Cyberhomes Blog

Buyers want practical home fixes

Tue, 09 Feb 2010 02:30:00 GMT

Wallets strapped, homeowners these days are looking to cut expenses. Sometimes, that means deferring maintenance that should be done– things like fixing leaking pipes or getting a new water heater, reports Jen A. Miller for Cyberhomes.

But putting off repairs is a losing proposition for homeowners, especially in today’s housing market. That’s because many home buyers are as low on cash as today’s home sellers. House hunters don’t want to inherit another homeowner's problems. They want a home that will require the least cash possible to make it move-in ready. The last thing they want is to have to scrounge up the dough to make desperately needed repairs in their newly bought homes. That means the more repairs that homeowners let slide, the less attractive their homes will be to potential buyers.

And if you’re a homeowner who may be selling your home soon but are planning a remodel, look to make fixes to your home that will be appreciated by today’s buyers–think quality over quantity/size and make needed repairs, remodel your current space instead of adding on, and make eco-friendly upgrades, suggests CNNMoney.com. House hunters aren't going to appreciate your home's pluses if they can't see past its negatives.

A French villa, plus Zebra rugs

Tue, 09 Feb 2010 11:10:36 GMT

Television sitcom actress Suzanne Somers and husband, Alan Hamel, are still trying to sell their lavish Palm Springs, Calif., estate, Les Baux de Palm Springs, which they’ve owned for at least 30 years. Here at the blog, we recently spotted their home’s for-sale listing on the website for luxury real estate magazine, Unique Homes. Scott Lyle of Scott Lyle Realtors has the listing, which includes a high-quality slideshow of the property.

The home once had a listing price of $35 million in 2008 (but the price had dropped down to $12.9 million at one point). The home is now being marketed discreetly sans price on UniqueHomes.com and on the home’s own website, lesbauxdepalmsprings.com.

Set on 65 mountain acres near the town of Palm Springs, the property has the look of a luxurious French Villa. Quite lavish, it sports an amphitheater that seats 50 people, a wine vault that holds more than 5,000 wine bottles, and a pool. All together, the estate encompasses 10 bedrooms and nine bathrooms in seven different suites and houses.

Looking at her estate, it's apparent that Somers has done quite well with the products she’s hawked over the years – from her “ThighMaster” to her “Somersweet” baking blend to showing women how to “Somersize” and shed extra body fat.

Curiously, while the home is very tastefully and elegantly appointed, it seems that Zebra rugs can be found throughout – I would guess they’re a reflection of Somers’ own sense of style.

Waiting for Mr. Contractor

Mon, 08 Feb 2010 06:00:00 GMT

Homeowners know how difficult it can be to find good contractors. But what happens when you find the perfect guy and he’s too busy to fit your job into his schedule?

That was the situation I faced with a plaster-stucco-and-paint guy I wanted to hire to make some repairs to my house. The house has settled some over the years, and while I wasn’t quite ready for a paint job, I wanted the worst of the cracks and holes fixed up in the meantime.

The contractor I wanted had been recommended by my plumbers. They’re expensive, but they’re reliable and they do professional work, so I trust their referrals. In fact, referrals from contractors and neighbors are one of the best ways to find reputable home repair companies.

The plaster guy came out to give me an estimate, and I was impressed: He understood the job, offered good advice, quoted a fair price and was not annoying.

Then he disappeared. I called him. He called me. I called him. He called me. We scheduled the work. It rained. We rescheduled. He caught the flu. We rescheduled. By this time, four months had gone by.

I was just about ready to give up and try to hire someone else when, miracle of miracles, Mr. Wonderful Contractor and his crew showed up as scheduled, and they did a great job. It’s rare to find a contractor who is smart and knows his business and is also a hands-on guy who works right alongside his crew.

The only bad news was that termites had eaten a small piece of the French doors that lead out to my backyard. So the contractors had to remove a strip of wood before they painted the doors. (In a nice Nantucket red, by the way.) So now I wonder: How long will I have to wait before they come back with the missing piece?

Breaking up is hard

Fri, 05 Feb 2010 04:00:00 GMT

Ending a relationship is heartbreaking, but redecorating is easy. When some women go through a breakup, they cut their hair.

I, apparently, redecorate.

And it appears I’m not alone. Apartment Therapy had a great post about things to do with your home post-breakup. Among them are:

Declutter
Clean, and
Redecorate.

I’m right there with them. When my relationship of nearly six years ended recently, I looked around my bedroom and wanted to change everything. We didn’t live together, but still, everything in the place reminds me of my ex: The bed we slept in together, the bedside lamp I borrowed from her, the books I kept because I knew my ex liked them.

And I realized another thing: Because we had been planning to move in together, I didn’t decorate my bedroom the way I would have on my own.

So of course the first thing I did was fire up my Internet browser and start searching: A tufted headboard a la Mad Men. Some art deco sconces for either side of the bed. A new memory-foam mattress (which I didn’t buy, among other reasons, because my ex ran hot and memory foam is a notorious insulator). A new duvet. New sheets. New curtains. Basically, a new space where I could imagine starting a new life.

I’m also doing the other things Apartment Therapy recommends: I’m cleaning out the old stuff I have sitting around, preparing to take books to the second-hand shop to clear them out. I’m going to go through my wardrobe this weekend and eliminate stuff I haven’t worn in a while or, let’s be honest, stuff that reminds me of my ex. I’ve done a lot of shredding and recycling, and there’s more to go.

All of this is great, and it’s a safe way to look forward. Of course, when the redecorating is done, I’ll still be left with myself and my grief over the end of what was, for the most part, a pretty great relationship.

But at least I’ll have pretty new sheets and a room that’s way more girlie than I ever would have had if we had moved in together.

Readers: What kind of redecorating changes have you made post breakup?

Reasons to fell a tree

Fri, 05 Feb 2010 06:00:00 GMT

Cutting down a tree is a big job that takes a sturdy ladder and some heavy equipment. Tree-cutting is also dangerous. Tree cutters can be injured or killed by falling trees or branches or by falling out of a tree or off a ladder. If a branch strikes a power line, the tree-cutter could be electrocuted. Homeowners who need to cut down a tree should hire a professional or follow tree-cutting safety procedures.

Many homeowners may be appalled at cutting down a tree. But trees are trimmed, topped and removed every day for a variety of reasons. Some are old, diseased or full of termites. Others are overgrown, messy or planted too close to those electrical power lines I mentioned. Some have roots that can break a foundation, wall or walkway or invade a sewer line. Once tree roots get into a sewer line, the plumbing is likely to be out of service soon.

One of my neighbors has a large tree stump in his front yard. The tree was removed before I moved into the neighborhood, but I’ve often marveled at how big the tree must have been based on the enormous stump that was left in the ground. A tree stump isn’t all that attractive, perhaps because it’s a reminder of the tree that’s gone.

But my neighbor’s stump has a purpose. Every now and then when the weather is fine, he likes to sit on the stump and read magazines. What’s funny about this scene is that his dog likes to sit on the grass and watch him read. The dog looks exactly like a child listening to someone read aloud from a story book. This canine is very attentive.

So while tree-trimming can be dangerous and tree stumps may be ugly, there is an upside. A stump can be turned into a dog reading room and that may amuse the neighbors.

New social networking site

Thu, 04 Feb 2010 11:00:00 GMT

Looking for a place to connect with other real estate professionals or investors? If so, a new website might be for you: RealtyJoin.com, a social networking site developed exclusively for the real estate industry. Membership is free to the real estate community. It's sort of like a "Facebook" for the real-estate set.

On the site, you can create profiles that are privacy protected and can be shared across Facebook, Twitter and elsewhere across the Web. Launched last month, the website reached 1,000 members in a matter of days, says co-founder Andy Heller.

At the site, people like real estate investors can create their own team of professionals and network with vendors like electricians, home inspectors and mortgage brokers – people to get the job done. It’s also a place where vendors like real estate agents, appraisers and electricians can get the word out about their services.

I recently created a profile on RealtyJoin, and one feature I like about the site is its news portal – the site aggregates real estate news from sources like Inman News, the Wall Street Journal, CNN Money and BankRate.com.

I haven’t done much networking on the site yet, so if you sign up with RealtyJoin, look me up!

Street numbers racket

Thu, 04 Feb 2010 08:30:00 GMT

Every six months or so, a fly-by-night contractor—and it’s always a different face and a different name—comes through my neighborhood with a house numbers stencil and repaints the house numbers on the curb in front of each house. Usually there is a flyer, photocopied on colored paper, that’s distributed a few days in advance to inform the homeowners that the number-painting guys are on the job and that we’ll all have to pay a “donation” of, say, $15 for this service.

Curb-painted house numbers are a good thing to have. They’re more visible, especially at night, than decorative numbers on the front of the house. That’s helpful for visitors and firefighters and parameters who need to find the right house in a hurry.

But after seven years and at least as many number-painting notices, I’ve begun to wonder whether this service is a racket. The notices never specify whether the contractors are licensed by the state or approved by the city. Payment in cash is always demanded after the fact, and there is rarely a way to opt-out. The latest notice offered to paint a logo such as an American flag or religious symbol on the curb along with the house number for, you guessed it, an extra $25. I had to wonder whether curb-painted logos were even legal.

But the worst part of it is that these guys always use really cheap paint. Of course that increases the profit margin on the “donations,” but it’s a poor service to the homeowner, who has to hand over $15 year after year to repaint the numbers that washed off in last year’s rainstorms.

One of these days, I’m going to buy a can of high-quality white paint and a few stencils and paint my own numbers. I bet it will be cheaper than $15, and I bet the paint won’t wash off for at least a few years.

Maybe I’ll start a service and go around the neighborhood….just kidding.

Billy Joel's ex lists home

Wed, 03 Feb 2010 10:00:00 GMT

Food critic, Katie Lee, the ex-wife of Billy Joel, stands to get a pretty penny for the New York townhouse that she has listed on the market with broker Dolly Lenz. That is if Lee sells the home for its asking price, $12.9 million. The word from NYmag.com is that Lee bought out Joel’s half of the home in their divorce.

Located in Manhattan’s West Village, the 23 Perry Street property, which she and Joel reportedly purchased for $5.9 million in 2006 and promptly renovated, sports a chef’s kitchen, an elevator, three to four bedrooms, four baths, an elevator and a landscaped terrace, all in 4,000 square feet.

In the basement there’s an indoor pool, which the home’s listing says “has been cleverly covered and is used for storage space in a secret spot under the floorboards.” Now, I would think that’s a poor use of an indoor pool!

Is walking away from a mortgage bad?

Wed, 03 Feb 2010 09:00:00 GMT

By walking away from its mortgage for Manhattan properties Stuyvesant Town and Peter Cooper Village, the real estate company Tishman Speyer Properties, and its partner, investment firm BlackRock, have raised an issue in many people's minds that was aptly described by Rachel Beck in an article for the Associated Press.

In the story, Beck points out that while Tishman Speyer’s reputation might be a bit tarnished by its recent act, walking away from the properties, which it bought for $5.4 billion and is now worth only $1.8 billion, will merely be considered a calculated business move. Meanwhile, when a homeowner walks away from a mortgage, it’s considered something to be ashamed about, an immoral act, since that homeowner isn’t keeping a promise he or she has made.

But staying committed to a mortgage can be tough for the average person. As one homeowner interviewed by Beck points out, “I have 12 years of money put into this property that I will never get out.”(The homeowner owes $31,973 on a mobile home that is now only worth $14,000.) Obviously, that homeowner doesn’t have the financial resources that a large company like Tishman Speyer does.

In her story, Beck points out that some experts think that sometimes the best move is to walk away from a mortgage, even though it’ll mean a credit score that will be damaged for seven years, because a homeowner likely can find a similar rental property for less and save money. (The homeowner can also stop putting money into an investment that won't give him or her a good return.)

Readers: What do you think? Should homeowners underwater on their mortgages think of walking away on their mortgage as just a personal finance decision, and not a moral issue?

Sewing home improvements

Tue, 02 Feb 2010 12:00:00 GMT

It looks like the new bedroom that I resolved in January 2009 to create for my daughters is near completion. My husband is putting the finishing touches on the paint, and I am about to order some new furniture for the room. (I’ve chosen two “Lily Rose” storage beds and a double dresser from the same manufacturer – let me know if you have any other cost-effective storage beds you’d recommend.) And even though the furniture I’ve chosen is fairly inexpensive, the bill will come to more than $700 – and that’s before buying mattresses.

Earlier today I wrote about thrifty DIY ways to save at home, so I hope to spend less on the room by sewing duvet comforter covers and curtains myself. My husband gave me a sewing machine for Christmas, and the machine came with two free sewing classes at the store from which it was purchased.

I can barely thread a needle, so I have a lot to learn when I go to my first class next week. Hopefully, I’ll learn enough to make the needed additions to my daughters’ room as well as to do handy things like sew the patches on their Girl Scouts uniforms (I sew the patches on by hand now and often pierce my fingers) and mend their pants. I’ll let you know how it goes.

Thrifty ways of saving at home

Tue, 02 Feb 2010 08:30:00 GMT

Times are tough these days – the unemployment rate is expected to stay high throughout this year and only dip slightly from the current 10 percent to 9.8 percent by the end of 2010, according to the Obama administration.

Which has me wondering whether Americans will embrace a way of thinking about our homes that’s similar to the way many of our parents and grandparents lived.

When the living room needed curtains, many of our parents and grandparents sewed them themselves. When something needed fixing at home, they retrieved their toolbox instead of calling the local home contractor. Which is quite a different philosophy from what many homeowners now have. There’s not much that today's busy homeowners do at home these days – we have our lawns cut by a landscaping service, our meals come from the local takeout place, our homes are scrubbed by a cleaning service and our curtains are installed by home designers.

It seems, however, that there is a growing home improvement trend today – author Erin Bried touches upon that movement in her book, "How to Sew a Button: And Other Nifty Things Your Grandmother Knew" (2009, Ballantine Books). The book is available for about $10 on Amazon.com. In the book, Bried shares tips that’s she garnered from 10 grandmothers across the U.S. on things like how to hem your pants, unclog a drain (without calling a plumber), keep your home tidy and even bake a cheesecake.

Now, I am certainly someone who could use such tips. As a journalist, I work in a career field that’s constantly shrinking (and most journalists aren’t known to make the big bucks). On top of that, I went on a home improvement spending spree last year – I hired contractors to install a new patio in my backyard and design and hang new curtains in my family and living rooms. If I had at least some do-it-yourself skills, I could have spent a little less money on my house. Perhaps I should find a copy of that book…but I might do the thrifty thing and wait for it to appear at the local library.

Economy affects retirement plans

Mon, 01 Feb 2010 11:00:00 GMT

If retirement is in your near future, you may want to take a look at Steve Kerch’s article, “Rough Outlines: Economy Forces Changes in Thinking About Retirement Homes.” That’s because the way the economy is now might affect the choices you have in the future about the type of retirement home and retirement community you can buy into.

If Kerch is right, less prominent will be the type of retirement communities that spring to mind when one thinks “retirement” these days. You know, the golf course communities in sunny locales like Arizona or Florida. That’s because with the budget crunch people are facing these days (and with major housing-market slowdown that has hit states like Florida, California and Arizona), today’s retirees are more apt to consider buying a retirement home in North Carolina or South Carolina instead of Florida, Kerch says.

And instead of wanting communities that will provide them with endless rounds of golf, today’s senior set is more likely to value neighborhoods that offer walking trails, he says. Also, today’s seniors are more apt to want smaller homes with practical home features like storage space, first-floor master bedrooms and easy-to-use thermostats.

Although it’ll be quite a few years until I’m a senior, I wouldn’t mind if these changes stay in place and continue to influence the type of retirement communities that are built. I’d much rather have a smaller home with plenty of storage space in a neighborhood that offers peaceful walking paths than a large, hard-to-heat house where I’ll be finding golf balls in my yard from a course I don’t play on.

Trap to appealing property taxes

Mon, 01 Feb 2010 09:00:00 GMT

My friend, June Fletcher, wrote a very interesting column last week for the “Wall Street Journal” on the issue of property tax assessments and selling one’s home. She wrote that if you are thinking of selling your home anytime soon, it may not be a good idea to appeal your property tax assessment – if you are successful in getting the assessed value of your home lowered, it could negatively impact your home's potential selling price.

She makes the very good point that the tax savings you may realize from a lowered assessment may not be big enough to offset the dip in the selling price you may see for your home if you sell, since buyers tend to take homes’ assessed values into account when making a bid on a home.

But of course, if you don’t plan to put your home on the market anytime soon, it makes sense to appeal your assessment if you think you’re town’s assessment of your home’s value is too much, since the higher your home’s assessment, the more your property taxes will be. There are some excellent tips on tactics in June's article to try if you want to appeal your assessment.

My neighbor recently appealed her property tax assessment successfully. We both moved into our nearly identical homes in 2002, and last year was the first year our town has reassessed home values since before then. My neighbor’s home is admittedly in much nicer shape than mine – they’ve added wood floors to their home’s main level and added a finished section to their basement. But when we got notice of our homes’ new assessed values, her house was assessed way significantly higher than mine. Using the information she had on my home and another similar home on our block, she was able to get her home assessed value – and her property taxes – lowered.

I blogged at the time that I think the curb appeal of our homes’ influenced the assessor’s sense of the value of our homes. When you walk into my friend’s home, everything is in place, the living room/dining room that you see first is elegantly appointed, and the wood floors sparkle. When you walk into my house, you enter on a small entry hall with vinyl flooring, and the rest is carpet. We haven’t furnished our living room/dining room yet, and the main room is mostly filled with a piano, two toys boxes and my daughters’ toys.

The person who came to perform my home’s assessment just stepped into the doorway and asked us a few questions about the house – after noting that the threshold to our front door could use repairing. Meanwhile, the person who evaluated my neighbor’s home took a full tour of the house, even visiting the basement. It seems that curb appeal really does matter.

What is fair market value?

Fri, 29 Jan 2010 11:00:00 GMT

The real estate market is confusing enough without the help of experts. At least that’s my read on conflicting assessments of home values.

One report says that 242 of the 299 largest U.S. housing markets are selling for less than fair market value. IHS Global Insight and PNC Financial Services, which produced the report, say it took into account median home prices, local interest rates, population densities and income. It also accounted for historic premiums or discounts.

According to the report, Las Vegas is the most undervalued market in the country with homes selling at 41.4 percent below what they should. The rest of the top 10 consists of the usual suspects, cities in Central California (No. 4) and Florida (No. 3). Michigan and Louisiana are also represented.

Before you get set to hop a plane and go on a buying spree, you might want to hear out Dean Baker of the bipartisan Center for Economic Policy and Research. He says that based on prices in the mid-1990s and accounting for inflation, home prices are still 15 to 10 percent too high.

“There’s no plausible fundamental explanation for that,” Baker told Bloomberg News.

I know whom I want to believe, but the real question is, whom should I believe?

In this case, you just need to do the math.

As the ubiquitous saying goes, “All real estate is local.” I decided to run my own calculations based on my little corner of the world — Camarillo, a city of about 60,000 near the coast in Southern California.

Camarillo is about halfway between Los Angeles and Santa Barbara. Our main draw is that we’re a safe, family-oriented city. This appeals to those that make enough money working in the outskirts of L.A. but don’t want to live there and those who can’t make enough in Santa Barbara to live in that fine community.

My formula is simple. If I can buy an entry-level single-family home with 20 percent down and a 30-year fixed loan and break even on the rent, then prices are fair.

In 1999, we bought two single-family investment houses in Camarillo to rent out. We paid about $200,000 each. With 20 percent down and a 20-year fixed rate loan at around 8 percent, the monthly mortgage payment, property taxes and insurance came to $1,400 a month. We were able to rent the houses for $1,450. Nice and balanced.

We are now looking for another investment property with the same parameters. With those same houses renting for about $1,900 a month, we would need to buy a home for $325,000. The payment on a 30-year loan with property taxes and insurance would be $1,900.

In our market, and we’ve been looking and making offers for several months, these houses are selling between $375,000 and $400,000. To save you from breaking out the calculator, that’s 13 to 19 percent higher than they should be.

At least now I know whom I have to believe. How about you?

Readying for spring

Fri, 29 Jan 2010 06:00:00 GMT

Spring is still far off, but I can’t help but think of warmer months and spending more time outdoors. So, it’s with interest that I read a piece on the National Wildlife Federation’s website, nwf.org, on how to get one’s backyard certified as a wildlife habitat. To get certified, there’s an application fee of $20, but once accepted, you’ll become a part of the National Wildlife Federation's Certified Wildlife Habitat program, which has more than 100,000 certified habitats across the U.S.

NWF.org provides pointers on how to make wildlife welcome in your backyard by adding such necessities as food sources like natural plants, berries and seeds; water, such as a from a birdbath or pond; places for cover or protection, such as a birdhouse; places to raise young, such as in shrubs or vegetation; and the use of sustainable gardening (e.g., using mulch and refraining from using harmful chemicals). The site has a great article on what to look in a birdbath, something which my own backyard lacks.

I love to watch birds, so if I can attract more feathered friends to my backyard, I’d be happy. I used to be good about refilling my backyard feeder with birdseed, and used to be able to watch quite a crowd of birds feeding there each winter. I’ve been lax about it this winter, so I have to get back on the job. I found this helpful video on creating a “bird sanctuary” in the backyard on YouTube.