Smart Moves

After chemotherapy and radiation for her breast cancer, a magazine designer in her 50s needed an emotional pick-me-up. Fulfilling a long-standing dream, she settled on a cosmetic makeover for her historic Baltimore townhouse, including a minor kitchen remodeling plan.

The makeover did indeed cheer the magazine designer, who achieved a full recovery from her cancer. Three years later, the moderately priced renovation also paid off financially for the woman, who put her place up for sale to take a new job in Connecticut. The well-chosen interior upgrades, including freshly painted rooms and new kitchen appliances, led to strong multiple offers and a prompt closing.

Ashley Richardson, a Maryland real estate agent who sells property through the Long & Foster realty firm, doesn’t know the woman in this true story. But she applauds her for doing her interior improvements. That way, she could enjoy the pleasures of living with the upgrades before she moved.

“So often, sellers regret they didn’t get the chance to benefit from improvements they paid for,” says Richardson, who’s affiliated with the Residential Real Estate Council (crs.com).

But Sid Davis, a Utah-based real estate broker, cautions homeowners against excessive spending on upgrades.

“You’ll never recoup your money if you make your house a lot ritzier than your neighbors’ properties. For instance, you don’t want to pay for high-end quartz kitchen countertops if you’re living in the land of laminate,” says Davis, author of “A Survival Guide to Selling a Home.”

Here are a few other pointers for sellers:

-- Attempt to determine your home-selling timeline in advance.

Many sellers want to close a deal quite quickly. Perhaps they’re facing a serious health issue that requires a move to assisted living. Or maybe a divorce court is demanding they liquidate. Yet other sellers are unsure on timing.

Those in a quandary on their selling plans should try to crystallize their thinking -- with pen and paper -- before embarking on a redo of their property.

“Suppose you know you’ll retire eventually and let go of your house. If you clarify your plans and decide it will be six years before you move, you’ll want to prioritize the improvements you’d most enjoy in the meantime, like better kitchen countertops,” Davis says.

-- Don’t hesitate to consult real estate pros well in advance of a move.

Suppose you intend to downsize and sell several years in the future. Is it too soon to ask real estate agents for their advice?

No, says Dorcas Helfant, a former president of the National Association of Realtors (realtor.org).

“The best real estate agents aren’t looking for quick sales. They get most of their business through referrals and know that relationships with clients develop over time,” says Helfant, a broker who co-owns several Coldwell Banker real estate offices in Virginia.

She suggests you invite one or more agents over to evaluate your property, helping you create a checklist of superficial changes that could make your place a lot more appealing.

Cosmetic improvements, like painting or carpet replacement, are nearly always well worth the cost. Still, Helfant says you may need guidance in other areas, such as whether you should replace kitchen appliances with professional-grade ones.

-- Select home improvement contractors with great care.

For any given job, homeowners typically ask for three bids on the work and then pick the company charging least. But Davis questions this approach, noting that “short bidders,” who come in well under their competitors, often perform poorly, or will tack on extra charges at the end.

“Ironically, the company with the highest bid could also prove problematic. Maybe this firm is now too busy to take your job and is using a high bid to turn you down without creating ill will in the process,” Davis says.

Unless all three bidders are close in price, he says the middle one is generally your best choice.

-- Hire a home inspector to search for functional problems.

Most homeowners can readily identify minor items that need fixing around their place, such as a leaky faucet or a shaky stair railing. But what about hidden problems with plumbing, electrical, heating or cooling systems? And has the roof reached the end of its functional life?

These questions are best answered by a qualified home inspector. To avoid surprises later, Davis advocates that sellers arrange for a “pre-inspection” to get an early indication of hidden problems. He recommends you find an inspector in your area through a professional organization, such as the American Society of Home Inspectors (homeinspector.org).

The cost of an inspection can easily run to several hundred dollars, especially for a large home. But as Davis says, sellers who identify and resolve repair issues early often avoid expensive and time-consuming complications later. Your buyers are still entitled to hire their own inspector, yet many waive this right after reviewing the first inspector’s report, along with receipts showing all the home’s problems were rectified.

“Surprisingly, your inspectors’ report can be a powerful tool in marketing your property,” Davis says.

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

Bill Gassett, a longtime real estate agent and blogger who’s persevered through many market cycles, has a message for home sellers this fall: Don’t be complacent.

“A lot of sellers, including those with a vacant property, are under the misguided perception that everything is rosy. But all the economic indicators are screaming that there’s real cause for concern,” says Gassett, who’s sold homes since 1986.

No, Gassett isn’t predicting the kind of foreclosure crisis that rocked housing markets just over a decade ago. Indeed, he isn’t even forecasting a buyer’s market. But he urges current sellers to avoid the self-defeating strategy of trying to “test the market” with a price any higher than recent sales have yielded for comparable properties in the same neighborhood.

“If you start with too high a price in September or October, your house could still be sitting unsold during the slowest months of the year, November through January,” says Gassett, who’s affiliated with the Re/Max realty chain in Massachusetts.

Accurate pricing is especially crucial for those attempting to sell a vacant home, which can prove challenging.

Why is it often harder to sell a vacant home than one pleasingly furnished? Eric Tyson, a consumer advocate and co-author of “House Selling for Dummies,” says empty properties can convey an icy feeling to visitors.

“This makes it extremely hard for buyers to picture living there,” he says.

As Tyson says, it’s often wise for the owners of a vacant home to spend a few thousand dollars on cosmetic upgrades. Also, he suggests they consider engaging the services of a “home stager.” This is a design-oriented professional who can lend the sellers a few key furnishings.

“You don’t need many items to make a vacant house look a lot better. For example, just a few pieces of well-positioned furniture, along with some colorful area rugs, can make it seem a lot warmer,” says Tyson, who’s based in Connecticut.

Here are a few pointers for the sellers of a vacant home:

-- Fix any blemishes in your vacant place.

Sid Davis, the author of “A Survival Guide to Selling a Home,” says it’s crucial for the sellers of a vacant property to enter the market in immaculate condition. This means they must resolve all the minor issues, so buyers won’t remember the stains on the carpet, the marks on the hardwood floors or the dings on the walls.

“It’s absolutely essential that you paint all the interior walls before the house goes up for sale. Use a light, neutral tone. I don’t care what the paint companies tell you. You can’t patch paint and make it look right, due to fading,” Davis says.

He also urges the owners of vacant homes to replace worn carpet and refinish (or replace) hardwood floors that need work. In addition, fix any unsightly areas visitors might encounter, such as a rusty spot around a bathroom leak.

“Go room-by-room with a clipboard and then make sure you handle every little unattractive thing. Otherwise, buyers could be blinded to the beauty of your house by the small stuff,” Davis says.

-- Position a few pieces of furniture in your vacant home.

Many “lived in” homes are overflowing with excess furnishings, making the preparation for the selling period one in which listing agents urge clients to declutter.

Ironically, the problem with a vacant home is just the opposite. It needs a few well-chosen furnishings so that would-be buyers can see the scale of its rooms.

Of course, you can always rent or buy furniture to outfit a vacant home. But Tyson recommends that a better solution could be to hire a professional home stager to lend you the “props” you need to stage your place thoughtfully.

“People balk at the idea of hiring a stager. But when you’re trying to sell a vacant house, paying for minimal staging could be money well spent,” he says.

Your listing agent may have good leads on the names of professional stagers in your area. Or you could consult the Real Estate Staging Association (realestatestagingassociation.com). Another option is to find an Interior Redesign Industry Specialist through the website weredesign.com.

-- Maintain your vacant home in showtime condition.

Real estate agents like that vacant properties are so convenient to show, without the need for complicated arrangements with the family living there.

“In my book, it’s a plus to agents that a vacant home can be shown whenever they like. But this accessibility is only a positive if its owners, and their listing agent, keep the place in excellent condition,” Davis says.

How can you ensure that your vacant property will keep looking its best until the day it sells? Davis suggests you hire a local teenager to handle the mail, newspapers and routine yardwork. But he also urges you to ensure that the listing agent you engage keeps a close eye on the property.

“Your agent should commit to checking out your vacant home at least once per week and preferably twice. And make sure you get that promise in writing before you sign the listing agreement,” Davis says.

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

Mortgage rates have dropped to breathtakingly low levels. That’s tempting many wannabe homebuyers to rush into purchasing mode. But housing experts urge buyers of retirement age to proceed especially cautiously.

“Waiting until the winter might make sense,” says Todd Teta, a senior official at Attom Data Solutions (attomdata.com), a national real estate analytics firm based in California. “Winter is when the buyer pool shrinks and homes have been sitting on the market a bit.”

Compared to younger buyers with school-age children and active employment, retirees are typically better able to align the timing of a home purchase to their lifestyle priorities. That frees them from the pressure to buy prematurely.

Another reason why older buyers can proceed at their own pace is that mortgage rates are unlikely to rise significantly in coming months, despite economic uncertainties.

Financial advisers encourage buyers of retirement age to make a property purchase only after considering the ramifications for their overall financial plans.

Spencer Sherman, the CEO of a financial advisory firm, says older buyers should avoid depleting their retirement savings when deciding how much to spend on a property.

“Diversification of assets is really the name of the game,” says Sherman, the author of “The Cure for Money Madness.”

As an older homebuyer, how can you determine your affordability limits? Here are a few pointers:

-- Take the time to do a careful analysis of your financial situation.

In the past, many people made home-buying decisions in isolation, without first analyzing how their mortgage payments would fit in with a comprehensive financial plan. But moving forward without a holistic examination of your finances could result in serious missteps.

Obviously, one way to develop a broad plan is with the help of a financial adviser. If you choose that avenue, look for a planner willing to work within a limited time frame and to accept payment on an hourly basis, says Eric Tyson, author of “Personal Finance for Dummies.”

When hiring a planner, Tyson says it’s also wise to select someone who is compensated on a “fee-only” basis, meaning he or she doesn’t receive commissions by selling you stocks, bonds or insurance products.

One way to find such a fee-only adviser in your area is to go through the National Association of Personal Financial Advisors (napfa.org).

-- Reduce your outlays for financial advice by doing prep work yourselves.

One basic step toward the creation of a solid financial plan involves an analysis of your spending patterns. You need to know how much it costs you to live, both in terms of mandatory expenses (like health insurance premiums) and discretionary outlays (like restaurant tabs).

Unless you routinely track these statistics (whether with a notebook or a personal finance management tool, such as Quicken), assembling this information can be time-consuming. To avoid paying an adviser to assist with this grunt work, Tyson suggests you pull out your checkbook and credit card statements and tabulate the numbers before arriving at your planner’s office.

Those in their 50s and 60s who are considering a home purchase may also wish to prepare for a financial planning visit through the use of online retirement income calculators. Tyson recommends the free online calculators available through such investment firms as T. Rowe Price (troweprice.com), Vanguard (vanguard.com) and Fidelity (fidelity.com).

Retirement calculators can help you estimate how much you’re likely to have available to spend each month in retirement, the likelihood your savings will last through your retirement years and what you’ll need to do to make up for potential shortfalls.

-- Try to avoid overestimating future home value appreciation.

Sherman says many people in their 50s through 70s still have “a cultural bias toward buying real estate.”

Although he believes that any home located in a popular neighborhood will likely continue to appreciate in coming years, he argues against real estate as the centerpiece of any retirement plan. Also, he projects a slowdown in home price gains.

“Don’t expect home values to gallop along. In the future, they’ll probably plod along just a few percentage points ahead of the rate of inflation,” he says.

-- Factor personal preferences into the selection of a home.

Retirees wishing to make a move-up home purchase without sacrificing their future plans need to take into account their expectations for a satisfying retirement, says Darrell Kingsland, a 40-year veteran of the financial planning field.

Through the years, Kingsland has noticed that his clients vary widely in terms of retirement expectations. Some want to take exotic vacations and pursue expensive hobbies, while others intend to spend modestly. Some plan to continue working part-time as long as possible, while others would like to give up work altogether.

As an older homebuyer, why are your lifestyle expectations relevant to the housing decisions? Because your living standard could be a major factor in how much you can afford to pay for housing.

“Before buying a house, you’d better look at the big financial picture for your life, or you could develop a serious case of buyer’s remorse,” Kingsland says.

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