6 Landscaping Tricks That Wow Buyers

In today’s market, sellers have to work harder to persuade buyers that their property is worth the bite.   Landscape designer Michael Glassman has cooked up a recipe for guaranteed curb appeal.

1. Add splashes of color. With every changing season, a landscape should provide a new display of colors, textures, and fragrances. “It’s best to use one or two and repeat them,” Glassman says. Example: white iceberg roses that bloom in spring, summer, and fall as a backdrop; in front, a contrasting punch of purple salvia or lavender that will flower at the same time; and as an accent, a crape myrtle tree that provides changing leaf colors in fall and interesting branches come winter.

 2. Size trees and shrubs to scale. These should be planted in the right scale for the house so that they don’t block windows, doors, and other architectural features on the home’s facade. A large two-story house can handle a redwood, Chinese pistache, sycamore, or scarlet oak, but a one-story cottage is better paired with a flowering cherry, crabapple, or eastern redbud. Too many trees cast too much shadow and cause potential buyers to worry about maintenance and costs.

3. Maintain a perfect lawn. A velvety green lawn demonstrates tender loving care, so be sure sellers’ homes don’t have brown spots. Some rocks, pebbles, boulders, drought-tolerant plants, and ornamental grasses will generate more kudos, especially in drought areas.

4. Light up the outside. Good illumination allows buyers to see a home at night and adds drama. Sellers should use low-voltage lamps to highlight branches of specimen trees, a front door, walk, and corners of the house. But less is better. The yard shouldn’t resemble an airport runway.

5. Let them hear the water. The sound of water appeals to buyers, and you shouldn’t just reserve this for your backyard. A small fountain accented with rocks provides a pleasant gurgling sound, blocks street noise, and is affordable.

6. Use decorative architectural elements. A new mailbox, planted window boxes, and a low fence wrapped in potato vines add cachet, particularly during winter months when fewer plants blossom. Colors should complement the landscape and home.  Just don’t overdo it:   Too much can seem like kitschy lawn ornaments.

It you are looking to buy, sell, lease or vacation in the US Virgin Islands let Jennie at Sea Glass Properties make your real estate transaction smooth sailing.  You may contact Jennie at jennie@myseaglassgirl.com, or go to www.myseaglassgirl.com. 

Source: Michael Glassman, landscape designer, Michael Glassman and Associates, Sacramento, Calif., http://www.michaelglassman.com

6 Tips for Home Owners Who Turn Into Landlords

 Home owners who decide to rent out their properties have to stop thinking of themselves as home owners and instead consider themselves as running a small business, experts say. Thinking like a businessperson means focusing on the monthly cost of maintenance, mortgage and taxes, as well as being aware of landlord-tenant regulations and avoiding liabilities.   Here are key issues to consider:

Set a fair rent.   Setting the right price will make it more likely that a landlord will be able to keep the place rented.

Understand landlord-tenant rules.   Running afoul of landlord-tenant regulations and rules regarding security deposits can be costly.

Screen applicants.   Eliminating potential tenants who can’t pay or who won’t take care of the property is very important.

Lay out the rules in a lease.   Widely available sample leases can help.   If you have questions, ask an attorney.

Consider a property manager.   Despite the expense, turning the job over to experts can help a landlord come out ahead.

Talk to the condo association.   If the property is a condominium, be prepared to deal with a host of regulations.

If you are considering renting your home or condo in the US Virgin Islands, consider Sea Glass Properties for the job.  We’ll take the stress out of screening applicants, creating a sound lease agreement, to collecting rent.  Contact Jennie today, at jennie@myseaglassgirl.com.  www.myseaglassgirl.com

When Will Home Prices Bottom Out?

Housing prices will hit bottom in the fourth quarter of 2009, predicts Moody’s Economy.com in a new report.

“Despite the darkening national economic outlook and the weak conditions in the housing market, some positive signs give hope that a bottom in the housing market is coming into view,” the report says.

On average, home prices will decline 36 percent from the peak in the first quarter of 2006, the report says.

By the end of the housing downturn, nearly 62 percent of the nation’s 381 metropolitan areas will have experienced double-digit-percent declines in house prices, peak-to-trough, says the report.

The declines will exceed 20 percent in about 100 metro areas, according to the report, scheduled to be discussed in a Webcast on Thursday.

The recovery will be “lackluster,” the report continues.

“A number of uncertainties in both the housing and economic outlooks remain, and the risks tilt to the downside,” says Moody’s Economy.com Chief Economist, Mark Zandi.

If looking to buy or sell real estate in the US Virgin Islands, Sea Glass Properties is your answer.  Sea Glass Properties is a full-service, boutique real estate firm located on the waterfront boardwalk of Yacht Haven Grande located in St. Thomas, USVI.  Contact Jennie at jennie@seaglassproperties.com, or www.seaglassproperties.com, or www.sellvi.com.

Source: The Wall Street Journal, James R. Hagerty (02/06/09)

Color Psychology: Choose the Right Color for Your Listings

For years, psychological research has been offering insights into how the brain reacts to color choices. Such research is often tapped by the marketing field in making products more desirable to buyers.

Can these same studies be applied to motivating such big purchases as a home? It’s a leap, but at a subconscious level, certain colors on walls may evoke buyers who enter a home to feel more welcoming and even warmer (which may be particularly nice for rooms in chilly areas of the home).

A recent study by lead researcher Juliet Zhu of the University of British Columbia found that red seems to improve attention to detail. (The findings appeared this month in the journal Science.)  The researchers speculated that we’re taught at a young age that red means danger so red might slow us down and prompt us to zoom in on details (so would that make it a good choice for, say, surrounding the fireplace or to bring out other key details in your listing?).

While color preferences and psychological responses vary, research has revealed some of the following commonalities, according to The Rohm and Haas Paint Quality Institute and Architects Design Group (also included below is suggestions of what rooms the color may work best in).

• Red: Increases energy and heart rate, creates excitement and stimulates the appetite. Best for: Dining rooms

• Orange: Adds comfort, warmth, and cheerfulness and too much can bring about feelings of cautiousness. Best for: Living rooms and family rooms

• Yellow: Brightens mood and promotes welcoming and joyful feelings; increases positive thinking. Best for: Poorly lit foyers and dark hallways; buttery shades of yellow for living rooms

• Green: Most restful color. Reduces nervous system activity and muscular tension, calms and relaxes, offers reminders of nature. Best for: Living rooms (light greens); accent for kitchens and dining rooms (midtones).

• Blue: Promotes feelings of calmness, security, tranquility, and cleanliness; lowers blood pressure, cools a room, and serves as an appetite suppressant. Best for: Bedrooms or any restful, peaceful area in a home.

• Purple: Boosts creativity, imagination, and meditation, but can have unpleasant subconscious responses. Many adults dislike purple walls, particularly lighter shades of purple that are perceived as more youthful. Best for: Children’s bedrooms and play areas.

If you are currently considering listing your home or property for sale in the US Virgin Islands, let Sea Glass Properties assist you in a successful real estate transaction.  Sea Glass Properties is a full-service, boutique real estate firm located on the waterfront boardwalk of Yacht Haven Grande in beautiful St. Thomas, USVI.  Contact Jennie at jennie@seaglassproperties, or www.seaglassproperties.com, or www.sellvi.com.

February 16, 2009 By Melissa Dittmann Tracey

5 Tips for Homebuyers Seeking a Mortgage

Here’s a warning for potential borrowers: Nervous lenders have tough new rules and are paperwork crazy. “Borrowers are going to have to prove they are the borrower they say they are,” says Keith Gumbinger, vice president of HSH Associates, a mortgage-industry publisher in Pompton Plains, N.J. Gumbinger says homebuyers should consider these things before they apply for a loan.

1. Down payments are critical. Borrowers should expect to put down at least 10 percent for a “conforming loan” – a mortgage that Fannie Mae and Freddie Mac will purchase.

2. Credit scores count. A 720 on the 850-point FICO rating scale will get a borrower access to the best rates. Rich Bira, branch manager of FCM Direct Lender in Chicago, says: “A score between 720 and 739 gets 0.125 percent added to the rate, a score between 700 and 719 gets 0.375 percent added to the rate, and a score between 680 and 699 gets 0.5 percent added to the rate.”

3. Consider VA and FHA. Borrowers without down payments or with less than stellar credit scores should consider these government-insured loans offered through the Federal Housing Administration of the Veterans Administration.

4. Unearth the records. Before applying, borrowers should organize tax, banking and other records that prove income, savings and debts. They should also expect to be patient about what may seem to be endless requests for information.

 5. Get rid of debts. Limiting debts, including what borrowers expect to pay for the mortgage, to less than 43 percent of gross income is important.

If looking to buy or sell a home in the US Virgin Islands, Sea Glass Properties is your answer.  We are a full-service,  boutique firm located on the waterfront boardwalk in Yacht Haven Grande, located in beautiful St. Thomas, USVI.  Contact Jennie of Sea Glass Properties at jennie@seaglassproperties.com, or www.seaglassproperties.com, www.sellvi.com.  

Source: Chicago Tribune, Mary Umberger (02/15/09)

Selling Your Home? Simple Tips That Lead to Better Home Showings

Simple Tips for Better Home Showings

 1. Remove clutter and clear off counters. Throw out stacks of newspapers and magazines and stow away most of your small decorative items. Put excess furniture in storage, and remove out-of-season clothing items that are cramping closet space. Don’t forget to clean out the garage, too.

2. Wash your windows and screens. This will help get more light into the interior of the home.

3. Keep everything extra clean. A clean house will make a strong first impression and send a message to buyers that the home has been well-cared for. Wash fingerprints from light switch plates, mop and wax floors, and clean the stove and refrigerator. Polish your doorknobs and address numbers. It’s worth hiring a cleaning service if you can afford it.

4. Get rid of smells. Clean carpeting and drapes to eliminate cooking odors, smoke, and pet smells. Open the windows to air out the house. Potpourri or scented candles will help.

5. Brighten your rooms. Put higher wattage bulbs in light fixtures to brighten up rooms and basements. Replace any burned-out bulbs in closets. Clean the walls, or better yet, brush on a fresh coat of neutral color paint.

6. Don’t disregard minor repairs. Small problems such as sticky doors, torn screens, cracked caulking, or a dripping faucet may seem trivial, but they’ll give buyers the impression that the house isn’t well-maintained.

7. Tidy your yard. Cut the grass, rake the leaves, add new mulch, trim the bushes, edge the walkways, and clean the gutters. For added curb appeal, place a pot of bright flowers near the entryway.

8. Patch holes. Repair any holes in your driveway and reapply sealant, if applicable.

9. Add a touch of color in the living room. A colored afghan or throw on the couch will jazz up a dull room. Buy new accent pillows for the sofa.

10. Buy a flowering plant and put it near a window you pass by frequently.

11. Make centerpieces for your tables. Use brightly colored fruit or flowers.

 12. Set the scene. Set the table with fancy dishes and candles, and create other vignettes throughout the home to help buyers picture living there. For example, in the basement you might display a chess game in progress.

13. Replace heavy curtains with sheer ones that let in more light. Show off the view if you have one.

14. Accentuate the fireplace. Lay fresh logs in the fireplace or put a basket of flowers there if it’s not in use.

15. Make the bathrooms feel luxurious. Put away those old towels and toothbrushes. When buyers enter your bathroom, they should feel pampered. Add a new shower curtain, new towels, and fancy guest soaps. Make sure your personal toiletry items are out of sight.

 16. Send your pets to a neighbor or take them outside. If that’s not possible, crate them or confine them to one room (ideally in the basement), and let the real estate practitioner know where they’ll be to eliminate surprises.

17. Lock up valuables, jewelry, and money. While a real estate salesperson will be on site during the showing or open house, it’s impossible to watch everyone all the time.

18. Leave the home. It’s usually best if the sellers are not at home. It’s awkward for prospective buyers to look in your closets and express their opinions of your home with you there.

If buying or selling property in the US Virgin Islands, let the team at Sea Glass Properties assist you in making it a successful and pleasant transaction.  Contact Jennie, jennie@seaglassproperties.com, or www.seaglassproperties.com.

4 Tips to Getting a Home Loan

These days one of the biggest impediments to closing a real estate sale can be the buyer’s ability to get a mortgage.

Here are some tips for anyone who hopes to land a loan:

• Turn to the government. The biggest source of loans these days is the Federal Housing Administration (FHA) and the Veterans Administration (VA). These programs accept borrowers with lower credit scores and allow them to put down as little as 3.5 percent of the purchase price.

• Document, document, document. Borrowers will need bank statements, brokerage statements, W-2 forms and tax returns.

• Boost credit scores. Borrowers should avoid having more than one-third of their maximum borrowing capacity outstanding on one credit card. If necessary, rotate the debt among several cards.

• Work your connections. Comparison shopping is easy online, but if your customer has an established relationship with a local bank, suggest they try that lender first.

If looking to purchase a home or property in the US Virgin Islands, let the team at Sea Glass Properties assist you!  Contact Sea Glass agent Jennie Rosenberg at jennie@seaglassproperties.com to make your dreams of living in paradise a reality!
Source: BusinessWeek.com, Christopher Palmeri (01/23/09)

6 Creative Ways to Afford a Home

1. Investigate local, state, and national down payment assistance programs. These programs give qualified applicants loans or grants to cover all or part of your required down payment. National programs include the Nehemiah program, www.getdownpayment.com, and the American Dream Down Payment Fund from the Department of Housing and Urban Development, www.hud.gov.

2. Explore seller financing. In some cases, sellers may be willing to finance all or part of the purchase price of the home and let you repay them gradually, just as you would do with a mortgage.3. Consider a shared-appreciation or shared-equity arrangement. Under this arrangement, your family, friends, or even a third-party may buy a portion of the home and share in any appreciation when the home is sold. The owner/occupant usually pays the mortgage, property taxes, and maintenance costs, but all the investors’ names are usually on the mortgage. Companies are available that can help you find such an investor, if your family can’t participate.4. Ask your family for help. Perhaps a family member will loan you money for the down payment or act as a co-signer for the mortgage. Lenders often like to have a co-signer if you have little credit history.5. Lease with the option to buy. Renting the home for a year or more will give you the chance to save more toward your down payment. And in many cases, owners will apply some of the rental amount toward the purchase price. You usually have to pay a small, nonrefundable option fee to the owner.6. Consider a short-term second mortgage. If you can qualify for a short-term second mortgage, this would give you money to make a larger down payment. This may be possible if you’re in good financial standing, with a strong income and little other debt.

 

 

 

 

If you are looking to buy or sell property in the US Virgin Islands be sure to contact Jennie at Seaglass Properties located on the boardwalk of beautiful Yacht Haven Grande, St. Thomas.  jennie@seaglassproperties.com; http://www.seaglassproperties.com

What is a 1031 Exchange?

There are many complex rules governing 1031 exchanges, but one of the most important rules is easy to remember: “If you take the cash, you pay the taxes,” said Craig Brown, a vice president of IPX1031 Exchange, which specializes in exchange transactions.2008 REALTORS® Conference & Expo in Orlando officially kicks off on Friday, Nov. 7 and runs through Monday, Nov. 10.

He instructed a preconference course in Orlando on 1031 Exchanges. The

If a seller exchanges one like-kind investment property for another, and the transaction results in any cash for the seller, that amount is taxable—even if the seller is taking on additional mortgage debt.

“Debt does not offset cash,” said Brown, who is based in Dallas.

Capital Gains Concerns

If your client expects to see cash from a 1031 exchange, it may be better to initiate the transaction in 2008, when the capital gains tax rate is only 15 percent, he said.

“You can’t predict what will happen next year to the capital gain rate, but many of my clients are concerned Congress will increase it next year, and they want to take advantage of the current rate,” Brown said.

If an exchange isn’t completed until 2009, the investor may choose to pay taxes on the gain in either 2008 or 2009 under IRS installment sales rules.

What Qualifies as a 1031?

To qualify for a 1031 exchange, a property must meet four basic rules:

1. Be held for an investment or used for productive purposes in a business.
2. Be exchanged with a like-kind property (any other type of real estate).
3. Investor must identify replacement properties for the one being exchanged within 45 days.
4. Exchange transaction must be completed within 180 days.

While it’s not possible to exchange a principal residence, a recent court ruling has clarified rules that make it possible to exchange a second home or a vacation home, Brown said.

The property must meet these requirements: The owner has held the property for at least two years; rented the property for at least 14 days per year at fair market value; and used the property personally for no more than 14 days of each year.

Dream House Rules

The same ruling spelled out circumstances under which owners could defer taxes when exchanging any type of investment property for a “dream house,” that they will eventually live in full-time.

First, the investor must rent out the dream home for 14 days a year for at least two years, and use it for no more than 14 days per year. At the end of the two-year span, the home could be converted to a principle residence for the owner’s use.

The two-day session on 1031 exchanges was presented by the REALTORS® Land Institute. For more information, visit http://www.riland.com

—Mariwyn Evans

Understanding Agency Relationships in a Real Estate Transaction

 

Understand Agency Relationships

It’s important to understand what legal responsibilities your real estate salesperson has to you and to other parties in the transaction. Ask what type of agency relationship your agent has with you:

 

Seller’s representative (also known as a listing agent or seller’s agent)

A seller’s agent is hired by and represents the seller. All fiduciary duties are owed to the seller. The agency relationship usually is created by a listing contract.

 

Buyer’s representative (also known as a buyer’s agent)

A buyer’s agent is hired by prospective buyers to represent them in a real estate transaction. The buyer’s rep works in the buyer’s best interest throughout the transaction and owes fiduciary duties to the buyer. The buyer can pay the licensee directly through a negotiated fee, or the buyer’s rep may be paid by the seller or through a commission split with the seller’s agent.

 

Subagent

A subagent owes the same fiduciary duties to the agent’s customer as the agent does. Subagency usually arises when a cooperating sales associate from another brokerage, who is not the buyer’s agent, shows property to a buyer. In such a case, the subagent works with the buyer as a customer but owes fiduciary duties to the listing broker and the seller. Although a subagent cannot assist the buyer in any way that would be detrimental to the seller, a buyer-customer can expect to be treated honestly by the subagent. It is important that subagents fully explain their duties to buyers.

 

Disclosed dual agent

Dual agency is a relationship in which the brokerage firm represents both the buyer and the seller in the same real estate transaction. Dual agency relationships do not carry with them all of the traditional fiduciary duties to clients. Instead, dual agents owe limited fiduciary duties. Because of the potential for conflicts of interest in a dual-agency relationship, it’s vital that all parties give their informed consent. In many states, this consent must be in writing. Disclosed dual agency, in which both the buyer and the seller are told that the agent is representing both of them, is legal in most states.

 

Designated agent (also called appointed agent)

This is a brokerage practice that allows the managing broker to designate which licensees in the brokerage will act as an agent of the seller and which will act as an agent of the buyer. Designated agency avoids the problem of creating a dual-agency relationship for licensees at the brokerage. The designated agents give their clients full representation, with all of the attendant fiduciary duties. The broker still has the responsibility of supervising both groups of licensees.

 

Nonagency relationship (called, among other things, a transaction broker or facilitator)

Some states permit a real estate licensee to have a type of nonagency relationship with a consumer. These relationships vary considerably from state to state, both as to the duties owed to the consumer and the name used to describe them. Very generally, the duties owed to the consumer in a nonagency relationship are less than the complete, traditional fiduciary duties of an agency relationship.