The Basics Category
Dear Liz: It has been almost one year since my domestic partner passed away, and our home of 43 years is fully paid for. I am ready to sell. The house is structurally in good shape but needs upgrades and a backyard redo. I have heard that painting both inside and out is a plus, but I’m concerned that any other improvements, such as flooring, would be my taste and not the buyer’s. Is it a wise idea to indicate that any major improvements be deducted from escrow funds?
Answer: You’re smart not to take on any major remodeling just before you sell, since few home improvements come anywhere close to paying for themselves. The fix-ups that typically do return more than they cost include painting, deep cleaning, trimming and freshening your landscaping, and de-cluttering. Consider storing half or more of your possessions. You’ll have to pack them up anyway to move, and getting them out of the way now will make your house look bigger.
Talk to your real estate agent about the advisability of replacing your floors. If yours are quite worn, the investment may pay for itself. Otherwise, a cleaning may be enough. You don’t have to offer to pay for the next owner’s improvements. Just price the home appropriately to reflect the fact that it needs updates.
Dear Liz: What’s the easiest way to save money? I have the hardest time. I want to save, but I feel that I don’t make enough to start saving.
Answer: The easiest way to save is to do it without thinking about it.
That usually means setting up automatic transfers either from your paycheck or from your checking account. If you have to think about putting aside money, you’ll probably think of other things to do with that cash. If it’s done automatically, you may be surprised at how fast the money piles up.
The second part of this equation is to leave your savings alone. If you’re constantly dipping into savings to cover regular expenses, you won’t get ahead.
People manage to save even on small incomes because they make it a priority. They “pay themselves first,” putting aside money for savings before any other bills are paid. Start with small, regular transfers and increase them as you can.