Thinking of Remodeling, What Projects Pay Off the Most

Remodeling Projects With the Highest Returns
For the second year in a row, REALTORS® report that exterior remodeling projects return the most money as a percentage of cost, as detailed in the 2008 Remodeling Cost vs. Value Report.

On a national level, wood deck additions and all types of siding replacements–upscale fiber cement, midrange vinyl, and upscale foam-backed vinyl–returned more than 80 percent of project costs upon resale. Of these, the most profitable project was upscale fiber cement siding, which recouped 86.7 percent of costs, followed by wood decks at 81.8 percent, midrange vinyl siding at 80.7 percent, and upscale foam-backed vinyl siding at 80.4 percent.

The 2008 Remodeling Cost vs. Value Report compares construction costs with resale values for 30 midrange and upscale remodeling projects comprising additions, remodels and replacements in 79 markets across the country, expanding from 60 markets last year.

Projects With Highest, Lowest Returns

In addition to wood decks and siding, window replacements and kitchen remodels also returned a relatively high percentage of remodeling costs on a national basis.

All types of window replacements–upscale and midrange wood and upscale and midscale vinyl–returned more than 76 percent of costs. A major midrange kitchen remodel returned 76 percent of project costs, while a minor midrange kitchen remodel returned 79.5 percent of costs.

On a national level, bathroom remodels, while still a relatively good investment, do not return as high a percentage as in previous years. A midrange bathroom remodel was estimated to return 74.4 percent on resale, comparable to a midrange attic-to-bedroom conversion, at 73.6 percent of costs recouped, and a midrange basement remodel, at 72.7 percent of costs recouped.

As in last year’s report, the least profitable remodeling projects in terms of resale value were home office remodels, sunroom additions, and back-up power generators, returning only 54.4 percent, 56.6 percent, and 57.1 percent, respectively, of project costs.

National Association of Realtors® President Charles McMillan says the resale value of any given remodeling project depends on a variety of factors.

“A home’s overall condition, availability and condition of surrounding properties, location, and regional economic climate are all factors that will influence the value of any remodeling project,” he says.

Results of the report are summarized in the December 2008 issue of REALTOR® Magazine. The issue also includes examples of actual remodeling projects that were less expensive than many of the report’s cost estimates. Read the story online.

Full project descriptions, as well as national, regional and local project data for the 79 cities covered by the report will be posted at www.costvsvalue.com by Dec. 5.

This is the 11^th consecutive year that the report, which is produced by Hanley Wood, LLC, was completed in cooperation with REALTOR® Magazine. For the report, Realtors® provided their insight into local markets and buyer home preferences.

Source: NAR

If you are considering buying or selling property in the US Virgin Islands, be sure to contact Sea Glass Properties for your real estate needs!  Jennie@seaglassproperties.com, or www.seaglassproperties.com.

Pennies for Peace

What is the Power of a Penny?

The penny, 1% of a dollar, is symbolic of the ‘1% of Gross Domestic Product’ goal set by the United Nations. The goal was for wealthy countries to give foreign aid to impoverished nations each year.

Pennies for Peace teaches children the rewards of sharing and working together to bring hope and educational opportunities to children in Pakistan and Afghanistan. A penny in the United States is virtually worthless, but in Pakistan and Afghanistan a penny buys a pencil and opens the door to literacy.

The mission of Central Asia Institute (CAI) focuses on community-based education, especially for girls. A 5th grade education for girls improves not only the basic indices of health for her and her family, she will also spread the value of education within her community. Literacy, for both boys and girls, provides better economic opportunities in the future and neutralizes the power of despot mullahs and other extremist leaders.

 

Please join us in Pennies for Peace!

To participate, please read on, then complete the registration form and return it to Pennies for Peace.

 

P.O. Box 7209 Bozeman, MT 59771
Phone: 406.585.7841 Fax: 406.585.5302  info@penniesforpeace.org

Pennies for Peace is a program of Central Asia Institute

My Home, My Money, My Future

HUD LAUNCHES COMPREHENSIVE WEBSITE TO INCREASE FINANCIAL LITERACY, PROMOTE HEALTHY HOMEOWNERSHIP My Money, My Home, My Future WASHINGTON – The U.S. Department of Housing and Urban Development today launched a new, comprehensive website to assist Americans with improving financial literacy, sustaining healthy homeownership and achieving financial security. �The My Money, My Home, My Future�website provides a range of interactive resources to inform users about the importance of financial literacy, including a Self-Assessment Tool, online games and informative classes. “It is imperative that Americans are better educated about their finances and understand what it takes to be a responsible homeowner,” said HUD Secretary Steve Preston. �”The resources on the website allow families to plan ahead to make smart choices about their finances and homebuying decisions.” The new site provides a wide-range of information about all avenues needed to be successful on the road to greater financial education, including: Building a Financial Foundation; Sustaining Healthy Homeownership; and Achieving Financial Security. One of the most unique features of this website is the Self-Assessment Tool. �The Self-Assessment Tool provides an extensive guide to help users learn more about personalized options for purchasing and/or refinancing their home. �Users will be prompted to answer a few questions. �Based on the answers given, the Self-Assessment Tool lists numerous links to visit on-line to learn more about the necessary and correct steps to own a home, refinance a home, enhance their financial skills, and much more. Some of the other links on My Money, My Home, My Future�give detailed information about: 9 Steps to Buying a Home Housing Counselors and Lenders Banking, Credit and Building Wealth Foreclosure Process and Alternatives Refinancing Loans and FHA Insured Loans This new site is also located on www.HUD.gov and www.FHA.gov�both in easy to find locations on the main web pages. ### HUD is the nation’s housing agency committed to sustainable homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development and enforces the nation’s fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov, www.hud.gov/foreclosure and espanol.hud.gov.
Looking to purcahse real estate in the US Virgin Islands, be sure to contact Sea Glass Properties for your buying and selling needs.  Jennie@seaglassproperties.com or http://www.seaglassproperties.com.

6 Creative Ways to Afford a Home

1. Investigate local, state, and national down payment assistance programs. These programs give qualified applicants loans or grants to cover all or part of your required down payment. National programs include the Nehemiah program, www.getdownpayment.com, and the American Dream Down Payment Fund from the Department of Housing and Urban Development, www.hud.gov.

2. Explore seller financing. In some cases, sellers may be willing to finance all or part of the purchase price of the home and let you repay them gradually, just as you would do with a mortgage.3. Consider a shared-appreciation or shared-equity arrangement. Under this arrangement, your family, friends, or even a third-party may buy a portion of the home and share in any appreciation when the home is sold. The owner/occupant usually pays the mortgage, property taxes, and maintenance costs, but all the investors’ names are usually on the mortgage. Companies are available that can help you find such an investor, if your family can’t participate.4. Ask your family for help. Perhaps a family member will loan you money for the down payment or act as a co-signer for the mortgage. Lenders often like to have a co-signer if you have little credit history.5. Lease with the option to buy. Renting the home for a year or more will give you the chance to save more toward your down payment. And in many cases, owners will apply some of the rental amount toward the purchase price. You usually have to pay a small, nonrefundable option fee to the owner.6. Consider a short-term second mortgage. If you can qualify for a short-term second mortgage, this would give you money to make a larger down payment. This may be possible if you’re in good financial standing, with a strong income and little other debt.

 

 

 

 

If you are looking to buy or sell property in the US Virgin Islands be sure to contact Jennie at Seaglass Properties located on the boardwalk of beautiful Yacht Haven Grande, St. Thomas.  jennie@seaglassproperties.com; http://www.seaglassproperties.com

10 Tips For Generating Buyer Interest

10 Tips for Generating Buyer Interest
Distraught sellers who need to generate more interest in house that has been languishing on the market for months should consider 10 steps from MSNBC financial guru Laura T. Coffey

• Can the clutter. Pack up knickknacks, pictures, piles of paper and furniture that makes the place look crowded.
• Let the light in. Take down any heavy drapes.
• Scrub-a-dub-dub. Shampoo soiled carpets, Scrub the front door. Repaint scuffed walls. Tidy up the lawn and trim the shrubs.
• Get moving on the “honey do” list. Fix everything that is in need of repair.
• Enhance the view. Erect a fence or plant shrubbery to improve or obscure the view of unattractive nearby properties or streets.
• Try weeknights. Holding an open house on Wednesday may attract a different crowd.
• Ask for criticism. Consult with buyers’ agents for their feedback.
• Send the owners away. Ask them to vacate when potential buyers come around so they can talk freely.
• Rent to own. Give a potential buyer a little credit .Becoming a landlord may keep you from having to shoulder two mortgages.
• Drop the asking price. And figure out the lowest amount you’re willing or able to accept.

Source: MSN Money, Laura T. Coffey (01/06/2009)