When selling your home, the goal is to sell it quickly for the highest price while investing as little as possible in renovations. With a limited budget and a little effort, you can greatly increase your home’s appeal by focusing on what prospective buyers can see on their first visit. The experts at BuyOwner.com offer the following recommendations for preparing a house for sale and staging it for showings.

Tip #1: Refresh the exterior
First impressions count when it comes to selling a home. Most buyers won’t even leave their car if they don’t find the exterior appealing. The best ways to improve your home’s exterior include:
-Repairing and/or replacing trims, shutters, gutters, shingles, mailboxes, window screens, walkways and the driveway.
-Painting siding, trim and shutters and lamp and mailbox posts.
-Pressure washing vinyl siding, roofs, walkways and the driveway.
-Washing windows.

Tip #2: Spruce up the lawn and landscape
Home buyers associate the condition of your lawn and landscaping with the condition of your home’s interior. By improving the outside, you affect buyers’ impression of the entire property. The best ways to enhance the yard include:
-Mowing and edging the lawn.
-Seeding, fertilizing and weeding the lawn.
-Keeping up with regular lawn maintenance by frequent watering.
-Trimming and/or removing overgrown trees, shrubs and hedges.
-Weeding and mulching plant beds.
-Planting colorful seasonal flowers in existing plant beds.
-Removing trash, especially along fences and underneath hedges.
-Sweeping and weeding the street curb along your property.

Tip #3: Create an inviting entrance
The front door to your home should invite buyers to enter. The best ways to improve your entry include:
-Painting the front door in a glossy, cheerful color that complements the exterior.
-Cleaning, polishing and/or replacing the door knocker, locks and handles.
-Repairing and/or replacing the screen door, the doorbell, porch lights and house numbers.
-Placing a new welcome mat and a group of seasonal potted plants and flowers by the entry.

Tip #4: Reduce clutter and furniture
A buyer cannot envision living in your home without seeing it. A home filled with clutter or even too much furniture distracts buyers from seeing how they can utilize the space your home offers. If you have limited storage space, you may want to consider renting a temporary storage unit to place items you wish to keep. The best ways to declutter your home include:
-Holding a garage sale to prepare for your move, getting rid of unnecessary items.
-Removing clutter such as books, magazines, toys, tools, supplies and unused items from counter tops, open shelves, storage closets, the garage and basements.
-Storing out-of-season clothing and shoes out of sight to make bedroom closets seem roomier.
-Removing any visibly damaged furniture.
-Organizing bookshelves, closets, cabinets and pantries. Buyers will inspect everything.
-Putting away your personal photographs, unless they showcase the home. Let buyers see themselves in your home.
-De-personalize rooms as much as you can.

Tip #5: Clean, clean, clean
The cleanliness of your home also influences a buyer’s perception of its condition. The appearance of the kitchen and bathrooms will play a considerable role in a buyer’s decision process, so pay particular attention to these areas. The best ways to improve these areas include:
-Cleaning windows, fixtures, hardware, ceiling fans, vent covers and appliances.
-Cleaning carpets, area rugs and draperies.
-Cleaning inside the refrigerator, the stove and all cabinets.
-Removing stains from carpets, floors, counters, sinks, baths, tile, walls and grout.
-Eliminating house odors, especially if you have pets.
-Considering air fresheners or potpourri.

Tip #6: Make minor repairs
The small stuff does count, especially with first-time home buyers. Without dismissing the importance of repairing major items such as a leaky roof or plumbing, you do not need to spend money on replacing these items. Instead, focus on the minor repairs that will make your home visually appealing. The best ways to improve your home include:
-Repairing ceilings and wall cracks.
-Repairing faucets, banisters, handrails, cabinets, drawers, doors, floors and tile.
-Caulking and grouting tubs, showers, sinks and tile.
-Adding fresh paint to ceilings, walls, trim, doors and cabinets.
-Tightening door handles, drawer pulls, light switches and electrical plates.
-Lubricating door hinges and locks.

Tip #7: Showcase the kitchen
The heart of any home is the kitchen. If you are going to spend any money on renovations, this is the one area where you will see the greatest return. Even with a modest budget, focusing on a few key areas can make a great difference in getting the asking price for your property. The best ways to showcase the kitchen include:
-Replacing cabinet doors and hardware.
-Installing under-cabinet lighting.
-Replacing light fixtures.
-Replacing outdated shelving with pantry and cabinet organizers to maximize space.
-Baking cookies or cupcakes for a showing, to create a homey smell.

Tip #8: Stage furniture
Furniture placement can enhance the space of your home while giving buyers an idea of how to best utilize the space with their own belongings. Take some time to rethink how different areas in your house could be used. Some ideas to think about include:
-Moving couches and chairs away from walls in your sitting and family rooms to create cozy conversational groups.
-Creating a reading corner in the master bedroom.
-Clearing an empty room to set up a reading space.
-Turning an awkward space into a home office.
-Setting the dining room table with your best china.
-Set wine glasses in front of the fireplace or next to a Jacuzzi tub.

Tip #9: Light up the house
Create a sense of openness and cheerfulness in your home through its lighting. To improve the lighting try:
-Opening shades and drapes to let the sunshine warm and brighten rooms.
-Installing brighter light bulbs in rooms that tend to be dark.
-Adding additional lamps for ambient lighting.
-Turning on all the lights for a showing.

Tip #10: Add fresh touches
You can easily add color and style to your home by adding fresh touches throughout. Some ideas to consider include:
-Placing fresh floral arrangements in the entry and master bedroom.
-Placing bowls of bright-colored fruit in the family room and the kitchen.
-Filling an empty corner with a potted leafy plant.
-Setting new hand soap in the bathrooms.
-Displaying fresh towels near sinks.

Originally posted by RisMedia/Lowes

The Sunday real estate open house is a longstanding ritual in the real estate marketplace, and many homes have been sold on a lazy Sunday afternoon. When used properly, open houses can be a great marketing strategy.

According to the experts, the following steps will help you get the most out of your real estate open house and increase your chances of selling your home for the price you want.

-Be sure to meet with your agent in advance of the open house. Discuss all the various details about what is involved in holding a successful open house. While many home sellers are comfortable with an open house, others are not. If you choose not to host an open house, there are other ways to sell your home.

-Be certain to go through the entire home with the real estate agent the day before the open house. Take careful notes and follow all of his/her recommendations.

-Try not to become emotionally involved when evaluating the condition of your home prior to the open house. Remember that your real estate agent is trying to make your home more appealing to potential buyers, not criticizing your decorating style or choice of accessories.

-Any needed home repairs should be completed before the open house begins. This includes things like peeling paint, loose stairs, banisters in need of repair and the like. It is crucial that guests see a home that is in immaculate condition.

-Never underestimate the importance of making a good first impression.Many visitors make a decision about the home in the first few seconds. Be sure the entranceway to the home is immaculate, and that the steps leading up to the home are well swept and free of debris.

-Ask the real estate agent to create a professional-looking sign in sheet for all visitors. It is important to get the name and phone number of all attendees to the open house.

-Always discuss the price of the home prior to the open house. This will allow the agent to negotiate the price on the spot if a good prospect attends.

-Be sure to consider unusual ways to market your open house. For instance, if you belong to any special groups or organizations, be sure to market the upcoming open house to the members. For instance, the local garden club may be very interested in attending an open house that includes a beautiful outdoor garden.

-It is a good idea to provide cookies, brownies or other snacks for guests at the open house. A punch bowl is also an attractive addition.

-Pets should be kept away from open house visitors. It may be a good idea to have a friend or family member takes care of your pets until the open house is over.

-Be sure to lock up all medications, both prescription and non-prescription. Also be sure to lock up any cash or valuables in the home prior to the open house.

-Make sure that the home is spotless and free of unpleasant odors prior to the open house. You may want to bake a fresh batch of cookies an hour or two before the open house begins. Not only will the aroma mask any unpleasant smells, but it will create a warm and inviting ambiance as well.

-Be sure the temperature in the home is pleasant. A home that is too hot or too cold can make visitors uncomfortable, and lead them to wonder about the quality of the heating and air conditioning system.

-Play soft music in the background during the open house. Background music helps set a good mood for visitors.

-Always open the curtains and the drapes prior to the open house. This will allow fresh air and sunshine in and help give the impression of a larger space.

-If your home does not have plants, you may want to buy a few before the open house. Plants can provide a warm feel and help make guests at the open house feel more at home.

Following the guidelines outlined above, chances are your public open house will be a big success. Even if the home is not sold at the open house, the prospect contacts gained and the word of mouth exposure may well result in a sale.

RISMEDIA, July 13, 2010–(MCT)–How to handle the sale of a parent’s home is a question many baby boomers face after their parents are gone. Here are two different situations answered by Internal Revenue Service specialist Jesse Weller and estate planning attorney Tracy Potts.

QUESTION: My parents lived in a 1910 home until they passed away in the ’60s. Eight siblings were willed the home, but we allowed one brother to live there until he died in 2009. The home was sold in 2010 and proceeds divided among eight heirs (gross amount: $10,000 each). Are we obligated to pay federal taxes on this inheritance? If so, how do we determine the home’s tax basis and what tax forms are required?

ANSWER: Based on this information, it sounds like you and your siblings will each report a share of the home sale next year on your 2010 federal income tax returns. Normally you would each complete Schedule D, Capital Gains and Losses, showing your one-eighth interest in the sale.

Generally, taxpayers do not pay income tax on inherited property, but they do pay tax on earnings from an inheritance. The initial cost basis of inherited real estate is usually the home’s fair-market value on the date of the owner’s death.

If the home rose in value during the time you and your siblings owned it, there could be a taxable capital gain on the sale because the increase is considered earnings from the inheritance.

The starting cost basis for you and your surviving siblings is normally each person’s respective share of the home’s total value on the date of death of the parent who willed it to you.

If a federal estate tax return was filed (after your parents died), the value listed for the property generally becomes your cost basis. If a federal tax return did not need to be filed, your cost basis is the home’s appraised value at date of death for purposes of state inheritance or transmission taxes.

For heirs of your deceased brother, their tax basis would normally be the home’s fair market value on the date of his passing in 2009.

If you made capital improvements to the home over the years, you would add the cost of those improvements to your adjusted cost basis. Examples include adding a new room, deck or patio, installing a new heating/air conditioning system and adding insulation.

More details are in IRS Publications 523 (Selling Your Home) and 551 (Basis of Assets). More information on capital gains is in Publication 550 (Investment Income and Expenses). All are available at www.IRS.gov or by calling 800-TAX-FORM (829-3676).

Q: My mother passed away in January at age 86. She had a living trust that included her home, which was purchased in 1949. My sister and I are the trustees and beneficiaries of her estate. In February, we sold the house for $325,000 and received the proceeds. Is that money taxable to us? I seem to recall that the home’s cost basis after death is stepped up to the current market value. Does this mean there would be no capital gains to pay?

A: In 2010, the children of a deceased parent may obtain a stepped-up cost basis on a total estate valued up to $1.3 million. Since you sold the property very soon after your mother’s death, you may use the sales price as the property’s value at time of death.

Therefore, you should not owe any capital gains tax on the sale since it appears the estate’s overall value fell below this year’s stepped-up basis limitation.

Generally, if you sell a home within one year after the death of the trust holder, you may use the sales price as the tax basis and therefore would not pay capital gains taxes.

(c) 2010, The Sacramento Bee (Sacramento, Calif.).
Distributed by McClatchy-Tribune Information Services.

Here an update on the state of the national housing market. Great thing we are in Topeka and while there are a few foreclosures in our area, our market has not been overrun with them. Although properties are not showing a steep incline of appreciation, prices are stable and not falling as they have recently in other places around the country.

Those that choose to sell their own homes in the Topeka area often hope to avoid the commission paid to real estate agents. While those familiar with the Topeka area housing market and process of selling a home may enjoy a successful sale, plenty of inexperienced home sellers have encountered nothing but headaches. Besides limiting the number of potential buyers, the decision to sell by owner has cost many homeowners incredible amounts of time, energy and money. Before you make your own decision, you may want to assess the factors discussed here in relation to your own knowledge and resources.

One of the most critical aspects of selling a home – setting the right price – often requires extensive market research and analysis of the property itself. While it is possible to gain an understanding of broad market trends, homeowners often don’t have enough time to analyze the nuances of their local housing market. On the other hand, real estate agents are immersed in such local trends on a daily basis. Over time, the best real estate agents will gain an incredible understanding of everything from the most popular neighborhoods and styles of homes to the types of amenities local buyers are looking for. When it comes time to set a sale price on your home, a real estate professional will be able to utilize this knowledge to determine the most accurate market value for your home.

While the pricing of a home can be a difficult process, the most challenging work begins when your home is officially for sale. Even if your home is in the most attractive location within the local market, you probably won’t find many interested buyers without marketing your property. This process begins with listings in real estate databases, newspapers and periodicals. After the listing has been marketed in such publications, the home is made available to prospective buyers through open houses and private viewings.

When a real estate agent is involved in the marketing process, many additional opportunities often develop. Utilizing their industry connections and relationships, real estate agents are often able to find prospective buyers that might not have noticed your home otherwise. While your home is for sale, you can expect your agent to work full time trying to find the right buyer for your home. By comparison, very few homeowners trying to sell their own homes have nearly as much time to devote to the marketing process.

Whether you are selling your own home or working with an agent, there is still plenty of work to be done after a buyer has agreed to purchase your home. A real estate agent may be able to help you work through legal documents such as the Purchase and Sale Agreement. However, those that sell their own homes need to negotiate these documents themselves or hire an attorney for assistance. Unlike most home sellers, real estate agents have experience with the closing process that may help both parties complete the sale as efficiently as possible.

Before deciding how to sell your home, try to consider that there are many factors that influence the real estate market and can make selling your own home very challenging. Understanding the unique risks and difficulties you may face during the selling process will not only help you make an informed decision about hiring a real estate agent – it may help you sell your home.

Earlier this week we talked about, Why NOW is a good time to buy a home, we discussed why now was the best time to buy a home.  Believe it or not, but now is also a great time to sell a house you own. It might seem contradictory to claim that it is the best time to buy and the best time to sell, but actually both statements are true because of same reason – government stimulus.

The reason more people should be jumping in to buy is because of the Homebuyers’ Tax Credit and low interest rates. Combining these two benefits will lower the ‘cost’ a buyer will pay.

Selling now makes a lot of sense because once these opportunities are no longer available, there will probably be a decline in demand. We all know that home prices will be determined by supply and demand.  So let’s go over 5 good reasons why NOW is a great time to sell your home!

1.) The Homebuyers’ Tax Credit WILL expire next month

Obviously the purpose of the tax credit was to entice buyers to purchase houses. But what will happen to demand once the tax credit ends? Many feel that the program caused buyers who would have bought a home sometime this year make their purchase sooner than they would have so they could take advantage of the tax credit. So, the question on everyone’s mind is, how badly will demand drop-off?  Less demand usually equates to lower prices. Below is a graph that shows the dramatic reduction in demand after the Tax Credit was initially supposed to expire in late November:

2.) Mortgages are not as easy to get and may become more difficult to get in the future

The mortgage industry has returned to the standard that every buyer must ‘qualify’ for their mortgage. If interest rates rise, the mortgage payment rises also. As a result, there will be fewer buyers who qualify at each price point.

3.) Some of today’s sales will not create buyers

In a normal market almost every home seller becomes a home buyer. However in the Topeka real estate market some of the sales are short sales or foreclosures. They do not create an additional buyer. Again DEMAND DOES NOT INCREASE.

4.) There is an flood of foreclosures coming onto the market

The banks are holding a large volume of foreclosed properties in inventory and in the near future these houses will come to the market as discounted properties.

As these properties come to market there will be an increase in supply of under valued homes. This will create downward pressure on prices.

5.) It isn’t always about the money

If you are considering whether or not to sell your home there must be a reason. Whether it is time to move-up to a bigger home for your family or the time has come to downsize so you can have the freedom to travel more.

Selling a home should not ONLY be about the money. Sometimes it is about moving ahead in your life and doing the things you want to do or need to do. Don’t let money get in the way of living your life.

What does this mean to you?

If you are thinking of selling your house, consider the theory of supply and demand. After this spring, demand might wane because of the exiting of government support and the supply of distressed properties will probably increase dramatically. Now is probably the time to sell.

If you’re searching for a Topeka REALTOR® you’ll be glad to know that you are not alone… almost all homes in the Topeka area are sold with a REALTOR® on both the seller and buyers side of the transaction. Only a few buyers and sellers out there try to tackle the process of buying or selling homes in Topeka without professional help, many of whom will experience a long road of frustration and disappointment.

The Topeka real estate market is complex. Your time is valuable, so you might as well team up with a professional.

Below are the 7 reasons why you need a Topeka REALTOR® and why you are making the RIGHT decision by hiring a REALTOR®to help you buy or sell your home.

1. Education And Expertise

Buying and selling homes in Topeka is a complex undertaking filled with rules, regulations, negotiations and very detailed steps to follow. Hiring a professional REALTOR® gives you an expert who is educated and has the knowledge to help you navigate the process.

2. Neighborhood Knowledge

A REALTOR® has the knowledge and insight to help you price your home correctly to sell quickly and for the most amount of money or help you write a strong offer if you are buying.

3. Market Conditions

Because we are in the Topeka real estate market every day, we work with other Topeka REALTORS® and get their feedback on what they’re seeing and we are constantly gathering data to know the state of the current market.

Our understanding of the Topeka real estate market allows our clients to tap into us as a resource to capitalize on the market conditions to fit their situation to help them sell or buy their home in the Topeka area.

4. Professional Network

Topeka REALTORS® are networking with other professionals in the industry. You will need other people to help you sell or buy your home and an agent will have contacts of people like loan officers, appraisers, roofers, home inspectors, termite inspectors and more. This is a valuable network a REALTOR® has that you can trust and use when you are selling or buying a home.

5. Negotiation Skills

It’s good to have a team member who can negotiate on your behalf. You have “emotions” in the deal and your REALTOR® will be able to help you when it comes to negotiations and when you have to make decisions. Ultimately, decision making is up to you but having a trusted partner will help to point out things you may not be considering when decisions need to be made.

6. Paperwork, Paperwork, Paperwork

The paperwork when working with a Topeka REALTOR® can be overwhelming, now imagine if you had to do all the managing of it on the front end as well? What paperwork is needed for certain decisions and what is needed during the entire selling and/or buying process. A REALTOR® is going to be able to help you navigate the volume of paperwork as well as help you to understand what it is that you’re signing.

7. Referrals

Topeka REALTORS® depend on referrals as a major source of new business. Therefore, they are going to work hard so that you are completely satisfied and you will be a “raving fan” who will refer future business to them. Over time the goal is to get to the point where their main source of new business is based on referrals because they have taken care of YOU (their client).

Again, a real estate transaction in Topeka is complex and a process that you probably don’t want to go through alone. Call one of our professional REALTORS® and someone you can connect and relate to you since you’ll be working closely with them.

Good luck on getting your home sold and/or buying your next home!

This week the Obama Administration has developed a new plan for home-sellers who owe more on their mortgage that the property can sell for (article here).   The new program is planned to take effect April 5th, and it allows a seller who completes a short sale to receive $1,500 in ‘relocation assistance’ as an incentive to get the deal done quickly and move on.   The government will also give cash incentives to banks and loan servicers to encourage them to work through the backlog of upside down properties currently on the market.   Short sales benefit sellers because they are less harmful to their credit score than a foreclosure. They also get the property on the market more quickly than the foreclosure process which means the home has less potential time to sit vacant and deteriorate.
If you’re thinking now is the time to sell your home, but may be worried that your mortgage may be higher than the home’s value, give one of our professional REALTORS® a call today to discuss the short sale option and how this new program could help protect your future credit rating by avoiding foreclosure and still getting some cash to help you with your move.

The holiday season from November through January is often considered the worst time to put a home on the market. While the thought of selling your home during the winter months may dampen your holiday spirit, the season does have its advantages: holiday buyers tend to be more serious, and competition is less fierce with fewer homes being actively marketed. First, decide if you really need to sell. Once you’ve committed to the challenge, don your gay apparel and follow these tips from FrontDoor.com.

1. Deck the halls, but don’t go overboard. Homes often look their best during the holidays, but sellers should be careful not to overdo it on the decor. Adornments that are too large or too many can crowd your home and distract buyers. Also, avoid offending buyers by opting for general fall and winter decorations rather than items with religious themes.

2. Hire a reliable real estate agent. That means someone who will work hard for you and won’t disappear during Thanksgiving, Christmas or New Year’s. Ask your friends……

READ MORE HERE!

New Legislation Extends the Federal Tax Credit for First-Time Home Buyers and Expands the Incentive to Current Homeowners

(TOPEKA, KS) – For many Americans, home ownership is a key step towards achieving the American Dream.  Bryon Schlosser, CEO of Coldwell Banker Griffith & Blair American Home, said, “It’s a great time to be buying or selling a home in Topeka.  Prices and inventories are stable, mortgage rates are at historic lows, and for the next few months we have new government incentives.”

On November 6, 2009, President Obama signed “The Worker, Homeownership, and Business Assistance Act of 2009,” bringing that dream one step closer to reality.

To help consumers who are considering purchasing a primary residence, Coldwell Banker Griffith & Blair American Home has summarized the details of this new legislation and what it means for those thinking about entering the market:

• Eligibility: The tax credit is now available for first-time home buyers and repeat homeowners. A first-time home buyer is defined as an individual who has not owned a principal residence during the three year period prior to the purchase.  For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse. For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit.

A repeat homeowner is defined as someone who has owned and resided in a home for at least five consecutive years within the last eight.

• The federal tax credit amounts to 10 percent of the cost of the home, up to a maximum credit of $8,000 for first-time homebuyers and $6,500 for current homeowners.
  
  • e.g., If a home costs $60,000, the allowable credit for both a first-time homebuyer and a current homeowner would be $6,000. If a home costs between $80,000 and $800,000, then the allowable credit for a first-time homebuyer would be $8,000 and for a current homeowner, $6,500.

• Individuals whose Form 1040 filing status is “single” are eligible for the tax credit if their income is no more than $125,000. Individuals who file a joint return are eligible if they have no more than $225,000 in income.

Single taxpayers who earn between $125,000 and $145,000, and married couples who earn between $225,000 and $245,000 are eligible to receive a partial credit.

• The federal income credit can be claimed on one’s individual or joint tax return for the purchase of any single-family home (newly-constructed or resale, single-family detached, townhomes or condominiums) between the dates of November 7, 2009 and April 30, 2010. Home purchases subject to a binding sales contract signed on or before April 30, 2010 will also qualify for the tax credit provided closing occurs on or before to June 30, 2010.
• The tax credit is refundable. A refundable credit means that if the amount of income taxes a home buyer owes is less than the credit amount he / she qualifies for, the government will send a check for the difference.  In essence, the credit is a dollar-for-dollar reduction in what taxpayers owe for the calendar year they purchase their home but the taxpayer may also amend the prior year’s return to claim the credit more quickly.
  • e.g., A first-time home buyer who qualifies for the full $8,000 tax credit and owes $5,000 in federal income taxes would owe nothing to the IRS and receive a $3,000 payment from the government.  A repeat buyer who qualifies for the full $6,500 tax credit and owes $5,000 would pay nothing to the IRS and receive $1,500 back from the government. If the repeat buyer is due to get a $1,000 refund, he / she would get $7,500 ($1,000 plus the $6,500 move-up buyer tax credit).

The tax credit is a true credit. It does not have to be repaid unless the homeowner sells or stops using the home as their principal residence within three years after the purchase.   In that case, the full credit amount will be recouped on the sale.  There are exceptions in the event of the homeowner’s death or if a sale results in a loss.

For further understanding of how the extended tax credit differs from the previous version and how it can benefit first-time and repeat homebuyers additional information can be found on CBKansas.com.

This is based on information available as of November 2009 and is not meant to be tax or legal advice.  As with any tax law change, consumers should check with a tax advisor regarding availability, eligibility and possible timing of any tax credit.