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How Much Is Your Home Worth?

Home is where the heart is. Home is where you nest, raise kids, love, fight, nourish and walk through life’s major transitions, with the people who are part of you. For the vast majority of human beings, their home is also their most precious asset. But, aside from the unquantifiable emotional value your home provides, there’s a fair market value too. The only thing is, that can be difficult to determine.

  • Just exactly how much is your home worth?
  • How would you know?
  • How do you find out?

If you’re thinking of selling your car, you go to the famous “Blue Book” to set the fair market value of your car. If you’re considering selling your home, there are professionals and professional appraisal services you can employ to make sure you get it right.

All legitimate, professional home market appraisers can help you with the following issues you’ll find yourself wrestling with the moment you decide to sell your home (whether you’re selling yourself or through a real estate agent):

  • Taxes
  • Home improvements
  • Mortgage insurance
  • Relocating
  • Estate planning
  • Imminent domain
  • Market rents and trends

And that’s just to start. Qualified real property appraisers must hold a state license or certificate. Those appraisers who have done more than meet the bare basics government requirements have also undergone more education than required, and usually have a lot more experience to offer.

  • Real estate trends?
  • Are they familiar with your area?
  • How long have they been in business?

When it comes to your home, take the time to do it right. Then, when the dust settles, you’ll be glad you did.

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Like It or Not, Buyers Judge a House by Its Appearance

When you went in search of your new home, did you even briefly consider the structures that were dirty on the inside or out? If paint was chipping, rugs were stained or wood chipped, did you look twice at the asking price or turn around in search of a home with more upkeep, more shine and more polish? If you say that the appearance of the home didn’t phase you at all, you’re lying.

The look of a building is often the final tipping point for an interested buyer. If it looks rundown and unloved, people will think there is no reason to consider it, let alone purchase and revitalize it. If it appears to be falling down, it will appear to be worthless. You will never sell your home and move to the pretty, clean one you discovered in the neighborhood you are moving to. Therefore, it is important from the moment you move in to the moment you relocate that you maintain the appearance of your house.

Begin by keeping the paint fresh and clean. Do not let it chip and fade into a disgusting example of neglect. Give it life by reapplying paint every few years. And when you do, don’t opt for the cheap no-name brands. Invest in high-quality paint that will give the rooms a feel of class and warmth. The best way to do this is to consult a paint dealer. He’s not just there to make money; he’s there to make happy customers, which means he is there to do whatever you need to maintain the look of your home. He’ll point you in the right direction for the right paint.

When you start applying the color, do so carefully and meticulously. Do not just slap it on as if there were no other concerns in the world. Color alone does not make the room. You are trying to make a good impression not convey to the public that you couldn’t care less about the condition of your walls. Go over the corners and edges slowly; clean up any bumps; and create an atmosphere that screams “I took my time; I care. This is worth something.”

Once you’ve got the walls taken care of, take a look at the wood surrounding them. Do they need to be refinished? Do the carpets need to be shampooed? Do they need to be replaced entirely? Are any of your tiles cracked or missing? Have the wood floors seen better days? Examine everything that could detract from the appearance of your home and give it life.

If you don’t care about how your home looks, no one will care about your home. Take the time to breathe beauty into the walls, floors and extras in your home and you’ll reap the rewards. You’ll have people oohing and aahing over the extras you’ve added. You’ll have friends envious of your gorgeous dining room and redone floors, and most importantly, you’ll have buyers scrambling to retrieve their checkbooks before the person behind them can do the same and snatch this well-loved property out from under their noses.

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Talking to Builders is the 6th Step, Not the First

You are finally going to build your dream home. Don’t just
call a builder. There is work to be done before you make
that call.

Building your dream home is a big step. It is a huge
investment that should give you dividends for a long time.
It should have the amenities you want and MUST make you
happy. You worked hard to be able to afford it and you want
it YOUR way.

The first step is deciding what features you want in your
new home. Include your partner and children in the decision
making process. They are going to be sharing in this
experience and living with you. This home belongs to
everyone. Write down everything you want in this new home.
Don’t forget the outside and the landscaping features as
well.

The next step is deciding what features are absolutely
necessary. What features MUST be included in order to make
the house livable under current circumstances. But also
consider the near future, especially if the family may be
expanding: ie: another child, a parent coming to live with
the family. Perhaps now is the time to include that 4th
bedroom, and extra ½ or ¾ bathroom.

Now you know what you want and also what you need to be
comfortable. Now comes the fun! Bundle the family into your
car and drive around some of the subdivisions. Choose the
area in which you want to build and see just what types of
homes are being built. Don’t forget, if you don’t see a
plan you like, you have the options of choosing your own
design. Check out the model homes. These are built
specifically for public viewing. You will also see houses
at various stages of construction. If job site workers are
present, ask them if they will allow you to walk through
the house. There are safety issues to be considered, but
ask to look around.

By viewing these homes, you can start to get a feel of the
place, the floor plan, visualize your ideas, and the
completed project. Remember, at this point you are still
looking, so don’t be swayed my high-pressure tactics.

It is now time to determine if the plans and ideas are
financially feasible. This project should not be so debt-
inducing that the house becomes a burden. Contact several
financial institutions regarding the different types of
loans available for building a new home. Avail yourself to
as much money as possible, without exceeding your financial
limits.

In addition, make a list of builders that you would like
to consider. Ask friends, relative, get names from signs in
the subdivisions. Maybe you know a realtor or two who will
give you names. You should be able to come up with at least
5 different companies.

Then investigate each one of the companies.

1. Call the Better Business Bureau. They are a great
source. They keep records of contractors and businesses
that have had consumer complaints filed against them. They
will NOT give you opinions, only facts.

2. Call the different companies and obtain references.
TALK TO THESE REFERENCES! That cannot be stressed enough.
Be specific with your questions.

Were you satisfied with your builder? Was it easy to reach
the builder and discuss any question and concerns? Were
there any issues that came up? Did the builder follow
through with the homeowner’s warranty? Are you happy with
the home?

Once all the information has been gathered, analyze the
data and narrow your choice to 1 to 3 contractors. By now
you know what you want, how the project will be financed,
and whether you can trust the builder to do it your way.
That makes for a positive home building experience.

The Right Questions to Ask Your Builder

home_builder_blueprint.jpgThese are real builder questions that I got from readers of my e-book, “Residential Development Made Easy” with answers from a major USA Master Builder operating in 48 States.

Question 1.

My wife and I are planning a new home. We intend approaching a builder or two in this area, and I plan on asking them these questions.

My wife is very adept at planning and researching. Under what circumstances do you recommend we hire an architect? And Why or why not? (This is not a loaded question. I am not an architect
and neither is my brother-in-law. We would prefer to construct without hiring an architect.)

Reply

It would depend on your budget. Some architects in the US charge as much as 10% of the budget of a home to do the plans. Master Builders, as opposed to “Local Builder Bob,” don’t like to place their clients in a position of hiring an architect until they really need one.

The best advice our clients get is to prioritize their actions as follows:

First: Get the loan;

Second: Get the land;

Third: Get the Interior Designer;

Forth: Get the architect.

In our case, we have in-house architects and structural engineers.

It is best to hire an Interior Designer (ASID) and have them work with you to design the floor plan, which is uniquely suited for how you and your family use space and the style you like.

Armed with this floor plan you would then send it to us and we would create your architect blueprints from it.

Blueprints are part of the quote we provide our clients. This way they don’t have ‘Sticker Shock’ from a local architect.

Question 2.

How much price and quality research re materials can we expect our builder to do or to
have done?

Reply

This depends on the builder you hire. For the most part, you can’t expect too much. Most builders work in their comfort zone.

They use materials they’re used to working with. They usually won’t try something else unless insisted upon by the home buyer or developer. And, then they usually hire an outside source to do this.

As Master Builders, we use current technology and one of the reasons why we are both profitable and successful is that we keep abreast to new technology and want our buyers and developers to have this benefit in their homes.

Question 3.

Is it reasonable for us to ask our builder to identify his subcontractors and allow us to talk with the primary subs before we enter into a contract with him (and after)?

Reply

It may appear to be reasonable from your point of view, but, not very realistic. Subs come in and out of a job site. If one is not available another one is called in.

Once you have signed a Contract with a builder, he is your ‘one point of contact.’ The subcontractors are his subs - not yours. Remember you have engaged him for his building management expertise to complete the job on time and on cost.

That means he must have full control and so by you talking to the subs directly you are creating confusion. You can’t have two bosses on a job.

Confusion costs you more money. When you or your wife talk to a sub, you are not engaged in a social conversation. Let’s say you made an innocent comment about some aspect of the subs work - like you regret picking those tiles in the bathroom and have seen some nicer ones. That is all you said!

Can you see how a sub could use this against the builder when asked why he hasn’t finished the bathroom yet. “Well the client told me two days ago that they were changing the tiles to another type.” It doesn’t matter that you did not say that - but it caused confusion and delayed the job by at least two days or more.

Instead of wanting access to the subs, with whom you have no expertise, you should concentrate on ensuring the builder has the proper permits and insurance for building. Especially for workman’s comp and for liability.

Few clients realize that they can be held accountable, if the builder doesn’t have the correct insurance.

Let’s say that a child comes on to the site after the builder has left for the day. Decides to climb to the roof and jump. Guess who’s liable? Check the references of others clients he’s built for.

A Final point on access to subcontractors.

Many house building clients have very poor spatial ability and cannot imagine an overview of the space being designed for them - they just cannot imagine the finished house, never mind what the finished colors and tiles look like.

Because of this, they feel the need to be able to make changes at any stage of the project. This is what is behind this question of being able to speak to the subs. You can make changes to your house design at any time as long as you realize that each change will cost you heaps and blow your budget sky high.

To make these changes you ask the architect to request a cost estimate from the builder for each change. You then can decide if you can afford it or not. If your request is made at the worst possible (most expensive) time, you will be told that as well.

What’s the answer to all this? Make all the decisions about what you want and have them included in your
plans and specifications.

Question 4.

What does a builder, expect the homeowner to do (other than to pay you as and when agreed).

Reply

A builder expects the home buyer to be reasonable and realistic in their expectations. The time you spend in planning and thinking about what you want in you home is worth real money to you. If you are not good at planning, an Interior Designer will be critical to your final happiness.

If you can’t make up your mind on the important aspects of the design, go and inspect examples of what you do like and get the Interior Designer to incorporate what you want in the plan.

The biggest problems that most builders run into is home buyer who change what has been agreed to or is unrealistic in what they want. This is why we have our home buyers sit down with an
Interior Designer.

The ASID can sit down with you and help you visualize exactly what you want and help you make any compromises
you may have to make.

It is very expensive to make changes during a project. Let’s say that you wanted a 17×20 kitchen. Sounds like a big kitchen.
Probably too big. However, once the cabinets and appliances start coming in you realize that it’s too small and want the kitchen to be bigger.

This may cost you an extra $50k to make those changes. You can save yourself a small fortune by first working with ASID on floor space, storage, placement, design, and style.

Author & $1.2 Billion Developer, Colm Dillon, Has Written The Best Selling ‘How-To’ E-book, “Residential Development Made Easy,” With Readers In All States Of The USA, Canada, Australia, New Zealand, UK, Ireland and 79 Other Countries. His Independent Web Site is: http://www.realestatedevelopmentcoach.com/ez

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5 Key Issues for Keeping Your New-Build Budget on Track


Five practical areas to discuss with your designer or to keep in mind when plan shopping for your new home project. Here they are and not in any particular order.

Roofline

The steeper the roof the more the cost in most cases. If you have noticed lately, there are allot of new home developments where the roof of the home is quite high and large. This is usually because the home itself is a smaller square footage and the roof makes it look bigger. Always remember that the roof area equates to more sheets of plywood, more shingles and more labor. Gable roofs are less expensive than hip or cottage roofs. I suggest a 6/12 roof slope or less to keep the roof cost on budget. You might want to discuss this with your designer.

Windows/doors

This is a crucial part of design. Let’s look at a few things that effect overall cost. Obviously the amount of windows, size of the windows, whether they open or not, as well as rounded top glass will effect your budget. The average home usually has 12-15 windows. Opening or venting windows cost more than a fixed or picture window. Rounded glass can cost as much as double the cost of an average window so use them sparingly. Wood windows usually cost more than conventional vinyl (PVC) windows. A door example is a double French exterior door is more expensive than a standard patio door.

Wall heights

The trend in the new home building industry today is to design and build with 9 foot walls and ceilings. This gives a home larger feel vs. a traditional 8′ wall height. This will affect the cost of the finished home as there is more wall area for drywall, siding, etc. In a 1500 square foot home or less, I would recommend 9′ ceilings to take advantage of the space. Two story walls, referred to as balloon framing, really adds to the cost of framing.

Vaulted ceilings

This is a raised ceiling in the home, usually going to a peak. It is a great idea to integrate into the design if you want the cost of standard 8 foot high walls with the higher vaulted ceilings giving the perception of a lager space. There are typically two types of vaulted trusses used in a new home design. The first on is the Scissor truss vault which gives a gentler raised ceiling and is less expensive, and the second is a cathedral vault which typically is a full height vault with a ridge beam. You see these allot in a Chalet style cabin. (steeper vault)

Foundation

A full concrete foundation (8 foot basement) in most cases will cost more than a crawlspace or slab foundation. If you don’t have allot of storage designed into the home, a full foundation may be required and is also a great re-sale feature. A sloped lot may accommodate a day-lite or walkout basement option as well. Basement development, as well as extra space over a garage, are the least expensive ways to add square feet to a home.

So if you are about to get plans designed for your new home or just looking for a plan online, keep this five points in mind. Your wallet will thank you.

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Santa Fe Real Estate

Santa Fe New MexicoWhile we’re currently seeing a nationwide decline in real estate values, and a much cooler market than just 6 months ago, Santa Fe in New Mexico is still going strong. I find this a bit surprising, but the city has some great things going for it.

There’s a lot of culture available, and with New Mexico getting plenty of Southern California professionals moving there after retirement, the number of cultural events and venues is always increasing.

For the same reason, the job market is holding up pretty well. Yes, most of the jobs are in the service industries (to serve all those retirees, no doubt) but also plenty of telecommuting and professional jobs are available.

Somewhat affordable housing. The bubble didn’t quite break the affordability barrier in Santa Fe, so while it hasn’t fallen as far back as many other areas, it never got all that stratospheric either. Combine that with Santa Fe NM land being reasonably cheap, and it looks to stay that way for a while. Although there are new planning regulations in the works, which will cut sprawl and likely send housing costs soaring, so get in to that market now.

Buying real estate in Santa Fe doesn’t even have to be taxing, as there are a number of very professional real estate agents in the city. I’ve been in touch with a number of Santa Fe New Mexico MLS agents by now, and my impressions are good. So far, I’ve not found the right investment for me, but I’m keeping my eyes open for opportunities.

There’re plenty of both commercial and domestic real estate on the agents’ books at the moment, including some repossessions, so do check with the local estate agents now.

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