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Whether your kids have moved out or youre getting ready to retire, moving into a smaller home can significantly reduce your living expenses. If downsizing is in your foreseeable future, here are seven ways to help you pare down your possessions so you can fit comfortably into your smaller space:

1. Plan backwards from moving day. If you have a clear idea when youre planning to move, start downsizing three months prior. It sounds taxing, but tackling every room (and/or garage, basement or attic) in one fell swoop is more challenging, if not impossible”especially for homeowners whove stayed put for years. Sorting through one room at a time is best.

2. Stick to the OHIO rule. Only handle it once. Avoid placing items in maybe piles. Ask yourself if youd replace the item if it disappeared”this will make the process feel much less like a trashing of beloved possessions.

3. Remember more isnt always better. We all have items were saving just in case the original breaks. But do you really need multiple mixing bowls? Dont be afraid to purge duplicates. The same applies to clothing”avoid holding onto garments that no longer fit, but might one day.

4. Scale back collections. Cutting a collection can be upsetting for anyone, downsizing or not. Because you have likely spent years growing it, approach the process as gently”and practically”as possible. Ask yourself which items are favored more than others, or limit the amount based on display space. For example, a bookshelf can only hold so many books.

5. Get cash for your castoffs. Remember the three-month rule? If youre planning to sell an item, start early. Some things may not move as quickly as youd like, and you dont want to be stuck with items you no longer want come moving day.

6. Contact an auction house. If you have an assortment of valuable items, like antique furniture or artwork, consider enlisting an auction house. Compile a large lot so the appraiser can assess items in one visit. An estate sales group can help facilitate the sale or auction of high-end belongings, too.

7. Donate as much as you can. Donating items to charitable organizations can make parting with possessions much more manageable. You may feel much less overwhelmed knowing the items are going to those less fortunate. In many areas, the Salvation Army and Goodwill are available to transport big-ticket items like furniture or appliances. Other house items in good condition can be dropped off and donated to the charity of your choice.

Published with permission from RISMedia.

A 30- or 15-year, fixed-rate mortgage with the same payment amounts each month is one of the most common ways to buy a home”but not everyone can qualify for a traditional mortgage, or has the money set aside for a sizable down payment so they can get a low-interest loan and have affordable payments.

Here are four non-traditional ways to be able to afford to buy a home:

1. Borrow from your parents: If you don’t mind possibly changing your relationship with your parents, ask them for a loan to help you come up with a bigger down payment so you can qualify for a loan. Hire a lawyer to write up a contract, and make sure the loan doesn’t appear as a gift, which would require a gift tax to be paid.

2. Parental co-signers: If your parents won’t loan you money, ask them to co-sign your home loan. This can improve your debt-to-income ratio, making you a better risk to the lender”but your parents should be aware that if you don’t make loan payments, they’ll be liable for them.

3. Borrow from a retirement account: If you have enough money in your 401(k) or IRA, you can borrow money from yourself if you use the money for a down payment on a house, or, you could use the retirement funds to show a lender that you have a lot of money in savings to make loan payments if you lose your job.

The downside is that if you’re 59-1/2 years old or younger and withdraw any of your retirement savings, you’ll pay a 10 percent penalty and will pay taxes on it. The money will have to be repaid within 60 days if you lose your job.

A Roth IRA is after-tax money, so withdrawing from it to buy a home means you’ll only be taxed on the earnings, not the full amount.

4. Insurance policy with cash value: Some life insurance policies allow policyholders to borrow against the principal or cash value, and the money can be used for whatever they wish, including a home purchase. The loan won’t have to be repaid”although not repaying it will leave a lower death benefit.

Whichever non-traditional strategy you use to finance a home, talk to your financial advisor and tax preparer for details on how it will affect your finances.

Published with permission from RISMedia.

There’s a memorable phrase in the real estate profession of “Disclose, disclose, disclose. Those who don’t, don’t close, don’t close, don’t close.”

Its a smart rule to follow, and not just to make a sale. The National Association of Realtors Code of Ethics goes into some detail about what agents should disclose to clients, though there isnt much about rules for real estate disclosures about a propertys condition.

An agents role in conveying the sellers disclosure is pretty straightforward: Tell everything required by law, which vary by state and can go down to the city and county level.

The one area that federal law requires disclosure of is lead paint. If a home was built before 1978, it may contain lead paint, and a disclosure form must be completed.

The state and federal regulations are meant to disclose known facts about a propertys condition, including problems that could discourage potential buyers. These include leaking windows, being in a flood zone and if a murder happened on the site.

While a home inspection should turn up most issues and could turn up new issues that no one knew about, its legally up to the seller to tell buyers about problems they already know about a home.

Most states require real estate agents and brokers to sign a disclosure form listing everything material about the deal, under penalty of perjury.

A real estate agent representing the buyer has a duty to disclose information that would allow the buyer to complete the sale at the lowest price and at the most favorable terms for the buyer, and these can include home defects that need to be fixed.

But some things that come up during an inspection, for example, might not be the sellers obligation to address or disclose, says Louis Wolfs, an agent in Needham, Mass., in an online forum at Trulia.

Some issues may not meet current building codes but are working fine for the current owner, who isnt obligated to disclose them, Wolfs says. These can include older windows, railings that are low, a driveway needing repair and improper grading.

Sellers and their agents may not have to disclose such issues, but revealing as much as they can in a disclosure statement is only in their best interest in the long run if they dont want to be sued afterward for not alerting a buyer to something they knew about.

Disclose, disclose, disclose. Follow that mantra and you should be safe.

I hope you found this real estate information helpful. Please contact me for all your real estate needs today!

Published with permission from RISMedia.

As the temperatures begin to drop, its time to make your home as cozy as possible. If theres one tried and true method for doing so, its hygge (pronounced hoo-gah). Loosely translated as a warm feeling of happiness, this Danish concept is really more of a lifestyle than a design aesthetic. But creating a living space that exudes warmth and sophistication plays an essential role. With chilly winter mornings right around the corner, here are a few ways to bring hygge into your home.

Keep it Comfy
Above all else, your home should be personal and inviting rather than formal or trendy. Focus on how it makes you feel and try to choose dcor that you find calming. Plush pillows, rugs and throws that beg to be curled up in are always welcome when introducing hygge to your living space. Indoor plants and natural materials, like wood and stone, are also typical characteristics.

Bare Necessities
Like other forms of Scandinavian design, a living environment that achieves hygge has a minimalist element to it. By stripping away all of the clutter, you will naturally feel more relaxed and at ease.

Sentimental Effects
Hygge is certainly not about buying into the latest styles when it comes to interior design. After youve gotten rid of all the unnecessary items, try to decorate with a few objects that have sentimental meaning to you. Ultimately, this will help to create a home that reflects your personality and lifestyle.

Neutral Colors
Shades of white, gray and beige are the most common colors used because they contribute to a clean and soothing environment. When paired with natural materials, this effect is effortlessly modern and welcoming.

Warm Lights
Lastly, you can round out the setting and incorporate hygge with soft lighting. Recessed lights with dimmers, lamps and candles can all be used to provide a warm aesthetic and keep you cozy no matter how cold it gets outside in the coming months.

Published with permission from RISMedia.

Kids today have a lot to distract them from doing their homework, like video games, Netflix, YouTube, texting and social media. And lets face it, a lot of adults are just as addicted to their phone as any teenager.

So, as you move into a new home, consider designating a device-free room, a place where kids can study, adults can work and read, and the family can gather to relax, talk or enjoy a hobby.

Heres how you can create a quiet and productive room for your family.

Start With a Desk:
Bring in a simple desk where kids can study and write papers. Although you want to keep this room free of devices, students will most likely need to bring a laptop into the room for research and writing.

 

Bring in the Books:
Set up a bookshelf and fill it up. Start with a dictionary, thesaurus and reference books. Then add some favorite novels and non-fiction titles about a variety of topics such as sports, history and entertainment. If you have young kids, be sure to include picture books to get them in the habit of reading.

 

Figure This Out:
This room is also a great place to set up a table with a puzzle. You can even buy tables that are designed for puzzles. Dont feel any pressure, make it something family members do, as a group and individually, on an ongoing basis.

 

Get a Comfy Chair:
This room needs a place where people can sit, and a nice welcoming chair is perfect for reading and practicing a hobby, such as Add a blanket to the room to make it an ideal spot for a nap.

 

Let There Be Music:
You can make an exception to the gadget rule by streaming music via a phone or tablet. You can even put your old CDs to use in this room or even just listen to a radio. Whatever you choose, the right music can set the mood for all sorts of activities.

Before you know it, your family will be spending a lot more time together”and a lot less time on their phones.

Published with permission from RISMedia.