Brought to you by:
Les Bailey & Associates Real Estate Team
Keller Williams Alaska Group
Direct: 907-694-1234
Toll Free: 1-800-784-2912
|
Brought to you by:
Les Bailey & Associates Real Estate Team
Keller Williams Alaska Group
Direct: 907-694-1234
Toll Free: 1-800-784-2912
Relax in this lovely home in Roger's Park Subdivision in Anchorage!
1819 E 24TH Avenue
Anchorage, AK 99508
Phone#: 907-694-1234
Price: $565,000
Just Listed
Property Type: Single Family;
Relax in this lovely home in the popular Roger's Park Subdivision with lots of room for a large or growing family.
Private backyard setting
that backs to Chester Creek Greenbelt and bike trails.
Upgrades galore to include handicap accessible mother-in-law apartment,
newer mechanical, most windows replaced, new deck,
vaulted ceilings, large storage shed,
central vac, new roof & gutters in 2012.
We also have vacant lots available.
Brought to you by:
Les Bailey & Associates Real Estate Team
Keller Williams Alaska Group
Direct: 907-694-1234
Toll Free: 1-800-784-2912
As the Spring real estate season flourished, and escrows closed by the thousands, many home buyer’s fantasies of ownership became reality.
For many, the house hunt is a quest for the the holy grail of more square footage. But the reality of home ownership is this: you furnish and decorate the spaces in your home according to their planned purpose (e.g., dining room, kitchen, bedroom, etc.) only to realize that you spend 80 percent of your time in 20 percent of your home’s square footage!
Most homeowners who have formal living and dining rooms rarely use them (Thanksgiving and Christmas are but two days of the year). Similarly, millions of square feet in great rooms, breakfast nooks, laundry rooms and hallways and even “spare” bedrooms go underused - space wasted most or all of the year.
Sometimes this is simply a sign that you have a really great kitchen or bedroom that you love - and love to be in. But it’s often an indicator that there might be a little disconnect between your everyday life and the way you’ve chosen to configure your home. In either case, given the cost of those precious square feet, it is a worthwhile endeavor to do what you can to make as many of them as lovable and livable as possible!
There is a cure for the scourge of wasted space: rethinking your rooms.
The fact that a room is called a dining room or a breakfast area does not mean that’s the only function you can do there. In fact, I propose that buyers and owners alike might want to spend some time this Spring rethinking and rearranging your rooms to live to the very edges of your precious square footage. Here are a few ideas for repurposing your underused spaces at home:
1. Too-small bedroom into closet or extra bathroom. If you have a bedroom so tiny that it’s barely usable as such, and only when the occasional guest rolls into town, consider getting a sleeper sofa or making friends with a concierge at the hotel down town and converting the little bedroom into an amazing closet. I did this at my last home - simply opened up the wall between the small room and the master, inserted floor to ceiling closet doors and called in a closet organizing company to help trick my new closet out with shoe racks, sweater shelves, rods at varying heights and drawers.
Best. Closet. Ever. And to boot, I no longer found myself griping about the unusable little room!
If you have a little more money to invest and could use an extra bathroom, a too-small bedroom makes for a good, efficient bathroom - especially if it’s located next to another bathroom, so the plumbing already exists.
2. Wide hallway or under-stairs space into study or storage areas. You might be thinking: “Are you nuts lady? I don’t have any “extra” rooms!” Even if every proper room in your home is spoken for and being used, you might still be able to find underutilized areas and spaces in your home that you can arrange more efficiently and squeeze maximum use out of those square feet. Common culprits are very wide hallways and spaces under the stairs, both of which make excellent spaces for custom built-in storage cabinets or desks. Need some inspiration? Visit online home design wonderland Houzz, where there’s a whole category for under-stair design ideas and pics from real homes.
3. Dining room into office or game room. Probably the number one room conversion I hear homeowners consider is the change of a formal dining room into an office. Think about it - you might use the dining room a couple of days a year - a couple of weeks, max, if you are an avid entertainer or dinner party host. But these days, many people work at home, at least part of the time, and running a household is a job of its own, generating papers, files and bills galore. Kids also need a study area for homework and school projects.
Now, with wifi and laptops, all these work and study activities can happen anywhere in a home. But many families find their best case scenario is to have one room with well-arranged desks, lighting, seating, monitors and office supplies, where one or many family members can contain their work and study activities and clutter. This promotes balance and calm in the rest of the home and minimizes distractions to boost focus.
4. Breakfast nook into computer or bill-paying area. There’s something very sweet and romantic about the notion of a breakfast nook. But if you’re fortunate enough to have a nook and an eat-in kitchen island or other casual dining area, you might find yourself using the nook more for organizing the family calendars and paying the bills than for eating. If this is how things go for you, it might make sense to lean on into what you’re already using this space for and optimize it by bringing organization and storage solutions to the area to cut clutter and make even your bill paying a bit more enjoyable.
Consider installing a bulletin or chalk board, a table with a drawer in which you can stash your laptop and ensure you have drawer storage for your files, checkbook, pens or other objects you need to handle the family business.
5. Too-large great room into living, dining, study and play area. A surprising number of homeowners with great rooms find that they furnish these massive, vaulted rooms beautifully upon moving in, never to enter more than a corner of the space again. A great room presents the perfect opportunity to carve out and repurpose the space you have in a way that aligns with the activities your family actually does on a regular basis. If you have a great room, but no casual dining space, why not make the area nearest to the kitchen into a breakfast nook-inspired dining area - there are scads of bar-height tables and stools on the market for precisely this purpose. No spare room for an office?
Consider setting up a desk, chair and lamps or whatever other office area equipment your family needs in one segment of the great room.
And there’s absolutely no reason you can’t use furniture and carpets to turn your great room into more of a multipurpose room, strategically laying things out and arranging furnishings to host your family’s living, dining, study and recreation areas all within four walls.
6. Basement or laundry room into mudroom or pet grooming area. Many people think “underused space” and what instantly comes to mind is the basement. Basements have been finished with sheet rock, painted, carpeted and turned into living areas as long as human beings have been into home improvement. But here’s the rub: in many parts of the country, older homes were built over raised basements because the builders knew the lower areas were susceptible to flooding in the rain or snow. In such areas and cases, it might not make sense to finish the basement with carpet and other things that will be ruined if they get wet.
That said, basements often have entry doors to the exterior of the home, and many have plumbing. This makes them the ideal site for a tiled mudroom, with racks and shelves for family members to stash their muddy, wet shoes, coats, umbrellas and even sports gear - and a sink or other area where they can clean up a bit so as not to track their wintry messes upstairs. Same goes for oversized laundry rooms that were built in the days before full-sized stacking, front-loaders were even a possibility - if you have oodles of extra laundry room space, rethink it into a mudroom/laundry room combo.
If you live in an area with mild winters, but you have canine family members, the very features which make basements and laundry rooms great mudrooms render them prime sports for installing a pet bath or shower area.
7. Formal living room into library. Are you a book junkie? It’s relatively harmless, as vices go, with one exception: it can be excessively space consuming. By this I mean, it can be excessively clutter-creating, if you don’t get a handle on it. If you have a formal living or dining room that is simply not being used, consider lining the walls with bookshelves - bought or built in - and converting the space into a library. Comfortable, well-lit seating and a desk or writing area will finish the room off.
If books don’t float your boat or you have switched entirely over to e-reading, this same model can be applied to any space-sucking collection that you spend more time enjoying than you spend in your formal living or dining room.
Just listed:
<Lot#1>
19566 W Willow Fishhook Road
Willow, AK 99688
Phone#: 907-694-1234
Price: $80,000
This flat recreational lot is near the popular fishing location, Deshka Landing as well as Willow Creek. Come check out where you can build your new cabin!
<Lot#2>
A001 No Road
Lot Size: 23.25 Acres
Get more info here
This huge piece of property is the perfect escape into the beautiful Alaska wilderness. Enjoy lake front property as well as land surrounding a serene pond.
We also have other vacant lots available.
Brought to you by:
Les Bailey & Associates Real Estate Team
Keller Williams Alaska Group
Direct: 907-694-1234
Toll Free: 1-800-784-2912
Beautiful, spacious and relaxing home with fully fenced backyard in Eagle River
16529 Carla Street
Eagle River, AK 99577
Phone#: 907-694-1234
Price: $239,000
Just Listed
Property Type: Single Family; Style: Ranch-Traditional
Beautiful ranch style home nestled in the heart of Eagle River. Recently updated throughout.
Convenient floor plan with three spacious bedrooms located on one end of the home with the fourth privately located on the other end.
Relax in this lovely home with a cozy wood burning stove, open living area,
fully fenced back yard, and much more.
We also have vacant lots available.
Brought to you by:
Les Bailey & Associates Real Estate Team
Keller Williams Alaska Group
Direct: 907-694-1234
Toll Free: 1-800-784-2912
A beautiful home located in the Settlers Bay subdivision near the Settlers Bay Golf Course in Wasilla
7110 S Territorial Drive
Wasilla, AK 99623
Phone#: 907-694-1234
Price: $189,000
Just Listed
Property Type: Single Family; Style: Ranch-Traditional
This beautiful home is located in the Settlers Bay subdivision near the Settlers Bay Golf Course.
This home has many features which include being handicap friendly, RV parking, true master bedroom,
large entertaining spaces, crown molding, plenty of space,
and the list goes on and on.
We also have vacant lots available.
Brought to you by:
Les Bailey & Associates Real Estate Team
Keller Williams Alaska Group
Direct: 907-694-1234
Toll Free: 1-800-784-2912
By Tony Moton
Yahoo! Homes/Photo: Thinkstock - Find out which strategies can help you turn your upside-down mortgage right-side up.
Scuba divers and other submariners might be thrilled by the thought of being underwater. But homeowners? Not really.
Just ask Jim Martin, a senior loan originator with the Metro Advisor Group - a mortgage company based in Pittsburgh, Penn. Martin says homeowners who are "underwater" owe more money on their mortgage than their house is worth. This situation - also known as being "upside down" or having "negative equity" - can cause homeowners to panic about their financial well-being, he says.
But, here's some good news for those homeowners: The housing market is on the rebound. In fact, rising home prices led to 850,000 residential properties returning to a state of positive equity during the first quarter of 2013, according to a June 2013 study by CoreLogic, an organization that provides comprehensive data for the real estate market.
While this is great news, there are still plenty of homeowners who aren't out of the water yet. CoreLogic's analysis also showed that 9.7 million - or 19.8 percent of all residential properties with a mortgage were still underwater.
Thankfully, mortgage professionals say there are a number of potential solutions - like government-backed refinance programs - available to homeowners seeking to rid themselves of negative equity. Here are some options to consider should you have an underwater mortgage.
If your mortgage is owned by Fannie Mae or Freddie Mac, the second incarnation of the Home Affordable Refinance Program (HARP) could widen your possibilities of qualifying for a refinance.
Here's how: HARP 2.0 has eliminated the maximum loan-to-value (LTV) ratio for HARP loans, reports the Federal Housing Finance Agency (FHFA). This means that homeowners who were previously denied from the program because their home's value was too low (relative to how much they owed on their mortgage) could now qualify.
And along with making it easier for homeowners to be eligible, HARP has also been extended until December 31, 2015. Originally, it was supposed to end in December 2013.
“More than two million homeowners have refinanced through HARP, proving it a useful tool for reducing risk,” said FHFA acting director, Edward J. DeMarco, in a press release announcing the deadline extension. “We are extending the program so more underwater borrowers can benefit from lower interest rates.”
Option #2: Consider an FHA Streamline Refinance
If you don't qualify for HARP, you still have options - one of which is the Federal Housing Authority's (FHA) "Streamline Refinance" program, which has looser qualifications than HARP.
In fact, with an FHA Streamline Refinance, employment verification, income verification, and credit score verification are all not required, according to the U.S. Department of Housing and Urban Development (HUD).
So, what exactly is required for a Streamline Refinance? According to HUD, these are basic requirements:
Members of the armed forces might be trained to deal with adversity on land, at sea, and in the air, but being underwater as homeowners is an entirely different ballgame.
Luckily, the U.S. Department of Veterans Affairs' Interest Rate Reduction Refinance Loan (IRRRL) is a viable option that assists veterans who are underwater on their mortgage.
“It’s a very strong program, but you have to be a veteran currently in a VA (home loan),” Martin says.
If you fit both of those criteria, according to the VA's website, the IRRRL program is designed to lower interest rates by refinancing existing VA home loans. The possible end result for the homeowner is paying a more affordable house note.
"By obtaining a lower interest rate, your monthly mortgage payment should decrease," writes the VA's website.
The biggest advantages of the IRRRL is that it doesn’t require a home appraisal or credit underwriting, according to Martin. If your home has negative equity, this facet of the program could prove invaluable for homeowners who qualify.
by Scott Sheldon
Image: iStockphoto
For consumers purchasing or refinancing a home with less than 20% equity or 20% down, there’s a little-known fee that will apply to the total mortgage payment, effectively inflating the monthly outlay.
Mortgage insurance is paid by the the homeowner to insure the lender against future mortgage payment default. Mortgage insurance, also dubbed as PMI (an acronym for private mortgage insurance), can easily be several hundred dollars per month depending on the loan program. This added premium makes the cost of homeownership more expensive.
However, there is a way to cut your mortgage payment using single-pay mortgage insurance.
First, keep in mind that “loan to value” (LTV) is the amount of money being lent against the value of the house. It’s computed by taking the loan amount, divided by home value. It’s a critical factor in home lending.
It is, in short, an added fee, but with a favorable upside.
Most people hate the idea of paying an extra monthly fee without any direct benefit to them. Consumers don’t directly receive a benefit from paying mortgage insurance (despite tax deductibility in some cases), other than the ability to secure lower equity financing.
Single-pay mortgage insurance allows a consumer to pay upfront a portion of the future mortgage insurance premiums at a discount at the close of escrow rather than financing these monies into their house payment. This improves the ability to qualify by means of a lower debt-to-income ratio, a lower monthly mortgage payment, and a lower cost loan.
Let’s say a consumer is looking at a loan for $300,000, using 70 basis points of the loan amount to estimate monthly mortgage insurance, $175 per month or $2,100 annually. $2,100 a year for five years adds up fast… $10,500 to be exact!
The single-pay choice (using an average 1.75% of the loan amount) would translate in this case to $5,250 that’s paid one time at closing. In other words, in exchange for more upfront overhead, the house payment is reduced by $175 per month. A consumer would recuperate these monies within just a little more than two years.
Consumer Tip: Further requirements include a middle credit score of least 700 or higher, primary home or secondary home financing only, a max 45% debt to income ratio and an approval from the lender.
Single-pay mortgage insurance offers consumers any easier more flexible way to secure financing and keep the long-term mortgage payment more manageable against a household budget. If folks have the equity or cash available, single-pay mortgage insurance makes securing higher loan-to-value financing more manageable as a PMI payment would never be required.
By dornob
Tumidei is more than just a furniture company - they construct modern and relatively inexpensive (no, not cheap) pieces of furniture that they also create compositions from - interior design photos that you can use to shape your own space.
These lofted bedroom interiors are brilliantly varied and are great space-saving solutions for cramped bedrooms.
Lofted Space-Saving Furniture for Bedroom Interiors
A lot of these lofted interiors are clearly designed for children and teens in terms of sizes, colors and material quality. They incorporate elements needed for a student office, plenty of clothing, game and toy storage and stairs that older people might not be as eager to climb. For a small space (and a small person) one could really see the appeal of fitting everything in.
There is nothing to say that adults could not use this furniture as well and there are certainly more ways to put these sets together than are suggested by these photographs, but they do provide some ways in which you could coordinate colors, materials and forms to create a composite design that looks planned and organized ahead of time.
Not all successful designs have to be complex, require expensive materials or involve beautiful three-dimensional renderings to be brought to completion. This lofted mini-bedroom idea provides a combination of privacy, functionality and simple style without being over-designed.
The bed area is open to the living space below, providing openness but also relative privacy for anyone lying down upstairs. A simple step down from an upper landing creates a further sense of enclosure while also doubling as a shelf – a kind of impromptu nightstand for books, lights and so on. Simple and inexpensive plywood frame the structure and basic primary paint and bedding colors add variety to the linear spaces. This is small-space living at its best!
All photos are by dornob
By ETFtrends.com
REM8
Rising interest rates adversely impact a number of asset classes that, in more sanguine market environments, are prized by income investors for steady payouts and robust dividend yields. Count mortgage REIT ETFs among that group.
As yields on 10-year U.S. Treasuries have soared 15.5% in the past month, rising to a flirtation with the ominous 3% level, “mREIT” ETFs have stumbled in dramatic fashion. The iShares Mortgage Real Estate Capped ETF (REM) has stumbled 10.6% since July 19 while its smaller rival, the Market Vectors Mortgage REIT ETF (MORT) is off 11% over the same time. Monday’s 4.3% drop for REM, which occurred on volume that was well-above average, took the ETF to a closing print of $11.25, a new 52-week low.
MORT has not fallen to a 52-week low yet, but if it closes below $21, it will be the first time the fund has done so since October 2011. Analysts see REITs of all stripes as vulnerable to rising rates because higher borrowing costs could force REITs to allocate more cash to debt servicing rather than dividends. In June alone, Annaly Capital Management (NLY) and American Capital Agency (AGNC) lowered their dividends. Those are REM’s two largest holdings, combing for 31.7% of the ETF’s weight.
Since the end of the financial crisis, mREIT stocks and ETFs have been solid performers, getting a lift from the Federal Reserve’s ultra-loose monetary policy. Near-zero interest rates made financing cheap, allowing REM and MORT holdings to use leverage to bolster their yields.
The Fed has been buying $40 billion in mortgage-backed securities per month, which had been a boon for MORT and REM. That is until tapering chatter started in earnest in May. MBS are vulnerable to rising short-term rates because those higher rates are seen as dampening refinancing activity. Since May 20, REM has plunged nearly 26%, putting the ETF squarely in a bear market. MORT is down 23.7% over the same time.
MORT allocates 28.2% of its weight to Annaly and American Capital. Shares of Annaly have tumbled more than 29% in the past 90 days and touched a new 52-week low Monday. American Capital is lower by 31% over the same time. On Monday, the stock closed less than 25 cents above its 52-week low.
iShares Mortgage Real Estate Capped ETF
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of REM.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.
Come see all its amazing features this Saturday, August 24, at 11am-2pm. This event will be hosted by Cody Fenton and you may reach him at 907-830-4572; codyfenton84@gmail.com. Please bring your friends and buyers. We hope to see you there.
Where:
11649 E ERICA Circle
Palmer, AK 99645
Brought to you by:
Les Bailey & Associates Real Estate Team
Keller Williams Alaska Group
Direct: 907-694-1234
Toll Free: 1-800-784-2912
By Tara-Nicholle Nelson
I once read an MLS property description that read simply: “This place is a mess!” The photos proved the agent’s point, though the uber-low list price compensated for the near-condemnable condition of the property.
Few things in our industry give agents as good a laugh as an egregious online property listing. Here are some bloopers and foul-ups that still crop up regularly. Note to self – don’t do the following:
Just because your phone has a camera doesn’t mean you should use it to take your listing photos. Seriously. Not all mobile phones are made equal.
While some may take listing-ready pics, many, many phones have resolution or lighting issues that produce low-quality, low-resolution images. Even if you outsource your photos, make sure you actually view them, versus letting your photographer or a team member handle this uber-essential step. I’ve seen agents pay for MLS photos that were clearly taken on trash day, because the dumpster was squarely blocking the home’s exterior.
Other listing photo blunders that are still surprisingly common include: poor photo selection, photo fraud (see #2, below) and failure to upload (see #3, below). It’s essential that you ensure there are photos of all the major features buyers use to screen properties in and out of their ‘must-view’ list. This includes the kitchen (and appliances), bathrooms and the frequently neglected front and back yards.
The web is a highly visual medium, and also happens to be virtually every buyer’s house hunt starting point. In fact, today’s buyers’ brains cannot even process listings without pictures. I mean, they literally won’t even click on them.
I’d guess that most of the listings I see with no photos online at all are due to some sort of glitch in a team’s workflow. Maybe one assistant thought someone else was uploading the images, or someone started to upload them but got distracted by an incoming client call and forgot to click save. Marketing assistants can be life-savers. But this is YOUR business, and your role is to delegate, not totally abdicate all responsibility for your listings.
Even the most professional team needs diligent oversight. When it comes to listings and photos, the best practice is to double-check every listing as it appears on your local MLS system, on Trulia, and on every other online site you’ve promised sellers you use in your marketing. You can’t afford to have even one interested, qualified buyer scroll past your listing because it registers ZERO images.
One (in)famous TV agent was recently fired and investigated by law enforcement when his franchise’s HQ found out that he’d been boldly photoshopping hardwood floors, marble counters and bookshelves into an otherwise unlovely home. While you might not be tempted to go this far, there are hundreds of listings online featuring photos with a remarkable disconnect between the space and proportions displayed online, and those you see when you get into the house.
Photo manipulations? Fraud? Don’t be tempted.
Much more common than fraud is the phenomenon of “fluffery.” Fluffery is using adjectives to fill out your word count and make a place sound slightly better than it truly is in an effort to just get people in the door. Here’s the real deal: there’s someone for every home, and a home for every type of person. And you can’t trick someone into buying a home. They will see it before they buy, and you run the risk of irritating buyers and buyer’s brokers if you develop a pattern of posting misleading or overly fluffed listings.
Instead, aim for highlighting the home’s best features and accurately representing the totality of the property in your listings, with the goal of helping the buyer that’s looking for just those features find their way home.
Spell-check isn’t foolproof, especially when (as with most listings) there are acronyms and shorthands sprinkled throughout your text. There is nothing like a second, third and fourth read-through to reveal awkward sentence structure or the wrong version of “hear” (you probably mean “here”). It’s not overkill to simply set up a policy of having another pair of eyeballs read everything before you post it to your MLS.
Typographical errors and syntax snafus are not that difficult to make, but they are bad form. Conversational and correct listing copy is a sign of your professionalism, not just to buyers and their brokers, but also to the seller who has entrusted you with their biggest asset.
Social media sites like Facebook, Pinterest and Twitter can be time sucks or revenue streams depending upon the attitude you take towards them and your execution. But more than half of Americans have a Facebook account, so it behooves us all to figure out a time-efficient program for socializing our listings.
Thoughtfully constructed listing photo albums, insider insights on the neighborhoods you serve, and even the occasional ad are worth a bit of time and investment on an ongoing basis. It’s entirely possible that your existing friends and past clients might just know the right buyer for your new listing. Facebook is a free way to loop them in and keep them up-to-date on what you have on the market.
Some say that mobile apps will render flyer boxes obsolete. It’s possible, but that day has definitely not come yet. Empty flyer boxes reek of neglect and send the wrong message to the right people: neighbors who might be considering calling you to list their own home, buyers who’ve seen the place online and are doing a drive-by preview and even neighborhood passers-through whose heads have been turned by your listing.
I know buyers in several hot markets who are getting amazing deals on homes. How? They are all homes that are listed by out-of-area brokers, who probably don’t know how to fully market a listing in the area and might just be struggling to find the time to get to the property and show it. These homes all lagged on the market, compared with the average listing in the area, before selling.
If you are given the opportunity to list a property out of the area, why not find a local broker to co-list it with you, or refer it to them altogether? The gas and time you’ll save will be well worth, as will the peace of mind knowing you did the best you could for your seller.
Bonus: chances are good you’ll create a new stream of referrals from your local co-broker in the process! If you don’t know anyone in the area, use our Find an Agent feature to pinpoint a few.
By Alex Veiga
FILE - In this Monday, Oct. 1, 2012 file photo carpenter Nick Rossi, of Newton, Mass., a contractor who does home remodeling and renovations, uses a hammer while completing a door installation at a home in Watertown, Mass. Spending on home remodeling has picked up and is expected to rise nearly 20 percent to $151 billion by the fourth quarter of 2013, according to a recent report by the Joint Center for Housing Studies at Harvard University. (AP Photo/Steven Senne, File)
Homeowners are opening their wallets. A rebound in the housing market has made them more willing to invest in renovations that could boost the value of their homes even more in a rising market.
Spending on home remodeling has picked up over the past 18 months and is expected to rise nearly 20 percent to $151 billion by the fourth quarter, according to a recent report by the Joint Center for Housing Studies at Harvard University.
Many homeowners decide to make upgrades with the idea that the bigger kitchen or finished basement will make their home more enjoyable. But those looking to sell should know that not all home improvement projects will boost the value of a home.
Here are six tips when considering investing in home improvement projects:
1. CONSIDER ALL BUYERS
The classic example here is installing a swimming pool.
A pool could make your home a tougher sell and it's unlikely you will recover your expenses, says Richard Borges, president of the Appraisal Institute, a professional association of real estate appraisers.
It may be a deal-killer for buyers who might not want to take on maintenance costs or safety risks for small children. "It's not going to contribute a full measure of its cost of installation because its utility is so limited," Borges says.
The principle holds true for other large projects that can alter the structure of the property, such as adding a second garage. In some neighborhoods, they may be a common feature that becomes a selling point. But if it's not common, it could discourage buyers who don't have a need for it.
2. DON'T 'OVERIMPROVE'
Some home improvements can help lift a home's resale value, especially updates to features like cabinets and appliances that are clearly dated.
The key is to select finishes and appliances that don't go well beyond what a buyer might find in similarly priced homes in the area. The term appraisers have for that is "overimprovement."
Consider a homeowner in a neighborhood with modest homes who splurges on pricey countertop finishes like quartz or marble. They're not likely to recoup the cost when appraisers look at recent sales of comparable homes that may not have such lavishly appointed kitchens.
This applies to everything from lighting to flooring and bathroom fixtures.
3. CONSIDER RISKS OF EXPANDING FOOTPRINT
One of the home improvement projects that's least likely to produce a return on the investment is a room addition that expands the size of a home beyond its original floor plan, says Borges.
Projects that require tearing down an exterior wall often involve moving doors, windows and other features, which can drive the costs higher than, say, converting an attic into a bedroom, which uses existing space in the home.
The more expensive the project, the harder it can be to recover one's costs.
Also, making major changes to the original structure, even when permitted by the city, runs other risks.
"When you become the oddball, the only home in the neighborhood with four bedrooms, probably the fourth bedroom is not going to be that desirable," Borges says.
4. CONSIDER COST-TO-VALUE
One way to gauge whether a home improvement project is worthwhile is to estimate how much of what you spend will be recovered at resale.
For example, if you spend a $1,000 on siding, and it only adds $500 to the resale value of your home, that upgrade is giving you a 50 percent return on your investment.
Remodeling magazine's latest cost-value-study, which is based on surveys of real estate agents, can help provide a ballpark reference. You can find it here: www.remodeling.hw.net/2013/costvsvalue/national.aspx
That said, when home prices are rising fast enough, like during the last housing boom, it's easier to recover costs spent on home improvements, regardless of the upgrade. The alternative scenario also holds true.
5. PRIORITIZE REPAIRS AND CURB APPEAL
Making the master bedroom bigger or converting a downstairs closet into a half-bath might seem like good investments, but not if you need to upgrade your roof or fix window seals.
Those fixes may not be aesthetic upgrades, but often make a home easier to sell.
Replacing your front door might cost you $1,500, but it's the type of upgrade that can make a home attractive to buyers, says Sal Alfano, editorial director of Remodeling magazine.
The magazine says replacing the front entry with a 20-gauge steel door is the upgrade from which homeowners can expect to recoup the most money among renovations that cost less than $5,000. The magazine estimates a recovery of 85.6 percent of the cost.
6. CONSULT AN EXPERT
Before moving forward on a home improvement project, consult with a real estate agent or an appraiser who knows your market.
They should be able to gauge how the upgrade could affect the sales price of your home. That can help you determine how much of your investment you're likely to recoup.
Almost all appraisers are independent and set their own fees. A consultation could cost between $500 and $1,000.
Real estate agents might be willing to offer their assessment for free, perhaps with the understanding that they might earn your business when it comes time to sell.
By Geoff Williams
Getty Images/Thinkstock
Judging by the TV commercials, most home improvements are a blast. You waltz into a store, throw a bunch of new faucets and buckets of paint in your shopping cart, without sweating about the cost, then transform your dingy kitchen into something out of, well, a TV commercial.
Frequently, those TV spots are spot-on. It is fun to have a new kitchen or to show off your newly installed hardwood floors to your friends and family. But it's all too easy to forget about home improvements that will only get you a polite nod when showing them off - and yet if you ignore them, they could cost you serious money.
So if you're a homeowner with some extra cash this month, look around. There's plenty you can do.
The basement. Particularly if you live a humid climate, you could install a dehumidification system, suggests John Isch, co-chair of the American Institute of Architects Custom Residential Architects Network. This is a much more sophisticated operation than your basic humidifier and will get rid of the humidity in the basement, and some are designed for the entire house.
It may not sound like much of an improvement at first, especially if your family and visitors aren't complaining about the humidity in your home, but even if it isn't noticeable, the humidity may well be there. As Dawn Zuber, another American Institute of Architects member, points out, if the humidity is removed, the house will feel cooler - which may mean you use the air conditioning less.
A dehumidifier may also protect your collectibles. "I run one in my basement and as long as it takes the humidity out of the air, it's keeping all the junk I am storing downstairs from decaying," Zuber says.
Typical cost: Expect to spend at least $1,000, depending on the system.
Typical savings: It is impossible to say, and it may not be worth the cost. But consider how often you use your air conditioner and how much the stuff in your basement is worth.
The attic. If you're interested in only heating and cooling the parts of the house that you live in, and not, say, the drafty attic you rarely visit, Zuber suggests homeowners seal up the air in the upper part of their homes.
"Have someone go up in the attic and seal any penetrations between the ceiling and the attic, like where the pipes and vents go through, and add spray foam insulation to the rim joists in their basements or crawl spaces," Zuber says. "This is the area above the concrete or concrete block wall, where the floor framing meets the exterior wall. Adding attic insulation also provides a nice return on investment if there's less than 10 inches of existing insulation."
Why is that important? The thinner the walls, the faster heat passes through. The more insulation you have, the longer your house stays warm in the winter, and in the summer, it'll stay cooler longer, since the heat from outside can't get inside as quickly.
If you're really into this project, Zuber suggests hiring an energy auditor or home energy rater to test your house and recommend the most cost-effective insulation and air sealing techniques.
Typical cost: A can of spray foam insulation only costs about $6. Of course, if you hire an energy auditor or home energy rater, plan on spending $400 to $500. And if you send a professional handyman up to the attic with a can of $6 spray foam insulation, you may want to add another $100 to your cost.
Typical savings: Again, it's hard to quantify, but if all you have to spend is $6 on a can of spray foam insulation, and you find even one gap to fill, you'll probably come out ahead.
Cracks under windows and doors and holes near the foundation. Unfortunately, there probably aren't just cracks and gaps in your attic - your basement may have them, too, and there may be spaces around your windows and doors where air is getting in. (If you want to, you could spend a good month or two, and quite a bit of cash, sealing up all the cracks in your house.)
Dean Bennett, who owns Dean Bennett Design and Construction, Inc., a design and building firm in Castle Rock, Colo., suggests looking for gaps in the walls of your basement. "It's very common to have these gaps in houses that are more than 15 years old," Bennett says. "Construction techniques did not involve sealing between the sill and foundation very well. Now, they use a layer of foam between the two."
If you live in an older home, Bennett says you can do yourself a favor by doing a "close visual check" for any holes around your basement or foundation. He says filling in the holes could help prevent hot summer air or cold winter air from filtering into your home - not to mention mice and other critters.
Advertisements will tell you to replace your current windows and doors with energy-efficient ones, and maybe you need to. But many home improvement experts will tell you that if there's a draft, it may be adequate to simply weather-strip your doors and windows.
In fact, "the biggest home-energy and money wasters are windows and doors because of the heat they let out and cool air they let in, depending on the season," says Andrea Thomas, Wal-Mart's senior vice president of sustainability.
Typical cost: The can of spray foam insulation to use in your basement runs about $6. As for weather stripping, the price varies, but a 10-foot strip of rubber window weather stripping can be found at many stores for less than $10.
Typical savings: If you weather-strip, Thomas says the average homeowner can save $160 every year in heating and cooling costs.
Decks. Have a wooden deck? Don't forget to put a new coat of stain on it, once every three years, according to Bennett. "It will weatherproof it as well as make it look better," he says.
Typical cost: Deck stain can cost anywhere from $40 to several hundred dollars. Add a couple hundred dollars if you hire a professional to do it. And if you want to replace a deck, Bennett points out that those made of composite materials don't require staining.
Typical savings: A wood deck that is stained regularly can last 20 to 30 years, Bennett says. "If you never do it, you'll shorten the life of your wood deck by 50 percent or more."
17322 Charity Lane
Eagle River, AK 99577
Phone#: 907-694-1234
Price: $435,000
Just Listed
Property Type: Multi-Level, Tri-Level/Single Family
We also have vacant lots available.
Brought to you by:
Les Bailey & Associates Real Estate Team
Keller Williams Alaska Group
Direct: 907-694-1234
Toll Free: 1-800-784-2912