best approach is to consult with a reputable local remodeler about actual construction costs, and talk with an experienced Realtor about home prices in the neighborhood, the magazine advises.

Nationwide, the study found the average major kitchen remodel cost $53,235, its resale value was $42,104, and the cost recouped was 79.1%. For a minor kitchen remodel, the resale value was $16, 234 on a $20,320 job, recouping 79.9% of the cost.

A $14,510 bathroom remodel had a resale value of $10,953, and the cost recouped was 75.5%.

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Check out MSNBC’s article regarding the current trend in buying versus renting.

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RISMedia just posted an article regarding Net Zero Energy Homes. Check it out!

For more information, consumers may visit www.ge.com

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Avoid these 8 common mistakes made while shopping for houses, and you’ll have a much more enjoyable time finding your home-sweet-home.   

Mistake 1: Falling in love with a house you can’t afford
Once you’ve fallen in love with a particular home, it’s hard to go back. You start dreaming about how great your life would be if you had all the wonderful things it offered – the lovely, tree-lined streets, the jetted bathtub, the spacious kitchen with professional-grade appliances. However, if you can’t or won’t be able to afford that house, you’re just hurting yourself. To avoid the temptation to get in over your head financially, or the disappointment of feeling like you’re settling for less than you deserve, it’s best to only look at homes in your price range.
Further, start your search at the low end of your price range – if what you find there satisfies you, there’s no need to go higher. Remember, when you buy another $10,000 worth of house, you’re not just paying an extra $10,000 – you’re paying an extra $10,000 plus interest, which might come out to double that amount or more over the life of your loan. You may be better off putting that money toward another purpose.
Mistake 2: Thinking that a particular house is the only one that will suit you
Unless you are a high-end buyer looking at custom homes, chances are that for any home you find that you like, there are quite a few others that are nearly identical to it. Most neighborhoods have multiple homes that are the same model. Further, most neighborhoods are full of homes that were all constructed by the same builder, so even if you can’t find an identical model for sale, you can probably find a house with many of the same features. If you’re considering a condo or townhouse, the odds are also in your favor.
Even when you have a long list of must-haves, there are probably several homes out there that can meet your needs. Another house in the same area might be similar enough to meet your needs but be less expensive. Likewise, you could find a similar model with more of the upgrades you’re looking for at a similar price.
Mistake 3: Being so desperate to become a homeowner that you buy a place that doesn’t suit you
When you’ve been looking for a while and you’re not seeing anything you like – or worse, you’re getting outbid on the houses you do want – it’s easy to start thinking that what you really want simply won’t happen. If you move into a house you’ll end up hating, the transaction costs to get rid of it will be costly. You’ll have to pay an agent’s commission (up to 5-6% of the sale price) and you’ll have to pay closing costs for the mortgage on your new house. You’ll also deal with the hassle and expense of moving yet again. If you decide not to move but to try to make the best of what you have, remember that alterations and renovations are expensive, time-consuming and stressful. The best advice is to wait if you have the luxury of time, or to correct your vision for your future to what you actually need, not want.

Mistake 4: Overlooking important flaws in the structure, appearance or location of the house
For any of the three reasons we just discussed, you might be tempted to ignore major problems with the house that will be difficult, expensive or impossible to change. Carefully consider your options before you make a commitment, and consider waiting until something better comes along. New houses come on the market every day.

Mistake 5: Thinking you’re a handyman when you’re not
Don’t buy a fixer-upper that’s more than you can handle in terms of time, money or ability. For example, if you think you can do the work yourself then realize you can’t once you get started, any repairs or upgrades you were planning to make will probably cost twice as much once you factor in the labor – and that may not be in your budget. Not to mention the costs involved to fix anything you may have started and the fees to replace the materials you wasted. Honestly evaluate your abilities, your budget and how soon you need to move before purchasing a property that isn’t move-in ready.

Mistake 6: Putting in an offer before carefully considering all the pros and cons of the property
In a hot market (or even a hot submarket, with dirt-cheap, bank-owned properties during a housing slump) it may be necessary to pull the trigger very quickly if you find a home you like. However, you have to balance the need to make a quick decision with the need to make sure the home will be right for you. Don’t neglect important steps like making sure the neighborhood feels safe at night as well as during the day and investigating possible noise issues like a nearby train. Ideally you’ll be able to take at least a night to sleep on the decision. How well you sleep that night and how you feel about the home in the morning will tell you a lot about whether the decision you’re about to make is the right one. Taking the time to consider the decision also gives you a chance to research how much the property is really worth and offer an appropriate price.
Mistake 7: Being too slow to pull the trigger
It’s a tough balancing act to make sure you make a careful decision yet don’t take too long to make it. Losing out on a property that you were almost ready to make an offer on because someone beat you to it can be heartbreaking. It can also have economic consequences. Let’s say you are self-employed. Perhaps for you more than anyone else, time is money. The more time and energy you have to take out of your normal activities to search for a house, the less time and energy you have available to work. Not dragging out the homebuying process unnecessarily may be the best thing for your business, and the continued success of your business will be essential to paying the mortgage. If you don’t pull the trigger quickly, someone else might, and you’ll have to keep looking. Don’t underestimate how time-consuming and routine-disrupting house shopping can be.
Mistake 8: Offering more than a house is worth
If there’s a lot of competition in your market and you find a place you really like, it’s all too easy to get sucked into a bidding war – or to try to preempt a bidding war by offering a high price in the first place. There are a couple of potential problems with this. First, if the house doesn’t appraise at or above the amount of your offer, the bank won’t give you the loan unless the seller reduces the price or you pay cash for the difference. If this happens, the shortfall on your bid as opposed to your mortgage will have to be paid out of pocket. Second, when you go to sell the house, if market conditions are similar to or worse than they were when you purchased, you may find yourself upside down on the mortgage and unable to sell. Make sure the purchase price for the home you buy is reasonable for both the house and the location by examining comparable sales and getting your agent’s opinion before making an offer.
Conclusion
Even knowing all of these things, it’s still hard to act on them. You may still find yourself making decisions based on emotion during the home-buying process. Slow down, overcome your emotions and, ultimately, make a home-purchase decision that’s good for both your feelings and your finances.

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The quickest way to freshen a piece of furniture and lift the spirits is through fabric. Fabrics are a way to set the mood of a room. While many would think such a task should be completed by a professional upholsterer, if it’s a smaller project… tackle it yourself. It’s easy and affordable!

Want sophistication in the bathroom? Create a tall fabric shower curtain that hangs from a rod close to the ceiling. It makes the room feel larger, too.

Designers say fabric reflects personal style more than paint does. For a modern look, fabric can be wrapped around square wooden frames and stapled in back. The fabric frames can be hung in a horizontal series of three or four or a grid pattern of nine. Placed inside garage-sale frames, fabric takes on a more vintage, feminine style.

Fabrics also can give a nod to trends without breaking the bank. Besides modern graphics, current looks include ethnic-inspired ikat (pronounced e-cat) and suzani motifs. Wood grain-pattern prints also are becoming popular.

Don’t forget to shop your linen and clothes’ closets for fabrics. A towel can make a plush terrycloth ottoman cover in a bathroom. A flat sheet can be turned into a duvet cover. A quilted matelasse bedspread can become a chair slipcover. Men’s suit jackets, such as gray flannel or navy wool pinstripe, can be converted into handsome accent pillows.

Even classic summertime seersucker can look fresh. Check out the fun window display of seersucker-upholstered chairs at Brooks Brothers.

Room by Room: Other fresh fabric projects

Dining Room: Use outdoor fabrics to make tablecloths and banquette cushions. They are easy to bleach and clean.

Family Room: Create a junior ottoman by stacking three 26-inch boxed pillows that can also be floor pillows for television viewing.

Bedroom: Make a modern canopy by hanging bed drapery panels on swing-arm rods at each side of the bed.

Bathroom: Cover a wastebasket with a decorative fabric using spray adhesive. Add gimp or braid trim with a glue gun to hide the edges.

Closet: Upholster the walls and ceiling of a tiny closet using Mod Podge as an adhesive.

Step by step: Reupholster dining seat cushions

Supplies and Equipment Needed:

- 3 yards of fabric for four chairs
- Tape measure
- Upholstery stapler with heavy-duty staples (about $15 at fabric stores)
- Scissors
- Screwdriver

Step 1. Turn over the chairs and unscrew the cushions.
Step 2. Measure 3 to 4 inches extra per side of seat and cut the fabric.
Step 3. Wrap the fabric on the seat and padding as you would a gift. Pin the fabric in place to anchor it.
Step 4. Pulling the fabric as tight as you can, staple along the edges.
Step 5. Screw cushions back in place.

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 Check out Real Estate Information System’s article First Time Buyer?  Get an Inspection!

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When the easy money was flowing, you could get a great deal on a mortgage from just about anyone. But in today’s credit-challenged world, all the avenues for finding a mortgage come with their own set of problems.

Many banks have tightened lending standards and scaled back offerings. Some banks are no longer working with mortgage brokers, who are under fire for pushing bad loans during the boom.

And while online lending sites hold the promise of one-stop shopping, some have developed a reputation for playing bait-and-switch on rates and not fully disclosing fees.

All this adds up to a major shopping hassle. If you want to get the best rate, you’ll need to tap at least two of the sources below.

Scour the Web
Shopping for a mortgage online has come a long way from the days of one-size-fits-all rate listings. At some sites, including Bankrate.com, MortgageMarvel.com, and Zillow.com, you can now shop anonymously and get accurate rates. Keep in mind that all these sites act as referral services, so eventually you’ll have to close the deal with a bank or mortgage broker.

Best for: If you know what kind of loan you’re looking for, the Web should be your starting point; getting a handle on the current rates and fees will help you know whether you’re getting a good rate when you sit down with a broker or bank officer later on.

If you’re not sure what kind of mortgage you need, however, you’ll want to seek counsel from a real person right away.

What to watch out for: Sites that ask for your Social Security number and address upfront. They might pull your credit report, which could hurt your score if you don’t end up getting a mortgage.

Also make sure that all the fees are clearly disclosed on a site’s rate quote. Otherwise you may get a sorry surprise when you receive the paperwork from a lender.

How to get the best deal: When inputting data into the online mortgage tool, don’t guesstimate your income, your credit score, or other key stats. If you submit incorrect information, you probably won’t get the rate that you’ve been quoted.

Go directly to a bank
At the height of the credit crisis, there seemed to be little point in asking a bank for a mortgage. But banks are lending these days, albeit with some caution.

Best for: Borrowers who are looking for a conforming loan (less than $417,000 in most areas), since some lenders have stopped underwriting jumbos. Also, if you’re refinancing, call your current lender first: To keep you as a customer, it may be willing to undercut the competition.

What to watch out for: Novice loan officers. “In the heyday, underwriting was a matter of pushing a button,” says Steve Curnutte, a former mortgage broker. “Now you have to know what you’re doing.” To prevent your financing plan from fizzling out midway, ask to work with a loan officer who has been in the business for five-plus years, or since before the credit boom took off.

How to get the best deal: Shop locally. A loan officer who’s familiar with the housing stock and the players in your area may have greater latitude to offer you a lower rate than one based elsewhere. Try the local branches of big-name banks as well as community banks and credit unions, which may be using the crisis as an opportunity to snag business from their larger brethren.

Call on a broker
Mortgage brokers doled out plenty of bad loans during the boom. But a good broker can give you more hand-holding than you’ll get online and will scour the market more thoroughly than you’re likely to do on your own.

When it makes sense: If you’re in the market for a jumbo mortgage or financing for investment property, or you just don’t fit the conforming mold, a broker will identify lenders who underwrite unconventional loans. “The more exotic your needs, the harder it is to find a loan right now,” says Keith Gumbinger, vice president of mortgage information site HSH. “Finding that little niche is what a broker does best.”

What to watch out for: Fees. Most brokers make money on the difference between the rate you could get and the rate you actually pay, and they aren’t required to disclose their cut. One way around it: Work with a fee-only broker (you can find one in your area at upfrontmortgagebrokers.org).

How to get the best deal: Obtain rate and fee info from banks and Web sites before you talk to a broker. After all, a good broker can more than make up for his cost if he finds you a better rate than you’d get on your own. But if he can’t, there are plenty of others who would love to have your business.

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