By Michael Koretzky
Source: http://www.moneytalksnews.com/
Provided By Shelley Dudley
You know the holiday season is almost here when economists and forecasters start predicting just how much we'll spend on gifts - and they all contradict each other.
Take a look at these reports from last week..
"After a ho-hum 2009 and a disastrous 2008, holiday retail sales are expected to increase a more moderate 2.3 percent this year," proclaims the National Retail Federation.
"In almost every category this year, there is a drop-off in intended purchases," cautions market research firm NPD Group.
"The overwhelming majority of shoppers will maintain a tight grip on their wallets as they hit the stores this holiday season, with 83 percent expecting to spend the same or less on holiday gifts compared to 2009," suggests business consulting firm Accenture.
Even though the experts don't know exactly what will happen by the end of the holiday shopping season, their reports give the rest of us some tips on what to do - and not do - at the beginning.
For instance, all three reports make the obvious prediction that consumers will be bargain-hunting this holiday season. "The primary influence on where consumers will shop for gifts this year remains price," says NDP Group. And since these reports are widely read by businesses that set those prices, that's good news for us. But NDP is not advising retailers to slash prices on clothes.
Clothing may not come cheap
"In apparel, I think it is important to point out that the drop-off in intentions doesn't necessarily mean a significant decline in apparel sales," says Marshal Cohen, NDP's chief industry analyst. Cohen explains it like this...
Consumers tend to fall back on their "old faithful" items, like apparel, especially when there are no "new" items or "hot" categories. And so far there are only some updated re-runs of the same old product. These may be "want-to-have" items, but there aren't any "must-have" items, at least not yet.
Here's another reason to double-check those prices on clothing: According to the Accenture study, holiday shoppers plan to spend more on clothes (57 percent) than anything else - including toys (41 percent). So the law of supply and demand suggests prices for clothing may not be as deeply discounted as other items. In addition, high cotton prices may be reflected in higher clothing prices: see our recent story Expect Higher Holiday Prices for T-Shirts and Jeans.
Gift cards will be popular
Without one hot new toy or tech gadget for the holiday season, what will be the second most-popular present after clothing? Gift cards. Accenture says 57 percent of us will buy one as present, while "44 percent of consumers will buy up to three gift cards, and 85 percent will spend up to $50 on each gift card."
Gift cards seem like a great convenience, but as we've written about before, be careful.
Black Friday every day?
Accenture says more holiday shoppers (53 percent) will skip Black Friday - the day after Thanksgiving that marks the start of the holiday shopping season - than fight the crowds for deals. And the National Retail Federation's chief economist Jack Kleinhenz predicts, "Retailers are expected to compensate for this fundamental shift in shopper mentality by offering significant promotions throughout the holiday season and emphasizing value throughout their marketing efforts."
That's good news for those of us who don't relish the idea of parking our cars on the edges of our local malls and burning our Thanksgiving Day calories elbowing our neighbors for great deals.
"The growing ambivalence toward the traditional Black Friday shopping trip is being driven by a number of factors," says Janet Hoffman, managing director of Accenture's retail practice. "The increase in the number of homes with broadband Internet access means that many shoppers will prefer to stay at home and bag the offers online rather than brave the crowds."
But here's the scariest prediction of all, also from Hoffman: "Holiday shopping is now a 24/7 event." Ho oh no...
Are you looking for great deals? To find homes where you can get more for your money call us at 972-772-7000 or email us at rockwall@kw.com.
Showing posts with label shelley dudley. Show all posts
Showing posts with label shelley dudley. Show all posts
Wednesday, November 24, 2010
Monday, November 22, 2010
Buying In Neighborhoods Where Home Prices Don't Fall
By Michele Lerner
Source: http://www.bankrate.com/
Provided By Shelley Dudley
In a world of imploding home prices, can homebuyers find neighborhoods where values will not fall?
Certain characteristics make some neighborhoods more desirable than others. Real estate industry experts say these neighborhoods are more likely to experience stable or rising home prices.
Many buyers today are fixated on price. But such tunnel vision can be shortsighted.
"You may get a good deal on a home in an area where prices fell deeply, but it will take longer for prices to recover," says Pat Kline, a broker with Avery-Hess Realtors in Springfield, Va.
Instead, look beyond price to qualities that keep neighborhoods attractive to buyers over the long haul. Try to match your own lifestyle priorities with a solid choice of community.
"It's important most of all for people to look for a neighborhood they love and will enjoy for the long term, because that's the best way to make sure you get value from your home," Kline says.
When looking for good neighborhoods, keep the following in mind:
Search healthy 'move up' neighborhoods
"The most desirable areas tend to be close to a city and are often well-established neighborhoods," says Ben Hoefer, a real estate agent with John L. Scott Real Estate in Seattle.
In the Seattle market, neighborhoods with slightly above-median prices that appeal to buyers on their second or third home purchase have held onto their value during the housing downturn, Hoefer says.
"Buyers should avoid areas with a lot of foreclosures because it may take longer for those homes to regain their value," Hoefer says. "Areas with a lot of first-time buyers were hard-hit because they did not have a lot of equity in their home and were faster to default. It's better, if you can afford it, to buy into a 'move-up' area, although not necessarily a super-expensive neighborhood."
Liz Sidorowicz, a broker with Re/Max Signature in Chicago, says areas with long-term residents -- where many owners have lived for 15 years or more -- are likely to be more stable and see fewer foreclosures.
Consider commute times and public transportation
Not every buyer wants to live close to a city. But some suburban neighborhoods can be more vulnerable to price drops.
Kline says prices dropped dramatically in distant suburbs of Washington, D.C., in part because the long commute times made these homes less desirable.
"A Realtor can show you statistics for different neighborhoods, so you can see which ones fared better than others," he says.
Sidorowicz also says that proximity to public transportation is valuable.
"Anything close to a train or metro line, whether you are in the suburbs or in the city, will keep its value," says Sidorowicz. "Also, look for communities that are convenient to major employment centers because there will always be a larger pool of buyers looking in that area."
Investigate neighborhood amenities
Look for communities that have a lot of amenities.
"The more varied amenities you can find in a community, the better it is," Kline says. Communities that offer tennis and basketball courts have a stronger value than places where you have to drive 20 minutes to get to anything.
"People want to live close to things like parks, libraries and shops, and they would prefer to walk there rather than drive if they can," Kline says.
Check out the schools
Homebuyers should look for a neighborhood within a good school district, even if they don't have children. Families always want to purchase homes in such neighborhoods.
Due to Fair Housing laws, real estate agents cannot discuss whether schools are good or bad. However, consumers can find test scores and other statistics on school district websites and school reviews on the Internet.
Know the local crime rate
Crime rates also influence neighborhood values. Look at police district websites or call the local police substation to ask about crime statistics for individual neighborhoods, Sidorowicz says.
Hoefer says it's important to look at crime trends: "You do not want to buy in an area where crimes of any kind are increasing."
In areas with improving crime rates, it may take time for perception to catch up to reality, Hoefer says.
"Buyers need to realize that the stigma of a high crime rate can last a long time and hurt property values, even after crime has dropped," he says.
Gauge the neighborhood's curb appeal
The physical appearance of a community can be a strong indicator of its stability.
"If there are too many places in disrepair, that can be an indication of a lack of pride in a community," Kline says. "Places that are well-kept and have some landscaping and fresh paint indicate an area where people will work hard to maintain the value of their property."
Find out about future development plans
Learn about future development plans that could have a negative or a positive impact on property values. Talk to real estate agents and research government websites to track down such information.
"There may be a little risk in relying on a revitalization project to improve home prices, but this can be a way to get in on the ground floor of an improving area," Kline says.
Are you interested in buying a home? Call us at 972-772-7000 or email us at rockwall@kw.com. We want to help you find your perfect home!
Source: http://www.bankrate.com/
Provided By Shelley Dudley
In a world of imploding home prices, can homebuyers find neighborhoods where values will not fall?
Certain characteristics make some neighborhoods more desirable than others. Real estate industry experts say these neighborhoods are more likely to experience stable or rising home prices.
Many buyers today are fixated on price. But such tunnel vision can be shortsighted.
"You may get a good deal on a home in an area where prices fell deeply, but it will take longer for prices to recover," says Pat Kline, a broker with Avery-Hess Realtors in Springfield, Va.
Instead, look beyond price to qualities that keep neighborhoods attractive to buyers over the long haul. Try to match your own lifestyle priorities with a solid choice of community.
"It's important most of all for people to look for a neighborhood they love and will enjoy for the long term, because that's the best way to make sure you get value from your home," Kline says.
When looking for good neighborhoods, keep the following in mind:
Search healthy 'move up' neighborhoods
"The most desirable areas tend to be close to a city and are often well-established neighborhoods," says Ben Hoefer, a real estate agent with John L. Scott Real Estate in Seattle.
In the Seattle market, neighborhoods with slightly above-median prices that appeal to buyers on their second or third home purchase have held onto their value during the housing downturn, Hoefer says.
"Buyers should avoid areas with a lot of foreclosures because it may take longer for those homes to regain their value," Hoefer says. "Areas with a lot of first-time buyers were hard-hit because they did not have a lot of equity in their home and were faster to default. It's better, if you can afford it, to buy into a 'move-up' area, although not necessarily a super-expensive neighborhood."
Liz Sidorowicz, a broker with Re/Max Signature in Chicago, says areas with long-term residents -- where many owners have lived for 15 years or more -- are likely to be more stable and see fewer foreclosures.
Consider commute times and public transportation
Not every buyer wants to live close to a city. But some suburban neighborhoods can be more vulnerable to price drops.
Kline says prices dropped dramatically in distant suburbs of Washington, D.C., in part because the long commute times made these homes less desirable.
"A Realtor can show you statistics for different neighborhoods, so you can see which ones fared better than others," he says.
Sidorowicz also says that proximity to public transportation is valuable.
"Anything close to a train or metro line, whether you are in the suburbs or in the city, will keep its value," says Sidorowicz. "Also, look for communities that are convenient to major employment centers because there will always be a larger pool of buyers looking in that area."
Investigate neighborhood amenities
Look for communities that have a lot of amenities.
"The more varied amenities you can find in a community, the better it is," Kline says. Communities that offer tennis and basketball courts have a stronger value than places where you have to drive 20 minutes to get to anything.
"People want to live close to things like parks, libraries and shops, and they would prefer to walk there rather than drive if they can," Kline says.
Check out the schools
Homebuyers should look for a neighborhood within a good school district, even if they don't have children. Families always want to purchase homes in such neighborhoods.
Due to Fair Housing laws, real estate agents cannot discuss whether schools are good or bad. However, consumers can find test scores and other statistics on school district websites and school reviews on the Internet.
Know the local crime rate
Crime rates also influence neighborhood values. Look at police district websites or call the local police substation to ask about crime statistics for individual neighborhoods, Sidorowicz says.
Hoefer says it's important to look at crime trends: "You do not want to buy in an area where crimes of any kind are increasing."
In areas with improving crime rates, it may take time for perception to catch up to reality, Hoefer says.
"Buyers need to realize that the stigma of a high crime rate can last a long time and hurt property values, even after crime has dropped," he says.
Gauge the neighborhood's curb appeal
The physical appearance of a community can be a strong indicator of its stability.
"If there are too many places in disrepair, that can be an indication of a lack of pride in a community," Kline says. "Places that are well-kept and have some landscaping and fresh paint indicate an area where people will work hard to maintain the value of their property."
Find out about future development plans
Learn about future development plans that could have a negative or a positive impact on property values. Talk to real estate agents and research government websites to track down such information.
"There may be a little risk in relying on a revitalization project to improve home prices, but this can be a way to get in on the ground floor of an improving area," Kline says.
Are you interested in buying a home? Call us at 972-772-7000 or email us at rockwall@kw.com. We want to help you find your perfect home!
Monday, September 6, 2010
10 Tips to Help You Save $1,000 By The Holidays
Written By Stacy Johnson of Money Talks News
Provided By Shelley Dudley
If you're like many people, at the beginning of every year you resolve to get your finances in better shape by paying off debt and adding to your savings. But like many resolutions, the reality often doesn't meet the goal.
All is not lost. There are still five full months left in the year -- time for a quick review of simple ways to save. The goal? To set aside at least an extra thousand dollars by Christmas, without sacrificing your quality of life. Going on a "dollar-diet" is no way to get the job done -- painless savings are the only kind you should attempt because they're the only kind that work.
Simple Savings
Lower your cell phone bill. Potential savings: $100. If you're not using minutes you're paying for, switch to a cheaper plan. That could save you $20 a month, or $100 by Christmas.
Lose your land line. Potential savings: $140. If you find that your land line is gathering dust, lose it. And even if you want to keep your land line, if you have a broadband internet connection, get your phone service through it rather the phone company. A service like Magic Jack will give you unlimited calling for $2/month rather than the $30 you might be paying for traditional phone service providers.
Staycation instead of vacation. Potential savings: $1,000+. The savings from staying home vs. traveling for vacation are obvious. The trick is to maintain your quality of life while you do it. No working allowed. Turn off the computer and the phone. Relax, have fun, and take day trips exploring your local area.
Raise your insurance deductibles. Potential savings: $250. Raising your car and home insurance deductibles could have zero impact on your quality of life, but it could have a big impact on your savings. Decide what you can afford to pay out of pocket, spend a few minutes on the phone and see what you can save. Another way to save: shop your insurance and see if you can get a better deal.
Drop the gym. Potential savings: $150. Unless you're training for competition, a gym can be expensive overkill. You can buy cheap weights at yard sales or places like Play It Again Sports. Better yet, find them free at sites like craigslist or Freecycle. You can buy cheap workout videos and exercise in front of the TV, or get both exercise and fresh air by walking, jogging or biking in your neighborhood.
Drop premium cable channels -- or drop cable altogether. Potential savings: $50 - $600. One of the most popular stories we've done this year was "You Don't Have to Pay for Cable," a step-by-step guide to bypassing your cable company while still watching your favorite shows. Even if you decide against that, however, consider dropping premium channels. They're expensive and often filled with lousy fare anyway.
Sell Stuff. Potential earnings: $400+. If you're like most people, you've got clothes you don't wear, CDs you don't listen to, books you don't read, DVDs you don't watch, furniture you don't sit in -- you get the picture. Take it to a consignment shop or a swap meet; sell it online at or craigslist; have a yard sale. If nothing else, donate it and create a tax deduction. But don't mess up your quality of life by stressing out and trying to do everything at once. Pick one thing (or room) every month from now until the holidays, clear out the clutter and make some money!
Save on Food. Potential savings: $300+. The web is full of tips to save on food. Some will be obvious (use a list), but some might surprise you. For example, did you know that you might find groceries at 50% off at a salvage grocery store?
Haggle. Potential savings: $500+. According to this survey by Consumer Reports, negotiating a lower price is not only possible, it's likely. What can you negotiate? Pretty much everything. You can call your credit card company and ask for a better interest rate. You can ask for a lower price from your doctor. You can negotiate a lower price on your cable bill. The fact is, you can negotiate a lower price on anything from home electronics to hotel rooms.
Carry only cash: Potential savings: $250+. Try an experiment between now and the holidays. Carry only cash -- no plastic. This simple idea can easily result in major savings. The reasons are simple: If you carry only the cash you need to buy what you went out for, you'll avoid impulse buys. Plus, it's psychologically more difficult to spend actual money than "plastic" money.
Combine those ideas and you'll have at least an extra $1,000 by the time the holidays roll around. And if you need more ideas to make it work, the web is overflowing with hundreds, if not thousands, more.
The key is to carve out a little time, check out some resources, decide what you're willing to try, and get on with it. But remember to avoid anything that might make your life less enjoyable. The key to making it is making it easy on yourself. So if you want an extra grand by the time the holidays roll around, start today!
Are you saving to buy your perfect home? Give us a call at 972-772-7000 or email us at rockwall@kw.com.
Provided By Shelley Dudley
If you're like many people, at the beginning of every year you resolve to get your finances in better shape by paying off debt and adding to your savings. But like many resolutions, the reality often doesn't meet the goal.
All is not lost. There are still five full months left in the year -- time for a quick review of simple ways to save. The goal? To set aside at least an extra thousand dollars by Christmas, without sacrificing your quality of life. Going on a "dollar-diet" is no way to get the job done -- painless savings are the only kind you should attempt because they're the only kind that work.
Simple Savings
Lower your cell phone bill. Potential savings: $100. If you're not using minutes you're paying for, switch to a cheaper plan. That could save you $20 a month, or $100 by Christmas.
Lose your land line. Potential savings: $140. If you find that your land line is gathering dust, lose it. And even if you want to keep your land line, if you have a broadband internet connection, get your phone service through it rather the phone company. A service like Magic Jack will give you unlimited calling for $2/month rather than the $30 you might be paying for traditional phone service providers.
Staycation instead of vacation. Potential savings: $1,000+. The savings from staying home vs. traveling for vacation are obvious. The trick is to maintain your quality of life while you do it. No working allowed. Turn off the computer and the phone. Relax, have fun, and take day trips exploring your local area.
Raise your insurance deductibles. Potential savings: $250. Raising your car and home insurance deductibles could have zero impact on your quality of life, but it could have a big impact on your savings. Decide what you can afford to pay out of pocket, spend a few minutes on the phone and see what you can save. Another way to save: shop your insurance and see if you can get a better deal.
Drop the gym. Potential savings: $150. Unless you're training for competition, a gym can be expensive overkill. You can buy cheap weights at yard sales or places like Play It Again Sports. Better yet, find them free at sites like craigslist or Freecycle. You can buy cheap workout videos and exercise in front of the TV, or get both exercise and fresh air by walking, jogging or biking in your neighborhood.
Drop premium cable channels -- or drop cable altogether. Potential savings: $50 - $600. One of the most popular stories we've done this year was "You Don't Have to Pay for Cable," a step-by-step guide to bypassing your cable company while still watching your favorite shows. Even if you decide against that, however, consider dropping premium channels. They're expensive and often filled with lousy fare anyway.
Sell Stuff. Potential earnings: $400+. If you're like most people, you've got clothes you don't wear, CDs you don't listen to, books you don't read, DVDs you don't watch, furniture you don't sit in -- you get the picture. Take it to a consignment shop or a swap meet; sell it online at or craigslist; have a yard sale. If nothing else, donate it and create a tax deduction. But don't mess up your quality of life by stressing out and trying to do everything at once. Pick one thing (or room) every month from now until the holidays, clear out the clutter and make some money!
Save on Food. Potential savings: $300+. The web is full of tips to save on food. Some will be obvious (use a list), but some might surprise you. For example, did you know that you might find groceries at 50% off at a salvage grocery store?
Haggle. Potential savings: $500+. According to this survey by Consumer Reports, negotiating a lower price is not only possible, it's likely. What can you negotiate? Pretty much everything. You can call your credit card company and ask for a better interest rate. You can ask for a lower price from your doctor. You can negotiate a lower price on your cable bill. The fact is, you can negotiate a lower price on anything from home electronics to hotel rooms.
Carry only cash: Potential savings: $250+. Try an experiment between now and the holidays. Carry only cash -- no plastic. This simple idea can easily result in major savings. The reasons are simple: If you carry only the cash you need to buy what you went out for, you'll avoid impulse buys. Plus, it's psychologically more difficult to spend actual money than "plastic" money.
Combine those ideas and you'll have at least an extra $1,000 by the time the holidays roll around. And if you need more ideas to make it work, the web is overflowing with hundreds, if not thousands, more.
The key is to carve out a little time, check out some resources, decide what you're willing to try, and get on with it. But remember to avoid anything that might make your life less enjoyable. The key to making it is making it easy on yourself. So if you want an extra grand by the time the holidays roll around, start today!
Are you saving to buy your perfect home? Give us a call at 972-772-7000 or email us at rockwall@kw.com.
Friday, August 13, 2010
Quick Rules Of Thumb: Remodeling For Resale
Written By Jay MacDonald
Source Bankrate.com
Provided By Shelley Dudley
When planning a home improvement project, you may have favorite "must do" projects, but it pays to design with resale in mind. Try these seven quickies:
Select neutral colors: It creates a blank-canvas effect for potential buyers.
Upgrade your kitchen first: It's the one room buyers use consistently to determine how well a house has been maintained.
Paint, paint, paint: It's the quickest and least expensive makeover technique. If the exterior paint is faded or weather-beaten, a fresh coat of paint is a cost-effective sales tool.
Hide those flaws: Textured wallpapers and faux wall finishes hide a multitude of surface flaws.
Focus on floors: Whether wood, tile, laminate or vinyl, make sure they're inviting, not cracked or discolored. Again, neutrals sell best, natural wood best of all.
Cost-cutting ideas: Use wood or tile to dress up laminate countertops; stencil that backsplash instead of installing tile; consider marble sheets instead of ceramic tile for that tub surround.
Keep all options open: One man's workshop is another man's wine cellar. Don't eliminate options when you remodel rooms.
Interested in more tips for a resale of your home? Give us a call at 972-772-7000 or email us at rockwall@kw.com.
Source Bankrate.com
Provided By Shelley Dudley
When planning a home improvement project, you may have favorite "must do" projects, but it pays to design with resale in mind. Try these seven quickies:
Select neutral colors: It creates a blank-canvas effect for potential buyers.
Upgrade your kitchen first: It's the one room buyers use consistently to determine how well a house has been maintained.
Paint, paint, paint: It's the quickest and least expensive makeover technique. If the exterior paint is faded or weather-beaten, a fresh coat of paint is a cost-effective sales tool.
Hide those flaws: Textured wallpapers and faux wall finishes hide a multitude of surface flaws.
Focus on floors: Whether wood, tile, laminate or vinyl, make sure they're inviting, not cracked or discolored. Again, neutrals sell best, natural wood best of all.
Cost-cutting ideas: Use wood or tile to dress up laminate countertops; stencil that backsplash instead of installing tile; consider marble sheets instead of ceramic tile for that tub surround.
Keep all options open: One man's workshop is another man's wine cellar. Don't eliminate options when you remodel rooms.
Interested in more tips for a resale of your home? Give us a call at 972-772-7000 or email us at rockwall@kw.com.
Monday, August 9, 2010
6 Tips For Selling Your Home In A Soft Market
Written By Chris Morris
Source Bankrate.com
Provided By Shelley Dudley
Making a home sale has never been a lot of fun -- but in this economy, it's even worse.
If you've followed the usual chestnuts about boosting curb appeal and staging your living room properly, but still aren't getting any bites, there are other ways to help catch a buyer's eye.
Bankrate.com spoke with real estate professionals to get their best tips on how to move a house in the quickest amount of time -- without giving the place away.
Get an appraisal
Knowing what a professional appraiser believes your house is worth is a good reality check on a couple of fronts.
First, it gives you a realistic target price -- versus your own beliefs -- that can be factored in with recent comparable sales. It also gives you an idea of what sort of home loan a buyer can get.
"It takes a lot of the guesswork out of the price," says Naomi Brodbar, an agent with Weichert Realtors in Princeton Junction, N.J. "You can take any figures in the market and make them work to your advantage. With this, you know if you're in the right ballpark." You'll likely pay about $300 to $400 for the report.
Pre-inspect before listing
Buyers want to see that you've cared for the home during your time there. An indisputable way to showcase that is to hire a home inspector to go through the house with a fine-toothed comb and to rectify any major issues the inspector finds.
Of course, the buyer is going to hire his or her own inspector -- but this helps convince the buyer that the home has been kept up well. It also prevents the buyer from issuing a laundry list of demanded fixes, which some buyers do in an effort to further lower the sales price after their offer is accepted.
"It says 'We've thought enough of this property to make sure that if there are any unforeseen problems, then we have taken care of them for you,'" says Dorcas Helfant-Browning, an agent with Coldwell Banker in Virginia Beach, Va., and past president of the National Association of Realtors.
Offer a home warranty
Everyone likes a security blanket. Home warranties give buyers an assurance that if something goes wrong with any of the major appliances, plumbing or electrical systems in the house, they won't have to shell out a lot to get them fixed.
As the seller, you'll also reap some of the benefits, as many plans provide additional coverage for when your house is on the market. This can be particularly beneficial when you go through the inspection process after you've accepted an offer.
Plans generally cost between $300 and $450, with extra charges for some appliances (such as your washer or dryer) and items like a pool or hot tub.
Consider cash incentives
No matter how perfect you think your house is, the new owners will want to change something about it. It could be the paint, landscaping or even the front door.
Acknowledging this upfront and offering a cash incentive to pay for those improvements could make your house stand out from the competition.
It also gives you the upper hand. Because you're setting the amount of the incentive -- say, $1,000 or so -- you can work that into your house's asking price to recoup the outlay.
Take care of post-move expenses
Moving is tough for everyone, so consider making the buyer's life easier by contracting a service to mow the yard through the summer. Taking care of the tab for pool cleaning is another type of incentive that you can work back into the price.
And because everyone likes to be catered to, it can also give your house an edge if a buyer is trying to decide between yours and another.
Remain flexible on the price
Many buyers offer their home with a floor price in mind -- one they're absolutely not willing to go below. It becomes a point of pride in what can be an emotional process. That can be dangerous.
In the long run, an extra $1,000 (or even $3,000) is a drop in the bucket -- and it's not worth fighting over, even if it's below your floor price. But what about an offer that's $5,000 or even $10,000 below what you were hoping to get?
"Buyers don't care what your minimum price is," says Leslie Nichols, a broker for Nichols & Associates Real Estate in Houston. "Price is the most important thing.... Price will overcome location. Price will overcome condition. Price will overcome everything else."
Before automatically rejecting a low offer, consider a few factors and be brutally honest with yourself. Determine how many months that shortcoming works out to in terms of your regular mortgage and utility expenses. What are the odds you'll get an acceptable offer in that time period? If they're not excellent, give the "bad" offer a second look.
If you are ready to sell your home, give us a call at 972-772-7000 or email us at rockwall@kw.com.
Source Bankrate.com
Provided By Shelley Dudley
Making a home sale has never been a lot of fun -- but in this economy, it's even worse.
If you've followed the usual chestnuts about boosting curb appeal and staging your living room properly, but still aren't getting any bites, there are other ways to help catch a buyer's eye.
Bankrate.com spoke with real estate professionals to get their best tips on how to move a house in the quickest amount of time -- without giving the place away.
Get an appraisal
Knowing what a professional appraiser believes your house is worth is a good reality check on a couple of fronts.
First, it gives you a realistic target price -- versus your own beliefs -- that can be factored in with recent comparable sales. It also gives you an idea of what sort of home loan a buyer can get.
"It takes a lot of the guesswork out of the price," says Naomi Brodbar, an agent with Weichert Realtors in Princeton Junction, N.J. "You can take any figures in the market and make them work to your advantage. With this, you know if you're in the right ballpark." You'll likely pay about $300 to $400 for the report.
Pre-inspect before listing
Buyers want to see that you've cared for the home during your time there. An indisputable way to showcase that is to hire a home inspector to go through the house with a fine-toothed comb and to rectify any major issues the inspector finds.
Of course, the buyer is going to hire his or her own inspector -- but this helps convince the buyer that the home has been kept up well. It also prevents the buyer from issuing a laundry list of demanded fixes, which some buyers do in an effort to further lower the sales price after their offer is accepted.
"It says 'We've thought enough of this property to make sure that if there are any unforeseen problems, then we have taken care of them for you,'" says Dorcas Helfant-Browning, an agent with Coldwell Banker in Virginia Beach, Va., and past president of the National Association of Realtors.
Offer a home warranty
Everyone likes a security blanket. Home warranties give buyers an assurance that if something goes wrong with any of the major appliances, plumbing or electrical systems in the house, they won't have to shell out a lot to get them fixed.
As the seller, you'll also reap some of the benefits, as many plans provide additional coverage for when your house is on the market. This can be particularly beneficial when you go through the inspection process after you've accepted an offer.
Plans generally cost between $300 and $450, with extra charges for some appliances (such as your washer or dryer) and items like a pool or hot tub.
Consider cash incentives
No matter how perfect you think your house is, the new owners will want to change something about it. It could be the paint, landscaping or even the front door.
Acknowledging this upfront and offering a cash incentive to pay for those improvements could make your house stand out from the competition.
It also gives you the upper hand. Because you're setting the amount of the incentive -- say, $1,000 or so -- you can work that into your house's asking price to recoup the outlay.
Take care of post-move expenses
Moving is tough for everyone, so consider making the buyer's life easier by contracting a service to mow the yard through the summer. Taking care of the tab for pool cleaning is another type of incentive that you can work back into the price.
And because everyone likes to be catered to, it can also give your house an edge if a buyer is trying to decide between yours and another.
Remain flexible on the price
Many buyers offer their home with a floor price in mind -- one they're absolutely not willing to go below. It becomes a point of pride in what can be an emotional process. That can be dangerous.
In the long run, an extra $1,000 (or even $3,000) is a drop in the bucket -- and it's not worth fighting over, even if it's below your floor price. But what about an offer that's $5,000 or even $10,000 below what you were hoping to get?
"Buyers don't care what your minimum price is," says Leslie Nichols, a broker for Nichols & Associates Real Estate in Houston. "Price is the most important thing.... Price will overcome location. Price will overcome condition. Price will overcome everything else."
Before automatically rejecting a low offer, consider a few factors and be brutally honest with yourself. Determine how many months that shortcoming works out to in terms of your regular mortgage and utility expenses. What are the odds you'll get an acceptable offer in that time period? If they're not excellent, give the "bad" offer a second look.
If you are ready to sell your home, give us a call at 972-772-7000 or email us at rockwall@kw.com.
Wednesday, June 30, 2010
Throw a Kids' Summer Party
Source http://www.myhomeideas.com/
Written by Cathy Still Johnson
Provided By Shelley Dudley
Who's afraid of bugs? Not these kids! Check out our easy, inexpensive ideas for hosting a backyard party that's sure to win over every creature.
Bugs and Butterflies
When it's time for your child's next party, try our bugs-and-butterflies-themed celebration. The crafts and goodies work for boys or girls, and our budget-friendly party plans will make you smile, too. We set the scene outdoors, but these festivities can easily be moved inside. So grab your little critters, and get ready for a fun-filled afternoon that everyone will enjoy!
You're Invited
Begin your party planning with a kid-friendly invitation. Download our invite -- choose from our full-color design or a coloring page outline -- and let your little one personalize her own invitation. - http://www.myhomeideas.com/static/pdf/invitation-print-out.pdf
Tip: A festive, colorful invitation can set the tone for your party. We based our colors, patterns, and design ideas for the celebration on this cute creation.
Dress the Table
Our custom-made tablecloth is lively enough for a child's party yet sophisticated enough for afternoon tea. A small investment that will last through many celebrations, the vivid colors and pop art daisy print set the tone for cheery afternoons. You'll need about eight yards of fabric to make this tablecloth.
Available at Fabric.com
Tabletop Arrangements
Tin pails and painted wooden containers brim with live flowering plants -- something you can easily transfer to your garden later. Punch up the color with gerbera daises, and add an ornament of garden art such as oversize metal flowers and pinwheels.
Fanciful Cake
Take your theme the extra mile by creating or ordering a cake covered in fondant ladybugs, caterpillars, and butterflies. This sweet sensation was created at Pastry Arts Bake Shoppe.
Tip: Before ordering from any bakery, bring along some party accessories to let the bakery help provide a consistent look. Be sure to allow your baker plenty of notice -- especially during wedding season.
More Munchies
Mini cupcakes are perfect for little hands. Fill pails with gummy worms, pretzels, and cheese crackers for hungry bug-seekers. Don't forget mini water bottles and adult beverages to keep moms and dads entertained.
Wings and Things
Let little ones fly with imagination. Check out Bugs-n-Blooms or your favorite party store for nylon fairy wings, vibrant butterflies, and dragonflies. Along with fun dress-up attire, you can also affix butterflies to tablecloths, floral arrangements, and suspend them from trees. And give the children a new way to look at the party by trying on silly sunglasses with magical lenses.
Kids' Craft Station
A child-size folding table offers plenty of room for crafty kids. Pile supplies in metal paint cans. We stocked ours with project materials simple enough to eliminate adult instruction: Popsicle sticks, pom-poms, glue, and pipe cleaners for creating fuzzy caterpillars. Also, provide colorful party bags with a stash of sparkly stickers. The kids can use them to carry take-home artwork.
Tip: You can rent a small folding table at rental stores for around $8, and metal paint cans are only $2 each at home improvement stores.
Whimsy Smocks
Colorful smocks protect kids' clothes from messy crafts. We adorned these plain canvas aprons with bugs, butterflies, and floral interpretations of the invitation's illustrations. Use scraps of fabric and hot glue or simple stitches to craft these whimsical critters. Looking for inspiration? Try simple outlines from children's coloring books.
The Bug Hunt
Plastic bugs scattered about the garden are a playful version of a traditional Easter egg hunt. Send the little ones out with bug boxes (perfect party favors!) to capture the critters. After they've gathered them, see if they can identify the insects.
Tip: Buy plastic bugs in bulk from your local party or toy store.
Face Painting Fun
You don't have to be an artist to paint a smile on a child's face. Line them up for a magical makeover with a face painting kit. Simple strokes and paintbrush tickles delight innocent faces.
Inexpensive Extras
Use your own easels (or borrow them from friends) to make paint stations.
For a popping backyard, rent a bubble machine.
Stock up on these no-fail finds from closeout or dollar stores: bubbles, sidewalk chalk, stickers, and pinwheels.
Looking for a home to start your summertime fun in? Give us a call at 972-772-7000 or email us at rockwall@kw.com.
Written by Cathy Still Johnson
Provided By Shelley Dudley
Who's afraid of bugs? Not these kids! Check out our easy, inexpensive ideas for hosting a backyard party that's sure to win over every creature.
Bugs and Butterflies
When it's time for your child's next party, try our bugs-and-butterflies-themed celebration. The crafts and goodies work for boys or girls, and our budget-friendly party plans will make you smile, too. We set the scene outdoors, but these festivities can easily be moved inside. So grab your little critters, and get ready for a fun-filled afternoon that everyone will enjoy!
You're Invited
Begin your party planning with a kid-friendly invitation. Download our invite -- choose from our full-color design or a coloring page outline -- and let your little one personalize her own invitation. - http://www.myhomeideas.com/static/pdf/invitation-print-out.pdf
Dress the Table
Our custom-made tablecloth is lively enough for a child's party yet sophisticated enough for afternoon tea. A small investment that will last through many celebrations, the vivid colors and pop art daisy print set the tone for cheery afternoons. You'll need about eight yards of fabric to make this tablecloth.
Pop Garden, Pop Daisy Fabric
$8.38 (per yard)Available at Fabric.com
Tabletop Arrangements
Tin pails and painted wooden containers brim with live flowering plants -- something you can easily transfer to your garden later. Punch up the color with gerbera daises, and add an ornament of garden art such as oversize metal flowers and pinwheels.
Fanciful Cake
Take your theme the extra mile by creating or ordering a cake covered in fondant ladybugs, caterpillars, and butterflies. This sweet sensation was created at Pastry Arts Bake Shoppe.
Tip: Before ordering from any bakery, bring along some party accessories to let the bakery help provide a consistent look. Be sure to allow your baker plenty of notice -- especially during wedding season.
Mini cupcakes are perfect for little hands. Fill pails with gummy worms, pretzels, and cheese crackers for hungry bug-seekers. Don't forget mini water bottles and adult beverages to keep moms and dads entertained.
Wings and Things
Let little ones fly with imagination. Check out Bugs-n-Blooms or your favorite party store for nylon fairy wings, vibrant butterflies, and dragonflies. Along with fun dress-up attire, you can also affix butterflies to tablecloths, floral arrangements, and suspend them from trees. And give the children a new way to look at the party by trying on silly sunglasses with magical lenses.
Kids' Craft Station
A child-size folding table offers plenty of room for crafty kids. Pile supplies in metal paint cans. We stocked ours with project materials simple enough to eliminate adult instruction: Popsicle sticks, pom-poms, glue, and pipe cleaners for creating fuzzy caterpillars. Also, provide colorful party bags with a stash of sparkly stickers. The kids can use them to carry take-home artwork.
Tip: You can rent a small folding table at rental stores for around $8, and metal paint cans are only $2 each at home improvement stores.
Whimsy Smocks
Colorful smocks protect kids' clothes from messy crafts. We adorned these plain canvas aprons with bugs, butterflies, and floral interpretations of the invitation's illustrations. Use scraps of fabric and hot glue or simple stitches to craft these whimsical critters. Looking for inspiration? Try simple outlines from children's coloring books.
Plastic bugs scattered about the garden are a playful version of a traditional Easter egg hunt. Send the little ones out with bug boxes (perfect party favors!) to capture the critters. After they've gathered them, see if they can identify the insects.
Tip: Buy plastic bugs in bulk from your local party or toy store.
Face Painting Fun
You don't have to be an artist to paint a smile on a child's face. Line them up for a magical makeover with a face painting kit. Simple strokes and paintbrush tickles delight innocent faces.
Inexpensive Extras
Use your own easels (or borrow them from friends) to make paint stations.
For a popping backyard, rent a bubble machine.
Stock up on these no-fail finds from closeout or dollar stores: bubbles, sidewalk chalk, stickers, and pinwheels.
Looking for a home to start your summertime fun in? Give us a call at 972-772-7000 or email us at rockwall@kw.com.
Wednesday, June 9, 2010
Life Outdoors
Provided By My Home Ideas
See how these real-life homeowners made their outdoor spaces livable rooms -- ideal for entertaining and relaxing.
Seamless Blend
People who entertain often will appreciate a kitchen that blends into the garden. This one includes a sink, grill, and pizza oven with plenty of counter space for food prep and serving. Note how the stonework and plantings blur the lines between utilitarian space and landscape.
Sleek Driveway
Even the tiny transition between the driveway and the yard here looks sharp. It features a grid of pavers seamed with woolly thyme. Oranged-streaked phormium echoes the pebbles, seat cushions, and side tables.
Light the Night
When night falls or the weather gets nippy, a toasty fire is both a practical luxury and a luxurious necessity. This fire pit and built-in bench encourage hanging out in the garden, particularly for drinks or desserts. Marshmallows are optional.
Lanterns filled with votives and suspended from bamboo poles make this garden functional at night. The flickering light illuminates plants and objets d'art.
See how these real-life homeowners made their outdoor spaces livable rooms -- ideal for entertaining and relaxing.
Seamless Blend
People who entertain often will appreciate a kitchen that blends into the garden. This one includes a sink, grill, and pizza oven with plenty of counter space for food prep and serving. Note how the stonework and plantings blur the lines between utilitarian space and landscape.
Even the tiny transition between the driveway and the yard here looks sharp. It features a grid of pavers seamed with woolly thyme. Oranged-streaked phormium echoes the pebbles, seat cushions, and side tables.
When night falls or the weather gets nippy, a toasty fire is both a practical luxury and a luxurious necessity. This fire pit and built-in bench encourage hanging out in the garden, particularly for drinks or desserts. Marshmallows are optional.
A Little Lighting
Lanterns filled with votives and suspended from bamboo poles make this garden functional at night. The flickering light illuminates plants and objets d'art.
Are you looking for a home that has the perfect outdoor space to create your own personal oasis? Give us a call at 972-772-7000 or email us at rockwall@kw.com.
Monday, June 7, 2010
8 Tips For Pricing Your Home In A Buyer's Market
Written By Dana Dratch
Source www.Bankrate.com
It's tough being the seller in a buyer's market. But you can improve your odds with the right research.
In many cases, making a smart deal and getting the best price come down to studying your market and being an educated seller.
"You've got to know more than you would have if you'd sold a year ago," says William Poorvu, professor emeritus at Harvard Business School and author of the upcoming book "Creating and Growing Real Estate Wealth." "If you want to protect yourself, you have to become knowledgeable."
1. Recognize that housing markets are local.
Home prices are like the weather -- very different in different areas.
In many markets, home prices have actually gone up from last year, says Dick Gaylord, president of the National Association of Realtors.
In addition, demand will change depending on the price range and even the neighborhood. What you need to know: What's the demand for a house like yours in your area?
"You have to look at what's being sold and at what price," says Poorvu. "That's important."
Look at comparables for similar houses. Study prices and sales for one year ago, six months ago, three months ago and current numbers, says Gaylord.
What are the trends? Are prices going up or down -- and by how much? How many days are homes staying on the market? If they are on the market longer, how much of that could be seasonal? In many areas, spring and summer are the busy seasons.
Pay special attention to "the delta between the list price and the sales price," says Ron Phipps, broker with Phipps Realty in Warwick, R.I. That is, look for a meaningful relationship between list price and sales price. Perhaps most homes are selling for 5% less than the list price.
"An agent who works the market will be in the best position" to find "the tipping point between nice, attractive and interesting -- and being sold," Phipps says. You want to find the point between, "Hey, that's interesting," and "It's too good to pass up."
If you're not using a real-estate agent, it's especially important to use the Internet, visit open houses in your area and study home sales in your Sunday paper, says Greg Healy, vice president of operations for ForSaleByOwner.com.
But you also need to realize that the paperwork alone tells only part of the story. While sales and prices are public, many times seller concessions are not.
2. Analyze who is buying and selling in your market.
What's your competition? Who are the buyers, and why are they shopping?
Do you live in an area like Phoenix, which Poorvu calls "a growing market with people coming in"? Or are you living in an area that doesn't attract a lot of new residents, where many shoppers don't have to buy but are looking to pick up a bargain?
Are you competing against a flood of new houses from builders eager to sell, or are you selling a newer home in an area where most of the housing stock is older?
3. Ask the professionals.
Don't ignore the elephant in the living room. Ask your real estate agent about the market conditions for your area and price range.
Specifically, ask about the "absorption rate," says Phipps. What that means: In the current conditions with the current inventory, how long would it take the market to absorb, or sell, all the houses on the market?
If the supply is much larger than the demand, ask potential agents how they would "price to offset that inventory," he says.
4. Know what your house is worth.
Talk to your agent. Get an appraisal from a certified professional appraiser. Look at your comparables. Taken together, that information will give you a pretty good idea of what your home is currently worth.
5. Consider strategic pricing.
Here's how it works: If prices in your area are dropping 1% each month, and you want to sell within the next three months, you take 3% off your price right off the bat, says Phipps. So if you were going to put your home on the market for $400,000, you set the price at roughly $388,000.
The upside: You'll have the competitive edge over the guy who's dropping his price every month, without the air of desperation. Plus, in a market where prices are falling, you'll make more money if you sell quickly.
The downside: Predicting the market is a tough call, even for the pros. And it's really difficult to raise the price if your market starts to rebound, Phipps says.
6. Rebate your "commission."
If you're selling it yourself and need to move quickly, consider subtracting half of what would have been the commission from the sale price, says Healy. The standard commission is about 6%, so if you subtract 3%, your $300,000 house would go on the market for $291,000, he says.
Listing a home for "$9,000 to $10,000 under that value should create higher interest," especially if it's new to the market, says Healy.
The downside: If the house doesn't sell and you end up hiring an agent, you'll need to cover the commission, which may mean raising your sale price or taking a smaller profit.
Evaluate whether you really have to sell now.
If you want to get the best possible price for your home and the local market is tanking, "see if you can delay the sale," says Poorvu. Otherwise, in a lot of markets, sellers have "to be willing to accept a pretty good haircut over what they thought their home was worth last year," he says.
The downside of waiting: The market could decline or your circumstances could change to the point that you might need to sell quickly.
But for situations where the move is optional (or you might be able to rent the property until your local market improves), waiting is a solid option.
Just because you've already planted that "For Sale" sign doesn't mean you can't change your mind if you're not seeing the interest you expected.
"If you know there are no sales or sales are decreasing, and you have the opportunity," taking it off the market is a decent solution, says Healy. "I think we're seeing a lot of that."
7. Assess the market where you plan to buy.
If you're selling one house and buying another, look at the market where you plan to move. Says Poorvu, "It might be that, with the housing there, it's a great time to buy."
Would you like to make selling your home easier on you? Give us a call at 972-772-7000 or email us at rockwall@kw.com.
Source www.Bankrate.com
Getting ready to sell? The more you know about conditions in your local market, the better your chances of getting the best possible price for your home.
It's tough being the seller in a buyer's market. But you can improve your odds with the right research.
In many cases, making a smart deal and getting the best price come down to studying your market and being an educated seller.
"You've got to know more than you would have if you'd sold a year ago," says William Poorvu, professor emeritus at Harvard Business School and author of the upcoming book "Creating and Growing Real Estate Wealth." "If you want to protect yourself, you have to become knowledgeable."
1. Recognize that housing markets are local.
Home prices are like the weather -- very different in different areas.
In many markets, home prices have actually gone up from last year, says Dick Gaylord, president of the National Association of Realtors.
In addition, demand will change depending on the price range and even the neighborhood. What you need to know: What's the demand for a house like yours in your area?
"You have to look at what's being sold and at what price," says Poorvu. "That's important."
Look at comparables for similar houses. Study prices and sales for one year ago, six months ago, three months ago and current numbers, says Gaylord.
What are the trends? Are prices going up or down -- and by how much? How many days are homes staying on the market? If they are on the market longer, how much of that could be seasonal? In many areas, spring and summer are the busy seasons.
Pay special attention to "the delta between the list price and the sales price," says Ron Phipps, broker with Phipps Realty in Warwick, R.I. That is, look for a meaningful relationship between list price and sales price. Perhaps most homes are selling for 5% less than the list price.
"An agent who works the market will be in the best position" to find "the tipping point between nice, attractive and interesting -- and being sold," Phipps says. You want to find the point between, "Hey, that's interesting," and "It's too good to pass up."
If you're not using a real-estate agent, it's especially important to use the Internet, visit open houses in your area and study home sales in your Sunday paper, says Greg Healy, vice president of operations for ForSaleByOwner.com.
But you also need to realize that the paperwork alone tells only part of the story. While sales and prices are public, many times seller concessions are not.
2. Analyze who is buying and selling in your market.
What's your competition? Who are the buyers, and why are they shopping?
Do you live in an area like Phoenix, which Poorvu calls "a growing market with people coming in"? Or are you living in an area that doesn't attract a lot of new residents, where many shoppers don't have to buy but are looking to pick up a bargain?
Are you competing against a flood of new houses from builders eager to sell, or are you selling a newer home in an area where most of the housing stock is older?
3. Ask the professionals.
Don't ignore the elephant in the living room. Ask your real estate agent about the market conditions for your area and price range.
Specifically, ask about the "absorption rate," says Phipps. What that means: In the current conditions with the current inventory, how long would it take the market to absorb, or sell, all the houses on the market?
If the supply is much larger than the demand, ask potential agents how they would "price to offset that inventory," he says.
4. Know what your house is worth.
Talk to your agent. Get an appraisal from a certified professional appraiser. Look at your comparables. Taken together, that information will give you a pretty good idea of what your home is currently worth.
5. Consider strategic pricing.
Here's how it works: If prices in your area are dropping 1% each month, and you want to sell within the next three months, you take 3% off your price right off the bat, says Phipps. So if you were going to put your home on the market for $400,000, you set the price at roughly $388,000.
The upside: You'll have the competitive edge over the guy who's dropping his price every month, without the air of desperation. Plus, in a market where prices are falling, you'll make more money if you sell quickly.
The downside: Predicting the market is a tough call, even for the pros. And it's really difficult to raise the price if your market starts to rebound, Phipps says.
6. Rebate your "commission."
If you're selling it yourself and need to move quickly, consider subtracting half of what would have been the commission from the sale price, says Healy. The standard commission is about 6%, so if you subtract 3%, your $300,000 house would go on the market for $291,000, he says.
Listing a home for "$9,000 to $10,000 under that value should create higher interest," especially if it's new to the market, says Healy.
The downside: If the house doesn't sell and you end up hiring an agent, you'll need to cover the commission, which may mean raising your sale price or taking a smaller profit.
Evaluate whether you really have to sell now.
If you want to get the best possible price for your home and the local market is tanking, "see if you can delay the sale," says Poorvu. Otherwise, in a lot of markets, sellers have "to be willing to accept a pretty good haircut over what they thought their home was worth last year," he says.
The downside of waiting: The market could decline or your circumstances could change to the point that you might need to sell quickly.
But for situations where the move is optional (or you might be able to rent the property until your local market improves), waiting is a solid option.
Just because you've already planted that "For Sale" sign doesn't mean you can't change your mind if you're not seeing the interest you expected.
"If you know there are no sales or sales are decreasing, and you have the opportunity," taking it off the market is a decent solution, says Healy. "I think we're seeing a lot of that."
7. Assess the market where you plan to buy.
If you're selling one house and buying another, look at the market where you plan to move. Says Poorvu, "It might be that, with the housing there, it's a great time to buy."
Would you like to make selling your home easier on you? Give us a call at 972-772-7000 or email us at rockwall@kw.com.
Wednesday, May 5, 2010
Bank of America Offers Home Loan Forgiveness
Provided By Shelley Dudley
The last thing that mortgage companies want to do is forgive their customers' debts. Bank of America will make an exception for a few borrowers.
Around 45,000 homeowners will be offered reductions in mortgage debt as part of the bank's foreclosure-avoidance effort. If all of them accept the offer, and if all of those customers faithfully make their reduced monthly payments for the next five years, the amount forgiven could total $3 billion.
Before you get your hopes up, keep this in mind: These 45,000 borrowers are a small subset of the bank's customers. Principal forgiveness will be offered only to people who got certain kinds of loans from Countrywide Home Loans. Bank of America bought Countrywide in 2008.
When Bank of America bought Countrywide, it took possession of $25 billion in pay-option adjustable-rate mortgages. That's how much the customers owed on pay-option ARMs; their total value as an investment was $13.9 billion last September, because Bank of America knew that billions of dollars' worth of these loans would go belly-up eventually.
Countrywide did a lot of subprime loans, too. Bank of America stayed away from subprime. But when BofA bought Countrywide, it ended up with $1.8 billion in Countrywide's subprime ARMs on the books. The borrowers who got those loans may be eligible for principal forgiveness, too, along with a few people who got prime, two-year ARMs from Countrywide.
Bottom line: Principal forgiveness may be offered to 45,000 customers who got pay-option and subprime ARMs from Countrywide. If your loan officer sported a Bank of America ID badge, you won't be offered principal forgiveness, because you didn't get your mortgage from Countrywide.
What is a pay-option ARM?
Pay-option ARMs are adjustable-rate mortgages in which the borrower chooses the payment. The borrower usually has four options. One option is to pay less than the interest accumulated that month. In other words, the borrower might rack up $1,200 in interest in a given month, but have the option of paying $1,000. The $200 difference was added to principal. After making the minimum payment, the borrower owed more on the house. When borrowers end up owing more after making a payment, it's called negative amortization. According to an SEC filing, 72 percent of pay-option customers made negative-amortization payments in June 2008. From July through September last year, half did.
"In our experience, we have found that severely underwater homeowners are reluctant to accept a solution that does not offer some reduction in principal," says Barbara Desoer, president of Bank of America Home Loans.
Bank of America says it will offer principal reductions as the first step of HAMP-style loan modifications to this 45,000-strong subset of Countrywide customers. Pay-option ARM customers will get a different offer from subprime ARM customers.
For pay-option ARM customers, Bank of America will offer to forgive some or all of the debt that was added as negative amortization. If all of the negative-amortization debt is erased, the customer still ends up owing the original mortgage amount.
Forgiving principal
If that's not enough to qualify for a modification under HAMP guidelines, then Bank of America moves to the next stop: "earned principal forgiveness."
Earned principal forgiveness may be offered on subprime ARMs as well as on pay-option ARMs. To qualify, the borrower has to owe at least 20 percent more than the house is worth. For these customers, Bank of America will "forbear principal" for five years. The bank will forbear as much as 30 percent of the loan amount, down to 100 percent of the home's current value.
"Forbear principal" means you still owe the money, but the bank doesn't charge interest on the entire loan amount. For example, if you owe $120,000, and the bank forbears $20,000, then you pay interest on $100,000 -- but you still owe $120,000.
If Bank of America forbears part of the amount you owe, you can have some of that debt forgiven if you stay current on the loan. One-fifth of the forborn amount is forgiven each year if you make your payments on time. That happens for at least the first three years.
In the fourth and fifth years, debt won't be forgiven if the home's value has risen and you're no longer upside-down on the loan. "This helps strike a critical balance between customer and investor interests," says Jack Schakett, who heads Bank of America's loss-mitigation efforts.
The bank's message to borrowers who think they might be eligible for this program: Don't call us, we'll call you. Schakett says that every month, the bank evaluates its customers' payment histories, amount owed and estimated home value. The bank will contact borrowers who might qualify for the program, beginning in May.
Schakett estimates that the average amount of principal forgiveness or forbearance will be around $62,000 to $65,000. If 45,000 people take the offer and ride it to completion, that will total around $3 billion.
The last thing that mortgage companies want to do is forgive their customers' debts. Bank of America will make an exception for a few borrowers.
Around 45,000 homeowners will be offered reductions in mortgage debt as part of the bank's foreclosure-avoidance effort. If all of them accept the offer, and if all of those customers faithfully make their reduced monthly payments for the next five years, the amount forgiven could total $3 billion.
Before you get your hopes up, keep this in mind: These 45,000 borrowers are a small subset of the bank's customers. Principal forgiveness will be offered only to people who got certain kinds of loans from Countrywide Home Loans. Bank of America bought Countrywide in 2008.
When Bank of America bought Countrywide, it took possession of $25 billion in pay-option adjustable-rate mortgages. That's how much the customers owed on pay-option ARMs; their total value as an investment was $13.9 billion last September, because Bank of America knew that billions of dollars' worth of these loans would go belly-up eventually.
Countrywide did a lot of subprime loans, too. Bank of America stayed away from subprime. But when BofA bought Countrywide, it ended up with $1.8 billion in Countrywide's subprime ARMs on the books. The borrowers who got those loans may be eligible for principal forgiveness, too, along with a few people who got prime, two-year ARMs from Countrywide.
Bottom line: Principal forgiveness may be offered to 45,000 customers who got pay-option and subprime ARMs from Countrywide. If your loan officer sported a Bank of America ID badge, you won't be offered principal forgiveness, because you didn't get your mortgage from Countrywide.
What is a pay-option ARM?
Pay-option ARMs are adjustable-rate mortgages in which the borrower chooses the payment. The borrower usually has four options. One option is to pay less than the interest accumulated that month. In other words, the borrower might rack up $1,200 in interest in a given month, but have the option of paying $1,000. The $200 difference was added to principal. After making the minimum payment, the borrower owed more on the house. When borrowers end up owing more after making a payment, it's called negative amortization. According to an SEC filing, 72 percent of pay-option customers made negative-amortization payments in June 2008. From July through September last year, half did.
"In our experience, we have found that severely underwater homeowners are reluctant to accept a solution that does not offer some reduction in principal," says Barbara Desoer, president of Bank of America Home Loans.
Bank of America says it will offer principal reductions as the first step of HAMP-style loan modifications to this 45,000-strong subset of Countrywide customers. Pay-option ARM customers will get a different offer from subprime ARM customers.
For pay-option ARM customers, Bank of America will offer to forgive some or all of the debt that was added as negative amortization. If all of the negative-amortization debt is erased, the customer still ends up owing the original mortgage amount.
Forgiving principal
If that's not enough to qualify for a modification under HAMP guidelines, then Bank of America moves to the next stop: "earned principal forgiveness."
Earned principal forgiveness may be offered on subprime ARMs as well as on pay-option ARMs. To qualify, the borrower has to owe at least 20 percent more than the house is worth. For these customers, Bank of America will "forbear principal" for five years. The bank will forbear as much as 30 percent of the loan amount, down to 100 percent of the home's current value.
"Forbear principal" means you still owe the money, but the bank doesn't charge interest on the entire loan amount. For example, if you owe $120,000, and the bank forbears $20,000, then you pay interest on $100,000 -- but you still owe $120,000.
If Bank of America forbears part of the amount you owe, you can have some of that debt forgiven if you stay current on the loan. One-fifth of the forborn amount is forgiven each year if you make your payments on time. That happens for at least the first three years.
In the fourth and fifth years, debt won't be forgiven if the home's value has risen and you're no longer upside-down on the loan. "This helps strike a critical balance between customer and investor interests," says Jack Schakett, who heads Bank of America's loss-mitigation efforts.
The bank's message to borrowers who think they might be eligible for this program: Don't call us, we'll call you. Schakett says that every month, the bank evaluates its customers' payment histories, amount owed and estimated home value. The bank will contact borrowers who might qualify for the program, beginning in May.
Schakett estimates that the average amount of principal forgiveness or forbearance will be around $62,000 to $65,000. If 45,000 people take the offer and ride it to completion, that will total around $3 billion.
Friday, April 23, 2010
The Art of Display
Source My Home Ideas
Provided By Shelley Dudley
Adapted From Design Idea Book, Oxmoor House, 2007
Collective Traits
Objects work best together when they share a trait. This collection features vases in both glass and pottery, all in gourd shapes.
Similar Sets
The same goes for this display of veined stone -- the tabletop, lamp base, and figurine -- and wood pieces, grouped into like sets. The frame on the wall shares traits of both.
Hanging Glass
Paintings and photography aren't the only things that can be hung on walls. Here freeform glass bowls are displayed in a hallway.
Exotic Display
African headdresses above a desk make for especially intriguing displays.
Multiple Impact
Just about everything benefits from being hung in multiples. Witness these fish-eye mirrors and soft botanical prints: both would have had less impact hung solo.
Creative Display
The designer of this room made creative use of the molding along the top of the wainscoting: She hung a painting and collection of plates to look as if they're propped on the ledge. The height of the wainscoting makes it work.
Keep It Close
Furnishings and wall hangings can often feel like exactly that: a group of furnishings with a group of wall hangings floating above it. To make everything cohere, this mirror and botanical prints were hung close together and low to the dresser.
Classic Space
Mantels and the wall space above them are classic spots for displaying cherished art and objects, but the mouth of the fireplace is often a missed opportunity. This one contains a porcelain piece that matches those on and above the mantel.
Looking for a new home to fabulously furnish? Give us a call at 972-772-7000 or email us at rockwall@kw.com.
Provided By Shelley Dudley
Adapted From Design Idea Book, Oxmoor House, 2007
Grouping similar objects together makes any collection more exciting. Our tips will help to enhance any display.
Collective Traits
Objects work best together when they share a trait. This collection features vases in both glass and pottery, all in gourd shapes.
The same goes for this display of veined stone -- the tabletop, lamp base, and figurine -- and wood pieces, grouped into like sets. The frame on the wall shares traits of both.
Hanging Glass
Paintings and photography aren't the only things that can be hung on walls. Here freeform glass bowls are displayed in a hallway.
Exotic Display
African headdresses above a desk make for especially intriguing displays.
Multiple Impact
Just about everything benefits from being hung in multiples. Witness these fish-eye mirrors and soft botanical prints: both would have had less impact hung solo.
Creative Display
The designer of this room made creative use of the molding along the top of the wainscoting: She hung a painting and collection of plates to look as if they're propped on the ledge. The height of the wainscoting makes it work.
Keep It Close
Furnishings and wall hangings can often feel like exactly that: a group of furnishings with a group of wall hangings floating above it. To make everything cohere, this mirror and botanical prints were hung close together and low to the dresser.
Classic Space
Mantels and the wall space above them are classic spots for displaying cherished art and objects, but the mouth of the fireplace is often a missed opportunity. This one contains a porcelain piece that matches those on and above the mantel.
Looking for a new home to fabulously furnish? Give us a call at 972-772-7000 or email us at rockwall@kw.com.
Wednesday, April 14, 2010
How to Get the Extended Home Buyer Tax Credit
Provided By Shelley Dudley
Source National Association Of Realtors
Close on your home purchase between November 7, 2009 and April 30, 2010, or have a binding written contract by April 30, 2010 and close by July 1, 2010.
Documentation of Purchase
Details concerning the precise documents required to confirm your purchase have not yet been released. When this information becomes available, we will include instructions and links to the appropriate forms.
When to Apply the Credit
Buyers purchasing homes on or before December 31, 2009 may claim the credit on their 2009 tax returns.
Buyers purchasing in 2010 will have the option to:
Applying the Credit to Your 2009 Taxes
You will need to do three things to claim the credit on your 2009 tax return:
1. Fill out Form 5405 to determine the amount of your available credit;
2. Apply the credit when you file your 2009 tax return or file an amended return;
3. Attach documentation of purchase to your return or amended return.
Want to hear more about the Extended Home Buyer Tax Credit? Give us a call at 972-772-7000 or email us at rockwall@kw.com.
Source National Association Of Realtors
You've decided to purchase a home and take advantage of the Extended Home Buyer Tax Credit. Here's what you have to do to get your benefit:
Close on your home purchase between November 7, 2009 and April 30, 2010, or have a binding written contract by April 30, 2010 and close by July 1, 2010.
- Decide whether to:
- apply the credit to your 2009 tax return, filed on or before April 15, 2010;
- file an amended 2009 return; or,
- apply the credit on your 2010 return, filed on or before April 15, 2011.
Documentation of Purchase
Details concerning the precise documents required to confirm your purchase have not yet been released. When this information becomes available, we will include instructions and links to the appropriate forms.
When to Apply the Credit
Buyers purchasing homes on or before December 31, 2009 may claim the credit on their 2009 tax returns.
Buyers purchasing in 2010 will have the option to:
- Claim the credit on their 2009 return, even if the purchase is completed after December 31, 2009;
- File an amended return for 2009 if their purchase is completed after April 15, 2010; or,
- Claim the credit on their 2010 tax returns.
Applying the Credit to Your 2009 Taxes
You will need to do three things to claim the credit on your 2009 tax return:
1. Fill out Form 5405 to determine the amount of your available credit;
2. Apply the credit when you file your 2009 tax return or file an amended return;
3. Attach documentation of purchase to your return or amended return.
Want to hear more about the Extended Home Buyer Tax Credit? Give us a call at 972-772-7000 or email us at rockwall@kw.com.
Wednesday, March 24, 2010
Favorite Places - Living Areas
\Provided By Shelley Dudley
Source My Home Ideas
Relaxed Living
A wash of pastels brings this coastal living room together. Promote conversation with four chairs instead of the traditional sofa, anchored by round ottoman.
Basics and Branches
Create this sweet spot in a living room or entryway with a few key furniture pieces and a bundle of pussy willow branches.
Exotic and Natural
Clean, modern lines and exotic accessories give this living room a Bali-inspired, open-air vibe.
Fabulous Focal Point
Even when it is too warm for a blazing fire, you can use your fireplace to create atmosphere by adding candles or even white sting lights. For an extra touch, lean a mirror against the back wall to add extra dimension.
Sunshine Day
Cheerful and energizing, yellow brings warmth to a room. It enhances and maximizes natural light and can brighten a space with few windows.
Reach The Sky
In this coastal family room, a vaulted, beaded-board ceiling makes the room feel incredibly spacious and open. Solid orange fabric brings out the orange tones in the natural stain of the wood and mixes flawlessly with a funky green print.
Mixed and Cozy
The mix of comfy slipcovered sofas with a 1940s French acrylic coffee table and antique Louis XVI armchairs infuses this room with a personality of its own.
Conversation Starter
Carol suggests creating a seating arrangement with a circle of chairs, rather than sofas positioned across from each other. "People sit more comfortably in their own chairs, and it's better for conversation," she says.
Living Large
Beach house style just got a lot more interesting. "Don't be afraid of color," says designer E. Dale Trice. He proves his fearlessness in the living room with a vivid sectional sofa, curtains the color of a Gulf sunset, and accents of ocean blue.
A long, narrow table against the wall of windows serves as a library table when not in use for dining. The mahogany trestle table base supports a wrapped aluminum top. Water hyacinth chairs are an economical alternative to wooden chairs and pick up the black tones of the photograph frames.
Looking for the perfect home to create your favorite place? Call us at 972-772-7000 or email us at rockwall@kw.com.
Source My Home Ideas
Living areas can be anywhere in the house and are usually distinguished by a favorite chair, a preferred reading nook or just a cozy place where family and friends congregate and come together.
Classic Western Look
If you're unsure where to go first in this Abilene, Texas, home, just follow the cat tracks. From the front door, tiny feline footprints lead toward the open living area. Guests frequently comment on them, not because the homeowners refuse to clean the floor, but because the footprints are the only reminder of a cat who long ago stepped across the terra-cotta tiles while they were drying in the sun in Mexico, leaving his mark forever.
A wash of pastels brings this coastal living room together. Promote conversation with four chairs instead of the traditional sofa, anchored by round ottoman.
Basics and Branches
Create this sweet spot in a living room or entryway with a few key furniture pieces and a bundle of pussy willow branches.
Exotic and Natural
Clean, modern lines and exotic accessories give this living room a Bali-inspired, open-air vibe.
Fabulous Focal Point
Even when it is too warm for a blazing fire, you can use your fireplace to create atmosphere by adding candles or even white sting lights. For an extra touch, lean a mirror against the back wall to add extra dimension.
Sunshine Day
Cheerful and energizing, yellow brings warmth to a room. It enhances and maximizes natural light and can brighten a space with few windows.
Reach The Sky
In this coastal family room, a vaulted, beaded-board ceiling makes the room feel incredibly spacious and open. Solid orange fabric brings out the orange tones in the natural stain of the wood and mixes flawlessly with a funky green print.
The mix of comfy slipcovered sofas with a 1940s French acrylic coffee table and antique Louis XVI armchairs infuses this room with a personality of its own.
Conversation Starter
Carol suggests creating a seating arrangement with a circle of chairs, rather than sofas positioned across from each other. "People sit more comfortably in their own chairs, and it's better for conversation," she says.
Living Large
Beach house style just got a lot more interesting. "Don't be afraid of color," says designer E. Dale Trice. He proves his fearlessness in the living room with a vivid sectional sofa, curtains the color of a Gulf sunset, and accents of ocean blue.
A long, narrow table against the wall of windows serves as a library table when not in use for dining. The mahogany trestle table base supports a wrapped aluminum top. Water hyacinth chairs are an economical alternative to wooden chairs and pick up the black tones of the photograph frames.
Looking for the perfect home to create your favorite place? Call us at 972-772-7000 or email us at rockwall@kw.com.
Friday, March 12, 2010
4 Homebuyer Tax Credit Tips
Source: http://www.bankrate.com/
By Marcie Geffner
The credit is reasonably straightforward, but there are some tips for those who want to take advantage of it. Here's what you should know:
1. Deadline: April 30, 2010
The most important tip is to be aware of the deadline. Buyers who want to use the tax credit must have their new home under contract (i.e., in escrow) by April 30, 2010, and must close the transaction within 60 days after that date.
That deadline is much sooner than it may seem: Many buyers take months to locate a house, and closing a transaction typically takes 45 to 60 days.
First-time buyers should get started soon because they may face a lot of competition from other buyers who also want to purchase a moderately priced home, according to Ann Pettijohn, a broker and owner of Oaktree Realtors in Orange, Calif. That price range is "very popular" and those homes tend to sell more quickly than higher-priced homes, she says.
Buyers who wait until 2010 may also find fewer homes on the market from which to choose, according to Allyson Bernard, broker and owner of Real Estate Professionals of Connecticut.
"Smart buyers will be out during the holidays when other people are preoccupied," she says.
The short deadline may create even more of a crunch for homeowners who need to sell their current home and purchase a new one, Pettijohn says. Sellers need to be realistic about the value of their current home and put their home on the market as soon as possible, so they'll feel confident about buying their next home, she says.
Buyers who get behind the curveball shouldn't count on another extension to keep them in the game since Sen. Johnny Isakson, R-Ga., a former Realtor and the principal supporter of the legislation that extended and expanded the credit, has said in a statement that the tax credit won't be extended again.
2. Credit up to $8,000 or $6,500
Buyers also need to understand that the tax credit is equal to 10 percent of the sale price of the home, which could be less than the maximum of up to $8,000 for first-time buyers and up to $6,500 for repeat homeowners.
For example, if a first-time buyer purchased a small condominium that cost just $70,000, the tax credit would be $7,000. And by the way, if the home costs more than $800,000, the credit now drops to zero.
3. Get good advice
Homebuyers who want to take advantage of the tax credit should consult the right people for help, including:
4. Beware of tax fraud
According to Patti Ketcham, broker and owner of Ketcham Realty Group in Tallahassee, Fla., homebuyers should educate themselves about the tax credit and learn the lingo.
"It is critical that buyers educate themselves and that they not fall for the slick smoke and mirrors," she says. "Anytime you have found money, it brings out all the rats."
Three Web sites that may be helpful are:
Buyers and sellers should be wary of any advice that sounds suspicious or overly complicated, Ketcham says. For instance, buyers who are told to conceal any information from their lender should "get away" from whoever offered that advice, she says.
One final tip: The IRS has found such a high incidence of fraud and creative tax accounting associated with the homebuyer tax credit that taxpayers who take the credit will now be required to attach a copy of the settlement statement to their federal tax return as proof of purchase. Buyers should keep their paperwork handy.
By Marcie Geffner
The new-and-improved federal homebuyer tax credit can benefit not only first-time homebuyers but also homeowners who want to sell their current home and buy a new one.
The credit is reasonably straightforward, but there are some tips for those who want to take advantage of it. Here's what you should know:
1. Deadline: April 30, 2010
The most important tip is to be aware of the deadline. Buyers who want to use the tax credit must have their new home under contract (i.e., in escrow) by April 30, 2010, and must close the transaction within 60 days after that date.
That deadline is much sooner than it may seem: Many buyers take months to locate a house, and closing a transaction typically takes 45 to 60 days.
First-time buyers should get started soon because they may face a lot of competition from other buyers who also want to purchase a moderately priced home, according to Ann Pettijohn, a broker and owner of Oaktree Realtors in Orange, Calif. That price range is "very popular" and those homes tend to sell more quickly than higher-priced homes, she says.
Buyers who wait until 2010 may also find fewer homes on the market from which to choose, according to Allyson Bernard, broker and owner of Real Estate Professionals of Connecticut.
"Smart buyers will be out during the holidays when other people are preoccupied," she says.
The short deadline may create even more of a crunch for homeowners who need to sell their current home and purchase a new one, Pettijohn says. Sellers need to be realistic about the value of their current home and put their home on the market as soon as possible, so they'll feel confident about buying their next home, she says.
Buyers who get behind the curveball shouldn't count on another extension to keep them in the game since Sen. Johnny Isakson, R-Ga., a former Realtor and the principal supporter of the legislation that extended and expanded the credit, has said in a statement that the tax credit won't be extended again.
2. Credit up to $8,000 or $6,500
Buyers also need to understand that the tax credit is equal to 10 percent of the sale price of the home, which could be less than the maximum of up to $8,000 for first-time buyers and up to $6,500 for repeat homeowners.
For example, if a first-time buyer purchased a small condominium that cost just $70,000, the tax credit would be $7,000. And by the way, if the home costs more than $800,000, the credit now drops to zero.
3. Get good advice
Homebuyers who want to take advantage of the tax credit should consult the right people for help, including:
- A tax preparer, who can help them ensure they meet all the requirements to use the credit.
- A mortgage lender, who can help them choose a loan program that will fit their needs.
- A Realtor®, who can help them locate a home they can afford and want to purchase.
4. Beware of tax fraud
According to Patti Ketcham, broker and owner of Ketcham Realty Group in Tallahassee, Fla., homebuyers should educate themselves about the tax credit and learn the lingo.
"It is critical that buyers educate themselves and that they not fall for the slick smoke and mirrors," she says. "Anytime you have found money, it brings out all the rats."
Three Web sites that may be helpful are:
Buyers and sellers should be wary of any advice that sounds suspicious or overly complicated, Ketcham says. For instance, buyers who are told to conceal any information from their lender should "get away" from whoever offered that advice, she says.
One final tip: The IRS has found such a high incidence of fraud and creative tax accounting associated with the homebuyer tax credit that taxpayers who take the credit will now be required to attach a copy of the settlement statement to their federal tax return as proof of purchase. Buyers should keep their paperwork handy.
Wednesday, March 10, 2010
3 Steps to a Great Spring Lawn
Sources My Home Ideas/http://www.myhomeideas.com/
Photo Provided By Southern Living
Kick off your springtime gardening with these easy tips for a lush-looking lawn.
Get Ready for Spring
Your lawn may look sadder than a termite at a concrete festival, but it certainly doesn't have to stay that way. Giving your grass a bit of attention toward the end of winter will pay off big-time this spring and summer.
This machine, which resembles a large rotary tiller, uses steel tubes to take plugs of soil from the lawn and deposit them on the ground. Aerating once a year reduces compaction and increases the vigor of your lawn.
Heavy thatch prevents water and nutrients from reaching the roots and promotes disease.
Cut Bermuda lawns to 1/2 inch and leave the clippings in place to decompose. Mow other types to 1 inch. If you use a regular mower, bag the clippings; then compost or discard them. Mowing low lets more sun reach and warm the soil, encouraging the grass to green up.
When watered in, it forms a barrier atop the soil to keep weeds from sprouting. (Don't aerate after you put down the chemical, or you'll break the barrier.)
However, if you're sowing grass seeds this spring, don't put down any of these products, since weed preventers keep grass seeds from coming up, too.
Downsizing Your Lawn
If the idea of maintaining a large expanse of grass seems a bit daunting, consider downsizing your lawn.
If you like clean landscape lines, healthy green grass, and free weekends, consider hemming your lawn in with pavers or a brick patio. Because lawnmowers and string trimmers can damage the bark of trees and shrubs, reshaping your lawn so that all other vegetation is outside its perimeter avoids accidental contact.
This change also benefits the turf by reducing water and nutrient competition and providing more sunlight. With less fertilization, less watering, and less mowing to do, you can enjoy the lawn more!
Contrasting Color
Reap some wonderful landscape rewards with a little lawn.
Red brick or black stone borders around your lawn create a contrast of color that breaks up the monotony of green. Replicating the brick or stone of a house's foundation in the landscape will pull the eye from the curb to the front door, while repeating the straight lines of a front porch or the curved lines of an archway will create a pleasing effect.
In the lawn at left, combining flat stone pavers with turf creates a formal but functional entrance.
Photo Provided By Southern Living
Kick off your springtime gardening with these easy tips for a lush-looking lawn.
Your lawn may look sadder than a termite at a concrete festival, but it certainly doesn't have to stay that way. Giving your grass a bit of attention toward the end of winter will pay off big-time this spring and summer.
- Step 1: Aerate your soil
This machine, which resembles a large rotary tiller, uses steel tubes to take plugs of soil from the lawn and deposit them on the ground. Aerating once a year reduces compaction and increases the vigor of your lawn.
- Step 2: Mow the old grass low
Heavy thatch prevents water and nutrients from reaching the roots and promotes disease.
Cut Bermuda lawns to 1/2 inch and leave the clippings in place to decompose. Mow other types to 1 inch. If you use a regular mower, bag the clippings; then compost or discard them. Mowing low lets more sun reach and warm the soil, encouraging the grass to green up.
- Step 3: Stop weeds
When watered in, it forms a barrier atop the soil to keep weeds from sprouting. (Don't aerate after you put down the chemical, or you'll break the barrier.)
However, if you're sowing grass seeds this spring, don't put down any of these products, since weed preventers keep grass seeds from coming up, too.
Downsizing Your Lawn
If the idea of maintaining a large expanse of grass seems a bit daunting, consider downsizing your lawn.
If you like clean landscape lines, healthy green grass, and free weekends, consider hemming your lawn in with pavers or a brick patio. Because lawnmowers and string trimmers can damage the bark of trees and shrubs, reshaping your lawn so that all other vegetation is outside its perimeter avoids accidental contact.
This change also benefits the turf by reducing water and nutrient competition and providing more sunlight. With less fertilization, less watering, and less mowing to do, you can enjoy the lawn more!
Contrasting Color
Reap some wonderful landscape rewards with a little lawn.
Red brick or black stone borders around your lawn create a contrast of color that breaks up the monotony of green. Replicating the brick or stone of a house's foundation in the landscape will pull the eye from the curb to the front door, while repeating the straight lines of a front porch or the curved lines of an archway will create a pleasing effect.
In the lawn at left, combining flat stone pavers with turf creates a formal but functional entrance.
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