Five Tips to Win a Multiple Offer Situation on a Home

Don’t lose your game face. Though multiple offers aren’t quite the jungle they were back in 2012, homes in popular neighborhoods continue to face stiff competition. In August 2013, 60.5% of offers written by agents across the country faced bidding wars, a drop from 63.3% in August 2012. It signals a welcome trend for buyers, but tight inventory conditions and relatively low mortgage rates mean that multiple offer situations are still a reality. 

1. Be realistic

If you’re looking for a home in a sought-after neighborhood, be aware that a winning offer will likely be at or above asking price. This knowledge will help you construct a competitive offer at the outset that is still within your comfort zone. In early 2013, many buyers waived inspection and financing contingencies in an effort to win the bid. This approach can be effective, but it can also be an uncomfortable level of risk for some buyers. Knowing what you’re willing to do in advance will make it easier to make decisions when the timing demands it.

2. Prepare your financing

Whether you’re planning to get a mortgage or are paying in cash, make sure you have financial documentation ready to send. If you’re getting a mortgage, you’ll need a pre-approval letter. Being pre-qualified doesn’t cut it, since it doesn’t formally verify your income, assets and credit. If you’re paying in cash, be ready to submit proof of funds, which can be an original bank statement, open equity line of credit, copy of a money market account balance, or certified financial statement. Pre-approval or proof of funds need to be available at a moment’s notice and are expected, not optional. In addition, offering earnest money (often 1-3% of the purchase price) is another signal to the seller that you’re serious, so think about how much you’re willing to pledge.

3. Do a pre-inspection

In the past, inspections typically happened right after a seller accepted a buyer’s offer. However, the rise of bidding wars prompted savvy buyers to schedule inspections before placing an offer, giving them more knowledge about the home and making it easier to waive inspection contingencies. Doing a pre-inspection can put you ahead of other buyers by removing complexity from your offer, and also shows a seller that you mean business.

4. Be flexible

Selling a home can be a whirlwind. Any flexibility a buyer can offer a seller has the potential to reward them. Being lenient on closing or possession dates might make an offer more palatable to a seller in the midst of one of life’s most stressful times; moving.

5. Personal touch

Though it isn’t standard practice in every market, personal notes from potential buyers can humanize a transaction and tip the scales in your favor. I’ve seen several instances where offers were accepted based on the letter, even though they weren’t the highest. This works particularly well if the sellers are attached to their home, but not always so well for estates, where family members may have competing priorities and be less emotionally attached to the home.
If you’re anticipating a multiple offer situation, be sure to discuss your strategy and the risks involved with your real estate agent. With the right attitude and approach, you can get the house you’re looking for. 

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."

12 Strategies for Hosting a Sucessful Open House

“You don't need a golden toilet. You just need a working toilet,” said Holly Sose, of City Connections Realty. 

“Any wild shenanigans are just that, shenanigans. … The market will always dictate a trade price. No amount of gorgeous models dancing in bikinis or catered sushi is going to do that for you.”


Once a seller figures out the right price, it may take some weeks to prepare a home so it looks ready for a showing. Here's how:

1. De-clutter your home
“Buyers want to envision themselves in the home, and it’s difficult to do so if your clutter is in the way,” said Shannon Aalai, of CitiHabitats.
Cleaning out closets is especially important since many city house hunters are obsessed with closet space and will surely open all doors, she said.

2. Add a fresh coat of paint, and fix anything that’s broken, especially if it’s squeaky.
"When people walk into an apartment they’re nitpicky and want to find something wrong even if they like it," Aalai said.
So, make sure everything is in working order, including light bulbs.
Vik Kukar, of Rutenberg Realty, recalled one open house where a broken dishwasher handle turned off prospective buyers.
“You’re really trying to create emotion when you walk in,” he said. “You don’t want anything to break that positive emotion.”

3. Stash your honeymoon photos and hide your doll collection.
“Take down anything I tell you is offensive or weird, and remove anything personal,” Aalai said. 
The goal is to keep the focus on the apartment. 
“Your dog is cute but we don’t need to see [it] in every photo," she said. "People are easily distracted. They look at the photos, and say, 'That’s a cute couple, that’s a cute baby.' They’re more interested in [the sellers’] lives.”
When taking a couple to look at a SoHo loft, Aalai heard the prospective buyers talking nonstop about the series of “creepy” collage boxes hanging on the wall instead of chatting about the home.
“The husband said you’ll never get rid of that energy,” she recounted.

4. Consider using a professional to stage your home.
It could cost anywhere from $4,000 to upwards of $25,000 to have your apartment staged, but there could be a big payoff, Kukar said.
“It’s often going to have a 300 percent return,” he said, especially if a home has no furniture.

5. Give your agent ample access to your house.
“Allow open houses, and let brokers show the property after work and on weekends,” Aalai said.

6. Target your outreach.
Teplitzky stressed the importance of “building momentum” by listing a home in different outlets, online and elsewhere.
Sometimes her agents will do mailings in the neighborhood to increase the number of people showing up.

7. Don’t be home for showings or open houses.
“Buyers are never honest in front of sellers, and frankly it often makes them uncomfortable,” Aalai said.

8. Be prepared for possible questions.
Make sure whoever is hosting the open house knows where to find the nearest gym and grocery stores and the closest subway and bus stops. Make sure they know what, if anything, was renovated and when, and whether walls can come down or be put up, Kukar said.

9. Get a cleaning service.
“People will notice if it’s dirty,” Aalai said, especially in bathrooms where prospective buyers often turn on faucets and use toilets.
“They move the shower curtain when they want to turn the water on, so make sure there’s no hair in the tub,” she said, also advising sellers to make sure there’s soap, and the good towels are hanging.

10. Take the dog or cat out; hide litter boxes and feeding bowls.
Not all house hunters are animal lovers.
“If a dog is there, sometimes people are worried about the dog jumping on them, and they’re freaking out,” Aalai said. “And with cats, a lot of people have allergies.”

11. Add simple, nice touches.
Aalai likes to bring flowers or set out a bowl with lemons or pears.
Teplitzky likes to offer little bottles of cold water or fruit in the heat of summer.
Sose likes to put on music.
“Music makes everything better,” she said.

12. Make sure the house doesn’t smell.
People often get accustomed to their homes' odors, said Aalai, who will often light a scented candle in the bathroom.
Many brokers will open windows before a showing to let it air out.
Kukar gently lets sellers know not to do any heavy cooking an hour or so before a showing. He remembered an open house where a family had just cooked a pot roast.
“It smelled good, but it was too much,” he said.
“Apartments are sold on emotion,” Kukar said. “The agent is the director of [a movie called] ‘Selling This Home.’ We’re trying to produce these strong feelings of joy, hope and happiness.”

6 Things You Think Add Value To Your Home - But Really Don't

Every homeowner must pay for routine home maintenance, such as replacing worn-out plumbing components or staining the deck, but some choose to make improvements with the intention of increasing the home's value. Certain projects, such as adding a well thought-out family room - or other functional space - can be a wise investment, as they do add to the value of the home. Other projects, however, allow little opportunity to recover the costs when it's time to sell. Even though the current homeowner may greatly appreciate the improvement, a buyer could be unimpressed and unwilling to factor the upgrade into the purchase price. Homeowners, therefore, need to be careful with how they choose to spend their money if they are expecting the investment to pay off. Here are six things you think add value to your home, but really don't.

1. Swimming Pools
Swimming pools are one of those things that may be nice to enjoy at your friend's or neighbor's house, but that can be a hassle to have at your own home. Many potential homebuyers view swimming pools as dangerous, expensive to maintain and a lawsuit waiting to happen. Families with young children in particular may turn down an otherwise perfect house because of the pool (and the fear of a child going in the pool unsupervised). In fact, a would-be buyer's offer may be contingent on the home seller dismantling an aboveground pool or filling in an in-ground pool.

An in-ground pool costs anywhere from $10,000 to more than $100,000, and additional yearly maintenance expenses need to be considered. That's a significant amount of money that might never be recouped if and when the house is sold.

2. Overbuilding for the Neighborhood
Homeowners may, in an attempt to increase the value of a home, make improvements to the property that unintentionally make the home fall outside of the norm for the neighborhood. While a large, expensive remodel, such as adding a second story with two bedrooms and a full bath, might make the home more appealing, it will not add significantly to the resale value if the house is in the midst of a neighborhood of small, one-story homes.

In general, homebuyers do not want to pay $250,000 for a house that sits in a neighborhood with an average sales price of $150,000; the house will seem overpriced even if it is more desirable than the surrounding properties. The buyer will instead look to spend the $250,000 in a $250,000 neighborhood. The house might be beautiful, but any money spent on overbuilding might be difficult to recover unless the other homes in the neighborhood follow suit.

3. Extensive Landscaping
Homebuyers may appreciate well-maintained or mature landscaping, but don't expect the home's value to increase because of it. A beautiful yard may encourage potential buyers to take a closer look at the property, but will probably not add to the selling price. If a buyer is unable or unwilling to put in the effort to maintain a garden, it will quickly become an eyesore, or the new homeowner might need to pay a qualified gardener to take charge. Either way, many buyers view elaborate landscaping as a burden (even though it might be attractive) and, as a result, are not likely to consider it when placing value on the home.

4. High-End Upgrades
Putting stainless steel appliances in your kitchen or imported tiles in your entryway may do little to increase the value of your home if the bathrooms are still vinyl-floored and the shag carpeting in the bedrooms is leftover from the '60s. Upgrades should be consistent to maintain a similar style and quality throughout the home. A home that has a beautifully remodeled and modern kitchen can be viewed as a work in project if the bathrooms remain functionally obsolete. The remodel, therefore, might not fetch as high a return as if the rest of the home were brought up to the same level. High-quality upgrades generally increase the value of high-end homes, but not necessarily mid-range houses where the upgrade may be inconsistent with the rest of the home.

In addition, specific high-end features such as media rooms with specialized audio, visual or gaming equipment may be appealing to a few prospective buyers, but many potential homebuyers would not consider paying more for the home simply because of this additional feature. Chances are that the room would be re-tasked to a more generic living space.

5. Wall-to-Wall Carpeting
While real estate listings may still boast "new carpeting throughout" as a selling point, potential homebuyers today may cringe at the idea of having wall-to-wall carpeting. Carpeting is expensive to purchase and install. In addition, there is growing concern over the healthfulness of carpeting due to the amount of chemicals used in its processing and the potential for allergens (a serious concern for families with children). Add to that the probability that the carpet style and color that you thought was absolutely perfect might not be what someone else had in mind.

Because of these hurdles, wall-to-wall carpet is something on which it's difficult to recoup the costs. Removing carpeting and restoring wood floors is usually a more profitable investment.

6. Invisible Improvements
Invisible improvements are those costly projects that you know make your house a better place to live in, but that nobody else would notice - or likely care about. A new plumbing system or HVAC unit (heating, venting and air conditioning) might be necessary, but don't expect it to recover these costs when it comes time to sell. Many homebuyers simply expect these systems to be in good working order and will not pay extra just because you recently installed a new heater. It may be better to think of these improvements in terms of regular maintenance, and not an investment in your home's value.

The Bottom Line
It is difficult to imagine spending thousands of dollars on a home-improvement project that will not be reflected in the home's value when it comes time to sell. There is no simple equation for determining which projects will garner the highest return, or the most bang for your buck. Some of this depends on the local market and even the age and style of the house. Homeowners frequently must choose between an improvement that they would really love to have (the in-ground swimming pool) and one that would prove to be a better investment. A bit of research, or the advice of a qualified real estate professional, can help homeowners avoid costly projects that don't really add value to a home.

       

 

Interior Design Tips

Interior decoration has never been more popular. Everyone wants the sort of home seen in glossy magazines; yet the real trick of decorating lies in making sure you have the right wallpaper, fabric and all the extra ingredients including lamps, pictures, lighting and flowers. Here I would like to take you through some of my key elements when it comes to decorating.


Where to Begin

Look at the basic shell of a room and consider all its potential. You have to train the eye, so that no matter how unpromising the existing decor is, you can look around and imagine everything stripped away, with only the skeleton remaining.

Focal Points

Each room needs a centerpiece of some description. This focal point is important because it sets the tone for the rest of the decorating scheme and ties the total look together. It is also useful because it will draw the eye away from less pleasing aspects of the room.

Finishing Touches

Not all rooms require a complete overhaul. Many of them can be given a simple lift by editing some things out, re-positioning others and introducing a few new buys. It is amazing how different a room can look with a new rug, a different set of cushion covers or a change of lampshades. Accessories and flowers also help newly decorated rooms become truly finished.

Lighting

Never underestimate the importance of light – both natural and artificial – in a room. Light is one of those life-enhancing ingredients that are always worth spending time and money on to get just right.(Image of Arthur Lamp Table and Hastings chair upholstered in the Montacute Fabric)

Using Pattern & Color

When using color don’t fall into the trap of worrying over what goes with what. In truth you can mix any color with any other; what really matters is the intensity of the colors you choose. Color fashions come and go which is why I have evolved collections over the years that are guaranteed to complement each other.

9 easy mistakes homeowners make on their taxes

Don’t rouse the IRS or pay more taxes than necessary — know the score on each home tax deduction and credit.

As you calculate your tax returns, be careful not to commit any of these nine home-related tax mistakes, which tax pros say are especially common and can cost you money or draw the IRS to your doorstep.

1. Deducting the wrong year for property taxes
You take a tax deduction for property taxes in the year you (or the holder of your escrow account) actually paid them. Some taxing authorities work a year behind — that is, you’re not billed for 2013 property taxes until 2014. But that’s irrelevant to the feds.

Enter on your federal forms whatever amount you actually paid in that tax year, no matter what the date is on your tax bill. Dave Hampton, CPA, a tax department manager at the Cincinnati accounting firm of Burke & Schindler, has seen homeowners confuse payments for different years and claim the incorrect amount.

2. Confusing escrow amount for actual taxes paid

If your lender escrows funds to pay your property taxes, don’t just deduct the amount escrowed. The regular amount you pay into your escrow account each month to cover property taxes is probably a little more or a little less than your property tax bill. Your lender will adjust the amount every year or so to realign the two.

For example, your tax bill might be $1,200, but your lender may have collected $1,100 or $1,300 in escrow over the year. Deduct only $1,200 or the amount of property taxes noted on the Form 1098 that your lender sends. If you don’t receive Form 1098, contact the agency that collects property tax to find out how much you paid.

3. Deducting points paid to refinance

Deduct points you paid your lender to secure your mortgage in full for the year you bought your home. However, when you refinance, you must deduct points over the life of your new loan.

For example, if you paid $2,000 in points to refinance into a 15-year mortgage, your tax deduction is $2,000 divided by 15 years, or $133 per year.

4. Misjudging the home office tax deduction

The deduction is complicated, often doesn’t amount to much of a deduction, has to be recaptured if you turn a profit when you sell your home, and can pique the IRS’s interest in your return.

But there’s good news. There’s a new simplified home office deduction option if you don’t want to claim actual costs. If you’re eligible, you can deduct $5 per square foot up to 300 feet of office space, or up to $1,500 per year.

5. Failing to repay the first-time homebuyer tax credit

If you used the original homebuyer tax credit in 2008, you must repay 1/15th of the credit over 15 years.

If you used the tax credit in 2009 or 2010 and then within 36 months you sold your house or stopped using it as your primary residence, you also have to pay back the credit.

The IRS has a tool you can use to help figure out what you owe.

6. Failing to track home-related expenses

If the IRS comes a-knockin’, don’t be scrambling to compile your records. File or scan and store home office and home improvement expense receipts and other home-related documents as you go.

7. Forgetting to keep track of capital gains

If you sold your main home last year, don’t forget to pay capital gains taxes on any profit. You can typically exclude $250,000 of any profits from taxes (or $500,000 if you’re married filing jointly).

So if your cost basis for your home is $100,000 (what you paid for it plus any improvements) and you sold it for $400,000, your capital gains are $300,000. If you're single, you owe taxes on $50,000 of gains.

However, there are minimum time limits for holding property to take advantage of the exclusions, and other details. Consult IRS Publication 523. And high-income earners could get hit with an additional tax.

8. Filing incorrectly for energy tax credits

If you made any eligible improvements in 2014, such as installing energy-efficient windows and doors, you may be able to take a 10% tax credit (up to $500; with some systems your cap is even lower than $500). But keep in mind, it's a lifetime credit. If you claimed the credit in any recent years, you're done.

Installing a solar electric, solar water heater, geothermal, or small wind energy system can also make you eligible to take the Residential Energy Efficient Property Credit.

To claim the deduction, you have to use the complicated Form 5695, which can mean cross-checking with half a dozen other IRS forms. Read the instructions carefully.

9. Claiming too much for the mortgage interest tax deduction

Taxpayers are allowed to deduct mortgage interest on home acquisition debt up to $1 million, plus they can also deduct up to $100,000 in home equity debt.

Three homeowner rights that are often underutilized

In the real estate realm, it's easy to feel like almost everything about the market, your mortgage and the value of your home is out of your control. But the truth is that there are many real estate rights that go unrecognized and, thus, unexercised:

1. The right to control your own utility bills. 

Many a homeowner feels slightly held hostage by their utility companies. Who else can you buy electricity, gas, or water from, they wonder briefly, before waving a mental white flag when they sign the check for their monthly payment?

In truth, there is much a homeowner can do to control both the amount and the provider of his utility services. You can go solar, whether by buying panels yourself or working with a solar power service that owns the panels and charges you a reduced, preset rate for energy over 20 years.

And there are many other investments you can make -- at many levels -- in improving your home's efficiency and, thus, reducing your utility bills. Things like installing dual-paned windows, improving your insulation, installing tankless or solar-powered water heaters, and converting every faucet to a low-flow fixture are among them.

On a less conventional side of things, installing graywater tanks that use wasted sink water for toilet flushing and landscaping, and replacing swathes of green lawn with low-water-consuming native landscaping or food gardens are some more work-intensive -- but more rewarding -- ways to put you back in control over your household's energy and water consumption (and expenses).

2. The right to fire your mortgage lender. 

Most people find their mortgages to be burdensome, to say the least. Even those who aren't among the 28 percent of homeowners with mortgages that are still underwater are almost always positioned such that their mortgage is their largest monthly expense and a looming financial obligation. Paying it off seems remote and hard to imagine; further, many homeowners will take out equity lines or refinance their mortgages over time, simply restarting the already long countdown to payoff.

But here's a shocker: Roughly one-third of American homes are owned outright by their owners, free and clear of a mortgage. Truth is, there are many ways to get your home unmortgaged, and not simply by asking your lender to forgive it.

You can exercise your right to live and own your home mortgage-free by pulling one or both of two basic levers: (1) you can cut your existing monthly spending and redirect your savings to paying down the principal balance of your home loan, (2) you can bring more income in, using that to pay your mortgage off earlier than planned, or (3) you can do both!

This might seem impossible, but if this is a right you'd like to exercise, calendar a few quiet hours to really review last month's bank statements. What you face is a decision about values and priorities: What's really important to you?

Some financial experts advise that lunches and dinners out, coffee shop stops, and cable TV are common categories of budget leaks -- these seemingly small expenses add up. But don't go extreme and try to deprive yourself of every night out or coffee chat with your friends; it's not sustainable, and you'll end up turning these moments of happiness into moments of guilt. Instead, cut back where you feel you want to and also cast an eye at larger expenses that can be eliminated.

Some homeowners have found hundreds of dollars a month they could redirect away from cable TV packages they didn't really watch and payments for cars and other big toys (motorcycles, boats, etc.) they didn't really drive.

In the same vein, it can be relatively painless to turn your hobbies or passions into small-scale side businesses, generating some early mortgage payoff funds. I personally know folks doing this through part-time bookkeeping, getting a stand at the local farmers market or even doing some cake decorating on the side. As well, an increasing number of homeowners are using their own homes to generate side income, either renting out rooms or floors on an ongoing basis, or just for a couple of nights here and there on sites like Airbnb and VRBO.

3. The right to HOA sanity. 

While the vast majority of homeowner associations (HOAs) are functional and smooth, the fact is that many have at least the occasional personality or financial drama. Rapidly rising dues, inane restrictions on minutiae like the color of your window coverings, and scary "surprise" special assessments for unbudgeted property repairs have made many a home buyer simply refuse to even look at properties that belong to HOAs.

It would be naive and inaccurate to suggest that you can 100 percent bulletproof your HOA experience from these sorts of potential potholes, but there are a number of rights you can exercise to minimize their likelihood of happening.

First, exercise the right -- really, the responsibility -- to spot red flags of impending HOA dramas before you even close escrow, by truly reading all the HOA disclosures you receive, no matter how mind-numbingly long and boring they might seem. If you see that many homeowners are behind on their dues or that the HOA's budgets don't seem to include plans for reroofing buildings, replacing windows, or making similar repairs to the common areas over time, be concerned.

And don't forget the seemingly fluffy newsletters or the seemingly boilerplate board meeting minutes: That's often where talk of neighbor disputes and proposed dues hikes and special assessments pop up first.

Once you're part of the HOA, you have even more of a duty-slash-power to participate in it, if you want to do your part to avoid problems. Attending board meetings or even becoming a member of the board is not overkill if you want to have a hand in choosing the accountants, building managers, and contractors who will have such a huge impact on your experience as a member of an HOA.

6 Things Homebuyers Should Avoid Once They are Preapproved for a Mortgage

You have done the hard part in the home-buying process and chosen a lender and a real estate agent to work with. You have also gone out and found the home of your dreams! Best of all, your team has done a great job of negotiating the best deal for you.

Now, as a buyer, all you have to do is sit back and wait for your loan to close … right? Wrong!!

Getting a home loan these days is a very interactive process. I am always amazed by how many clients I work with who come to me unaware of all the pitfalls they face during the loan process. To help avoid any surprises while waiting for final approval, I provide my clients with a short list of "do's and don'ts" to follow.

Let's start with the "do's" ...

1. Do keep the process moving by responding to your loan officers' requests for documentation as soon as possible.
2. Do make decisions as soon as is reasonably possible.
3. Do convey questions or concerns you
4. Do continue to make all of your rent or mortgage payments on time.
5. Do stay current on all other existing accounts.
6. Do continue to work your normal work schedule with no unplanned time off.
7. Do continue to use your credit as normal.
8. Do be prepared to explain any large deposits in your bank accounts.
9. Do enjoy purchasing your home but remain objective throughout the process to help make decisions that are best for you.

After you have been preapproved for your mortgage you will want to refrain from the following...

1. Do not make any major purchases (car, boat, jewelry, furniture, appliances, etc.).
2. Do not apply for any new credit (even if it says you are preapproved or "xxx days same as cash").
3. Do not pay off charges or collections (unless directed by your loan officer to do so).
4. Do not make any changes to your credit profile.
5. Do not change bank accounts.
6. Do not make unusual deposits into your bank accounts or move money around from one account to another.

Follow these simple rules and you will help to make your loan closing as smooth and hassle-free as possible! Good luck! 

Buyers pay premium for move-in-ready homes

First impressions are lasting. Home buyers and real estate agents remember what they see, not what you say your home will look like after you reduce the clutter, paint, and replace outdated floor coverings and light fixtures.

Most people don't have the ability to visualize how a home will look spruced up. If you show your home to prospective buyers or their agents before it's ready to show, you could lose out on a possible offer because they're turned off by the lack of appeal. It's often difficult to get someone back for a second look after you've made improvements.

One couple who'd been looking for a home that was big enough for their family heard that one of the largest homes in the neighborhood was coming on the market. They contacted the sellers and asked if they could look at the house before it went on the market. If they liked it, they could save the sellers the expense of preparing the house for sale.

The sellers agreed. The prospective buyers looked at the house but turned it down. They couldn't see past the dated décor.

The house went on the market months later. The interior was painted in decorator colors; old carpet was removed and the hardwood floors underneath were refinished; the overgrown yard was pruned and a new lawn was installed; and all the seller's belongings were moved out and the house was staged.

The house looked fabulous. It received multiple offers and sold for well above the asking price. Ironically, the couple who had seen the house before it was fixed up and passed on the opportunity were encouraged by a friend who attended the open house to take another look.

They did and ended up making an offer in competition. Unfortunately, another buyer made a better offer. The couple who first saw it lost out on an opportunity because they couldn't visualize the property's potential. This worked to the sellers' advantage because they netted much more on the sale than they would have if they'd sold it to the first buyers for the list price.

HOUSE HUNTING TIP: Many sellers resist the notion of fixing their house up for someone else. Although it's not a good idea to make major renovations just before selling a home, cost-effective cosmetic improvements can make your home more salable and could increase the amount you recoup when you sell.

Most sellers find the decluttering process tedious. The bonus of weeding out what you no longer want or need is that you don't have to pay to move these items. And, you're making your home easier to sell.

Some agents don't want to take time to help sellers prepare their home for a more profitable sale even though buyers pay more for a home that's in move-in condition. Ask your real estate agent how much your home might sell for in both its "as is" condition and after making cosmetic improvements. If you decide to prepare your home for an advantageous sale, use an agent who will assist you with this by prioritizing what should be done and helping you find people to complete the work.

It's not always possible for sellers to cosmetically update their homes before selling. The trade-off will be a lower sale price.

THE CLOSING: Make sure if you are going to spruce up your home for sale that you don't show it before the work is done.

4 Affordable Improvements to Make to Your Home Now

Now's a perfect time of year to create a plan for how you can tweak and hack your home to be a happier place. Here are a few inexpensive suggestions:

1. Paint like a scientist. 

Studies show that painting rooms colors that are consistent with their purpose actually makes a home's residents happier than they were before the paint job. 

Spending a weekend shifting to crisp and clean green bathrooms, soothing blue or cream bedrooms, and warm browns, golds, oranges, and reds for dining and living areas turns out to be one of the least expensive ways you can use your home to give your family an emotional boost.

2. Fix (or toss) what's broken. If your coffee machine has been sitting on the counter for four months waiting on a trip to the repair shop, you have drawers that don't close all the way, your dining table wobbles or your shower needs regrouting, you are incurring a little drain of energy, getting a little injection of frustration every single time you look at or try to use these items. Throw out or repair items that don't work -- stat. Just let them go.

Then, create a little inventory for home projects that need to happen, and get a handyman or the appropriate contractors on the horn and get bids so you can budget and plan for getting them done.

If someone in your home is a big do-it-yourselfer, negotiate an agreement that she will have X items fixed by Y date or you will call out a repairperson.

In any event, at least get the bids on the repairs; you might be surprised at how quickly and inexpensively they can get five or 10 little repairs done on a weekend, and your in-house do-it-yourselfer might decide that her time is more precious than the repair costs.

Same goes for situational setups that are simply not working for your life and your activities: If your office space or your kids' rooms are overflowing with clutter, after you purge (see No. 4, below), explore the many built-in and off-the-shelf storage solutions that are affordable and can render this space much more functional.

Generally, get aggressive about setting up each of your home's rooms to help your family optimally experience whatever purpose that room is designed for: Research how you can maximize your bedroom's restfulness, your living room's conversationality, your office's efficiency, and your dining area's coziness.

3. Trick out your trims. If you've ever done a soup-to-nuts remodel of your home's exterior and/or landscaping, you know that there's nothing like the feeling of driving up to your house at the end of the workday and simply loving the way it looks. But what if you don't have a ton of cash to drop on a complete curb appeal overhaul? I believe one of the most underestimated ways to change the way your home looks is to focus on the trims:

•Get a new door or just paint the door and get a new knocker, handle or kickplate.

•Refresh with new house numbers.

•Install exterior shutters, or paint existing shutters an entirely new color.

•Get new outside lights.

•Paint all the eaves and trims in a bold new color scheme.

You'll be amazed; painting a home's front door, eaves, shutters, and trims can make the entire home look like it's had a fresh paint job.

4. Purge. Books, papers, clothing -- these things accumulate as if through their own volition, and can create clutter and claustrophobia, the feeling that you have much less space than you truly do and the feeling of being trapped under a daunting pile of stuff you rarely, if ever, use.

If you crave to purge your stuff and simply seem to never get started make a game of it. Last year, I decided to get rid of 100 things in one month. The number 100 is uber-accessible, and if you give yourself a full month to do it, that can also help you feel confident that this is a mountain you can tackle.

Ultimately, I stopped counting at right around 250 items. The feeling of clearing and the sensory rest all that empty space in your home will create are both addictive sensations -- once you get started, I believe you'll find it easy and even exciting to get rid of things you no longer use or need.

How to Help Your Appliances Last Longer

Is it just me or does it seem that appliances don’t last as long as they’re supposed to?

Our dryer died after 11 years (two years before a typical dryer’s lifespan is up), and we repaired our refrigerator three times before it reached its 12th birthday (it’s supposed to live for 13 years).

Full disclosure: I wouldn’t give myself an A in appliance care. But in the future, I vow to keep up on regular maintenance that’ll keep my new dryer running longer than my last one.

Rob Carpenter, owner of a Mr. Handyman franchise in Maryland, shares some insider tips about how to extend the life of home appliances.

Refrigerators That Last

Refrigerators break down when doors don’t close tightly, forcing motors to work overtime to keep food cold. To test your door seal, close the door on a dollar bill: If the bill slips, you’ve got a problem that requires refrigerator maintenance.

Magnetic strips embedded in gaskets around refrigerator doors make doors close snugly, but they routinely wear out and should be replaced or re-magnetized every couple of years. If you’re handy, re-magnetizing is a DIY job — just run a powerful magnet along each side of the gasket, in the same direction, about 50 times.

If messing around with the refrigerator door is beyond your pay grade, call a professional. Pros typically charge around $242 to repair door problems.

Washing Machine Endurance

Loose change banging around your washer drum can cause dents, chipped paint, and rust, so make sure to empty pockets before washing clothes.

Also, maintain your washing machine by regularly cleaning or replacing filters that trap water sediment before it enters your machine. Filters, which look like thimbles, are located in the back where supply hoses attach to the machine. Remove hoses and either poke out debris with a tip of a flathead screwdriver, then remove and wash the filter, or replace it.

Dryers That Keep on Drying

In addition to regularly cleaning out your dryer’s lint trap and exhaust hose, inspect the exterior vent — hot air must escape your house unimpeded.

Make sure the hinged exterior vent pops open when the dryer runs. If it doesn’t, open the cover and scrape out lint with the end of a hanger or dryer vent brush ($13). If your vent is louvered, clean slats with an old toothbrush.

Dishwasher Extenders

Here are ways to keep your dishwasher stress-free and long-lasting:

• Prime your dishwasher by running the hot water in your sink before you begin the cycle. This will clean your dishes with hot water from the very start of the cycle.

• Once a week, run your dishwasher empty except for a cup of vinegar, which will keep it shining and smelling fresh.

• Clean out food traps regularly.

• Wipe clean the seals around dishwasher doors.


Toaster Thoughts

Darkly toasted bread will burn out your toaster two years earlier than lightly toasted bread. So if you can live with lightly crisp rather than almost burnt, you’ll get a few more years out of your toaster. 

Selling Your Home: Safety First