As part of the 2010-11 Remodeling Cost vs. Value Report, Realtors® recently rated exterior replacement projects among the most cost-effective home improvement projects, demonstrating that curb appeal remains one of the most important aspects of a home at resale time.
“This year’s Remodeling Cost vs. Value Report highlights the importance of exterior projects, which not only provide the most value, but also are among the least expensive improvements for a home,” said National Association of Realtors® President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I. “Since resale value can vary by region, it’s smart for home owners to work with a Realtor®through the remodeling and improvement process; they can provide insight into projects in their neighborhoods that will recoup the most when the owners are ready to sell.”
Nine of the top 10 most cost-effective projects nationally in terms of value recouped are exterior replacement projects. The steel entry door replacement remained the project that returned the most money, with an estimated 102.1 percent of cost recouped upon resale; it is also the only project in this year’s report that is expected to return more than the cost. The midrange garage door replacement, a new addition to the report this year, is expected to recoup 83.9 percent of costs. Both projects are small investments that cost little more than $1,200 each, on average. Realtors® identified these two replacements as projects that can significantly improve a home’s curb appeal.
“Curb appeal remains king – it’s the first thing potential buyers notice when looking for a home, and it also demonstrates pride of ownership,” said Phipps.
The 2010-11 Remodeling Cost vs. Value Report compares construction costs with resale values for 35 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 13th consecutive year that the report, which is produced by Remodeling magazine publisher Hanley Wood, LLC, was completed in cooperation with REALTOR® Magazine.
Realtors® provided their insight into local markets and buyer home preferences within those markets. Overall, Realtors® estimated that home owners would recoup an average of 60 percent of their investment in 35 different improvement projects, down from an average of 63.8 percent last year. Remodeling projects, particularly higher cost upscale projects, have been losing resale value in recent years because of weak economic conditions.
According to the report, replacement projects usually outperform remodel and addition projects in resale value because they are among the least expensive and contribute to curb appeal. Various types of siding and window replacement projects were expected to return more than 70 percent of costs. Upscale fiber-cement siding replacement was judged by Realtors® the most cost effective among siding projects, recouping 80 percent of costs. Among the window replacement projects covered, upscale vinyl window replacements were expected to recoup the most, 72.6 percent upon resale. Another exterior project, a wood deck addition, tied with a minor kitchen remodel for the fourth most profitable project recouping an estimated 72.8 percent of costs.
The top interior projects for resale value included an attic bedroom and a basement remodel. Both add living space without extending the footprint of the house. An attic bedroom addition costs more than $51,000 and recoups an estimated 72.2 percent nationally upon resale; a basement remodel costs more than $64,000 and recoups an estimated 70 percent. Improvement projects that are expected to return the least are a midrange home office remodel, recouping an estimated 45.8 percent; a backup power generator, recouping 48.5 percent; and a sunroom addition, recouping 48.6 percent of costs.
Although most regions followed the national trends, the regions that consistently were estimated to return a higher percentage of remodeling costs upon resale were the Pacific region of Alaska, California, Hawaii, Oregon and Washington; the West South Central region of Arkansas, Louisiana, Oklahoma, and Texas; the East South Central region of Alabama, Kentucky, Mississippi and Tennessee; and the South Atlantic region of the District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia and West Virginia.
The regions where Realtors® generally reported the lowest percentage of costs recouped were New England (Connecticut, Massachusetts, Maine, New Hampshire, Rhode Island, and Vermont), East North Central (Illinois, Indiana, Michigan, Ohio and Wisconsin), West North Central (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota), and Middle Atlantic (New York and Pennsylvania).
“It’s important to remember that the resale value of a particular improvement project depends on several factors,” said Phipps. “Things such as the home’s overall condition, availability and condition of surrounding properties, location and the regional economic climate contribute to an estimated resale value. That’s why it is imperative to work with a Realtor®who can provide insight and guidance into local market conditions whether you’re buying, selling or improving a home.”
Source: NAR
Thursday, December 16, 2010
Tuesday, December 7, 2010
“ date which will live in infamy”
On Sunday morning, December 7, 1941, the American Army and Navy base in Pearl Harbor, Hawaii was attacked by the Imperial Japanese Navy. The attack came as a surprise to the American Army and Navy and lead to great losses of life and equipment. More than 2000 American citizens were killed and more than 1000 were injured. The Americans also lost a large proportion of their battle ships and nearly 200 aircraft that were stationed in the Pacific region. More than 60 Japanese servicemen were killed, injured or captured. The Japanese Navy also lost five midget submarines and 29 aircraft.
The Japanese military had hoped that the attack on Pearl Harbor would prevent the United States of America from increasing her influence in the Pacific. However, the events in Pearl Harbor actually led to the escalation of World War II. The day after the attack, the United States declared war on Japan and so entered World War II. President Franklin Roosevelt in a speech to Congress stated that the bombing of Pearl Harbor was “a date which will live in infamy”. Shortly afterwards, Germany also declared war on the United States. In the months that followed the attack, the slogan “Remember Pearl Harbor” swept the United States and radio stations repeatedly played a song of the same name.
In 1991, which marked the 50th anniversary of the attack on Pearl Harbor, the United States Congress established the Pearl Harbor Commemorative Medal. This is also known as the Pearl Harbor Survivor's Medal and can be awarded to any veteran of the United States military who were present in or around Pearl Harbor during the attack by the Japanese military. The medal can be awarded to civilians, who were killed or injured in the attack.
The Japanese military had hoped that the attack on Pearl Harbor would prevent the United States of America from increasing her influence in the Pacific. However, the events in Pearl Harbor actually led to the escalation of World War II. The day after the attack, the United States declared war on Japan and so entered World War II. President Franklin Roosevelt in a speech to Congress stated that the bombing of Pearl Harbor was “a date which will live in infamy”. Shortly afterwards, Germany also declared war on the United States. In the months that followed the attack, the slogan “Remember Pearl Harbor” swept the United States and radio stations repeatedly played a song of the same name.
In 1991, which marked the 50th anniversary of the attack on Pearl Harbor, the United States Congress established the Pearl Harbor Commemorative Medal. This is also known as the Pearl Harbor Survivor's Medal and can be awarded to any veteran of the United States military who were present in or around Pearl Harbor during the attack by the Japanese military. The medal can be awarded to civilians, who were killed or injured in the attack.
Wednesday, December 1, 2010
Make Those ‘Green’ Renovations NOW, Tax Credit Expiring Soon!
Time is ticking to complete home renovation projects if you want to cash in on a tax deduction that expires at the end of the year. Tax credits are available for home owners who do upgrades that help them save energy and reduce their utility bills such as with more energy-efficient windows and doors, insulation, and heating and cooling equipment.
You can qualify for up to $1,500 in tax credits when filing 2010 income tax returns. Home owner have until Dec. 31 to qualify for the tax credit.
Home owners can take advantage of the tax credit (Internal Revenue Code Section 25C) for efficiency upgrades made to existing homes, such as for certain types of insulation, windows, roofs, water heaters, heat pumps, furnaces and air conditioners. Tax credits are available for 30 percent of the cost up to $1,500 for 2009 and 2010.
Tax credits — also up to 30 percent of the cost of the qualifying products — are available for equipment using renewable energy, such as solar, geothermal, wind or fuel cells (under tax code section 25D). However, you have until the end of 2016 to take advantage of that tax credit program.
By Melissa Dittmann Tracey, REALTOR® Magazine
You can qualify for up to $1,500 in tax credits when filing 2010 income tax returns. Home owner have until Dec. 31 to qualify for the tax credit.
Home owners can take advantage of the tax credit (Internal Revenue Code Section 25C) for efficiency upgrades made to existing homes, such as for certain types of insulation, windows, roofs, water heaters, heat pumps, furnaces and air conditioners. Tax credits are available for 30 percent of the cost up to $1,500 for 2009 and 2010.
Tax credits — also up to 30 percent of the cost of the qualifying products — are available for equipment using renewable energy, such as solar, geothermal, wind or fuel cells (under tax code section 25D). However, you have until the end of 2016 to take advantage of that tax credit program.
By Melissa Dittmann Tracey, REALTOR® Magazine
Tuesday, November 23, 2010
We are THANKFUL!
"Gratitude unlocks the fullness of life. It turns what we have into enough, and more. It turns denial into acceptance, chaos to order, confusion to clarity. It can turn a meal into a feast, a house into a home, a stranger into a friend. Gratitude makes sense of our past, brings peace for today and creates a vision for tomorrow."
Melody Beattie
Melody Beattie
Thursday, November 4, 2010
New Trends in Home Upgrades
1. Hidden, Wall-mounted TV
Have your big screen TV with big style! Designers are choosing to hide a huge TV in the wall and cover it with a mirror or artwork so when you’re not watching it, you don't even know it’s there! Above the fireplace, it can be a framed mirror or piece of art, or you can mount it in the closet behind the mirror, hidden by a removable panel in the closet. TVs require proper ventilation, so this is NOT a do-it-yourself project.
2. Water Feature with Fire
Combine your fire pit with a fountain and create a fabulous feature for your back yard! It can be rectangular trough-like structure with broken glass in the middle where the fire shoots out, or circular. It can be freestanding, attached to a pool or a big ridge of fire in a stoned wall. As an added bonus, it’s remote control!
3. Pop-up Ventilation for the Kitchen
Vent hoods are necessary in the kitchen to combat smoke smells and cooking fumes, but they can be clunky as well as greasy and dirty. A pop-up hood vent on the other hand can be placed in an island or other countertop, as long as it has an underground vent to the outside. All you have to do is press a button and up it comes to suck all the smoke and fumes out of the air, then press another button and it vanishes!
4. Cooling Drawer
For an extra “cool” kitchen, opt for a cooling drawer! These drawers have several different temperature settings, so they’re great for soda, wine, ice cream or snacks for the kids. You can have any number of them scattered around the kitchen!
Have your big screen TV with big style! Designers are choosing to hide a huge TV in the wall and cover it with a mirror or artwork so when you’re not watching it, you don't even know it’s there! Above the fireplace, it can be a framed mirror or piece of art, or you can mount it in the closet behind the mirror, hidden by a removable panel in the closet. TVs require proper ventilation, so this is NOT a do-it-yourself project.
2. Water Feature with Fire
Combine your fire pit with a fountain and create a fabulous feature for your back yard! It can be rectangular trough-like structure with broken glass in the middle where the fire shoots out, or circular. It can be freestanding, attached to a pool or a big ridge of fire in a stoned wall. As an added bonus, it’s remote control!
3. Pop-up Ventilation for the Kitchen
Vent hoods are necessary in the kitchen to combat smoke smells and cooking fumes, but they can be clunky as well as greasy and dirty. A pop-up hood vent on the other hand can be placed in an island or other countertop, as long as it has an underground vent to the outside. All you have to do is press a button and up it comes to suck all the smoke and fumes out of the air, then press another button and it vanishes!
4. Cooling Drawer
For an extra “cool” kitchen, opt for a cooling drawer! These drawers have several different temperature settings, so they’re great for soda, wine, ice cream or snacks for the kids. You can have any number of them scattered around the kitchen!
Monday, November 1, 2010
ELECTION DAY TOMORROW - GET OUT AND VOTE!
No man is good enough to govern another man without that other's consent. ~Abraham Lincoln
Tuesday, October 26, 2010
Don’t Forget Your Gutters!
The leaves are falling! Now is a great time to make sure your rain gutters are clear of debris. Doing the job yourself is easy and affordable with these tips:
1. Wear heavy work gloves to protect your hands from sharp metal that may be on the gutters.
2. Remove loose debris from the gutter using a small tool, such as a garden trowel, and scrub encrusted dirt with a stiff brush.
3. Power wash gutters with a hose to clear debris – just make sure you send it toward the drain outlet.
4. Make sure drainpipes are clear, if necessary use a plumber's auger to pull debris from the bottom of the drain.
Information source: AHS Newsletter
1. Wear heavy work gloves to protect your hands from sharp metal that may be on the gutters.
2. Remove loose debris from the gutter using a small tool, such as a garden trowel, and scrub encrusted dirt with a stiff brush.
3. Power wash gutters with a hose to clear debris – just make sure you send it toward the drain outlet.
4. Make sure drainpipes are clear, if necessary use a plumber's auger to pull debris from the bottom of the drain.
Information source: AHS Newsletter
Monday, October 25, 2010
Current Trends in Dining Rooms
1. Take down a wall between the dining room and kitchen to make one large casual cooking, eating, and multi-purpose space.
2. Those who build today often go for a simpler floorplan opting for more casual eating and living areas, an open “greatroom” with a dining corner, or a smaller dining room with a lower ceiling for warmth and intimacy.
3. More and more we are seeing dining rooms that have become multipurpose spaces with bookshelves, wet bars, or built-in deska for a planning center.
4. Colors in the dining room can be bolder than other rooms, because of the infrequency of use, but just showcase one element with bold color like walls, furniture, the ceiling, or a ceiling fixture.
5. Hang a chandelier lower than usual to create intimacy. Use a round table which is more conducive to conversations.
2. Those who build today often go for a simpler floorplan opting for more casual eating and living areas, an open “greatroom” with a dining corner, or a smaller dining room with a lower ceiling for warmth and intimacy.
3. More and more we are seeing dining rooms that have become multipurpose spaces with bookshelves, wet bars, or built-in deska for a planning center.
4. Colors in the dining room can be bolder than other rooms, because of the infrequency of use, but just showcase one element with bold color like walls, furniture, the ceiling, or a ceiling fixture.
5. Hang a chandelier lower than usual to create intimacy. Use a round table which is more conducive to conversations.
Thursday, October 14, 2010
U.S. urges lenders to vet foreclosures but keep process moving
Breaking News Alert: October 13, 2010 3:57:10 PM
----------------------------------------
Federal regulators on Wednesday urged the nation’s lenders to verify that all paperwork filed as part of the foreclosure process is properly reviewed and to file new documents if problems are found. Regulators said that lenders should continue with foreclosures as quickly as possible if no problems are found.
----------------------------------------
Federal regulators on Wednesday urged the nation’s lenders to verify that all paperwork filed as part of the foreclosure process is properly reviewed and to file new documents if problems are found. Regulators said that lenders should continue with foreclosures as quickly as possible if no problems are found.
Wednesday, October 13, 2010
Foreclosure Probes Launched
In an AP article by Alan Zibel posted on Yahoo.com just moments ago, it was announced that “officials in 50 states and the District of Columbia have launched a joint investigation into allegations that mortgage companies mishandled documents and broke laws in foreclosing on hundreds of thousands of homeowners.”
States' attorney generals and bank regulators will begin to examine whether mortgage company employees made false statements or prepared documents improperly.
This could mean that foreclosure proceedings across the nation could be subject to legal challenge, with the possibility that some foreclosures could be overturned. More than 2.5 million homes have been foreclosed since December 2007, according to RealtyTrac Inc.
Some banks have already halted questionable foreclosures, but others, including Citigroup Inc. and Wells Fargo have not stopped processing foreclosures, and have denied that they have done anything wrong.
Evidence will be reviewed that may show that legal documents were signed by mortgage co. employees with no knowledge of the information found in the documents. There is a possibility that many of these documents were signed without witness from a notary public, which violates most state laws.
States' attorney generals and bank regulators will begin to examine whether mortgage company employees made false statements or prepared documents improperly.
This could mean that foreclosure proceedings across the nation could be subject to legal challenge, with the possibility that some foreclosures could be overturned. More than 2.5 million homes have been foreclosed since December 2007, according to RealtyTrac Inc.
Some banks have already halted questionable foreclosures, but others, including Citigroup Inc. and Wells Fargo have not stopped processing foreclosures, and have denied that they have done anything wrong.
Evidence will be reviewed that may show that legal documents were signed by mortgage co. employees with no knowledge of the information found in the documents. There is a possibility that many of these documents were signed without witness from a notary public, which violates most state laws.
Tuesday, October 12, 2010
Don't Miss The State Fair of Texas - Final week!
You don't want to miss out on attending the BEST STATE FAIR ever! The last day is Sunday, 10/17.
What could be better than strolling the historic fair grounds, eating a corny dog and some friend chocolate, then attending the special Tom Landry exhibit? You can take a ride on the Texas Star, try your luck at the games, and watch a spectacular light show! You even get to hear great concerts, shop for your next car, and check out the livestock!
It's hard to find a better way to spend a day with your family, so don't miss the 2010 State Fair of Texas!
Check out www.bigtex.com for more information.
What could be better than strolling the historic fair grounds, eating a corny dog and some friend chocolate, then attending the special Tom Landry exhibit? You can take a ride on the Texas Star, try your luck at the games, and watch a spectacular light show! You even get to hear great concerts, shop for your next car, and check out the livestock!
It's hard to find a better way to spend a day with your family, so don't miss the 2010 State Fair of Texas!
Check out www.bigtex.com for more information.
Monday, October 11, 2010
Government Moves Toward Foreclosure Moratorium
Despite concerns about its impact, some legislators are pushing for a nationwide moratorium on foreclosure sales.
U.S. Rep. Edolphus Towns, a New York Democrat, who is chairman of the House Committee on Oversight and Government Reform, said the top 10 mortgage lenders should immediately suspend foreclosure proceedings in all states.
"The implications of ignoring the foreclosure problems are far too great to be ignored," he said Friday.
Other legislators are moving to revive cramdown legislation, which would give judges the power to reduce mortgage principal to market value. The controversial bill had passed the House but was stuck in the Senate.
The Mortgage Bankers Association of America and the Financial Services Roundtable said Friday in a joint statement that after reviewing paperwork, banks are reassured that nearly all foreclosures are legitimate.
"Calls for a blanket national moratorium on all foreclosures are a bad idea and would cause significant harm to communities at risk, the unstable housing market and the fragile economy," the statement said.
Source: The Wall Street Journal, Ariana Eunjung Cha, Steven Mufson, and Jia Lynn Yang (10/09/2010)- AS POSTED ON REALTORMAG.COM
U.S. Rep. Edolphus Towns, a New York Democrat, who is chairman of the House Committee on Oversight and Government Reform, said the top 10 mortgage lenders should immediately suspend foreclosure proceedings in all states.
"The implications of ignoring the foreclosure problems are far too great to be ignored," he said Friday.
Other legislators are moving to revive cramdown legislation, which would give judges the power to reduce mortgage principal to market value. The controversial bill had passed the House but was stuck in the Senate.
The Mortgage Bankers Association of America and the Financial Services Roundtable said Friday in a joint statement that after reviewing paperwork, banks are reassured that nearly all foreclosures are legitimate.
"Calls for a blanket national moratorium on all foreclosures are a bad idea and would cause significant harm to communities at risk, the unstable housing market and the fragile economy," the statement said.
Source: The Wall Street Journal, Ariana Eunjung Cha, Steven Mufson, and Jia Lynn Yang (10/09/2010)- AS POSTED ON REALTORMAG.COM
Friday, October 8, 2010
Costly Delays Caused By Foreclosure Reviews
House Speaker Nancy Pelosi has called for a federal investigation of foreclosure sales and evictions.
Observers say that if the government gets further involved and millions of foreclosures need to be re-processed, it is unclear how long the job will take and how costs will be allocated.
Lenders are rushing to review their own situations. At GMAC Mortgage, a unit of Ally Financial Inc., a spokeswoman said, “The vast majority of these affidavits will be resolved in the coming weeks and before the end of the year,” And a spokesman for J.P. Morgan Chase & Co. said the company's review process is expected to take "a few weeks."
But fixing the problems won’t be that simple if the reviews uncover missing documentation or other serious problems that are likely to trigger more legal challenges.
The bottom line is: "It's very hard to see how the servicers can avoid reimbursing the trusts for losses caused by taking short cuts," said David J. Grais, an attorney in New York who represents investors.
Source: The Wall Street Journal, Robbie Whelan and Ruth Simon - as posted on Realtormag.com
Observers say that if the government gets further involved and millions of foreclosures need to be re-processed, it is unclear how long the job will take and how costs will be allocated.
Lenders are rushing to review their own situations. At GMAC Mortgage, a unit of Ally Financial Inc., a spokeswoman said, “The vast majority of these affidavits will be resolved in the coming weeks and before the end of the year,” And a spokesman for J.P. Morgan Chase & Co. said the company's review process is expected to take "a few weeks."
But fixing the problems won’t be that simple if the reviews uncover missing documentation or other serious problems that are likely to trigger more legal challenges.
The bottom line is: "It's very hard to see how the servicers can avoid reimbursing the trusts for losses caused by taking short cuts," said David J. Grais, an attorney in New York who represents investors.
Source: The Wall Street Journal, Robbie Whelan and Ruth Simon - as posted on Realtormag.com
Thursday, October 7, 2010
Texas Attorney General Halts Foreclosures And Sales Of Foreclosed Properties!
The Texas Attorney General's office has halted all foreclosures, all sales of properties previously foreclosed upon, and all evictions of persons residing in previously foreclosed upon properties, until mortgage companies have completed a review of their processes, including whether employees or agents "robosigned” affidavits and other documents recorded in Texas.
The AG suspension notices were sent to 30 mortgage-loan servicers doing business in Texas.
If you are currently involved in a short sale or have concerns related to this issue, you can call the Texas Association of REALTORS® Legal Hotline, 800-873-9155, 8:30 a.m.-5 p.m.
What is the Texas Attorney General doing regarding foreclosures?
Texas Attorney General Greg Abbott has sent a demand letter to 30 mortgage banking and servicing institutions asking that these institutions immediately “suspend all foreclosures, all sales of properties previously foreclosed upon, and all evictions of persons residing in previously foreclosed upon properties” until these institutions have taken eight specific steps to rectify possible past errors in mortgage documents.
How will the demand letter affect current transactions?
If an institution chooses not to respond to or honor the demand letter, then the transaction should proceed as if no demand letter had been sent. If an institution chooses to respond to the demand letter, then the transaction could be affected in various ways:
Foreclosures: Institutions that honor the AG’s request will likely postpone foreclosures that have already been posted and will likely not post additional foreclosures until the dispute has been resolved.
Foreclosed properties that are listed for sale: Institutions that honor the AG’s request will likely not enter into a sales contract for a listed foreclosure until the dispute has been resolved.
Foreclosed properties that are under contract for sale: Institutions that honor the AG’s request may delay closing a sales contract for a listed foreclosure under contract until the dispute has been resolved.
Short sales: Institutions that honor the AG’s request may choose to delay closing on a pending short-sale transaction until the dispute has been resolved.
Evictions of persons residing in previously foreclosed upon properties: Institutions that honor the AG’s request will likely not evict previous homeowners who continue to live in the foreclosed house until the dispute has been resolved. The institutions could, however, attempt to convince the occupant to leave the property by offering cash for keys.
Source: Texas Association of REALTORS® Legal Department
The AG suspension notices were sent to 30 mortgage-loan servicers doing business in Texas.
If you are currently involved in a short sale or have concerns related to this issue, you can call the Texas Association of REALTORS® Legal Hotline, 800-873-9155, 8:30 a.m.-5 p.m.
What is the Texas Attorney General doing regarding foreclosures?
Texas Attorney General Greg Abbott has sent a demand letter to 30 mortgage banking and servicing institutions asking that these institutions immediately “suspend all foreclosures, all sales of properties previously foreclosed upon, and all evictions of persons residing in previously foreclosed upon properties” until these institutions have taken eight specific steps to rectify possible past errors in mortgage documents.
How will the demand letter affect current transactions?
If an institution chooses not to respond to or honor the demand letter, then the transaction should proceed as if no demand letter had been sent. If an institution chooses to respond to the demand letter, then the transaction could be affected in various ways:
Foreclosures: Institutions that honor the AG’s request will likely postpone foreclosures that have already been posted and will likely not post additional foreclosures until the dispute has been resolved.
Foreclosed properties that are listed for sale: Institutions that honor the AG’s request will likely not enter into a sales contract for a listed foreclosure until the dispute has been resolved.
Foreclosed properties that are under contract for sale: Institutions that honor the AG’s request may delay closing a sales contract for a listed foreclosure under contract until the dispute has been resolved.
Short sales: Institutions that honor the AG’s request may choose to delay closing on a pending short-sale transaction until the dispute has been resolved.
Evictions of persons residing in previously foreclosed upon properties: Institutions that honor the AG’s request will likely not evict previous homeowners who continue to live in the foreclosed house until the dispute has been resolved. The institutions could, however, attempt to convince the occupant to leave the property by offering cash for keys.
Source: Texas Association of REALTORS® Legal Department
Monday, October 4, 2010
Home Improvements that DON’T Necessarily Add Value to Your Home
1. Swimming Pools
Swimming pools are one of those things that may be nice to enjoy at your friend's or neighbor's house, but that can be a hassle to have at your own home. Many potential homebuyers view swimming pools as dangerous, expensive to maintain and a lawsuit waiting to happen. Families with young children in particular may turn down an otherwise perfect house because of the pool (and the fear of a child going in the pool unsupervised). In fact, a would-be buyer's offer may be contingent on the home seller dismantling an above-ground pool or filling in an in-ground pool.
An in-ground pool costs anywhere from $10,000 to more than $100,000, and additional yearly maintenance expenses need to be considered. That's a significant amount of money that might never be recouped if and when the house is sold.
2. Overbuilding for the Neighborhood
Homeowners may, in an attempt to increase the value of a home, make improvements to the property that unintentionally make the home fall outside of the norm for the neighborhood. While a large, expensive remodel, such as adding a second story with two bedrooms and a full bath, might make the home more appealing, it will not add significantly to the resale value if the house is in the midst of a neighborhood of small, one-story homes. (Overbuilding might be anticipating your neighborhood's next move.)
In general, homebuyers do not want to pay $250,000 for a house that sits in a neighborhood with an average sales price of $150,000; the house will seem overpriced even if it is more desirable than the surrounding properties. The buyer will instead look to spend the $250,000 in a $250,000 neighborhood. The house might be beautiful, but any money spent on overbuilding might be difficult to recover unless the other homes in the neighborhood follow suit.
3. Extensive Landscaping
Homebuyers may appreciate well-maintained or mature landscaping, but don't expect the home's value to increase because of it. A beautiful yard may encourage potential buyers to take a closer look at the property, but will probably not add to the selling price. If a buyer is unable or unwilling to put in the effort to maintain a garden, it will quickly become an eyesore, or the new homeowner might need to pay a qualified gardener to take charge. Either way, many buyers view elaborate landscaping as a burden (even though it might be attractive) and, as a result, are not likely to consider it when placing value on the home.
4. High-End Upgrades
Putting stainless steel appliances in your kitchen or imported tiles in your entryway may do little to increase the value of your home if the bathrooms are still vinyl-floored and the shag carpeting in the bedrooms is leftover from the '60s. Upgrades should be consistent to maintain a similar style and quality throughout the home. A home that has a beautifully remodeled and modern kitchen can be viewed as a work in project if the bathrooms remain functionally obsolete.
The remodel, therefore, might not fetch as high a return as if the rest of the home were brought up to the same level. High-quality upgrades generally increase the value of high-end homes, but not necessarily mid-range houses where the upgrade may be inconsistent with the rest of the home.
In addition, specific high-end features such as media rooms with specialized audio, visual or gaming equipment may be appealing to a few prospective buyers, but many potential homebuyers would not consider paying more for the home simply because of this additional feature. Chances are that the room would be re-tasked to a more generic living space.
5. Wall-to-Wall Carpeting
While real estate listings may still boast "new carpeting throughout" as a selling point, potential homebuyers today may cringe at the idea of having wall-to-wall carpeting. Carpeting is expensive to purchase and install. In addition, there is growing concern over the healthfulness of carpeting due to the amount of chemicals used in its processing and the potential for allergens (a serious concern for families with children). Add to that the probability that the carpet style and color that you thought was absolutely perfect might not be what someone else had in mind.
Because of these hurdles, wall-to-wall carpet is something on which it's difficult to recoup the costs. Removing carpeting and restoring wood floors is usually a more profitable investment.
COUNT ON A KELLER WILLIAMS REALTOR TO GIVE YOU THE FACTS ON THESE AND OTHER HOME IMPROVEMENTS! CALL US AT 972-562-8883 OR EMAIL MCKINNEY@KW.COM TO BE CONNECTED TO ONE OF OUR 134 AGENTS! WE ARE EXPERTS IN REAL ESTATE IN THE DALLAS METROPLEX!
Source: Jean Folger – as posted on Investopedia
Swimming pools are one of those things that may be nice to enjoy at your friend's or neighbor's house, but that can be a hassle to have at your own home. Many potential homebuyers view swimming pools as dangerous, expensive to maintain and a lawsuit waiting to happen. Families with young children in particular may turn down an otherwise perfect house because of the pool (and the fear of a child going in the pool unsupervised). In fact, a would-be buyer's offer may be contingent on the home seller dismantling an above-ground pool or filling in an in-ground pool.
An in-ground pool costs anywhere from $10,000 to more than $100,000, and additional yearly maintenance expenses need to be considered. That's a significant amount of money that might never be recouped if and when the house is sold.
2. Overbuilding for the Neighborhood
Homeowners may, in an attempt to increase the value of a home, make improvements to the property that unintentionally make the home fall outside of the norm for the neighborhood. While a large, expensive remodel, such as adding a second story with two bedrooms and a full bath, might make the home more appealing, it will not add significantly to the resale value if the house is in the midst of a neighborhood of small, one-story homes. (Overbuilding might be anticipating your neighborhood's next move.)
In general, homebuyers do not want to pay $250,000 for a house that sits in a neighborhood with an average sales price of $150,000; the house will seem overpriced even if it is more desirable than the surrounding properties. The buyer will instead look to spend the $250,000 in a $250,000 neighborhood. The house might be beautiful, but any money spent on overbuilding might be difficult to recover unless the other homes in the neighborhood follow suit.
3. Extensive Landscaping
Homebuyers may appreciate well-maintained or mature landscaping, but don't expect the home's value to increase because of it. A beautiful yard may encourage potential buyers to take a closer look at the property, but will probably not add to the selling price. If a buyer is unable or unwilling to put in the effort to maintain a garden, it will quickly become an eyesore, or the new homeowner might need to pay a qualified gardener to take charge. Either way, many buyers view elaborate landscaping as a burden (even though it might be attractive) and, as a result, are not likely to consider it when placing value on the home.
4. High-End Upgrades
Putting stainless steel appliances in your kitchen or imported tiles in your entryway may do little to increase the value of your home if the bathrooms are still vinyl-floored and the shag carpeting in the bedrooms is leftover from the '60s. Upgrades should be consistent to maintain a similar style and quality throughout the home. A home that has a beautifully remodeled and modern kitchen can be viewed as a work in project if the bathrooms remain functionally obsolete.
The remodel, therefore, might not fetch as high a return as if the rest of the home were brought up to the same level. High-quality upgrades generally increase the value of high-end homes, but not necessarily mid-range houses where the upgrade may be inconsistent with the rest of the home.
In addition, specific high-end features such as media rooms with specialized audio, visual or gaming equipment may be appealing to a few prospective buyers, but many potential homebuyers would not consider paying more for the home simply because of this additional feature. Chances are that the room would be re-tasked to a more generic living space.
5. Wall-to-Wall Carpeting
While real estate listings may still boast "new carpeting throughout" as a selling point, potential homebuyers today may cringe at the idea of having wall-to-wall carpeting. Carpeting is expensive to purchase and install. In addition, there is growing concern over the healthfulness of carpeting due to the amount of chemicals used in its processing and the potential for allergens (a serious concern for families with children). Add to that the probability that the carpet style and color that you thought was absolutely perfect might not be what someone else had in mind.
Because of these hurdles, wall-to-wall carpet is something on which it's difficult to recoup the costs. Removing carpeting and restoring wood floors is usually a more profitable investment.
COUNT ON A KELLER WILLIAMS REALTOR TO GIVE YOU THE FACTS ON THESE AND OTHER HOME IMPROVEMENTS! CALL US AT 972-562-8883 OR EMAIL MCKINNEY@KW.COM TO BE CONNECTED TO ONE OF OUR 134 AGENTS! WE ARE EXPERTS IN REAL ESTATE IN THE DALLAS METROPLEX!
Source: Jean Folger – as posted on Investopedia
Friday, October 1, 2010
Are you registered to vote?
October 4 is the deadline to register to vote in the Nov. 2 elections. If you're not registered—or you're not sure—visit the Texas Secretary of State's Web site to verify your registration or download the registration application.
Remember, to consult the Texas Association of REALTORS® Voting Guide to help elect public officials who support private-property rights and the real estate industry.
Source: Texas Association of Realtors
Remember, to consult the Texas Association of REALTORS® Voting Guide to help elect public officials who support private-property rights and the real estate industry.
Source: Texas Association of Realtors
Wednesday, September 29, 2010
Breaking News- Is a 640 credit score the new 620? A Must Read and A CALL TO ACTION!
As you know, I am committed to bring you the most- updated, must-know information on mortgage and industry changes. I have hesitated in sending the following news as it is not “set in stone” yet. However, in having conversations with many of our referring partners I think that we need to let you know the latest:
There are five major servicers in the Industry (along with a number of minor players). Typically in our market and the time we are in, the five major players set the rules and the rest follow suite. In the past few months two of the major servicers have increased the minimum FHA credit score from 620 to 640. As of Monday, Bank of America (obviously one of the five) announced that they, too, will increase to a minimum of 640 effective 10/4/2010. We have two of the major servicers still holding at 620 but our sources are telling us that they could go to 640 within the next few weeks.
What does it mean to you? Right now we are still at 620, but there is a very good possibility that 640 will become the new 620 in the weeks to come (and probably sooner than later) for FHA. So this is a Call To Action - Your current buyers that have lower credit scores (between 620-639) need to look at purchasing NOW. This change could take them out of the market in the near future to be able to purchase a home unless they can increase their credit scores to 640.
Get the word out, send this to your clients, call everyone you know- this IS Breaking News and we owe it to our buyers to let them know. With historically low interest rates, 620+ credit scores allowed, and great inventory- NOW is the time to purchase!
As always, I would love to hear from you this week and I am never too busy for your calls and questions! Simply contact me at 214-763-9192 or email me at mpotter@mckinneymg.com or mpotter@servicefirstmtg.com. Have a blessed rest of week! Remember that I am available on weekends for your prequals.
Source: Mark Potter - Service First Mortgage
There are five major servicers in the Industry (along with a number of minor players). Typically in our market and the time we are in, the five major players set the rules and the rest follow suite. In the past few months two of the major servicers have increased the minimum FHA credit score from 620 to 640. As of Monday, Bank of America (obviously one of the five) announced that they, too, will increase to a minimum of 640 effective 10/4/2010. We have two of the major servicers still holding at 620 but our sources are telling us that they could go to 640 within the next few weeks.
What does it mean to you? Right now we are still at 620, but there is a very good possibility that 640 will become the new 620 in the weeks to come (and probably sooner than later) for FHA. So this is a Call To Action - Your current buyers that have lower credit scores (between 620-639) need to look at purchasing NOW. This change could take them out of the market in the near future to be able to purchase a home unless they can increase their credit scores to 640.
Get the word out, send this to your clients, call everyone you know- this IS Breaking News and we owe it to our buyers to let them know. With historically low interest rates, 620+ credit scores allowed, and great inventory- NOW is the time to purchase!
As always, I would love to hear from you this week and I am never too busy for your calls and questions! Simply contact me at 214-763-9192 or email me at mpotter@mckinneymg.com or mpotter@servicefirstmtg.com. Have a blessed rest of week! Remember that I am available on weekends for your prequals.
Source: Mark Potter - Service First Mortgage
Tuesday, September 28, 2010
What's New in New Housing Design?
Here are the products grabbing the attention of the home building and remodeling industries, according to Bill Millholland, executive vice president of sales and marketing at Case Design/Remodeling in Maryland, and Jamie Gibbs, a New York-based interior designer:
· Appliance Drawers. Small warming drawers, modest-sized dishwasher drawers for small loads, refrigerator drawers and microwave drawers.
· Counter-depth refrigerators. Some are only 24 inches deep.
· Motion-detecting faucets. Like you'd find in the restrooms of businesses.
· LED (light-emitting diode) lighting. These are used under cabinets and in ceiling fixtures as a longer-lasting, more efficient alternative to compact fluorescent lamps and incandescent bulbs.
· Electric heated floors. A nice touch in bathrooms.
· Showers with multiple heads and body sprays. Bathtubs are out.
Source: The Washington Post (09/25/2010)as posted on Realtormag.com - 9/28/10
· Appliance Drawers. Small warming drawers, modest-sized dishwasher drawers for small loads, refrigerator drawers and microwave drawers.
· Counter-depth refrigerators. Some are only 24 inches deep.
· Motion-detecting faucets. Like you'd find in the restrooms of businesses.
· LED (light-emitting diode) lighting. These are used under cabinets and in ceiling fixtures as a longer-lasting, more efficient alternative to compact fluorescent lamps and incandescent bulbs.
· Electric heated floors. A nice touch in bathrooms.
· Showers with multiple heads and body sprays. Bathtubs are out.
Source: The Washington Post (09/25/2010)as posted on Realtormag.com - 9/28/10
Wednesday, September 22, 2010
Transform Your Property with Paint!
The best way to update a property is to paint it. It’s a job that many sellers can do themselves.
Here are six suggestions for making the work go quickly.
1. Move the furniture. Get as much furniture as possible out of the way, and then cover what’s left with plastic drop cloths held in place with masking tape.
2. Buy good paint. Top-quality latex interior paint will hide what’s underneath and make the job go faster.
3. Tape the edges. Taping the edges with painters tape will speed up the job and make the results more professional.
4. Work top down. Paint the ceiling first, then the walls, then the windows and trim and finally the baseboards. This will cut down on time spent repairing drips and splatter marks.
5. Cut in the corners. Applying a three-inch band of paint around the edges will allow you to fill in the middle with a paint roller.
6. Apply paint generously. Trying to stretch the paint won’t save sellers any money if they have to repaint.
Source: Paint Quality Institute (09/21/2010)as posted on Realtormag.com (9/22/10)
Here are six suggestions for making the work go quickly.
1. Move the furniture. Get as much furniture as possible out of the way, and then cover what’s left with plastic drop cloths held in place with masking tape.
2. Buy good paint. Top-quality latex interior paint will hide what’s underneath and make the job go faster.
3. Tape the edges. Taping the edges with painters tape will speed up the job and make the results more professional.
4. Work top down. Paint the ceiling first, then the walls, then the windows and trim and finally the baseboards. This will cut down on time spent repairing drips and splatter marks.
5. Cut in the corners. Applying a three-inch band of paint around the edges will allow you to fill in the middle with a paint roller.
6. Apply paint generously. Trying to stretch the paint won’t save sellers any money if they have to repaint.
Source: Paint Quality Institute (09/21/2010)as posted on Realtormag.com (9/22/10)
Monday, September 20, 2010
What's a Cramdown and How Does it Help Upside-down Homeowners?
The rising number of home repossessions could encourage Congress to pass cramdown legislation, something lenders fought vigorously and prevailed against when bankruptcy laws were reformed.
But the cramdown concept has been working successfully in Chapter 12 of the bankruptcy code, which affects farmland.
Cramdowns, or more properly “bifurcation,” divide the value of the debt between that which reflects the current appraised value of the property and that which is now unsecured because the underlying value has declined. The borrower is required to pay the secured portion of the loan and the remainder is treated as unsecured debt – and generally forgiven.
Economists for the Federal Reserve Bank of Cleveland wrote in a research paper that is getting a lot of attention that the negative effect of cramdowns in agricultural lending has been minor. Cramdowns succeed in keeping farmers on their properties and banks get what they would have gotten if they had foreclosed.
Source: Universal Syndicate: Lew Sichelman (09/19/2010)as posted on Realtormag.com
But the cramdown concept has been working successfully in Chapter 12 of the bankruptcy code, which affects farmland.
Cramdowns, or more properly “bifurcation,” divide the value of the debt between that which reflects the current appraised value of the property and that which is now unsecured because the underlying value has declined. The borrower is required to pay the secured portion of the loan and the remainder is treated as unsecured debt – and generally forgiven.
Economists for the Federal Reserve Bank of Cleveland wrote in a research paper that is getting a lot of attention that the negative effect of cramdowns in agricultural lending has been minor. Cramdowns succeed in keeping farmers on their properties and banks get what they would have gotten if they had foreclosed.
Source: Universal Syndicate: Lew Sichelman (09/19/2010)as posted on Realtormag.com
Subscribe to:
Posts (Atom)
Posts
