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How to Make Renting Off-Campus Pay

Katie McCaskey — 2010-08-25T14:30:00 00:00

Filed under: Renting

College students return to campus this week. Many of them argue -- and some even convince their parents and student loan officers -- that living off-campus is cheaper than living in the college dorms.

Seems plausible. According to the College Board, students attending a four-year, in-state public institution spend an average of $6,960 per year on room and board. For a four-year private college, housing costs top $8,000 a year.

But the truth is, students moving off-campus will rarely find that renting is less expensive than dorm life. Additional costs, such as utilities, food, transportation and even furniture, all add up. In addition, students receiving financial aid may discover that their needs are based on campus living costs versus off-campus renting costs, leaving them with a greater financial gap to close.

But renting off-campus does have some other potential benefits. (And no, we're not just talking about learning to manage your beer fund.) Here are four ways to make living off-campus pay:

Become the landlord
Some college students and their parents decide that one solution is to purchase a campus house. The student renter lives in the house for the duration of college and rents rooms to friends. The student, who manages the house, can use any profit for books or other costs. At graduation they can sell the house or hold onto it for for long-term rental income.

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Start that business
Off-campus rentals don't have rules regarding using your apartment for enterprising entrepreneurial activity (so long as it's legal). If your business is in a "gray" area -- such as turning your apartment into a makeshift art gallery -- there could be benefits to being outside the well-policed dorm. Plus, having real-world business skills upon graduation never hurts.

Choose a responsible roommate
At university dorms, someone else picks your roommate. Not so when you're renting off-campus. The freedom to choose your own roommate can be an economic decision that makes your life easier or, potentially, living hell. Be wise enough to choose one who pays his or her share of the bills on time, and you'll graduate with some experience in real-world apartment economics, and perhaps social politics too.

Stretch your food dollar
College residence halls try to be competitive with their dining options because they know that providing good food is one way to keep you. But if you trade your meal plan dollars for some easy and inexpensive home cooking, you can free up cash for other things. (You know, other things.)

Of course, the way to make living off-campus really cheap is to rent your high-school bedroom from Ma & Pa. But for a lot of kids, the cost of living at home is too high at any price.

Still trying to decide which is right for you? Here are some AOL Real Estate guides to help you no matter whether you choose to buy or rent:

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Find foreclosures in your area.
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Home Improvement Grants Give Homeowners a Boost

Katie McCaskey — 2010-08-24T19:42:00 00:00

Warning! If you search the Web for "home improvement grants," you're likely to get some shady sites promising you "exclusive" access to grant information--for a fee. What they don't tell you is that most home improvement grants are distributed at the state or local level, not directly to individuals. The other detail omitted is that, typically, available funds are loaned at a low-interest rate or as rebates after the work on your house is completed. Only a few qualify as grants without repayment.

So do free home improvement grants to fix up your house exist?

The short answer is yes. The longer and more accurate answer is: It's not as simple or as fast as you might be led to believe. Part of the confusion that plays to the swindlers' advantage is that many legitimate government sites do offer information on home improvement grants.

Here's a guide to the legitimate sites offering home improvement grants:

LOCAL PROGRAMS

Offering: Direct loans and project grants (amount varies)

The first and best place to find grants for your home improvements is by contacting your local city or county office. Cities and counties may have grant funds available to make specific home improvements, or improvements in specific locations -- such as areas receiving a Community Development Block Grant. The latter is a federal program that focuses on redevelopment of all types and may include grant money for home improvement in your area.

Local grants are funded by private donations or from funds distributed by the state or federal government. Grants may exist in your area to restore historical features on homes, improve energy efficiency or conserve natural resources, such as water. Sorry, no grants exist to remodel your kitchen or bathroom, as you might be lead to believe from less-than-accurate sites.

STATE AND FEDERAL PROGRAMS

Offering: Direct loans and project grants

U.S. Department of Energy Other home improvement grant opportunities exist through the American Recovery and Reinvestment Act (Recovery Act) of 2009. The Energy Efficiency and Conservation Block Grant (EECBG) Program, for example, distributes money to make homes more energy-efficient. These funds are distributed to states and localities through the Department of Energy.

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For example, in Virginia low-income households may qualify for weatherization grants to improve insulation in their homes.

To find the home improvement grant money available in your area, go to the State Energy Program at NASEO (National Association of State Energy Officials). Again, these funds are distributed to the city level and typically must be repaid, so, best to start your search locally.

U.S. Department of Agriculture Rural Development Grants
The USDA provides a range of grants for very low income households in rural areas. Loans and grants to fix houses must be used for specific repairs -- again, don't be misled to think you can build that outdoor deck you've always wanted. Most monies are structured as very low-interest loans. Those that qualify for grants without repayment are low-income individuals over the age of 62. There are other income, location and other eligibility requirements as well. To get started, contact your local Rural Development office.

Search for grants in your area at the USDA website.

WHEN YOU GET A GRANT

If you meet the requirements and receive a home improvement grant, there are a few things to keep in mind. First, the process may take several weeks to complete, as all stages of the process must be verified. So don't expect money immediately. Second, be prepared to document the improvements made to your house. You will be expected to demonstrate the home improvement grant funds have been used properly (so, just in case, you might want to cancel that Jacuzzi and wet-bar order).

Katie McCaskey serves on a Community Development Block Grant (CDBG) board, locally called SPARC, in Staunton, Va.

Need more tips on home improvements? Here are more AOL Real Estate guides to help you update your home:

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Community Gardens: Hot and Under Attack

Katie McCaskey — 2010-08-18T16:54:00 00:00

Filed under: Lifestyle

Is New York City the "greenest" American city? Not if you consider the recent two-steps-back the city and state have taken concerning community gardens. TreeHugger reports on testimony last week that reveals that New York State has weakened rules that were set in 2002 to protect community gardens from development.

If other states and cities follow suit it may threaten to reduce the number of community gardens and urban farms blossoming across the country.

Renters play a major role in these gardening efforts and the positive community development they enrich.
Seattle's community garden in Ballard, the Ballard P-Patch, is one great example. Site coordinator Lindy Sheehan explains that community garden members plant "giving gardens," where one or more rows are planted for the needy. This results in about 2,000 pounds of fresh produce going to Seattle area food banks.

No land to plant? No problem. What about the food growing on untended property? Consider the positive community benefits made by Rick Nahmias's group Food Forward in Los Angeles. The group harvests fruit and nuts from city-owned trees or privately-owned trees. Volunteers pick the food and donate it to charitable organizations that feed the hungry, who typically don't have equal access to fresh fruit. Another benefit is that the donated fruit frees up cash at the nonprofits for purchase of other food staples. If it weren't for groups like Food Forward the food wouldn't be harvested and would rot or attract vermin.

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Considering the large percentage of renters in Seattle and Los Angeles, it's clear that renters are playing a major role in these and similar urban farming initiatives.

But the green gardening revolution isn't limited to just to renters in large cities, either.

Neighbors Kip Mumaw and Brian Falbo decided to grow a community garden this year in the back of the apartment building where they live in Staunton, Va. (population 25,000). The results surprised them. First, they received multiple comments about how the apartment building's garden beautified the corner. Thanks to furniture that they purchased, the community garden also provided a new outdoor gathering place. They decided to give away the garden's excess bounty to anyone in the neighborhood who wanted it, too.

Why invest in a community garden on land that you don't even own? "We just wanted to enjoy fresh vegetables this summer," says Brian Falbo. "But there was so much [produce] that the community involvement just grew from there. It doesn't matter that we're 'just renting'--this is our home, and these are our neighbors."

Mumaw and Falbo's community garden in Staunton, Va., is located behind a neighborhood store, George Bowers Grocery, co-owned by Katie McCaskey.

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Save Water and Money in the Bathroom

Katie McCaskey — 2010-08-11T16:11:00 00:00

Can a woman's college dorm in Southern California hold a secret to your water-saving bathroom renovation?

Yes, says Alexandra Bennett, sustainability coordinator at Point Loma Nazarene University in San Diego. Bennett is piloting a water-saving program at the college, which despite its proximity to the ocean lacks many local water sources.

By following the school's example and recycling gray water--waste water generated from domestic activities such as laundry, dishwashing and bathing--homeowners can conserve thousands of gallons every year. Nine to 12 gallons a day, on average, disappear down the bathroom sink for such activities as hand-washing, tooth-brushing, shaving, and makeup application and removal.

Here's how you can save some of that water--and your money--from going down the drain:

Use gray water to flush the toilet

One way to save water is to use it for flushing the toilet. For instance, the AQUS system being tested at Point Loma Nazarene reuses water diverted from the sink drain to fill the toilet tank. The water is piped through a disinfecting chamber and particulate filter before enters the tank, where it provides 65 percent of the water needed for flushing.

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Says inventor Mark Sanders, "A two-person household can save between 5,000 and 6,000 gallons of fresh water. The system works on almost every kind of toilet." At $279 retail, it doesn't cost much to reap those water-saving benefits.

Use gray water to irrigate your lawn

A whole-house gray-water system can capture water from bathtubs, showers and clothes washers and divert it outside, where it can be used to irrigate the landscape. The setup is more complicated -- it requires a network of pipes, filters and pumps -- and expensive, but in drought-prone climates it can be a way to ensure that valuable landscaping remains healthy.

If your bathroom remodeling budget doesn't include installing a gray-water system, there are many other simple, low-cost ways to save water in the bathroom. Here are a few other good ideas.

Install a low-flow toilet

New model low-flow toilets use a meager 1.6 gallons per flush, saving the average household as much as $100 a year, according to plumber Terry Love's consumer toilet reports. For even greater savings, consider a dual-flush toilet, which has a standard 1.6-gallon flush and a smaller, 0.8-gallon option for liquid waste.

Install a low-flow showerhead

Like toilets, new showerheads must adhere to a federally-mandated standard for water use, in this case a flow rate of 2.5 gallons per minute. While many early low-flow models put out what felt like a trickle of water, new technologies have led to showerheads that meet the standard but still feel powerful.

Make sure existing plumbing fixtures don't leak

The easiest way to save water is to stop faucets from dripping and toilet tanks from running continuously. To check if your toilet is leaking, take toiletology.com's dye test: Put some food coloring in the tank and wait 30 minutes. Don't flush the toilet during that time. In 30 minutes, if any of the colored water has seeped into the bowl, the toilet is leaking.

Bennett says it's still too early to tell how much money and water is being saved through gray-water recycling on the Point Loma Nazarene campus, but she's optimistic about results so far. "Installing an AQUS gray-water system in the dormitory was a small, but visible, commitment to reduce water usage on campus. We hope that [by highlighting the system and its use] we will instill additional behavioral changes and earth-friendly lifelong habits."

Want to learn about other ways to go green? Here are some AOL Real Estate guides to help:

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Going Green in the Kitchen

Katie McCaskey — 2010-08-10T16:11:00 00:00

Annette Thomson of Washington, D.C., wants to green up her kitchen remodeling project. "I want to replace old vinyl flooring and add Energy Star appliances," she says. "Is there anything else I can do?"

Thomson is on the right track. Going green in the kitchen means replacing vinyl with more sustainable materials and choosing energy-saving appliances. But taking a healthy approach to remodeling also includes designing your kitchen to make day-to-day green living easier.

Green upgrades not only save money and energy, they can also add to home value. Some green improvements offer a return of more than 200 percent
of the investment, according to a survey of Realtors by HomeGain.

Whether you're planning a full-on kitchen remodel or just a few projects, here are some options at different price points that will help you start going green in your kitchen.

Going Green: Ways to Save Money

Cook at home. Cooking at home is greener than regularly consuming heavily packaged takeout or processed foods, and it costs a whole lot less. As you design your showplace kitchen, think practically: How can you make food prep easier? Adding or expanding a pantry to store ingredients is one way to go green in the kitchen. So is making room for traditional kitchen activities such as canning.

Consider recycled building materials. If your kitchen remodel includes replacing doors, windows, or cabinets, you'll save a lot by sourcing them from community-based collections. Habitat for Humanity ReStores sell previously owned building materials at anywhere from 25% to 90% off retail, says Carla Mullen, volunteer coordinator at the Charlottesville, Va. ReStore.

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"Shopping secondhand really reduces your carbon footprint," Mullen says. "Buying recycled kitchen items reduces fossil fuel consumption by keeping materials in the community. There is little remanufacturing and packaging associated with them, too." The items themselves may not be green (i.e., paint might not be low-VOC), but keeping them out of the landfill is certainly more earth-friendly. Mullen reports that more than 2,800 tons of usable items have been diverted from landfills since her ReStore opened six and a half years ago.

Going Green: Ways to Conserve Energy and Reduce Kitchen Waste

Bag it. Reusable shopping totes are gaining in popularity because they conserve trees (paper bags) or oil (plastic bags). To making reusable bags more convenient, set up a dedicated place for them in your remodeled kitchen. Hang them from decorative hooks, or fold them into a wicker basket or drawer.

Compost. A green kitchen should include space for collecting food scraps for composting, which reduces overall kitchen waste. It's also the secret to a healthy landscape. All you need is a pot with a lid. If you're remodeling the kitchen, construct a place for a trash-compactor-size composter, such as those found at Nature's Mill.

Going Green: Ways to Conserve Natural Resources

Save water. Reducing water use can be as simple (and cheap) as adding a faucet aerator to your kitchen sink. Upgrading to a more efficient dishwasher can save enough water each week to wash two loads of laundry, according to Energy Star.

Nix paper. Paper towels and paper napkins require significant amounts of raw materials and water to produce. Design your kitchen to include a place to store and dispose of reusable washrags. Try placing a slide-out laundry bin under your sink or inside a cabinet, for example.

Opt for sustainable flooring. If you're ready to replace the floors in your kitchen, choose a renewable resource such as cork or bamboo. Sustainably grown wood with the FSC (Forest Stewardship Council) certification, or salvaged wood flooring, are other green options.

Thomson is excited about the possibilities for going green in her new kitchen. "I'm rethinking our kitchen space to include bamboo floors, more pantry storage, and a composter," she says. "The compost will be great for the front flowerbed."

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Want to learn more about home buying and home finance? If so, you won't want to miss
our online discussion with industry experts,
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Watch it now on AOL Real Estate.

Insulation at Home Saves Money

Katie McCaskey — 2010-08-09T14:30:00 00:00

Raymond Yoder of Indianapolis, Ind. learned his lesson in home insulation the hard way. "It was cheaper to buy one of the new model homes without insulation. We figured we'd save the cash," Yoder says. That was in 1954. He has since moved from that home but not before, he admits, adding a lot more insulation to keep his home at a reasonable temperature. So much for "saving cash" -- it was lost in the costs to heat and cool his insulation-less home.

A home without insulation? That sounds to most modern buyers like buying a new car without wheels. But even homes built as recently as the mid-1970s have insulation at levels far lower than recommended today. As energy costs continue to rise, it only makes economic sense to equip your house with the correct amount of insulation to conserve energy.

With the addition of insulation to your home, you'll reap rewards -- saving money while doing your part for the environment -- and your home will be a more comfortable place to live in all year long. Here's everything you need to know about insulation:

How does insulation work?

Insulation works by slowing the transfer of heat. That's why the same insulation shields you from the summer sun and retains warmth in the winter. Insulation is rated in terms of thermal resistance, called R-value.

Energy audit and assessment

Before you climb into your hot attic to unroll insulation be sure to call on the assistance of a professional home energy audit. An energy audit will tell you a few important things. First, is your home properly sealed? Adding additional insulation won't be as effective if the heat in your home is escaping. Auditors will give you a customized report on ways you can improve the energy efficiency in your home.

Call your utility company or search for providers in your area. Many utility companies will perform an audit for free or for a nominal cost. Some cities and localities even have incentives - homeowners in Washington, D.C. are eligible for a free energy audit, for example.

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Determining R-values

Next, you'll need to determine the R-values of your existing insulation. The Department of Energy has an excellent, in-depth fact sheet on the topic, including tips on where to add insulation for best results. (Hint: adding insulation where it's never been before will give you the best return on your money. So, start in these places first.)

The site also includes a ZIP Code look-up tool which will provide you the latest recommended insulation levels in your area.

The ZIP Code tool will also calculate approximate returns on your insulation investment. You can also do a cost calculation using an insulation calculator. If your rate of return looks paltry next to today's costs remember that energy prices will continue to rise. Most insulation will pay for itself over a short period of time.

Newest insulation options

You're probably familiar with the pink, itchy fiberglass insulation common for many decades. Most common is the fluffy kind sold in rolls or batts at your local home store. This kind of insulation requires dust masks and long sleeves to install for both safety and comfort concerns.

Now there are more options, some of them made from "green" materials. Today, insulation is made from cellulose, foam, wool or even shredded blue jeans (but don't try the latter on your own -- they need to be fireproofed first). One type made from agricultural byproducts is called Greensulate. This rigid board insulation is made of fiber produced from cottonseed and buckwheat hulls.

"It's used in different applications than, say, the fluffy insulation," explains Sam Harrington of Ecovative Design, the company producing Greensulate. "It won't settle like blow-in insulation options and it really gives a home a tighter envelope." Expect Greensulate to hit the market in 2011.

But back to Yoder's original folly -- a lack of any insulation. He added insulation soon after the initial purchase of his home and added more over the years. Additional insulation helped the home stay warm during Midwestern winters and cool during sweltering hot summers. His family agrees that the home was most comfortable after the last round of insulation was installed, shortly before it's sale.

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Home Energy Saving Projects for Every Budget

Katie McCaskey — 2010-08-09T12:50:00 00:00

Ed and Amy Kelly of Indianapolis, Ind., are excited about their recent kitchen remodeling. While their initial reason was to update the appearance of their kitchen, the couple realized that replacing the aged appliances would have a big energy-saving benefit. "We bought all new energy-efficient appliances because we would save money in the long run. We watch our bills very closely. Plus, we wanted to do our part to reduce energy consumption," Amy explains.

The Kellys would like to implement more energy-saving ideas and projects around the house that would make their home more energy efficient, but like most young homeowners, they're on a tight budget. Luckily there are plenty of home improvement options to fit anyone's budget--from free energy-saving tactics to more costly overhauls.

Lindsay Curren is co-founder of Transition Staunton Augusta, a Virginia chapter of Transition U.S., a nonprofit organization that supports building communities that are resilient to the challenges of peak oil and climate change. Curren knows that not every homeowner can afford costly energy-saving upgrades.

No cost

Think "going green" must break the bank? Think again. Here are a few things you can do to improve your home's energy usage that cost absolutely nothing.

Close doors to unused rooms when heating or cooling your house.
Pull blinds down during the summer and up in the winter to minimize or maximize solar gain.
Turn off heating and cooling when you're not at home.
Turn down the thermostat -- "We had a family meeting and decided that, for heating, no one is to set the thermostat above 68, and for cooling, no lower than 75," Curren says.
Dress appropriately: Don't wear summer clothes during winter and crank up the heat to compensate.
Line dry your clothes -- "We line dry everything winter and summer," says Curren.
Unplug unused appliances -- (Beware the vampire!)
Sign up for a free account at EarthAid.net to track and reduce your energy usage -- and qualify for rewards at the same time!

Less than $100

No need to break the bank to make your home more energy efficient. Here are some low-cost tasks and helpful tools.

Use a TED device to measure and track your energy consumption.
Plant a tree to shade your air conditioning unit so that it will work more efficiently.
Install window film, such as Energy-Film, to prevent solar gain during the summer and energy loss during the winter.
Caulk or seal drafty areas in your home, such as around windows.
Use door snakes, chimney balloons and clotheslines to reduce energy use.

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Curren suggests other low-cost solutions: "We wrapped an insulating blanket around our hot water heater and insulated the first six feet of pipes leaving the hot water heater. [We also] installed weather stripping around our outside doors, and we bought "draft doggies" in funky fabrics from a vendor on Etsy.com for under the interior doors."

$200-$1,500

Consider the appliances in your kitchen or laundry room. Replacing outdated ones with Energy Star appliances reduces your energy usage and gives you a great excuse to freshen up a room's appearance at the same time. Less-flashy upgrades in this price range include installing a tankless water heater or adding additional insulation to your attic. Curren blew insulation (see "Insulation at Some Saves Money") into the attic to a level of R30 in their Virginia home. Check here to determine recommended insulation levels in your part of the country.

$1,500 and up

Yes, some home energy efficiency improvements are expensive. However, they typically pay for themselves very quickly in the form of reduced utility bills and/or tax rebates and incentives. These include: solar panels, solar water heaters and geothermal solutions. Making 10 of these types of changes saves a typical homeowner $600 or more per year and posts an impressive 16% return on your money, according to a study by the Partnership for Advancing Technology in Housing. Energy-efficient improvements may also increase your home's market value when you sell.

After buying their new energy-saving appliances and redoing the cabinets, the Kellys wanted to continue on their energy-saving kick -- but spending more money was not an option. What further upgrades and efforts have the Kellys done to improve their home's energy efficiency? "We shut off the air vents to rooms we don't use on a daily basis. We use ceiling fans in all of the rooms [and] bought dark curtains to block out the sun. Those have really helped our back room that is facing the sun. It used to get extremely hot in there," says Amy.

Are they happy with the results? "Yes. We have definitely saved money," she says.

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Gulf 'Spillionaires' Target Real Estate Market

Katie McCaskey — 2010-08-06T16:33:00 00:00

Filed under: News,Economy

"Spillionaire" is a term coined during the Exxon Valdez spill in 1989 to describe those who make bank after an oil-related environmental disaster. Corporations, small businesses and individuals can profit when they seize opportunity from crisis. That's capitalism.

So it's no surprise that spillionaires are at the ready to profit from oil-drenched real estate on the Gulf of Mexico coast. Here are some ways some might be getting their piece of the action -- and why it's often beneficial for the rest of us.

While spillionaires get a lot of negative play in the media, they're actually a powerful component of a much larger, and largely invisible economic sector -- frequently working for good. This sector is described as the "restoration economy" by author and consultant Storm Cunningham.

"Spillionaires and anyone else who profit from disasters are like any other category of businesses or professionals: There are good ones and bad ones," says Cunningham. "Good ones provide good restoration value for the money, and bad ones take advantage of political connections to get no-bid (or rigged) contracts that allow them to do as little as possible for as much as possible."

Home Cleanup

The oil spill can damage real estate in multiple ways. Consider the damage an oil spill has on indoor air quality. As the ocean oil breaks down, it can become airborne and may start entering homes and businesses via air conditioning and heating systems.

"There's a potential for health problems for people exposed to bad indoor air," says Steve Levine, president and CEO of AtmosAir Solutions in Fairfield, Conn.

The Environmental Protection Agency has been testing air quality along the coastline for volatile organic compounds like hydrogen sulfide, benzene and naphthalene which, when airborne, can cause odors and symptoms such as headaches, dizziness, nausea, eye irritation and respiratory issues. Long-term exposure can cause cancer and damage the nervous system.

"A lot of time and coverage has been rightly spent on the BP spill and how it's devastated the Gulf Coast environment and the animals that live there. But the bad air problem may be leaking into area home and offices making a terrible situation even worse for human health," says Levine.

Cleaner air quality after an oil spill sounds like a fair, and beneficial, way to profit.

Home Purchases

When home values drop, it's a great time to invest -- particularly if you believe that the values will eventually return or cash flow can be produced immediately. Investors of all kinds have noticed the significant price drops in the Gulf area. Some estimates predict that homeowners may see drops of $56,000 or more in home values. Ka-ching!

Again, the results of this spillionaire-ish move can be mixed. "If people are fixing and flipping abandoned/tax auction/foreclosed houses, I can't see anything wrong with that," says Cunningham. "It's putting the housing stock back into salable condition. The real problem is speculators who buy cheap properties and then sit on them, passively waiting for revitalization to raise the value of the property. They help retard the very revitalization they are hoping for."

Community Cleanup

"[F]or a community to achieve comprehensive revitalization," says Cunningham, "they need to make a focused shift to rebuilding their economy by renewing their natural, built and socioeconomic assets. They need to do that in an integrated manner, for efficiency and synergies. And, they need to do it in a way that effectively engages all stakeholders, for social justice."

This critical community work will need the coordinated efforts of volunteers, organizations and for-profit businesses.

Cunningham is among them. "On Oct. 1, my firm will be introducing Revitalization Forum, the world's first web tool to help communities and regions achieve [comprehensive renewal]. If BP sponsored subscriptions to Revitalization Forum for all communities affected by the spill," he claims, "it would cost next to nothing (by spill cleanup standards), but would do more to help achieve rapid, resilient renewal (and goodwill!) than any other investment they could make."

Who Wants to Be a Spillionaire?

You, too can "cash in" -- in a way that might just help reduce the magnitude of damage caused by the next oil spill.

The Wendy Schmidt Oil Cleanup X Challenge just launched. It's named for the wife of Google chairman Eric Schmidt, who donated the grand prize: $1.4 million to the person or team with the best oil-spill cleanup idea. Wendy Schmidt said, "We need to come up with better ways to respond quickly and to minimize the harm we are causing to marine life, coastal wetlands and beaches, and to our livelihoods."

After all, isn't making the first spillion the hardest?

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Gulf Coast Homes Expected to Lose $56K in Value on Average

Katie McCaskey — 2010-08-02T17:15:00 00:00

Filed under: News,Economy,Lifestyle

The unprecedented BP oil spill disaster just got worse, thanks to the estimated $56,000 drop in home value that every homeowner on the Gulf Coast could experience. As reported in Bloomberg BusinessWeek, the estimate from CoreLogic could seriously impact home values for residents of Gulfport, Miss., Mobile, Ala., Pensacola, Fla. and other communities in the Gulf region for years.

More than 600,000 properties -- from Alabama to Florida's Atlantic Coast -- may be affected by the BP oil spill. The counties with the most severe damage -- Harrison, Miss., Mobile, Ala. and Escambia, Fla. -- have approximately 71,000 homes with greatly diminished value.

BP is reimbursing homeowners for property damage under the Oil Pollution Act of 1990. This framework for compensation includes property losses. Home value reimbursements will be made on a case-by-case basis by Kenneth Feinberg, the Washington attorney tapped by BP and the Obama administration.
The severity of the property-value destruction may rest on the potential for lingering doubts about the Gulf's ability to recover, environmentally and economically, from the oil spill. Oil damage is still evident 20 years after the disastrous Exxon Valdez spill in Alaska's Prince William Sound, reports MSNBC.

The drop in Gulf property values could wipe out the premium that some homeowners paid for oceanfront views. Equally disturbing, the spill's catastrophic damage may affect future buyers' perceptions of the area and its long-term investment potential.

Avila Beach, Calif., might offer a glimpse into the time and money necessary for the recovery of property values, though it's one small town affected by a comparatively small oil spill. Avila Beach suffered an underground oil spill 10 years ago as a result of leaking pipes, tanks, and underground oil transported by Unocal. Nearly three city blocks were razed in order to clean the contamination. Thanks to massive money and upgrades, the town is experiencing an economic regrowth. But, Avila Beach is still trying to rebuild its economy outside of the tourist season, reports the San Luis Obispo Tribune.

Attracting new residents and tourists is key to maintaining property values, particularly in beachfront communities.

New Orleans resident Paul Poupart isn't very optimistic about homeowners' recovering their losses, and may echo sentiments of those in this situation: "The people who lose out will probably have to eat it and smile because BP will pull out and disappear paying out as little as possible. They can't look to the Feds to help them out. They are inefficient and don't really care. We learned this from Katrina."

More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.

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Soundproofing Against Outdoor Noise

Katie McCaskey — 2010-08-02T15:29:00 00:00

Scott Warrick of Bloomington, Ind. has a noise problem outside his house: jackhammers. "I'm enduring three months of daily jackhammering as they tear down a local school."

Excessive noise entering your house is a problem. It can stress you out, make you irritable, and, when it comes to heavy machinery and lengthy exposure, can potentially affect your hearing, too.

Here are soundproofing measures homeowners can take to reduce outside noise from entering their castle. Some of these have the bonus of reducing heating and cooling costs, too.

Consider the windows

Windows are a prime source of sound transmission. There are soundproofing measures you can take inside and out to muffle them. On the outside, investigate the seal around the window itself. Combining inexpensive, easy-stick weatherizing strips and new caulk helps seal both acoustic and energy leaks. Consider adding storm windows if you don't have them and if the noise is persistent.

On the inside, install a clear window film. Quality window film will not obstruct your view but will provide a soundproofing buffer. Several window films on the market are easily installed, and can be removed with soapy water. One brand, Energy-Film, insulates from heat loss in the winter and solar gain in the summer.

Find a local expert contractor who has been pre-screened by ServiceMagic

Finally, invest in heavy curtains. Look for dense, heavy fabrics with a textured surfaces. Some curtains and blinds are marketed as noise reducing; these can be helpful. If you are crafty or frugal you can sew an extra layer of dense fabric on the back of any regular curtain.

Add insulation -- everywhere

Insufficient insulation allows a lot more noise to enter your home. So, do yourself a noise-reduction and utility-cost-reduction favor and add additional insulation. The upfront cost of insulation will be offset by reduced utility bills. The added quiet won't hurt, either.

Cover the walls

Hang tapestry, quilts or other textured cloth on interior walls to reduce noise, too. (Note: Don't forget that sunlight can severely damage these collectibles; be sure to place them carefully). You can also rearrange furniture. For example, you could place a filled bookshelf against a particularly noisy wall. Depending on the severity of the noise and aesthetic concerns, you can purchase and neatly conceal thin acoustic soundproofing foam or foam board behind furniture.

Acoustic panels can be pricey and may work better at muffling, not blocking, incoming noise.

Create white noise

One way to get around a noise problem is to make your own. The gentle whir of a fan can help camouflage other noise. So can a "white-noise generator," a device typically marketed as a sleep aid. You can also look into adding other white-noise generators outdoors, such as trees and fountains, and placing them in front of windows. There are more tips in "How to Reduce Noise Pollution in Your Yard."

More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Get property tax help from our experts.

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Home Renovation: Tips for Thrifty Upgrades

Katie McCaskey — 2010-07-28T10:30:00 00:00

Gone are the days when home improvements were "a dollar in, a dollar (or more!) out."

Still, it's an excellent time to undertake home renovation projects. Contractors, tradesmen, and other skilled craftspeople are eager for work. Their empty schedules may mean better rates for you than in years past. And scaling a gigantic home renovation down to a smaller scope can save money.

Here are more ways to upgrade your home while minimizing the financial impact:

Visualize Greatness

A great --and thrifty --home renovation starts with clarity of your plan. It literally pays to map out your entire project before you begin, so you can minimize waste and wrong purchases. A 3-D floor plan will help you adhere as closely to your budget as possible. Visualize specific floor plans in three dimensions by using free, web-based applications. We review three such 3-D visualization tools on AOL's Housing Watch.

Same Look for Less

Have your heart set on granite in the kitchen? Try materials that give a similar look for less. Perhaps try granite tiles, Stonelite, or crushed glass. Determine where you can splurge and where you can save on your home renovation.

Find a local expert contractor who has been pre-screened by ServiceMagic

Stick to It

You can quickly waste money if you change your mind midway through a home renovation. Some items, such as custom-size cabinets or special order sinks are non-returnable, non-refundable, or worse: cannot be easily sold second-hand. Sticking to your plan also has the added advantage of facilitating better choices when options present themselves. Will this vintage light-fixture work in my expanded living room? You'll know if your plans detail the specific sizes necessary.

Second Hand, err ... Vintage

Speaking of second-hand, you can save a fortune if you select "pre-owned" appliances, fixtures and other materials. Locate your nearest Habitat for Humanity ReStore. They offer everything from excess building materials to gently used decor items. Proceeds from the sales are donated to the organization.

Gold in Green

Insulate the attic? Install a tankless water heater? These and other "green" home improvements aren't as fun to show off to guests, but they do offer tremendous value beyond the positive environmental impact. First, and practically, energy efficiency projects can save you money on your home's operating expenses. Green home projects are frequently tax advantaged and/or have multiple funding options available too. Lastly, "green upgrades" will help sell your home faster and for more money.

Don't forget the "green upgrade" potential of your yard, either. Some municipalities offer financial incentives for planting water conserving plants, trees or native plants, too.

Walk the Yard

Thrifty home improvement can be as simple as pulling out your hedge clippers and getting to work. A neat, tidy and well-maintained yard enhances curb appeal. A positive first impression will make your other home-renovation projects shine.

Complete That Chore List

Unfinished projects will do more than irk you, they can significantly affect your ability to sell. No one wants to purchase a bathroom that's "almost there" or kitchen that's "mostly done." Before outlaying cash for a big remodel, make a list of smaller projects that need that final thing to get them to 100 percent. Money spent to complete an unfinished home renovation project is a guaranteed return, and perhaps the thriftiest move of all.

More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Get property tax help from our experts.

Seller Financing Comes Back

Katie McCaskey — 2010-07-22T15:51:00 00:00

Filed under: News,Economy

Sellers once again might want to consider "owner financing" as a method to get that house sold -- and reap some tax breaks, too.

Owner financing (also known as "seller financing," "taking back the note," or "an installment sale") is estimated to be used in 10 percent to 15 percent of today's home sales. The term describes a legal transaction in which the buyer obtains financing to purchase a home through the seller, instead of through traditional banks, credit unions or other lending institutions. Essentially, the buyer makes payments directly to the seller.

Buyer and seller agree on a purchase price, down payment, and regular monthly payments to the seller. Payments are spread over time, like an installment plan. This spreads the seller's taxes due on capital gains over time. Sellers are taxed only as principal is received.

Could seller financing work for you?
Financial planner Richard Schank with PTS Brokerage in Mount Laurel, N.J., provides an example for the website Investors.com.

"To keep the numbers simple, say a tract of raw land was purchased two years ago for $100,000 and sold in 2010 for $200,000 -- with the seller taking back a note for $100,000," he said. "The total gain is $100,000. But the seller only recognizes the gain as dollars are collected, based on the gross profit percentage. In this case ... the gross profit percentage is 50 percent, and [so] 50 percent of every dollar collected is taxable."

Let's say the seller collects $100,000 from the buyer upfront. (These amounts are negotiable, and, the buyer may combine traditional funding with owner financing to produce the agreed amount.) The purchaser still owes the seller $100,000. Of this, just 50 percent, or $50,000, is immediately taxable. The rest is taxed as the principal is received.

Who should consider seller financing? Homeowners who are mortgage-free and anticipating a gain of $200,000 or more ($500,000 for married couples filing a joint return) should certainly consider this as an option to spread taxes over time. Owner financing may also be done if you have a mortgage, or if you anticipate fewer gains. Just be sure this isn't in violation of your original mortgage agreement with the bank. You are still responsible for this mortgage until it is fully paid, even after the house is sold using owner financing.

Owner financing is somewhat uncommon for a few reasons. First, most people have mortgages. They need to sell their home outright to repay their existing mortgage or access money for purchasing or upgrading their new home. So, most sellers prefer all their money up front. The other reason owner financing isn't common is that older sellers might not think they will live long enough to collect all the payments. But for a certain segment of sellers, seller financing is an excellent tool for raising interest in your property.

Realtors and bankers aren't rushing to let you know that you can arrange owner financing, another reason most people have not heard of the option. Check with your lawyer and tax professional, and refer to IRS Form 6252 for more details.

More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Get property tax help from our experts.

Solar Power at Home Saves Money

Katie McCaskey — 2010-07-21T09:53:00 00:00

Filed under: Buying,How To,Lifestyle

Barry Floyd of Elkhart, Ind. loves his pool, but not the electric bills that come with it, or the cost of the utilities that he and his family rack up in the other parts of their home. So he's looking into solar power. "I am in the process of pricing and planning to install some [solar panels]," says Floyd. "I heard lot of bad things and not much good. I wanna hear some good stories."

Here is the good news that Floyd has been searching for: There are a growing number of resources for homeowners interested in investigating the costs and benefits of solar power.

And here is the even better news: Beyond the benefits of solar power saving the environment, solar power will save you money.

Determine Usage Costs

The first step is to understand your existing costs. Track your baseline usage by connecting your electric, gas, and other costly energy accounts to EarthAid. EarthAid is a free website that tracks month-to-month usage. A side benefit to being aware of and reducing your energy usage is that the site offers redeemable points, similar to airline miles, for products and services.

Connect Locally

Anya Schoolman of the Mt. Pleasant Solar Cooperative in Washington, D.C. suggests calling local installers first to ask about solar power incentives. "They should be able to help you figure out what is available in your locality. If there are not incentives available I suggest you organize with your neighbors and get your legislature/county to pass some incentives." If no group exists yet, start your own. That's how Schoolman, her son, her neighbor Jeff Morley, and his son joined efforts to start the Mt. Pleasant co-op.

Find a local expert contractor who has been pre-screened by ServiceMagic

Research Solar Incentives

Start your search at the Database of State Incentives for Renewable Energy (DSIREusa.org), which lists federal, state, and local incentives to install solar power. Also review the site of the newly-formed U.S. Department of Energy Efficiency & Renewable Energy. It offers energy savings calculators and details on installing solar in your home. Be prepared to do additional research and paperwork if you want to sell your energy back to the grid (but in the end, your efforts are rewarded in cash-back incentives).

Payback Time

Schoolman says that "the payback time is totally dependent on what state you are in" and suggests that you review the summary on her co-op's webpage of how it generally works.

"The elements that determine viability of solar energy include the following," she continues. "First, a 30 percent federal tax credit is available to any resident that puts solar on their own roof. Secondly, the energy savings from solar depends on size of system and how much electricity costs in your jurisdiction. [It] also depends on local net-metering rules. Finally, local grants/tax credits, and Solar Renewable Energy Credits are available in states that have a mandatory Renewable Portfolio Standard with a carve-out for solar." She adds that a "feed-in tariff," payments for renewably-generated electricity, is available in a few places and may be the "wave of the future."

Overall, the upfront costs are generally high but are coming down in price. Years of savings as costs escalate, plus some financial incentives, sweeten the deal today.

Get Involved

Keeping current on solar news is also helpful. Check out sites such as Solar Nation or connect with Schoolman via her site.

"I keep a spreadsheet and am happy to connect people with others that I have heard from in their state," volunteers Schoolman. "In many states there is also a regional solar industry association. If we can raise the funds we will create an online matchmaker to help people find interested parties."

You can even click here to sign a petition for President Obama to place solar panels on the White House, too.

Since installing solar panels, Schoolman reports, "My energy bill has dropped from about $150 a month to $25. Many of our members have similar stories."

This sounds good to Floyd, who says, "I'm gonna start with my pool and the pool house and see what I think before going too far. My electric bill was too high last month. It's like that year-round for me."

Floyd may discover that this is just the beginning. Schoolman says: "Although the system itself is projected to save 30 percent to 50 percent of your energy, we are finding that solar is the first step. People then change their behavior, change their lightbulbs, insulate, and do everything they can to shrink their bill (and their carbon footprint). Solar inspires them and gets them started!"

Interested in more home improvement tips? AOL Real Estate has other great guides that might help:

Landscaping with Low-Maintenance Lawns

Guide to Home Lighting: The Kitchen

Selling Your Home on Craigslist: Trickier Than You Think

Katie McCaskey — 2010-07-16T13:00:00 00:00

Filed under: News,Economy

Craigslist's free classifieds are familiar to everyone from real estate agents to average homeowners trying to sell a home. The site covers 700 cities worldwide and is used by 50 million people per month. More than a billion real estate ads have been posted since the site's founding in 1995.

But do you know how to maximize your Craigslist ad for the best results?

Here are some "best practices" to follow when posting a home for sale on Craigslist. These tips apply to brokers and FSBO sellers alike:

Watch What You Say

Craigslist is policed by visitors to the site. If you post a real estate ad that looks fishy it will be flagged. For example, don't promise a beachfront view for real estate in Kansas. Not only is it fraudulent, but users will flag it and it will be removed.

Use Correct Categories

Founder Craig Newmark recently told Inman News that the real estate section "does seem to get policed fairly well. In New York, I have agents quite frequently sending us e-mail about other agents' inappropriate acts."

A common tactic is for real estate agents to list their homes in the "For Sale by Owner" category. Not cool. These agents have their listings removed.

Who Are You?

For best results agents should disclose who they are and their real estate agency. As in real life most people want to know who they're dealing with and generally respond more favorably if you explain who you are first. Individuals selling a home may choose to omit this information for privacy concerns on the listing but are encouraged to respond with contact information.

More Real Estate Stories

The Most Affordable Cities to buy a House on Forbes.com

America's Best Cities for Young Professionals on Forbes.com

America's Cleanest Cities on Forbes.com

Minimize Hype

!!!!FABULOUS DEAL!!!! ~~~One-of-a-kind!!~~~ DREAM HOME!
Your home may be all of these things. But too much marketing hype will be ignored. Skip the +++ keyboard art +++ and DON'T TYPE IT ALL IN CAPS, too. You want to sell, not yell.

Avoid Keyword Spamming

It's old news and it doesn't work.

Don't Post Too Frequently

Many people try to land at the top of the real estate list by posting their listing very frequently. This just serves to annoy potential buyers. Moreover, frequent listing is pointless since the results are updated every fifteen minutes and any "top of list" slot will be lost. Anything more than once every 48 hours is considered too frequent.

Treat People Like You'd Want to Be Treated

It's a simple rule, but the most effective "best practice" when it comes to selling real estate on Craigslist.

More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Get property tax help from our experts.

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Home Staging for an Empty House

Katie McCaskey — 2010-07-15T12:16:00 00:00

Creative Director Beth Elzer needed to sell her Washington, D.C., condo quickly. She and her husband had already moved into another home, so the house was empty. Her broker, Joe Himali of Best Address Real Estate, recommended professional home staging for their empty house. Himali's suggestion came based on experience staging another empty house that received multiple offers even before the official open house.

The cost of professional home staging varies, based on the market you're in and the level of sophistication that your home needs to portray to get the asking price you desire. Home stagers may use their own library of furniture and bill you for their time. Others purchase furniture for you, use it for home staging, and bill you for both time and shopping costs.

Here are some tips from the pros that you can use when you're staging an empty house.
Less Is More

If your house is already empty, you are ahead of the home staging game. A clean slate means that you can stage with a specific kind of buyer in mind. If your house is not already empty be sure to put the majority of items, particularly personal items, in storage. A buyer wants to imagine themselves living in your home. Prepare to present only the minimal furnishings and accessories necessary.

Know Your Buyer

Who belongs to your target market? For example, is the ideal buyer a single professional or a family with children? Determine your ideal buyer, then plan your home staging scheme to appeal to that person. Your goal is to present your home with a specific mood.

Find a local expert contractor who has been pre-screened by ServiceMagic

Remember: It is illegal to discriminate your home's rental or sale based on a person's race, gender, ethnicity, age, religion or sexual preference. You are free to stage your home however you wish, but be advised to avoid items that obviously suggest that you, the seller, has a preference. For example, do not stage your home with references to your religion. It could turn off or even offend potential buyers.

Tell a Story

Let's say that your ideal buyer is a well-traveled young professional. You might choose to display your travel photography on the walls and stage an area specifically for use as an office, even if you previously used the same space for another purpose. Selectively use items you already own and, if necessary, buy accessories that work with the theme.

Curate Carefully

The greatest luxury in the minds of most buyers is the luxury of space. While you want to stage an empty house with enough to evoke a particular mood, do not overfill with distracting items. Choose furniture that is appropriately sized, too. You may enjoy your overstuffed sectional sofa and recliner, but if it eats up too much floorspace it is not a good choice to show off the space in your home.

Define Spaces

Do you have a workout room/office? A den/studio? Many homes have a room that serves more than one purpose. But if you're staging an empty house, you want to assign each room a clear purpose. Make it easy for buyers to understand each room. Remember: You're staging to sell your home, not to live in it.

And how did staging work for Elzer and her previously empty house? Her condo had a slew of visitors and an offer within 48 hours of the open house. Staging proved to be a major advantage when selling during a down market.

"The furniture the stager used made the condo look its best. The condo looked very desirable and the appropriately scaled furniture demonstrated the flexibility of the space," Elzer explains.

Did home staging help you sell your house? Got tips and advice to share? We want to hear from you! Add your comments in the box below.

Want more home staging tips and techniques? These AOL Real Estate guides can help:

More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Get property tax help from our experts.

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Moving and Storage on the Cheap

Katie McCaskey — 2010-07-13T09:51:00 00:00

Filed under: Buying,How To

Think cheap moving involve bribery with pizza and beer? You're not alone. Amy Stafford used this formula for several apartment moves off-campus during college and early in her working career. Only when Amy's inexpensive "freelance" movers "accidentally" kept several boxes of her stuff -- and disappeared -- did Amy realize she didn't know the first thing about moving safely on the cheap.

We've talked with experts to find out the best tips for moving safely -- and cheaply. If only Amy had known.

Cheap Moving: Plan Ahead

A last-minute move will cost you in more ways than one. Start your planning as early as possible to reduce costs and headaches. With advance notice, you'll have a better chance of enlisting the free-to-cheap assistance of family and friends, as well as time to source free moving items (such as boxes) from your local store. Planning your move in advance also gives you time to sell unnecessary items. Selling items can raise additional funds to cover moving costs.

Essential How-To-Guides on AOL Real Estate: Home Buying, Selling, Renting, Moving and Home Improvement

Reduce, Reduce, Reduce

Before any move, carefully evaluate all of your possessions to determine which items must go with you and which items can be put in storage, sold or, even better, donated to others. This task may seem monumental until you consider the fiscal benefits of reducing the items that you're moving. Keep in mind that fewer items means less to box (saving you time), less to transport (saving you fuel), and less to manage (saving your sanity). Donate excess items to civic or charitable organizations, or friends and family. Don't fill the landfill with usable items.

Move Yourself or Pay Wisely

The cheapest way to move anywhere is to move yourself. Hands down it is the most cost-effective if you aren't moving large furniture. Moving yourself is not less expensive if you'll spend more time than necessary carting things up and down stairs (especially if you'll miss work to do it). If you value your time, hire help.

Hiring movers or Man With a Van-type hired brawn can be cost effective. While friends and family might accept beer and pizza as payment, most movers -- even independent ones -- will request cold, hard cash. But get recommendations to avoid movers who help themselves to your possessions with a five-finger discount. Determine costs up-front, but pay after your items are moved. Tip generously.

Moving and Storage

"Self-moving, or 'container moving' is a growing trend," reports John Hall, president of Hall Lane Moving and Storage in New York. "You rent a container and either fill it yourself or hire labor to fill it. Then, we move the container for you. You can unload it yourself or hire help on the other end."

A container move can happen locally or interstate. According to Hall, "This method of moving can save between 30 to 40 percent" compared to the cost of traditional moving vans and movers. It may also be the best of both worlds when it comes to economy versus hired movers.

Rent the Smallest Moving Van

Aren't ready to use a container? Reserve the smallest moving van early because the smaller, and cheaper, moving vans tend to be booked first. If you are unsure about the size you'll need, estimate it by the number of rooms (kitchen, living room, bedrooms) of stuff that you'll be moving. Moving companies have size estimates that are quite helpful.

Again, it's good to reduce possessions. If you can fit all your belongings in your vehicle, this is even better when it comes to moving on the cheap. Do not underestimate the cost savings by reducing possessions first.

Trade Services

If you need help moving, another way to reduce costs is to trade skills or services. If you have a friend or family member willing to help you move, you can trade your professional know-how or other skill in return. Write up a simple agreement that outlines what you'll offer in exchange for moving help. Be sure to include the time frame for delivery and what constitutes a finished project -- to ensure that both parties are happy with the arrangement and consider it a fair trade. You may find that the skills you use every day might also help you pay for your move.

When it comes to moving on the cheap, weigh your options carefully. A complete do-it-yourself move can save money but cost valuable time. Movers can be extremely helpful, or, as Amy discovered the hard way, thieves in disguise. If you hire movers, pay for professionals and get references. Consider "container moving" as a method that gives you the best budget-friendly options while also using the services of professionals.

Interested in more moving tips? AOL Real Estate has other great guides that might help:

More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Get property tax help from our experts.

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Renters: Get Your Security Deposit Back

Katie McCaskey — 2010-07-08T13:14:00 00:00

Amanda Flores didn't anticipate any problems getting her rental security deposit back. After all, she paid her portion of the deposit up front to her roommate. In Amanda's view the apartment was nearly perfect, now that she'd cleaned it out and loaded the moving van. There was just one problem: damage to the kitchen cabinetry.

The damage came from her roommate's former boyfriend and his dog. Both had moved out months ago. Amanda didn't worry, though. She left the keys on the counter and drove to her new apartment. The security deposit check would arrive in a few days ... or so she thought.

The money never arrived and the roommate never reimbursed her, either. Here's how to avoid Amanda's fate and get your rental security deposit back quickly.
BEFORE YOU MOVE IN

Think twice about paying a secuirty deposit to a roommate.

Frequently the roommate listed on the lease will ask that you pay him or her your "portion" of the security deposit. Avoid doing this for a few reasons. First, you need to be officially on the lease. If you aren't on the lease, you won't have access to any deposit funds when you move out. How can you be sure that your roommate will be good for the cash? Second, what's a fair amount? Landlords are required by law to charge no more than two month's rent as a deposit. Roommates might try to profit from you, particularly if you believe your credit is "too bad" to be on the lease. Save yourself the drama. Get on the lease and pay the deposit to the landlord.

Document problem areas.

Take photographs of any "problem" areas. Look for pre-existing damage or other conditions. Make sure you photograph from several angles using decent light. To document the scale of damage, be sure to include a reference object, such as a ruler or coin to make it easy for someone unfamiliar with the dimensions of your apartment to understand.

Essential How-To-Guides on AOL Real Estate: Home Buying, Selling, Renting, Moving and Home Improvement

A quick way to do this is to use the camera on your phone. Then, e-mail yourself the photographs. The e-mail will serve as a time stamp if you need them later.

Notify as necessary.

If you discover major damage or safety concerns that need immediate attention, contact your landlord or property management company right away. A good rule of thumb is to call first, then follow with an e-mail and a letter.

If you've discovered minor damage that may still jeopardize your security deposit when you move out, send an e-mail or letter to the apartment manager. You'll sleep better at night and you'll have this as proof later if you need it.

WHILE RENTING

File official reports as necessary.

You cannot be held responsible for damage to your apartment by acts of nature, such as storm damage, or by theft. Notify your landlord right away if you experience this kind of damage. Call first, then follow with an e-mail and letter. In the apartment damage caused by theft or other crime, it is in your best interest to file a police report. This document can be used later to prove that you are not responsible for damages.

You can, however, be held liable for damage that you or your guests do the apartment. So be mindful which party animals you invite over -- they may cost you your rental secuirty deposit.

AFTER MOVING OUT

Document apartment conditions again.

As before, be sure to photograph any damaged areas upon moving out. Be sure to note any damage that you might have caused, especially if it seems minor (e.g. holes from hanging up pictures). Again, use a reference object in the photograph to convey size and e-mail them to yourself or a friend right away. A landlord must return your money despite normal "wear and tear," such as worn carpet or floors and chipped or faded paint. You want to be sure that you document any wear that is "normal."

Request a walk-through.

Most landlords will not walk through with you when you move out. However, it you're able to secure their building agent this may reassure you about your deposit status. Don't point out flaws or damage. Let them mention anything of concern.

Update your mailing address.

Landlords will send a letter and your deposit check to the last known address. Be sure to update them with your new address.

Still no check?

Landlords are required to return rent deposit money in a timely fashion. It varies by state and can be anywhere from two weeks to 30 days. Some states require that rent deposit money is kept in a separate, interest-bearing account. Depending on your state and your lease, you could be eligible for your deposit plus interest money upon moving out. Check your lease and investigate tenant rights in your area.

Say goodbye to your deposit if:

You were never officially on the lease and paid a "deposit" to a roommate.
You owe back rent.
You've caused damage beyond normal "wear and tear," such as damage from pets or children.
You've left garbage and/or personal belongings that must be discarded.
You've made the apartment uninhabitable or unsafe for others.

Send notice to your landlord by Certified Mail if:

You haven't heard back about your refund within 30 days. Here's a sample letter requesting deposit funds.
You disagree with the amount returned. Request dated, photographic proof of your apartment in pristine condition prior to renting. Mention that you will consider court options if you don't receive this proof or the balance due by a specific date. Send by Certified Mail and regular mail.

Small Claims Court option:

You may be able to secure a lawyer on contingency (paying them when the case is won), but this assumes your deposit outweighs the costs.

Unhappy by the inability to get your rent security deposit back? Take heart: Your financial loss is less than what they're losing with an empty apartment. You've also cost them time to find a new tenant. Be happy that by renting elsewhere you're no longer giving them any of your hard-earned money!

Want more insight on whether you should buy or rent? Here are some more AOL Real Estate guides that might help:

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Want to learn more about home buying and home finance? If so, you won't want to miss
our online discussion with industry experts,
"What Works Now: Smart Moves When Buying a Home,"
created by AOL Real Estate in participation with Bank of America Home Loans.
Watch it now on AOL Real Estate.

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Why Renting Can Be Your Best Bet

Katie McCaskey — 2010-07-07T17:00:00 00:00

Filed under: Lifestyle

Is buying always superior to renting? Not always, and in a down market, not when it comes to selling.

Writer Sutton Stokes recently shared his saga with The Washington Times Communities. He and his wife went from renting to owning, to selling -- and waiting. In his words, "our decision to 'stop throwing money away on rent' will have cost us almost $10,000 we wouldn't have spent otherwise."

Meanwhile, his home still hasn't sold.

I caught up with Sutton and asked him how the experience altered his outlook.
Rented Spaces: How did your view of renting change after buying and then selling your house in Missoula, Montana?

I went from thinking of buying as an "inherent good" to something that is only appropriate in specific situations, at least from a financial point of view. Personally, I can think of lots of good reasons to rent: you're less tied to one place and can more easily move to find work; someone else has to worry about the plumbing and roof; etc. On the other hand, I can't say I regret buying the house in Missoula. It wasn't a given that we'd be leaving, so it might have made sense from a financial point of view after all. And my wife and I genuinely enjoy some of the work that goes into home ownership. But anyone who doesn't enjoy home maintenance might want to think twice.

What were some of the biggest lessons learned from the experience?

To make selling as easy as possible, you really need to get to work fixing up a house after you've bought it. It's no longer quite as easy to sell a house with flaws (like old wiring, say), because of how much more scrutiny banks are applying.

Do you rent or own right now? Are you happy with this decision?

Own. Yes, happy with it. We hope to stay in this town for a while, and we're fixing the place up just the way we want it.

Do you think attitudes are changing regarding the idea that homeownership is always the best solution? Would you say your attitude has changed?

My attitude has changed, and I will definitely speak up if, say, I hear my little brother say he's "tired of throwing money away on rent." You're buying something with your rent -- it's not a house, but it could be flexibility, peace of mind, and a refuge against sudden expensive emergency repairs. That's not nothing.

True. That may be why more people are staying renters by choice these days. Thanks, Sutton.

Also at AOL Real Estate.
See apartments for rent in your area.
Looking for a new home? See "Should You Rent or Buy?"

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Want to learn more about home buying and home finance? If so, you won't want to miss
our online discussion with industry experts,
"What Works Now: Smart Moves When Buying a Home,"
created by AOL Real Estate in participation with Bank of America Home Loans.
Sign up for a reminder on AOL Real Estate.

Pricing Your Home to Sell, Part 2

Katie McCaskey — 2010-07-07T11:00:00 00:00

Filed under: News,Economy

Incorrectly pricing your home won't make it any easier to sell in this market. We recently explored some common home pricing mistakes.

Now we'll look at a few more mistakes sellers make pricing their home and how you can avoid disappointment:

How Much 'They' Got for an Identical Home Doesn't Matter

Did the homebuilder who built your home build several hundred just like it? Don't make the mistake of pricing yours just as Mr. and Mrs. Jones did -- particularly if the Joneses live in another area of the city or state. Local pressures on the market will adjust the price of your home above or below the price of theirs. It's better to price yours against local homes with similar features and amenities than price exactly as an identical home in another market.

Price Your (New) Agent Sets Doesn't Matter

Good Realtors have on-the-ground expertise and, obviously, will want to sell your home for the highest possible price. However, even great Realtors aren't magicians. Expect to adjust your price.

If you're tempted to switch to another agent because your home is unsold, a word of caution: An unscrupulous agent may tell you she can list your home for more money while knowing full well that the market won't accept the price you want. This is just a ploy to get your listing. Do you really want to upset the Realtor who has already put in time and effort selling your home?

Essential How-To Guides on AOL Real Estate

Home Buying

Selling a Home

Renting and Moving

Home Improvement

Your 'Could've' Price from 18 Months Ago Doesn't Matter

Convinced you "could've" sold for a particular amount? Don't lament an offer you refused months ago. The market moves. If you insist on a specific price you might need to sit out from the market awhile until prices or inflation rise to meet your expectations.

Your Financial Picture Doesn't Matter

Have you set your price with one of these excuses? "I need X to move into a new house"; "I need X for this place because the mortgage is paid in full"; or simply, "I need X because I'm broke/flush with cash"? The seller doesn't care. If you've set the wrong price no amount of justification can or will affect price.

But, I Have Memories Here!

Cherish them.

So What Should I Do to Price a Home Accurately?

To set an accurate price for your home, start with the following:

Research the prices of similar homes in your hyper-local market -- your neighborhood and street. (Search here.)
Enlist the advice of a real estate professional who knows your immediate area.
Remember that you'll probably overestimate what the market will bear, even in boom times, because you're emotionally attached.
Determine if you can wait for the "right" price. Be prepared to wait out the market if you're unhappy with the price range for similar homes. Similarly, be realistic and flexible on price if you need to sell sooner than later.

More on AOL Real Estate:
Find homes for sale in your area.
Find foreclosures in your area.

Find out how to calculate mortgage payments.

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Pricing Your Home to Sell, Part 1

Katie McCaskey — 2010-07-06T11:42:00 00:00

Filed under: Economy

Home selling No. 1? Not knowing what your home is really worth and pricing it incorrectly. Here's the ugly truth: your home is not what you think it's worth. Your home is what the market determines your home is worth. It's a reality that has upset a lot of people over the past 18 months and continues to flummox many.

Consider the two numbers (your price versus the market price) like two stars in a constellation. They may appear to be close enough to depict a shape, but, in reality are light years away. Fail to recognize reality and your chance of a sale may be as realistic as wishing on a star.

In this two-part series we'll look at common pricing mistakes. Evaluate your asking price closely and see if any of these ring true:

Price You Paid Doesn't Matter

A common mistake is to assume that you always will be able to price and sell your home at a number higher than what you paid. Sadly, not true. This isn't even true if you just bought the home last month. Why? The real estate market is constantly adjusting. Numerous factors influence a property's perceived value, including but not limited to inventory, the local economy and consumer confidence.

How Much You Spent on Upgrades Doesn't Matter

Gone are the days of a "dollar in, a dollar or more out" when it comes to upgrades. In fact, in many cases the cost of upgrades may not equal instant equity when you sell. The cost of your upgrades may only serve one purpose: as an "entrance fee" to compete with other houses with similar upgrades.

This can be sobering for anyone who has spent thousands of dollars and expected to see that money reflected in the final sales price. Kitchens are a great example. A "new" kitchen is one that's been remodeled in the last six months. A "new" kitchen completed a year or more ago is actually considered an "updated" kitchen. That's a big difference in perception and in ultimate value.

Essential How-To Guides on AOL Real Estate

Home Buying

Selling a Home

Renting and Moving

Home Improvement

How Much You Spent on Repairs Doesn't Matter

The more "realistic" homeowners may point to practical improvements as a justification for a certain asking price. Sorry, folks. A new roof may have cost you a lot of money, but on the other hand, do you think you could sell with an old, leaky roof? Some repairs are simply necessary and therefore have little bearing on price except for the "peace of mind" it may instill in a potential buyer.

The one exception to this rule? So-called "green repairs." Repairs and upgrades that will conserve resources (water, gas, electricity, etc.) can differentiate your home in the market. If you've made these upgrades or repairs be sure to highlight them -- they could be worth gold.

Coming in Part 2: More pricing mistakes sellers commonly make and how these can be very detrimental in this market.

More at AOL Real Estate:
See homes for sale in your area.
See foreclosures in your area.
Get tax advice from our experts.
See how to calculate mortgage payments.

************************************************

Want to learn more about home buying and home finance? If so, you won't want to miss
our online discussion with industry experts,
"What Works Now: Smart Moves When Buying a Home,"
created by AOL Real Estate in participation with Bank of America Home Loans.
Sign up for a reminder on AOL Real Estate.

Permalink | Email this | Comments