Don’t spend too much money to prepare home for sale

Q: I am selling a house that has 25-year-old appliances. Is it worth investing in new ones? I am not sure we would get back what it would cost. -- via e-mail

A: I'm not sure you'd recoup your outlay either, but I'm under a handicap here. I don't know your market, and I don't know how expensive the house is or how poor the old appliances are. You can get better advice from local real estate brokers.

The standard "doll-up" advice is to paint, clean carpets, remove clutter and personal items, shine windows, keep the garage door shut and cut the grass.

It seldom pays to invest real money, but again, I don't know what the place looks like and what price level you're dealing with.

Gift house leads

to capital gains tax

Q: Five years ago, my dad gave his home to my brother and me for one dollar.

He lived there until he died, and his widow just moved out.

Now we have the home on the market. I was told we would have to pay capital gains tax on the profit back to when my dad purchased the property. Is this true?

We probably will sell for more than 10 times what he paid in 1961. -- J.B.

A: When you and your brother received the house, you also took over your father's cost basis, but that figure is much higher than his original purchase price.

It is increased by everything spent on permanent improvements since 1961. That includes new furnaces, landscaping and fences (but not maintenance), remodeling (but not redecorating) and even smaller items such as new fixtures.

The house probably has had more than one new roof over the years, and you can count each one (but not repairs).

The Internal Revenue Service says if you don't have bills, you should estimate as best you can.

So sit down and start making a list. You also can subtract the legal costs of buying and selling and real estate commissions from the sale price.

Rules, regulations no help

with pesky window grids

Q: We moved into a semi-retirement development almost 18 years ago. We pay monthly fees for maintenance.

We have always adhered to the rules and regulations. There is nothing in the rules about window grids.

The ones in our house are inside and very difficult to clean in those little squares. I can't put the grids back after washing the windows.

My husband has a head injury because he fell on the uncleaned sidewalk in front of our town house (that's another story) and is on Coumadin.

Every cut he gets is difficult to stop from bleeding, and he always gets cuts on his fingers from the sharp pins.

We left off some of the grids and received a letter that we aren't in conformity, yet directly next to us, the grids are off in back and she didn't get a letter.

Also, less than 24 feet from our patio is an ugly air conditioner that a past president allowed. That is on the outside and not in conformity, yet it is allowed, while we are told we must keep our window grids that are on the inside.

I feel this community should be allowed to enforce rules and regulations outside, but they shouldn't be allowed to regulate anything we own inside our home. -- D.L.

A: Those rules and regulations to which you agreed probably include something about the way the property looks from the outside.

Of course it's unfair that other people's violations are ignored, but I expect at your age, you already know that lots of things aren't fair.

It's a pity you have to be annoyed about the windows, but I can't imagine the problem comes up too often.

Just get someone's help when you need to put the grids back -- perhaps when someone younger comes to visit.

Or you could ask the development's maintenance people to do it for you.

That will be a lot easier than fretting about the matter when you have so much else to be concerned about.

New deed required for

wife to become co-owner

Q: My husband and I recently married. He wants to put me on the deed.

How do we go about this? Also, what constitutes a first-time buyer? Divorce, marriage, age? -- J.E.S.

A: To make you a co-owner, your husband can sign a new deed naming the two of you and see that it's entered in the county's public records. A lawyer can help with that simple procedure.

Any special mortgage program for first-time buyers will have its own rules about who is a first-timer.

Some even allow a borrower who has not owned a house for a given number of years to qualify, sort of like regaining one's virginity.

But if your husband already owns a home, I don't think you'd be eligible.

Edith Lank will respond personally to any questions sent to her at 240 Hemingway Drive, Rochester, NY 14620 (please include a stamped return envelope), or readers may e-mail her at ehlank@aol.com.