Make a list.
Write everything down! You'll thank yourself later. Before you pack even one box, create a simple record keeping system. Create a computer-printed list of numbers with a space to write the contents. Or have a spiral-bound notebook for the job. You'll place a number on EVERY box you pack and list the contents on your list. Don't put the list down unless it's in a place you'll call Packing Central. This is where you'll find your labels, marking pens, box tape, and other supplies.

When describing the box contents, be specific -- "A-D files" is better than "files", and "Tulip dishes" rather than "misc. kitchen".

Have plenty of supplies.
Don't make me say this twice-- you'll need LOTS of boxes--probably more boxes than you think, and having enough boxes will make your life easier! (If you buy your boxes from a moving company, you can always return unused boxes for a refund. If you got them free from the grocery, just toss any leftovers.) Have about 10 boxes set aside to use for last minute items on moving day, such as bedding, clothing, and cleaning supplies. You'll need strong plastic packing tape to close up the boxes securely. Use unprinted newsprint (newspaper can stain your items) or packing paper or bubble wrap to wrap and cushion household good. Again, you'll need lots more supplies than you think, so get extra so the packing can go smoothly. Return any unused supplies after the truck is packed.

Utilize wardrobe boxes.
These tall boxes are perfect for bulky, lightweight items such as comforters, pillows, and blankets, as well as clothes that need to remain hanging. Call your mover to ask the width of the wardrobe boxes they'll be bringing. Then measure the clothes in your closets (including coat closets) to see how many wardrobe boxes you'll need. You can also use them for closet storage boxes, shoe boxes, and other bulky items such as fabric bolts, large baskets, or gift wrap tubes.

Don't make the boxes too heavy to lift, however. One mover told the story of someone who put a bowling ball in a wardrobe box! When the box was lifted off the truck the bottom gave way, sending the bowling ball on a wild ride down the ramp, across the street to the gutter, then down a hill where it finally came to rest in a roadside ditch. (Is that a strike or a spare?)

Strategize wardrobe box use.
Moving companies will be happy to deliver boxes ahead of your moving day. Or if you're doing the move yourself, get things organized as early as possible. A few days before your move, fill some sturdy handled shopping bags with bulky closet items such as shoes, sweaters, belts, and jeans. On moving day, fill the bottom of the wardrobe boxes with some of the shopping bags, then add your hanging clothing. Pack hanging items tightly so things won't move around and fall off of hangers. Finally, cover the shoulders of your clothes (a dry cleaning bag works well), then add a few purses or sweaters on top. You'll have fewer boxes, and closet items remain together. Also, the shopping bags will make it easier to retrieve your belongings from the bottoms of a tall wardrobe box.

Color coordinate.
Designate a color for each room in the new home, such as yellow for kitchen, orange for dining room, etc. Apply colored stickers on the box near the box number. In your new home. Put a matching sticker on the door to each room. The movers will know where to put everything when they arrive at the desitination. It's also helpful to post a big sign on the wall in the room where you want boxes stacked, ("Boxes here please") to keep them out of furniture and traffic areas.

Keep things together.
Insist on keeping things together when you or the movers are packing boxes. Keep bookends with books, light bulbs with lamps, and extension cords with appliances. Small, loose parts can be attached to the item they belong to with tape or placed in small envelopes -- to keep picture hooks with pictures, shelf brackets with a bookcase, a special wrench and bolts with the wall unit. Keep larger corresponding items (such as a cable TV cord) in Ziplock bags, and tape these to the underside or back of the item. As a backup, have a "Parts Box" open on the kitchen counter and fill it with cables, cords, parts, pieces, brackets, or nails that are removed from any items of furniture. Keep this box with you, or mark it well with a rainbow of colored stickers so it can be easily located on move-in day.

Pack ahead.
Anything you can pack ahead will save you time on moving day. If it's summer, get your winter clothes out of the way. You don't really need 5 radios or TV's around your house for the last few days there. Box up your shampoo and extra toothpaste and live out of a travel cosmetic case for the last week or two. Pare down cooking utensils and food supplies to bare essentials. Wastebaskets can also be packed (put things in them!) while you switch to using plastic grocery bags (hang them on a cabinet door or door handle to collect trash.)

Consolidate cleaning supplies.
If you must clean your old place after moving out, put together a kit of basic cleaning supplies and rags. Clean anything possible ahead of time (the inside of kitchen cupboards, the oven, windows, etc.), and if possible, vacuum each room as movers empty it.

Use your luggage.
Fill luggage and duffle bags with clothing, sheets, towels, and paper goods. Even for local moves you'll be able to quickly spot your navy suitcase holding your favorite sweaters, whereas "Box #189" might remain elusive for days. Safeguard valued items. It's a good idea to keep valuable possessions, such as silverware, collections, or antiques, with you. If you have a long move and no room in your car, bury the items in a box titled "Misc. from kitchen pantry". Either way, check your homeowner's insurance to see how you are covered during the move, and if you need additional insurance from the mover. Also, find out what paperwork (receipts, appraisals, and photos) you might need to file a claim in case of loss.

Keep important papers with you.
Your list of "important" papers might include: birth certificates, school records, mover estimates, new job contacts, utility company numbers, recent bank records, current bills, phone lists, closing papers, realtor info, maps, and more. Don't leave these with the mover. Keep them with you!

Personal boxes.
Use brightly colored storage tote boxes, one for each person. Let each family member fill theirs with items they'll want 'right away' in the new home -- a set of sheets, a towel, a couple of extension cords, a phone, nightlights, address book, pens and paper, keys, kleenex, and travel cosmetic case, and so on.

Moving may not be the most fun you've ever had, but planning ahead will go a long way toward making the process bearable.

What are 1031 exchange Services?
Under section 1031 of the Internal Revenue Code, a real property owner can sell his property and then reinvest the proceeds in ownership of like-kind property and defer the capital gains taxes. To qualify as a 1031 like-kind exchange, property exchanges must be done in accordance with the rules set forth in the tax code and in the treasury regulations. 1031 exchange services can offer significant tax advantages to real estate buyers. Often overlooked, a 1031 like-kind exchange is considered one of the best-kept secrets in the Internal Revenue Code.

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Who should consider a 1031 exchange?
If you have real property that will net you a gain upon sale (generally property that has been substantially depreciated for tax purposes and/or has appreciated in fair market value), then you are exactly the person who should consider a 1031 exchange.

There are 5 tax classes of property:

1. Property used in taxpayer's trade or business.
2. Property held primarily for sale to customers.
3. Property which is used as your principal residence.
4. Property held for investment.
5. Property used as a vacation home.

Section 1031 applies to the first and fourth categories, and potentially the fifth category. Business use is defined as, "To hold property for productive use in trade or business." Property retired from previous productive use in business can be qualifying property. Investment purpose defined as real estate, even if unproductive, held by a non-dealer for future use or increment in value is held for investment and not primarily for sale. Investment is the passive holding of property, for more than a temporary period, with the expectation that it will appreciate. Property held for sale in the immediate future is not held for investment.

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What are the 1031 exchange rules?

1. The real property you sell and the real property you buy must both be held for productive use in a trade or business or for investment purposes and must be like-kind.
2. The proceeds from the sale must go through the hands of a qualified intermediary and not through your hands or the hands of one of your agents or else all the proceeds will become taxable.
3. All the cash proceeds from the original sale must be reinvested in the replacement property - any cash proceeds that you retain will be taxable.
4. The replacement property must be subject to an equal level or greater level of debt than the relinquished property or the buyer will either have to pay taxes on the amount of the decrease or have to put in additional cash funds to offset the lower level of debt in the replacement property.

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1031 timelines
Identification Period: Within 45 days of selling the relinquished property you must identify suitable replacement properties. This 45 day rule is very strict and is not extended should the 45th day fall on a Saturday, Sunday, or legal holiday.

Exchange Period: The replacement property must be received by the taxpayer within the "exchange period," which ends within the earlier of . . . 180 days after the date on which the taxpayer transfers the property relinquished, or . . . the due date for the taxpayer tax return for the taxable year in which the transfer of the relinquished property occurs. This 180-day rule is very strict and is not extended if the 180th day should happen to fall on a Saturday, Sunday or legal holiday.

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Replacement property identification
3-property rule: You may identify any three properties as possible replacements for your relinquished property. More than 95% of exchanges use the 3-property rule.

200% rule: You may identify any number of properties as possible replacements for your relinquished property as long as the aggregate value of those properties does not exceed 200% of the value of your relinquished property.

95% exemption: You may identify any number of properties as possible replacements for your relinquished property as long as you end up purchasing at least 95% of the aggregate value of all properties identified.

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Like-Kind Property
In a 1031 exchange you can exchange any real property for any other real property within the United States or its possessions if said properties are held for productive use in trade or business or for investment purposes. Examples of like-kind property include apartments, commercial, condos, duplexes, raw land and rental homes*.

As used in IRC 1031(a), the words "like-kind" mean similar in nature or character, notwithstanding differences in grade or quality. One kind of class of property may not, under that section, be exchanged for property of a different kind or class. Examples of qualified like-kind exchanges:

• apartment building for farm/ranch
• office building for hotel
• raw land for retail space
• unimproved property for commercial property
• airplane for airplane

Examples of non like-kind properties include primary residences, stocks and bonds, notes, partnership interests, developed lots held primarily for sale and property to be resold immediately after initial purchase or completion of improvements.

*Qualification for Section 1031 exchanges depends upon the extent of personal use.

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1031 exchange formats

• Simultaneous
  • Two-party swap
  • Alderson exchange
• Delayed exchange (most common)
  • Safe Harbor
• Multiple sales/acquisitions
• Reverse exchange
• Improvement exchange

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History of 1031 exchange

1918 - First income tax law
1921 - Section 202 of Internal Revenue Code states that gain or loss not recognized on exchanges of like-kind property
1924 - Non like-kind exchanges excluded from Section 202
1928 - Code section changed to Section 112(b)(1)
1954 - Section 1031 enacted
1975 - Starker exchange; Tax court approves delayed exchange
1977 - Tax court reverses prior ruling, invalidating delayed exchanges
1979 - 9th Circuit reverses, reinstating initial ruling and creating delayed exchange
1984 - Congress amends Section 1031; 45 day identification period and 180 day exchange period and partnerships excluded
1991 - Regulations 1.1031 passed
2002 - Revenue Procedure 2002-22 issued by IRS; 15 points to clarify TIC interests

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The role of the Qualified Intermediary (QI)

The QI is a person or entity that can legally hold funds to facilitate a 1031 exchange. To be qualified, the intermediary must not be relative or agent of the exchanging party. As an exception, a real estate agent may serve as an intermediary if the current transaction is the only instance in which the agent has represented the exchanging party over the past two years.

The use of a QI is essential to completing a successful 1031 exchange. The QI performs several important functions in the 1031 exchange process including creating the exchange of properties, holding the exchange proceeds and preparing the legal documents

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What is Tenants-in-Common (TIC)?

A TIC is a form of real estate asset ownership in which two or more persons have an undivided, fractional interest in the asset, where ownership shares are not required to be equal, and where ownership interests can be inherited. Each co-owner receives an individual deed at closing for his or her undivided percentage interest in the entire property. Through TIC ownership, the average person is able to enjoy ownership in an institutional-type property with a minimum investment.

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What are the benefits of TIC ownership?

The TIC structure has various features that make it attractive to the real estate buyer.

Access to Higher Grade Properties - The typical entrance in whole commercial building begins at $1 million, but through TIC ownership, the average person is able to enjoy ownership in an institutional-type property with a minimum purchase. Besides reliable income and growth potential, these properties are able to attract tenants with greater financial strength and stability than possible for the individual landlord.

Combined Real Estate Experience - As an alternative to sole ownership of real estate, a 1031 buyer can take ownership in a large commercial property along with other unrelated buyers, not as limited partners, but as individual owners. Each of the TIC owners brings their previous real estate knowledge to the group. Thus, each decision of the TIC ownership will be backed by many years of real estate experience.

Lessee with an established history of 1031 experience in Real Estate - Most of the day-to-day property operations are handled by the NNN PLUS lessee. The lessee has extensive experience in real estate. Thus, situations that arise in day-to-day operations will be addressed quickly and efficiently, and the TIC owner will enjoy the freedom from property management.

Simple Management - The TIC owner avoids the time and frustration of dealing with multiple tenants. You no longer deal with "toilets, tenants and trash," and simply receive your monthly rental income from your mailbox. Enjoy "tennis, travel and time with family."

Exact Dollar Matching - In a TIC property, you can purchase any amount above the minimum. For example, if you have $152,479 of equity from the sale of a previous property you can purchase $152,479 of equity in a TIC property.

Low Minimums - Revenue Procedure 2002-22 issued by the IRS allows up to 35 TIC owners in any one property. Minimum purchase requirements are structured to meet this limitation and can range as low as $150,000 equity.

Non-recourse Financing - The mortgages on most of the TIC properties offered by FOR 1031 are non-recourse. The TIC debt structure generally allows for the debt financing to assumed. Assumption usually occurs without the need for qualification or loan assumption fees.

Diversification - Due to the low minimums in TIC properties, the buyer can decrease risk by diversifying into different properties in various different marketplaces.

Speed and Simplicity - Speed and simplicity are achieved due to the efforts of the FOR 1031 team. The negotiation process is complete, and survey, rent rolls, etc. are already completed and available for your review. After your review of all the due diligence used to acquire your property, and upon your approval, you are ready to close. The closing can be completed in days, not months.

No Closing Costs - Absent seller default or other items outside the control of FOR 1031, closings are met within the agreed upon time frame. FOR 1031 does not charge the TIC owners any closing costs.

Deeded Interest - The TIC owners buy the property and receive a deeded interest. You can transfer this interest by gift, sale, inheritance, assignment, etc. Such transfer does not need to coincide with the transfer of all TIC interests in the property. DBSI Housing, if requested to do so by the TIC owner, will assist in the marketing of any TIC interest.

No Special Allocations - All the TIC owners receive monthly rental payments, sale proceeds and the depreciation tax benefits in proportion to their percentage ownership in the property.

Impasse Resolution Procedure - On a decision requiring unanimous vote, such as a sale decision, a 75% vote by the TIC owners will be sufficient to initiate the impasse resolution procedure. This procedure allows the TIC owners with 75% or more of the property to make an offer to buyout the dissenting owner with 25% or less of the property. The dissenting TIC owners can either: (1) accept this offer, (2) buy out the 75% TIC owners at the same price per percentage ownership, or (3) change their dissenting vote to a consenting vote.

Disclaimer: The above brief description is not to be construed as legal or tax advice and is qualified in its entirety by the actual closing documents. In case of any discrepancy, the actual closing documents will control.

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Tenants-in-Common FAQs

Question: In a nutshell, what is TIC ownership?

Answer: TIC ownership combined with NNN leases provide the real estate buyer with the advantages of ownership in a larger property, revenue and annual depreciation benefits without many of the day-to-day management problems associated with individually-owned rental property.

Question: What purchase amounts are ordinarily required for TIC ownership?

Answer: Revenue Procedure 2002-22 issued by the IRS allows up to 35 TIC owners in any one property. Minimum purchase requirements are structured to meet this limitation and can range as low as $150,000 equity. The typical entrance in whole commercial building begins at $1 million, but through TIC ownership, the average person is able to enjoy ownership in an institutional-type property with a minimum purchase. Besides reliable income and growth potential, these properties are able to attract tenants with greater financial strength and stability than possible for the individual landlord.

Question: What happens if fail to close on my 1031 exchange?

Answer: You will have to pay your capital gains taxes. Failure to close is the top reason clients reveal as to why they pay capital gains. By identifying a TIC property, you can reduce your potential tax risk, and avoid a failed closing. If you fail to close on other identified properties, you are able to move all your proceeds into the TIC property you identified.

Question: Is there any liability exposure associated with TIC ownership?

Answer: The mortgages on most of the TIC properties offered by FOR 1031 are non-recourse. The TIC debt structure generally allows for the debt financing to assumed. Assumption usually occurs without the need for qualification or loan assumption fees.

Question: What if I want to sell my TIC ownership?

Answer: On a decision requiring unanimous vote, such as a sale decision, a 75% vote by the TIC owners will be sufficient to initiate the impasse resolution procedure. This procedure allows the TIC owners with 75% or more of the property to make an offer to buyout the dissenting owner with 25% or less of the property. The dissenting TIC owners can either: (1) accept this offer, (2) buy out the 75% TIC owners at the same price per percentage ownership, or (3) change their dissenting vote to a consenting vote.

Question: What happens to my TIC ownership if I die?

Answer: Your ownership interest will pass to your heirs pursuant to your will just like any other asset. Currently, the estate tax code provides that they will also receive a stepped-up tax basis to fair-market value, but you should check with your CPA or tax adviser because not all circumstances are alike. The income taxes which were deferred because of your 1031 exchange are potentially forgiven forever.

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Essentials of Small Business Loan

Banks and other lending institutions cite risk factors as their main reason for turning down small business loan requests from startup businesses. Yet, you can still get a loan for your business by proper preparation.

Avoid the common error of thinking you can start with grants from the government and community agencies. It is even more unlikely than getting the money from your own savings, family, friends, or a bank.

The main requirements of attaining a small business loan are your personal credit history, business plan, experience, education, and feasibility of the business you are starting or expanding.

The most important task to obtain a small business loan is preparing a business plan.

The business plan needs to show the lender that providing you with a small business loan is a low-risk proposition. Your business plan must answer the questions a lending institution would ask. These questions usually are:

How much money do you need?
If you are starting a business, this should be included at least in the start-up capital estimate. Accuracy is important, so request enough money to invest wisely.

What are you going to do with the money?
You will have to provide, in detail, the designated use of every dollar requested. A small business loan is often needed for: operations (new employees, marketing, etc.), assets (equipment, real estate, etc.), or to pay off business debts.

When will you repay the small business loan?
Explain in detail how this small business loan will serve as a stepping-stone for your business. You will need to convince the lender (with your financial statements and cash flow projections) that you are able to repay the loan through the expected long-term profitability of your business.

What will you do if you don't get the loan?
Let lenders know that rejection will not discourage you from starting or growing your business. You want to portray a confident and determined personality and you will try lender after lender until you receive the money you need to get your business moving.

As a small business owner, you will need a certain degree of fortitude. Be confident and proud of your venture. Let lenders know you are in control and know what's best for you and your business. Understand that lending institutions need to make loans. But if you don't get one, don't get discouraged. Ask the lender why you didn't get the small business loan. Learn from the answer, move on, and try other lenders

Minority business loan Learn about small business loans. Use lender directory to find banks.
Government Funding Millions Available For Business Funding
Fast Small Business Loan Quick, Direct, Real-Time Funding Small Business Loans to 225 Lenders.

Tax Advantages of Home Ownership
The US government allows tax incentives that make it possible for many homeowners to exceed the standard yearly deduction. Your state may offer the same benefits.

• A tax deduction for the yearly interest on your primary and vacation home. This amount equals a big chunk of your total payments for the first several years.
• You can deduct the total amount of your yearly property tax bill.
• If you refinance to consolidate other debts, the interest on the home equity loan is tax deductible.

Homeowners Have More Stable Costs of Living

• Monthly payments can change if property taxes and insurance go up, but increases usually happen gradually.
• Rental fees can sometimes be more unpredictable.

Appreciation of Your Investment
No one can make any guarantees, but over time most real estate increases in value.
If you are careful about your selection, and you treat the home kindly, it will likely be worth considerably more in five years than it was the day you bought it.
Your initial investment may be as little as 3% (or less) of the home's sales price, but you are the one who benefits from appreciation of the property. Not the bank, not the landlord. You.

Your Equity Grows Each Month
Even though interest makes up a good portion of your monthly payment, especially during the first years, the amount paid toward the principal increases each month.
Appreciation and equity work together, helping you use your initial investment to move into a home with more features if that's what you wish to do.

You Are In Control
The house is yours. You are the only one with the power to allow anyone to enter the house to inspect it. Paint it and decorate it in any way you wish. Put nails in the walls to hang pictures and artwork. Bring home a pet without asking anyone if it's allowed. It belongs to you. Happy house-hunting!

Advice to Help You when You're Buying a Home

Lowballing it
Come in too low and you'll run the risk of alienating the seller. That's fine if low is all you'll go, or if the property is truly overpriced, but it can create problems with future negotiations. Some seller's take a lowball offer as a personal insult and may not be as anxious to deal with you as they would have been had you made a more realistic first offer.

Being generous
Come in too high and you may not find the seller's low point. If you really want the house, and if competition is high, an offer near or above the asking price might be a must. No matter what your strategy is, you should have a very good idea of the home's market value before you make an offer. If you're working with an agent

Seller's Agents
A seller's agent won't become too involved in your pricing dilemma, because it's the agent's duty to get the best deal for the seller. However, most agents will run lists of comparable properties that have sold and give them to you to study. Think distant here–the agent will give you material facts, but probably no opinions.

Buyer's Agents
A buyer's agent will help you determine the best price to offer. The agent will run comparables for you, and should become involved in offer strategies.

For Sale by Owner Homes
If you're working with a home that's for sale by owner, or just want to do some research, there are some steps you can take to find information yourself.

Finding Sales Information

Visit Your Courthouse
Ask the staff to explain how to decipher deeds or other records that indicate sales prices. For example, where I live, each real estate deed is stamped with the amount of excise tax paid at closing. Each tax dollar represents $500 in sales price, so it's easy to calculate how much the buyer paid for the property.
Home buyers around the US will find huge differences in the ease of this type of search. Some record-keeping systems are much simpler to access than others. Some localities have records available on disk or online, but most do not.
This type of search is easiest to accomplish when you know the address of specific properties or the names of the buyers or sellers. If you attend open houses, keep the listing sheets. When the house has sold, go get the details. Attending open houses helps you track the condition of homes. It's hard to make comparisons by looking only at recorded stats.
Public records often include sketches and facts about a home's structural components.

Asking prices
Advertising gives you a feel for average asking prices, but your focus should be on sales prices. You'll find them recorded as explained above or on multiple listing recaps of sold properties.

Should You Have an Appraisal?
Order an appraisal before making the offer, but make sure the results will not be shared with others (and keep in mind that opinions from different appraisers can vary).

What about tax values?
Tax valuations are not a good measure of a property's market value. Your community might have a general guideline, such as tax value = 80% of market value, but the figures are not usually reliable. Ask your local tax assessor for details about your specific area. Take a look at a home's tax value, but never assume it matches the market value of the property.

Other factors that affect price

• How long has the house been on the market? If only a short time the sellers might not too motivated.
• How does the house compare with others for sale in the same neighborhood?
• Is the house in need of repairs or massive updates? Updating items such as insulated windows, plumbing and electrical systems, kitchens, and baths can be costly.
• How much time is left in the roof?
• What about the neighborhood, do you foresee home values climbing, staying the same, or possibly taking a downturn?

Bottom line
Analyze each home's condition and compare it to others on the market, but your final offer will likely involve a good deal of gut instinct. Is it the house for you? If you've been searching for a home for awhile, you will probably know the answer to that question the minute you walk in the door.

Off to a Good Start

Determine Your Wants and Needs
Grab a piece of paper and divide it into three columns. If you'll have a co-owner, have that person make a list too, but don't share ideas just yet.

Column 1, List Must-Have Features

• If the house must be located in a specific neighborhood or school district.
• If the house must have 3 bedrooms, a 2 car garage, a large kitchen, a view.
• If there must be no restrictions against a home-based business.
• If the home must be one level, with few or no steps.
• List every feature you feel is a must.

Column 2, List Features You Would Like:

• A basement or a deck.
• Whirlpool tubs, walk-in closets.
• A certain type of architecture.
• Gas heat.
• Central air conditioning.
• List all features that are important to you--but that you might be flexible about.

Column 3, List Features You Do NOT Want:

• A home located next to a highway or in a congested area.
• Certain types of architecture.
• Homes that need a great deal of work.
• List all features you absolutely cannot accept.

Review your list. If your co-owner made a list, compare them to see if your priorities match. If they don't, you'll need to compromise, revising your lists so that both of you are happy.

Making a list is a good exercise because it forces you to think about your wants and needs, but I can almost guarantee you that the list will change and evolve when you actually begin to look at houses. Even home buyers with an unlimited budget rarely find the "perfect" home. Column 3, List Features You Do NOT Want:

Before You Start Looking
Before you head out to look at properties, get your finances in order. If you haven't reviewed your credit records, do it immediately. It isn't unusual for records to contain errors--and they can't be fixed overnight.

Get as many credit report problems corrected before you talk to a mortgage broker or lender. Here are some tutorials to help you check and correct your credit reports.

Deciding Whether a Home Improvement Makes Financial Sense
Millions of homeowners have taken advantage of low mortgage and home equity loan interest rates to make home improvements or remodel their homes over the last several years. When they sell their homes, many of them are unable to recoup the money they put into the improvements. Not all home improvements are created equal, so how do you know which ones will pay you back the money you put into them?

Home improvement payback values vary widely by region and even by neighborhood. In general, expect to recoup less of your investment in a slow real estate market than you would in a hotter real estate market where houses are appreciating rapidly in value.

One of the most popular projects, finishing your basement, has one of the lowest rates of return,. The average payback for finishing a basement is less than 50% of your costs, so if you spend $10,000, you can expect to increase the value of your home at resale by less than $5,000; the other $5,000 comes out of your pocket.

Kitchen remodeling and bathroom additions often pay back 75% to 90% or more of your costs. In-ground pools end up being notoriously bad investments, averaging a payback of less than 10%. Whirlpool baths, fireplaces, and decks don't fare much better. Remember that what's important to you may not be important to a potential buyer.

Improvements that potential buyers are most likely to be willing to pay for include:

• Adding or remodeling a bathroom
• Kitchen improvements
• Adding a room
• Landscaping
• Adding a bedroom
• Adding a garage

You can't always make a decision about home improvements based solely on the financial aspects. You may need extra space for an expanding family or have a home improvement that just can't wait, like a new roof. But if you're planning a home improvement project that doesn't have to be made, how do you decide if it makes financial sense?

Remember that when it comes time to sell your home, it's never a good idea to have the biggest or most expensive house in the neighborhood, because it will be more difficult to sell if the asking price is higher than other homes. The same principal applies when remodeling. If you make your home significantly larger or more expensive than others in the neighborhood, your likelihood of recovering your costs declines.

So, think carefully before tapping the equity in your home to make improvements. If you plan to sell in the next five or so years, you may recover only a small percentage of the money you put into your home improvements. You could even end up owing more to the bank than you can get for your house when you sell it.

If you're planning to sell and are considering making improvements in order to increase the selling price, do your homework first. Talk to experienced realtors, builders, and other industry professionals about whether you're likely to make back the money you put into the improvements.

Starting and growing your own business requires many skills to be successful. Take a look at the business personality types and find out what you need to succeed. Are you Bill Gates, a Visionary, or an Improver like Body Shop founder, Anita Roddick?

Your business personality type is the traits and characteristics of your personality that blend with the needs of the business. If you better understand your business personality, then you can give your company the best part of you. Find others to help your business in areas you may not be prepared to fulfill.

There are 9 key types of personality and understanding each will help you enjoy your business more and provide your company with what it needs to grow.

Begin identifying your dominant personality theme and understand how you operate in your business.

The 9 Personality Types of Entrepreneurs

1. The Improver: If you operate your business predominately in the improver mode, you are focused on using your company as a means to improve the world. Your overarching motto is: morally correct companies will be rewarded working on a noble cause. Improvers have an unwavering ability to run their business with high integrity and ethics.

   Personality Alert: Be aware of your tendency to be a perfectionist and over-critical of employees and customers.

   Entrepreneur example: Anita Roddick, Founder of The Body Shop.

2. The Advisor: This business personality type will provide an extremely high level of assistance and advice to customers. The advisor's motto is: the customer is right and we must do everything to please them. Companies built by advisors become customer focused.

   Personality Alert: Advisors can become totally focused on the needs of their business and customers that they may ignore their own needs and ultimately burn out.

   Entrepreneur example: John W. Nordstrom, Founder Nordstrom.

3. The Superstar: Here the business is centered around the charisma and high energy of the Superstar CEO. This personality often will cause you to build your business around your own personal brand.

   Personality Alert: Can be too competitive and workaholics.

   Entrepreneur example: Donald Trump, CEO of Trump Hotels & Casino Resorts.

4. The Artist: This business personality is the reserved but highly creative type. Often found in businesses demanding creativity such as web design and ad agencies. As an artist type you'll tend to build your business around the unique talents and creativities you have.

   Personality Alert: You may be overly sensitive to your customer's responses even if the feedback is constructive. Let go the negative self-image.

5. The Visionary: A business built by a Visionary will often be based on the future vision and thoughts of the founder. You will have a high degree of curiosity to understand the world around you and will set-up plans to avoid the landmines.

   Personality Alert: Visionaries can be too focused on the dream with little focus on reality. Action must precede vision.

   Entrepreneurial example: Bill Gates, Founder of MicroSoft Inc.

6. The Analyst: If you run a business as an Analyst, your company is focus on fixing problems in a systematic way. Often the basis for science, engineering or computer firms, Analyst companies excel at problem solving.

   Personality Alert: Be aware of analysis paralysis. Work on trusting others.

   Entrepreneurial example: Intel Founder, Gordon Moore.

7. The Fireball: A business owned and operated by a Fireball is full of life, energy and optimism. Your company is life-energizing and makes customers feel the company has a get it done attitude in a fun playful manner.

   Personality Alert: You may over commit your teams and act to impulsively. Balance your impulsiveness with business planning.

   Entrepreneurial example: Malcolm Forbes, Publisher, Forbes Magazine.

8. The Hero: You have an incredible will and ability to lead the world and your business through any challenge. You are the essence of entrepreneurship and can assemble great companies.

   Personality Alert: Over promising and using force full tactics to get your way will not work long term. To be successful, trust your leadership skills to help others find their way.

   Entrepreneurial example: Jack Welch, CEO GE.

9. The Healer: If you are a Healer, you provide nurturing and harmony to your business. You have an uncanny ability to survive and persist with an inner calm.

   Personality Alert: Because of your caring, healing attitude toward your business, you may avoid outside realities and use wishful thinking. Use scenario planning to prepare for turmoil.

   Entrepreneurial example: Ben Cohen, Co-Founder Of Ben & Jerry's Ice Cream.

   Each business personality type can succeed in the business environment if you stay true to your character. Knowing firmly what your strong traits are can act as a compass for your small business. If you are building a team, this insight is invaluable. For the solo business owners, understand that you may need outside help to balance your business personality.

Other children find making the transition to a new school difficult. For them, friends are hard-won and not easily replaced. A crowd of new kids elicits shyness not excitement. These children react to this challenge as they do to many other transitions in their lives: with reluctance.

In some ways, how children react to a new school is out of their parents' hands. Some children are naturally more at ease in new situations than others. And the structure of schools and the host country society also directly influence a child's experience. For example, about 17% of school-age children in the U.S. move to a different home each year, so being a "new kid" is pretty common. And in most American elementary schools, all children start in new class groups each year with a new teacher and children they may not know. From seventh to twelfth grades, most children move from class to class (and teacher to teacher) for different subjects throughout the school day, so "new kids" may not be very obvious.

Still, there are some ways parents can help:
• Visit the school with your child ahead of time. Most schools will let you walk around and find the toilets, the lunchroom, the gym, etc. Ask to see the room your child will be in. If the teacher is there, it will be a nice, quiet moment to meet.
• Play in the school playground. Even if your children do not "make friends" immediately, they will start to understand how children there look, dress, talk, and play. And the other children will begin to recognize them.
• Let academics take a back seat for a while. Learning occurs more easily when children feel comfortable and stable. In the early days of a new school, it may be more important for your child to make friends and learn about the school than it is to get top grades. Remember that mastering a new culture, a new language, new friendship patterns, and a new educational system are forms of learning. These may be more important life lessons than the math, science or history facts in the classroom.
• Help your children make friends. This is not simply so that your children will have more fun. Children who have problems with friends are more likely to have problems with school learning, problems with adults, and problems later in life. Children do not need lots of friends-some like big groups, some like having just one close friend. What is important is that they learn to share, cooperate, be kind, and feel accepted. You may need to take the initiative and invite another child or another family to come to your home or do an activity together.
• Be proud of your children. Children are accomplishing many major tasks in the early days. They may be learning a new language as well as new educational goals and methods. And yet they soon acclimate academically, make friends, and play ball alongside the others. Children are resilient, flexible, and creative. They will use these skills more easily if they feel your support and pride.

This article is adapted from a new book, Understanding American Schools: The Answers to Newcomers' Most Frequently Asked Questions, by Anne P. Copeland and Georgia Bennett (available from http://www.interchangeinstitute.org).

ABOUT THE AUTHOR: Dr. Anne Copeland is a clinical psychologist with a specialty in helping internationally mobile families. She is founder and Executive Director of The Interchange Institute in Brookline, MA, USA.

Advice to help your pets settle in safely.

Be prepared

• Cats and dogs become very attached to their own familiar territory, so give them extra care and attention before and during the move.
• Keep them indoors on the day, in a quiet room - preferably the room in which they have their bed - and well away form the hustle and bustle of the moving team.
• Don't allow your animals to go out unaccompanied - they may wander off and want to leave.
• You could keep your pet away from all the commotion by asking a sympathetic friend, neighbor or relative to look after it for you.

Be safe and secure

• Cats should be transported in a secure basket. For longer journeys these should be the wicker and wire variety measuring at least 50x28x28cm.
• Small animals like guinea pigs, hamsters and rabbits are best transported in well-ventilated 'chew-proof' containers made of metal or rigid plastic.
• Give them plenty of bedding, and a little food.
• Water must be provided throughout the journey in a non-spill container.
• Avoid sudden sharp movements and loud noises as these are stressful to your pet.
• Ideally the animal should be kept in the dark using a blanket, if necessary, to cover the cage or container, but be careful not to block out air holes.
• Budgies travel best in a well-ventilated box with subdued lighting - this has a calming effect.
• If the budgie is traveling in its cage, make sure you remove any articles which could become dislodged.
• Throughout the trip, keep the budgie as quiet as possible. Covering part of the cage with a cloth or blanket may help, but make sure there is good ventilation.
• Fish should be transported in clean, strong, polythene bags part-filled with tank water.
• Make sure you seal the bags leaving a good air pocket above the water.
• Gently place the bags into a polystyrene container - available from fish importers and aquatic specialists. Label the containers with their contents, a picture if possible and the words'this way up'.
• Remember: never move fish in their glass tank.

Ease travel trauma

• Many animals don't like traveling by car- they can suffer from travel sickness, panic attacks and anxiety.
• To prevent travel sickness it is advisable not to feed them for 12 hours before a journey.
• If you know your pet suffers from travel sickness, ask your veterinary surgeon about anti-sickness pills.
• Make sure the car is well ventilated.
• Dogs need frequent stops for exercise, watering and urinating.
• Ideally your dog should travel in a holding cage, but make sure it is suitable for its size.
• Keep your dog on a lead and never leave your dog alone in a car for any more than a few minutes. Remember, the temperature in a parked car can rise very quickly and your pets may die from the heat. If you do have to leave them for those few minutes leave a window open and make sure the car is parked in the shade.
• Fish need to be taken to their destination as quickly as possible.
• Be careful in extremes of weather. On a hot day the water will heat up quickly causing fish to overheat and die. On a cold day the water will cool down to a very low temperature in which fish cannot survive.

At your new home

• Cats may take a little while to adjust to new surroundings.
• Give your cat a fresh litter tray, food and lots of attention.
• Let it rest quietly at least overnight, then when things have settled down let it explore the rest of the house.
• After two days or so, your cat can go on a supervised short walk to gets its bearings. Remember: any cat which has been frightened or panicked may try to go back to its old home.
• Give your cat only part of its normal feed just before it goes out alone for the first time - this will encourage its to come back to it new home.
• Dogs adapt quicker though your dog will still need to be left in a quiet room with food and water to recover from the journey.
• Take it on lots of walks to introduce it to the new surroundings.
• Your dog should be wearing a collar with an identity tag, but make sure it has your new address on it just in case it gets lost and tries to return to the old house.
• Fish need to be settled into their new home straight away. Treat them as if they were new fish, de-chlorinating the water in the tank.
• Before you place your fish back in their familiar surroundings ensure both the water in the tank and the water in the bags is at room temperature.
• Every year many animals are lost when their owners move house.
• The owner's name and address is entered next to this number on the national Pet Log computer database so that pet and owner can be re-united.
• Contact your local veterinary surgeon for further details.

Why Children are Impacted by Divorce

Why Children are Impacted by Divorce
Some fathers and mothers see divorce as "their" issue. "We just can't get along anymore" or "She has been unfaithful." In fact, the marital relationship has far reaching ramifications for children, extended families, friends and others.
The following are some perspectives on the view of children in a divorcing family.

• Fear of Change. The children in a divorcing family know that nothing will ever be the same again, and their previously secure world is in a state of change. Many things will change, not just that mother or dad will not be around. They may lose contact with extended family on one side or the other. Their bedtime, mealtime and after school routines may change. It is a state of upheaval.
• Fear of Being Abandoned. When mom and dad are at odds and are either separated or considering separation, children have a realistic fear that if they lose one parent, they may lose the other. The concept of being alone in the world is a very frightening thing for a child.
• Losing Attachment. Children who have a natural attachment for their parents also fear losing other secure relationships-friends, pets, siblings, neighbors, and so on. Sometimes children are simply attached to their surroundings, and moving into new surroundings can cause an understandable negative reaction.
• Coping with Parental Tension. Even though many divorces follow years of tension between husband and wife, the tension level typically increases during and shortly after a divorce. And parents who try to turn their children against the other spouse create an absolutely impossible situation for that child.

Part 2: Danger Signs
Understanding a little about what children go through when their parents divorce, parents should watch for some common signs that their children are not effectively handling the divorce process. These danger signs include:

• Trying to Bring Parents Back Together. Some children have the mistaken notion that the breakup of the family is somehow their fault. These children typically either "act out" in negative ways, or try to be perfect in an effort to be "so good" that the parents won't need or want to divorce.
• Aggression and Defiance. I know that some parents will think that this is just normal behavior even when there are no marital differences. The key is being aware of uncharacteristic aggression in your children. Are they more angry and uncooperative than usual?
• Depression and Withdrawal. Many children in a family under stress will withdraw or show signs of depression. These might include hermit-like behavior, the early signs of eating disorders, discussion or threats of suicide and the like.

The Effects of Divorce on Children and How to Cope

Part 3: Appropriate Strategies
So what can parents do to help mitigate the impact of a divorce? Understand that a parent can't make the effects go away, but they can make the situation more tolerable and secure for a child.

1. Both Parents Must be Involved. It does very little good for one parent alone to work at reassurance. Both parents need to make sure the children understand that both mom and dad will:

• still be their parents
• act like parents
• discipline them when needed
• protect them from harm
• follow consistent rules
• not lean on the child for support but will provide support for the child, and
• both love the child and will remain in the child's life.

These are the most important messages.

2. Divorcing Parents Must Respect One Another. There is ample research to suggest that children do best when their divorcing parents treat each other respectfully and civilly. Even if your anger is burning or you feel wronged in the divorce process, parents must not communicate that to their children. Vent to friends or bartenders, but not to the kids.

3. Keep a Routine. Children feel more secure when there is a standard routine. Stick with bedtimes, no matter at which home the children are. Have some consistent chores. Have some time committed to the child which is treated as sacred.

4. Get Help When Needed. There are many resources for help for your children. If your employer has an Employee Assistance Program, make use of it when needed. If you sense that your child needs professional help or therapy, don't hesitate to get started. Sometimes there will be issues that a parent is just not able to deal with effectively.

Conclusion
Children are often the innocent bystanders in a divorce situation. And no matter how justified the reason for the divorce, parents need to understand their responsibility to minimize the impact on them and make this major change in their lives as easy as is humanly possible.

Adjusting to Being Alone Together

THINGS YOU'LL NOTICE RIGHT AWAY

• You may feel a sense of emptiness and loneliness.
• You are delighted to see emails from your kids or have them call you.
• Your grocery bills are lower.
• Abandoned pets need feeding.
• There's food in the refrigerator.
• The house stays clean.
• You look forward to receiving pictures from the kids.
• You only have to wash clothes and towels once a week.
• Your home is quiet.
• There's hot water when you want it.
• The phone rings less.
• Your water bill takes a dive.
• You can use the computer whenever you want.
• Your attic is full of boxes of the kids' mementoes and belongings they need stored for awhile.
• You may keep some of your kids' favorite stuffed animals or toys where you can see them.
• You can make love on the living room sofa in the middle of the day.

THINGS YOU NEED TO DISCUSS

• Your hopes and dreams for the future
• Expectations
• The sense of grief you are both feeling in dealing with the kids leaving home
• Financial concerns
• Health issues including menopause and andropause
• Downsizing
• Changing roles
• Where you want to live for the rest of your life
• Boomerang kids
• Grandchildren
• Aging parents
• Getting in one another's way and on one another's nerves
• The importance of being versus doing
• Travel
• Having fun together

THINGS YOU NEED TO DO

• Seek counseling if your empty nest marriage is showing signs of withdrawal, alienation, and negativity. Empty nest dads may feel a sense of regret over things they didn't do and time not spent with their children.
• Limit how often you call your kids.
• Don't place guilt trips on your kids. This is especially important during the holidays.
• Keep lists of each kids' favorite foods for when they visit or when you put together a care package to send out.
• Develop a flexible mindset and be open to change.
• Work on becoming friends with your adult children.
• Don't rush into volunteer roles, travel, taking classes, moving, or emptying out a kid's room. You have plenty of time.
• Schedule dates with each other.
• Make a list of things you have never done but would like to do.
• Make some short-term and long-term plans on how you will spend your money and time.
• If you are thinking about downsizing, see if you can declutter and simplify your life without moving.
• Before making a move to a new location, make sure you have truly double checked your tax situation, and tax benefits from selling and buying, along with analyzing maintenance and utility costs in the new location.
• Don't make assumptions about what your spouse is thinking or wanting to do.
• Marital burnout doesn't happen to empty nest couples who don't resurface old issues, and who continue to be sensitive and aware of one another. You can turn the second half of your marital journey into a delightful journey of discovery and joy

It may take children and adults months to adjust after a move. For many children and adolescents, giving up the familiar - friends, favorite places, and routines - can be difficult. As parents focus on coordinating the moving process, some children react negatively to the decrease in attention. Children may experience anxiety and grief before, during, and after a move, and these emotions are intensified if moving results from major family disruptions, such as divorce or death.

Easing the transition to a new home is important for children.

Some tips for parents include:

• Involve children in the move as early and as much as possible. Age-appropriate tasks or responsibilities can help children have a sense of control over their situation. For instance, younger children might be allowed to select where they would like to sleep, while older children might play more active roles in the selection of their new home.
• Try to maintain daily routines. While children are adjusting to new homes, neighborhoods, and schools, parents can provide some comfort by keeping some things the same. For instance, having the same nap times, morning and bedtime routines, and meal times might be comforting, especially for younger children.
• Be patient with children and empathize with their feelings. In some cases, children may not like their new schools, neighborhoods, or living arrangements despite their parents' best efforts. If this happens, parents should not become frustrated or angry. Instead, they should talk openly with children about their anxieties and reassure them that their feelings are normal. It will take some time to adjust to new surroundings.
• Help children make new friends and get them involved in their new communities. Participating in activities such as camps, after school programs, and neighborhood clubs is an excellent way for children to make new friends. Also, adults can use these activities to meet other parents in the neighborhood.
• Visit new schools to see if orientation programs are available for newcomers. These orientation programs can help alleviate many worries children have about their new school, such as knowing their way around and where their lockers are.
• Look for warning signs of children not adjusting well. Long-term anxiety, depression, significant disruptions in sleep, poor socialization, and falling grades may indicate that children need professional mental health services to help them adjust to their new environment. Seek help early.

Your family's move can be an exciting time for your children and for you. It can also be a stressful and sad time. Your child may have different feelings about your family's move: scared about going to a new school, excited about your new home, sad about leaving old friends or angry with you about moving.

Every year, one out of five American families move. One of the most important issues to anyone with kids is their reaction to the news that they're moving, and their adjustment to the new home. Being informed is very important to children. One of the worst mistakes we can make as adults is to assume that kids don't care or won't understand the details. keeping them "in the loop," consulting them about choices whenever possible, and including them in the family game plan will work wonders toward their adjustment. Other factors depend on the child's age:

Preschool children:
Kids under the age of six may worry about being left behind, or being separated from their parents. If you go on an orientation or house-hunting trip beforehand without the children, it's important to reassure kids this age that you will be back; bring something unique back to them from the new town. It's very important for them to express their feelings and fears about the move. Give them a job to do -- have them be responsible for boxing up their favorite toys, and "labeling" their boxes with crayons and stickers.

Ages 6 to 12:
Elementary age kids are usually most concerned with how the everyday routines of their lives are going to change. Showing them pictures, videos and magazines of their new home will help a lot, especially if you can find new places in advance for the things they like to do. If your child takes dance lessons, find & share information about the new dance studio she can go to. If he takes karate, or plays soccer or baseball...even if her favorite thing to do is the park or the pizza parlor, find these places in your new neighborhood and get brochures, pictures or videos.

Teenagers:
These kids are most concerned with fitting in. They may react angrily to the move, even insist they're not going. This is usually due to the total lack of control they have over everything important in their lives--friends, school & jobs--being disrupted. These children can be very worried about making new friends, and what will be different in the new school. They are curious about the clothing, hairstyles, bicycles, cars, etc. that kids in the new city will have. Pictures of all these things are very helpful, so if you take an orientation trip be sure to take many detailed photos/videos of the schools they will be attending.

Other tips for making the transition:
• Give young children an entertaining travel kit for the move.
• Give older children a diary for recording the trip & move.
• Give children of all ages a special address book & stationary set for keeping up with old friends.
• Take videos of the new home if the kids won't get to see it before the move. arrive well before the movers so kids can explore and become acquainted first.
• Give children a chore to do, such as working on their room (younger), supervising little siblings (middle), and painting or arranging furniture (older kids).
• Take a break with the family as soon as possible to explore the museums, sights and recreation in your new city.
• Arrange a visit to new schools and a meeting with the teacher before the actual first day of attendance.
• Encourage the children to bring new friends home.

What Is a Home Inspection?
A home inspector evaluates the structure of the house, and gives feedback about other systems such as the roof, plumbing, electrical system, heating and air conditioning units, insulation, doors, windows and more.

Are Home Inspections Required?
Home inspections are an extra expense and usually optional, so do you really need one? Probably. Money might be tight for closing, but try to imagine moving in and finding out that the air conditioning unit isn't capable of cooling the house, or that portions of the electrical system are substandard, or that the chimney needs immediate repairs.

What if the Inspection Uncovers Problems?
First, your offer to purchase should have included a detailed statement regarding your rights to a home inspection. The standard contract used by real estate agents may give you the right to back out of a contract if a home inspection uncovers more problems than you are willing to deal with. If it does not, the wording should be added in the form of a contingency.

Don't assume the seller will make every repair you ask for. They may refuse to make any repairs at all. Read your contract carefully before signing it so that you understand the rights and obligations of all parties. Never rely on a verbal agreement--agreements must be in writing to be valid.

Who's the best person for the job?
Evaluate your new home. Experienced inspectors have seen hundreds, or even thousands, of homes and have the routine down-pat. They know exactly what to look for, including all the little quick-fix tricks.

My brother can do it.
Some people truly do have a friend or family member who can perform an inspection. But even though your brother may have some building experience he may not have the equipment or expertise required to do a thorough evaluation of the home. What if he misses a major problem? Will it create hard feelings within the family?

I'm in love with this house, so it doesn't matter.
So much in love that you're ignoring problems? An inspector takes a clinical look at the house. You'll get only the facts, and that's what you need to make decisions about going forward with the purchase. If you don't really care what problems you might run into, go ahead. You're the only one who can determine how much time, energy and money you can devote to the house. But keep in mind that an inspection that uncovers safety issues can help you prioritize repairs.

It's a brand new home. There won't be any problems.
Maybe in a perfect world. New construction isn't always problem-free.

Quick Tip

Simple Steps for Clearing A Room

1. Remove all small stuff and place them in boxes.
2. Remove all furniture, regardless of size. If there is no room, place the furniture at one side of the room.
3. Clean the room from top to bottom. Clean the walls, floors, and windows.
4. Start with the paint colors on the wall. Decide what the purpose of the room is. Choose soft colors for a balanced room and bright colors for a game room or entertaining room.
5. Only return stuff to the room that has a purpose. For each item, ask what is its purpose. If it does not have a purpose, keep it in the box.
6. Simple and clean is better than cluttered and overwhelming. You can always add things from the boxes at a later date.
7. After you add an item to the room, just sit for a moment and feel the energy of the room. If the item brings a smile, comfort..., keep it. If the item brings aggravation, anger..., give it away and put it away in the box.
8. Remove big items as well. Do not keep a piece of furniture because it was a big expense. Only keep furniture that has a purpose.

Rearrange the Furniture
Remember that the purpose of this preparation is to sell your home fast. What worked for your family may not work for an open house. You may need to call in help from friends or a pro to help you rearrange the furniture for a smooth traffic flow and maximum impact.

Accessorize
Rethink your accessories in every room. Keep in mind -- uncluttered, elegant, color-coordinated, beautiful. Again, less is more, so pare down and box up anything "extra" or unneeded.

Fresh Flowers and Plants
Look carefully at your houseplants. If they're leggy, dying, or otherwise scraggly, it's time to give them a new home or toss them out. Start over with some new plants. There are some services in larger cities that will rent houseplants, so that may be an alternative to buying everything new.

Be sure to place the plants in clean and attractive containers that will contain and reduce any problems from excess watering.

Turn Up the Light
Dark areas are uninviting, so keep the lights on. Some quick fixes might include opening the blinds, adding lamps, increasing bulb size, or replacing dated light fixtures. You might consider buying several inexpensive uplights; placing them in corners, on top of a tall armoire, or behind plants to create an interesting layer of light.

Bathrooms
Clean and neat is obvious. But also consider replacing torn and frayed old towels with a couple of fresh new ones. Put a flowering plant on the vanity, and remove all personal care items from the countertops. Put the dirty laundry somewhere else (perhaps in the washer). Polish the mirror until it glows. If you have room a small table lamp can give a warm glow to this room.

Keep It Up
Maintain Don't undermine your hard work by ignoring basic maintenance during the weeks your home is being shown. Keep up on watering the plants, polishing the mirrors, dusting the front door, and keeping clutter at bay.

Pets
I know that my pets are part of my family, but prospective buyers may not be quite so attracted to them. If you can, take your pets and their paraphernalia to a neighbor's or a relative's home when showing your house. If that's not possible, put them outside or in a closed room.

Appealing Extras
Many realtors suggest baking bread or cookies to fill a home with a wonderful aroma. Practically speaking this may not be possible every day, but you might keep it in mind for open houses or repeat visits by potential buyers. Or buy some potpourri and refresher oil in a non-offending fragrance like cinnamon or vanilla.

Floor Plans
If you have a clear floorplan of your home (perhaps from your builder) include it on the back of your home information sheet. It will help refresh the memory of buyers and help set your home apart from all the others they've seen. The plan should be professionally drawn, including room measurements.

Staging Relaxing Areas
Think of each room as a "set" that you can decorate any way you please to increase your home's sense of peace, warmth, and order. Consider some of these ideas:

• Set up a tea service at a small table by a window overlooking a garden.
• Place an open book and cozy throw on the upholstered chair in your bedroom.
• Pile an attractive bowl with fresh fruit on the kitchen island.
• Display a vase of fresh (very fresh) flowers in the entry hall.
• Arrange some beautiful cookbooks on the desk in your kitchen.

In short, have some fun with a few accessories here and there, making interesting little vignettes that say “Welcome ". They could very well help sell your home in record time and for a higher price!

Preparing your home for sale is a bit like designing a stage for a play. Everything is in just the right place, perfectly arranged, and comfortably set.

There are television shows like Designed to Sell focused exclusively on, not decorating a home, but getting an otherwise drab, cluttered, boring house ready for a quick and profitable sale. Homes that are properly prepared sell faster and at a higher price than similar, unprepared homes.

Get out the cleaning supplies, boxes, and get ready to sell your home fast! You'll love how easy it is to transform a languishing, slow-moving home into a quick sale with just a bit of elbow grease and an eye for beauty.

You may be lucky and just need to do some long-neglected simple home repairs, get rid of clutter and add fresh flowers.

Or you might have to repaint or recarpet your home to give it a fresh look. If you're handy, you'll be able to do most things yourself. But you may need to hire a plumber to install a new faucet in the kitchen or other professional to replace outdated light fixtures or window treatments.

You need to keep in mind that you're not going to make the changes to live in your home. Your only goal is to show your home at its very best to potential buyers. Without being distracted by clutter and dirt, they'll be able to picture themselves in the home you're trying to sell. They will find it hard to resist making an offer.

If you're skeptical about the benefits of going to all this work or doubt that it will make any difference in selling your home, put yourself in the place of a home buyer.

Have you ever toured through a development of model homes? The paint is fresh, appliances are shiny, there is artwork arranged around the house, and fresh flowers stand on the kitchen counter. Mirrors are sparkling, towels fresh, and there are no toys on the floor. The rooms look spacious and the furniture comfortable.

The kitchens and bathrooms are polished, smelling fresh, and clutter is not to be seen. The closets are empty or organized. The garage floor is clean and neat and looks much larger than you'd need for two cars.

Now leave the development of models and go down the street where the homes are several years old. Children's toys are stacked in the family room. So many boxes are piled in the garage that you couldn't park even one car there. Clothes fill the bedroom closets and boots and mittens fill the hall closet. The house isn't dirty, but there are dishes in the kitchen sink and toothpaste stuck on the bathroom vanity. Homework is spread out on the dining room table. The family dog is yapping because of the strangers in the house and the floors are scratched. Dead plants "welcome" you at the front door.

With all other things being equal, which house would be more appealing to you? Of course, the first one! The homes may be the same size, but because of the clear layout, the first home seemed much larger. The house was prepared to show off all the good points and none of the bad.

Look at Things With a Professional's Eye
Lori Matzke, Professional Home Stager and Founder of "Center Stage Home" says, "What most homeowners need to understand, is that the way a home should be presented for resale and the way you live in your home are two completely different things. Most of us don't actually live in our lives like a page torn out of House Beautiful.

"Keep in mind that what you are selling is the house -- not its contents," she adds. If you remove throw or area rugs, eliminate clutter and collections, and cut down on furniture and accessories, the room will appear to be more airy and spacious. "It's all about flow. The eye should move easily from room to room, reflecting on the best features of your home rather than on the possessions inside the home. You really have to completely detach yourself from your possessions and look at your home like you're seeing it for the first time." Look through the eyes of the buyer.

If you just can't see through all your things to the core of your home, consider hiring a professional. Interview two or three home stagers at your home Find out what they will (and won't) do, how long it might take, what the fees are, and how soon they might be able to start. Ask for references from recent customers, see photos of their "before" and "after" homes, and get their opinion on what exactly needs to be done in your home. Also, be sure to clarify what items in the plan that you will be responsible for (perhaps moving clutter to the storage unit) vs. what they will handle for you.

"Often, a Professional Home Stager can advise you about small improvements that will improve your home's re-sale value," says Ms. Matzke. "Often times, things a homeowner may overlook, like adding fresh paint and replacing worn carpeting, can make a huge impact on a buyer's first impression of your home. And likewise, what a seller feels may be a big drawback may not be a factor at all in the overall appeal of the home." Ms. Matzke offers more information and a printable list of home staging tips on her website, Center Stage Home.

Common Home Selling Problems that Slow Down Your Sale

There are lots of reasons why offers might not come in when you're selling a home, but let's get past the top home selling killer - overpricing. It's the first thing you should consider if your house is still sitting on the market while others around it are changing owners.

Price the House for its Market
Some home sellers want to price their homes way above market value, because they think the cushion gives them more negotiating room. But what overpricing actually does is eliminate potential buyers.

A home with a true value of $200,000 has a certain set of features that contribute to its value. A house valued at $160,000 in the same market normally has less to offer than the higher priced home and simply can't compete with it.

Buyers in the $200K range won't be impressed with the home's features and buyers looking for homes nearer its true market value won't even see it because of the too-high pricetag.

It doesn't matter what you want for your property, what's important is what your property is worth.

Overpricing is usually easy to correct, but there are plenty of homes that buyers pass on for other – sometimes simple – reasons.

Four Simple Reasons Homes Don't Sell

1. A Horrible Photo in the MLS
   You might be surprised how many buyers say NO to houses simply because of poor photos used in ads or Multiple Listing Service handouts. It's even more amazing that agents let them discard a house based on that criteria, but it happens all the time.

   Good photos are not always easy to get. Houses aren't built on lots with thought to future photo opportunities. The sun isn't always in an ideal position for the photo. The agent might not be capable of taking a good picture.

   Home selling rule number one is to make sure the house is well represented in all photographs.

2. It's Hard to Sell a Dirty House
   Some sellers don't bother to clean a house before they try to sell it, and if they don't even clean when they know people will be inspecting the house, they sure won't freshen up the paint, sort through clutter or handle odor control.

   Home buyers nearly always think that dirty houses need repairs, when all they usually require is some thorough TLC. After a few turned-off buyers, agents hesitate to show dirty houses. No showings, no sale.

   Take a hard look at the property to make sure your house doesn't fall into the needs-cleaning category.

3. Curb Appeal is the Pits
   Home buyers like to do drive-bys. Imagine driving by a house that's for sale and finding that the yard hasn't been mowed recently or worse, that it's full of weeds. Or seeing loose items scattered everywhere on the lawn. Or dirty windows. Or discovering that the home's color is just one shade shy of outshining the sun.

   If the home's curb appeal is terrible, the majority of buyers won't even make an appointment to go inside. Improve your curb appeal before the first buyer has a chance to view your property.

4. Outdated, Worn Out Components
   We are creatures of habit. That old vinyl on the kitchen floor has worked forever, so why don't the buyers like it? The dated light fixtures are just fine, too, and the sellers wouldn't think of replacing the orange shag carpeting in the family room.

   Look at the house with a fresh attitude and try to see it as buyers do. How can you make improvements? If your house is listed with an agent, ask for written feedback from buyers who have seen it. If the same negative comments show up repeatedly on feedback forms, you'll know where to start working on the house.

   Move carefully with updates, analyzing the work to determine which updates make sense from a cost vs. recovery standpoint.

Clear the Decks
Rent a storage unit or borrow a friend's garage for a few weeks or months and fill it with boxes of collectibles as well as sports equipment, holiday decorations, seasonal clothing, and extra furniture.

Then begin to fill it with things that are unsightly. Add prepacked items, boxes of garage clutter, and items pulled from storage areas including the basement and attic. You're going to have to move it sometime anyway, so get some of it out of the way before you begin showing your home.

What Goes, What Stays?
You know that people will open your cupboards and closets. Be sure they're organized neatly and not packed to the point of overflow. They'll look more spacious if you don't try to show off your whole wardrobe or collection of china.

They're not buying that! Let potential buyers envision their own thing there. Will they fit, or will the space seem too small, since your own things don't fit?

If your closets are stuffed, it's time to weed through things. You can either sell or give items away or pack them up for your next home. Every storage area in your home -- including display shelves -- should be neat, clean, organized, and clutter-free.

Get Rid of Personal Items
Take down your wedding photos, religious items, the kids' school pictures, and your collection of refrigerator art. A buyer needs to picture himself living in the house. That will be more difficult if your personal photos, awards, and mementos are evident everywhere. It won't take long to remove these things. Be sure to wrap them carefully and put them in the storage unit.

Remove All Valuables
During the time of your home sale, you'll have lots of people coming through, including potential buyers, groups of realtors on walk-throughs, open houses, inspectors, cleaners and handymen. Before they do, pack up your art collections, crystal, silver, and anything that could be stolen or broken. You'll be moving it anyway, so you might as well get it ready ahead of time.

Make a List
Ask your realtor, a friend, or your home stager to help you put together a list of items that need fixing. Walk slowly through every room and look for obvious defects, such as loose door handles, burned out light bulbs, leaking faucets, or stained carpeting. Add to the list little irritants or eye-sores, such as slippery rugs or dangling extension cords. You might as well take the time to make repairs before buyers knock on the door.

Anticipate the Home Inspection
Most buyers hire a third-party inspector to check out the systems of the house prior to purchase. Ask for a copy of a home inspection report to learn what areas of a home will be examined before the sale. Whenever possible, repair the items that could be cited on the report. You'll probably not be able to anticipate every inspection item, but you'll have another chance to fix these later, after the report comes back.

Clean and Repair Tile Grout
You might have lived with gray tile grout or moldy caulk around the tub. But these items may turn off a potential home buyer. Take a good look at your kitchen and bathroom tile. Clean and bleach white grout to remove any stains. Scrape out and regrout any badly damaged or mildewed areas. Caulk corners, cracks, and gaps around the sink and tub.

Clean Like You've Never Cleaned Before
Once the clutter is out of the way, you can really get to some thorough cleaning. Cleaning for home staging goes beyond a regular house cleaning routine. You'll want to really concentrate on bringing a sheen to every surface of your home.

Make a list and do the work yourself or hire a cleaning crew to come in after you've moved out the clutter -- and just before your home goes on the market. Check every surface including windows (inside and out) and window sills, ledges, door knobs, ceiling fan bladess, mini blinds, ceiling and floor corners -- and make sure they are clean. It might be helpful to make a list of things to be done in every room. Check off the items as you complete them.

Create a Welcoming Entrance
Remember the outside of your house when you're getting ready for sellers. After they see your home from the street, they'll notice the front door and porch. Spend some time and money getting this area beautiful.

Wash, scrub, or repaint the front door so that it shines. Replace the door handle if it is weathered and unsightly. Clean any windows in this area until they sparkle. Add a fresh topiary or planter and keep it watered and trimmed. Put a pretty wreath on the door. Stand outside and look into your entry area. It will be the first thing buyer's see of the inside of your home. Is it welcoming, clean, uncluttered?

Capital Gains Taxes

$250,000 Exclusion on the Sale of a Main Home
Individuals can exclude up to $250,000 in profit from the sale of a main home (or $500,000 for a married couple) as long as you have owned the home and lived in the home for a minimum of two years. Those two years do not need to be consecutive. In the 5 years prior to the sale of the house, you need to have lived in the house for at least 24 months in that 5-year period. In other words, the home must have been your principal residence.
You can use this 2-out-of-5 year rule to exclude your profits each time you sell or exchange your main home. Generally, you can claim the exclusion only once every two years.

Exceptions to the 2 out of 5 Year Rule
If you lived in your home less than 24 months, you may be able to exclude a portion of the gain. Exceptions are allowed if you sold your house because the location of your job changed, because of health concerns, or for some other unforeseen circumstance.

Change in the Location of Your Job
If you lived in your house for less than two years, you can exclude a part of your gain on the sale of your house if your work location has changed. This exception would apply if you started a new job, or if you are moved to a new location with your employer.

Health Concerns
If you are selling your house for medical or health reasons, be ready to document those reasons with a letter from your physician. Such a letter does not need to be filed with your tax return. Instead, keep the documentation in your personal records just in case the IRS wants further information.

Unforeseen Circumstances
If you are selling your house because of unforeseen circumstances, be ready to document what those reasons are. IRS Publication 523 defines an unforeseen circumstance as "the occurrence of an event that you could not reasonably have anticipated before buying and occupying your main home." The IRS has given specific examples of unforeseen circumstances:

• natural disasters,
• acts of war,
• acts of terrorism,
• change in employment or unemployment that left you unable to meet basic living expenses,
• death,
• divorce,
• separation, or
• multiple births from the same pregnancy.

Partial Exclusion
You can exclude a portion of your gain if you are selling your home and lived there less than 2 years and you meet one of the three exceptions. You calculate your partial exclusion based on the amount of time you actually lived in your home.
Count the number of months you actually lived in your home. Then divide that number by 24. Then multiply this ratio by $250,000 (if unmarried) or by $500,000 (if married). The result is the amount of gain you can exclude from your taxable income.
For example: you lived in your home for 12 months, and then sold the home because your employer asked you to relocate to a different office. You are an unmarried person. You calculate your partial exclusion: 12 months divided by 24 month (for a ratio of .50) times your maximum exclusion of $250,000. The result: you can exclude up to $125,000 in gain. If your gain is more than $125,000, you include only the amount over $125,000 as taxable income. If your gain is less than $125,000, then your gain can be excluded from your taxable income.

Loss on the Sale of a Home
You cannot deduct a loss from the sale of your main home.

Reporting the Gain on the Sale of Your Home
Gain on the sale of your home is reported on Schedule D as a capital gain. If you owned your home for one year or less, the gain is reported as a short-term capital gain. If your owned your home for more than one year, the gain is reported as a long-term capital gain.

Calculating Your Cost Basis and Capital Gain
Just like calculating capital gains, the formula for calculating the gain or loss involves subtracting your cost basis from your selling price.

The formula for calculating your cost basis on your main home is as follows:

• Purchase price
• + Purchase costs (title & escrow fees, real estate agent commissions, etc.)
• + Improvements (replacing the roof, new furnace, etc.)
• + Selling costs (title & escrow fees, real estate agent commissions, etc.)
• - Accumulated depreciation (for example, if you ever took the office in the home deduction)
• = Cost Basis

And then calculating your profit or loss would be:

• Selling price
• - Cost Basis
• = Gain or Loss

If the resulting number is positive, you made a profit when you sold your home. If the resulting number is negative, you incurred a loss.

Finally, calculate your taxable gain:

• Gain
• - Maximum or Partial Exclusion
• = Taxable Gain

Get into a Home Selling Mode
It's difficult to look at our own house in the same way that potential home buyers do, because when we become accustomed to the way something looks and functions, we can't see its faults. Decide right now to stop thinking of the property as a home. It's a house - a commodity you want to sell for the highest dollar possible.

Curb Appeal Exercise
The next time you come home, stop across the street or far enough down the driveway to get a good view of the house and its surroundings.

1. What is your first impression of the house and yard area?
2. What are the best exterior features of the house or lot? How can you enhance them?
3. What are the worst exterior features of the house or lot? How can you minimize or improve them?

Park where a potential buyer would park and walk towards the house, looking around you as if it were your first visit.

Take photos of the homes exterior. If you have a digital camera, view the color versions first, and then switch the photos to grayscale, because it's easier to see problems when color isn't around to affect our senses.

Make a list of the problem areas you discovered. Tackle clean up and repair first, then put some time into projects that make the grounds more attractive.

Curb Appeal Starters
Start with some basic curb appeal tasks:

• Kill mold and mildew on the house, sidewalks, roof, or driveway.
• Stow away unnecessary garden implements and tools.
• Clean windows and gutters.
• Pressure wash dirty siding and dingy decks.
• Edge sidewalks and remove vegetation growing between concrete or bricks.
• Mow the lawn. Get rid of weeds.
• Rake and dispose of leaves, even if your lot is wooded.
• Trim tree limbs that are near or touching the roof.

Don't Forget the Rear View
Buyers doing a drive by will try their best to see your back yard. If it's visible from another street or from someone's driveway, it should be a part of your curb appeal efforts. Assess Evening Curb Appeal
Do your curb appeal exercise again at dusk, because it isn't unusual for potential buyers to drive by houses in the evening. Improve Lighting

• String low voltage lighting along your drive way, sidewalks, and important landscaping elements.
• Add a decorative street lamp or an attractive light fixture to a front porch.
• Make sure that lighting visible through front doors and windows enhances the home's appearance.

We had a listing for a large brick house with white columns in front. Tall evergreens, planted in front of each column, had grown taller than the roof. They obscured the columns and windows and made it difficult to see the front of the house.

We suggested that the owner remove them. She trimmed them back, but it didn't do the trick - they were unattractive and still kept potential buyers from seeing the true character of the house.

I sold the house to a couple who could see past the trees. One of their first tasks after closing was to yank them out of the ground, instantly boosting the home's curb appeal.

Most buyers cannot visualize changes, and often won't take a second look at a house if the first isn't appealing to them. Home buyers who can visualize changes to the home, and are prepared to make them, will expect YOU to reduce the price of the house to compensate for the work.

You must show buyers the best aspects of a property - you cannot expect them to imagine improvements on their own.

Curb Appeal Tips

• If you can budget it, a fresh paint job does wonders for a dingy house. Drive around your town to find color schemes that are appealing.
• How about a more attractive front door, maybe something with leaded glass inserts?
• If you can't justify the cost of a new door, consider replacing plain doorknob hardware with something more attractive.
• If new hardware is beyond your budget, how about repainting or staining the door and polishing the hardware?

If you brainstorm, you'll find that there's a solution to most problems -one that lets you stay within your budget. The trick is to find the areas where improvements are needed, then follow through to complete the tasks as best you can.

Selling a Home? Pay Attention to Top Buyer Turn-Offs

1. Odors
   House odors are number one on the home selling uh-oh list. And narrowing it down, odors from cigarette smoke and pet's take top billing, with mildew not far behind.

   If you smoke indoors--it smells. I'm sorry, but it's true. If you have pets, the house might smell--even if you don't notice it. Ask someone who doesn't live there to take a sniff (and don't get angry when they tell you the truth).

2. Dogs that Meet You at the Door or in the Driveway
   Dogs frighten some people and irritate others. You'll have a much better response from showings if you control your pets--dogs, cats, whatever.

   You say you plan to put them in a bedroom or garage and then ask people not to open the door to that area? Bad idea. Would you buy a house you can't inspect? Of course not.

   Remove pets during showings if possible. If you can't, contain them in crates for their own safety and to show respect for the feelings of potential buyers.

3. Dirty Bathrooms
   Grimy bathrooms are an instant turnoff. Scrub them, paint them, buy a new shower curtain, rugs and towels--do what it takes to make them shine. If you're serious about selling the home, the extra work will make the task much, much easier.
4. Dimly Lit Rooms
   Dark homes are a turnoff to most home buyers. Here are some potential fixes:
   1. Replace dim light fixtures
   2. Install additional light fixtures
   3. Install (quality) sun tunnels or skylights
   4. Remove heavy drapes to let the light stream in
   5. Repaint some rooms with colors that reflect light
   6. Trim tree limbs that shadow the house

   While you're at it, clean the windows, inside and out. If you can, replace any insulated windows that have broken seals (you'll see fog within the windows that cannot be removed). Dirty and fogged windows are another buyer turnoff.

5. A House Full of Busy Wallpaper
   This is another critical issue to think about if you're selling a home, because busy wallpaper in every room turns off most buyers, and even people who love wallpaper rarely like what you've chosen. It's a personal decorative touch that they want to select themselves.

   It's the masses you must appeal to when you're selling a home, so take a hard look at your wallpaper and decide if it should be removed and replaced with paint. Don't paint over it, because that usually enhances every seam and looks terrible.

6. Damp Basements
   Any dampness (or damp smells) in the basement throw up a red flag to buyers that the basement leaks! Even if it doesn't truly leak.

   If you have leaks, fix them. No leaks? Look for drainage issues. Maybe water is pooling around the foundation, keeping it damp. Most problems we see are caused by rainwater that's being diverted towards the foundation instead of away from it.

   • Underground drains might be blocked.
   • Downspouts could be aimed the wrong way.

   Go outside the next time it rains and take a look.

7. Bugs
   Roaches, spiders, any type of insect that shouldn't be in the house. Get rid of them.
8. Poor Curb Appeal
   You must grab their interest from the curb if you want to sell the home for top dollar. Buyers often refuse to go into a house with an unkempt yard, sagging doors or peeling paint. You say you can't afford to paint? Okay, but get that yard in tip-top shape and grab a screwdriver to fix those doors.
9. Gutters with Plants Growing in Them
   I'm serious. Some people never clean their gutters, and it always makes buyers wonder what else hasn't been handled.

   Remember the drainage issue in #6? Cleaning packed gutters might help.

10. Sellers Who Hang Around for Showings
    Yes, you... leave the house during showings. Home buyers feel awkward about opening closet doors and lingering for a really good look at the house if the seller is there.

    If you're selling by owner, give them some space, don't hover.

    Parting Words
    Most of the Top 10 problems are home selling issues you can correct without spending a lot of money. Do it now, before you put the house on the market, because if your house develops a reputation among agents as the house that smells, the house with the huge barking dog or the house where the owner won't leave people alone it will be too late. Your house will be last on their list to show potential buyers.