Understanding how appraisals work will help you achieve a quick and profitable refinance or sale.

1. An appraisal isn’t an exact science

When appraisers evaluate a home’s value, they’re giving their best opinion based on how the home’s features stack up against those of similar homes recently sold nearby. One appraiser may factor in a recent sale, but another may consider that sale too long ago, or the home too different, or too far away to be a fair comparison. The result can be differences in the values two separate appraisers set for your home.

2. Appraisals have different purposes

If the appraisal is being used by a lender giving a loan on the home, the appraised value will be the lower of market value (what it would sell for on the open market today) and the price you paid for the house if you recently bought it.

An appraisal being used to figure out how much to insure your home for or to determine your property taxes may rely on other factors and arrive at different values. For example, though an appraisal for a home loan evaluates today’s market value, an appraisal for insurance purposes calculates what it would cost to rebuild your home at today’s building material and labor rates, which can result in two different numbers.

Appraisals are also different from CMAs, or competitive market analyses. In a CMA, a real estate agent relies on market expertise to estimate how much your home will sell for in a specific time period. The price your home will sell for in 30 days may be different than the price your home will sell for in 120 days. Because real estate agents don’t follow the rules appraisers do, there can be variations between CMAs and appraisals on the same home.

3. An appraisal is a snapshot

Home prices shift, and appraised values will shift with those market changes. Your home may be appraised at $150,000 today, but in two months when you refinance or list it for sale, the appraised value could be lower or higher depending on how your market has performed.

4. Appraisals don’t factor in your personal issues

You may have a reason you must sell immediately, such as a job loss or transfer, which can affect the amount of money you’ll accept to complete the transaction in your time frame. An appraisal doesn’t consider those personal factors.

5. You can ask for a second opinion

If your home appraisal comes back at a value you believe is too low, you can request that a second appraisal be performed by a different appraiser. You, or potential buyers, if they’ve requested the appraisal, will have to pay for the second appraisal. But it may be worth it to keep the sale from collapsing from a faulty appraisal. On the other hand, the appraisal may be accurate, and it may be a sign that you need to adjust your pricing or the size of the loan you’re refinancing.

By: G. M. Filisko

Wild birds are our backyard buddies: A swallow can eat a thousand mosquitoes daily; and watching birds glide and listening to their songs can soothe our jangled nerves.

“Connection to the natural world is important to maintaining mental health and stability,” says David Bonter, a bird expert at the Cornell Lab of Ornithology. “We evolved being connected to nature.”

Nature, shmature — feeding, housing, and bathing birds year-round is expensive. Bonter shells out $27 each week for a 50-pound sack of black oil sunflower seeds, the best food for wild birds that visit his upstate New York home.

Bonter’s costs are typical. I spend at least $40 monthly — nearly $500 per year — on birdseed to stock two feeders that hang outside my kitchen window. And I recently paid $30 for a special bluebird house, which a couple of sparrows quickly commandeered.

Want to feed, house, and provide a cool bath for birds without going broke? Bonter provides some tips.

Raid your pantry
You’d be surprised how much bird food you already have stashed in your pantry.

Stale bread and crackers, peanuts (raw, roasted, shelled — but not salted), and oatmeal provide a good bird nosh.
Robins, orioles, bluebirds, and cedar waxwings will eat cut up fruit, such as oranges, placed on a platform covered by a roof to keep out rodents.
Woodpeckers and nuthatches will lick peanut butter off tree bark.
Beef fat is a powerful nutrient for birds in winter. When temperatures drop below 50 degrees, ask your butcher for a hunk of beef suet, and hang it from a wire cage you easily can find at hardware stores and online. If you eat bacon, chill the grease and mix it with nuts and seeds, then hang it in a cage.
Avoid salty and highly processed food; it’s no better for the birds than it is for us.
Don’t waste money on shelled sunflower seeds. Birds are accustomed to cracking shells in the wild and will happily do it at your feeder.
Water’s almost free
Water in birdbaths and fountains attracts birds that don’t eat seed, like robins.

“Any bird will come to a birdbath,” Bonter says. “I’ve seen hawks in a birdbath.”

If you want to attract more birds, make the water ripple with a solar water wiggler ($40). These hand-sized agitators make the birdbath look more like a natural water source and discourage mosquito eggs from hatching.

Clean and fill the birdbath daily with a garden hose.

Grow your own bird homes
Birds don’t need to nest at the Ritz. They’ll happily reside in a nesting gourd (sometimes called a bottle gourd) you can grow yourself.

I’ve harvested six nesting gourds from a couple of gourd vines. You can get fancy and paint and varnish them. But I just let them dry on the vine (I don’t usually get around to picking them until October), drill an entrance hole, and hang them from the porch light next to my kitchen.

Nesting gourds are harder to clean than other bird homes. So I either pick out the old nests in winter, or throw them away and grow new ones when the weather warms.

I get three or four nesting families each spring and summer. Nothing warms my heart like watching Mom and Dad feed their hungry chicks.

By: Lisa Kaplan Gordon

Before you put your home up for sale, use the right comparable sales to find the perfect price.

Knowing how much homes similar to yours, called comparable sales (or in real estate lingo, comps), sold for gives you the best idea of the current estimated value of your home. The trick is finding sales that closely match yours.

What makes a good comparable sale?

Your best comparable sale is the same model as your house in the same subdivision—and it closed escrow last week. If you can’t find that, here are other factors that count:

Location: The closer to your house the better, but don’t just use any comparable sale within a mile radius. A good comparable sale is a house in your neighborhood, your subdivision, on the same type of street as your house, and in your school district.

Home type: Try to find comparable sales that are like your home in style, construction material, square footage, number of bedrooms and baths, basement (having one and whether it’s finished), finishes, and yard size.

Amenities and upgrades: Is the kitchen new? Does the comparable sale house have full A/C? Is there crown molding, a deck, or a pool? Does your community have the same amenities (pool, workout room, walking trails, etc.) and homeowners association fees?

Date of sale: You may want to use a comparable sale from two years ago when the market was high, but that won’t fly. Most buyers use government-guaranteed mortgages, and those lending programs say comparable sales can be no older than 90 days.

Sales sweeteners: Did the comparable-sale sellers give the buyers downpayment assistance, closing costs, or a free television? You have to reduce the value of any comparable sale to account for any deal sweeteners.

Agents can help adjust price based on insider insights

Even if you live in a subdivision, your home will always be different from your neighbors’. Evaluating those differences—like the fact that your home has one more bedroom than the comparables or a basement office—is one of the ways real estate agents add value.

An active agent has been inside a lot of homes in your neighborhood and knows all sorts of details about comparable sales. She has read the comments the selling agent put into the MLS, seen the ugly wallpaper, and heard what other REALTORS®, lenders, closing agents, and appraisers said about the comparable sale.

More ways to pick a home listing price

If you’re still having trouble picking out a listing price for your home, look at the current competition. Ask your real estate agent to be honest about your home and the other homes on the market (and then listen to her without taking the criticism personally).

Next, put your comparable sales into two piles: more expensive and less expensive. What makes your home more valuable than the cheaper comparable sales and less valuable than the pricier comparable sales?

Are foreclosures and short sales comparables?

If one or more of your comparable sales was a foreclosed home or a short sale (a home that sold for less money than the owners owed on the mortgage), ask your real estate agent how to treat those comps.

A foreclosed home is usually in poor condition because owners who can’t pay their mortgage can’t afford to pay for upkeep. Your home is in great shape, so the foreclosure should be priced lower than your home.

Short sales are typically in good condition, although they are still distressed sales. The owners usually have to sell because they’re divorcing, or their employer is moving them to Kansas.

How much short sales are discounted from their market value varies among local markets. The average short-sale home in Omaha in recent years was discounted by 8.5%, according to a University of Nebraska at Omaha study. In suburban Washington, D.C., sellers typically discount short-sale homes by 3% to 5% to get them quickly sold, real estate agents report. In other markets, sellers price short sales the same as other homes in the neighborhood.

So you have to rely on your REALTOR’s® knowledge of the local market to use a short sale as a comparable sale.

By: Carl Vogel

Home improvement trends embrace energy efficiency, low maintenance exteriors, and double-duty space.

Trend #1: Maintenance-free siding

We continue to choose maintenance-free siding that lives as long as we do, but with a lot less upkeep. But more and more we’re opting for fiber-cement siding, one of the fastest-growing segments of the siding market. It’s a combination of cement, sand, and cellulosic fibers that looks like wood but won’t rot, combust, or succumb to termites and other wood-boring insects.

At $5 to $9 per sq. ft., installed, fiber-cement siding is more expensive than paint-grade wood, vinyl, and aluminum siding. It returns 80% of investment, the highest return of any upscale project on Remodeling magazine’s latest Cost vs. Value Report.

Maintenance is limited to a cleaning and some caulking each spring. Repaint every 7 to 15 years. Wood requires repainting every 4 to 7 years.

Trend #2: Convertible spaces

Forget “museum rooms” we use twice a year (dining rooms and living rooms) and embrace convertible spaces that change with our whims.

Foldaway walls turn a private study into an easy-flow party space. Walls can consist offancy, glass panels ($600 to $1,600 per linear ft., depending on the system); or they can be simple vinyl-covered accordions  ($1,230 for 7 ft. by 10 ft.). PortablePartions.com sells walls on wheels ($775 for approximately 7 ft. by 7 ft.).

A Murphy bed pulls down from an armoire-looking wall unit and turns any room into a guest room. Prices, including installation and cabinetry, range from $2,000 (twin with main cabinet) to more than $5,000 (California king with main and side units). Just search online for sellers.

And don’t forget area rugs that easily define, and redefine, open spaces.

Trend #3: A laundry room of your own

Humankind advanced when the laundry room arose from the basement to a louvered closet on the second floor where clothes live. Now, we’re taking another step forward by granting washday a room of its own.

If you’re thinking of remodeling, turn a mudroom or extra bedroom into a dedicatedlaundry room big enough to house the washer and dryer, hang hand-washables, and store bulk boxes of detergent.

Look for spaces that already have plumbing hookups or are adjacent to rooms with running water to save on plumbing costs.

Trend #4: Souped-up kitchens

Although houses are trending smaller, kitchens are getting bigger, according to theAmerican Institute of Architects’ Home Design Trends Survey.

Kitchen remodels open the space, perhaps incorporating lonely dining rooms, and feature recycling centers, large pantries, and recharging stations.

Oversized and high-priced commercial appliances—did we ever fire up six burners at once?—are yielding to family-sized, mid-range models that recover at least one cabinet forstorage.

Since the entire family now helps prepare dinner (in your dreams), double prep sinks have evolved into dual-prep islands with lots of counter space and pull-out drawers.

Trend #5: Energy diets

We’re wrestling with an energy disorder: We’re binging on electronics—cell phones, iPads, Blackberries, laptops–then crash dieting by installing LED fixtures and turning the thermostat to 68 degrees.

Are we ahead of the energy game? Only the energy monitors and meters know for sure.

These new tracking devices can gauge electricity usage of individual electronics ($20 to $30) or monitor whole house energy ($100 to $250). The TED 5000 Energy Monitor ($240) supplies real-time feedback that you can view remotely and graph by the second, minute, hour, day, and month.

Trend #6: Love that storage

As we bow to the new god of declutter, storage has become the holy grail.

We’re not talking about more baskets we can trip over in the night; we’re imagining and discovering built-in storage in unlikely spaces–under stairs, over doors, beneath floors.

Under-appreciated nooks that once displayed antique desks are growing into built-ins for books and collections. Slap on some doors, and you can hide office supplies and buckets of Legos.

Giant master suites, with floor space to land a 747, are being divided to conquer clutter with more walk-in closets.

Trend #7: Home offices come out of the closet

Flexible work schedules, mobile communications, and entrepreneurial zeal are relocating us from the office downtown to home.

Laptops and wireless connections let us telecommute from anywhere in the house, but we still want a dedicated space (preferably with a door) for files, supplies, and printers.

Spare bedrooms are becoming home offices and family room niches are morphing into working nooks. After a weekend of de-cluttering, basements and attics are reborn as work centers.

By: Lisa Kaplan Gordon

Do you need to wear waders to mow your grass? If seasonal flooding makes your property more lake than lawn, which isn’t doing your foundation any favors, you need some serious drainage. Good news: You can do it yourself — if you’re up for the digging.

Where I live, in the Pacific Northwest, the last few springs have been some of the soggiest on record — and in the Northwest, that’s really saying something. Around April, my side yard turns into my own private Everglades, complete with frogs.

Finally, I decided to do something about it. Enlisting the help of a friend (I owe him big-time) and my son, Nick, (strong backs are required), I set out to dig a French drain, and along the way save some bucks by doing it myself.

A French drain is simply a plastic drain line embedded in a gravel-filled ditch. Surplus ground water enters the pipe, and gravity whisks it away, either to a drier spot in your yard, to a storm drain system, or out into the street.

Sound simple? It is — except for the digging. Here’s what I learned about putting in a 50-foot-long French drain:

• Tell everyone it’ll take three days. You’ll probably finish in two, which sort of makes up for the back-breaking work.

• Schedule the job for when the ground is moist but not saturated. Wet dirt clogs everything up; really dry dirt is tough to dig.

• Dig smart and safe. Call 811, the “dig safely” hotline, to mark underground utilities before you start.

• Rent a trenching tool (about $125 to $200 per day). This gas-powered digger resembles a big rototiller, and it’ll do a lot of the digging for you. But heads up: It’s heavy, and you’ll need three people just to wrestle it on and off a truck. Ask if your rental company delivers and picks up.

• Lay big pieces of scrap plywood next to your ditch line, and let the trenching tool throw the excavated dirt onto the plywood. This makes it about one thousand times easier to deal with the dirt afterward. You’re going to have to put it somewhere because you’ll fill in the trench with gravel. A raised flower bed is great.

• Note that even with the trenching tool, you’ll still have to shovel a lot of dirt and gravel. A couple of shovels and two wheelbarrows make the work go a lot faster.

All in all, this was one of the most labor-intensive jobs I’ve done. Was it worth it? I figure I saved about $1,000 over the cost of a pro, minus those two beers I served my buddy.

By: John Riha

You can buy a home at a significant discount at a foreclosure auction, but you’ll face a host of challenges. Don’t get burned; be solutions-ready.

If you want to get a good deal at a foreclosure auction, know what you’re buying and how you’ll be expected to pay for it.

Start by understanding the foreclosure auction rules for your area. State and local governments set their own rules for such factors as:

• Bidding process

• Amount of deposit

• Where the auction is held

• Whether the home owners can get their properties back after the sale

You can learn about the process in your area by talking to officials at your county tax department or to a REALTOR®.

Although foreclosure auctions follow local rules, there are some universal challenges you’ll face no matter where you shop for foreclosed properties. Here’s how to solve them.

Solutions to 6 common foreclosure auction challenges

1. Challenge: Getting reliable information about foreclosure sales. Many companies charge fees to send you lists of foreclosures that may not be current, or sell expensive foreclosure-buying “systems” that promise to teach you how to make millions in real estate.

Solution: Most foreclosure sales are still announced in local newspapers. And you can get accurate information about buying foreclosures from reliable book publishers:

Foreclosure Investing For Dummies (For Dummies, 2007)

Keys To Buying Foreclosed and Bargain Homes (Barron’s Educational Series, 2008)

2. Challenge: You can’t get inside the property before the auction to inspect it forstructural problems and repairs. Many foreclosure auction properties are in bad shape because the owners couldn’t afford the upkeep. And sometimes angry home owners purposely damage the property to punish the foreclosing lender.

Solution: Walk around the home to check its exterior condition. If it’s vacant, look through the windows. Ask the neighbors what they know about the property. If it was a rental, check the inspection records on file with the local government.

You can safely assume there’s something wrong with any house sold at a foreclosure auction, so cover yourself by bidding no more than 70% of the home’s market value.

3. Challenge: You need to figure out the market value of the house to prepare your bid. Some foreclosure auction announcements include information about the size of the original mortgage. That’s not how much the house is worth or even what the owners owe now. If the current owners bought at the top of the market, their mortgage may be more than the home is worth in today’s market and they could owe even more if there’s a second mortgage on the house.

Solution: Commission your real estate agent to do a broker’s price opinion (BPO) on the home you want to bid on. The BPO will show you comparable sales, telling you what similar, nearby homes that weren’t foreclosure sales have recently sold for.

Bid well below those comparable sales to leave yourself room to pay for repairs and unexpected problems. Ask the agency that runs the auction how to find winning bid amounts from recent auctions. Use that information to guide your current bid, too. A look at local tax and assessment records will tell you more about previous and current auction properties, like square footage and lot size.

4. Challenge: You don’t know if there are liens on the home. Some auctions don’t give you clean title to the property, meaning liens from the federal government or other entities may not be removed during the foreclosure auction process. You’d have to pay off those liens if you won the property.

Solution: Focus your efforts on two or three homes in desirable locations. To find out about any liens, pay a real estate attorney to run a title search on each property and issue a commitment to insure the title after purchase. Ask how the policy treats liens filed between the time of the search and the time you close.

A less-expensive option: Hire an independent title search professional called an abstracteror an online company. Both search options should be under $200, title insurance costs vary by state.

5. Challenge: You have to pay cash and pay it quickly. Most auctions require bidders to come up with the full purchase price in cash within 30 days.

Solution: Don’t count on getting a mortgage that fast. Look for other sources of cash that make financial sense for you.

• Take out a home equity line of credit or do a cash-out refinance.

• Tap retirement accounts, provided it makes sense for you from a tax perspective.

• Work with other investors to fund a partnership to invest in foreclosed homes.

6. Challenge: You’re in love with a house that you’re aware is headed to foreclosure, but you’re afraid to bid on it at the foreclosure auction because you know nothing about the process.

Solution #1: Contact the owners and offer to purchase the home as a short sale. That’s where the bank agrees to let the owners sell for less than what they owe on the mortgage.

Solution #2: You may be able to buy the house after the foreclosure sale. Foreclosure sales are run by a government agency (often the sheriff), which collects the money from the highest bidder and gives it to the bank to pay off the mortgage.

Banks will often bid at the sale to make sure someone doesn’t pay less than the house is worth (translation: not giving the bank enough money to satisfy the mortgage).

If the bank is the high bidder, it’ll take title to the house and put it up for sale. Then, buying the home is just like buying any other house. You can buy an owner’s title insurance policy so you know the house is free of liens; you can get a home inspection to check for needed repairs; and you’ll have plenty of time to line up your financing.

A real estate agent can alert you the day the bank puts the home on the market, so you can submit your purchase offer.

Since the bank pays the real estate agent’s fees, you likely won’t pay more than you’d have bid at the foreclosure auction to outbid the bank, and you’ll avoid most of the risks and unknowns of buying at the auction.

By: Marcia Jedd

If you have big dreams for a vegetable garden, but only a little space, plant intensively — a cheek-by-jowl, double-digging growing technique that yields two to six times the harvest of traditional vegetable gardens.

Instead of loosening 4 to 6 inches of garden soil, intensive gardeners dig 12 inches down and loosen 12 inches more with a garden fork. This double digging allows roots to grow down, rather than out. Add a healthy dose of compost and grow your soil while you grow enough carrots to fill a root cellar — if you have a root cellar.

“You’re working with the life forces,” says John Jeavons, author of How to Grow More Vegetables (and Fruits, Nuts, Berries, Grains, and Other Crops) Than You Ever Thought Possible on Less Land Than You Can Imagine. “When you grow life into your soil, it puts life into your food. And the good nutrition in food puts life into you.”

Intensive gardens feature beds that are 4 to 5 feet wide and infinitely long. They replace traditional space-wasting rows with a planting pattern that looks like the five on a die. This method boosts harvests and surrenders less space to weeds.

Jeavons says the intensive gardener can raise a year’s worth of vegetables — 322 pounds per person — in just 200 square feet. The norm is half to one-sixth of that. Double digging is the secret — and the rub.

Compared with traditional bed preparation, double digging requires twice the time and provokes twice the back spasms. But that’s only if you don’t know Jeavons’ digging dance, which uses body weight, gravity, and rhythm to propel garden spades through more beds in less time.

“Did you hear me panting?” asks the 69-year-old gardener, who was double digging in his Willits, Calif., garden while chatting on the phone. In fact, I only heard a spade slicing through soil.

“After you dig one of these beds, you’ll have more energy than when you started,” he says.

More intensive gardening tips

• Intensive planting depends on souped-up soil. Grow your soil with compost and an organic fertilizer, such as alfalfa meal. Dig in the organics when you plant.

• If the digging is too tough, you can raise beds up with stackable wood frames and pour a foot of topsoil on top of the foot you’ve loosened. Whether you dig down or build up, you need about 2 feet of loose soil to plant intensively.

• Perform a soil test before planting: It can save you five years of hit-and-miss planting. Your local cooperative extension can provide test kits and results for less than $20.

• Plant parsley and let it go to seed. It provides pollen for beneficial insects, which eat harmful insects.

• If you love beets, plant cylindra beets, a special variety that grows twice as long as regular beets.

By: Lisa Kaplan Gordon

Your outdoor entertainment area can become a horror show in summer. Heat, sun, bugs, and noisy/nosy neighbors can drive you inside when you should be watching fireflies from your patio or deck.
So this week we’re showing you how to take back the outside this summer. First up: How to beat the heat.

Flagstone patios trap summer sun, so suddenly you and a pepperoni pizza have something in common. Decks become sweatboxes in high humidity—good for losing weight, bad for sipping chilled wine.

Misters are the best way to drop the temperature and raise your comfort level. They spray a fine mist into the air, which evaporates and cools the surrounding air.

The less expensive misting kits ($60) operate on city water pressure, about 50 psi. The mist tends to fall from nozzles, sometimes wetting whatever’s underneath.

High-price misting kits ($1,200 to $3,200) use a pump to send water through nozzles at 1,000 psi, which creates a finer mist that evaporates faster.

“Low pressure misters cool by wetting people,” says Dave Paul, owner of Misting Pros in Sacramento, Calif., which sells higher-end misters. “We cool by evaporating water into the air.”

Hey, cool is cool. Here’s a look at misters for every budget.

• EZ Mister Patio Mister Kits: Kits contain from 10 to 16 brass and stainless steel nozzles that cover 20 to 32 linear feet. Tubing comes as a roll, not precut, so you can customize your misting system. Hang it from the roof or along the edge of awnings. It attaches to an outdoor spigot or indoor sink faucet. (Cost: $58 to $112).

• Portable Misting Tower (Sky Mall): This T-bar tower has a 360-degree adjustable misting bar that can handle 1,000 PSI (if you’ve got that much pressure coming through your hose, which you probably don’t). The portable unit can grow to 7 feet tall and has a shut-off valve, which reduces trips to the spigot. (Cost: $89.99)

• Poly Fan Misting Ring: An economical way to turn any fan into a misting fan. Attach the ring to fans 8 to 18 inches in diameter. (Cost: $9.99 for 1 nozzle; $19 for 2 nozzles; $39 for 3 nozzles).

• Fogco 50 Foot Professional Pulley Drive Misting System Kit: Top-of-the-line, spare-no-expense misting system that includes a pulley-operated pump, which promises to run cooler, quieter, and longer than most pumps. (Cost: $3,179)

• And for a no-purchase alternative that only costs pennies, you can hose down your patio or deck to cool things off.

By doing your homework before you buy, you’ll feel more content about your new home.

1. Decide how much home you can afford

Generally, you can afford a home priced 2 to 3 times your gross income. Remember to consider costs every homeowner must cover: property taxes, insurance, maintenance, utilities, and community association fees, if applicable, as well as costs specific to your family, such as day care if you plan to have children.

2. Develop your home wish list

Be honest about which features you must have and which you’d like to have. Handicap accessibility for an aging parent or special needs child is a must. Granite countertops and stainless steel appliances are in the bonus category. Come up with your top-five must-haves and top-five wants to help you focus your search and make a logical, rather than emotional, choice when home shopping.

3. Select where you want to live

Make a list of your top-five community priorities, such as commute time, schools, and recreational facilities. Ask your REALTOR® to help you identify three to four target neighborhoods based on your priorities.

4. Start saving

Have you saved enough money to qualify for a mortgage and cover your downpayment? Ideally, you should have 20% of the purchase price set aside for a downpayment, but some lenders allow as little as 5% down. A small downpayment preserves your savings for emergencies.

However, the lower your downpayment, the higher the loan amount you’ll need to qualify for, and if you still qualify, the higher your monthly payment. Your downpayment size can also influence your interest rate and the type of loan you can get.

Finally, if your downpayment is less than 20%, you’ll be required to purchase private mortgage insurance. Depending on the size of your loan, PMI can add hundreds to your monthly payment. Check with your state and local government for mortgage and downpayment assistance programs for first-time buyers.

5. Ask about all the costs before you sign

A downpayment is just one homebuying cost. Your REALTOR® can tell you what other costs buyers commonly pay in your area—including home inspections, attorneys’ fees, and transfer fees of 2% to 7% of the home price. Tally up the extras you’ll also want to buy after you move-in, such as window coverings and patio furniture for your new yard.

6. Get your credit in order

A credit report details your borrowing history, including any late payments and bad debts, and typically includes a credit score. Lenders lean heavily on your credit report and credit score in determining whether, how much, and at what interest rate to lend for a home. Most require a minimum credit score of 620 for a home mortgage.

You’re entitled to free copies of your credit reports annually from the major credit bureaus:Equifax, Experian, and TransUnion. Order and then pore over them to ensure the information is accurate, and try to correct any errors before you buy. If your credit score isn’t up to snuff, the easiest ways to improve it are to pay every bill on time and pay down high credit card debt.

7. Get prequalified

Meet with a lender to get a prequalification letter that says how much house you’re qualified to buy. Start gathering the paperwork your lender says it needs. Most want to see W-2 forms verifying your employment and income, copies of pay stubs, and two to four months of banking statements.

If you’re self-employed, you’ll need your current profit and loss statement, a current balance sheet, and personal and business income tax returns for the previous two years.

Consider your financing options. The longer the loan, the smaller your monthly payment. Fixed-rate mortgages offer payment certainty; an adjustable-rate mortgage offers a lower monthly payment. However, an adjustable-rate mortgage may adjust dramatically. Be sure to calculate your affordability at both the lowest and highest possible ARM rate.

By: G. M. Filisko

Working to get your home ship-shape for showings will increase its value and shorten your sales time.

1. Have a home inspection

Be proactive by arranging for a pre-sale home inspection. For $250 to $400, an inspector will warn you about troubles that could make potential buyers balk. Make repairs before putting your home on the market. In some states, you may have to disclose what the inspection turns up.

2. Get replacement estimates

If your home inspection uncovers necessary repairs you can’t fund, get estimates for the work. The figures will help buyers determine if they can afford the home and the repairs. Also hunt down warranties, guarantees, and user manuals for your furnace, washer and dryer, dishwasher, and any other items you expect to remain with the house.

3. Make minor repairs

Not every repair costs a bundle. Fix as many small problems—sticky doors, torn screens, cracked caulking, dripping faucets—as you can. These may seem trivial, but they’ll give buyers the impression your house isn’t well maintained.

4. Clear the clutter

Clear your kitchen counters of just about everything. Clean your closets by packing up little-used items like out-of-season clothes and old toys. Install closet organizers to maximize space. Put at least one-third of your furniture in storage, especially large pieces, such as entertainment centers and big televisions. Pack up family photos, knickknacks, and wall hangings to depersonalize your home. Store the items you’ve packed offsite or in boxes neatly arranged in your garage or basement.

5. Do a thorough cleaning

A clean house makes a strong first impression that your home has been well cared for. If you can afford it, consider hiring a cleaning service.

If not, wash windows and leave them open to air out your rooms. Clean carpeting and drapes to eliminate cooking odors, smoke, and pet smells. Wash light fixtures and baseboards, mop and wax floors, and give your stove and refrigerator a thorough once-over.

Pay attention to details, too. Wash fingerprints from light switch plates, clean inside the cabinets, and polish doorknobs. Don’t forget to clean your garage, too.

By: G. M. Filisko

If you want a yard that demands less time, money, and water, consider ground cover rather than a traditional lawn.

If you’re looking for an alternative, consider replacing some or all of your high-maintenance turf with ground covers that form walkable “carpets,” and innovative grasses that require little or no water or mowing once established.

In turn, you’ll reduce the need for irrigation, stop washing harmful chemicals into the watershed, add depth and texture to your landscape, and spend your spare time enjoying your yard instead of manicuring it.

Creeping perennials, clover, and other ground covers

There’s a ground cover to meet most needs, whether you’re planting a pathway, a hedge, or a broad swath of green. They run the gamut of foliage textures and colors, and many have wonderful flowers. Some varieties are ground-hugging and feel delicious under bare feet. Others grow up to two feet tall, making them ideal as barriers or landscape punctuation.

Look for attributes that meet your needs: child-durable, deer-resistant, drought-tolerant, shade-loving. Mixing them up is not only aesthetically pleasing, it’s also good for the landscape: Diversity increases resistance to pests and disease and reduces the need for fertilizer and pesticides. Here are some popular choices.

Creeping perennials: Tight to the ground, these plants are especially good for cushy green carpets. They keep out weeds and allow air, water, and nutrients to get to plant roots. Many work equally well in rock gardens or in crevices between stepping stones, in full or partial sun. These include mat-forming New Zealand Brass Buttons (Cotula squalida) and Scotch or Irish Moss (Sagina subulata), which isn’t a moss at all but a perennial that forms a cushiony blooming carpet.

Some, like Blue Star Creeper (Laurentia fluviatilis), which has tiny green foliage, bear up to heavy foot traffic. Creeping Jenny (Convolvulus arvensis) has an extensive root system that makes it quick to spread and tough to kill. That’s a good thing if you’re looking for a tough turf alternative but a problem if it creeps into beds where you don’t want it.

Besides being good creepers, many ground-hugging perennial herbs are often nicely scented, hardy under foot traffic, and even edible. These include chamomile (Chamaemelum nobile), which has fern-like foliage and white flowers with yellow centers; Corsican mint (Mentha requienii), which thrives in shade, exudes a minty smell when trod upon, and is edible; and various thymes (Woolly, Red, Prostrate), which feature dainty flowers and work well between pavers or as a low mounding carpet.

Creeping perennials cost $6 to $10 per plant. A 15-by-20-foot area with plants 2 inches apart (for instant density) requires 300 plants. But if you’re patient enough to wait a year or so for them to spread, you can buy fewer plants and space them 12 inches apart.

Clover: Although clover has gotten a bad rap as a weed, it’s actually not a weed at all. In fact, a clover lawn (or, for high-traffic areas, a clover-grass mix) has many advantages. Sweet-scented, inexpensive, and quite durable, white clover (Trifolium repens) grows in any kind of soil, stays green even during low-water periods, and feels lovely underfoot.

Low-growing clover doesn’t need regular cutting, nor does it need fertilizer, but an occasional mow will encourage new growth and discourage bees. If you don’t mind the bees, consider letting your clover bloom, which benefits the bees and the environment. Clover is one of the least expensive groundcover options, costing about $4 to seed 4,000 square feet. 

By: Laura Fisher Kaiser

Have a plan for reviewing purchase offers so you don’t let the best slip through your fingers. 

1. Understand the process

All offers are negotiable, as your agent will tell you. When you receive an offer, you can accept it, reject it, or respond by asking that terms be modified, which is called making a counteroffer.

2. Set baselines

Decide in advance what terms are most important to you. For instance, if price is most important, you may need to be flexible on your closing date. Or if you want certainty that the transaction won’t fall apart because the buyer can’t get a mortgage, require a prequalified or cash buyer.

3. Create an offer review process

If you think your home will receive multiple offers, work with your agent to establish a time frame during which buyers must submit offers. That gives your agent time to market your home to as many potential buyers as possible, and you time to review all the offers you receive.

4. Don’t take offers personally

Selling your home can be emotional. But it’s simply a business transaction, and you should treat it that way. If your agent tells you a buyer complained that your kitchen is horribly outdated, justifying a lowball offer, don’t be offended. Consider it a sign the buyer is interested and understand that those comments are a negotiating tactic. Negotiate in kind.

5. Review every term

Carefully evaluate all the terms of each offer. Price is important, but so are other terms. Is the buyer asking for property or fixtures—such as appliances, furniture, or window treatments—to be included in the sale that you plan to take with you?

Is the amount of earnest money the buyer proposes to deposit toward the downpayment sufficient? The lower the earnest money, the less painful it will be for the buyer to forfeit those funds by walking away from the purchase if problems arise.

Have the buyers attached a prequalification or pre-approval letter, which means they’ve already been approved for financing? Or does the offer include a financing or other contingency? If so, the buyers can walk away from the deal if they can’t get a mortgage, and they’ll take their earnest money back, too. Are you comfortable with that uncertainty?

Is the buyer asking you to make concessions, like covering some closing costs? Are you willing, and can you afford to do that? Does the buyer’s proposed closing date mesh with your timeline?

With each factor, ask yourself: Is this a deal breaker, or can I compromise to achieve my ultimate goal of closing the sale?

6. Be creative

If you’ve received an unacceptable offer through your agent, ask questions to determine what’s most important to the buyer and see if you can meet that need. You may learn the buyer has to move quickly. That may allow you to stand firm on price but offer to close quickly. The key to successfully negotiating the sale is to remain flexible.

By: G. M. Filisko