If you are like most homeowners, you probably view your home as your most important investment. Diligent homeowners often treat their homes like stock portfolios or savings accounts and always try to add value to their properties. While there are many ways to increase the value of a home, one of the most utilized methods for homeowners is the remodeling project. However, despite the remodeling successes of many homeowners, remodeling a home is not always a guarantee of added value or increased interest from potential buyers. Hence, homeowners may want to take care in how they renovate their homes, especially when there is volatility in their local housing markets. With that in mind, there are few remodeling projects that are more likely to add value to a home and allow the homeowner to recoup the costs when selling.
Based on numerous studies of the real estate market, here are the best remodeling projects to increase the value of your home and generate the most interest from prospective buyers:
· Kitchen – As one of the most used rooms in any home, upgrades made to the kitchen are always appealing to prospective buyers. Studies show, however, that the homeowners earn the most value when performing modest upgrades including new cabinets, countertops, floors and well-priced appliances. Hence, homeowners often don’t need to worry about including luxury products when remodeling the kitchen.
· Bathroom – In many cases, remodeling an existing bathroom can raise the value of the home as much as any other project. As bathrooms can typically be remodeled very affordably, this has long been a favorite project of homeowners looking to increase the value of their homes. Though the eventual recouped value seems to be contingent on region, most homeowners who remodeled existing bathrooms experienced better return on their investment than those that added new bathrooms to their homes.
· Windows – Though not as visible as remodeled kitchens or bathrooms, there are few remodeling projects that improve the overall quality of a home better than new windows. For instance, smart home buyers will recognize that new windows will not only make the home more comfortable and attractive, but will also save on heating and cooling costs.
· Siding – Though new siding and other exterior improvements may not be possible or necessary for some homeowners, no other remodeling project generates a better response from prospective buyers. Nationwide, the value recouped by homeowners that installed new siding is matched only by successful kitchen remodeling projects.
On the other hand, there are also some remodeling projects that may not provide the best value for homeowners. Real estate experts typically point to expensive additions – such as home theatres, swimming pools and wine cellars – as the riskiest remodeling projects. The key to determining if such luxurious projects will add sufficient value to the home and allow the homeowner to recoup the value lies in assessing what is right for the neighborhood. For instance, a home with two bathrooms could gain significant value when a new bathroom is added if all the surrounding properties have three or more bathrooms. Likewise, if you reside in a region where swimming pools are an expected luxury – such as the desert southwest – prospective homebuyers probably won’t see your addition as an unnecessary liability.
Most importantly, keep in mind that renovations and remodeling projects may not be as simple as they seem. It is wise to weigh the risks and to consider what is best for the local market before starting any project. If you are unsure what types of remodeling projects would add value in your neighborhood, you may want to consult a real estate agent to get a better understanding of what local buyers are looking for.
The staff at Coldwell Banker Real Estate LLC writes select articles about important topics related to real estate. For more information about buying a home or selling your current property, visit ColdwellBanker.com today.
Saturday, May 31, 2008
Sunday, May 25, 2008
Inclusions & Exclusions
Spelling out inclusions and exclusions.....
You have found the perfect property and are ready to have your real estate agent write an offer on it for you.
It is very important to be extremely clear on what is included as well as what items are going to be excluded from the sale. It is not always; what you see is what you get, in real estate. Unless you go out of your way to document your expectations and assumptions and make them known to the seller. This is especially true in recreational properties that are in remote locations.
There was one situation reported where a family purchased a large summer cabin on a mountain lake. While very few people visited the area in the winter, the couple felt they could use the cabin in cold weather because the living room included a fireplace with a new, efficient insert. They were relieved that the getaway could be heated by wood because electricity was extremely expensive in the area. When moving day finally arrived and they began setting boxes in the living room, they noticed the insert was gone.
What happened to the insert? The Buyer's assumed that the insert was a fixture because it was attached to the property. Through their real estate agent they learned that the insert was gone because their offer to purchase had not included a definitive list of items they expected to find when they took possession of the house.
The following paragraph is found in every purchase contract and has come a long way toward clarifying what is typically included in a sale.
"Any of the following personal property located in or on the property is included in this sale: built-in appliances, wall-to-wall carpeting; curtains, drapes and all other window treatments; window and door screens, awnings; storm doors and windows; installed television antennas; ventilating, air conditioning and heating equipment; wood stoves; fireplace inserts; doors; gas logs and gas log lighters; irrigation fixtures and equipment, electric garage door openers; water heaters, installed electrical fixtures; lights and light bulbs; shrubs, plants and trees; hot tubs; and all bathroom and other fixtures."
Though the phrase "and other fixtures" still leaves room for dispute. What are other fixtures? Can they be washing machines attached to the wall by a rubber hose? Not always....
In some cases, the buyer's wishes simply fall through the cracks -- a coveted hand carved door to the den never was included on the fixtures list, so it was not included in the sale and it was carted away by the seller. Stained-glass windows caused a recent problem. The seller assumed they were art and planned to replace them with the common windows stored in the basement. The buyer said the stained-glass was one of the reasons the home was appealing and assumed they came with the house. After shock, resentment and bitterness, the two parties settled on a lower sales price and the seller took the stained glass.
The moral to the story? When in doubt, spell it out!
You have found the perfect property and are ready to have your real estate agent write an offer on it for you.
It is very important to be extremely clear on what is included as well as what items are going to be excluded from the sale. It is not always; what you see is what you get, in real estate. Unless you go out of your way to document your expectations and assumptions and make them known to the seller. This is especially true in recreational properties that are in remote locations.
There was one situation reported where a family purchased a large summer cabin on a mountain lake. While very few people visited the area in the winter, the couple felt they could use the cabin in cold weather because the living room included a fireplace with a new, efficient insert. They were relieved that the getaway could be heated by wood because electricity was extremely expensive in the area. When moving day finally arrived and they began setting boxes in the living room, they noticed the insert was gone.
What happened to the insert? The Buyer's assumed that the insert was a fixture because it was attached to the property. Through their real estate agent they learned that the insert was gone because their offer to purchase had not included a definitive list of items they expected to find when they took possession of the house.
The following paragraph is found in every purchase contract and has come a long way toward clarifying what is typically included in a sale.
"Any of the following personal property located in or on the property is included in this sale: built-in appliances, wall-to-wall carpeting; curtains, drapes and all other window treatments; window and door screens, awnings; storm doors and windows; installed television antennas; ventilating, air conditioning and heating equipment; wood stoves; fireplace inserts; doors; gas logs and gas log lighters; irrigation fixtures and equipment, electric garage door openers; water heaters, installed electrical fixtures; lights and light bulbs; shrubs, plants and trees; hot tubs; and all bathroom and other fixtures."
Though the phrase "and other fixtures" still leaves room for dispute. What are other fixtures? Can they be washing machines attached to the wall by a rubber hose? Not always....
In some cases, the buyer's wishes simply fall through the cracks -- a coveted hand carved door to the den never was included on the fixtures list, so it was not included in the sale and it was carted away by the seller. Stained-glass windows caused a recent problem. The seller assumed they were art and planned to replace them with the common windows stored in the basement. The buyer said the stained-glass was one of the reasons the home was appealing and assumed they came with the house. After shock, resentment and bitterness, the two parties settled on a lower sales price and the seller took the stained glass.
The moral to the story? When in doubt, spell it out!
Sunday, May 18, 2008
Your Credit Score Is Important
Now that the mortgage industry is going through another revamping, it's becoming more and more difficult to get a mortgage. It's also more difficult to get a GOOD INTEREST RATE!
In a nutshell, the higher your credit score, the lower your interest rate will be. There are a number of things that you can do to increase that all important number.
#1 PAY OFF YOUR PAST DUE BALANCES - The important balances are those that are past due today or within the past two years. Get them paid off and your credit score will improve.
#2 KEEP SOME CREDIT CARD ACCOUNTS OPEN - Your credit score is based upon your credit history. Even if you don't use the card often, keeping it open and paid up will help your score. It's important, also, if you keep a balance on the account that you stay below 30% of your credit limit. If staying below 30% is not possible, consider requesting a higher credit limit on the account.
#3 WATCH FOR ERRORS ON YOUR CREDIT REPORT - Yes, sometimes credit reporting agencies make mistakes on individual credit reports or don't have up to date information on balances that are paid. If you notice a mistake, contact the credit bureau and request that they make the necessary changes to your credit report. You will need to prove to them that you did actually pay the amount due. They must rectify the error within 30 days.
These few steps will help to get and keep your credit score higher. Work diligently on these and the next mortgage you apply for will most certainly be lower with your new, higher credit score!!!
Good luck!
Irene Jans
Winter Park Partners, team
In a nutshell, the higher your credit score, the lower your interest rate will be. There are a number of things that you can do to increase that all important number.
#1 PAY OFF YOUR PAST DUE BALANCES - The important balances are those that are past due today or within the past two years. Get them paid off and your credit score will improve.
#2 KEEP SOME CREDIT CARD ACCOUNTS OPEN - Your credit score is based upon your credit history. Even if you don't use the card often, keeping it open and paid up will help your score. It's important, also, if you keep a balance on the account that you stay below 30% of your credit limit. If staying below 30% is not possible, consider requesting a higher credit limit on the account.
#3 WATCH FOR ERRORS ON YOUR CREDIT REPORT - Yes, sometimes credit reporting agencies make mistakes on individual credit reports or don't have up to date information on balances that are paid. If you notice a mistake, contact the credit bureau and request that they make the necessary changes to your credit report. You will need to prove to them that you did actually pay the amount due. They must rectify the error within 30 days.
These few steps will help to get and keep your credit score higher. Work diligently on these and the next mortgage you apply for will most certainly be lower with your new, higher credit score!!!
Good luck!
Irene Jans
Winter Park Partners, team
Sunday, May 11, 2008
Are you ready for a Second Home??
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Vacation homes are selling at record rates according to the National Association of Realtors (NAR) and now is a great time to consider buying that second home, whether for investment or vacation purposes.A couple of items to keep in mind are:
1. LOCATION, LOCATION, LOCATION-Imagine your second home near World Class Winter Park Ski Resort where you can ski in the winter and mountain bike in the summer! Resort Developer, Intrawest, has begun construction of the new Base Village if you want to be in the middle of winter activity or Sterling Pointe if you want to be close but away from the hustle and bustle.
2. KNOW YOUR TAX LAWS-Always consult your accountant. Vacation homes used primarily by the owners are considered personal residences, enabling you to deduct interest on the mortgage and realize other tax benefits. You may also be entitled to tax benefits when you rent out your second home for a portion of the year.
Sunday, May 4, 2008
Step Up to Sterling Pointe
Sterling Pointe is located in the heart of Grand County's Playground! Two and three bedroom condominiums and townhomes priced from the low 300"s. Sterling Pointe offers distinctive mountain lodge style architecture with attached one and two car garages and cozy fireplace.
LIVE THE GRAND COUNTY LIFESTYLE AND BE PART OF THIS NEW AND EXCITING DEVELOPMENT AT STERLING POINTE!
We have released phase 1 and currently have 14 of the condominium style units under contract. For more information visit http://www.sterlingpointellc.com/
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