Ways To Get More Money From Your Home

The freefall in home prices may be over, but the buyers' market persists–there's stiff competition to get a house sold for a good price. In a competitive market sellers need to make every effort for their properties to appear more attractive so they sell for more.

Believe it or not, it's the simple touches–not the big renovations–that often matter the most. HomeGain surveyed 1,000 real estate agents last year to determine which home repairs offer the biggest rewards. After ranking for return on investment, the survey found that cleaning and de-cluttering–including removing personal possessions, polishing woodwork and glass and removing excess furniture–is the most important. Spending $100 to $200 tidying up can increase a home price by $1,500 to $2,000.

Certain renovations can also add value, but they don't have to be major overhauls. One simple suggestion would be to install a new front door. It's an inexpensive exterior improvement. Also consider replacing worn-out siding. New fiber-cement siding will generate the best return on investment, but vinyl siding will work for those with smaller budgets.

Pre-sale home inspections have gained traction in the down real estate market because sellers are trying anything and everything to outdo one another. With a heavy supply of houses on the resale market, a pre-sale inspection can provide extra assurance that there won't be any surprises after signing the sale contract.

Sellers needing to move quickly should remain focused on the basics, neutral paint jobs and replacing or cleaning carpets. That could be the difference between a signed contract and the for-sale sign remaining on the lawn.

Time Swapping Using Time Banks

Exchange your time for favors from others in a virtual time bank. Here's how it works:

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Struggling Refinance Program Extended

The Obama administration recently announced that borrowers with little or no equity in their homes will have yet another year to take advantage of a refinancing program that so far has made little progress.

The initiative, known as Home Affordable Refinance Program (HARP), was set to expire in June. But, so far, it has reached fewer than 200,000 of the up to 5 million borrowers federal regulators hoped it would help.

The program is aimed at the millions of borrowers whose home equity has been diminished by falling home prices, or who owe more than their homes are worth, making it impossible for them to take advantage of historically low mortgage rates. Originally the program targeted borrowers whose loan balances were slightly higher than their property's value. The program was later expanded to include borrowers who owe up to 25 percent more than their homes are worth.

These underwater borrowers are at greater risk of foreclosure, and the administration hoped that lowering their payments would decrease their chances of falling behind.

But the program ran into several problems. Many borrowers were too underwater to qualify and the program was limited to loans backed by Fannie Mae or Freddie Mac, the mortgage financing companies. The initiative was also dogged by delays as lenders struggled to update their computer systems to accommodate the program. Another obstacle was that many homeowners have second mortgages or private mortgage insurance, which can get in the way of refinancing a primary loan.

And for some borrowers, the costs associated with refinancing, such as closing costs, were not worth the lower interest rates, especially for homeowners worried they might lose their jobs or might hit another financial crunch later.

Taxes: Most Common Mistakes

With tax time here again, here are some of the most common mistakes people make while doing their taxes. Avoid these to save yourself money, and a possible audit.

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Passing Your Home Inspection

If you're getting ready to sell your home, do everything you can to get the house in good condition before you attempt to sell it, but don't be discouraged if the inspection report contains negative statements. Home inspectors make note of everything they see. No home is perfect.

Fix leaks and clogs before the home inspection takes place. The inspector will check water pressure by turning on multiple faucets and flushing toilets at the same time. Appliances such as dishwashers and clothes washers will be tested, too. Leaks and clogs will be apparent during these checks.

The home inspector might check the septic system (if you have one). During one method dyes are flushed down a toilet. The inspector waits to see if the dye surfaces on the drainfield, indicating a drainage problem.

The electrical panel and circuit breaker configuration should be adequate for the needs of the house. A 125 amp electrical panel works for most homes. Individual circuits should not be overloaded.

The inspector will look for receptacles with ground fault circuit interrupters (GFI) in bathrooms and kitchens. These receptacles have little test-reset buttons on them. The home inspector will likely make sure the receptacles are what they appear to be, and not "dummies" that aren't wired to work.

Some of the grounded receptacles (with 3-pronged plugs) will be checked too.

The inspector will check the heating and cooling systems, making sure they work he may add comments about their efficiency. The inspector will take a close look at the structure and foundation. All appliances will be checked. The inspection report will include details about smoke detectors.

Remember that the home inspection report is not a wish-list for buyers. Read your contract carefully–it probably states which systems should be in good working order at closing.

Your contract may also state that you are under no obligation to make any repairs at all–although the buyers can then likely withdraw from the contract. Don't feel you must comply with unreasonable demands for repairs.