Deed vs. Title: What's the Difference? Terms Home Buyers Need to Know

Deed vs. title: 

What's the difference? Most people use the terms interchangeably, but there's a significant difference between the two— a distinction that's important to understand when you're ready to purchase a home. So let's look at what distinguishes deed from title.

Deed vs. title: The difference between these 2 real estate terms
"A deed is a legal document used to confirm or convey the ownership rights to a property," explains Anne Rizzo of Title Source Title Clearance. "It must be a physical document signed by both the buyer and the seller."

Title, however, is the legal way of saying you have ownership of the property. The title is not a document, but a concept that says you have the rights to use that property.

So when you buy a property, you will receive the deed, a document that proves you own it. That deed is an official document that says you have title to the real estate.

How to get the deed and take title of a property
To get the deed and "take title," or legally own the property, your lender will perform a title search. This ensures that the seller has the legal right to transfer ownership of the property to you, and that there are no liens against it. If everything is clear, then at closing the seller will transfer the title to you, and you become the legal possessor of the property.

The title or escrow company will then ensure the deed is recorded with the county assessor's office or courthouse, depending on where you live. You'll generally get a notification a few weeks after closing that your deed has been recorded. If you don't, check with the professional who did your closing and ensure that the paperwork has been filed. At that point, you have the deed and title to the real estate and the property is all yours.

What is title insurance?
Even with all of the due diligence a title company does before closing, there are rare instances when title problems can pop up later (e.g., missed liens and other legal issues that can be very costly to resolve). To protect against any financial loss, two types of title insurance exist: owner's title insurance and lender's title insurance.

"Unlike other types of insurance that protect the policyholder from events that may happen in the future, an owner’s title policy protects the buyer from events that have happened in the past," says Rizzo. "That may jeopardize their financial interest, such as title defects from fraud or paperwork errors, unpaid liens against the property, or claims that someone else is the real, legal property owner."

On the other hand, when you secure a mortgage, your lender or bank will require that you purchase lender's title insurance to protect the lender's investment in case any title problems arise. Lender's title insurance essentially protects the lender's interest in your property, which is typically until your mortgage is paid off.

Who Are The People In Your Neighborhood?

Home Buyer Blunders

5 Reasons the Highest Offer Won’t Always Get You the House

When it comes to buying a house, the highest offer always gets the house — right? Surprise! The answer is often “no.” Conventional wisdom might suggest that during negotiations, especially in a multiple-offer situation, the buyer who throws the most money at the seller will snag the house.

In reality, however, it doesn’t always end up that way. Sure, a hefty sum is the first thing every seller wants to see, but any good real estate agent will advise a seller that each offer is a sum of its parts.

Here are five reasons why your lower offer might just beat that higher one after all.

1. Cash is always kingIf you can pay cash, you’ll likely win out over a higher-priced offer. It may sound impossible to make such a huge purchase without any financing, but many people do it.

According to RealtyTrac, 43 percent of all home sales in 2014 were all-cash deals. That’s because with an all-cash buyer, there are no mortgages and lenders involved, escrow closes faster, and there’s no appraisal to worry about.

2. The next best thing to cash: a preapproval letter A preapproval letter is the confirmation you’ve acquired from your mortgage broker or bank that confirms you’re ready to buy in a set price range and have been preapproved for the loan.

In essence, the preapproval letter turns you into a virtual cash buyer, as mortgages can be harder to come by these days. Other buyers could still make a higher offer, but if they’re not preapproved, you may have the leg up — even at a slightly lower price.

3. Timeline flexibilityTypically, the closing period lasts 30, 45, 60, or 90 days. Customizing the length of the closing to suit the seller’s needs can often help seal the deal over a higher offer. Sellers almost always want fast closings, usually 30 days. If you have all your ducks in a row, you may be able to do this.

However, there can be extenuating circumstances. What if the house they want to buy won’t be ready for 60 days? The sellers will need more time. Find out what they need and then offer it to them.

4. The “Please let me buy your house” letterRecently, a seller had three similar offers on the table when he was selling his house. Two of the offers came with very heartfelt letters. He was actually put off by the buyer who didn’t send a letter, since the other buyers did. That small piece of paper made a huge impact — and he sold to one of the letter writers, even though theirs was a slightly lower offer than the non-letter writer’s.

Writing a letter may not get you the deal, but pay attention to trends in your market. If yours is the only offer that doesn’t include one, your house hunting days could be extended.

5. Not overloading on contingencies Contingencies are negotiating tools that give you an opportunity to walk away without consequence. The most common contingencies are the inspection, the financing, and the appraisal.

However, every contingency you add has the potential to make your offer look weaker, because each one can make it that much harder to close the deal. Make sure you really need every contingency before building them into your offer.

Here are some details on specific contingencies and how to handle them.

Contingent upon inspection: Some experts suggest skipping the inspection contingency to make your offer more attractive. Here’s my advice: never give up this one. After your inspection, give the seller your list of problems along with the opportunity to fix them, make a price adjustment, or give you a credit. If the seller doesn’t agree to your requests, you can walk. You take a huge risk if you waive this one. A much better option would be to tighten up the timeline. Offer to have the inspection completed in the first few days after opening escrow and to give a response to the inspection results within a few days.

Contingent upon financing: Again, this is a contingency you should never omit, unless you’re paying in cash. With most 30- to 45-day closings, you will have 17 to 21 days to get your mortgage approval. Having that preapproval letter will make this financing contingency less of an issue for your seller.

Contingent upon appraisal: It’s possible that the house you’ve fallen for could fail to appraise for what you have offered to pay. However, if you’ve done your homework, analyzed the comps, and are comfortable with the price you’ve offered, then you might consider waiving this one. The downside (which can be significant) is that you’ll have to make up the difference of the agreed-upon sales price. But waiving this contingency can give you a big leg up over the competition — especially in a hot market.

Marriage Equality Opening New Doors

Homeownership Has Its Benefits

How to Pick Paint Colors

Paint has remodeling power when you use it to emphasize a room’s best features or play down the flaws. 

Every home suffers a few negatives, but not every solution requires pricey structural changes. 

Paint is an often-overlooked, low-cost remodeler’s remedy for common complaints with interiors, offering the chameleon-like ability to lighten, warm, enlarge, erase, or attract attention.

“Paint is a powerful tool that can enhance the architectural character and intent of space,” says Minneapolis architect Petra Schwartze of TEA2 Architects. “As you choose your paint, think about what the experience in the room should be.”

More Schwartze advice:

• Always sample paint colors on a few walls. Don’t be shy about painting a few large swaths on walls and trim to consider the effect of natural and artificial lighting. Add samples to opposite sides of a room to judge the paint color from different angles.
• Check the space with the samples in place and watch how the paint color changes at different times of the day.
• Evaluate your reaction to the proposed colors: Does the space feel cozy or is the openness enhanced?

How to Enlarge Space with Color

Painting walls white, cream, pastels, or cool colors (tinged with blue or green) creates the illusion of more space by reflecting light. Paint trim similar to walls (or use white on trim) to ensure a seamless appearance that visually expands space.

In addition, using white or light colors on walls lifts the ceiling; darker shades can have a similar effect if you select a high-gloss paint sheen, which reflects light and enhances space.

Use a monochromatic scheme to amplify the dimensions of a room. Select furnishings in one color and paint walls and trim to match. Lack of contrast makes a room seem more spacious.

Make walls appear taller by extending wall color onto the ceiling. Create a 6- to 12-inch-wide border of wall color on the entire ceiling perimeter, or wherever walls meet the ceiling.

Vertical and horizontal stripes of alternating color can make a room grand. Although vertical stripes enhance room height by drawing the eye upward, horizontal stripes lure your gaze around the perimeter, making walls seem further away. Use similar light colors for low-contrast stripes, and your room will look even larger.

Creating Intimacy

When a space feels cavernous, draw walls inward and make it cozy with warm colors (red-tinged) because darker hues absorb light. Similarly, a dark or warm color overhead (in a flat finish) helps make rooms with high or vaulted ceilings less voluminous.

Give Peace a Chance

The right paint choice can lend tranquility to a bathroom, master suite, or other quiet, personal space. A palette of soft, understated color or muted tones help you instill a calming atmosphere. Some good choices include pale lavenders, light grays or greens, and wispy blues.

Define Your Assets

Call out notable features in a room with paint. Dress crown moldings and other trims in white to make them pop against walls with color. Make a fireplace or other feature a focal point by painting it a color that contrasts with walls.

“Using a higher sheen of paint on woodwork, such as baseboards and door or window casings,” says Schwartze, “creates a crisp edge and clear transition from the wall to the trim.”

Hide Flaws

Not everything should stand out in a space. Using a low-contrast palette is a good way to hide unappealing elements or flaws. Conduit, radiators, and other components painted the same color as the wall will seem to disappear.

Selecting low-sheen or flat paint colors also helps hide flaws. Unless walls are smooth, avoid using high-gloss paint because it reflects light and calls attention to an uneven surface.

What’s the Cost?

As a DIY job, painting a 12-foot-by-12-foot space costs about $150, including paint, primer, brushes, drop cloths, and other painting tools and supplies. A professionally painted room using high-quality, brand-name paint costs $200 to $400.

Home Matters

The Lowdown on Down Payments: Everything a Home Buyer Needs to Know

Ask most people what’s the biggest obstacle to buying a home, and hands down they’ll say it’s scraping together enough money for a down payment. But understand a key point: This is not a separate and distinct issue from landing a mortgage. 

Lenders, after all, like to see clients lay down a sizable chunk of change before they fork over a mortgage, because this shows you have skin in the game and lowers the odds that you’ll default on your loan. 

So how large a down payment do you really need?

Why a 20% down payment is best
Most financial planners recommend that home buyers make a down payment amounting to 20% of the price of the home.

Sure, that’s a lot of cash, which may explain why one survey by NerdWallet of 2,000 Americans found that we spend an average of three years shoring up our finances before buying a home. But there’s good reason to start pinching pennies early: A 20% down payment enables you to avoid paying private mortgage insurance.

What is private mortgage insurance?
If you have good credit and can put at least 10% down, you can still qualify for a conventional loan. The catch? You’ll need to pay private mortgage insurance, a premium that protects the lender in case you default on the loan. PMI ranges from about 0.3% to 1.15% of your home loan. But with interest rates being as low as they are, buying now can be a smart move from a long-term savings perspective.

“Mortgage insurance has gained a negative connotation, but it enables many people to buy homes who wouldn’t otherwise be able to,” says Barbara Carrollo-Loeffler, director of consumer and residential lending at Provident Bank.

Another silver lining: Once you have at least 20% equity in your home, you can ask your lender to cancel your PMI. And once you have 22% equity, the lender is required to automatically cancel the coverage. (One caveat: Some lenders require homeowners to get a home appraisal before they’ll remove it.)

Of course, purchasing a home now also means that you’ll start gaining equity in the home, rather than continuing to burn money on rent. You can use realtor.com®’s Rent or Buy calculator to see how much you’ll save each month.

Don’t have 20% or even 10%? Here’s what to do
Don’t have that kind of cash lying around? You have options. Depending on your credit score and income, you could qualify for one of over 2,200 down payment assistance programs nationwide, which help out home buyers with low-interest loans, grants, and tax credits. While a certain portion is geared to low-income buyers, you don’t have to be down and out.

According to Jonathan Smoke, chief economist of realtor.com: “Most consumers do not know about these programs, and those that do assume it’s more difficult to get than it is.”

And the savings can be substantial: Home buyers who use down payment assistance programs save an average of $17,766 over the life of their loan, according to a report by RealtyTrac. But we’re talking even bigger cash in expensive housing markets such as Los Angeles, where the average down payment assistance is a handsome $40,598.

Another option is a government-backed mortgage, if you qualify. Federal Housing Administration loans let borrowers put down as little as 3.5%; if you or your spouse served in the military, you’re truly in luck: Veterans Affairs loans are available with 0% down. You’ll need to meet certain income and credit requirements—FHA loans call for a minimum credit score of 500, and VA loans require a minimum score of 620—but these loan programs could allow you to purchase a home with less than 20% down.

The downside to small down payments
While making a small down payment may seem dreamy, keep in mind that there are some drawbacks. For one, the amount of money you’re borrowing will obviously be larger, which means you’ll have to make larger monthly mortgage payments. Making matters worse, loans with down payments under 20% typically come with higher interest rates. Therefore, you’ll need to tighten your spending more than if you were making a 20% down payment, but that’s not necessarily a bad thing if it enables you to clinch the keys to a home now, is it?

To get a ballpark figure of the mortgage you can afford and how your down payment affects your finances, punch your salary and other numbers into a home affordability calculator.

Offering Over Asking Price on a Home: When to Pull Out the Cash and When to

One tried and true method for standing out among hordes of eager home buyers is to offer more money than the asking price. 

It's a tactic that makes sense: When a well-priced house in a great neighborhood goes on the market, you'll need to do something to get the seller's attention. 

Extra cash could be just the thing to make yours the winning offer.

But before offering more money than the sellers are asking for, buyers should consider several factors, says Michele Lerner, a real estate expert and author of "Homebuying: Tough Times, First Time, Any Time."

“First, you must be completely comfortable with the larger monthly mortgage payments,” Lerner says. “Before you make a higher offer, you need to find out exactly what the financial impact would be."

Additionally, she says, you need to be honest with yourself about how much you want the house.

“Sometimes buyers get caught up in the competition and don’t realize that they’re spending more than they want for a house.”

Disadvantages of offering over asking price
While offering above the listing price can help you outbid the competition, there are also some potentially negative outcomes.

“You could write this crazy high offer, and it turns out you had no competition and could have purchased the home at the original asking price,” says Chantay Bridges, a REALTOR® with Real Estate Professionals World Enterprise Marketing in Los Angeles. “And you could be paying more than what it’s really worth.”

How much over asking price should you offer?
If you decide to offer over the asking price, determining just how much over can be challenging.

“There really is no magic formula,” says Rick Snow, a broker with Exit West Realty in El Paso, TX. “It would depend on the market.”

Your real estate agent can help you come up with a competitive offer.

“They are the ones in a position to truly understand the market," says John Powell, chief development officer of Help-U-Sell Real Estate. And the concept of "sweetening the deal" really does take on a different meaning in different regions.

"In Arizona it might be 5% over; in California it may be 10% over asking,” he says.

Sometimes you need to take a big step back and try to see the bigger picture—and it isn't always just about price. One seller, for example, might want a strong buyer who can close escrow quickly above all else. Your real estate agent can help you navigate this, and help you determine the buttons to push in getting your deal accepted.

Hardball Fouls: 6 Home-Selling Negotiation Strategies That Can Backfire

When you're selling your home, you might imagine you hold all the cards. And you do—sort of. But it's easy to become overconfident in a seller's market. If you don't do a reality check, pronto, you could end up sabotaging your sale. So much for that straight flush!

Here are six common home seller negotiation tactics that can totally backfire if you don't approach them carefully.

1. Starting a bidding war

Bidding wars are the stuff of home sellers' dreams. 

And there's nothing wrong with fueling a little competition among buyers in order to get the best deal for you. But this tactic can easily backfire if you bungle it.

“If mishandled, people may assume the worst, and the best offer may walk away,” says Sep Niakan, owner/broker at Miami-based HB Roswell Realty.

Common bidding war bungles include the following:

• Not clearly explaining upfront how you intend to handle multiple offers.
• Giving an offer deadline that is too many days away. Some buyers might not want to wait for you to make a decision, especially if other homes are in contention.
• Already having a strong offer on the table, but then insisting that all potential buyers come back with their highest and best bid. There's no guarantee buyers will play ball and, if that strong offer walks, you're stuck with lower offers to choose from.

Bottom line: Proceed with caution before turning up the heat on the competition, lest you risk losing out on a dream deal.

2. Haggling over repairs

What if the buyer completes an inspection and comes back with a long list of requested repairs? If sellers get too tough here, they might send a buyer walking.

The sellers should consider how good the overall package is for them before refusing to do repairs, says Lucas Machado, president of House Heroes in Miami. "When the buyer’s offer is high, and the seller tries to negotiate away from legitimate repairs, the buyer may feel the seller is taking advantage of them."

3. Threatening to put your home back on the market

If negotiations aren't quite going your way, you might be tempted to call the buyer's bluff. Hey, if they don't want to ante up, you can always put your home back on the market and find another eager buyer to squeeze. Right?

Yes, you might find another taker quickly. But beware of this move—it might not go according to plan.

That's because there’s often a stigma associated with putting a home back on the market, and it might be harder to get buyers to take a second look, says REALTOR® Michael Hottman, associate broker at Keller Williams Richmond West in Richmond, VA.

"Exercise caution with this tactic, because real estate markets can change quickly from hot to cold, leaving you without all those buyers you were expecting," Hottman says. "And the ones who you had initially thought were legitimate prospects may have moved on to other homes in the time between your property originally going under contract and now coming back on the market."

4. Being stubborn on the closing date

You've decided you're not going to allow the new people to move in until (insert future date) because that’s when the closing date is on your new home. Or, they can’t possibly take possession this spring because your kids are still finishing school.

Guess what? Your buyers have scheduling issues of their own, says John Powell, chief development officer at Help-U-Sell Real Estate in Tucson, AZ.

“Sellers need to understand that they may have to move twice, since buyer and seller schedules seldom work out perfectly.”

5. Getting greedy over what comes with the house

Planning to take your beautiful custom light fixtures with you? Not so fast, Hottman warns. Often, he finds that sellers have expensive fixtures in place to show the home, but plan on taking them when they move. And that can cause trouble at the negotiating table.

The buyer "might have decided to buy the ceiling fan, and the house happens to come with it, or they get so upset that a fixture they fell in love with is now missing that they won't buy the home,” Hottman says.

Avoid this confusion by replacing anything that won't be staying with the house before you show it. If that's not possible, be prepared to leave the prized fixture behind, or negotiate a comparable replacement.

6. Refusing to pay closing costs

So, you're coming down the home stretch and this deal is almost done. Congratulations! But the buyer asked you to cover their closing costs.

Before you say "no way," consider it this way: Buyers sometimes roll the amount of those closing costs into their offer. For instance, let's say your home is listed for $200,000. A buyer might then submit an offer for $204,000, but ask you to cover the $4,000 in closing costs.

“Some sellers will hold firm at the $204,000 offer and refuse to pay the closing costs because they want this higher price the buyer offered,” Hottman says. “Some sellers can't see the net is nearly identical between a $200,000 offer with no closing costs and $204,000 with $4,000 in seller-paid closing costs, and they miss out.” A good deal comes down to doing the math, keeping your ego in check, and putting yourself in the buyer's shoes. After all, when you sell your house, you'll probably be buying one, too.

Remodeling Revisited

7 Credit Score Myths Even Shrewd Home Buyers Fall For

Forty percent of us think our credit score will climb if we carry a small balance (nope), and 52% don’t realize bad credit can increase the amount needed for deposits on utilities (it does!), according to a NerdWallet survey.

“There are quite a few myths and misinformation about credit scores,” says Ryan Greeley, author of the “Better Credit Blog.” 

“This stuff isn’t taught anywhere, so it’s something you have to dig into yourself.” The worst time to find out you’ve got a going-nowhere credit score is when you’re trying to buy a home.

Unless you have us to dig for you, that is. Here are seven top credit score myths, and the reality behind them.

Myth #1: Always carry a small balance on your credit card.

Reality: The credit score gods want to know two main things: that you pay your bills on time, and that you don’t constantly max out the credit you have.

And yes, one of the items they like to see you pay is your credit card bill — all of it. The only thing a running balance increases is the interest you owe. That’s why Erin Lowry, who writes the “Broke Millennial” blog, believes banks and credit card companies probably perpetuated this myth to boost their profits.

Myth #2: It's OK to pay credit cards a day late if you pay them off in full.

Reality: ”Missing a payment is the biggest way to hit your credit score,” Lowry says. “If you pay a student loan a day late, your score can go down as much as 100 points.” So much for that degree making you smarter.

To maximize your score, always pay your installment loans (like car loans and mortgages) on time and in full. You know, like you’re supposed to. But also note that actual humans work for financial companies; if you need to pay late for a legit reason, call your lender — before the due date — and have a frank conversation. They’ll often help out.

Myth #3: Closing old cards will erase any negative history.

Reality: If it was that easy, we’d all be driving Teslas. Credit-reporting companies keep information on your file for seven years, no matter what.

And actually, the longer you’ve responsibly used a particular credit card, the better effect it has on your credit score. Remember, you’re judged by how much of your credit you’re using. Closing a credit card makes that percentage change for the worse.

Myth #4: If you've never had credit, you have a perfect credit score.

Reality: There’s no reason to save your credit virginity for that special something. If you’ve never used credit, it’s anyone’s guess how well you’ll handle it once you do. Credit reporting agencies call it a “thin file,” meaning there’s not enough information on you to create a credit score. So, if you’re a newbie, get an itty-bitty card or loan, and start fattening up that file.

Myth #5: Checking your credit score frequently will hurt your score.

Reality: How else are you supposed to keep track of the darn thing? It’s true that several “hard” checks by companies can ding your score a few points. Hard checks generally happen when you are actually seeking a loan or line of credit, such as a mortgage or credit card.

If you check your own, it’s called a “soft” check, and it doesn’t hurt your score. So, for Pete’s sake, check your score and credit report at least annually. It’s super easy these days, especially with websites like creditkarma.com, or use a banking app that lets you easily monitor your score. A sudden, unexplained dip could be a sign that identity theft or mistakes are hurting your credit (and keep hard checks to one or two a year).

Myth #6: Paying off a student loan or car loan early will hurt your credit.

Reality: Ah, no. Credit report companies definitely do not punish you for paying off loans early. They might even throw you a parade. (Not really. Put away your princess wave.) While responsibly paying installment loans may be good, paying off those loans is way better.

Myth #7: Your age, sex, and other non-money issues affect your credit score.

Reality: What century is it again? Federal law protects you from credit discrimination based on non-credit issues, like race, color, national origin, or sex. Sure, credit card companies or lenders can ask, but they can’t deny you credit based on your answers. Income, expenses, debts, and credit history are what matters.

Myth #8: My credit score can hurt/help my chances of landing a job.

Reality: Actually, this one is partially true, depending on how fancy your job is. If it requires a security clearance or using a company credit card, an employer will want to know how you use credit, or if you’re in a financial mess that may make you bribe-able, Lowry says. But don’t worry, the employer will ask your permission before pulling your credit report, which is considered a soft pull and won’t hurt your score.

Moving With Kids

How To Invest In Real Estate If You Have Bad Credit

It seems like every time you turn on the television, there's a new home improvement show dedicated to flipping houses and making bank—a popular way to invest in real estate. 

Investing in real estate and turning it for a profit might be tempting. But if your credit score is below 601—the number the credit bureaus mark as the dividing line between “fair” and “bad” credit—you might have a tough time finding funding.

So, is investing in real estate out of the question for someone in that bunch? Not necessarily.

Buying an investment property vs. buying your own home

No matter what you've seen on TV, purchasing real estate as an investor is a lot more complicated than doing so as a homeowner if you are turning to a lender to help finance the deal.

"Those looking to finance the purchase of real estate as an investment—as opposed to a primary residence—can expect a higher interest rate and more stringent lending criteria from lenders before getting a mortgage," explains Bruce Elliott, president of the Orlando Regional REALTOR® Association and a broker associate with Regal R.E. Professionals in Orlando, FL.

Lenders typically require more money down and a better credit score for a real estate investment loan than for an owner-occupied home loan.

"They also look very carefully to ensure that investment home buyers are financially capable of sustaining the mortgage over an extended period of time in the event that the property doesn’t resell, and they even have formulas to calculate for shortages in expected rental income," Elliott explains.

Can you invest in real estate with bad credit?

Unless you have spare cash or a loan from a friend or relative to finance your investment, obtaining a loan will likely be difficult.

That said, there are other options to help you one day become a real estate investor, Elliott says.

• Improve your credit score. Resolve any collection-related issues uncovered by a credit check, and pay down existing balances. And be smart about other investments: Now is not the time to finance additional purchases such as a car or to open additional credit accounts of any type.
• Find a hard money lender.
No, this isn't a back alley deal-maker. Hard money lenders are private individuals or groups who will put up cash for real estate ventures, and they are often more amenable to making a deal with someone who has poor credit. Of course, there will be some drawbacks: "Generally, these lenders will require anywhere from 40% to 60% down to purchase or close outright," Elliott notes.
• Skip putting money down.
It might sound like a pipe dream, but Elliott says this is often the story behind those roadside “home for sale” signs that specify "cash only.” "The investor simply has purchased an option or received permission from a homeowner to try to sell the home," he explains. "The investor makes money either from a back-to-back closing or from payment directly from the ultimate buyer."

If you want to invest in real estate, bad credit can be a stumbling block, but it doesn’t have to derail the whole train.

Telecommuters Tell All

Avoid Real Estate Regrets

5 Small-Home Upgrades You’ll Regret Even Thinking About

The moment you walked into that adorable bungalow, you knew it was “The One.” It wrapped its cozy, snug-as-a-bug feeling around you and practically whispered, “Buy me.”

So you did!

Now you’re ready to make your dream-home Pins happen for real.

But, as a small-home owner, be cautious. Follow the wrong inspirational trend, and you could end up designing a too-teeny-to-be-comfy space.

Beware of any home project that calls for:

#1 Ceiling Lights

That’s because overhead lighting (including recessed lighting) illuminates the room — emphasizing its size. And when you don’t want to emphasize a room’s size (we’re looking at you, tiny living room), it’s better to break it up into individually lit areas that draw the eye to different spots.

So you may want to rethink that vintage mid-century light fixture you’ve been lusting after at the ReStore.

Think table and floor lamps, says Toni Sabatino, a Long Island interior designer, who reminds us to not forget about the function while transforming the form. Where will you sit to read? How much light do you need over the dining room table?

“Task lighting adds not only function,” she says, “it adds charm and visual interest.”

#2 Painting Every Room a Wildly Different Color

In large houses with large rooms, each room can be its own color universe. Yet, the same tactic will only make your smaller home look like a whole world of crazy.

The colors really should coordinate, since you usually can see into more than one room at a time in smaller homes, says Sabatino.

But that doesn’t mean you have to go with just one neutral color. (Could anything be more boring?)

Think one color palette with a few colors and stick with it, Sabatino says.

#3 Sliding-Glass Shower Doors

Glass doors on your tub have got to be better than that mold-growing shower curtain you’ve got now, right?

Plus, won’t glass (because it’s see-through) make the room feel bigger?

Not really.

While a traditional glass-door tub enclosure may seem like a good idea, it’s really more like putting up a permanent wall. It divides your already-cramped bath into two even tinier spaces. Never mind how to get all the soap scum off those yucky parts where the doors overlap. And when you blow-dry your hair? Hello, bruised elbow.

Instead, add a glass panel that goes one-third to halfway across the tub. They’re not that expensive (starting around $250), especially for the expansive feeling they’ll add to your bath without you actually having to knock down walls.

And cleaning? Super easy because a) some panels swing out a bit to make tough spots easier to reach, and b) there’s less to clean!

#4 Filled-Up Rooms

“I talked to a brilliant architect who designs tiny houses and he doesn’t look at square feet, he looks at cubic feet,” says Suzanne Felber, a designer in Dallas.

When you look at a room that way, you realize things like winged armchairs, sofas with overflowing cushions, ornate hutches, decorative what-nots (and clutter!) all have extra bulk that make a room feel overfull.

Minimalist furniture that maximizes function, not flair, and a clutter-free strategy will make the room feel spacious — and still be super comfy.

Sabatino suggests using streamlined sectional sofas and tables that can have pieces pulled out and moved around, making it easier to entertain larger groups, and then rearranged for a more intimate setting.

#5 The Stark, Dark Kitchen Look

You looooove the look of today’s modern, dark kitchens — especially their espresso-colored cabinets. So rich-looking. So statement-making. You also love Scarlett Johansson’s pixie cut, but that doesn’t mean you can pull it off.

There’s a reason designers use light-colored cabinets in small spaces. Light colors reflect light, making a room seem larger. And dark colors, well, they do the opposite.

Does that mean that you mustn’t even consider those espresso cabinets? Not necessarily.

If you incorporate them more as an accent or focal point, they can work. “If you have dark cabinetry, and [lots of] white walls it can really pop, says Felber.

But if your kitchen walls are all cabinets (lucky you, storage-wise!) with hardly any blank wall space, “you’re going to end up with a cave,” says Felber.

Preparing to Sell Your Home? The Best 5 Projects to Do Now

Planning on selling your home soon? Take an objective look around your home from a buyer’s perspective. What would stop you from making an offer? What do you need to do to put your home’s best face forward? Here are some projects to jump on now in order for your home to be in tip-top shape for a sale: Update Your Curb Appeal

“Curb appeal is important,” says Steve Modica, sales associate and property manager at HomeXpress Realty Inc. in Tampa and St. Petersburg, Fla.

• Make sure the bushes are all trimmed.
• Re-mulch or replace stone walkways and paths
• Remove any dead plants and trees, and aerate your lawn so it will be lush.
• Pressure wash the driveway, the front walk, and the exterior of your home.
• If need be, have the exterior of the house painted.
• At the very least, apply a fresh coat of paint on the front door.

#2 Get a Home Inspection

The NATIONAL ASSOCIATION OF REALTORS® says 77% of homebuyers have an inspection done before completing a home purchase. To avoid nasty surprises once you’re in the process of selling your home, have your own inspection done, and make any repairs before you list the home.

You should know that if the inspection does discover any flaws, even if you fix them, you will have to disclose them. But that’s still a much better strategy than letting the buyer find flaws, which gives them bargaining leverage.

#3 Replace Flooring and Paint Walls

Determine if your carpets need replacing or just a deep, professional cleaning. If they need to go, consider if hardwood or another flooring material might be more appealing to buyers.

You’ll also want to inspect interior rooms for dirty or scuffed walls that need a fresh coat of paint. “Paint the whole wall, don’t just do touch-up repair work, because it never looks as good,” says Modica. Also, if you have eccentric or loud wall colors, now is the perfect time to update to a more neutral palette. Stagers recommend beiges, light grays, and off-whites.

#4 Tackle the Basement, Attic, and Garage

Often overlooked, these storage meccas can become a catch-all for junk. Get down and dirty in these hot spots and organize them from top to bottom. Install shelving, pegboards for tools, and hanging brackets for bicycles and other large sporting equipment. Your goal is to pitch the junk, sell what you no longer need, and categorize the rest.

“Donate or recycle clothes and bedding you don’t use anymore in order to free up storage space in your closets, basement, and garage,” says Amy Bly, a home stager at Great Impressions Home Staging in Montville, N.J. These areas should look roomy, well-organized, and clean.

#5 Consult a Stager

Buyers need to picture themselves living in the house, and they may have trouble doing that if all your personal effects are on display. In order to accomplish that, a professional stager can create a plan for you.

Bly spends about two hours walking through a property assessing curb appeal, interior flow, closets, bookcases, media cabinets, flooring, and more.

“I give homeowners a multi-page, room-by-room form they can use to take notes on my recommendations,” says Bly. She typically recommends things like neutralizing out-of-date decor, removing old furnishings and carpeting, and updating light fixtures. She also suggests the type of shower curtains, towels, bedding, and pillows to display for an upscale look.

Getting a jump on these fall projects will give you a leg up on selling in the spring. Today’s buyers are savvier than ever before, so when you’re ready, have a friend or relative drop by for a tour and point out anything you may have overlooked.