Lee Morof's Real Estate Blog

Once you have decided that you want to put your home up for sale, you should start taking the steps necessary to get it ready to go on the market. While some homes may be almost picture perfect and ready for a showing, there are others that may need some work.

It is always a good idea to evaluate the condition of your home as soon as you know you will be selling. Use these steps to not only determine what you need to do but to also guide you through your home sale preparation. 

Tips To Prepare Your Home For Sale

• Have a home inspection done. Many things can be identified that are cosmetic in nature just by taking a walk around the inside and outside of your home. Often times, the best way to detect underlying problems that you will need to fix before selling your home is to rely on a professional home inspector. This is a great way to know exactly what needs to be improved and to avoid uncovering any surprising, and potentially costly, repairs during the commission of the sale. 

• Make all necessary repairs. Once you know what needs to be done around the home, you should start prioritizing and making the necessary repairs. Some of the repairs may be costly so creating a budget and a plan of action can help you stay organized and efficient as you make these necessary improvements. 

• Clean up the yard. If your home has a yard, it should look clean and tidy. You do not need to have the whole yard professionally landscaped but mowing the lawn and removing any unsightly tree limbs or shrubbery will help with the curb appeal and first impression of your property.

• Clean up the exterior and interior of the home. It is essential that your home is clean and tidy as well so that your real estate agent can take quality pictures that will appeal to the most buyers and for your home to be ready for showings. If you are residing in the property, you should remove any personal effects, such as photos. This can make it easier for potential buyers to imagine this space as their own. You will also want to make sure to avoid clutter including dirty dishes or laundry. The home should not look lived in because you want the viewers to be able to see themselves living in the property. 

• Consider adding new paint. It is amazing how much of a difference a new coat of paint can do for a property. You may want to consider painting all of the interior rooms as well as the exterior of the home. Fresh paint is an easy way to present a clean, fresh face-lift for your property. Keep in mind that neutral tones in paint color will appeal to the most buyers. 

As you can see, there are quite a few things that need to happen before a property is ready to go on the market. Your trusted Real Estate Professional can guide you through this process and offer additional tips to help you achieve a successful home sale in your area. 

Do rooftop solar panels add value to a home, and are they cost-effective in terms of energy savings? The short answer is yes, say the experts. Although more than a million U.S. homes boasted solar panels in 2016, the percentage of solar-equipped households is still miniscule. 

That may change, however, as domestic prices for solar installations continue to decrease and property values rise.

The Pros And Cons Of Solar

While there is global agreement on the need to encourage cost-effective, non-polluting renewable energy sources, it is also acknowledged that solar effectiveness is not equal in all locations or situations. 

Several Southwestern states boast abundant sunshine, a high percentage of roofs that face in the proper direction for solar capture, and high consumption of electricity, including the the need for air conditioning. Experts predict that California could supply 74 percent of its total electrical needs if its roofs were clothed in solar panels.

On the other hand, Nevada, with a much smaller population and a different climate, only has the ability to supply 14 percent of its total need. The truth is that solar is not equally beneficial in all locations.

Solar Costs On Par With Grid Electricity

Even so, according to information provided by the Union of Concerned Scientists, more than half of U.S. states have reached or are close to the point where rooftop solar costs are on par with grid costs for electricity. In areas where utility companies offer net metering, solar producers can return excess energy for credit, which results, in the best of cases, in a monthly electricity bill that is extremely low, perhaps even zero.

Before committing to rooftop solar panels, homeowners should ask some pertinent questions. An investment in solar is still pricey, even though installation costs have dropped by about 50 percent over the past decade. With government incentives of various kinds, the total cost may dip to $10,000 or below for an average size home.

On average, the payback on that initial investment will be long-term, even though monthly savings on electrical bills can be immediate. Panel leasing is a popular option, with no initial down payment required, although the lease term may extend for 10 or even 20 years. Another option in some areas is to invest in a solar farm or cooperative.

Important Questions For Homeowners

Pertinent questions include personal motivation: Are solar panels simply a way to save money or do they demonstrate eco-consciousness and a concern for quality of life? Owners should also consider how long they plan to own a specific home before investing in rooftop panels.

Current data suggests that buyers will pay a premium for solar-equipped homes. A study by Energy Sage confirms that buyers in some states are more “pro-Solar” than other U.S. residents, but notes that the national value boost is around $15,000 for an average solar home, and higher in select locales. That equates to between $3 and $4 per kilowatt of solar power generated.  

Even though the added value is not uniform throughout the country, it is obvious that rooftop solar panels are emerging as mainstream home amenities.

Before delving into tax-deductible home improvements, it’s important to understand that these tax deductions won’t be applied immediately. In most cases, homeowners can only benefit, tax-wise, from their home renovations later, when they sell their home.

It’s important for homeowners to keep receipts for their improvements, though so they have proof of the improvements they made, even if it’s years later when they sell their residence.

Typical Renovations/ Home Improvements That Can Yield Eventual Tax Benefits

A home improvement is any project that substantially adds value to a home. It can include adapting it to be more useful or be improvements that allow it to be used differently. The following are some general home improvements that can yield tax savings when a home is sold for a profit.

• Room additions.
• Upgrades to plumbing.
• Kitchen improvements.
• A new roof.
• New bathrooms.
• Upgraded landscaping.
• Improvements to fencing.
• New decks.
• Improved wiring.
• New walkways.
• Driveway improvements.
• Plumbing upgrades.

How Delayed Tax Benefits Work

While a homeowner can’t take the amount of money they spent on one of the above home improvements and deduct it that same tax year, they can sometimes benefit from the investment in their home. This is true because a homeowner can effectively reduce the amount of taxes they have to pay if they sell their home for a profit down the road.

When an improvement is made, the cost of those improvements are added to the tax basis of a home. The basis is the investment in a home for tax purposes. The greater this number becomes, the less the profit is from selling a home.

The following explains it a little better:

Example Of Tax Basis And Home Improvement Tax Savings

A fictional homeowner purchases their home for $600,000 and sells their home 20 years later for $1,000,000. Their original “profit” from the sale would have been $400,000, which would have been taxable income at the time of the sale. However, throughout the 15 years when they resided in the home, this homeowner made around $60,000 worth of home improvements, including a roof improvement and a kitchen update. The $60,000 is then added to the original investment this homeowner made in their home, bringing their tax basis to $660,000.

The homeowner’s profit when they sell their home is then reduced from $400,000 to $340,000. Many homeowners use home improvements as a way to reduce the amount of taxes they will one day have to pay when they sell their home for a substantial profit.

Other Ways For Homeowners To Benefit From Their Home This Tax Season

Homeowners can make their home work for them each and every tax year by qualifying for the home office deduction. This only works if they own and operate a legitimate business out of their home, though. A part of the home must be used either regularly or exclusively for the business to qualify.

The above is some pertinent information on how homeowners can use home improvements to reduce their tax burden.   As always, check with your trusted tax professional for accurate advice on your personal situation.

The digital age has changed the way buyers browse for and purchase goods and services, including real estate. While home buyers still can check out property listings via a print newspaper or by driving through desired neighborhoods in hopes of finding a “for sale” sign, digital sources offer more options and can make the home buying process easier. 

The National Association of REALTORS® (NAR) states in their 2017 Report: Real Estate in a Digital Age, that 44-percent of home buyers look online when beginning their search.

Social Media As Sources For Home Buyers

According to the Pew Research Center, 68-percent or two-thirds of U.S. adults use Facebook. In addition to that popular social media site, American adults regularly use Twitter, Instagram, Pinterest, and YouTube on a daily basis for entertainment, social engagement, shopping, and news. These sites also can be excellent sources for home buyers.

Home buyers now have instant, easy access to a wide variety of property listings beyond those featured on an individual real estate agency’s website. Many real estate agents post listings on social media with interior/exterior photos and some with virtual tours. Sites like YouTube offer valuable resources particular for first-time home buyers, from tips to how-to’s. 

Real Estate Apps

More than 90-percent of all real estate firms have a website. Visiting these sites are a great starting point and ideal way to connect with an agent that knows the local market. However, home buyers may also consider real estate apps to enhance the process. Even if not tech savvy, these apps are easy to use. 

The most used real estate apps are available for both Android and iOS. Digital Trends offers a breakdown of several of the most popular. Ask a real estate agent if they have one that’s specific to their firm.

These apps can help:

• Customize a search by location, property type, features, and price
• Reveal the worth or rental value of a property
• Show floor plans and exterior/interior photos
• Provide details about neighborhoods
• Offer lending institution information
• Directly connect buyers with a real estate agent

Stay Connected With A Real Estate Agent

Cell phones appear to be everywhere today and research shows that 77-percent of Americans own a smartphone. With that smartphone it’s easier than ever to stay connected with a real estate agent when buying a home. An agent can text or email potential listings to the phone, schedule open house meetings, and send updates regarding the offer just made on the perfect home.

Home buyers that can embrace the digital age have the opportunity to take advantage of the multiple platforms and tools available for making a real estate purchase. 

When you are a homeowner looking to reduce your carbon footprint, there are a number of steps you can take to make your home earth-friendly. From passive solar heating to solar panels, you can make a difference in the impact your home has on the environment.

Even when you aren’t building a new home, changes can be made to an existing property to increase efficiency and reduce reliance on utility systems.

Invest In Solar Power

Solar panels are one of the most popular ways to reduce your carbon footprint, and with good reason. Solar panels often produce enough electricity so that you have energy to sell back to the energy grid every month. Over time, solar panels on your property can earn you money instead of costing money in utility bills.

Consider Passive Solar Designs

Passive solar is heating your home with the sun by using the right design. For example, certain materials such as slate holds heat. If you have a room that gets plenty of sunlight during the day, a slate floor can help keep the room warmer once the sun sets. If the floor is made from a material that dissipates heat, such as ceramic tile, your home won’t benefit from the sun once it sets.

Radiant Floor Heating Saves On Energy Costs

Heat rises, and those that invest in radiant floor heating find that it is easier to heat up a room. Radiant floor heating uses coils below the surface of your floor, creating heat. The heat rises into the room instead of getting blown in through a heating vent. This reduces the amount of energy you need to heat your home.

Invest In Energy Efficient Appliances

Every appliance that you use in your home has an impact. Consider investing in energy efficient appliances when you are trying to make your home more earth friendly. You will save money on utility costs and help the environment at the same time.

Consider a Clothesline

The energy used to heat your clothes and dry them can be eliminated if you simply hang everything outside to dry. While this adds to your workload, it is a free way to reduce your carbon footprint.

When you have a home, there are a number of ways you can help reduce your impact on the environment. Set up a recycling area in your home, have a vegetable garden if possible, and use electricity only when necessary.

Enjoy your space and don’t be afraid to try new ideas to reduce waste within your home.

Although the majority of the Generation Z population make $25,000 or less per year, they really have embraced the American Dream of home ownership. According to a recent survey by Zillow, 97 percent of Gen Z renters asked were confident they will be homeowners in the future, whereas only 55 percent of Millennials were

82 percent of Gen Zers who were renting identified home ownership as the most important component of the American Dream — more than Millennials, even though that group is presently the largest segment of homebuyers, according to data from the National Association of Realtors.

So Who Exactly Are Generation Z?

While precise definitions vary, Generation Z are generally known as people born from the late 1990s to early 2000, and they are just beginning to come of age in the housing market. Many currently are renters, but they do not appear content to stay renting for long.  

That could be due to seeing rental prices skyrocketing across the country, or less than ideal rental situations may be a factor — nearly half are living in spaces less than 1,000 square feet, and 82 percent of those Gen Zers share rent with another person, according to MarketWatch.

This Generation Is Bigger Than The Millennials

The Generation Z crowd outnumbers their older Millennial peers by about one million, positioning them to be a force driving the home buying and building market soon. While they are experiencing one of the most competitive housing markets in recent history, that doesn’t seem to phase Gen Zers.

More than 77 percent say they would forgo business ownership in favor of home ownership, and more than 50 percent would be willing to give up social media networking for a year to obtain their dream home, according to a recent Time Magazine survey.

Three in five teens have already begun saving toward their dream home, so while most Gen Zers hope to be homeowners by the age of 28, (three years lower than the national average) they are getting a good start toward meeting that goal. Due to their savvy tech skills and inherent digital nature, Gen Zers are poised to buy homes more efficiently and faster than previous generations of renters.

When navigating the rental market, 33 percent of Gen Z renters are able to find new accommodations in a month or less, probably because they submit more applications per search, at approximately 3.1 applications per property search versus 2.4 for Gen Xers and 2.2 for Baby Boomers, according to a recent Zillow report.

Today’s homebuyers can have specific ideas and personal preferences that influence their decision on what attracts them to a particular property. While some prefer a fixer-upper, many desire a home that’s as close to turn-key as possible.

First time home sellers may help expedite the process with these six home selling tips. 

Determine Right Listing Price

A home priced competitively in its market typically sells faster. Professional REALTORS® know the area and look at comparative listings to help determine the right listing price.

First time home sellers often think their home should list higher, and this can turn away buyers. Trust a real estate agent to know the right price that will attract potential buyers for a sale that makes all parties happy.

Curb Appeal Makes a Difference

Great curb appeal has the power to attract buyers and create a positive first impression. Simple enhancements add to curb appeal:

• Mow the lawn or make sure the walk/driveway is clear of snow/ice
• Prune overhanging branches and trim bushes
• Remove any sickly or dead vegetation
• Replenish missing mulch or rocks in landscape beds
• Replace worn house numbers and/or mailbox
• Add fresh potted plants to porch for pop of color
• De-clutter yard by removing lawn ornaments/art and all kids’ toys
• Have all exterior lighting in working condition

A fresh coat of paint on the front door, clean windows, and a sidewalk swept free from leaves and debris also add to the overall welcoming look. 

De-clutter and Depersonalize

Once potential buyers enter the home, it’s time to make another important impression. Homebuyers should be able to visualize themselves living in the space.

De-cluttering and depersonalizing the home helps. The fewer items in a room, the larger the space feels. Key areas to de-clutter include the kitchen and bathroom, in particular the countertops. Remove all personal items, storing out-of-sight in a closet or cabinet. 

In addition, remove personal photographs and large collections if possible. Children’s rooms don’t need to be completely depersonalized, but it’s essential to de-clutter the space to show it to its best advantage.  

Repairs and Replacements

Every home has a few small items that need repair but have fallen to low priority. Before listing the home, take the time to make these repairs and replacements.

Tighten that loose cabinet in the kitchen, replace the torn bathroom window screen, and refresh the caulk in the showers. Sometimes it’s the little things that turn off homebuyers and these small repairs may be the tipping point for a sale. 

Offer the Extras

In a competitive market, offer extras to entice buyers. Generally, these extras are appliances that stay with the home as part of the sale. Other extras a seller may include within the price of the home are items like window treatments and outdoor accessories like patio furniture. 

Consider a Pre-inspection

A pre-inspection can help reduce concerns potential buyers have regarding the home’s current condition. It’s a way to reassure buyers that the house doesn’t have any hidden issues.

However, getting a pre-inspection doesn’t mean homebuyers won’t want their own home inspection, too. Consult with a real estate professional to help determine if a pre-inspection may be helpful.

First time home sellers don’t have to be overwhelmed with the process. With the right preparation and the help of a professional real estate agent, home selling can move swiftly. 

In recent years, building an environmentally friendly home or updating an existing home to be more energy efficient has become much more mainstream. While building an entirely green residence isn’t always fiscally possible, simple eco-friendly building techniques and upgrades will ultimately lower your water and electricity bills.

These green home improvements will save you money in the long run, while also saving the planet. The following are some of the easiest ways to lower your carbon footprint when building or updating a home. 

Build or Purchase a Smaller Home

Smaller homes naturally have a lower impact on the environment. There is less square footage to cool and heat, which keeps energy consumption down. However, this doesn’t mean that you need to give up your dream home. Instead, create an ideal floor plan with usable space, and downsize rooms you know you will not use on a daily — or even weekly — basis. 

Use Energy-Efficient Windows

When building a home or updating an existing home, use Energy Star-labeled windows. This important label means that the Environmental Protection Agency (EPA) has deemed them as energy efficient. The money saved on future heating and cooling bills often more than make up for the initial cost differential. 

Use Energy-Efficient Products

Like windows, certain appliances are also Energy Star-labeled. Energy Star appliances conserve energy, without sacrificing performance. Everything from a single light bulb to a geothermal heat pump can come with this important, government-approved label. 

Use Proper Insulation

Heating and cooling typically accounts for approximately half of a home’s energy consumption, and this energy usage is often wasted due to poor insulation. Start by making sure there are no drafts by windows and doors. This is one of the easiest things you can do to reduce your carbon footprint and the price of your monthly bills.

Install Solar Panels

Solar energy is both clean and renewable, and solar panels are the perfect way to harness this remarkable form of energy. While the initial cost of installation can seem high, the money saved in the long term is extraordinary. Plus, there are often tax breaks and other monetary incentives. When building a new home, consult with a knowledgeable architect about positioning the property and the solar panels for maximum sun exposure.

Use Sustainable Building Materials

Sustainable building materials can be utilized throughout the entire building process. When picking out wood for the frame of the home, use a supplier who practices an environmentally friendly planting and harvesting process. Once in the design phase, consider bamboo and/or cork flooring. They are both eco-friendly and trendy. 

Save Water

There are numerous ways to cut back on water usage. To start, install low-flow aerators on toilets and shower heads, invest in a tankless water heater and only use an Energy Star-rated washing machine. Next, capture rainwater on your property in a cistern or barrel. This water can be used for landscaping and irrigation.

Creating a green home doesn’t have to be complicated. Simple updates and a bit of forethought can drastically reduce monthly bills, while simultaneously reducing fossil-fuel emissions. 

Spring is many people’s favorite season of the year. Obviously, there are many valid reasons why this is so;  but, one of the best things about spring is that it is an ideal time to sell your home.

If you have considered putting your home on the market any time in the next year or so, check out these five reasons which make spring the ideal time.

• Buyers are searching – A huge majority of home buyers want to move during summer. Many families have school or work vacations that make the moving process a little easier during this time. If you put your home on the market during spring, you ready things for someone to purchase and move in during this prime time

• The weather is cooperative – Yes, there may be a few spring rain showers here and there, but during the spring season (in most parts of the country,) you’ll find that the weather is neither too hot nor too cold to keep buyers from searching. In addition, the spring sunshine makes for beautiful listing photos.

• It’s a great time for home improvement – Whether you want to make improvements to your house to make selling easier, or you plan to sell your home as a fixer-upper, the knowledge that spring and the coming summer months is the perfect time to attend to these tasks will benefit you during the listing and sales process.

• Your yard will look great – They say that curb appeal is one of the most important things that is considered when someone purchases a home. When you sell in springtime, the grass is green, the flowers are in bloom and your yard will look it’s very best. You may find that it’s a little easier to sell during this time just because of the extra “wow factor” your yard brings to the table.

• The market is prime – Listen to any news or finance program and you’ll hear that the real estate market is booming. Take advantage of this benefit and pair it with all the other reasons to sell your home this spring. You may find that selling your property quickly and at your asking price is much easier than you ever imagined it would be.

As you can see, spring really is an excellent time to sell a home. However, don’t wait until the peak of the season to think about putting it on the market and expect to reap all the benefits. Act now and be ready to make a splash when the weather warms up and the sun comes out to shine.

If you’ve had to watch your parents transition into assisted living, you may have no desire to call such a place home. You are not alone. According to the Aging in Place Housing Survey conducted by the American Association of Retired Persons (AARP), more than 90 percent of seniors want to remain in their home.

Many survey respondents said that they would rather use nursing home funds towards purchasing a home that is suited for aging in place or making accessible home modifications.  

You’ve probably heard the buzzwords — aging in place, non-assisted living, universal design — these phrases mean the same thing: growing older in your home. Today, home modifications can help you continue to live in your home as you age. Plus, aging-in-place home modifications are much less expensive than moving into a nursing home or assisted living facility.

The problem is that most existing homes are not conducive to aging in place. There are more than 100 million homes in the United States. However, only one percent of them are currently set up for accessibility. Fortunately, there are a variety of home modifications that you can do to make any home more accessible. Here is a handy guide to accessible home modifications.

Think About Your Future Needs

The first step in making sure your home is suited to aging in place is to consider how your needs might change in the future. Everyone’s situation is different.

If you have a chronic illness, such as diabetes or heart disease, it is best to talk with your doctor to determine how these health issues might make it hard for you to live on your own in the future. Consider what modifications you’ll need to make to ensure that your home will suit your future needs.

For example, if you are thinking of buying a new home with an upstairs, you might use the upper part of the house for your home office now and convert the area into a caregiver’s quarters in the future.

Consider a First-Floor Master Suite

An essential home modification for aging in place is first-floor living. Although you might not have mobility issues now, hip replacements and other problems that affect mobility are frequent with increasing age.

Plus, a first-floor suite can increase the value of your home should you sell in the future. According to data from Builder Online, out of the best-selling new home floor plans, more than 83 percent feature accessible master suites.

Choose Slip-Resistant Flooring

Falls are a serious threat to the independence and health of older adults. They are the leading cause of injuries among Americans ages 65 and older. That is why it is so important to take steps to reduce the likelihood of a fall.

One of the easiest modifications that you can make in this area is to choose slip-resistant flooring. Cork and bamboo flooring are both popular for aging in place as they are softer and thus more forgiving during a fall.

These are just a few of the aging in place modifications that you can make to your home. There are many others. The important thing to remember is that you don’t have to sacrifice lifestyle or luxury to have a home that is also accessible.

Many of the above modifications can be made anytime and can help enhance the beauty and comfort of your home.