Smart Moves

For many months, wannabe homebuyers in popular neighborhoods have bemoaned a shortage of what real estate agents call "inventory" -- the volume of homes available on the market.

But a slowing of home sales in November, as reported by the National Association of Realtors, could mean a gradual rebuilding of inventory levels in some of the hottest communities.

"In 2016 there might be a lot more starter homes available if the economy continues to improve," says Sid Davis, a seasoned real estate broker and author of "A Survival Guide for Buying a Home."

More inventory could translate to more choices for homebuyers. But surprisingly, the prospect of more home choices is not one that thrills all buyers.

"Some people find decision making harder when there are more options. They can feel paralyzed by what they perceive as over-choice," Davis says.

During his more than 30 years selling homes, Davis says he's often observed that the buyers who make the best choices are those who define their search criteria carefully, rather than simply visiting an indefinite number of places.

"Believe it or not, there's an art to creating a short list of houses to visit and then examining each one on your short list very carefully," he says.

Here are a few screening tips for buyers:

-- Start by comparing houses on the basis of square footage.

"After you've picked the right neighborhood, I recommend you sort on the basis of square footage. Price per square foot remains a very important factor," says John Rygiol, a long-time broker who's affiliated with the National Association of Exclusive Buyer Agents (naeba.org).

Though it's surprising to clients, Rygiol says it's not uncommon to find that a small home could cost significantly more per square foot than a mid-sized property in the same neighborhood. And over time, the mid-sized home should be worth more.

"If for any reason the square footage isn't shown on the listing in the Multiple Listing Service, ask your agent to pre-screen the place and take measurements for you," he says.

-- Factor in bathroom count when deciding which homes to visit.

Once it was common for several family members, particularly the children or teenagers in the household, to share the same bathroom.

But as Rygiol points out, the current ideal is for every member of the family to have his or her own bathroom.

Of course, homes in older communities are likely to have fewer bathrooms than those in recently built subdivisions. But whether you've targeted an older community or a newer one, Rygiol says it's wise to favor homes with more bathrooms.

"The best-case scenario is to find a place with 'his and her' bathrooms off the master suite, a feature that today's buyers greatly appreciate," he says.

-- Consider homes within their neighborhood context.

One online tool for placing homes within their neighborhood context is Google Maps, which uses satellite imagery to pinpoint the location of properties simply by typing in an address.

"This way you can quickly see if a house is located on a busy, cross-through street versus a dead-end avenue or a quiet cul-de-sac. And you could tell, for example, how close a property is to a 'big box' retailer," Davis says.

He says you should also take note of the direction that a home's front faces.

"Most people like a house that faces south better than one that faces north. Over time, chances are the south-facing house could be worth somewhat more," he says.

In addition, you can narrow your search by asking your real estate agent to drive by properties in an area that interests you. That way your agent can help you pre-screen for curb appeal, another important factor in deciding which homes to consider.

-- Search for a place with "good bones."

Most architects are well aware of the hidden value contained in a house that's well designed, structurally sound and that has energy-efficient systems -- such as superior heating and air conditioning units. They say such a property has "good bones."

Discerning buyers, working with attentive agents, can readily cull through available properties to identify such houses, Davis says. These properties usually give the buyer more for their money than homes that are superficially appealing but have fundamental issues.

-- Think through your lifestyle needs when comparing floor plans.

When touring homes, Davis suggests you trust your instincts about the impression a place makes after you've first entered the front door.

"A good floor plan gives the visitor a feeling of harmony. The rooms and major features are all in proportion. For example, window sizes are in proportion to overall floor space, neither too small nor too big," Davis says.

You should also think carefully about the layout of any home you're visiting, he says, because a floor plan can be influential in helping shape your lifestyle.

For instance, an empty-nest couple that often holds dinner parties will likely want a formal dining room that's well positioned within their home. But families with young children typically place more emphasis on a large family room that flows into a country-sized kitchen.

"Don't let yourself get wowed by a home's shallower attributes. Rather, think of a place that will underscore your happiness for as long as you choose to live there," Davis says.

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

Home improvement is a $300 billion business in America. Yet many sellers do a lot of head scratching when they need to hire a plumber, electrician, painter, carpenter or roofer to get their property prepped for market.

"Most people don't know where to turn to find the right contractors to get their walls repainted or their leaky faucets fixed without paying too much or waiting too long," says Eric Tyson, co-author of "House Selling for Dummies."

Tyson says it's a rare house that doesn't need some level of help from contractors before it's put up for sale. Problems that should be addressed could include such relatively minor tasks as replacement of a non-functional doorbell or such complex ones as new roofing.

But getting a good contractor can often take time. He recalls that a four-day fence installation job in his backyard wound up taking six weeks because of the contractor's busy schedule.

He urges sellers to exercise caution when hiring contractors to do their pre-sale work. Here are a few tips on avoiding snags:

-- Ask for a list of contractor referrals from your listing agent.

Chances are the agent you engage to list your home will maintain a lengthy roster of reliable contractors. Included should be a range of service providers, from carpet installers to landscapers.

Such lists can be a valuable resource for home sellers.

"Granted, the contractors recommended by your agent aren't necessarily the cheapest guys in town. But they probably have proven track records and can likely get the work done within your deadline," Tyson says.

Contractors who work closely with real estate agents do so because agents represent a steady stream of repeat business. This gives the sellers who hire them more clout.

"What the contractor realizes is that if he does a terrible job, he could be removed from the agent's roster. Naturally this should help keep him in line," Tyson says.

-- Make sure any contractors you're considering have time for your job.

To avoid getting squeezed out of the contractor's schedule by larger jobs, Tyson says you'll also want to be sure any company you're considering isn't overbooked. You'll also want to know who exactly will be performing the work.

"You might be very impressed with the person who comes to the door the first time. Then you soon realize this was just a salesperson and that the people doing the actual work are not as capable. This can be extremely disappointing," Tyson says.

-- Communicate clearly with your contractors.

Stephen Carpenter-Israel, a real estate broker and president of an independent realty firm, recommends that home sellers have a serious, face-to-face conversation with any contractor they plan to hire.

To make sure your expectations are fully understood by the contractors, at your first meeting present them with an outline of the work, including any relevant details.

"This written statement can serve as an informal agreement that the contractor can sign and which establishes expectations in advance for jobs of a limited scope," Carpenter-Israel says.

-- Get all your contractor's promises in writing.

Tyson says that all too often homeowners make agreements with contractors based on verbal guarantees. There's no substitute for a written contract that covers all the key elements of the project, including price, timing and scope.

Because the prompt completion of work is essential to your success as a home seller, Tyson suggests you insist on financial consequences for a missed deadline.

"It's often prudent to include small incentives if the work is done on time or early and penalties if it's done late," he says.

You'll also want to incorporate into your agreement language indicating that the contracting firm guarantees its work and carries all the proper insurance coverage on its employees and subcontractors.

-- Don't allow contractors to cut corners on government inspections.

Obviously, not all home repairs or upgrades require your contractor to obtain a government permit and an inspection to ensure that the work complies with local codes. For instance, your electrician probably won't need government oversight to change light fixtures and your plumber likely won't require it to replace a broken water heater.

Major projects may be different, however. Examples could include the installation of a new bathroom or deck.

Perhaps you think you'll get a better price from a contractor who asks to circumvent government requirements. But Carpenter-Israel says that skirting the law can be risky, especially for those with plans to sell who could face legal problems later.

"Otherwise, you'll have no means of recourse," he says.

-- Refuse to cover the entire cost of the work from the outset.

Partial payments to a contractor are sometimes appropriate before work has begun, especially when significant material costs are involved.

For instance, you're likely to be asked to make a down payment on a carpet installation job. And your house painter might reasonably request that you cover the expenses for paint, rollers and brushes before work begins.

But Tyson says there is no justification for covering all labor costs on any home improvement project before the work is satisfactorily completed.

"It's a massive mistake to pay for the entire project at the start. If you do, you give away all your bargaining leverage should the contractors botch the work and need to do it all over again," he says.

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

Sometimes people need to make a sudden change in their housing plans.

Take the true story of a couple in their early 60s, two elementary school teachers with grown children who'd planned to stay in their sprawling cedar-sided contemporary house indefinitely. Because they'd intended to remain in their high-end neighborhood through their retirement years, they'd spent most of their retirement funds to pay for a pricey addition that included a first-floor master suite.

But they got a wake-up call after their first session with a financial planner. To save for retirement, he strongly recommended they sell their expensive house and move to a modest place with smaller mortgage payments. The couple concurred, deciding to act immediately.

While many are reluctant to trade down, it can help you streamline your material life because you'll have to purge yourself of clutter to fit into a smaller place. And liberation from excess possessions brings a surprising sense of clarity for many people.

In a smaller home, you have fewer upkeep demands, including less yard work and housecleaning. And most importantly, freedom from high monthly mortgage payments can relieve a lot of stress.

Of course, as Ashley Richardson, a longtime real estate agent affiliated with the Council of Residential Specialists (crs.com) notes, there are also drawbacks to an involuntary home sale. You may need to leave a neighborhood where you've known people for years. Also, those who must sell for financial reasons often lack funds for the kinds of pre-sale fix-ups that would yield them the best possible price.

But no matter the hardships of having to sell suddenly, you'll fare better if you take a proactive approach. Here are a few pointers:

-- Don't let regrets stall your forward movement.

Sid Davis, a real estate broker and author of "A Survival Guide for Selling a Home" says many people with mortgage problems delay making the tough decision to sell their home, hoping a miracle will let them keep the place. But it's a bad idea.

"Time is definitely not in your favor," Davis says.

Perhaps the value of your home has slipped below the outstanding balance on your mortgage. This means you'll have to write a check at closing to complete a sales transaction, a step that could be worth taking as opposed to letting your lender foreclose.

"Most people who walk away from their home and let their property go into foreclosure find that their credit is ruined. That usually means they'll be barred for several years from purchasing another property, even a much smaller one," Davis says.

-- Visit communities where you could live after the sale.

One way to keep a positive outlook through an involuntary home sale is to begin investigating alternative neighborhoods where you might live, with the purpose of selecting the best option your pocketbook will realistically allow.

The main advantage of previewing communities early is that you'll have a tangible vision of where you're headed.

Even though Davis advocates that sudden movers start shopping for a new community as soon as possible, Davis urges them to resist the temptation to tour specific properties until a sale contract in hand.

"Why fall in love with that little vine-covered cottage before you're really free to buy it?" he says.

Yet by choosing your target neighborhood early in the process, you'll be prepped to immediately begin visiting specific homes in the new area as soon as the time is right.

-- Get to know residents in the community where you plan to live.

Even before you sell your current house, you can begin meeting people in your target neighborhood. As Davis says, developing a few fledgling friendships should help ease the emotional pain of your transition.

"It shouldn't be hard to get acquainted in the new area," Davis says. "One approach to making new friends is to volunteer for work with a local community group. Or you could attend services at a nearby church or synagogue."

-- Celebrate memories of a home where you've lived happily for years.

Davis says one good way to hang onto happy memories of your place is to stage a "farewell party" involving family and friends. Then during the party, take photos in your favorite settings.

Looking back at these photos should help you realize that those who truly care about you won't abandon you just because you must move to a less prestigious area.

"People forced to leave their mini-mansion for cheaper quarters should remember their core values and the people who matter most to them," Davis says.

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