Home Checklist Before You Sell

Add These To-Dos to Your Presale Checklist
Before booking your market evaluation appointment to discuss listing strategy, here are a few things you can do to prepare for a speedy sale.

Handle Repairs - Take care of easily fixed repairs that may be potential red flags for buyers. Common quick fixes include repairing drywall, repainting walls (in neutral colors) and oiling hinges.

Declutter - Take this opportunity to get rid of those seldom used items that are cluttering up your home. Remember, it costs to move them so now is the time to let them go!

Start Packing - Store out-of-season clothing, sports gear and small appliances you know you won't need before the move. Too much stuff crammed into cupboards and closets will make your home seem small.

Downsize Furniture - Consider removing extra or large pieces of furniture that make your home look smaller. You may want to stage specific rooms to highlight potential uses for the space.

Depersonalize - Tuck away family photos, collectibles and any other personal items. It's important to make your home a "blank canvas" for potential buyers to imagine themselves in. It is also wise to not have personal items out that could target your family in any way while prospective buyers visit your home.

Check Curb Appeal - Plant colorful annuals along sidewalks and in containers, and remove any debris or clutter from around your home. Many buyers will preview a home from the outside before deciding whether or not to schedule a showing.

I have a very detailed pre-listing checklist that I would be happy to share with yo., Contact me today.

Simple Plumbing Tips

Plumbing Maintenance 101

The trouble with having a home plumbing problem is that it usually happens at the most inopportune time. Although, when is there ever really a good time to for a plumbing mishap to occur? The good news is, there are ways you can prevent the unexpected messiness simply by taking a few proactive steps. For your sink: Avoid pouring grease, cooking oils, or fats down your drain. These liquids can solidify in your drain and lead to clogging problems. Run your water for at least 15 seconds after turning your kitchen disposal off. This will help clear your drain of any food remnants. For your shower and bathtub: Have a strainer for each drain to catch hair and pieces of soap. Clean your strainers regularly to avoid build ups. For your toilet: Test for leaks. Simply place a few drops of food coloring in the upper tank of your toilet. After a few minutes, check to see if any of the color is present in the bowl. If so, you should have your Handyman Connection professional inspect the toilet for leaks that could be caused from a worn ball or flapper. Do not treat your toilet as a flush-able wastebasket. Items like facial tissue, cotton balls and diapers do not disintegrate and should never be flushed down a toilet.

Remodeling Your Bathroom?

Know your budget.
With any home remodeling project you take on, the best starting point is always the budget. From choosing a new tile to installing a new sink, the cost of renovation can rise up faster than you think. Establishing a fixed price point will help you set boundaries to your design and understand what options are available to satisfy the look you are working to achieve. Are you going to do all or some of the work yourself or are you going to higher a professional? I have a list of professionals that I would highly recommend, so feel free to contact me for referrals.

Determine your necessities.
If you are on a tight budget, take a minute to observe all aspects of your current bathroom. Decide which items are a “must change” and which ones can be compromised. There may be some items that can be refinished rather than replaced. Doing a simple resurface to your bathtub or sink may add the perfect sleek look you're going for and cost just a fraction of the price of a replacement.

Pay attention to the details. 
Some of the most effective updates in a bathroom can be found in the smallest details. Changes to the hardware, such as faucet handles or drawer knobs, can make a huge impact on the overall look of your design. Adjusting the brightness in your lighting can also give an entire new character to your space. Dim lighting can give your bathroom a feel of relaxation. Whereas, bright lighting can make a small bathroom seem larger. Although remodeling can seem overwhelming and fast-paced, it’s important to keep in mind that the details do matter.

I love This Old House and find this article has a lot of great pointers.

Converting a Home to a Rental

A simple decision to rent your current home instead of selling it when moving to a new home could have far reaching consequences.

If you have a considerable gain in a principal residence and you rent it for more than three years, it can lose the principal residence status and the profit must be recognized.

Section 121 provides the exclusion of capital gain on a principal residence if you own and use it as such for two out of the last five years.  This would allow a temporary rental for up to three years before the exclusion is lost.

Let’s assume there is a $100,000 gain in your principal residence.  If it qualifies for the exclusion, no tax would be owed. If the property had been converted to a rental so that it didn’t qualify any longer, the gain would be taxed at the current 20% long-term capital gains rate and it may incur a 3.8% surcharge for higher tax brackets.  At least $20,000 in taxes could be avoided by selling it with the principal residence exclusion.

Depreciation, a tax benefit of income property, is determined by the improvement value at the time of purchase or at the conversion to a rental whichever is less.  If the seller sold the home and took the exclusion and then, bought an identical home for the same price, he would be able to have 60% more cost recovery and avoid long term capital gains tax.



It is always recommended that homeowners considering such a conversion get advice from their tax professional as to how this will specifically affect their individual situation. And of course, I would be happy to discuss your options with you.

Home Renovation?

With the start of a new year, many homeowners are considering renovating their properties to add value.

The question is: How do you plan to finance it? With home prices recovering, many homeowners are tapping their home’s equity to pay for projects.

But is that always a good idea?

I found an interesting, and relevant, article on CNN Money called “5 things to consider before tapping your home for cash.” It provides some useful information and food for thought.

I know you’re busy, so I put together some of the key points from the article:

1. If you locked in an ultra-low rate in the past few years, a home equity loan could save you more money than refinancing.

2. The price you’ll pay up front to get a home equity loan is far cheaper than refinancing.

3. Refinancing your home starts your payment schedule over again (15 year, 30 year loan, etc.) whereas a home equity loan has it's own payment schedule leaving your current mortgage alone.

4. Using a home equity loan to increase the value of your home or increase your business value through further education can be smart. Using it to purchase a new car or go on vacation can be foolish.

5. Home equity loans are often adjustable, meaning there is a risk your payments will rise.

6. There can be tax benefits with a home equity loan (just as with your primary mortgage).
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If you want some of the finer details from the article, you can read the whole thing here.

The article does a great job of weighing the pros and cons of borrowing against your home to finance home renovations.

If you are still on the fence about this form of financing, you can always give me a call. I’ve been in the business a long time, and I would love to go over your options with you.

December 2014 El Paso County Colorado Housing Market Stats

Following are statistics for the month of December 2014 for Colorado Springs and surrounding areas in El Paso County (new and existing single family and patio homes).

There is currently a 2.7 month supply of active inventory. 5.5 months is considered optimum and a balanced market.

- Listings Sold: 788 (November: 699)
- Median Sale Price: $225,000 (November: $220,000)
- Average Sale Price: $253,122 (November: $247,704)
- Average Days on Market: 95 (November: 89)
- Sale Price/List Price: 98.4% (November: 98.3%)
- Total Active Listings as of 12/31/14: 2,146 (11/30/14: 2,609)
- Median List Price: $275,000 (November: $279,900)
- Average List Price: $381,973 (November: $388,948)
- Pending Sales as of 12/31/14: 283; as of 11/30/14: 291

[This representation is based in whole or in part on information from the Pikes Peak Association of REALTORS, the Colorado Springs REALTOR Services Corp., or its PPMLS. Neither the Association, the RSC, nor the PPMLS guarantees or is in any way responsible for its accuracy. Data maintained by the PPMLS does not reflect all real estate activity in the market.]

Developers of Colorado Springs hotel and water park ready to break ground

Developers of Colorado Springs hotel and water park ready to break ground

Get Ready to Garage Sale

I realize it's January and thinking about a garage sale might seem a bit 'off season' for you, but it's never too early to start planning. Now is the time when you can be preparing for spring cleaning, setting aside things you know you want to sell and getting ready for good weather and a garage sale.

 A well-planned garage or yard sale can make room in your home, get rid of unused items and make some money but it needs some planning to be successful.

Start early to research and plan

Promotion is key

Display items attractively

Price items right

Organize checkout

Saturdays are generally the best day but there may be some exceptions.  Experienced garage-salers believe that a well-planned one-day event will do as well as a multi-day event.  Serious purchasers will look for the “new” sale and most people don’t come back multiple days.

Advertise in local newspapers and free online classified sites like craigslist.  If several families are going together for the sale, mention that in the ad; it will be a big draw.  Mention your bigger-ticket items like furniture, equipment and baby items.

Garage sale signs can be purchased or made at Staples, Fedex Office or Kwik Signs.  Signs need large lettering so they’re easy to read while people are driving. Most important info: Garage or Yard Sale, address, date and time.  Directional signs are also important.  Balloons and streamers to attract attention to the signs are very helpful.

Consider using the service Square so that you can take credit cards. The cost is 2.75% per swipe and can be done on your smartphone or iPad.  You’ll need to sign up at least two weeks in advance to receive your card reader. This is a very useful tool, because even with the fee you pay per swipe, you make a sale that you wouldn't otherwise make if people don't have enough cash on hand.

People will want to bargain; it’s the nature of the game.  Consider this strategy: less negotiations early in the sale and possibly, more toward the end of the sale.

Happy early spring cleaning!

Tips to Save Energy & Money

Saving energy in your home can be easier than you think. By completing these two energy-saving tasks, you may be surprised by the amount of money you can save.

Turn Down Your Thermostat
Did you know that you can reduce your home’s energy consumption by over 5% just by adjusting your thermostat down to 1 degree less? You won’t notice the difference in temperature but you will notice the difference in your savings come end of the month. A great thermostat to consider is Nest.

Lower Your Hot Water Temperature
If your water temperature is set too high (around 140ºF or higher), your water heater could waste anywhere from $36 to $61 annually in standby heat losses and more than $400 in demand losses. To avoid this, set your water heater thermostats to 120ºF. This temperature will also help slow mineral buildup and corrosion in your water heater and pipes.

Minimize Phantom Loads
The term “phantom load” refers to the energy that an appliance or electronic device consumes when it is not actually turned on. According to the U.S. Department of Energy (DOE), “In the average home, 75 percent of the electricity used to power home electronics is consumed while the products are turned off.” A report from the University of California Berkeley says that phantom loads account for about 6 percent of all national residential electricity consumption. You can eliminate phantom loads by unplugging appliances and electronics when you are not using them, or by plugging them into a power strip, and turning the strip off when they are not in use. Visit here for more information.

Seal Air Leaks
You should also look for any small cracks and gaps where air is leaking into and out of your home. Energy Star says that between improving insulation and sealing leaks, homeowners could potentially save 10 percent on their annual energy bill. If searching for leaks sounds like a daunting task, you can hire an energy auditor to assess your house and find problem areas.

Here's a list of 100 ways to save energy at home.

How a Paper Clip was Traded for a House

This isn't new news... but, I was fascinated when I read the true story about a man who started with one red paper clip and traded his way up until he owned a house. Have you read his story?