5 Questions to Help Downsizing Seniors Deal with Their Current Home

Are you downsizing to a smaller home for your retirement years? Before you start settling into a new home, you need to figure out a plan for the old one. You have a lot of options when it comes to handling your current home and buying a second property, so it makes sense to take your time making this decision and to ask yourself the right questions along the way.

How Much Will You Need for Your New Home?

The best way to figure out what to do with your current home is to budget properly for the new one. After you use online tools to determine your new home price range, you can better determine what sort of profits, proceeds, or financial options you will need to help pay for the new property. Be sure to factor in things like a down payment or accessibility upgrade costs into your overall budget so that you will have a solid plan to guide the rest of your home decisions. Once you have a budget, be sure to stick to it when shopping for smaller homes for retirement.

When putting together a budget, there’s one particular aspect that many people forget to include: the cost of professional movers. If you intend to bring in the pros, you need to set aside some cash for this service. The average cost a moving service tends to run between $25 and $50 per hour, though this can easily jump to approximately $1,000 per room if you intend to move out of state. Therefore, you need to take this expense into consideration when you’re formulating your budget — you don’t want to come up short if you need help moving!

Does Selling Your Old Home Now Makes Sense?

When you are moving to a smaller home, the first option you may consider when deciding how to handle your current home is to sell it. This may seem like a straightforward process for many retirees, but there are a few factors to consider before you decide to sell your home right away. Are homes currently selling like hotcakes in your local real estate market? If so, then listing your home now could be a wise financial move. Are you still paying off a mortgage on your current home? If you haven’t built up a lot of equity, you may want to hold off on listing your home.

Could Renting Your Home Help Your Retirement Savings?

If you need to build more equity in your current property or if you want to add some additional income to your retirement budget, owning rental property could be a solid financial bet. There are some definite perks to owning investment property in retirement, but there can also be some decided financial cons. So, be sure to weigh your options and consult with a financial advisor, to see if turning your current home into an investment property makes sense for your retirement.

Could Turning Your Home Into a Vacation Rental Be an Option?

Residential rentals can provide a steady stream of income during retirement, but renting your home out long-term may not make sense if you plan to split your time between two places. So, if you are planning on this sort of living arrangement for your retirement, it may make more financial sense to rent to vacationers when you are not using your home. Short-term rentals can be easily managed through sites like Airbnb or VRBO, and you may even be able to help pay off both homes if you take the right steps to attract travelers to your homes while they are vacant.

Does Keeping Your Home Fit into Your Retirement Budget?

Buying a second home and keeping the first one can be a big financial commitment, but it can also be the right choice for many retirees who want to keep a home in their family. Downsizing seniors who choose this option may need to get creative with financing since lenders tend to be more restrictive when it comes to providing mortgages for second homes. Plus, they need to factor in taxes, insurance, and other routine home expenses. If your home will be vacant for most of the year, you should also consider using property management services to keep it maintained and secured, especially if your homes are far apart from one another.

Downsizing can be freeing for seniors. You have to create a plan for your old home before you can begin to enjoy all of the perks of downsizing. Selling or renting can help your retirement savings, but holding onto your old home may be the best choice for your situation. So, weigh each choice and choose the one that will help you make the most of your retirement!

Written by Jim Vogel

Photo Credit: Rawpixel

Don't Be Surprised by the Supplemental Tax Bill

After buying a home, the last thing a buyer wants is a surprise bill.  So when the supplemental tax bill arrives in the mail in 6-12 months after closing, hopefully it is not a surprise. 

While reviewing the disclosures about the home, an experienced agent understands the important of disclosing the Supplemental Tax Bill.  When I mention the supplemental tax, new buyers already in disclosure input overload give me a puzzled look. "What the Heck is that?"  When I begin to explain the complicated tax, some people get a glazed look in their eyes and even tune out until they hear it may be a few hundred or few thousand dollars.   That always seems to catch their attention. Then I begin to repeat what the tax is all about, with their full attention.

The San Diego County Treasurer-Tax collector's office has an excellent video explaining the Supplemental Tax.

When you buy a house, you normally buy it at higher price than the seller did.  The price that the seller bought the house at is the base price that property taxes are calculated for in escrow.  So part of the closing costs, are the buyer's prorated portion of the property taxes, again based on what the seller paid for the property. 

Once the home closes, then the tax assessor reevaluates the taxes based at the higher value.  So the supplemental taxes can vary depending on what the difference in the price is.  If the seller owned the home for 30 years, then there can be a big difference in the original versus the new value, creating a large supplemental tax.  Where if the seller bought it only a few years ago, there may not be much difference at all.  The San Diego Tax Assessor's office has an online supplemental tax calculator that a buyer can access online to calculate what the difference due should be. 

Since Loan impound accounts do not include money to cover Supplemental Tax Bills, it is important to be prepared, and save some money to cover it.   Don't be surprised by your Supplemental Tax Bill. 

For other Buyers information, go to the Buyers tab at VirginiaHall.com.

Written By Virginia Hall
DRE License #01409760
San Diego East FootHills
Keller Williams Realty
619-258-8585

 Image courtesy of Pixabay

Moving to a new area is exciting, but it can take some doing to make your new surroundings feel like home.  Not only do you have a house to unpack, but also you have a community to explore.  Here is how to feel less like a stranger and more settled in, both in your new home and in your new hometown.  

Clean, unpack and organize.  Making your new house feel like home can be a daunting task, but sometimes the most difficult things can be simple underneath it all.  You Move Me recommends cleaning your new home before you do anything else, lifting any residual grime previous homeowners left behind.  You can use a house-cleaning checklist to help ensure you don’t miss any major points, but you’re better off hiring a cleaning service for the job. In Santee, maid services charge an average of $108 - $215, depending your home’s size. Next, you’ll need to unpack some belongings so you have familiar items surrounding you can be a great step toward feeling settled.  Unload your essentials and set up your key furniture and appliances so your home is functional and do some organizing as you go. 

Get your bathrooms and kitchen up and running since you need those areas for daily basics, and add your creature comforts later.  Pet owners can benefit from hiring a dog walker (an hour-long walk can cost you $22 - $27) to help ensure Fido doesn’t get into anything while unpacking, or if you venture out to take in the town or pick up essentials. 

Learn and explore.  Getting to know the area is another key to feeling at home.  While you obviously can’t take it all in at once, exploring local culture can help you feel oriented.  For dog owners, this can be challenging.  If you can’t bring your pup along, consider hiring a pet sitter (the average cost of pet-sitting services is around $17 per hour) while you are out and about, so he isn’t left alone right away.  Once you decide on arrangements, where should you venture first? 

One idea is to visit some of the elements in your own neighborhood you plan to use frequently, such as the local library, a coffee shop, and the visitor’s center.  These basic features offer a taste of what your new community offers and can help you feel welcome.  Another idea is to familiarize yourself with the area online so you can locate all the major assets of the new community.  Simply exploring via the web can help you get a sense of direction, helping you better navigate future comings and goings.  

Saying “hello.”  Becoming acquainted with your new surroundings is more than maps, attractions and architecture.  Make it a point to greet your neighbors, and if you belong to a homeowners association get familiar with the rules.  Take your kids and pooch along for a stroll through the neighborhood, so everyone has a chance to get comfortable and say “hello.”  Another engaging suggestion for getting to know your new neighbors is to throw a party.  Think of it as an open house after you’re moved in.  Keep things casual!  Think pitch-in, backyard barbecue, or game day celebration. It’s a great get-to-know-you opportunity. 

Doggy dilemmas.  Dog owners have unique concerns when it’s time to settle into a new place.  Transitioning into a new home can be hard on your pup, so allow him some time for adjustment.  Make sure you set up his necessities right away and try to put them in areas where he would expect to find them.  If possible, spend the first few days at home with your dog.  It can help him to see this change is permanent and feel reassured you aren’t going to leave him somewhere strange.  The Spruce suggests keeping your dog’s routine as normal as possible throughout your move and while settling in so he feels secure. 

It’s exciting when you’re making the transition into a new place, but it also presents challenges.  Do some unpacking, organizing and exploring to feel at home in your new surroundings.  Before you know it, you’ll feel settled and comfortable. 

By Natalie Jones

SHHH! When and Why Homebuyers Should Stay Quiet

Buying a home is a big deal! You may be overflowing with excitement and nervous anticipation—and brimming with questions. Of course, you want to talk about it! Who wouldn’t?

Take a moment to hit the pause button. 

Remember: buying a home is a negotiation process. Everything you say and do could broadcast information that benefits other people—like sellers and their agents.

For example, imagine how a seller will respond to your deeply-discounted offer if they know:

“We have to close before school starts.”

“Our landlord already has a new tenant.”

“It’s the only place that ticks off all the boxes.”

Even though your purchase contract doesn’t mention any of these points and your buyer’s agent isn’t going to share details like that, there are other ways damaging information can inadvertently get back to the current homeowner.

Buyers should be particularly cautious in these situations:

Interviewing buyer’s agents

Every homebuyer should have a qualified real estate professional by their side. Buyer’s representatives can help you find the best property and navigate the complexities of purchasing it.

When picking your buyer’s rep, ask the right questions. You want to select someone who will do an excellent job representing your interests and helping you make the best decisions. 

If you limit your search to agents who’ve earned the Accredited Buyer’s Representative (ABR®) designation, you’ll know they already have specialized training and experience in representing buyers.

Before making a decision, refrain from divulging sensitive details that could hurt your negotiating position. After all, a second-place agent could show up on the opposite side of the table, representing the sellers of the property you’d like to purchase.

Attending open houses

Open houses are a fun and easy way to view homes, as long as you remember that the agent who greets you at the door represents the sellers. They’re happy to meet prospective buyers and will probably ask questions about your current situation, what you’re looking for, etc.

Be sure to let them know if you’re already working with a buyer’s rep. Also, be careful about sharing any details that could come back to haunt you, in terms of hurting your negotiating position.

Touring homes

You and your buyer’s agent may be the only people in a house, but the owners could still be listening to your conversations. Today’s technology makes it easy to place cameras or other surveillance devices throughout a home.

It’s not just a question of the sellers hearing things that make them more confident about driving a hard bargain. If they know you’re ridiculing certain aspects of their home, they may also be unwilling to compromise. 

Stick with straightforward, non-judgmental comments until you’ve completely vacated the property. Some sellers will go so far as to spy on prospective buyers from a neighbor’s home or ask neighbors to report back on what they heard and saw.

Posting social media updates 

Don’t take pictures while touring someone else’s home unless you’ve received permission from the owner. In some states, you could be breaking the law. If you’re not sure, ask your buyer’s rep.

Even if you’re allowed to take photos, it’s a bad idea to post them on social media. That’s another way you could hurt your negotiating position by divulging information or angering the sellers. Be patient and post as many photos as you want when YOU’RE the owner! 

By: 

REBAC Staff

Posted: 

04/22/2019

Say Farewell to Winter with a Whole-House Cleaning

Spring is here! Each day is bringing extra sunlight and the promise of more time spent outdoors. It’s the perfect time to clean out months of dirt and grime, air out stale rooms, put away winter things, and unpack warm weather items.

What’s the most difficult part of spring cleaning? According to a recent survey, it’s getting started!

However, there are many excellent reasons to push through that psychological barrier, including the experience of “lightness” that comes from accomplishing cleaning tasks, as well as numerous health benefits!

If you’re ready to let your rooms sparkle, eliminate the dust and allergens lurking around, kill the germs, and prepare for the glory that is spring, here are some tips to get you started.

Step 1: Clear the clutter.

Get rid of anything you don’t need. The less you have lying around, the less there is to clean. So start by tossing! Donate what you don’t need or want. For example: 

• Winter clothes – Eliminate anything you or family members didn’t wear. Unless younger children are waiting to grow into these items, there’s no reason to store them for next year.
• Spring clothes – Determine if these packed-away items don’t fit or aren’t your current style. Why stuff your closet with things you don’t need, don’t want, and won’t use? Ditto for the spouse and the kids.
• Kids’ toys, games, books, furniture – Your little ones did some growing over the winter months, physically, emotionally, and intellectually. Do you really want to store, display, clean, and organize things that are no longer important to them?

Step 2: Assemble your cleaning equipment.

Whole-house cleaning will be easier if all your products and tools are pulled together before you begin. It’s difficult to maintain your momentum if you have to run out and buy stuff while cleaning.

Evaluate your supplies. Do you need a new broom or mop, a squeegee, or a fresh pair of heavy-duty rubber gloves? What about cleaning products? Do you need to restock bottles or purchase supplies to make your own?

Be sure everything is ready before you organize the rest of your house and begin cleaning!

Step 3: Put things away.

Cleaning is more difficult and takes longer if you have to move things to get under or around them.

Ask everyone in your home to grab a laundry basket, gather all their personal belongings, and put those items where they belong. If an object doesn’t have a designated place, create one. It’s hard to keep things orderly if items don’t have a “home base.”

Step 4: Let there be light and air!

Your house has been closed up all winter. Before you begin cleaning, open as many windows and doors and vents as you can. Encourage natural airflow, pull back the curtains, and invite the sunshine!

As you clean each room, you can close it off again, knowing that the inside air is now as fresh and clean as your ceiling, walls, furniture, and floors!

Step 5: Clean from top to bottom and back to front.

Start at the top floor of your home and work your way down.

Gravity is a glorious thing unless you dust all your furniture before cleaning the overhead HVAC vents and the ceiling fan. Then, gravity will double your work.

Begin at the ceiling, clearing cobwebs, dusting any molding, cleaning air vents, ceiling fans, and light fixtures.

Next, clean the walls, window treatments (curtains, blinds, etc.), windows (inside and out), and woodwork on the walls.

Then, and only then, strip and remake the beds and clean and polish the furniture.

Next, wipe down the baseboards and vacuum the floors. If you have hardwood or tile floors and use a broom, be careful not to kick up dust with over-zealous sweeping before mopping!

Work from the back of the house to the front, so you are cleaning “as you go” and not tracking dirt back into clean areas. Likewise, clean steps from top to bottom before beginning work on the lower level.

Pay particular attention to deep cleaning in the kitchen and bathrooms, but don’t reserve disinfecting for these areas.

Clean and disinfect every room and every surface in your house. For example, it’s surprisingly easy to disinfect upholstered furniture with a fabric-safe disinfectant spray.

Step 6: Enjoy!

After you have cleaned every room and swept off the last step of your entryway, enjoy your newly clean house. Revel in your fresh, spring-ready environment!

By: 

REBAC Staff

Posted: 

04/08/2019

Be Ready for the Home Inspection

A home inspection is highly recommended when buying a home.  It is important for the buyer to know what problems they are buying.  Discovered issues can be disappointing to both the buyer and seller.  It might become an obstacle in negotiations process.  By taking these 10 steps, sellers can take care of some basic maintenance issues that often appear on home inspection reports.

1.  Fix any leaky faucets and fixtures. Regrout discolored areas around the tubs and sinks.  Make sure all sinks are draining well.
2.  Have your furnace and air conditioning serviced.
3.  Install a battery operated carbon monoxide detector on each floor of a home as well as smoke detectors inside each bedroom, above the door, and one in hallways.
4.  Replace any cracked or broken windows.
5.  Professionally clean the fireplace and chimney.
6.  Have an electrician inspect receptacles and switches and make any needed repairs.
7.  Make sure all doors, including the garage door and closet doors, and windows open and shut easily.
8.  Remove or repair any trip hazards.
9.  Roofs older than 15 years should be professionally serviced, repairing any missing or damaged shingles or flashing.
10.  Make sure that hot water heaters are strapped properly with two metal straps.

Taking care of these issues ahead of the home inspection should make the process much easier.

Virginia Hall, CRS® 
San Diego Foothills
Keller Williams Realty
619-258-8585

Why Won't My Home Sell?

With fewer buyers able to afford a house in San Diego County, a shift in the housing market is starting to occur. While home prices are still rising, the number of sales is slowing. The best of homes are selling at top market prices. At the same time we are seeing longer market times and a growing number of homes on the market. Homes are a commodity and markets go up and down. As the number of homes for sale grows, the value decreases. Here are some tips on how you can help get your house sold in the quickest time and at the best price as the number of homes for sale increases:

 1. Price Your Home Right. When interviewing Realtors® , make sure they bring comparable home sales in your immediate area to review. Comparable homes are ones within plus or minus 15% estimated square footage, similar number of rooms, and improvements. While you want top dollar, pricing your home at or just below the most recent comparable sales, will keep you from lingering on the market and may even get you multiple offers. The longer a home sits on the market, the more bargaining power a buyer has and more likely the price will drop. Be leary of agents who promise to get you more than the market will bring. They start with a high price and end up lowering it in a few weeks when there is no activity.

 2. Clutter is Your Downfall. If you have lived in your house for years, this is likely to be a problem. Before you deep clean or have your home professionally cleaned, get rid of the clutter. Look at each room and reduce furniture and personal belongings. Too much furniture and belongings can make a room look much smaller. If you are down sizing, have a huge garage sale, rent a pod or a storage unit.

 3. In Need of Repairs. As you prepare to sell your home, make a list of all the things in your home that you know need to be fixed. If you are not good at repairing things, hire a handyman to repair all those annoying loose fixtures, cabinets and doors, replace broken tiles and replace light bulbs that aren't working. Make sure that all of your appliances are working properly. Some sellers even hire a home inspection prior to putting it on the market, so repairs can be completed prior to putting it on the market. Buyers will steer away from a home in need of a lot of work.

 4. Stage Your Home. An experienced Realtor® can often give you ideas or some sellers hire professional stagers. Staging includes all All Five Senses. After decluttering rooms, stage furniture and decor to help buyers see the potential of the room size and bring attention to special features. A vase of flowers on a table, a dinner table eloquently set, new color cordinated bathroom towels, and cleared counter spaces, all make a difference. If the house is empty, a stager can help furnish a few rooms to help the buyer envision how to furnish a space.

 5. Hire the Right Realtor® . The Realtor® you hire needs to be able write up a description of your home that highlights the features that you love and will sell your home. Look for Realtors that have taken the extra education and steps to gain designations that sets them apart. The Certified Residential Specialist (CRS®) is the gold standard for Realtors®. Only 4% of the nation's Realtors have it. Once you know your Realtor® has gone the extra mile in their education, then review their marketing plan for your home. Make sure they will have Professional photos of your property for the multiple listings and other marketing materials. No dogs or reflections of people in your photos. Virtual Tours and videos help bring you home to life and pushes it up in internet searches. You need an agent to reinforce the positive things about your home, that knows the area, and can negotiate to get you the best price. Make sure to review all marketing for accuracy.

 6. Personalized Home Improvements. Remove those family photos and any unusual items, like voodoo dolls, skulls and crossbones. If you are planning to do home improvements before selling, make sure that they are of neutral color and flows with the rest of the house. Don't add a lot of special, costly touches. Buyers have to be able to visualize their belongings in the house. 7. When Buyers Come, Best to Leave! When buyers come to visit, a Seller's first instinct is to stay, to protect their belongings, or to try to sell the house. However, buyers need to be able to explore the home freely without the hovering eyes of an over protective seller or a nonstop hard sales pitch. Often, while you are pitching the house, inadvertently the seller tells the buyer something that is a problem to the buyer. When sellers insist on staying, they cannot help but tell you something that can be used in negotiating the price down or turns the buyer off all together. Step out. The house will sell itself and the buyer's agent will supervise their client. 

Choosing an experienced Realtor® can help guide you through the process on how best to sell your home. Follow these tips, so you won't have to chase the market as your home declines in value.