Nolo’s Real Estate Tips for Home Buyers

Continuing on with the theme of popular culture depictions of real estate (my last blog posting sent you to David Letterman's Top Ten List), I hope you took note that home staging has truly "arrived" -- it made it onto The Simpsons!
 
That's right, in the episode that aired last Sunday, the town of Springfield was in financial crisis, and the house next door to the Simpson's was put on the market -- by just one of the many families moving to Detroit "in search of a better life."
 
Bart and Lisa soon notice delicious aromas of baking cookies wafting their way. But sensible Marge assures them that this is just a ploy by the sellers to make people subconsciously want to buy the house. Bart wonders, "What kind of a big fat moron would fall for that?"
 
Enter Homer Simpson, zombie-like, moaning, "Cookies! Must buy house!" He follows that with a litany of lines like, "Get loan preapproved," "Offer over asking," and "waive inspections," but I may not have the lines exactly right, since I can watch this episode only so many times at the office without others wanting to trade their jobs for mine.
 
But you can watch the whole thing, at Hulu.
 
Be sure to hang in their for the next best line in the episode -- when Bart introduces himself to the neighbor, saying, "You've no doubt read about me on your nuisance neighbor disclosure."

If you're a seller looking for more information on staging, check out Nolo's article, "Should You Hire a Home Stager?". 
 
 

It has happened to some homebuyers; the neighbors turn out to be NOT WHO THEY APPEARED TO BE. Luckily, late-night host David Letterman has supplied this handy list of Top Ten Signs That Your Neighbor is a Russian spy. Yup, if your mail carriers keep mysteriously dying of polonium poisoning, you just might want to investigate further.

On a more serious note, when home shopping, it's worth asking both the home seller and passersby you meet in the neighborhood about your neighbors' personalities and activities before you close the deal. Some states' disclosure forms will ask the seller to provide potentially neighbor-related information, such as local nuisances or legal disputes concerning the property. But others leave it to up the up to the seller's conscience as to whether they fill in the "Other" box.

There's nothing to stop you from knocking on your potential new neighbors' doors, introducing yourself, and taking your own measure of their personalities. In most cases, a Russian accent means you should look forward to some pleasant evenings over borscht, blini, or vodka. But, as Letterman warns, think twice if they hand you a business card where "Russian Spy" is crossed out and "Landscaper" is scribbled in . . .  .

For more information on checking out the neighborhood and the neighbors when choosing a new place to call your own, see Nolo's Essential Guide to Buying Your First Home.

The sun is shining, you're hoping to buy a new house -- but you're stuck at your desk, and haven't seen an open house sign in your neighborhood in weeks. Here's some diversion while you wait: a new article on Nolo's website, "Online Fun for Home Buyers." 

This isn't an idle question on my part -- having just bought and moved into a new house with almost no advance planning, I've got piles of things that seem just a little too valuable to drop off at Goodwill (where I've already taken carloads of stuff).

So, I'll probably give them a try on Craiglist, and then have a garage sale one of these Sundays -- knowing full well that I'll probably get no more than $10 for any of the items in question.

If I work out how many hours I'll likely spend, first on posting the items online, answering emails or calls, meeting potential buyers, and then, for the garage sale,  attaching price tags, setting up, sitting outside in hopes of customers, and finally cleaning up afterwards, it's probably not worth the time at all. A savvy friend of mine likes to say that anything you can't sell for at least $50 bucks isn't worth the hours of effort (and sometimes aggravation) you'll put in. Probably sound advice -- which for some reason I probably won't take.

At least a garage sale might be a fun way to meet the new neighbors! And a few extra dollars wouldn't hurt right now, either.

In the meantime, I was interested to see Kiplinger's magazine provide a list -- in its March, 2010 issue -- of what items that might be sitting around in people's attics are selling best these days (particularly on eBay or Kovels.com).

According to them, boys' toys from the '50s and '60s are a good bet, along with art pottery, sterling silver from famous makers, Griswold cast-iron skillets and other kitchen ware from the '30s to '50s. But don't try selling Hummel or Royal Doulton figurines -- the market is saturated.

Wouldn't you know it? The only one of those things that I own is a Hummel figurine.   

The January 2010 issue of Smart Money magazine has a fascinating article on the impact that Internet sites such as Zillow have on negotiations over home prices.

When websites such as Zillow first rolled out their databases of comparable home prices -- where you can simply type in an address and get a "Zestimate" of the house's worth -- most industry experts thought it was cute, but essentially irrelevant.

No database that pulls together public sales records can, after all, incorporate knowledge of street desirability, views, charm, and other such factors that play into a buyer's willingness to pay more or less for a, say, "2 bedroom 1 bath." And pricing houses isn't an exact science, but depends on buyer psychology -- what the market will bear.

But what if buyer psychology is being molded by websites showing comparable values, so that the online data becomes a self-fulfilling prophecy? That's in essence what the Smart Money article is suggesting, with stories of deals going awry because the buyer insists that the house is worth no more than its Zestimate -- or being suspicious when the Zestimate is far higher than the list price.

What's a home seller to do? Start by looking at how your house fares on the online databases, then at what you can do to change it. Zillow does allow sellers to enter certain data about their home, such as renovations and home features, and add some descriptions to entice buyers. (You need to register, then enter your home address to get to its "detail page," then look for the tabs allowing you to edit the data.) I just did it for my house -- with no immediate changes to my Zestimate, but they warn that it may take some time. I'll check back in when I find out!

The "Green Guru" (Susan Cosier) of Audubon Magazine fielded an interesting question this month: A reader was curious about how to move in an environmentally friendly way.

Here's a quick summary of her fine suggestions:

• Look for moving companies that have incorporated green practices. For names, try the website of GreenMoversUSA.  The website's owner, Mark Ehrhardt of Brooklyn-based Movers Not Shakers, uses biodiesel trucks and reusable plastic packing containers.
  
• Apropos of the above, buy some plastic containers of your own for moving. (I find they're plenty handy after you've moved in, too.)
• If using cardboard containers, give them away for reuse afterwards, perhaps by advertising them in the "free" section of Craigslist.
  
• For packing materials, avoid styrofoam peanuts. Instead, choose recyclable or biodegradable materials like newspaper, cornstarch-based packing peanuts, or popcorn.
  
• If you're packing your own truck, fill it up to avoid multiple trips. This may involve pretending you're putting a puzzle together. Put the boxes on the bottom, before the furniture.

That's all -- but I'd be curious to hear whether readers have come up with other ideas!

I never thought I'd see the day when an IRS agent (who introduces himself as "Prince") would take to YouTube to promote a tax credit, but here it is. He doesn't really say much, but you can still help him become the next YouTube hit!

As long as you're house hunting, how about a little house dreaming? Prices on those luxury properties are lower than they've ever been, which can make the dreams seem almost real.

Fancy a castle? Check out www.castles-for-sale.com/buy/. Some of them cost less than a two-bedroom, one-bath house in San Francisco did just a couple of years ago! (But the heating bills will kill ya.)

Or how about your own island? See Private Islands Online. I see a little one in Scotland for only 65,000 Euro. (Then again, it looks like one wave could wash away anything you build there.)

And for general luxury everywhere, don't miss www.luxuryrealestate.com/. Let's see, should I search for "chateaus" or "estates?" What I could do with a few million dollars . . . .  

I love "best" lists, because they're usually:
1) short and snappy.
2) based on a decent amount of research, and
3) give you a sense (maybe artificial) that the world can be ranked in an orderly way.

And this seems to be the season for best lists. For example, Forbes magazine has named its ten best retirement spots. Yes, Florida is on there, but not in the first three, which include:
1) Montgomery County, Pennsylvania
2) Nassau County, New York, and
3) Pima County, Arizona.

U.S. News & World Report magazine has named its 2009 ten best places to live in the U.S. based on factors like strong economies, low costs of living, access to healthcare and education, and recreation. Its top three are:
1) Albuquerque, New Mexico
2) Auburn, Alabama, and
3) Austin, Texas.
(Apparently, use of the letter "A" in the name was a criterion as well.)

And not to be outdone, Kiplinger's magazine has named the ten top U.S. cities for stable employment and new career opportunities. Start packing your bags for:
1) Huntsville, Alabama
2) Albuquerque, New Mexico, or
3) Washington, D.C.

Hey, Albuquerque made two out of the three lists! Maybe I should start packing.

Thanks go to Money magazine's annual "Best List" for mentioning this website in its "Best Way Not to Sell Your House" category: Lovelylisting.com.

My coworkers have probably wondering why I've been giggling at my desk for the last ten minutes, and this is it. The website collects listing photos that would cause most home buyers to run in the other direction; you'll see photos dedicated to showing off giant cracks in the flooring, cleaning equipment seemingly tumbling down a steep staircase, obviously Photoshopped giant tulips in an otherwise drab yard, and more.

There were times when I was writing our recent book, Selling Your House in a Tough Market, that I worried our advice about making the place look good was too obvious to merit space on the page... but I've just put those fears to rest.