Home Remodeling Myths

The following article is a guest contribution from Trulia.

Not all home improvements are created equal.  Even in a seller’s market, it’s important that homeowners make the right investments that will yield higher returns.  Check out a list of the top 10 myths compiled from the expert real estate analysts Trulia has to offer.

1. Any remodeling project will add value to your home.

While many remodeling projects will add value to a home, some can be seen as a negative by future buyers.  For instance, combining two smaller bedrooms to create one larger bedroom may better fit one homeowner’s lifestyle today, but it may cause the home to lose value in the eyes of a future buyer who needs the two separate rooms.

2. Buying the highest-quality materials attracts more buyers.

Installing high-end materials may seem like a wise decision, but it can backfire.  For instance, using the most expensive tile in a bathroom may create an impressive appearance, but value-conscious buyers may opt for a more affordable home if the seller has over-improved compared to others in the neighborhood.

3. Adding square footage always adds value.

A better way to think about this statement is to insert the word useable into the sentence.  Finished attics and basements – even if considered liveable by local standards – may not be attractive to a buyer if they are not finished to the same standards as the rest of the home.

4. Colors and textures – safe and simple is better.

Keeping a home “vanilla” so buyers can choose their own style and décor might be a safe bet, but it ignores the fact that most buyers just don’t have the ability to visualize the home differently.  Without splashes of color and mixtures of texture, sellers can lose value to others that have taken the time to consult with an interior designer.

5. Inside improvements are better than outside improvements.

Not necessarily.  If a home’s exterior has been neglected or doesn’t offer a good curb appeal, a buyer might stop there – and then the seller’s efforts on on the inside may not net them any more dollars.  To get the biggest bang for their remodeling buck, sellers should start from the outside and work their way in.

6. Adding a bedroom is better than adding a bathroom.

It depends on the starting point.  If a seller only has one or two bedrooms to start with, adding a bedroom before adding a second bath is probably a wise choice since most buyers are more attracted to three-bedroom homes.  On the other hand, if the home already has three bedrooms and only one bath, the sellers’ next investment should probably be in a new bathroom.

7. Paint hides a multitude of sins.

Dry rot?  Fungus damage?  Mold problems?  Carpenter ants?  Termite issues?  Nothing a can of paint can’t fix, right?  Wrong!  Not only does this practice violate disclosure laws in most states, it can set sellers up for liability after the sale, as most buyers will want the sellers to foot the bill for these hidden issues.

8. Converting a garage to living space is a great trade-off.

Nope.  A garage conversion is almost always viewed negatively by future home buyers unless the sellers replace the lost garage with another parking and storage space of equal size.

9. Sellers can save money by doing improvements themselves.

For some homeowners, wiring a new lighting fixture or plumbing a new dishwasher is a no-brainer, but for others it may end up costing more later if they have to have the work redone by a professional.  Another consideration is local and state laws regarding remodeling work.  In many states if a buyer has purchased a home to remodel and re-sell, they must either hold a contractor’s license or hire a contractor to do the work for them.

10. Pools add value to your home.

This is only true in areas where pools are must-have amenities.  In most areas of the country, pools have more limited appeal – and the idea of maintaining a pool for ten months out of the year when it can’t be enjoyed won’t appeal to most buyers.

 

Knowing these top home-improvement myths will allow you to help your seller clients choose the right remodeling projects.  But don’t stop there.  To keep your pulse on the amenities that are coveted most in your market, talk to local remodeling professionals, contractors, and home-improvement specialists on a regular basis.

Water Efficient Home Remodeling

Everyone talks about water efficiency and rebates, but not many home owners property managers realize the huge savings and environmental benefits associated with upgrading to more water efficient fixtures.  Anyone can easily cash in on cutting water usage while helping their community become more environmentally friendly.

If you’re hesitant about the upfront cost of retrofitting, don’t fret!  There are plenty of government rebates that allow you to receive financial assistance to implement water-efficient systems.  Here are some of the best ideas available for even the biggest water hogs:

Toilets.  Replace your old toilets with a dual flush or low-flow toilets.  These dual flush toilets can reduce the typical 1.60 gallons per flush to a reduced 1.28 gpf.  If you replace your toilet, you are eligible for a $75-$100 rebate.  Just this simple fix will save you $1,000 in water and sewer charged over 10 years.

Laundry.  Apartment communities can save 330% more water, or 8,216 gallons of water, per year per unit by using a common-area laundry room instead of an in-unit washing machine.  Giving tenants the responsibility of using community laundry facilities make the tenants use the machines smarter and more efficiently.

Irrigation.  Rain water is free, why not utilize it as much as possible?  Install smart controllers that will turn off when its raining and only turn on when the grounds really need watering.  Plus, be sure to install drip sprinkler heads to reduce the overall cost of irrigation.

Showers and Faucets.  According to a recent study, approximately 73% of water used in a typical shower is hot water.  Low flow shower heads and faucet aerators can reduce water consumption.  Reducing water consumption not only reduces the amount of water used, which saves overall water usage, but it also reduces hot water usage.  The hot water usage is especially important as this is the most costly water.  Installing high-efficiency shower heads will save about 7,800 gallons of water per year in an average household!  That is an absolutely amazing number.

Kitchens. Energy Star dishwasher models save both water and energy. There are cash incentives up to $3,000 for replacing inefficient kitchen equipment with water-efficient equipment.

Be sure to give Elite Home Remodeling a call today to find out how we can help you with your new renovations and remodeling projects as well as how we can help you save the environment while saving money!

 

The Most Important Home Remodeling Factors

We all know the economy hasn’t been doing well the past few years.  Most notably, the housing and construction industries have suffered tremendous setbacks.  However, after several lean years, the home remodeling industry is starting pick up not only in certain areas around the country but also nationwide as a whole.  This is in part thanks to a slight rise in existing home sales and existing home sale prices and continued low interest rates.

According to the National Association of Home Builders (NAHB) residential remodeling expenditures for owner-occupied improvements are growing nationally.  Spending for 2011 topped $107.4 billion, up 3.5% from 2010.  NAHB also tracks an index of remodeling contractors’ confidence and this index hit its highest level in five years in the last quarter of 2011.

Although overall spending has steadily increased, homeowners are spending more cautiously than they were before the economy crashed in 2008.  This is causing homeowners to focus more on projects that most need renovating to keep up with modern trends and to keep up the overall value of the homes.  Projects like kitchens and bathrooms are particular good investments in today’s remodeling market.

According to a Boston Globe report “between 2003 and 2008, there was a lot of upper-end activity.  People were doing expensive kitchen projects.  What we hear now is that they’re not gutting everything, but picking and choosing aspects to update.”

This particular trend is especially true for homeowners in the Northern Virginia, Washington, D.C. and Maryland markets.  Homeowners want to make sure that they are getting the absolute best bang for their buck and are much more specific and demanding of where their dollars are being spent.  This is a product of homeowners focusing most on what they need versus what they want.

Homeowners are also doing much more homework when it comes to selecting the type of fixtures and appliances they need to add to their remodeling projects.  Homeowners aren’t looking so much at what they want to install but what is best for the overall value of their home and what is mostly likely to sell.  Most homeowners are still a little timid about having their house stand out too much as the market is still tilted towards home buyers.

Fortunately, as the market and home owners evolve, so too does Elite Home Remodeling.  We make sure to stay up to date with all of the latest trends and developments in the residential remodeling market and we make sure to give our award-winning service to every home owner we work with.  Be sure to visit our website to see how Elite Home Remodeling can help you today!

8 Ideas for a Unique Basement

You know that dark and spooky area under your home that you never like to go to?  For most home owners, the basement is relegated to a lifetime of emptiness and clutter.  Well now is the best time to make good use of your basement!  Consider some of these great options for turning your unused space into a space that is perfect just for you.

1. Home Office.  More and more people are working from home these days, whether they set up their small businesses or just need a place to do the bills.  Unfortunately, the dining room table just isn’t the right place to conduct business.  Consider fitting out your basement with an office that uses built-in shelves and has plenty of room for a true office desk.
2. Guest Quarters.  Do you like having visitors over every weekend but always have to kick them out at the end of the evening?  Make your home even more accommodating by adding an additional bedroom and bathroom in your basement to make sure your guests feel nice and welcomed.
3. Play Area.  If your main levels are dedicated for the adults of the home, make sure the basement is an excellent place for all the little kiddies to hang out.  Offer a place for your kids to play with their friends while staying out of your hair.  Add lots of little niches, crawling spaces, climbing walls and lots of colors!  Don’t forget to use eggshell paint, its easiest to clean.
4. Hobby Room.  Maybe you are the little kid in the house with all of your model cars and trains scattered all over the living room.  Or maybe the laundry room has been taken over by all of your fabric and sewing materials.  Makeover your basement to add a room dedicated to your hobbies with plenty of organization strategies to keep all of the hobbies in order.
5. Wine Cellar.  Now here’s a great idea for the vino in all of us.  Line the entire basement with open wine racks, add a small refrigerator for incidentals, and don’t forget a cabinet for the wine glasses.  For those with a little more passion for the grapes, add an enclosed wine room for some extra flare.  Then, add a sitting area with comfortable lounge sofas that invite guests to relax.
6. Relaxation Station.  Why bother to go to the spa when you have one in your very own home?  Turn your basement into a steam room or sauna.  Include all the elements of peaceful meditation and create a beautiful retreat that is just a few steps away (literally!)
7. Theatre.  The ultimate addition to any man cave has to be a large projection screen with a full 7.1 surround sound system.  Don’t forget to add plenty of sound-proofing insulation in the walls to leave the rest of the house in peace and quiet when you decide to turn the volume all the way up.
8. Arcade.  For kids of all ages, make your basement the true neighborhood hang out spot by including a pool table, pinball machines, ping pong tables, air hockey tables and other fun games to excite the competitive nature in all of us.

With some basements reaching upwards of 2,000 square feet, don’t let that ample space go to waste!  Make sure to give Elite Home Remodeling a call today to find out how we can remodel and finish the basement of your dreams.

Elite Home Remodeling Has Moved

Elite Home Remodeling has relocated our office spaces to the wonderful city of Chantilly.  As we continue to expand and grow our business, so to do we need to expand our office space.  But don’t fret, all of our existing and new clients throughout the Northern Virginia & Metro DC area will still be able to receive the same great award-winning service.

Our new office address is

14159 Mariah Court Suite 900

Chantilly, VA 20151

To celebrate our recent move, Elite Home Remodeling is offering a 5% discount to all home owners and local businesses looking to remodel or renovate their existing spaces in the month of June!  That’s right, we’re having a moving sale!  What a great way to usher in a new chapter in the history of Elite Remodeling than by celebrating with a sale, just in time for the summer holidays.  To get this discount, just make sure to mention you read this blog post and you’ll be good to go.

 

 

Elite Named Best Home Builder by Virginia Living Magazine

Elite Home Remodeling has recently been named Best Home Builder in Northern Virginia by Virginia Living magazine!  This prestigious annual award is presented to the area’s top builder as voted on by the readers and editors of Virginia Living magazine.

At Elite Home Remodeling, we couldn’t be more proud to receive this award.  We make sure we bring our award-winning service and quality to every job that we do and our home owners know this and they like to tell other people about their experiences with Elite.  Our dedicated staff and crew members work hard year round on every project, big and small, to make sure that every home owner receives our first place service.

Every year, Virginia Living magazine conducts a poll to determine the best of the best in every region in Virginia.  Everything from the best winery in the Shenandoah Valley to the best cupcakes in Central Virginia.  This year, nearly 10,000 voters turned out to cast their ballots for their favorites in each category and Elite Home Remodeling was named this year’s best Home Builder in Northern Virginia.

Thanks again to everyone who voted for Elite Remodeling, we could not have received this award without support from clients like you!  Please visit our website for more information about this award and Elite Remodeling.

Countertops, Countertops, Countertops

Here’s a quick secret for your next remodeling project: a good countertop can make all the difference between a good looking space and a perfect looking space.  Making sure you have the right people ready to go to get your perfect countertop is crucial.  Check out these 4 tips before you select the right countertop for your project.

1. Sinks Away!  Whether you are installing a countertop in your kitchen, bathroom or laundry room, you are most likely going to need a sink and a faucet.  The key is to always have your sink onsite before the countertop templating process begins.  With the sink will be your sink template.  This sink template is critical because it gives a diagram on exactly where the sink is to be installed.  This template not only has an effect on your countertops, but also your cabinetry, plumbing and even framing.

Before countertop template day arrives, you should already know exactly where you want your sink to go.  That way, it’ll make the templating process much easier.  It was also make adjustments to the cabinetry and plumber much less invasive.

Image courtesy of Houzz

If you are installing an apron-front sink, there can be several different ways to place the bowl.  Think about the spot where the front edge of the counter and the sink meet.  Some sinks have a notch into which the counter fits.  The way this detail will align with your counter overhang should be decided in advance of template day.

2. Wall Faucets.  To get this piece right, you’ll need to know a few extra details before the project even begins.  For starters, the plumbing behind your wall will need to be much different than if you were having a traditional countertop-mounted faucet.  You’ll need to know where the finished wall surface will be once the backsplash is installed.  Thay way, when it comes time to install the faucet and the sink, everything will be centered so when the water comes out of the faucet it will fall squarely on the sink drain.  Before the plumbers start roughing in pipes, every decision needs to be made or you risk ending up with elements that don’t work well together.

3. Hang 10, Dude!  If any section of your countertop will overhang the cabinets, consider how you will support this area.  Overhangs of 6 to 12 inches are possible without bracing, depending on the material.  However, anything more than a foot of overhang should have some sort of additional support.  A few ideas for support include adding an attractive bracket support against a wall.  This can not only be a structural piece but also has the potential for a nice architectural feature.  Another option would be to add a support leg uner the overhang.  This piece can almost look like a stair baluster with many intricate and delicate patterns.

Image courtesy of Houzz

4. Counter height.  Different people and different tasks require different counter heights.  If custom cabinets are not in your budget, one way to vary the finished height of the counter is to use materials of different thicknesses set on standard cabinets.  A standard kitchen counter is 36 inches off the floor, but if you have someone tall in your family, 39 inches may be a more comfortable prep height.  Different countertop heights are especially useful in your master bathroom if you have two different vanity areas.  Making one vanity taller than the other is a perfect comprise for the busy couple on the go.

After the countertops are installed, your project is almost done.  To finally wrap things up, you’ll need to think about backsplash and paint.  Your counter sets the lower line for your tile, so even though you could install the tile before templating, you’ll get a better-looking backsplash if you wait.  Muscling a heavy counter into place is a difficult job, and some walls inevitably will get bumped or dinged.  Save your finish painting until after the install for this reason.

To find out how Elite Home Remodeling can work with you on your next home remodeling project, visit our website and give us to call to find out how we can serve you today!

Investing in Real Estate

The federal Real Estate Owned Rental Initiative took its first step on February 1st of this year when the Federal Housing Finance Agency announced that investors could begin pre-qualifying for the upcoming bulk sales of real estate–owned (REO) properties belonging to Fannie Mae.

Then, a few weeks later, Freddie Mac declared that it is in the early stages of developing its first ever multifamily loan product, which could help clear single-family inventory by increasing the number of investors who qualify to purchase the bulk REO properties held by Freddie Mac and Fannie Mae.

Although this information is great news for investors looking to buy some distressed property, Freddie and Fannie have remained tight-lipped about the potential financing for transactions under the REO initiative, leaving room for speculation about the types of deals available for investors.

“Investors will be able to offer higher up-front prices for the homes if attractive financing is available, which in turn will act as a stabilizer for the market as a whole,” said Thomas Shapiro, president of GTIS Partners, in an interview with Businessweek.

A big consideration for determining where and what type of properties to buy is geographic concentration.  Areas with growing economies and attractive percentage yields are great for buying single-family property while other areas, such as Phoenix, Atlanta, Las Vegas, Chicago, and southern Florida are better suited for multi-family investment purchases.

Concerns do exist that investing in single-family property pools that are too geographically spread out will create management problems.  Mismanaging these rentals could make an even bigger mess out of our already struggling housing sector.

Plus, a Federal Reserve white paper released on January 4th stipulates that “not all of these REO properties are good candidates for rental properties, even in geographic markets with sufficient scale.  Some properties are badly damaged, in low-demand locations, or otherwise low value.”

Although it hasn’t been officially announced, it’s rumored that Freddie Mac’s program won’t be as restrictive as Fannie’s bulk-only sale. It’s believed Freddie will allow investors to use a variety of methods to purchase specific REO single-family homes within an asset pool.  And the consensus seems to be that injecting some health back into the single-family sector will only strengthen the metro housing market in general.

The bottom line, investing in real estate right now is a great investment.  Now it is just a matter of what type of property you are looking to invest in and where you are looking to invest.

Multi-Family Executive contributed to this story.