New development homes are springing up all over the West and are a tempting option for many. They can represent savings, good value for money and who doesn’t love the prospect of a brand new home with all modern finishes? But before you jump in and commit, here’s what you need to know about new development homes.
 
Pros of New Development Homes
Value: They can be good value and give the space you need without the premium price tag of an older home.
Modern: There’s a lot to be said for modern appliances, electrics, plumbing, and contemporary design. Many people enjoy the feeling of a brand new home, not to mention not having to worry about repairs.
Communities: Developments are often close-knit communities with communal areas, which many people like. Homeowners’ associations are often established in new developments.
Choose your finishes: Depending on the development and price level, you might be able to choose certain furnishes and layouts.
 
Cons of New Development Homes
Cookie cutter style: These homes are often very generic with entire neighborhoods looking the same. If you like individuality, they’re not for you.
No charm: People who like the charm that comes with an older property will be disappointed with a new development home.
Quality varies enormously: Many modern homes are not finished to a high standard. Some developers will cut corners, leaving you with costly repairs. At best this could be cosmetic, at worst it could be structural.
Outside Space is often limited: In new homes, the back yard areas tend to be smaller than with older homes of the same size.
 
3 Golden Rules when Considering a New Development Home
“Buy the builder”: This means only considering developments by reputable builders with a track record of developing high quality homes. Do your research and ask a round. Calling planning departments and local real estate agents is a good start. Ask if developers finish their projects on time and fulfil their contractual obligations. Draw up a list of quality developers and ones to avoid, based on criteria like build quality, warranty, customer service and reputation.
Carry out Inspections: Have inspections carried out during the process and after. This ensures that the developer is doing everything it agreed to. A contractor can examine the quality of the work, allowing you the opportunity to get it changed before it is too late. When completed, take a final walkthrough to check for defects or shortcomings.
Always get a Warranty: Make sure the home comes with a warranty provided by an independent insurance provider. Developer warranties may not be up to scratch, so always ensure that the warranty covers repairs for a fixed period and includes plumbing, electrical, heating, AC and structural defects.

The advantages of cleaning the windows in your home are often obvious. But when staging your home for sale, the difference can often be in the fine details.
The concept of curb appeal is based on first impressions of the buyer, and the most astute buyers will notice clean windows. On the interior, clean windows allow bright, natural light show off the best features of your home. Outside, they will help create a clean and inviting view from the street.

Sure, anything to help your curb appeal is worthwhile. But you might notice an actual difference in the value of your home and a return on the investment of simply getting your windows cleaned.

Consider that 75 percent of people who first view a property online will drive by before they contact an agent, according toHomestaging for Dummies. Not only does curb appeal sell 49 percent of homes, per the National Association of Realtors, a good first impression of a home can actually add 5 to ten percent to the value of the home, according to the president of the National Association of Real Estate Appraisers.

Money Magazine surveyed 2,000 real estate agents and found out the improvement that generates the best return on investment is clean windows, estimating the ROI on window cleaning to be an astounding 768 percent.

We know curb appeal matters, and the lesson here is to not overlook your windows.
For South Bay residents, you might want to consider Fish Window Cleaning, a local company established in 1978 that offers real estate specials.

Every home buyer should know that no house is perfect. Whether the property is old or new, a home inspection is likely to turn up issues that need to be repaired.

So what can a buyer reasonably request or expect a seller to fix? And what are the factors involved?

The first thing to know is that everything during the purchase of a home in California is negotiable. Just as important, there are no set rules following a home inspection, and the seller is not obligated to fix anything. According to Realtor.com, it is not in your best interest as a buyer to make requests for aesthetic or non-essential repairs. Your focus should be on safety concerns and big-budget expenses, and the best way to make reasonable requests is to rely on what was uncovered during an inspection. A rule of thumb for some buyers is to request only things that if they are not done, they would back out of the purchase.

Sellers have different motivations for making or not making repairs. They will often agree to repairs because once an issue has been noticed, it is then material and needs to be disclosed to future buyers. Some sellers may be hesitant to put any funds into a home they are selling, especially if they believe they can get offers on the home without those repairs. Typically, it is in the seller’s best interests to pay for fixes that need to be done to sell the property, as long as they are reasonable requests.

Common repair requests:

• Sewage pipes: A sewage inspection will show tree roots in pipes, or if they are made of tar paper, which disintegrate after about 50 years. This is an expensive job, but most sellers will agree to repair.
  
  
• Galvanized water pipes: These pipes often suffer from leaking and rust issues, as well as mineral buildup, which can impact water pressure. It is not unreasonable to ask sellers to repair leaking galvanized piping.
  
  
• Roofing: Sellers often provide a roof certification, issued by a roofing company, which won’t be issued if recommended repairs have not been made. Sellers might pre-pay for repairs or offer cash credit for repairs.
  
  
• Electrical: Some sellers might agree to rewire a pre-1960s house that has ungrounded outlets. Most will refuse given the expense.

If you are preparing to sell your home or have already started the process, it’s important to understand you can learn from other’s mistakes. And there are three time-honored mistakes that stand out above the rest that many sellers make.

There can be a lot of work involved in selling your home. But avoiding these pitfalls – the biggest mistakes a seller can make – will help you get top dollar for your home as quickly as possible.

Pricing
If there is one rule to remember, it’s this: Your home is only worth what the market is willing to pay you for it. Overpricing is the biggest single mistake a seller can make, and many are tempted to list their homes for sale based on what they paid, or outdated prices, instead of the current market conditions. Your agent should know the market, inventory and current prices as well as the current and past comparables in a market analysis. If you set the price too high, it will sit, and a long stay on the market will bring about questions from wary buyers, and inevitably a reduction in your asking price. Don’t invite the opportunity for buyers to negotiate. There is a number that will get your home sold, and sold quickly.

Condition
The appearance and condition of your home are the first, and most important, impressions on a buyer. Most owners do not want to invest in a home that they plan to sell, but the condition impacts both appeal and price. Ask yourself this: Do you want to sell your home quickly at the highest possible price? Good, then confer with your agent for suggestions. Don’t neglect to fix simple things that are broken, because it’s a red flag to buyers about what they can’t see. Walk through your home like you’re a buyer, and remember small things matter.

Marketing
Simply put, don’t skimp on marketing because you think it’s not important. The best way to guarantee you will sell your house is to exhaust every marketing opportunity available to you, ensuring it reaches the most people buyers possible. It’s a numbers game: The more buyers (and agents) who see your house, the better your chances are of selling it. Give your agent time for a proper marketing plan, which should include professional photos. Cast a wide net, and understand the impact of social media and online marketing – 90 percent of buyers use the Internet to search for a home, according to the National Association of Realtors.

Whether you’re buying your first home or are a real estate veteran, the closing process can be a whirlwind. “Closing” simply refers to the day you complete the deal. You close on the property purchased and on the mortgage or loan used to finance the purchase, and the seller receives the money.

Closing can be stressful for anyone, with a lot of details, a lot of paperwork and a lot of signatures. Some of what happens can depend on where you live and local customs, but being prepared and knowing what will happen can ease your anxiety.

A closing can take place at a number of locations – typically at the offices of a title company or your lender or real estate attorney – and a neutral third party such as a closing agent will preside over the documents, signatures, instructions and payments.  Depending on the situation (such as what state you live in) the closing could include your attorney or real estate agent, the seller and their attorney, a representative from your lender or a title company, a closing officer and a notary public.

As part of the closing process, you will review a series of documents to make sure they are correct and you know what you are agreeing to. Most closings are actually two closings – on your house and mortgage – so there will be documents for each. The main mortgage documents include a Promissory Note, Truth in Lending Statement, Mortgage or Deed of Trust, and Monthly Payment Letter. The documents dealing with the real estate include a Settlement Statement, Warranty Deed, Proration Agreements and Abstract of Title, among others. Bankrate.comand Zillow.com both offer helpful lists along with explanations.

Once certainty is that your closing day will also require some money on hand. A certified or cashier’s check will be required to pay your down payment as well as escrows (interest, taxes, insurance) and your portion of the closing costs, which are agreed to ahead of time in the Settlement Statement. You will also need to show proof of homeowner’s insurance and might be required to open an escrow account with your lender.

The final step in closing is when the closing agent records your deed with the county government. Once the deed and security instrument are filed, the property is officially yours.

For more, the U.S. Department of Housing and Urban Development also offers some more detail on what to expect at closing.

Let’s face it, moving isn’t always a great experience. It can be stressful, time-consuming and irritating. But with a little planning and preparation, it really is possible to reduce your stress and save a little sanity.

Whether you’re moving just yourself across town or packing up an entire family for a cross-country move, you can make it easier on yourself with a few helpful tips:

Tips for stress-free packing

• As obvious as it sounds, pack as much as you can ahead of time, saving yourself stress on moving day by packing items like out-of-season clothes and cookware in advance.
• If you don’t use it, don’t bring it. Make your move simpler by leaving behind items in the garage, attic and basement you haven’t used in more than a year.
• Keep valuable possessions, computer files and paperwork with you at all times, using a lockbox for items you won’t need right away.
• Utilize wardrobe boxes for your clothes and hangars, which are also great for comforters, blankets and pillows.
• Pack smart and systematically by putting things in the same room together in the same boxes, along with any accessories, and label what each box contains and what room it belongs.

Tips for hiring movers:

• Research companies by getting recommendations from people you know, and go online for an initial screening of customer reviews.
• Once you have narrowed your choices, get several estimates by having moving consultants come to your home. Don’t get estimates over the phone.
• Review the estimates carefully and make sure they are a “written binding estimate”. Compare the bids to see why some are high and others are low.
• Review the contract and make sure you understand everything in the agreement before you sign it. Take your time and ask questions rates, charges, liability and dates. Know whether it is binding or non-binding.
• Ensure your preferred company has the license and insurance it needs on safersys.org. Ask about the company’s U.S. DOT number and research complaint histories at protectyourmove.gov.

Tips for moving yourself

• Have the packing finished before you start moving it. When the friends you have recruited arrive, having packing left to do only slows the process.
• Renting the right truck, trailer or van is essential. Don’t get caught with too much or too little space than you need or get something you’re not comfortable driving or pulling. Rent in advance to save.
• Utilize tools that will make the whole process easier like mattress bags, furniture covers, furniture pads, forearm lifts and hand trucks. They are often worth the price.
• Give yourself extra time. The need to rush will only make moving more stressful, so schedule an extra day for things you can’t control, like traffic, parking problems or rental issues.
• Pack the truck smartly, using straps and furniture pads to make sure everything is tight and secure. Inevitably, your items will shift during the move. Keep valuable possessions and fragile items with you in a separate car if possible.

How to plan your restoration, remodel or addition
If you have already decided that a renovation project or addition to your home in is in your near future, know that it is a big undertaking. You already have the dream, so the next step is to put a well-thought out plan in place to turn your ideas into reality.

A well-planned project will save you time, money and avoid headaches while helping you reach your goals, whether you’re looking to boost the value of your home, add to its character or simply extend the square footage.
Get ahead of the game and your project off to the right start with these basic planning guidelines:

Wish List
Start off by making a list of things you want, what issues you want to resolve, and what you want the project to achieve.
Don’t be afraid to sketch out your ideas. Knowing the end result will only help the process.

Eye On the Future
Think ahead about how long you plan to stay in your home or might someday sell, and how the home will fit the future of your family. Make sure the project fits the style of your home, as well as the neighborhood, and is cost-effective for the value of the improvements if you sell sooner rather than later.

Know the Rules
Research any restrictions on your property as well as local ordinances. Make sure to get the required permits to meet local codes and safety regulations.

Learn From Others
Check in with friends and family who have completed projects to find out what went right, and what didn’t. Find a contractor, architect or designer in your network to seek some friendly advice.

Make It Match
Focus on keeping your project in proportion to the rest of the house and consider the building materials of the original structure. Repeating architectural features and designs, as well as choosing matching or complementary materials, will avoid an eyesore.

Budget, Budget, Budget
It’s very possible, even likely, cost overruns will cause you to go over your budget. Review all of your material choices to clearly understand where you want to go high-end, and where you can save. Make sure to include a contingency cushion in your overall budget. Explore home-improvement loans, home equity loans and re-financing options.

Choose Your Crew
All DIYers must decide on how much to take on yourself and what, if any, parts of the project to hire out. Once that is done, research licensed contractors and subcontractors to ensure they are qualified and have proper insurance. Make sure they understand your plan and vision, and negotiate a written contract to avoid misunderstandings.

Plan For Problems
Even the best-laid plans can run astray. Understand ahead of time there will be issues and you will need to remain flexible. Have an open mind to how to solve problems that will surely arise without creating further delays.

It's no secret that first impressions are important. So when it comes to your home, don’t overlook the impact of curb appeal on potential buyers and the value the exterior appearance can add to the sales price.

Adding curb appeal doesn't have to be expensive, time consuming or complicated. By addressing the basic curb appeal principles, you can create a warm, friendly and inviting atmosphere outside and a strong initial perception of what's left to see inside.

Remember, the outside of your home is the first thing a buyer will see. Try to view it from their perspective, and focus on improvements that will appeal to the greatest number of buyers.

The Entrance
Create a focal point by painting or refinishing your front door. Paint faded trim and molding, and replace worn hardware, light fixtures and house numbers. Add style and appeal to the entryway with symmetry and a blast of color in mind, such as potted plants and sidelights.

Lighting
Not everyone will see your home during the day. While also providing safety and security, lighting along the walkway is aesthetically appealing and leads guests to the front door. If installing wired lighting isn't an option, go for lower-voltage solar powered fixtures. 

Do look down
The condition of the walkway and driveway can have a major impact on curb appeal. Remove weeds and overgrowth, and repair cracks or stains. Simply power-washing, resurfacing or resealing can sometimes do the trick. For major impact that adds value, replace concrete with pavers, stone or bricks for a custom feel, or use them to widen existing walkways.

Landscaping
Terrible landscaping is an automatic turnoff. Instead of rebuilding your landscaping, improve what you have by cleaning up weeds, overgrowth and dead plants; restoring color with new plants; adding mulch and defining perimeters. Focus on a mix of colors and sizes at the front of the yard, along the walkway and immediately in front of the house for dynamics that accent and frame your home.  

Dress it up  
Paint is inexpensive, but a few new coats can transform the look of a home. Along with obvious defects, give a fresh look to flower boxes, shutters, railings, trim and molding with accent colors for a quick and inexpensive facelift.

You might be ready to buy a home, but are you prepared?

Regardless of whether you are a first-time home buyer or an experienced owner, it’s good practice to conduct a pre-purchase reality check before buying a house. Before you jump into the financial commitment of the purchase, give careful consideration to your financial situation and whether you are truly prepared to buy. 

Here is a six-item checklist of items to check off before buying a home:

• Strengthen your credit score. In general, the higher your credit score, the lower your down payment and monthly payments, which impact your buying power.
  
  
• Get pre-approved for a mortgage. If you’re truly serious, do your research on rates and have your financing in place before you walk through the first house to know how much you can afford, and to make a stronger offer.
  
  
• Have your financial house in order.  Beyond what your credit looks like, don’t change jobs, change banks, buy a vehicle or any big-ticket items. Avoid inquiries into your credit, don’t be late on payments and don’t charge excessively.
  
  
• Save for a down payment and closing costs. The national average for down payments nationwide is 16 percent, according to LendingTree. Also know the average closing costs in your area.
  
  
• Build a healthy emergency fund. Have several months worth of mortgage payments set aside, so lenders can see you’re not check-to-check, making you a better loan candidate. Plus, repair issues and home emergencies always come up.
  
  
• Control your debt and know how much you can afford. Gain control of the debt you already have, starting with high-interest debt. Know how much payments you can afford, with a safe formula that expenses should not exceed 28-31 percent of your gross monthly income.
  

For many buyers, the first step into real estate ownership is purchasing a duplex or multi-family property, and living in one of the units.

Known as owner-occupied rental housing, living in your own rental property can carry some distinct advantages. Not only can you use rental income to offset the amount you pay against the mortgage, there are several tax deductions and depreciation advantages to living in the same property you also rent.

Living in your own rental property, of course, isn’t for everyone.  Whether you will gain greater income from an investment property or an owner-occupied rental property ultimately depends on your individual circumstances. You should consult a financial consultant or tax advisor to discuss your bottom line. But here are several of the advantages to owner-occupied income properties to consider:

Higher quality tenants. Many renters are particular about who they have to live next to, and having an owner-occupied building is reassuring. Owners are also selective about who they allow to live next door, thus attracting higher-quality tenants. It’s a beneficial dynamic that brings tenants who are willing to pay higher rent.

Writing off expenses. Simply put, owners who occupy their rental properties are allowed to write-off their rental expenses against their rental income. Any expenses that apply to tenant-occupied units can be used as an advantage.

Lower management and maintenance costs. Occupying your own rental property minimizes property management and maintenance costs that are typically handled by third parties, thus saving a certain percentage of gross income.

The value of depreciation.  Depreciation allows an owner to deduct a portion of the building’s cost, plus the cost of capital improvements, annually from the income of the building. While it is allowed only for the portion of the building used for rental purposes, it can sometimes shield rental income from taxation.

The tax advantages. Along with depreciation tax, owners who live in their rental buildings can deduct the prorated part of the mortgage interest from their income. Property taxes can also be deducted.

Selling the property. Owner-occupied housing is also shielded from property gains taxes (at certain limits) when sold, and those that have been lived in for certain time periods – usually more than a year – are subject to lower capital gains taxes than other investments. Through a tax-deferred exchange, owners who rent where they reside can combine both tax advantages and also defer gains on the sale of the property when they purchase another property within a limited time frame.