Smart Moves

It was a forgettable cottage in a ho-hum neighborhood surrounded by other starter homes. But a builder bought the property with the intention of renovating it to flip it and make a bundle on its sale.

Assisted by his interior designer wife, the man installed fine hand-painted marble tile from Italy in the kitchen, along with pricey professional appliances from New Zealand. He also spent a small fortune on exquisite lighting fixtures throughout the house.

By the time the renovation was done, the builder had nearly doubled his initial investment, counting the purchase price. But his attempts to recoup the money failed miserably. After the place languished unsold for many months, he pulled it off the market rather than take a big loss.

“The man was trigger-happy when it came to upgrades. Though his renovations were tasteful, he spent way more than he could ever hope to receive on the sale. He overshot the neighborhood’s standards and simply priced himself over the market,” says Stacy Berman, the listing agent for the property.

Berman, who long managed a realty firm in Washington, D.C., says it’s not only flippers who sometimes spend too much for improvements in hopes of promoting a sale. Occasionally, owner-occupants make the same mistake.

“The moral of the story is that as a seller you want to be particularly cautious about how you invest your pre-sale dollars. You want to spend what’s necessary to make your place show-worthy and in good repair. But you don’t want to overspend on super-high-end improvements that will never pay you back,” Berman says.

How can you determine which upgrades to make? The best approach is to get multiple opinions from real estate agents in advance of doing any renovation work, says Sid Davis, author of “A Survival Guide to Selling a Home.”

Davis, a veteran real estate broker in Utah, says it’s also wise to assess your competition prior to pouring any money into improvements.

“Go around and visit all the other for-sale houses in your immediate area as if you were a buyer ... make sure your home meets the neighborhood’s standards, though without going way over the top,” Davis says.

Here are a few other pointers for sellers:

-- Avoid getting carried away with fancy kitchen improvements.

For sellers, the road to overspending is paved with good intentions. Owners are especially likely to veer off course on kitchen improvements.

Davis says most sellers don’t need to tear out and replace their worn kitchen cabinets, only the cabinet doors. Or, if that’s not a feasible solution, they can freshen their kitchen’s look by sanding and repainting their cabinets in a high-gloss white.

-- Focus on painting high-exposure areas.

Seasoned real estate agents are nearly universal in their appreciation of a newly repainted home. Painting is one of the most cost-effective improvements sellers can do, says Elisa Dewees, a North Carolina-based broker who coaches other real estate professionals.

“People don’t want to see your favorite colors, whether they’re pink, purple or blue. But a nice neutral tone will help them imagine living in your home,” she says.

-- Illuminate your bathrooms.

Many people who’ve lived in their home for a decade or longer still have the original light fixtures in their bathrooms, even if they’ve updated their tile work, cabinets and faucets.

But the multiple-bulb Hollywood-style lighting that many people still use in their bathrooms doesn’t appeal to most contemporary buyers, who want a fresher, less retro look.

“Search for lighting fixtures that are more stylish. In many cases, you can upgrade your fixtures for $50 to $100 per bathroom,” Dewees says.

-- Refresh your carpeting.

Many sellers would rather offer buyers a “carpeting allowance” than replace worn, stained or outdated-looking carpet. These sellers argue that it’s “inconvenient” for them to undertake the project themselves.

But real estate agents scoff at the idea of using a carpeting allowance, which they say undermines the sellers’ prospects for a successful sale. That’s because few buyers can envision how much better a home will look when its bad carpeting is replaced.

“If you have an average house, replacing your carpet will cost you a couple of thousand dollars at most. But if you opt instead for a carpet allowance, buyers will assume it will cost them multiple times that,” Dewees says, noting that a growing number of buyers will refuse any property that’s not in move-in condition.

Can’t afford new carpeting for the whole house? Then focus on the areas that are most visible to visitors.

“If you can impress buyers with great carpet on the first floor, they might be more forgiving about your poor carpet on the second floor,” Dewees says.

-- Take out any greenery that shrouds your property.

Many longtime owners are loath to touch the trees that grow in their front lawn. Even if their trees now dwarf their property or have grown perilously close to the house, they’ll resist cutting them down.

But given that curb appeal is paramount, Davis urges sellers to spend as much as necessary to remove any tree that hides their property. Otherwise, he says many buyers will summarily reject their home based solely on how it looks from the street.

“If they can’t see a house, they’ll never buy it,” he says.

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

For financial and personal reasons, a Minnesota widow in her late 60s must downsize from the huge cedar-sided contemporary she and her late husband built more than two decades ago. But the idea of prepping the place for market fills her with angst.

The problem? Every room in the house is crammed with clutter. And confronting the monumental organizational tasks involved in decluttering feels especially overwhelming for the widow because she suffers from Attention Deficit Disorder (ADD).

For many with ADD, the process of preparing a home for sale and making a housing transition requires a support system to pursue the work systematically, says Linda Anderson, who heads a Pennsylvania-based firm that assists adults with ADD (gettingclear.com). She doesn’t know the widow in this true story. But she’s worked with many clients attempting to cope in similar situations.

“Moving is a huge problem for those with ADD. It’s terribly important for them to connect and reconnect with people throughout the process,” says Anderson, who works as a life coach assisting adults trying to cope with ADD in their daily lives.

A life coach who is knowledgeable about ADD can help people with organizational issues to create a realistic timetable and a plan of action to help ensure a smooth housing transition.

Here are a few tips for would-be sellers with ADD:

-- Weigh the idea of hiring a professional organizer or “move manager.”

Judy Rough, a Colorado-based professional organizer who primarily advises seniors, says people with ADD should be careful whom they ask for help.

“It’s horrific to hire someone who is judgmental. We all remember how upsetting it was when we were kids and a teacher or counselor was critical. And it’s no different when you’re an adult,” says Rough, who’s affiliated with the National Association of Productivity & Organizing Professionals (napo.net).

By visiting this association’s website, you can find an organizer in your area who’s skilled in assisting clients with ADD. Another way to locate help is by connecting with the National Association of Senior Move Managers (nasmm.org). This organization specializes in assisting older people who must downsize. But move managers can assist people of any age to take control of a housing transition.

Finding a personal assistant to help with any major project -- known in the organizational field as “body doubling” -- is especially important for people with ADD.

-- Remain laser-focused on your tasks to the extent possible.

Although people with ADD face many challenges in attempting to execute a home sale and move, Anderson says most can capitalize on their strengths to help ensure that the work gets done.

“My clients have many positive attributes, like creativity. And many are very energetic -- though their energy typically comes in spurts,” Anderson says.

But because her clients have so much difficulty staying focused and bringing a task to completion, she’s developed several time- and attention-management techniques to help them face the tasks involved in any major project.

To avoid burnout, she suggests that anyone involved in a major house project give themselves frequent (though brief) breaks from the laborious work.

“Boring, repetitive work puts the ADD brain to sleep. But short breaks can help keep momentum up,” Anderson says.

-- Try to gain traction through exercise.

One problem that often affects many people with ADD is gaining the momentum to launch into a new task.

Anderson recommends that those who find themselves in this conundrum start their day with some vigorous exercise -- like a fast-paced walk through their neighborhood.

“Exercise is a big help in stimulating the brain into action. Rhythmic music can also prove useful,” she says.

If you find yourself working alone and unable to stay on track, consider asking a neighbor or friend to step in, if only until you can get your work started.

-- Allow sufficient time for all your tasks.

In setting a schedule for the work involved in a housing transition, Anderson advises her clients to set reasonable deadlines and resist the temptation to cram too much into any given day.

In addition to the customary “to do list,” one tool Anderson favors is a “not to do list.” When you reduce the expectations you set for yourself, you also reduce your level of anxiety and get more done.

“Problems with anxiety often accompany ADD, and anxiety can interfere with your work,” she says.

How do you use a “not to do list?” On a day when you must paint a bathroom, for instance, it could be wise to place grocery shopping or oven cleaning on your “not to do list.” This will free your mind from the temptation to pack too much into your day.

Even those who normally enjoy an extraordinary capacity to resist distraction can find the extra work involved in a major housing transition taxing.

“Remember that if you’re feeling stressed by all the things you have to do to get moved, you’re not alone. Nowadays with so many demands on us ... most of us feel overwhelmed a lot of the time. And this is all the more so when we have to move,” Anderson says.

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

As summer rolls ahead, most potential homebuyers are in an expansive mood. That’s because, contrary to economic forecasts of some months ago, mortgage rates have again dipped to near historic lows. Meanwhile, employment levels are strong.

But Tom Early, a veteran real estate broker in Ohio, says one category of would-be buyers -- those who are single -- remain somewhat more cautious than couples about buying a home.

“Relying on just one salary to meet mortgage payments can seem scary because it exposes you to more risk in the event of default. Singles know they’d be a lot more vulnerable if the country hits another recession,” says Early, a former president of the National Association of Exclusive Buyer Agents (naeba.org).

Still, there are solid reasons for singles to move toward a home purchase in the near future. One major factor is that renters in many popular areas are now especially susceptible to rising rents.

Arlen Olberding, a certified financial planner based in Colorado, doesn’t necessarily advise all his single clients to pursue a home purchase. He reminds them that there’s relatively little reason to expect significant home price appreciation in the next several years.

“First and foremost, buying a home now should be the right lifestyle decision for you. Think of it less as an investment choice and more as a living expense,” he says.

Here are a few pointers for singles who are determined to buy this year:

-- Pick a property that keeps you within your financial comfort zone.

Many people who faced foreclosure during the last recession were first-time buyers who used an adjustable rate mortgage (ARM) to finance their purchase. They were able to qualify for the introductory “teaser rate” on the home loan. But once the ARM adjusted upward, they were in over their heads.

They might have avoided foreclosure had they used a fixed-rate loan, says Merrill Ottwein, the broker-owner of an Illinois-based realty firm.

Ottwein cautions all buyers -- especially young singles -- against taking any mortgage (fixed or adjustable) that feels uncomfortably large.

“Decide on your affordability target right from the start -- before you go home shopping. After that, don’t let your real estate agent or lender inch you up above your comfort zone,” Ottwein says.

Even now, in an era of tight credit standards, he says it’s possible for qualified buyers to gain approval for a larger mortgage than they can reasonably handle.

“Being ‘house poor’ causes lots of fear and anxiety. It’s an awful way to live,” Ottwein says.

-- Screen for a home that a roommate could share.

If you shared space with roommates in a college dorm, you may be in no mood to repeat the experience in your own home. Still, as a young single, Ottwein encourages you to seek a property that would be attractive to a potential boarder, should you one day need the rental income to help cover your mortgage payments.

“Having an extra bedroom for a roommate can be a way to make ends meet if you find yourself in a financial pinch. Also, a house with two or, ideally, three bedrooms will be easier to sell when you decide to do so,” Ottwein says.

What type of home works best for accommodating a roommate? Ottwein suggests you look for a place with a bedroom suite that includes a private bath, so a roommate could live there more independently. Also, a separate, outside entrance to the suite is ideal.

-- Choose an energy-efficient place.

Once they’ve moved in, many first-time buyers are surprised by the size of their home upkeep expenses. The size of their energy bills also comes as a shock.

Obviously, some costs associated with homeownership -- such as taxes and insurance -- are unavoidable. But home shoppers can more easily contain their energy expenses by choosing a property that’s well-insulated and has substantial double-pane windows, Ottwein says.

“Be sure to ask the home inspector you hire to evaluate the energy efficiency of any property you plan to buy in advance of a final commitment for its purchase,” he says.

-- Remember to factor your social life into your property selection.

If you’re like most singles, your personal life is of paramount importance to you. And even though you may outpace your friends in achieving homeownership, you won’t want your move to make it tough to see them.

You don’t have to live in the immediate vicinity of your friends to stay in touch. But if possible, you’ll want to avoid buying a property many miles from your closest friends, even if that’s the most affordable option.

“When you’re moving ahead with homeownership, be sure not to break the bonds of friendship. Buying a house is an important priority, but so is keeping those friends who are tried and true,” Ottwein says.

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