That's always the question when it comes to renovations: Will the investment you make to upgrade your home come back to you when you sell? No matter where you live in the United States, there's a guide to help you decide.
Making that renovation decision is not only about money, of course. Sometimes it's a question of needing more space and choosing whether to stay and expand or move to a new house. It might be that you simply can't stand to see that 1970's era avocado green kitchen any more, or the turquoise and black tile in the bathroom. But after you've dealt with all the emotional and family issues, there's still the cost. Will you get your money back when the time comes to sell?
For the 19th year, RemodelingOnline has published its Cost vs. Value Report. This comprehensive report looks at the cost of 25 different remodeling projects. They combine that with data collected from more than two thousand Realtors® on resale values, and present the results in chart form. There is a chart for the country as a whole and for each of nine regions of the United States.
And the winners are…(drum roll, please)…the two rooms with the most plumbing! Nationwide, the projects that return the most at sale are kitchen remodeling – either minor or major – and bathroom remodeling. In the Pacific (West Coast) region, RemodelingOnline found that a minor kitchen remodeling or bathroom remodeling are actually worth MORE at resale than they cost.
Of course, you always want to use good sense on any home improvement project. Before choosing a contractor, seek recommendations from friends and family. Ask the contractor for proof of insurance and a written commitment to price and schedule for your work. Read the contract carefully and don't sign anything unless you understand it completely.
If the time has come for a change around your house, by all means do what's right for your family's needs. Using the Cost vs. Value Report, you'll have confidence that the choices you make will also suit your financial needs.
Tuesday, January 30, 2007
Thursday, January 18, 2007
Does Your Home Need Staging?
When you make the decision to sell your home there will be scores of items on your "To-Do" list. Your Realtor® will talk about what to expect from listing to settlement, and one of the topics will certainly be how to prepare your home to show to best advantage.
You can find plenty of tips on getting your home ready to show, and you probably know the most common ones:
• Look at your home through the eyes of a buyer – inside and out
• De-clutter and when you think you've done enough, de-clutter some more think of it as packing sooner rather than later)
• Make sure everything works – appliances, faucets, light switches
• Make everything look fresh and clean – paint, replace carpet, clean the windows
• Make your home welcoming when buyers are coming – soft music, scent of cinnamon
Recently, "Staging" has become a popular means of getting your home ready for viewing. Staging includes all the tips above, and more. A professional stager can look at your home from a fresh and unemotional perspective. Using a combination of your furniture and new or rented furniture and accessories, a stager can turn your house into a model home.
First impressions count, and we know that potential buyers form an opinion about each house they see within seconds of approaching the door and going inside. Staging a home is like designing a movie set; you create an environment in which the buyers can visualize themselves living happily ever after. For this reason, staging is especially important and valuable if you have already moved and the house is empty.
Home staging can be a good investment - a staged home usually sells faster and at a higher price, regardless of the state of the real estate market in your area. Make the effort to stage, and your home will be ready for its close-up!
You can find plenty of tips on getting your home ready to show, and you probably know the most common ones:
• Look at your home through the eyes of a buyer – inside and out
• De-clutter and when you think you've done enough, de-clutter some more think of it as packing sooner rather than later)
• Make sure everything works – appliances, faucets, light switches
• Make everything look fresh and clean – paint, replace carpet, clean the windows
• Make your home welcoming when buyers are coming – soft music, scent of cinnamon
Recently, "Staging" has become a popular means of getting your home ready for viewing. Staging includes all the tips above, and more. A professional stager can look at your home from a fresh and unemotional perspective. Using a combination of your furniture and new or rented furniture and accessories, a stager can turn your house into a model home.
First impressions count, and we know that potential buyers form an opinion about each house they see within seconds of approaching the door and going inside. Staging a home is like designing a movie set; you create an environment in which the buyers can visualize themselves living happily ever after. For this reason, staging is especially important and valuable if you have already moved and the house is empty.
Home staging can be a good investment - a staged home usually sells faster and at a higher price, regardless of the state of the real estate market in your area. Make the effort to stage, and your home will be ready for its close-up!
Wednesday, January 10, 2007
Three Resolutions You Can Actually Keep
You know those resolutions we all make about getting in shape and eating right each New Year – how are you doing?
If it's not going so well, you're not alone. But don't waste time feeling bad about it. Instead, replace those tired resolutions with a few that you actually can keep. Forget about giving up a favorite food. Instead, think of these three resolutions that will help protect what you have now and build for the future.
1. Manage that mortgage. If you have an adjustable rate mortgage, consider converting it to a fixed rate. 30-year mortgage rates are still relatively low, and if you aren't feeling the pinch yet, that ARM could soon start eating you up. If you have a fixed rate mortgage that's more than a few years old, look into whether you could save by refinancing at a lower rate.
2. Improve your home and your tax bill. If you have been considering some home improvements, look into taking a home equity loan rather than financing them through a credit card or other loan. Interest on a home equity loan can be deductible just as is mortgage interest when the funds are used for home improvements. Depending on the type of improvement, you may be able to recover most of the cost through the increased value of your home when you sell it someday.
3. Keep Uncle Sam's hand out of your pocket. Do you usually get a tax refund because you pay in too much over the year, either through payroll deduction or by estimated payments? Don't do it! Sure, that refund feels like found money, but all you've really found is money that you might as well have buried in the back yard. Uncle Sam had your money for months and paid no interest – zip. He didn't even say "Thank you." Talk with your tax professional to calculate your withholding or estimated payments so you come out as close as possible to what you owe each year. Then don't spend the extra you take home, but instead increase your savings either through an IRA, a 401(k) or similar plan, or a well-managed investment plan.
For all of these you'll want to have some expert advice from your tax and financial adviser. Always consult your professional before making a decision about changing your mortgage, taking a home equity loan, or changing your withholding and/or estimated tax deposits. It will be time well spent and give you peace of mind.
And as for those other resolutions? Well, there's always next year!
If it's not going so well, you're not alone. But don't waste time feeling bad about it. Instead, replace those tired resolutions with a few that you actually can keep. Forget about giving up a favorite food. Instead, think of these three resolutions that will help protect what you have now and build for the future.
1. Manage that mortgage. If you have an adjustable rate mortgage, consider converting it to a fixed rate. 30-year mortgage rates are still relatively low, and if you aren't feeling the pinch yet, that ARM could soon start eating you up. If you have a fixed rate mortgage that's more than a few years old, look into whether you could save by refinancing at a lower rate.
2. Improve your home and your tax bill. If you have been considering some home improvements, look into taking a home equity loan rather than financing them through a credit card or other loan. Interest on a home equity loan can be deductible just as is mortgage interest when the funds are used for home improvements. Depending on the type of improvement, you may be able to recover most of the cost through the increased value of your home when you sell it someday.
3. Keep Uncle Sam's hand out of your pocket. Do you usually get a tax refund because you pay in too much over the year, either through payroll deduction or by estimated payments? Don't do it! Sure, that refund feels like found money, but all you've really found is money that you might as well have buried in the back yard. Uncle Sam had your money for months and paid no interest – zip. He didn't even say "Thank you." Talk with your tax professional to calculate your withholding or estimated payments so you come out as close as possible to what you owe each year. Then don't spend the extra you take home, but instead increase your savings either through an IRA, a 401(k) or similar plan, or a well-managed investment plan.
For all of these you'll want to have some expert advice from your tax and financial adviser. Always consult your professional before making a decision about changing your mortgage, taking a home equity loan, or changing your withholding and/or estimated tax deposits. It will be time well spent and give you peace of mind.
And as for those other resolutions? Well, there's always next year!
Thursday, January 04, 2007
Know Your Comps to Get the Best Price
Setting the right price for your house at the start is always important, especially during a buyer's market. But how do you know what the right price is – the price that will make your house sell quickly and for a price you're happy with?
For starters, you'll need the comps. Comparable sales of houses in the same area in recent months are one of several factors that your Realtor® will consider as you work together to set your asking price. Note I said "sales" not "houses for sale." The price of other houses for sale only tells you what other owners hope to sell for. Sales tell you where the prices ended up, what real buyers actually paid.
Comps give you a starting point. Once you know what a house sold for you can look at the details of that house and compare them to yours. You make adjustments up and down to come to an approximate equivalent price. For instance, if another house has more square footage that might sell for more than yours, but a new kitchen or deck in your house will give it a higher market value. Again, this is where your Realtor's® experience will be invaluable in setting a price that reflects your home's condition and location.
Where do the comps come from? There are a variety of sources including the multiple listing service and public records of sales, selected by professionals who know the neighborhood and the specific market. One place they do not come from is an internet "estimating" site that is not based on solid, proven information. Such sites have sprung up recently promising to estimate the value of your home and every other house around. So far, they don't have a good record for accuracy or completeness. What they provide is nowhere near a true comp. Their computer data banks cannot make the judgments that only a human – in this case a Realtor® - can make to recognize the differences in details that lead to differences in pricing.
Comps can be valuable to sellers in setting the price, and also to buyers in understanding the price range in a particular area. But whether buyer or seller, always work with your Realtor® to get the best value.
Comments are welcome.
Thank you.
Michael Trust, Realtor® and Broker
www.MichaelTrustRealty.com
For starters, you'll need the comps. Comparable sales of houses in the same area in recent months are one of several factors that your Realtor® will consider as you work together to set your asking price. Note I said "sales" not "houses for sale." The price of other houses for sale only tells you what other owners hope to sell for. Sales tell you where the prices ended up, what real buyers actually paid.
Comps give you a starting point. Once you know what a house sold for you can look at the details of that house and compare them to yours. You make adjustments up and down to come to an approximate equivalent price. For instance, if another house has more square footage that might sell for more than yours, but a new kitchen or deck in your house will give it a higher market value. Again, this is where your Realtor's® experience will be invaluable in setting a price that reflects your home's condition and location.
Where do the comps come from? There are a variety of sources including the multiple listing service and public records of sales, selected by professionals who know the neighborhood and the specific market. One place they do not come from is an internet "estimating" site that is not based on solid, proven information. Such sites have sprung up recently promising to estimate the value of your home and every other house around. So far, they don't have a good record for accuracy or completeness. What they provide is nowhere near a true comp. Their computer data banks cannot make the judgments that only a human – in this case a Realtor® - can make to recognize the differences in details that lead to differences in pricing.
Comps can be valuable to sellers in setting the price, and also to buyers in understanding the price range in a particular area. But whether buyer or seller, always work with your Realtor® to get the best value.
Comments are welcome.
Thank you.
Michael Trust, Realtor® and Broker
www.MichaelTrustRealty.com
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