Remodeling Returns

Resale-minded homeowners can increase their property values by investing in rehab projects and upgrades. They do however, need to be cautious about over-improving and thus "out-pricing" other homes in the market.

Sid Davis, author of Home Makeovers That Sell, writes that your neighborhood determines what your home is worth. He advises to work within those parameters and don't try to make your house into something it isn't.

What is the percentage rate of return on a kitchen, bathroom, or basement remodel? Let's take a quick look.

Minor kitchen remodels net 98.5 percent in average returns while total high-end kitchen remodels will actually net less in return. An average bathroom fix-up has an investment return of an impressive 102 percent! Downstairs, the average return on a basement remodel is 90 percent since the project can double a home's living space.

Finally, media rooms, which are increasing in popularity are an attractive upgrade for some folks but, experts advise against creating high-end media rooms (for return on investment) unless of course, this is popular in your real estate market.

The Best Time To Buy A Home

As with most things in life, timing is everything. This certainly applies to buying a new home as well.

In her book, Starting Out, The Complete Home Buyers Guide, author, Dian Hymer writes that the ideal home time to purchase a home is when home prices are stable or increasing, and when interest rates are low. Conversely, waiting for the best time to buy can result in a missed opportunity.

It's impossible to know in advance how the real estate market will behave in the future. Ms. Hymer offers these guidelines to help you make wise decision about the best time to buy:

If there are more sellers than buyers it's called a buyer's market. Buying in this market has some advantages. Buyers have more inventory to choose from and prices are usually lower in this type of market. Lower prices mean lower closing costs too. A disadvantage when the market is slow is that the value of your home may actually drop before it rises again. Plan to live in this home for five years or more.

Buying a home in a seller's market may cost more, but there is a good chance that the property will be worth even more within the next few months.

As a real estate professional, I will be happy to arm you with the best information you'll need to time your home purchase correctly. Contact me at Heldt Realty and we can discuss your unique situation.

Coping with a Lender's Rejection

This is a story about a young married couple; Dave and Ann. Like many young couples, they were excited about buying their first home, but their excitement soon turned to disappointment when their request for a loan was rejected by their lender.

The first thing they did was inquire why this happened, what the lender didn't like, and what they could do to remedy the situation. Dian Hymer, in her book, "Starting Out, The Complete Buyer's Guide", writes that often a simple letter of explanation to the lender is all it takes to get a problem loan approved. For example, if you were unable to work for several weeks due to an accident, a letter explaining why your credit report showed late payments would probably result in a loan approval.

Remember that adverse credit information is not supposed to be reported or included on your credit report after seven years. An exception to the seven-year rule is bankruptcy information, which can be reported for ten years. Lenders will want to see court-approved papers that confirm your past creditors are satisfied with your debt-restructuring. Lenders will also want to see that you have re-established credit and that you are making your payments on time.

As a real estate pro, I will be happy to work with your lender to ensure your loan will be approved on time for closing. Call me anytime.