Home Improvement Tips & Advice

September 15, 2008

Home buying and home selling become more complicated in fire prone areas.

August 11, 2008

How can you make your home attractive to home buyers in a difficult market?

August 11, 2008

Looking to buy or sell a home in need of repair? A little-known home loan may help you buy or sell that fixer upper and pay for the necessary repairs.

We give you some ideas to help boost your value of your house

For those homeowners whose property is under improved for their neighborhood, more substantial work may be warranted to bring the property up to the level of the surrounding homes. Although many homeowners are reluctant to tackle such projects, upgrading can be the key to realizing your home’s potential.

Be careful not to push your home above the value of the neighborhood. It is rare that a house sells for more than 15% above the neighborhood median, regardless of the extent of the improvements. The following is a listing of common improvements and their typical return on investment for a 25 year-old three bedroom 1.5 bath cape.

The estimates are based on Practical Homeowner’s How to Increase Your Home’s Value. They are intended to be general guidelines. Each situation is unique.

Beyond the return financially, you should consider whether it is worth the aggravation and/or whether you intend to stay long enough to enjoy the improvements yourself. Please feel free to call me if you would like my input.

Interior Surfaces

• New paint, carpeting and vinyl flooring for the kitchen and bath.
• Professional job: 90% Return
• Do-it-yourself: 150% Return

Bathroom Renovation

• New fixtures and flooring for 7×8 foot bathroom
• Professional job: 75% Return
• Do-it-yourself: 200% Return

Kitchen Renovation

• New cabinets, appliances, countertops and flooring
• Professional job: 70% Return
• Do-it-yourself: 150% Return

Fireplace Addition

• Pre-fab unit with hearth, mantel and chimney top
• Professional job: 70% Return
• Do-it-yourself: Not recommended

Deck Addition

• Footings, pressure treated lumber, stairs and handrails for a 224 square foot deck
• Professional job: 65% Return
• Do-it-yourself: 200% Return

Exterior Repainting

• Scraping loose paint and painting trim and siding with one coat of paint
• Professional job: 60% Return
• Do-it-yourself: 1000% Return Attic Conversion
• Two rooms, two closets, two windows, four doors, wiring, insulation, drywall and flooring for 16×36 foot attic
• Professional job: 50% Return
• Do-it-yourself: 90% Return

Wood Siding

• 1500 square feet of six-inch cedar siding
• Professional job: 30% Return
• Do-it-yourself: 90% Return

Basement Conversion

• Suspended ceiling and paneling
• Professional job: 30% Return
• Do-it-yourself: 70% Return

In-Ground Pool

• 16 x32 foot plastic-lined pool with sidewalk and grading
• Professional job: 35% Return
• Do-it-yourself: Not recommended

Major home improvements should be carefully considered in relationship to the surrounding neighborhood. Unless your home is the exception to the rule, moderation is the key to gaining a return on your home improvement dollars.

Today’s Featured Home Improvement Article

A Home Loan to Help You Sell or Buy Your Fixer-Upper

By Sheryl Landrum

Home Worth Columnist

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Almost 60% of homes purchased today are bank-owned. While the house price may seem appealing, usually the repairs and TLC needed to bring the house into decent shape or market value can be prohibitive for many would-be home buyers or home sellers. Now, however, a little-known home loan may just help home buying and home selling become that much easier.

Streamline K Home Loans

The Streamline K home loan is a faster version of the FHA’s home-rehabilitation loan product, 203(k). As with all FHA loans, the government insures the lenders who make them against loss should a home loan go into default. What this loan offers home buyers is the ability to add up to $35,000 to the home loan for necessary repairs or renovations to your fixer-upper. What it means to home sellers is the ability to refinance and use the $35,000 to make the necessary repairs and improvements to make your home more attractive to would-be buyers. So, what do you need to know?

Streamline K Home Loan Basics

Whether you are buying or selling a home and using a Streamline K home loan, here are the basics:

• As in all FHA home loans, mortgage limits max out at $729,750 until the end of 2008.
• FHA underwriting guidelines are followed.
• The program is designed for repairs that are minor and non-structural. However, you are allowed to repair the roof, plumbing, electrical, buy new appliances etc.
• You are not allowed to do room additions and site improvements such as landscaping your yard.
• Home repairs need to be completed in less than six months and no more than two contractors can be used.
• If the work cost exceeds $l5,000, a final inspection is required by the lender.
• Even if you are a contractor, you cannot be paid for work done to your own home.

This is a great program for those home sellers who are trying to increase their home’s value in a tight market. It is also great for those homeowners who would like to buy a house but have no funds for home repairs after they move in. With the ability to access Streamline K funds, the program may even stimulate a sagging housing market. To find out more about Streamline K, go to www.fha.gov and search for Streamline K for exact details on how you and your house can qualify for these home improvement funds. Then find a reputable lender who’s up to speed on these special home loans.

The San Diego Union Tribune, Sunday, July 19, 2008, Uncle Sam’s Little-Known Loans Worth a Second Look, by Lew Sichelman

About the Author

Sheryl Landrum is a Senior Loan Officer with First Capital Mortgage of San Diego at the Prudential Realty Office in Bonsall, California.