3 Home Improvements You Can Make With $5,000

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Courtesy of White Buffalo Styling Co.via Zillow

By Lindsay Jackman

For a renovation budget of $5,000, you can add some serious functional upgrades to your home. Kitchens and bathrooms are smart places to focus your dollars. They are hardworking rooms that you’ll enjoy using, but also among the first rooms a future buyer will want to see.

Another practical way to increase the function of your house is by adding living space. While you can’t do an actual home addition for $5,000, you can create a functional outdoor living space that increases your usable square footage.

Here’s how to complete each of these three renovation projects on a $5,000 budget. (If you have a little more to spend, consider what you can do for $10,000.)

Upgrading to Custom Kitchen Cabinets

​Creating a more functional and beautiful kitchen is a win-win, and one way to achieve that goal is by upgrading your cabinetry. For this price-point, you could design cabinets that work for you, the way you use your kitchen, and your kitchen layout. Custom cabinets allow you to maximize storage for the space that you have.

Installing a Tile Shower

Nothing says luxury in a master bath like a standing tiled shower with glass door. For $5,000, you could remove the standard bath insert and surround and put in a custom tiled shower. For additional function, tile in a corner bench and soap shelf. You’ll feel like you’re visiting a luxurious resort in the comfort of your own home.

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Courtesy of White Buffalo Styling Co.via Zillow

Create an Outdoor Living Area

Boosting square footage is a great idea for you and future buyers, but additions are expensive. Adding a fabulous outdoor patio can drastically increase your usable living space for a much smaller price tag.

The options for patio material include chipped granite, pavers or flagstone. Adding mulch in beds surrounding the patio will really make a visual statement, and keep the patio from looking like it’s floating in your backyard.

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Courtesy of White Buffalo Styling Co.via Zillow

Build a pergola or covered seating area to create more visual appeal and boost the space’s usability. You can hang lights or fans overhead in the structure — and if it’s covered, you’ll have a spot to escape the weather.

While this upgrade benefits you, it’s also a big selling feature. Most homes don’t have an attractive outdoor living area, and adding this amenity will make buyers flock to your listing.

Any of these three updates will make you love your home in a whole new way. You can’t go wrong with improving kitchen storage, upgrading your current bathroom, or increasing your potential living space by taking to the outdoors.

See more home design inspiration.

 

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Sweltering? Here are 10 Hacks for Living Without AC

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By Michelle Hainer

No AC? No problem! With these hacks, you can keep cool this summer — and keep your electric bill down.

When the temperature creeps past 90 degrees on a hot summer day, it’s natural to regret the decision to rent a place without air conditioning or own a home without AC installed. But don’t despair. With these tips for living without an air conditioner, you can stave off the sweltering heat without paying a sky-high utility bill (or putting in a noisy, energy-sucking window unit).

1. Change the rotation on your ceiling fan to counterclockwise.

It’s easier than you think to make this fix (usually your fan will have a little switch on the motor housing that alters its rotation), and doing so will allow the blades to circulate faster, creating a cooler breeze. If you have box fans, turn them around so that they blow hot air out the window.

2. Don’t let the light in.

Keeping shades, curtains, or blinds closed can lower the temperature inside your house by up to 20 degrees.

3. Channel your inner MacGyver.

Create a misting effect by placing a metal mixing bowl full of ice in front of a fan. Tilt the bowl so that the fan blows directly onto the ice. When the air hits the cubes, it will release a cool, misty breeze that chills the whole room.

4. Don’t close yourself off.

By shutting doors, that is. Keep inside doors open throughout the day, which allows the cool air to circulate throughout your house.

5. Revamp your bedding.

Pack away the flannel sheets (duh) and opt for percale instead, which is more breathable. Mist your sheets with cool water before bedding down for the night (or stick them in the freezer for a few minutes), and invest in a buckwheat pillow, which won’t trap heat the way traditional pillows do.

6. And then sleep solo.

Your partner may balk, until he or she realizes how much body heat cuddling creates.

7. Hit up your hot water bottle.

Only this time, stick it in the freezer first and then position it near your feet, which contain many pulse points. If you don’t have a hot water bottle, dunk your feet in ice water before turning in.

8. Unplug.

Appliances that are plugged in radiate heat — even when they’re not in use. So unplug what you can. Now is also the time to embrace your grill; turning on the oven on a 100-degree day is only going to make things hotter. But you knew that.

9. Turn off the lights.

Even the most energy-efficient light bulbs give off some heat, so make do with natural light on super-hot days. But still swap out incandescent bulbs for CFLs, which will also lower your energy bill.

10. Lie low.

Literally. Hot air rises, so putting your mattress on the floor can help you stay cool while you slumber. Or if you’re feeling outdoorsy but like sleeping with a roof over your head, rig up an indoor hammock, which will increase airflow. Bonus: It may even lull you to sleep, which will make you forget how hot you are.

 

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6 Clever New Uses for an Old Pool

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By Jill Russell

Swimming pools have many virtues, especially during scorching summers. But they can easily become eyesores — not to mention money pits — especially if they leak or have other functional issues.

Instead of going through the costly (and sometimes unsuccessful) process of trying to bring an old swimming pool up to date, why not turn it into an entirely new, seriously cool feature that sets your home apart?

From a detached, lower-level studio space to a fully realized aquaponic farm, here are six smart ideas (some DIY projects and some that require a little professional help) to convert your old swimming pool into something useful, beautiful, or both.

The Sunken Patio

Though part of a rooftop lounge in Midtown Manhattan, this former pool retrofitted as a patio by Future Green Studio holds a lesson for homeowners — work with the site rather than against it. The final dining area maintains the pool steps, depth indicators, handrails, and even a retooled version of the pool lights, telling the story of the space’s origins beautifully.

The Practical Deck

A simple but elegant solution for an unwanted pool? Drain it and build a deck over the top. Work with a landscape pro to design a deck that blends perfectly with the original pool’s shape and structure. Not only will it add valuable entertaining square footage to the backyard, but it will also boost your home’s value over time.

The Detached Studio

This gorgeous studio by Walk Interior Architecture & Design becomes even more awe-inspiring when you realize it’s housed in an old, neglected in-ground pool. The finished space feels at once industrial, modern, and airy, and the solar panel-topped A-frame roof is both functional (preventing water from seeping in) and beautiful.

The Peaceful Pond

If you’re imagining spending lazy afternoons surrounded by nature instead of cleaning the pool, think about transforming your pool into a pond. It’s the perfect way to invite more wildlife into your yard, and it just makes sense. In the spirit of repurposing, you may even be able to get away with converting the original sand filter into a koi pond filter.

The Water-Wise Garden

A Southern California couple converted their little-used pool into a rainwater harvesting system, as noted by the Los Angeles Times. Now in the pool’s place the couple has a stream, small waterfall, and some 100 plants, all fed with rain collected from the roof and stored in underground, recycled-plastic tanks in a system designed by the firm EnviroscapeLA. The resulting garden is luscious and inviting while making the most of the region’s scant rainfall.

The Food-Producing Farm

And then there’s the family who built a food-producing greenhouse, known as the Garden Pool, in the pit of their former swimming pool. The finished ecosystem includes solar panels and a greenhouse, and produces such varied foods as tilapia (through an aquaponics system), fresh fruits, vegetables and poultry.

While you might not be ready to go full-scale eco-farm, the project proves that an old pool site might be just the spot to pull off the herb-and-veggie garden of your dreams.

 

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5 Ways to Handle the Eyesore Next Door Before You Sell

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By Laura Agadoni

You’re almost ready to put your house on the market when you realize it: The neighborhood eyesore is going to pose a problem.

Sure, we know some people might view any attempts to hide an eyesore from view as being underhanded, sneaky, and designed to fool unsuspecting buyers. They might envision unscrupulous sellers and agents who keep their fingers crossed, just hoping no one spots the eyesore next door.

If you feel that way, by all means, point out the junkyard behind you that’s worthy of “American Pickers,” the yard next door that looks more like a prairie than a lawn, or the bail bonds sign spray-painted on the wall across the street.

For the rest of us, here are five ways to resolve these eyesore neighbor issues so would-be buyers won’t be scared off. And who knows? Maybe if you tackle these unsavory sights, you’ll decide not to sell your home after all.

1. Ask your neighbor to fix the problem.

This solution can be tricky. There’s really no easy way to tell someone that his or her house is the neighborhood eyesore. But there are some methods that might help.

“Just writing a friendly note (dropped off with a bottle of wine or another small gift) can sometimes do the trick,” says Ross Anthony, a San Diego real estate agent.

It also can’t hurt to mention to your neighbor that the more your home sells for, the more his or her home will be worth.

2. Be neighborly.

You know how people can become desensitized to certain smells? (“How did you know I had a cat?”) Well, people can become so accustomed to the condition of their house that they don’t notice when it looks run-down.

This sometimes happens with elderly homeowners: Either they haven’t realized the condition of their home or they simply can’t manage the upkeep. You might think a condo or townhouse situation might better suit your overwhelmed neighbor, but steer clear of that suggestion.

Instead, offer to spruce up the house yourself. “If it is an elderly person, I offer to help,” says Sarah Bentley Pearson, an Atlanta real estate agent.

But it’s not just elderly neighbors with houses that could benefit from a little TLC — just think of all the work you did to get your house in selling shape.

Alexander Ruggie of 911 Restoration in Los Angeles says that if the next-door neighbor has a poor paint job, a wobbly fence, or a caved-in garage, there’s no reason you can’t offer to help fix the problem. “Most people would be surprised how much they can convince people to do when they offer to help do it.”

3. Notify your HOA.

If you live in a community with a homeowners association (HOA), let it know about the unkempt house near you. One of the main reasons HOAs exist is to prevent homes in the neighborhood from becoming eyesores that could drive down the value of other homes.

Your HOA might send a letter to the offending neighbor warning him or her to fix the problem or face fines. Or the HOA might take care of the problem and then bill the homeowner.

4. Call the city.

If your neighbor won’t mow his or her lawn, get rid of the junk outside, or let you help tidy up, you can always call your local government.

“If there is a really bad problem, like the grass is a foot tall and there are junk cars on the front lawn, your neighbors are probably in violation of local codes and can be forced to clean up,” says John Z. Wetmore, producer of the TV show “Perils for Pedestrians.”

Do this well in advance of putting your house on the market. The city could give your neighbor up to 90 days to meet housing codes.

Wetmore also suggests that you “walk around the block and pick up any litter along the public streets and sidewalks.”

If the house is a bank-owned foreclosure, find out which bank owns the property by checking county title records. Insist the bank maintain the property.

5. Plant view-blocking trees or install a fence.

It might be worth the investment to block an unsavory view. If you plant trees, choose ones that are at least six feet tall to give you an immediate sense of privacy. Privacy fences should also be six feet high.

If your neighbors are noisy, putting in a small water feature can drown out the racket.

“You only have one first impression,” says Anthony, the San Diego real estate agent. “You want potential buyers to fall in love with your home before writing it off due to an unkempt neighboring property.”

 

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3 DIY Projects to Try and 3 Times to Call for a Pro’s Help

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ShutterstockInterior painting is a project even an enthusiastic novice can handle, though careful prep will yield the best results.

By Abby Hayes

Nearly one-third of Americans are planning a home renovation this year, according to a Liberty Mutual Insurance survey of 2,000 adults. Of those, 7 in 10 plan to do at least some of the work themselves. DIYing it can be a great way to save money, but you have to be careful with the projects you choose to tackle on your own.

Projects that look enticing and easy on Pinterest can easily go awry if you’re an inexperienced DIYer. Even experienced DIYers can have trouble handling some of the more difficult home improvement projects.

So which projects should you tackle to increase your home’s value, and which ones should you hire out to a professional? Master carpenter Chip Wade of “Ellen’s Design Challenge” and HGTV’s “Elbow Room” weighs in.

To DIY

Let’s start with the hopeful side of this equation. You can give your home a boost this summer and save money by doing it yourself. You just have to be careful which projects you choose. Chip’s top three projects for homeowners to DIY include landscaping, seating and interior painting.

1. Landscaping. This can be a huge project, but you can use a few simple tricks to add some curb appeal and comfort to your home. “A tip I always give is for homeowners or renters to start by removing dead plants, or trimming unhealthy plants that may bloom later on in the season,” Wade says. This simple trick can make your home appear more pulled-together. Then, add splashes of color with easy-care perennials in a front garden bed, or place potted annuals on the porch.

2. Seating. If you’re hankering to start hammering something, building multipurpose outdoor furniture is a good place to begin. Boxy, bench-style furniture is a great option for cutting your teeth on carpentry. It’s fairly easy to build, and there are plenty of tutorials online. This easy, versatile seating can instantly update a front porch or back deck, and give you a more personable outdoor space.

3. Painting. The easiest of these projects is probably interior painting, and it can make a huge difference. The right paint can make a space look larger and more finished. Or you can simply update the look of your home by opting for a trendy color, like these in the Benjamin Moore Color Trends 2015 palette.

Not to DIY

When it comes to home renovation, Wade says, some projects are simply best left to the professionals. Certain projects, of course, are downright dangerous. For instance, you don’t want to go around messing with electrical wiring if you don’t know what you’re doing. The top three popular projects Wade cautions homeowners against tackling alone include outdoor pathways, retaining walls and large landscaping.

1. Outdoor pathways. This can seem like an easy, cheap DIY project. Pinterest, after all, is full of cute ideas for outdoor walkways. However, Wade notes, homeowners often skimp on costs by using less expensive materials, which crack in a season and need to be replaced. Plus, ensuring an absolutely level underlayment is essential. Without proper tools and knowledge to level the walkway, even the best materials will crack.

2. Retaining walls. These are similarly difficult to install properly, though they can look effortless. Most homeowners don’t understand the intricacies of properly installing a wall that will last for years to come. Engineering is essential, especially for walls over 2 feet high.

3. Large landscaping. The last project to steer clear of may seem contradictory. Wade did say that landscaping is a great DIY project, right? However, when it comes to planting medium-to-large sized trees, it’s a whole different story. These trees and shrubs need particular care to help them take root. You don’t want to spend hundreds on an ornamental tree only to have it die within a season.

If you decide to hire professionals for some must-do projects this summer, Wade gives some good advice: “A great way to find a professional is to ask friends or neighbors who they have used for their renovations or home projects. Additionally, if you have one trusted professional, he or she may be able to recommend a skilled worker they have worked with in the past.”

DIY projects can be a great way to save on summer upgrades to your home. But you won’t save a dime if you waste money on a project that’s better left to the pros,

 

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Add a Dash of Style and Curb Appeal With Just a Little Cash

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By Abby Hayes

Looking to sell your home? Or maybe you just want to feel proud of the place as you swing into the driveway each evening?

Either way, you can add some serious curb appeal without making a huge financial investment. For less than $50, you can make your home more attractive with these eight DIY projects.

1. Paint the front door.

If your front door is a boring gray or brown — or blends into the facade of your home — it’s time to glam it up. Bright blue and red are both great options for a front door. Keep it classy, but choose a color that will coordinate with — and still stand out against — your home’s facade.

Cost: $25 for a gallon of paint, plus a few hours of your time.

2. Upgrade your house numbers.

House numbers are a practical necessity, but they can also be a statement. You can pick up large metal house numbers for around $5 each. Or you can buy wooden numbers from a craft store and stain or paint them yourself. (Maybe paint them to match that newly painted front door?)

Cost: $20 or less.

3. Jazz up the mailbox.

If you have a mailbox attached to the front of your house, it’s another great place to add some color. Those who lean more traditional may prefer to simply replace the mailbox with a new one. But if you’d like to add even more color to the front of your home, you can spray paint the mounted mailbox a fun color. Add your new house numbers to it in a contrasting color for eye-catching appeal.

Cost: Around $20 to $30 for a new mailbox and $5 for a can of spray paint.

4. Add porch furniture.

Does your home have a nice front porch? Adding a porch swing or rocking chairs can make your home more appealing and more functional. Contrary to what you might think it will cost, this can be done for less than $50. You just have to thrift shop for the furniture, and you might have to do a bit of upcycling.

Cost: $20 to $40 for furniture, and $10 to $20 for a can of paint to touch it up.

5. Paint the porch rails and ceiling.

This is the last painting project on the list, but it’s an important one. Peeling, worn out porch rails are not good for curb appeal. Stripping and repainting them can be an extensive project, but it will be worth your time. While you’re at it, you can repaint any peeling wooden trim around your front door and windows.

Cost: $30 and a weekend’s worth of time.

6. Install an outdoor light.

If you have a bit of electrical knowledge, you can easily replace a light fixture on your porch ceiling or add a sconce beside the front door. Don’t feel comfortable with electrical projects? Try adding some late-night curb appeal with wire-free solar fixtures.

Cost: $20 to $50 depending on the fixtures you use.

7. Decorate with potted plants.

Green plants and healthy flowers are one of the easiest ways to make your home more appealing. If you don’t have much of a green thumb, you might hesitate to landscape in the front. But you can just as easily add appeal with potted plants. Place large pots near the steps or front door, or hang plants from the roof of the porch to draw the eye up.

Ask your local nursery which plants are easiest to grow in your local area. Make this project even more affordable by spray-painting cheap terra cotta pots or buying nicer pots secondhand.

Cost: $20 to $50, plus time devoted to watering and upkeep of the plants.

8. Plant flower beds.

Ready to really go green on the curb? Dig a new flower bed or two in front of your home. You can make this project super affordable if you know friends or family members with perennials ready to be divided. Most perennials, including irises, bulbs, astilbe, day lilies and easy-care hostas, need to be divided. This is a great way to get free plants!

Keep in mind, most plants divide best in early spring or late fall. And remember, it takes perennial beds a couple years to come into their full glory. Be patient, and fill in with cheap by-the-flat annuals while you wait.

Cost: Possibly free, or a few dollars for compost or other organic soil amendments.

There are plenty of other things you can do to improve curb appeal — consider a new fence or gate, for example. But these eight ideas will give you plenty of bang for your buck.

 

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3 Strategies for a Quick Home Sale

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By Brendon DeSimone

Most sellers have a specific goal when it comes to their transaction: a quick sale and top dollar. But sometimes fast action doesn’t align with achieving the highest and best value.

There are multiple schools of thought on this subject and the perspective varies not only with where you are in the country, but also by price point, neighborhood and even down to the block. When it comes to pricing and the search for a quick sale, it’s always best to get help from a local agent.

Here are some strategies you can use to get offers fast.

1. The Theory of Under-Pricing

Under-pricing means that you go to market with a list price that is just below what the comparable sales in your area support.

You can’t pinpoint the exact market value of a home until it sells. But before you list, there’s always a range. If you price your house at or below the bottom of the value range, you are under-pricing the home.

In many West Coast markets this strategy will work effectively. Take this San Francisco home, for example: priced at $1.1 million, it received 10 offers and sold for $1.425 million in less than a week.

Risk alert: If you price your home low, this plan could backfire — big time. If you don’t know your market and this strategy doesn’t work, you’d better be ready to accept that list price.

2. Staging and Market Presentation

Well-priced homes that also show well sell quickly. If you want a quick sale, you need to invest some serious time in getting the house ready.

Prepping the home means taking out large pieces of furniture and personal items, painting, replacing carpets, finishing floors and even doing some minor renovations.

Enlist the help of a home stager and take their advice, and you can be assured a quicker sale. The investment of time and money will pay itself back.

Risk alert: If you go overboard on staging or you don’t spend the time and money in the right places, it could be a waste. Don’t make staging decisions in a vacuum. Focus on kitchens and bathrooms, de-cluttering and cleaning. When in doubt, ask for help.

3. Disclose and Inspect Upfront

In most of the country, sellers complete real estate transfer disclosures and present them to the buyer, and the buyer simultaneously inspects the home — all once they are in escrow.

What often happens is that buyers discover things they don’t like, or uncover issues. When this happens, they may lose confidence in the home or the deal.

By presenting disclosures upfront, and even providing buyers with a copy of a recent inspection report, you can help them get more comfortable with the home. If you price the home to account for whatever work needs to be completed or for disclosure red flags, buyers will feel more confident, and may make an offer much more quickly.

Risk alert: There is little risk in disclosing and inspecting. If you try to hide something and the buyer discovers it later, you can expect the deal to fall apart — or maybe even face a lawsuit down the road.

Selling your home is a major undertaking. Spend time strategizing and preparing the home for the market. Pricing, staging, presentation and disclosure go hand in hand. If you want a quick sale, price it right, present it in its best possible light, and go out of your way to make buyers feel comfortable with all aspects of the home.

 

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House Hunting for Two: How to Find Your Happy Home

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By Vanessa Nix Anthony

While it can be tough enough to find just the right spot to rest your head at night on your own, it can be even more difficult when searching with a partner. Choosing where you’ll live, whether you’re renting or buying a home, is one of the most important and personal decisions you’ll ever make.

It’s the definition of complicated: the extra weight of the long-term commitment that sharing a living space brings. That means good communication is key.

“Moving in together is a huge commitment, perhaps more than a marriage itself, because it’s a substantial financial commitment to each other,” author and counselor Kerry Cohen says. “Any issues each person has around commitment, both in general and with each other, are surely going to come up.”

She advises couples to be prepared when looking for a place together.

“There will likely be arguing or maybe even hurt feelings,” Cohen says. “A lot of who a person is comes to the surface when buying a house — how detail oriented, how controlling, aesthetics, etc.”

Just because the potential is there for emotions to run high doesn’t mean they have to. Not if you take the time to do a little home-shopping prep. Here are a few do’s and don’ts, straight from the experts.

DO: Expect Feelings to Be on the Surface

Every expert we talked to brought up how emotional the home-selection process can be. And that makes sense, especially for buyers. C’mon: we’re talking about one of the biggest investments you’ll ever make, in both time and money. Things are guaranteed to get heated.

Setting clear expectations and communicating clearly and kindly throughout the process will go a long way toward defusing volatile emotions.

DO: Communicate Openly and Often

Joan Rogers, a principal broker at the Portland agency Windermere Stellar in Oregon, recommends that clients identify their old emotional pulls before starting the home search. “As with most other emotional processes, people carry all kinds of baggage into buying a home.” Use collaborative tools such as Trulia’s new boards to share properties that you find in real time.

DO: Understand What You Both Want in a Home and Why

Amber Salvador, a clinical psychologist at Sharp Mesa Vista Hospital in San Diego, suggests both parties make a list of their top three to five must-haves, then compare their lists and prioritize for budget and neighborhood before heading out on the search.

When searching for homes, make sure your list reflects who you are now as well as who you think you’ll be in five years, rather than clinging to old ideas of who you once were. The key component to success in agreeing on living arrangements is to make sure you truly understand why you want what you think you want.

DO: Be Willing to Compromise

“Be flexible. It’s important to be collaborative and work together versus against one another,” offers Salvador.

As Mick Jagger sings, “You can’t always get what you want, but if you try sometimes,” with a little compromise and understanding, “you might find, you get what you need.”

DON’T: Be Impulsive

“Impulsive decisions are typically made based on emotions,” says Salvador. “A major financial decision such as buying a home requires thought, preparation, and planning to carefully decide the most appropriate home given the couple’s budget, lifestyle, and needs.”

DON’T: Spend More Than Your Budget

The heightened emotions during the home search can also persuade you to spend more money than your budget may be able to bear. This can lead to long-term consequences in the partnership. Salvador says it’s essential that you choose a new home together based on rational decision making instead of emotional desires.

DON’T: Manipulate Your Partner to Get What You Want

Your home should be a place where you both feel comfortable. Manipulating, lying, or bullying your partner to get more of what you want in a home can lead to resentments down the road when money is needed for repairs or upgrades to features that weren’t jointly agreed upon.

 

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How to Shop for a Mortgage Online

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By Gerri Detweiler

Ron Milman refinanced his mortgage in early 2015. A resident of an Atlanta suburb, Milman says he saved money, closed quickly, and except for one quick trip to a local bank to meet a local attorney to finalize paperwork, he never left his home office. Working strictly online and by phone, he says getting his mortgage online was a painless process for him. “I really don’t like going into an office,” he says. “It’s so much wasted time and effort.”

If you’re in the market for a home loan, whether for a purchase or refinance, you may have toyed with the idea of using an online lender. But you may be wondering what getting a mortgage online is like. How is the process different?

“The Internet provides the most convenient way for consumers to compare mortgage service offerings; as a result, a growing portion of mortgage originations are anticipated to be completed online in the years to come,” says Stephen Hoopes, an analyst with research firm IBISWorld.

It’s important to first understand that shopping for a mortgage online can be different than getting a mortgage online. In the first scenario, you may be using a service that doesn’t actually make loans but helps connect you to lenders. In the latter case, you actually apply for and complete the process largely online.

With that in mind, here are some of the differences when you get an online mortgage:

The Internet Holds Answers

Aren’t sure about a mortgage term? Need help deciding which type of loan to get, or whether to go for a longer-term loan or a shorter one? You can take a break to research it before you decide without giving a loan officer a blank stare or feeling like you are being put on the spot. Not that you can’t do that before you shop for a mortgage anyway, but apparently quite a few consumers don’t fully educate themselves on all their options when getting the largest loan of their lives.

A recent report by the Consumer Financial Protection Bureau found that almost half of borrowers seriously consider only a single lender or broker before deciding where to apply. The CFPB also says that most borrowers rely heavily on those who have a financial stake in the transaction, and less than half get a lot of their information from outside sources such as websites, financial and housing counselors, or friends, relatives or co-workers.

Of course, researching online can be a double-edged sword. You need to make sure you are getting information from reliable sources, such as independent educational websites. The CFPB is one source of free education through its Owning a Home initiative.

Do It on Your Own Time

Need to dig up a bank statement for your lender? Want to check on the status of your appraisal? With an online lender you can usually take care of those things whenever it’s convenient for you. Information about the status of your loan will be available to view online, and if you have a question, employees may be available to review your loan file and answer questions outside of the standard banking hours. “You can see (your information) 24/7 and you are not locked into business hours getting a hold of your loan officer or processor,” says Bob Walters, chief economist at Quicken Loans.

Whatever Works

While virtually the entire process can take place online, you aren’t tied to your computer. If you have to provide documentation and don’t have a fax machine or scanner, you should be able to overnight bank statements, tax returns or other documents to the lender. Certain documents will have to be notarized, and the notary will come to you or meet you in a convenient location, such as a local coffee shop. Most closings for purchase transactions take place at a title company, while closings for refinance transactions can take place anywhere you choose.

Some Things Never Change

Of course, whether you decide to work with a local lender or an online mortgage company, certain things don’t change. You will want to get your free annual credit reports to make sure they are accurate. Do this at least six weeks before you plan to apply, or earlier if possible, to give yourself time to correct mistakes. In addition, getting a free credit score will help you understand whether your credit is excellent, fair or poor. (You can get two of your credit scores for free on Credit.com.) While you are at it, if you hope to buy a home, it’s a good idea to get pre-approved for a mortgage.

And be prepared to be 100% truthful and supply documentation your loan officer may need — including copies of bank statements, tax returns, pay stubs, etc. Just because you scan documents doesn’t mean you won’t have paperwork! But you may save a few trees — and save yourself a few headaches — this way.

It goes without saying that you should make sure you are dealing with a reputable lender with a secure website. No one should be emailing a copy of your tax return or credit report back and forth to you. The last thing you want is for this kind of sensitive information to fall into the hands of a scammer.

And while rates are very important, Scott Sheldon, a loan officer with Sonoma County Mortgages and a Credit.com contributor, warns that you may get what you pay for. “Internet lenders are priced incredibly thin. Their pricing and rates can be fantastic, but they operate solely off of volume.”

He is concerned that going this route can be especially risky for homebuyers with unique circumstances or a less than “squeaky clean” file. What happens to your home purchase if the “underwriter denies your file because it wasn’t packaged properly upfront by the loan officer whose is also working on 50 other loans simultaneously?” he asks.

For Milman, at least, the process that started with a phone call in December resulted in a closed loan by mid-January. “It makes a whole lot of sense to do this online,” he says.

 

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How to Handle Living in a Community With a HOA

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apostol_8/GettyCondos and many newer communities require paying dues and following the Homeowners Association’s rules.

By Teresa Mears

If you buy a condominium, townhouse or single-family home in a newer development, you’re likely to become a member of a community association.

About 20 percent of Americans live in a community governed by a condo association, homeowners association or co-op board, according to the Community Associations Institute, which educates volunteer board members and association management professionals. The number of communities covered by associations has grown from about 10,000 in 1970 to more than 333,000 today.

Community associations come with rules that determine everything from the number of pets you can own to what color you can paint your front door. Some include amenities such as pools, clubhouses and golf courses, while others provide services such as road maintenance and streetlights.

The associations are set up by developers and then turned over to a volunteer board of homeowners once all the units in the development are sold. Those volunteers are responsible for making sure facilities are maintained, collecting maintenance dues and enforcing the rules.

“This is the ultimate form of democracy,” says Frank Rathbun, vice president of communications for the CAI.

While stories of homeowners associations that deny permission for a disabled child’s playhouse or won’t allow veterans to fly flags on the wrong kind of pole may steal the headlines, CAI statistics show that 64 percent of residents are satisfied with their community association experience and 26 percent are neutral, with only 10 percent dissatisfied, according to a 2014 survey.

But the same survey shows that almost a quarter of residents have experienced a significant disagreement with their association, with landscaping and parking being the two most common causes, followed by finances and architectural issues.

Whether you like or hate the rules that come with community association life, once you’ve bought or rented in an association, you’re committed to it. Being a member of an association ties your fate to your neighbors in ways that living in a traditional neighborhood does not.

“You have to overcome that ‘my home is my castle’ issue,” Rathbun says.

Rules are designed in part to protect property values, and 70 percent of the respondents in the CAI survey believe they do, while 26 percent believe they make no difference. Disagreements over which rules are required to protect property values often lead to conflicts that can cost residents both time and money if they’re handled poorly.

“People ought to know that being in a condo is a give-and-take kind of thing,” says Patrick Hohman, author of “Condos Townhomes and Home Owner Associations: How to Make Your Investment Safer” and a longtime volunteer board member who is now a part-time, on-site manager at a condominium near Louisville, Kentucky. He also runs an educational website called www.CondoHOAinfo.com.

“It’s a nonstop process of building trust and maintaining trust,” Hohman says. “You learn to be forgiving of others and forgiving of yourself. You deal with people where they are and as they are. It’s kind of like dealing with your extended family at Thanksgiving.”

One challenge for associations is that volunteer board members with no property management experience are charged with maintaining hundreds of thousands of dollars’ worth of property. About two-thirds of associations hire professional managers, but the rest are managed by the residents themselves.

“Board members are almost never trained in property management,” says Richard Thompson, who publishes The Regenesis Report, a weekly newsletter for board members and developers. He also writes a syndicated column for Realty Times and just published the book “Trade HOA Stress for Success.” He recommends professional management — hiring trained and experienced property managers to oversee operations — for most associations. “If the board hires competent people, they’re going to stay ahead of the curve and not put fires out,” he says.

Communities are dependent upon the skills and personalities that residents and board members bring to the table. Some people are better than others at working with their neighbors, and residents with poor people skills can create problems for everyone, especially if they are elected to the board.

Experts say that communication and transparency — being very clear about where the money goes, welcoming residents at board meetings and sharing information about how decisions are made — go a long way toward building community harmony.

“There is no substitution for communication between the association and the residents,” Rathbun says.

Here are seven tips for getting along in a homeowners association.

1. Know the rules before you move in.

Too few prospective residents understand the rules before they buy or rent. It’s particularly important to be able to live with policies on pets, parking, rentals, noise and architectural guidelines. “Folks buy into a homeowner association without any clue of what they’re obligated to do,” Thompson says. “Few prospective buyers research these things before they close the deal.”

2. Follow proper procedures.

Boards should set up clear procedures for everything from getting permission to paint your front door to rental applications to installing a satellite dish, and homeowners should expect to follow those procedures.

3. Go to your neighbor before you go to the board.

The board is there to make sure the rules and regulations of the development are followed, but if your neighbor’s loud music annoys you, talk to your neighbor first before taking your complaint to the HOA board.

4. If you don’t like a rule, get your neighbors together to change it.

Changing circumstances may make some rules outmoded, and boards should review the rules every few years to make sure they’re all serving the community. If you don’t like a rule, talk to your neighbors and petition the board collectively for a change.

5. Volunteer to help your community.

It’s not always evident from the outside exactly what work the board of directors is doing and what issues the community faces. Once you move in, volunteer to help with a project or serve on a committee, and expect to serve on the board at some point. “Get involved. Don’t wait until you’re dissatisfied about something,” Rathbun says.

6. Try to stay out of court.

Every community has a few people who think the rules don’t apply to them, and some would rather fight than comply. A court battle can be costly, both in money and in emotional turmoil within the community. “Win, lose or draw, we are still talking about neighbors who have this bigger wall between them,” Thompson says. Adds Rathbun: “Be reasonable: That applies to both the homeowners and the volunteer homeowners who serve on the board.”

7. Have a long-range plan. State laws regarding reserves and planning vary, but it always makes sense to plan for items you know will have to be replaced or repaired, such as roads, roofs and pools. If the community has no reserves and no plan, a roof leak at a condominium complex could mean a surprise assessment of thousands of dollars for each homeowner. “If the board had been collecting money and planning for this … every member along the timeline would have been paying some portion,” Thompson says.

 

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