Wednesday, February 23, 2011

Home Sellers: Five Tips To Make Your Bathroom Stand Out

Every homebuyer has a vision of their perfect house and the rooms that are most important to them. Because of their relatively small size in comparison to the rest of a home, bathrooms are often overlooked in the staging process, but for many, it could be the most important room in a buying decision.



A bathroom is more than just a place for grooming; it’s a sanctuary. It’s a place one can relax in a hot bath and escape the stresses of daily life for a few moments at a time.



Updating a tired-looking bathroom is one of the best things you can do to increase a home’s resale value and the fixes are not too costly or labor intensive.



Easy fixes include adding new, luxurious-looking towels, replacing the shower curtain and adding candles around a bathtub. However, with a little more money and effort, your bathroom can become a talking point of the house.



Here is a look at five great ways to upgrade a bathroom.

1. Beautify: By adding decorative glass, stone tile or accents to the bathroom, it will stand out among the other houses in the neighborhood that are for sale. Extra-wide wall tiles are popular these days and wood cabinets can be beautifully embellished with intricately carved wooden inlays.



2. Lighting: Add more lighting options around the room, especially around the vanity to reduce shadows and glaring. This is something that isn’t too expensive and can really highlight the positive features of a bathroom. Mood lighting around the tub area is also increasing in popularity.



3. Bath/Shower: It’s not too often you hear someone complaining about a bathtub being too large, and that’s because there’s nothing better than coming home from a hard day’s work and relaxing in a big soothing tub. By putting in a new tub and creating more of a spa-like atmosphere, you will have buyers imagining themselves washing their cares away. Adding a massage element to the showerhead or one that replicates rain showers is also something that will appeal to buyers.



4. Update Fixtures: Not as costly as some of the other tips, changing out the fixtures in a bathroom can add a great deal. From cabinet handles to faucets, the addition of brushed nickel or other metals that are polished and elegant are always a huge hit. And if space permits, add a second sink.



5. Think Green: The bathroom is a prime place to start putting those environmentally friendly devices to work. Installing fixtures that save water, such as a low-flow showerhead, a low-flow faucet aerator, and a dual-flush toilet, can save thousands of gallons of water each year. Adding energy-efficient windows is another easy option, since the size of bathroom windows are relatively small. Another fix that is both decorative and energy efficient is the addition of natural stone flooring, which helps the bathroom stay cool during the summer, and warmer during the winter.



When buyers walk into a renovated bathroom that exudes quality and offers an intimate, contemporary feel, it’s one of the top things that people will remember about a home.







Chip Plumley can be reached at (610) 444-9090 or (610) 357-8635.
Prudential Fox & Roach is an independently owned and operated member of
Prudential Real Estate Affiliates, Inc., a Prudential Financial company.
Equal Housing Opportunity.


ChipPlumley.com




Wednesday, February 16, 2011

Don't Buy A Fixer-Upper Without Assessing The True Costs

Do you want to buy that fixer-upper in the neighborhood and renovate it yourself? You can save a lot of money or you could get into a financial nightmare!


The first thing you should do is figure out how you plan to get a loan and pay for the cost of repairs. If you can get a conventional loan with 20% down, pay closing costs and still have enough money left over, you're doing better than the majority of buyers right now!


Unfortunately most of the buyers today are looking for small down payments and help with renovation costs. Consider a renovation loan through the Federal Housing Administration's (FHA) 203(k) program, which is designed to help home owners who are purchasing or refinancing a home that needs rehabilitation. The program wraps the purchase/refinance costs and rehab costs into a single mortgage. To qualify for the loan, the total value of the property must be within the FHA mortgage limit for your area. There are 2 types of 203(k) loans, so sit down with your mortgage lender to decide which is best for you.


You need to figure out what type of repairs must be done and then how to make an offer.


Decide what you can do yourself

Do you really have the skills to do it? TV shows on HGTV & DIY make home improvement look easy, but in the real world a difficult remodeling job will take you much longer than you think and can lead to an unprofessional look that won't increase the value of the home.

Some small tasks like painting are relatively easy, but electrical work done by an amateur is dangerous. You also need to make sure you have the time in your schedule and be able to live in a construction zone for months while the work is being completed.


Price in the cost of repairs and remodeling before you make the offer

Before you make an offer, maybe during your second showing, have a contractor with you so that they can give you a written estimate on what you want done. Price it according to how the work is being performed. If you're doing the work, just show the price for supplies. If the contractor is doing the work, add in the labor costs.

No matter what the final cost for rehab is, add on at least an extra 10% for surprises.


Inspection Contingency

This is huge! Just because your contractor helped show you renovation costs before you made an offer, doesn't mean he inspected the home. Make your offer contingent on an inspection. An inspector's job is revealing hidden items that need attention. You may want to change out those water pipes, but now you know they are wrapped in asbestos! At the very least, an inspection process should include the home evaluation, radon, pests, and water & sewer if they aren't hooked up to public utilities.


Check with the municipality for permits

Now we've all seen on TV where construction halts because of a code official not approving any permits. Check with the local officials and see what permits are required and how much they costs. These officials/inspectors might change how you do the work and the timing on permits could be from 1 day to 2 weeks. Also, if you don't get the permits, it could come back to haunt you when you try to resell the home later especially if the town has a Use & Occupancy permit.

Time to figure out what to offer

This is a very easy step. Take what the fair market value of the property is if it were in excellent condition, subtract the costs of remodeling and repairs and that's typically the fair price of the home. Ask your real estate agent for help on this one. For example, if the comparable homes are selling for $200,000 but this one needs a new kitchen and bath that will cost $40,000, then a fair price for the home would be $160,000. If the seller accepts that price, and after inspections it's revealed that it will need another $5,000 for repairs you can ask the seller to make those repairs or ask them for a credit to do it yourself. Keep in mind that the seller doesn't have to do the repairs or issue a credit and can simple say no.


You need to make sure you cover all areas of money before, during and after the sale. You need to know upfront what the costs for renovations are, possibly uncover hidden repairs, and STAY ON BUDGET after settlement!







Chip Plumley can be reached at (610) 444-9090 or (610) 357-8635.
Prudential Fox & Roach is an independently owned and operated member of
Prudential Real Estate Affiliates, Inc., a Prudential Financial company.
Equal Housing Opportunity.


ChipPlumley.com




Wednesday, February 9, 2011

Don't List Your Home For Sale Like Everyone Else!

Start thinking outside of the box BEFORE you list your home for sale!



It's the same thing everyday. A seller lists their home with an agent, it gets a sign in the yard, put in the MLS, has some ads run in the paper, has a few open houses and there is little to no activity. I see 5 or 6 homes in one community for sale that were all built the same way 10 years ago and none of them stand out as being better than the other.



How can you get your home to stand out from your competitors? Let's start from the beginning.



First, you need to interview a few real estate agents and review their marketing plan and pricing analysis, usually referred to as a Comparable Market Analysis or CMA for short. Once you have chosen a qualified agent, hopefully they have explained a few ways to stand out from the crowd. Below is a plan I have worked out to make your home not only stand out from the crowd, but reduce the stress levels during the home selling process. I call these homes Rock Solid Property Listing!




Home Inspection:

It's not a new concept for a seller to get a property inspection, but it's often thought of as a buyer's right to get one if they so choose. By getting a home inspection done you reduce getting surprised after a buyer's home inspector "picks apart" your home. I have had inspectors even find problems with new construction, so there will almost always be something to make a report about. Look at it as a general guideline for things that should be done to the home. Pennsylvania and Delaware law require a Property Disclosure to be completed by the seller anyway, so why not give a buyer all the facts upfront.



Wood Destroying Insects (WDI) Report:

This is usually referred to as a termite inspection, but it actually goes a little further than that. Powder post beetles, ants, bees and more are often looked for during the inspection. The cost to have a WDI report done is relatively inexpensive. Some mortgage companies are requiring that the home is inspected for termites before they fund the buyer's loan.



Radon Report:

Radon is an odorless gas that comes through the ground and possibly into your home. A radon test kit is installed, usually in the basement, for between 24-72 hours and detects any radon that maybe in the home. Most homes have some small levels of radon, so don't expect the report to comeback radon free. Again, this is a small expense and is roughly the same costs as a WDI report.



Well Water Testing:

If you are hooked up to a public or a community water system, you can skip over this part.
There are 2 main types of water tests, pressure and bacteria. The inspector will test the water pressure while he is in the home and will take a water sample to send to the lab where it is tested for common bacteria such as nitrates, nitrites and coliform.



Septic System Tests:

If you are hooked up to a public or a community sewer system, you can skip over this part too.
Depending on the type of septic system will depend on the tests. For today's modern design, generally a Hydraulic Load Test is performed to make sure there is proper flow going into the tanks then out to the drain field. The drain field is probed to make sure it is seeping properly into the ground throughout the entire system.



Home Staging:

Your style of decorating may be great in your eyes and mine. However it may deter certain buyers away who can't look past that certain style. A home stager would assess your home and come up with a way to make everything flow nicely to appeal to the majority of the people touring your home. If your home is vacant, now is the time to add some furnishings. If someone sees a large dining room table or a king sized bed, now they can start to imagine how theirs will look too.



Appraisal:

As a real estate agent, my job is to perform a Comparative Market Analysis. A CMA is my opinion of what the home should ultimately sell for. An appraiser also gives their opinion, but it is based on what the home's market value is. By getting an appraisal done, not only are we are getting a second opinion, but possibly eliminating any future financing issues a buyer's lender may have with the home.



Home Warranty:

A home warranty protects your home against certain things breaking in the house. Instead of paying a repair man out of pocket, you pay a small deductible and that's all! Not every home warranty is the same. Some cover the seller and buyer and others will only cover the buyer. I would recommend getting one that covers you during the listing period and then transfers to the buyer at settlement.



By doing all of these steps your home will appear to have more value and a buyer is more likely to see the benefit of buying your home versus your competition. By investing a small portion of time and money, you should reduce the time it's on the market and receive offers closing to the asking price rather than someone "beating you up" over price and condition.



Look at it this way...Would you pay a little more for a used car that was detailed by a professional and has a fresh set of inspection stickers on it, or would you rather take the car that's been sitting in the driveway for 2 years collecting dust with trash in the back seat?








Chip Plumley can be reached at (610) 444-9090 or (610) 357-8635.
Prudential Fox & Roach is an independently owned and operated member of
Prudential Real Estate Affiliates, Inc., a Prudential Financial company.
Equal Housing Opportunity.


ChipPlumley.com




Wednesday, February 2, 2011

Super Bowl Savings - How To Throw A FREE Game Day Fiesta!

Get 5 smart tips to save big on your game-day party.



On Super Bowl Sunday, you want your head in the game, not worrying that your party is a drag or your wallet won't recover. HouseLogic has rounded up some smart ways to offset your party-planning expenses without sacrificing the fun come game time.


1. Cheer for Charity
Have fun watching the game with friends and family while supporting a good cause--and take a tax deduction too. Here's what to do:


•Choose a charity or cause you love.

•Provide guests with suggested donations. For example, if you want to raise $500, recommend each person donate $25.

•Ask your local liquor store if it would donate a little free product in exchange for free promotion at your event. More often than not, the business is willing.


2. Get sponsored

Let a brand donate their food and drink to your party. Here's how to get involved:
HouseParty.com has a host of brands willing to provide free goods and services for your party, including DiGiorno Pizza and Kraft.

•Pick the brand you'd like to host and then complete a questionnaire about yourself and your knowledge of the brand. Your answers help the House Party team know if you're a good fit for the promotion.

•If you're chosen, the brand will supply a host of party goods for you and your friends to enjoy.


3. Go green to save green

Some NFL stadiums have been taking measures to go green for years now, saving hundreds of thousands in energy costs and recycling everything from straws to cooking grease. Here's how you can conserve at home:

•Use real dishes. Save about $20 and space in a landfill by not buying plastic plates, cups, and silverware.

•Send Evites. Don't send paper invitations. Use free electronic invitations instead.

•Recycle, donate, or sell your big, old TV. Use the big game as an excuse to treat yourself to a sleek, energy-efficient LCD TV. It'll cost you up front, though you may find a pre-game day deal and you'll save on energy in the long run.

•"Hypercook" it. A great way to save energy, and money, is to turn your oven off before your dish is finished cooking. You can also skip preheating or use a smaller cooker like a toaster oven to make some meals.

•Turn off bar room light displays. You may love your Schlitz Light neon sign but you don't need it, especially when the game should be taking center stage.


4. Go coupon hunting

There are tons of blogs and websites out there that have the scoop on the latest deals at hundreds of retailers. Save big on everything from food to supplies to electronics just by spending a few minutes doing an online search. Here's what I found:

CouponMountain.com has deals on electronics, decorations, food, gear, and even tickets to the big game. And sites like Bargain Babe and Deal Seeking Mom also keep tabs on great sales.

Safeway is also helping football fans prepare for Super Bowl parties with a host of party-themed recipes and coupons.

•Also nab that LCD TV for less on sites like overstock.com or catch Super Bowl season sales at stores like Best Buy or Sears.


5. Get a little help from your friends

After all, it's the company that really makes the party special. So rather than breaking your back (and the bank) trying to get everything done by yourself, include your guests and make it fun.

•Have a competitive potluck. Have a cook-off for fans of opposing teams (or let each person fend for themselves). It'll add to the spirit of the day and save you big on groceries.

•Ask for help. Need extra chairs? Ask your friends to bring them instead of buying them. Looking for some preshow entertainment? Ask your friends to bring their favorite games to play. That's what friends are for.


Tell us your money-saving tips!
Let other readers know some of your own great money-saving tips for hosting a Super Bowl party on my Facebook Fan Page!



A little fun fact. Do you know that most home showings are cancelled or denied by the owners on Super Bowl Sunday.







Chip Plumley can be reached at (610) 444-9090 or (610) 357-8635.
Prudential Fox & Roach is an independently owned and operated member of
Prudential Real Estate Affiliates, Inc., a Prudential Financial company.
Equal Housing Opportunity.


ChipPlumley.com




Tuesday, February 1, 2011

NEW Real Estate Investing Blog Site

Want to learn more about investing in real estate? Most financial analyst do suggest a certain amount of you portfolio be invested in some sort of real estate.

Check out my new blog for investors. I'm going to start with the basics and work up to the fun part of how it can potentially build wealth.

I am asked multiple time a day on how to invest in real estate. Some of the most frequently asked questions I get asked are:

- How do I get started and when is the right time to jump in?
- Do I need money to make money?
- What about property management? I don't want tenants calling me at 3:00am about a broken toilet!
- Should I fix and flip homes fast or do you make more money owning rental properties?
- I see people do it all the time on TV so why can't I seem to do it around here?
- I bought "that guy's" program on TV and he said I can make millions with no money down, using other people's money, and/or I only need to work about 2 hours per week in my spare time.


CLICK HERE to go to my new blog page!









Keep in mind, I'm a Professional Real Estate Agent. I'm not able to give you financial or legal advice. I'm blogging after years of experience in dealing with investors and facilitating transactions. I would advise you to seek your own mastermind group to help reduce any risks just as you would with any type of investment.

Chip Plumley can be reached at (610) 444-9090 or (610) 357-8635. Prudential Fox & Roach is an independently owned and operated member of
Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.



ChipPlumley.com