Ocean Trust Realty: Buyer/Seller Tips

Here are some Buyer/Seller Tips to consider when purchasing or selling
your Real Estate:

Common First-Time Home Buyer Mistakes

1. They don't ask enough questions of their lender and end up missing
out on the best deal.

2. They don't act quickly enough to make a decision and someone else
buys the house.

3. They don't find the right agent who's willing to help them through
the homebuying process.

4. They don't do enough to make their offer look appealing to a seller.

5. They don't think about resale before they buy. The average first-
time buyer only stays in a home for four years.

Source: Real Estate Checklists and Systems,
www.realestatechecklists.com.

Lender Checklist: What You Need for a Mortgage

□ W-2 forms - or business tax return forms if you're self-employed -
for the last two or three years for every person signing the loan.

□ Copies of at least one pay stub for each person signing the loan.

□ Account numbers of all your credit cards and the amounts for any
outstanding balances.

□ Copies of two to four months of bank or credit union statements for
both checking and savings accounts.

□ Lender, loan number, and amount owed on other installment loans,
such as student loans and car loans.

□ Addresses where you've lived for the last five to seven years, with
names of landlords if
appropriate.

□ Copies of brokerage account statements for two to four months, as
well as a list of any other major assets of value, such as a boat, RV,
or stocks or bonds not held in a brokerage account.

□ Copies of your most recent 401(k) or other retirement account
statement.

□ Documentation to verify additional income, such as child support or
a pension.

□ Copies of personal tax forms for the last two to three years.

Specialty Mortgages: Risks and Rewards

In high-priced housing markets, it can be difficult to afford a home.
That's why a growing number of home buyers are forgoing traditional
fixed-rate mortgages and standard adjustable-rate mortgages and
instead opting for a specialty mortgage that lets them "stretch" their
income so they can qualify for a larger loan.

But before you choose one of these mortgages, make sure you understand
the risks and how they work.

Specialty mortgages often begin with a low introductory interest rate
or payment plan - a "teaser"- but the monthly mortgage payments are
likely to increase a lot in the future. Some are "low documentation"
mortgages that come with easier standards for qualifying, but also
higher interest rates or higher fees. Some lenders will loan you 100
percent or more of the home's value, but these mortgages can present a
big financial risk if the value of the house drops.

Specialty Mortgages Can:

-- Pose a greater risk that you won't be able to afford the mortgage
payment in the future, compared to fixed rate mortgages and
traditional adjustable rate mortgages.

-- Have monthly payments that increase by as much as 50 percent or
more when the introductory period ends.

-- Cause your loan balance (the amount you still owe) to get larger
each month instead of smaller.

Common Types of Specialty Mortgages:

-- Interest-Only Mortgages: Your monthly mortgage payment only covers
the interest you owe on the loan for the first 5 to 10 years of the
loan, and you pay nothing to reduce the total amount you borrowed
(this is called the "principal"). After the interest-only period, you
start paying higher monthly payments that cover both the interest and
principal that must be repaid over the remaining term of the loan.

-- Negative Amortization Mortgages: Your monthly payment is less than
the amount of interest you owe on the loan. The unpaid interest gets
added to the loan's principal amount, causing the total amount you owe
to increase each month instead of getting smaller.

-- Option Payment ARM Mortgages: You have the option to make different
types of monthly payments with this mortgage. For example, you may
make a minimum payment that is less than the amount needed to cover
the interest and increases the total amount of your loan; an interest-
only payment, or payments calculated to pay off the loan over either
30 years or 15 years.

-- 40-Year Mortgages: You pay off your loan over 40 years, instead of
the usual 30 years. While this reduces your monthly payment and helps
you qualify to buy a home, you pay off the balance of your loan much
more slowly and end up paying much more interest.

Questions to Consider Before Choosing a Specialty Mortgage

-- How much can my monthly payments increase and how soon can these
increases happen?

-- Do I expect my income to increase or do I expect to move before my
payments go up?

-- Will I be able to afford the mortgage when the payments increase?

-- Am I paying down my loan balance each month, or is it staying the
same or even increasing?

-- Will I have to pay a penalty if I refinance my mortgage or sell my
house?

-- What is my goal in buying this property? Am I considering a riskier
mortgage to buy a more expensive house than I can realistically afford?

Be sure you work with a REALTOR® and lender who can discuss different
options and address your questions and concerns!

Learn about the NATIONAL ASSOCIATION OF REALTORS® Housing Opportunity
Program at www.REALTOR.org/housingopportunity. For more information on
predatory mortgage lending practices, visit the Center for Responsible
Lending at www.responsiblelending.org.

5 Factors That Decide Your Credit Score

Credit scores range between 200 and 800, with scores above 620
considered desirable for obtaining a mortgage. The following factors
affect your score:

1. Your payment history. Did you pay your credit card obligations on
time? If they were late, then how late? Bankruptcy filing, liens, and
collection activity also impact your history.

2. How much you owe. If you owe a great deal of money on numerous
accounts, it can indicate that you are overextended. However, it's a
good thing if you have a good proportion of balances to total credit
limits.

3. The length of your credit history. In general, the longer you have
had accounts opened, the better. The average consumer's oldest
obligation is 14 years old, indicating that he or she has been
managing credit for some time, according to Fair Isaac Corp., and only
one in 20 consumers have credit histories shorter than 2 years.

4. How much new credit you have. New credit, either installment
payments or new credit cards, are considered more risky, even if you
pay them promptly.

5. The types of credit you use. Generally, it's desirable to have more
than one type of credit - installment loans, credit cards, and a
mortgage, for example.

For more on evaluating and understanding your credit score, visit www.myfico.co

5 Property Tax Questions You Need to Ask

1. What is the assessed value of the property? Note that assessed
value is generally less than market value. Ask to see a recent copy of
the seller's tax bill to help you determine this information.

2. How often are properties reassessed, and when was the last
reassessment done? In general, taxes jump most significantly when a
property is reassessed.

3. Will the sale of the property trigger a tax increase? The assessed
value of the property may increase based on the amount you pay for the
property. And in some areas, such as California, taxes may be frozen
until resale.

4. Is the amount of taxes paid comparable to other properties in the
area? If not, it might be possible to appeal the tax assessment and
lower the rate.

5. Does the current tax bill reflect any special exemptions that I
might not qualify for? For example, many tax districts offer
reductions to those 65 or over.

6 Creative Ways to Afford a Home

1. Investigate local, state, and national down payment assistance
programs. These programs give qualified applicants loans or grants to
cover all or part of your required down payment. National programs
include the Nehemiah program, www.getdownpayment.com, and the American
Dream Down Payment Fund from the Department of Housing and Urban
Development, www.hud.gov.

2. Explore seller financing. In some cases, sellers may be willing to
finance all or part of the purchase price of the home and let you
repay them gradually, just as you would do with a mortgage.

3. Consider a shared-appreciation or shared-equity arrangement. Under
this arrangement, your family, friends, or even a third-party may buy
a portion of the home and share in any appreciation when the home is
sold. The owner/occupant usually pays the mortgage, property taxes,
and maintenance costs, but all the investors' names are usually on the
mortgage. Companies are available that can help you find such an
investor, if your family can't participate.

4. Ask your family for help. Perhaps a family member will loan you
money for the down payment or act as a co-signer for the mortgage.
Lenders often like to have a co-signer if you have little credit
history.

5. Lease with the option to buy. Renting the home for a year or more
will give you the chance to save more toward your down payment. And in
many cases, owners will apply some of the rental amount toward the
purchase price. You usually have to pay a small, nonrefundable option
fee to the owner.

6. Consider a short-term second mortgage. If you can qualify for a
short-term second mortgage, this would give you money to make a larger
down payment. This may be possible if you're in good financial
standing, with a strong income and little other debt.

8 Tips to Guide for Your Home Search

1. Research before you look. Decide what features you most want to
have in a home, what neighborhoods you prefer, and how much you'd be
willing to spend each month for housing.

2. Be realistic. It's OK to be picky, but don't be unrealistic with
your expectations. There's no such thing as a perfect home. Use your
list of priorities as a guide to evaluate each property.

3. Get your finances in order. Review your credit report and be sure
you have enough money to cover your down payment and closing costs.
Then, talk to a lender and get prequalified for a mortgage. This will
save you the heartache later of falling in love with a house you can't
afford.

4. Don't ask too many people for opinions. It will drive you crazy.
Select one or two people to turn to if you feel you need a second
opinion, but be ready to make the final decision on your own.

5. Decide your moving timeline. When is your lease up? Are you allowed
to sublet? How tight is the rental market in your area? All of these
factors will help you determine when you should move.

6. Think long term. Are you looking for a starter house with plans to
move up in a few years, or do you hope to stay in this home for a
longer period? This decision may dictate what type of home you'll buy
as well as the type of mortgage terms that will best suit you.

7. Insist on a home inspection. If possible, get a warranty from the
seller to cover defects for one year.

8. Get help from a REALTOR®. Hire a real estate professional who
specializes in buyer representation. Unlike a listing agent, whose
first duty is to the seller, a buyer's representative is working only
for you. Buyer's reps are usually paid out of the seller's commission
payment.

10 Questions to Ask Your Lender

1. What are the most popular mortgages you offer? Why are they so
popular?

2. Which type of mortgage plan do you think would be best for me? Why?

3. Are your rates, terms, fees, and closing costs negotiable?

4. Will I have to buy private mortgage insurance? If so, how much will
it cost, and how long will it be required? (NOTE: Private mortgage
insurance is usually required if your down payment is less than 20
percent. However, most lenders will let you discontinue PMI when
you've acquired a certain amount of equity by paying down the loan.)

5. Who will service the loan - your bank or another company?

6. What escrow requirements do you have?

7. How long will this loan be in a lock-in period (in other words, the
time that the quoted interest rate will be honored)? Will I be able to
obtain a lower rate if it drops during this period?

8. How long will the loan approval process take?

9. How long will it take to close the loan?

10. Are there any charges or penalties for prepaying the loan?

Used with permission from Real Estate Checklists & Systems, www.realestatechecklists.com
.

How Big of a Mortgage Can I Afford?

Not only does owning a home give you a haven for yourself and your
family, it also makes great financial sense because of the tax
benefits - which you can't take advantage of when paying rent.

The following calculation assumes a 28 percent income tax bracket. If
your bracket is higher, your savings will be, too. Based on your
current rent, use this calculation to figure out how much mortgage you
can afford.

Rent: _________________________

Multiplier: x 1.32

Mortgage payment: _________________________

Because of tax deductions, you can make a mortgage payment - including
taxes and insurance - that is approximately one-third larger than your
current rent payment and end up with the same amount of income.

For more help, use Fannie Mae's online mortgage calculators.

Loan Types to Consider

-- Mortgage terms. Mortgages are generally available at 15-, 20-, or
30-year terms. In general, the longer the term, the lower the monthly
payment. However, you pay more interest overall if you borrow for a
longer term.

-- Fixed or adjustable interest rates. A fixed rate allows you to lock
in a low rate as long as you hold the mortgage and, in general, is
usually a good choice if interest rates are low. An adjustable-rate
mortgage is designed so that your loan's interest rate will rise as
market interest rates increase. ARMs usually offer a lower rate in the
first years of the mortgage. ARMs also usually have a limit as to how
much the interest rate can be increased and how frequently they can be
raised. These types of mortgages are a good choice when fixed interest
rates are high or when you expect your income to grow significantly in
the coming years.

-- Balloon mortgages. These mortgages offer very low interest rates
for a short period of time - often three to seven years. Payments
usually cover only the interest so the principal owed is not reduced.
However, this type of loan may be a good choice if you think you will
sell your home in a few years.

-- Government-backed loans. These loans are sponsored by agencies such
as the Federal Housing Administration (www.fha.gov) or the Department
of Veterans Affairs (www.va.gov) and offer special terms, including
lower down payments or reduced interest rates to qualified buyers.

Slight variations in interest rates, loan amounts, and terms can
significantly affect your monthly payment. For help in determining how
much your monthly payment will be for various loan amounts, use Fannie
Mae's online mortgage calculators

Get Your Finances in Order: To-Do List

1. Develop a household budget. Instead of creating a budget of what
you'd like to spend, use receipts to create a budget that reflects
your actual spending habits over the last several months. This
approach will factor in unexpected expenses, such as car repairs, as
well as predictable costs such as rent, utility bills, and groceries.

2. Reduce your debt. Lenders generally look for a total debt load of
no more than 36 percent of income. This figure includes your mortgage,
which typically ranges between 25 and 28 percent of your net household
income. So you need to get monthly payments on the rest of your
installment debt - car loans, student loans, and revolving balances on
credit cards - down to between 8 and 10 percent of your net monthly
income.

3. Look for ways to save. You probably know how much you spend on rent
and utilities, but little expenses add up, too. Try writing down
everything you spend for one month. You'll probably spot some great
ways to save, whether it's cutting out that morning trip to Starbucks
or eating dinner at home more often.

4. Increase your income. Now's the time to ask for a raise! If that's
not an option, you may want to consider taking on a second job to get
your income at a level high enough to qualify for the home you want.

5. Save for a down payment. Designate a certain amount of money each
month to put away in your savings account. Although it's possible to
get a mortgage with only 5 percent down, or even less, you can usually
get a better rate if you put down a larger percentage of the total
purchase. Aim for a 20 percent down payment.

6. Keep your job. While you don't need to be in the same job forever
to qualify for a home loan, having a job for less than two years may
mean you have to pay a higher interest rate.

7. Establish a good credit history. Get a credit card and make
payments by the due date. Do the same for all your other bills, too.
Pay off the entire balance promptly.

Tax Benefits of Homeownership

The tax deductions you're eligible to take for mortgage interest and
property taxes greatly increase the financial benefits of
homeownership. Here's how it works.

Assume:

$9,877 = Mortgage interest paid (a loan of $150,000 for 30 years, at 7
percent, using year-five interest)
$2,700 = Property taxes (at 1.5 percent on $180,000 assessed value)
______

$12,577 = Total deduction

Then, multiply your total deduction by your tax rate.

For example, at a 28 percent tax rate: 12,577 x 0.28 = $3,521.56

$3,521.56 = Amount you have lowered your federal income tax (at 28
percent tax rate)

Note: Mortgage interest may not be deductible on loans over $1.1
million. In addition, deductions are decreased when total income
reaches a certain level.

Tips for Lowering Homeowner's Insurance Costs

1. Review the Comprehensive Loss Underwriting Exchange (CLUE) report
on the property you're interested in buying. CLUE reports detail the
property's claims history for the most recent five years, which
insurers may use to deny coverage. Make the sale contingent on a home
inspection to ensure that problems identified in the CLUE report have
been repaired.

2. Seek insurance coverage as soon as your offer is approved. You must
obtain insurance to buy. And you don't want to be told at closing that
the insurer has denied your coverage.

3. Maintain good credit. Insurers often use credit-based insurance
scores to determine premiums.

4. Buy your home owners and auto policies from the same company and
you'll usually qualify for savings. But make sure the discount really
yields the lowest price.

5. Raise your deductible. If you can afford to pay more toward a loss
that occurs, your premiums will be lower. Avoid making claims under
$1,000.

6. Ask about other discounts. For example, retirees who tend to be
home more than full-time workers may qualify for a discount on theft
insurance. You also may be able to obtain discounts for having smoke
detectors, a burglar alarm, or dead-bolt locks.

7. Seek group discounts. If you belong to any groups, such as
associations or alumni organizations, they may have deals on insurance
coverage.

8. Review your policy limits and the value of your home and
possessions annually. Some items depreciate and may not need as much
coverage.

9. Investigate a government-backed insurance plan. In some high-risk
areas, federal or state government may back plans to lower rates. Ask
your agent.

10. Be sure you insure your house for the correct amount. Remember,
you're covering replacement cost, not market value.

What You Can Do to Improve Your Credit

Credit scores, along with your overall income and debt, are big
factors in determining whether you'll qualify for a loan and what your
loan terms will be. So, keep your credit score high by doing the
following:

1. Check for and correct any errors in your credit report. Mistakes
happen, and you could be paying for someone else's poor financial
management.

2. Pay down credit card bills. If possible, pay off the entire balance
every month. Transferring credit card debt from one card to another
could lower your score.

3. Don't charge your credit cards to the maximum limit.

4. Wait 12 months after credit difficulties to apply for a mortgage.
You're penalized less for problems after a year.

5. Don't order items for your new home on credit - such as appliances
and furniture - until after the loan is approved. The amounts will add
to your debt.

6. Don't open new credit card accounts before applying for a mortgage.
Too much available credit can lower your score.

7. Shop for mortgage rates all at once. Too many credit applications
can lower your score, but multiple inquiries from the same type of
lender are counted as one inquiry if submitted over a short period of
time.

8. Avoid finance companies. Even if you pay the loan on time, the
interest is high and it will probably be considered a sign of poor
credit management.

This information is copyrighted by the Fannie Mae Foundation and is
used with permission of the Fannie Mae Foundation. To obtain a
complete copy of the publication, Knowing and Understanding Your
Credit, visit www.homebuyingguide.org

Your Property Wish List

What does your future home look like? Where is it located? As you hunt
down your dream home, consult this list to evaluate properties and
keep your priorities top of mind.

□ Neighborhoods

What neighborhoods do you prefer?

□ Schools

What school systems do you want to be near?

□ Transportation

How close must the home be to these amenities:

-- Public transportation
-- Airport
-- Expressway
-- Neighborhood shopping

-- Schools

-- Other

□ Home Style

-- What architectural style(s) of homes do you prefer?

-- Do you want to buy a home, condominium, or townhome?

-- Would you like a one-story or two-story home?

-- How many bedrooms must your new home have?

-- How many bathrooms must your new home have?

□ Home Condition

-- Do you prefer a new home or an existing home?

-- If you're looking for an existing home, how old of a home would you
consider?

-- How much repair or renovation would you be willing to do?

-- Do you have special needs that your home must meet?

□ Home Features

Please circle one of the choices: Must Have, Would Like, Willing to
Compromise, Not Important

Front yard Must Have Would Like Willing to Compromise Not Important

Back yard Must Have Would Like Willing to Compromise Not Important

Garage ( __ cars) Must Have Would Like Willing to Compromise Not
Important

Patio/Deck Must Have Would Like Willing to Compromise Not Important

Pool Must Have Would Like Willing to Compromise Not Important

Family room Must Have Would Like Willing to Compromise Not Important

Formal living room Must Have Would Like Willing to Compromise Not
Important

Formal dining room Must Have Would Like Willing to Compromise Not
Important

Eat-in kitchen Must Have Would Like Willing to Compromise Not Important

Laundry room Must Have Would Like Willing to Compromise Not Important

Finished basement Must Have Would Like Willing to Compromise Not
Important

Attic Must Have Would Like Willing to Compromise Not Important

Fireplace Must Have Would Like Willing to Compromise Not Important

Spa in bath Must Have Would Like Willing to Compromise Not Important

Air conditioning Must Have Would Like Willing to Compromise Not
Important

Wall-to-wall carpet Must Have Would Like Willing to Compromise Not
Important

Wood floors Must Have Would Like Willing to Compromise Not Important

Great view Must Have Would Like Willing to Compromise Not Important

5 Things to Know About Homeowner's Insurance

1. Know about exclusions to coverage. For example, most insurance
policies do not cover flood or earthquake damage as a standard item.
These types of coverage must be bought separately.

2. Know about dollar limitations on claims. Even if you are covered
for a risk, there may be a limit on how much the insurer will pay. For
example, many policies limit the amount paid for stolen jewelry unless
items are insured separately.

3. Know the replacement cost. If your home is destroyed you'll receive
money to replace it only to the maximum of your coverage, so be sure
your insurance is sufficient. This means that if your home is insured
for $150,000 and it costs $180,000 to replace it, you'll only receive
$150,000.

4. Know the actual cash value. If you chose not to replace your home
when it's destroyed, you'll receive replacement cost, less
depreciation. This is called actual cash value.

5. Know the liability. Generally your homeowner's insurance covers you
for accidents that happen to other people on your property, including
medical care, court costs, and awards by the court. However, there is
usually an upper limit to the amount of coverage provided. Be sure
that it's sufficient if you have significant assets.

5 Things to Know About Title Insurance

Title insurance protects the holder from any losses sustained from
defects in the title. It's required by most mortgage lenders. Here are
five other things you should know about title insurance.

1. It protects your ownership right to your home, both from fraudulent
claims against your ownership and from mistakes made in earlier sales,
such as mistake in the spelling of a person's name or an inaccurate
description of the property.

2. It's a one-time cost usually based on the price of the property.

3. It's usually paid for by the sellers, although this can vary
depending on your state and local customs.

4. There are both lender title policies, which protect the lender, and
owner title policies, which protect you. The lender will probably
require a lender policy.

5. Discounts on premiums are sometimes available if the home has been
bought within only a few years since not as much work is required to
check the title. Ask the title company if this discount is available.

7 Reasons to Own Your Home

1. Tax breaks. The U.S. Tax Code lets you deduct the interest you pay
on your mortgage, your property taxes, as well as some of the costs
involved in buying your home.

2. Appreciation. Real estate has long-term, stable growth in value.
While year-to-year fluctuations are normal, median existing-home sale
prices have increased on average 6.5 percent each year from 1972
through 2005, and increased 88.5 percent over the last 10 years,
according to the NATIONAL ASSOCIATION OF REALTORS®. In addition, the
number of U.S. households is expected to rise 15 percent over the next
decade, creating continued high demand for housing.

3. Equity. Money paid for rent is money that you'll never see again,
but mortgage payments let you build equity ownership interest in your
home.

4. Savings. Building equity in your home is a ready-made savings plan.
And when you sell, you can generally take up to $250,000 ($500,000 for
a married couple) as gain without owing any federal income tax.

5. Predictability. Unlike rent, your fixed-mortgage payments don't
rise over the years so your housing costs may actually decline as you
own the home longer. However, keep in mind that property taxes and
insurance costs will increase.

6. Freedom. The home is yours. You can decorate any way you want and
benefit from your investment for as long as you own the home.

7. Stability. Remaining in one neighborhood for several years gives
you a chance to participate in community activities, lets you and your
family establish lasting friendships, and offers your children the
benefit of educational continuity.

Online resources: To calculate whether buying is the best financial
option for you, use the "Buy vs. Rent" calculator at www.GinnieMae.gov.

10 Questions to Ask Home Inspectors

Before you make your final buying or selling decision, you should have
the home inspected by a professional. An inspection can alert you to
potential problems with a property and allow you to make an informed
decision. Ask these questions to prospective home inspectors:

1. Will your inspection meet recognized standards? Ask whether the
inspection and the inspection report will meet all state requirements
and comply with a well-recognized standard of practice and code of
ethics, such as the one adopted by the American Society of Home
Inspectors or the National Association of Home Inspectors. Customers
can view each group's standards of practice and code of ethics online
at www.ashi.org or www.nahi.org. ASHI's Web site also provides a
database of state regulations.

2. Do you belong to a professional home inspector association? There
are many state and national associations for home inspectors,
including the two groups mentioned in No. 1. Unfortunately, some
groups confer questionable credentials or certifications in return for
nothing more than a fee. Insist on members of reputable, nonprofit
trade organizations; request to see a membership ID.

3. How experienced are you? Ask how long inspectors have been in the
profession and how many inspections they've completed. They should
provide customer referrals on request. New inspectors also may be
highly qualified, but they should describe their training and let you
know whether they plan to work with a more experienced partner.

4. How do you keep your expertise up to date? Inspectors' commitment
to continuing education is a good measure of their professionalism and
service. Advanced knowledge is especially important in cases in which
a home is older or includes unique elements requiring additional or
updated training.

5. Do you focus on residential inspection? Make sure the inspector has
training and experience in the unique discipline of home inspection,
which is very different from inspecting commercial buildings or a
construction site. If your customers are buying a unique property,
such as a historic home, they may want to ask whether the inspector
has experience with that type of property in particular.

6. Will you offer to do repairs or improvements? Some state laws and
trade associations allow the inspector to provide repair work on
problems uncovered during the inspection. However, other states and
associations forbid it as a conflict of interest. Contact your local
ASHI chapter to learn about the rules in your state.

7. How long will the inspection take? On average, an inspector working
alone inspects a typical single-family house in two to three hours;
anything significantly less may not be thorough. If your customers are
purchasing an especially large property, they may want to ask whether
additional inspectors will be brought in.

8. What's the cost? Costs can vary dramatically, depending on your
region, the size and age of the house, and the scope of services. The
national average for single-family homes is about $320, but customers
with large homes can expect to pay more. Customers should be wary of
deals that seem too good to be true.

9. What type of inspection report do you provide? Ask to see samples
to determine whether you will understand the inspector's reporting
style. Also, most inspectors provide their full report within 24 hours
of the inspection.

10. Will I be able to attend the inspection? The answer should be yes.
A home inspection is a valuable educational opportunity for the buyer.
An inspector's refusal to let the buyer attend should raise a red flag.

Source: Rob Paterkiewicz, executive director, American Society of Home
Inspectors, Des Plaines, Ill., www.ashi.org.

10 Questions to Ask the Condo Board

Before you buy, contact the condo board with the following questions.
In the process, you'll learn how responsive - and organized - its
members are. You'll also be alerted to potential problems with the
property.

1. What percentage of units is owner-occupied? What percentage is
tenant-occupied? Generally, the higher the percentage of owner-
occupied units, the more marketable the units will be at resale.

2. What covenants, bylaws, and restrictions govern the property? What
grandfather clauses are in place? You may find, for instance, that
those who buy a property after a certain date can't rent out their
units, but buyers who bought earlier can. Ask for a copy of the bylaws
to determine if you can live within them. And have an attorney review
property docs, including the master deed, for you.

3. How much does the association keep in reserve? Plus, find out how
that money is being invested.

4. Are association assessments keeping pace with the annual rate of
inflation? Smart boards raise assessments a certain percentage each
year to build reserves to fund future repairs. To determine if the
assessment is reasonable, compare the rate to others in the area.

5. What does and doesn't the assessment cover? Does the assessment
include common-area maintenance, recreational facilities, trash
collection, and snow removal?

6. What special assessments have been mandated in the past five years?
How much was each owner responsible for? Some special assessments are
unavoidable. But repeated, expensive assessments could be a red flag
about the condition of the building or the board's fiscal policy.

7. How much turnover occurs in the building? This will tell you if
residents are generally happy with the building. According to research
by the NATIONAL ASSOCIATION OF REALTORS®, owners of condos in two-to-
four unit buildings stay for a median of five years, and owners of
condos in a building with five or more units stay for a median of four
years.

8. Is the condo building in litigation? This is never a good sign. If
the builders or home owners are involved in a lawsuit, reserves can be
depleted quickly.

9. Is the developer reputable? Find out what other projects the
developer has built and visit one if you can. Ask residents about
their perceptions. Request an engineer's report for developments that
have been reconverted from other uses to determine what shape the
building is in. If the roof, windows, and bricks aren't in good
repair, they become your problem once you buy.

10. Are multiple associations involved in the property? In very large
developments, umbrella associations, as well as the smaller
association into which you're buying, may require separate assessments.

17 Tips for Packing Like a Pro

Moving to a new home can be stressful, to say the least. Make it easy
on yourself by planning far in advance and making sure you've covered
all the bases.

1. Plan ahead by organizing and budgeting. Develop a master "to do"
list so you won't forget something critical on moving day, and create
an estimate of moving costs. (A moving calculator is available at
REALTOR.com)

2. Sort and get rid of things you no longer want or need. Have a
garage sale, donate to a charity, or recycle.

3. But don't throw out everything. If your inclination is to just toss
it, you're probably right. However, it's possible to go overboard in
the heat of the moment. Ask yourself how frequently you use an item
and how you'd feel if you no longer had it. That will eliminate
regrets after the move.

4. Pack similar items together. Put toys with toys, kitchen utensils
with kitchen utensils. It will make your life easier when it's time to
unpack.

5. Decide what, if anything, you plan to move on your own. Precious
items such as family photos, valuable breakables, or must-haves during
the move should probably stay with you. Don't forget to keep a
"necessities" bag with tissues, snacks, and other items you'll need
that day.

6. Remember, most movers won't take plants. If you don't want to leave
them behind, you should plan on moving them yourself.

7. Use the right box for the item. Loose items are prone to breakage.

8. Put heavy items in small boxes so they're easier to lift. Keep the
weight of each box under 50 pounds, if possible.

9. Don't over-pack boxes. It increases the likelihood that items
inside the box will break.

10. Wrap every fragile item separately and pad bottom and sides of
boxes. If necessary, purchase bubble-wrap or other packing materials
from moving stores.

11. Label every box on all sides. You never know how they'll be
stacked and you don't want to have to move other boxes aside to find
out what's there.

12. Use color-coded labels to indicate which room each item should go
in. Color-code a floor plan for your new house to help movers.

13. Keep your moving documents together in a file. Include important
phone numbers, driver's name, and moving van number. Also keep your
address book handy.

14. Print out a map and directions for movers. Make several copies,
and highlight the route. Include your cell phone number on the map.
You don't want movers to get lost! Also make copies for friends or
family who are lending a hand on moving day.

15. Back up your computer files before moving your computer. Keep the
backup in a safe place, preferably at an off-site location.

16. Inspect each box and all furniture for damage as soon as it arrives.

17. Make arrangements for small children and pets. Moving can be
stressful and emotional. Kids can help organize their things and pack
boxes ahead of time, but, if possible, it might be best to spare them
from the moving-day madness.

Closing Documents You Should Keep

On closing day, expect to sign a lot of documents and walk away with a
big stack of papers. Here's a list of the most important documents you
should file away for future reference.

HUD-1 settlement statement. Itemizes all the costs - commissions, loan
fees, points, and hazard insurance -associated with the closing.
You'll need it for income tax purposes if you paid points.

Truth in Lending statement. Summarizes the terms of your mortgage
loan, including the annual percentage rate and recision period.

Mortgage and note. Spell out the legal terms of your mortgage
obligation and the agreed-upon repayment terms.

Deed. Transfers ownership to you.

Affidavits. Binding statements by either party. For example, the
sellers will often sign an affidavit stating that they haven't
incurred any liens.

Riders. Amendments to the sales contract that affect your rights.
Example: The sellers won't move out until two weeks after closing but
will pay rent to the buyers during that period.

Insurance policies. Provide a record and proof of your coverage.

Sources: Credit Union National Association; Mortgage Bankers
Association; Home-Buyer's Guide (Real Estate Center at Texas A&M, 2000)

Common Closing Costs for Buyers

You'll likely be responsible for a variety of fees and expenses that
you and the seller will have to pay at the time of closing. Your
lender must provide a good-faith estimate of all settlement costs. The
title company or other entity conducting the closing will tell you the
required amount for:

A: Down payment

A: Loan origination

A: Points, or loan discount fees, which you pay to receive a lower
interest rate

A: Home inspection

A: Appraisal

A: Credit report

A: Private mortgage insurance premium

A: Insurance escrow for homeowner's insurance, if being paid as part
of the mortgage

A: Property tax escrow, if being paid as part of the mortgage. Lenders
keep funds for taxes and insurance in escrow accounts as they are paid
with the mortgage, then pay the insurance or taxes for you.

A: Deed recording

A: Title insurance policy premiums

A: Land survey

A: Notary fees

A: Prorations for your share of costs, such as utility bills and
property taxes

A Note About Prorations: Because such costs are usually paid on either
a monthly or yearly basis, you might have to pay a bill for services
used by the sellers before they moved. Proration is a way for the
sellers to pay you back or for you to pay them for bills they may have
paid in advance. For example, the gas company usually sends a bill
each month for the gas used during the previous month. But assume you
buy the home on the 6th of the month. You would owe the gas company
for only the days from the 6th to the end for the month. The seller
would owe for the first five days. The bill would be prorated for the
number of days in the month, and then each person would be responsible
for the days of his or her ownership.

How High Tech Home is Your Home?

If the latest technology or entertainment options are important in
your new home, add the following questions to your buyer's checklist.

1. Are there enough jacks in every room for cable TV and high-speed
Internet hookups?

2. Are there ample telephone extensions or jacks?

3. Is the home pre-wired for home theater or multiroom audio and
video? Does it have in-wall speakers?

4. Does the home have a local area network (LAN) for linking computers?

5. Does the home already have wiring for DSL or another high-speed
Internet connection?

6. Does the home have multizoning heating and cooling controls with
programmable thermostats?

7. Does the home have multiroom lighting controls, window-covering
controls, or other home automation features?

8. Is the home wired with multipurpose in-wall wiring that allows for
reconfigurations to update services as technology changes?

To rate the home on its technological sophistication, fill out the
Consumer Electronics Association's TechHome checklist at www.ce.org/techhomerating
.

Pros and Cons of Going Condo

Condominiums and townhouses offer an affordable option to single-
family homes in many markets, and they're ideal for those who
appreciate a maintenance-free lifestyle. But before you buy, make sure
you do your legwork. These are some of the important elements to
consider:

-- Storage. Some condos have storage lockers, but usually there are no
attics or basements to hold extra belongings.

-- Outdoor space. Yards and outdoor areas are usually smaller in
condos, so if you like to garden or entertain outdoors, this may not
be a good fit. However, if you dread yard work, this may be the
perfect option for you.

-- Amenities. Many condo properties have swimming pools, fitness
centers, and other facilities that would be very expensive in a single-
family home.

-- Maintenance. Many condos have onsite maintenance personnel to care
for common areas, do repairs in your unit, and let in workers when
you're not home - good news if you like to travel.

-- Security. Keyed entries and even doormen are common in many condos.
You're also closer to other people in case of an emergency.

-- Reserve funds and association fees. Although fees generally help
pay for amenities and provide savings for future repairs, you will
have to pay the fees decided by the condo board, whether or not you're
interested in the amenity.

-- Resale. The ease of selling your unit may be dependent on what else
is for sale in your building, since units are usually fairly similar.

-- Condo rules. Although you have a vote, the rules of the condo
association can affect your ability to use your property. For example,
some condos prohibit home-based businesses. Others prohibit pets, or
don't allow owners to rent out their units. Read the covenants,
restrictions, and bylaws of the condo carefully before you make an
offer.

-- Neighbors. You're much closer to your neighbors in a condo or town
home. If possible, try to meet your closest prospective neighbors.

Questions to Ask When Choosing a REALTOR®

Make sure you choose a REALTOR® who will provide top-notch service and
meet your unique needs.

1. How long have you been in residential real estate sales? Is it your
full-time job? While experience is no guarantee of skill, real estate
- like many other professions - is mostly learned on the job.

2. What designations do you hold? Designations such as GRI and CRS® -
which require that agents take additional, specialized real estate
training - are held by only about one-quarter of real estate
practitioners.

3. How many homes did you and your real estate brokerage sell last
year? By asking this question, you'll get a good idea of how much
experience the practitioner has.

4. How many days did it take you to sell the average home? How did
that compare to the overall market?

The REALTOR® you interview should have these facts on hand, and be
able to present market statistics from the local MLS to provide a
comparison.

5. How close to the initial asking prices of the homes you sold were
the final sale prices? This is one indication of how skilled the
REALTOR® is at pricing homes and marketing to suitable buyers. Of
course, other factors also may be at play, including an exceptionally
hot or cool real estate market.

6. What types of specific marketing systems and approaches will you
use to sell my home? You don't want someone who's going to put a For
Sale sign in the yard and hope for the best. Look for someone who has
aggressive and innovative approaches, and knows how to market your
property competitively on the Internet. Buyers today want information
fast, so it's important that your REALTOR® is responsive.

7. Will you represent me exclusively, or will you represent both the
buyer and the seller in the transaction? While it's usually legal to
represent both parties in a transaction, it's important to understand
where the practitioner's obligations lie. Your REALTOR® should explain
his or her agency relationship to you and describe the rights of each
party.

8. Can you recommend service providers who can help me obtain a
mortgage, make home repairs, and help with other things I need done?
Because REALTORS® are immersed in the industry, they're wonderful
resources as you seek lenders, home improvement companies, and other
home service providers. Practitioners should generally recommend more
than one provider and let you know if they have any special
relationship with or receive compensation from any of the providers.

9. What type of support and supervision does your brokerage office
provide to you? Having resources such as in-house support staff,
access to a real estate attorney, and assistance with technology can
help an agent sell your home.

10. What's your business philosophy? While there's no right answer to
this question, the response will help you assess what's important to
the agent and determine how closely the agent's goals and business
emphasis mesh with your own.

11. How will you keep me informed about the progress of my
transaction? How frequently? Again, this is not a question with a
correct answer, but it reflects your desires. Do you want updates
twice a week or do you not want to be bothered unless there's a hot
prospect? Do you prefer phone, e-mail, or a personal visit?

12. Could you please give me the names and phone numbers of your three
most recent clients?

Ask recent clients if they would work with this REALTOR® again. Find
out whether they were pleased with the communication style, follow-up,
and work ethic of the REALTOR®.

Take the Stress Out of Homebuying

Buying a home should be fun, not stressful. As you look for your dream
home, keep in mind these tips for making the process as peaceful as
possible.

1. Find a real estate agent who you connect with. Home buying is not
only a big financial commitment, but also an emotional one. It's
critical that the REALTOR® you chose is both highly skilled and a good
fit with your personality.

2. Remember, there's no "right" time to buy, just as there's no
perfect time to sell. If you find a home now, don't try to second-
guess interest rates or the housing market by waiting longer - you
risk losing out on the home of your dreams. The housing market usually
doesn't change fast enough to make that much difference in price, and
a good home won't stay on the market long.

3. Don't ask for too many opinions. It's natural to want reassurance
for such a big decision, but too many ideas from too many people will
make it much harder to make a decision. Focus on the wants and needs
of your immediate family - the people who will be living in the home.

4. Accept that no house is ever perfect. If it's in the right
location, the yard may be a bit smaller than you had hoped. The
kitchen may be perfect, but the roof needs repair. Make a list of your
top priorities and focus in on things that are most important to you.
Let the minor ones go.

5. Don't try to be a killer negotiator. Negotiation is definitely a
part of the real estate process, but trying to "win" by getting an
extra-low price or by refusing to budge on your offer may cost you the
home you love. Negotiation is give and take.

6. Remember your home doesn't exist in a vacuum. Don't get so caught
up in the physical aspects of the house itself - room size, kitchen,
etc. - that you forget about important issues as noise level, location
to amenities, and other aspects that also have a big impact on your
quality of life.

7. Plan ahead. Don't wait until you've found a home and made an offer
to get approved for a mortgage, investigate home insurance, and
consider a schedule for moving. Presenting an offer contingent on a
lot of unresolved issues will make your bid much less attractive to
sellers.

8. Factor in maintenance and repair costs in your post-home buying
budget. Even if you buy a new home, there will be costs. Don't leave
yourself short and let your home deteriorate.

9. Accept that a little buyer's remorse is inevitable and will
probably pass. Buying a home, especially for the first time, is a big
financial commitment. But it also yields big benefits. Don't lose
sight of why you wanted to buy a home and what made you fall in love
with the property you purchased.

10. Choose a home first because you love it; then think about
appreciation. While U.S. homes have appreciated an average of 5.4
percent annually over from 1998 to 2002, a home's most important role
is to serve as a comfortable, safe place to live.

Tips for Buying in a Tight Market

Increase your chances of getting your dream house in a competitive
housing market, and lower your chances of losing out to another buyer.

1. Get prequalified for a mortgage. You'll be able to make a firm
commitment to buy and your offer will be more desirable to the seller.

2. Stay in close contact with your real estate agent to find out about
the newest listings. Be ready to see a house as soon as it goes on the
market - if it's a great home, it will go fast.

3. Scout out new listings yourself. Look at Web sites such as
REALTOR.com, browse your local newspaper's real estate section, and
drive through the neighborhood to spot For Sale signs. If you see a
home you like, write down the address and the name of the listing
agent. Your real estate agent will schedule a showing.

4. Be ready to make a decision. Spend a lot of time in advance
deciding what you must have in a home so you won't be unsure when you
have the chance to make an offer.

5. Bid competitively. You may not want to start out offering the
absolute highest price you can afford, but don't go too low to get a
deal. In a tight market, you'll lose out.

6. Keep contingencies to a minimum. Restrictions such as needing to
sell your home before you move or wanting to delay the closing until a
certain date can make your offer unappealing. In a tight market,
you'll probably be able to sell your house rapidly. Or talk to your
lender about getting a bridge loan to cover both mortgages for a short
period.

7. Don't get caught in a buying frenzy. Just because there's
competition doesn't mean you should just buy it. And even though you
want to make your offer attractive, don't neglect inspections that
help ensure that your house is sound.

Tips for Finding the Perfect Neighborhood

Your neighborhood has a big impact on your lifestyle. Follow these
steps to find the perfect community to call home.

-- Is it close to your favorite spots? Make a list of the activities -
movies, health club, church, etc. - you engage in regularly and stores
you visit frequently. See how far you would have to travel from each
neighborhood you're considering to engage in your most common
activities.

-- Check out the school district. This is especially important if you
have children, but it also can affect resale value. The Department of
Education in your town can probably provide information on test
scores, class size, percentage of students who attend college, and
special enrichment programs. If you have school-age children, visit
schools in the neighborhoods you're considering. Also, check out www.schoolmatters.com
.

-- Find out if the neighborhood is safe. Ask the police department for
neighborhood crime statistics. Consider not only the number of crimes
but also the type - such as burglaries or armed robberies - and the
trend of increasing or decreasing crime. Also, is crime centered in
only one part of the neighborhood, such as near a retail area?

-- Determine if the neighborhood is economically stable. Check with
your local city economic development office to see if income and
property values in the neighborhood are stable or rising. What is the
percentage of homes to apartments? Apartments don't necessarily
diminish value, but do mean a more transient population. Do you see
vacant businesses or homes that have been for sale for months?

-- See if you'll make money. Ask a local REALTOR® or call the local
REALTOR® association to get information about price appreciation in
the neighborhood. Although past performance is no guarantee of future
results, this information may give you a sense of how good of an
investment your home will be. A REALTOR® or the government planning
agency also may be able to tell you about planned developments or
other changes in the neighborhood - like a new school or highway -
that might affect value.

-- Make personal observations. Once you've narrowed your focus to two
or three neighborhoods, go there and walk around. Are homes tidy and
well maintained? Are streets quiet? How does it feel? Pick a warm day
if you can and chat with people working or playing outside.

What a Home Inspection Should Cover

Home inspections will vary depending on the type of property you are
purchasing. A large historic home, for example, will require a more
specialized inspection than a small condominium. However, the
following are the basic elements that a home inspector will check. You
can also use this list to help you evaluate properties you might
purchase.

For more information, try the virtual home inspection at www.ASHI.org,
the Web site of the American Society of Home Inspectors.

Structure: A home's skeleton impacts how the property stands up to
weather, gravity, and the earth. Structural components, including the
foundation and the framing, should be inspected.

Exterior: The inspector should look at sidewalks, driveways, steps,
windows, and doors. A home's siding, trim, and surface drainage also
are part of an exterior inspection.

-- Doors and windows

-- Siding (brick, stone, stucco, vinyl, wood, etc.)

-- Driveways/sidewalks

-- Attached porches, decks, and balconies

Roofing: A well-maintained roof protects you from rain, snow, and
other forces of nature. Take note of the roof's age, conditions of
flashing, roof draining systems (pooling water), buckled shingles,
loose gutters and downspouts, skylight, and chimneys.

Plumbing: Thoroughly examine the water supply and drainage systems,
water heating equipment, and fuel storage systems. Drainage pumps and
sump pumps also fall under this category. Poor water pressure, banging
pipes, rust spots, or corrosion can indicate problems.

Electrical: Safe electrical wiring is essential. Look for the
condition of service entrance wires, service panels, breakers and
fuses, and disconnects. Also take note of the number of outlets in
each room.

Heating: The home's heating system, vent system, flues, and chimneys
should be inspected. Look for age of water heater, whether the size is
adequate for the house, speed of recovery, and energy rating.

Air Conditioning: Your inspector should describe your home cooling
system, its energy source, and inspect the central and through-wall
cooling equipment. Consider the age and energy rating of the system.

Interiors: An inspection of the inside of the home can reveal plumbing
leaks, insect damage, rot, construction defects, and other issues. An
inspector should take a close look at:

-- Walls, ceilings and floors

-- Steps, stairways, and railings

-- Countertops and cabinets

-- Garage doors and garage door systems

Ventilation/insulation: To prevent energy loss, check for adequate
insulation and ventilation in the attic and in unfinished areas such
as crawlspaces. Also look for proper, secured insulation in walls.
Insulation should be appropriate for the climate. Excess moisture in
the home can lead to mold and water damage.

Fireplaces: They're charming, but they could be dangerous if not
properly installed. Inspectors should examine the system, including
the vent and flue, and describe solid fuel burning appliances.

Source: American Society of Home Inspectors (www.AHSI.org)

What Not to Overlook on a Final Walk-through

It's guaranteed to be hectic right before closing, but you should
always make time for a final walk-through. Your goal is to make sure
that your home is in the same condition you expected it would be.
Ideally, the sellers already have moved out. This is your last chance
to check that appliances are in working condition and that agreed-upon
repairs have been made. Here's a detailed list of what not to overlook
for on your final walk-through.

Make sure that:

A: Repairs you've requested have been made. Obtain copies of paid
bills and warranties.

A: There are no major changes to the property since you last viewed it.

A: All items that were included in the sale price - draperies,
lighting fixtures, etc. - are still there.

A: Screens and storm windows are in place or stored.

A: All appliances are operating, such as the dishwasher, washer and
dryer, oven, etc.

A: Intercom, doorbell, and alarm are operational.

A: Hot water heater is working.

A: No plants or shrubs have been removed from the yard.

A: Heating and air conditioning system is working

A: Garage door opener and other remotes are available.

A: Instruction books and warranties on appliances and fixtures are
available.

A: All personal items of the sellers and all debris have been removed.
Check the basement, attic, and every room, closet, and crawlspace.

What's a Home Warranty?

A home warranty is a service contract, normally for one year, which
helps protect home owners against the cost of unexpected covered
repairs or replacement on their major systems and appliances that
break down due to normal wear and tear. Coverage is for systems and
appliances in good working order at the start of the contract.

Check your home warranty policy to see which of the following items
are covered. Also find out if the policy covers the full replacement
cost of an item.

-- Plumbing

-- Electrical systems

-- Furnace

-- Water heater

-- Heating ducts

-- Water pump

-- Dishwasher

-- Garbage disposal

-- Stove/cooktop/ovens

-- Microwave

-- Refrigerator

-- Washer/dryer

-- Swimming pool (may be optional)

Source: American Home Shield, www.ahswarranty.com, REALTOR® Benefits
Partner

Why You Should Work With a REALTOR®

Not all real estate practitioners are REALTORS®. The term REALTOR® is
a registered trademark that identifies a real estate professional who
is a member of the NATIONAL ASSOCIATION of REALTORS® and subscribes to
its strict Code of Ethics. Here are five reasons why it pays to work
with a REALTOR®.

1. You'll have an expert to guide you through the process. Buying or
selling a home usually requires disclosure forms, inspection reports,
mortgage documents, insurance policies, deeds, and multi-page
settlement statements. A knowledgeable expert will help you prepare
the best deal, and avoid delays or costly mistakes.

2. Get objective information and opinions. REALTORS® can provide local
community information on utilities, zoning, schools, and more. They'll
also be able to provide objective information about each property. A
professional will be able to help you answer these two important
questions: Will the property provide the environment I want for a home
or investment? Second, will the property have resale value when I am
ready to sell?

3. Find the best property out there. Sometimes the property you are
seeking is available but not actively advertised in the market, and it
will take some investigation by your REALTOR® to find all available
properties.

4. Benefit from their negotiating experience. There are many
negotiating factors, including but not limited to price, financing,
terms, date of possession, and inclusion or exclusion of repairs,
furnishings, or equipment. In addition, the purchase agreement should
provide a period of time for you to complete appropriate inspections
and investigations of the property before you are bound to complete
the purchase. Your agent can advise you as to which investigations and
inspections are recommended or required.

5. Property marketing power. Real estate doesn't sell due to
advertising alone. In fact, a large share of real estate sales comes
as the result of a practitioner's contacts through previous clients,
referrals, friends, and family. When a property is marketed with the
help of a REALTOR®, you do not have to allow strangers into your home.
Your REALTOR® will generally prescreen and accompany qualified
prospects through your property.

6. Real estate has its own language. If you don't know a CMA from a
PUD, you can understand why it's important to work with a professional
who is immersed in the industry and knows the real estate language.

7. REALTORS® have done it before. Most people buy and sell only a few
homes in a lifetime, usually with quite a few years in between each
purchase. And even if you've done it before, laws and regulations
change. REALTORS®, on the other hand, handle hundreds of real estate
transactions over the course of their career. Having an expert on your
side is critical.

8. Buying and selling is emotional. A home often symbolizes family,
rest, and security - it's not just four walls and a roof. Because of
this, home buying and selling can be an emotional undertaking. And for
most people, a home is the biggest purchase they'll ever make. Having
a concerned, but objective, third party helps you stay focused on both
the emotional and financial issues most important to you.

9. Ethical treatment. Every member of the NATIONAL ASSOCIATION of
REALTORS® makes a commitment to adhere to a strict Code of Ethics,
which is based on professionalism and protection of the public. As a
customer of a REALTOR®, you can expect honest and ethical treatment in
all transaction-related matters. It is mandatory for REALTORS® to take
the Code of Ethics orientation and they are also required to complete
a refresher course every four years.

Seller Tips:

5 Feng Shui Concepts to Help a Home Sell

To put the best face on a listing and appeal to buyers who follow feng
shui principles, keep these tips in mind.

1. Pay special attention to the front door, which is considered the
"mouth of chi" (chi is the "life force" of all things) and one of the
most powerful aspects of the entire property. Abundance, blessings,
opportunities, and good fortune enter through the front door. It's
also the first impression buyers have of how well the sellers have
taken care of the rest of the property. Make sure the area around the
front door is swept clean, free of cobwebs and clutter. Make sure all
lighting is straight and properly hung. Better yet, light the path
leading up to the front door to create an inviting atmosphere.

2. Chi energy can be flushed away wherever there are drains in the
home. To keep the good forces of a home in, always keep the toilet
seats down and close the doors to bathrooms.

3. The master bed should be in a place of honor, power, and
protection, which is farthest from and facing toward the entryway of
the room. It's even better if you can place the bed diagonally in the
farthest corner. Paint the room in colors that promote serenity,
relaxation, and romance, such as soft tones of green, blue, and
lavender.

4. The dining room symbolizes the energy and power of family
togetherness. Make sure the table is clear and uncluttered during
showings. Use an attractive tablecloth to enhance the look of the
table while also softening sharp corners.

5. The windows are considered to be the eyes of the home. Getting the
windows professionally cleaned will make the home sparkle and ensure
that the view will be optimally displayed.

Source: Sell Your Home Faster With Feng Shui by Holly Ziegler (Dragon
Chi Publications, 2001)

5 Things to do Before Putting Your Home on the Market

1. Have a pre-sale home inspection. Be proactive by arranging for a
pre-sale home inspection. An inspector will be able to give you a good
indication of the trouble areas that will stand out to potential
buyers, and you'll be able to make repairs before open houses begin.

2. Organize and clean. Pare down clutter and pack up your least-used
items, such as large blenders and other kitchen tools, out-of-season
clothes, toys, and exercise equipment. Store items off-site or in
boxes neatly arranged in the garage or basement. Clean the windows,
carpets, walls, lighting fixtures, and baseboards to make the house
shine.

3. Get replacement estimates. Do you have big-ticket items that are
worn our or will need to be replaced soon, such your roof or
carpeting? Get estimates on how much it would cost to replace them,
even if you don't plan to do it yourself. The figures will help buyers
determine if they can afford the home, and will be handy when
negotiations begin.

4. Find your warranties. Gather up the warranties, guarantees, and
user manuals for the furnace, washer and dryer, dishwasher, and any
other items that will remain with the house.

5. Spruce up the curb appeal. Pretend you're a buyer and stand outside
of your home. As you approach the front door, what is your impression
of the property? Do the lawn and bushes look neatly manicured? Is the
address clearly visible? Are pretty flowers or plants framing the
entrance? Is the walkway free from cracks and impediments

8 Reasons Why You Should Work With a REALTOR®

1. Navigate a complicated process. Buying or selling a home usually
requires disclosure forms, inspection reports, mortgage documents,
insurance policies, deeds, and multipage settlement statements. A
knowledgeable expert will help you prepare the best deal, and avoid
delays or costly mistakes.

2. Information and opinions. REALTORS® can provide local community
information on utilities, zoning, schools, and more. They'll also be
able to provide objective information about each property. A
professional will be able to help you answer these two important
questions: Will the property provide the environment I want for a home
or investment? Second, will the property have resale value when I am
ready to sell?

3. Help finding the best property out there. Sometimes the property
you are seeking is available but not actively advertised in the
market, and it will take some investigation by your REALTOR® to find
all available properties.

4. Negotiating skills. There are many negotiating factors, including
but not limited to price, financing, terms, date of possession, and
inclusion or exclusion of repairs, furnishings, or equipment. In
addition, the purchase agreement should provide a period of time for
you to complete appropriate inspections and investigations of the
property before you are bound to complete the purchase. Your agent can
advise you as to which investigations and inspections are recommended
or required.

6. Someone who speaks the language. If you don't know a CMA from a
PUD, you can understand why it's important to work with a professional
who is immersed in the industry and knows the real estate language.

7. Experience. Most people buy and sell only a few homes in a
lifetime, usually with quite a few years in between each purchase.
Even if you have done it before, laws and regulations change.
REALTORS®, on the other hand, handle hundreds of real estate
transactions over the course of their career. Having an expert on your
side is critical.

8. Objective voice. A home often symbolizes family, rest, and security
- it's not just four walls and a roof. Because of this, homebuying and
selling can be an emotional undertaking. And for most people, a home
is the biggest purchase they'll every make. Having a concerned, but
objective, third party helps you stay focused on both the emotional
and financial issues most important to you.

12 Questions to Ask When Choosing Your REALTOR®

Make sure you choose a REALTOR® who will provide top-notch service and
meet your unique needs.

2. What designations do you hold? Designations such as GRI and CRS®,
which require that agents take additional, specialized real estate
training, are held only by about one-quarter of real estate
practitioners.

3. How many homes did you and your real estate brokerage sell last
year? By asking this question, you'll get a good idea of how much
experience the practitioner has.

4. How many days did it take you to sell the average home? How did
that compare to the overall market? The REALTOR® you interview should
have these facts on hand, and be able to present market statistics
from the local MLS to provide a comparison.

11. How will you keep me informed about the progress of my
transaction? How frequently? Again, this is not a question with a
correct answer, but how you judge the response will reflect your own
desires. Do you want updates twice a week or do you prefer not to be
bothered unless there's a hot prospect? Do you prefer phone, e-mail,
or a personal visit?

12. Could you please give me the names and phone numbers of your three
most recent clients? Ask recent clients if they would work with this
REALTOR® again. Find out whether they were pleased with the
communication style, follow-up, and work ethic of the REALTOR®.

Checklist: 17 Service Providers You'll Need When You Sell

□ Real estate attorney

□ Appraiser

□ Home inspector

□ Mortgage loan officer

□ Environmental specialist

□ Lead paint inspector

□ Radon inspector

□ Tax adviser

□ Sanitary systems expert

□ Occupancy permit inspector

□ Zoning inspector

□ Survey company

□ Flood plain inspector

□ Termite inspector

□ Title company

□ Insurance consultant

□ Moving company

Used with permission from Kim Daugherty, Real Estate Checklists and
Systems, www.realestatechecklists.com

Does Moving Up Make Sense?

These questions will help you decide whether you're ready for a home
that's larger or in a more desirable location. If you answer yes to
most of the questions, it's a sign that you may be ready to move.

1. Have you built substantial equity in your current home? Look at
your annual mortgage statement or call your lender to find out.
Usually, you don't build up much equity in the first few years of your
mortgage, as monthly payments are mostly interest, but if you've owned
your home for five or more years, you may have significant, unrealized
gains.

2. Has your income or financial situation improved? If you're making
more money, you may be able to afford higher mortgage payments and
cover the costs of moving.

3. Have you outgrown your neighborhood? The neighborhood you pick for
your first home might not be the same neighborhood you want to settle
down in for good. For example, you may have realized that you'd like
to be closer to your job or live in a better school district.

4. Are there reasons why you can't remodel or add on? Sometimes you
can create a bigger home by adding a new room or building up. But if
your property isn't large enough, your municipality doesn't allow it,
or you're simply not interested in remodeling, then moving to a bigger
home may be your best option.

5. Are you comfortable moving in the current housing market? If your
market is hot, your home may sell quickly and for top dollar, but the
home you buy also will be more expensive. If your market is slow,
finding a buyer may take longer, but you'll have more selection and
better pricing as you seek your new home.

6. Are interest rates attractive? A low rate not only helps you buy a
larger home, but also makes it easier to find a buyer

Forms You'll Need to Sell Your Home

1. Property disclosure form. This form requires you to reveal all
known defects to your property. Check with your state government to
see if there is a special form required in your state.

2. Purchasers access to premises agreement. This agreement sets
conditions for permitting the buyer to enter your home for activities
such as measuring for draperies before you move.

3. Sales contract. The agreement between you and the seller on terms
and conditions of sale. Again, check with your state real estate
department to see if there is a required form.

4. Sales contract contingency clauses. In addition to the contract,
you may need to add one or more attachments to the contract to address
special contingencies - such as the buyer's need to sell a home before
purchasing yours.

5. Pre- and post-occupancy agreements. Unless you're planning on
moving out and the buyer moving in on the day of closing, you'll need
an agreement on the terms and costs of occupancy once the sale closes.

6. Lead-based paint disclosure pamphlet. If your home was built before
1978, you must provide the pamphlet to all sellers. You must also have
buyers sign a statement indicating they received the pamphlet.

Open House Safety Tips

An open house can be a great sales tool, but it also exposes you to
numerous unfamiliar people for the first time. Stay safe by practicing
these guidelines.

Call the local police department and ask them to have a squad care
drive by during your open-house hours.

Check your cell phone's strength and signal prior to the open house.
Have emergency numbers programmed on speed dial. Carry an extra, fully
charged cell phone battery.

Determine several "escape" routes that you can use in case of an
emergency. Make sure all deadbolt locks are unlocked to facilitate a
faster escape.

Turn on the lights and open the curtains. These are not only sound
safety procedures, but also great marketing tactics.

Make sure that if you were to escape by the back door, you could
escape from the backyard. Frequently, high fences surround yards that
contain swimming pools or hot tubs.

When prospective buyers begin to arrive, jot down their car
descriptions, license numbers and physical descriptions.

When showing the house, always walk behind the prospect. Direct them;
don't lead them. Say, for example, "The kitchen is on your left," and
gesture for them to go ahead of you.

Notify a friend or a relative that you will be calling in every hour
on the hour. And if you don't call, they are to notify the police
immediately.

Inform a neighbor that you will be showing the house and ask if he or
she would keep an eye and ear open for anything out of the ordinary.

Source: National Association of REALTORS® Safety Week kit

How to Get an Offer on Your Home

1. Price it right. Set a price at the lower end of your property's
realistic price range.

2. Prepare for visitors. Get your house market ready at least two
weeks before you begin showing it.

3. Be flexible about showings. It's often disruptive to have a house
ready to show at the spur of the moment. But the more amenable you can
be about letting people see your home, the sooner you'll find a buyer.

4. Anticipate the offers. Decide in advance what price and terms
you'll find acceptable.

5. Don't refuse to drop the price. If your home has been on the market
for more than 30 days without an offer, you should be prepared to at
least consider lowering your asking price

Moving Checklist for Sellers

□ Provide the post office with your forwarding address two to four
weeks ahead of the move.

□ Notify your credit card companies, magazine subscriptions, and bank
of your change of address.

□ Create a list of friends, relatives, and business colleagues who
need to be notified about your move.

□ Arrange to disconnect utilities and have them connected at your new
home.

□ Cancel the newspaper, or change the address so it will arrive at
your new home.

□ Check insurance coverage for the items you're moving. Usually
movers only cover what they pack.

□ Clean out appliances and prepare them for moving, if applicable.

□ Note the weight of the goods you'll have moved, since long-distance
moves are usually billed according to

weight. Watch for movers that use excessive padding to add weight.

□ Check with your condo or co-op about any restrictions on using the
elevator or particular exits for moving.

□ Have a "first open" box with the things you'll need most, such as
toilet paper, soap, trash bags, scissors,

hammer, screwdriver, pencils and paper, cups and plates, water,
snacks, and toothpaste.

Plus, if you're moving out of town, be sure to:

□ Get copies of medical and dental records and prescriptions for your
family and your pets.

□ Get copies of children's school records for transfer.

□ Ask friends for introductions to anyone they know in your new
neighborhood.

□ Consider special car needs for pets when traveling.

□ Let a friend or relative know your route.

□ Empty your safety deposit box.

□ Put plants in boxes with holes for air circulation if you're moving
in cold weather.

Simple Tips for Better Home Showings

1. Remove clutter and clear off counters. Throw out stacks of
newspapers and magazines and stow away most of your small decorative
items. Put excess furniture in storage, and remove out-of-season
clothing items that are cramping closet space. Don't forget to clean
out the garage, too.

2. Wash your windows and screens. This will help get more light into
the interior of the home.

3. Keep everything extra clean. A clean house will make a strong first
impression and send a message to buyers that the home has been well-
cared for. Wash fingerprints from light switch plates, mop and wax
floors, and clean the stove and refrigerator. Polish your doorknobs
and address numbers. It's worth hiring a cleaning service if you can
afford it.

4. Get rid of smells. Clean carpeting and drapes to eliminate cooking
odors, smoke, and pet smells. Open the windows to air out the house.
Potpourri or scented candles will help.

5. Brighten your rooms. Put higher wattage bulbs in light fixtures to
brighten up rooms and basements. Replace any burned-out bulbs in
closets. Clean the walls, or better yet, brush on a fresh coat of
neutral color paint.

6. Don't disregard minor repairs. Small problems such as sticky doors,
torn screens, cracked caulking, or a dripping faucet may seem trivial,
but they'll give buyers the impression that the house isn't well-
maintained.

7. Tidy your yard. Cut the grass, rake the leaves, add new mulch, trim
the bushes, edge the walkways, and clean the gutters. For added curb
appeal, place a pot of bright flowers near the entryway.

8. Patch holes. Repair any holes in your driveway and reapply sealant,
if applicable.

9. Add a touch of color in the living room. A colored afghan or throw
on the couch will jazz up a dull room. Buy new accent pillows for the
sofa.

10. Buy a flowering plant and put it near a window you pass by
frequently.

11. Make centerpieces for your tables. Use brightly colored fruit or
flowers.

12. Set the scene. Set the table with fancy dishes and candles, and
create other vignettes throughout the home to help buyers picture
living there. For example, in the basement you might display a chess
game in progress.

13. Replace heavy curtains with sheer ones that let in more light.
Show off the view if you have one.

14. Accentuate the fireplace. Lay fresh logs in the fireplace or put a
basket of flowers there if it's not in use.

15. Make the bathrooms feel luxurious. Put away those old towels and
toothbrushes. When buyers enter your bathroom, they should feel
pampered. Add a new shower curtain, new towels, and fancy guest soaps.
Make sure your personal toiletry items are out of sight.

16. Send your pets to a neighbor or take them outside. If that's not
possible, crate them or confine them to one room (ideally in the
basement), and let the real estate practitioner know where they'll be
to eliminate surprises.

17. Lock up valuables, jewelry, and money. While a real estate
salesperson will be on site during the showing or open house, it's
impossible to watch everyone all the time.

18. Leave the home. It's usually best if the sellers are not at home.
It's awkward for prospective buyers to look in your closets and
express their opinions of your home with you there.

Low-Cost Ways to Spruce Up Your Home's Exterior

Make your home more appealing for yourself and potential buyers with
these quick and easy tips:

1. Trim bushes so they don't block windows or architectural details.

2. Mow your lawn, and turn on the sprinklers for 30 minutes before the
showing to make the lawn sparkle.

3. Put a pot of bright flowers (or a small evergreen in winter) on
your porch.

4. Install new doorknobs on your front door.

5. Repair any cracks in the driveway.

6. Edge the grass around walkways and trees.

7. Keep your garden tools and hoses out of sight.

8. Clear toys from the lawn.

9. Buy a new mailbox.

10. Upgrade your outside lighting.

11. Buy a new doormat for the outside of your front door.

12. Clean your windows, inside and outside.

13. Polish or replace your house numbers.

14. Place a seasonal wreath on your door.

12 Tips for Hiring a Remodeling Contractor

1. Get at least three written estimates.

2. Check references. If possible, view earlier jobs the contractor
completed.

3. Check with the local Chamber of Commerce or Better Business Bureau
for complaints.

4. Be sure the contract states exactly what is to be done and how
change orders will be handled.

5. Make as small of a down payment as possible so you won't lose a lot
if the contractor fails to complete the job.

6. Be sure that the contractor has the necessary permits, licenses,
and insurance.

7. Check that the contract states when the work will be completed and
what recourse you have if it isn't. Also, remember that in many
instances you can cancel a contract within three business days of
signing it.

8. Ask if the contractor's workers will do the entire job or whether
subcontractors will be involved too.

9. Get the contractor to indemnify you if work does not meet any local
building codes or regulations.

10. Be sure that the contract specifies the contractor will clean up
after the job and be responsible for any damage.

11. Guarantee that the materials that will be used meet your
specifications.

12. Don't make the final payment until you're satisfied with the work.

Understanding Capital Gains in Real Estate

When you sell a stock, you owe taxes on your gain - the difference
between what you paid for the stock and what you sold it for. The same
holds true when selling a home (or a second home), but there are some
special considerations.

How to Calculate Gain
In real estate, capital gains are based not on what you paid for the
home, but on its adjusted cost basis. To calculate, follow these steps:

1. Purchase price: _______________________

The purchase price of the home is the sale price, not the amount of
money you actually contributed at closing.

2. Total adjustments: _______________________

To calculate this, add the following:

Cost of the purchase - including transfer fees, attorney fees, and
inspections, but not points you paid on your mortgage.

Cost of sale - including inspections, attorney fees, real estate
commission, and money you spent to fix up your home just prior to sale.

Cost of improvements - including room additions, deck, etc. Note here
that improvements do not include repairing or replacing something
already there, such as putting on a new roof or buying a new furnace.

3. Your home's adjusted cost basis: _______________________

The total of your purchase price and adjustments is the adjusted cost
basis of your home.

4. Your capital gain: _______________________

Subtract the adjusted cost basis from the amount your home sells for
to get your capital gain.

A Special Real Estate Exemption for Capital Gains
Since 1997, up to $250,000 in capital gains ($500,000 for a married
couple) on the sale of a home is exempt from taxation if you meet the
following criteria:

-- You have lived in the home as your principal residence for two out
of the last five years.

-- You have not sold or exchanged another home during the two years
preceding the sale.

-- You meet what the IRS calls "unforeseen circumstances," such as job
loss, divorce, or family medical emergency.

What to Have on Hand for the New Owners

-- Owner's manuals and warranties for appliances left in the house.

-- Garage door opener.

-- Extra sets of house keys.

-- A list of local service providers - the best dry cleaner, yard
service, plumber, etc.

-- Code to the security alarm and phone number of the monitoring
service if not discontinued.
-- As a courtesy, you could provide numbers to the local utility
companies.

-- If it's a condo, leave information on how to contact the condo board.

10 Tips for Moving With Pets

Moving to a new home can be stressful on your pets, but there are many
things you can do to make the process as painless as possible. Experts
at The Pet Realty Network (www.petrealtynetwork.com) in Naples, Fla.,
offer these helpful tips for easing the transition and keeping pets
safe during the move.

1. Update your pet's tag. Make sure your pet is wearing a sturdy
collar with an identification tag that is labeled with your current
contact information. The tag should include your destination location,
telephone number, and cell phone number so that you can be reached
immediately during the move.

2. Ask for veterinary records. If you're moving far enough away that
you'll need a new vet, you should ask for a current copy of your pet's
vaccinations. You also can ask for your pet's medical history to give
to your new vet, although that can normally be faxed directly to the
new medical-care provider upon request. Depending on your destination,
your pet may need additional vaccinations, medications, and health
certificates. Have your current vet's phone number handy in case of an
emergency, or in case your new vet would like more information about
your pet.

3. Keep medications and food on hand. Keep at least one week's worth
of food and medication with you in case of an emergency. Vets can't
write a prescription without a prior doctor/patient relationship,
which can cause delays if you need medication right away. You may want
to ask for an extra prescription refill before you move. The same
preparation should be taken with special therapeutic foods - purchase
an extra supply in case you can't find the food right away in your new
area.

4. Seclude your pet from chaos. Pets can feel vulnerable on moving
day. Keep them in a safe, quiet, well-ventilated place, such as the
bathroom, on moving day with a "Do Not Disturb! Pets Inside!" sign
posted on the door. There are many light, collapsible travel crates on
the market if you choose to buy one. However, make sure your pet is
familiar with the new crate before moving day by gradually introducing
him or her to the crate before your trip. Be sure the crate is well-
ventilated and sturdy enough for stress-chewers; otherwise, a nervous
pet could escape.

5. Prepare a first aid kit. First aid is not a substitute for
emergency veterinary care, but being prepared and knowing basic first
aid could save your pet's life. A few recommended supplies: Your
veterinarian's phone number, gauze to wrap wounds or to muzzle your
pet, adhesive tape for bandages, non-stick bandages, towels, and
hydrogen peroxide (3 percent). You can use a door, board, blanket or
floor mat as an emergency stretcher and a soft cloth, rope, necktie,
leash, or nylon stocking for an emergency muzzle.

6. Play it safe in the car. It's best to travel with your dog in a
crate; second-best is to use a restraining harness. When it comes to
cats, it's always best for their safety and yours to use a well-
ventilated carrier in the car. Secure the crate or carrier with a seat
belt and provide your pet with familiar toys. Never keep your pet in
the open bed of a truck or the storage area of a moving van. In any
season, a pet left alone in a parked vehicle is vulnerable to injury
and theft. If you'll be using overnight lodging, plan ahead by
searching for pet-friendly hotels. Have plenty of kitty litter and
plastic bags on hand, and keep your pet on its regular diet and eating
schedule.

7. Get ready for takeoff. When traveling by air, check with the
airline about any pet requirements or restrictions to be sure you've
prepared your pet for a safe trip. Some airlines will allow pets in
the cabin, depending on the animal's size, but you'll need to purchase
a special airline crate that fits under the seat in front of you. Give
yourself plenty of time to work out any arrangements necessary
including consulting with your veterinarian and the U.S. Department of
Agriculture. If traveling is stressful for your pet, consult your
veterinarian about ways that might lessen the stress of travel.

8. Find a new veterinary clinic and emergency hospital. Before you
move, ask your vet to recommend a doctor in your new locale. Talk to
other pet owners when visiting the new community, and call the state
veterinary medical association (VMA) for veterinarians in your
location. When choosing a new veterinary hospital, ask for an
impromptu tour; kennels should be kept clean at all times, not just
when a client's expected. You may also want to schedule an appointment
to meet the vets. Now ask yourself: Are the receptionists, doctors,
technicians, and assistants friendly, professional and knowledgeable?
Are the office hours and location convenient? Does the clinic offer
emergency or specialty services or boarding? If the hospital doesn't
meet your criteria, keep looking until you're assured that your pet
will receive the best possible care.

9. Prep your new home for pets. Pets may be frightened and confused in
new surroundings. Upon your arrival at your new home, immediately set
out all the familiar and necessary things your pet will need: food,
water, medications, bed, litter box, toys, etc. Pack these items in a
handy spot so they can be unpacked right away. Keep all external
windows and doors closed when your pet is unsupervised, and be
cautious of narrow gaps behind or between appliances where nervous
pets may try to hide. If your old home is nearby, your pet may try to
find a way back there. To be safe, give the new home owners or your
former neighbors your phone number and a photo of your pet, and ask
them to contact you if your pet is found nearby.

10. Learn more about your new area. Once you find a new veterinarian,
ask if there are any local health concerns such as heartworm or Lyme
disease, or any vaccinations or medications your pet may require.
Also, be aware of any unique laws. For example, there are restrictive
breed laws in some cities. Homeowner associations also may have
restrictions - perhaps requiring that all dogs are kept on leashes. If
you will be moving to a new country, carry an updated rabies
vaccination and health certificate. It is very important to contact
the Agriculture Department or embassy of the country or state to which
you're traveling to obtain specific information on special documents,
quarantine, or costs to bring the animal into the country.

Source: The Pet Realty Network (www.petrealtynetwork.com)

Is Your Buyer Qualified?

Unless the buyer who makes an offer on your home has the resources to
qualify for a mortgage, you may not really have a sale. If possible,
try to determine a buyer's financial status before signing the
contract. Ask the following:

1. Has the buyer been prequalified or preapproved (even better) for a
mortgage? Such buyers will be in a much better position to obtain a
mortgage promptly.

2. Does the buyer have enough money to make a downpayment and cover
closing costs? Ideally, a buyer should have 20 percent of the home's
price as a downpayment and between 2 and 7 percent of the price to
cover closing costs.

3. Is the buyer's income sufficient to afford your home? Ideally,
buyers should spend no more than 28 percent of total income to cover
PITI (principal, interest, taxes, and insurance).

4. Does your buyer have good credit? Ask if he or she has reviewed and
corrected a credit report.

5. Does the buyer have too much debt? If a buyer owes a great deal on
car payments, credit cards, etc., he or she may not qualify for a
mortgage.

How to Hold a Successful Garage Sale

Garage sales can be a great way to get rid of clutter - and earn a
little extra cash - before you sell your home. But make sure the
timing is right. Garage sales can take on a life of their own, and it
might not be the best use of your energy right before putting your
home on the market. Follow these tips for a successful sale.

1. Don't wait until the last minute. You don't want to be scrambling
to hold a garage sale the week before an open house. Depending on how
long you've lived in the home and how much stuff you have to sell,
planning a garage sale can demand a lot of time and energy.

2. Get a permit. Most municipalities will require you to obtain a
special permit or license in order to hold a garage sale. The permits
are often free or very inexpensive, but still require you to register
with the city.

3. See if neighbors want to join in. You can turn your garage sale
into a block-wide event and lure more shoppers if you team up with
neighbors. However, a permit may be necessary for each home owner,
even if it's a group event.

4. Schedule the sale. Sales on Saturdays and Sundays will generate the
most traffic, especially if the weather cooperates. Start the sale
early, 8 a.m. or 9 a.m. is best, and be prepared for early birds.

5. Advertise. Place an ad in free classified papers and Web sites, and
in your local newspapers. Include the dates, time, and address. Let
the public know if certain types of items will be sold, such as baby
clothes, furniture, or weightlifting equipment. On the day of the
sale, balloons and signs with prominent arrows will help to grab the
attention of passersby.

6. Price your goods. Lay out everything that you plan to sell, and
attach prices with removable stickers. Remember, garage sales are
supposed to be bargains, so try to be objective as you set prices.
Assign simple prices to your goods: 50 cents, 3 for $1, $5, $10, etc.

7. If it's really junk, don't sell it. Decide what's worth selling and
what's not. If it's really garbage, then throw it away. Broken
appliances, for example, should be tossed. (Know where a nearby
electrical outlet is, in case a customer wants to make sure something
works.)

8. Check for mistakes. Make sure that items you want to keep don't
accidentally end up in the garage sale pile.

9. Create an organized display. Lay out your items by category, and
display neatly so customers don't have to dig through boxes.

10. Stock up on bags and newspapers. People who buy many small items
will appreciate a bag to carry their goods. Newspapers are handy for
wrapping fragile items.

11. Manage your money. Make a trip to the bank to get ample change for
your cashbox. Throughout the sale, keep a close eye on your cash;
never leave the cashbox unattended. It's smart to have one person who
manages the money throughout the day, keeping a tally of what was
purchased and for how much. Keep a calculator nearby.

12. Prepare for your home sale. Donate the remaining stuff or sell it
to a resale shop. Now that all of your clutter is cleared out, it's
time to focus on preparing your house for a successful sale!

How to Prepare for the Open House

-- Advertise your open house. Ideally you should advertise both the
weekend before and the weekend of the open house. Check with the local
paper to see when their ad closing deadlines are.

-- Create a property summary sheet. This sheet gives prospective
buyers an overview of your home. Include dimensions for each room,
copies of a property survey, summaries of utility costs and property
taxes, and a list of when capital items such as roofs and furnace were
added.

-- Develop a sign-in form for prospects' addresses. You'll ideally
want both phone numbers and e-mail addresses to follow up with
prospective buyers.

-- Put up signs. One or two days before the open house, place
directional signs at major intersections within three to four blocks
of your house. Be sure you check on anti-sign regulations in your area.

-- Get your house ready. Remove clutter, clean your house, wash your
windows, add flowers, turn on lights, open draperies and blinds,
remove valuables and breakables, confine pets, turn on soft music, and
set up a table for your property fact sheet near the entrance.

-- Develop a follow-up sheet. Getting feedback on your home from
prospects who attended your open house will give you a better
understanding of how to make your home more appealing to buyers

Prepare Your Home for a Virtual Tour

With more buyers shopping for homes on the Web, photos and virtual
tours are a must. There are many things you can do make your home
shine on camera.

1. Understand the camera's perspective. The camera's eye is very
different from the human eye. It magnifies clutter and poor furniture
arrangement. To make a home shine in a virtual tour or video
presentation, cater to the lens.

2. Make the home "Q-tip clean." Because the camera magnifies grime,
each room must be spotless. Don't forget floor coverings and walls; a
discolored spot on the rug might be overlooked by prospects during a
regular home showing, but that stain becomes a focal point for online
viewers.

3. Pack up the clutter. But leave three items of varying heights on
each surface. For example, on an end table you can place a lamp
(high), a small plant (medium), and a book (low).

4. Snap pictures. This will give you an idea of what the home will
look like on camera. Closely examine the photos and list changes that
would improve each room's appearance: opening blinds to let in natural
light, removing magnets from the refrigerator, or taking down
distracting art.

5. Pare down furniture. Identify one or two pieces of furniture that
can be removed from each room to make the space appear larger.

6. Rearrange. Spotlight the flow of a space by creating a focal point
on the furthest wall from the doorway and arranging the other pieces
of furniture to make a triangle shape. The focal point may be a bed in
a bedroom or a china cabinet in a dining room.

7. Reaccessorize. Include a healthy plant in every room; the camera
loves green. Energize bland decor by placing a bright vase on a mantle
or draping an afghan over a couch.

8. Keep the home in shape. You want buyers who liked what they saw
online to encounter the same home in person.

Source: Barb Schwarz, www.StagedHomes.com, Concord, Pa.

Tips for Pricing Your Home

-- Consider comparables. What have other homes in your neighborhood
sold for recently? How do they compare to yours in terms of size,
upkeep, and amenities?

-- Consider competition. How many other houses are for sale in your
area? Are you competing against new homes?

-- Consider your contingencies. Do you have special concerns that
would affect the price you'll receive? For example, do you want to be
able to move in four months?

-- Get an appraisal. For a few hundred dollars, a qualified appraiser
can give you an estimate of your home's value. Be sure to ask for a
market-value appraisal. To locate appraisers in your area, contact The
Appraisal Institute (www.appraisalinstitute.org) or ask your REALTOR®
for some recommendations.

-- Ask a lender. Since most buyers will need a mortgage, it's
important that a home's sale price be in line with a lender's estimate
of its value.

-- Be accurate. Studies show that homes priced more than 3 percent
over the correct price take longer to sell.

-- Know what you'll take. It's critical to know what price you'll
accept before beginning a negotiation with a buyer

Understand Agency Relationships

It's important to understand what legal responsibilities your real
estate salesperson has to you and to other parties in the transaction.
Ask what type of agency relationship your agent has with you:

Seller's representative (also known as a listing agent or seller's
agent)

A seller's agent is hired by and represents the seller. All fiduciary
duties are owed to the seller. The agency relationship usually is
created by a listing contract.

Buyer's representative (also known as a buyer's agent)

A buyer's agent is hired by prospective buyers to represent them in a
real estate transaction. The buyer's rep works in the buyer's best
interest throughout the transaction and owes fiduciary duties to the
buyer. The buyer can pay the licensee directly through a negotiated
fee, or the buyer's rep may be paid by the seller or through a
commission split with the seller's agent.

Subagent

A subagent owes the same fiduciary duties to the agent's customer as
the agent does. Subagency usually arises when a cooperating sales
associate from another brokerage, who is not the buyer's agent, shows
property to a buyer. In such a case, the subagent works with the buyer
as a customer but owes fiduciary duties to the listing broker and the
seller. Although a subagent cannot assist the buyer in any way that
would be detrimental to the seller, a buyer-customer can expect to be
treated honestly by the subagent. It is important that subagents fully
explain their duties to buyers.

Disclosed dual agent

Dual agency is a relationship in which the brokerage firm represents
both the buyer and the seller in the same real estate transaction.
Dual agency relationships do not carry with them all of the
traditional fiduciary duties to clients. Instead, dual agents owe
limited fiduciary duties. Because of the potential for conflicts of
interest in a dual-agency relationship, it's vital that all parties
give their informed consent. In many states, this consent must be in
writing. Disclosed dual agency, in which both the buyer and the seller
are told that the agent is representing both of them, is legal in most
states.

Designated agent (also called appointed agent)

This is a brokerage practice that allows the managing broker to
designate which licensees in the brokerage will act as an agent of the
seller and which will act as an agent of the buyer. Designated agency
avoids the problem of creating a dual-agency relationship for
licensees at the brokerage. The designated agents give their clients
full representation, with all of the attendant fiduciary duties. The
broker still has the responsibility of supervising both groups of
licensees.

Nonagency relationship (called, among other things, a transaction
broker or facilitator)

Some states permit a real estate licensee to have a type of nonagency
relationship with a consumer. These relationships vary considerably
from state to state, both as to the duties owed to the consumer and
the name used to describe them. Very generally, the duties owed to the
consumer in a nonagency relationship are less than the complete,
traditional fiduciary duties of an agency relationship.

What is Appraised Value?

-- Appraisals provide an objective opinion of value, but it's not an
exact science so appraisals may differ.

-- For buying and selling purposes, appraisals are usually based on
market value - what the property could probably be sold for. Other
types of value include insurance value, replacement value, and
assessed value for property tax purposes.

-- Appraised value is not a constant number. Changes in market
conditions can dramatically alter appraised value.

-- Appraised value doesn't take into account special considerations,
like the need to sell rapidly.

-- Lenders usually use either the appraised value or the sale price,
whichever is less, to determine the amount of the mortgage they will
offer.

Used with permission from Kim Daugherty, Real Estate Checklists and
Systems, www.realestatechecklists.com