Most important repairs before listing your home for sale

Before putting your home up for sale, it's expected that a few minor repairs and improvements will need to be done first. But what repairs will translate into the biggest return? Every home is different, but the answer largely depends on a variety of factors, including location, the time of year, how hot (or not) the market is and the competitive inventory.

The goal of most buyers is to move in with minimum costs and headaches. Thus, a home with completed repairs is a big draw. But here's where local market conditions impact the decision to do minor improvements. What needs to get done to be competitive? In a hot seller's market your client might not need to lift a finger, while in a buyer's market that list of repairs may grow quite long. Currently, it's a buyer's market.

Practical projects that require little time, effort or money - like applying a fresh coat of paint - can instantly make the home more appealing, helping it sell faster and for more money. So complete smaller repair projects like patching cracks in sidewalks or driveways, caulking windows and doors, and mending fences. Pay the most attention to the front exterior and entry. Next, the kitchen and master bedroom are crucial.

But what about the larger issues? Before you decide whether to fix or merely disclose needed repairs to buyers, realize that doing repairs will usually result in a higher sales price and/or a quicker sale. Buyers love to hear the words "new" or "just replaced".

Key changes to consider before listing your home:

• Along with removing old wallpaper, there's no more cost-effective improvement than the application of fresh paint: inexpensive, and relatively quick, painting should be first.
• Dallas buyers love hardwood floors, so remove old carpeting and refinish floors. Replace chipped or cracked tiles, and clean or replace the grout.
• In the kitchen, appliances and cabinets are the big-ticket items to replace. If cabinets are worn and weathered-looking, the house may not sell as quickly (or at all). Paint might help and new counters should show well.
• Kitchen remodeling is typically a wise return on investment, but high-end kitchen makeovers don't tend to return as much on the investment as mid-range or minor kitchen remodeling.
• Bathroom repairs and renovations are always a solid recouped cost. It's easier for prospective buyers to imagine themselves stepping out of the shower onto pristine new floors, surrounded by new fixtures and lights.

Buyers usually want to move into a house that has new or updated appliances, plumbing, electrical and heat/air conditioning - a home that's ready to be lived in. Make it ready and they will buy.

[where: 75230]

New Preston Royal Bakery - Yummm!

Wendy Moore from the new Nothing Bundt Cakes store at Preston and Royal just popped by my office with the most delicious cake ever. This photo was taken about 30 seconds before it was devoured.

Their slogan - So yummy, you'll wish it didn't have a hole - is spot on. They're open for business. Just follow your nose to the fresh baked cakes made with pure, old fashioned ingredients.

[where: 75230]

Nice thought

Money will buy a fine dog,

but only kindness

will make him wag his tail.

[where: 75230]

Relocating to another city

Relocating to another city is extremely stressful, on many levels. And no one wants to get ‘mediocre’ help with finding a new place to live. If you, or a friend, or a family member are relocating to another city in Texas, to another state, or anyplace in the world - I can personally help find and introduce you to an outstanding agent in your destination city.

How? I'm a member of the distinguished Leading Real Estate Companies of the World®, a global real estate network of the finest locally owned, independent real estate firms, worldwide – each has an outstanding reputation for their excellent agents.

I appreciate the ability to refer my friends and clients to a truly skilled agent to help navigate the challenges of new neighborhood choices. They appreciate the help making their move a positive, smooth experience. [where: 75230]

Super Recycling drop off tomorrow

One man's junk is another man's treasure.

The 2009 Fall Super Recycle Round Up this Saturday, November 21st. Preston Hollow neighbors can drop a huge variety of items to Oak Hill Academy on Midway Road between Walnut Hill and Northwest Hwy. Why put your stuff into a landfill when it can be reused?

Organizations from Goodwill to Samsung will accept electronics, building materials, tires, toys, clothes, books, batteries, computers, etc. from 10 a.m. until 4 p.m.

Is your home ready for winter?

Even in Dallas, homeowners need to be prepared before winter takes hold. You probably know that there are a handful of maintenance tasks you need to complete before cold conditions hit. A few essential must do's for your home are:

1) Have the Roof Inspected - A professional can identify roof damage while it still costs hundreds, instead of thousands, of dollars to fix. This inspection should also tell you the condition of your attic and ventilation. If you don't want to pay for a professional inspection, at the very least conduct your own visual inspection to look for signs of wear-and-tear.

2) Clean your Gutters - Probably the most common and most neglected task of the bunch, don't take your gutter cleaning for granted. Proper cleaning involves more than just throwing easy-to-reach leaves out of the channel. Flush your downspouts and keep an eye out for any signs of gutter deterioration.

3) Insulate and Seal Windows - If you don't already have double-pane windows, it's time to jump on the bandwagon. With heating costs, few home improvements pay for themselves as quickly as replacement windows. If you simply can't afford it, use thick plastic covers or blankets to help out in the meantime. And regardless of the number of panes, take a look at your window frame. It may need new sealant.

4) Seal and Inspect Doors - Some homeowners pay so much attention to their windows that they forget their doors. Take a look at your entry door for air leaks and use weather stripping to help seal the joints. Take a look at your garage door, too, for both insulation and home security value.

5) Evaluate your Heating System - This one has a ton of upside. Catching problems with your heating system before winter hits almost always saves a bunch of money and will give you some time to plan for a replacement system, if necessary. If nothing else, at least change the filter, no matter the age or condition of your system.

6) Winterize Your Landscaping - Properly close your swimming pool, winterize your sprinkler system, and prepare your garden for next year's planting.

7) Emergency Preparation - Winter can mean the possibility of snow and/or ice storms. Have an emergency kit, complete with food and water, a reliable radio, and first-aid kit. [where: 75230]

The Lowdown on Home-Buyer Tax Credits

Here are some answers to common questions about the new rules on Home-Buyer tax credits.

What has stayed the same in the new law?

1) First-time homebuyers still get a credit of as much as 10% of the purchase price, up to a maximum $8,000. "First-time" means people, including both partners of a married couple, who haven't owned a principal residence for three years before the purchase.

2) All taxpayers who claim a credit must use the home as a principal residence for the next three consecutive years.

3) The credits offer dollar-for-dollar reductions of tax and are refundable. This means that a taxpayer who doesn't pay enough tax to offset the credit can get a refund. For example, if you qualify for an $8,000 credit but only owe $5,000 in tax, you could receive a $3,000 check from the Internal Revenue Service.

4) Under the new law, as under the old, 2009 home buyers may claim the credit on either their 2008 or 2009 returns, and 2010 buyers may claim the credit on either their 2009 or 2010 returns.

5) Taxpayers do not qualify for a credit if they buy from a lineal ancestor or descendent, including parents or grandparents and children or grandchildren.

What has changed?

Several important features took effect as of Nov. 6:

1) To take advantage of the tax credits, a buyer must have a contract in place before May 1, 2010, and the deal must close before July 1, 2010. No further extension is expected.

2) The price of the house is now capped. For purchases made after Nov. 6, no credit is available for any home costing more than $800,000.

3) There is now a tax credit for repeat buyers as well as for first-time buyers. Taxpayers who have lived in one residence for five consecutive years of the past eight can now qualify for a tax credit of as much as 10% of the purchase price, up to a maximum $6,500, of a new principal residence. The new home does not have to cost more than the old one.

4) Income limits for people who qualify for a tax credit are far more generous than under the previous law. For single filers, the credits now phase out between $125,000 and $145,000 of modified adjusted gross income; for married couples, the range is $225,000 to $245,000. For most people, modified adjusted gross income will be the same as adjusted gross income.

5) The new law contains anti-abuse measures designed to stem fraud, which became a problem with the previous home-buyer tax credit. Most buyers must be 18 or older, and no taxpayer may take a credit if he or she is claimed as a dependent on someone else's return. Taxpayers taking the credit will also have to furnish proof of purchase. According to Robert Dietz of the National Association of Home Builders, this will usually be a HUD-1 form.

6) People taking the tax credit, as under the old law, aren't allowed to buy a home from a lineal ancestor or descendent. The new law, applying to purchases made after Nov. 6, also says a person may not take a credit if the home is purchased from a spouse or the spouse's lineal relatives.

If I bought a house last spring or summer, can I get a tax credit?

You qualify if you are a first-time buyer and meet the other requirements, but not if you are a repeat buyer. The new credit for repeat buyers applies only to purchases made after Nov. 6.

Does the person who claims the credit have to use the home as a principal residence?

Yes.

If I buy a new home and live in it, do I also have to sell my old one in order to take advantage of the credit?

This is unclear. The law appears to allow repeat buyers to retain their old home, for which no tax credit was given, while claiming a credit for the new one. What is clear is that if you buy a new home using the credit, you must use it as your principal residence.

How may the credits be allocated among two or more unmarried buyers?

This also is unclear. But if the IRS adopts the rules that applied to the previous tax credit, which are detailed in IRS Notice 2009-12, there is room for planning. The notice says that taxpayers may use "any reasonable manner" to allocate the credit. It even provides an example in which two unmarried buyers allocate the credit to the lower earner in order to qualify for it.

I need the credit refund to help make the down payment. What can I do?

There's no rushing the IRS. But one option is to adjust your current withholding from your paychecks to reflect the fact that you will be taking the credit later. But be careful: If you don't make the purchase, then you may owe interest and penalties. Consult a tax adviser.

Is it possible to qualify for a credit if I am building a home on a lot I already own?

Yes, according to the National Association of Home Builders. The purchase date is usually considered to be the date of first occupancy, so you would need to move in before July 1, 2010.

May I take a credit if I am building a large addition to my home?

No; these credits apply only to the purchase of a home.

Where can I get more information?

Go to federalhousingtaxcredit.com, a Web site sponsored by the National Association of Home Builders. You can also look for links from the IRS's home page, www.irs.gov, or search for Homebuyer Credit. Another option is to consult a professional tax adviser.

[where: 75230]

Dallas House Hunters

Today was an exciting first day of filming a Dallas episode for HGTV's House Hunters. This reality show is one of my favorites and I'm filming it with one of my favorite buyers ever.

Exhausting but fun, I think it will make for a great show. Stay tuned for the air date in 2010!

[where: 75230]

Aristotle & the Economic Outlook

Greek philosopher Aristotle

wrote to his son;

.

.

"For one swallow does not make a spring,

nor does one day;

and so too one day, or a short time,

does not make a man blessed and happy."

Aristotle believed that happiness isn't a temporary feeling experienced over a limited period, but the cultivation of virtue and accomplishment over a lifetime.

Today, the National Bureau of Economic Research (NBER) follows Aristotle's approach in determining the beginning and end of an economic cycle. The economy peaked and the current recession began in December 2007, but the NBER didn't conclude this publicly until 11 months later. It may be that this spring, the NBER will declare July 2009 to have been the end of the current recession, with the U.S. resuming a growth course at that point.

In three of the previous four recessions, the economy experienced a quarterly blip of positive growth followed by at least one more negative reading before the recession was finally over. We won't really know where we are now until the dust has settled in six to nine months.

[where: 75230]

Neighborhood Lost & Found

Two separate neighborhoods have lost and found an unusual combination of pets today.

A friend on Waggoner drive has found a domesticated black & white rabbit in their yard. A different neighbor is missing their 13 lb. black & white cat Oreo.

And the moon looks full.

[where: 75230]