Mission: Organization

Gradually rising mortgage rates, higher energy costs, and a sluggish economy have resulted in slower home sales. Last year the average home sold in 4 months. This year you can expect your home to be on the market 5.5 months. (Read more in our monthly newsletter by clicking our blog post title.)

A serious effort to declutter and organize your home will make it more attractive to potential buyers and result in a faster sale. Even if you're not selling, an organized home saves time and money, reduces stress, improves health, makes a better impression, and allows you to enjoy your home more. Living in clutter saps your energy. According to Ann Sullivan in The Learning Annex Presents Uncluttering Your Space (Wiley Publishing, NY, 2004), the average person loses one hour per day looking for misplaced objects. Over a lifetime you'll spend an entire year searching through cluttered desks and jumbled drawers for your car keys!

Christopher Lowell, host of several popular Discovery home shows, lists 7 Layers of Organization in his book of the same name (Clarkson Potter/Plublishers, NY, 2005).

1. Assess and Schedule.
   Get mentally ready to purge. Block off time in your schedule to concentrate on the task. Assess each room in your home and define its primary purpose. Does it contain the items used in that space? Don't forget to see "the big picture." You don't want to succumb to the domino effect; indecisively moving junk from room to room just makes the task more arduous.
   
2. Reclaim and Update.
   If an item is not being used, can it be repurposed or used in a different room? If it's broken, can it be fixed? If it's outdated, can it be painted or decorated? Remember to consider the cost of your time in making your decisions. Be realistic. If you haven't fixed that broken lamp since it shorted out 3 years ago, you're not going to fix it now.
   
3. Detach and Purge.
   This is the hard part. Emotional attachment to our things is the greatest cause of clutter. Be honest with yourself. If it's broken, uncleanable, torn or worn out, it's garbage. Honestly, no one wants the table with the wobbly leg that sloshes coffee out of the cup every time you put your book down. Think: Can another person use this? Would this item help someone else? If you haven't used an item in the past 12 months, chances are you're never going to use it. And all those boxes you have stacked in the attic that came with the computer, electric shaver, blender, etc., get rid of them. When you move you're going to put everything in large boxes provided by your movers. You are never going to repack things in their original containers; it takes too much time and effort. This is your chance to be altruistic. Make a donation to your favorite charity, give to a needy family through your church, have a garage sale. You'll be helping others while you help yourself.
   
4. Sort and Contain.
   There are all kinds of great, fun containers available today. Gather things that are used together and find a container that fits. For example, Rubbermaid sells a great gift-wrap container. It's tall enough for paper rolls and has recessed pockets for ribbon, scissors, tape and tags. The object is to go to one place in your house and find everything you need for one particular job. Banish the junk drawer. Use inexpensive plastic trays available at hardware and discount stores to organize items by type -- all pens and pencils in one tray, paperclips in another, etc. Buy colorful bins to store children's toys -- blocks in one bin, dolls in another, etc. Remember to label. You want to know at a glance what's in each box .
   
5. Design and Build.
   Once you've decided what goes where and organized it into labeled containers, decide on a storage method. Shelves can be added to a closet to hold containers for winter sweaters. Shelving units can be built or purchased to hold toy bins at your child's height.
   
6. Arrange and Display.
   This is the fun part. Arrange your possessions for efficient use. For example, place the filing cabinet with labeled folders next to the desk so you can reach in and file a bill right after it's paid. Place spices in a rack next to the stove so they're handy when you cook.
   
7. Cease and Maintain.
   Don't let those bad habits come creeping back. Use the "eternal balance" method. If you bring in something, you have to remove something, keeping the contents of your home in perfect balance. Buy only what you are going to use. There's no point in buying a case of copy paper if you only use a ream or two a year. If you have a small kitchen, the bargain quart spice jar really isn't a bargain. Buy smaller quantities that take up less space. Your kitchen will feel roomier and your spices will be fresher. Before you bring anything new into your home, ask yourself: Do I need it? Where will I put it?

Decreasing and organizing the clutter in your home will make it feel more spacious, always a good selling point. So grab a notebook and pen, corral some boxes and gargabe bags, crank up the radio, and get started!

Why Homes Don't Sell

Our Washington region real estate market is softening, but still some homes seem to sell in a few days or weeks and others will languish on the market for months. Why?

We have found that price is a huge factor. If you are really motivated to sell, now is the time to price your home at or below the appraised value or at the researched market value by your experience real estate agent. One of the biggest reasons that a home will sit on the market is that it is simply priced too high.

Another reason that a home will sit is if you the seller make it difficult to show the home. Have you determined that you only want showings between certain times (usually ones that are convenient to you, but may not be convenient to another agent or potential buyer)? Do you require certain pre-notifications before showing the home like a minimum of 24 to 48 hour notice? Have you removed the key from the realtor lockbox on the door out of security fears which defeat any realtor from showing your home?

It is important to be very flexible in a tight market so that your home has the maximum opportunity to be shown not only by your own agent, but by other agents working the marketplace. It is important to be priced right. This is where an experienced real estate agent is your best friend and ally. Listen to sage advice and you may end of being the envy of your neighbors and the new benchmark of how quickly a home gets sold in your community.

For Sale By Owner Tips

Okay you thought the Maryland real estate market was hot and yet your home has sat on the market for now nearly 60 days without a real offer. What do you do?

Click the post title for some great for sale by owner tips, just to make sure that you have all the bases covered such as property disclosures, lead paint disclosure, and make sure that you are following the best practices required by law on fair housing. Not sure that you have the important legal details covered? Not sure that you home is getting the exposure that it needs to sell?

Well, the truth is that our market is cooling off and this makes it extraordinarily tough for a for sale by owner to move their home in this market. A successful home sale requires the introduction of the home into the multiple listing service search engine used by realtors region-wide. It requires network marketing among agents and branch offices, and it requires advertising to prospects outside the region who are contemplating moving to Maryland in the near future through relocation specialists.

When it comes to selling your home is a cooling Maryland market, I am an expert! Visit my website to find out more about my background and how I can help you.

Buyer Possession Before Closing

Is this smart, to let the buyer move into your home before closing? Well yes and no, but there are definitely some considerations that you should take time to think through before making a decision on whether this is right for you.

The situation usually happens when the buyer asks to move in before the loan process has been completed. Most real estate agents will stress caution in this case as the situation is fraught with potential problems.

1. What if the loan is not approved the the buyer is already moved it?
2. What if the buyer starts removing wallpaper or carpeting and then is forced to move out?
3. What if it is really a scam and the "buyer" removes all the appliances and light fixtures?

When would it be a good idea to let a buyer move in the house early?

1. Do you have a rent to own clause or contract? This may be a win-win for all.
2. Has your home been on the market for a while and you are out of the area?
3. Is your rental tenant considering buying the home now?

Be careful on these decisions and make sure that all agreements are duly signed and legally authenticated as you don't want to suddenly have to evict a "buyer" who has just not worked out.

Houses with Mold: Protecting Yourself

Toxic mold in homes is becoming an increasingly prevalent problem in the Washington, DC area. By read the above referenced article and discussing the problem with your real estate agent, you can protect yourself.

Read the information about toxic mold below:

Toxic mold is a type of mold that produces hazardous byproducts, called mycotoxins. While individuals with asthma and other respiratory problems may have reactions to many types of mold, it's thought that mycotoxins are more likely to trigger health problems in even healthy individuals. These toxins are believed to be linked to memory loss and to severe lung problems in infants and the elderly.

Floating particles of mold are invisible to the naked eye, so it's impossible to see where they might have landed until they begin to grow. Loose mold particles that accumulate on items within a house are easily inhaled and can be a constant irritation to the people and pets who live there.

The toxic mold we hear most about is Stachybotrys chartarum, a slimy, greenish-black mold that grows on moisture-laden materials that contain cellulose, such as wood, paper, drywall, and other similar products. It does not grow on tile or cement.

Even if the mold in your home is not toxic mold, it can still be a problem, because any mold growing on organic materials will in time destroy them--and too much mold of any type smells bad and degrades air quality.

When buying or selling a home, it is easy to have a test done (some places will only charge you $50 for the test, but will waive the fee if you use their service to get rid of mold).

Please see the above referenced article to learn more about protecting yourself and your home and be sure to ask your real estate agent whether they believe a test is necessary.

What the heck is escrow?

If you are buying or selling a home, you will undoubtedly hear the word “escrow” a hundred times over. This term can be quite confusing because it is used to describe different events that take place before and after the real estate settlement.

Escrow is defined as a set of documents or something else of value, often money, held by a neutral third party in order to be used at a later date to fulfill an obligation. In relation to real estate transactions there are several things it can mean. The text below is taken from the above referenced article:

Earnest Money Deposits

If you are buying a home, your first exposure to escrow was probably associated with the earnest money deposit that accompanied your offer to purchase the house.
That money likely went into someone's trust account, where it will remain in escrow, protected by that neutral third party, until it is credited to you when the transaction closes (or is dispersed in other ways if the transaction fails to close).

Escrow Agent

You'll hear the term escrow used to describe the title company, attorney or another person who is hired to handle your closing transaction. That person is often called an escrow agent, because she maintains all documents and funds related to the transaction until the day of closing.

Lender Escrow Accounts

The term escrow is used again to describe accounts your lender sets up in order to pay your home insurance and property taxes when they become due. Remember the initials PITI? You saw them when the lender calculated your projected monthly payment. Those letters stand for the components of each payment:

• P, Principal
• I, Interest
• T, Taxes
• I, Insurance

Tax and insurance bills are typically sent directly to your lender. Both of those bills are paid annually, but most lenders require you to pay 1/12th of the annual bill each month. The lender deposits the partial payments in an escrow account, where they'll accumulate until it's time to pay your taxes and insurance the following year. You'll begin funding your escrow accounts by making a payment into them at closing.

Refer to the above article or talk to your real estate agent for more information on escrow.

Cost vs. Value: Remodeling

The above referenced article discusses the possible returns that can be gained from remodeling your home before selling it. When determining whether or not to remodel your home, there are a number of factors that must be considered.

First, you must consider the length of time you plan to remain in the home. Assuming that you plan to remodel to improve quality of life while you are still in the house, you must remodel to suit your individual needs.

The article states that you ought not “confuse repairs with home remodeling. Home buyers expect your plumbing and furnace to work and they don't want a house with a leaking roof. If major systems aren't working, your home could be considered a fixer-upper, and that nearly always means you'll receive lower offers.

So don't expect to recover the costs of repairs you make to get the house in saleable condition, but do realize that those repairs are necessary to attract the majority of buyers—the ones who want a home that's ready to live in.”

Click the link above to learn more about dermining your cost vs. value when determining whether to remodel your home.

Recognizing Loan Fraud

The above referenced article discusses a common problem in the real estate industry: Loan Fraud. This article can help you if you think you may be a victim or if you think your lender or broker is trying to get you to commit this crime.

“Common sense tells us that if our credit record is poor we shouldn't expect to obtain a low interest loan with other excellent terms, but attempts to bypass problem credit are resulting in some "creative" paperwork on the part of unethical people who work in the real estate industry.

Has someone involved with your home buying transaction asked you to make false statements on your loan application or do something else that you feel uneasy about? Don't even think about it unless you're prepared to commit loan fraud, and don't think you can say later that you simply didn't know what you were doing was illegal--that won't work."

This article discusses potential schemes and how you can protect yourself.

Home Escrow Facts

Buying a home? This is an excellent article about the home escrow and how it affects you. Escrow is the money set aside by your mortgage company to pay your taxes, insurance, and possibly even your mortgage payment insurance (PMI).

Is you are selling your home, you may actually receive a check back to you after the transaction has been processed for a refund of unused escrow monies. If you are buying the initial set up of your escrow will be applied to your settlement. You may even want to pay these monies upfront and not roll them in to your loan.

This article gives the ins and outs of escrow. Before you buy or sell make sure you understand the impact.

Is It A Good Idea To Remodel Before Selling

We get asked this question all the time. "Should I upgrade my kitchen/bath/carpet before selling? Will I recover my expenses?" Our recommendation is to make the changes to your home to benefit yourself when you want to.

Don't take on a remodeling project just before selling. You won't necessarily recover all the expenses for it when you sell. In some cases, you may even be creating problems for buyers. Your choice of lovely colors for the interior (not including neutrals), may keep a buyer from closing on your home.

The best rule of thumb is to make changes that will benefit you now.

Consider giving a carpet allowance instead of installing the blue carpeting that you have been eyeing.

If the kitchen or bath are real problems now and really in need of a redo, consider redoing in buyer-friendly neutrals.

Just because you invest in a new kitchen or bath, doesn't mean that you will recover the expenses dollar for dollar. You may end up just selling faster than a home that has not upgraded but not at a higher price.