Wednesday, March 2, 2011

Is your home-renovation project really worth doing?


ARA) - Maybe you've watched one too many home improvement shows. Perhaps you're still stinging from that holiday guest's comment about how your kitchen countertop has seen better days. Or maybe you're just really tired of the same old, same old every day.

Whatever the reason the remodeling itch has settled into your brain, before you bring in a contractor - or pick up a hammer - you should consider two important questions: How will you fund your project? And will it be worth it in the end?

A little research and credit self-assessment can answer both questions. In addition to pulling your credit report to see how likely you are to qualify for good loan terms, you should consider the potential resale value of the improvement, how it will improve your life and if it will enhance your enjoyment of your home.

Fortunately, it's not difficult to evaluate the potential resale value. Kitchen and bathroom remodels, adding a deck, or finishing a basement or attic are all popular renovations because they upgrade the most-used rooms in the house or add living space.

In terms of resale value, here are some popular projects with high paybacks, according to Remodeling Magazine's 2009-2010 Cost versus Value Report:

  • Adding an attic bedroom - 83.1 percent
  • Adding a wooden deck - 80.6 percent
  • Minor kitchen remodel - 78.3 percent
  • Major kitchen remodel - 72.1 percent
  • Basement remodel - 75.4 percent
  • Bathroom remodel - 71 percent

Keep in mind that smaller remodels, while costing less than major jobs, can still have a major impact on how your home looks and feels. For example, simply replacing that old front door with a steel version can cost around $1,000 but offers a return on investment of nearly 129 percent, according to the report.

Another factor to consider when weighing the value of any remodeling project is how it will affect your quality of life in terms of financial security. It's important to be sure the cost of the project won't be a financial burden that detracts from your enjoyment of the results.

To help understand your current credit status and how it might affect your remodeling loan terms, obtain a copy of your credit report. Websites like CreditReport.com can provide you with a credit report with your paid monitoring membership. Obtaining your credit report and monitoring your credit can help you identify any inaccuracies or errors that might lead to higher interest rates, and also catch and resolve potential fraud quickly. You'll also find tips on the website for understanding your credit, and tools such as a credit score tracker to help you anticipate how certain financial decisions - like financing a remodel - might affect your credit.

Remodeling projects will likely remain popular as homeowners continue to stay put in a still-sluggish real estate market, experts agree. With some careful planning, budgeting, research and credit insight, you can ensure you reap the most financial and personal value for whatever renovation you decide to undertake.

Courtesy of ARAcontent

Nonprofit Organization Rehabs Discarded Houses into Super-Efficient Homes By Bruce Siceloff


RISMEDIA, October 1, 2010—(MCT)—Wendy and Robby Haun had to sell their home near Cary, N.C., to make way for a state highway project, but the comfortable ranch house did not go to waste. It went to Builders of Hope, a pioneering Raleigh, N.C., nonprofit that has found new life and new families for more than 60 discarded dwellings in the past four years. Since 1999, the Hauns had lived in the house next door to Wendy’s childhood home. The N.C. Turnpike Authority bought both houses for the 18-mile Triangle Expressway which is now under construction.

After they moved in November into a bigger place on a smaller lot a few miles away, the Hauns yearned to see their old house put to good use.

“We got frustrated trying to donate things from our old house to Habitat for Humanity,” said Robby Haun. “We opened the doors and told people to take anything out. They got ceiling fans and some solid wood doors. Somebody took the carpet. They got a toilet.”

Builders of Hope is moved by that same recycling impulse, but the group works on a larger plane.

The organization stripped the Hauns’ house—which was donated by the state—and reduced it to little more than studs and subfloor. The remainder was trucked to Fuquay-Varina and replanted in Consolidated Pines, a new subdivision that will be filled in the next couple of years with 18 affordable “green” homes for first-time buyers.

Over the summer, the house was radically overhauled with super-efficient HVAC system and windows, foam insulation and low-flow plumbing, Energy Star appliances, air-tight siding and roofing, and a big porch and front door where the side door used to be.

Builders of Hope sold the 1,350-square-foot house at cost to Shaun Cross, pastor of a small Angier, N.C., church, and his wife, Melissa Cross.

“We were doing fine, and our rent was cheap,” said Melissa Cross. “But when they started this new neighborhood in Fuquay-Varina, it was where we wanted to live. We really like the Builders of Hope philosophy and the beautiful homes they make, and there was the first-time home buyer tax credit. A lot of things lined up for it.”

Builders of Hope’s radically rehabbed homes vary in size and sell for an average of $130,000, less than half of the $270,000 average price of a new home in Wake County, N.C.

The prices are low for several reasons. The donated houses are free. Federal, state and local government grants cover all or part of the land costs. Other government subsidies and private grants augment the organization’s revenue from home sales and from rent on dozens of green-rehabbed apartments.

Most homes are available only to families that earn no more than 80% of the median income. That means, in most cases, a Wake County family of four would qualify with a yearly income of $61,500 or less.

“And that’s working America,” said Nancy W. Murray of Raleigh, a former advertising executive and real estate developer who founded Builders of Hope in 2006. “We’re building for a group of people that has been locked out of the housing market for decades.”

Murray stood in the cul-de-sac of State Street Village, a new Raleigh neighborhood that will be filled with 25 recycled and rehabbed homes by spring 2011. Eleven families have moved in during the past year, and five more donated houses are being rebuilt on new foundations.

She pointed to attractive homes with rain barrels and drought-tolerant lawns and talked about their new owners.

“The gal right there works for the DMV,” Murray said. “The person there is a retired disabled gentleman. Next door is a teacher. Next door to that is a single mom that works for a pediatrician’s office.”

The houses come from all over. A handful are from Rolling Hills, a failed subdivision near downtown Durham, N.C. A few were on lots inside Raleigh, where owners wanted to replace small houses with large ones. Instead of paying $20,000 or more to demolish and remove the old houses, the owners earned tax deductions for donating them to Builders of Hope. Most of the houses are rotated sideways onto small lots, with porches built onto their new fronts. “So they look like they all match and belong together, even though they’re pulled from all over the Triangle,” Murray said.

Builders of Hope has settled new families in redeveloped neighborhoods in Raleigh, Fuquay-Varina, Durham and Cary, with more homes in the pipeline for all four communities and in Charlotte, N.C.

And the group, now with 50 employees, is reaching beyond North Carolina. This month in New Orleans, Builders of Hope began moving and rehabbing 100 houses from a historic district that would have been bulldozed for a new hospital. More projects with a few hundred homes and apartments are planned in Dallas and Fort Worth.

The whole-house rehab approach elevates recycling to a larger scale. It sets Builders of Hope apart from other affordable housing organizations, such as Habitat for Humanity, that use materials salvaged from old homes when they build new ones.

“We’re taking raw land and developing it and wholly comprising that community of recycled homes,” Murray said. “Every lot here in State Street Village, all 25 lots, are going to be filled up with houses that were saved and rescued from somewhere else.” Those recycled houses will keep about 1.5 million pounds of construction debris out of landfills, Murray said.

After Wendy Haun’s childhood home was stripped to the size of a double-wide mobile home, it sat for weeks until Builders of Hope had a spot for it. Last week, workers prepared a new foundation on Lot 2 at State Street Village, where the house will be installed and rebuilt for a new family. “We’re selling them before we get them out here,” Murray said.

The organization matches buyers with houses and helps the buyers qualify for grants and other housing subsidies. The whole process, from receiving a donated home to closing the sale with its new owner, can take as little as four months.

Shaun and Melissa Cross paid $154,000 for their house in Fuquay-Varina.

Two weeks after they moved in, the Crosses and their two children opened the new-old home to its former owners.

Wendy and Robby Haun could hardly recognize the place. They struggled to get their bearings in a bamboo-floored living room that had been their white-linoleum kitchen. “It looks great, but it looks nothing like it was,” Robby Haun said. “The only thing I can recognize is the master bedroom and the two stairwells.”

Just as hard to recognize are the Crosses’ low utility bills.

The Raleigh-based nonprofit Advanced Energy, a Builders of Hope partner, pledges to reimburse them if they spend more than $45 a month to heat and cool the house. “That’s the part that got to me when I heard it,” said Wendy Haun. “Ours was never that cheap.” The Hauns shelled out $150-$240 a month when they lived inside these walls, and the house was never comfortable in the worst of summer and winter.

The Crosses had similar memories of their drafty old rental house. “You’d be upstairs and it would be like 85 degrees, and downstairs it was 60,” said Shaun Cross.

“It will certainly help our budget now, to know we’re not going to exceed $45 a month,” Melissa said.

As the Hauns walked back to their car, Wendy took a last look at the reincarnation of a house she had known her whole life. “I lived there for 10 years, and before that, I grew up beside that house,” she said. “It makes me feel good that it wasn’t just torn down and is being used for a good purpose.”

Monday, February 21, 2011

Defining a true real estate recovery

Defining a true real estate recoveryMood of the Market
By Tara-Nicholle NelsonInman News™
February 21, 2011
Our esteemed 33rd president, Harry S. Truman, once said, "It's a recession when your neighbor loses his job; it's a depression when you lose yours." In the vein of everything old becoming new again, it seems that this eye-of-the-beholder issue has never rung truer than when it comes to pinpointing when the current/recent real estate recession began, and when it ended (or will end, depending on your point of view).
The Standard & Poor's Case-Shiller Home Price Indices calls recession and recovery in terms of peaks, troughs and the rises and falls thereto and therefrom. The Case-Shiller called the top of the market in 2006 or 2007, depending on the market, and the bottom of the national housing market in the spring of 2009; the Case-Shiller is primed to mark another nationwide bottom -- the second dip -- any moment now.
Last fall, a committee that studies business cycles for the National Bureau of Economic Research raised more than a few eyebrows when it declared that technically, the recession had been over for more than a year. The NBER's Business Cycle Dating Committee said the recession began in December 2007, and ended 18 months later when the economy stopped contracting and began to expand again.
But for many individual Americans who own homes, the Truman definition rules their personal sense of when the recession began. That is, the housing crisis became real only when the prospective listing agents told them what the comparable sales looked like for their home, when they received a notice from the county that their property taxes were being reduced (without having applied for a reduction in their home's assessed value), when they lost their job and realized they couldn't sell the place for what they owed on it, or when their mortgage payment began increasing and they realized they couldn't refinance the loan because the place wouldn't appraise at their current loan balance.
While the housing bubble's deflation occurred in a geographically spotty manner over a year's time, which made it even tougher for the average Jane to pinpoint -- it was still more of an encapsulated event -- than recovery will be. Media outlets and real estate data reports have proliferated faster than Android apps, so that recovery and its absence are alternatively heralded, predicted or dismissed on a weekly or even daily basis in various outlets.
The Case-Shiller ostensibly views recovery as a return of home values to their mid-decade peaks, while former Fed Chair Alan Greenspan recently said recovery wouldn't be here until housing prices rise another 10 percent from the status quo.
All these definitions have turned the issue of when the real estate recovery was, is or will be into an economic Tower of Babel, with every analyst and report shouting out about a different definition of recovery, so that no one really understands what the other is talking about.
And in the minds of homebuyers, sellers and homeowners, this disconnect is exponentially gappier, because their positions on what recovery is is largely driven by their own perceived interests, as I realized in a recent conversation on my Facebook page about the Obama administration's proposal to phase Fannie Mae and Freddie Mac entirely out of existence.
I had sketched out a number of implications to the proposal -- including hikes in loan costs, interest rates, down-payment requirements and, generally speaking, the barrier to entry to homeownership. But I'd also mentioned that the Fannie/Freddie bailout has U.S. taxpayers $130 billion in the hole, and counting, and that the proposal provides a set of options to resolve the troubling and ideally, very temporary, current state of affairs, in which 90 percent of the home loans originated on today's market are backed in some way by the federal government.
Most real estate professionals and virtually all prospective homebuyers thought this was outrageous and would cripple the market. Those viewing the matter from their perspective as taxpayers thought that for the government to do anything but phase Fannie and Freddie out would be the real outrage. "But recovery will take longer," cried the first group, "or never happen at all," indicating that their definition of recovery was probably tied to a rise in home values or sales activity. The other group thinks recovery, by definition, will include a stable market, not propped up by the government, where homebuyers and refinancing homeowners are required to document some serious creditworthiness and put significant swathes of their own skin in the game when they take mortgages.
In his 1980 presidential election campaign, Ronald Reagan appended a definition of recovery onto Truman's definitions of recession and depression: Recovery, Reagan said, "is when Jimmy Carter loses his" job -- as U.S. president.
In today's American economy, there is no single person whose position in or out of any office will generate the housing market's recovery. The fact is, many homeowners won't think the market has recovered until it gets back to their mental target value for their home; and some buyers won't think recovery is here until they've been priced out. In every household, there is a single person whose sense of what recovery is will dictate whether it has been achieved in his or her mind: you.
Tara-Nicholle Nelson is author of "The Savvy Woman's Homebuying Handbook" and "Trillion Dollar Women: Use Your Power to Make Buying and Remodeling Decisions." Tara is also the Consumer Ambassador and Educator for real estate listings search site Trulia.com. Ask her a real estate question online or visit her website, www.rethinkrealestate.com.

Saturday, February 19, 2011

Short Sales and long lasting candles

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January 19, 2011 in Blog by admin
Short sales and long lasting candles
I recently saw a short sale listing come on the MLS at what seemed to be a very attractive price. I called the listing agent to find out why it was priced the way it was. I was told, “We are just trying to getan offer so the bank will start the negotiation process.” I am sure this Realtor had the best intentions, but unfortunately they are setting both the seller and the potential buyer up for lots of frustrations.
If you choose to write an offer on a short sale, make sure your Realtor does a market analysis on the home. If you were to write an offer on the above listing example, more than likely you would be inescrow for several months, only to find out the bank wants considerable more than your offer is written for.
Is there a secret? I am not sure I would call it a secret, but basic homework, common sense, a market analysis and “qualifying the listing agent” by your Realtor can make all the difference in the world.
Qualifying the listing agent? Yes, unfortunately many Realtors are attempting to do accomplish something they have never accomplished before. Have your Realtor “qualify” the listing agent. Your Realtor should ask the listing agent, “Have you completed a short sale in the past? Do you have a system in place?” Just get a feel for how knowledgeable they are about the short sale process. Based on theanswers, you and your Realtor can make an educated decision about moving forward with an offer, or not.Short sale process:Identify a home.Have your Realtor do a market analysis on the home.Find out how many loans are on the home.Qualify the listing agent.Write an offer, your offer price is very important.Offer is accepted by seller.Wait for bank to approve the sale.Pray. (If you don’t pray, light some long lasting candles)Month one will come and go.Pray some more. (Relight candles)Month two will come and go.Keep praying. (Relight candles again)Month three to month six, you should have an answer.Move on, if bank denies.Rejoice, if bank approves.

Tuesday, February 15, 2011

Hang Drapes



Drapes will not only help block drafts, they'll add a nice layer of softness to your walls. Choose tightly woven fabrics with an insulated lining (often foam acrylic) for the most warmth, and hang them from ceiling to floor, which will maximize coverage and anchor the room, creating a pleasantly cocooning effect.Read more at Wholeliving.com

Wednesday, February 9, 2011

Boise State breaks ground to start student housing project

by Jennifer GonzalezPublished: February 3,2011 Time posted: 12:00 pmTags: , ,
Construction began Feb. 1 on the Lincoln Avenue student housing project that will provide Boise State University with additional housing for 360 students.
“Additional campus housing further develops the sense of citizenship we are building by placing students in the center of campus life,” Boise State President Bob Kustra said. “This housing community will allow a student to live on campus all four years, which studies show positively impacts student success.”
The project lines Lincoln Avenue south of the Lincoln Parking Garage. The 90 two-story townhouse style units offer a campus living option for upperclassmen. Expected completion date is January 2012.
State school officials recognize the importance of junior and senior students living on campus, but have not had the money to build more housing. The $15.8 million housing project, approved in January, is paid for with a combination of redirected bond proceeds, a result of savings from previous building projects and university and student housing reserves. The university will be repaid with student housing revenues.
Boise-based ESI Construction is general contractor for the project. Oz Architects of Denver is the architect.
The Lincoln housing project is Boise State’s dedicated to upperclass students. Demand for on-campus housing at Boise State continues to grow and the university has doubled its student housing capacity since 2004. About 2,300 students currently live on campus in six residence halls and a variety of suites/apartment complexes.
“To have a residential experience you have to have the right residential facilities,” said Jeff Hale, executive director of University Housing. “This is more than just a place where students will live. It completes the collegiate experience and enables students to better connect to resources like the library, campus recreation, the Student Union and health services.”
Each unit has four bedrooms and two baths and will offer students more space than is typically found in student housing. The initial 360-bed project that began today is part of a larger 874-bed design that may be completed at a later date.
The new housing option will help encourage juniors and seniors to continue to live on campus and be active members of a growing on-campus community, said Alexa Walker, student president of the University Housing Association.
“A four-year degree plan will now be matched with a four-year residential living plan for students,” Walker said.

Hot Design Trends

By Erica Christoffer, REALTOR® Magazine

nahbintlbuildersshowlogoSmaller spaces, energy efficiency, Earth tones, and outdoor entertainment are all the buzz as the latest design trends debut at the International Builders’ Show in Orlando this week.

A survey of 2,000 consumers conducted by Better Homes and Gardens found that buyers don’t want any “wasted space” in their next home. They are seeking more value for their dollar, said editorial director Jill Waage, who presented the study’s findings Thursday. Affordability remains a high priority as well as energy efficiency, which was ranked highest to 68 percent of the consumers polled.laundry room

“Consumers are once again dreaming about their next home as well as planning ways to make their current home reflect their personal style and needs,” said Waage. “They are also setting priorities and watching their wallets in the process.”

The top ranked living space features listed by consumers are a separate laundry room, additional storage space with walk in closets or build-ins, a home office or workspace, outdoor living areas, at least one bathroom with its own private bath, and everyday eating space in or close to the kitchen.

“Today’s family wants a hive area where they can move seamlessly from mealtime to tech time to game/entertainment/hobby time to homework time,” said Waage.

Kay Green of Kay Green Design echoed Waage’s findings in her International Builders’ Show presentation Friday. “People want more of a clean line look with contemporary interiors,” Green said. “Stainless steel continues to be popular.”

bath to spaHere are more design trends taking hold in 2011:

  • Outdoor amenities such as grills, sinks, showers, and entertainment areas.
  • Freestanding tubs with a separate stand-up shower in the bathroom.
  • Color schemes – Earth tones, blues and blue greens, chocolate browns.
  • International design influence, especially Asian design in both décor and functional products.
  • Ceiling details accenting rooms within open floor plans.
  • Media space for flat screen TVs and gaming systems, and living areas wired for technology.
  • Organizational features, built-ins, and smart storage areas throughout the home.
  • Universal design features incorporated in subtle ways.
  • Artistic tile in kitchens and baths, often emulating organic patterns found in nature.
  • Energy efficient products – washing machines, dish washers, toilets, and showerheads.
  • LED lighting incorporated into sinks, showers, and medicine cabinets