Best / Worst Rehab Choices for the Money

Renovated kitchen

Many of our students ask, “what should I do to this property to get the most return for my investment?”

Great question! And, before you begin any rehab on a property you plan to sell, investigate the return you can expect versus the amount you’ll spend to do the work.

For example, if you plan to spend $40,000 adding a sunroom, would you still do it if it would only raise your property value $15,000?

1. Upkeep. Probably the best advice for the least money is – keep up the property while you live in it. So many sellers go all out fixing broken cabinet doors, cracked windows, exterior paint, replacing blinds, etc. when they plan to move. Really? Why let your house deteriorate in the first place? Keeping your home in top condition allows you to love it while you’re there, keeps upkeep costs low and spread out and, when you decide to sell, it’s practically ready “as is.”

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Getting Ready to Paint? 10 Color Tips..

living room

This was the living room in my last house. As you can see, I love color! The best thing about paint is it’s a cheap and easy way to change your life. Bored? Paint! Change your mind, paint again! Afraid? Start in a closet or laundry room. Color will completely change your mood.

Here are some easy, interesting tips for choosing color:

  1. Afraid of color but bored with white? Pick a neutral that you love but go one shade darker to get away from the blahs.
  2. Use a contrasting color on an accent wall such as behind the television or on the window wall.
  3. Paint the ceiling a color. A couple of shades lighter or darker than the walls is safe and creates an interesting contrast. I suggest a couple shades lighter in a small space so the ceiling feels higher. In our sunroom, the walls are green (obvious choice!) and the ceiling is the same color. I wanted it to feel like you’re outside in the trees!

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How To Reduce Your Energy Bills / Energy Conservation Begins at Home

Guest Post

Thanks to Mark D. Tyrol for this post.

Imagine leaving a window open all winter long — the heat loss, cold drafts and wasted energy! If your home has a folding attic stair, a whole house fan or AC Return, a fireplace or a clothes dryer, that may be just what is occurring in your home every day.

These often overlooked sources of heat loss and air leakage can cause heat to pour out and the cold outside air to rush in — costing you higher heating bills.

Air leaks are the largest source of heating and cooling loss in the home. Air leaks occur through the small cracks around doors, windows, pipes, etc. Most homeowners are well aware of the benefits caulk and weatherstripping provide to minimize heat loss and cold drafts.

But what can you do about the four largest “holes” in your home — the folding attic stair, the whole house fan or AC return, the fireplace, and the clothes dryer? Here are some tips and techniques that can easily, quickly and inexpensively seal and insulate these holes:

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How to Reduce Everyday Bills

house leaks

Want to save some money pretty easily? Check out this list:

  1. Lower your mortgage rate. Yup. Especially if you have a loan backed by Fannie Mae or Freddie Mac – this is the perfect time. The Home Affordable Refinance Program has been extended until June 30, 2012. Loans backed by Fannie Mae or Freddie Mac are being refinanced at 4%-5% and (best part) with NO closing costs.
  2. Lower your energy bill. Contact your utility company. Find out if they offer free energy audits by inspecting your home for energy effectiveness and recommending inexpensive ways to cut energy costs. Ours does. I had to wait several months because they stay so backed up, but Duke Energy gave me a free energy audit and gifts!
  3. Cut down on drafts. Speaking of lowering your energy bill, this one trick can lower your bill 3% to 18%! Here are some way to stop/reduce drafts:

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How to Accelerate Your Mortgage Payoff – follow-up

racing up hill

I received a number of responses to my recent post How to Accelerate Your Mortgage Payoff.

Great! I hope, if you’re not already doing it, you will try this technique and see the amazing results for yourself.

I can assure you this works and is really very easy to do. We did it recently for our son and his wife when they bought their new home. They made the first payment and, for their housewarming gift, we made the next 11. Since we were paying principle only and no interest, it was a very wonderful and not-that-expensive gift to give.

By doing that, the 2nd payment they made was the first payment of year 2 on their original amortization schedule. An entire year of interest was saved, and the most expensive year for interest, the first.

As I mentioned in the original article, your online account immediately updates the amortization schedule allowing you to verify that the payments were applied correctly.

Before sending in those extra payments, we contacted the bank and they assured us any extra payments come off the next scheduled principal payment.  Just to be sure, we always include a letter of explanation, as we have known instances when the extra was applied to final payments (which have no interest on them and, therefore, no savings to you).

Hope you try this. Let me know how it works for you!

How to Accelerate Your Mortgage Payoff

racing up hill

How do you accelerate your mortgage payoff?

To begin with, you can send in extra mortgage payments at any time. Extra payments will, hopefully, be applied to the principal only, saving you a fortune in interest payments.

Here are some methods to make those extra payments work to your advantage and to make sure you get the most credit for any additional monies you send in.

1. Always make your regularly scheduled payment and be certain to make it on time.

2. Send any additional monies as a payment separate from the regular monthly payment.

3. Along with the extra payment, include a letter spelling out exactly what you want done with that additional money.

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10 Tips for a Better Yard

landscape

If you’re selling your home, first impressions are everything.  Make someone fall in love with your home the minute they pull up to the front.

If you’re not selling, create a beautiful yard as your private retreat and a comfortable spot to come home to.

Here are a few very easy suggestions:

1. First, if you have any problem growth areas in your yard, you can send a soil sample to your county or state’s extension service, just google for your state resource, to have the pH levels tested.  This process can take up to 6 weeks so, if you don’t want to wait, check around.  I found a local garden nursery that will test my soil for free and I have my results in less than 10 minutes!

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How to Stage Your Home

Guest Post

Many thanks to Michael Samsel, an entrepreneur and writer on the subjects of home design and home  practices as well as co-founder of StylishHome.com, for this article.

How to Stage Your Home… a Frank Discussion

Admit it… you’ve received the bid from the home staging company and were somewhat shocked by the cost. There’s this gnawing sense that this money could be better spent on furnishings you would own for the rest of time once your property is sold.

Living Room

With that in mind, let me say that staging your home, to whatever degree is necessary, is worthwhile and, assuming you’ve priced your home fairly, will help you get a faster and, perhaps, more profitable sale. It’s commonly believed that a home is purchased on first impressions and staging greatly boosts your chances of success with this. And, a general statement – everything being equal, your staging budget should bear some relation to your asking price. A $200K home cannot afford the fineries of a $1 million home, etc…

So, what does home staging entail?

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Landscaping – Reap Huge Rewards!

Costa Rica

There’s money in your yard!

Did you know that you can actually increase the value of your home by improving the landscaping?  A Money Magazine survey found that good landscaping can add 7%-14% to the value of your home. That’s Huge!

A survey by Husqvarna found, “Checking with real estate agents, more than 70% believed that a neglected garden lowers property prices by somewhere between 5-15%. Another 17% believed the effect could be even higher.”  They also found the top 5 garden elements globally to be:  1. Well-maintained lawn 2. Inviting social area 3. Stone paths and walkways 4. Decorative trees 5. Decorative bushes.

How’s your curb appeal? Yes, its VERY important. Curb appeal gets prospective buyers into the house! Many buyers decide NOT to buy just looking at the exterior of your home. If the exterior looks bad, understandably they assume that the house itself was not well maintained.

I wrote in an earlier post: the American Society of Landscape Architects found that homeowners can receive between 100% and 200% of the money they invest in professional landscaping services when they sell their homes. Michigan State University research found that proper landscaping can increase a home’s sale value by about 12%. And a study by the U.S. Forest Service found that trees alone add 3% to 7% to property values.

So, money spent on well done landscaping is worth it for (1) the value of your home (2) curb appeal which helps with selling (3) the aesthetic enjoyment for yourself, your family and your neighbors, and (4) trees and plants are healthy for the environment.

Now that Winter has passed and our wonderful Spring is here, it’s time to get outside and spruce up that curb appeal.  Rake up dead leaves and debris, dig up plants that didn’t survive the winter and cut back dead branches from trees and bushes, kill weeds before they take over, trim and shape hedges.  Enjoy a beautiful yard and get paid for it when you sell!

You can’t lose with good landscaping. Invest, enjoy and reap huge rewards!

16 Fall Household Tips

Have you noticed that new chill in the air? What does it mean for your house and lawn?

Time to prepare for winter! Here are some things you should be doing now:

  1. Aerate, fertilize and seed your lawn for beautiful spring grass.
  2. Bring cold sensitive plants inside.
  3. Have your furnace serviced.
  4. Change furnace filters to increase efficiency & save on your heating costs.
  5. Drain your hotwater heater and clean out sediment now to keep water hot all winter!
  6. Plant bulbs to produce spring blooms.

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