DECIDING TO REMODEL OR MOVE - THAT IS THE QUESTION?

 You look around your home and you see things that could be done to improve the flow and efficiency of your home.  Do you add a new bathroom or remodel your small kitchen to better serve your growing family?  Or do you add a new bedroom or in-law-suite to help your aging parents.  If you are asking these questions, then this blog is for you.

1. List home improvement goals.  Get out your note pad and make a list of the projects you would want to do.  This list will later serve as the foundation for remodel or renovation cost estimate. 

2. Learn your local market.  Now that you have compiled your home improvement project list, let us flip the coin and study your current housing market. As you have been driving through your neighborhood have you noticed other homes for sale?  How long were they on the market before they sold?  When I move, what is the neighborhood I want is the market like in that area? Will I have enough from the sale of my house to move into that community?

3. Estimate the cost of renovations (DIY/Contractor) Some home renovations and remodels can easily be handled as DIYs while others require licensed contractors to complete.  Knowing your skill set and limits can save you from additional cost when the project is done by a licensed contractor.  Get a minimum of three estimate for all the work to be done.  If you are a DIYer, calculate your time as a labor expense.  You are not working for free.

4. Compare the cost you would incur if you sold your home to your remodel estimate.  If you decide to sell, will it be with the assistance of a real estate agent or will you sell it yourself (For Sale by Owner).  Should you utilize a real estate agent ask them for a breakdown of expenses and closing costs.  If you sell it FSBO, do not forget your time has value and the time away from other projects will be an expense as you sell your house.

5. Weigh the emotional benefits. Buying or selling a home is an emotional experience and each person reacts and responds differently.  Weighing the financial and emotional side of this equation may prove stressful, but once the decision is made do not second guess your decision.  Stick with it and move forward.

WHY THE REAL ESTATE REBOUND?

The housing slowdown of March and April is a thing of the past as the real estate market rebounds in the last quarter of 2020.  Here are 4 key factors driving the rebound.

Four Factors: 

1. Low interest rates for mortgages.  A compelling motive for purchasing a home currently is the record low mortgage rates.  Prior to the March - April slow down, rates were moving lower, but when the economy went into a deep dive, the Fed lowered rates lower to reignite the economy.

2. WFH (Work from Home).  Work from Home is not a novel idea but has been around for many years.  During the height of the pandemic many businesses, out of necessity, were forced to restructure their operation where work from home became the viable option.  Homeowners carved out office space and classroom space to meet the need.  Remote home offices help drive the real estate rebound as employees look for a home with "office space".

3. Pent up demand.  The number of active buyers increased while the number of active sellers decreased bringing inventories to a dramatic low.  Despite the low inventories, buyers outnumber sellers and the demand for new homes has bolstered new housing construction.

4. Life events.  Life goes on even in the face of adversity.  People are still getting married, divorced, having children, or downsizing their housing needs.  Many families are moving out of the urban areas and looking to relocate in a more rural setting. 

The outlook for 2021 real estate market remains strongly optimistic and many market watchers anticipate the rebound will continue into the 2nd quarter of 2021.

SHORT LIST OF MUST HAVE TOOLS FOR HOMEOWNERS

 

You have a little DIY project you want to do in your home, and you do not want to hire a handyman to do it.  You have been watching "This Old House" and other DIY shows and think you have the "skills" necessary to complete the project. What tools should one find in your toolbox.  Below is a short list of some essential tools to help with most projects around home

1. Measuring tape.  This is an obvious tool needed for most projects in your home.  The question is how much tap do you need?  No use buying a 100-foot retractable tape when you must measure 24 inches.  Most DIYers are comfortable handling a 25- foot retractable measuring tape.  

2. Hammer.  There are several types of hammers on the market and hardware salesperson can help you buy the right one for the job.  Here are a few hints when purchasing a hammer.  First, how does the hammer fit my hand? Second, Is it the right hammer for the project?  Third, Can I use the hammer for other projects around the house (other than cracking walnuts)?

3. Screw drivers. Best approach to buying screwdrivers is to buy a set.  The number of screwdrivers in the set may vary, but it is good to have at least 6 - 8 screw drivers of various lengths to allow access to various locations.  Included in the set should be both Phillips tip and blade tip screwdrivers.  

4. Pliers.  Buying pliers is like buying screwdrivers - buy a starter set which includes a tongue and groove, side cutting, long nose, and slip joint.  These four will serve as your basic set of pliers.  

5. Wrenches.  Do not be overwhelmed by the number and variety of wrenches in your local hardware store. As a first time DIYer look for a set of standard wrenches that run the span of sizes from 1/4" to 7/8". 

6. Level.  A level is your best friend when hanging things like photos, window coverings, and large pictures.  Again, levels come in a variety of lengths. A 2-foot level will serve well for most home projects.  For small projects you can purchase a 9" torpedo level.  

7. Utility knife. A retractable blade utility knife is an essential tool for your toolbox.  The utility knife allows your trim excess material or expose wires.  A utility knife is a necessity when hanging wallpaper or scraping dried caulk off tile or sink counters.  

Fill your toolbox with these essential tools and you will be a DIY pro in no time.

FINDING YOUR DREAM HOME OR NOT!

"Once upon a time, there was ...", we have all heard that beginning before as we read children's books. We know the ending is going to be, "and they lived happily ever after."  Some folks approach finding a new home in the same way when they picture their "dream home."

If you watch some to the programs on television where couples make their "wish list" for their next, you may wonder why the real estate agent has to remind the potential buyers that "we may not find everything on your list."

"Finding everything on your list" is the point of today's blog.  What can you as a buyer do to "find everything on your list?" Here are 5 tips to help you.

1. Research the homes in the area you want to live.  This is not that difficult with today's computer assisted search engines like Zillow, Redfin, Realtor.com.  Set the parameters for your ideal home.  Know your price point, necessary rooms, size of the home, pool, no pool, garage, desired zip code, etc.  

2. Does your wish list stay within your budget?  With all the items I want in my new home will those items be something I can afford.  You must fight the urge for more simply because more may be beyond your budget.

3. Will obtaining your dream home include renovations or a remodel?  To make your dream home a reality will it include renovations or a remodel and can your budget handle the unseen?  Replacing a roof or doing a total rewiring of your home may not have been in your budget at the outset, but can it take the hit mid-stream.

4. How long will I search for my dream home? Am I operating under a time constraint and need a home tomorrow, or do I have the luxury of an ongoing search?  Time is both a friend and an enemy when searching for a new home.  What does your timeline look like?

5. Is compromise in my vocabulary? Making concessions to your wish list may be difficult but can you do it when the time comes to make the decision.  Am I willing to give up something to gain in the end? Am I willing to walk away from a deal because I am unwilling to compromise?

Certainly 5 things to ponder as you go searching for my dream home.  

 

10 TIPS WHEN RENTING A HOUSE (Part 2)

Renting a house is a viable option to renting an apartment or condominium or outright purchasing a home.  For those who choose renting, here are the last of the 10 tips to consider before signing on the dotted line.

6. Keep up with property maintenance.  "An ounce of prevention is better than a pound of cure."  The old saying is so true when it comes to keeping up with the maintenance of the property.  Take care of what you are obligated to do for your landlord.  If it is beyond your skill level check with your landlord for the name of a preferred repair person.  

7. Do a deep cleaning of the property.  When it comes time for you to move on, leave the home in the condition you found it.  Landlords appreciate renters who do so, and it goes a long way should you use them as a future reference.  

8.Ask about customization.  If you want to make any personal modifications to the home check with the Landlord first and obtain written permission to make those modifications.  Discuss with the Landlord any color changes to walls you would like to make.  Keep the customizations to a limit.  Too many changes may send up a red flag to the Landlord.

9. Have a good relationship with the Landlord.  Maintain the proper respect for your Landlord and do not abuse the relationship.  

10. Request your security deposit back when you move out.  A security deposit serves two key purposes. It is a commitment on your part as a renter.  Next, it is a financial buffer for your Landlord should there be damages above normal wear and tear to the property.  Barring any unforeseen damages to the home, your security deposit is yours and the landlord is obligated to refund it to you within a reasonable time.

When renting a home, it is always to your advantage to be well educated on what to expect.  First time renters may feel overwhelmed with the ins and outs of renting but knowing these 10 tips can help make the experience much easier.