IS REMODELING MY KITCHEN A GOOD INVESTMENT?

As a builder, i have been asked this question probably more than any other. The answer is an unequivocal…maybe! It depends on several things. What is the value of your home? How much do you have to spend? And, how long do you plan to stay in your home?

Everything else aside, how much is your home worth? It is typical to spend 6 – 10% of your home’s value in a kitchen remodel. That is for cabinets, tops, appliances and flooring- for now we are not moving any walls. Of course, depending on the condition and age of your existing kitchen, you might want to just spend half of that budget and reface the cabinets, and add new tops and appliances.

How much you spend is dependant on the size of the project as well as how much of the work you will do yourself. Labor can be as much as 1/2 or as little as 1/3 of the project. A big enough chunk of change that you might want to spend Saturdays at your local home center’s renovation classes to brush up on your skills. This is a good time to hone your shopping skills. Many stores have display models or closeouts that are at a big discount. This savings is a great way to grow equity in your home.

How long you plan to stay in your home can play a large role in deciding if that renovation is a reasonable thing to do. If you plan to be in your home for more than five years, the cost of the renovation work would make more sense than if you planned to sell the house right away. This is because, in general, a freshly renovated kitchen will only return a fraction of the cost involved when the house is sold- you won’t get your entire renovation cost back. If your older home is dated, but in good working order, you might want to keep the sales price as low as you can  and sell the house the way it is rather than renovate and try to recover that cost at the sale.

If you plan to stay in your home for a while, the cost of a renovation is more of a comfort and personal issue  than a investment one. At that point, you will be getting personal enjoyment out of your kitchen renovation bucks, and if you do a lot of the work yourself, a modest jump in the value of your castle.

One last word of caution. Be careful not to overdo your renovation in terms of your neighborhood home values. Also, try to stay more or less mainstream in the design of your new kitchen- no matter how long you plan to stay there. At some point either you or your heirs will need to sell your home. A well thought out kitchen design will only help the sales appeal, while an over-the-top design… not so much.

GET THAT HOUSE READY TO SELL-5 EASY TIPS

It’s spring-almost. Winter just doesn’t seem to want to give up the ghost. This is an excellent time of year to get your home ready to sell. The first and least costly thing to do is to clean it up. Yep, that includes the yard. A house that sparkles tells a prospective buyer that this owner has taken good care of this home and therefore it has better value than the home next door.

Secondly, you need to de-clutter the house. You are selling the house and moving. This is a good time to pack away the velvet Elvis painting and the plate collection from all fifty states and Puerto Rico. These items are homey to you but won’t be to people viewing your home.

Thirdly, fix items that need repair. That ripped screen, or that burned out light are, again, signals to a buyer on how the house is maintained and it’s value.

Fourth, you might consider replacing worn carpet or re-doing the hardwood floors. This should not break the bank, but will give your home that new house smell. Be carefull with upgrading too many features though, as you may not recover the expenditure in the sale. If your home is clean and in good repair you might want to stop there and be able to present your home at the best price that you can.

This last item is a little closer to home for most folks because a homeowner tends to take it personal- yes, that would be the family furniture. If your idea of fine furnishings are a bean bag sofa and folding chairs, you may need to have the house staged. Your moving, remember! Pack away your stuff and let a professional staging company decorate you home for the sale. It will be well worth it. And, with your house looking so good again, the very next buyer through the door would be crazy not to want to buy it- how good would that be?

ARCHITECT OR A DESIGNER/BUILDER

Early on in your home building adventure, you will cross this bridge. There are advantages to both of these approaches. An architect provides design services to the owner and usually acts as the owners agent in terms of dealing with the contractor and the suppliers. For this service, the architects usually charge 6% to 10% of the cost of the home as their fee. Because of this, architects will usually be found working on larger or more custom homes.

There is another way to go in the form of a design/build company. This is where the designer is also the builder. The obvious benefit here is that during the design process, the builder is continually thinking of the cost and effort necessary to construct what is being designed- usually taking a more pragmatic approach as well as a more cohesive team effort between the parties. Another benefit to the designer/builder is that usually the design fee is included or absorbed into the construction cost, thereby allowing the owners to have more available funds for the house itself.

Your building budget may make the decision for you depending on what you are expecting to build and how many quarters you have stuffed into the old piggy bank.

A Common Sense Approach To Building Green

There are many ways to measure how “green” a building is. On the one end of the spectrum, I have seen homes built with only sustainable materials and complex solar and geothermal units. The cost of which would take many years to reconcile and would probably be prohibitive to most of us. And, on the far end of the spectrum, I have seen homes promoted as “green” that do little more than use low VOC paint. Arguably blurring the line between “lite-green” and sustainable building.

Most homeowners would probably end up in the middle of this tug-o-war by balancing how green their building can be in terms of their budget. A common sense approach for sure.

Much can be done by choosing sustainable building products that are easy on the check book, whether they are new or re-purposed. The design of the home is also a key element by using the natural environment to your benefit. Proper siting, selection of windows, use of materials, and well planned heating and cooling systems are paramount and must work cohesively to produce an efficient home.Details here are very important, so pay particular attention to not only material selection, but also the installation of these products.

There are several agencies nationwide that certify the efficiency and sustainability of homes like the U.S. Green Building Council (USGBC.Org). These agencies are great places to get information and tips on how to construct a green home. Work closely with your home designer and your builder early on to include as many energy efficient and sustainable products as your budget will allow. Green buildings are not a fad, nor are they necessarily a new idea.

As a builder myself, It’s important to me that my company be diligent in the use of quality sustainable or re-purposed materials whenever we can. The construction process itself is also a place to practice green building. Wood scraps can be converted to fireplace fuel. Cardboard, plastics, and metals can all be recycled. Some scrap building materials can even be shredded into mulch. The spirit of green building is to lessen a home’s carbon footprint as well as the resources necessary to build the house. The home should also be well designed and as energy efficient as we can make it. The more we all can do towards this effort, the better mother earth will like it.

WHAT CAN A BUILDER DO FOR A REALTOR ?

Realtors know that builders build homes for a living. What they might not realize is that a professional builder can do much more. An experienced builder is a great wealth of information that a realtor can tap into.

Typically, realtors will call an inspection service to get a report done on the condition of a home. Inspectors should not attempt to do any of the repairs called out on the report as it would be a conflict of interest. A builder can do a pre inspection walk through and point out some recommendations to prepare the house for sale as well as put some pricing costs together after an inspection is done. There should be very little if any costs to have a builder do this.

A less thought of approach is a builders role in identifying problem areas of a hard to sell home and possibly some cost estimates to have the work done. Such items as a home with only one bath, a home that needs a kitchen or bath renovation, or possibly a home without a garage that needs a car port added on can make a home harder to sell. And, a builder can be just the right person to talk to. His experience here can be an indispensable tool for a realtor and homeowner.

Sometimes, the needed improvements are more of a curb appeal problem. Maybe just some painting, cleaning, or minor landscaping will do the trick. Again, a good builder can be an invaluable asset in the process to assemble a strategic plan to prepare a house for a sale. Whatever your situation is with the home you are trying to sell, a builder can help in so many ways. This could be the difference between an expired listing with a disappointed seller or a home that has a “sold” sign in the front yard.

How to Pick The Right Builder For You

 

Builders, like most people, come in all shapes and flavors. So, how do you connect with the one that is right for your project? First off, you want to go where the builders are. Check out websites, open houses, parade of homes, and word of mouth. Look for builders that do a good job in your price range and style. Once you have two or three good prospects, talk to them in person, get some references, and do a little homework. It will be very important for you and your builder to forge a trusting and personable relationship. Steer clear of anyone that you feel would not fit the bill, especially under a little bit of inevitable stress. Next, you should check out his qualifications and references. Ask a lot of questions, specifically about the type of home you are interested in building. Be sure that you already like the builder’s work. Most builders can produce a variety of house styles, but you will find that most builders typically have a “signature” look, and are best at that. Talk to past clients and ask if the home building experience was a good one for them, what they liked about working with the builder, and finally, what they thought of the quality of the finished home. You will also want to get references from the local building association, a main supplier like a lumberyard, the contractor’s board, and even the builders bank. A good builder will welcome your diligence because he will be proud of his work and the reputation he has earned. Once you have selected someone, focus there and start to plan your new home. Once a builder can see that you are a devoted and reasonable client, he will do back-flips for you. Lastly, beware of the charming soul that promises you the world for less than it should cost or you could find yourself the proud owner of an expensive lesson and a new horror story for your next party. Choosing the right builder for you can pay big dividends in a good experience and a home you can be proud of.

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