In the slow market conditions we see today, visual appeal can go a long way in attracting potential buyers. Staging a home or de-cluttering, de-personalizing, and redecorating so that the house itself and not the seller’s own lifestyle and tastes are on display can work wonders in ensuring a quick sale or a higher price for the home.
Home staging is about redecorating and rearranging, not remodeling. You shouldn’t be knocking down walls or even re-painting, although sometimes painting is an exception in the case of brazenly hued walls that may not be attractive to most of the general public. You want to make the home appear fairly generic so that it appeals to the largest number of individuals.
Professional stagers can be hired, usually charging per square foot of the home. Costs normally run from one to four thousand dollars depending on the size of the home and how extensive the redecorating needs to be. Or you may be able to purchase a list of do-it-yourself recommendations for one to two hundred dollars.
Marilyn Carpenter and Jan Pennington, professional stagers in Anchorage, Alaska get many of their staging items at garage sales and thrift stores. They even use air beds instead of real beds as they are easier to move and set up, just arranging comforters and pillows on top.
Keeping decorations neutral is key. If a seller is a photographer who displays nude art prints, it may be best to replace the art with a simple landscape painting or photo. Carpenter likes to leave a book on the bed or stack a few on shelves or tables giving the impression that the seller who lives there has time to read a good book. However, the books also should be neutral, nothing religious.
Of course, staging is not for everybody. Some people can’t afford it. Others don’t need it. Some homes you go into already look like a model home.
Sometimes, real estate agents pay for staging as part of their service. Other times, sellers spring for the service in order to get an edge on the competition.
If you are interested in staging your home to improve sale prospects, try some of the following tips:
· Clean, clean, clean – make the home as spotless as possible, clean windows, baseboards, the tub and tile. If a house is not clean, people will be more critical from the get-go.
· Make the rooms appear spacious - Don’t let the back of your couch be the first thing people see when they enter either the house or the living room.
· Remove clutter and personal items – such as magnets, photos and notes on the fridge and most items from kitchen and bathroom countertops. Hide your collectables and personal items. Also minimize furnishings so that it doesn’t dominate a room. You want to show off the home not the furnishings.
· Things show better in threes – group three candles on a mantle, three baskets on a shelf or three pillows on a couch.
· Keep the home light and airy – the more light the better, curtains and shades should be open when showing the home.
· Don’t forget the outside – take care of the lawn by mowing, trimming bushes, weed eating and possibly even planting some flowers. Some persons have dismissed homes without ever leaving their car. The outside of the home is the first impression they get
Naples Luxury Real Estate News
In the new housing bill recently signed into law is a complex tax code change that could affect persons who purchase second homes or rental investments that may become a main residence in the next ten years. The bill narrows the use of the code’s tax-free exclusion that allows sellers of primary residences to avoid taxation on the first $500,000 of their profit for married joint-filers or $250,000 for single filers. There is now a distinction between “non-qualified” periods of rental or investment use and “qualified” periods of principal residence use. The new housing bill is calling this a “revenue offset” and it allows the government to generate an additional 1.4 billion dollars in the next ten years.
Current Law
Under the current law, homeowners selling a property can claim the full tax exclusion if they have used a property as their primary residence for two of the last five years prior to selling. They can also claim the exclusion if they convert a rental or vacation property into their primary residence and live there at least two of the past five years before selling.
This ability was beneficial to owners of multiple dwellings, especially during the recent housing bubble when home values skyrocketed across the country. Home owners were able to sell their main residence with the first $250,000 to $500,000 tax-free and then move into the rental or vacation home and repeat the process giving them huge profits.
New Law
The new law takes effect for home purchases on or after January 1, 2009. If you purchase a new home or investment property on or after Jan. 1, then later make it your primary residence and then sell it, allocation of gains from the sale between periods of qualified and non-qualified usage must be made. Rental or second home usage prior to 2009 will not be considered non-qualified usage when you make your equation.
The minimum period for qualified primary residence use remains two years out of five prior to sale. All non-qualified use will be added up and limit the amount of tax-free exclusion allowed. If you want to sell a property that was a prior rental or vacation home and then made a primary residence, you will need to create a fraction against which to multiply the total gain. The numerator (top number) is the time period the house was not used as a primary residence. The denominator (bottom number) is the total period of ownership.
For example, you are a single tax filer and buy a home after Jan. 1 for $500,000. It is used as a rental property for two years. After the rental period, you convert it into your primary residence for another two years. You then move out, place the property for sale, and it sells one year later for $750,000. The two years you used the home as a primary residence qualifies you for some tax-free exclusion on the $250,000 gain. To determine the amount that you can claim tax exemption:
Divide the period of non-qualified use (two rental years) by the total five year period of ownership. You then multiply that fraction (in this case two-fifths or 40 percent) against your total gain of $250,000. The resulting equation is the amount that is subject to capital gains taxation. In this case it is $100,000. The remaining amount (150,000) would be tax-free.
A special team of economists using a variety of forecasting models have concluded that any future declines in housing prices will likely remain small. The economists include professors from Columbia University and the Center for Real Estate at Wichita State University, Kansas.
What led them to this conclusion?
The housing price index of Standard & Poor’s/Case-Shiller gave some extreme figures, but the economists called this index faulty as it excluded data from 13 states and only gave partial coverage of 29 others. Therefore, an accurate reflection of middle-market home ownership could not be obtained using their model.
They determined that the house price index of the Office of Federal Housing Enterprise (OFHEO) is most realistic of all the available models. OFHEO’s data shows only four states that have had pricing declines of more than 4 percent over the past year. Using a model based on OFHEO’s price index, foreclosures and home sales, permits and employment information and current economic data, the economic team concluded that predictions of further large housing price declines are greatly overblown.
“Our analysis reveals, unsurprisingly, that foreclosures and home prices have negative effects on each other over time, but this does not imply a vicious cycle of collapsing prices. Our models predict that as foreclosures continue to climb in many states, house prices will remain flat or decline in those states - but will not collapse.
“One reason for this is that the effect of foreclosure shocks on real estate house prices is small. Furthermore, other fundamental factors (such as employment growth and a slowing of the growth of the housing supply over the past year and a half) will cushion the impact of foreclosures,” the economic team said.
What does this mean for you?
We are still in a real estate buyer’s market nationally. Declines in prices are likely to be fairly insignificant and interest rates are still low but expected to rise in the next year. There is a large inventory of homes on the real estate market, giving home buyer’s a lot of choices. Now may be the perfect time to purchase the house of your dreams in sunny Naples, Florida.
Source: The Washington Post, Charles W. Calomiris, Stanley D. Longhofer and William Miles
Take a stroll down Third Street in the center of historic Naples and enjoy a variety of free performances including live music.
Location: Third Street South
Naples, FL 34102
Hours: Please call
Admission: FREE
Contact: (239) 434-6533
Each even numbered year, the Naples Art Association highlights the creations of its own faculty instructors. This year’s exhibit features works by 26 current teachers in ceramics, drawing, painting, photography, mixed media and more.
Location:
The von Liebig Art Center
585 Park Street
Naples, FL 34102
Hours: Please call
Admission: FREE
Contact: (239) 262-6517
Enjoy delightful sidewalk entertainment, shopping and dining in the heart of Naples, presented by the Downtown Naples Association.
Location:
5th Ave S
Naples, FL 34102
Hours: 6:30 pm – 9:30 pm
Admission: FREE
Contact: (239) 435-3742
We Live in an Amazing Country and an Amazing Destination
How did you enjoy the recent Fourth of July celebration? Spectacular this year, wasn’t it? It seems like each year is better than the one before. Independence Day reminds us to be grateful and cherish our freedoms that have been won for us by our forefathers. I just finished watching a mini series called John Adams and I was again struck by how much of a visionary he and his fellow patriots were over two hundred years ago in forming our country. It really is amazing! When I think of all of the freedoms we really do have in this country and so many take for granted, one of the closest to my heart is the freedom to own property and build wealth. We live in one of the most sought after and beautiful places in the world, and other people DO want to live here too, in spite of the media bashing about how terrible real estate is. Frankly, I am tired of it.
What is the Current State of our Real Estate Market Here in Naples Florida?
The fact is, homes are selling in our area. Yes, we have a surplus of inventory. Yes, market time to accomplish a sale is longer in general (versus what? flying off the shelf within minutes of the ink drying on the listing?) Give me a break. Yes, loan requirements are tighter and there are more foreclosures, short sales and inexpensive rentals. But if you take a look beyond the national headlines to what is happening in Naples, our local housing market is not a “bust”, “collapse”, “meltdown”, or “crash” with no sales. In reality, well-priced properties that are in great condition and staged to present to the market are still selling (e-mail me at requests@joellennash.com if you want the latest sales figures for your neighborhood). If you wait to buy, you will simply miss out on these good values.
If you study the demographics for Naples buyers, you will see that buyer demand is increasing because our market continues to attract the pent-up “should-have-moved” locals who put off moving in recent years; baby boomers with equity looking for second homes; international buyers who see good values in the market place and can buy twice as much for their dollar; first-timers with parent and grandparent support; long-term investors with a goal to “buy low, sell high” in a few years. The smart buyers are getting off the fence and buying NOW while the opportunity is ripe!
In addition, let’s not forget about interest rates, which also make a HUGE difference! Even though rates are still historically low, demand is what makes home prices stabilize, demand makes sellers less willing to negotiate and demand pushes interest rates higher. If you wait to buy and demand goes up, interest rates will follow. When that happens, the higher rates you will pay may eliminate any savings you may gain from buying at a lower price. If you are affected, temporary increases of jumbo loan limits to $729,750 will expire on December 31, 2008.
What is the Bottom Line for our Naples Real Estate Market?
So, the bottom line is, don’t wait to buy because of the real estate market. The best time to buy is now, as long as you’re buying the right home, at the right price and on the right terms. Give me a call at 239-692-8174 if I can be of assistance.
Second Half Forecast by NAR Looks Good for Naples Florida Real Estate
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Although records from the National Association of Realtors (NAR) are reporting declines around the country, recent feedback is still good overall. According to Lawrence Yen, a chief economist for the NAR it is just another reminder that the real estate market is still on shaky ground. However, he also says a little decline at the tail end of the recent upturn in the real estate market is just par for the course. Location as usual in real estate is everything. Some areas are still seeing huge increases in sales, as much as double what they were just one year ago.
What Does this Spell for the Naples Florida Real Estate Market?
Right now business in Naples Florida is booming compared to where we were last year, making it a great place to invest. People are viewing Naples waterfront properties and are buying them. Those who came to Naples Florida last year and were scared off by the real estate market slowdown at that time have returned to the beautiful place they remember and they want to live here.
What Real Estate Markets Are Really Booming?
Real estate markets like Sacramento, CA; and Colorado Springs, CO are seeing double-digit increases in market sales. If you or someone you know is interested buying or selling real estate in Colorado or California, or anywhere in the country, please let me know. I work with the best in the business and can refer you to an excellent Realtor in your favorite area.
How is the National Real Estate Market Faring?
Not all real estate markets are as fortunate. As a whole, the Southern states are seeing a decrease of 22.1 percent from last year. The Northeast is 16.4 percent from last year, and the Midwestern states are down 13.8 percent.
Overall, it is a buyer’s market for most of the country right now. That is due simply to the number of homes currently on the market, many from bank foreclosure. After several years of over-inflated lows, now we are finally seeing a drop in prices. This is placing many more homes in the laps of qualified buyers from the U.S. and other countries. Here in Naples Florida many of our out-of-country buyers are coming from Canada, the United Kingdom and Germany. The Euro is currently trading at about $.50 above our dollar and higher, making our beach real estate market even more enticing to European homebuyers.
*All statistics and quotations from Mr. Yun or are from the National Association of Realtors
The second half of the Colusa Catch and Release Tournament, which will end up at the the Caloosa Grand Championship. Teams compete to be among the top three for a pot of up to $15,000 plus great prizes like tournament gear, cash, open bar during the tournament, dinners, and more.
From US 41 in Naples, go east and cross over CR 951. Go 14 miles, Port of the Islands Resort & Marina will be on your right.
Naples, FL 34114
Eco-Friendly Travel-A Growing and “Dangerous” Trend for our Planet
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Traveling, whether going to nearby campgrounds, our Naples beaches, or on a full scale globe-trotting adventure, can take a toll on the environment. Being careless on our journeys can damage the natural resources and lands we are visiting and also needlessly use up energy. With additional light being shed every day on the dangerous condition of our planet and the need to conserve and protect our natural resources, ecotourism and “green travel” are becoming increasingly popular trends.
It has recently been announced that these green vacations or eco-tours may not be so good for the environment. As increasing numbers of persons tour previously pristine and untouched environments, they also bring along greenhouse gas emissions as extensive travel is often required to reach these preserved areas. The popularity and success of ecotourism is now threatening to become its own undoing.
Even if you decide to opt out of an eco-tour, there are still steps you can take to reduce your impact on the environment while traveling, no matter your destination. Here are some tips for “green travel.”
Planning for the trip
• Consider limiting the distance you travel. This will cut fuel or airfare expenses and help reduce pollution in the process.
• For maximum mileage per gallon, ensure your vehicle’s engine is tuned and its tires are properly inflated.
• Unplug your home appliances as they can use power even when turned off.
• Adjust heating and cooling systems and water heaters to limit energy use.
• Temporarily stop newspaper deliveries or donate your papers to a school.
If Driving
• Consider buying or renting a hybrid vehicle or a highly fuel-efficient conventional car.
• Stick to the speed limit, maintain a smooth pace and do not accelerate or brake aggressively to reduce fuel consumption.
• Use local transportation once you reach your destination, park the car and walk or ride a bike to reach nearby sites.
If Flying
• Use electronic tickets instead of paper when booking a flight as they create less waste and cost less to replace.
• Look into buying carbon emissions offsets, which help compensate for the emissions caused by your flight through contributions to sustainable energy programs. You are purchasing activities that are calculated to remove as much CO2 from the air as you contributed through your travel. This is accomplished by funding solar and wind energy, supporting tree plantings, etc.
• Carry newspapers and other disposable items off the plane for recycling rather than tossing them in the trash.
Hotel accommodations
• Look for hotels and tours that give the eco seal of approval such as Green Seal, Green Leaf, Green Key or Blue Flag. These eco-labels are certifications that the accommodations, beaches or marinas have met certain standards in reducing the environmental impact.
• Ask staff to not change sheets and towels every day (hang towels up for reuse.) It saves water and reduces energy and chemical usage
• Turn off lights and heating or air conditioning when you leave for long periods of time.
• Close the drapes to keep out sunlight in places with hot climates; open them to let the sun warm your room in chilly climates.
• Use water sparingly.
• Only pick up maps and brochures that you will actually use and share them when possible.
• Use electronic checkout programs to reduce paper waste.
Sightseeing
• Tread lightly. Stay on marked trails and walkways, avoid walking on fragile terrain and take care not to trample crops or gardens.
• Travel with a group to reduce the number of vehicles and thus vehicle emissions while touring.
• Avoid disposable cameras and other disposable products, which contribute to waste.
• Don’t disturb wildlife.
• Never buy products made from endangered species.
• Buy local produce when available. This helps reduce the pollution from the transportation of goods. Buy organic if possible.
• Bring your own reusable water bottle and pack your food and drinks in reusable containers.
• Don’t litter. Bring a bag to carry out your trash and recyclable items.
• Bring your own portable power. Portable Solar Chargers include the Solio Charger, Hymini Charger, Solar backpacks and the Zegna Sport Solar Jacket. You have lots of options for clean portable power.
Being an eco-friendly or green traveler means preventing or reducing any negative impacts on the environment, local community and economy of the destination you are visiting. The principles of ecotourism can be used anywhere you go. The world’s wild lands are at risk from vacationers not acting responsibly within sensitive habitats. Demonstrate responsible behavior to other travelers who are less informed than you by acting as an example.
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