Remodeling your home: Does it pay off?

It is a question homeowners often ask themselves: Should I remodel, or sell, or remodel AND sell?

How can you know which remodeling projects will net the highest return on your investment? Each December, Remodeling magazine conducts a national survey designed to determine just that. It collects data from builders and contractors concerning costs of materials and construction from 80 metropolitan markets, and adjusts for regional pricing variations. Then they survey more than 150,000 appraisers, brokers and practitioners to estimate the resale value for each remodeling project.

Can you guess which remodeling projects typically recoup the largest ROI (return on investment)?

The correct answer -- which has been consistent for many years -- is kitchens and bathrooms. What may surprise you, however, is that a mid-range upgrade will likely reap an average 10% higher rate of return than a super-deluxe remodel. Restraint and pragmatism seem to be the wisest practices in the current economic climate.

Following are the top 6 remodeling projects for the Pacific Northwest, according to this year's survey, that will give you the biggest bang for your buck:

#6 Attic bedroom addition -- Average cost: $60,135; Average ROI: 87.7%

#5 Wood deck addition -- Average cost: $12,838; Average ROI: 91.5%

#4 Basement remodel -- Average cost: $74,974; Average ROI: 91.6%

#3 Siding replacement (fiber cement) -- Average cost: $13,759; Average ROI: 92.1%

#2 Kitchen remodel (minor) -- Average cost: $23,210; Average ROI: 94.8%

And THE #1 project in terms of recouping its cost is:

#1 Entry door replacement!! -- Average cost: Just $1,353; Average ROI: 128%

Surprised by #1? It just goes to show, a first impression can be invaluable, even when it comes to selling your home.

To access the full report, Cost vs. Value 2008-2009, go to http://www.remodeling.hw.net/2008/costvsvalue/national.aspx

Saturday morning Open House on Alki

This morning, from 10-noon, I will again be holding open a new construction, 3 bdrm/2.25 bath home just one block from Alki Beach AND priced at just $469,950! This is a gorgeous, built-green home of modern architectural style with 1341 sq. ft. of living space and off-street parking. The address is 3021-63rd Av SW, 98116. I will be there from 1-4 on Sunday as well. Come visit me and pick up your coupon for a free ice cream cone from Husky Deli!

Questions? Give me a call or text me at 206-708-9800.

A Perfect Storm for Homebuyers!

Real Estate Weather Alert!

The combination of LOW LOAN RATES, LARGE INVENTORY of homes, and a federal TAX CREDIT has created a Perfect Storm for potential home buyers!

If you anticipate buying a home in the next 6-12 months, DON'T WAIT! Here's why:

1) Interest rates are at generational lows that greatly improve the affordability of homes. Interest rates are bound to rise, and most experts predict that it will happen sooner rather than later. A difference of just 1% (e.g. 5% vs. 6%) on the loan rate for a $400,ooo home can cost you over $250/month. Not so much, you say? Over the course of a 30 year loan, that translates into an additional $90,330! Put another way, if you can afford a $300,000 house at 5%, you will only qualify for a loan of approximately $270,000 at 6%. That might translate into one less bedroom or no garage or no updates to the home.

2) High inventory of homes. We are currently in a "buyer's market." That means there are more sellers than there are buyers, so by the economic law of "supply and demand", buyers have the upper hand. This has contributed to a decrease in home prices and more bargaining power for buyers. In other words, there are many wonderful and affordable homes on the market from which to choose.

3) In an effort to stimulate the economy, the federal government is offering homebuyers a tax incentive. Most first-time home buyers (anyone who hasn't owned a home in the past 3 years) are eligible for an $8,000 tax credit and current homeowners may receive up to $6,500. That is a tax CREDIT, not a tax deduction. The difference is that a tax credit is directly deducted from the amount of tax you owe at the end of the year. If, for example, you owe $7,000 when you file, you would only need to pay $500! If you don't owe any income tax, you would receive a check back from the government for up to $8,000! (Please give me a call for more details on restrictions, but they really are minimal.) BUT THIS CREDIT ENDS APRIL 30, 2010.

So there you have it! A Perfect Storm for home buyers from now until April 30th. Give me a call at 206-708-9800 and ask me how I can help you take advantage of it.

This weekend's Open House

This weekend I will again be holding open a new construction, 3 bdrm/2.25 bath home just one block from Alki Beach AND priced at just $469,950! This is a gorgeous, built-green home of modern architectural style with 1341 sq. ft. of living space and off-street parking. The address is 3021-63rd Av SW, 98116. I will be there from 10-noon on Saturday and 1-4 on Sunday. Come visit me and pick up your coupon for a free ice cream cone from Husky Deli!

Questions? Give me a call or text me at 206-708-9800.

Current mortgage loan rates

Here is your weekly recap on mortgage loan rates and programs, courtesy of Troy Chambers, loan officer for Arboretum Mortgage.



"Rates are creeping down and we are close to being back in the 4% range on a 30 Year Fixed Rate. Please let me know if you have any questions, or if anyone you know is looking for a refinance or new home purchase. I am available at all times on my cell phone at 425-418-5103."

Troy Chambers
Arboretum Mortgage
Phone: 206-720-6628
Fax: 206-860-9340
troy@arboretummortgage.com

Table of Rates

Are you paint-color challenged?

I just learned about a great, new, FREE online resource for people like me who have trouble visualizing and choosing the best paint colors for your home.

The site is sponsored by Sherwin Williams. It allows you to upload pictures of your home and then "paint" the walls, trim, ceiling, etc. various colors available from their pallet to see how it will look. Seems to me that this could be really helpful, even if you choose to use a brand other than Sherwin Williams.

If you try it, please let me know what you think.

Sunday Open House: New Alki Townhome!

Today from 1-4P, I will be holding open a brand new construction townhome at 2817 62nd Av SW, just blocks from Alki Beach. 3 bedrooms, 2.25 baths, 1205 square feet of living space, off-street parking. List price: $418,950. To see photos and more info click the address in this post.