Real estate consumers today can find ample value in distressed homes – properties that are under a foreclosure order or up for short sale. In many cases, however, “distressed” speaks more for the condition of the homes than their recent financial histories, as they’ve sat empty for extended periods and have been subject to vandalism and theft.

            Those considering homes in need of repair and renovation should consider a 203k mortgage, which enables homebuyers to finance both the acquisition and rehabilitation of the property with just one loan.

            “FHA 203k purchase loans are the perfect financing vehicle for homeowners seeking the value proposition offered by REO homes,” said David Wind, president and board chairman of White Plains, N.Y.-based Guaranteed Home Mortgage Company, in a company statement this June. “Home buyers’ ‘perfect’ home can be purchased in less than perfect condition with a single-close loan product that allows repairs and remodeling.”

            There are two types of 203k loans: the 203k streamline and the full 203k. The 203k streamline is the most popular among homebuyers and lenders.

            “The maximum allowable in repairs is $35,000 under the 203k streamline and it does not allow any structural repairs to be done to the home, unless [the repairs are] a result of an unforeseen circumstance,” explained David Krushinsky, a certified mortgage planning specialist for Mesa, Ariz.-based AmeriFirst Financial Inc. “The full 203k allows structural repairs and will allow the buyer to exceed the $35,000 in home repairs. Both loans allow up to $1,500 in swimming pool repairs.”

            Contractors chosen to perform repairs must be licensed, bonded and insured, and they usually must provide the lender with a resume and two client-reference letters.

            “After the close of escrow is when all the rehabilitation work begins,” said Krushinsky. “Funds usually aren’t released immediately so it’s important for your contractor to start work in a timely manner. Typically, if they’ve been in business, they have existing relationships with vendors so they can order materials and begin work. If not, the project may take longer than anticipated.”

            Since the 203k mortgage is based on the home’s potential value after repairs — not its existing value — you can be approved for a higher loan amount. The mortgages also carry long-term-fixed rates, are insured as soon as they fund, and include escrow accounts for the scheduled repairs.

            Loan amounts are capped according to local FHA limits. Only owner-occupied properties of one to four units qualify for 203k mortage financing; homes also must be at least one year old.  

With so many homebuyers seeking green features in the homes they consider, sellers should create an eco-friendly atmosphere for the buyer, and that doesn’t always mean costly fixes.

It’s always nice for a homebuyer who’s been touring houses all day to find water or a snack waiting for them in your kitchen. Instead of leaving the customary bottled water, go the eco-friendly route and have a pitcher of filtered tap water at the ready. Add some organic fruits and vegetables and keep trash minimized. Also, use glassware and plates instead of plastic cups and paper plates. This practice is not only green, it shows class.

Talk with your agent about using recycled paper for all your brochures and advertisements around the neighborhood. Someone who is environmentally conscious will appreciate the effort.

Another way to act “green” is during your de-cluttering stage, where you remove furniture and other items from your home prior to the home’s listing. Instead of simply throwing out all those things you no longer want or need, you can recycle, resell at a garage sale, donate to a charity, or give away the items at the popular website Freecycle.com.

Big fixes around the home can go a long way, too. In this age of global warming and high-energy costs, more buyers are looking for houses that embrace energy conservation. The simplest upgrade is to replace all the light bulbs in the home with CFLs (compact fluorescents), which use a quarter of the electricity as regular bulbs.

To help with heating, make sure cracks are tightly caulked and leaks are sealed. Doing so can reduce your annual heating bill by $100, according to Department of Energy figures.

Justin Barnes, a policy analyst for the Database of State Incentives for Renewables & Efficiency, funded by the U.S. Department of Energy, said some of the easiest green fixes deal with appliance replacement. Most of today’s appliances are highly efficient and will reduce your energy bills. They’re also more attractive than their worn-out predecessors.

Barnes also suggests replacing doors and windows if the budget allows, and looking for better ways to insulate the home.

Also consider tankless water heaters, which are energy efficient and ultimately use less water during the heating process.

Don’t be afraid to boast about your green home and any recent enhancements. Working with your agent to highlight your eco-friendly features may just be what makes the difference in completing the sale.

Keeping that “staged look” as the kids create instant messes can be overwhelming.  Your primary focus should be the kids’ bedrooms, according to two home stagers.

“Children’s bedrooms are often problematic when getting a home ready to sell,” said Külli Yee, founder and president of Ilus Design Home Staging and Re-design, Port Coquitlam, B.C., Canada. “They tend to have more clutter than most rooms in the form of toys and activities, and out-of-season and hand-me-down clothes and toys are often stored in the child’s bedroom.”

Yee suggests limiting the number of toys and activities that children play with each week and adding and subtracting as the kids get bored.

“Most kids only actively use three or four favorite toys at a time and the rest just sits there collecting dust,” Yee said. “Pack away extra toys, stuffed animals and books. Organize the remaining toys neatly in baskets, boxes and bins and display only a few items on the shelves.”

Alice T. Chan, a Fremont, Calif.-based home stager and author of the book 8 Steps for Creating an Irresistible Market Ready Home that Sells, recommended keeping a child’s bedroom floor and closet free of clutter by lightening the load.

“Reduce the amount of items stored in the closets,” she said. “Pack, store or give away anything that the child doesn’t need for the next two to three months. This is also the perfect time to get rid of unused or broken toys and old clothes.”

For those with infants, a nursery should be kept tidy with all extra diapers, wipes, lotions, baby bottles and clothes hidden away in a dresser. Make sure that the diaper pail is emptied frequently.

Moreover, remove any furniture that doesn’t serve a purpose in the nursery. Anything beyond a crib, dresser, rocking chair, changing table and small accessories should be packed away.

If your kids have their own rooms, consider asking them to share a room for a couple of months until the home sells. This allows you to set up the other bedrooms as a guest room or home office, adding extra value to your home.

Unlike pets, you can’t simply pack up the kids and send them away for weeks at a time. Remind your children that once your current home sells, the new home will bring them exciting new adventures. If that doesn’t make them more cooperative in helping keep the place then there’s always plan B: bribe them with ice cream, outside!

In a May issue of US News & World Report, it is reported that the Durham-Chapel Hill area of North Carolina is the place that represents the greatest amount of sexual equality in the entire United States. This study is based on income equality, male and female representation in the workplace, and educational level.

I read recently that there are now more females than males getting their advanced degrees, and the educational metropolis of Durham-Chapel Hill should certainly be a place where this equality is most evident.

With spring in the air, the exterior of a home becomes even more important when putting your house on the market because buyers now will spend more time outside looking at your property and envisioning what their summer barbeques and family playtime will look like.

The addition of any amount of usable real estate to a property increases value. Customized decks and personalized outdoor living areas are a hot trend in home improvement upgrades, and a great-looking deck may entice more people to come see your home.

Building or updating an existing deck isn’t simply a great investment; it also provides opportunities to personalize your backyard and customize the look to your taste. And with many families staying home this summer to save money, why not think about creating the perfect location for entertaining?

Deck experts agree that multi-level decks are the most popular now. These are a series of decks connected by stairways or walkways, which are aesthetically pleasing and can be used for different purposes. One level can be used to catch the sun, one level can be positioned for shade and another can be set close to the house for entertaining and barbequing.

Wood decks have always been the most popular, but caring for them is tough. They will rot over time, are subject to insect infestation and require a great deal of maintenance to keep the wood from fading. Accordingly, people are embracing composite materials for their decks, which cost significantly more but will last longer with less maintenance.

For those homes that already have a deck, it’s important to make sure that it’s still in good shape and adds to the attractiveness of a property. You can change your deck’s appearance with interesting balusters to match other decorative accents on your house or in your yard and really add unique touches to make the deck a personal haven. Meanwhile, railings offer a good opportunity to pull in color and ornamental detail that complements the house.

By designing your deck with accents, lights and unique accessories, you can transform your backyard into an outdoor retreat one will never want to leave. Whether you’re catching up with friends over a grilled dinner in the evening or are curled up with a book in a lounge chair on a sunny afternoon, a deck is the perfect place to be.

Firefighters in Stations 8, 14, and 16 are the fortunate ones who are are able to benefit from using the sun’s solar energy to naturally heat their water. These firehouses still have radiators and boilers to provide heat for the rooms, but the boilers will be used less frequently because of the new solar panels that were added to the roofs of the three buildings.

The manager of Durham’s Sustainability Office, Tobin Freid, said, “The installation of these systems will help the City meet its greenhouse gas objectives by reducing carbon dioxide emissions by five metric tons annually.”

These three firehouses are the third, fourth, and fifth of Durham’s fire stations to get this treatment, because Fire Stations 12 an 15 already have implemented these energy saving measures.

To learn more about this project and other environmental initiatives that Durham has in place, please visit Durham’s website.

When people enter your home they usually look down before up, so that first step is vital for attracting a homebuyer and making a great first impression. This is one reason why more people are installing hardwood floors in their homes.

Hardwood flooring enhances the look of any room and can create a classic ambiance that will beautify the interior design of your home. Residential real estate agents agree that homes with wood floors hold their value better, sell faster and fetch higher prices.

Last year, 99 percent of real estate agents responding to a national survey conducted by the National Wood Flooring Association agreed that homes with hardwood floors are easier to sell. The survey also found that 82 percent believe that homes with hardwood floors sell faster and 90 percent said they would sell for more money.

The American Hardwood Information Center adds that restoring hardwood flooring in the home is one of the best long-term investments to be made.

“Hardwood floors are environmentally friendly, forever fashionable, and will last for generations,” said Pembroke Jacobs, president of the Hardwood Manufacturers Association. “Plus, with an expected life span of up to 100 years for certain premium hardwood flooring, you can be assured that that the hardwood really is a one-time investment with a very long-term payoff.”

Real estate agents also agree that carpeting does not impress potential buyers, but hardwood floors are always a draw. Engineered wood floors impart warmth, depth and richness to a home’s decor that cannot be matched by carpeting, tile or vinyl flooring.

Despite the existence of modern architectural trends in flooring, hardwood can still compete with floor tiles and other artificial materials. It comes in a variety of colors and grains; light, medium, or dark shades; and a variety of sizes, styles, finishes and species.

Maple, mahogany and oak are the most popular woods, but some homeowners are investing in exotics such as Brazilian cherry and purpleheart.

The Environmental Protection Agency has said that indoor air quality is one of the top health threats and wood floors can help contribute to a healthy living environment. In fact, a recent EPA study found that pesticides used in gardens and homes accumulate on floors and other surfaces in the home, but that wood floors greatly reduce the accumulation of such toxins. Hardwood floors also do not trap or harbor dust mites or molds.

Though wood floors will probably need to be refinished at some point, when properly taken care of they are much easier to maintain than other floor surfaces.

The NWFA recommends regular sweeping of hardwood floors with a soft-bristle broom or dust mop to remove surface dirt and debris. If your floor contains beveled edges, it recommends using a vacuum with a soft bristle brush attachment to remove dirt and debris from between the floorboards.

Having hardwood floors could be the difference between selling your home or watching a potential buyer walk out the door on a less-appealing type of flooring.

In my household, Spring is more than only about cleaning. I also reevaluate ways that we use energy and water, and take steps to minimize our carbon footprint. One website that I came across recently that helped me operate our systems more efficiently is one that comes from eco architect Eric Corey Freed. His website offers great advice to help everyone to reduce the utility bills in their home.

Eric Freed’s advice for us addresses five areas: 1) Wrap Your Home in Insulation, 2) Install a Programmable Thermostat, 3) Conserve Water through Smart Technology, 4) Cool Your Roof, and 5) Upgrade Your Lighting. I am happy to report that the Neighborhood Energy Retrofit Program that is being offered in Durham also touches on many of these same energy-reducing techniques.

Eric Freed, LEED AP (Leadership in Energy and Environmental Design Accredited Professional), is a Principal of orgaincArchtect. This is an architecture and consulting firm in California, and he has nearly 20 years of experience in green building.

Happy Spring everyone, and Happy Savings for you and yours!

In order to see the myriad possibilities that are available to anyone who is fortunate enough to take in one of the events during Creek Week, please visit the Keep Durham Beautiful website. There are over 30 activities that are scheduled during the week through which one may experience wildlife available to only those who spend an Evening of Canoe Paddling on the Lower Eno River, take a Wildflower Walk at Penny’s Bend Nature Preserve, or go on a Turtle Trek along the Pea Creek Trail.

For those whose taste tends to be more altruistic in nature, there are thirteen chances where you can clean up after the more selfish that have traveled before you. It seems that all the waterways of Durham are represented in these Creek Cleanups, so please choose the nearest creek to your neighborhood and come prepared to practice the mantra of backpackers – “Leave the scene cleaner that you found it.” Durham’s flora and fauna will thank you for your efforts.

Home sellers today must convince a new era of buyers returning to the market that their homes stand for value and quality.

The time-honored open house event remains a terrific way to expose your property to many consumers and gain distinction from the competition. While your real estate professional will advertise and manage the event, it is up to you to ensure that your home is seen in the best light possible. Remember, you only have one chance to make a first impression, so approach your open house event as your property’s showcase. Here are several ways to make your property shine, inside and out.

Start with the outside. Do a visual check of the front of the house from across the street. Does your property have curb appeal? It should look inviting, with a trimmed lawn and flowerbed and a freshly painted front door. Polish door handles and knockers and replace worn items such as a rusty doorbell. Consider adding a new doormat and flowering plants at the entrance. Don’t forget to wash your windows and clean any oil or rust spots from the driveway.

Be sure to inspect the side and back yards. Add some flowering plants to the back as well. Clean and rearrange the outdoor furniture to look inviting. Put away gardening tools, and tidy around the grill area.

Now focus on the inside of the home where cleanliness, space, smell and lighting are vital. First get your house in tip-top condition by cleaning and clearing away clutter. Steam clean and vacuum the carpet. Make sure your floors are waxed and shiny. Touch up nicks on walls and make sure the porcelain sinks and tubs and metallic fixtures shine.

Be conscious of any lingering odors such as smoke, pets or strong-smelling foods. You may need to air out your home prior to your open house event. Consider grinding fresh lemons in the garbage disposal. And don’t forget to empty all trash containers.

Look at your countertops in the kitchen and bathrooms and the tops of your bureaus. Do they seem cluttered? Clear away and store as much as possible. You want your home to seem spacious.

Next, set the mood. Let your prospective buyers picture your home as their own. Rearrange the furniture so that rooms look more spacious, or consider removing furniture and accessories.

Lighting is also important to creating a desirable atmosphere. Bright lights provide a cheerful environment and make a small space appear larger. Pull back all the drapes and open the blinds. Turn on all the lights. Make sure all light sockets have fresh bulbs. Use softer lights for rooms in which you want a warm, cozy feeling.

Don’t forget little touches such as fresh flowers, lighted candles in the bathrooms, new logs in the fireplace, or a bowl of fresh fruit on the kitchen counter. You may even want to set your dining-room table with color-coordinated table settings.

Home buying is steeped in emotion. Sellers shouldn’t rely on buyers to use their imagination; they must capture buyers’ imagination. Remember that buyers may see seven or eight homes in a single day. The most memorable home will be the one that seemed the brightest, the most spacious and the most cheerful.