Renovation ideas home owners may want to rethink!

August 6, 2016

DAILY REAL ESTATE NEWS | THURSDAY, AUGUST 04, 2016

Home renovation television shows give home owners big ideas about how they can spruce up their property. But some of these projects can open up problems for owners whose big remodeling dreams may not have been well-thought out. Realtor.com® recently spotlighted a few renovation plans that often turn out badly:

Tearing down walls: While some walls may not look like they’d be any big deal to tear down – even, say, a half wall — they actually may be providing more support to a home than home owners realize. The walls may be holding up floors or framework. Also, those walls may contain electric and plumbing. Always ask a professional the implication of tearing down any wall and check what is required by your municipalities building code.

Modernizing a historic home: Removing some of the historic appeal or character of a home – such as removing original woodwork, built-ins, or claw-foot bathtubs – can be one of the worst mistakes remodelers make, says Matt Forcum, a real estate pro with Century 21 Realty Concepts in Effingham, Ill. The interior may no longer match the character of the exterior, and thereby bring down the value of the property.

Replacing worn-out wood floors: “Unless you’ve had significant water damage, it doesn’t take much to replace hardwood flooring,” says Luis Leonzo with TableLegsOnline.com. Tearing out old floors could potentially lower your home’s value too, Leonzo adds. “The older the home, the higher the quality of hardwood, which might have cost $20 a square foot when it was built. Replacing the flooring with laminate or carpet at $1 a square foot is like reupholstering your leather couch with canvas!”

Using the highest priced materials: Some of the priciest renovations rarely pay off at resale. For example, Morgan Franklin with United Real Estate Lexington in Kentucky suggests finding a nice granite for $35 to $50 instead of the marble for $100-plus a square foot. “In the eyes of the appraiser and the next buyer, there isn’t much difference,” Franklin says.

7 ideas to help you use your outdoor space more!

August 4, 2016

By: Deirdre Sullivan.

These ideas will transform your outdoor space into an oasis you may never want to leave.

When your mom told you to turn off the TV and play outdoors already, she knew what she was talking about. Hanging outside is good for our mental and physical well-being.

As adults, having an outdoor retreat adds an economic component: Upwards of 80% of homebuyers said patios and front porches are “essential” or “desirable,” according to the “What Buyers Really Want” survey from the National Association of Home Builders (NAHB).

So how come when we move into our dream home, we hardly ever use our decks, porches, and patios?

An anthropological UCLA study, described in the book “Life at Home in the Twenty-First Century,” blames our fascination with digital devices — tablets, computers, televisions, games — for keeping us cooped up. The UCLA research participants spent less than half an hour each week in their outdoor space. And these were Californians.

So this summer let’s make a pledge to pay more than lip service to outdoor living so we can be happier, create lasting memories, and generally take advantage of what home has to offer.

1. Go overboard on comfy!

• Make sure your outdoor seating is as cushy as your indoor furniture. Today’s outdoor cushions aren’t the plastic-y, sweat-inducing pillows of the past. Plus, they can handle a downpour and spring back once they dry.
• Lay down outdoor rugs so you’re just as comfortable barefoot as you are inside.
• Give yourself some privacy. Create natural screens with shrubs, bushes, or even bamboo reeds. Or install prefab screens from your local home improvement store.

2. Create a broadband paradise!

Our devices and electronics have conspired to keep us on lock down. Since we’re not about to chuck our digital toys, boot up your outdoor space so you can keep texting, posting to Instagram, and watching cat videos.

• Wireless outdoor Wi-Fi antennas provide an extra boost so you can stay connected.
• A solar USB charging station keeps your gizmos powered.
• Wireless speakers make it easy to bring your music outdoors, and mask a noisy neighborhood.
• An all-weather outdoor TV lets you stay outside for the big game.

3. Blur the line between indoor and out!

Creating a seamless transition between your home’s interior and exterior isn’t as simple or low cost as adding comfort, but it’s the most dramatic and effective way to enhance your enjoyment of the space. Plus, it can increase your home’s value.

• The most straightforward, cost-effective solution: Replace a standard door opening with sliding or glass French doors.
• Use the same weatherproof flooring, such as stone tile or scored concrete, outside as well as in the room leading to your backyard oasis.

4. Light the way!

• Use uplighting to highlight trees, architectural details, or other focal points.
• Add sconces or pendant lights to make evening entertaining, grilling, and reading easier.
• Illuminate walkways, rails, and steps with landscape solar lights.
• Hang fairy or string lights to set an enchanting tone.

5. Make your mark!

• Paint a faux rug with your favorite colors.
• Create a path made with colored glass, brick, or other interesting found materials.
• Craft a one-of-kind outdoor chandelier.
• Build a pizza oven, custom seating, or other feature you crave.
• Add personal décor that makes you happy.

In fact, make your outdoor retreat an ongoing project where you can hone your DIY skills.

6. Don’t give anyone an excuse to stay inside!

• A fire pit is a proven winner. Food and fire have brought humans together since the dawn of time.
• Give wee ones the gift of magical thinking with an outdoor playhouse.
• Add whimsy with a chalkboard fence that both kids and fun-loving adults will enjoy.
• Add a doggie window in your fence to entertain Spot. Installing a dog run may even boost your home’s value. FYI: It’s been said that pets are one of the top reasons why people buy houses.

7. Rebuff the elements!

• Install an awning, canopy, or pergola. It’ll make it easier to read your Kindle or iPad and keep you dry during a summer shower. Look for products with polycarbonate panels, which block UV rays, too.
• Rig glass fence windscreens to the keep your BBQ fires burning.

Screen in your porch or deck against bugs. But screening will be for naught if you forget the slats between wood planks. Cover the floor with outdoor carpet or staple screening to the underside of floorboards.

5 ways you didn’t know you could save for a down-payment!

July 28, 2016

One of the biggest misconceptions of home buying? The 20% down payment. Here’s how to buy with a lot less down.

Buying your first home conjures up all kinds of warm and fuzzy emotions: pride, joy, contentment. But before you get to the good stuff, you’ve got to cobble together a down payment, a daunting sum if you follow the textbook advice to squirrel away 20% of a home’s cost.

Here are five creative ways to build your down-payment nest egg faster than you may have ever imagined.

1.  Crowdsource Your Dream Home:

You may have heard of people using sites like Kickstarter to fund creative projects like short films and concert tours. Well, who says you can’t crowdsource your first home? Forget the traditional registry, the fine china, and the 16-speed blender. Use sites likeFeather the Nest and Hatch My House to raise your down payment. Hatch My House says it’s helped Americans raise more than $2 million for down payments.

2.  Ask the Seller to Help (Really!):

When sellers want to a get a deal done quickly, they might be willing to assist buyers with the closing costs. Fewer closing costs = more money you can apply toward your deposit.

“They’re called seller concessions,” says Ray Rodriguez, regional mortgage sales manager for the New York metro area at TD Bank. Talk with your real estate agent. She might help you negotiate for something like 2% of the overall sales price in concessions to help with the closing costs.

There are limits on concessions depending on the type of mortgage you get. For FHA mortgages, the cap is 6% of the sale price. For Fannie Mae-guaranteed loans, the caps vary between 3% and 9%, depending on the ratio between how much you put down and the amount you finance. Individual banks have varying caps on concessions.

No matter where they net out, concessions must be part of the purchase contract.

3.  Look into Government Options:

The U.S. Department of Housing and Urban Development, or HUD, offers a number of homeownership programs, including assistance with down payment and closing costs. These are typically available for people who meet particular income or location requirements. HUD has a list of links by state that direct you to the appropriate page for information about your state.

HUD offers help based on profession as well. If you’re a law enforcement officer, firefighter, teacher, or EMT, you may be eligible under its Good Neighbor Next Door Sales Program for a 50% discount on a house’s HUD-appraised value in “revitalization areas.” Those areas are designated by Congress for  homeownership opportunities. And if you qualify for an FHA-insured mortgage under this program, the down payment is only $100; you can even finance the closing costs.

For veterans, the VA will guarantee part of a home loan through commercial lenders. Often, there’s no down payment or private mortgage insurance required, and the program helps borrowers secure a competitive interest rate.

Some cities also offer homeownership help. “The city of Hartford has the HouseHartford Program that gives down payment assistance and closing cost assistance,” says Matthew Carbray, a certified financial planner with Ridgeline Financial Partners and Carbray Staunton Financial Planners in Avon, Conn. The program partners with lenders, real estate attorneys, and homebuyer counseling agencies and has helped 1,200 low-income families.

4.  Check with Your Employer:

Employer Assisted Housing (EAH) programs help connect low- to moderate-income workers with down payment assistance through their employer. In Pennsylvania, if you work for a participating EAH employer, you can apply for a loan of up to $8,000 for down payment and closing cost assistance. The loan is interest-free and borrowers have 10 years to pay it back. Washington University in St. Louis offers forgivable loans to qualified employees who want to purchase housing in specific city neighborhoods. University employees receive the lesser of 5% of the purchase price or $6,000 toward down payment or closing costs.

Ask the human resources or benefits personnel at your employer if the company is part of an EAH program.

5.  Take Advantage of Special Lender Programs:

Finally, many lenders offer programs to help people buy a home with a small down payment. “I would say that the biggest misconception [of homebuying] is that you need 20% for the down payment of a house,” says Rodriguez. “There are a lot of programs out there that need a total of 3% or 3.5% down.”

FHA mortgages, for example, can require as little as 3.5%. But bear in mind that there are both upfront and monthly mortgage insurance payments. “The mortgage insurance could add another $300 to your monthly mortgage payment,” Rodriguez says.

Some lender programs go even further. TD Bank, for example, offers a 3% down payment with no mortgage insurance program, and other banks may have similar offerings. “Check with your regional bank,” Rodriguez says. “Maybe they have their own first-time buyer program.”

Not so daunting after all, is it? There’s actually a lot of help available to many first-time buyers who want to achieve their homeownership dreams. All you need to do is a little research — and start peeking at those home listings!