The Internal Revenue Code allows qualifying persons an exclusion on the gain from their personal residence up to $500,000 for married tax payers filing a joint return and $250,000 for single return filers. This can be a source of cash for the individual to use for retirement, investing, or any purpose.

There is no limit to how many times a taxpayer can do this as long as the minimum use requirement is met. Homeowners have an option to trade up or trade down on a tax free basis.

Most homeowners don't take full advantage of all the adjustments in order to keep the gain as low as possible. If the truth were known, most people's records are so poor that when the time comes to recognize the gain, the calculations probably have to be based on estimates instead of actual numbers.

RULES FOR EXCLUSION

1) Effective date for sales of principal residence on or after May, 1997.

2) Ownership and use must have been the principal residence for two out of the five preceding years. There is a formula to provide partial exclusion for those who cannot satisfy the two year requirement.

3) Gain in excess of $500,000 or $250,000 amount is taxable at capital gains rate.

4) Exclusion does not apply to vacation or second home properties.

5) There is no requirement to rollover proceeds and reinvest them into another home.

For additional information, a taxpayer may refer to the IRS Publication or see their tax professional. Form 2119 must be filed with the taxpayer's regular income tax return in the year of the sale.

For more information, call Richard Morse, your real estate professional, at (800)946-3895.

Have you ever heard this? "If your loan is less than two years old, you shouldn't refinance now." Another frequently quoted but just as often incorrect statement is, "If the difference between the old rate & the new rate is less than 2%, you shouldn't refinance."

Neither of these is entirely accurate. The decision to refinance a home should be based on whether you will own the property long enough to recapture the expenses connected with the new loan.

The procedure can be as simple as subtracting the proposed new house payment from the existing payment to find out what the monthly savings will be. Then, divide the monthly savings into the cost of refinancing to determine the recapture point in months.

If you are planning to stay in the home at least that long, then in most cases, you should refinance. The only exception is when the existing mortgage is in the last few years of its life. It could be amortizing very fast. Usually this will not occur unless you are in the last quarter of the loan life.

When refinancing a home, the points paid to acquire the loan, as well as the loan origination fee, cannot be fully written off as interest in the year that it is paid. They must be spread over the life of the mortgage.

For this reason, you will probably be better off in getting a "par value" loan , meaning there will be few or no points charged. Even though the rate will be higher, the interest is fully deductible as long as the federal limits are not exceeded. You can also keep the cash in your account to earn interest.

For more information call Richard Morse, your real estate professional, at (800) 946-3895.

There is one school of thought that interest and property taxes on a person's home are one of the few income tax deductions still available, and a taxpayer needs as many deductions as possible.

A deduction does not reduce taxes dollar for dollar but simply by the marginal tax rate of the taxpayer. For instance, if you had a $10,000 deduction and were in the 28% tax bracket, it would save you $2,800 in taxes. The net effect is that you still spent $7,200. The question is: did you get $7,200 worth of economic benefit?

As an example, let's say you have a mortgage at 9% interest. You have an extra $100 per month available and want to put it where it will do the most good.

If you put it in a savings account, it may only earn 5%. If you make an additional $100 principal payment on your 9% mortgage, you will have a 4% net gain without any tax considerations. Regardless of what tax bracket you are in, you will save money in this example.

The answer to the original question is determined by asking if you can earn more in an alternative investment than the rate being charged on your mortgage. If not, then in most cases, you will be better off pre-paying your mortgage.

There is one other consideration that should be made. If you will need the money in the near future, the equity in the home may not allow the liquidity needed. Some states make it very easy to have a home equity loan but economic conditions can always change which may make it difficult to get at the equity.

For more information, call Rich Morse, your real estate professional, at (800) 946-3895.

Maintenance Tips to Protect Your Home

1. Service heat & a/c system once a year.

2. Change the filters in your heat & a/c system once a month.

3. Drain the hot water heater once a year.

4. Don't leave light sockets without bulbs.

5. Periodically run a pitcher of ice cubes through garbage disposal to sharpen blades.

6. Replace dripping faucets immediately to conserve water.

7. Don't allow toilet tanks to drip - replace ball-cock assembly.

8. Check weather stripping around doors for air leaks.

9. Visually check the roof after high winds to detect loose shingles.

10. Visually check around the outside roof line to find holes where animals may enter.

11. Check batteries in smoke detectors monthly — replace annually.

12. Wrap outside pipes in winter to prevent freezing.

13. Remove garden hose from outside faucet in winter.

14. Water around foundation during dry periods to prevent cracking or shifting.

For more information, call Rich Morse, your real estate professional, at (800) 946-3895

1. It is important to make certain that the first impression is a favorable one.

2. You'll never have more activity on the home than you will in the first three to four weeks of the listing. The reason is simple: there are buyers out there who have seen everything available and for one reason or another, haven't bought. They are just waiting for something new to come on the market.

3. When that new property does hit the market, buyers and agents both will scramble to look at it. It is common knowledge that the property will usually sell for the highest price during this time. After the initial surge of interest, the only people to look at it will be those buyers new to the marketplace.

4. Make your home look and feel like a builder's model home. Everything should look like it belongs even if it means storing some things until the home is sold. You are trying to create a feeling that makes potential buyers want to move in.

5. Don't wait to see if the house will sell first before implementing these ideas. Once you do decide to do something, don't do just the easy ones or just the bare minimum. 6. The property needs to look good from the street, up the sidewalk, on the front porch, throughout the house, in the darkest closets, and even in the attic. You definitely want to give the impression of a well cared for home.

7. You want the prospective buyer to feel that this home is quality all the way through, not just on the surface.

8. You are even competing with every other home that is currently for sale: new and pre-owned, your area and other areas, those listed with agents and those trying to sell themselves; even with the foreclosures in the market.

9. Your property must appeal to owner occupants who will pay the highest price for the property because they are going to live there as their home.

10. Typical buyers put all of their savings into the down payment and closing costs and don't have anything left over to improve the home such as replacing old, worn-out things.Those buyers will just have to live with that carpet until they can afford to replace it.

11. If buyers have a choice of two comparable properties similar in price, they'll choose the one in the best condition. Just as on the other hand, if two properties are similar in condition, the buyers will choose the one that is less money.

12. Stand at the street and look at the house. If all you can see are trees and shrubs, you have some yard work to do. One of the easiest things to do is trim the shrubs that are overgrown. They should be lowered to a height near the bottom of the windows. If there is ivy growing on the side of the home, get it off.

13. If there are tree branches hanging low in the yard, they need to be pruned. A simple rule of thumb is to have all the limbs high enough so that you can walk under the tree.

14. Invest in a few flats of flowers such as petunias or periwinkles that will last the entire growing season. This will add color and beauty to the front of your home. Consider putting some nice looking flower pots on the porch with some red geraniums or some other blooming plants in them.

15. Look at the front door and the area around it. If you paint nothing else, at least give it a fresh coat of paint. If the doorbell is broken, replace it. Wash the mail box. Keep the porch swept. Get an attractive mat for people to wipe their feet.

16. Air out the home. You are the last person to notice any peculiar odor in your home that may be blatantly obvious to visitors. Go on a search to find the offender. It may be a kitty litter box or a dog bed. It might even be a mildewed shower.

17. Wash all the windows in the house, inside and out. While you're at it, clean the window sills and the bottom of the window jambs, and wash the blinds.

18. If it has been over a year since you've had the carpets cleaned, now is the time to do it. The bare floors should also be waxed or polished, even if they're supposed to be "no-wax."

19. Put bright light bulbs in every socket made for a bulb. Buyers like bright and cheery so you have to keep it from looking like a dungeon. You'll also want to keep the drapes and shades open during the day, even if you're not in the habit, because it will make the property look better.

20. Clean out all of the closets, cabinets, and drawers. Get rid of things you haven't used in the past five years and pack up everything that you haven't used in the last year.

21. Closets should look as if they have enough room to hold additional items. You might need to box up off season clothes to make it look that way. Get everything off the floor and don't have the shelves piled to the ceiling.

22. Even though it may be inconvenient, you will be better off by selecting the furniture pieces that look best and putting the others in the garage, basement, or better yet, in storage. You can rent a mini-warehouses for a few dollars a month.

23. Go over the kitchen like a health inspector. Clean the oven and keep it that way, even if it means eating out more often. After cleaning the range, put new drip pans under the burners, or at least, cover the old ones with foil. Clean around the seal of the door to the dishwasher.

24. Bath tubs, showers and sinks should be freshly caulked. All the grout should be clean and in good condition. There are excellent cleaners that will do the job without tons of scrubbing. There should be no leaks in the faucets or traps.

25. Keep children's toys out of the front yard and off the sidewalks and front porch. Get the teenagers and children to understand the importance of keeping the house looking good while it is on the market. Take down the posters until the house is sold.

26. Clean the ashes out of the fireplace during the season that it isn't being used. 27. Be sure there is a light in the attic and it is easy and safe for people to walk.

28. If you don't have time for a garage sale, consider donating things to charity. Make a list of all the items and their estimated value, and be sure to get a receipt. The donation is tax deductible and may be worth more to you than the time and effort you'd put into a garage sale.

29. The pool needs to be sparkling and free of leaves.

A small investment that can make big returns

1. Change the wallpaper in the entry, kitchen, and bathrooms if necessary.

2. Replace ugly or out of style light fixtures.

3. Completely paint the inside of the home and put all new floor coverings down. Add new window treatments.

4. Ceiling fans are attractive and they are also very practical.

5. New appliances in the kitchen can be an exciting feature that can actually make the difference in a prospect choosing your home over another.

Just before a showing:

1. When the agent arrives with the prospects, have the drapes and window shades open to let in as much daylight as possible. At night, be sure that all of your outdoor lights are on, especially landscape and pool lights.

2. Open all the doors between rooms to give an inviting feeling. Turn on all of the lights including the lamps. Tune the radio to quiet, "elevator style" music.

3. Pick up any newspapers or magazines that may be lying around. See that the counters are free of unnecessary items and that dirty dishes are placed in the dishwasher. Take out the trash if needed. 4. If you have pets, get them out of the way. Not everyone may share your love for animals. Some people may be allergic to them.

5. The beds should be made and clothes picked up. Bathrooms should be clean and the toilet lid down.

6. When you leave the house in the morning or during the day, please leave it as if you know it is going to be shown. It's may be difficult and may even mean you have to get up a little earlier in order to take care of these important items. You never know when the right person is going to look at it, so you must always be ready for them.

For more information, call Richard Morse, your real estate professional, at (800)946-3895

1. Has the owner completed a property disclosure statement?

2. If yes: May I have a copy?

3. What type of financing is available on this property at this time?

4. Are there quote sheets available?

5. What would be a reasonable repair expense amount for this home?

6. Has there been an appraisal made on this home?

7. Could you run a comparable of recent sales in this area?

8. Are you aware of anything that might affect the value presently or in the future?

9. Would you prepare an estimated closing cost statement and figure the approximate house payments?

10. Would you prepare a comparison of an adjustable rate mortgage and a fixed rate mortgage and a Homeowner's Analysis?

For more information, call Rich Morse, your real estate professional, at (800) 946-3895.

1. Property taxes and qualified home interest are deductible on an individual's federal income tax return.

2. Many times, a home is the largest asset an individual has and is considered one of the safest investments available.

3. A homeowner can exclude up to $500,000 of capital gain if married, filing jointly or up to $250,000 if single or filing separately. The home must have been the taxpayer's principal residence for the previous two years.

4. A portion of each amortized mortgage payment goes toward the principal, which is an investment.

5. A home is one of the few investments that you can enjoy by living in it.

6. The majority of the time a REALTOR® can show you any home whether it is listed with a company, a builder, or even a For Sale by Owner.

7. Working with a REALTOR® to purchase a For Sale by Owner is very advantageous because someone will be looking out for your best interests.

8. A real estate professional who can provide you financial information with a computer, will give you a distinct advantage in making the right decisions. 9. A pre-approval program will actually approve you for a specific loan amount subject to the property. This will give you confidence and should help when negotiating with the seller.

10. Your real estate professional can provide you with a list of items you'll need to make a loan application so you'll be ready when the time comes.

11. The right to conduct a property inspection, included in your sales contract, gives you the ability to negotiate with the seller before spending the money for a professional inspection the property.

12. A Home Protection Plan can provide coverage for selected items such as central heat and air conditioning, interior plumbing, built in appliances, pool equipment, and other things. If the seller is not providing this coverage, you can purchase it yourself.

13. Ask the real estate professional for a list of buyers that he or she has helped. Call several names to verify that you'll receive good service.

14. Ask the real estate professional if they are familiar with the neighborhoods you want to live in. Ask how many homes they have sold there in the past year.

15. Ask the real estate professional who he or she is representing in the transaction.

For more information, call Richard Morse, your real estate professional, at (800)946-3895.

1. The five factors that affect the marketing of any home are the price, location, terms, condition of the property, and the agent you select.

2. Over 80% of all Buyers purchase their home through real estate agents.

3. The real estate agent you select should have mutual objective with you such as obtaining the highest possible price, in the shortest period of time, with the most favorable terms.

4. There is much more to a successful sale than placing a sign in the yard, an ad in the paper, and submitting it to the Multiple Listing Service. Discover what other things the agent will be doing to make your home sell.

5. There is a cumulative effect in advertising. Ask what your agent's policy is in regards to advertising.

6. Advice on how to sell your home quickly is a valuable service to expect from the agent you select.

7. Ask the real estate agent how contracts will be presented and if there will be a net sheet showing all of the expenses involved. 8. Many homeowners are concerned because they don't know what is taking place during the listing period. Ask the agent you choose how they stay in touch.

9. Real estate agents are usually able to recommend repairmen and contractors who perform quality work at reasonable prices to help you maintain your home.

10. A Home Protection Plan will allow your home to sell more quickly and protect you from potential liability due to faulty mechanical items.

11. A real estate professional is trained to qualify buyers in order to protect the Seller from taking a home off the market prematurely.

12. Important criteria for selecting an agent are: level of service, selling quickly at an expected price, and the reputation of the agent and their company.

13. Ask for a list of people the agent has represented. This will allow you to independently check the agent's "track record."

14. Following up with prospects who have looked at your home is important but if the owner attempts this, it might appear that he is over anxious.

15. Some real estate agents will issue the Seller a performance warranty which states that if the owner is not happy with the service they are receiving, the agent will release the listing.

16. An inspection by a professional inspector prior to finding a buyer, may identify problem areas that you can repair. This will save time and possibly increase the price you receive for your home.

For more information, call Rich Morse, your real estate professional, at (800) 946-3895.

In order to make an informed decision, it may be helpful to have the answers to the following questions.

1. Will this loan be sold on the secondary market or placed in your portfolio?

2. If private mortgage insurance is required, at what point will it become unnecessary so that it may be dropped?

3. When will the servicing department pay the property taxes to insure the income tax deduction for that year?

4. How many months of property taxes and insurance are required for the reserve account?

5. If obtaining an adjustable rate mortgage, describe how and when the loan can be converted to a fixed rate mortgage and what charges will be involved. Will another appraisal be required?

6. If obtaining an adjustable rate mortgage, what is the margin, index, and anniversary for adjusting the payments?

7. When is the house payment due? When is a late fee incurred? What is the late fee?

8. What is the up front charge for private mortgage insurance and the renewal?

For more information, call Richard Morse, your real estate professional, at (800) 946-3895.

1. Show the children the new home and their new room prior to moving. If this isn't possible, pictures or videos will help them visualize where they are going.

2. Assure children that you won't forget their friends.

3. Make a scrap book of the old home and neighborhood.

4. Throw a goodbye party. At the party have their friends sign a tee shirt.

5. Have your children write good bye letters and enclose their new address. You may wish to call the other children's parents so they will encourage return letters.

6. When packing, give them their own box. They can decorate it so they know which one it is.

7. If you move far away, buy postcards when you stop so they can remember the trip.

8. When unpacking, allow them to unpack their treasures, then let them play with the boxes while you unpack.

9. Start a scrap book for their new home. Include a diary of "My first..."

10. Visit their new school, park, church, etc. Remember to take a camera. 11. Help your children invite new friends over to the house.

12. Let them choose a new favorite restaurant. This will help them feel in control of their New World.

13. Encourage them to send letters about their new home, to their friends.

14. Involve your children in groups, sports, and activities like the ones they used to participate in.

15. Remember even if you only lived in a home a few years, to a young child it is nearly their entire lifetime!

For more information, call Richard Morse, your real estate professional, at (800)946-3895.

1. Recent tax law changes now allow a person to withdraw money from an Individual Retirement Account without penalty, to purchase their first home.

2. Withdrawing money from retirement accounts is an option, but it can be expensive since it may have a 10% penalty for early withdrawal. Income tax will be owed on the withdrawal because it was probably deposited tax free initially.

3. A gift from a relative that does not have to be repaid.

4. Savings.

5. Cash value of life insurance.

6. Qualifying veterans are eligible for a 100% mortgage with no down payment for their principal residence.

7. Borrowing against assets that are paid for such as cars.

8. For extremely well qualified purchasers, there is an 80% first mortgage with a separate 20% second mortgage.

9. Owner financing.

For more information, call Richard Morse, your real estate professional, at (800)946-3895.

The lack of effort comes from the fact that most homeowners know that as long as they buy a home more expensive than the one they're selling, the tax on the gain will be deferred. If it is deferred, then why make the effort of keeping records.

The reason is that someday, you might not reinvest in another home or you may elect to take the once in a lifetime exemption which in either case will trigger the calculation of gain. One of the single most important areas of reducing gain is to accurately record the capital gains made to a home during ownership.

Repairs on a principal residence are considered maintenance and are not treatable as expenses or capital improvements. These items would be routine maintenance on the property.

Capital improvements can be added to the basis or cost of the property, thereby reducing gain. There are three simple questions that can be asked to identify a capital improvement:

1) Does it materially add to the value of the residence? Examples might be the addition of a fireplace, new fixtures, a pool, or a spa. 2) Does it prolong the useful life of the residence? This applies to improvements that if not done would shorten the property's economic life, such as a new roof, exterior paint, or a new furnace. 3) Does it adapt a portion of the home to a new use? Converting a garage to a family room or finishing a basement or an attic would apply to this rule.

Capital improvements needn't be large-dollar items. Money spent on landscaping, deadbolts, ceiling fans, mini-blinds, and similar items are all improvements that apply.

For more information, call Richard Morse, your real estate professional, at (800)946-3895.

Many times an assessment is placed on a property at the first of the year, and statements are mailed to property owners with bold printing stating, "This is not a bill." Unfortunately, since it doesn't require immediate action, many property owners won't give it the attention it deserves.

Usually there is a deadline for this assessment to be challenged. After that time, the property taxes are set for the year.

Correcting an assessment is a simple matter and doesn't require the services of a specialist. The first step is to discuss it with the assessor's office. Many times clarifications can be made during this initial phone call.

The next step is to make an appeal to the local board which is set up to hear disagreements. The board is made up of local citizens. Both the taxpayer and the assessor's office will have the opportunity to explain the reasons behind the valuation.

The property owner should have as much evidence to support their claim as possible. An independent appraisal is an excellent piece of information to have. However, if you have comparables of recent sales with documented facts, it will generally carry as much weight.

If the property has deteriorated, pictures may prove invaluable in showing its present condition. If the house has deteriorated significantly, or if there has been a general drop in prices, this could adversely affect the value. Simply saying the property is too high and that you couldn't sell it for that, will generally not receive consideration.

For more information, call Richard Morse, your real estate professional, at (800)946-3895.

It's disappointing to put your home up for sale, expecting it to sell immediately, and then it doesn't. You lose the home you wanted to purchase because you needed the cash out of your old home, and don't want to make two house payment.

The longer a home stays on the market, the more likely agents and prospects will think there is something wrong with it. The home will be shown less, making it more difficult to find the right buyer for the home.

The reasons that properties fail to sell include one or more of the following: price, location, condition, terms, and marketing efforts. To successfully sell, a correction in these areas must be made. You rarely get a second chance to make a first impression. To maximize the new marketing efforts, all factors must be considered.

Price is the single most important factor in a successful sale. It can overcome a poor location, bad condition, or no terms. A price adjustment must exceed an invisible threshold in order to induce increased activities. For instance, if a home is priced at $107,500, a reduction probably will not encourage additional activity unless it brings the price below $100,000.

If the location of the property is not favorable for a sale, an adjustment in one of the other factors must be made in order to compensate. The areas to consider are price, condition, and terms.

Most buyers, regardless of the price range they're in, spend everything they have for a home. They have to live in it the way they buy it until they can save enough to redo it.  It's better to replace carpet and floor covering with something neutral, than to give the buyer an allowance to pick their own. It's better to replace wallpaper and repaint with neutral colors than to give the buyer an allowance to pick their own. It's also better to replace appliances that are needed, than to make an allowance.

Buyers will always deduct more in their offer than it will cost you to make the repairs or improvements.

Terms describe financing alternatives. They include seller carried first & second lien notes, buy-downs for the purchaser to lower the costs of the payments in the initial periods, seller paid discount points, and the willingness to sell the home FHA or VA.

If two or more homes of the same size are on the market in the same area, for the same price, the one in the best condition will probably sell first. If two or more homes of the same size are on the market in the same area, in the same condition, the one with the best price will probably sell first.

If two or more homes in the same condition are on the market in the same area, at the same price, the largest one will probably sell first. If two or more homes of the same size are on the market for the same price, in the same condition, the one with the best location will probably sell first.

One successful tactic is to position your home like its new on the market. This will create excitement among the buying prospects and more importantly, the agents in the area.

Your home must be exposed to the largest buying segments. Your home must appeal to different buyer segments, such as first time home buyers, move up buyers, relocation buyers, move down buyers, and investors.

Every home needs an exciting feature. The price of the home will determine what the feature needs to be. It could be new appliances in the kitchen, ceiling fans through out the home, a whirlpool spa, or a home entertainment center.

If your home doesn't have an exciting feature, that could be the reason it hasn't sold.

For more information, call Richard Morse, your real estate professional, at (800)946-3895.

1. The number one reason homeowners try to sell their home themselves is to save the commission.

2. The most common incurred problems that homeowners experience are attracting potential buyers, getting the home priced correctly, selling in the anticipated time, and understanding and performing the necessary paperwork.

3. Homeowners find it difficult to handle objections from buyers such as, "I want to think it over," "the price is too high," "we don't have enough cash for the down payment and closing costs," and "we've decided to rent for a while longer."

4. Making appointments to show the home are difficult for owners for a number of reasons. It takes time away from work on a frequent basis, it conflicts with their personal and social life, the inability to determine lookers from qualified prospects, and the safety factor from "unknown" prospects.

Are you available to show the property? One of the difficulties sellers have when trying to sell their own home is being available at all times. It poses problems in that it interrupts work, family, and social schedules.

When a buyer wants to look at a home, it must be available to them at that time. Most buyers are on a schedule which isn't flexible enough to look at the home when its convenient for the seller.

This concept is similar to having a store open for business. There may be times when there are no customers in the store. and at other times when several customers are in the store at one time.

Is safety a factor? It is a sad state of affairs that you must concern yourself with safety in your own home, but it is a reality.

There have been situations where criminals posed as potential buyers in order to "case" a home and find out what personal belongings would be worth stealing. By asking casual questions of the seller, they can find out when the seller will be gone and whether there is a security system.

More sinister criminals may actually assault sellers in the sanctity of their own home.

While a professional real estate agent is not totally exempt from such tactics, they are better prepared to handle them. Meeting a prospect at the real estate office where others can see the prospect will discourage them because they can be identified. Another common requirement some real estate agents make of prospects is to make a copy of their driver's license to keep on file.

Who really saves the commission, the seller or the buyer? If the seller does not use a real estate agent, they think they have saved the commission. But if the buyer doesn't use an agent, they also believe they have earned it. It's going to be hard for both the buyer and the seller to save the commission.

This means the buyer has to learn the process on their own; identify the neighborhoods, find the homes, negotiate and write the contract, secure the financing, arrange the inspections and coordinate the closing on their own.

The seller has just as many obstacles.

Attracting potential buyers. The real estate professional has a collective of promotional efforts to attract buyers. They include all of their different ads in the paper, all of the different For Sale signs, every open house they hold, past customers and clients, company contacts, agent contacts, institutional advertising, referral organizations, the Multiple Listing Service, and the Internet.

Homeowners without the benefit of a real estate professional are limited to placing a single ad in the paper, a single for sale sign, and the occasional open house.

Buyers will need help obtaining financing. It will be important to be able to advise buyers what different loan programs are available and where they can be found. A familiarity with the requirements and limitations of these different programs is necessary in order to help advise the buyers.

Having a financial software program or a financial calculator can make a variety of analyses that make decision making easy for buyers. The forms will show a person how much they qualify for, what the tax advantages and investment potential are, and provide a comparison of different loans.

Methods to purchase a home. Four out of five buyers, purchase their home through a professional real estate agent. In fact, less than one out of ten actually purchase directly from the owner.

Assuming your marketing exposure is as effective as the entire real estate community, your share of the market will only be 10% of the total.

Attracting potential buyers is the number one problem encountered by owners selling their own home.

For more information, call Richard Morse, your real estate professional, at (800)946-3895.

1. Window shoppers are not serious about looking for a home but actually use it as a form of entertainment or as a hobby looking for decorating ideas.

2. Lookers stopping at all hours of day & night to see the house because it is convenient for them, can be quite annoying for an owner.

3. Mis-pricing the home can be very costly.

4. Inability to qualify buyers.

5. Letting strangers in the home.

6. Negotiating with buyer.

7. Knowing everything that needs to be done.

8. Missed opportunities when away from home.

9. Buyers wanting the commission savings.

10. Buyers who don't like to deal directly with owners.

For more information, call Rich Morse, your real estate professional, at (800) 946-3895.

Moving Timeline Check List

One Month Before Move

- Arrange for moving your furniture and personal belongings, either by hiring a moving company or renting a truck.

- Accumulate moving supplies such as boxes, tape, rope, and anything else you may need.

- Plan the travel route if you are driving to your new home.

- Some moving expenses are tax deductible, so you should save all moving related expenses including meals, lodging, and gasoline.

- Develop a plan for packing. The last thing to pack are the things you use the most.

- Notify the Post Office of your move by using the Change of Address form.

- Notify friends, family, and businesses of your move.

- Notify federal and state taxing authorities or any other government agency needed.

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Two Weeks Before Move

- Notify utilities like gas, electric, water, cable TV, and phone companies. Arrange for services at new address.

- Notify long distance phone company and arrange for service at your new address.

- Have your car serviced if you are driving to your new home.

- Recruit people to help you on the moving day.

- Arrange for someone to take care of pets during move.

- Confirm moving company or rental truck arrangements.

- If leaving the city, notify your bank about moving.

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One Day Before Move

- Keep moving materials separate so they don't get packed until you are finished.

- Pick up rental truck if you are doing it yourself.

- Fill up your car with gas and check oil and tires.

- Try to get a good night's rest.

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Mail Forwarding

Q. Which form do I need to fill out to have my mail forwarded?

A. The Change of Address Order form supplied at any United States Post Office or the one in this moving guide.

Q. Does each person in the household have to have a form filled out?

A. If each member has the same last name and they are all moving to the same address, only one Change of Address form needs to filled out. However, if this is not the case, each individual must complete their own Change of Address form.

Q. When does the Change of Address form need to be sent in?

A. To insure that there is no unnecessary delay, the Change of Address form should be completed at least 30 days before you move or at least as soon as you know the date of your move and the new address. The "Start Date" will determine when the post office will forward your mail to the new address.

Q. How long will it take to forward the mail from one address to the other?

A. It will take approximately three to five days for your mail to be forwarded from your old address to the new address depending on how far away they are from each other.

Q. Who else should be notified of my change of address?

A. Everyone who sends you mail should be notified of your change of address. This includes family, friends, credit cards, banks, insurance companies, doctors, dentists, professionals, magazines, and others. You can get notification postcards from the post office.

Q. How long will the Post Office continue to forward my mail?

A. For most mail, it will be forwarded for twelve months and there is no charge for this service. Third class mail will not be forwarded unless the sender requests it specifically.

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Other Frequently Asked Questions

Q. What are the requirements for qualifying for a Moving Expense deduction on my federal tax return?

A. There are two tests, the employment test and the distance test, that determine a taxpayer's eligibility. For more information, you can call 1-800-829-1040 and ask for a publication on moving expenses or you can call your personal tax advisor.

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Things to Do After the Move

- Notify the sender of any mail forwarded to you of your new address. This is only necessary if there is a yellow address label on it which indicates it has been forwarded.

- Register to vote so that when election time rolls around, you will be eligible.

- Get a change of address on your driver's license if you have moved within the state and make application for one if you have moved out of state.

- Make contact with a local insurance agent to transfer policies. Complete a Household Inventory of your new home.

- Find out when the trash and garbage is picked up and whether there is a recycling program available.

- After locating a new doctor and dentist, have your medical histories transferred.

- Ask for recommendations of good contractors like plumbers, air conditioning services, etc., so that when you need them, you will know who to should call instead of being at the mercy of the yellow pages.

- Locate new service providers such as banks, pharmacies, cleaners, etc.

- Make a list of the emergency numbers such as fire, ambulance, police, hospital, poison control, etc., to be available in an emergency.

Recognize that moving can be very stressful on people and that you should be considerate of your family members and yourself.

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Tips on Packing

A substantial amount of money can be saved by packing your household goods. To insure safety for your belongings, care should be undertaken to pack properly.

1. Use strong containers, in good condition, that can be sealed with strapping tape. These can be purchased locally from moving companies.

2. Keep in mind what the box will weigh after it is loaded. 40 to 50 pounds is considered the maximum.

3. Empty spaces in boxes should be filled with crumpled newspaper or bubble wrap to keep things from shifting in transit.

4. Books should be stacked on end and generally in smaller boxes than other things due to their weight.

5. Label each box after packing, so that the movers will know which room to put it in and also to help you prioritize which ones need to be opened first.

6. Remove all breakables from drawers before moving furniture.

7. Don't pack valuables such as jewelry, collections, checks or savings books.

8. Packing takes longer than you expect so allow plenty of time. Pack items that aren't frequently used first and unpack them last.

9. Organization in packing will save you hours of time and frustration in the long run.

10. Items that are no longer wanted can be donated to charity and you may be eligible for a tax deduction.

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Garage Sale Hints

1. Allow adequate time to plan and prepare - several weeks.

2. Selecting the right date is important so it won't conflict with holidays or special events that will compete for attendance.

3. Weekends are generally more successful than weekdays.

4. Bigger is better.

5. Practical household goods such as appliances, dishes, furniture, tools, etc. are good sellers. Clothing typically doesn't have a high resale value with the possible exception of children's clothes in good condition.

6. Try to merchandise your goods in an attractive manner as if you were displaying them in a store.

7. Items should be clean. If not in working order, label accordingly.

8. A classified ad in the newspaper that lists some of the more desirable items can greatly increase your foot traffic.

9. Bulletin boards in grocery stores and other public places will provide additional exposure.

10. Use well created, attractive signs to direct people to your home. The better the sign, the more attention it will attract.

11. Post a sign stating that all sales are final.

12. Visit other garage sales to see what works well.

13. You'll need to have cash on hand to make change for customers.

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Video Your Personal Belongings

In recent years the price of video cameras has come down so low that many households now have one. Even if you haven't got around to buying one yet, you probably know someone who has one, or you can rent one for a very reasonable price.

Most are simple to operate and don't require any skilled training. The microphone is built-in to most of the cameras and some don't even require additional lighting.

Why not use this technology to make a video record of all of the personal possessions in your home just in case you have a burglary or fire. If a picture is worth a thousand words, a video with sound has to be worth ten thousand.

Have someone help you with this simple project. One of you can man the camera and the other can identify different objects in each room. Describe each item as you go along, and if it has a serial number or other identifying mark, be sure to mention it. Open all closet doors to show it's contents and briefly mention the different things. You can't believe how helpful this can be after a loss. Many times you won't miss something for months after a claim is filed because you may not use an item often. Once the video tape has been made, you may want to make a duplicate of it and put a copy in a safety deposit box, at work or give it to a friend or relative for safe keeping.

Don't worry about being Steven Spielberg! You aren't trying to win an Oscar for this tape. Just protect your possessions from loss. However, do have fun doing it.

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Helping Children With a Move

1. Show the children the new home and their new room prior to moving. If this isn't possible, showing pictures or videos will help them visualize where they are going.

2. Assure children that you won't forget their friends.

3. Make a scrap book of the old home and neighborhood.

4. Throw a good-bye party. At the party have their friends sign a tee shirt.

5. Have your children write good-bye letters and enclose their new address. You may wish to call the other children's parents they will encourage return letters.

6. When packing, give them their own box. They can decorate it so they know which one it is.

7. If you move far away buy postcards when you stop so they can remember the trip.

8. When unpacking, allow them to unpack their treasures, then let them play with the boxes while you unpack.

9. Start a scrap book for their new home. Include a diary of "My first..."

10. Visit their new school, park, church, etc. Remember to take a camera.

11. Help your children invite new friends over to the house.

12. Let them choose a new favorite restaurant. This will help them feel in control of their new world.

13. Encourage them to send letters about their new home to their friends.

14. Involve your children in groups, sports, and activities like the ones they used to participate in.

15. Remember even if you only lived in a home a few years to a young child it is nearly their entire lifetime!

Your local real estate professional can help you find another professional agent in the city you are moving to. They can provide information on homes, mortgages, employment opportunities, schools, entertainment, sports, and lots of other things. There is no charge for this referral and it will help you to arrive educated on the area.

For more information, call Richard Morse, your real estate professional, at (800)946-3895.

The seller sets the price of the home, but ultimately the buyer determines the value. My job is to supply you with facts about what has sold recently and what is for sale now to help you make a decision.

The common pricing objections frequently heard from sellers, really have no relationship to value. Some of the most common ones are: "Another agent said it was worth more," "Our home is nicer than those houses," and "People always offer less than asking price." Others include, "We can always come down on our price," "We have to get that much out of our home," "My neighbor was able to get his price," "Let's try it at our price for a month or so," "The buyers can always make an offer," or "We paid more than that for our home."

Obstacles to proper pricing include incompetent agents who will accept a listing at any price the seller puts on it. Sometimes neighbors will lead the seller to believe they got more for their home than they did.

Inflationary times can cause prices to go up rapidly because of economic factors. While recessionary times will cause prices to go down because of adverse economic conditions.

Fear of making a mistake in pricing which could lead to losing a significant portion of their equity. Loss of perspective due to the seller being emotionally involved and not thinking objectively. A property is worth a value independent of the motivations or needs of the owner.

Overpricing can cause a myriad of problems in selling a home in a predetermined period of time. It can reduce sales associates activity as well as reduce advertising response from both agents and prospective buyers.

Other missed opportunities of overpricing include losing interested buyers, attracting the wrong prospects, eliminating offers, and even helps sell the competing properties by making them look like a bargain.

When a buyer is enticed to pay too much for a home, overpricing can cause appraisal problems. There must be comparable sales to justify the price. Lenders want to protect their investment in case they have to foreclose.

Overpricing initially extends market time no matter how important the reasons.

Houses sell quickly and usually for the most money when they are priced properly in the beginning.

Things that don't affect value include your original cost, or the cost to re-build the home today. Your investment in the improvements does not indicate a market value either; they may improve the marketability but not necessarily the price.

Personal attachment and sentiment make a house a home but they don't determine value. As difficult as it may be, personal feelings must be separated to arrive at a fair market value.

REALTORS® have buyers waiting who have seen what is currently on the market and are waiting for something new to be listed. Most activity will take place in the first 3-4 weeks of a listing.

The excitement of a new property on the market will create an urgency for both buyers and agents to see it as quickly as possible. In many instances the home will receive its highest and best offers during this time.

After that initial period, the only people to look at it will be new buyers in the marketplace. Careful consideration must be given to positioning the home properly during the first few weeks of the marketing.

The purest definition of value is what a willing buyer will pay to a willing seller without any undue force involved. There are different values for specific purposes, such as insurance, taxes, or to determine a sales price.

An appraisal will use two basic approaches to value. The cost approach considers what it will cost to rebuild the home today and depreciate it for its age and condition. However, the more popular approach is market value. This looks at homes similar to the subject that has sold recently.

Knowing that past performance is important to establishing value, supply and demand of the current homes on the market also play a factor. Many homeowners find it helpful to look at the similar homes currently for sale before putting a price on their home.

For more information, call Richard Morse, your real estate professional, at (800)946-3895.

1. Use strong containers, in good condition, that can be sealed with strapping tape. These can be purchased locally from moving companies.

2. Keep in mind what the box will weigh after it is loaded. Forty to fifty pounds is considered the maximum.

3. Empty spaces in boxes should be filled with crumpled newspaper or bubble wrap to keep items from shifting in transit.

4. Books should be stacked on end and in smaller boxes than other things due to their weight.

5. Label each box after packing, first, so that the movers will know which room to put it in and second, to help you to prioritize which ones need to be opened first.

6. Remove all breakables from drawers before moving furniture.

7. Don't pack valuables such as jewelry, collections, checks or savings books.

8. Packing takes longer than you expect, so allow plenty of time. Pack items that aren't frequently used first and unpack them last.

9. Organization in packing will save you hours of time and frustration in the long run.

10. Items that are no longer wanted can be donated to charity and you may be eligible for a tax deduction.

For more information, call Richard Morse, your real estate professional, at (800)946-3895.

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