Smart Moves

They were a newly blended family with a grand total of seven kids, four from his first marriage and three from hers. After the wedding, they headed out to hunt for a house spacious enough to hold them all.

"They knew it would be really tough for everybody to learn to live together under the same roof. So they searched for as much space as they could afford while still insisting on a neighborhood with good schools," says Sid Davis, the family's real estate broker.

In most parts of the country, families are no bigger than a decade ago. But in some areas -- such as Utah, where Davis owns an independent real estate firm -- many families are larger than the national average.

Davis, author of "A Survival Guide for Buying a Home," says his clients often face challenging trade-offs when selecting a property to house all their kids.

"Very few big families can afford everything they need and want in a house," Davis says.

The parents in the seven-kid family talked for hours about their priorities. In the end, they agreed that having enough bathrooms was their top goal, followed closely by enough bedrooms.

"If absolutely necessary, kids can double-bunk in bedrooms. But having people wait in line for a bathroom causes lots of friction in a household," Davis says.

After a lengthy search, the family found a sprawling one-level house with 3,600 square feet of living space, three bathrooms and six bedrooms.

"To get that big a house, they had to give up plans for an extra-large yard, as well as a formal dining room. But they refused to give up a good school system," Davis says.

Are you a home-buying family with lots of kids? If so, these pointers could prove helpful:

-- Don't judge neighborhood schools solely on test scores.

Few large families have the means to pursue a private- school education for their offspring. That's why finding the best available public schools is a key element in housing selection.

"Schools are a very big deal for families," says Dorcas Helfant, a real estate broker and former president of the National Association of Realtors (www.realtor.org).

Though it's easy to compare schools on the basis of standardized test scores, which can typically be found online, Helfant urges parents to visit neighborhood schools before judging them.

"The quality of instruction and the atmosphere matter even more than test scores. To learn more about the intangibles, talk to teachers and administrators." She also suggests talking to local residents about the schools.

-- Consider reducing your expectations on yard size.

Helfant says some parents, nostalgic about the capacious yards of their childhoods, automatically think their kids need the same sort of setting to thrive. But she suggests they rethink that notion.

"Kids today have an awful lot of structured time. They go to sports, dance, judo and piano lessons. There's not a lot of time left over for free play in the backyard," Helfant says.

She believes neighborhoods where yards are relatively small can be friendlier than those with much bigger lots, especially if the houses have front porches and sidewalks that encourage interaction.

-- Select a floor plan that serves your family's lifestyle.

When homebuyers think of a formal dining room, they think of Thanksgiving and other rare times when relatives gather for a feast. But Davis says for most large families, it's more important to find a house with ample space for casual living.

"If you have to make trade-offs, and most people do, let go of both a formal dining room and living room. Instead, shop for that eat-in country kitchen that flows directly into a large family room," he says.

For time-starved families with working parents, the advantage of this combination space is that it encourages family members to spend time together, while the parents are cooking and the kids are doing homework or playing games on the computer.

-- Seek a property with as many bedrooms as you can afford.

Second only to plenty of bathrooms, current homebuyers with kids want as many bedrooms as they can afford, and builders are now acknowledging this wish in their floor plans, Helfant says.

Children naturally prefer their own bedrooms. But if necessary, Helfant says that most kids will either wedge themselves into a small room or agree to share a room. Still, it's wise to make sure that parents have a spacious suite of their own with a private bathroom.

"In big families, parents need a private retreat --particularly once their children become teenagers. It's only good design for parents to have their own space," Helfant says.

-- Don't rule out a house with two or more stories.

Many contemporary homebuyers seek a one-level home. Middle-aged buyers with increasingly arthritic knees dislike stairs. And many seniors have ailments that make it hard, if not impossible, to climb stairs.

Even so, Helfant says it's sensible for big families with young children to consider the advantages of living on two levels. That's because it's easier to contain the noise and mess generated by the kids if their bedrooms are separated from the family's common areas.

With a two-story house, parents can entertain guests on the first floor while the kids sleep on the second floor.

"The reality is that lots of folks like to send their kids to bed upstairs so they can enjoy a little solace at the end of a long day," Helfant says.

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

It can happen in a cool real estate market or a boiling one. Curiously, a good-looking house in a nice neighborhood languishes unsold for what seems to its exasperated owners as an endless length of time.

What's wrong? Perhaps obvious repairs have gone undone or the decor needs updating. Maybe the sellers have failed to weed through their clutter, leaving the place unappealingly crowded. Or it could be that the list price is too high for the neighborhood, the most common explanation.

When should the owners start to worry that their home has become shopworn? As a rule of thumb, Brandi Pearl Thompson, a real estate broker affiliated with the Council of Residential Specialists (www.crs.com), says you should think seriously about a substantial price cut if you've had 10 showings but not a single offer.

She says sellers who enter the market with an overly high list price typically hurt themselves in the long run.

"If your house has been sitting and you take a price cut late in the game, buyers believe you're desperate. They think something is seriously wrong with your house," she says.

Thompson says some sellers operate on the mistaken belief that it's a good idea to "push" the opening list price to test the market. And she says some listing agents go along.

But as she notes, it's the market that determines property values; wishful thinking makes no difference.

Along with off-target pricing, other factors -- including poor photography -- can seriously affect selling time, according to Thompson. She says that many buyers will reject a property solely on the basis that it looks unappealing in the first four photos they see online.

"Pictures can make or break you," she says.

She says smart phones can take good photos but that those who use more advanced digital cameras can often take shots that look better in print and online advertising.

"Hiring a professional photographer for your home is worth every penny," Thompson says.

Here are a few other pointers for home sellers:

-- Seek out feedback from savvy real estate specialists.

Once a listing agreement expires, many home sellers decide to renew the agreement with the same agent, while others choose to switch agents.

"When a house isn't selling, some people blame the agent. But it makes no sense to blame the agent if you didn't follow their recommendations," says Eric Tyson, a personal finance expert and the co-author of "House Selling for Dummies."

Perhaps you want to change agents, if only to gain a fresh perspective. In that case, Tyson says it's wise to take advantage of the interviewing process to solicit feedback from the candidates.

This isn't the time to solicit compliments on your property. Besides seeking realistic pricing guidance, ask for recommendations on how to improve your home's condition. For example, do you still have peeling paint on the front door, or kitchen appliances that need replacing?

"If your house has been sitting unsold for a long time, you can't afford to ignore constructive comments made by agents who come by for a visit," Tyson says.

-- Lighten up a dark interior.

Nowadays, buyers are nearly unanimous in their preference for light, bright living spaces. That's why properties with high ceilings and large windows are so popular. That's also why dark-colored walls and heavy draperies are so unpopular.

"If you have dark paneling anywhere in your house, seriously consider painting over it in a light, neutral color," he says.

-- Rethink your clutter situation.

Before their home hits the market, most sellers have had their agents tell them about the importance of dispensing with clutter. By then, many sellers have managed to de-clutter a number of areas, including closets bulging with shoes and kitchen countertops loaded with gadgets.

Even so, if your home has been sitting unsold for a lengthy period, Tyson urges you to reconsider your clutter situation and see whether there's more to do. Also, think about whether you've lowered your standards of cleanliness and order.

"Clutter removal is a major issue. That's because rooms look a lot smaller when they're overfilled. Remember that the eyes of buyers will be naturally drawn to all that stuff rather than the good qualities of your house," Tyson says.

He says many sellers can make their homes much more appealing by removing at least a quarter to a half of all their furniture, including oversized recliners, clunky coffee tables and heavy bedroom furnishings.

-- Reduce your asking price to help rekindle buyer interest.

Thompson says homebuyers are acutely aware of home values and resent sellers they suspect of trying to price- gouge.

"It's not about how much money you want to get out of the house. It's about what the market believes your home is worth," she says.

Though it's far preferable to price correctly from the first day your place hits the market, Thompson says those who asked too much at the outset should try to rectify the situation as quickly as possible with a price reduction.

"If your neighborhood has shifted up or down -- for example, because mortgage rates have changed -- you have to take that into account," she says.

The good news is that sellers who agree to a belated price reduction can often capture a second round of buyer interest and perhaps even a couple offers at that late stage.

"It's inexplicable as to why. But sometimes one offer leads immediately to another, even though the two buyers never spoke to each other," Thompson says.

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

At the height of the financial crisis, those who were self-employed stood almost zero chance of having a mortgage application approved. But while many challenges remain, the situation is now slightly better for this class of borrowers.

"Lenders are now less paranoid about making non-standard mortgages because their financial picture has improved," says Keith Gumbinger, a vice president at HSH Associates (www.hsh.com), a firm that tracks the mortgage industry.

The slight easing on the part of mortgage lenders comes at a welcome time for many white-collar workers who, after losing their jobs during the recession, decided to start a home-based business.

"These are people who had substantial skills in such fields as accounting, graphic design, public relations and IT. Because they couldn't find employment to use their skills, they went into consulting," says Sid Davis, a self-employed real estate broker who's worked from home for a lengthy period.

Davis says many who've started a home-based business in recent years have found their current residence unsuitable. Because of that, they're now seeking to buy, and finance, a home to better serve their needs.

Davis encourages those who are attempting to grow their entrepreneurial operations to look for a property with a convenient main floor space for their office, one that also has a separate entrance for clients.

"If you can help it, you don't want your company hidden away in an upstairs bedroom," Davis says.

In addition, he says entrepreneurs seeking a good setting for a home-based business should thoroughly investigate whether any community they're considering allows, or forbids, such enterprises.

"Some homeowner associations don't permit you to have a business and are strict about their rules. Others don't have any such rules or are lax about the ones they have," Davis says.

Here are a few pointers for self-employed homebuyers:

-- Inform yourself about the basics of the current mortgage industry.

Many homebuyers -- especially first-time borrowers --are in the dark about the meaning of the word "mortgage" and how the system works. Because they lack any experience in this area, they're shy about asking questions, says Leo Berard, charter president of the National Association of Exclusive Buyer Agents (www.naeba.org).

But as Berard says, the basic concepts of mortgage lending aren't so complex that you can't grasp them in a short period of time. Start with a basic Internet tutorial, available through the website of the U.S. Department of Housing and Urban Development (www.hud.gov).

Also, Berard recommends you buy a book or two on the subject and suggests "Mortgages for Dummies," by Eric Tyson and Ray Brown.

-- Seek out face-to-face meetings with mortgage lenders.

Most mortgage lenders are comfortable handling loan applications by phone, fax, email or overnight delivery. But Gumbinger, the HSH Associates vice president, encourages self-employed applicants to request a meeting in person.

"Meeting at the lender's office won't give you an enormous advantage. But it could help you make your case and mean you're treated somewhat more seriously," he says.

-- Bring your basic documentation with you to the lender's office.

Nowadays mortgage officers, (also known as "originators"), have to work harder than in previous years to assemble files that meet the exacting requirements of their underwriters. Because of that, they're grateful to borrowers who make their jobs easier through advanced preparation, says Dale Robyn Siegel, a mortgage broker and author of "The New Rules for Mortgages."

Siegel says ideal loan applicants who are self-employed collect key documents showing their financial strength before they even approach lenders. These include multiple years' worth of tax returns, along with statements showing the present value of such holdings as savings accounts, stocks, bonds and retirement funds.

Mortgage officers also appreciate applicants who've scrutinized their credit reports in advance of seeking a loan. That way, the prospective borrowers can identify and try to correct any inaccuracies or blemishes in their credit before submitting a loan application -- a step that's especially important for the self-employed.

Under federal law, you're entitled each year to one free credit report from the three large credit bureaus: Equifax, Experian, and TransUnion. Just go to this website: www.annualcreditreport.com to get started.

You'll also want to access your credit scores. Such scores, which draw on data from the credit bureaus, provide lenders with a quantitative measure of a person's credit risk. Most lenders use FICO scores, pioneered by the Fair Isaac Corp., or another similar scoring system.

Generally, you need to pay a fee to obtain your credit scores. One approach is to buy these through the Fair Isaac website: www.myfico.com. You can also receive credit scores through the credit bureaus. FICO scores typically range from 300 to 850 -- the higher the better.

-- Remain in close contact with your lender until your mortgage closes.

With a recent downturn in the number of applications to refinance mortgages, several major lenders have announced large-scale layoffs. That can mean heavier workloads for those still in the business.

Gumbinger says you can make life a little easier for your lender's office staff by staying in touch and responsive to their needs while your loan is in their pipeline. For example, that might mean responding quickly to their request for a profit-and-loss statement for your business.

"People who stay in touch are more likely to get their loan approved and closed in a timely manner. They're less likely to have their application stuck in a pile of papers on someone's desk," Gumbinger says.

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