WHAT TO DO WITH AN UNFINISHED BASEMENT

Although currently dimly lit and a little rough on the eyes, your unfinished basement still has a lot of potentials. With just a little love and the help of the following ideas, you can spice it up in no time and get some great use out of the space. 

 Add a pop of color. 

Give your basement a whole different look without a big renovation by adding some color to space. Consider painting and sealing the floors, opening up the room by painting the rafters white or a light color, or creating a bold accent wall. 

Divide the space. 

Want to make your basement a multi-use room? Partition out the area by installing an inexpensive curtain system. This can be done either with a curtain track or a simple wire, some hooks, and curtains will suffice.

Add foam mats. 

Whether you’d like to use the basement as a home gym to get a quick workout in or a place for the kids to play and rough house, adding some foam mats into the mix is a great and easy solution. They come in various colors and can quickly be picked up and tucked away if need be. 

Use a large rug. 

As an alternative to adding mats, find a large, eye-catching rug to be used as a focal point, and furnish the area around it. 

Add lighting. 

Basements often offer very little built-in lighting and few outlets around the room. Consider stringing café lighting across space from the rafters to give a nice ambiance and glow without any difficult electrical work.

Homeownership! shelter, stability, wealth, and pride

Homeownership is not just a roof over your head! It represents shelter, stability, wealth, and pride! For decades, homeownership has been an important part of the American Dream!  It is the biggest investment you will make in your life.  But, it's also the most rewarding and exciting.

Times are uncertain right now but statistically, there are reasons you are better off as a homeowner vs a renter.  

Non-Financial Benefits

1. Educational Achievement: Homeownership has a positive impact on academic achievement, including reading and math performance in children 3-12 years old.
2. Civic Participation: “Owning a home means owning a part of the neighborhood.” Homeowners have a stronger connection to their neighborhood and are more committed to volunteer.
3. Health Benefits: Adjusting for a range of demographic, socioeconomic and housing-related characteristics, homeowners have a substantial health advantage over renters.
4. Public Assistance: The reports show 47% of homeowners use their home equity credit lines to help pay other debts, diminishing their need for public assistance.
5. Property Maintenance and Improvement: A well-maintained home not only generates benefits through consumption and safety, but a high-quality structure also raises mental health.
6. Pride of Ownership: This place is unique.  It's “yours.” You can customize it according to your likes and personality.

In addition to financial benefits, homeownership also brings significant social benefits. These not only pertain to the family, but extend to the communities, the state, and the country!

Financial Reasons - Buying a home is an investment in your future!

1. Appreciation: On average, home prices are appreciating annually at a rate of 3.6%. This helps to create a safety net.
2. Forced Savings: Your mortgage is like a forced savings plan! With each payment, you are reducing the principal of your loan.
3. Home Equity: Homeownership builds equity every single month. You can later use that equity to start a business, send your children to college, etc.
4. Net Worth: A homeowners’ net worth is 44x greater than renters! This gives you the financial freedom to invest.  
5. Stability: Rent prices are projected to increase by 2.3% in 2020! A fixed mortgage payment allows you to save for future projects and guard against inflation. According to the National Association of Realtors, after 6 years, you will be putting money in your pocket vs renting.  
6. Tax Benefits: The government has created tax benefits to encourage customers to purchase. (Talk to your CPA to see which benefits apply to you).

Statisticians/economists at the National Association of Realtors research these facts daily and have for centuries.  Don't put off having shelter, stability, wealth, and pride of ownership.  You deserve that to yourself.  

The Role of a Personal Representative or Executor

One of the most important reasons to make a will is to name your executor -- commonly called a “personal representative” in Colorado.  If the person serving is a female -- an executrix. After your death, your executor's primary job is to protect your property until any debts and taxes have been paid, and then transfer what's left to those who are entitled to it.

What is Your Role as an Executor

• (1) determine if there are any probate assets;

• (2) identify, gather, and inventory the assets of the deceased;

• (3) receive payments due to the estate, including interest, dividends, and other income (e.g., unpaid salary, vacation pay, and other company benefits);

• (4) set up a checking account for the estate;

• (5) figure out who is going to get what and how much under the Will (if there is no Will, the state’s “interstate succession laws” apply);

• (6) value or appraise the estate’s assets;

• (7) give legal notice to potential creditors (the procedure and deadlines for creditors to file claims vary from state-to-state);

• (8) investigate the validity of all claims against the estate;

• (9) pay funeral bills, outstanding debts, and valid claims;

• (10) pay the expenses of administrating the estate;

• (11) handle various paperwork, such as discontinuing utilities and charge cards, and notifying Social Security, Civil Service, and Veterans Administration of the death;

• (12) file and pay income and estate taxes;

• (13) distribute the remaining property in accordance with the instructions provided in the deceased’s Will; and

• (14) close probate.

As of 2018, only gross estates with values of more than $5.6 million are subject to federal estate taxes, but some states also impose estate taxes. Colorado is not one of those states.  They do not impose an estate tax. Your gross taxable estate is the total value of all you own, both probate assets and property that pass directly to a living beneficiary.

As you can see, serving as a personal representative can be a huge responsibility and is often a time-consuming burden. If you need help finding a good estate planning attorney, please don't hesitate to reach out to me.  I have resources to help you.

How to Help Seniors Declutter

Your senior will have accumulated a lifetime of belongings - some pieces stir deep memories while others don’t but they want to keep them.  There is a theory called the "endowment effect" that suggests we place more value on items once we claim ownership of them.  So all the things you "own" have more value to you and it is harder to get rid of.  To help Seniors, or anyone, for that matter declutter, here are a few tips.

Mobility 

Reducing clutter can create more space and reduce the probability of dangerous falls, or tripping incidents that lead to a loss of mobility. In other cases, decluttering can be helpful to you if you are experiencing limited mobility allowing for easier movement throughout the home. This is one way to let seniors know why they are "decluttering".  

Be Empathetic

Seniors are especially fond of items they have collected over time, again the "endowment effect".  It is hard for them to know that they are parting with the past and that a change is coming.  Be patient and keep the senior involved with the process.  Make sure that the care and concern for their wellbeing are being prioritized. 

Create Four Categories 

• Sale
• Donate/gift
• Discard
• Create a room/space for paperwork or items you need to go through
• Discard any worn bedding, clothing, or towels

Take One Room At A Time

By decluttering room-by-room, this can make the task less daunting, especially with a uniform process for each room.  You might consider starting with a room that is less cluttered.  You and the senior will see more progress and the next room will seem less overwhelming to them.

• Use boxes, bags, or baskets for sorting items
• Be sure to donate or sell clothing you have not worn in the past year
• Any items in a storage unit should be discarded or sold

How To Determine If An Item Is Valuable

• Check for distinctive markings
• Research items similarly made online
• Research the artist or manufacturer who created the item
• If you aren't sure, consult an expert

This is a time in seniors lives when they might possibly need some counseling.  Don't hesitate to bring in an Elder Therapist to help with the transition.  The Office On Aging in Larimer County is a great resource for help.

Basement Remodel - What's Your Return

Basement Conversion to Living Area

I have sellers ask me all the time what they should improve.  Recently, I had a gentleman in Greeley, Colorado ask if he should finish his basement and will it be worth the expense.  According to the National Association of Realtor® Research Department, this is what they found.

Consumers’ Viewpoint After Completing the Project: 

• The top reason for doing the project: to add features/improve livability - 57 percent.
• Second most common reason: moved into the home and want to customize - 16 percent.
• Most important result: better functionality and livability - 52 percent.
• Eighty-one percent said they have a greater desire to be home since completing the project, 65 percent have an increased sense of enjoyment when they are at home, and 77 percent have a major sense of accomplishment when they think of the project.
• Joy Score: 9.5 B

Seven percent of REALTORS® have suggested sellers convert a basement to a living area before attempting to sell, but only two percent said the project most recently helped cinch a deal for them, resulting in a closed sale.

Cost Recovery:

• NARI Remodelers’ cost estimate: $40,000.
• REALTORS®’ estimated cost recovered: $25,000.
• Percent of value recovered from the project: 63 percent.

So, as you can see it is more than likely not going to make the home sell faster but will give more enjoyment to the new buyer.  While you recover some of the costs it's not 100%

If you are interested in remodeling, I have contractors who are capable of finishing a basement.  Call me at 970-672-6069  Margaret Herdt Turn Key Realty 

The Seniors Who Don't Want To Die

I recently went on a road trip with my husband.  It occurred to me, after visiting Mesa Verde National Park, that seniors don't want to die.  There were seniors with their grandchildren, seniors traveling with friends, seniors laughing, and some were traveling with other couples. There were a lot of them at each spot we went to.  They don't want to work themselves to death anymore but enjoy their surroundings with others or partners.  They were friendly, adventurous, and had zest in their step.  They might not be up all night but they were definitely active.

Senior life has it's advantages since everything is not centered around making money and working.  It's a time to strategize what's next.  You worked hard all your life.  Now what? Downsize from your large home?  Get into the best shape of your life? Volunteer? Travel? Relax? Do it all?

https://www.du.edu/specpro/otherprograms/senioraudit/

As more baby boomers retire, the real estate industry, as well as other industries, have been gearing toward this group of people's desire to enjoy life.  There are senior tours, clubs, cruises, card and game groups, volunteering seniors, senior activities, foodies, and those that want to
learn something new, etc.  What a passion this segment of life has for life.  "The seniors that don't want to die".

If you look into the Loveland CO senior housing area, there is 55+ living at Lakeshore at Centerra,

Affinity at Loveland, West Lake Village, Victoria Mannor, and patio homes in and around Loveland like Radiant Dr and in Marianna Butte.  These homes offer a community where you don't take care of maintenance or minimal amounts, activities are offered, social gatherings, gyms, etc.  With this type of housing, seniors are able to leave their homes without worry for an extended time.  Neighbors watch out for each other, the lawn care people mow the law, the watering is on a timer, the kids are gone and you are left to enjoy yourself until YOU decide to go home.  If you want more information on downsizing or patio homes, call me.

It's amazing to me the power this age group has influenced our society every ten years of their life. The baby boomers have changed the way we buy, the way we socialize, the way we eat, the way we spend our days.  And now, they don't want to lay down and die but be active, social, and a major contributor to their families, friends, and communities.

If you need something done - ask a senior.  They have the time and are willing to help.  They don't want to lay around and let life pass them by.

5 Things You Need To Know To Sell Your Probate Acquired Property!

Selling a Probate Acquired property has many challenges that are different from your normal real estate sale. here are 5 things you need to know to sell a home you have acquired in a probate/estate

1. vacant homes

Homes that are vacant for more than 30 days are not covered by standard homeowner policies.  This is a major issue and one that most Personal Representative or real estate agents are not aware of.  Since most families have 80% of their assets in their home, an uninsured tragedy could be devastating emotionally and financially.  Although a Vacant Home Policy is more expensive than a traditional home policy, isn't it worth it to have the asset covered?  We are able to help you find an insurance agent that can solve this problem with a Vacant House policy – month to month.  

2. CLEAN OUT

Many Heirs and Personal Representatives live out of the area. When there is real estate in the estate, the family usually come and take the family heirlooms but are left with an entire home full of contents that they have no idea what to do with. We call this “Probate Quicksand”.  this is one of the biggest challenges when selling a probate home.  Our clean out crews will dispose of the rest – if that is the families wishes. If necessary we have contractors and handyman services to fix up any needed items, pressure wash and clean the home up in order to get the maximum dollars in the sale. Since we are a Probate Resource we can handle most necessary home challenges. It could take weeks/months to find a responsible crew to do this work.  With an out of town Personal Representative, this could take even longer. Many of the people we help never even leave their home and we never meet them. they can stay home and tend to their family and jobs while we do the work.

3. KEEP PROPERTY MAINTAINED

Now you have two homes or three homes or ???  Homes deteriorate when not occupied, so the sooner you decide what to do with this asset the better.  How will you get the yard work done and keep up with maintenance?  We have people who can assist you in maintaining the home.  We are just a call away.

4. OPTIONS FOR THE SALE

You have three options for selling the property.  A. You can sell to a flipper/wholesaler for 70 cents on the dollar. The advantages to this are they buy it "as is".  We have investors who are interested in these type homes.   B. Place it on the open market for market value.  This is usually done by a licensed realtor.  In our current Colorado market, this process usually takes 30-45 days. If repairs are needed, we have a vast group of individuals who can make these necessary repairs.  We have had over 20 yrs selling real estate assets and can help you with this process. or  C. Sell it yourself.  Typically this takes a lot of time that most Personal Representatives don't have.  D.  What if the remaining spouse needs to be removed from the home to a safer environment.  We have a team of people that we can refer you to for help with this matter too.  

5. OPTIONS FOR THE PROCEEDS

After the sale of the assets, the proceeds need to be divided amongst the heirs.  If there are positive proceeds left then it's time to decide what to do with that money.  Will you invest in an investment property to generate further income?  Will you invest the money in stocks, bonds, etc?  A financial planner might be an option.  We have a list of financial planners we work with that can help with this.  Or, if you plan on buying real estate then we can assist you in what type of property to purchase.  It might be a residential property, commercial entity, luxury home, second home, vacation home, townhome, etc.  We have been involved in all of these type transactions and have been selling real estate for 20 years.  

FREE SERVICE So as you can see we have a lot of people on our team that can help you.  Why go it alone?  With so many options at our fingertips and our service is FREE, why do it yourself. 

CALL US TODAY AND LET’S GET STARTED  OR CHECK OUT OUR WEBSITE FOR FURTHER INFORMATION ABOUT WHAT WE DO

www.turnkeyrealtyco/com/probate       970-672-6069     margaret@turnkeyrealtyco.com

The Time Burden of a Probate Executor

The Executor of an estate has 75% of the work to do in a probate situation.  It's a huge time burden for those individuals who have this responsibility.  In addition to a job and your own family, the first thing an executor/attorney will do is file a petition to probate.  That's the easy part.  Here is a timeline on the process.

Step in Process Duration

Prepare and File Petition Probate	1-2 months
A court hearing on the petition for probate	2-3 months
The following are issued. letter of administration, order for probate, duties, and liabilities, issue bond (if ordered)&** letters testamentary **	2-4 months(if not contested)
Notice to Creditors	2-4 months
Notice to Department of Health Services Inventory & Appraisement	4-8 months
Pay state and Federal Taxes ( if necessary)	6-12 months
Allow or Reject Creditor Claims
Possible Preliminary Distributions
Notice to Department of Health Services (if deceased received medical)
Notice to Franchise Tax Board (if the heir is out of state)
A claim of Exemption (if assets transfer to a minor)	6-15 months
Receive Final Tax Letter from state and Federal (if appropriate)	6-18 months
File Petition for Final Distribution and Accounting	8-16 months
Hearing on Petition for Final Distribution and Accounting
Order Approving Final Distribution and Accounting
Distribution  of Assets to Heirs	9-17 months
Final Discharge Order (indicates close of probate case)	9-18 months
Final Distribution of Funds	9-18 months

In addition to the process above, if there are assets (property) to sell, then the home needs
* cleaned out
* personal property needs to be sold, auctioned or donated
* repairs need to be made
* the lawn needs to be kept up
* locksmith to rekey the property
* different insurance needs to be purchased if the home is vacant
* interview realtors
* review offers
* make any repairs the buyer may want to be done, if applicable

* transfer the deed to the new buyer

* figure out what to do with the proceeds

All these things and more can be expected of an Executor.  Other than an Attorney, your most valued resource will be a real estate team that is trained and experienced in probate and inherited property sales.  Your time is valuable and do you have the resources that my team does?  You need a probate resource!

Go to my website for additional information that our team can do for you:
www.turnkeyrealtyco.com/probate
Or contact me at 970-672-6069 for help

Your Real Estate Resource Market Review for March 2019

Northern Colorado Market Report March 2019

As a service to you, I am providing March's real estate market statistics for Northern Colorado. This information has been compiled by IRES which is the multiple listing service (MLS) that serves Northern Colorado, counties Larimer and Weld. As 2019 progresses, I will provide you with monthly updates of these market statistics.

This linked Monthly Market Report will illustrate March's..

• Home Sale Activity
• Average Sold Prices
• Listing Inventory
• Average Days on Market
•  Housing Activity by Price Range

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TIPS FOR HIDING MESSES WHILE SELLING A HOME

An important part of the home-selling process is showing it to prospective buyers. Unfortunately, that means tidying up even more frequently than you normally would, so buyers can focus on the house’s features rather than your household items. While it may not be possible to keep your home completely mess-free when you have children, below are some tips for keeping the chaos to a minimum:

Under-bed storage

If there’s enough space under their beds, encourage kids to keep their rooms tidy with rolling plastic or rattan storage bins. Then, use an oversized comforter or quilt— or strategically placed blankets—to hide the bins from sight. Built-in storage. It may be impossible to keep things from leaving kids’ rooms and entering the living room. Utilize furniture with built-in storage, such as ottomans, or clear a drawer in the entertainment center specifically to tuck away any roaming toys, games and other items.

Baskets and Trunks

If you don’t have much built-in storage or discreet space to take advantage of, consider buying decorative trunks or baskets with lids that you can place around your home. Suitcases. If you need to store toys in the back of a closet, put them in suitcases that you can easily roll and move rather than bulky plastic bins. Suitcases are also a more discreet storage option than bins when buyers glance inside the closet to gauge how much space is available.

Donations 

While your kids may feel attached to every toy, stuffed animal or plaything they own, it might be time to downsize the collection. Suggest that they start a donation pile, so that their unused items can bring joy to other kids instead.

Margaret Herdt Broker/Owner CRS

970-672-6069

margaret@turnkeyrealtyco.com

Credit:  Certified Residential Specialists (CRS)