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Wednesday, September 26, 2012

POSITIVE INDICATOR OF HOUSING RECOVERY

Home Prices Rebound to 2003 Levels
Posted REALEstate Information,Real Estate News,Real Estate Trends,Today's Marketplace,Today's Top Story | Comments Disabled
[1]More great market news came through yesterday: According to S&P/Case-Shiller, in July, the average home price rose to the same level as those seen during summer 2003, when the housing boom first started its journey toward the 2006 peak. While this may not signify that we are currently standing on the cusp of a market boom, it does show a significant turnaround, and perhaps hints at a definite end to real estate’s bleak streak.
The recent S&P/Case-Shiller national home price index showed that in July, prices increased by 1.5 percent for the 10-City Composite and by 1.6 percent for the 20-City Composite.

Tuesday, July 31, 2012

RETURN ON INVESTMENT?

3 tips for sellers considering costly driveway repair

REThink Real Estate
By Tara-Nicholle Nelson
Inman News®
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Q: My wife and I are planning to retire in 2015. We will sell our home and relocate. We're looking at things we should do now to make our home more marketable. We are already in a high-demand community near major military bases and employers in Virginia. Homes sell fairly well here, even now.
While our concrete driveway is sound, it does have numerous noticeable cracks in it.
A replacement driveway costs around $10,000. My attempts at repair only make it look worse. For a roughly $300,000 home that's in otherwise pristine condition, is this large expense worth it for sale purposes? --Roger
A: First off, you and your wife are essentially a listing agent's dream, in that you're thinking and planning a couple of years in advance on how to best prepare your property to sell. Big kudos!
There are several things you should factor into your decision regarding your driveway:
1. Get local, expert input on how buyers will view the cracks. If homes move quickly in your market due to high demand and premium location, it's entirely possible that your driveway's cosmetic cracks -- assuming they truly are cosmetic, and the driveway is sound -- might have little or no impact on getting it sold. However, it's also possible that a buyer might see very major or deep cracks and assume they are more than cosmetic, making someone who would otherwise make an offer hesitate and/or guess at repair or replacement costs and factor that into his offer price.
Also, a local broker or agent can give you their opinion on whether the cracks are so severe that a buyer's appraiser is likely to call them out as a health and safety hazard (some concrete cracks in areas of high foot traffic can be deemed a "trip" hazard).
Look around at the other homes on the market in your area and the state of their driveways to get a sense for how yours will come off to a prospective buyer. I would urge you to contact several listing agents in your area and ask them for their input; they know what buyers in your area care about, and can also just take a look at your driveway and see how "noticeable" the cracks will be to a prospective buyer.
2. Don't expect a huge ROI -- or any at all. That said, if you do end up deciding to replace the driveway, don't expect to get some weighty return on your investment (ROI), like that your home will sell for $10,000 more than the neighbor's. For the most part, these sorts of things are considered more maintenance than home improvement. For your purposes, that doesn't mean you shouldn't do it, it simply means that if you do it, consider what you spend an investment in getting the place sold -- period.
If every other home in the area has a crack-free driveway and yours appears to be crumbling to pieces, whatever you do to repair or replace it will simply bring your home up to the standard of the competition; in fact, if you decide against repairing it, you should not be surprised to see buyers look for a discount based on the condition (again, assuming these cracks really are that noticeable).
3. Rethink your inputs and assumptions. Will it really cost $10,000 to fix your driveway? Consider getting some actual contractor bids. And are you sure that it's beyond being professionally resurfaced, as opposed to entirely replaced? I understand that there may be epoxies and overlays that may cost less than a total replacement.
Overall, as you take on the project of preparing your home for resale, I would strongly encourage you to get friends and family members to refer you to a local agent you can trust, and meet with a couple of these experts for their recommendations and advice on which things do and do not belong on your to-do list. Also, local brokers and agents can be great sources for contractors they work with on a repeat basis to get homes ready for resale.

Tuesday, May 22, 2012

KITCHEN IMPROVEMENTS

Low-Cost Kitchen Improvements for Any Home

 
Not every home owner can splurge on a total upscale kitchen redo, now pegged on average at $111,000, according to the latest Cost vs. Value Report from Remodeling magazine. Many home owners don’t even have the funds for a minor kitchen remodeling project, which is placed at around $20,000.
But a lack of funds isn’t necessarily the only issue. Even home owners with fat wallets and a love of congregating and cooking in a stylish kitchen may not want to invest so much, given the up-and-down nature of today’s housing market.
Specifically, two factors are holding back home owners from taking on kitchen redos:
▪ There’s no guarantee that prospective buyers will like, say, the sellers’ tangerine-painted walls — even if orange is oh-so-chic these days — or that a restaurant-style range will win them over, especially if they’re better at calling for reservations or take-out.
▪ The dollars invested may never be recouped, no matter how long home owners stay put. An upscale overhaul will return only about 57 percent of the money spent on the project, and a mid-range redo about 66 percent, according to the Cost vs. Value Report.
But the good news for those who still feel their current kitchen won’t do is that there’s loads of inspiration to appeal and borrow ideas from — those handsome rooms shown in the background of Food Network programs and other TV shows and movies, for example, or glossy home and design magazines.
The kitchen remains an important gathering space for many home owners — and one of the first places would-be-buyers look to decide if they’re interested in a purchase. Because of that, it should be a goal to make the kitchen as nice as possible with the funds at hand. Even if a seller or real estate agent has $20,000, $10,000, or just $5,000 to spend, those dollars can deliver a lot to make the kitchen look and function better.
Here are a dozen low-cost ideas you and your clients can use to improve this critical room:
▪ Paint remains the least expensive change agent. Home owners should take their cue from other colors in the room that are likely to stay — the “nonperishables,” says Chicago-based designer Mary Lou Kalmus. It might come from the backsplash or floor tile, or if the entire room is swathed in neutrals, it could be colors in the rest of the house, such as in an adjacent family room. Because the kitchen gets heavy use, it’s best if they use at least an eggshell rather than a flat finish.
▪ Backsplash tiles can be replaced, but Kalmus suggests home owners do so from the base of the upper cabinets down to the countertop — a full 18 inches is recommended. Top on her list of favorite choices are glass or newer-looking metallic tiles. She also suggests running them vertically rather than horizontally for a less-expected look.
▪ Replacing a countertop or two can help a room make an instant, fresh impression. And if money’s tight, home owners can go with a laminate rather than granite. To prevent laminate from scratching or showing burn marks, a textured choice is best.
▪ Tell clients to go with decor icons such as stainless steel that tend to appeal universally, says design expert and author Christopher Lowell, based in Santa Fe, N.M. They can start by replacing some dated and dysfunctional appliances with purchases at places like Sears or Costco, which offer professional-style models that bring a restaurant look at affordable prices. Once home owners introduce stainless options, they may want to run with the idea throughout — e.g., paper towel holders, trash cans, and cookware, Lowell says.
▪ If all the older appliances can’t be replaced, home owners might be wise to focus on one or two, which can still make a difference. Because the refrigerator may be the largest item in the room, Kalmus suggests changing it first if it’s old or small and considering a model with French doors, which offers the plus of storing larger items inside both the refrigerator and freezer sections and having a freezer on the bottom. For highly efficient cooking, plus the advantage of having instant on-off heat, an induction cooktop is another wise new appliance choice, though the newer technology often costs more. And even a new hood that’s more updated or visually interesting can provide a good focal point, says Los Angeles–area designer Christoper Grubb, president of Arch-Interiors Design Group.
▪ Betterlighting can make a huge difference in how much time home owners want to spend in their kitchen and how well it shows to buyers. The best spaces incorporate three essential layers: recessed lighting for an overall effect, with 4-inch rather than 6-inch cans for a less obtrusive look; undercabinet lights to perform tasks, with efficient LEDs or xenon bulbs for quality and energy efficiency; and a decorative fixture or two for mood-making such as pendants, sconces, or a chandelier. Bulbs should depend on manufacturers’ recommendations, but now often are halogens or incandescents. “The decorative choices can add a new design vocabulary to the room,” says San Francisco architect Christian Dauer.
▪ Small 8-inch floor tiles can quickly date a room, as can busy patterns. So replacing them with 16- to 22-inch porcelain floor tiles may make good economic and design sense, as well as decrease maintenance. A bigger budget may permit natural stone. Dauer is keen on wood floors since they’re easy on feet and favors bamboo and cork or a repeat of a wood used elsewhere in the home.
▪ Top on the “get-rid-of list” for many home owners are dark, dated cabinets. But since cabinetry represents 60 percent of many kitchen remodeling budgets, it’s often not possible to replace it totally. Several possibilities exist: Replace the doors or take a less expensive route and repaint them, suggests Kalmus, who also offers some caveats. Be sure the interiors still offer enough room and work well, or else the solution is just a temporary Band-Aid she says, and be sure the paint will cover well since sometimes it won’t if they’re very dark. “Full-overlay doors, for example, usually can be refaced, but the sides may first need sanding and prepping,” Dauer says. For a different punch, Lowell suggests replacing one or two doors in frosted glass within stainless steel frames, while Grubb throws out the idea of removing the fronts completely for a European look. In most cases, new spiffy knobs can make a huge improvement.
▪ For those without sufficient storagea common complaint of older or poorly arranged kitchens — try finding a closet even if not right in the kitchen but in an adjacent space. The best pantries are equipped with shelves of different heights to arrange a variety of canned goods and with pull-out drawers to make reaching to the back easier.
▪ Because open layouts are high on many buyers’ wish lists, taking down a wall or part of one between a kitchen and adjacent space should be considered if the kitchen is small and closed in and the wall isn’t a load-bearing, supporting one. Be careful that vents aren’t running through it, or be prepared to replace them, Kalmus says. If this isn’t possible, home owners might change out windows or doors for better light, views, and insulation. A new greenhouse-style window can become a spot to grow herbs and small plants.
▪ If home owners have room for an island, but are tight on funds, they might buy a gleaming, stainless-steel, counter-height table from a local restaurant supply store with a shelf underneath, add a few chopping boards from the same supply, and create a professional-looking center they can take with them, says Lowell. This addition also helps free other countertops of clutter.
▪ If the ultimate goal still is to gain a brand new kitchen when dollars permit, a better use of limited funds may be to hire an architect or designer skilled in kitchen planning to draw up a detailed layout that can be bid out later. Many design pros charge a flat fee or hourly rate. Dauer says the price will vary depending on the part of the country, size of the room, wish list, and extent of the remodeling work — if plumbing or HVAC systems need to be changed or walls taken down. His best guess is from $135 on up per hour. Chicago architect Allan J. Grant pegs it at between $90 and $150, depending on the person’s experience, plus reimbursable expenses.

Friday, May 11, 2012

MAKING A HOUSE YOUR HOME

5 Basic Steps to Make a House Your Home
   [1]Are you looking to buy your home for the first time? Congratulations! While this is an exciting time, knowing what you are in for can ease the process exponentially. Below are a few steps you can take to find your dream house, and make it into your new home.
Learn About Homeownership
Owning a home requires a large investment of time, money and energy, so make sure you are careful when making your decision to buy. To answer all of the questions you may have, participate in a first-time homebuyer class at a local non-profit agency in your community.

Monday, April 30, 2012

MARKET RECOVERY: 2012

March Pending Home Sales Rise, Market Recovering
  [1]Pending home sales increased in March and are well above a year ago, another signal the housing market is recovering, according to the National Association of REALTORS®.
The Pending Home Sales Index, a forward-looking indicator based on contract signings, rose 4.1 percent to 101.4 in March from an upwardly revised 97.4 in February and is 12.8 percent above March 2011 when it was 89.9. The data reflects contracts but not closings.
The index is now at the highest level since April 2010 when it reached 111.3.

Thursday, April 26, 2012

New Rules Aim to Speed up Short Sales

  [1](MCT)—The short sale process could get a lot quicker starting this summer under new rules that will require lenders to respond to offers within a month.
Fannie Mae and Freddie Mac, the nation’s two largest mortgage backers, will implement the guidelines on June 15. The changes require mortgage servicers to make a decision within 30 days of receiving a short sale offer. They also must consider requests for pre-approved short sales within that same timeframe.
If the lender needs more than 30 days, it must give borrowers weekly status updates and a decision within 60 days of the initial application.

Monday, April 23, 2012

HELPFUL HINTS: HOW TO CLEAN YOUR GUTTERS

Home Trends: How to Clean and Repair Gutters
  [1]Cleaning roof gutters is a small task that can prevent big problems. Every spring and fall, thoroughly cleaning your home’s gutters will keep them working like they should. Leaves can build up and clog the downspouts, which can cause water damage to your roof and fascia (board behind the gutter).