I found an interesting article on CNN.com about what contractors are really saying when they tell you things like, “I need money upfront for materials.” and “We can skip the city permit for a small job.”

I wrote an article a couple of years ago in fun about what real estate agents mean when they say, “Cozy house” (small) or “Gardeners delight” (lots of yard work), but this article was much more serious.  Listen to the words that are spoken to you if you have a professional contractor in your home.  Ask for referrals to make sure they are on the up-and-up, check with the Better Business Bureau, and check with Angie’s List to see what people are saying who have worked with them.

Angie’s List has an older article about what a contractor license means, including that a licensed professional will have insurance,

Liability insurance covers property damage and bodily injury caused by that contractor’s work. Homeowners should also make certain the contractor’s insurance policy includes workers’ compensation, which covers injuries the contractor’s employees may suffer while on the job…

Ask for proof of insurance and that the professional is bonded.  If they won’t show you, go to someone else.

And for the record, when a contractor asks to be paid in advance for materials they really need it to pay off materials for a previous job, according to the article on CNN Money.com.

Have a great 4th of July weekend!

The value of a swimming pool is priceless during the hot summer months when the kids are home from school bored, after you’ve mowed the lawn and are covered with sweat, or when the family comes for a two-week vacation visit.

The value of a swimming pool - as told by pool salesmen - is about $15,000 to $50,000.

The value of a swimming pool when you’re spending hours cleaning it, spending dollars on the chemicals, or spending money on liability insurance is a whole different story.  The value of a swimming pool when you’re selling your home is also another story.

Kitchen and bathroom makeovers add the most to the resale value of a home.  A swimming pool is may be nice to lounge around in the summer, but for resale it’s a perk that just doesn’t always add up.  I’ve looked at homes with buyers who sometimes love them, sometimes hate them.  One buyer mentally calculated the cost of filling in the pool before deciding to NOT buy the house.  Another fell for the salt-water pool immediately and made an offer on the house.

Depending on your location, adding a swimming pool could be one of the worst investments a homeowner can make.  Massachusetts agent Bill Gassett says,

Swimming pools often times can actually end up being a detriment when selling a home. There are many buyers that flat out will not buy a home that has one no matter how beautiful it is.  Are there times where a buyer is specifically looking for a pool? Sure…if you are lucky you may find a buyer that will pay a little more for a home with a pool. Just don’t expect that it will be anywhere close to the money you have sunk into the ground.

If you have a pool, enjoy it now.  You may not so much when it comes time to sell!

Photo by my Mom. The kid on the right? The cute one? That’s me. 

I have shown numerous homes where the seller promises a carpet allowance at the closing.  When they do this, they acknowledge even before a buyer walks in the door that the flooring is bad and that’s not a good first impression to make!

When the carpet is frayed at the thresholds, if it has stains, if it’s worn out, if it’s an ugly color… go ahead and replace it if you can rather than promising an allowance.  Buyers fear the carpet allowance won’t be enough to replace the entire flooring (including costs of moving furniture, disposing of the old carpet pad and rug, the nail strips, etc.) so they are less likely to consider viewing the home much less making an offer!

There are carpet stores that offer six months same as cash for sellers who don’t have the money to pay up front.  There are builder-grade carpets that won’t cost as much as what the rest of us prefer, but they wouldn’t necessarily be the buyer’s choice of carpet.  And that’s the exact rationale so many sellers use, “The buyers should be able to pick their own carpet.”

While that’s true, you have to get them in the house to begin with and that’s very difficult if there are pet stains present, spilled koolaid from the kiddos, or - again - frayed edges.

Don’t wait.  Replace the flooring if you can BEFORE the home goes on the market.  It will be a huge help in reducing the number of days the home sits on the real estate market.

Since the great flooding in Nashville and surrounding areas a little more than a month ago, I’ve spent quite a bit of time at the house of one of my friends helping to move furniture and now - finally - painting!

My friend’s husband had removed the old drywall and molded insulation, put in new insulation and replaced the drywall, but when it came down to taping, mudding, sanding, mudding, sanding, etc. the time factor grew to be too huge.  It took him a full three weeks to figure out that drywall repair is a gigantic pain in the rear.  He finally broke down and hired his neighbor’s family who used to be construction helpers before the housing marked almost completely died in 2007.

What have we learned?  Drywall repair is a pain.  What else have we learned?  From spending yesterday  CLEANING the drywall dust before we could paint, cleaning drywall dust is also a pain!  But it’s all worth it. Her home will be better than new and I’ll be so glad when they can move back in.

Shakadoo queen of awesome Kathy H. linked to this article on her Facebook account about how a seller can increase the property value.  It’s the little things that will help and most can be easily done.  For example,

Cosmetics are important.

• Fresh paint will always add more value than it costs.
• Clean or new carpet/flooring adds more value than it costs.
• Landscaping adds more value than it costs. At the very minimum, make the entrance area neat.
• If you can, add some colorful flowers and new sod.

To paint? It costs about $20 per gallon of paint, plus brushes and tape. You can likely paint the entire house for less than $300 if you do it yourself. A carpet clean can rent for about $75 p/weekend. Landscaping may be done for about $100. We’re looking at less than $500 to freshen up the entire house and that’s if you’re not too frugal! Make the investment if you want to impress!

When I’m working with first-time buyers, I love reading the words “All appliances remain!” especially when they’re coming from apartments and have nothing but milk crates and mattresses with which to decorate.  It does take time to build up an income to replace appliances and to take on other house projects, so appliances remaining are a huge selling point.

Sometimes, however, the appliances that remain are old.  Functioning, yes.  Attractive, no.  The good news is you can make these appliances look a lot nicer with a little ingenuity and elbow grease.  Apartment Therapy offers some tips on how.  For example,

Many appliances can be fitted and updated by changing their fronts. A great option for renters who are stuck with built in appliances like dishwashers. Contact the manufacturer of the appliance who can provide you with a listing of face panels that will fit existing appliances, and face panels that will require customization.

By the way, my friend who just moved hasn’t yet brought over her fancy new washer and dryer, so she’s been using the landlord’s old-fashioned one that has the rotator.  She said the old one works MUCH BETTER!

Photo by Lara604 via flickr creative commons.

I like the door handle the best.  Have a great WARM SUNNY weekend!

I’ve been following the experiences of Dan STEVE over at Brip Blap as he’s moved his family to Florida for the nice weather.  He posed an interesting question about a couple of homes that are under consideration for buying. One has been completely renovated … beautiful on the inside, but a little farther from the ocean. The other one is a hot mess with pet stains and other grossness to consider.

Which will he pick?  It comes down to condition or location.  This is where I apply the 80:10:10 rule.  It’s cliche, but still works for people hoping to buy.  If you love 80 percent of the home, hate 10 percent but can CHANGE it, and don’t like 10 percent but can LIVE WITH IT then it’s probably a home that you should consider.

Depending on how handy I am, I’d probably buy the home with the great location.  He says,

The second is in a nicer neighborhood, with a huge screened pool and so close to the ocean you can hears waves from beyond the tree – but the house is a mess.

I can clean.  I can put in new carpet.  I can paint.  I’d buy the second one where I could almost pay cash and listen to the waves.

Let’s have a show of hands here… you pull up in front of a home and see weeds in the flower bed, spider webs on the porch, and dog slobber all over the front storm door.  You walk inside - expecting the smell of wet dog fur - and find a cluttered living room with nail holes in the wall.  As you enter the kitchen, the counter is covered with cannisters, a knife block, toaster, blender, paper towels, coffee maker, and a salt & pepper shaker.  On top of the fridge are a line of cereal boxes: Fruit Loops, Shredded Wheat, Special K, Count Chocula, and Cheerios.

The shower curtain is drawn in the bathroom and the sink has a toothbrush, toothpaste, soap, hand lotion, astringent, cotton balls, Qtips, and floss.

In the bedroom you find three dressers, clothes draped over a chair, 29 pictures on the wall of family members, one Holy picture, and a pile of magazine and books on the side table.

I wouldn’t want to buy this house, would you?  Clearly the home has been lived in - and that’s okay.  But I do not want to live in someone else’s memories, so to sell you need to provide a CLEAN, NEAT slate.

Carol-Jean Dixon of Latter & Blum Realtors in New Orleans wrote a great post about staging a home for fun and profit. My favorite part,

Consider removing (gasp!) about 30% of your furniture. This will visually open up your rooms and allow for more space, a key component of every buyer, young or old. Everyone is looking for more space when they buy.

Read the rest of Carol-Jean’s post… she’s got some great ideas that we can all benefit from!

I’m going to hurry and write about this phenomenal faux finish that my pal Ginger pointed out on her site - Ginger Snaps - before Ivy posts it on ShakHammer!  If I was to go on a listing appointment and saw leather walls in a bathroom or bedroom, especially well-done, I’d be elated!  Ginger takes us through the process step-by-step and even posts pictures!

As I said before, it’s a tedious process, so you gotta have somebody to laugh with and good tunes.  I highly recommend some good Bee Gees and 70s music.  Definitely music with a beat.  Jan about kilt me with the ballads at one point…but I forgave her because she made me laugh so hard.  I’m telling you we were like Lucy and Ethel trying to turn those ladders and step stools around without falling over each other.  It was great fun!

Go read how to do it and send me your pics!