Posts Tagged ‘home improvement’

8 Mistakes to Avoid if You’re Thinking of Building/Remodeling a Home

Have you ever walked into a home (either a brand new one or one that’s been around for 25 years or more) and said to yourself, “I wonder what the builder was thinking when they built this house? Maybe you are thinking of finally building your dream home. Or considering downsizing the one you currently own. Or need to remodel the one you currently live in.

Here are 8 things to keep in mind:

1. Have a vision of what you want your home to look like. The floor plan is just the first step in the process. There a hundreds of thousands of decisions you will need to make. Take just the bathroom – what color tile? What pattern? Will the cabinets match? Faucets? Counter tops? The floor? And that’s just one bathroom!

2. Find the right people – By people, I mean an architect, a builder, sub-contractors, suppliers. Are they licensed and bonded? More importantly, can you get along with them? Do they offer suggestions? Are they difficult to deal with?

3. Visit the construction site often – Be sure that the home/remodeling is being built to your expectations. Ask questions. Make suggestions. Visiting your home every other day is recommended.

4. Building too big of a home – Don’t think about what size you need right now—but what you will need 7 to 10 years from now. A well-designed 3,000 sq. ft. home may work just as well as an ill-designed 5,000 sq. ft. home.

5. Work that you can do to reduce costs – Ask the builder what sweat equity he/she will allow you to do to help reduce costs. Painting the walls or staining the trim. Maybe you have a friend who is a licensed electrician who would charge you less.

6. Think about the upgrades – When a builder provides you with a price to build your home/remodeling, it’s usually based on “medium grade” materials. Take kitchen cabinets for example. What type, color and grade are included? Or should you pay $8,000 extra for solid maple cabinets instead? It depends on your budget and if you can find something that you like in the medium grade so you can use the money for something else. Other than you loving maple wood, there is very little resale value in upgraded cabinets when it comes time to sell. Consider only adding your MUST HAVE upgrades.

7. Think about selling your home in the future – Even if you never plan to sell your home, your descendants may have to do so. Build your home so it’s not a nightmare to sell.

8. Think about monthly mortgage payments – When you have been pre-approved for your mortgage amount there are a few things to consider.
a. What will the interest rate be when the home is completed?
b. How much will extra upgrades add to the monthly payment?
c. How much money will you need after the closing (window coverings, furniture, landscaping)?

8 Things Real Estate Agents can do to help with the Appraisal Process

I recently read an article written by an appraiser who said, “Realtors have more control working with an appraiser—more than they think they do. Spending time providing information UP FRONT will reduce the time spent on the back end trying to deal with an appraisal that comes under the sales contract price.”

I’m sharing some of the appraiser’s tips with you.

1. Provide Photos – In addition to the photos of the home that may be on your website, email the photos to the appraiser to review ahead of time. Include additional photos that may not have been posted online. Include a description of EACH photo.

2. Provide a list of recent improvements – And if you can attach the receipts for the work completed or the cost of the improvement, it’s an extra bonus.

3. Provide an Information Packet – If the home is vacant, the appraiser may not even call you to set up an appointment. Leave a folder marked APPRAISER INFORMATION. And if they do call, tell them about the packet and where it’s located.

4. Provide Insider Information – If you have information about the neighborhood that they may not know about, provide that info to the appraiser. For example, maybe a new school has been approved by the city and will be built nearby within the next few years. If you know the reason the buyers have chosen that home, include that info too. Let them know if there were multiple offers on the property, too.

5. Call the appraiser back—immediately—Appraisers typically schedule their trips within certain areas to reduce travel time. When they call, it usually means they have already done some preliminary work and are ready to do the physical inspection.

6. Provide Comps – While appraisers do their own research, it helps to BRACKET comps and supply them with what you used to establish the price. Provide sales that have sold BOTH below and above the sales price. List why each is superior or inferior. Do not rely on “per square foot price.” If known, also include seller-paid concessions.

7. Double Check the Square Footage – Appraisers must also measure the living areas, and if it’s substantially different, it creates a “red flag” and the appraiser may be looking for other things that may be inaccurate.

8. Don’t ever say these sentences –
“You should have no problems appraising this home…”
• “We need a good appraisal on this one…”
• “Let me know if you think the appraisal will come in low so I can get you additional info.”

Preparing Your Home for a Property Appraisal

You’ve sold your home. Or, you are thinking of refinancing your current mortgage.

One of the things that the lender will require is a property appraisal. While the actual appraisal inspection may take only an hour or two, the appraiser must go back to the office, do the research and write a 10- to 12-page report.

Here are some tips to help the appraiser with additional information—and in most instances a faster turn-around time to complete the report.

• Compile a list of recent improvements. If possible include “before and after” pictures, copies of paid receipts for work completed. If major updates were made, provide a detailed copy of the bid from the contractor.

• Make sure all areas are accessible, including the attic, basement and crawl spaces. This includes the garage.

• If the home is part of a homeowner’s association, include a copy of the fees paid, and the name and phone number of the association president or executive director.

• Straighten up each room. Appraisers are required to photograph each room, and while it may not make a difference to them if the room is messy, there may be an underwriter who is less objective.

• If there are any unfinished projects, make sure they are completed before the inspection.

• If there are any easements, encroachments or unusual deed restrictions, you may want to provide a copy of the list.

A little help from you goes a long way to make sure that the appraisal report is complete and accurate.