Asking Buyers to Keep My Home Clean

Dear Dave,
This might seem like a trivial question but I really need your opinion. We have our home listed and with all of wet/winter weather we’ve been having I am really frustrated trying to keep our floors clean. Is it offensive to ask potential buyers to remove their shoes or wear booties when they look at our house? I don’t want to turn people away because of the annoyance of having to remove shoes or boots, but I don’t want my floors to look messy – or get stained!
 

Janet – Grand Junction, CO

Janet,
Do not hesitate to request buyers remove their shoes or put on booties that you provide when they enter.  This is not a turn off and any buyer who would be turned off by having to remove their shoes or put on booties…. Let them leave.

Removing shoes or wearing booties is common courtesy and that should be the end of the discussion, unless they are willing to follow themselves back out the door with a mop in hand! Don’t worry about that at all, just have your agent get you a basket and booties or place a “please remove shoes” sign on the door or right where they walk in.  Provide a place to sit down then they are removing their shoes and that should be near the end of your problems.  I say near, as there will be some that won’t comply, but the vast majority will make sure to respect your wishes and your home!  Stress no more and happy selling!

Dave Kimbrough
The Kimbrough Team

Updating Before We Sell?

Dear Dave,
We’re doing some updating on our home this spring and need some advice.

Our home was built in the mid 90’s and has a lot of carpet throughout. We’re considering selling after we do the updates, but who knows, we might really like the new look and decide to stay! Our question is, would tearing out the carpet in the main living spaces and installing hardwood be a good upgrade? Or, is there another material that you think would be better?
We would appreciate your opinion! Thank you –

Dan – Fruita, CO

Dan,
My bet is you love the new look and decide to stay… at least for a while!  Doing some updates will definitely give the home a wonderful fresh feel and probably prove very appealing to you and to prospective buyers.  Hardwood floors are a huge upgrade and very desirable to virtually any buyer.  The big question is not if buyers will prefer them, but how much will they cost and will you get the money back out of it. I would generally say that you will get most of your investment back from installing hardwood floors, especially if you subtract the cost of new carpet and pad from the cost and see what the difference is. 

You might consider some of the higher end engineered hardwood products, as well as real wood.  We use and suggest these products often with very good results.  They wear like iron, have a very natural look and can be a bit more cost effective and still have the feel and sound of solid hard wood floors.  Just don’t go cheap, because every buyer will know when you go cheap and they will no doubt notice.  When possible, I recommend hardwood floors for higher resale value.  Good luck.

Dave Kimbrough
The Kimbrough Team
 

Home Warranties

Dear Dave,
We are looking to buy a house and have narrowed it down to some of the older neighborhoods and older homes.  One of the houses we looked at included a 1 year home warranty.  We decided that house wasn’t right for us - but we did like the idea of the home warranty.  What do you think of home warranties - are they worth it or not?
Thanks for the help,

Rich and Lydia - Delta, CO

Rich and Lydia,

How exciting!  It is always so much fun house hunting for that special new home, that’s one reason I love my job so much.   Moving on to your question about warranties…. I have changed my stance on warranties over the past couple years.  I used to think they were not worth the money and I still have some reservations, however recently I have become more informed and now believe they can be a valuable asset to some home purchase.   

They can prove useful on any home that has problems after close, but the real benefit does come with an older home where age has run its course and items like appliances, heating or cooling systems, roofs, hot water heaters are nearing the end of their anticipated lifespan.  It is not unheard of for one or two of these things to fail within a year or two of closing.  If you purchased a home warranty you will love the fact that all you may have to pay is the deductible.  Trust me, nobody wants to move in and have to replace a furnace that fails 3 months after close.   You can often times sign up for them year after year so you can maintain the coverage benefits for several years after you close.   Bottom line, it is nice to have some peace of mind that you will receive some financial help if something fails.  On older homes, they are worth it.

Dave Kimbrough
The Kimbrough Team

Getting Ready to Sell

Dear Dave,
We are getting ready to list our home this spring.  We have been getting it all cleaned up and show ready.  We have a dog door that leads from our laundry room out into the backyard.  Our question for you is this – do we leave it or remove it and repair the hole that is left?  Do people not buy a house because there is a dog door or is it a good selling point? 

Help!  Just not sure what to do about this. 
Thanks -
Barbara – Grand Junction, CO
 

Barbara,
Please call me when you decide to sell!  If you are perseverating about a dog door, your home is going to show wonderfully.  I am confident it will show like a dream.  All kidding aside, don’t even concern yourself with such a small item.  Many will find it a value add and if they don’t, offer to have it removed and covered for the new owner.   Trust me, you are ready for the market.  Sit back, take a deep breath and enjoy a few weeks of calm before you hit the market!  Happy selling.

Dave Kimbrough
The Kimbrough Team

How Much is Enough to Put Down to Buy a Home

Dear Dave,
We are looking to buy a home this year and have been saving our money and paying down our debt over the past couple of years so we can put as much of a down payment as possible. We have great credit, but recently ran into some unexpected expenses and our savings account has dwindled down. My wife and I are not buying more than we can afford, but we may not have 20% to put down this year. What are your thoughts on how much is enough to put down to buy a home or should we just wait till we have the 20% down?

Thanks-
Joe and Rebecca – Grand Junction
 

Joe and Rebecca,
This is a common question in today’s environment, but the answer is not cut and dry.  I was speaking with a friend of mine, James Pulsipher at Fidelity Mortgage, and he was commenting on what a rare cycle we are currently in.  He has seen 5 market cycles in his 20+ years working in the mortgage industry and this cycle we are currently in is unique. “Typically when rates are down, prices are up or while rates are up, prices are down, but right now we have very low rates and very affordable prices and this kind of market cycle is very unique.”   So how does this unique point in time relate to the question?

Taking this unique situation into account, my recommendation would be to gather the available funds you have and purchase before one of these, or both, market conditions change.  Check with your mortgage lender of choice, but there are some wonderful conventional loan products that are flexible with the amount of down payment and a new product recently introduced that is as little as 3% down for a loan amount of up to $417,000 and certainly very attractive loans in the 5,10 and 15% down categories.  My thoughts are this, if you have indeed been as responsible with your finances as it appears, you will likely have the discipline to continue good financial practices after you make your purchase.  As long as you can comfortably afford your monthly payment and lowering your down payment does not put you under any significant stress from a payment prospective then my recommendation would be to make the move while all market indicators are working in your favor.

Realistically, if you are purchasing a $300,000 home (for instance) and your down payment is 10% instead of 20%, your monthly payment will only increase approximately $140 at a 4% interest rate.  If this puts your monthly family cash flow under ANY duress, then wait.  If that increase does not have a “real” impact on your monthly payment, then move forward and try to capitalize on a market that is providing low rates with affordable and stable prices.

Great question and my guess is, when you look back on your decision you will be good with whichever route you take.  The outcomes of your decisions are what you make of them, not what they make of you! Best of luck in your house hunting.

Dave Kimbrough

The Kimbrough Team