(ARA) – Real estate pros often coach their clients on the value of making “curb appeal” improvements to help sell their homes. Outside painting and minor repairs signal that the house has been well cared for.

That’s a great marketing tactic, but an even better advantage is offering multiple bathrooms. So if you’re planning to put your house on the market and want to make it stand out, consider going a step further and adding a new bathroom.

A spare bath is a great investment. Second only to kitchen remodels for recouping resale value, bathroom additions boast a 63.5 percent rate of return, according to Remodeling Magazine’s 2008-2009 “Cost vs. Value” report. And when an up-flushing, macerating toilet – or “up toilet” – is used for the project, its comparatively low installed-cost makes a bathroom addition very affordable.

An up toilet can be installed virtually anywhere in the home. That’s because this type of plumbing system operates above the floor, using small-diameter piping to pump waste and water up, not down, and into sewer or septic lines. As a consequence, there is no need for the mess and heavy expense of digging through flooring, especially the concrete variety in the basement.

“An up toilet is a super alternative, and it can go where traditional plumbing cannot,” says Mike Coletto, an independent plumbing, heating, cooling and electrical contractor in Illinois with extensive experience installing and servicing up toilets manufactured by SFA Saniflo.

Macerating technology is ideal for adding a bath in tight spots, Coletto notes, such as under a stairway or inside a closet. The simple installation process drives the cost savings. “With no digging,” says Coletto, “I can install a Saniflo system in about half a day.”

Best of all, this type of home renovation reaps instant rewards, improving the quality of life now and paying dividends later.

So, if you are thinking of selling your home, now is the time to plan your new bath installation. Last year’s federal, first-time homebuyer tax credit fueled an impressive increase in the home-resale market. The incentive helped drive year-over-year gains for nine straight months in 2009, according to the National Association of Realtors (NAR). Thanks to an extension and expansion of the program for those signing before April 30, many expect a similar increase in existing home sales during early 2010.

In addition to readying your home with a bathroom addition, here is a checklist of other ways you can easily increase the curb appeal of your home:

* Remove broken toys and tools that may have collected in the yard.
* Pick up debris and store trash cans out of view.
* Install new bulbs in porch and security lighting.
* Check bricks and pavers for cracks: Replace them and reset any that are loose.
* Patch worn or cracked asphalt or cement in the driveway.
* Edge grass and remove weeds that may have grown over walkways.
* Repaint the front door and freshen up chipped and peeling paint trim.
* Clean and polish the brass on doorknobs and lock housings, or replace them if severely tarnished.
* Replace any broken glass panes.
* Clean out gutters and downspouts.
* If you have a post mailbox, make sure it is upright and sturdy.

Learn more about low-cost above-floor bathroom systems by visiting www.saniflo.com or calling toll-free at (800) 571-8191.

By Paul Owers

FORT LAUDERDALE, Fla. — The three-bedroom waterfront estate in Fort Lauderdale normally would rent for about $5,000 a month. But Angela Genereux gets to live there for roughly a third of the cost.

The tradeoff is she has to keep the place in show condition — no dirty dishes or wild color schemes, please — and move out when the place sells.

That’s the deal she struck with Showhomes, a home management and staging company that opened a Fort Lauderdale franchise last summer. The Nashville, Tenn.-based company works with owners of vacant residential properties and their real estate agents, providing live-in managers who make the homes more appealing to potential buyers.

Managers, or stagers, typically bring their own furniture and agree to have the homes ready for showing on 30 minutes’ notice. In exchange, they get reduced housing costs.

“A big part of it is psychology,” said Don Vanderhoef, owner of Showhomes’ Fort Lauderdale office. “Buyers see food in the refrigerator, clothes in the closet. They see all the signs of life of a regular home.”

The housing bust has left millions of vacant homes in its wake nationwide during the past four years. Some homes become unmaintained eyesores, with overgrown lawns and swimming pools full of green water. They also can attract squatters and crime, hurting nearby property values.

“Vacant homes are a prime target for vandals,” said Gerry Schilian, a Boca Raton, Fla., lawyer who handles foreclosure cases. “Any way you can keep these homes intact preserves a community.”

Still, some real estate agents are skeptical about the value of Showhomes’ approach.

There’s no guarantee the managers will maintain the homes properly, said Bob Melzer, an agent in Boynton Beach. There also could be legal issues if they didn’t want to leave when the homes are sold.

“It sounds like a clever idea, but then you’ve got to make it work,” Melzer said.

Vanderhoef insists it does work. Managers sign contracts and undergo thorough background checks. Only once in the 24-year history of the company has there been a problem with a manager, he said.

Showhomes prefers to list upscale homes — those that are priced at $500,000 or above — but will consider lower-priced homes. Vanderhoef said properties in the program tend to sell faster and for more money than other vacant listings.

The company’s eight Florida offices have more than 100 staged homes for sale. The start-up Fort Lauderdale office has two so far. Small firms tend to offer similar services in individual markets, Vanderhoef said, but he isn’t aware of a competitor with a national presence.

Showhomes says it has staged about 60 homes statewide this year that sold for an average of $816,000. The homes were on the market for an average of 135 days after staging. High-end homes can take more than a year to sell.

Homeowners — including individuals, builders and lenders — pay Showhomes an upfront fee that ranges from $750 to $1,500 for a 3,000-square-foot property, Vanderhoef said. They continue to pay the mortgage, insurance and taxes while the property is listed for sale. The company covers normal operating expenses, such as utilities, and minor maintenance costs.

Once the home sells, the owner pays a “success” fee, up to 1 percent of the home’s list price. If the property doesn’t sell, Showhomes pockets only the upfront money.

The Fort Lauderdale home Genereux is renting went to contract Nov. 12, less than two weeks after she moved in. Vanderhoef said the home is selling for close to the $599,000 list price.

Genereux will have to find a new place later this month, but she said she doesn’t mind such a transient lifestyle.

“You get to live in luxury on a smaller budget,” she said.

___

(c) 2009, Sun Sentinel.

Distributed by McClatchy-Tribune Information Services.

By Ilyce Glink

At the end of 2008, I said I wouldn’t be surprised if that year went down as one of the worst ever for housing since the Great Depression.

But as we get ready to say goodbye to 2009, it’s clear that this year hasn’t been much better.

We’ve had another record year of foreclosures (3.9 million foreclosure filings, according to RealtyTrac). Housing prices fell sharply in the first half of the year, as millions of Americans lost their jobs.

The housing market is still on life support: The $8,000 first-time home buyers’ tax credit, which was originally set to expire November 30, 2009, was extended until June 30, 2010. In addition, a $6,500 home buyer tax credit for homeowners who had lived in their prior residences for five out of the past eight years was added.

Millions of Americans (about 27 percent, according to Deutsche Bank) are living in homes worth less than the amount they owe on the mortgage. The government’s loan modification program has been a failure so far. More than 760,000 homeowners are in a trial modification, and just about 31,000 of those have been converted to permanent status.

Fannie Mae and Freddie Mac, still under government conservatorship, have taken hundreds of billions of dollars in losses, and economists believe they have large, unrealized losses left to be taken. The Treasury Department spent $1 trillion buying U.S. housing-backed mortgage securities, and will spend up another $250 billion before the program finishes in 2010.

FHA now accounts for 30 percent of all loans originated, but it has used up its insurance fund and will require higher down payments and bigger mortgage insurance premiums starting next year.

And then there are the real estate investors, swooping in to scoop up properties on the cheap. As the year ends, investors account for about 40 percent of all home sales. Some investors are finding ways of buying distressed properties and flipping them to other buyers for a profit. (Some things never change.)

Speaking of which, perhaps 4.5 million existing homes will sell this year plus another 430,000 new construction houses. That is the lowest number of newly built homes sold in any year since records have been kept — save 1982, the year interest rates climbed above 18 percent.

If there has been a bright spot, it that mortgage interest rates touched a 50-year low twice this year. Millions of Americans (including your columnist) refinanced to take advantage of rates that were as low as 4.25 percent for a 15-year fixed-rate loan and 4.75 percent for a 30-year fixed-rate mortgage.

And the first-time home buyer tax credit seems to have propped up the housing market, for the moment.

It’s hard to believe that two years ago, as we ended 2007, some were comparing that housing market to the Great Depression. We’ve fallen so much farther since.

The good news is that if you’re looking to buy a home in 2010, mortgage interest rates will be low and home prices will be relatively cheap. You’re going to need more cash for a down payment, closing costs and reserves. And you’re going to need a higher credit score.

If you’re planning to buy a house this coming year, here’s my annual list of New Year’s resolutions you should consider making.

As a buyer, I resolve to:

–Get my credit and finances in shape. If you want to take advantage of today’s low interest rates, you’ll want to have a credit score above 760. The higher the better. If your credit score is below 620, you’ll have trouble getting even an FHA loan.

–Know how much I can afford to spend before shopping for a home. Getting preapproved before you shop for a home has never been more important. You’ll need all kinds of documentation (W2, tax returns, account statements, etc.), so get it together before you visit a local lender. And, shop around. Although Fannie Mae, Freddie Mac and FHA account for nearly 90 percent of all loans, each lender sets its own fee schedule. Get the best deal by chatting with four or five different types of lenders.

–Know my neighborhood, and be comfortable with it, before I buy a home there. Houses are great. Neighborhoods that are littered with foreclosures may be unstable for years. Spend time in the neighborhood before falling in love with a particular house.

–Interview at least three brokers before hiring one. This is the single biggest purchase of your life. You deserve to have the best representation. Make sure you interview at least three different agents or brokers before hiring one. Ask questions about how many transaction sides they’ve closed, what price range they work in, who their typical customer is, and what kind of technology they use. Hiring an agent is like being in a short-term marriage. You want it to be good, supportive and productive.

–Read and understand all documents before signing them. I know loan documents are long and boring. So what? You’re committing to the next 15 to 30 years of your life (less if you refinance). Take the time and read your loan and purchase documents. Make sure you understand what they’re saying. Make sure the numbers match what you were promised. And if they don’t, speak up before you close — not after.

NEXT WEEK: If you’re trading up, you’ve probably got a home to sell before you can buy. How can you sell in a slow market? How can you compete against 10 other homes for sale in your neighborhood? Will you qualify for the new home buyer tax credit after you sell? Next week, we’ll continue our look back at 2009 and I’ll have your home seller resolutions for the New Year.

(Ilyce R. Glink’s latest eBooks are “Save Your House From Foreclosure” and “Divorce and Your Finances,” which can be purchased at www.thinkglink.com. If you have questions, you can call her radio show toll-free (800-972-8255) any Sunday, from 11a-1p EST or contact her through her Web site, www.thinkglink.com.)

(C) 2009 REAL ESTATE MATTERS

DISTRIBUTED BY TRIBUNE MEDIA SERVICES, INC.

Declining home prices, increasing numbers of foreclosed properties and unique government stimulus programs are luring potential homeowners into the market. But, purchasing a new home is more challenging then it was just a year or two ago. Relaxed lending standards over the past decade led to one of the greatest housing market booms in the nation’s history, and have now contributed to one of the greatest housing market crashes. Lenders who were previously able to easily lend to most homebuyers have now severely tightened their lending standards, making it more difficult for potential buyers to obtain financing.

If you are still ready to make the jump from renter to homebuyer, here are some tips from FindLaw.com, the world’s leading online source for legal information on how to prepare to purchase your first home.

Carefully inspect your credit report

Lenders check your credit report to see if you have the means, the capacity and the track record to pay the mortgage on the home you would like to purchase. The better your credit score, the more likely you will obtain a favorable interest rate and terms on a mortgage.

To learn what your credit score currently is and if there are any mistakes on your credit report, contact the three major consumer credit reporter companies – Equifax, Experian, and TransUnion. The Fair Credit Reporting Act mandates that each of the consumer credit reporting companies must provide you with a free copy of your credit report at your request once every 12 months. If you find mistakes on a credit report, notify the credit reporting company in writing of the mistake. The reporting companies must, by law, investigate the disputed items unless they find that the dispute is frivolous. Credit scores are based on a range of 300 to 850 and a score of 700 or more suggests good credit management, according to Experian.

Become familiar with mortgage terms and conditions

A mortgage is a legal agreement between the lender and the buyer of a home in which the property is collateral for the loan. A lien on the property being purchased secures the promise to repay the loan. Never sign any legal documents, including a mortgage, if you do not clearly understand the terms and conditions of the agreement. If you feel pressured to sign a document, walk away and seek the assistance of an attorney or trusted real estate professional.

Shop around for your loan

Contact at least three financial institutions to obtain information on mortgage rates, terms and conditions for a first-time homebuyer. When you believe you have enough money for a down payment, obtaining a pre-approval letter from the lending financial institution can speed the purchasing process along. Sellers may be anxious to sell a property in today’s market, but they’re just as anxious to avoid a buyer who is unable get a mortgage to pay for their property.

First time home-buying programs

As you consider buying your first home, look into local, state and federal programs that may offer financial assistance for first-time homeowners. Check with your mortgage lender to learn more about, and to see if you qualify for the 2009 first-time homebuyer’s tax credit. The American Recovery and Reinvestment Act of 2009 expanded the first-time homebuyer credit by increasing the credit amount to $8,000 for purchases made in 2009 before Dec. 1, 2009. In most circumstances, the 2009 credit does not have to be paid back, but be sure you fully understand your obligations before you count on not paying back the credit.

You also may be able to obtain a bridge loan and apply the funds to your closing costs. Additional information is available at www.hud.gov and www.irs.gov. If you’re a military veteran, the Veteran’s Administration also offers special loan programs for which you may qualify.

Hire a real estate professional

Buying a home will probably be the largest financial transaction you will make in your lifetime, and it’s a process that can leave you feeling overwhelmed. Most buyers often rely on their realtor, loan officer or closing agent to guide them through the purchase process. If you feel that you do not clearly understand the purchasing process, or you would feel more confident if you had additional expertise to make a sound decision, consider hiring an attorney who specializes in real estate law to review and negotiate your offer to the seller, to review your mortgage and closing documents, and to be present and represent you at the closing. Hiring an experienced real estate attorney would be especially useful in dealing with the complexities of purchasing a foreclosed home.

Do your homework

When shopping for a home, take the time to research neighborhoods where you would like to own a property. There are many online tools to help you research the schools, property taxes and values and crime statistics. Visit as many open houses as possible in the neighborhood, and as well as nearby shops and other facilities that add value to owning a property. As you narrow down your home choices, work closely with your attorney or real estate professional to obtain a professional inspection of the structures and to understand any disclosures made about the homes.

Consult with friends and family

Experience is often the best teacher. When you start looking for your first home, consult with a parent or friends who have purchased homes to get their perspective of what to look for in a home, and what to expect in terms of ownership and maintenance.

Co-buying a home

If you’re interested in co-buying a home with a friend or a future spouse/partner, work with a real estate lawyer to clearly define the arrangement and the sharing of the title. Working things out up front will reduce potential problems if circumstances change.

For more information and tips on buying or selling a home, visit realestate.findlaw.com.

Courtesy of ARAcontent

(ARA) – Homeownership and green improvements will be more affordable for more Americans in 2009, thanks to several provisions in the American Recovery and Reinvestment Act. The changes will put more money in taxpayers’ pockets and allow homeowners to save thousands of dollars over the next several years.
The First-time Homebuyer Credit has been extended and increased to qualifying individuals who purchase a home in 2009 before Dec. 1. First-time homebuyers are defined as those who have never owned a principal residence or who have not owned a principal residence at any time during the three years prior to the date of purchase.

For 2008 and 2009 tax returns, the credit is equal to 10 percent of the home purchase price, up to $8,000. It phases out when modified adjusted gross income is $75,000 for an individual or $150,000 for joint filers. Married taxpayers must both qualify as “first-time homebuyers” in order to receive the full credit.

Taxpayers who claimed the full $8,000 First-time Homebuyer Credit on their 2008 federal return cannot claim it on their 2009 return. Those who have not claimed the credit should determine which year to use it based on your income. If you expect your income to decrease in 2009, it will likely make more sense to claim the credit on your 2009 return rather than your 2008 return.

The only scenario in which the credit must be paid back is if the home ceases to be the owners’ principal residence within 36 months of the purchase date. Then the full credit amount must be repaid on the federal return for that tax year.
The credit was initially created to be claimed after a home is purchased, but the Obama administration is now allowing qualifying taxpayers to use it to cover certain purchasing costs. Homebuyers with mortgages backed by the Federal Housing Administration may be eligible to receive advances on the credit, which could be used for closing costs, fees and additional money for a down payment beyond the FHA’s required 3.5 percent minimum.

Anyone can apply for an FHA-backed mortgage, regardless of income. However, there are limits on the size of the mortgage, and lenders may charge a fee for the credit. Some states are also offering similar programs.

The new stimulus plan also includes tax credits equal to 30 percent, up to $1,500, for certain energy-efficient improvements to residential properties. The Residential Energy Property Credit can be claimed on 2009 and 2010 returns for improvements such as adding insulation or installing energy-efficient windows, doors, or heating and air conditioning systems. Bigger improvements involving alternative energy equipment such as solar hot water headers, geothermal heat pumps and wind turbines may be claimed on 2009 to 2016 returns under the Residential Energy Efficient Property Credit.

In addition to homeowner tax breaks, the 2009 act includes several new or increased credits and deductions. You can easily learn which provisions you may qualify for on your 2009 taxes by answering simple questions in TaxACT. Preview versions of TaxACT 2009 software will be available in October, allowing you to plan ahead and get a head start on your return. When you’re ready to prepare and file your 2009 return, TaxACT will help you complete the correct forms for the credits in a matter of minutes.

Read the details of the American Recovery and Reinvestment Act of 2009 at http://www.IRS.gov and learn more about TaxACT at www.TaxACT.com.

-Courtesy of ARAcontent

By Cristina Bolling
McClatchy Newspapers

If you’re selling a home, making a first impression on potential buyers happens way before they walk through the door.

More than 80 percent of homebuyers report using the Internet to look for a home, according to a survey by the National Association of Realtors. So photos posted on real estate Web sites are arguably one of the most important components to getting a home sold as quickly as possible, and for the highest price.

“I’ve got a buyer right now who spends two hours every evening looking at homes online,” said Melody Prestifilippo, a Realtor with Keller Williams Realty’s Ballantyne, N.C., office. “If it doesn’t show the kitchen, he won’t investigate further.”

According to an article in RISMedia, a real estate trade publication, homes with 20 or more photos received almost 10 times the number of leads and more than 15 times the number of showings as homes with only one online photo.

And a researcher with real estate Web site Zillow.com found that over a seven-day period, listings with at least one photo were likely to be viewed 41 percent more times than listings with no photos.

Jim Schmid, a Concord, N.C.-based real estate photographer who handles photography for the Allen Tate Co., says having good photos of your home online will put you ahead of lots of homes on the Web, where dark, blurry and poorly composed shots are common.

“If a buyer is coming from out of town and they have two days to look at houses, which 10 do you think they’re going to ask the agent to show them? The ones that look good,” Schmid said. “People make the decision in one to two seconds about whether they’re going to click on that house.”

Realtors say they’re well aware of the power of good — and bad — photography, and many are quickly trying to master the art of picture taking.

While Allen Tate offers free professional photo packages to clients selling homes for $350,000 and up, Schmid has started giving photography workshops to Allen Tate Realtors who want to learn to take better shots themselves.

The first workshop was standing-room-only, Schmid said, with about 40 agents in attendance.

Allen Tate Realtor Lyn Briggs says she makes every effort to have great photos before listing any home on the MLS. She has a certification in home staging, so she works with clients to get their homes decluttered and spruced up before snapping the photos.

“Getting good photos up there as soon as possible is important, but you don’t want to haphazardly put them in there,” she said. “In this market it has to be in the best condition it can be.”

Briggs invested in a good camera, complete with a wide-angle lens and tripod. College photography courses taught her about framing photos, getting the best possible lighting and even tricks like photographing in mirrors to get angles that would ordinarily be impossible.

Prestifilippo, with Keller Williams, is the marketing specialist for her team of four Realtors, which means she visits every home the team is selling and creates a visual tour with up to 24 photos.

“We only photograph on a Carolina blue sky day,” she said. “We don’t put the house on the market until we can take the photos.”

(ARA) – Modern home selling has gone way beyond the “for sale” sign on the front lawn. Nearly 90 percent of home buyers look online when shopping for a home, according to the National Association of Realtors. So your home-selling efforts need to cruise the Information Superhighway at top speed.

(ARA) – The housing market is a tough sell, especially if you are desperate to move and want to sell your house for a good price. But the Internet can be a great tool to help you up the ante of selling or renting your property.
Eighty-seven percent of potential homebuyers use the Web to search for homes, according to the 2008 National Association of REALTORS Profile of Home Buyers and Sellers.

Given that statistic, it’s pretty safe to say that the first impressions of your home as presented on the Internet matter just as much as they do for in-person viewings. “Your online impact is equal to your curb appeal impact,” says Aimee Flynn, instructor in The Art Institute of Raleigh-Durham’s department of Graphic Design and Interior Design. “In both instances, the way you package the product to entice a potential buyer is key.”

And knowing who that potential buyer may be can make a world of difference. “A common mistake is to assume that your home would appeal to everyone,” says John C. Franke, a General Education department instructor at The Art Institute of Pittsburgh. “People don’t usually think about their homes in this way, but by analyzing your neighborhood and your home’s unique appeal, you can pinpoint your target audience and market accordingly.”

“Whether you’re selling on your own or working with a realtor, keep in mind that you’re selling a dream — if someone can imagine his or her life unfolding in the images and descriptive text, you are one step closer to landing a successful showing,” Flynn adds.

Franke, who also has professional experience in retail buying and merchandising, and interior store design for various specialty department stores, says that the photographs used to promote your home mean everything. “Pictures must be professional-looking and include shots of landscaping, interior attributes such as laundry room, basement storage, garage and other unique selling points,” he says. “The home should appear to be bright, clean and appointed with fresh flowers or other notable accents to add style or seasonal flair.”

Here are some more pointers, provided by Flynn and Franke, when preparing your Internet home listing:

* Shop the competition: Research how others present their homes online locally and in other cities before you begin to develop your tactics. Good places to start are local real estate sites, www.realtor.com and www.craigslist.org.

* Seek professional help from within your social network: Don’t be intimidated by technology and don’t try to master what is outside your comfort zone. Web designers, photographers and other experts are probably living within your social network. Request their help.

* Sell the locality: Promote the city, school system, neighborhood parks, restaurants, etc. All of these things sell a quality of life and double as search engine buzzwords.

* List the address: Make sure you give very clear directions from main roads or intersections. This allows an interested party to check out the location of the home beforehand, which may weed out non-serious buyers.

* Highlight the property’s features: Mention any recent renovations, the number of bedrooms, if you have a fenced-in yard, and any unique offerings.

* Include detailed descriptions: List the square footage, individual room dimensions and property taxes or association fees, and post multiple images.

* Keep the price in a searchable range: For example, $999 a month for rent is better than $1,001. This practice seems to draw borderline buyers.

* Choose sites that organize listings by date: When you update the listing, any saved changes will bump up its positioning in the list.

* Seek viewer input: The only way to know what people are thinking about your home, your site or their interest in your property is to provide an easy way for browsers to offer feedback and to ask questions. Add a feedback form or email address to facilitate.

To learn more about The Art Institutes system of schools, visit www.artinstitutes.edu/nz.

Courtesy of ARAcontent