Category: Real Estate

Financial Advice from a Millionaire Who Used to be Homeless | GoodCall News

When Crystal Stranger was a teenager, she was officially homeless, living in a 17-foot trailer. She was working three jobs at the time, and spending her spare time reading every investment book in the library. Armed with knowledge of stock investing and a willingness to work hard, she saved enough money in a year for a down payment and bought her first house at age 21. She was a millionaire by 26.

Stranger has owned several businesses and a large real estate portfolio, and she went on to become an enrolled agent. She’s written books, including a small business tax guide and a financial guide for women.

She now works as tax operations director for 1st Tax Inc., offers business plan bootcamps and is a frequent speaker for organizations. She lives in New Mexico with her husband and their 3-year-old daughter; they have another girl due in January.

GoodCall caught up with Stranger to learn a little from her life experiences and vast personal finance knowledge. Some comments have been edited for clarity or brevity.

GC: How have your experiences when you were young affected your life today?

Stranger: My experiences when I was young certainly sculpted my world view in a way that was very different from my friends at the time. There definitely were tough times when my interests really alienated me from the people I knew. But I also developed a mentality of “why not?” that has allowed me to experience so much, I don’t regret the awkward moments at all. I would hope to raise my children with a similar world view, that they can do anything they put their minds to and teach them how to go beyond the daydream space that most people get stuck in.

GC: You bought your house when you were 21. Most people today would say young people won’t or can’t buy and choose to rent instead. What are your thoughts?

I was really determined to buy a house. For me it was symbolic as growing up we lived in rental houses forever and I wanted something more tangible in my own life. …

Still in many urban areas it just doesn’t make sense to buy, my rule of thumb is that if it costs more than 50% more to buy (including mortgage, insurance, taxes, and a maintenance reserve) over renting it isn’t worth it. But if you live in an area where you can buy for reasonably close in price to renting, or even less, it is the best decision you could make.

It is very cultural too. In Scandinavia it is common for young people to buy an apartment right out of college, sometimes even while still in university. This way they develop equity for that bigger house when they have a family. I would love to see this trend spread to the US.

GC: What advice would you give to someone who’s just coming out of high school about personal finance?

I would tell them to get started managing their own money, for the learning experience if nothing else. A lot of succeeding in the financial world is being able to see trends play out on a broader timeline. Most advisers recommend putting any amount away you can in a Roth IRA as young as possible, but I really think this is more beneficial if you use this in an account that you can make choices and learn from that. Better to learn lessons of what advice to follow and what to avoid with losses and gains in the hundreds than later in life with the risk being in the hundreds of thousands.

GC: What problems do you see with our economy and trends in consumer spending today?

As the economy improves and loan restrictions loosen, it is easy to envision people getting crazy again with credit card and home equity debt. I think it is a bit of a natural cycle, people have been very conservative, in general, over the last seven or eight years, and now there is a pent up desire to spend.

Some of this is needed, like right now the cost of used cars seems higher than normal compared with new cars, as more people have been buying used rather than new. We actually are buying a new Toyota pickup and it is crazy to me that the 3-year-old models are only roughly $2,000 less than what we are paying. Doesn’t make any sense.

There are lots of irrational aspects today in both consumer spending and the broader economy. Like how interest rates went up (recently) but the price of gold went down. The natural correlation of this should have them moving together as rising interest rates should indicate inflation, which would increase the value of gold.

This makes me nervous in the same way I felt nervous when I saw home ownership costs getting to be double or even triple the cost of renting back in the mid-2000s. The economy is so fundamentally strong right now I don’t think this will manifest itself as a real issue for years to come, but I am watching these issues as eventually there will be a problem from these irrationalities of the market.

GC: What are some things most people don’t know about their finances that they need to work on?

There is a lot of money to be found in small areas, like cutting out bank fees and watching cell phone or cable bills. Often the plans signed up for when opening these accounts change over time, and the pricing goes way up. Better deals can often be found with a little comparison shopping, or just calling the company to find out about updated specials. While it’s not fun to call and deal with these small amounts, they add up over time, and I would guess that most consumers probably have at least $100 a month they can trim off their bills if they pay attention. This extra $1,200 a year would go a long way for many people to have emergency or retirement savings.

GC: What books or thought leaders would you recommend?

I always go back to the classics for investment books. “The Intelligent Investor” by Benjamin Graham is a tough, technical read, but more comprehensive than anything else – a college degree in investing in one book. Peter Lynch’s books are a bit more palatable and an easier place to start as he gives explanations that are easier to follow.

For real estate investing, my old favorite was William Nickerson’s “How I Turned $1,000 into a Million in Real Estate in My Spare Time.” While some of the advice is comically dated, the fundamentals in that book are a conservative way to make it work…. His way of breaking down the numbers of real estate investments are especially valuable, as it is a no-nonsense way of evaluating a property that anyone with the most basic math skills can follow.

I’m also big on inspirational reading, as often the biggest obstacles to overcome are the internal fears when growing to a new level of success. Tony Robbins is great for this, and his books have helped many. The book that was most personally life-changing was a thrift store find: “The Dynamic Laws of Prosperity” by Catherine Ponder. I’ve re-read that book a million times when I had a rough moment, and it has often given me a new outlook when I needed it most.

GC: What else would you like to add?

Very few people have become rich from being pessimists. I think a big part of success is being optimistic and looking for opportunities. Finances can be a scary subject, but finding a playful way to look at it and to see mistakes as learning experiences is a big part of the process.

Many people act like 5-year-olds losing a game of Monopoly, throw the board away and say they never want to play again. Cutting up credit cards or keeping all money in cash is the adult version of these kinds of children’s game tantrums.

You have to be able to forgive yourself when you make mistakes and move forward to playing the next round. Because if you don’t play the game you can’t win.

 

10 Ways to Legally Reduce Your 2017 Taxes

Always consult your tax professionals before making any tax related moves

 

Just about all of us would love to fork over less money to Uncle Sam each year. You can probably think of some illegal ways to do so, such as lying on your tax return or omitting some income — but that’s clearly a bad and unappealing idea. Fortunately, there are plenty of ways to shrink your tax bill — legally. Here are a bunch of them.

Sock away money for retirement. Traditional (not Roth) IRAs and 401(k)s receive pre-tax contributions. So if you have taxable income of $75,000 and you contribute $5,000, you get to subtract $5,000 from your taxable income and avoid paying taxes on it now. (You will ultimately be taxed on it upon withdrawal in retirement, when your tax rate may be lower.) If you’re in the 25% tax bracket and contribute $10,000 to these accounts, you can cut your tax bill by $2,500! It’s also worth considering contributing to Roth IRAs or 401(k)s, though. They won’t cut your taxes now, but years later, in retirement, you can withdraw from the accounts tax-free.

1. Contribute to an HSA or FSA. Contributions to Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) are made with pre-tax money, too, so that’s another way to shrink your taxable income. Note that you need to have a qualifying high-deductible health insurance plan to be able to take advantage of HSAs. They can be well worth it, though, as they let savings accumulate and grow over time, not taxing withdrawals for qualifying medical expenses. Better still, after age 65, you can withdraw money from an HSA for any purpose, paying ordinary income tax rates on withdrawals. Any unused amounts can be rolled over from year to year, unlike FSA money, which is mainly use-it-or-lose-it from year to year. (Still, even that can be very helpful.) Contribution limits for Health FSAs are $2,600 for 2017. For HSAs, 2017 contribution limits are $3,400 for individuals and $6,750 for families. Those 55 or older can chip in an additional $1,000. 
3. Hang on to your investments. While most people currently face a 15% long-term capital gains tax rate, short-term gains are taxed at our ordinary income tax rates, which are often 25% or 28% and can approach 40% for very high earners. Don’t base stock-selling decisions solely on tax concerns, but if you’re thinking of selling a winning stock, consider whether holding it for at least a year and a day, to qualify for the lower tax rate, makes sense.
4. Buy a house — or sell it strategically. If you’re trying to decide whether to rent or buy a home, remember that mortgage interest is deductible — as are property taxes. And in the early years of a mortgage, much of your monthly payments is made up of interest. That shouldn’t be your only reason for buying instead of renting, but if you do decide to buy, it will help lower your taxes. Meanwhile, if you’ll be selling your home, learn about the home sale exclusion. If you meet the requirements, you can avoid paying taxes on up to $250,000 of your gain on the sale of your primary residence (and up to $500,000 if you’re married and file your taxes jointly).
5. Make the most of deductions. There are gobs of deductions available to taxpayers. Of particular interest are above-the-line deductions, which don’t require itemizing and shrink your adjusted gross income (AGI), on which your income taxes are based. Above-the-line deductions exist for expenses such as alimony payments, self-employment taxes, IRA contributions, school supplies, student-loan interest paid, and more. Regular below-the-line deductions can be quite valuable, too. They include donations to charity and qualifying medical expenses, among many other things. 
6. Bundle deductions. If you have trouble accumulating sufficient deductions to make itemizing worthwhile, consider bundling. That’s when you try to concentrate deductions in every other year, so that you’re able to itemize in one year and take the standard deduction in the next. For example, you might make annual charitable contributions in January and December of one year, and might pay deductible taxes that are due in January in December instead. If you have somewhat flexible upcoming major medical expenses (such as a hip replacement, cataract surgery, or braces for your teen’s teeth), you might move them up or push them back as needed.
7. Make the most of tax credits. Tax credits are more valuable than deductions because they shrink your taxable income on a dollar-for-dollar basis. For example, while a $1,000 deduction can save you $250 if you’re in the 25% tax bracket, a $1,000 tax credit can shrink your tax bill by $1,000. Tax credits are available for all kinds of things, such as education expenses, energy-efficient home improvements, the adoption of children, the care of children and dependents, and much more. A particularly powerful credit, if you earn relatively little, is the Earned Income Tax Credit. It can be worth thousands of dollars to those who qualify.
8. Have kids. Don’t base your family planning on taxes, but if you’re planning to have children, or more children, know that you’ll enjoy some tax breaks. For example, the Child Tax Credit offers $1,000 for every eligible child you have under the age of 17 (as of the end of the tax year), while the Child and Dependent Care Credit is worth up to $3,000 for a single child or qualifying dependent or $6,000 for two or more, and is tied to expenses you incur for the care of children or dependents that lets you work or seek work. There’s also a credit available if you adopt a child. Those adopting a non-special-needs child in 2017 can claim a credit of up to $13,570 depending on their qualified adoption expenses (and their income). Those adopting a special needs child from the U.S. foster care system can claim the entire $13,570 without having any qualifying expenses.

    

9. Make the most of being self-employed. Self-employed people pay twice what salaried workers pay for Social Security taxes, but they get some tax breaks, too. If you use a part of your home as a home office, you may be able to deduct expenses related to it, such as mortgage interest, utilities, repairs, insurance, and depreciation. For example, if you use 15% of your home’s square footage as an office, you might be able to deduct 15% of the qualifying expenses. There’s a simpler option available now, too, offering a $5 deduction per square foot of your home office, up to 300 square feet, for a maximum $1,500 deduction. Self-employed people have many other deductions they can take, too — so do look into them if you work for yourself. For example, while they may not have access to workplace-sponsored 401(k)s, self-employed folks can often contribute to SEP IRAs, which sport higher contribution limits than regular IRAs.
10. Hire a tax pro. Finally, one of the best ways to shrink your tax bill is to hire a good tax professional to strategize with you and perhaps prepare your return. Pros understand the tax code far better than you do, and they can offer many tax-reducing strategies, too. Don’t just hire anyone or go to a random tax-preparer, though — ask for references from friends or seek an “Enrolled Agent,” a tax pro licensed by the IRS who is authorized to represent you before the IRS if need be. You might find one through the website of the National Association of Enrolled Agents.

Spend a little more time investigating tax breaks and you may turn up even more ways to shrink your tax bill. But even using just some of the 10 strategies above, you may be able to shave hundreds or thousands of dollars off your taxes.

The Best Window Treatments for Sellers | Realtor Magazine

Window treatments offer many benefits to sellers: They can bolster the look of a home’s interior, making a positive first impression on buyers, allowing them to envision themselves in the home. They also offer the added value of privacy and potential energy cost savings, an aspect many savvy buyers will appreciate.

Furthermore, choosing the right window treatments may enable a seller to enhance a house’s curb appeal and could help a residence attract attention in a crowded real estate market.

Katie Laird, director of Social Marketing for Blinds.com, shares four window treatments that can transform a seller’s home and make it stand out in the market.

1. Faux Wood Blinds

Faux wood blinds will complement a home’s interior and exterior, regardless of a house’s size or style. Many faux wood blind options are available to match a home’s décor perfectly. From cordless blinds to moisture-resistant varieties, these blinds maintain their appearance and quality for an extended period of time.

Also, faux wood blinds replicate the look and feel of real wood at a fraction of the cost. The blinds even feature a synthetic material that makes them simple to clean and maintain.

2. Roman Shades

For those who are searching for eye-catching and versatile window treatments, Roman shades come in a wide range of fabrics, colors, patterns and styles, making them fit seamlessly into a range of décor styles.

The benefits of Roman shades extend beyond their appearance. Roman shades are attractive to buyers because they enable homeowners to control the amount of light that enters a room and act as a barrier against drafty windows, ensuring they can keep heat indoors in winter and sunlight outside in summer.

3. Vertical Blinds

Vertical blinds are stylish and practical window treatments. They feature vanes – narrow strips that hang from a headrail – that come in fabric, wood and vinyl. Vertical blinds deliver a lot of control as to how much light enters the home while maintaining privacy: a selling point for many buyers.

4. Honeycomb Shades

Honeycomb shades offer a number of advantages that help them stand out from other window treatments. First, honeycomb shades deliver exceptional insulation, allowing homeowners to lower their monthly energy costs. The shades have been shown to help improve acoustics in homes and are constructed in various pleat sizes for installation in all types of houses.

Honeycomb shades are offered in a broad array of bold and subtle colors as well and offer a modern look, serving as superior window treatments that are sure to stand out to home buyers.

Window treatments can make a world of difference for home sellers, particularly in a competitive real estate market. With any of the aforementioned window treatments at your disposal, you can enhance a home’s interior and exterior instantly.

Foreign Buyers: U.S. Is Tops for Real Estate | Realtor Magazine

The United States remains the world’s most popular choice for foreign real estate capital, according to the latest annual survey of overseas investors by the Association of Foreign Investors in Real Estate.

Ninety-five percent of global investors surveyed said they planned to increase or maintain their level of U.S. investment.

Nevertheless, investor caution is slowly growing surrounding U.S. real estate. The caution is being sparked over the uncertainty in policies and the legislative agenda of a new administration, rising interest rates, and closing gaps between interest and capitalization rates, says James Fetgatter, CEO of the Association of Foreign Investors in Real Estate.

The U.S. was the leading city worldwide for foreign capital for the seventh consecutive year. Further, New York ranked as the world’s top city for foreign capital for the third year in a row (followed by Berlin and London). Among U.S. cities, Los Angeles, Boston, Seattle, and San Francisco also appeared high on the AFIRE list.

Why 2017 May Be a Very Good Year to Sell Your House

Housing inventory has been below normal for more than two years now. That’s been true of new homes and existing homes, and the forecast for the new year is not a whole lot better.

According to data from the National Association of Realtors (NAR), the inventory of existing homes for sale had dropped more than 9% year over year from November 2015 to November 2016, to a total of 1.85 million, the lowest total since 2000.

New home building has picked up since reaching a trough of about 350,000 seasonally adjusted single-family home starts in early 2009. But the number of starts has yet to reach 1 million a month, a level it held reasonably steadily from the early 1990s until about 2008.

Housing prices rose nationally by around 6% in 2016, but the expected increase in 2017 ranges from 3% to 5%.

With inventory of existing homes at historic lows and a rise in interest rates thanks to the Federal Reserve, housing inventory for 2017 is almost certain to rise. For prospective sellers that means that if you were planning to sell your home this year, it’s time to get cracking.

Real-estate website Trulia Inc. (NYSE: TRLA) prepared a list of six reasons to get your house on the market now, rather than waiting for the spring selling season to arrive.

Low inventory
We’ve already discussed this one in general, but if you live in an area where buyers are thick on the ground getting listed now could result in a quick sale.

Buyer urgency
Generally speaking, buyers looking to purchase a home in the dead of winter are doing so because they have to, and the sooner the better.

Spring begins early in warm markets
Warm weather brings out buyers and spring starts early in a wide swath of the country. Don’t miss it.

Lower-priced houses move first
According to Trulia this is due to first-time buyers who have been saving for a down payment will add a tax refund to the pile and go shopping early for that first home.

A new administration in Washington
Possible political changes as a result of a Trump administration could have an impact on both buyers and sellers. If you think the effect on you personally is going to be negative, get the house listed soon.

More interest rate hikes
The Fed has all but promised more interest rate increases in 2017. Buyers who are stretching to meet debt-to-income ratios won’t be able to wait.

Self-made millionaire: Buy a home

While opponents of homeownership claim it’s “the American nightmare,” self-made millionaire David Bach is doubling down on his faith in real estate.

He thinks that not prioritizing homeownership is “the single biggest mistake millennials are making.”

Buying a home is “an escalator to wealth,” he tells CNBC.

 

Young adults in particulararen’t hopping on this escalator, and it’s a costly mistake, Bach warns: “If millennials don’t buy a home, their chances of actually having any wealth in this country are little to none. The average homeowner to this day is 38 timeswealthier than a renter.”

The self-made millionaire is quick to say that the smartest investments he’s ever made have been the three homes he’s purchased. He tells CNBC: “I first bought a home in San Francisco. It skyrocketed in price. I moved to New York and bought another home. It skyrocketed in price. My net worth has gone up millions and millions of dollars, simply because I’ve lived.”

 

Courtesy of David Bach

Self-made millionaire and bestselling author David Bach

Bach argues that you have to live somewhere for the rest of your life, so you might as well invest in a home that you could own permanently.

As he writes in “The Automatic Millionaire,” “As a renter, you can easily spend half a million dollars or more on rent over the years ($1,500 a month for 30 years comes to $540,000), and in the end wind up just where you started — owning nothing. Or you can buy a house and spend the same amount paying down a mortgage, and in the end wind up owning your own home free and clear!”

If you want to get in the game of homeownership, start by crunching the numbers, Bach says: “Actually do the math. Look and see what things costs, starting with the smallest options. This way, you’re really clear on your goals and you won’t just say to yourself, ‘I’ll never afford this.'”

A good rule of thumb is to make sure your total monthly housing payment doesn’t consume more than 30 percent of your take-home pay. He also recommends having a down payment of at least 10 percent, though more is always better. Finally, recognize that “oftentimes, buying your first home means you’re not buying your dream home,” Bach tells CNBC. “You’re just getting into the market.”

A lucrative market, that is. “The fact is, you aren’t really in the game of building wealth until you own some real estate,” Bach writes.

 

Should you buy a ‘forever’ home or a ‘for now’ home?

Buying a home can be a stressful process. Spending hundreds of thousands of dollars is not a small decision. When looking for a home, most buyers always want to find a dream home with every item on their wish list. When you are house hunting, here are some criteria to decide if it is time for that forever home or a for-now one.

Budget

The biggest determining factor for most people is their budget. Can you afford a dream home, or is that something for the future? And be realistic on what dream home you will be able to afford in the future based on your current income and savings. Because real estate typically appreciates in value, with some big, noted exceptions, many homeowners buy a home with a mortgage, and as the value and their savings increase, they can sell the home and upgrade to a better one in the future. I always advise buyers to consider their monthly payment versus the purchase price, be comfortable with what you will be spending each month.

Family size

If you are single, buying a home more suited to a family of may not be sensible. In those cases, you are better off buying a “starter home,” maybe even a condo, PUD or small house, then later upgrading to a bigger home once you need the extra space. However, if you find a great deal, there is nothing wrong with buying a longer-term home. Just keep in mind that more expensive homes typically have higher property taxes, and your dream location may change in the future as your family or status changes.

Location

If you are a young partier, why not live close to downtown or where you can get to a the Bay Area quickly while you’re young and save the house in the suburbs for later? Location is one of the top criteria for almost every buyer I work with, so you should always weigh the pros and cons of any home location: Is it good for now, for five years or even longer.

 

Career

If you are going back to school to upgrade your career, you may want to move for a better job in the not-so-distant future. If your job is stable and it’s one you enjoy, your career shouldn’t stop you from buying a home. If you predict any big changes in the near future, you should hold off on buying a forever home, or any home, until everything is sorted out.

Wanderlust

Some people just like to pick up and move. That’s OK. But if you have that tendency, paying closing costs to buy and sell homes frequently can quickly drain your resources. If you are moving around regularly, hold off on buying a forever home until you find a place you are ready to call home and set up roots or consider buying as an investment and renting out your starter home when you find your forever home.

Buying a forever home or a for now home

Whether you are looking to buy a forever home or something else, talk to a trusted, qualified Realtor and mortgage professional to help you get started. Remember, this is your investment and you should always feel good about making the right decision.

Buying a Home in 2017? These 5 Things Could Jeopardize Your Mortgage | Fox Business

Shockingly, enough people still do things that can cause themselves heartache when applying for mortgages. Here’s what you need to know if you’re thinking about buying a home in 2017.

Your ability to buy a home rests on the numbers and documentation your mortgage lender has. If there is a change to any of these, your chances of buying a home can be jeopardized. This means that when there is a change to your credit, debit, income assets, or job during the escrow process, you might not be able to buy that house and you’ll risk losing your money. Here are five things to watch out for.

1. Applying for Credit

After you get a contract to buy your house, it’s best not to apply for any credit. This means not applying for car loans, credit cards, utility bills, cell phone bills or any other form of credit whatsoever. Doing so could change your credit score and impact your rate lock and/or fees associated with closing on the house. (If you want to see where your credit stands before applying for a mortgage, you can view two of your credit scores Opens a New Window. , updated every 14 days, for free on Credit.com.)

2. Changing Credit

You don’t want to close out or dispute any credit cards. If you have any accounts in dispute, the mortgage lender cannot run automated underwriting and they must pause your loan file until your accounts are taken out of dispute. If you close your credit card, that can hurt your credit score, which in turn can increase your fees or put your ability to buy a home at risk.

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3. Moving Money Around

Moving money around Opens a New Window. can cause more headaches than necessary. If you are receiving gift funds, the donor can wire the funds directly to escrow, bypassing your bank account entirely. If any of these funds happen to hit your primary checking account, that could spell more trouble, as it could appear as though you are spending your cash to close.

4. Switching Jobs

Changing jobs and getting into contract with the proper documentation is one thing. Signing a purchase contract and changing jobs is something else entirely, as most mortgage banks typically want you to have your job for at least 30 days. Some lenders will also want a pay stub, an offer letter and verification of employment prior to closing on the home. Word to the wise: Close on the house with your current job, if possible.

5. Shopping for Your Move Before You Actually Close

Hiring a moving company when you have not signed your final loan documents is just plain unnecessary and it sets you up for failure. If you have a moving company come on a certain day and for whatever reason your house doesn’t close, things can become problematic. Hire a moving company after you’ve signed the final loan documents. Same goes for purchasing furniture, especially if those funds come in the form of credit or cash in the bank — close on the house first, then go shopping. Short-term gratification is not worth the risk.

By adhering to these steps after you sign your purchase contract, you will be well on your way to successfully closing escrow with little or no hiccups.

4 Surefire Tips for Better Listing Photos | Realtor Magazine

It can’t be stressed enough: Great photos help sell homes. The National Association of REALTORS®’ own research shows that well over 90 percent of home shoppers look online for at least a part of their search. For almost half of all buyers, accessing digital listings is the very first step in their process. And while there’s been much speculation as to the homebuying behaviors of millennials, this much is known for sure: Digital natives are much more comfortable with browsing home listings from mobile devices.

None of this is breaking news, but it does highlight just how important digital representation can be when you’re trying to show a home. One industry study found that when listings were accompanied by high-quality photos taken with professional equipment, they spent significantly less time on the market and fetched a premium of $3,400 on average.

Unfortunately, interior shots pose a variety of photographic challenges that are difficult for amateur photographers. Real estate pros shouldn’t be expected to transform overnight into professional camera wielders, but you can certainly benefit from a few tricks up your sleeve and some decent equipment.

Don’t Turn Toward the Light

This scenario might feel familiar: You want to show off the new windows in your client’s living room, but every time you snap a photo, the image is totally blown out. Photos with dark foregrounds and overexposed windows are a common problem that happens when ambient light from the outdoors tricks the camera’s light meter into overcompensating. A flash will balance out the lighting in the room, giving you a better shot. Alternatively, you can use your camera’s manual controls and settings. The right settings depend on the kind of equipment you have, however. For many point-and-shoot digital cameras, it’s mainly a matter of adjusting the ISO, although you may want to set the aperture to f/2.8 as well, if your camera offers that flexibility. For shots near a window, typically an ISO setting of around 400 to 800 works well, although you may want to go higher if you have particularly low light in the foreground. If you have full manual control of your camera, you can increase the shutter speed, which will allow less light into the camera sensor.

Try HDR Tonemapping

The main problem with photographing daylit interiors is that it’s difficult to balance between ambient daylight, artificial lighting, and dark shadows behind walls and in rooms away from the foreground. This situation presents a range of different exposures, and while the human eye automatically adjusts for the various levels, the camera will have a hard time making sense of it all. HDR, which is short for high dynamic range, is a common tool for handling such lighting situations. In essence, the photographer takes three or four photos in rapid succession, which are then combined into one image using specialized software like HDRSoft. Usually, one shot is at normal exposure, one is overexposed, and one underexposed. When those three exposures are combined into one, you’ll see all the details that the human eye can perceive. This results in photos with a vibrant, luminous quality.

Many point-and-shoot cameras have an exposure value meter, which can help you compose under- and overexposed shots. Generally, the meter reads a value of zero on the normal setting, +1 or +2 for overexposed shots, and —1 or —2 for underexposure. Use a tripod so you can play with different exposures while maintaining the same angle on each shot. You’ll also want to make sure automatic flash is turned off for this method. It takes time to perfect this technique, of course, but it can help you capture more detail in challenging settings.

Buy the Right Equipment

Unless you have a surgeon’s steady hands, you’re going to need a tripod in some situations. A tripod helps compose poised shots and avoid blurry photos, but it’s also incredibly important if you’re dabbling in HDR or mixing up shutter speeds. The longer your exposure time, the more likely it is that subtle movements will show up in the final product. You should use a tripod anytime you nudge the ISO to a higher range. Also, if you’re taking wide shots of the home’s exterior or enlarging your photos, even the tiniest shake will be a lot more obvious. In certain conditions, even the slightest breath can create a shaky shot. Avoid this dilemma with a lightweight foldable tripod.

You may also want to invest in a point-and-shoot with a wide-angle lens. When buyers are browsing through real estate listings, they really want to get a sense of the space. But that’s difficult to translate into photos unless you have a wide-angle option. This is important not just for exterior shots but for indoor compositions as well. A wider lens in the interior gives rooms a sense of luxury and space that you just can’t get with a regular shot. Point-and-shoot cameras that have a large range in their focal length specification are ideal; the lower the value at that end of the range, the wider the shot will be.

If you’re really interested in refining your shots, you’ll want a camera with manual controls that allow you to adjust shutter speeds on your own. Or it may be time to graduate to a digital single-lens reflex camera, especially if you want to experiment with wide-angle lenses (with focal lengths under 35mm, used for very wide shots). DSLRs have come down in price recently, especially since manufacturers like Canon and Nikon have introduced entry-level DSLRs aimed at beginner photographers. Usually these run for around $300 to $700, and they are available with bundled lens kits to get you started trading out lens lengths for sharper photos.

Get Rid of the Clutter

Staging photos ahead of time by cleaning off counters, tabletops, and floors can turn an ordinary listing into a real stunner. Clear your photography appointment with your client before you arrive, and tell them to clean, clean, clean. Even a detail as minute as a crooked picture frame or a rolled carpet edge can detract from your photos, so be sure to run over your shots with a fine-toothed comb. Decluttering means no power cords or vacuum cleaners in the shot—but it doesn’t mean completely sterile surfaces. A few welcoming touches like a stack of books, a vase of flowers, or a set of candles will make the space feel lived-in and homey. After all, that’s what you’re really selling anyway: a vision of buyers’ future lives in a new and welcoming abode.

Wish You a Very Happy and Prosperous New Year! 2017! May the new year shower upon you all the deserved success, happiness and health!

Thank You, Yajnesh Rai – “Yaj”

Team Yaj, Keller Williams Silicon Valley

Real Estate Consultant, Broker Associate, CNE

 

2110 S Bascom Ave, #101, Campbell, CA

408-547-7845 | www.YajneshRai.com

www.Facebook.com/YRConsultant

CalBRE# 01924991