If you’re thinking about buying or selling a home, a recent report by the National Association of Realtors measured how certain characteristics influence the value of a property. Here are some of the findings:
* A remodel adding an additional 1,000 square feet of living space increases a home’s market value by just 3.3%.
* Adding an extra bedroom adds about 4% to the price while an additional bath can add 24%.
* Houses advertised as “fixers” sell for 24% less than other houses.
* A garage adds about 13% to the price.
* Central air conditioning adds about 12% to the price.
* A basement increases a home's value by an average of 9%.
* A sitting area in the master bedroom increases the price by about 8%.
* Features that add the most value are a family room, a dining room, a whirlpool and a security system.
This information can help determine the return you can expect to see on your remodeling investment as well as to compare property values when you’re shopping for a home.
Please call or send us an email if you’d like us to help evaluate your remodeling plans and determine how much they’ll return on your investment. Or, if you are considering a purchase, we can help you get the best buy on a home with the amenities that are important to you.
Showing posts with label buying a home. Show all posts
Showing posts with label buying a home. Show all posts
Wednesday, December 10, 2008
Tuesday, November 11, 2008
13 Reasons You Should Buy a Home in the Richmond Area, Now!
Conventional wisdom says that this is an awful time to buy a new home. The housing market is in a funk. Mortgage companies have tightened their guidelines and homes are sitting on the market for months without selling. If you listen to the news it's all doom and gloom with talk of recession and inflation, and questions of how long it will be before we see a recovery. So who would be crazy enough to buy a home now?
There is a famous quote by noted investor Baron Von Rothschild - the time to buy is when there is blood in the streets. Here in Richmond the market isn't as bad as it is in other parts of the country, but if you are a seller sitting in a home that won't sell, the situation is grim. But the bad news for the seller is great news if you are looking to buy a home. Here are some reasons to buy a home here in the Richmond area, now:
Selection - There are homes in the market in all areas and all price ranges. With more houses on the market you can pick and choose and find the home you want. It wasn't so long ago that buyers were jumping on new listings as they came onto the market, even if the home wasn't exactly what they were looking for. You can pick and choose, now.
It's a buyer's market - Again, the best time to buy is when most people want to sell. If you buy now you can get a lot more house for your money, and you have a lot more negotiating power.
Interest rates are low - Mortgage interest rates are at their lowest point in the last several years. This means your mortgage payment takes you a lot farther than it did before. We're not that far off of the all time lows we hit several years back. It is smart to take advantage of the low mortgage rates while they are still available.
Great financing is available - There's a lot of talk about how the problems in the mortgage market have made it harder for borrowers to get financing. Some programs have been cut out, and guidelines are tougher than they were before. But there is still a lot of mortgage money available, including options for low or no money down, and some great programs for first time home buyers. If you are a first time home buyer in Richmond, you may qualify for Virginia Housing authority Program which offers a below market interest rate and down payment and closing costs assistance. There are other programs for home buyers in Virginia with great rates and low fees, ask me how?
Tax savings - Buying a home is one of the best ways to save money on taxes. Your mortgage interests, real estate taxes and in many cases mortgage insurance are all tax deductible. If you are a first time home buyer this means that after-tax, you can pay a lot more for a mortgage payment than you pay for rent.
Appreciation - This might not seem like the best reason to buy, with prices stagnating and falling in some areas, but in the long run, home prices always move up. There is a lot of pessimism in the real estate market today, but even the most pessimistic are bullish in the long run.
Equity build up - As you pay down your mortgage you build up equity in your home. Most people don't even think of this because it is so gradual, but every mortgage payment (as long as it is an amortizing loan) pays a little less interest and a little more principal. In a way owning a home is a form of forced savings.
Tax refunds are coming out - If you wanted to buy but were short of cash, your tax refund could be just what you need for the down payment and closing costs.
Rents are rising - Buying a home means you can fix your mortgage payment, at least the principal and interest portion. Rents are projected to rise this year and over time.
Those are the hard financial reasons for buying a home now, but there are other good reasons to buy now:
You need more room - Has your family has grown, and you are bursting at the seams? You need a new place to put all your stuff? If you have needs that you've been putting off, this could be the right time to buy and take advantage of the buyers market.
Control - If you own your home, you can do what you want to with it. Have a dog? Not a problem. Want to plant a garden? Go for it. Want to paint stripes on the walls? Paint your heart out, it's your home and you are in control.
Pride of ownership - There is a big difference between renting a place and having a home of your own.
It's the American Dream - Not only that, but buying a new home gives you a reason to throw a house warming party.
These are some reasons for buying now, but buying isn't the right course for everyone. Buying a home is a long-term investment. If you can't afford to hold on for the long run, you might be better off renting.
There is a famous quote by noted investor Baron Von Rothschild - the time to buy is when there is blood in the streets. Here in Richmond the market isn't as bad as it is in other parts of the country, but if you are a seller sitting in a home that won't sell, the situation is grim. But the bad news for the seller is great news if you are looking to buy a home. Here are some reasons to buy a home here in the Richmond area, now:
Selection - There are homes in the market in all areas and all price ranges. With more houses on the market you can pick and choose and find the home you want. It wasn't so long ago that buyers were jumping on new listings as they came onto the market, even if the home wasn't exactly what they were looking for. You can pick and choose, now.
It's a buyer's market - Again, the best time to buy is when most people want to sell. If you buy now you can get a lot more house for your money, and you have a lot more negotiating power.
Interest rates are low - Mortgage interest rates are at their lowest point in the last several years. This means your mortgage payment takes you a lot farther than it did before. We're not that far off of the all time lows we hit several years back. It is smart to take advantage of the low mortgage rates while they are still available.
Great financing is available - There's a lot of talk about how the problems in the mortgage market have made it harder for borrowers to get financing. Some programs have been cut out, and guidelines are tougher than they were before. But there is still a lot of mortgage money available, including options for low or no money down, and some great programs for first time home buyers. If you are a first time home buyer in Richmond, you may qualify for Virginia Housing authority Program which offers a below market interest rate and down payment and closing costs assistance. There are other programs for home buyers in Virginia with great rates and low fees, ask me how?
Tax savings - Buying a home is one of the best ways to save money on taxes. Your mortgage interests, real estate taxes and in many cases mortgage insurance are all tax deductible. If you are a first time home buyer this means that after-tax, you can pay a lot more for a mortgage payment than you pay for rent.
Appreciation - This might not seem like the best reason to buy, with prices stagnating and falling in some areas, but in the long run, home prices always move up. There is a lot of pessimism in the real estate market today, but even the most pessimistic are bullish in the long run.
Equity build up - As you pay down your mortgage you build up equity in your home. Most people don't even think of this because it is so gradual, but every mortgage payment (as long as it is an amortizing loan) pays a little less interest and a little more principal. In a way owning a home is a form of forced savings.
Tax refunds are coming out - If you wanted to buy but were short of cash, your tax refund could be just what you need for the down payment and closing costs.
Rents are rising - Buying a home means you can fix your mortgage payment, at least the principal and interest portion. Rents are projected to rise this year and over time.
Those are the hard financial reasons for buying a home now, but there are other good reasons to buy now:
You need more room - Has your family has grown, and you are bursting at the seams? You need a new place to put all your stuff? If you have needs that you've been putting off, this could be the right time to buy and take advantage of the buyers market.
Control - If you own your home, you can do what you want to with it. Have a dog? Not a problem. Want to plant a garden? Go for it. Want to paint stripes on the walls? Paint your heart out, it's your home and you are in control.
Pride of ownership - There is a big difference between renting a place and having a home of your own.
It's the American Dream - Not only that, but buying a new home gives you a reason to throw a house warming party.
These are some reasons for buying now, but buying isn't the right course for everyone. Buying a home is a long-term investment. If you can't afford to hold on for the long run, you might be better off renting.
Tuesday, November 4, 2008
How to Evaluate a Home’s True Potential
If you’re thinking about buying a home, you’ve probably developed a pretty clear mental picture of what your new home should be like. But remember that even a home that’s not in ideal condition can still have great potential.
Here are some tips to help you look beyond bad decorating, old carpet and ugly wallpaper to see a jewel in the rough:
The floor plan is extremely important. Look at entrances and exits, where the rooms are located and how foot traffic will flow throughout the home. A good floor plan is worth a lot, especially when you consider the cost of changing it.
Walls and floor coverings make an important first impression. Paint is relatively inexpensive, so imagine the walls in the colors you would choose. Carpets and vinyl floor coverings can be removed and replaced, hardwoods can be refinished.
The kitchen is usually the center of any home. Paint and new appliances can make a huge difference if you don’t like what's there now. The most important thing to consider is whether it has enough counter and cabinet space to suit your needs.
Unless you're building your dream home, you will probably never find the perfect house. So before you make an offer, keep in mind what you can't live without and what you can improve upon with some well-placed upgrades and improvements.
If the house is cluttered and not as clean as you would like, remember that it will look different with your belongings and a thorough, professional cleaning is always an option.
If the exterior of the home doesn't have a great deal of curb appeal, just imagine it with a fresh coat of paint and new landscaping.
Please call or send us an email if we can help with more ideas on how to see past the surface when looking at a potential new home.
Here are some tips to help you look beyond bad decorating, old carpet and ugly wallpaper to see a jewel in the rough:
The floor plan is extremely important. Look at entrances and exits, where the rooms are located and how foot traffic will flow throughout the home. A good floor plan is worth a lot, especially when you consider the cost of changing it.
Walls and floor coverings make an important first impression. Paint is relatively inexpensive, so imagine the walls in the colors you would choose. Carpets and vinyl floor coverings can be removed and replaced, hardwoods can be refinished.
The kitchen is usually the center of any home. Paint and new appliances can make a huge difference if you don’t like what's there now. The most important thing to consider is whether it has enough counter and cabinet space to suit your needs.
Unless you're building your dream home, you will probably never find the perfect house. So before you make an offer, keep in mind what you can't live without and what you can improve upon with some well-placed upgrades and improvements.
If the house is cluttered and not as clean as you would like, remember that it will look different with your belongings and a thorough, professional cleaning is always an option.
If the exterior of the home doesn't have a great deal of curb appeal, just imagine it with a fresh coat of paint and new landscaping.
Please call or send us an email if we can help with more ideas on how to see past the surface when looking at a potential new home.
Sunday, September 28, 2008
First Time Home Buyer: Part 5 of 8
Choosing the neighborhood for your home!
Buying a home is an investment in the neighborhood as well as the house. In fact, the character and amenities of the neighborhood may be as important to the property value as the house itself. No matter what kind of neighborhood you're looking for, it's important to know its history and future when you decide to buy.
Here's what to research:
1. Recent sales - Find out if the market is slow and what homes have been selling for.
2. Homes now for sale - What homes are listed in the area, and are they listed above past sales? This will give you a good idea of the area's overall market value.
3. Home appreciation - Historical data on sales gives the best indicator of a neighborhood's potential. Are homes appreciating at 3%, 5%, 10% or higher every year?
4. Schools - School scores and district boundaries are very important to research before moving into a neighborhood. The closest school is not always in your district, and school scores reveal if a neighborhood is invested in the schools' success.
5. Crime - Get the hard facts about any problems in the neighborhood -- don't depend on anecdotal information.
6. Demographics and growth - Find out how the area is growing and changing.
7. Community -- Learn about neighborhood features, such as public schools, shopping areas, parks, commuting options and more.
We can help you with this information-please give us a call or email us any questions you have. You'll find that the more you know about the neighborhoods you're considering, the easier it will be to narrow your search for your new home.
Buying a home is an investment in the neighborhood as well as the house. In fact, the character and amenities of the neighborhood may be as important to the property value as the house itself. No matter what kind of neighborhood you're looking for, it's important to know its history and future when you decide to buy.
Here's what to research:
1. Recent sales - Find out if the market is slow and what homes have been selling for.
2. Homes now for sale - What homes are listed in the area, and are they listed above past sales? This will give you a good idea of the area's overall market value.
3. Home appreciation - Historical data on sales gives the best indicator of a neighborhood's potential. Are homes appreciating at 3%, 5%, 10% or higher every year?
4. Schools - School scores and district boundaries are very important to research before moving into a neighborhood. The closest school is not always in your district, and school scores reveal if a neighborhood is invested in the schools' success.
5. Crime - Get the hard facts about any problems in the neighborhood -- don't depend on anecdotal information.
6. Demographics and growth - Find out how the area is growing and changing.
7. Community -- Learn about neighborhood features, such as public schools, shopping areas, parks, commuting options and more.
We can help you with this information-please give us a call or email us any questions you have. You'll find that the more you know about the neighborhoods you're considering, the easier it will be to narrow your search for your new home.
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