Can You Afford to Buy a House?
Monday, November 24, 2003
Get Floored On A Budget
by Michele Dawson
Is new flooring in your future? If you're on a tight budget or not able to afford to install new tile, wood, laminate or carpet throughout your entire house, consider a room or two at a time, or customize what you have.
The World Floor Covering Association suggests a handful of flooring ideas if you're on a budget.
"There are a number of affordable ways to make a statement without changing your whole home," the association says on its website.
Depending on your budget, there are many things you can do to make an impact underfoot, including:
$50 to $100 - Bring some color and texture to your room with an updated circular or rectangular area rug. A three-by-five-foot rug in a hallway or under a coffee table can bring a fresh look to a room.
$500 - Redo the foyer with stone-look ceramic tiles. Or install pre-finished hardwood floors in the entryway. Or add a four-by-six area rug to your dining room.
$1,000 - Replace the flooring in the high-traffic areas with tile, laminate or hardwood. Or if your kitchen needs some sprucing up, the WFCA suggests new resilient flooring that mimics tile or wood. If it's the living room that needs attention, consider Saxony nylon carpet with the latest "undercushion" for ultimate padded comfort.
$3,000 - Try out ceramic tiles in your entryway, hallway, kitchen and dining room. Tiles come in an array of patterns, matching any style. Or you may want to consider hardwood or laminate floors if you're seeking a minimalist look. You can also bring plush new carpet to your family room, home office, staircase and hallways.
$5,000 - Try mixing and matching; perhaps tile or resilient floors in the kitchen, hardwood in the hallways and carpet in the living room and bedrooms. Or indulge in luxurious, plush carpet in the master bedroom suite and add a lower grade to the high-traffic areas.
$8,000 - Customize to create the floors of your dreams.
When it comes to what today's homeowners want in their flooring, individuality is key.
The National Wood Flooring Association says homeowners with existing plain wood floors can customize them by adding a painted border, a different species of wood in a border or accent, or darkening the floor.
"Custom wood floors add so much beauty to a home," said Ed Korczak, executive director of the NWFA. "Traditionally, custom floors have been expensive. But with a little imagination, consumers can have a unique floor on a budget."
Homeowners want unique looks for their carpet, too.
"Today's shopper is looking for freshness and innovation," said Pam O' Toole, carpet fashion coordinator for Shaw Industries. "The perception of carpet is changing as more styling options with unique textures, patterns and colors are available. There are literally thousands of different 'looks' on the market today."
The WFCA says many want an "old" look.
"Rustic, weathered and antique looks are the hottest thing going in hardwood, ceramic and stone ... The old-but-new look surfaces on many varieties of hardwood which display texture with hand carved groves and knots; tiles, reminiscent of linen; and marble, limestone and travertine tumbled and distressed to appear antique," the WFCA says on its website. "Some of the wood manufacturers are even hand beveling and distressing individual planks and then finishing them to achieve the appearance of a century old wood floor. This weathering technique assures no two floors look exactly alike."
Published: November 24, 2003
Monday, November 17, 2003
What To Do If You Have To Move In A Hurry - And Still Have A House To Sell
by Michele Dawson
Sometimes there's no avoiding it. A new job offer or promotion demands you be in a new city in two weeks. Or maybe your new house is ready and you want your kids to be able to start the school year in their new school. Whatever the case, sometimes you have to move before your house is sold.
If you've already sold your house, the process will be much easier -- you'll just have the closing and paperwork to tend to once you move.
But if your house is on the market, or perhaps isn't even listed yet, then trying to sell it while you're in a new town -- or even in the same town in a new house -- can be more of a challenge. If it's a new-job situation, sometimes it makes sense for the spouse with the new position to go on ahead while the other stays behind to tend to house-selling matters. If that's not possible, there are a number of things you should do to ensure your house remains secure, retains its curb appeal and sells as quickly as possible, including:
Stay in close contact with your real estate agent. If you're selling long distance you'll have to rely on your agent or Realtor more than if you still lived in the house. Stay updated on how many people are viewing the house and see what feedback your agent is getting. If possible, try to leave some of your furnishings in the house. A furnished house is much more attractive than an empty one. You could even contact a special staging company in which you could rent furniture to fill out the rooms. If your house will be vacant, consider leaving some photos behind of the furnished rooms so those looking at your house have an idea of how much better it looks when furnished. Large prints -- like 8x11 inches -- assembled in an album would be better than a hodgepodge of snapshots.
Make sure the curb appeal lasts. That means you'll need to hire someone to mow your lawn, rake the leaves, or shovel the snow.
Spruce up your landscaping before you leave. Plant some new shrubs, lay down some fresh ground cover, or brighten it up with some colorful annuals. If you are leaving the house empty, go through the house and touch up the paint where necessary.
Moving furniture out often leaves scuff marks and scratches -- blemishes that potential home buyers will notice instantly. Freshen up with neutral-colored paint. If the house is empty, the walls are going to stand out. If you have bold-colored walls, you may want to consider painting them a neutral color. Get your carpets professionally cleaned. This is especially important if the house will be vacant. After all, with nothing in the house, all would-be buyers have to look at are the floors and walls. If you have any Energy Star appliances, leave the paperwork and copies of your energy bills that show the money you've saved.
Don't set your deserted house up for potential break-ins. You may want to invest in exterior sensor lights that automatically turn on when it gets dark and turn off at sunrise. Make sure you cancel your newspaper subscription. If you have a security alarm, use it -- just be sure you leave your entrance code with your real estate agent.
Be sure you review the provisions of your homeowners insurance. Many companies have a cap on how long coverage will last while your house is vacant.
Published: November 17, 2003
Friday, November 14, 2003
More retirees still paying mortgages
By Thomas A. Fogarty, USA TODAY
Retirement-age homeowners are more likely than ever to be carrying mortgage debt.
A USA TODAY analysis of census data shows that 28.3% of homeowners age 65 or older owe on their homes. That's up from 20.7% in 1990, and 18.9% in 1980. The trend probably has intensified since data were collected in 2000, says Freddie Mac chief economist Frank Nothaft.
Seniors are still the group most likely to own homes outright. Their growing reliance on mortgage debt is part of a broader trend. Overall, 70% of homeowners owe against their homes, up from about 65% in both 1980 and 1990.
But the trend among seniors reflects erosion in a long-held financial goal and safety cushion for Depression-era Americans — owning a home free and clear in retirement. "It's just another nail in the coffin," says financial planner Bill Raddatz of Tampa.
Others view the trend benignly. Freddie Mac's Nothaft says seniors typically carry low-balance debt, often taken as a tax-efficient way to support consumer spending. "These aren't $500,000 mortgages," he says. "The nature and uses of mortgages are very different for a homeowner who's 65 than for one who's 30."
Driving the trend:
•Necessity. Today's seniors have delayed saving, says economist Christian Weller, partly the result of rearing a generation with more college graduates than any other. Education costs have drained finances and prolonged mortgage repayment periods, says Weller, of the Economic Policy Institute, a Washington think tank. Higher home prices don't help. Nationally, they're up 80% since 1990, and the median sales price has topped $170,000.
•Attitudes. As the Great Depression fades, so do the anti-debt views of those who survived it. Boston College retirement researcher Steve Sass calls the trend "a reflection of less caution we have toward debt."
Like many retirees, Andy Carter, 59, of Elkhart, Ind., is at ease with monthly house payments. In 10 relocations during his corporate career, Carter says he aimed to keep his home equity at 20% of value, freeing cash for other purposes. "I expect to carry a mortgage until I die," Carter says.
•Opportunity. A 1986 tax law drove many borrowers to mortgages by eliminating the tax deduction for interest paid on non-house debt. More recently, mortgages have become attractive because of low interest rates.
But for retiree Phil Reeder, 66, of San Diego, the inducements aren't enough. Two years ago, he paid off his mortgage rather than fattening his portfolio. His reason: "Peace of mind now and in the future."
