When tackling home remodeling projects, you’ll find some projects pay off more than others at times of resale. Remodeling Magazine, in conjunction with REALTOR® Magazine, recently released findings of its annual Cost vs. Value report for 2011-2012, revealing which remodeling projects offer the biggest bang for your buck.
Overall, the trend right now is replacement over remodeling–swapping out the old for the new rather than doing a total gut job, which can be much more costly.
This year’s Cost vs. Value report found that exterior replacement projects–such as new garage doors and a new entry door–offer some of the best returns at resale, allowing home owners to recoup close to 70 percent or more of the costs of the project at times of resale.
The following are the top, mid-range projects from this year’s report, based on what home owners stand to recoup at time of resale:
1. Replacing the entry door to steel
Estimated cost: $1,238
Cost recouped at resale: 73%
2. Attic bedroom (converting unfinished attic space into a bedroom with bathroom and shower)
Estimated cost: $50,148
Cost recouped at resale: 72.5%
3. Minor kitchen remodel (including new cabinets and drawers, countertops, hardware, and appliances)
Estimated cost: $19,588
Cost recouped at resale: 72.1%
4. Garage door replacement
Estimated cost: $1,512
Cost recouped at resale: 71.9%
5. Deck addition (wood)
Estimated cost: $10,350
Cost recouped at resale: 70.1%
6. Siding replacement (vinyl)
Estimated cost: $11,729
Cost recouped at resale: 69.5%
By Melissa Dittmann Tracey, REALTOR® Magazine
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Topic Summary: What's on the minds of voters when it comes to tax incentives for home ownership?
We all know that Washington is looking for ways to trim the deficit and cut programs. One of the targets this coming year is sure to be the most cherished deduction for many homeowners, the mortgage interest deduction.
Being in an election season, voters are now making up their minds about their own situation and are expressing their views found in two recent surveys. In the first survey from the National Association of Home Builders, nearly three out of four American voters believe that it is reasonable and appropriate for the federal government to provide tax incentives to promote home ownership. This finding is shared almost equally across partisan lines, Democratic, Republican or Independent.
When it comes to support or lack of support for a candidate the survey uncovered: "By a more than two-to-one margin (57 percent to 26 percent), voters said they would be less likely to vote for a candidate who supports eliminating the mortgage interest deduction. These figures held firm across the political spectrum, with 63 percent of Republicans, 56 percent of Independents, 55 percent of Democrats and 61 percent of tea party supporters saying they would be less likely to support a candidate who favored killing the deduction."
As to the "status" of home ownership as it relates to the American Dream, the polling data also shows:
During the past few years, lawsuits related to mold and other pesky microbes have spread across courts in the same way mold spreads through a home, causing some legal experts to wonder if these claims will outpace the asbestos litigation they've seen over the past two decades.Many of these lawsuits are being initiated by homeowners who believe the mold growth resulted from faulty design, construction, or repair of the home. Other lawsuits arise because the homeowners discover that the previous owners and/or the real estate agents involved were aware of the presence of toxic mold and failed to disclose it.Most of these cases revolve around a recurring theme: Certain conditions fostered the growth of toxic mold, causing building damage and personal injury.
How Can Mold Affect Your Health?
How Does Mold Spread?
The Environmental Protection Agency (EPA) Warns...
(For more information, the EPA Web site provides specific directions for dealing with mold so you can protect your home and health from mold damage.)
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Here are 30 of the fastest-growing jobs that you should keep your eye on in the next 10 years:
1. Bio-medical engineers -- bachelor's degree2. Network Systems and data communications analysts -- bachelor's degree3. Home health aides -- on-the-job training (OJT)4. Personal and home care aides -- OJT 5. Financial examiners -- bachelor's6. Medical scientists (except epidemiologists) -- doctoral degree7. Physician Assistants -- master's degree8. Skin Care Specialists -- postsecondary vocational award9. Biochemists and biophysicists -- doctoral degree10. Athletic Trainers -- bachelor's 11. Physical therapist aides -- OJT12. Dental hygienists -- associate degree13. Veterinary technologists and technicians -- associate degree14. Dental assistants -- OJT15. Computer software engineers, applications -- bachelor's16. Medical Assistants -- OJT17. Physical therapist assistants -- associate degree18. Veterinarians -- first professional degree19. Self-enrichment education teachers -- work experience in a related field20. Compliance officers -- OJT21. Occupational therapist aides -- OJT 22. Environmental engineers -- bachelor's23. Pharmacy technicians -- OJT 24. Computer software engineers, systems software --bachelor's25. Survey researchers -- bachelor's26. Physical therapists -- master's 27. Personal Financial Advisors -- bachelor's28. Environmental engineering technicians -- associate degree29. Occupational therapist assistants -- associate degree30. Fitness trainer and aerobics instructors -- post-secondary vocational award
More than 1/2 are in the medical field - so..... Welcome to Rochester!
Please let us know if we can assist in your selling or buying real estate in the Rochester area.
Jim Phillips 507-250-0613
When Creighton and Tracey Gibson built a ranch 15 years ago, Creighton’s job as owner of a franchise that offers nonmedical care and companionship to seniors made him sensitive to his own aging family members’ needs. Accordingly, the couple added some features to their North Carolina home to accommodate them when they moved in.
First, an extra bedroom with kitchenette and a bathroom with grab rails were put in when Creighton’s father moved in after a fall in 1998. After he died and Tracey’s mom, an amputee, couldn’t manage alone, the couple built a ramp at their front door for her wheelchair. The Gibsons have found the arrangement offers benefits to each generation, including for their 11-year-old daughter, who gained a live-in babysitter when she was young and now can offer companionship as she gets older.
Housing aging parents for health, safety, or to avoid loneliness as they’re living longer isn’t the only reason that home owners are altering floor plans:
? A rising immigrant population whose cultural traditions often encourage everyone to live under one roof is making the multiple-generation household more common.
? The difficult economy is spurring college graduates to do what was once unthinkable — move home and reclaim childhood bedrooms until they land a job or save enough money to be on their own. Ditto for young divorced adults, sometimes with a child in tow.
? The tough resale market is convincing empty-nesters to stay put and remodel homes to maximize unused space, including spare kids’ bedrooms.
Because of the differences in needs, ages, traditions, budgets, and property types, there’s not a single layout that works for a large cross-section of consumers, says Brian Brunhofer, president of Meritus Homes, a home builder in Deerfield, Ill. As a real estate professional, your job is to help buyers and sellers assess housing options for now and later with three major objectives in mind:
Any home — newly built or remodeled — should consider this concept as much as possible since it strives to make a home safe and useable for a variety of ages, abilities, gender, budgets, and physical challenges, says John Salmen, member of the American Institute of Architects and founder of Universal Designers & Consultants in Takoma Park, Md. Among its prime tenets:
? Easy circulation: Navigating space freely is key, whether people move among different levels or spaces on the same level, Salmen says. Doors and openings should be at least 32” wide for wheelchairs and walkers to get through. Elevators can eliminate stair climbing for those physically challenged or even for home owners needing to carry heavy groceries up stairs. Adding a two-stop model in an existing house might cost between $20,000 and $25,000, but leaving a 4’ by 5’ shaft, so equipment can be installed later if needed, would cost less than $5,000 initially, says Richard Bubnowski, design principal of his eponymous firm in Point Pleasant, N.J.
? Good illumination: Aging eyes need three to five times more light than people do at 18 years of age, says Salmen.
? Non-slippery floors and low-piled rugs: These help people of all ages avoid falls.
? Easy room and appliance access: Instead of knobs, levers facilitate opening doors for young and arthritic hands. Touch faucets allow easier access to water, particularly when hands are sticky or fingers also are arthritic.
? Movable storage: Placed under kitchen countertops, these can be rolled away to allow home owners to sit in a traditional chair or wheelchair.
? Zero-step entrances: Whether crossing a main door or walking into a shower, these make traversing spaces carefree.
? Discreet grab bars: These eliminate an institutional look and can mimic wainscoting or any trim, says Lake Bluff, Ill.-based builder Orren Pickell.
Before adding space, home owners should make better use of what they have, says designer Marianne Cusato, author of Get Your House Right (Sterling Publishing, 2008). “Perhaps there’s stuff that can be put away with affordable storage purchased at places like IKEA, or a rarely used dining room that can become an office,” she says. Other ideas include:
? Transforming basements and attics: When houses include these levels, typically unfinished, converting them can cost less than adding on to a first floor, says Pickell. The main expenses may be a nicer stairway; stronger floor or subfloor; better insulation, ventilation, and windows; plumbing for a bathroom; and an outside egress to meet building codes.
? Converting dens, family rooms, and garages: These main floor spaces can be remodeled into a bedroom for full- or part-time use for someone not able to climb stairs, and a nearby powder room can be remodeled to accommodate a shower if there’s space, says Elizabeth M. Sorensen with Dale Sorensen Real Estate in Vero Beach, Fla. When a door to the outside can be built, the suite becomes more desirable and private, says Brunhofer. Adding this type of suite can cost less than a year at a nursing home, says Michigan designer Leslie Hart-Davidson. “Home owners should think in terms of long-term savings,” she says.
? Rethinking empty bedrooms: For home owners whose children aren’t returning, Hart-Davidson transforms bedrooms into gyms, hobby rooms, offices, and walk-in storage.
? Melding indoors and outdoors: Homes become more usable and enjoyable by opening them to the outdoors through large windows and walls that provide a visual and physical connection, says Irvine, Calif.-based architect Robert Hidey. The outdoor areas themselves become more room-like and functional when designed with distinct areas to cook, sit, and dine, preferably with a “roof” and “walls” to screen hot sun, rain, and bugs, he says.
Constructing a new home from the get-go to meet a range of life stages helps avoid expensive alterations. Among the most usable designs:
? Hip ranches: Popular after World War II as new suburbs sprouted, they’re attracting attention again since they offer a cost-effective plan and main-level master suite. Brunhofer estimates the layout may run 10 to 15 percent less than a comparable two-story home. His firm sometimes adds a second master bedroom for future family needs.
? Loft-style plans: Whatever the house style, Bubnowski advocates one open sweep inside for living, eating, and cooking. So does Colleen Reardon, manager and sales associate at K. Hovnanian Homes in Orlando, Fla., which conducts extensive research and has seen interest also in open ceilings and bigger living spaces.
? The “New Economy Home”: Cusato’s efficiently scaled 1,771 square-foot, two-story “New Economy Home” was planned with the latest demographic trends in mind. The house is compact, so it costs less to build and is easier to maintain than most other homes, and features one master suite upstairs and a second one downstairs off the kitchen with an adjacent bathroom and back door to a porch and the outdoors.
? Bonus rooms: Once built above a garage for myriad uses, the bonus room is back, as it’s able to change functions as family needs demand. Today it’s a playroom; tomorrow it’s a home office or gym.
? Ancillary cottages: When land, budget, and codes permit, some home owners build a separate structure away from the main house, says Cusato. These detached bungalows or casitas are a way to gain a separate living or work space for family or a hideaway for guests who stay a while, says Hidey.
Please contact us if you would like to sell your home or are in the market for a new one.
We are Rochester's experienced and successful agent team.
Jim Anderson 507-281-2187
Colorful Interiors: What Are the Top Color Picks for 2012?
Color experts are already giving their forecasts for the hot hues for 2012. And next year, the inspiration for color is mostly being drawn from the great American outdoors.
“Native plants and flowers, oceans and lakes, and rocks and minerals are the sources of inspiration for the paint colors that will be ‘in’ next year,” says Debbie Zimmer, color expert at the Paint Quality Institute.
Here’s an overview of the 2012 color palette, according to the Paint Quality Institute.
Courtesy of The Paint Quality Institute
Bold Blue
“From sparkling sea-glass blue to colonial blue-grey, blues are suitable for all living spaces, being a naturally soothing color that is loved–in one iteration or another–by almost everyone,” says Zimmer.
Vibrant Green
A variety of green shades are expected to make it into more interiors next year, from dining rooms and kitchens to family rooms and bedrooms.
Bringing the outside in, these greens range from celery and asparagus colors to fir and fern, Zimmer says.
Majestic Violet
“A harmonious combination of patriotic blue and red hues, violet can add ‘punch’ to any room when used as an accent color, or serve as the dominant color in a bedroom,”
Please contact us for other home design ideas or
for an interior decorator’s professional opinion.
Put the team with success and experience to work for you: Phillips Property Group
Office number: 507-722-1635 Jim Phillips Jim Anderson Jeff Phillips
Consider the following nightmare scenarios: 1. A homeowner hires a company to replace her roof and signs a contract. She refuses to pay $2,000 of the bill, insisting that the quality of the work was poor and the roofing company took much longer to finish the job than agreed upon. The homeowner receives a notice that the company intends to file a mechanic's lien against her property if she doesn't pay up. History Mechanic's lien laws in the United States can be traced back to Thomas Jefferson in 1791. Colonial Americans needed homes and buildings to be erected but faced a shortage of materials and labor. Jefforson felt mechanic's liens would make it more attractive for contractors and builders to take on the risks of construction. If a landowner contracted with a "mechanic" or builder to improve his property and then failed to pay him, the mechanic could use the lien to collect the debt. 2. A contractor is hired by a couple to put in a new driveway. They agree on a total price of $12,000 and pay $6,000 before work starts and $6,000 when it is finished. The contracting company orders materials from a cement company on credit. The contractor then files for bankruptcy and the cement company places a mechanic's lien on the couple's property -- even though the $12,000 bill was paid in full. The couple is afraid they will have to pay for some of the materials twice.
1. A homeowner hires a company to replace her roof and signs a contract. She refuses to pay $2,000 of the bill, insisting that the quality of the work was poor and the roofing company took much longer to finish the job than agreed upon. The homeowner receives a notice that the company intends to file a mechanic's lien against her property if she doesn't pay up. History Mechanic's lien laws in the United States can be traced back to Thomas Jefferson in 1791. Colonial Americans needed homes and buildings to be erected but faced a shortage of materials and labor. Jefforson felt mechanic's liens would make it more attractive for contractors and builders to take on the risks of construction. If a landowner contracted with a "mechanic" or builder to improve his property and then failed to pay him, the mechanic could use the lien to collect the debt. 2. A contractor is hired by a couple to put in a new driveway. They agree on a total price of $12,000 and pay $6,000 before work starts and $6,000 when it is finished. The contracting company orders materials from a cement company on credit. The contractor then files for bankruptcy and the cement company places a mechanic's lien on the couple's property -- even though the $12,000 bill was paid in full. The couple is afraid they will have to pay for some of the materials twice.
History
Mechanic's lien laws in the United States can be traced back to Thomas Jefferson in 1791. Colonial Americans needed homes and buildings to be erected but faced a shortage of materials and labor. Jefforson felt mechanic's liens would make it more attractive for contractors and builders to take on the risks of construction. If a landowner contracted with a "mechanic" or builder to improve his property and then failed to pay him, the mechanic could use the lien to collect the debt.
2.
3. A potential home buyer puts an offer on a house. Before the transaction gets to closing, the homeowner is informed there is an old mechanic's lien on the property. The title insurance company refuses to clear the title until the lien is satisfied or removed. That means the debt has to be paid off, the claimant filing the lien has to release it, or a court order has to remove it.
These cases illustrate the pitfalls involved in home improvement projects. A mechanic's lien (sometimes called a construction lien) gives a secured interest in a property to parties that have improved it with labor and materials.
A material supplier could include a lumber yard, an appliance company, a solar panel firm or a retailer of lighting fixtures.
Laws in every state provide mechanic's liens as a way to ensure contractors and material suppliers get paid. A claimant must file a lien within a certain amount of time with the government office that records deeds or land titles where the improved property is located.
A key factor in a mechanic's lien is that the property must be improved. In essence, the claimants are arguing that they own the improvements.A mechanic's lien claimant may also be able to force the sale of a property in order to recover the amount owed from the proceeds. Until the debt is paid off, the owner does not have a clear title and it can prevent the property from being sold, refinanced or transferred. That's one reason why mechanic's liens are effective, powerful tools for contractors and suppliers to get paid.There are some preventative measures that homeowners can take to protect themselves from mechanic's liens.
What if a Mechanic's Lien Is Filed Against You?
You have three basic options if a mechanic's lien is filed against your property.
Contact your attorney immediately to determine if the lien is valid. The claimant may not have met the strict required timelines and rules in your state for filing the lien. The statute of limitations may have expired or the contractor may have exaggerated the amount due. The mechanic's lien process can be complex and the procedures vary from state to state. There may be actions you can take to remove the lien or you may be able to petition a court for a decree to release the property from the lien.
On the other hand, the details involved can be overwhelming; so many decisions must be made before the fun part begins. Defining your priorities and narrowing down your wants and needs will make the search easier and more enjoyable.
The process starts with location. There is no reason to tour houses in the suburbs if you have your heart set on city-dwelling. Imagine the view you’d like to see when you look out your window, the amount of space you want between your house and your neighbor’s, the distance you’re willing to drive (or walk!) to reach amenities. What neighborhoods or school districts appeal to you? Once you’ve answered these questions, you should be able to limit your search to a few specific areas.
Second, determine what type of home appeals to you. Residential properties are available in a variety of shapes and sizes; do you want a single-family detached house, a condominium, a townhouse? How much living space do you need? What about storage space? Ask yourself if you’d prefer all your living space on one level, or if you prefer two or more stories. Determine if there is an architectural style or building material that appeals to you.
Next, write out a wish list of features you don’t want to live without and another of features you’d like, but don’t necessarily need. Start with the basics. If others will share the home with you, how many bedrooms and bathrooms will accommodate everyone’s needs? If you cook, the layout of the kitchen might be important; if you’re a sports or movie fan, perhaps you’d rather focus on properties with room for a home theater. Do you have pets that require a yard or a car that must be kept in a garage? Be careful not to include too many items on your “must-have” list; carefully evaluate your lifestyle and prioritize accordingly.
Finally, consider your budget. While many tools are available to help you calculate realistic mortgage payments based on your income and current expenses, keep in mind that home ownership also entails maintenance and repair costs. Limit your search to properties that lie within your financial means to avoid the disappointment of falling in love with your ideal home, only to discover it is outside of your price range.
The real estate market strongly favors buyers at the moment. A variety of properties are available at reasonable prices. The market becomes even more inviting if you’re skilled at remodeling, repairs, or redecorating; you may have the means to transform a foreclosure or “handyman’s special” into your vision. Once again, remaining realistic about your budget, your abilities, and your patience is the key to settling into the right home at the right price.
Your dream house is out there; it’s just a matter of finding it. Identifying your priorities before you begin your search will allow you to save time, maintain perspective, and complete your journey with minimum difficulty.
Please call us at the Phillips Property Group for our real estate professional services. We will find the right home for you. Thanks!
Call: 507-722-1635
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