Your kids have moved out and now you’re living in a big house with way more space than you need. You have two choices – remodel your existing home or move. Here are some things to consider about each option.

Choice No. 1: Remodel your existing home to better fit your current needs.

• Remodeling gives you lots of options, but some choices can reduce the value of your home. You can combine two bedrooms into a master suite or change another bedroom into a spa area. But reducing the number of bedrooms can dramatically decrease the value of your house when you go to sell, making it much less desirable to a typical buyer with a family.
• The ROI on remodeling is generally poor. You should remodel because it’s something that makes your home more appealing for you, not because you want to increase the value of your home. According to a recent study, on average you’ll recoup just 64 percent of a remodeling project’s investment when you go to sell.
• Remodeling is stressful. Living in a construction zone is no fun, and an extensive remodel may mean that you have to move out of your home for a while. Staying on budget is also challenging. Remodels often end up taking much more time and much more money than homeowners expect.

Choice No. 2: Sell your existing home and buy your empty nest dream home.

• You can downsize to a single-level residence and upsize your lifestyle. Many people planning for their later years prefer a home that is all on one level and has less square footage. But downsizing doesn’t mean scrimping. You may be able to funnel the proceeds of the sale of your existing home into a great view or high-end amenities.
• A “lock-and-leave” home offers more freedom. As your time becomes more flexible, you may want to travel more. Or maybe you’d like to spend winters in a sunnier climate. You may want to trade your existing home for the security and low maintenance of condominium living.
• There has never been a better time to sell. Our area is one of the top in the country for sellers to get the greatest return on investment. Real estate is cyclical, so the current boom is bound to moderate at some point. If you’re thinking about selling, take advantage of this strong seller’s market and do it now.

Bottom Line

If your current home no longer works for you, consider looking at homes that would meet your lifestyle needs before taking on the cost and hassle of remodeling. Get in touch with me to discuss the best option for you.

Now that the end of the year is upon us, it’s time to start thinking about some New Year resolutions. If your 2018 resolution is to buy or sell a home, here are some suggestions to help you along the way. For everyone else, we’ve added some tips about building equity and investing in updates to your home.

Buying:

If you’re in the market to buy your first home or if you’re upsizing/downsizing, here are some ideas that can help you make this dream a reality:

• Create a buying timeline and work towards your goal
• Check your credit scores and work to improve your rating
• Start or increase your savings for a down payment
• Start the loan pre-approval process
• Meet with your real estate agent
• Start looking for homes

Selling:

If you are planning to put your home on the market in 2018, here are some good places to start:

• Create a selling timeline to work towards having your home ready for market
• Make a list of home improvements and a plan on how to manage them
• Get rid of the clutter
• Contact a real estate agent (If you don’t have an agent, click here to be introduced to a Windermere Real Estate agent.)

Building Equity:

You may not be moving this year, but you can create a plan to increase your equity in the home you have now.  Here are some tips:

• Take advantage of low interest rates by refinancing to a lower rate
• Consider refinancing to a shorter term loan
• Make extra lump-sum payments. Consider using your tax refund, cash gifts, work bonuses, garage sale money, or any other unexpected income toward paying down your principal.
• Pay every two weeks instead of once a month. A biweekly payment plan can substantially reduce the amount of interest you pay because you are breaking the interest accrual down from 30 days to every 15.
• Pay a little extra each month. Even if you’re only rounding up to the next $100 increment, putting a little extra money towards your principal every month can add up.

Investing In Your Home

You can add a lot of value and additional enjoyment to your home by investing in improvements and upgrades.

• Choose a home improvement project that will yield a good return on investment when you do choose to sell
• Create a home checklist to track maintenance projects over the year
• Make eco-improvements to increase your home’s sustainability and reduce your utility payments over the long-term. These improvements are generally a good return on your investment when reselling.
  • Upgrade furnace to an efficient model
  • Upgrade windows for better insulation
  • Add alternative energy resources, such as solar power
  • Update toilets and showers to low-flow
  • Install a programmable thermostat
  • Update to energy-efficient appliances

During the winter, it is tempting to curl up and hibernate in bed for the next few months. However, you shouldn’t put off these important home maintenance duties.

Clean and check the gutters: While you are on the roof hanging holiday lights, make sure your gutters are clear of leaves, secured to the house, and in good condition. If you do find problem spots, seal, secure, and make note to fix these in the spring. You want to divert water away from your home.

Insulate external water sources: In cold climates pipes can freeze, which can then lead to cracked pipes and flooding. Bring hoses and sprinklers inside for the winter and use insulation to wrap external faucets. Insulating interior pipes can help prevent disaster. If you don’t have insulation, you can keep a faucet dripping during particularly cold days, so water is flowing through the pipes.

Check your water heater: One way to save money during the winter months is to wrap your water heater, so it doesn’t have to use as much energy to keep the water hot in a tank. You should check on your heater to make sure it isn’t leaking and in good repair regularly.

Interior insulation: Keep the heat in and the cold out with increased insulation in your attic and basement. This is an investment, and best done before the winter hits, but can make a big difference in how warm your house feels and how high your heating bill goes.

Check for cracks and leaks: Do you feel a draft? Check the sealing on your windows and doors. You can add weather stripping and silicon to seal these leaks. Foundations can leak as your home settles, so you should also check your basement for water coming through the walls, pipes, and older windows. You will want to seal these appropriately to minimize damage from flooding or mold.

Weatherize your windows: Your windows can be a great source of heat leakage depending on their age and condition. If you have older windows, you can use a clear film to help insulate them during the winter. If you don’t want to film the windows you can install extra thick drapes or curtains to help keep the interior of your home warm.

Check your heating system: What is one thing gas fireplaces, wood burning stoves, and central air heating systems all have in common? They all need to be cleaned and maintained. Check and clean your indoor heating system thoroughly. If you use an old-fashioned wood stove, make sure there are no leaks and that all soot buildup or nests are removed. If a furnace is what you have remember to change the filters as recommended or clean out your reusable filters.

Check your chimney with care: Nothing is as cozy as sitting by the fireplace during the winter, but use with care! Have your chimney checked by a professional to ensure that it’s in good condition and clear of critters or nests. You can also use a creosote log at the start of the season to help break down any old residue.

Invest in home security: The holidays are prime times for burglars looking to score some extra gifts so make sure your home is safe and secure at all times. Check your locks to make sure these are secure and consider a home security system with visible cameras to act as a deterrent. Keep evidence of big gifts hidden from view too. And make sure you discreetly get rid of any large boxes that might alert a prowler that you have new big-ticket items in your home.

Deck the halls and be merry: Decorate your home and prepare for guests. If you have a Christmas tree, keep it from drying out (and creating a fire hazard) by watering regularly. Keep decorative candles and menorahs away from children and flammable materials. You may want to consider battery powered candles, these can be a safe alternative to traditional candles.

Wishing you and yours a happy and safe holiday!

Whether you’re a first-time homebuyer or a current owner looking for a bigger home, the ideas below will help you better navigate that all-important first step: Finding a property that you like (and can afford).

The search for a new home always starts out with a lot of excitement. But if you haven’t prepared, frustration can soon set in, especially in a competitive real estate market. The biggest mistake is jumping into a search unfocused, just hoping to “see what’s available.” Instead, we recommend you first take some time to work through the four steps below.

Step 1: Talk to your agent

Even if you’re just thinking about buying or selling a house, start by consulting your real estate agent. An agent can give you an up-to-the-minute summary of the current real estate market, as well as mortgage industry trends. They can also put you in touch with all the best resources and educate you about next steps, plus much more. If you are interested in finding an experienced agent in your in your area, we can connect you here.

Step 2: Decide how much home you can afford

It may sound like a drag to start your home search with a boring financial review, but when all is said and done, you’ll be glad you did. With so few homes on the market now in many areas, and so many people competing to buy what is available, it’s far more efficient to focus your search on only the properties you can afford. A meeting or two with a reputable mortgage agent should tell you everything you need to know.

Step 3: Envision your future

Typically, it takes at least five years for a home purchase to start paying off financially, which means, the better your new home suits you, the longer you’ll most likely remain living there.

Will you be having children in the next five or six years? Where do you see your career heading? Are you interested in working from home, or making extra money by renting a portion of your home to others? Do you anticipate a relative coming to live with you? Share this information with your real estate agent, who can then help you evaluate school districts, work commutes, rental opportunities, and more as you search for homes together.

Step 4: Document your ideal home

When it comes to this step, be realistic. It’s easy to get carried away dreaming about all the home features you want. Try listing everything on a piece of paper, then choose the five “must-haves,” and the five “really-wants.”

For more tips, as well as advice geared specifically to your situation, connect with an experienced Windermere Real Estate agent by clicking here.

by Marilou Ubungen

It’s almost Halloween; the time of year when people decorate their homes with haunting embellishments and spooky décor. Bats, spiders, and rodents are all good and fun when they’re made of plastic, but when you have the real thing taking up residence in your home, it’s no treat. Here are some tips for making sure these frightening critters don’t make your house their permanent home.

Blood Suckers

While they may not turn into vampires in real life, preventing a bat infestation is actually good for your health. That’s because bats are a known carrier of rabies and an accumulation of their droppings can cause lung problems in humans. Bats can enter your home through holes less than an inch wide, and when they do, they often find the attic to be very accommodating to their needs. So, how do you keep them from settling in? Start by checking your roof and siding for any gaps. Check your attic for any signs of infestation, including: brown stains around any openings in your siding or roof (from oil on their skin), droppings, or strange sounds coming from the attic. Ghosts aren’t the only ones who like it up there.

To prevent or rid your home of bats follow these tips:

• Get rid of the bats now, so they can find alternative shelter before hibernation season in the winter.
• Check with local pest control companies; in some states it is illegal to exterminate bats.
• Locate the point of entry.
• Hire a professional to evacuate the bats.
  • As mentioned above, bats can cause health problems; hire a professional who has experience and the right equipment. There are humane options available.
• Prevent re-entry by sealing any openings.
• Use mothballs to prevent re-nesting. Bats have a tendency to return to previous nesting sites, so this may need to be repeated.

Creepy Crawlies

In lists of common phobias, more than thirty percent of adults report fearing spiders, right behind public speaking and death. Most spiders that you find in your home are perfectly harmless; however, that doesn’t mean you want to share your space with them. To be on the safe side, there are some measures you can take to protect yourself from our little eight legged friends. Even a bite from a harmless spider can cause infections with itchy, red skin. In most cases, it can be treated by washing it with cool, soapy water, elevation, and an ice pack. Of course, if it shows signs of getting worse, your next step should be calling your doctor. Spider varieties that you should avoid include: Hobo spiders, Black Widows, Brown Recluses, and the Yellow Sac spider. These spiders are poisonous and can cause a number of symptoms from vomit to necrotic lesions. According to experts, spiders very rarely cause death in humans; however, if you are bit by a venomous spider you should seek immediate medical attention (and bring the spider remains with you, if possible).

Here are some tips to reduce spiders in your home:

• Kill spiders on sight.
• Place non-poisonous spider traps with non-toxic attractants and glue in areas where spiders are commonly found and in corners.
• Be careful with common insect repellent and spider sprays, these can be toxic and harmful to children and pets.
• Spiders can be deterred with essential oils: lavender, chestnut, clover leaf, and coconut.
• Use ultrasonic devises.

Rodents:

The most effective way to prevent mice and rat infestation is to keep them out of your home in the first place. Mice can get through a gap as small as a quarter of an inch, so thoroughly inspecting the foundation and interior of your home for entrance points and sealing any cracks or holes is a great way to start. Rodents are also excellent at tracking food sources. Keep all food, including pet food and pantry items in secure bins and jars.

If you have found evidence of mice or rats (generally droppings or urine) take caution. Rodent secretions can be hazardous, and can spread salmonella or hanta virus. There are multiple methods for removing rodents from your home, including traps, poison bates, electronic and sonic devises and, a house cat, or professional exterminator.

If you are getting rid of the critters on your own you will want to follow these steps:

• Identify their food source(s), entry points, and common routes around and through your home.
• Remove food source with secure packaging that cannot be chewed through, such as glass containers.
• Seal all entry points with wire mesh.
• Place sonic devises, traps, poison, or other deterrents in the pathway of the rodents.
• Use caution, make sure poison or exposed traps are not accessible to children or pets.
• If you find urine, droppings, or a dead mouse you will want to spray the surface and mouse with a bleach/water solution. Using gloves and a face mask, remove the rodent and wipe all surfaces.
• If you have identified a large quantity of rodents, contact a professional for removal and clean up.
• You may need to take extra measures to ensure the removal is permanent by changing components of your back yard, replacing siding, or upgrading building materials to prevent outdoor nesting and re-infestation.

Posted in Living by Marilou Ubungen

Image courtesy of Stuart Miles at FreeDigitalPhotos.net

The debate about whether it makes more financial sense to rent or buy has been raging for decades. Advocates of buying say: When you rent, you’re essentially paying someone else’s mortgage. Buying, on the other hand, is an investment—one that can significantly increase in value every year you continue living in the home.

Fans of renting say: The extra costs associated with owning a home (interest payments on the loan, property taxes, homeowner dues, improvement/repair costs, etc.) add up. And there’s no guarantee that those expenses will be recouped when the house is sold. Instead of investing in a home, you may be better off investing your savings in stocks, bonds, and other financial securities.

Who’s right?

According to Jed Kolko, one of the country’s most respected real estate economists, “Mortgage rates are still near long-term lows. Because prices fell so much after the housing bubble burst, and remain low relative to rents even after recent price increases, buying is still much cheaper than renting.“

But that’s a blanket statement. The right option for you depends on your personal circumstances, and your answers to the following questions:

What’s the real estate situation in your city?

Industry groups put out reports every quarter stating the average national sales price for a home, and the average monthly payment for a U.S. rental. But what really matters is what the numbers show when you dig into them on a local level.

The reports are almost always based on average for all the cities in the country. Delve into the details, and you’ll see there are some cities that fall well below that average, and some that rise far above it. The learning: When comparing housing costs, be sure to base your evaluation on what’s happening in your city and neighborhood, not the nationwide averages.

How long do you expect to live there?

If five years is the longest you can envision yourself living in one place right now, renting is probably your best bet financially. But if you think you’re ready to put down roots for as long as 10 years, chances are very good that any home you purchase will appreciate during that time even if the economy runs into some bumps along the way.

What’s the mortgage rate?

One of the other key factors to consider is the cost of your loan (the interest you’ll pay the lender). Fortunately, you now have access to some of the lowest mortgage interest rates in history, even if they increase a bit over the coming year, as many expect. According to a recent article in Forbes, “Compared to decades past, today’s rates are unprecedentedly—and artificially—low. They’re the direct result of a Federal Reserve-funded fiscal stimulus plan, better known as the third round of quantitative easing of QE3, aimed at hastening the recovery in housing and the economy as a whole.”

Can you pay a bit more?

If you can afford to pay a little extra towards your mortgage bill each month, it makes even more sense to buy. Paying $300 more per month (on a 30-year, $300,000 loan) will knock eight years off the life of the loan and reduce your final bill by more than $63,000 (that’s savings you would never see if you rented).

Will you need to make repairs or improvements?

Buying a fixer-upper may seem like a great way to get a deal on a house, but if the money you spend on the repairs is too great, your profit could be slashed when it comes time to sell. The same is true for remodeling and improvement projects. If you can only afford a home that demands major improvements, and you don’t have the skills to do much of the work yourself, it’s probably better to rent.

Do you have other ways to invest?

Many see a home purchase as an easy way to invest—a place where they can generate savings through home equity. But others say you can make more money renting an apartment and investing your savings in stocks, bonds, and other financial securities.

According to two professors studying the issue, it is possible to make more money investing in securities, however, you need to invest ALL the money you would have put towards the house (something most people can’t/won’t/don’t do). Plus, do you have the knowledge, resources and liquid cash necessary?

“We find that if people don’t invest the money, actually about 90% of the time, you’re better off buying,” says professor Eli Beracha, a co-author of the study.

Can you rent part of the house?

Here’s a twist: If you buy a house that includes a rental (space bedroom, mother-in-law unit, etc.), you could BE the landlord instead of paying the landlord. With that rental income, you could pay off the mortgage faster and contribute more to your savings. But, of course, you need to be willing to share your home with a tenant and take on the responsibilities of being a landlord.

Making your decision

To make your decision about whether to rent or buy easier, input the key financial facts regarding your situation into this Realtor.com Rent vs. Buy Calculator: https://www.realtor.com/mortgage/tools/rent-or-buy-calculator/. For help making sense of the results and analyzing other factors, contact an experienced Windermere Real Estate agent by clicking here.

by Marilou Ubungen

For the last nine years, the HomeGain National Home Improvement Survey has been asking real estate professionals across the country the same question: What are the top 10 things a homeowner can do to get their home ready to sell?

And every year, the number one answer is: clean and de-clutter. In the latest survey, 99 percent of the real estate professionals queried ranked this task the most important. What’s more, they estimated that, for every dollar spent on the task, the homeowner would receive a whopping 403 percent return on their investment.

De-cluttering delivers big benefits to those who are not selling their homes, too. Studies show that living in a cluttered house is mentally stressful for the occupants and often leads to weight gain and other health problems.

So why do so many of us put off this important task? It’s hard work. It takes time. It’s physical. It’s emotional. And there are lots of decisions to make about what goes where, what gets tossed, and more. Worst of all, thinking about it makes it seem like an even bigger project than it really is—which is why experts say the best way to get started is to simply jump in.

The easy way to get started

The toughest part of getting organized is getting started. It’s too easy to say, “I’ll go through that closet later.” “I’ll get rid of those boxes later.” “I’ll donate those clothes later.”

Instead, replace “later” with “now.”

Grab a couple cardboard boxes and spend 90 minutes right now organizing one part of one room (a desk in your study, for example). Once you see that it’s not nearly as tough as you imagine, and actually feels satisfying and freeing, you’ll become energized and ready to take on even bigger organizing tasks tomorrow.

Here are some tips to keep you on track:

• Tackle one room at a time.

• Start with the easy stuff. Rounding up the things you know you want to toss, recycle, sell, or store.

• Finish the task you start. Don’t pull everything out of a closet, for example, and then stop for the day, leaving the mess for later. Finish organizing the closet.

• Get the whole family involved (these are important life lessons to pass along to your children).

• Let phone calls and other disruptions wait until you’re done for the day.

Deciding what to keep

Once you make your way through the things you know you don’t want any more (broken appliances, unused gifts, outdated electronics, store returns, etc.), then it’s time to focus on the items that are useful, but don’t get used very often. Experts suggest two strategies. Choose the one that works best for you, or try using them in combination:

• The 12-month test – If you haven’t used the item in the last year, get rid of it.

• The cardboard box drill – Put items you’re not sure about in a cardboard box and set it aside. Whatever gets pulled out and used over the next two months can stay. The things that don’t get rescued should be sent packing.

How to handle keepsakes

Now for the toughest decision of all: What to do with those trophies, mementos, greeting cards, photos, kids’ art projects—and all the other things that trigger strong memories and emotional reactions.

First, go through these things and make sure they’re still things you want to keep. Some items may now remind you of a time—or a person—you want to forget.

Spend no more than 30 seconds reviewing each item. If you allow yourself to start wandering down memory lane, your organizing work will come to a screeching halt.

Take photos of items that are bulky or hard to store—especially the kids’ artwork, which tends to fall apart over time, anyway. Once you’ve captured the item in a photo, let the original go.

If there are keepsakes you inherited from your parents or relatives that hold no sentimental value for you, it’s time to say goodbye.

Stop saving so many things for your children. No matter what they say now, your kids will most likely only be interested in a few key mementos when they’re older. Designate a single memento box for each child.

Other people’s belongings

You should not be storing anything that doesn’t belong to you and/or the other current members of your household. Give back things you’ve borrowed. Get rid of the belongings of ex-spouses, ex-boyfriends, and ex-roommates. Get tough with your adult children; your days of providing a roof for their belongings are over.

Working with a professional

A professional organizer can teach you the tricks of the trade, help you make tough decisions about what to keep and what to let go, and consult with you about the best storage systems. Hiring a professional is also a good idea if you’re having trouble getting started or sticking with it. Expect to pay around $50 to $90 per hour for this kind of help.

Some final words of advice

While you’re getting organized, do not allow yourself to buy any non-necessities. Groceries, yes. But say no to clothes, toys, electronics, sporting goods, and other feel-good purchases.

When you’re done organizing, a good rule of thumb is that for every new item brought into the house, an old one has to leave.