Smart Moves

Now that their four children are finally through college, a construction company executive and his wife, a hospice nurse, are eagerly searching for the much larger and glitzier house they couldn't afford when the kids were young.

Like many homebuyers currently scouring the market, the couple is convinced that now is an optimal time to fulfill their big-house fantasies, says Michael Byrd, the agent representing them and president-elect of the National Association of Exclusive Buyer Agents (www.naeba.org).

Like the couple in this true story, an increasing number of homeowners who have the equity and desire to trade up are now planning to move to larger quarters. Such "upsizers," as real estate agents call them, include young families and older couples with long-deferred housing aspirations.

"There's a tremendous amount of buying activity going on right now. People realize that the concurrence of low prices and low mortgage rates give them phenomenal buying power," says Byrd, who believes this is the best market for buyers since he entered real estate in 1987.

Here are a few pointers for people who want to buy a larger or fancier home in the current market:

-- View your housing options in a holistic way.

Making a housing change inevitably involves trade-offs, says Byrd, who personally prefers living in a small, easy-to-maintain property. Instead of making a hasty purchase, he urges buyers to plan and reflect before heading out to shop for a home.

"Every decision on housing is a lifestyle decision. You have to figure out which house and neighborhood features are vital for you and which you could sacrifice," he says.

To sketch out their priorities, Byrd recommends that prospective buyers take out a legal pad and create three columns. In the first, list "must have" features; in the second, "really want to have;" and in the third, "nice to have."

When it comes to married couples (or those living together), Byrd says it's critically important that both partners do the paper-and-pencil exercise separately and then compare the two lists. For example, a husband might insist on a house with a three-car garage that's near a golf course. But his wife might put a short commute and a gourmet kitchen on her "must have" list.

"When buyers get stuck on where to live and how big a house to buy, it's usually because husband and wife disagree," Byrd says.

-- Make sure you're saving enough for retirement.

Granted, there's much more to quality-of-life decisions than financial priorities. Still, a comprehensive plan focused on present cash-flow concerns should also take into account long-term financial needs, says Eric Tyson, a personal finance expert and author of "Mind Over Money: Your Path to Wealth and Happiness."

Before deciding how much to spend on better housing, he urges you to think through your retirement savings situation.

To gauge how well prepared you are for retirement, he suggests you use the free planning calculators provided by such mutual funds as Vanguard (www.vanguard.com), and T. Rowe Price (www.troweprice.com).

"If you're already close to retirement and haven't saved enough to date, you need to try to catch up. Don't make yourself house poor at the expense of your retirement savings," Tyson says.

-- Keep in mind the extra responsibilities associated with a bigger property.

Perhaps your ideal home is quite lavish, complete with elaborate landscaping as well as a backyard swimming pool and fountain. If a financial analysis shows you can afford it, should you go ahead on that basis alone?

Not without considering the time implications of owning a much larger property, Tyson says.

"Many people underestimate how much time it can take to own and manage a big property. This can be a huge commitment, even if you're handy and can afford to hire help. Remember this is free time you could put to other uses, like exercising, reading good books or enjoying friends and family," he says.

Tyson, who co-authored "Home Buying for Dummies," suggests people carefully review their personal priorities before taking on ownership of a property that will tax their time.

-- Don't rule out a move to another neighborhood or general area.

Moving to the suburbs could allow you to purchase a larger, splashier house for less money than if you bought closer to a town center or city.

"If you're comfortable living far out and you really want a brand new place -- one with a big yard and the right to pick your favorite paint colors and appliances -- then moving to an outlying neighborhood might be the right answer," Byrd says.

"Not everyone needs to worry about a long commute. That's because many more people can now work from home. And retired people usually have lots of choices on where to live," he says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

Home prices are climbing again, and one of the nation's leading property valuation experts says now might be a good time to consider selling your home.

"If you're in one of those 'up neighborhoods' and want to move, I say go ahead," says Karl E. Case, co-founder of the Standard & Poor's/Case-Shiller indices, which track home prices throughout the country.

According to the latest index of 20 large cities, home prices rose in all the metro markets, indicating the beginning of a nationwide recovery for real estate.

"It's a real increase. The 'up' areas are really up," says Case, an economics professor emeritus at Wellesley College.

However, he cautions that within the 20 major markets there are pockets of both strength and weakness. That means pricing trends can vary widely on a neighborhood-by-neighborhood basis.

"There are now wider disparities in values than there were in past years when real estate was rapidly booming or falling," Case says.

The current neighborhood-by-neighborhood shift in real estate values is making it harder for aspiring sellers to peg the right asking price for their property. To avoid guesswork, Case says there's no substitute for a listing agent with an in-depth awareness of pricing trends in your local market.

"It's never wise to get a real estate agent from the far side of town," he says.

Here are a few pointers for would-be sellers:

-- Acknowledge the vital importance of proper pricing.

Sid Davis, a real estate broker and author of "A Survival Guide to Selling a Home," says that in some exceptionally strong real estate markets, buyers are beginning to cope with the reality of multiple offers.

He says the major factor fueling brisker sales in strong markets is that long-pent-up buyer demand is starting to be unleashed in those areas.

He says a skilled listing agent is a valuable ally to sellers who want to hit the target when their home first goes up for sale.

"Even in a strong market, asking more than your home is really worth is a big mistake. Most buyers won't even make an offer if they think you're greedy," Davis says.

-- Seek a general idea on value before looking for a listing agent.

In the Internet age, there are a number of websites that promise to give you a free and immediate assessment of your home's value. One of the best known is Zillow (www.zillow.com).

Davis says that such "fast pricing" websites can't be expected to provide you a definitive answer on your property's worth. Still, he considers them a good starting point.

Besides using the Web, another way to get a feel for the strength of your local market is to attend open houses.

"If people have begun to flock to open houses in your neighborhood, that's a positive signal," he says.

-- Interview at least three candidates before hiring an agent.

When it comes time to sell a home, many owners think it's wise to hire a trusted family member as their listing agent. But Davis cautions against choosing someone from your inner circle.

"Your home is your biggest asset. You have a lot at stake. Would you automatically hire a relative to manage the assets in your retirement fund, or would you search for the best expert you can find? The same principle applies when selling your home," he says.

Even if your family member has a proven track record in real estate, choosing that individual as your agent could be a mistake.

"Your relatives probably won't tell you if your place is a dump that needs to be de-cluttered or that it's worth a lot less than you think," Davis says.

He recommends that you interview three agents who work in your area to determine the right one to sell your house. Ask each to give you a candid evaluation of both the condition and current worth of your place. Also question all three on how they came up with their pricing recommendations.

"You want to see the actual comparable sales used to support their recommendations. In an upward market, it's especially important that these sales be very recent --preferably for houses sold within the last month," Davis says.

-- Check into an agent's track record on pricing.

Are you planning to sell a home in an area where property values are flat or still slipping slightly? In that case, it's unlikely you'll receive your full asking price at the closing table. But if your property was marked correctly from the outset, you should still come quite close.

"The idea is to hit the bull's-eye from the beginning rather than letting your house become shopworn," Davis says.

How can you judge whether the agents you're interviewing have a good track record on pricing? One way is to review a few key numbers on their past listings, such as "list-to-sale" statistics. These compare the original asking price versus the sum ultimately received by the sellers.

If the agent is routinely making realistic recommendations, there should be little difference between the original list price and the final sale price, Davis says.

"As sellers, you always have the final word on your asking price. But you don't want to hire an agent who tries to flatter you into going too high at the start on the premise that you can always make deep cuts later. That's a losing strategy," he says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

In recent years, turbulence in real estate markets has caused many older homeowners to delay plans to sell. But as the housing recovery gets underway, all that could change in a major way.

Jan Yager, a sociologist and time-management consultant, predicts that within the next decade "tens of millions" of baby boomers will sell their current homes and move to different abodes more suitable for retirement.

No matter where they plan to move, boomers who've lived in the same home for many years will face the enormous task of sifting through accumulations and upgrading their property for market. And all who try to tackle this project need a strategic plan to manage their time, says Yager, author of "Work Less, Do More," a time- management book.

"Using your time wisely is pivotal to getting your house in order, whether you're working, retired or semi-retired," she says.

If possible, Yager encourages those who need to clear through a vast collection of belongings before selling to allow a full year for this project. But she's aware that most sellers don't have this much latitude and that they may need some help to expedite the process.

"It could be a good idea for you to hire a professional organizer," says Yager, who recommends that home sellers consider seeking a local referral through the National Association of Professional Organizers (www.napo.net).

These few pointers could prove helpful, if you are a time-stretched home-seller:

-- Acknowledge your limitations on time.

"People are beyond busy now. If you're working, you're extremely busy at the office. If you're not working, you're busy looking for a job," says Lee Silber, author of "Time Management for the Creative Person."

"Everything happens so much faster than before, making it hard to keep up," Silber says.

When people seek to add on to their already busy schedules all the work associated with a housing move, many go into overload.

"I've ruled out moving myself, because I know it would take months to get the whole project completed," Silber says.

Silber recommends you make a list of discretionary activities that could be cut from your schedule until your home project is done. For example, you might cut back on TV.

Rita Emmett, a time-management specialist and author of books on procrastination, suggests you reduce the time you spend on what she dubs "recreational shopping."

"For Americans, the No. 1 family activity is going to the mall," she says.

Another way to liberate time is to prepare simple meals at home rather than heading to a fast food place, Emmett says. As she notes, the drive back and forth to a restaurant takes more time than people expect. Plus there's the time spent waiting to be served at the restaurant.

-- Set priorities carefully.

Like many time-management consultants, Silber discourages clients from taking an all-or-nothing approach. Rather, he urges them to concentrate on the tasks with the greatest possible impact.

To ensure that the most time and money are focused on key priorities, he says your first step should be to ask a trusted real estate agent to walk through your property and advise you on the steps most worth taking.

For instance, replacing a stained living room carpet could make a huge difference in the salability of your place. But fixing the stains on your concrete walkways may not.

"Remember, you get 90 percent of your bang from just 10 percent of your activities. So always focus on that top 10 percent first," Silber says.

-- Create a work plan that suits your personality.

Silber says too few people embark on a home project with an overall plan in mind, and this slows their progress. But he also stresses that there's no one-size-fits-all approach to planning.

As an alternative to a formal written plan, he suggests that non-traditionalists may wish to make a visual "blueprint" of their property, marking in tasks on a room-by-room basis and then doing the work in the sequence they prefer.

"To help stay on course, you might draw a picture of how you want each room to look and then tape it to the door of that room," he says.

-- Infuse fun into the home preparation process.

You'll gain more momentum in your quest to ready your home for market if you can make an otherwise boring project more interesting, Silber says.

He suggests you might want to throw a "pre-sale party" featuring pizza and beer. To stage such a party, and gain help with your project, simply send out invitations for an event to occur before your real estate agent lists your home for sale.

"Surprisingly many people -- especially organized people -- like to make their friends' homes look better. They really do want to help you out, so don't be shy about asking," he says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)