I heard a story not too long ago about some scientists that found seeds perfectly sealed in an air-tight compartment of a time capsule. The scientists weren’t sure what the seeds were or how long they’d been there. In the lab they discovered the seeds were over 2,000 years old. Would they still grow, and if so, what would they be? They planted the seeds in pots with good soil and gave them plenty of warm sunlight with lots of water. Sure enough, in a couple of weeks those seeds bloomed into the most beautiful exotic flowers you’ve ever seen. Most likely, the scientists determined, they were flowers that have long been extinct.

What’s the point of the story, and how does it relate to real estate? Very simply the seeds gave us proof that it’s never too late for a fresh start. Despite being in hibernation for 2,000 years, those seeds still had the potential to be the most gorgeous flower on planet Earth. January is the time of fresh starts. Everyone wants to start off the new year on the right foot, and that includes real estate.

For sellers, that might mean coming up with a new marketing plan to sell your home. Or maybe you should consider some decorating or remodeling options to improve your home’s appeal. Perhaps it’s time to switch agents and agencies for fresh ideas and enthusiasm.

Buyers, maybe you got discouraged last year when you couldn’t find the right home or the right deal. Now is a great time to explore some neighborhoods you previously ruled out. When you set your expectation to be successful every time you go out and look, you’ll be surprised how often it’s true.

Finally for agents, last year was a rough year for anyone associated with this industry. But you haven’t had your best selling year yet. It’s still to come. You have more potential in your little finger that those 2,000-year-old seeds. This year could be the one your career blossoms into the most wonderful surprise.

The Christmas presents are opened and you’ve made the returns. There’s just one more party, and after New Year’s it’s back to business, the business of selling your home, that is. Making your home a marketable property takes some time and effort, though. Most people think you just stick a sign in the front yard and list it in the local MLS. But I recommend much more. So if you’re thinking about putting your home on the market in January, get the process started now.

First, meet with a few agents and decide who you feel comfortable with. I mean this sincerely because selling your home is a big transaction that deserves proper attention. Paying a lower commission will not replace high-quality service, trust and confidence when it comes to a deal of this magnitude. Since this is still December, many agents aren’t as frantic as usual so it’s a good time to set up meetings.

After selecting the right agent for you, it’s time to shift your focus to your house. You and your agent should look at your home with a buyer’s eye. In other words, what flaws will stand out and therefore need to be corrected, and what are the best features you should highlight? In most cases, first-rate agents have stagers they work with that can help draw out the full potential of your home. Even if no major renovations are required prior to listing, bringing your home up to show-ready condition can take a few weeks.

Developing and implementing a marketing plan also takes time. Print ads usually need to be submitted 30 to 60 days before they hit newsstands. Photography, video tours and even Internet marketing requires some forethought. It all adds up, but a little decision-making now will get you on the market by mid to late January.

Those close to me know that during this week of Christmas I don’t like to give out advice or write about business. Instead, it’s my opportunity to talk about the blessings in life, to thank you for your loyal readership and to wish you the happiest of holidays.

This year was a special year for the Polimino family as we welcomed our second child into the fold. Malia Daniella Grace Polimino was born March 19th at 9:30 p.m., precisely the same time of day her brother Micah was born. I can’t tell you how blessed I feel to have two healthy children. People often want to know what I do on my off time or for pleasure. I tell them only one thing makes me truly happy, and that’s to hang out and play with my wife and kids. Christmas is special in our house. We make a big deal about it, and there’s nothing more heart-warming than to see the magic of the holiday through the eyes of my kids.

It’s been a fantastic year writing this real estate column. I always enjoy hearing from you, my readers. Your questions are terrific and have prompted me to keep learning. I was told by someone associated with the newspaper agency that my column gets a lot of positive feedback and has a solid following. Obviously that wouldn’t have happened without you. Thank you. Also a big thanks to the Denver Newspaper Agency for giving me the opportunity to succeed, to my brokerage firm Fuller Sotheby’s International Realty and to my loyal clients who trust me to help them buy and sell their homes.

Finally, as you know from reading this column I’m a positive person who believes whole-heartedly in expecting good things, thinking life-affirming thoughts, and dwelling not on problems, but rather on solutions. It’s my prayer for you that 2009 will be your best year yet. That you will feel greater health than you’ve ever known, reap greater financial prosperity and that you’ll walk in greater peace. God bless you, Merry Christmas and Happy Holidays.

Let’s continue our look at the top 20 mistakes people make when renovating. If you’d like to check out numbers 20 through 10, visit www.codreamhouse.com and click on News. Now, as Casey Kasem used to say, on with the countdown.

10) Using the wrong paint. There is a reason people make paint for different surfaces. Use the right one for your project.
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9) Skimping on windows. Well-made windows suited for your application can save you money in energy bills like no other feature in your house. Choose wisely and don’t cut corners here.

8) Not doing your homework. Don’t assume you know everything the project entails. Do your research before swinging a hammer.

7) Skipping the electrical system. Hardly anyone plans for this because electrical work is largely unseen. Make sure you’ve got an adequate main power supply and leave room for growth.

6) Ignoring your home’s style. Make sure you remodel with the architecture of your home, not against it.

5)  Bypassing a permit. This practice never works in your favor. Spend the time and money on the permitting process and you’ll see this money back in high-quality construction.

4)  Underestimating the budget. This is way too common, so make sure you have plenty of padding for mistakes, changes and contingencies.

3)  Hiring the wrong contractor. Just because it’s the lowest bid doesn’t mean the guy is the best one for the job. Check references and word-of-mouth.

2)  Taking on more than you can handle. Getting overwhelmed is how projects get started and never finished. Know your limits and hire professionals as needed.

1) Over-building for the neighborhood. Lots of folks expect too much of a return on their investment. Three rooms and three rooms only pay you back for your efforts: kitchens, bathrooms and master bedrooms.

Housing prices have fallen dramatically all over the country and rates on 30-year fixed-rate mortgages are already close to 5.5 percent. Experts say it’s possible, with government encouragement, that rates will fall as low as 4.5 percent.

Now is the time for first-time to step up. Here are some things to consider:

Prices have always softened in the winter. As temperatures fall, bargain hunters will have bigger then usual opportunities.
New homes likely to become scarce. Ian Shepherdson, chief United States economist for the research firm High Frequency Economics, said he believes that a steep drop-off in inventory of new homes is coming soon, thanks to a rapid decrease in home builder activity.
Location. Location. Location. Buying the best-priced house in a really good neighborhood is still smart.
Will values go up? You may have to live in a house for 10 years, but over time, buyers will almost certainly make money.

Source: The New York Times, Ron Lieber

The U.S. Federal Reserve Board is scheduled to meet in mid-December, and officials are looking at unconventional methods to spur a rebound in the U.S. economy.

European and other central banks continue to use interest rate cuts to head off recession, but the U.S. interest rate is already at a low.

The Bank of England and Sweden’s central bank reduced interest rates to 2 percent, and the European Central Bank cut rates to 2.5 percent.

In the United States, the rate is already at 1 percent, though it could be reduced further at the mid-December meeting.

Other options include cutting interest rates on mortgages, consumer borrowing, or Treasury bonds. The gap between Treasurys and other debt raises concerns among Fed officials, which is why the agency launched programs to narrow those spreads.

“Such programs are promising because they sidestep banks and primary dealers to provide liquidity directly to borrowers or investors in key credit markets,” Fed Chair Ben Bernanke said.

Meanwhile, the Fed could purchase Treasury bonds to drive down yields, but many experts do not see that as a viable option.

Bernanke has called upon lawmakers to aggressively aid home owners to help them avoid foreclosure.

Source: Wall Street Journal, Joellen Perry, Job Hilsenrath

I think this title speaks for itself so let’s get right to it – the top 20 mistakes people make when remodeling or renovating their homes. We’ll count down in reverse order. Remember to be here next week to learn what blunder made number one.

20. Gutting everything. In most cases this isn’t necessary and will only cost you more time and money than you planned. Gut everything only when you’re changing the architectural structure of the room.

19. Buying cheap materials. Don’t skimp here. You get what you pay for, and you can’t make bent wood straight. If you buy cheap, you’ll buy it twice.

18. Inaccurate measurements. This usually happens when you’re cutting or when you’re ordering something. Here’s a simple rule to live by: Measure twice, cut once.

17. Shirking the prep work. The majority of a project’s success rests on proper preparation. It’s not fun. Actually it’s mundane and time-consuming. But it’s also necessary. Do it.

16. Using the wrong tools. Three things can happen when you do this. You can wreck the tools, wreck the project and wreck yourself.

15. Misjudging space in a bathroom. If you have to stand on the toilet to open or close the door, you’ve wasted your time and money. This bathroom has virtually no value.

14. Overlooking the importance of lighting. Good lighting can completely change the look of your home. Consider lighting in layers. For example, include recessed can lights, under-cabinet lights and pendant lighting for a kitchen.

13. Giving in to trends. It’s okay to get a little trendy with less expensive accessories, but stick to classic design for your big-ticket purchases. You want them to stand the test of time.

12. Failure to anticipate chaos. If you think a renovation project won’t impact your home life, guess again. It will. Plan for it.

11. Missing the opportunity for eco. Going green with your materials is easier and less expensive than ever. Repurpose components you remove or buy new eco-friendly products.

Spending the least amount possible on taxes is smart money-saving strategy for retirees.

To find the most tax-friendly places to retire, U.S. News & World Report sifted through more than 2,000 U.S. locales to find spots with low taxes and the amenities that are important to retirees like an economical cost of living, good recreational opportunities and attractive cultural amenities.

Here are the magazine’s top 10 communities:

Billings, Montana
Cheyenne, Wyoming
Doral, Florida
Henderson, Nevada
Juneau, Alaska
Manchester, New Hampshire
Nashville, Tennessee
Sioux Falls, South Dakota
Spokane, Washington
Stafford, Texas

Source: US News & World Report, Emily Brandon

Mortgage Brokers’ phones rang off the hook last week as 30-year mortgage rates dropped below 6 percent. Some brokers say their rates are as low as 5.25 percent.

The rates are down because the Federal Reserve announced that it would buy $500 billion in mortgage-backed securities held by Fannie Mae and Freddie Mac. That would help the two increase the pool of money for new mortgages.

“This is really craziness,” says Brian Koss, a managing director of Mortgage Network.

Koss advises borrowers who find an attractive rate to lock it in for 60 days. “Drop everything you are doing, get the mortgage professional all of the paperwork they need, so you don’t run out of time,” he says.

Source: USA Today, Anna Bahney

Last week we discussed the pros and cons of listing your home before the holidays. Does it make any sense? Will you have any showings, or are you just going to be inconvenienced?  To check out that column, go to CoDreamHouse.com and follow the link for “News.”

Today let’s talk about whether or not you should take your home off the market for the holidays if it’s listed right now. Here, it makes sense to reference last week’s column. Recall that all-important barometer question we pondered: Do you need to sell your home quickly? If the answer is yes, then the story’s over. Keep your home listed right through the holiday season. At least you’ll have a shot at some showings, and with less competition on the market you may capture the right buyer at the right time.

But let’s consider, now, the other side of the coin. If you aren’t in a hurry to sell your home and you don’t want to be bothered with showings over the holidays, then by all means take it off the market. I’d suggest pulling it from December 15th through January 15th. Just relax and enjoy the season with family and friends, and forget the hassle of cleaning up the house or shuffling everyone out the door for a showing.

A big bonus for keeping your listing off the market for at least 30 days: When you put it back in the MLS it’ll show up as a new listing and maybe generate interest all over again. Take this break as an opportunity to strategize with your agent about a new marketing plan to implement when the home comes back on the market January 15th. In some cases, all you need is a break from the process and a jumpstart with a fresh approach.