Creative Storage Solutions

Creative Storage Solutions

There are many ways to find space where none seems to exist. The key is to look and then look again.

Glimpse beyond a door, look above the window, peek below a table and put a cabinet in a place you never thought to put it before. Instead of looking around at eye level, look up and down. Think vertical. The air above you is fertile ground for storage.

Using storage cabinets
Dolores Cobb, a New York decorator and self-proclaimed veteran of tiny apartments says, "A tall storage cabinet (96" tall x 12" deep x 18" wide) can open up your floor and wall space and provide limitless storage solutions. She employs such cabinets with or without doors, depending on the available space. "Open cabinets can make a space look bigger. In tiny apartments, I use them on both ends of a small sofa, paint them to match the walls, install new pulls (on doors), then float a small end table in front of them. Sometimes Ill place a small painting or mirror on the doors they look fantastic."

Cobb says she gets the cabinets unassembled, often made of pressed wood and sometimes faux-paints them for drama. "In an hour of easy gluing and assembly, you can create enchantment and a much more appealing and organized life!"

10 Things To Do After You Sell

10 Things To Do After You Sell

You’ve sold your house: Escrow has closed, and you’ve handed your keys to the new owners. But while the deal is done, you have a few more things to do. In “House Selling for Dummies,” authors Eric Tyson and Ray Brown lay out things you can do to save money and increase your peace of mind, post-sale. Here are 10 of their tips:

1.     Keep copies of all paperwork related to the closing and settlement. Although it might be tempting to shred the paperwork or put it in storage, you’ll want to have it handy for April 15. When you file your taxes, you’ll need documentation for the expenses and proceeds of the sale. And after you file your return, you’ll want to keep the paperwork in case you’re audited.

2.     Keep proof of improvements and prior purchases. This is for tax purposes, too. The IRS allows you to add the cost of improvements to your home’s cost basis during the time you own the home, which is nice if you have a sizable capital gain. But to use this tax provision, you need to keep receipts for everything you spent on home improvement.

3.     Stay on top of tax laws. Because tax laws constantly change, you’ll want to keep current to avoid losing money. For example, a recent law allows you to exclude from tax a significant portion of the profits from the sale of your primary residence.

4.     Put your proceeds in a money market fund. If you sell and then don’t immediately buy, you’ll need a safe place to put your money. A money market mutual fund offers safety, a reasonable rate of return, daily access to your money and check-writing privileges.

5.     Choose your next home carefully. Scope out a variety of areas and housing options that meet your family’s needs.

6.     Don’t feel pressured to buy. Take your time purchasing your next home; rent for awhile if you’d like extra time or want to try an area out first before buying. “Keep in mind that you have two years to defer tax on your house-sale profits,” Tyson and Brown point out.

7.     Reevaluate your personal finances. If your situation changes before you buy another house—you get a promotion, have a baby, go through a divorce—you’ll need to rethink your finances and how much you can afford to pay for your new house.

8.     Think about what you need from an agent to help you buy. Carefully consider whether the agent who helped sell your house can meet your needs when you’re buying. Buying and selling require different skills. And, if you’re moving to a new area, you may want someone familiar with the area.

9.     Think through your next down payment. Brown and Tyson recommend putting at least 20 percent down on your next house in order to qualify for the best mortgage programs. If you can afford more than 20 percent, consider whether it’s better to put that money in the down payment or to invest the money elsewhere. “Younger home buyers willing to take on more investment risk should lean toward a 20-percent down payment, whereas older home buyers, who tend to invest less aggressively, should opt for larger down payments,” the pair recommends.

10.   Remember to send change-of-address notices. The U.S. Postal Service recommends you complete your change of address 30 days before you move.

8 Tips For Finding Your New Home

8 Tips For Finding Your New Home

A solid game plan can help you narrow your homebuying search to find the best home for you. When looking for your new house, make sure to take into consideration how long you plan to stay there.

House hunting is just like any other shopping expedition. If you identify exactly what you want and do some research, you’ll zoom in on the home you want at the best price. These eight tips will guide you through a smart homebuying process.

1. Know thyself

Understand the type of home that suits your personality. Do you prefer a new or existing home? A ranch or a multistory home? If you’re leaning toward a fixer-upper, are you truly handy, or will you need to budget for contractors?

2. Research before you look

List the features you most want in a home and identify which are necessities and which are extras. Identify three to four neighborhoods you’d like to live in based on commute time, schools, recreation, crime, and price. Then hop onto REALTOR.com to get a feel for the homes available in your price range in your favorite neighborhoods. Use the results to prioritize your wants and needs so you can add in and weed out properties from the inventory you’d like to view.

3. Get your finances in order

Generally, lenders say you can afford a home priced two to three times your gross income. Create a budget so you know how much you’re comfortable spending each month on housing. Don’t wait until you’ve found a home and made an offer to investigate financing.

Gather your financial records and meet with a lender to get a prequalification letter spelling out how much you’re eligible to borrow. The lender won’t necessarily consider the extra fees you’ll pay when you purchase or your plans to begin a family or purchase a new car, so shop in a price range you’re comfortable with. Also, presenting an offer contingent on financing will make your bid less attractive to sellers.

4. Set a moving timeline

5. Think long term

Your future plans may dictate the type of home you’ll buy. Are you looking for a starter house with plans to move up in a few years, or do you hope to stay in the home for five to 10 years? With a starter, you may need to adjust your expectations. If you plan to nest, be sure your priority list helps you identify a home you’ll still love years from now.

6. Work with a REALTOR®

Ask people you trust for referrals to a real estate professional they trust. Interview agents to determine which have expertise in the neighborhoods and type of homes you’re interested in. Because homebuying triggers many emotions, consider whether an agent’s style meshes with your personality.

Also ask if the agent specializes in buyer representation. Unlike listing agents, whose first duty is to the seller, buyers’ reps work only for you even though they’re typically paid by the seller. Finally, check whether agents are REALTORS®, which means they’re members of the NATIONAL ASSOCIATION OF REALTORS®. NAR has been a champion of homeownership rights for more than a century.

7. Be realistic

It’s OK to be picky about the home and neighborhood you want, but don’t be close-minded, unrealistic, or blinded by minor imperfections. If you insist on living in a cul-de-sac, you may miss out on great homes on streets that are just as quiet and secluded.

On the flip side, don’t be so swayed by a “wow” feature that you forget about other issues—like noise levels—that can have a big impact on your quality of life. Use your priority list to evaluate each property, remembering there’s no such thing as the perfect home.

8. Limit the opinions you solicit

It’s natural to seek reassurance when making a big financial decision. But you know that saying about too many cooks in the kitchen. If you need a second opinion, select one or two people. But remain true to your list of wants and needs so the final decision is based on criteria you’ve identified as important.

Economic Summary - Week October 2, 2013

Economic Summary – Week October 2, 2013

Hopes are riding high that our leaders on Capitol Hill will be able to reach an agreement toward a resolution on the debt ceiling debate and budget battle. Read on to learn what this could mean for home loan rates.

Congress continues to debate whether to raise the debt ceiling, which is now at $16.7 trillion. Although the debt limit deadline was technically October 1, the Treasury Department has said that it has enough funding to operate as usual until October 17. Failure to raise the debt limit by October 17 would most likely lead to an unprecedented default on the United States’ bills.

The uncertainty over this issue helped mortgage bonds improve last week, as investors moved their money to safer investments like bonds as they often do in times of uncertainty. Since home loan rates are tied to mortgage bonds, this also helped home loan rates improve last week.

In housing news, Case Shiller reported that its 20-City Home Price Index for July rose by 12.4 percent compared to July 2012. This is the fastest annual pace since 2006. However, from June to July there was only a 1.8 percent increase, which is the smallest monthly gain since March, as 15 of the 20 cities saw slower growth. This slowdown can be attributed to the rise in home loan rates over the past few months. New Home Sales did increase by nearly 8 percent in August from July.

Also of note, the government reported that the final reading on Q2 Gross Domestic Product was in line at 2.5 percent and unchanged from the second reading. Inflation as measured by Personal Consumption Expenditures remained moderate in August while Personal Incomes and Spending were in line with estimates. These readings give the Fed cover to continue its bond purchase program known as Quantitative Easing which has helped home loan rates remain attractive.

All of this news reinforces the point that now is a great time to consider a home purchase or refinance, as home loan rates remain near historic lows.

Forecast for the week

The debt ceiling debate, budget fight, and the Jobs Report for September are three key items to look for this week.

·  Economic data kicked off on Monday with manufacturing numbers from the Chicago PMIreport, followed by national manufacturing data from the ISM Index on Tuesday. 

·  Wednesday will bring the first leg of the week's jobs data with the ADP National Employment Report. 

·  As usual, Weekly Initial Jobless Claims will be reported on Thursday. Claims have averaged near 300,000 the past three weeks.

·  ISM Services Index, a national non-manufacturing index, will also be released on Thursday. 

·  That leads us to Friday's Non-farm Payrolls and the Unemployment Rate, which will be closely dissected by both Wall Street and the Federal Reserve. 

Remember: Weak economic news normally causes money to flow out of stocks and into bonds, helping bonds and home loan rates improve, while strong economic news normally has the opposite result.

Courtesy of:  VAL TIEMANN | Sr. Mortgage Loan Officer Bank of America

Making a Wise Investment Improvement

Making a Wise Investment Improvement

Owning investment property can be a trying experience. Whether or not you make a profit has a lot to do with the decisions you make, such as how much rent to charge, when to make big additions or renovations, etc. Also knowing what renovations to make can help you to maximize your revenue.

Improving investment property is different from improving your own personal home in a few ways. For one thing you don’t have to live with the outcome of your renovation. You might also be able to write off some of the expenses from renovations on your taxes. Finally (and somewhat connected to my first point) you won’t be enjoying the fruits of your labor.

When renovating investment property it’s important that you not take it personally. You’ll want to make good workmanlike improvements so that you have happy tenants who want to inhabit the property for a long time, but you don’t have to go all out and if you like profits sometimes it’s important that you don’t. For instance, if you have a duplex that you rent out in a neighborhood filled with other duplexes you don’t want to over improve your unit.

In this way renovating investment property is exactly like renovating your own home: if you expect to see a profit or return on your investment you can’t improve your property to a high degree over those in the neighborhood. You might love the idea of lavishing your tenants with granite countertops and hardwood floors, but if the unit is located in an area with low to middle income tenants you might not be able to charge sufficient rent to see a profit from your improvement investment. Those tenants will likely choose the unit down the street that has adequate features for their needs with a lower monthly rental expenditure.

Making smart choices when it comes to improving investment property will help you maximize your profit and return on the investment. You should of course keep your property well maintained, but be careful not to let your personal sense of graciousness cost you. For more tips on renovating investment property visit MICM.com.au and Renovationrobot.com.au.

How To Buy a Home: Steps For The First Time Home Buyer

How to buy a home: steps for the first time home buyer

If you are thinking about buying a home for the first time, you may be a little baffled about where to start. That's understandable. The process can be more than a little intimidating. Obviously, being a real estate agent in Fountain Hills, AZ, my first piece of advice would be to enlist the help of a real estate agent. If your budget is tight, don't worry because your buyer's agent is paid through commission when you eventually purchase a home, so their services are free to you!

Besides getting a real estate agent, here are the steps I recommend you follow when buying your first home:

1. Figure out what you can afford.
Common wisdom is that your mortgage payment shouldn't exceed 25% of your annual income. Start by calculating this figure and compare it to your current rent payment. If 25% is more than what you currently pay, it can be wise to spend 6 months saving the difference between your rent payment and your potential mortgage payment to see how you do. From there, you can adjust accordingly. Once you know the mortgage payment you can afford comfortably, then you can factor in current mortgage rates and how much you have saved for a down payment and closing costs to get a general idea of the price of the home you can afford. There are several good online calculators available for this. I recommend the one at CNN Money.

2. Shop around to get pre-approved for a home loan. 
In today's financial environment, it is very important to get a lender pre approval letter before you start making offers. You can begin this research on the internet. Most banks post their current interest rates online. There are even sites like BankRate.com and LendingTree.com that will bring up rates for several lenders at once. Once you have it narrowed down to a few lenders, you can go ahead and apply for approval with them to see who actually gives you the best rate and closing cost combination. Most financial institutions have friendly agents that are happy to walk you through this process. If the research stage of loan shopping seems too overwhelming, another option is to look for a local mortgage broker that can do the footwork for you.

3. Determine Where You Want to Live
When you start shopping for homes, it can be easy to get caught up in the luxuries of a nice home that's in a bad neighborhood. Remember community contributes just as much to quality of life as the home itself - and I would argue MORE then the house itself! If you haven't nailed down exactly what community you want to live in, (perhaps you are looking at a large metropolitan area like Phoenix), you need to spend some time really considering this. Think about distance from your employer, the quality of school districts, crime rates and traffic congestion in the areas you are considering. Fountain Hills is a just a quick 25 minute drive from major employers in Scottsdale, Mesa and Tempe and we boast low crime rates and quality school districts. We also have a sense of community here that just can’t be found anywhere else in the valley.

You might also consider outdoor recreation, entertainment, places of worship and community events. In Fountain Hills, we have the several outdoor festivals throughout the year that bring the community together – not to mention our famous annual Thanksgiving Day parade. We also have quick access to hiking in the McDowell preserve, mountain biking in McDowell Mountain Regional Park, boating on Saguaro Lake, and cool weather camping just an hour north near Payson.

Think about what you need quick access to, and what you are willing to drive for. After narrowing down your search to a particular community, this is a great time to contact a Realtor that specializes in that area if you haven't already done so.

4. Determine What You Need in a Home
This is where you make your needs/wants list. Number of rooms, parking, yard space, square footage, kitchen space are probably the most vital things on this list. You might also consider how move in ready the place needs to be (do you need to move quickly or do you have the time/funds to fix up the home before you move?). Here in Arizona, a pool is often a requirement. Style, fixtures and flooring are also considerations, especially if you aren't planning on doing any major remodels. Fountain Hills has homes built in every decade since the 70’s, so you will encounter a wide range of architectural and interior design styles during your home search here.  Couples, get ready to put on your negotiating hats! Once you have your needs/wants list, share it with your Realtor so they can research homes on the market that might meet your needs.

5. Visit Homes
Once your realtor has found some potential homes, it's time to start the touring process. It's often good to bring a notepad and a camera when checking out potential homes since it can sometimes be hard to remember one home from the next, especially if you are seeing more than one in one day. Make a list of the pluses and minuses of each home as you tour.

6. Start the negotiation process.
This is where you really need a Realtor that knows what they are doing. Negotiations can be tricky and can sometimes take several weeks or more, so work with your Realtor and don't buy the furniture until you actually have the keys! After a price has been agreed upon, make sure to have the house inspected. The contract is usually written so that the price can be re-negotiated or backed-out of if the home inspection reveals that significant repairs need to be made.

7. Move into your new home!
When all the negotiations are complete, it's time to sign a whole bunch of paperwork and load up the moving truck! You are now a homeowner!

If that process sounds a bit stressful, don't be overwhelmed. Home buying doesn't have to be stressful! For home buying success in our competitive Fountain Hills real estate market, use the services of an Accredited Buyer Representative! I have helped Arizona home buyers for over 30 years, and I'd like to help you too!

When to Leave it to the Pros

DIY: When To Leave It To The Pros

In today’s economy many homeowners struggle with maintaining their property but understand the importance of doing so. This has led to a surge in DIY projects being taken on by individuals who have previously barely hammered a nail. So how do you know when its better to tackle the project yourself or leave it to the pros?

Major Systems Repairs & Upkeep

Your home is comprised of several major systems: electrical, plumbing, HVAC, etc. When these larger components need routine maintenance it may be tempting to take on the challenge yourself (with the help of YouTube of course!), but let your common sense be your guide.

Unless you have previous experience working intimately with these systems, trying to tackle maintenance or repairs to them could end up leaving you in a worse mess than when you started. Instead it’s a better idea to let a professional handle the job, albeit more costly. By completing the work yourself you risk major damage or even total destruction to your property (or yourself) at which point you’d have to contact a professional to clean up after you anyway.

Cosmetics & Renovations

The advent of the internet changed many things including how we think about our personal capabilities. Now with the help of Google and YouTube you can find instructions and video tutorials for completing tasks ranging from spreadsheet creation to changing your car’s battery. Instructions for DIY home improvement projects are no different or more difficult to find. So even if you’ve never held a paint brush before you can learn how to strip wallpaper and paint a room on sites like the DIY Network, one of the best resources for DIY information.

For fairly simple cosmetic projects like painting, you can easily tackle the project yourself with a little guidance, but for larger projects such as tearing down walls it’s still a good idea to call a pro. You never know what lies inside that wall that’s blocking your wonderful open concept dream and simply throwing caution to the wind could have disastrous results.

Likewise if you get started on a simple project such as painting and discover that even with direction you’re just not getting a good result you may want to stop and let a professional take over from there. After all, this is your home and it constitutes a large financial investment so you’ll want any work done on the place to be of good workmanlike quality.

In the realm of what projects can be completed yourself a little common sense and humility can go a long way. If you aspire to complete a project but just don’t know what you’re doing when you get into it don’t let your pride stop you from calling in a professional. In the long run you’ll be much happier with a professional quality result that doesn’t require more costly repair of your personal mistakes. To learn more about when NOT to DIY check out this video.