FSBO Jane

Why do we feel the need to live in outrageously oversized homes? Do we really need master suites with bathrooms the size of a hotel room? Do we really need a home with an office, a den, a workout room, a toy room, a media room, a living room and a family room? Do we really need 20-foot vaulted ceilings? Do we really need both dining rooms and table areas in the kitchen?

The simple answer is no. That’s why lots of people are choosing to downsize during this tough economic time. But how do you know how much of a downsize you can handle? You decide how much space you really need to survive. As it turns out, not much!

This article from the Mother Nature Network displays the 10 smallest houses in the world. Let me tell you, they are small. Tumbleweed Tiny House Company has been making houses as small as most people’s closets, but somehow they still encompass a workspace, a bedroom, a bathroom with a toilet and shower, a living space and an outdoor porch, not to mention architectural appeal! Micro Compact Homes measure out to about 266 centimeters cubed and somehow still include two double beds, a bathroom, a lobby, a dining space for up to five, a kitchen and modern entertainment technology. Rollit homes turn like a mouse on a wheel. When you walk in the center of the home, the home turns and reveals different uses, such as a bed, a chair, a table, a toilet or a kitchen sink. One guy even created a trailer home that connects to his bicycle and includes a solar oven and a heating unit. It doesn’t get more eco-friendly than that!

What does this prove? People around the world are finding ways to live comfortably in smaller spaces. No, it doesn’t mean that you need to make a change this extreme. But it does definitely give you something to think about.

It’s an age-old real estate dilemma: when choosing a new home, do you go for size—more bedrooms, greater square footage, a big backyard—or setting—in a good school district, near work, near friends?

For many homeowners, the answer involves compromise, even in today’s buyers’ market.

A recent article in the Wall Street Journal pinpoints the issue by describing the story of a North Carolina couple faced with choosing between the house they wanted and the schools they wanted for their kids. In the end, Kiely and John Adams missed out on a compromise property that gave them some size in their desired location, due to complications with their own home “came up short on the appraisal.” Now they are staying put longer than expected, with their kids about to start a new school year.

The truth is, although not all home buyers look for locations with good schools, buying a home in a good school district is a smart investment. Why? Those areas hold their value better, even in tough markets.

If you’ve ever felt more passionate about your home’s appearance than your own, Meghan Daum’s book, “Life Would Be Perfect If I Lived in That House” will be easy to relate to.

Called “by turns disarming and tedious” by Publisher’s Weekly, Daum’s book chronicles her personal moves across the USA, from NYC to Nebraska to California, and the way those moves revealed her own understanding of self.

I have not read the book, but I find its premise intriguing. I’ve long thought our homes define us, especially as women. We want to nest, to cultivate, to take care of our little space—we feel people judge us by our homes, and we want to be judged well.

If any of you have read the book, I’d love to hear your thoughts!

This article from the Chicago Tribune explains the current sad state of affairs of living conditions in and around Chicago. Because of the poor economy, I’m sure other places in the country are experiencing the same scenarios. With over 23,000 foreclosures reported in Chicago last year, thousands of people have left their homes and moved into the basements, attics or spare bedrooms of family and friends. As the other article states, this poses threats to public safety, along with affecting street parking, classroom sizes, testing scores and more. Already, numerous people have died in a fire that engulfed an overcrowded home in a Chicago suburb.

Because jobs are scarce, it’s hard for people dealing with foreclosures to find affordable living and new jobs in a new location. However, my advice to these people is to check out FSBO real estate. People selling FSBO are looking to save money too, by not paying commission to real estate agents. Still, they are desperate to find buyers, and real estate advice right now clearly states that it’s a buyer’s market. Therefore, individuals or families who are forced out of their homes could search for rentals available at a fair price. Eventually, when their credit improves, they could find an extremely affordable home to purchase. Or, if a foreclosure hasn’t occurred yet, they could give up their difficult mortgage payments now and find a really nice house more in their budget.

So, if any of you foreclosure victims are reading my blog, my advice is to visit www.BuyOwner.com and search for houses or apartments within your price range. As of right now, prices are insanely low! People are desperate to sell, and the deals are incredible. Buy Owner is a credible company that offers a free, simple search engine. Why not browse what’s available and leave your friend’s basement sooner than later?

Good luck to everyone dealing with foreclosures and tough mortgages right now.

I came across a helpful article recently, which explains what does and doesn’t make a motivated seller a good thing.

I know what you’re thinking: when would a motivated seller not be a good thing?

Well, according to the article, it’s obviously fantastic to buy from a motivated seller in cases where:

1) A bank is wanting to get rid of a foreclosure and sells it at a reduced rate, under market value.

2) The sellers are moving/relocating and need to sell quickly, so they offer it at a reduced price.

On the other hand, it’s not fantastic to buy from a motivated seller when:

The house is a disaster, filled with defects and in need of major repair.

Reading the article, I was reminded of the age-old wisdom, “If something looks too good to be true, it probably is.” While of course there are deals to be had in real estate today, it pays to be cautious. Just because something is a good price doesn’t mean it’s a good deal.

So how can you avoid getting stuck with a lemon of a house?

• Get a home appraisal and/or inspection done before purchasing.
• Be on the lookout for potential problems in the home.
• Find out why the sellers are selling.
• Don’t be in a rush.

What about your thoughts? Have any of you been at the good or bad end of a motivated-seller deal? I’d love to hear about it!

There a few things in life that I just love! Two of them happen to be travel and real estate. So, when I’m vacationing in New York or California, I may see a building, stay in a hotel or visit a friend’s condo and just start wondering things like “How much does this place cost?” “Do any celebs live here?” “How’s the neighborhood?”

I recently stumbled upon a really cool Website called Curbed.com, where people talk about New York (and the Hamptons), Los Angeles and San Francisco real estate.

One of my favorite features of Curbed.com is the little game they call Pricespotter. They post photos of a given property, then you try to guess the selling price. They’ll reveal the answer the next day, but it’s so intriguing to look at these gorgeous kitchens, living rooms and master suites and try to figure out how much they contribute to the overall value of the home.

I’m hoping that Curbed.com will eventually cover other markets like Chicago or even European/UK destinations! I also noticed that Curbed.com partners up with some other interesting, touristy sites (Eater and Racked) that explore restaurants and fashion.

For most people, the thought of buying a home with 100% cash, no mortgage, seems like an impossible dream. But the benefits—no monthly payments, full equity, financial freedom to pursue other interests or opportunities—cannot be denied.

Perhaps that’s why some of today’s home buyers are doing just that: buying their homes with 100% cash. Take a look at these clips from around the Web:

• BuyaHousewithCash.com

  “For many people, the cost of renting or paying a mortgage is the biggest chunk of their monthly budget. When that cost is eliminated, you have the financial security that most people only dream about.
  People who own their own homes without a mortgage know that a minor downturn in the local job market or the national economy won’t put their home at risk of foreclosure. True home ownership may also allow you more financial flexibility. “

• Xin Lu at Wise Bread
  

  “You actually own your house - I think psychologically there is a big benefit in knowing that you own your house free and clear. You also free up quite a bit of income because you will have no rent or mortgage.”

• DaveRamsey.com
  

  “The most ideal way to buy a house is the 100%-down plan. Sounds weird, doesn’t it?! But think how much fun that would be! Don’t borrow money. Period. If I can’t get you to postpone the purchase that long, I strongly suggest you save a down payment of 20% or more, choose a 15-year (or less) fixed-rate mortgage, and limit your monthly payment to 25% or less of your monthly take-home pay.
  You want your new home to be a blessing, not a curse. If you buy a house with nothing down and a huge monthly payment, you’re inviting Murphy to move into the spare bedroom. You do not want Murphy as a housemate - believe me! Slow down and realistically think through everything before you jump head-first into making this major purchase. If you don’t, you’ll just be giving Murphy an open invitation to overtake the house.”

• MoneySavingMom.com
  

  “As you will recall, our big goal for this year is to save up enough to pay 100% cash down on our first home. This has been a long-time dream of ours and we’ve been actively working the past year towards this. In actuality, though, we’ve been dreaming and working towards this even before we got married.”

I have a lot of respect and admiration for people who pursue this goal. And I have to say - reading their thoughts only increases my faith in For Sale By Owner home selling. By selling with a reputable FSBO company, you get all the important exposure and advertising, while keeping the large chunk of commission that could have gone to an agent. By buying through a FSBO home, you get the best price possible, since 6% doesn’t have to be added on for commissions. Makes sense, doesn’t it?

At the end of 2009, I talked about how I made a list of all my goals and accomplishments within the past year. With the beginning of 2010, you should create a to-do list for the upcoming year. A new year means a fresh start, and anything that you didn’t accomplish in 2009 you can now accomplish in 2010! This is your year.

I don’t mean make a to-do list that could be mistaken as a grocery list. I mean, sit down (perhaps again with a mug of hot chocolate) and think about where you want your life to be by the end of 2010. That gives you a whole year of planning! Do you want to sell your house? Buy a new house? Relocate to a new town, or state, or country? Redecorate a room, or the entire house? Add landscaping? Start growing your own produce? Scratch down some ideas, and your reasoning behind your ideas. Your inspirational words might just end up being the motivation that completes your goals!

Once the goals are permanently written on paper, keep that paper nearby for you to often look at and remember. When you complete one of your goals, share your accomplishment with the rest of us as inspiration!

What do all of these have in common?

• Seaside homes in the Hamptons.
• Mansions in the Hollywood Hills.
• Humble abodes in wine country.

They’re vacation homes. They’re trophy homes. They’ve been recession-proof.

Although a good number of homes across the U.S. fell privy to foreclosure proceedings and their sales prices fell short of market value in the last few years, there are plenty of places that will always sell. And why is that? They are always in high demand.

Most of the properties situated in a New Yorker’s favorite getaway, a star’s preferred LA neighborhood or a West Coaster’s ideal summer spot are not used for permanent residence. These homes are a luxury, which means that the current owners (and future owners to come) can afford to pay a lot of money for these pricey pads.

It is obvious what makes these abodes vacation homes, but what gives them a “trophy” status? The Hamptons, the Hollywood Hills and places like Martha’s Vineyard have long been associated with America’s elite… the money makers. The neighborhoods are a sort of Who’s Who of well-to-do celebrities, socialites, doctors, lawyers and the like. How many times have you seen a character in a TV show or a film just dying to take a trip to one of these fancy spots?

Aside from wanting a place where they can enjoy a little getaway from the stresses of everyday life, many owners of these luxury properties are also benefiting from renting them out when they’re not using them. Someone out there is going to travel, and if you’ve got a place in any one of these popular destinations, you’ll most likely make bank on visitors coming in each weekend, or even for a week at a time. Foreigners from Europe and Asia are also coming over and purchasing homes in these “exotic,” sought-after locations to capitalize on the endless money-making opportunities.

I’ve always said you should invest in a vacation home. But do you think you would spend the money just for the elite status of being located in one of these hot spots? I think I’d prefer to own a country cottage on Lake Michigan somewhere. A heck of a lot cheaper!

One of the many differences in selling your home FSBO (for sale by owner) is that you are solely responsible for impressing potential home buyers that come to view your house. Since you don’t have an agent to constantly remind you of what you should do before buyers come over, here is an open house checklist, courtesy of RealEstateABC.com, to keep in mind.

1. During the day, open all the blinds and allow natural light to stream in. In windowless rooms or rooms where natural light doesn’t do enough justice, turn on the light. If it’s a cloudy day, turn on all the lights. At night, turn on the lights inside and out. Lights make a room appear homey and lived in, and turning on lights proves that you have nothing to hide.
2. Lighting a bunch of candles or spraying fragrances before potential homebuyers show up will make it seem like you’re trying to hide a nasty smell. Not to mention that you could overdue it and trigger a person’s allergies. Instead, light just one candle, or use freshly baked cookies or freshly brewed coffee as an aroma.
3. Plan ahead with your pets. If you’re leaving while your home is being shown, take your non-caged pets with you in the car. If you are remaining home, designate an area of your backyard for your dog, and designate one room of your house for your cat. These areas should be easily and quickly accessible for surprise visits. Clean litter pans and cages regularly, and provide a designated place to store toys. Owners with pets should even sweep, dust and mop more often, so that potential homebuyers with allergies aren’t miserable while viewing your home.
4. Empty out the trash more often. Depending on how much trash you acquire, every other day should be sufficient. If your kitchen or bathroom garbage doesn’t have a top, change those everyday. A clean garbage bin will decrease odors, and it will not distract buyers from what is important.
5. Make it a habit to clean up after yourself. Wash dishes right away, and don’t leave any dishes around the house. Make your beds. Put away toys in bins. Designate an area for the TV remotes. Put away video games. Keep shoes in a box and coats in a closet or on a coat rack. Don’t allow any object to look scattered or misplaced. The buyer will notice it, even if it’s second nature to you.

For more ideas, here are some articles that give great open house tips!

• Top 10 Home Staging Tips
• 101 Tips for Selling Your Home
• Top 5 Mistakes Sellers Make When Showing Homes.