You're busy caretaking on both ends with kids beneath and parents above. With the kids out of the house, maybe you're thinking of upgrading your home or possibly trading up. And with your parents getting on in years, you know you need to have a frank conversation about their financials and other end-of-life plans. Not an easy task but certainly necessary to ensure the best possible outcome for everyone in your family. Read on for advice to help lighten the load.
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How to Renovate Your Home for Future Owners
As home values continue to rise, Americans are starting to spend money on home improvements.
s home values continue to rise, Americans are starting to spend money on home improvements. Most homeowners who undertake renovations do so for their own enjoyment, but it is important to think about such projects as an investment in what is considered to be most people's biggest asset.
While it is rare to find a home improvement project that will offer a dollar-for-dollar return, some endeavors offer a better payoff than others when it comes time to sell. While you may not get a full return on your home improvements, a recently renovated home may indeed sell more quickly. And today's cash-strapped buyers are searching for turnkey properties that won't require a lot of additional investment right away.
The longer you plan to stay in your home after the improvement, the less important the resale value is. But if you think you may move within the next five years or so, here are some smart rules to consider:
Make basic maintenance a priority. Sure, you're itching to redo the kitchen and the bathrooms, but if you need a new roof or have an aging HVAC system, your money may be better spent making repairs. Those are the kinds of items that prompt buyers to walk away from deals or ask for big concessions on price.
Keep up with the Joneses, but don't leave them in the dust. You'll want to keep inmind the character of your neighborhood when making home improvements. If you're the only home on the block with laminate countertops, it's probably time for an upgrade. But unless you're in a luxury community, you can probably skip the warming trays and the wine wall. One exception: adding a second bathroom to a home that has only one is almost always a wise investment.
Opt for classic design rather than trendy. Sticking with simple fixtures and neutral colors will ensure that your home appeals to the broadest swathe of potential buyers. That's because itis easier for buyers to envision themselves in a home that is not screaming with someone else's personality. You can still make a statement with your décor, just do it with high-impact accents like pillows or art that can be easily toned down when it comes time to stage the property.
Go green. Making your home more environmentally friendly will not only increase the appeal for buyers, it will also cut your own bills in the meantime. Replacing windows, upgrading insulation, and/or installing a programmable thermostat are all projects with big potential payoffs.
Expand living space. Making a home feel larger than it is, whether by adding additional square footage or tearing down interior walls to create more open-concept floor plans, can boost a home's appeal and resale value. Other expansion ideas that don't involve a costly addition: finishing a basement or adding an outdoor deck or patio for entertaining.
Focus on curb appeal. First impressions still matter, and any exterior improvements will help when it comes time to sell. While that can be a big project like replacing worn siding, it can also be as simple as power-washing or adding a new coat of paint. Even small projects like installing a bold front door or placing some potted plants on the porch can have an appealing impact. If you have a larger budget, ask a landscaper to offer suggestions for updating your vegetation or level out your yard.
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Your Home: Time to Trade Up?
After years of sitting on the fence, people are finally starting to put their homes up for sale. That's bringing much-needed inventory to the market of larger homes for folks looking to trade up. Making a move to bigger digs canbe tempting, especially for families who feel cramped in their current space.
fter years of sitting on the fence, people are finally starting to put their homes up for sale. That's bringing much-needed inventory to the market of larger homes for folks looking to trade up. Making a move to bigger digs canbe tempting, especially for families who feel cramped in their current space. But there are many factors to consider before making the leap. If you can answer “yes” to one or more of the following questions, it may be time for you to move on up to your next home.
Have your needs changed?
If you are currently living in an apartment or a small starter-home with your expanded family, you may be ready to move into a house with additional bedrooms or bathrooms to accommodate a growing brood. Your priorities may have also changed since you purchased your current home, and you may now be interested in living in a good school district (or you may be less interested in being near swinging nightlife) than you were in the past.
Can you afford to make the move?
Buying and selling property is one of the most expensive transactions that most Americans face. You will need to have enough money on hand to cover closing costs, which typically run about 2 percent to 3 percent of the sale price; you will also have to pay for the move, furnishing the new property, and potentially the cost of carrying two homes if you can't line up the closings perfectly. You'll also want to factor in the higher expenses associated with the bigger home, including the mortgage, taxes and insurance, as well as other ongoing maintenance costs like landscaping and utilities. If you're seriously considering a move, do meet with a realtor to get a sense of how much you'll be able to get for your current home. And, meet with a mortgage broker as well to gain a ballpark figure of what you can spend on the next property.
Is your current home prepped to sell?
House hunting can be exciting as you dream of a better life in your future home. But if you are trading up, you have to make sure that you have prepared your current property to net the biggest possible price. That means doing any maintenance you may have been postponing, sprucing up your curb appeal, and putting some serious effort into decluttering and staging. Visit a few open houses in your area, or at least scout the properties online, to see how your home stacks up to the competition.
Are you ready to commit?
Trading up might not make sense if you don't plan on living in the new house for at least five years. If you think you might want to move again before that time (because your needs change or you think you'll want to relocate), you may not be able to recoup the costs of moving twice. Instead, consider remaining in your current abode, banking the money that you're saving, and then making an even bigger move when you're more certain that you will be around for the long haul.
Can you improve your current home—and stay?
If you really want extra space or modernized amenities, it may be possible to remodel your current home to meet those needs. Using home equity to renovate a property you plan to stay in for the long-term can be a smart investment. Don't forget to check with your local municipality to be sure that the addition you're planning meets local code requirements on the size of a house compared to its lot. A bonus: You will be able to save the emotional and financial costs of the move.
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10 Money Questions to Ask Your Aging Parents
Nobody likes to talk about death or money. But when the conversations are between parents and their adult children, they can feel especially awkward. Still, it's important for all parties to get clarification while everyone is thinking rationally.
obody likes to talk about death or money. But when the conversations are between parents and their adult children, they can feel especially awkward. Still, it's important for all parties to get clarification while everyone is thinking rationally. The alternative? Such issues will not arise until after an emergency, when emotions are running high, and some parties may no longer be able to communicate.
Schedule some family time to engage in these tough conversations with your parents. Here is what you need to ask:
1. Do you have a financial plan? While more than half of retirees have a retirement strategy, only 10 percent have a formal, written financial plan, according to the Transamerica Center for Retirement Research. It's helpful for retirees to work with a planner to make sure they are living within their means and won't outlive their money. Checking in with a financial planner can help ensure that they're making the most of their retirement accounts, Social Security payments, and other assets.
2. Do you think you'll need financial help? If your parents are concerned that their nest egg ultimately won't last, it's important for adult children to learn that as soon as possible in order to arrange their own financial plan to account for potential support of a parent.
3. Where is your will? Everyone should have a will to insure that their estate is distributed according to their wishes after they're gone. Avoid confusion by finding out how you can access the latest version of your parent's will.
4. Do you have a healthcare proxy? Your parents should appoint a healthcare proxy who can speak for them in the event of an emergency in which they are unable to make decisions for themselves.
5. Who are your key financial contacts? If your parents work with an estate attorney, financial planner, or accountant, ask for that person's contact information so that you can reach out in case of an emergency. If your parents are willing, meeting with those contacts at least once in person now may give you a chance to directly discuss any concerns and gain a better understanding of your parents' plans.
6. Do you have a living will? A living will allows an able person to issue an advance healthcare directive now about their wishes for end-of-life care at a time when they’re no longer able to communicate those wishes. This living will would cover situations such as whether to forgo life support or undergo procedures that might prolong life for only a short period.
7. What's the login info for your accounts? You'll want to get the passwords not only for financial accounts but also for your parents' email and social media accounts. Then you won't have to scramble to figure out how to access them in the middle of a crisis.
8. Do you have a durable power of attorney? Just as your parents can appoint a healthcare proxy to make medical decisions on their behalf, they should also give someone financial power of attorney so that he or she will be able to legally manage their financial affairs.
9. Have you updated your beneficiaries? Updating named beneficiaries on retirement accounts and other financial assets is one of those basic financial planning housekeeping chores that can have major consequences if forgotten. This step is especially important if a parent has remarried.
10. Where is the information on your long-term care or life insurance policies? If your parents have insurance coverage to help cover the costs of long-term care or to provide for their heirs after death, it's helpful for you to know about—and have access to—those policies should you ever need to access them.