Any investor who has been in the game for a while has a story or two about the house he wishes he hadn’t sold or others that should have been sold long before they actually were. Where is that crystal ball when you need it? It’s often better to be lucky than good. If you want to be “lucky” it is crucial to put as much thought and effort into timing a sale as you do in making the initial buy.

Evaluating your Rental

The most obvious reason to sell a rental property is because it has a negative cash flow, in other words it costs more to own and maintain than it produces in income. Why would someone buy a property like that in the first place? Maybe they didn’t. The cost of taxes, utilities and insurance may have risen, market rents may have dropped, or both. Losing money each month is a strong indication that it’s time to reevaluate the situation. It still isn’t an automatic decision since there may be valid reasons to hold a property that loses money. Perhaps the likelihood of appreciation is strong because of things happening in the area or the rents are expected to rise in the near future. Holding a loser long enough to change the tax on a gain from ordinary income too much lower long-term capital gain is an excellent reason to hang on for a little while. You do need to be careful not to hold on to property that is just hemorraging cash with little hope of the situation improving.

What about a rental that is making money? How do you determine when it’s time to cash in? This requires a little more thought. Does the property still fit in with your overall plan for your investment business? Is the property a good fit with the rest of your real estate portfolio? What are the expectations for cash flow, vacancy, maintenance, and appreciation? Is the neighborhood changing? Are you expecting any major repairs such as a roof or furnace? Are you suddenly having a problem with your tenants or property manager? The biggest question – would you buy this property today?

Evaluating your Future Plans

In any investment business, real estate or otherwise, there are times when you need to cash in your profit or cut your losses. Many investors lose money because they are reluctant to take a loss or they are waiting for a rebound. Sometimes greed comes into play. Trying to squeeze every last ounce of profit may leave you vulnerable to a market downturn. We certainly saw a lot of that in the recent bubble. Ultimately the decision to sell or hold on comes down to your long and short-term goals. If your rental no longer fits your plan it is definitely time to sell. You do have a plan, right’?

Staging for Life is about decorating, your tastes and reflecting your own style throughout your home. There’s really nothing wrong using your spare bedroom as a craft room or setting up a treadmill & weight lifting equipment in the garage. This is exactly how it should be if you’re staging your home for your own life. Don’t feel bound by limitations of a room’s label. A bit of organization and eliminating unnecessary “stuff” will help to create a more open environment. Get rid of the clutter! That’s  the single greatest improvement you can do to make your home more livable.

On the flip side, when Staging to Sell, it’s really important that home buyers see rooms as they were originally intended. It helps them to imagine your home as their home. So if you did away with your formal living room to create a Yoga studio or a play room for your children,  make sure you return rooms back to their original state before you go on market.  Touch up paint in your lived in rooms, and treat yourself to a few houseplants to liven up your the living areas. Steam clean the carpets or expose those hardwoods/tile floors if in good condition, add throw pillows, dramatic plants and architectual pieces to add interest. Clear off the counters in the kitchen and bathrooms.

As an Accredited Staging Professional (ASP), I am qualified to provide lots of great suggestions and ideas to my clients. If you are considering a move, feel free to contact me with any real estate questions, “Your Home IS My Business!”

While I was working on my daily real estate work, I captured Chewy getting ready to rock with his hamburger!

You can create, view and customize embroidery designs in stunning detail on the largest  interactive VGA touch screen. And with the touch of a stylus (and your creative juices running) the machine will automatically embroider your creations on the largest sewing & embroidery surface for designs available today. I can program my creation and watch  from the other side of my home office while I search the MLS for comps for my buyer or listing appointment,  remaining close by to change thread colors when necessary.  Now that’s multi-tasking.

 Because I am a Realtor, and busy most every day, my sewing activity is limited. And although  I’ve been taking classes every 3 weeks in the evening, time permitting because my real estate business is my priority, I haven’t quite developed the “know-how” and ”skill” that comes with hands-on experience, over time.

The end result of all my projects so far has been very rewarding. Sometimes I almost  feel like Heidi Klum on Project Runway creating my own personal, one-of-a-kind designs.  (I wish I looked like her).  My projects are still geared toward learning the basics and will be until I have mastered them. I’m getting close; i.e.,  monogrammed sports blankets, towels, pillows, monogrammed neck pillows & beautiful small purses.  However, I’ve just  committed to a one-year class project to make a  beautiful queen-sized “Tulip Time” quilt. Gorgeous! A combination of applique, embroidery design, quilting, design placement & precision. I’m  working on my first 3 blocks.

Next goal: an embroidered “Family Tree” I can pass on to my family as beautiful  and meaningful little keepsake.

I just started FLIPPING. Does that make me a late FLIPPER?  

FLIP cameras are so very cool, reasonably priced and very easy to use. You can personalize and even design your own. I could hand this pocket Video off to a preschool child and let them shoot Video until the batteries run out; and you know, I believe the camera would be just fine.  There’s no fancy gadgets to learn (or not use). It’s truly a turn on, point, shoot–FLIP out the USB arm, plug into your computer and Voila! You’ve got yourself a Video. So easy and so much fun!

A great real estate tool too.  So, I’ve decided to use it to interview clients, local people on the street where I list and sell real estate and of course my family. I can film so many things of interest and post them here or on my website for added interest and fun.

However this morning I noticed an article in our morning paper indicating Ciso Systems, Inc. “is killing the Flip Video, the most popular Video camera in the U.S, just tw0 years after it bought the startup that created it.“ It went on to say “They’re streamlining the company and shutting down one of the most successful divisions”? 

What contributed to it demise? ‘It’s tough to compete with “free.” And that’s the price of the HD Video features built into many of our phones and still cameras.’  Blame it on our economy, poor business decisions and technial progress.

Stay tuned….

Here’s an example of what I mean.

Last year your favorite real estate agent may have told you your house would sell for $300,000. You weren’t quite ready to sell because this year worked out for you. Now he/she comes by and gives you startling news. Your lovely dwelling is now valued at only $270,000!

But wait! The new house you like was also valued for more last year too, let’s say $500,000. It’s very likely it’s price may be off by the same percentage (10%), which means this year it’s worth $450,000.

Here’s what this may means to you. The gap between the same house is $180,000. Yes, your home may be worth $30,000 less, but you save $20,000 between the two transactions. Keep in mind the markets aren’t quite as neat and tidy as this little scenario, sometimes you fair better than expected. However, the principle is powerful.

While you are pondering this one, remember that every 1 percent rise in interest rates means a 10% decline in affordability.

So what are you waiting for?  Feel free to contact me if you have any real estate questions. I’m here to help because “your home IS my business.’

While walking through the property I became a little side tracked after noticing alcohol bottles in every room and holes in some of the walls and doors. I kept looking at that little dog and wondering what his little life was really like.  When we were finished previewing the home, we all walked  over to say goodbye to La La. Outside the kitchen window I noticed that little dog was leaping almost 2 feet in the air just to look out the window while we walked off. I decided I would find another buyer, if not this one and go back again.

I showed this house two more times, but truthfully just to check in on La La. I couldn’t stop thinking about that dog! I decided I wanted to rescue him if I could. It was worth a try. So the last time through I decided to leave a note with my phone number for the owner. I told him that I fell in love with his little dog and would give him a great home if by chance he wasn’t able to keep him. And as luck would have it, he called me to say I could have him. I asked when, and he said now! I was thrilled.

When we got home I set him onto the grass of our fenced in yard and he ran in circles of joy! It was very gratifying to see how happy he was to be free. I wondered how often he had been outside before.  He’s a little smarty pants and fits right in our very “animal house.” We were so lucky to meet. He’s a happy little dog and a real buddy to our whole family. We called him Chewbacca. His nicknames are Chewy, Chewy-Bag-a-Booey, Bag (for short), Chewbach and Bacci! Once in a while we call him La La, just to keep him in line. What a sweet little dog. The first little dog we ever owned. A keeper for sure!

If you have in-town fever, then check out Hatboro, PA – a little walking town located 2 miles from the PA Turnpike, 15 miles north of center city Philadelphia, 1 mile from Bucks County and one of the few communities in Montgomery County to offer a traditional downtown. Check out the mix of retail shops, restaurants, public library,  Hatboro/Horsham Blue Ribbon award winning school district, medical facilities & professional offices.  A terrific alternative to driving to crowded malls.

Walk to school, SEPTA train/bus, community pool, medical facilities and more.

Experience Hatboro, rewardingly convenient and value that makes sense.