5 things to know about open houses

Open houses are a great source of information about the property, neighborhood and local markets. Nearly half of real-estate buyers go to one.

1. Look past window-dressing

A full 94% of sellers do some "staging," such as repainting or bringing in new furniture, says Coldwell Banker.

"You can be so wowed by staging that you overlook important things," says San Jose realtor Carl San Miguel. To focus on what matters, lift rugs to look at floors, ask the agent to turn off music so you can listen for nearby noise, and beware of any smells masked by candles.

Also request a disclosure sheet, which lists known structural issues.

2. You can learn a lot from the crowd

Nearly half of buyers visit open houses, says the National Association of Realtors, so pay attention to your fellow shoppers' comments; they may have insight into how this home stacks up. Locals often pop in too, so if someone sounds like a neighbor, ask about the area.

Related: Miami's housing boom

To get a feel for demand, visit in the last hour and peek at the sign-in sheet. A full sheet could mean the home will sell quickly, says Paul Reid, a California-based agent.

3. It's your chance to test-drive the place

Visiting a home in person allows you to pick up on details you won't see in the listing, such as the strength of the water pressure and how much you could actually cram in the closets. What buyers often forget, though, is to explore the neighborhood as well, says Dallas agent Mary Beth Harrison. Get a sense of the area by checking out surrounding streets and driving home using a different route.

4. The agent may be scouting you...

Listing agents will often tap a colleague to run an open house, so your host may be fishing for buyers to represent. If you're in the market for an agent, this can be a chance to meet pros and see what they're like on the job. Not interested? Say so upfront to fend off any confusion, says Harrison.

Related: Tips for buying a property

Shoppers who already have a buyer's agent should write his contact information on the sign-in sheet so he can handle any follow-up calls or emails on their behalf.

5. ...Or gathering info for the seller

When a listing agent is hosting, pepper her with questions. Ask whether there have been any upgrades to the property, if she's gotten any offers, and when and why the sellers are moving (you may get a vague reply on that last one).

Related: How much do you know about mortgages?

Keep mum on your budget, feelings about the home, and anything else that might give the seller a leg up in negotiations. "Don't assume the agent is there to help you out," says Chicago agent Fran Bailey. 

Nail your home renovation budget

With the real estate market heating up, it appears that American homeowners are ready to start remodeling again.

After years of decline, home-improvement spending increased 9% in 2012, according to the Joint Center for Housing Studies at Harvard University, which predicts a double-digit surge for 2013.

Planning to get in on the renovation revival with a project of your own? You'll want to utilize a tool that some home appraisers say was too often neglected during the last housing rush: a budget.

Establishing a project cap and looking for painless ways to reduce your overall cost will stop you from spending more than you can hope to recoup when it's time to sell.

Here, a primer on setting -- and sticking to -- a renovation budget:

Find your number. To figure out what's safe to spend, you'll need to determine how much of your home's value is represented by the room you're planning to redo, says Omaha appraiser John Bredemeyer, a spokesperson for the Appraisal Institute, which sets national standards.

Related: 4 tips from a serial home remodeler

In general, says Bredemeyer, the kitchen accounts for 10% to 15% of property value; bathrooms, 5% to 10%; half-baths, 5%, and a finished basement or attic, 10% to 15%. To calculate your cap, multiply that percentage by your property value. So if you're planning, say, a major kitchen reno on a $400,000 home, you wouldn't want to spend more than $60,000.

Use your local municipal tax valuation or a site like Trulia.com to gauge how much your home is worth. You'll typically get a conservative estimate from both because they're often slightly behind the market. And, of course, budget to spend less than the calculation if that's more than you can afford.

Limit major construction. When remodeling existing space, you can trim your outlay by minimizing changes to the footprint, says Charleston contractor Mike Eippert. Any wall you don't move or remove will save $3,000 to $5,000. Ask your contractor if it's possible to avoid stripping open the walls and ceilings. That could save you another $2,000 to $5,000, even after workers make some temporary holes to snake in new wiring and pipes.

Related: The top 10 things you need to know when buying a home

Similarly, putting new bathroom or kitchen plumbing fixtures and appliances in the same spot their predecessors were located could slash your project cost by $2,000 to $3,000, says Kansas City, Mo., contractor Paul Young, because the existing pipes and electrical lines can be reused.

Do the right things yourself. Homeowners often tackle interior painting themselves because it is low tech, requires few tools, and comes at the end of the project, when funds may be running low. Good move. That could save you more than $1,000 a room.

If you want a bigger sweat-equity bump, consider doing your own demolition too, says Bruce Irving, a Cambridge, Mass., realtor and renovation consultant.

Related: Best deals on real estate

As long as you can do the job correctly and safely, pulling out appliances, plumbing fixtures, cabinets, and tiles could save you $2,000 to $5,000 or more. Check diynetwork.com for a how-to refresher, and be sure to walk through the process with your contractor before you start.

Look for savings on the priciest items. You don't have to forgo upscale features to keep your project affordable. If you want stone kitchen countertops, for one, choosing a simple squared-off edge profile (called "eased") rather than a more complex pattern could save $500 to $1,000, says Adrienne Dorig Leland, a kitchen designer in Eau Claire, Wis.

Ask local appliance retailers about scratch-and-dent and open-box sales; the damage may be minor and in a low-visibility spot, and you could trim $200 to $1,000 per appliance.

For a high-end commercial range, try an appliance reseller, like Green-Demolitions.com, where you could pick up a lightly used Viking, say, for 25% to 50% of a new one's $6,000 price tag. Knowing your kitchen centerpiece didn't bust your budget will let you enjoy cooking on it all the more. 

What Is a Good Loan Interest Rate?

Interest on a loan is paid for the privilege of borrowing money from a lender, whether from a major financial company or a close friend. Getting a good interest rate depends on how much the loan is for, the purpose of the loan, down payment and how long it will take to repay the loan. Those with high credit scores are usually offered the best rates by lenders because of their excellent history as borrowers. In essence, the lower the interest rate, the less money you will pay out-of-pocket in addition to the principal.

Types

• What qualifies as a "good" interest rate depends on the type of loan you are seeking. There are mortgage loans, home equity loans, new and used car loans, and personal loans. The interest rates for each product differ.

Time Frame

• Historically, the longer the period of time given to pay back a loan, the higher the interest rate will be. This is because it takes a longer time to repay the principal. Better interest rates can be found on loans that feature shorter repayment time periods.
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Effects

• A good interest rate on a loan is a result of having excellent credit history. This indicates that you can be relied upon to make timely payments without missing any, and that you know how to handle your lines of credit. The lower the interest rate, the less your monthly cost will be during the repayment period.

Considerations

• Interest rates are based on the base rates set by the government and commercial lenders. The state of the economy in areas such as real estate, retail and employment are weighed by the Federal Reserve Committee when they meet to set the Federal Funds Rate. This rate is used as a starting point by financial institutions when determining interest rates for borrowers and eventually affects what kind of interest rate you as a consumer can get on a loan.

History

• What defines a "good" interest rate also depends on the shape of the economy at the time you're seeking a loan. For instance, in the 1970s, interest rates on a 30-year fixed mortgage began around 8 percent, peaking at almost 19 percent in 1982. Rates declined throughout the rest of the decade and into the 1990s, when the average was about 9 percent, and as of 2009, were at historic lows hovering around 5 percent.

  
  

  
  

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How To Prepare Your House For Sale

Prepping and staging a house. Every seller wants her home to sell fast and bring top dollar. Does that sound good to you? Well, it's not luck that makes that happen. It's careful planning and knowing how to professionally spruce up your home that will send home buyers scurrying for their checkbooks. Here is how to prep a house and turn it into an irresistible and marketable home.

Difficulty: Average

Time Required: Seven to 10 Days

Here's How:

1. Disassociate Yourself With Your Home.
   • Say to yourself, "This is not my home; it is a house -- a product to be sold much like a box of cereal on the grocery store shelf.
   • Make the mental decision to "let go" of your emotions and focus on the fact that soon this house will no longer be yours.
   • Picture yourself handing over the keys and envelopes containing appliance warranties to the new owners!
   • Say goodbye to every room.
   • Don't look backwards -- look toward the future.
2. De-Personalize.
   Pack up those personal photographs and family heirlooms. Buyers can't see past personal artifacts, and you don't want them to be distracted. You want buyers to imagine their own photos on the walls, and they can't do that if yours are there! You don't want to make any buyer ask, "I wonder what kind of people live in this home?" You want buyers to say, "I can see myself living here."
3. De-Clutter!
   People collect an amazing quantity of junk. Consider this: if you haven't used it in over a year, you probably don't need it.
   • If you don't need it, why not donate it or throw it away?
   • Remove all books from bookcases.
   • Pack up those knickknacks.
   • Clean off everything on kitchen counters.
   • Put essential items used daily in a small box that can be stored in a closet when not in use.
   • Think of this process as a head-start on the packing you will eventually need to do anyway.
4. Rearrange Bedroom Closets and Kitchen Cabinets. 
   Buyers love to snoop and will open closet and cabinet doors. Think of the message it sends if items fall out! Now imagine what a buyer believes about you if she sees everything organized. It says you probably take good care of the rest of the house as well. This means:
   • Alphabetize spice jars.
   • Neatly stack dishes.
   • Turn coffee cup handles facing the same way.
   • Hang shirts together, buttoned and facing the same direction.
   • Line up shoes.
5. Rent a Storage Unit. 
   Almost every home shows better with less furniture. Remove pieces of furniture that block or hamper paths and walkways and put them in storage. Since your bookcases are now empty, store them. Remove extra leaves from your dining room table to make the room appear larger. Leave just enough furniture in each room to showcase the room's purpose and plenty of room to move around. You don't want buyers scratching their heads and saying, "What is this room used for?"
6. Remove/Replace Favorite Items.
   If you want to take window coverings, built-in appliances or fixtures with you, remove them now. If the chandelier in the dining room once belonged to your great grandmother, take it down. If a buyer never sees it, she won't want it. Once you tell a buyer she can't have an item, she will covet it, and it could blow your deal. Pack those items and replace them, if necessary.
7. Make Minor Repairs.
   
   • Replace cracked floor or counter tiles.
   • Patch holes in walls.
   • Fix leaky faucets.
   • Fix doors that don't close properly and kitchen drawers that jam.
   • Consider painting your walls neutral colors, especially if you have grown accustomed to purple or pink walls.
     (Don't give buyers any reason to remember your home as "the house with the orange bathroom.")
   • Replace burned-out light bulbs.
   • If you've considered replacing a worn bedspread, do so now!
8. Make the House Sparkle!
   
   • Wash windows inside and out.
   • Rent a pressure washer and spray down sidewalks and exterior.
   • Clean out cobwebs.
   • Re-caulk tubs, showers and sinks.
   • Polish chrome faucets and mirrors.
   • Clean out the refrigerator.
   • Vacuum daily.
   • Wax floors.
   • Dust furniture, ceiling fan blades and light fixtures.
   • Bleach dingy grout.
   • Replace worn rugs.
   • Hang up fresh towels.
   • Bathroom towels look great fastened with ribbon and bows.
   • Clean and air out any musty smelling areas. Odors are a no-no.
9. Scrutinize. 
   
   • Go outside and open your front door. Stand there. Do you want to go inside? Does the house welcome you?
   • Linger in the doorway of every single room and imagine how your house will look to a buyer.
   • Examine carefully how furniture is arranged and move pieces around until it makes sense.
   • Make sure window coverings hang level.
   • Tune in to the room's statement and its emotional pull. Does it have impact and pizzazz?
   • Does it look like nobody lives in this house? You're almost finished.
10. Check Curb Appeal.
    If a buyer won't get out of her agent's car because she doesn't like the exterior of your home, you'll never get her inside.
• Keep the sidewalks cleared.
• Mow the lawn.
• Paint faded window trim.
• Plant yellow flowers or group flower pots together. Yellow evokes a buying emotion. Marigolds are inexpensive.
• Trim your bushes.
• Make sure visitors can clearly read your house number.

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Selling When Getting a Divorce Protecting Credit During Divorce & Selling

Even the divorces and breakups that start out amicable can eventually turn sideways -- if not completely inside out -- despite well-intentioned efforts to remain civil. Regardless of who was wronged, who was innocent, how the blame is divided, or whether the union simply drifted apart, it's a death of a relationship, a time to mourn. It's also a time of rebirth and a new life.

So, don't get sidetracked. Although your "better half" may be out of the picture, your finances will follow you wherever the future leads you. My mother used to warn her daughters by saying: "You can always find another boyfriend, but it's damn hard to find another place to live." Her Midwestern common-sense advice, if you're wondering, applied to my brother as well.

Steps You Can Take to Protect Your Credit

• First, Obtain Your Credit Report. You can get a copy of your credit report by notifying each of the three credit bureaus, Experian, TransUnion orEquifax, or you can obtain free copy of each report online by copying and pasting this secure link into your browser: http://annualcreditreport.com.

• Second, Inventory Credit. Make a list of all creditors, secured and unsecured.

1. Secured creditors are those that attach an asset as security for the debt. If your home is mortgaged or you have a loan on your car, for example, your home and car are assets used as security.
2. Unsecured creditors are those that lend you money based solely on your promise for repayment.

• Third, Separate Joint Accounts From Individual Accounts. Joint accounts are those containing both names, and each of you is responsible for the debt. Individual accounts are those opened solely in your name.

• Fourth, Call Joint Credit Card Lenders. Find out if the credit extended is based on your credit or your partner's credit.

1. If the credit is based on your credit, but your partner has a card, ask to have your partner removed.
2. If the credit is based on your partner's credit, put the credit card in your pocket. OK, just joking. Ask to have your name removed.
3. If the lender refuses to remove a name from the account, close the account and open a new account.
4. If you have a balance on your credit card, the creditor will not close the account unless you pay off the balance. But you can prevent further charges on the account by asking for the account to be frozen.

• Fifth, Sell or Refinance Secured Assets. It is important to separate the liability for secured assets.

1. If a car is financed in both names, regardless of whose name is on the title, both of you are responsible for the loan.
2. If a mortgage is held in both names, regardless of whose name is on the deed, both of you are responsible for the mortgage.
3. Even if your divorce decree assigns possession of those assets to one party, or if one of you voluntarily transfers title to the other, the liability for the loan will remain if you do not sell or refinance the asset.

Refinancing Your House

Should you reach an agreement whereby one person will remain in possession of the home, then the prudent course of action is to remove the existing loan and replace it with a new loan, providing, of course, that you lack the capital to pay off the loan in cash.

• Record a New Deed. Ask your lawyer or title company to draw up a deed that transfers title from one person to the other. Commonly used deeds for this purpose are quitclaim deeds, but your lawyer may prefer to use a warranty deed or a grant deed.

• Obtain a New Mortgage. Places to get a mortgage include your local bank, a credit union or through a trusted mortgage broker.

1. If you cannot qualify by yourself, you can either sell the property or obtain a co-signer such as asking a relative to help you qualify.
2. Should you owe your partner equity, ask your partner if he or she would be willing to let you obtain a large enough loan to pay off the existing loan and then carry a second mortgage for the amount owed. This way you can make payments to your partner for the equity, perhaps at a lower interest rate and better terms than a lender would give you.
   Moreover, providing there is enough equity in the home to support a second mortgage -- preferably the amount of both loans do not exceed 80% of the home's market value -- your partner might be able to sell the mortgage at a discount to obtain the cash.
3. Bear in mind that obtaining a new loan will require an appraisal to substantiate value, but since lenders have a vested interested in making you a loan, you might want to also ask a trusted real estate agent to pull comparable sales for you as well. Appraisals are not written in gold. You do not want to pay your partner more for the property than it is worth, and refinance appraisals often result in higher values than you might get upon resale.
4. A new mortgage will also require a new title policy. Although you will be insuring the lender and not yourself, this process will give you relative assurance that your partner has not further encumbered the property without your knowledge.

Selling Your House

Establish Market Value. Figure out how much your home is worth based on past comparable sales.

Prepare Your House For Sale. Clean, declutter, depersonalize and pack.

Find a Real Estate Agent. Consider experienced agents over friends or relatives with little or no experience.

Interview at Least Three Agents Before Hiring an Agent. Although, depending on market conditions, you may easily sell the home yourself, it's always more difficult to do so during times of stress, and you might want to let a professional take over.

Don't Advertise Your Dissolution. Protect your privacy while your home is on the market. If buyers know the reason for the sale, you might receive a lower offer.

For legal advice, please consult a lawyer.

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Questions to Ask a Real Estate Agent - How to Interview an Agent

mart consumers interview potential real estate agents before deciding on whom to hire. Just as you are sizing up the potential for a good fit, rest assured that the real estate agent will likely be interviewing you, too. Be wary of agents who don't ask you questions and probe for your motivation. You wouldn't work with just any agent off the street, and good agents are just as selective about their clients, too.

Caution: Don't interview agents from the same company!

1. How Long Have You Been in the Business?

The standard joke is there's nothing wrong with a new agent that a little experience won't fix. But that's not to say that freshly licensed agents aren't valuable. Much depends on whether they have access to competent mentors and the level of their training. Newer agents tend to have more time to concentrate on you. Some agents with 20 years of experience repeat their first year over and over. Other 20-year agents learn something new every year.

2. What is Your Average List-Price-to-Sales-Price Ratio?

Knowing the agent's average ratio speaks volumes. Excluding sizzling seller's markets, a good buyer's agent should be able to negotiate a sales price that is lower than list price for buyers. A competent listing agent should hold a track record for negotiating sales prices that are very close to list prices. Therefore, listing agents should have higher ratios closer to 100%. Buyer's agent ratios should fall below 99%.

3. What is Your Best Marketing Plan or Strategy for My Needs?2. What is Your Average List-Price-to-Sales-Price Ratio?

Knowing the agent's average ratio speaks volumes. Excluding sizzling seller's markets, a good buyer's agent should be able to negotiate a sales price that is lower than list price for buyers. A competent listing agent should hold a track record for negotiating sales prices that are very close to list prices. Therefore, listing agents should have higher ratios closer to 100%. Buyer's agent ratios should fall below 99%.

As a buyer, you will need to know:

• How will you search for my new home?
• How many homes will I likely see before I find a home I want to buy?
• Will I be competing against other buyers?
• How do you handle multiple offers?
• Do you present offers yourself?

As a seller, you will need to know:

• Specifically, how will you sell my home?
• Why or why not is a direct mail campaign appropriate?
• Where and how often do you advertise?
• Will you show me a sample flyer?
• How do you market online?

4. Will You Please Provide References?

Everybody has references. Even new agents have references from previous employers.

• Ask to see references.
• Ask if any of the individuals providing references are related to the agent.
• Ask if you can call the references with additional questions.

5. What Are the Top Three Things That Separate You From Your Competition?

A good agent won't hesitate to answer this question and will be ready to fire off why she is best suited for the job. Everyone has their own standards, but most consumers say they arelooking for agents who say they are:

• Honest and trustworthy
• Assertive
• Excellent negotiators
• Available by phone or e-mail
• Good communicators
• Friendly
• Analytical
• Able to maintain a good sense of humor under trying circumstances

6. May I Review Documents Beforehand That I Will Be Asked to Sign?

A sign of a good real estate agent is a professional who makes forms available to you for preview before you are required to sign them. If at all possible, ask for these documents upfront.

As a buyer, ask for copies of the following:

• Buyer's Broker Agreement (is it exclusive or non-exclusive?)
• Agency Disclosures
• Purchase Agreement
• Buyer Disclosures

As a seller, ask to see:

• Agency Disclosure
• Listing Agreement
• Seller Disclosures

7. How Will You Help Me Find Other Professionals?

Let the real estate agent explain to you who she works with and why she chooses these professionals. Your agent should be able to supply you with a written list of referring vendors such as mortgage brokers, home inspectors and title companies. Ask for an explanation if you see the term "affiliated" because it could mean that the agent and her broker are receiving compensation from one or all of vendors, and you could be paying a premium for the service.

8. How Much Do You Charge?

Don't ask if the fee is negotiable. All real estate fees are negotiable. Typically, real estate agents charge a percentage, from 1% to 4% to represent one side of a transaction: a seller or a buyer. A listing agent may charge, for example, 3.5% for herself and another 3.5% for the buyer's agent, for a total of 7%.

10. What Haven't I Asked You That I Need to Know?9. What Kind of Guarantee Do You Offer?

If you sign a listing or buying agreement with the agent and later find that you are unhappy with the arrangement, will the agent let you cancel the agreement? Will the agent stand behind her service to you? What is her company's policy about canceled agreements? Has anybody ever canceled an agreement with her before?

Pay close attention to how the real estate agent answers this question because there is always something you need to know, always. You want an agent to take her time with you -- to make sure you feel comfortable and secure with her knowledge and experience. She should know how to listen and how to counsel you, how to ask the right questions to find out what she needs to know to better serve you.

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