Initiating the Mortgage Process

Inform Yourself First

First-time and experienced buyers alike may find themselves overwhelmed by the mortgage process. With so many options -- each offering unique advantages and disadvantages -- determining the early steps to take can be baffling.

Before initiating the mortgage process, you'll want to be fully educated. Whether you peruse Web sites or attend a mortgage seminar, there are many ways to find out what to expect. And as always, your REALTOR® can answer any questions you may have, as can financial planners, mortgage brokers, or lenders.

What's in a Price?

As you initiate the mortgage process, you'll want to ensure that your monthly payments fit into your budget. Are you aware that the price isn't the only factor contributing to the amount of your monthly payments? In actuality, the price is comprised of principal, interest, taxes and insurance, which combined, are commonly called PITI. To determine your average monthly payment, lenders suggest devoting no more than 28 percent of your gross income to PITI. Of course, how much home you can afford depends greatly on other factors as well: your income, credit, savings and financing, to name a few variables.

Applying for a Mortgage

Prior to applying for a loan, you'll need several items, including pre-approval information (if applicable), the ratified sales contract, earnest money and a home inspection report.

A ratified sales contract is proof that both buyer and seller have agreed on the final purchase deal. It serves as the final contract subsequent to the purchase agreement and any counteroffers. This contract specifies the amount of your downpayment, the purchase price, the type of mortgage you're seeking, and your proposed closing and occupancy dates.

When you visit your lender, you'll need to complete a Uniform Residential Loan Application. This document asks detailed questions about you, your income, your assets and liabilities, your credit history, and the property you plan to buy. Check with your lender about the additional documentation you'll be required to supply, which can include paycheck stubs, tax returns, bank account statements and other articles.

Decisions to Make

Once you've arrived at the application stage, you'll need to know what type of mortgage you want and the mortgage amount. 

Keep in mind that the type of mortgage you select directly affects the home price you can afford and the amount of your mortgage payments. Your ratified sales contract may depend on your ability to secure approval for the kind of loan you choose.

You've probably already estimated how much money you want to borrow. The best way to determine the exact amount of your mortgage is to base the figure upon the purchase price of the home and the amount of your downpayment. If you're using your pre-qualification from a lender to determine the amount of your loan, remember that pre-qualification is only a ballpark figure and not equivalent to being pre-approved.

Happy Thanksgiving

The Home Buying Process from Start to Finish

Now that you've found the perfect home, it's time to get the deal rolling. You'll need to sign a residential purchase agreement, make an offer, possibly put down a deposit, conduct inspections and close the sale. If this all sounds overwhelming to you, don't worry; your REALTOR® will guide you through each step.

Making An Offer/Residential Purchase Agreements and Buyer Representation Agreements

If you're ready to purchase the home, you must get all the details in writing. The offer begins with a written proposal spelling out your price and any stipulations regarding the purchase. If the seller has agreed to pay part of the closing costs, for example, that needs to be specified in the accepted offer. In addition, sometimes offers to purchase are contingent upon factors like the buyers' ability to obtain financing or the sellers finding housing within a certain time frame.

The residential purchase agreement contains the comprehensive terms of the deal, including sales price, deposit, closing date, disclosure requirements, inspections, and fees agreed upon by both parties. Other provisions also are included, such as the buyer's final inspection and the method by which all real estate taxes and other bills will be pro-rated between buyer and seller.

The CALIFORNIA ASSOCIATION OF REALTORS® offers its own official agreement, the C.A.R. Residential Purchase Agreement and Joint Escrow Instructions (RPA-11). This multi-functional document serves as an offer to purchase real property, a completed contract when its signed by the buyer and seller and communication of acceptance is received, a receipt for good faith earnest money deposit, and more.

Summaries of the Residential Purchase Agreement are available in Spanish, Chinese, Korean, Tagalog and Vietnamese. To purchase these summaries, please click here and select "Multi-Language" in the menu on the left side of the page. Then click on item #BC610A.

In response to requests from C.A.R. members practicing in the greater San Francisco Bay Area, C.A.R. developed a second version of its RPA-11 in late 2000. The Area Edition Residential Purchase Agreement (and Joint Escrow Instructions) (AEPA-11) addresses the contractual approach to the real estate transaction adopted in this area of the Golden State. The publications Understanding and Completing The C.A.R. Residential Purchase Agreement and Joint Escrow Instructions and the Area Edition Supplement to Understanding and Completing The C.A.R. Residential Purchase Agreement and Joint Escrow Instructions explain both forms in detail.

Another standard form produced by C.A.R. and typically used by California REALTORS®, BR-11 (Buyer Broker Representation Agreement) is an agreement between a potential buyer of real property and a real estate broker. The agreement defines the scope of the tasks and duties to be performed by the buyer and broker leading up to the completion of a real estate sale. The form also provides a written consent to a dual agency if one develops, and informs the buyer that the broker or agents for the broker may be working with other buyers looking for similar properties. The agreement does not, however, obligate a buyer to pay the broker for services rendered. Even if an agreement is signed, a broker must still look to a seller or a listing broker for compensation. This form is non-exclusive and may be revoked at any time by either the buyer or broker. In addition, the agreement places a limit on the time within which a legal action can be brought against the broker. More information about C.A.R.'s buyer-broker representation agreements is available by clicking here.

There are ways for buyers to look more appealing to a seller, thereby possibly gaining a negotiating edge. All-cash buyers and those already pre-approved for a mortgage have an advantage. In addition, sellers who are ready to move prefer buyers who don't have a present house to sell first.

An offer to purchase is often followed by a counteroffer by the seller, which can be countered again by the buyer. This is common practice as both sides attempt to negotiate an agreement that meets their individual needs.

Completing the residential purchase agreement is a complicated part of the transaction process that buyers shouldn't enter into without the assistance of a REALTOR®. REALTORS® have access to the standard forms needed and receive updates from their local, state and national associations on state and federal laws regulating agreements. REALTORS® can either answer any questions you might have or refer you to the appropriate authority.

Buyers' Up-Front Fees

In conjunction with the residential purchase agreement, buyers are usually expected to put down a deposit at the beginning of the transaction. If the buyer completes the sale, this money will be credited toward the buyer's downpayment. If the buyer doesn't complete the sale for legal or contractual reasons, the money is typically returned. However, if the buyer doesn't complete the sale for other reasons, the seller may be entitled to keep the deposit. The U.S. Department of Housing and Urban Development (HUD) advises that deposits should be "substantial enough to demonstrate good faith," usually 1 to 5 percent of the purchase price. Often, buyers may put up to 20 percent down.

Because buyers frequently pay for most inspections, it may be a good idea to investigate the costs of the inspections you plan to obtain before an offer is made.

Home Inspections vs. Appraisals

Home inspections vary greatly. Some check the home's structure, construction and mechanical systems, and appliances, which may be transferred with the property. Although different inspectors look for and test different things and may not discover everything that is wrong with a property, obtaining inspections is the best way to become informed of necessary repairs or problems with the home. Be advised that inspectors do not assess the value of your home.

According to HUD, an inspector typically checks the electrical system, plumbing and waste disposal, the water heater, insulation and ventilation, the HVAC system, water source and quality, ceilings, walls, floors, and roof.

In addition to being inspected, the home will undergo an appraisal by a trained professional. An appraisal is an opinion of the property's value used primarily to protect the lender's interest. In contrast to home inspections, appraisals are based on past sales data, the location of the home, the size of the lot and the condition of the home. For mortgages insured through the FHA, appraisers must disclose potential problems relating to the physical condition of the home; there are no similar stipulations for non-FHA mortgages.

Your REALTOR® may recommend a qualified inspector or appraiser. Also, the California Real Estate Inspection Association and the Appraisal Subcommittee of the Federal Financial Institutions Examination Council offer member directories on their Web sites.

Closing

The closing is the day you've been waiting for: when ownership of the home officially transfers from the seller to you! Prior to the closing, the escrow agent will present you with scores of legal documents to review and sign, and you'll be expected to pay your downpayment and closing costs. In addition, a number of other legal procedures must be completed before the sale can close, including approving the mortgage application, clearing the title, appraising the property and recording the deed.

The Real Estate Settlement Procedures Act (RESPA) provides specific protection to buyers before, during and after closing. If a settlement service has referred you to a REALTOR® with whom the service has a business connection, an Affiliated Business Arrangement Disclosure is required prior to closing. You're entitled to receive a preliminary copy of a HUD-1 Settlement Statement, which lists estimates of all settlement fees to be paid by buyer and seller, if you request it 24 hours before closing; the final HUD-1 Statement is a requisite part of closing. In addition, an Initial Escrow Settlement Statement is required at closing or within 45 days of closing. This details the estimated taxes, insurance premiums and other charges that must be paid from the escrow account during the first year of the loan.

Within three days after your loan application is received, your lender must deliver or mail you a "good faith estimate" of the total amount due at closing, as well as a copy of the HUD publication Settlement Costs: A HUD Guide. Closing costs typically are comprised of attorneys' or escrow fees, property taxes, interest, loan origination fees, recording fees, survey fees, first premium of mortgage insurance, title insurance, loan discount points, first payment to escrow account, paid receipt for homeowner's insurance policy and any documentation preparation fees. Fannie Mae estimates that most buyers' closing costs amount to 3 to 6 percent of the sales price.

As with the other components of the buying transaction, your REALTOR® can answer your questions and provide additional information to ensure a smooth closing.

Home Financing

Pre-Approval vs. Pre-Qualification

REALTORS® recommend that buyers get pre-approved prior to initiating the mortgage process to determine the best type of mortgage for you and avoid rushing into a mortgage decision. Pre-approval is an official agreement by the lender specifying the exact amount for which you've been approved. In order to get pre-approved, you'll meet with a loan officer who'll review your credit history and often suggest a mortgage type that fits your situation. This process requires supplying the lender with various financial documents discussed in the Financing section. By receiving pre-approval before making an offer to purchase, you'll demonstrate your serious intentions and financial ability to the seller.

Pre-approval is not to be confused with pre-qualification, however. Pre-qualification provides an informal means to find out how much you may be able to borrow. Before setting your price range for how much you can spend on a new home, you may want to pre-qualify for a mortgage. You can be pre-qualified over the phone by answering a few questions about your income, long-term debt and the amount of your downpayment. Getting pre-qualified gives you a ballpark figure of the amount you may have available to spend on a home.

Downpayments and Financial Assistance

Even first-time buyers are usually aware that they'll be required to make a downpayment in order to secure a home. But what you may not have heard is that within the past decade, downpayment assistance programs have been developed that either lower the deposit dramatically or eliminate it altogether. Before making your downpayment, you'll want to investigate these programs to see if you qualify. Several California and federal assistance programs are outlined in the Financing section.

While low downpayments might seem attractive to cash-strapped buyers, keep in mind that the larger the downpayment, the smaller the mortgage loan -- thereby allowing you to develop equity quicker. You'll also want to consider that mortgages with less than a 20-percent downpayment usually require mortgage insurance. When determining the size of your downpayment, you may want to weigh the other costs involved, including closing costs and relocating expenses.

6 Home Projects That Devalue Your Home

1.  Removing a bedroom. If you’re an empty nester, it can be tempting to convert that unused boudoir into the home gym you’ve always dreamed about. 

But the number of bedrooms in your home directly affects its value, so ask yourself: do you really need the new room? If the answer is “yes,” just make sure the changes continue to meet building codes for a bedroom (these can vary, so it’s best to check with a professional). 

That way, you can still market the space as a bedroom. Note: Even if the room meets bedroom building codes, its perceived value will drop if it’s being used for something else. So if you’re planning to sell in the near future, it may be best to leave the bed!

2.  Mediocre renovations. A quality, well-installed kitchen island is a great way to boost your home’s value. But imperfect work is easy for potential buyers to spot, and if they feel like your renovations will need to be tweaked (or redone entirely), they may lower their offer. To avoid this problem, carefully weigh the pros and cons of doing a project by yourself before you begin. If you decide to hire help, make sure you vet your contractor thoroughly!

3.  Showcasing a satellite dish. Let’s be clear: there is absolutely nothing wrong with 1,000 premium channels of HD entertainment. The more the merrier! But if a prospective buyer can see your satellite dish as soon as they turn onto your block, your curb appeal is going to take a hit. If you get a dish installed, work with the technicians to place it in an out-of-the-way spot.

4.  Sporadic home maintenance. Big renovations tend to take the spotlight when it comes to increasing your home's value, but regular maintenance can be just as important! In fact, without proactive maintenance – like cleaning lint from the dryer or changing your furnace filter – your home could lose up to 10 percent of its value. Routine maintenance not only protects the value of your property – it can also enhance curb appeal, ensure safety and prevent simple problems from turning into costly repairs. If you’ve fallen a little behind, that’s not a problem. It only takes one hour to get back on top of things.

5.  Smoking inside. This is a big issue when it comes to your home’s value. In fact, one survey revealed that some buyers believe smoking inside of a house can lower its value by as much as 29 percent! When you combine this with the fact that fires caused by still-burning cigarette butts are the leading cause of home-fire fatalities, smoking outside becomes a no-brainer.

6.  An above-ground pool. Depending on where you live, an in-ground pool can bolster your home’s value by as much as 11 percent. However, the above-ground counterpart isn’t as popular. Since they aren’t as visually appealing, buyers will tend to focus on the negatives of the pool (maintenance costs and safety hazards), and your home’s purchase price may take about a two percent hit. Note: If you and your family simply can’t live without some pool-side fun, don’t let this deter you! You can’t put a price on epic water-basketball matches or fun Marco Polo sessions.

Credit Information and the Homebuying Process

For many homebuyers, credit is a big consideration in the buying process. In applying for a mortgage, your credit may be the single factor that opens or closes the door to purchasing the home you want at a low interest rate. You may believe you have a strong credit rating but have never actually seen your credit report. Or perhaps you're concerned that past credit problems will come back to haunt you as you apply for a mortgage

Whichever boat you're in, the first step is the same: Obtain a copy of your credit report for a small fee and review it for accuracy. Credit reports are maintained by three credit reporting agencies: Experian, TransUnion and Equifax. It's a good idea to obtain your credit report from all three agencies, since each may contain different information and you don't know which agency will be supplying your report to your lender.

If there is incorrect or missing information that would improve your credit score, report it to the credit bureau. Under the Fair Credit Reporting Act, consumers have the right to review and contest information in their credit reports. Even if your credit report reads exactly like you expected and your credit is in fine shape, going into the mortgage application procedure with peace of mind is worth the nominal fee.

What is credit?

Credit is a record of a person's debts and payment history. Credit bureaus compile individual reports of consumer debt through an array of sources, including credit card companies, banks, the IRS, department stores and gasoline companies, and any other entities granting loans. A credit report is a résumé of your financial performance, with information on your payment standing for all the accounts you've held for the past seven to 10 years (seven years for accounts not paid as agreed and 10 years for accounts paid as agreed).

What is a credit score?

Credit scores, also called "beacon scores," are composites that indicate how likely you are to pay on a loan or credit card as agreed based upon your payment history, amount of debts, length of credit history and types of credit in use. The credit grantor reviewing your loan application compiles your score based on information from your credit report and other data, including your income level.

Fair, Isaac and Company (FICO) developed the mathematical formula for establishing scores. Scores range from 300 (poor) to 850 (excellent), and the rule of thumb is the higher the score, the lower the risk to lenders.

In the past, consumers have not been allowed to view their credit score or be informed of the factors that determined their scores. However, C.A.R.-sponsored SB 1607, signed by California Gov. Gray Davis on Oct. 2, 2000, granted California homebuyers access to their credit scores and pertinent information about what factors determined their scores. The legislation, which becomes effective July 1, 2001, also allows consumers to receive their credit scores when they request copies of their credit files for a nominal fee.

What role does credit play?

Lenders review credit reports to determine debts owed and if they are repaid according to the terms of the initial contract. If you have any outstanding debt, lenders will analyze your debt-to-income ratio and how that debt will factor into your ability to make your mortgage payments.

What do I do when I get my report?

Read through it carefully, paying extra attention to the section on your account payment history.

How do I establish credit?

If you have never taken out a credit card or borrowed money from a financial institution, or if your accounts are young, you can establish credit history by having your rent payments to landlords and monthly payments to utility companies added to your credit report.

How do I re-establish good credit?

If your credit report contains negative information, such as frequent late payments, repossessions, collection activity or bankruptcy, you may want to wait to apply until after you've improved your credit record. Rebuild your credit by showing strong payment history in the years following any problems. Most lenders prefer for three years to have passed since a foreclosure on a mortgage and at least two years since bankruptcy. Lenders are willing to forgive past black marks on a credit report if you establish a pattern of responsible debt repayment.

How do I correct a mistake?

Follow the directions of the credit bureau issuing your report. The bureau will contact the source of the information in question and attempt to resolve the dispute. Also, if late payment information is accurate but you have a good explanation (e.g., you were laid off from work or became very ill), you are allowed to add that information to your report.

Are You Ready To Buy?

As with any major purchase, it pays to be informed prior to making any decisions. 

As experienced buyers already know, buying a home is a complicated process, so it's important to start at the beginning and thoroughly understand each step. Whether you're buying your first home or your third, make sure you have the necessary financial resources and have explored all your options before you purchase a new home.

If you're a first-time buyer, you should weigh the pros and cons of homeownership versus renting. There are many advantages and disadvantages to consider. For example, renters have the freedom of mobility if they choose to move, but their monthly rent checks do not establish long-term equity or produce any other benefits. And while homeowners' mortgage payments accumulate equity, these payments are generally higher than rent payments and come with the responsibility to manage the care and upkeep of the property.

Both new and experienced buyers have their own sets of financial considerations when it comes to buying a home. Move-up buyers should evaluate their financial situation to ensure they're prepared to meet the higher mortgage payments involved with relocating. Likewise, first-time buyers should determine if monthly mortgage payments fit in their budgets. In addition, you'll need to be prepared to cover the downpayment and closing costs. And, you should consider whether you meet the basic criteria to qualify for a mortgage; lenders prefer that applicants offer a stable job history and a good credit record.

9 Daring Colors For Your Front Door

9 Daring Colors for Your Front Door

The American Dream

For the vast majority of us, owning a home is part of the American Dream. According to a study conducted by the NATIONAL ASSOCIATION OF REALTORS®, 87 percent of those polled cited owning a home as the number one criterion for defining "the good life." Owners and renters alike considered homeownership desirable for the following reasons: the pride of ownership, their dislike of paying rent, and the ability to change features of their homes to match their individual tastes and needs.

In addition, owning your own home provides a sense of security and well-being that's hard to beat. Home is where we raise our families, have friends over for summer barbeques, paint the baby's room pink or blue, and find refuge from the outside world.

Owning a home offers other advantages as well. For instance, as a homeowner, you have control over your environment. Not only can you change your home to meet your needs, but you also aren't subject to the terms of a lease or a landlord. As a homeowner, you can experience the emotional and financial security that comes from knowing what your housing expenses will be from year to year. Unlike rents, which can increase annually, most mortgages have fixed or capped monthly payments. So, as a homeowner, you can have a much better idea of what proportion of your paycheck goes toward your home. Think of it as the ultimate savings plan.

Bottom-Line Benefits

And it only gets better. Homeownership is the primary component in the creation of wealth for many Americans. Data from Harvard University's Joint Center of Housing Studies illustrate not only that the median net wealth of homeowners is 34 times greater than that of renters, but also that over half of that wealth is generated from home equity. As you pay down your loan amount each month, you accumulate equity, a growing ownership interest in your property. If you need funds, you can borrow against this equity in the form of a home equity loan. Further, interest on a portion of home equity is tax-deductible.

Most homes appreciate in value over time and can be a source of income for you, especially if you've lived in your house for many years. When you retire, you can sell your home if you need the funds or make use of a home equity conversion mortgage.

Finally, don't forget about the significant tax advantages of owning your home. Interest on a home mortgage and property taxes are deductible. For most of us, mortgage interest provides the largest tax deduction. Also, a home is the single most important factor that determines whether you will be able to file a return which takes advantage of the wide range of allowable itemized deductions.

Homebuying Means Getting Back To The Basics

Recently, the CALIFORNIA ASSOCIATION OF REALTORS® surveyed homebuyers to find out what they considered to be important in the purchase of their homes. The largest percentage, 27 percent, considered the mere ownership of a home as the most important reason to buy. Moving to a better neighborhood (17 percent), wanting a larger home (10 percent), and realizing the tax advantages of homeownership (8 percent) were other reasons cited for buying homes. Seven percent focused on investment value as their primary motivation for homeownership.

Over the years, your home likely will be the best investment you'll ever make. But more importantly, it will be the place that offers you and your family shelter, security and stability. That's some return on investment. 

Why Use A REALTOR® To Sell Your Home

Using A REALTOR® To Sell Your Home 

  

What is a REALTOR®?

All real estate professionals are not created equal. The NATIONAL ASSOCIATION OF REALTORS® estimates that over 2 million people hold real estate licenses in the United States, but only about 1 million of them have earned the REALTOR® distinction. Through membership in their national, state and local REALTOR® associations, REALTORS® gain numerous opportunities to enhance their educational and professional development. They also are required to adhere to a strict Code of Ethics.

Why Use a REALTOR®?

Selling a home is a complex process involving what's likely to be your most prized financial asset. Enacting a smooth transaction for your home's full value requires the expertise of a REALTOR® whose extensive training has prepared him or her to generate the best possible results on your behalf. Just like you shouldn't treat a broken leg without a doctor or handle a major legal dispute without an attorney, it's unwise to sell your home without the professional assistance of a REALTOR®.

Naturally, every seller wants to reap the highest return from the sale. It's tempting to sell the home on your own, thereby saving the REALTOR®'s fees. However, a study conducted by the NATIONAL ASSOCIATION OF REALTORS® found that 82 percent of real estate sales result from REALTORS® contacts with previous clients, referrals and other sources. Additionally, NAR concluded that most homes sell for 3 to 9.5 percent more when sold through a REALTOR®.

Selling your home with a REALTOR® yields abundant advantages, including the following:

•REALTORS® have access to Multiple Listing Services (MLS) to disburse information about your property to thousands of consumers via their REALTORS®. They also have other marketing vehicles at their disposal, such as open houses and referral networks. Through your REALTOR®'s marketing efforts, a much broader range of qualified buyers will be informed of your property's availability. As a seasoned pro at negotiation skills and tactics, your REALTOR® can maintain objectivity in assessing buyers' proposals and developing offers and counteroffers. Throughout the transaction, including appraisals, inspections and legally binding agreements, you can depend on your REALTOR®'s know-how to avoid any pitfalls. Sales transactions comprise intricate legal and regulatory requirements. REALTORS® are familiar with the regulations and can help you understand and adhere to them.

•REALTORS® work with their clients to address home improvements and tips that will enhance the home's salability.

A Year-Round Guide for Home Maintenance

Homeowners know the satisfying, deep pleasure of a house that's in good order—a house where appliances are working, the paint is not chipped, and that dust under the refrigerator is gone (at least temporarily).

A regular home maintenance program will keep your house fresh and clean, help prevent expensive repairs and ensure your house is as safe as possible, For a newbie, it can be a steep learning curve figuring out when to clean which filter, how often you're supposed to clean out a chimney and what, exactly, a sump pump is. Sticking to a year-round home maintenance schedule will break the tasks up and will keep you on track with repairs and upkeep. Since most of the big jobs have to be tackled one, two or four times a year, grouping task by season is a good way to create a maintenance routine.

With every season change or clean filters on the air conditioner or heater unit. Vacuum or dust indoor vents.

Clean and freshen the kitchen garbage disposal using ice cubes or small bits of lemon peel. Running a few small ice cubes through the disposal will knock debris from blades and a few small pieces of citrus peel will keep it smelling fresh. For maximum results, make ice cubes with pure lemon juice and run them though the machine.

Test fire extinguishers to check their pressure and inspect to make sure they're accessible and not broken or missing parts.

Wipe down the washing machine and clean the interior by running an empty load with a cup of bleach, a cup of white vinegar OR laundry detergent. Use the machine's hottest setting.

Test all ground-fault circuit interrupters.

Every spring and fall

Clean and repair roof gutters. Make sure downspouts are in good repair and aiming at least 2 feet away from your home's foundation.

Change smoke detector batteries.

Flush out the water heater. Remove sediment that has collected by opening the drain valve and letting water run until clear.

Wipe down refrigerator inside and out. Clean drawers and shelves with hot soapy water and dry thoroughly. Toss mystery freezer items and expired condiments. Sweep underneath and vacuum condenser coils.

Wash windows and screens.

Check drains and clear of debris. To clean a drain, pour ½ cup of baking soda down the drain, followed by a cup of white vinegar. Let it sit for 15 minutes, then rinse with a pot of boiling water.

Clean faucet aerators and shower heads. To remove mineral deposits from shower heads, detach and submerge them in white vinegar for a few hours.

Clean the inside of the dishwasher with hot soapy water and a scrub brush. Clear the drain bin of debris and rinse it off. Run the machine empty on the hottest setting with a cup of white vinegar on the top rack. (You can also put a pack of unsweetened lemonade mix in the soap cup or sprinkle a cup of baking soda on the over the bottom of the tub and run empty.)

Clean the grills and coils on air conditioning units and clear the surroundings of debris and overgrown plants.

Give your grill a thorough cleaning. Soak the grates in soapy water and scrub with steel wool. Check hoses, hinges, and knobs, and remove rust with a wire brush.

Fall

Take a walk around the exterior of the house and give it a thorough visual inspection. Look for leaks, termite damage, rodent nests, cracks in the foundation and rot. Seal cracks and gaps in siding and around windows. Repair siding where necessary. Touch up paint on exterior and trim.

Power-wash the exterior of the house.

Clear lint from dryer hose. Use a vacuum or long flexible brush.

Clean carpets and have floors re-polished or sealed.

Check electrical cords and make sure they're in good repair.

Check door and window locks, door knobs and handles and cabinet hardware. Tighten, replace or repair as needed.

Check indoor and outdoor air vents and make sure they are not blocked by debris.

Trim back trees and shrubs and make sure they aren't touching the house, roof or gutters.

Spring

Dust blinds and vacuum or wash curtains.

Replace storm windows with screens. Repair damaged screens.

Clean kitchen and bathroom exhaust fans.

Clean light fixtures and ceiling fans.

Inspect your chimney and fireplace, looking for obvious cracks or leaks. Check the chimney cap or spark arrester to make sure it's intact and free of nests or other blockage. Spring is a good time for a professional chimney cleaning because it's off-season. You'll need a cleaning every 2-3 years or after a burning a cord of wood.

Go through kitchen and bathroom cabinets and clear out expired foods, cosmetics and medications.

Check the roof for missing or damaged shingles and worn or exposed areas. Make repairs immediately to avoid messy and expensive damage.

Reseal wooden decking and outdoor furniture with UV-resistant sealer.

Test pressure relief valve on water heater.

Examine your bath and shower areas and re-caulk as needed.

Lubricate garage door springs

If your house has a sump pump, make sure there aren't any leaks and remove any debris. To test to see if it's functioning property, pour about five gallons of water into it and make sure it turns on.

The Value Of A Remodel

Interior Design Tips to Help Sell Your Home

While it might be a seller’s market, an interior designer’s views on how you can make your home more appealing to buyers can be invaluable. Extra touches can make a world of difference to attract the eye of an interested buyer, according to Associate Designer Anne Liu from GEORGE Interior Design. Here are her tips on how you can give your house a fresh look without breaking the bank.

Space Plan

Liu says one of the most inexpensive ways to make your house look more appealing is to simply play around with your existing furniture and décor in order to figure out the optimal space plan; this will show off your house in the best light. 

“Sometimes it is just a matter of moving a sofa to an adjacent wall or re-arranging your wall art,” said Liu. “When in doubt, just remember that continuous lines and a simplified color scheme tend to make a space flow harmoniously and feel bigger. Getting rid of any clutter and unnecessary elements and allowing a buyer to really see the space is always a good idea in our book. Less is more!”

Paint

To capitalize on one of the most cost-effective ways to make your house look more refined, Liu suggests adding a fresh coat of paint.

The designer added, “Overall, stick with a lighter, neutral color to appeal to more buyers and then designate ‘feature’ walls that you can accent with a bit more color. Whenever possible, try to get rid of popcorn ceilings and repaint because the space will look cleaner and more modern.”

Add Trim/Crown Molding and Update Baseboards

Liu commented, “Updating the baseboards could give your space a much more tailored and current look without blowing the bank. If it is suitable to the architecture, adding crown molding could further enhance your space. Opt for clean, simple, and elegant trims for a timeless look.”

Flooring

Another way to instantly update a home is to replace old carpeting. Liu shared the following tip: “Gravitate towards carpeting material in a medium-neutral tone, woven with more than one color (or a fleck of color). This guarantees a good look that will also last. Also, updating a carpeted floor with hardwood flooring could be a big draw to buyers. It consistently adds warmth and character and may help your home have wider appeal.”

Kitchen

Liu noted that kitchens are undoubtedly a big focal point in a home. So what are your best options for making your kitchen the most appealing to a buyer? Liu posited, “The most critical things to most home buyers are stainless steel appliances and ‘granite’ or other non-porous solid surfaced countertop material. I use the term granite in quotations because most buyers want the properties of granite, but this actual stone material has fallen out of favor in recent years. Quartzite is the stone surface material being requested the most by clients and we're using a lot of Caesarstone, Silestone, and other brands of quartz as they install very nicely and the colors are very consistent.

Liu added, “Painting cabinetry could really clean up your kitchen but it comes at some expense. A complete kitchen remodel might fetch you a higher price for your home but undeniably a lot of time, energy, and money will have to be spent planning and executing the overhaul. If appliances, countertops, or a complete remodel are out of the question, then simply updating the cabinet hardware and sink fixtures could give the kitchen a fresher look.”

Bathroom

The designer says a beautiful bathroom can be a big draw. She added, “Like the kitchen, a fresh coat of paint on the cabinetry and/or a new countertop and new fixtures could freshen up the feel significantly. In powder rooms or smaller bathrooms, use ‘feature’ wallpaper or a more exciting paint color since the scale is not overwhelming.”

Greening Your Home to Save Money and Energy

Making your house a cleaner, greener space will save energy and resources, create a healthier, safer home environment, and save you money. You'll be helping out in the big picture too. According to the U.S. Environmental Protection Agency, houses account for 20 percent of all energy used in the U.S., are responsible for 20 percent of U.S. greenhouse gas emissions, and use more water than other kinds of buildings.

As you start making your home greener, you can do as little or a much as you'd like, going deeper as you go along. Taking a green action can be something as easy and inexpensive as opening a window to improve indoor air quality to a more elaborate project like installing a gray water collection system for recycling household water. Here are some ideas for getting started:

Heating and cooling:

• Figure out where energy is being wasted by having a professional energy audit, using an inexpensive radiometer to do an infrared scan of your house to reveal hot/cold air leaks, or do your own inspection for drafts under doors, and leaks and cracks around windows. Pile on the insulation in walls, under floors, and in the roof and attic, using organic and/or recycled options where possible. Upgrading insulation to R-50 standard can save up to $900 a year. Replace energy-leaking single paned windows with double paned or high-tech triple-paned glass with uber-tight seals and insulating gas between the panes.

• Take advantage of passive solar energy with design and planting choices. According to the U.S. Department of Energy, passive solar energy design can reduce heating and cooling bills by 50 percent. Planting deciduous trees by south, east, and west-facing windows will let sunshine in during winter and the leaves will provide shade during summer. Keep an air conditioner unit cool by shading it with a (non-messy) plant or tree. In summer, open windows during cool nights and circulate air with box and ceiling fans. On hot days, close blinds or curtains and shut windows to keep cool air in and warming sunlight out. In warmer climates, wide roof overhangs and covered porches will keep a house cooler and painting the roof a light color will reflect sunlight instead of absorbing it. In cooler climates, pine trees can create a windbreak and building materials like concrete, brick, stone, and tile will retain the heat of sunlight and radiate it back out slowly.

• Keep heating and cooling systems regularly serviced and make sure ducts are in good repair and filters are clean. When purchasing new units, look for Energy Star-rated models to save 10-50 percent more energy. Keep thermostat above 78 degrees in summer and below 68 degrees in winter and use a programmable thermostat. Lowering your thermostat two degrees will save $23-$38 a year.

Water:

• Install low-flow toilets to use less than half the water of older models or re-jigger the float valve in an existing toilet so that less water enters the tank. Fixing a leaky toilet will save you about $100 a year. Install aerators in faucets and low-flow showerheads to cut your water consumption by 50 percent—just one low-flow showerhead can save $32.50 per person, per year.

• Outside, opt for native plants and low-water use landscaping. Water gardens with a drip hose and do watering during cool early morning hours. Consider a rain barrel system to collect rainwater for watering to save $100-$300 a year.

Improve indoor air quality:

• When a house is sealed tight for maximum energy savings, it can create a new problem—poor indoor air quality that can be 10 times worse than the air outside. One of the easiest ways to combat the problem is to simply open some windows and air out the house. Houseplants can also improve indoor quality naturally. According to NASA, the best plants for filtering indoor air include: peace lilies, spider plants, rubber plants, bamboo palms, and English ivy.

• Reduce sources of indoor air pollution by using non-toxic and renewable materials. Use flooring made from a renewable resource like bamboo, low- or no-VOC (volatile organic compounds) paint, and choose new furniture, textiles, and building materials that don't emit harmful materials like formaldehyde.

• Use natural cleaning materials, opting for plant-oil based disinfectants and detergents. Or make your own with simple recipes using common and safer household materials like vinegar, baking soda, borax, lemon juice, and washing soda.

Power down

• Replace incandescent light bulbs with halogen incandescent bulbs (25 percent energy savings), CFLs (75 percent savings), or LEDs (75-80 percent savings). Changing out just 15 bulbs could save you $50 a year, according to the Department of Energy. Use lights on dimmer settings, put lights on timers and/or install motion sensor switches that turn lights off when a room is empty. A light tube, a small, cylindrical skylight, is an option for adding natural lighting to closets or dark hallways.

• Water heaters are one of the largest energy expenses in the home, generally running $100-$200 a year. . Set the water temperature to 120 degree to save 6-10 percent a year. Insulating an older water heater with a heater blanket (look for one with an R-value of 8 or higher) will save you $5 to $20 per year. When buying a new heater, opt for tank-less or solar models.

• Installing an 8 kilowatt solar power system will give you 90-100 percent of the power you need, and with state and federal incentives can cost less than $10,000. Solar panels work best on south-facing rooftops that get all day sun exposure. If panels are out of your budget range, some power companies offer customers the option of purchasing green power created from renewable resources.

• Consider solar options for outdoor lighting, water heaters, and indoor fans.

• Plug electronics into power strips, then turn them off at night to save up to $100 a year on “phantom electricity,” the power used to keep electronics ready to power up instantly,

Whatever you choose to do, a well-planned green home will do its good work on its own, while you can sit back and enjoy the financial and energy-saving benefits.