McLeod Enterprises
My goal is to help you reach yours!
Teresa's Renderings
How to Enhance the Value of Your Home
Posted by Teresa McLeod
at 05:46 PM on February 22, 2009
|
comments (0)
|
Springtime evokes a feeling of renewal. For many of us that means spring cleaning; however, for others it means it is the time to put their house up for sale. With that is mind, it is imperative you understand the financial impact "staging" has over the resale value of your property.
Home Staging is a psychological art. The art comes in being able to transform an ordinary home into the most desirable property in the neighborhood! Most people have a strong desire to live in a clean, clutter-free environment...a desire usually influenced by culture, up bringing and a perceived definition of what a home should be. Today's average homeowner is educated and savvy to the real estate market and aspires to sell their home for the most profit the market will allow.
Goals of Staging
The following tips can virtually eliminate your handicaps and increase the value of your property up to 30%. If you are willing to conduct a hard-nosed assessment of your property, you will financially reap the fruits of your labor at the closing table! This guide was prepared to take the fear out of the staging process and show you how simple it is to enhance your home's resale value. Three significant goals to consider when beginning the process are:
1) You want to seduce a Buyer into wanting your home...no matter what the cost!
2) You want to sell your home for maximum profits in the shortest amount of time.
3) You understand that Buyers do not like to buy homes that appear to be someone else's so you want your home to "mirror the effect" of a model home.
The top Elements of Staging
The Elements of Staging include room styles, furniture arrangement, décor themes and creative approaches to space and storage. There are many opinions as to what is the most desirable element of the Staging Process, but most agree the De-clutter of your home is the number one affordable way to enhance its value.
1) CLUTTER-FREE
If you had to place a priority on one element that would improve the sale-ability of your home....it would be to De-clutter. This means that all unoccupied areas of the home....attic, basement, garage, closets and unused rooms should be turned into storage spaces for all your knickknacks, collections, out of season cloths and unused items. Before you spend needless money to rent a storage building, consider this...your problem may not be a shortage of storage but a lack of organization. Organizing your home will create a less stressful atmosphere and a much desired sense of control and harmony. To get started, you must remove store knickknacks, family photos, newspapers/books, collectibles, hobbies, over-grown plants, a percentage of your furniture, toys and pet paraphernalia. Second, you need to remove worn rugs and heavy drapes to enhance the illusion of space, highlight pretty floors and bring in lots of light.
2) CLEANLINESS If you were raised by a parent that loved to clean, you probably think the phrase "cleanliness is next to Godliness" is found somewhere in the Bible! Even though it is not the favorite element of the staging process, it is second only to de-cluttering in having an impact on creating value in the home. When a Buyer previews your house, your pride of ownership is demonstrated in your cleanliness and the way you organize the home. Spotlessness translates into higher profits at resale time. Your home requires extra attention before the resale process and should be spotlessly clean and fresh smelling. This means you will have to stay on top of problem areas such as the entry, bathrooms and pet areas. Because the entry is where the Buyer will form their first impression, you want to pay attention to the over all effect you are trying to impart in this area. Pay special attention to bathroom sanitation and the elimination of pet order. Nothing turns a Buyer off faster than foul odors.
3) COLOR IMPACT
Painting you home a neutral color will, undoubtedly, give you the most benefit from expenditure! Painting neutral shades of White, Cream or Khaki will visually expand the size of a room and evoke a feeling of newness. Neutralizing with color also means addressing other color issues. You will need to address the color schemes of your flooring, cabinets, counter tops, drapes and appliances. A trip to the local home improvement store will enlighten you as to the many affordable ways to remedy your color dilemmas.
4)CLEAN CLOSETS
Storage is of major importance to the prospective home buyer. You want to create the illusion of spaciousness, not only in your rooms but your closets. It is necessary to take everything out and only put back ½ of what was in them to achieve this purpose. For the interim you will have the house on the market, it is advisable to rent a storage building to facilitate your storage problems; however, if you can't afford this, then turn a corner of your garage into an area for neatly stack moving cartons. Remember, in doing this, you will already have half of your packing done when you do get a contract on your home.
5) COSMETIC REPAIRS
It is especially important to fix minor problems. Neglect breeds mistrust! You should fix leaky toilets, torn screen doors, squeaky hinges, loosen knobs, burned out light fixtures and holes behind door knobs.
6) CREATE A MOOD
Re-staging your home to evoke your favorite mood is quite easy! Try to recreate how you feel when you are in walking in your garden, riding in the mountains or relaxing on a beach. Your color theme and décor should reflect the personality of this mood and inspire others to feel the same. This trick is often used in Model Homes. Designers use this element to reflect ambiance and evoke the "nesting emotion" in the carefully designed and staged homes.
The most affordable way to create a mood is with the use of sounds and smells. The sound of peace and quiet can be a positive reflection on your environment, so make sure there are no sounds of mechanical problems from pipes and appliances in need of repair. Playing soft music in the background and putting out fresh-baked chocolate chip cookies or apple pie on the table will make your home more cozy and enticing. "Staging" these appealing stimulants will stir up pleasant memories and make the buyer feel right at home the minute they step out of their car.
7) CURB APPEAL
Maintaining the landscaping is not the only way to maximize curb appeal. You have to add other elements to the exterior of your home in order to grab the attention of Buyers & the whole neighborhood! Suggestions include, sprucing up the front door with new hardware, brass kick plate and paint, as well as, cleaning the general entry area. Remember to pressure wash your concrete drive when pressure washing the house. Plant bright flowers and add outdoor lighting so those evening window-shoppers can see how special your home looks lit up at night.
8) CONDITION OF YOUR PROPERTY
a) The visual condition of your property will have the biggest impact on how a Buyer perceives the overall condition of your property. If they feel you have neglected the little things, they will have serious doubts as to the maintenance of your non-visual systems. However innocent this might be, it will evoke doubt and mistrust in the buyer's mind-eye.
b) First impression do count and your exterior and entryway are the "first impression" focal points of your home. You have the opportunity to either make a negative or positive statement in these areas.
c) The second most important area to keep in top condition is the Kitchen. It is, perhaps, the most important room of the house and its condition will have a major financial impact on the value of your house. It is very important that there are no sounds of mechanical problems from pipes and appliances. If it is outdated or in need of repair, you should concentrate a significant portion of your staging budget on this room.
d) Smell has more of an impact on staging than you could ever imagine. It can make or break the staged mood you are trying to create! Try to achieve the smell of "newness" in all your rooms.
e) Most people spend the large amounts of time in their living room and bathrooms so they are the first to show wear and tear. Make sure you concentrate on the condition of these rooms. Your bathroom plays a significant role in your home and there are many ways to improve deficiencies without spending a lot of money. Make sure you eliminate odors and dampness!
f) The condition of your basement and attic says more about the condition of your property than you realize! If a Buyer sees a neat, clean and organized basement and attic, they will have much more confidence in the overall condition of your property. It is imperative that there are no signs of pest infestation or water problems. You must eliminate all signs of dampness, including mold and mildew smells, with a dehumidifier. This can cost you thousands of resale dollars at the closing table if you don't remedy this matter beforehand.
g) Garages are often problem areas of the home. Make sure you clean up oil spills, install a garage opener, hang up tools, and organize it well.
Just remember the whole process of staging is to achieve your goals of selling your home for the most resale profit in the least amount of time. If you incorporate these tips you will have gone the distance to foster the confidence in the condition of the home and your credibility.
Checklist for Purchasing Properties to Flip
|
Posted by Teresa McLeod
at 05:26 PM on February 22, 2009
|
comments (0)
|
The following list will assist you in:
#1: Your purchase decision, and #2: Making a bigger profit margin.
* Location, Location, Location...Is the house in a safe neighborhood that would attract potential buyers for a fast resale?
* How long has the house been on the market and why is it being sold?
* Is the house structurally sound and the mechanics in fair to good shape?
( i.e. Roof, Foundation, HVAC etc. are high-price "fixes".)
* Can it be renovated or brought up to shape for less than $5,000, $10,000 or $25,000?
(What ever price YOU set as your maximum expenditure.)
* What is the total expenditure with loan cost factored in?
* Are you willing to take a financial risk on this property should it not sell right away?
* What are the other houses, in a 5 mile radius, selling for?
* How long have other houses been on the market before selling?
* What is the "atmosphere" like in the neighborhood and surrounding areas? (Look for number of rentals, abandoned homes, run-down properties, or a high % of commercial properties in the area.)
* Is the property selling at least 20-25% less than the similar sales in the surrounding five mile radius?
* Will the house pass City, County, Pest and Lender Inspections?
(i.e. Appraisal, Title, FHA guidelines, etc.)
* Will the Seller make the house available for inspections prior to closing?
* Will the Seller deliver a General Warranty Deed at Closing?
* Can I purchase, renovate, clean, market and resale the property within 60-90 days?
* What external factors will affect the outcome of this venture?
(Examples: Season of the year, weather conditions, political/economy factors, your schedule, time restraints, your financial situation.)
* Can I financially carry the property if it doesn't sale right away?
* Will Environmental Hazards, Encroachments, Easements, Landfill, Flood Zone, Zoning Violations, Neighborhood Nuisances, Lawsuits, EIFS (Synthetic Stucco), Termites, Subdivision Restrictions, HOA Rules/Regulations, Clouded Title, Drainage or Grading Problems affect the purchase and/or resale of the property?
10 Redesign Tips to Maximize Your Home's Resale Value
|
Posted by Teresa McLeod
at 05:17 PM on February 22, 2009
|
comments (0)
|
Winter is over and it's time to create a feeling of renewal in your home. This guide is chocked full of ideas to create the essence of springtime. Whether you rent or own, accomplishing your goal isn't complicated. Just think Redesign...a term coined to describe the reuse of what you already have. You begin by de-cluttering & rearranging furniture to focus on another area and then pull it all together using your favorite accessories. What could be simpler than a fresh look using your own treasures!
1. Reduce clutter.
Spring is a time for renewal. Our moms called it Spring Cleaning. Today it's known as De-Cluttering. Getting rid of everyday clutter is probably the most important decorating tip in Redesign. Has paper,
pets or toys taken over your home? Do hobbies & collections dominate a room? Putting away winter accessories and clutter will create a stress-free atmosphere.
2. Refresh with paint.
Nothing imparts a clean fresh feeling like a coat of paint. It makes the most impact of anything you can do. Khaki is the new neutral. Pair it with white trim for the poplar Cottage look. My personal favorite is the all white room. The backbone for Modern or Traditional, it is best used to evoke a serene atmosphere.
3. Redo your entryway.
First impressions count. Got curb appeal? Your exterior décor should mirror your interior design theme. You can achieve the "wow affect" by repainting your door, adding a new brass kick plate and planting pretty flowers in pots flanking the entry!
4. Refocus your focal point.
For winter comfort and warmth, most people arrange their furniture around the fireplace and install heavy drapery to hold in the heat and block dreary view. Uncovered your windows to let in the light and turn your sofa to face the window for an inviting view of the garden. If you can't rearrange your furniture away from the fireplace, "refocus the feeling" by cleaning it & inserting a basket of ferns in the opening.
5. Rethink your accessories.
Replacing heavy drapery with sheers & covering your sofa with slip covers will brighten your den. Store your winter rugs, throws and pillows and replace them with cotton or sisal rugs and pastels colored pillows. Bring garden furniture & accessories inside, to give your living room the Cottage feel. Use floating flowers & candles in crystal bowls, a small water feature and wicker or rattan to complete this charming theme.
6. Recreate romance.
Atmosphere is designing a room around a special theme. The French Bistro look uses red and black check, metal furniture, wire accents and collections of chickens. Turn your kitchen into a Tuscan wine cellar with wrought iron accents, wine racks and lots of Mediterranean cookbooks. Want the romance of the Coastal Cottage feeling? Achieved this look by arranging all white furniture & linens with rosebud florals, bowls of sea shells and crystal vases of white peonies.
7. Renew traditions.
Traditional or classical décor means you many never have to redecorate again. To achieve an elegant timeless look each spring, exchange your brass & copper accessories for your silver and crystal. Replace wool or velvet with cotton, seersucker or matisse. Finish the look with white linen, ironstone and a vase of calla lilies.
8. Reuse your space efficiently.
Another easy way to achieve the "wow factor" is to set up a "Vignette". The revival of the porch has made it possible to create affordable out-door living spaces. Bring garden furniture, pillows, sisal rug, candles and pots of fresh flowers together and all most effortlessly, you have "staged" a little used area for a more pleasing purpose.
9. Reinvent new uses for old things.
My personal favorite way to achieve a new look is to use things in unusual ways. Decorate with bed sheets as they make great duvets, shower or window curtains. An armoire creates elegance in the foyer and hides the clutter of umbrellas, school books & purses. Use an armoire to keeps your linens, toiletries and appliances in one convenient area in the bathroom. Another favorite tip is to hang a wine rack on the wall to hold towels.
10. Regroup your Collections.
Use your beloved collectibles to achieve your spring look. Love bird houses? Round up your collection and bring inside to use with your flower arrangements, wreaths and fireplace mantles. Fill small pots with parsley, lemon verbena and basil for the kitchen sill. In the den showcase your favorite new baby, wedding or vacation photos under your coffee table glass.
Remember, what ever redesign project you undertake this spring, good design comes from creating functional spaces without sacrificing comfort.
Dangers of the Real Estate Contract "As Is" Clause
|
Posted by Teresa McLeod
at 04:51 PM on February 22, 2009
|
comments (0)
|
The impact these two small words can have on the business transaction is second to none! Because of the legal and financial ramifications of an "As Is" property, it is important that the Buyer investigate a property's liabilities before starting the price negotiation phase.
Does "As Is" satisfy contractual Disclosure or Notice of the Property's condition?
For many years, it has become standard for Sellers to include the term "As Is" in Real Estate Listing Agreements or Purchase Contracts, in hopes that this clause will alleviate them from their responsibilities. They intend for the "As Is" clause to be their "official notice" of the property's condition or lack of warranty, thereof. The ideology behind the phrase is two fold. First, the Seller is giving "official notice" and opportunity to the Buyer to discover any defects in the property; and second, the Seller is transferring the responsibility of finding and then accepting said defects to the Buyer.
The Discovery Phase of the Real Estate Transaction
The "Discovery Phase" of the transaction allows the Buyer the opportunity for discovery of any latent defects. In essence, allowing the Buyer to discover any problems should give them the knowledge they need to make an educated purchase decision. Most Buyers are lured into accepting the "As Is" clause with the false sense of security they attain by hiring the services of a Home Inspector. Until recently, the Home Inspector was not required to have formal training or a license to practice his trade, therefore, anyone with little to no training could start up their own business. After years of reported fraudulent practices, Legislators stepped in and created laws that mandate the Inspector now be licensed and held to a higher accountability. While this clause may give some protection to the Seller, regarding unknown defects, it will not protect them from the blatant misrepresentation and concealment of the property's known defective condition.
What the "As Is" Clause excludes...
Sellers can, more thoroughly, protect themselves from charges of misrepresentation and fraud when they specifically list known defects in writing. This disclosure usually remedies any future questions as to Seller's intentions. Termites and encroachment problems are two examples of what the "As Is" clause excludes, while other contractual language is strategically placed in the contract to address both of these requirements. The following Scenario would be an example of misrepresentation and/or fraud. A Buyer has a property inspected, however, there are plumbing problems that are not obvious to the Buyer or Home Inspector. The Seller knew of this damage, and the subsequent repairs made, but he did not disclose the water damage history. In a court of law, it is probable that because the Seller did not disclose his prior knowledge, the "As Is" clause in the contract would be deemed insufficient to protect the Seller. Sometimes, even after the Seller discloses all known defects (due diligence), a Court will hold him responsible for things that go wrong after the closing. The 1998 Albany, Schooley vs Mannion Appellate Court decision, is but one case that now provides Sellers and prospective Buyers with food for thought. The Appellate Decision, in this case, allowed that the final verdict depended on factors not included in the written contract.
Facts of Schooley vs Mannion Case
Plaintiff Schooley purchased an apartment building from Defendant Mannion through the means of an "As Is' Contract. When the tenants of the building started complaining about their high utility bills and freezing pipes, the new Landlord tried to remedy the matter by making repairs to the building. During his renovations, Schooley discovered the building was not insulated properly, even though, Mannion had allegedly represented that it was. Consequently, Schooley filed a law suit alleging Fraud and Breach of Warranty. He, also, sought punitive damages, stating the fraud was malicious and that Mannion had full knowledge that his disclosure was false. Decision: The State Supreme Court dismissed the Complaint with prejudice. Plaintiff Schooley then appealed and the Appellate Court reversed the prior decision, finding in favor of the Plaintiff. This is just one of the many cases that prove Sellers and their Agents should be very careful in all written disclosures and verbal representations. Neither the "As Is" clause, nor the language of the "Merger" clause (found in all contracts) now offers the merits of protection they once did. The "Merger Clause" is legal terminology included in the contract to ensure that all parties understand the written contract is the entire agreement between parties. It is, also, an insurance policy that evidence, outside the contract, will not be admissible in a court of law to contradict the terms of the written agreement should there ever be a dispute.
Buyer Beware!
Any verbal representation you or your agent are counting on should be specified in the written contract. If you fail to include the correct legal language to protect your interest, the "As Is" and "Merger" clauses may nullify any future claims you may have. Because real estate agents are not practicing attorneys, they are not able to modify the language in a contract or give you legal advice; therefore, it is imperative that you have an attorney preview the language of your Offer to Purchase before presentation to the Seller. The fee an attorney will charge for this service will not only buy you peace of mind, but may well save you future heart ache and thousands of dollars in legal fees.
For most consumers, the purchase of their home will be the biggest and most important financial investment they will ever make. While most people are most concerned with the negotiations of the purchase price, it is imperative that the consumer understands what the "As Is" clause in a Real Estate Contract really means.
