How Much Resale Value for a Garage?

Realty Times By PJ Wade on Wednesday, 15 October 2014

When you're planning renovations to boost the resale value of your home, don't overlook the other money maker on your property - your garage.
The ideas and suggestions offered here are aimed at detached garages, but most apply to attached garages as well:

1. Know your target buyers

Will this outside space represent true value to the buyers you're counting on to pay top dollar? If so, transform it into the best garage it can be. How can your garage separate your property from the competition? This may mean tearing down the worn-out version and building a new one, or adding a garage if none exists. Adding electrical power and running water can add value, but check value appreciation against costs and permit expenses before you undertake these changes.

2. Know your zoning bylaws
If your municipality allows accommodation to be added to a garage, the additional space and any related income may be the deciding factor for some buyers. If an occupancy permit is out of the question, the garage can still double as an art studio, workshop, or man cave, and differentiate your property from the neighbors. Will your zoning allow the space to be used for a home-based business?

3. Know how to expand storage
Fit out every corner of your garage as storage space for everything from seasonal decorations and furniture to extra chairs, bicycles, and sports gear. Shelves, hooks, bins, and cupboards are garage "jewellery."
4. Know how to go green
If green buyers are in your target, consider a green renovation with environmentally-friendly materials. Set the garage up to house electric and hybrid cars. Make a special bicycle section with the latest storage systems. Install a solar panel for lighting and other services. Add windows and skylights with insulated blinds to increase the amount of natural light when needed.

5. Know how to expand utility
Can the single garage be expanded to a double? How about a loft? Could a greenhouse be added to entice gardeners? Is there room for a hot-tub or sauna? Could an exercise room work here?

6. Know how to make value visible
Whether you match the garage's style to that of your home or give the garage a distinctive look, make the garage shine. Murals and trompe d'oeil can transform the mundane to the magical if you have a talented artist on hand. State-of-the-art door hardware, locks, and door openers make strong value statements.
Garages can add significant value or merely make a home stand out in a subdivision's crowd to become more saleable. However, the garden space taken up by a too-small or poor-condition garage may mean that demolition of the building and landscaping of the open space is the best value-adding approach.
Take care with this strategy. Once a garage has been demolished, some municipalities may not allow a new garage to be built on the property. That's where your real estate professional comes in. This local expert knows whether your garage represents value potential or a turn-off to target buyers. Ask the professional to back up their suggestions with actual sold examples, so you're not the one who pays for a misguided marketing approach.

How Older Homes Beat New Homes

Realty Times by Blanche Evans Tuesday, 07 October 2014

For a society that likes shiny new things, the latest research could foreshadow a surprising trend -- homebuyers choosing older homes over new construction.
Why? The prices and operating costs can vary widely. In August 2014, the median sales price of new homes sold was $275,600, while the median price of older homes was $219,000. Taxes and insurance may cost less for an older home.

     

People are often wowed when they go into a builder's model and see how beautiful it is. It has the latest bells and whistles, but when the buyer starts to add upgrades, the price can quickly increase. Once they see how much it costs to get everything they want, older homes start to look much more affordable.

Retro charm
Whether you prefer mid-century modern or Victorian shabby chic, older homes have personalities and features that are a lot of fun to decorate. You can also update an older home a little at a time instead of paying a big mortgage to have it all at once.

More available
Since the Great Recession, existing homes have been much less expensive than new homes, and builders have had a hard time getting market share traction. For example, the sales of existing homes in August were seasonally adjusted at 5.05 million units. Sales of newly built, single-family homes were 412,000 units, which is low by historical standards.

Stricter financing
A new home with a higher price tag may be harder to finance. Stricter lending requirements mean that borrowers have to stay within traditional guidelines of affordability, including down payments and debt to income ratios. An affordable home should not take more than approximately 30% of household gross income to cover mortgage notes, taxes and insurance.

Wealth effect is gone
Despite recent gains in the stock market, people simply don't feel as wealthy or as confident. In 2010, returns were about where they were in 2000, meaning a lost decade of wealth-building in stocks and bonds, as well as housing equity. Four years later, many investors have yet to make up their losses.

  Higher building costs
National Association of Home Builder's (NAHB) research shows lumber and wood products account for 15% of the cost of construction for a single-family home. Lumber prices are 27% above their average 2011 levels. NAHB economists estimate that a 10% increase in the price of framing lumber per 1,000 board feet adds approximately $660 to the price of an average new home.
Even a small change in home prices or interest rates can determine whether homebuyers can buy a home. A 2012 priced-out analysis done by NAHB found that a $1,000 increase in new home prices from $225,000 to $226,000 eliminates 232,447 households from being able to afford the same home. A 10% cost increase in the average wholesale price of framing lumber would mean that about 160,000 families would not be able to qualify for a mortgage on an average first-time home.

Commutes more expensive
Most new homes are built where land costs are cheaper, well outside the inner city. The Department of Energy expects commuters to pay an average $700 more annually in gasoline costs to live in the suburbs. The cost of commuting could make older homes in the inner city, walking communities, and homes near public transportation more attractive to homebuyers.

Where new homes beat older homes
Because it's easier to build green than to retrofit, new homes have the advantage over older homes when it comes to energy efficiency. Sixty-eight percent of homebuilders say the home of 2015 will have more energy-efficient features such as insulated windows and water-efficient fixtures, and Energy-Star-rated appliances, heating and cooling systems.
Whether homebuyers choose existing or new homes, one thing is certain- they can't go wrong either way. In an inflationary environment, buying a home is one of the best hedges against rising rents and higher building costs down the road.

How to Save As Much Energy as You Can in Your Home

Realty Times- By Julia Gomes Monday, 29 September 2014

 

If yours is like other households, meeting your financial obligations each month may be getting harder to achieve.  There are some interesting ways that you and your family members can save as much energy as possible so that your utility bill can be lower each month and under your budgeted amount.  Let’s look at some questions that you can pose to your family so that you can begin to work together on cutting your energy bill drastically before winter arrives.

1.      First examine the type of light bulbs that you are using so that you can be assured that they are low energy rated bulbs.  Different kinds of bulbs use less electricity and can help to reduce your utility bills and will last longer too.

2.      When you or a family member leaves a room are you turning the lights off?  When children or teenagers exit their rooms, make sure that they develop the habit of switching the lights off so you won’t be illuminating an empty room and wasting energy that could be easily saved.  Forming good conservation habits when they are young will help your children become thrifty savers in the future.

3.      Adjust your thermostat down a couple of degrees and you’ll be surprised at the savings that you realize on your quarterly energy bills especially during the winter.  By keeping a consistently lower temperature throughout your home you’ll be cutting your energy costs significantly.

4.      Wearing an extra layer of clothing around the house can also help you to save money on your energy bill; you won’t be uncomfortable when you adjust the temperature in your home and you’ll be cozy in your additional clothes.  If you are struggling to meet your energy bill each month, this could be an immediate solution to your problem and one in which all family members can participate.

5.      Check the insulation that you have in your home.  If it’s not adequate, you should arrange to have additional insulation added so your heating and cooling system will work more effectively.  You specifically need to check the loft and cavity wall insulation so you can run a more energy efficient household.

6.      What type of glazing do you have in your windows?  Many old homes still have the single glazed windows which tend to let draughts in and the heat from your home out.  It’s more economical to use double or triple glazed windows so that you can avoid losing heat through these openings;  The professionals on this website can offer you advice and expertise that is unmatched in the industry; they are knowledgeable about what will work best for your needs and can extend competitive pricing to you.

From drawing the curtains at night to switching off your appliances such as your television, DVD player, and audio equipment, you can find a plethora of ways to save a great deal of energy in your home.

How to Make the Most Out of an Open House

By Debbie Benoit, Boston.com

 

 

Open Houses are wonderful vehicles for potential buyers to do their research, hone in on communities and neighborhoods that fit their needs and ideally, even find their dream house. Knowing what to expect and what is expected will make those Sunday afternoons more productive and entertaining. Here are five tips to help you navigate and make the most of the open house.

 

1. Don’t be afraid of the real estate agent or the sign-in sheet – The host of the open house may or may not be the listing broker. Regardless, you should not hesitate to sign the register and give at least one means of communication. Sellers deserve to know who is touring their house. If you are working with a broker, list the broker’s name next to yours and communicate that to the broker. Feel free to ask all the questions you have of the host broker, whether there have been any offers, the benefits of the local school, neighborhood etc. If you aren’t working with anyone yet, this is your chance to try this one on. If he or she is attentive, well-informed, knowledgeable about the local inventory, and offers you information that will help you make the informed decision, you may have found the perfect agent to help you with your search.

 

2. Make yourself at home but remember your manners – I like to think of an open house as a party I throw every Sunday! Feel free to take your time and look all around at your leisure. It’s okay to open closets, kitchen cabinets etc. You need to know if this house will fit your needs. If you’re thinking of expansion or renovation, don’t hesitate asking the broker for his/her opinion. Chances are the broker has been involved in many a project and may have good ideas to share. Keep your comments positive. You cannot be sure friends or neighbors are not within earshot and you should let other buyers form their own opinions. Remember, you are a welcome guest in the house so you should be mindful of your manners.

 

3. The “Poker Face” rule—I have to admit I love an enthusiastic buyer, but I always advise buyers to restrain their emotions. The broker does work for the seller so you don’t want to give too much information that might compromise your position.

 

4. Focus on the property – Brokers will usually have handouts with property descriptions, floor plans, square footage, and special features. If you’re seeing a lot of properties in a day, take notes, ask the pertinent questions, even take a photo or two (with the agent’s permission) to help you keep them all straight. Make each visit productive. If the broker does not have the information you need to either yeah or nay it, ask them to send it to you.

 

5. Size up your competition – In an extremely competitive market, there will be times that you will be elbow to elbow with the competing offer on that property. Often, offers are accepted immediately following the open house. A smart buyer listens to the remarks made around him. You may very well learn something that will help you craft your offer.

Mortgage Rates Hit 2014 Low

By Les Christie 

Mortgage rates have dropped to their lowest level in over a year.

The average rate for a 30-year loan now stands at 4.1%, according to Freddie Mac. That matched its lowest level since June 2013, when it stood at 3.93%. The average 15-year fixed was 3.23%.
The government's stimulus program has helped keep borrowing costs down. The Federal Reserve has been purchasing Treasury Bonds and mortgaged-backed securities for years, providing a steady market for mortgages.

But the Fed has cut back on its purchases, and plans to end the buying program entirely in October, reducing demand for mortgage bonds. That should eventually cause rates to climb.
Low mortgage rates and home prices that are climbing more slowly should boost the housing market, said to Keith Gumbinger, spokesman for HSH.com, a mortgage information company.
"That should provide a solid foundation for home sales this fall," he said.

It was a strong summer.

Sales of existing homes rose 2.4% in July to an annualized rate of 5.15 million homes, according to a different report released Thursday by the National Association of Realtors
Stronger job growth has boosted the market, according to NAR's chief economist, Lawrence Yun, and a larger inventory of homes on the market give buyers more to choose from.
"That's making prospective buyers less hesitant about entering the market," he said.

 

 

Healthiest End to Spring Home Buying Season in Three Years

Real Estate News  |  Aug 20, 2014 |  By: Rachel Stults 




For the first time in three years, the peak home buying season is bucking its usual slowdown, showing nationwide price and inventory increases, according to the realtor.com® July National Housing Trend Report.
“This is the first time, since the beginning of the recovery, that we expect to see positive momentum throughout the second half of the year,” said Jonathan Smoke, chief economist for realtor.com^®.
For the past two years, the housing market saw external economic factors overshadow the gains made during the peak home buying season of April to July.
But not this year, Smoke said.
“This year, we’re ending the traditional season with high buyer and seller confidence demonstrated by price appreciation, increases in inventory and quick home sales,” he said.
Here are some highlights from the realtor.com® report:

July National Housing Indicators for 2012 – 2014

Year	Total Listings	Year over year change	Month over month change
Jul-14	1,979,475	2.3%	4.5%
Jul-13	1,935,623	-6.4%	1.3%
Jul-12	2,067,430	-14.1%	-0.8%

Year	Median List Price	Year over Year change	Month over month change
Jul-14	$214,900	7.5%	-0.1%
Jul-13	$199,900	5.3%	0.0%
Jul-12	$189,900	0.0%	0.0%

Year	Median Age of Inventory	Year over year change	Month over month change
Jul-14	82 days	-3.5%	7.9%
Jul-13	85 days	-16.7%	6.3%
Jul-12	102 days	-1.0%	7.4%

Homeowners are more optimistic about selling than in previous years, according to the data. In July, the number of homes on the market increased 2.3% compared with last year—and increased 4.5% from the month before.
One factor fueling this uptick in inventory is a 7.5% increase in median list prices year-over-year. Plus, despite higher prices and more homes on the market, buyers are snatching up properties faster than last year. Median age of inventory for July 2014 is 82 days, three days faster than in 2013.
While July growth may seem modest, it’s a stark contrast to housing indicators over the last two years.
In April 2013, mortgage interest rates began to increase significantly, making potential mortgage payments more expensive for home buying consumers. By July 2013, this slow but steady tightening of home buyer budgets dampened demand. As a result, month-over-month increases in inventory lessened and properties spent more time on market.
And in July 2012, concerns of broad debt defaults and economic weakness in Europe influenced big decreases in the stock market. Overall economic uncertainty contributed to weak consumer confidence, which influenced potential home buying consumers to remain on the sidelines while low prices made owners reluctant to list.
As a result, July 2012 median list prices remained flat both month-over-month and year-over-year. Inventory remained at very low levels and homes spent more days on the market.
“While seasonal patterns are emerging in July month-to-month comparisons, all other metrics point to fundamental market health and a build-up of momentum,” Smoke said.

Get Organized to Simplify Your Next Move

Realty Times Written by Phoebe Chongchua on Thursday, 07 August 2014          

When you're selling your home, getting your belongings organized can seem like a low priority. You're dealing with finding the right real estate agent, the best time to list your home on the market, and maybe even house-hunting for a new place to live.
All of that can keep you quite busy considering many of us have to do those things while we work a full-time job. Organizing your home so that you can simplify your move just doesn't seem practical.
However, there is one main reason why getting organized can not only simplify your next move but also help improve your chances of selling your home faster and for more money.

When you go through the process of getting organized, you should be eliminating items from your home which helps to clear clutter. Clearing clutter is one of the first things agents and experts who stage homes for sale will tell you to do.
When the clutter is gone, the home can be shown much easier. Potential buyers can see what makes your house so special and different from others in the neighborhood.
If you're putting off the process of getting organized because you think you should wait until you accept an offer, let me encourage you to get motivated to do it sooner. I've seen it happen many times. The homeowner thinks there's plenty of time and then when an offer is accepted they're thrust into high gear because the buyer wants to close escrow fast.
Of course, your agent can negotiate the closing date but sometimes a faster closing is a must. Yes, you may be able to rent back from the new owners to give you more time to prepare to move but you can't avoid the fact that you'll need to move at some point.
Here are five tips that can help you jump start your organizing and simplify your next move. You will be glad you started before you get an offer to purchase your home.
1. Sort piles of belongings into groups: keep, giveaway, maybe, and trash. The "maybe" pile, you box up and seal for six to 12 months. If you don't have a use for your items in the "maybe" box during the year then perhaps you can donate it.
2. Give yourself plenty of time. Be patient:  this process of getting organized takes time. Know that when it comes to sorting through personal papers and memorabilia,  it will take you much longer than reviewing other items. Leave some extra time for the expected reminiscing that will occur.
3. Store your items in clear plastic bins. Using clear boxes helps to let you have a quick view of what's inside. If you use cardboard boxes or colored bins,  use a pen to clearly label what's inside and which room it will go in at your new home. You might want to use a large piece of paper to write the label on so that you can reuse the bin again later for another purpose.
4. Get rid of the paper. A big problem in many homes is the paper trail they have from room to room. It could be magazines, newspapers, documents, advertisements, receipts... you name it. Most homeowners keep a lot of paper which creates a lot of clutter. Go through your files and reduce the paper by shredding or recycling documents you don't need. You'll find that a lot of what you're hanging on to, you just don't need.
5. Do it now! This is the most valuable tip. As soon as you finish reading this, go put a time on your calendar when you will begin to get organized. Placing it on your calendar should help you block off time to get started and prevent procrastination. If you take care of things right away, you'll find that life gets simpler. The same goes for your move. So, get organized and simplify your next move!