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Make the most of your home investment

Ask our broker Starting Over:The Stager Stages Her Own Home
QandA WITH PETER G. MILLER
HERE IS A MAKEOVER story from
my own life. In December of
2002, the 350-year-old California
white oak in our back yard came
crashing through the roof. It
They Say I Owe, I Say No. How destroyed our home and nearly
Do I Clear Up My Mortgage took our lives.We were unhurt,
but our home was a wreck.The
Tiff?
Q: My mortgage was paid in full
MAKEOVERS
rain that poured through the
openings in the roof damaged
much of our furniture.We had to
move out and soon began plans
to rebuild our home.
We found a beautiful, brand
by Kit Davey
new house close by to rent.The
owner told us that he planned to
sell it within a year or so, and
was delighted to find out I was a
professional stager. He asked me
to stage the house with my furni-
ture when it was time to sell.
We moved in with a few sal-
vaged odds and ends, but no
major furnishings.The challenge
was to find new furniture that
could be delivered quickly,
which would fit in the rental and
later into our reconstructed

Comstock
in December of 2003, yet the mort-
gage company says I still owe
money and credit-reporting bureaus
show the loan as unpaid. What can I
do?

A: By any chance, are there fees or penalties still

outstanding?
Under the Fair Credit Reporting Act (FCRA) you have
a right to challenge credit report items that you feel are
factually inaccurate. Send a letter by certified mail with
a return receipt requested, with copies of documents
(not the originals) supporting your claim, to each of
the major credit reporting agencies. In most cases cred-
it bureaus then have 30 days to respond.
Also, under the Real Estate Settlement and
Procedures Act you have a right to send a “qualified
written request” to your lender if you believe there is a
problem with your loan.The lender must acknowledge
your letter within 20 days after receipt.Within 60 days
the lender must either correct the account or deter-
mine that it’s accurate.Again, provide copies of docu-
ments to support your claim and send everything by
registered mail with a return receipt requested. Speak
with an attorney for further information.

Q: I have a Web site to sell my own land. Can I

list someone else’s land on my Web site for sale
without being a real estate broker? Real estate agents and brokers can make the house hunting experience more efficient by providing professional and accurate information.

A: In general terms and with some exceptions, you

need a broker’s license to represent another for a fee ‘Get Your Ducks in a Row’:
in the sale, purchase, rent, exchange or management of
real estate.
A publication issued primarily for the purpose of list-
ing or selling real estate also may require a brokerage
How to House Shop and Still Have a Life
license. However, such rules have been challenged as BY CHARLES SCUTT That’s why managing your time is impor- municates what is important to them, the
abridgements of the First Amendment.As an example, Content That Works tant. But you don’t want to rush the process, more efficient their agent can be, not wasting
in forsalebyowner.com v. Zinneman, California’s law either.The solution is to get organized and to the buyer’s time showing them properties

prohibiting the right of unlicensed Web sites to adver-
tise real estate was struck down last November.
Given that limitations on Web site advertising may
still exist in other jurisdictions, it would be prudent to
contact your regulators to determine their view in light
of the recent California decision.An attorney can pro-
vide detailed advice.
Q: We have a rental property that produces
$1,000 a month free and clear. We now want to
sell but must exchange for tax reasons. Does it
S
hopping for the right home can be an
exciting experience. But the cold, hard
truth is that your house hunt is a race
against the clock.
Perhaps your rental lease is soon to expire
or you want to move the kids into a new
home before the start of the next school
year.You’re probably eager to sign on the dot-
ted line before interest rates creep up any
higher.And you can’t help but look over your
shoulder and worry about the other persist-
ent shoppers ready to do bidding battle with
you for the same dream home. In this game,
you’ve got to move fast.
trust in the expertise of a professional.
Real estate agents and brokers can make
the house hunting experience more efficient
by providing professional and accurate infor-
mation about the areas buyers want to
search, says David Barca, senior broker for
ZipRealty Inc., Emeryville, Calif.
“Agents can help narrow searches,” Barca
says. On home visits,“They can highlight
details that buyers might otherwise overlook,
and provide third party feedback on any con-
cerns or issues.”
Be clear and pointed about your goals
with your agent.“The more the buyer com-
that don’t meet their ‘must have’ criteria,”
Marguleas says.
Agents with good computer skills and
access to comprehensive Web sites can make
the home shopping experience easier and
faster for buyers, notes Anthony Marguleas,
owner/broker of A.M. Realty in Pacific
Palisades, Los Angeles.Via the Internet, agents
can screen properties, e-mail photos and
details and send buyers virtual tours, maps,
details of schools and more.
In Marguleas’ office, for example,“We set
up a dedicated Web site for clients to view
any properties relevant to their search and e-

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 MAKEOVERS
AFTER
BEFORE

home, and which would also
be appropriate for staging.
BEFORE:
Major pieces were needed
to create a simple conversa-
tion area.
The room didn’t have a fire-
place so I would have to cre-
ate a focal point to help the
space feel pulled-together and
balanced.
There were too many
accessories and too many col-
ors.The room needed a bal-
anced color scheme and art-
work chosen to create flow.
AFTER:
After a shopping whirl-
wind, I found a basic couch
and matching chairs (on sale!)
that could be delivered in 10
days.A khaki-colored sofa and
chairs allowed for lots of flexi-
bility. Note: If you have outdat-
ed or soiled furniture, consid-
er buying new pieces to stage
your home and then move
them into your new home.
One large, colorful piece of
art over the couch created a
strong focal point.
I selected three colors to
repeat in the space and left
only a few accessories on each
surface. My dog, Katy (resting
on the couch), is my favorite
accessory.
© Content That Works
Kit Davey, an
interior designer
based in
Redwood City,
Calif., helps Ask our broker
clients redeco-
rate their homes
through the cre- make sense to buy a home of equal value (and
ative use of their avoid capital gains taxes) or might there be a rea-
existing furnish- son to simply sell and live with the tax?
ings.
A: Before selling, consider that you have an asset
which now produces $1,000 a month in profit.Would
you get more with another property?
Suppose you refinanced the property so as to support
a larger mortgage.That $1,000 would allow you to bor-
row an additional $166,000 at 6 percent over 30 years.
You should ask if it makes sense to hold the property
and refinance rather than sell. For example, do you
believe that values and rents will rise? Are vacancies,
management and repairs a problem? Do you have a use
for the cash beyond real estate – perhaps paying college
tuition or starting a business?
To take this a step further, perhaps you could sell and
acquire a property that produces more than $1,000 a
month.The replacement property could then be refi-
nanced to produce cash.
For further information, speak with local real estate
brokers to review area values and returns.

Q: In my area there are a lot of new develop-

ments coming up near the railway track. Do such
properties have a good re-sale value?

A: Being near a rail line is surely something for resi-

House shopping
mail them new details as soon as
we get them,” he says.
Before setting foot in a single
house, get your thoughts in
order and committed to paper.
“Write out a list of your wants
and needs and give it to your
agent or broker,” says Marguleas.
“See if your agent has a checklist
that you can go through together
to decide what, in your prospec-
tive new home, is a ‘must have’
and what is a ‘would like to
have.’
Two people buying a home
together, whatever their relation-
ship, should complete a joint
checklist before embarking on a
house hunt.“It’s amazing how
often a couple will go out look-
ing for a home and realize that
they both want completely dif-
ferent things, from style to space
to location,” Marguleas says.
Barca suggests creating a
home buying notebook with
pockets for storing important
documents and notes. Keep a
record of all conversations
you’ve had with your agent in
addition to important pre-
approval letters, home inspec-
tion results and deadlines you
must meet.
In that notebook,“make a list
of three to five things you are
not willing to sacrifice under any
circumstance,” says Barca.“List
three to five other things that are
‘nice-to-haves.’ Refer to the list
throughout your search to
remind yourself what is most
important.”
When touring homes, make a
note about what you liked and
did not like about each property.
“After each trip, review your
notes and highlight the common
themes,” Barca says.“Revise and
refine your criteria based on the
reality of what is on the market
and your preferences in practice
rather than just in theory.”
A rating system can come in
handy, says Marguleas. Document
some of your observations and
note-worthy amenities, and rate
them on a scale from 1 to 10 –
with one being low, 10 being
high.Talk to your agent about
how you reached that rating.
Finally,“narrow the selection
of homes to choose from so the
decision-making process isn’t
overwhelming,” says Barca.“For
every three homes you see, set
aside two and eliminate one
from the pack.Then ask yourself,
‘If this were the last property in
the neighborhood, would you
buy it?’ If yes, then consider mak-
ing an offer.”
When it comes to pursuing
properties in the 21st century,
perhaps the greatest aid to sim-
dential buyers to consider.There are possible issues of
noise, vibration and safety. For some buyers such con-
cerns cannot be overcome by low pricing.
That said, real estate is a localized commodity.There
are instances where locations by and above rail lines are
extremely desirable. For instance, some portions of the
plify your search is cyberspace.
Do your homework online by Washington-area subway system run on track above
researching visit-worthy resi- ground – tracks that are just a few feet away from regu-
dences and surfing builder/real lar rail lines. New condos and other development near
estate Web sites ahead of time. subway stations, and thus near rail lines, are highly
“Buyers should look at homes prized.
online first so they can read over
Another example concerns residential units actually
the description, view digital pho-
tos and take 360-degree virtual built over railroad lines. Such “air rights” properties are
tours,” says Barca. often located in the center of major metro areas.The
You can save countless hours actual rail lines below a building may be entirely
by carefully choosing your pre- unseen, unheard and unfelt.
ferred neighborhood first or nar- In other words, when looking at real estate there is
rowing the field to three or four
more than one issue to consider. Maybe in your commu-
areas where you could envision
living for at least four years, nity locations near a rail line are less prized – but if
Barca suggests. prices are sufficiently below comparable properties or
Be sure to come to the home there are other attractions, such rail-site homes may
search process with pre-approval well be desirable.
secured for your mortgage,” says
Paul Purcell, a partner with
Braddock + Purcell, a New York © Content That Works
City residential real estate
agency.“While a mortgage bro-
ker may approve you for a home Do you have a question or a quandary about buying, sell-
that’s much more expensive ing or renting? Peter G. Miller, author of The Common-Sense
than you anticipated buying, this Mortgage, specializes in providing real solutions to real estate
may not be prudent. Determine dilemmas. E-mail your questions to
what you are comfortable spend- peter@contentthatworks.com.
ing on a monthly basis on your
mortgage. Get all your financial
ducks in a row before pounding
the pavement.”
© Content That Works

© 2005 Content That Works – All Rights Reserved • contact us at 866-6CONTENT or CONTENTTHATWORKS.com for licensing information.