FSBO Jane

Asphalt and concrete have been used to create driveways throughout the country for many years, but there is a trend among homeowners to replace the old asphalt or concrete driveway with stamped concrete or paved brick.

Brick driveways, walkways, and patios are attractive, but can be costly. Take a look at these facts about driveway choices.

ASPHALT/CONCRETE

Concrete and asphalt have been the most commonly used materials used for driveways. Because it has a low per-square-foot cost, concrete is an inexpensive option. Concrete slab driveways are easy to install, very strong, and are low-maintenance. However, extreme fluctuations in temperature can cause concrete to expand and contract resulting in the concrete cracking. Repairing cracks in concrete is easy, but it is difficult to match the color of the original material, so repairs may appear unsightly.

Asphalt driveways need little maintenance but do need to be sealed every other year or so.

STAMPED CONCRETE

Stamped concrete is a concrete driveway that is poured and “stamped” before hardening, creating the look of a brick path. Stamping concrete provides a strong base with the option to create beautiful designs. As with concrete driveways, stamped concrete can crack, but it is fairly easy to repair. However, matching colors and patterns can result in an unattractive look.

PAVERS OR PAVED BRICK

Pavers are individual bricks that have a space between each paver allowing the bricks to expand and contract when the weather changes, which eliminates cracking. The pavers are installed over a base of sand, which increases their structural capacity. Pavers are easily replaced; however pavers can be expensive, can settle unevenly and need to be maintained to eliminate ants and weeds growing between the cracks.

Since asphalt and concrete driveways are numerous, the stamped concrete or pavers are more attractive with their intricate patterns. In addition to adding beauty, pavers and bricks may cost more to install but can possibly increase the value of your home by improving the home’s curb appeal.

However, it is suggested that you research how much a brick or paved brick driveway will cost and approach a real estate professional for advice.  Ask if a brick driveway would be an investment in your home you could collect on when you sell your home.

Steve Berges, a real estate investor in Michigan, told Bankrate.com that one of his neighbor’s spent $28,000 replacing a concrete driveway with brick pavers.  Although the driveway is beautiful, Berges said his neighbor will never receive the money he paid when selling his home in that neighborhood.

So, the best advice is to thoroughly research the different driveways and installers available. Then decide whether you mind paying for an expensive, but attractive, driveway if you might not recoup the investment.

I recently came across this article, from Popular Mechanics of all places.

It makes sense: the writer approached the piece from the standpoint of a DIY project. Just as you would prepare, plan and work to build a step stool or repaint a room or refinish floors, you should prepare, plan, and work to sell your own home.

Nothing in the article is especially new, but I agree with all the points, and they’re worth reviewing. Too many FBSO sellers think their home will magically sell without any work whatsoever. Very, very rarely that may happen–in a sellers’ market, maybe. But right now is the time to put some elbow grease into the sale.

I came across this post recently, and I thought some of the points dovetailed perfectly with what I tell FSBO home sellers: get to work!

The author is addressing business people who purchase software and expect magical results to follow. I’d liken this to home sellers who put a sign in the front yard or just purchase an ad package.

Good, good, but now you have to do something about it!

Don’t expect buyers to attack you the minute you decide to sell. You need to get your butt in gear and start telling, showing, advertising, calling, whatever-you-can-think-of to draw in buyers!

Thinking about taking that big step toward owning a home? Lots of people are drawn to the idea of home ownership and all the benefits it provides. But what a lot of people aren’t prepared for is the cost. Don’t let that deter you, though–if you’re ready to stop throwing your money away on rent, consider investing in a condominium.

While condo living doesn’t fit everyone’s lifestyle, it can provide many benefits that living in a single family home cannot. For one, you’ll be part of a community, which, if you’re starting out on your own for the first time, can be a great support. And while condos come with monthly fees that you’ll have to factor into your budget, you can rest assured that basic maintenance issues will be taken care of for you. Also, some condos have great amenities (like a pool or a fitness room) that you probably wouldn’t have access to, or be able to afford, in a single family home.

Of course, you want to be sure that condo living will suit your needs. It’s a big decision, and there are some precautions you should take before jumping in. Take a look at this informative blog from Bigger Pockets.

Also helpful is this article I found which lists the pros and cons of condo living: from Lending Tree. The author brings up a good point, which is that condos are often found near downtown areas and places where land is at a premium. So I went to one of my favorite websites, BuyOwner.com, and took a look at some condos in hot areas, like Chicago, Atlanta, Tampa and Orlando, etc. You’d be surprised at how modern and spacious some of these condos are, and with surprisingly affordable prices! Just for kicks, I started out by limiting the search by price range, from $125,000-150,000, to estimate what a first-time home buyer might find. I also searched within 30 miles of the city I picked.

In the Chicago area, I was surprised to find some charming vintage condos in up-and-coming areas, which of course have been upgraded and outfitted with the latest amenities. I also found some fabulous condos in high-rises that had extraordinary city views.

Your money definitely goes far in the Atlanta area, where the price range I chose can get you a spacious, modern two-bedroom condo! I was even impressed with what I found in Florida metropolitan areas-besides comfortable living spaces, these condos also feature awesome amenities, like swimming pools and resort-style landscaping.

Go to Buyowner.com and check it out yourself! I think you’ll be as surprised as I was to find out what great properties can be yours for a lot less money than a single family home with similar square footage. Enjoy!

Check out this article from Money Magazine’s George Mannes, which mentions some pretty outrageous incentives that homeowners are offering to buyers. Mannes also makes a great point about not letting these attractive offers deter you from getting the best possible price on a home. Even though I’m all for incentives, I think the best incentive you can give is a lower purchase price.

Many sellers are surprised to learn the value of a quality home appraisal. A good appraisal will estimate your home’s worth, based upon factual information from the current local market. This provides an expert opinion of what your home would likely sell for in a fair and open market, and it’s usually required by banks/lenders.

How does an appraiser reach a valuation?

Home appraisers take a variety of factors into account when determining the correct value of a home. They’ll consider past and current comparable properties-both that have sold and that are on the market. They look at everything from current and pending offers to community development and direction.

Appraisers also push their scope farther, weighing your home against the broader market. They’ll analyze all of this information in order to determine your home’s appraised value.

Where do they get their info?

In regards to market data, some of it comes from the local MLS, and some from community records and/or private data sources. Ideally, appraisers combine information from these sources with their own expert-level knowledge and will analyze each piece of data for accuracy and importance.

What are they looking for when they examine my home?

Beyond the size, square footage and structure of the home, appraisers mostly are examining your home’s condition. Of course they’ll note how many bedrooms and bathrooms there are, and they might measure rooms. They’ll also take a look at any additions, improvements, upgrades, problems or damages.

How reliable is an appraisal?

Because so many different factors come into play, appraisals may differ, based upon who is conducting the analysis. However, if appraisers are working honestly and conscientiously, their results should be fairly accurate. Assuming your home’s condition and neighborhood is the same during several different appraisals, most likely, different specific valuations would arise, but they’d all be within the same basic range.

Happy holidays to everyone out there in the blogosphere! I’ll be hosting company for the holidays and may miss a few days of blogging.

Feel free to dig through my archives and reaquaint yourselves with some info specific to your interests. Otherwise, here are the holiday-related posts to match my festive spirit. Enjoy!

(Selling Your) Home for the Holidays
Holiday Decorating
Quality Links: Selling in Winter

The fair market value of a house is the highest price an informed buyer will pay, based on a “fair” price within the current local market.

To obtain the fair market value of your home, ask for a Comparative Market Analysis (CMA), or for a professional appraisal of your home. A CMA will give you a realistic figure based on the most prominent and practical features of your home and how they rate in the local real estate market, along with info about similar homes in the area (like their final selling price, and how long they were listed on the market).  When I went with Buy Owner, their partner MLS Realty provided me with a free market analysis that was very helpful.

An appraiser will similarly examine the highlights and features of your home, and weigh it against other homes in your area and the larger market in general. Your home may sell for well above or below the fair market value, but it serves as a fair estimate of what your home is worth in the current local market.

Fair market value is not necessarily an accurate reflection of what the buyer or the seller wants the price of the home to be.  While the buyer may have spent a great deal of money on the home, these upgrades may not be reflected in the fair market.  Likewise, the price will not be lowered because of an individual buyer’s inability to afford the home. The price is estimated based on the market as a whole, especially the “fundamentals” of supply and demand.

Always keep in mind that the fair market value is neither a limit nor a goal; it is simply the best methodical estimate to figure the asking price of your home. Take it as an estimate, and not as the end-all-be-all price of your home!

1. Don’t set your price too high: Overpricing your home can turn buyers off from the get-go. They might be so discouraged that they don’t even look at the house. If you set a reasonable and realistic asking price, it will invite buyers to look at your home and, hopefully, to view it as their potential home.

2. Create a marketing plan: Start off by listing your home with a FSBO site like Buy Owner, which provides an extensive marketing campaign to attract tons of potential buyers to your home. After that, continue to market your home on your own, by posting signs, distributing flyers, holding open houses, and telling everyone you know. Call friends and family, use your connections, and do whatever you can to spread the word that your house is up for sale.

3. Make yourself available: Don’t let potential buyers pass you by. Be accommodating to their schedule, even if it’s not convenient for you. Be available to answer phone calls as much as you can, and if you miss a call from someone interested in your home, be sure to return the call as quickly as possible.

4. Make your home presentable: Curb appeal is incredibly important, as it is the first thing that buyers will notice about your home. Invest a little money and effort into making the exterior of your home look as pretty and inviting as possible. It could easily increase your profit by thousands of dollars. Once you’ve worked on the exterior, clean up the interior. You want your home to shine so everyone can see why it’s so special. You don’t want it to be buried under piles of clutter.

5. Check the buyer’s qualifications: After receiving an offer on a home, most people get so excited that they want to move ahead with the offer as soon as possible. So they take their home off the market after putting it under contract with the buyer. Then the seller finds out that the buyer isn’t even qualified to purchase the home. You can easily avoid this mistake by making sure the buyer is qualified when they make an offer.

Too many people give up too easily and end up listing with a realtor. If you find yourself frustrated after trying to sell your home the FSBO way with no luck, don’t give up hope! Even if it means losing a little bit of money, lower your asking price a little in order to gain more interest from buyers. Trust me, it’s not nearly as bad as the thousands of dollars that you would surely lose by using a realtor, and it will help you sell your home more quickly.

While searching for a new place to live, you deserve to be picky. This is especially true if you are moving with the intention of starting your business and running it inside your home. I know quite a few people that do this. With my experience in real estate, I can’t help but notice just how perfect the space in the home is for each of these people. Here are a few suggestions as to what you should look for in a new home, based on the type of business you would like to own.

1. Landlord

Renting out a room can be a great investment. Looking for a home with extra rooms, a fully finished basement or an attic is just the ticket. If you don’t mind sharing a spare bath, a kitchen and laundry facilities, pick the home with the extra rooms or attic space. If you’d rather keep some privacy and only share a washer and dryer, look for the home that has a fully finished basement with an extra bedroom, a spare bath and a second kitchen. Also, looking for a home in an urban area near a college could be beneficial. Students are always looking for a place to live. It sounds like a lot, but it is definitely worth the investment!

2.  Caterer

If cooking is your craft, and you are thinking of starting your own catering business, then the kitchen is the place to be! When searching for a home, be sure to pay attention to the appliances and the space. One home may include a refrigerator, a stove, and a built-in microwave, but the next might come equipped with double ovens, a refrigerator, an extra freezer, a dishwasher, a garbage disposal, and more! And don’t forget about islands and breakfast bars. They add even more space to prepare meals and store extra food and appliances. Walk-in pantries will also help you in the storage department.

3. Professional Entertainer

You’re a DJ. You provide nightly entertainment to clubs, bars and private parties all year round. Sure, you might have a website and place ads in local papers and magazines to get business. But how do you meet with clients? Why not convert the garage into your storage space for equipment and an office to meet with bar and club owners, bride and grooms and other party people!

The key is to find a home that has a heated (if you live in an area with rough winters) garage (attached or detached) with a key-pad entry and electric opener, a long driveway and plenty of street parking. This way, you can securely store your equipment, while still being able to park your car either in the driveway or on the street. Built-in shelving or a workbench would also be nice. And if you are storing your equipment in the garage, why not conduct all of your business there?

If the garage has electricity, it’s only a matter of time before you can install a phone and Internet connection. Add a desk, a rug and a comfy couch so you and your clients have somewhere to sit! Just think of the potential!

4. Hairdresser

Tired of working in someone else’s salon? It’s time to go out on your own! Imagine owning a mini salon of your own, right inside your house! The trick is to find a home that offers a generously sized laundry room and a basement that includes plumbing. Still not seeing the big picture?

Move the washer and dryer (if they are included) into the basement. You now have a large, empty laundry room. Not anymore! With enough space and unused plumbing, you can install a sink to wash hair, a vanity, a chair in front of the vanity (as seen in any salon), cabinet space for towels and hair products and a chair with an attached hair dryer. It may be a big investment, but think of the money you will make on your own! You create your own prices, thus setting your own salary.

5. On-line Investor

Have a knack for buying and selling on Amazon or eBay? Are you making a living off of it? If so, you need plenty of storage space for all of the products you are buying and selling. It is important to find large rooms with built-in shelves. You don’t want everything spilling out into the living room and dining room! Having several spare bedrooms is a good way to keep your business “your business” and no one else’s. You don’t want to entertain guests who happen to knock over your Lladro statues or damage your Hank Aaron rookie card!

As you can see, running a business out of your home is doable. You just need to work with the space!

(Disclaimer: This is not intended as financial advice. If you are considering purchasing a property to run a business from, consult a professional about how this will affect your taxes, what forms/permissions/zoning you need to obtain, and any fees that may be applicable.)