Robert Magda: May 2017

Wednesday, May 31, 2017

Pro Tips for Making the Most of Your Kitchen Remodeling Budget

Building Credit 101: Tips for Recent Grads

If you’re a recent college grad, you've likely heard speeches about pursuing your passions and believing in yourself, but you probably haven’t heard much about establishing a good credit history. Here's what you need to know.

It matters - a lot

Qualifying for mortgages, auto loans, apartments and even jobs has become dependent, to some degree, on your credit history.

Find out where you stand

The first step is knowing your current status. Access your credit report by visiting Annual Credit Report.com. Make sure all the information on the report is accurate, because errors can - and do - occur. Damaging discrepancies need to be corrected right away.

Build a credit history

Your credit history is one of the key factors making up your credit score, the all-important three-digit number that determines the rates you pay on everything from credit cards to mortgages to auto insurance.

The best time to build a credit history is when you're young, and the best way to start a credit history is to get a credit card. This may sound counterintuitive, but if you don't have a credit card, the scoring system has no information to go on for assessing your creditworthiness, so you come across as a credit risk.

Research credit card options

While many of the major issuers offer cards geared toward new applicants with little or no credit history, you might stand a better chance of getting a card at a credit union. Size up your card options on a site such as LowCards.com.

Gas cards and department store cards are also typically easy to get and can be a good place to start if your options are limited.

Another possibility - especially if you don't have any credit history or your credit is damaged - is to get a secured card. These cards work just like a regular credit card, except that you place a security deposit with the credit card issuer to obtain one. They typically require $200 or more for the deposit, and this amount becomes the credit line for the account.

Use credit responsibly

The way to keep your credit score high is to spend responsibly within your means. Don’t use more than 30 percent of your available credit, and pay off your balances in full and on time every month. Your payment history contributes to 35 percent of your credit score, so this point is important.

Chip away at student loans

Student loans are a form of debt, and are therefore taken into account as part of your credit score. And while you may be worried about a lender seeing all of this debt (likely tens of thousands of dollars), there's no need to be concerned if you’re handling your finances properly. Just be sure you’re managing your debt obligations and repaying them on time, every time.

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Note: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinion or position of Zillow.

Originally published May 29, 2015.

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Tuesday, May 30, 2017

Robert Downey Jr. Picks Up His Second Home This Month

Despite four decades in Hollywood, the “Avengers” star isn’t any closer to slowing down. If anything, Robert Downey Jr. is busier than ever. He’s got one movie in post-production (“Spider Man: Homecoming”), “The Voyage of Doctor Dolittle” in pre-production, is currently filming another “Avengers” movie, and has announced two other films.

Somehow he’s still making the time to pick up new homes — one on each coast. Less than two weeks ago, it was reported that the actor purchased a windmill cottage in East Hampton. This time it’s a $3.8-million Malibu manse.

Perched on a sunny cliff, the 3,384-square-foot residence offers sweeping water views from many rooms. In the living room, retractable glass walls flood the huge space with light, and make it feel seamlessly integrated with the outdoor terrace. The kitchen boasts an eight-burner stove, two sinks and a separate wine fridge.

Photos from Zillow listing

The 3-bed, 3-bath mid-century modern home is actually quite modest for such a big star. It still has an enviable view of Malibu Lagoon and a backyard with all the celebrity fixings — a pool, a hot tub, a fire pit, an entertaining area and even a putting green — but it’s a far cry from many of the other homes he is rumored to own.

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Can You Save Money by Bundling Home Services?

Why pay full price for something if you can get what you want, plus another item, at a discount? This is called bundling, and researchers have been studying the pros and cons of it for decades.

Although many consumers think of bundling as a modern concept - it’s often used to combine TV, internet, and phone services, for example - the practice has been around for years in a variety of forms.

As a homeowner or renter, navigating the benefits and pitfalls of bundling household services means using a little common sense and a bit of economic reasoning. It also requires being aware of when and how products are bundled.

What is bundling?

Everything from fast-food combo meals to items in a two-for-one deal could be considered bundled, especially if sold at a lower price than the separate parts.

For households, bundling might mean purchasing home and car insurance together at a slightly lower rate - the average American, for example, saves 16 percent when bundling the two policies, according to the latest data from InsuranceQuotes.com.

The possibilities for bundling household services abound, according to Andrew Schrage, co-owner of Money Crashers Personal Finance: "You might find someone on Craigslist who can help with electrical, plumbing, and air-conditioning/heating needs. You’ll likely get a discount, because you’ll be bringing that person more work."

Mixed versus pure bundling

There are several types of bundling, each with varying levels of consumer benefit, according to George John, a professor at the University of Minnesota's Carlson School of Management. As a homeowner, you’ll most likely encounter these two types:

Mixed bundling. The consumer chooses between separate items or a bundle. The pieces will likely be more expensive individually, but the consumer has the option to buy just one piece.
Pure bundling. Occurs when the seller offers only a bundle and no individual pieces. This would happen, for example, if a town has only one moving service, which requires clients to buy its cardboard boxes.

In such a scenario, consumers are worse off, because the seller increases its profit by requiring such a deal. The company can get away with it "because they have a very strong market position," John says.

Understanding your needs is key

Why are so many services offered in bundles? "This is somewhat controversial, but it turns out that companies make more money when they offer you discounts on those bundles, because consumers get tempted into buying it," John says.

To win at the bundling game, keep your needs in mind, and stay strong in the face of alluring deals. Bundles are a true victory for consumers only if they genuinely need all parts included in it.

When consumers fail to shop around for the other items in the bundle and go for the packaged deal instead, they often walk away with products they don't want or need - and sometimes pick up lesser-quality goods along the way.

Finally, the touted time-saving advantage of combining bills, which service providers sometimes use as a selling point, may not economize that much time, especially if a consumer would be signing up for automatic bill payments anyway.

Service providers "want to take your attention away from the fact that it's actually a price move. They want to tell you that you're getting a better experience if you bundle," John says.

Client-controlled bundling

Consumers triumph when they control what’s in the bundle. Have a nanny who you pay a little extra to make dinner each night? That's a bundle. “It’s totally a good deal, because you know the benefit that comes from having the same person watch your child and cook for you. You've made the judgment," John says.

At the end of the day, discipline is key. Saying no to unnecessary items, looking for other options instead of pure bundling, and refusing to be duped by false benefits will ensure you win the bundling game.

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What Do Buyers and Sellers Pay in Closing Costs?

Rarely does a buyer or seller show up to the closing without knowing exactly what their costs of sale will be.

In fact, based on the mortgage loan amount of the purchase/sale price, it's not hard to ballpark either side's closing costs. Before you get too far along in the process, ask your real estate agent or mortgage professional for an estimate.

Once you have a real, live deal with a closing date, you should be able to know your costs pretty close to the penny.

If you're new to real estate or haven't bought or sold in a while, here's what you need to know about closing costs.

Buyers have a higher number of costs

In a closing, both buyers and sellers have costs. Usually, the buyer is faced with more line-item expenses than the seller (although sellers pay more).

For starters, most buyers are getting loans to make the purchase, and many of the charges stem from the loan.

A buyer should receive a loan estimate form early on in the sale process. This document spells out all the approximate costs the buyer will face when making the purchase, so there aren't any surprises at closing. Some buyers use the information on the loan estimate form to shop for different lenders, interest rates and costs.

Typically, buyers getting a loan will see some of the following costs:

Appraisal fee Origination fee Prepaid interest Prepaid insurance Flood certification fee Tax servicing fee	Credit report fee Bank processing fee Recording fee Notary fee Title insurance

Be sure to go through these fees line by line with your mortgage professional to understand exactly what they are and how they apply to your loan.

Aside from the expenses of getting a loan or buying a home, some expenses, such as property taxes or homeowners association dues, are pro-rated and paid at the time of closing. For example, if you're buying a home and you close toward the end of the property tax period, you'll likely need to pay the balance of taxes upfront.

The same holds true for prepaid loan interest. If you close toward the end of the month, the lender may ask for the first month's payment up front.

Negotiate sharing some of the costs

Coming up with an extra one to two percent toward closing costs can be a bigger deal than a $5,000 reduction in the purchase price, so ask the seller to pick up some of the closing costs as a part of the negotiation.

Credit for $5,000 to go toward closing costs will be a much greater bang for the buyer’s buck. The price reduction won't amount to much more than a few dollars per month over the length of the home loan. But saving $5,000 at the closing will be money right back in the buyer's pocket.

Sellers pay the commission

For sellers, there are always fewer line items on an estimated closing statement. But the seller generally bears the biggest brunt of the fees: the real estate commission.

The commission is based on a percentage of the total sale price, so it tends to be the biggest fee. In addition to the real estate commission, sellers may have to pay the balance of their property taxes, if they haven't done so already, as well as any prorated homeowners association dues.

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Note: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinion or position of Zillow.

Originally published December 6, 2013.

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These 7 Tiny Homes Are the Perfect Summer Getaway

Friday, May 26, 2017

5 Ways Home Buyers Make Their Agent's Job Harder

Buying a home can be a long and challenging process. It's a big, expensive and infrequent transaction that can cause lots of stress and anxiety.

Some buyers take years to complete a purchase, and they require a lot of hand-holding and make lots of requests. Others are more self-sufficient, and only bring in the agent from time to time.

Good real estate agents can accommodate any buyer at any time - as they should. We’re in the service business, and I always say the customer is always right.

But let's face it: All buyers (and all agents) are not created equal, and since buyers don't pay for the agent's time, there can sometimes be a disconnect.

Here are five buyer behaviors that can make life tough for agents.

Planning a (secret) price swap

It’s one thing for a buyer to ask a seller for a credit if the final home inspection uncovers a problem. But after you have a deal, planning to negotiate the price down without telling your agent is a big no-no. It adds stress and ill will among all parties involved, during what could already be a difficult transaction.

It's better to be upfront about your intentions. If the deal is not meant to be, it’s better to not go down the path at all.

Making unjustified lowball offers

The seller's property is on the market for $400,000, and it's worth close to that, based on recent comparable sales. And yet, a potential buyer offers $300,000 and won't budge on the price.

It's not because the home is grossly overpriced or there's something seriously wrong with it, but simply because the buyer wants a bargain.

Unjustified lowball offers can be a waste of time for everyone involved. The seller isn't going to swallow $100,000 for no reason, even if the property has been on the market a while.

In fact, a lowball offer will likely just help the listing agent get a small price reduction, thus opening the window of opportunity to another buyer.

It's certainly okay to offer less than the asking price, but be realistic.

Requiring too much during the showing

It's typical for a potential buyer to view a property during an open house, then ask for a private showing - even two or three times. That's par for the course.

However, it's frustrating when a buyer arrives to a showing with a designer, architect, contractor or just some friends, then spends an hour or two at the home checking out and measuring each room. This is counterproductive, particularly if you do it at one home after another and never make an offer.

Some buyers have even been known to bring their psychic, who, after making a big splash with tarot cards and numerology charts, declares that the property has "negative energy" and isn't a good fit, mainly based on the numbers in the property address. Did the psychic really need to see the property in person to figure that out?

Buyers typically give themselves an opportunity to gauge their own reactions to a property before bringing in friends, family or hired consultants. To go over a home inch-by-inch on the first or second visit is often a waste of everyone's time.

Demanding loads of attention early on

Some people are just beginning to think about buying a home. That's fine; buyers have to start somewhere.

Unfortunately, sometimes buyers are a year or two away from being ready to pull the trigger, yet they make a lot of demands on the agent's time.

Asking an agent to research city building permits on a house just because you're curious - and even though the property doesn't fit your requirements - is probably not a fair request.

Agents can't be as effective with their active clients if they're spending lots of time researching tax records or city permits for clients who are years away from being ready to purchase.

Changing your mind repeatedly

It's fine to shift course based on what you learn during the home shopping process. This is a common part of the buyer evolution process.

Many buyers set out for X but end up with Y after learning the market and seeing where their dollar goes. By the time you’re ready to start making offers and moving in the direction of acquiring a home, you will be laser focused.

But if you find yourself moving around and you’re uncertain about the object of your search, it's possible you just aren't ready to buy. That's fine. Take your time and learn the market.

The home-buying process is a journey, and a good local agent, brought in at the right time, can add so much value. Be mindful that agents work for free until a buyer or seller closes. Agents should be leveraged as a huge resource - when the right time comes.

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Originally published May 23, 2014.

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Thursday, May 25, 2017

Designer Lookbook: Elena Frampton's Sleek Pied-à-Terre

Manhattan interior designer Elena Frampton prides herself on striking a balance, be it with color, texture, or the eccentric design details she likes to refer to as "moments."

For a Westchester County couple who purchased a pied-à-terre in the tony enclave of Sutton Place, Frampton’s mission was to "create a sense of spaciousness" from the kitchen that extends to the bedroom.

A lighter, brighter kitchen

No stranger to gut renovations, Frampton eagerly tore down the kitchen wall to "create an elegant space that would be open," she says. Then she added an island that serves as a dining room sideboard.

Ceiling-high cabinets in a medium oak were selected for their "cleaner geometry," Frampton continues, while sky-blue tiles were chosen for color. "I love bringing color and texture into a kitchen," she says.

A square column that leads to the living room was rounded to make it more of a "sculptural element," Frampton says, rather than something obtrusive. "When we encounter something that appears to be a conflict, we ask, 'What can we do to make it something interesting and appealing?'"

In the same vein, Frampton selected a variety of eye-catching light fixtures. "I love bringing personality to spaces with sculptural, interesting items," she says, noting the surface-mount fixture and chandelier, both in the kitchen, that were made in the ’60s and ’70s.

"It's really about having fixtures and finishes that are elegant and suitable for an open living environment."

Spacious tricks for open living spaces

Mixing materials was also important when it came to the textiles. A brown leather couch makes a statement in a living room defined by beiges and grays, while a chunky knit blanket adds a touch of whimsy to an otherwise serene master bedroom.

"It doesn't feel too beige, and it doesn't feel too gray," Frampton says of the bedroom's palette, which is enhanced by art from Sears-Peyton Gallery in Chelsea, New York. The light on the nightstand is from Orange in Los Angeles.

For Frampton, the biggest challenge was creating a sense of spaciousness in an apartment that felt closed off. "The windows are not large," she says, "and the ceiling height is the standard eight feet."

To get around the problem, she used several wall-mounted lights, which take up little space, and painted the ceilings a shade lighter than the walls. "It makes rooms feel larger," she notes.

Back in the living room, a tinted mirror with an architectural frame was added to reflect the stunning view of the 59th Street Bridge outside.

Frampton also took risks where she could afford them, as evidenced by a fur-covered bench in the bedroom. Going back to the idea of balance, she says, "It's more about calibrating choices than tempering all of them." In other words, she carefully chose what she wanted to stand out.

"If art is your thing, or whatever it is that gives you joy, that's the area to take risks," she says. "It's not about whether it's trendy or if your friends like it. What are the things that bring you joy?"

Get the look at home

Follow Frampton's tips to get a tailored look in your own home.

Choose your moment. "Here, we decided to go vintage with light fixtures, but it could also be hardware or dining chairs," Frampton says. "Pick a moment, and find the right thing to focus on.”
Vary the palette. To make the bedroom's beige walls feel more of the moment, Frampton says, "We brought in art, and the art brings a lot to the story." It's also helpful to layer beiges and grays for a balance of warm and cool effects. "Mixing brings some complexity to the palette, even though it's neutral."
Always test the paint colors. "We test paint colors on-site to look at them in different lighting conditions," Frampton says. She also likes to sample "four or five neutrals on a wall."
Go a shade lighter on the ceiling. "We do our ceilings in the same shade as the walls, but one hue lighter so it all looks the same," Frampton says. "A ceiling inherently has shadows, so going one shade lighter makes it look uniform."

Photography by Joshua McHugh

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House of the Week: $100 Million Mansion Stocked With 177 Bottles of Bubbly

Put this one on the holiday wish list now.

You might have to beg, borrow, and steal to come up with $100 million dollars to afford this 7-bedroom, 11-bathroom Los Angeles mansion (or give up 20 million $5 lattes - trust us, we did the math), but once you do, you might not have to think of much else.

In addition to coming fully furnished with designer touches (Roberto Cavalli flooring, Fratelli Longhi doors in suede and leather), the home includes a gold Rolls-Royce, a gold Lamborghini and a private concierge for two years.

It's part of a trend of high-end homes hitting the market with bells and whistles already included, said real estate agent Drew Fenton.

"More buyers are wanting turnkey homes that come with extras, such as the art and car collection," Fenton said. "Time is money - and to accumulate, let's say, an art collection or car collection, takes lots of time."

The 20,500-square-foot mansion is perched above L.A. in a neighborhood dubbed “Billionaires’ Row,” because it is home to a number of high net-worth individuals.

The house offers views of downtown and the Pacific Ocean. A walkway is suspended above Beverly Hills' largest indoor pool, Fenton notes, with a 20-foot-high glass waterfall.

Motorized sliding doors open up to the deck, outdoor pool and vista.

There's a $2 million dollar art collection at the ready, along with a Champagne vault (177 bottles of Cristal are already stocked).

The house also has a 15-person home theater, and a so-called car museum with space to display 10 vehicles.

The developer is Nile Niami, who also produced movies such as "The Patriot.” His next project is a $500 million dollar mansion in Bel Air, which will include a "jellyfish room" - a space to relax as jellyfish swim around you.

Drew Fenton with Hilton & Hyland holds the listing.

Photos courtesy Jim Bartsch

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