Despite a slow market and a slight decrease in the resale value of most remodeling projects, Realtors® report that the smartest home improvement investments may also be some of the least expensive. Results from the 2009 Remodeling Cost vs. Value Report show that small-scale exterior projects are the most profitable at resale, according to estimates by Realtors who completed a recent survey.
On a national level, eight out of the top 10 projects in terms of costs recouped were exterior replacement projects that cost less than $14,000. Certain types of door and siding replacements, as well as wood deck additions all returned more than 80 percent of project costs upon resale. A steel entry door replacement – a new addition to this year’s list – recouped 128.9 percent of costs, followed by upscale fiber-cement siding replacements at 83.6 percent. Wood deck additions recouped 80.6 percent of costs.
"Once again, this year’s Remodeling Cost vs. Value Report highlights the importance of a home’s first impression," said NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz. "With exterior projects returning a high percent of project costs upon resale, Realtors can help give your home curb appeal while adding value to the real estate transaction."
The 2009 Remodeling Cost vs. Value Report compares construction costs with resale values for 33 midrange and upscale remodeling projects comprising additions, remodels and replacements in 80 markets across the country. Data are grouped in nine U.S. regions, following the divisions established by the U.S. Census Bureau. This is the 12th consecutive year that the report, which is produced by Hanley Wood, LLC, was completed in cooperation with REALTOR® Magazine, as Realtors® provided their insight into local markets and buyer home preferences within those markets.
On a national level, the project with the biggest improvement from 2008 was the attic bedroom addition, recouping 83.1 percent of remodeling costs compared to 73.8 percent in 2008. The only other interior project that landed in the top 10 was a minor kitchen remodel with 78.3 percent costs recouped.
Other exterior projects in the top 10 include midrange vinyl and upscale foam-backed vinyl siding replacements, which returned more than 79 percent of costs. In addition, several types of window replacements – midrange wood, midrange vinyl, and upscale vinyl – all returned more than 76 percent of costs upon sale.
Similar to last year’s report, the least profitable remodeling projects in terms of resale value were home office remodels and sunroom additions, returning only 48.1 percent and 50.7 percent of project costs.
Written by Realty Times Staff
Wednesday, August 11, 2010
Monday, August 9, 2010
Love The House, Hate The Traffic Noise -- There Is Hope!
Depending on the location, whether you're shopping for a new home or trying to sell your current residence, one of the biggest challenges is trying to reduce street noise.
Tony Sola, founder of Acoustics.com cautions homeowners and buyers about too high expectations when it comes to reducing traffic noise.
"Too many times I have seen homeowners try to do something about the noise by adding another layer of drywall, or something to the wall itself. It's not minimal return, it's zero return. Unless you control the weak point, that does nothing," says Sola.
Sola says there are some cases where the wall might be the weak point but he says usually that's just one percent of the time. Generally the windows are the weakest noise link.
So, if you've fallen in love with a home that's perfect for you but butting up a little close to a busy road, there are options to help make the traffic less noticeable.
Starting with the interior of the house, the first area to listen closely to are the windows. They can tend to let in a significant amount of noise.
"The sound almost always goes through the window and doing anything at all to the walls will be pointless until you have fixed the noise that comes through the window," says Sola.
Windows have a Sound Transmission Class (STC) rating. The higher the rating the less outside noise you should hear inside the home. A typical single-pane window only has a 22-25 STC rating whereas a dual-pane window might have a STC rating of 27-32. There are also specialty windows with even higher STC ratings available.
Choosing the right STC rating depends on what you're planning to do.
"If you're looking at a STC 30 window versus a STC 33 window, you're not going to notice a huge difference in that but it might be worth it to you, if they're about the same price. But if you're looking at replacing windows and you're planning to go from a STC 30 to a STC 33, that's a lot of work to get virtually little improvement. If you can get a five or six decibel difference, then that can start to make a noticeable change," explains Sola.
Keeping sound from coming into your home is usually only part of the solution. Many people want to enjoy a traffic-noise-free backyard. This can be a little more complicated but not impossible.
"One of the first things you would look at is the barrier. If you've got a view wall or wrought iron fence that's not going to block anything, or if you have large oleander bushes, that might block the view but it doesn't block the sound at all," says Sola.
Instead he says a solid wall that doesn't have gaps in it will help a little.
"Auto noise comes from the tires. So to control auto noise the wall will work pretty well because the source is really low -- it's at ground level but truck noise -- the medium trucks or the semi truck -- comes from about eight feet off the ground, so even if you build a six, seven, or eight-foot wall, that won't help much," says Sola.
However, if you couple a barrier wall with a noise-masking system such as a water feature then you can virtually wash away the traffic sounds.
"A water feature, if done right, can work very well," says Sola.
"You wouldn't want a water feature that's just trickling water. You would want something more substantial that does have a noise level to it and more of a broad band noise," says Sola.
He says the problem with water features is they tend to be very localized. Sola says he's been to some homes where the homeowner placed one water feature in the backyard and it drowned out the traffic noise in that one area of the yard but the street noise could be heard from other parts of the backyard. He says that's when a couple of fountains might need to be used.
Getting creative is the key. Working with a sound acoustic expert and landscaper can result in a beautifully designed outdoor area that's doesn't reveal any sign of the chaotic hustle and bustle of the nearby road.
Written by Phoebe Chongchua
Tony Sola, founder of Acoustics.com cautions homeowners and buyers about too high expectations when it comes to reducing traffic noise.
"Too many times I have seen homeowners try to do something about the noise by adding another layer of drywall, or something to the wall itself. It's not minimal return, it's zero return. Unless you control the weak point, that does nothing," says Sola.
Sola says there are some cases where the wall might be the weak point but he says usually that's just one percent of the time. Generally the windows are the weakest noise link.
So, if you've fallen in love with a home that's perfect for you but butting up a little close to a busy road, there are options to help make the traffic less noticeable.
Starting with the interior of the house, the first area to listen closely to are the windows. They can tend to let in a significant amount of noise.
"The sound almost always goes through the window and doing anything at all to the walls will be pointless until you have fixed the noise that comes through the window," says Sola.
Windows have a Sound Transmission Class (STC) rating. The higher the rating the less outside noise you should hear inside the home. A typical single-pane window only has a 22-25 STC rating whereas a dual-pane window might have a STC rating of 27-32. There are also specialty windows with even higher STC ratings available.
Choosing the right STC rating depends on what you're planning to do.
"If you're looking at a STC 30 window versus a STC 33 window, you're not going to notice a huge difference in that but it might be worth it to you, if they're about the same price. But if you're looking at replacing windows and you're planning to go from a STC 30 to a STC 33, that's a lot of work to get virtually little improvement. If you can get a five or six decibel difference, then that can start to make a noticeable change," explains Sola.
Keeping sound from coming into your home is usually only part of the solution. Many people want to enjoy a traffic-noise-free backyard. This can be a little more complicated but not impossible.
"One of the first things you would look at is the barrier. If you've got a view wall or wrought iron fence that's not going to block anything, or if you have large oleander bushes, that might block the view but it doesn't block the sound at all," says Sola.
Instead he says a solid wall that doesn't have gaps in it will help a little.
"Auto noise comes from the tires. So to control auto noise the wall will work pretty well because the source is really low -- it's at ground level but truck noise -- the medium trucks or the semi truck -- comes from about eight feet off the ground, so even if you build a six, seven, or eight-foot wall, that won't help much," says Sola.
However, if you couple a barrier wall with a noise-masking system such as a water feature then you can virtually wash away the traffic sounds.
"A water feature, if done right, can work very well," says Sola.
"You wouldn't want a water feature that's just trickling water. You would want something more substantial that does have a noise level to it and more of a broad band noise," says Sola.
He says the problem with water features is they tend to be very localized. Sola says he's been to some homes where the homeowner placed one water feature in the backyard and it drowned out the traffic noise in that one area of the yard but the street noise could be heard from other parts of the backyard. He says that's when a couple of fountains might need to be used.
Getting creative is the key. Working with a sound acoustic expert and landscaper can result in a beautifully designed outdoor area that's doesn't reveal any sign of the chaotic hustle and bustle of the nearby road.
Written by Phoebe Chongchua
Friday, August 6, 2010
Sell Faster When You Understand The Buyers Mindset
When most sellers list their home for sale the first thing they think about is how much will I get and that is usually followed by how soon will I get the money. It's certainly understandable that those two concerns are, most often, top of mind. After all, you're likely selling your home to buy another one or invest the money in something else.
But, if as a seller, you can get into the buyer's mindset, the sale of your home can come faster and for more money.
Understanding the way buyers think involves seeing things not from your perspective but from your potential buyer's mindset. It can sound easy but actually it's often harder to do than most sellers think. The psychology of buying is driven by emotional experiences, money, and timing. With that in mind, sellers can help create optimal circumstances that literally help walk the buyer through the process and completion of the sale of your home.
It starts with a feeling. When you meet someone for the first time, you form a first impression based on a feeling. That's exactly what happens when buyers set foot into your home. Work with an experienced agent to learn exactly what kind of impression your home is giving off. If it's a small home, make sure it's not overfilled and cluttered.
Pick up all the loose clutter that's floating around. Throw out old magazines. People like to see things that are streamlined or clean or fresh looking. There's nothing worse than walking into a place and seeing a stack of magazines all over the place or an unmade bed.
Go the extra step and take care of items that might have been overlooked for quite some time. Steam clean the carpets, the upholstery, the furniture, if that's what's needed. Have the windows cleaned, light fixtures cleaned. Make it feel clean when you walk in.
Go back to basics. You may love your turquoise carpet but do you really think buyers will? Getting inside the buyers mind will help you answer these questions. You can also pick up home décor magazines and see what appeals to the masses. You don't have to change everything in your home, but going back to basics in a few areas will help buyers see how your home can become their home.
As soon as buyers see a really loud red, orange or lemon-green color they automatically think about re-doing. That, of course, means the buyers are already beginning to calculate the amount of money they need to take off of the sale price in order to get the home in the condition they would like it.
If instead you stick with neutral colors such as painting the walls off-white, light beige or Navajo white, you have a better chance in preserving the sale price.
Repair anything that looks torn, worn or broken If you walked into a retail store and saw a garment that you liked but it was torn or missing buttons, chances are you'd search for another one or ask for a discount if that were the only one of its kind.
That's what buyers will do with your home when they spot torn screens, garage doors that don't open, or broken light fixtures that are hanging out of the wall. Buyers, if at first they don't get completely turned off and walk away from the sale, will first begin to think that there is more damage to the home than what they're able to see and then they start to calculate the cost of repairing those damages. But buyers often exaggerate the amount of money needed to fix the repairs.
In today's market people are looking desperately to find out what's wrong with a home so that they can lower the price.
In the buyers' minds, they come up with some kind of incredible price to fix repairs. In their mind, they go way overboard and eventually it affects the bottom line price for the seller.
Don't miss an opportunity to get the word out about your home being listed for sale. It only makes sense to let your neighbors know. By doing this your neighbors can sometimes become great facilitators and supporters of the sale.
Most people are visual buyers. If the home doesn't look clean, spotless, and repaired then the buyer thinks what's behind the walls, how much more money do I have to put into this home.
Remember understanding the psychology of the buyer's mindset can help you sell faster and for the price you really want.
Written by Phoebe Chongchua
But, if as a seller, you can get into the buyer's mindset, the sale of your home can come faster and for more money.
Understanding the way buyers think involves seeing things not from your perspective but from your potential buyer's mindset. It can sound easy but actually it's often harder to do than most sellers think. The psychology of buying is driven by emotional experiences, money, and timing. With that in mind, sellers can help create optimal circumstances that literally help walk the buyer through the process and completion of the sale of your home.
It starts with a feeling. When you meet someone for the first time, you form a first impression based on a feeling. That's exactly what happens when buyers set foot into your home. Work with an experienced agent to learn exactly what kind of impression your home is giving off. If it's a small home, make sure it's not overfilled and cluttered.
Pick up all the loose clutter that's floating around. Throw out old magazines. People like to see things that are streamlined or clean or fresh looking. There's nothing worse than walking into a place and seeing a stack of magazines all over the place or an unmade bed.
Go the extra step and take care of items that might have been overlooked for quite some time. Steam clean the carpets, the upholstery, the furniture, if that's what's needed. Have the windows cleaned, light fixtures cleaned. Make it feel clean when you walk in.
Go back to basics. You may love your turquoise carpet but do you really think buyers will? Getting inside the buyers mind will help you answer these questions. You can also pick up home décor magazines and see what appeals to the masses. You don't have to change everything in your home, but going back to basics in a few areas will help buyers see how your home can become their home.
As soon as buyers see a really loud red, orange or lemon-green color they automatically think about re-doing. That, of course, means the buyers are already beginning to calculate the amount of money they need to take off of the sale price in order to get the home in the condition they would like it.
If instead you stick with neutral colors such as painting the walls off-white, light beige or Navajo white, you have a better chance in preserving the sale price.
Repair anything that looks torn, worn or broken If you walked into a retail store and saw a garment that you liked but it was torn or missing buttons, chances are you'd search for another one or ask for a discount if that were the only one of its kind.
That's what buyers will do with your home when they spot torn screens, garage doors that don't open, or broken light fixtures that are hanging out of the wall. Buyers, if at first they don't get completely turned off and walk away from the sale, will first begin to think that there is more damage to the home than what they're able to see and then they start to calculate the cost of repairing those damages. But buyers often exaggerate the amount of money needed to fix the repairs.
In today's market people are looking desperately to find out what's wrong with a home so that they can lower the price.
In the buyers' minds, they come up with some kind of incredible price to fix repairs. In their mind, they go way overboard and eventually it affects the bottom line price for the seller.
Don't miss an opportunity to get the word out about your home being listed for sale. It only makes sense to let your neighbors know. By doing this your neighbors can sometimes become great facilitators and supporters of the sale.
Most people are visual buyers. If the home doesn't look clean, spotless, and repaired then the buyer thinks what's behind the walls, how much more money do I have to put into this home.
Remember understanding the psychology of the buyer's mindset can help you sell faster and for the price you really want.
Written by Phoebe Chongchua
Wednesday, August 4, 2010
First-Timer's Guide To Mortgage Shopping
It's not everyday you go looking for a mortgage.
It's not a trip to the mall.
It's a methodical, step-by-step process requiring planning, time, effort and attention to details.
Here are some guidelines for beginners, especially first-time home buyers -- assuming you've already laid the groundwork by inspecting your credit report.
Inspecting your credit report and getting it in the best shape possible is your first step to the best mortgage. In today's tight money world it behooves you to take the time necessary to carefully scrutinize your credit report and credit score to be prepared to explain to creditors any dings you can't fix.
Shop around for a mortgage from a variety of sources to determine what's available. Shop mortgage brokers, mortgage lenders, banks and credit unions. Don't forget to examine your local and state mortgage programs as well as community service and housing agency mortgages and mortgage assistance programs.
Obtain all loan cost information, not just the monthly mortgage payment and annual percentage rate (APR). Check the cost of points (in dollar amounts, not just number of points), broker fees, origination fees, underwriting fees, administrative costs, mortgage insurance, yield spread premiums, commissions, escrow and closing costs -- each and every cost associated with your mortgage. You need these numbers to make a fair comparison.
Get an explanation for every fee you don't understand. Use the Federal Deposit Insurance Corporation's (FDIC) "Mortgage Shopping Worksheet" to help keep your costs in check.
Check the loan terms for a variety of loans. Know what down payment you'll need, the term of the loan, whether the loan is a fixed rate mortgage (FRM) or an adjustable rate mortgage (ARM) and the specific terms of each. For ARMs, ask for the beginning rate, when and how often adjustments occur, how much adjustments could cost, and the ARM's ceiling rate.
Be aggressive. Prepare to negotiate with the information you've gathered on the mortgage worksheet. The more information you have about each loan the move negotiating leverage you'll have. A pristine credit record can also give you an edge. Look particularly to quibble over points, yield spread premiums and other broker's fees or commissions. Don't be afraid to ask the lender or broker to waive or reduce one or more of its fees or to agree to a lower rate or fewer points.
Make sure the lender or broker isn't just lowering one fee to raise another or lowering the rate to raise points. There's also no harm in asking lenders or brokers if they can give better terms than the original ones they quoted to you, especially if you've found better terms elsewhere.
Once you are satisfied with the terms you have negotiated, consider a written lock-in from the lender or broker. The lock-in should include the rate that you have agreed upon, the period the lock-in lasts, the number of points to be paid and a lock on as many other costs and terms as possible.
Also seek a written loan commitment that guarantees you the terms and costs you've locked. A loan commitment puts you ahead of the pack in the eyes of the home seller who wants to sell quickly.
Written by Broderick Perkins
It's not a trip to the mall.
It's a methodical, step-by-step process requiring planning, time, effort and attention to details.
Here are some guidelines for beginners, especially first-time home buyers -- assuming you've already laid the groundwork by inspecting your credit report.
Inspecting your credit report and getting it in the best shape possible is your first step to the best mortgage. In today's tight money world it behooves you to take the time necessary to carefully scrutinize your credit report and credit score to be prepared to explain to creditors any dings you can't fix.
Shop around for a mortgage from a variety of sources to determine what's available. Shop mortgage brokers, mortgage lenders, banks and credit unions. Don't forget to examine your local and state mortgage programs as well as community service and housing agency mortgages and mortgage assistance programs.
Obtain all loan cost information, not just the monthly mortgage payment and annual percentage rate (APR). Check the cost of points (in dollar amounts, not just number of points), broker fees, origination fees, underwriting fees, administrative costs, mortgage insurance, yield spread premiums, commissions, escrow and closing costs -- each and every cost associated with your mortgage. You need these numbers to make a fair comparison.
Get an explanation for every fee you don't understand. Use the Federal Deposit Insurance Corporation's (FDIC) "Mortgage Shopping Worksheet" to help keep your costs in check.
Check the loan terms for a variety of loans. Know what down payment you'll need, the term of the loan, whether the loan is a fixed rate mortgage (FRM) or an adjustable rate mortgage (ARM) and the specific terms of each. For ARMs, ask for the beginning rate, when and how often adjustments occur, how much adjustments could cost, and the ARM's ceiling rate.
Be aggressive. Prepare to negotiate with the information you've gathered on the mortgage worksheet. The more information you have about each loan the move negotiating leverage you'll have. A pristine credit record can also give you an edge. Look particularly to quibble over points, yield spread premiums and other broker's fees or commissions. Don't be afraid to ask the lender or broker to waive or reduce one or more of its fees or to agree to a lower rate or fewer points.
Make sure the lender or broker isn't just lowering one fee to raise another or lowering the rate to raise points. There's also no harm in asking lenders or brokers if they can give better terms than the original ones they quoted to you, especially if you've found better terms elsewhere.
Once you are satisfied with the terms you have negotiated, consider a written lock-in from the lender or broker. The lock-in should include the rate that you have agreed upon, the period the lock-in lasts, the number of points to be paid and a lock on as many other costs and terms as possible.
Also seek a written loan commitment that guarantees you the terms and costs you've locked. A loan commitment puts you ahead of the pack in the eyes of the home seller who wants to sell quickly.
Written by Broderick Perkins
Monday, August 2, 2010
50 Ways to Gain Neighbor
Paul Simon wrote a song called "50 Ways to Leave Your Lover" which never really got around to actually listing fifty ways. I guess it's the thought that counts. But one of a homeowner association's challenges is helping neighbors "make nice." It seems that neighbors have lost the art of making friends and, instead, want the board to intervene in conflicts between the strangers that live next to each other.
What exactly is a "good" neighbor? To be one, you don't need to be friends or hang out together. A good neighbor attitude allows you to live as privately or as sociably as you wish. Being a good neighbor is an attitude. Here's how to cultivate and nurture it:
Meet Them. While marching up to their door with hand extended is great, the chance encounter works well, too. Introduce yourself at the mailbox, while walking the dog or when you take out the trash. Learn their names and offer a friendly: "Hello," "Good Morning" or "Howdy Doody" when you see them. (As weird as "Howdy Doody" is, it does make you memorable.)
Keep Them Informed. Contact them before undertaking something that might affect them, such as hosting a big party, building a fence or cutting down a tree. Contacting a neighbor in advance so rarely happens, it will take them weeks to recover from the shock and by that time the announced event will have passed. Seriously, you will gain their respect.
Be Aware of Differences. Age, faith, ethnic background and marital status can drastically affect lifestyles. Be aware of the differences between you and your neighbors that could create friction or disagreement.
Look for Things in Common. You both might like to garden, bike or jog. Zero in on what you have in common. Be a keen observer of your neighbors and look for tell-tale signs that can draw you closer.
Point of View. From your neighbor's viewpoint, how does your compost pile, swing set or junk car look? Would you like that view? (If you do, refer to your neighbor's viewpoint).
Be Appreciative. If a neighbor does something you like, tell them! They'll be pleased that you noticed the new awning, patio furniture, plants, etc.
Assume the Best. Most people don't intentionally create problems. Assume the neighbor doesn't know about the annoyance when you speak to them. Your delivery will be dramatically kinder. And assume they will be cooperative.
Be Candid. If your neighbor does something that bothers you, let them know as soon as possible in factual, not emotional terms.
Be Calm. When discussing a point of contention, speak calmly, listen carefully and thank them for telling you how they feel. You don't have to agree or justify your behavior. If you don't react defensively, anger usually subsides, lines of communication remain open and resolution is possible.
Take Your Time. If caught in angry confrontation, take a break to reflect and finish the discussion when cooler heads prevail. Don't leave it hanging. Time and lack of resolution will intensify hostilities.
Best Advice of All. Treat others as you would like to be treated. This attitude will pave the way for good neighborliness. Love your neighbor as yourself.
Oh, I could go on and list 50 ways but like the song, you probably catch my drift. Being a good neighbor is worth the effort. If one of these ways doesn't get you there, try 50 more until one does.
Written by Richard Thompson
What exactly is a "good" neighbor? To be one, you don't need to be friends or hang out together. A good neighbor attitude allows you to live as privately or as sociably as you wish. Being a good neighbor is an attitude. Here's how to cultivate and nurture it:
Meet Them. While marching up to their door with hand extended is great, the chance encounter works well, too. Introduce yourself at the mailbox, while walking the dog or when you take out the trash. Learn their names and offer a friendly: "Hello," "Good Morning" or "Howdy Doody" when you see them. (As weird as "Howdy Doody" is, it does make you memorable.)
Keep Them Informed. Contact them before undertaking something that might affect them, such as hosting a big party, building a fence or cutting down a tree. Contacting a neighbor in advance so rarely happens, it will take them weeks to recover from the shock and by that time the announced event will have passed. Seriously, you will gain their respect.
Be Aware of Differences. Age, faith, ethnic background and marital status can drastically affect lifestyles. Be aware of the differences between you and your neighbors that could create friction or disagreement.
Look for Things in Common. You both might like to garden, bike or jog. Zero in on what you have in common. Be a keen observer of your neighbors and look for tell-tale signs that can draw you closer.
Point of View. From your neighbor's viewpoint, how does your compost pile, swing set or junk car look? Would you like that view? (If you do, refer to your neighbor's viewpoint).
Be Appreciative. If a neighbor does something you like, tell them! They'll be pleased that you noticed the new awning, patio furniture, plants, etc.
Assume the Best. Most people don't intentionally create problems. Assume the neighbor doesn't know about the annoyance when you speak to them. Your delivery will be dramatically kinder. And assume they will be cooperative.
Be Candid. If your neighbor does something that bothers you, let them know as soon as possible in factual, not emotional terms.
Be Calm. When discussing a point of contention, speak calmly, listen carefully and thank them for telling you how they feel. You don't have to agree or justify your behavior. If you don't react defensively, anger usually subsides, lines of communication remain open and resolution is possible.
Take Your Time. If caught in angry confrontation, take a break to reflect and finish the discussion when cooler heads prevail. Don't leave it hanging. Time and lack of resolution will intensify hostilities.
Best Advice of All. Treat others as you would like to be treated. This attitude will pave the way for good neighborliness. Love your neighbor as yourself.
Oh, I could go on and list 50 ways but like the song, you probably catch my drift. Being a good neighbor is worth the effort. If one of these ways doesn't get you there, try 50 more until one does.
Written by Richard Thompson
Friday, July 30, 2010
Five Tips for a Successful Home Remodel
As spring approaches, many home owners grow eager to start remodeling projects to update and refresh their surroundings. Before getting started, it's a good idea to hire a professional remodeler for a workable plan and better results, according to the National Association of Home Builders (NAHB).
"A professional remodeler knows how to translate a home owner's dreams and budget into a beautiful reality," said Donna Shirey, CGR, CAPS, CGP, President of Shirey Contracting in Issaquah, Wash. and 2010 chairman of NAHB Remodelers. "They have the expertise and skills to satisfy a customer while keeping the budget in check."
Here are five tips for planning a successful home remodel that you can enjoy for many years to come.
Compile a list of home remodeling ideas and draft a budget for the work.
You likely have some projects in mind, such as modernizing the bathroom, renovating the kitchen, replacing windows or repairing the roof. Prioritize your wish list: Maybe you don't have the budget for your dream remodel, but professional remodelers can maximize your dollars by doing the work in phases, suggesting budget-friendly products and materials, and implementing creative design solutions.
Look for a professional remodeler to help plan the project.
Start by searching NAHB's Directory of Professional Remodelers at nahb.org/remodel. You'll get a list of nearby remodelers to contact. Asking friends and neighbors for names of qualified remodelers will also help you find a match for your project.
Check the references and background of the remodeler.
After you start speaking with remodelers and find one or two who match your project's needs, be sure to conduct some background research by checking with the Better Business Bureau, talking to their references, and asking if they are a trade association member (such as NAHB Remodelers). Remodelers with these qualities tend to be more reliable, better educated, and more likely to stay on top of construction and design trends.
Agree on a contract.
Talk over the details of the home remodeling project and begin reviewing the contract. You'll want to check the remodelers' insurance coverage, ask about any warranties on their work, know who is responsible for obtaining any building permits, and understand the process for making any change orders after the contract is signed. Make sure that you and your remodeler see eye to eye before you sign on the dotted line.
Take advantage of the energy efficiency tax credits.
If your remodel includes replacing windows or doors, adding insulation, installing new roofing, upgrading heating or air-conditioning units, updating the water heater, or installing energy generating products (such as solar panels, heat pumps, or wind turbines) then you can take advantage of federal energy efficiency tax credits through 2010 that will help defray costs and maximize your remodeling budget while reducing home energy bills. Written by Realty Times Staff
"A professional remodeler knows how to translate a home owner's dreams and budget into a beautiful reality," said Donna Shirey, CGR, CAPS, CGP, President of Shirey Contracting in Issaquah, Wash. and 2010 chairman of NAHB Remodelers. "They have the expertise and skills to satisfy a customer while keeping the budget in check."
Here are five tips for planning a successful home remodel that you can enjoy for many years to come.
Compile a list of home remodeling ideas and draft a budget for the work.
You likely have some projects in mind, such as modernizing the bathroom, renovating the kitchen, replacing windows or repairing the roof. Prioritize your wish list: Maybe you don't have the budget for your dream remodel, but professional remodelers can maximize your dollars by doing the work in phases, suggesting budget-friendly products and materials, and implementing creative design solutions.
Look for a professional remodeler to help plan the project.
Start by searching NAHB's Directory of Professional Remodelers at nahb.org/remodel. You'll get a list of nearby remodelers to contact. Asking friends and neighbors for names of qualified remodelers will also help you find a match for your project.
Check the references and background of the remodeler.
After you start speaking with remodelers and find one or two who match your project's needs, be sure to conduct some background research by checking with the Better Business Bureau, talking to their references, and asking if they are a trade association member (such as NAHB Remodelers). Remodelers with these qualities tend to be more reliable, better educated, and more likely to stay on top of construction and design trends.
Agree on a contract.
Talk over the details of the home remodeling project and begin reviewing the contract. You'll want to check the remodelers' insurance coverage, ask about any warranties on their work, know who is responsible for obtaining any building permits, and understand the process for making any change orders after the contract is signed. Make sure that you and your remodeler see eye to eye before you sign on the dotted line.
Take advantage of the energy efficiency tax credits.
If your remodel includes replacing windows or doors, adding insulation, installing new roofing, upgrading heating or air-conditioning units, updating the water heater, or installing energy generating products (such as solar panels, heat pumps, or wind turbines) then you can take advantage of federal energy efficiency tax credits through 2010 that will help defray costs and maximize your remodeling budget while reducing home energy bills. Written by Realty Times Staff
Wednesday, July 28, 2010
Pre-Qualifying for a Mortgage
One of the first steps to take as a potential home buyer is to get pre-qualified for a loan. This step helps both you and your lender learn just how much home you can afford. And you should begin this process before you even start looking for a home.
According to the Federal Housing Administration (FHA), their pre-qualification essentials include:
Having a steady employment history, at least two years with the same employer.
Consistent or increasing income over the past two years.
Credit report should be in good standing with less than two thirty day late payments in the past two years.
Any bankruptcy on record must be at least two years old with good credit for the two consecutive years.
Any foreclosure must be at least three years old with good credit for the past three years.
Mortgage payment qualified for must be approximately 30 percent of your total monthly gross income.
Other lenders' ideas regarding pre-qualification are all similar to those outlined above. A mortgage lender will look at your credit report, earnings, debts, and savings in order to see how much home you really can afford.
Why is this important? In recent years there has been a “mortgage crisis,” where the industry was rampant with fraud and with loans that put homeowners into situations they could not afford. As payments rose, homeowners found themselves unable to meet their monthly obligations. According to Realtytrac.com and their U.S. Foreclosure Market Report, in January 2010, one in every 409 households in the country had received a foreclosure filing.
Since pre-qualification for a home loan typically costs you nothing, but gives you both a goal of what homes are in your affordability range, as well as how much money you should look to have saved for a downpayment, you can hardly wait to take this step.
What if the home you want is out of your reach? Experts recommend reducing your debt and saving up a larger amount for your down payment. Let's say your dream home is $225,000, but you only qualify for a $180,000 loan. If you have a downpayment of $45,000, then you are ready to make a move!
During the pre-qualification process, you will be expected to provide the following information:
your gross monthly income
your total monthly payments (car payments, credit cards minimums, child support payments, student loan payments, any other monthly debts)
The lender will be looking to see that your debt to income is below about 40 percent, and the lower the better. So, if you are looking to buy in the near future, be sure to talk to your lender soon!
Written by Carla L. Davis
According to the Federal Housing Administration (FHA), their pre-qualification essentials include:
Having a steady employment history, at least two years with the same employer.
Consistent or increasing income over the past two years.
Credit report should be in good standing with less than two thirty day late payments in the past two years.
Any bankruptcy on record must be at least two years old with good credit for the two consecutive years.
Any foreclosure must be at least three years old with good credit for the past three years.
Mortgage payment qualified for must be approximately 30 percent of your total monthly gross income.
Other lenders' ideas regarding pre-qualification are all similar to those outlined above. A mortgage lender will look at your credit report, earnings, debts, and savings in order to see how much home you really can afford.
Why is this important? In recent years there has been a “mortgage crisis,” where the industry was rampant with fraud and with loans that put homeowners into situations they could not afford. As payments rose, homeowners found themselves unable to meet their monthly obligations. According to Realtytrac.com and their U.S. Foreclosure Market Report, in January 2010, one in every 409 households in the country had received a foreclosure filing.
Since pre-qualification for a home loan typically costs you nothing, but gives you both a goal of what homes are in your affordability range, as well as how much money you should look to have saved for a downpayment, you can hardly wait to take this step.
What if the home you want is out of your reach? Experts recommend reducing your debt and saving up a larger amount for your down payment. Let's say your dream home is $225,000, but you only qualify for a $180,000 loan. If you have a downpayment of $45,000, then you are ready to make a move!
During the pre-qualification process, you will be expected to provide the following information:
your gross monthly income
your total monthly payments (car payments, credit cards minimums, child support payments, student loan payments, any other monthly debts)
The lender will be looking to see that your debt to income is below about 40 percent, and the lower the better. So, if you are looking to buy in the near future, be sure to talk to your lender soon!
Written by Carla L. Davis
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