Renting vs. Buying a Home: Which Is Smarter?

When Laurence DeGaris moved into his first house last August, at the age of 49, the University of Indianapolis marketing professor quickly found himself missing some of the pleasures of renting.
"The best thing in my old place was Lou," DeGaris says. "Faucet leaking? Call Lou. Air-conditioning not working? Call Lou. Now that I'm a homeowner, I got no 'Lou.' You know anyone who does gutters in Indianapolis?"

Is it better to rent or buy a house? That's a question virtually all adults ask themselves at one point or another, and especially around this time of year, as some people consider their goals and plans for the year ahead. So before you answer the question, here are some other questions you should ask yourself first.

Is it important that your house is an investment? If it's very important, you might want to rethink your future living arrangements. "Americans were used to their homes being a store for wealth – something to liquidate in retirement and downsize," says Scott Shellady, a senior vice president of derivatives for Trean Group, a futures and commodities exchange in Chicago. "No longer the case. Houses can go down just as easily as they go up."
He adds: "The bull run in housing we saw in the '90s and early 2000s will not happen again in our lifetime."
Shellady also cautions prospective homeowners to think about the health of the city they want to live in before taking out a mortgage. "Bankrupt municipalities can't put out fires. They can't stop thieves. They can't pick up trash and they can't maintain roads," Shellady says. "How much would your house be worth if your municipality was in that situation?"
This isn't to say your house won't be worth more someday versus when you bought it. But if you want a robust investment portfolio more than you want to buy a house, talk to a financial adviser instead of a real estate agent. Additionally, if you believe you're going to be in a house less than five years and want to sell it at a profit, most experts suggest it's safer to stick with renting.

Have you crunched all the numbers? Ron Throupe, an associate professor of real estate at the University of Denver, says the biggest mistake future homebuyers make is comparing a month's rent to a month's mortgage payment.
"Many people don't have all the numbers," he says. "There are many additional fees you need to include to make a fair comparison: the principal interest, property taxes, property insurance, homeowners association fees and maintenance."
The maintenance, in particular, can't be underestimated, he says. As DeGaris found out, if your furnace goes out or a pipe leaks, you have to fix it yourself or hire a professional. And there are other ancillary costs as well. "As a homeowner, you may find you suddenly need lawnmowers and snow shovels and new furniture," Throupe says. "It all adds up."

Can you handle the stress? "Most people weigh the financial aspects of buying versus renting, as they should, since it's the biggest financial decision most people will make. But one big factor to consider when buying a home is stress," says Tim Lucas, editor-in-chief of mymortgageinsider.com, an informational website.
Lucas says the Holmes and Rahe Stress Scale, a landmark stress study conducted in 1970, ranks many events that go along with buying a home in the top 43 most stressful circumstances in life. Four events are specifically home-related: change in financial state (No. 16), large mortgage or loan (No. 20), change in living conditions (No. 28) and change in residence (No. 32).
"If someone has recently made other life changes such as marriage, which is No. 7, switching careers (No. 18) or having a child (No. 14), it might be wise to postpone buying a home," Lucas says. "Stress overload can lead to missed payments, which can result in destroyed credit or even losing the home. It's better to rent if your life is in flux, and then buy when your stress levels are lower."

How old are you? If you're in your 20s or even your early 30s, there are some excellent arguments for not buying a house. Not that you aren't responsible enough to be a homeowner, but you're young, and who knows where life will take you? If you have a house, however, you may find that life can't take you to all that many interesting places.
For instance, a recent study from Dartmouth College in New Hampshire and the University of Warwick in the United Kingdom found that when countries start seeing a climb in homeownership, unemployment rates start trending upward within five years. Why? It may have something to do with homeowners not wanting to move somewhere else to find a job.
"The decision to own versus rent is very much a lifestyle decision as it is an economic decision. In most cases, it is driven by household formation – people getting married, starting families and being able to afford to do so," says Hollis Greenlaw, CEO of United Development Funding, a publicly registered, non-traded real estate investment trust in Grapevine, Texas. "Less than 40 percent of people under 35 years of age own homes, over 60 percent of people over 35 years of age own homes, and over 80 percent of people over 65 years of age own homes."
Indeed, DeGaris is 49, and while he says that "professionally, renting has served me well because I had the mobility to change jobs, which really helped advance my career," he is glad he finally bought his first house.
"There's a certain feeling of groundedness that comes with owning," DeGaris says. "That might not be rational, but it's palpable. The gutters need work but the roof still doesn't leak, so at this point, I'm still glad I made the move."
So what's the answer to whether it's smarter to rent or buy? It probably won't be a surprise to most people, especially those with several decades behind them. But as a general rule, the older you are, the more likely that it's smarter for you to buy a house. The younger you are, the better off you are being a renter.

90 Ways to Sell Your Home Faster and for More Money!

The following pages will guide you step by step through the process of preparing your home for sale to achieve the highest possible sale price in the least amount of time.

Repairs

1. The rule of thumb is, if something needs repair, fix it! There are probably many things in your home that you have simply become used to over time . . . things that you have been promising yourself that you will attend to. 


Well, now is the time. The buyer will mentally add up the cost of repairing all those minor flaws and end up with an amount that is generally much higher than what it would cost you to do the repairs.

You might be saying to yourself, “These repairs aren’t any big deal.” But the buyer is thinking, “If the owners didn’t care for these little items, then what about the roof and the furnace?” Needed small repairs and perceived owner neglect will either lower the purchase price or lengthen the time required to sell.

2. Check all walls for peeling paint and loose wall paper.

3. Large repairs: In today’s climate of open disclosure and vigilant professional home inspections, the rule is “Treat a buyer as you would yourself.” Repair any problems with major systems or offer an allowance for the buyer to make repairs after closing. Always disclose anything that you know about the property. Having been a consumer yourself, you know that buyers will more readily make a purchase decision with someone whom they can trust.

Cleaning

4. Every area of the home must sparkle and shine! Each hour spent will be well worth it. Would you rather buy a clean car, or a dirty one? Would you hurry to buy a pair of shoes with mud on them?

5. Clean all windows, inside and out. This helps make the house sparkle.

6. Clean all wall-to-wall carpeting and area rugs. Clean and polish linoleum, tile and

wooden floors.

7. Clean and polish all woodwork if necessary. Pay particular attention to the kitchen and bath cabinets.

8. Clean and polish all light fixtures.

Neutralizing

9. Be cautious about selecting colors when painting or replacing carpeting. Your objective here is to make your home appeal to the largest possible buying segment. Ask yourself, “How many of the available buyers would be able to move into your house with their furniture and not have to replace the carpeting?” Position your home on the market to be as livable to as many people as possible, and allow the buyer to mentally picture the home as theirs.

10. Forget your personal taste . . . the “market” is always demand driven! The average buyer will have a hard time looking beyond blue carpeting and bold wallpaper. Consider replacing unusual or bold colors with neutral tones. Two coats of white paint may be the best investment you ever made.

Space Management

This involves creating the illusion of more space.

11. Arrange furniture to give the rooms as spacious a feeling as possible. Consider removing furniture from rooms that are crowded. If necessary, store large items.

12. Pack up collectibles . . . both to protect them, and to give the room a more spacious feel. Leave just enough accessories to give the home a personal touch. Dispose of unneeded items.

13. Remove all clutter and make it a habit to pick up clothing, shoes, and personal possessions each day for possible showings.

14. Empty closets of off-season clothing and pack for the move. Organize them to demonstrate the most efficient use of space. Leave as few items on the floor or shelves as possible.

15. Use light to create a sense of space. All drapes should be open. Turn on all of the lights throughout the home before a showing, and be sure to replace any burned out light bulbs.

Atmosphere

When placing yourself in the potential buyer’s shoes, you will want to consider the overall atmosphere of your home. Keep in mind your sense of smell as you go through the check list. Create the atmosphere of your home as a shelter, a place that is safe and warm, and in good condition.

16. A clean smelling house creates a positive image in the buyer’s mind. Be aware of any odors from cooking, cigarettes, pets, etc., that may have adverse effects on potential buyers. Remember that some people are much more sensitive to odors than others. Smokers rarely notice the odor of tobacco that fills their homes, and pet owners may be oblivious to objectionable doggy odor.

17. You can use products like carpet deodorizers, air fresheners, and room deodorizers; but the best strategy is to remove the source of the smell rather than cover it up.

18. Unfortunately, often the only way to remove the smell of pet urine from flooring is to rip up the carpeting and padding and replace them. If this is preventing the sale of your home, don’t hesitate to make this investment.

19. If smoking and cooking odors have permeated your home, have your carpets and furniture cleaned, and air out or dry-clean your drapes.

20. Mildew odors are another no-no. Don’t allow wet towels to accumulate in hampers or dirty laundry to pile up in closets.

21. Once offensive odors are removed, consider adding delightful ones. Recent studies have shown that humans have strong, positive responses to certain smells. Cinnamon, fresh flowers, breads baking in the oven are all excellent ways to enhance your property for sale.

Staging

This part of preparing your home for sale is the most fun and involves the use of color, lighting, and accessories to emphasize the best features of your home.

22. Study magazine ads or furniture showrooms to see how small details can make rooms more attractive and appealing. The effect of a vase of flowers, an open book on the coffee table, a basket of birch logs by the fireplace, etc., can make the difference in a room.

23. The use of a brightly colored pillow in a wing chair or a throw blanket on a couch can add dimension to a sterile room.

24. Soften potentially offending views, but always let light into your rooms. Replace heavy curtains with sheer white panels. Never apologize for things you cannot change. The buyer will either decide to accept or reject the property regardless of the words you say. Just present the home in the best way possible with complete honesty.

25. Go through your photo albums and select pictures of your house and yard during all seasons. If hung at eye level in a well-lighted area, the pictures will speak for themselves and give you yet another selling edge.

26. Take advantage of natural light as much as possible by cleaning windows, opening shades and drapes, etc. Add lamps and lighting where necessary. Be sure that all fixtures are clean and have functioning bulbs.

The Exterior: Check your home for any needed maintenance just as a buyer would. Repaint or touch up as necessary. You can’t make a better investment when you are selling your house! Don’t let the outside turn buyers off before the inside turns them on.

27. Color has the power to attract. A tub of geraniums, a pot of petunias, or a basket of impatiens on the front steps is a welcoming touch.

28. If you are selling during the winter months, consider using a wreath of dried flowers on the front door.

29. If you have a porch or deck, set the stage with pots of flowers and attractively arranged furniture.

30. Check to see that all doors and windows are in good working order. Give special attention to your home’s exterior doors and front entry. Clean and paint doors if necessary. Remember, first impressions are likely to color the remainder of the house tour.

31. Wash all windows and replace any broken or cracked window panes.

32. Screens should be free of any tears or holes.

33. Inspect all locks to ensure that they are functioning properly

34. Check for loose or missing shingles.

35. Invest in a new doormat that says “Welcome.”

The Yard

36. Make sure the yard is neatly mowed, raked and edged.

37. Prune and shape shrubbery and trees to compliment your house.

38. Consider adding seasonal flowers along the walks or in the planting areas. Plop the plants into a well-placed wheelbarrow, an old-fashioned washtub, or what have you. Such standbys as nasturtiums, petunias, impatiens, and verbena are easy to maintain if you only remember to water them regularly. Try a row of sweet smelling alyssum to line a short sidewalk or pop in some perky dwarf marigolds to form a cheerful oasis of color in your yard.

39. It is important to devote at least one area of your yard to outdoor living. Buyers will still recognize a scene set with picnic table and chairs and respond positively to it. Cover your picnic table with a fringed, red-and-white checked cloth, set out some plastic plates and glasses, bring out the barbecuing equipment, and buyers will almost smell the hot dogs cooking!

The Driveway

40. The driveway is no place for children’s toys. Not only are such things dangerous, but the clutter is unsightly.

41. The surface of your driveway should be beyond reproach; after all, it’s one of the first things a buyer will see when he drives up. Sweep and wash the driveway and walks to remove debris, dirt and stains. Repair and patch any cracks, edge the sides and pull up any weeds.

Room-by-Room Analysis

The Front Entry: Whether a gracious proportioned center-hall or a small space just large enough for a coat rack and a tiny table, this part of your home deserves your particular attention.

42. Study your entry hall and ask yourself what kind of impression it makes of your home. Dried flowers or a small plant can make a striking focal point on a hall table any time of the year.

43. Virtually any entry hall will benefit from a well-placed mirror to enlarge the area.

44. Your entry hall’s flooring will be observed carefully by the prospective buyer. Make sure the surface is spotless and add a small rug to protect the area during showings.

45. The entry hall closet is the first one inspected. Make it appear roomy. Add a few extra hangers. Hang a bag of cedar chips or a pomander ball to give a pleasant, fresh scent. Remove all off-season clothing.

Living Areas: Think of these areas as if they were furniture showrooms. Your job is to make each room generate a positive response. Add touches that make a room look truly inviting.

46. Sweep and clean the fireplace. Place a few logs on the grate to create an attractive appearance. You are welcome to have a fire going for showings during the winter months. . . it creates a great atmosphere.

47. Place something colorful on the mantel, but don’t make it look like

48. Improve the traffic flow by removing excess furniture. Have easy traffic flow patterns. Be sure that all doors open fully and easily.

49. Draw attention to exposed beams or a cathedral ceiling with special lighting. Be sure to remove any cobwebs and dust.

50. Remove oversized television sets if they dominate the room. If necessary, substitute with a smaller one until you move.

The Dining Room: Avoid going overboard. To be effective, any stage setting that you create should reflect the character of your entire home appropriately.

51. Set the scene by setting the table with an attractive arrangement. Add fresh or silk flowers as a centerpiece.

52. Visually enlarge a small dining area. If your dining table has extra leaves, take one or two out. Consider placing your dining table against the wall. Remove any extra “company” chairs. Consider putting oversized pieces in storage until your house is sold.

The Kitchen: Pay particular attention to your kitchen. This room continues to be the “heart of the home.” A pleasant, working kitchen is near the top of most buyers’ list of priorities and is a room that buyers always scrutinize closely.

53. Avoid clutter! Clean counters of small appliances and store whenever possible to maximize the appearance of work space.

54. Check the counter top around your sink, and remove any detergent or cleanser, etc., that may be cluttering the area.

55. Sinks, cabinets, and counter tops should be clean and fresh.

56. All appliances should be absolutely clean, bright, sparkling and shiny!

57. Clean off the top of the refrigerator! If you must use that space for storage, use baskets and bowls to camouflage the items kept there.

58. Set the scene with an open cookbook, a basket filled with fruit, a basket of silk flowers, or a ceramic mixing bowl and wire whisk.

59. Create the aromas associated with happy homes! Bake some cookies from premixed, refrigerated cookie dough, start baking a loaf of refrigerated bread dough, or pop a frozen apple pie in the oven.

60. In the heat of summer, place a bowl of lemons or limes on the counter to provide a fresh and pleasant aroma.

61. Clean and organize all storage space. lf your cabinets, drawers, and closets are crowded and overflowing, buyers assume that your storage space is inadequate. Give away items you don’t use, storing seldom-used items elsewhere, and reorganize the shelves. Neat, organized shelves and drawers look larger and more adequate for prospective buyer’s needs.

62. Large, cheerful kitchen windows are an advantage and should be highlighted as a special feature of your home. Take a critical look at the window treatment . . . is it clean, sharp and up-to-date? Do the curtains need washing or the blinds need cleaning? Would the window area look better without any window treatment?

63. If you have a counter top eating area, set two attractive place settings with coordinating napkins and placemats, and place cushions on the stools.

64. Set the table for an informal meal with bright placemats and a generous bowl of fruit as a centerpiece.

Laundry Room: A separate laundry room is a true asset and is one of the most frequent requests that buyers make during a home search. Don’t hide this treasure behind closed doors. Spruce up the room and open the door proudly for inspection.

65. Add a fresh coat of paint or put up a cheerful wallpaper.

66. Organize all closets and storage space.

67. Remove all dirty laundry. Keep current with your laundry or store all dirty laundry in a closed container (maybe even hermetically sealed and welded shut).

68. Clean and polish the washer and dryer.

69. Consider adding an attractive, coordinated throw rug.

Stairways: Stairways should provide an attractive transition from one level of your home to another.

70. Make certain the stairs are safe! Stair lighting should be more than adequate, stairs must be clutter free, stair railings tight and secure, and runners or carpeting tacked securely. Remove any items from the surface of the stairs and store elsewhere. Check the condition of the walls, and paint or re-wallpaper if necessary.

71. If the stairs are a focal point of the main living areas, carefully choose accents to improve the visual appeal. If you have a wide, gracious staircase, emphasize this feature by hanging a few pictures along the wall. Draw attention to a handsome lighting fixture by polishing the brass and dusting each small light bulb or crystal prism.

Bedrooms: Imagine for a moment that you’re in the “bed-and-breakfast” business. How would you change your home’s bedrooms to appeal to a paying lodger? Naturally, you’d make up the beds with your prettiest sheets and comforters. Maybe you’d add a vase of flowers on the dressing table or a cozy armchair in the corner. Every bedroom in your home should invite prospective buyers to settle right in.

72. Large master bedrooms are particularly popular among today’s home buyers. Make your bedroom larger. Paint the room a light color, remove one of the bureaus if the room is crowded, and minimize clutter to maximize spaciousness. Aim for a restful, subdued look.

73. A private bathroom off the master bedroom is a real sales plus. Decorate to coordinate with the color scheme of your bedroom, creating the “suite” effect.

74. Virtually all buyers are looking for a house with plenty of closet space. Try to make what you have appear generous and well planned. Remove and store all out of season clothing. Remove any items from the floor area. This will make a closet seem more spacious. Arrange all shelves to maximize the use of space.

75. Make sure all articles in the closet are fresh and clean smelling. When prospective buyers open your closet door, they should be greeted with a whiff of fresh smelling air.

76. Make sure all closet lights have adequate wattage and are operating. Add battery operated lights to those closets that lack them. Lighted closets look bigger, are more attractive, and allow buyers to inspect the interiors easily.

77. Take the time to explain the importance of marketing to your children. Encourage them to participate in preparing your home for showing, particularly the principle of appealing to the widest possible market segment. Ask your children’s cooperation in making their beds and picking up their rooms prior to showings. Consider promising a special reward if they willingly participate in your house selling goals.

78. Have them pack up any items that are not currently in use and dispose of unused possessions.

79. Remove any crowded, unusual, or personal wall hangings such as posters and store them until your home is sold.

Bathrooms: Wise sellers take special pains with preparing their bathrooms for scrutiny by strangers. The bathroom is a room after all, and a very personal one. Prospects will inspect yours carefully, so be sure it is immaculate. Cleanliness is the key! Make sure that all surfaces are spotless.

80. Replace worn or dirty shower curtains, clean and repair caulking, and remove non-skid bath decals that are in poor condition.

81. Clear off countertops and store all personal care products out of sight.

82. Repair any faucets that leak or do not function properly. Clean off mineral deposits with vinegar or commercial products.

83. Clean and organize all cabinets and drawers. Don’t forget the medicine cabinet: dispose of old prescriptions, and polish the shelves. The same goes for the storage cabinet under the sink.

84. Remember to appeal to a wide range of buyers. Play down dominant colors with contrasting neutral colored towels and accessories. If your bathroom is mostly white or neutral, add a few cheerful accents of color: use towels in the popular new shades. Don’t hesitate to buy a few new towels and a rug . . . you’ll be taking them with you to your new home.

85. Scrub and wax an old floor. Cover the largest area you can with a freshly washed scatter rug.

86. Decorate and personalize to create a pleasing, individual look. Consider bringing out your best towels and perfumed guest soaps. Add a plant for color and freshness.

87. A gentle hint of fragrance in the air is fine, but keep it subtle.

Garage

88. Sweep and wash the floor to remove dirt and stains. Organize tools, garden equipment, bicycles, etc. A clean, organized garage appears larger.

89. If the area is dark, add more light. If it is small and accommodates only one car, remove your car before buyers visit. An empty garage always looks larger. If you have a two car garage with very little extra room, remove one of your cars so that buyers can make their inspection in comfort.

90. Get rid of anything that you don’t plan to move to your new home. Place remaining stored material neatly in boxes, and position away from walls.

Happy Rosh Hashanah!

Why For-Sale-by-Owner Sales Fail

Homeowners obviously know their homes better than anyone, but that doesn’t mean they’re the best salespersons for their properties.

Some sellers are tempted to try a For Sale by Owner (FSBO) transaction because their local community is in the midst of a sellers’ market and they think they can sell easily without help. Others try the FSBO route because they want to maximize their profits and avoid paying a commission to a Realtor.

However, statistics show that selling your home with the assistance of a professional real estate agent will garner you a higher profit, enough to cover the commission as well as put more money in your pocket. According to the National Association of Realtor’s 2013 Profile of Home Buyers and Sellers, the average FSBO sales price was $174,900, while the average price for a home represented by an agent was $215,000, a difference of $40,100.

Why to Sell With a Realtor

Choosing to sell with a professional rather than on your own makes sense for a variety of reasons:

◾A Realtor has access to market data about recent sales and other homes on the market that can be used to price your home appropriately. Studies show that homes priced right when they’re first listed sell more quickly and for a higher price than those that linger on the market.

◾A Realtor can show your home when you aren’t available, can respond to inquiries from potential buyers and their agents, and can get valuable feedback from visitors – all things that save you time.

◾A Realtor can look at your home objectively and suggest ways to improve its appearance – by staging and minor repairs - so it appeals to more buyers.

◾Buyers typically prefer to look at a home without the seller present so they can feel more comfortable exploring the rooms and visualizing themselves in the property. At an FSBO sale, the seller must be present.

◾A Realtor can screen visitors to your home, which provides a measure of safety that FSBO sellers don’t have. In addition, by checking to see if the buyers are legitimate and can afford to purchase your home, a Realtor can help you avoid wasting time showing your home to unrealistic buyers.

◾Realtors have professional marketing expertise, contacts with other Realtors who work with buyers, and the support of a brokerage that can market your home more widely than you can as an individual.

◾A Realtor can help you negotiate a contract that not only garners you an appropriate price for your home, but that meets your needs for a settlement date and perhaps includes a period when you rent back your home from your buyer. In addition, a Realtor can make sure your contract is in compliance with all local regulations.

FSBO Dangers

Most buyers today work with a buyers’ agent to represent their interests. If you choose to sell your home on your own, you’ll be negotiating with a professional and relying on your own skill to finalize a contract. Not only could you end up selling your home for less money, you could leave yourself open to potential legal problems unless you have the contract vetted by an experienced real estate attorney.

FSBO transactions can be successful, of course, but 90 percent of homeowners prefer to work with a professional rather than risk an unsatisfactory home selling experience.

 

The 5 Most Popular LA Neighborhoods

From celebrity sightings to basking on beaches in November, Los Angeles living provides year-round outdoor fun. However, Los Angeles residents enjoy more than just warm weather – their city is home to some of the most upscale neighborhoods in the country.

While it may sound like a great idea, moving to LA can be an intimidating, expensive transition for non-natives. The LA metro area encompasses multiple districts, each with individual benefits and drawbacks. Interested in becoming a SoCal transplant? Consider these five top neighborhoods.

 

Beverly Hills

It’s no surprise Beverly Hills real estate is consistently among the best in the United States. The median home value is a steep $2.58 million, which stretches far beyond most house hunters’ budgets. Correspondingly, the median household income is $70,945, which is a far cry from the $44,512 national median. Aside from the rich and famous, most residents here fall into one of three categories: urban dwellers from foreign countries, educated professionals with high incomes and college graduates with high expenses. The cost of living in Beverly Hills is extremely high, making it an impractical choice for many – except those who are heir to a corporate fortune or relatives of entertainment industry royalty.

Highland Park

Often referred to as the West coast’s Brooklyn, Highland Park is home to a diverse mix of urban families and wealthy singles. Highland Park dwellers make about $34,791 per year. Highland Park homes have consistent increasing values, rendering it a smart neighborhood for home purchases. The median home value in Highland Park is $518,900, which is a 19.2 percent increase from 2013. Highland Park features upscale shopping and dining, as well as access to the Gold Line for a no-hassle commute to downtown.

 

 

Los Feliz

A bit more on the expensive side than some other LA districts, Los Feliz’s median home value is $1.09 million. Los Feliz home values have increased 8.8 percent over the last year, and Zillow projects a 4.1 percent increase by March of 2015. Compared to Los Angeles homes for sale, which have a median list price of $540,000, Los Feliz homes for sale are listed for about $1.33 million. The majority of residents are in their 30s without children. In fact, 82.9 percent of the homeowners in the region do not have children, so consider other neighborhoods when searching for family-oriented atmospheres. The median household income in Los Feliz surpasses the national median at $46,113. Most residents here enjoy post-graduate educations, mid-management professions and higher incomes.

 

Silver Lake

Silver Lake is most well-known for its eclectic culture and unique residents, thanks to Forbes’ “Best Hipster Neighborhood” designation two years ago. In addition to an abundance of coffee shops and artsy occupations, Silver Lake has some of the best food carts and locally-owned bars in the city. Silver Lake’s median home value is $800,600. The 15 percent increase in home values since last year indicates a strong, ascending housing market and great investing opportunities. The typical income in Silver Lake falls around $44,949, which is slightly higher than the national median. Most residents here are urban, young professional singles with mid-range incomes. Silver Lake’s living expenses are less than other areas, yet the neighborhood is still considered upscale.

 

West Hollywood

Also known as WeHo, this neighborhood is Beverly Hills’ more frugal and trendy younger sister. West Hollywood real estate features a median home value of $640,700, which is an 18.3 percent increase year-over-year. Most WeHo residents are big-spending young professionals and urban singles with a median income of $38,914. The majority (52.9 percent) of residents here are not married, so families might consider more kid-friendly locales. Like all city neighborhoods, there are good and bad areas, so make sure to research specific apartment buildings and sub-neighborhoods before blindly relocating.

Although these neighborhoods differ in their economic makeup, they are all fantastic options for future LA residents. The most important aspect of searching for homes in any city is ensuring that surrounding areas fit individual needs. Investigate parks, schools, nightlife and commute times to determine the best neighborhoods.

Mixed-Use Affordable Housing Headed Towards Expo/Vermont

Although Metro's Expo Line has experienced no lack of proposed office, residential, hotel and retail developments near its Westside stations, investment has noticeably lagged in-between Culver City and Downtown LA.  Well get ready South Los Angeles: Expo/Vermont Station is finally getting some much needed TOD action.  Non-profit organizations T.R.U.S.T. South LA and Abode Communities are partnering on the redevelopment of Rolland Curtis Gardens, a 48-unit affordable housing complex located one block west of Vermont Avenue.  According to an environmental report just released by the city, plans call for the demolition of Rolland Curtis' existing buildings, followed by the two-phased construction of a mixed-use development with 140 affordable residential units and 8,000 square feet of ground floor commercial space.
Residential structures would rise five stories, flanking the southern and western sides of the project site.  Apartments are centered around a grassy courtyard which would serve as both gathering space and a children's play area (see after the jump).  The project also includes multiple community rooms, on-site laundry facilities and parking for 114 vehicles and 154 bicycles.

Commercial space would consist of a one story building stretching along Exposition Boulevard, with proposed uses including a community serving health clinic, non-profit office space, and perhaps some small business retail.  Plans also call for a small amount of surface parking for bikes and cars in the rear of the retail structure.  Buildings would be clad with materials including plaster, smooth finish concrete and metal siding.

According to a document created by the developers, the Rolland Curtis redevelopment is scheduled to begin construction in December 2015, with full occupancy expected in November 2017.  T.R.U.S.T. South LA and Abode Communities shaped the project with input from the community on a variety of subjects, including potential retail tenants, urban design, and architecture.

In a sellers' market: 3 ways for buyers to win a bidding war

Barely 12 months ago, buyers could confidently peruse piles of listing sheets before making a lowball offer and getting a nice discount off the list price.
Not anymore. Last month, there were about 44% fewer homes on the market in Chicago than in February of last year, according to Midwest Real Estate Data. The city had only a 3.8-month supply of housing units, compared to an 8.9-month supply a year ago.
Surprise: it's a seller's market. And that means many homebuyers are likely to find themselves in a bidding war.
I've seen it more than a few times over the last year. You hunt and you search and you think you've found a winner. You and your agent pour over comps and market stats. You figure out what the seller paid for the home and what they owe on it. Your agent grills the listing agent to find seller hot buttons. You construct the perfect negotiation strategy, and submit your offer, ready to get the deal of a lifetime.
Then you get the call, and hear the crushing news that more buyers are hearing these days: "We have received multiple offers. Please submit your highest and best offer by tomorrow at 5 p.m."
So now what? A good listing agent won't tell you much about the other offer. It could be $20,000 less than yours or $20,000 higher. There could be one other offer or four. You're going to have to put your best foot forward. Here are three tips to help you fight for your new home and win:

#1 Remember: It's not all about money
Sometimes it is about timing. Pick a closing date advantageous to the sellers. Can you close quickly, saving the sellers money? Or can you close later, giving them time to find a new home? Find out what matters to them.
Have your agent select a brief (five days or less) attorney review and inspection period. This will minimize the amount of market time a seller could potentially lose if you were to back out of the contract as a result of something found during the inspection. It will also give the seller more time to confidently search for a new home.
Important: This requires you to have your act together. Who's your inspector? Who's your attorney? Call both of them before you put the contract in so you still have time to do your due diligence. Finally, make a large earnest money deposit - say 5 to 10 percent of price - to show the sellers you're serious. They know a buyer with some skin in the game is less likely to jerk them around and then bail on a contract.

#2 Make the seller like you
An offer with a well-written cover letter stands out, and it never hurts to try to relate to a seller. Are you newlyweds buying your first condo? Are the sellers moving out because they just had their first child and need more space?
Great. Play up the nostalgia. Have your agent tell the sellers a bit about yourself and why you like their property. When evaluating multiple offers as a listing agent, I find this is a nice touch. Agents often fire off contracts with no cover letter and little presentation. This gives the impression that their clients aren't as committed to buying the property, and I'm likely to convey that to a seller.
Then, go back to #1 and make sure your agent emphasizes those points in the cover letter. Tell them what you do for a living and how thoroughly your lender has pre-qualified you (Tip: get thoroughly pre-qualified). Sellers should get the impression that you are a buyer with no potential financing issues who is committed to buying their property.

#3 Pay what the property is worth to you
This one should go without saying, but sometimes buyers get caught up in the emotions of the process. Overpaying for a property isn't winning, and neither is stubbornly sticking to a lowball offer.
Have your agent put together a detailed comparative market analysis to determine the fair market value of the property. From there, as I always say: "add love, subtract fear." It's okay to pay a touch more if you really love the place, especially if you've been looking for awhile. But keep in mind, the property will need to appraise for this price if you're getting financing. And it's okay to bid a bit less if you feel you have other strong options.
I took a buyer to see three condos that each had been on the market for three months. That was a Thursday. My buyer left for the weekend to go skiing. When he came home, all three had offers in on them, and two of them had multiple offers. That's the residential housing market in Chicago right now.
My final word of advice: "buyer be ready." Get all your homework done before you make that offer. If you want to survive in this sellers' market, you have to be ready.

7 Ways to Make Your Home More Appealing to Buyers

When you're ready to sell your house, it pays to assess your home and make improvements before the for-sale sign goes in the yard. By doing so, you'll help buyers see the beauty of your home -- and that helps put the sold sign up faster. Especially in today's tough market for home sellers, attention to details and a willingness to go the extra mile can make all the difference.
 Here is a list of tips to make your home stand out from the rest.



Be objective
                                            

One of the hardest things for homeowners is to see their house from a buyer's perspective. If you can't be objective about how your home looks, take pictures of it. Take photos from the street, the kitchen, living room and master bedroom. These are the rooms that matter most to buyers.

 

Start at the front

                       

Give the front of your home a makeover. Hire a landscape company to freshen the grounds, trim shrubs and trees, and add mulching. Repaint the mailbox, add new house numbers and hide trashcans. These improvements help hook buyers at the curb, enticing them to view your home.

 

Add Life

 

Invest in good quality real or silk plants. Spindly plants are eyesores. Look in any d¿¿cor magazine and you'll notice how plants are placed attractively in the room. Use these as guides on what plants to buy and where to place.

 

Put Money Into Your Kitchen

 

Investing in the kitchen is one of the best returns on investment for homeowners. The kitchen is the one room that really excites buyers, so make it work for you by adding a new backsplash, fresh coat of paint on the cabinets and trendy pulls. Dated lighting, peeling laminate and crowded countertops will have buyers backing out of the house.

 

 

Set The Table

 

Model homes and homes in design magazines always feature a dining room table that's set, but few homeowners with homes for sale set the formal dining room table. Setting the table makes the room inviting and helps buyers imagine themselves in it.

 

Open The Door To Sales

 

The front door is the first place on your home a prospective buyer sees and touches when they arrive. Repainting or revarnishing the door and polishing up the hardware will create a vision of beauty and buyer anticipation because it says the house is cared for right up front.

 

Create A Focal Point In Every Room

 

Each room should have a feature that defines the space. A focal point helps visually draw buyers into the room -- and where the eyes go, the heart often follows. Using the photos you've taken earlier, plan a focal point for the main rooms of the house, including the kitchen.

 

 

Explaining Escrow: The Escrow Process in California

What are the escrow steps? The California escrow process has 10 steps: 1. Prepare Escrow Instructions. These are done on the escrow holder’s printed forms. All principals – the buyer and seller -- sign the instructions, which set forth the parties’ understanding of the transaction. An initial deposit usually accompanies the instructions. For a home purchase, the instructions must include: • Purchase price and terms; • Agreement as to mortgages; • How buyer’s title is to appear (called “vesting”); • Matters of record subject to which buyer is to acquire title; • Inspection reports to be delivered into escrow; • Proration adjustments (involves taxes and insurance); • Date of buyer’s possession of the property; • Documents to be signed by the parties, delivered into escrow, and recorded; • Disbursements to be made, costs and charges and who pays for them; and • Date of closing. 2. Order Title Search. This title search is performed on the subject property, resulting in a “Preliminary Report” from a title company. The escrow holder examines this report for items not contemplated in the instructions. For example, is there a lien (or additional loan) on the property that wasn’t reported? The seller must clear any such item or it must be brought to the attention of the buyer. 3. Request Demands and/or Beneficiary Statements. This request for information goes to any lenders of record. The document will be either: • a “Demand for Pay-off,” if the seller’s existing loan is to be paid in full through escrow; or • a “Beneficiary Statement,” if buyer is purchasing the property “subject to” or assuming a loan. 4. Accept Structural Pest Control Report and Other Reports. These reports might include plumbing or roofing reports. They all pertain to the property’s condition, and are kept in escrow. The escrow holder might also obtain any necessary approvals from the seller or buyer due to information in a report. For example, whether the home needs to be sprayed for insects. The reports are delivered at close of escrow. 5. Accept New Loan Instructions and Documents. This happens if the buyer is obtaining new financing for the home. The escrow holder also obtains the buyer’s approval/execution of the documents. The escrow agent must also satisfy all lender’s instructions before using the lender’s funds to complete the transaction. 6. Accept Fire Insurance Policies and Complete Settlement. By this step, it’s almost time to close the transaction. Here, following the buyer’s and seller’s instructions, the escrow holder: • accepts and delivers any fire insurance policy and transfers the insurance; • makes all payments on property taxes and insurance (called “prorations”); • completes the accounting (settlement) details; and • informs the principals that escrow is ready to proceed. 7. Request Closing Funds. The escrow holder cannot disburse any funds until all items, such as checks or drafts, have cleared and become available for withdrawal. 8. Audit File in Preparation for Closing. In this step, the escrow holder: • accounts for all funds and documents; and • determines that the parties have complied with all escrow instructions. 9. Order Recording. At this point, the escrow holder authorizes the title company to run the seller’s title and to record the necessary documents. This can happen provided no change has occurred in the seller’s title since the preliminary title report was issued. 10. Close Escrow. This is what you’ve been waiting for! Closing the deal. The escrow holder can “close escrow” after confirming recording, by: • preparing settlement statements for buyer and seller; • disbursing all funds; and • delivering documents to the party or parties involved.

 

10 things that could harm your home's value

1. A pool. Forget what you might have heard. An in-ground pool in most parts of the country doesn't automatically raise the value of your home. "I would stay away from pools if you can at all avoid it," says Irwin.

Having a swimming pool will automatically limit your market when it comes time to sell, he says. "It's constant upkeep, they get cracks, the equipment goes down and it's expensive to replace, and the liability is high."

Others consider it a mixed blessing. "For the people who want the pool, they're willing to pay for it," says Austin. "But there are an awful lot of people who don't want a pool."

Consider your home value and location. In a million-dollar house, not having a pool is a detraction, says Irwin. "But they won't give you much more" if you do have one.

 2. No garage or small garage. Unless you're living in a condo, retirement community or historical or in-town neighborhood, most buyers will look for at least a two-car garage. "If you don't have a garage, it's a real negative," says Austin. "If you have a one-car garage, that's a problem, too."

3. Garbled floor plan. Small rooms and bathrooms, an inconvenient floor plan or a layout that requires you to access bedrooms or bathrooms through other rooms will detract value from your home.

4. Outmoded appliances or systems.Who wants an electrical system or plumbing system incapable of handling modern conveniences? Would you buy a home if the appliances were worn or broken?
Phipps remembers walking into one house with clients who casually opened the oven door -- and it fell off.

5. Stale or overly personal decor.Sure, red is the hot wall color right now, "but for how long?" says Hummel.
"We've gone into houses where they've had purple walls or electric green," says Austin. "It's a turn-off to many people."

 6. A bad roof. Roofs are expensive to replace and a good roof is considered standard equipment in a house. If your roof has problems, expect to take a hit in the price.

 7. Bad location. Phipps remembers one neighborhood with a significant difference in value between the even- and odd-numbered houses. The reason? The odd numbered ones backed on an interstate highway, as well as some ugly utility lines.
As a result, "the even-numbered houses were worth about 10 percent more than the odd-numbered homes," he says.

8. Poor maintenance. "If you've got an old roof and outdated paint, I don't care if you've updated the kitchen, you won't even get the buyer out of the car," says Bredemeyer.
"If you know you've got to have something fixed, fix it," says Zollinger. Otherwise, people "will subtract the cost or not make an offer on the house. And if people think the house hasn't been taken care of, they will wonder what else they're not seeing."

9. Environmental hazards.Besides being a danger to human health, lead, mold or asbestos can kill home value. 

10. A laundry list of needed improvements. "It detracts if you have to do work," says Gaylord. "A house that you can move in today -- and it's livable -- is fine."
But a list of must-dos just to conduct everyday life will scare off a lot of potential home buyers. "Especially with first-time buyers," he says. "Most of them are [already] scraping just to get in."