Smart Moves

Are you obliged to sell your home due to an involuntary job transfer to a faraway state? If so, you might find yourself resisting your real estate agent's advice that you rid your place of excess belongings before it's shown to homebuyers.

Still, Eric Tyson, a personal finance expert, says it's critical that you take on this arduous challenge in order to improve your odds of a timely and successful sale.

"These days everyone spends so much time indoors on their computers or other electronic screens. Due to all those inside hours, we want open, spacious houses with lots of natural light -- not a place that seems crowded because it's filled with clutter," says Tyson, co-author of "House Selling for Dummies."

Most homeowners are still living in their home while it's on the market. Nevertheless, he says it's imperative you remove a large volume of belongings to make your property appealing.

What are some of the items that pile up in typical households?

Kristin Bertilson, the owner of a professional organizing company, says her clients -- including many involved in an involuntary home sale -- have closets filled with seemingly endless clothes and accessories. Also, numerous kitchen gadgets cram their countertops and toiletries crowd their bathrooms.

"Lots of people cling to many sentimental things -- including piles of greeting cards sent to them from loved ones and their children's artwork," Bertilson says.

For home sellers, Tyson says the best plan is to cull through all their accumulations before their property is shown for sale, packing away anything they can live without until they move.

Some unneeded items can be sold -- if not at a neighborhood sale, then perhaps on eBay. And discards contributed to charities -- such as the Salvation Army or Goodwill -- could yield a tax deduction.

To those who are unconvinced it's worth the time to purge themselves of excess belongings before they move, Tyson suggests they call a moving company for an estimate on the cost of hauling their extra belongings to the new location.

"It can be shockingly expensive to pay movers. Even if your company is helping to pay for the move, you're still going to get hit with a lot of extra costs," Tyson says.

Here are a few pointers for home sellers:

-- Equip yourself with all the gear you'll need for the job.

Martha Webb, a home-staging specialist and author of "Dress Your House for Success," says an effective de-cluttering program starts with the right equipment.

To stash away items you've decided to keep for your next home, she says you won't need fancy storage containers. Cardboard boxes are fine. But ideally you should use boxes of uniform size -- like the "bankers boxes" sold at office supply stores -- that can be stacked neatly.

After pre-packing the items that will go to your next property, Webb says you should place them out of sight, preferably in a temporary storage unit. Alternatively, if you aren't willing to pay the rental cost for a storage unit, place the boxes in your garage.

"Buyers will be more understanding if you have boxes stored neatly in your garage than if they're stashed in your living space. But they may still question whether there is enough storage space in your property," Webb says.

-- Tackle just one room at a time.

Webb says it can be nerve-racking to go back and forth from one room to another, trying to clear clutter from multiple fronts simultaneously. Rather, she advises you to take on just one room at a time -- starting with your master bedroom and clearing out closets first.

"Buyers who come to look at your house will definitely open every closet door in your bedrooms to look inside, just as they'll open every drawer and cabinet in your kitchen. So all these storage areas must be free of clutter," she says.

-- Use tact when clearing out your kids' bedrooms.

In many cases, young children feel anxious about the moving process -- and all the more so if the family is making an involuntary move. Their anxiety usually starts when their belongings must be packed. Because of this, Webb says they need reassurance that their most treasured possessions will still be available to them once the family has moved.

She says one way to help relieve children's fears is to involve them in choosing which of their items will go to the next home.

"Let the kids select their favorite toys and books and then give them markers to decorate at least one box that can stay in their room until the house is sold," Webb says.

-- Give priority attention to your kitchen.

In many homes, the kitchen now serves as the center of family life. For that reason, you'll want to impress buyers that your kitchen is large enough to meet their expectations.

"Lots of kitchen storage is a huge selling point for any property. The last thing you want is for buyers to think your kitchen is so crowded that there will be insufficient space for all your dishes and food," she says.

She recommends that sellers remove all superfluous items from both their kitchen countertops and their kitchen storage areas. Then thoroughly clean all the cabinets, replacing only those pieces you truly need for regular use. Everything else should go to storage or a charity.

-- Remove any controversial or questionable items.

Most families have possessions in their home that they resist removing -- especially if they're involved in a move they'd rather not make. But Webb says that as a home seller, you don't want anything visible that might distract attention from the positive attributes of your property.

For example, she urges you to remove any items that convey your political or religious opinions -- or even that reveal which sports teams you favor.

"Otherwise, in effect you're asking buyers to agree or disagree with your opinions. And I can almost guarantee that if they disagree, they'll reject your house," Webb says.

-- Look forward to the cathartic feeling that comes from purging.

Obviously, few people relish the demanding chore of sorting through years' worth of possessions. And this task can be especially unpleasant if you're being compelled to move involuntarily -- for example to accept a job transfer or lose your job altogether.

But Tyson says many who've gone through any household downsizing process discover -- often to their surprise -- that they feel less burdened with fewer possessions to manage.

"With less clutter, you live in a less stressful environment. And that can feel very refreshing," he says.

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

Real estate cycles are less predictable than in the past. With minute-by-minute alerts on breaking news, homebuyers' moods are now heavily influenced by reporting on key economic indicators, stock market swings and national home sale trends.

"Buyers don't always drill down to see how the national numbers affect their local market. But they're still really affected by them," says Mark Nash, a real estate expert and author of "1001 Tips for Buying and Selling a Home."

Besides economic reports, there are seasonal influences on buyers that can have a significant impact on home sales, according to Nash.

"In January and February, a lot of people ... are stressed out after dysfunctional family events. They're also unhappy about overspending during the holidays. Because of that, they're not feeling rich—an important factor to consider when you're pricing a home," he says.

Do you plan to put your property on the market early in the first quarter of 2014? If so, Nash urges you to exercise extra care to find an agent who's both plugged into buyers' moods and knowledgeable about your neighborhood.

"You need a peppy person who's enthusiastic even when other people are in the doldrums," he says.

Nash, who entered the real estate field in 1996, says it's customary for many real estate agents to schedule vacations in the first couple months of the year. But he says a wintertime home seller needs an agent who's actively involved in the business during the first quarter.

"You don't want someone who tunes out in winter because they think it's a sleepy time for sales," Nash says.

As a wintertime home seller, you’re entitled to know in advance if an agent you’re considering plans to leave town for vacation while your house is up for sale.

"Don’t pick a skier who’s away a lot during the winter," says Joan McLellan Tayler, a long-time realty company owner.

Finding the ideal listing agent for a winter home sale can be trickier than many sellers imagine. Here are a few pointers:

-- Interview more than one agent before making your selection.

Tayler, the author of several books on real estate, says home sellers should always interview at least three potential listing agents.

Friends and family members are one reliable source for referrals. But Tayler contends your neighbors could be a still better one.

"One way to identify agents who are really active in your community is to search for 'For Sale' signs there, noticing which agents have the most signs. That's a smart way to come up with a short list of candidates who know the best pricing strategy for the area," Tayler says.

She says it's "pointless" to interview agents who aren't familiar with the dynamics of your neighborhood market.

-- Look for an agent who takes a tailored marketing approach.

Tayler says top listing agents realize that every home is unique and should be marketed in accord with its size, condition and special characteristics.

Tailored marketing focuses on the property's location, among other factors.

For example, suppose your property is a cottage tucked away in a remote rural setting. Then you'll want your agent to customize your marketing to ensure that prospective buyers will make the long trek to see the home.

"In this case, a strong listing agent will make the directions to the home super easy to follow. Also, the agent will throw a well-catered 'broker's open house,' inviting all the real estate people from the area and advertising your place as a quiet family retreat where you could grow a big garden," Tayler says.

In contrast, she says a listing agent marketing a city home on a main artery should tailor marketing to include ads promoting its quick access to highways and public transportation, as well as nearby restaurants and cultural amenities.

"When business is slow, the best agents don't cut back on ads. They actually advertise more," Tayler says.

-- Resist hiring a family member or friend as your listing agent.

Those within your immediate circle who work in real estate, including relatives and friends, may be extremely trustworthy. But that alone doesn't make them good candidates to list your home, according to Nash, who warns sellers about the risk of hiring an agent with whom they have close ties.

"When you hire someone close to you and a problem comes up, your whole relationship is at risk of meltdown," Nash says.

Also, he says a friend or relative isn't likely to give you the sort of candid advice you need to ensure that your property is in saleable condition and is priced accurately.

"You don't want an agent who fears insulting you by saying your house is worth less than you think or that it's too loaded with clutter to sell well," Nash says.

-- Find an agent who answers your calls and messages promptly.

Because a real estate agent's career depends heavily on networking, someone with strong communication skills is likely to do a better job than someone who's slow to respond.

How can you tell if an agent is responsive? One clue should come when you leave your first phone message.

"Good agents always carry their cell phones. They're always on duty, prospecting for business. They're foolish if they don't call you back within two hours, or at least have an assistant call back until they're free," Tayler says.

-- Don't hesitate to sell during the winter months.

Though the nation as a whole is in the midst of a real estate recovery, your neighborhood may be an outlier. Perhaps this winter it's held back by short-term factors, such as an imbalance between supply and demand for housing, an element that could give buyers added leverage.

"It takes an especially skillful and proactive agent to market a home in an area where buyers have plenty of choices and can take their time," Tayler says.

It can be tempting for those who'd planned to sell in the winter to postpone until spring when more buyers are searching for property. But Tayler advises against delaying.

"With the right listing agent, the winter can be a superb time to sell. That's because many corporate transferees, who are very serious buyers, are out scouting for a home then. Rather than delay, go out and hit the market hard -- with a bang not a whimper," Tayler says. (To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

They're called "upsizers." They're seniors nearing retirement who aspire to the ownership of a larger, more luxurious home to enjoy in their golden years. But can they afford to increase their housing costs without sacrificing their retirement security?

Personal finance experts say that the answer hinges on a few points: Have the upsizers in question amassed a large retirement nest egg? Are they due a traditional "fixed benefit" pension? How much income do they expect from Social Security?

"One very important factor is when you expect to file for Social Security. The longer you wait -- up to age 70 --the more money you'll get every month," says Eric Tyson, co-author of "Personal Finance for Seniors for Dummies."

Most people claim benefits as soon as they're eligible, at age 62 for the current generation. But Tyson urges people to consider waiting until their "full retirement age" of 66 to stake their claim, or better still to wait until age 70 to obtain significantly higher benefits.

Andy Landis, author of "Social Security: The Inside Story," says many people who could afford to hold out for larger Social Security benefits don't understand the implications of filing their claim at age 62 when they're first eligible to do so.

Landis, who conducts retirement planning seminars for large employers and financial planners, acknowledges that many people claim their benefits at age 62 simply because they're strapped for cash to meet current expenses. But he says others file early out of fear that Social Security will run out of funds, a fear he dismisses.

"It would be political suicide for Congress to end a program for current retirees that's so tremendously popular," says Landis, who blogs at www.retireusa.net.

Mark Miller, author of "The Hard Times Guide to Retirement Security," who blogs at www.retirementrevised.com, says that the decision is a personal one, involving such factors as personal health and desired quality of life, and that it must be made carefully. If you have a poor life expectancy or want to travel while you're still relatively young and spry, filing early may be the way to go.

Shawn Koch, a certified financial planner, says if they can afford to wait or can use other income to fund their needs and plans, most seniors are better off waiting to age 66 or even 70 to begin collecting benefits.

"Remember that Social Security is inflation-adjusted, and, once you file, you'll get risk-free benefits for the rest of your life. It's really a kind of longevity insurance," says Koch, who's part of the Garrett Planning Network.

Here are a few pointers for retirement age homebuyers:

-- Think holistically about your retirement income needs.

Tyson, a former financial adviser, recommends that before they start shopping for a better home, seniors work through their retirement budget with an accountant or financial planner. Alternatively, they could create their own budget by using one of the free retirement income calculators available through such investment companies as Vanguard or T. Rowe Price.

When calculating how long they'll need retirement income to live, Tyson encourages most seniors to assume they'll have a long life, which is increasingly likely. Social Security Administration data show that the average 65-year-old can now expect to live more than 20 years longer. That compares with 14 years for a 65-year-old in 1940.

"It's critical that you think about your retirement income needs for years ahead -- especially if you don't have a large investment portfolio. This is especially important if you're not due for a pension from your employer," Tyson says.

-- Factor in the related costs of upgrading your housing.

Koch says many seniors fail to take into account the related expenses associated with upsizing or taking on ownership of a second home.

"Keep in mind all those extra upkeep costs for a bigger home or vacation property. Also remember you'll be spending more for furnishings, taxes and insurance," Koch says.

-- Remember that your real estate plans are also tied to your quality of life.

Have you long been attentive to the need to save for your retirement years? And have you also invested your savings carefully? If so, Tyson says Social Security could represent a relatively minor element in your retirement income plan. Those with sufficient savings to meet current living expenses can wait until 66 or even later to start collecting their benefits. In addition, they may be able to afford to buy a better home or vacation property without reliance on Social Security.

Tyson says such homebuyers can now take advantage of very reasonable real estate prices, which will likely increase as the economic recovery progresses.

As he notes, some financial planners are biased against the idea of buying real estate in the years prior to retirement. After all, many planners (except those who work on a fee-only basis), make their living on commissions from the sale of investment products and insurance, not real estate.

But Tyson says people who've saved substantial retirement funds or who are entitled to benefits from a traditional pension, or both, could now be well positioned to buy real estate.

"Although you need to look at the numbers, there are also qualitative factors to consider. If you can afford it, it's always wonderful to fulfill your retirement dreams, including those involving a better home," he says.

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