URBALO

It was well known that high-end kitchen and bath renovations were increasing the home’s value. But the granite countertop’s glory days might be over. During the housing boom, updating a kitchen with high end materials like cherry wood cabinets and a Viking stove was a sure bet to boost a home’s value.

The statistics show that the homeowners recovered about 80% of the cost when the house was later sold. The slowdown in the real estate market and the flood of new properties on the market, has given the buyers more options to choose from therefore all these extra upgrades don’t present much value in their eyes anymore.

A recent survey by NAR has shown that most renovations are returning less than 70% of their cost. NAR’s survey revealed that returns on investment for a wide range of high-end interior redecoration dropped in 2007. An upscale bathroom renovation cost an average of $50,590, nationally, but only added $34,588 to house value - a 68.4% return. In 2006, a high-end bath renovation returned 77.4% of its cost.

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For the past few months, I have been giving you advice on how to manage a foreclosure situation that you might find yourself in. But what if you are on the other side of the fence and you are constantly trying to find a cheap property to invest in? How would you go about finding a foreclosure property?

1. Check out a couple of the new online services like propertyshark.com, foreclosurefreesearch.com and foreclosure.com . These foreclosure listing sites provide the latest foreclosures in your area and often include the amount owed and the estimated value. Both of these websites provide a free trial so you can test the site out before you commit to their paid service. Very useful websites even though they cost money.
2. Unless you’re an experienced investor, you should skip for now the public foreclosure auctions. These auctions are mainly controlled by financial institutions so there are slim chances that you will get a good deal on a foreclosure property. The online websites actually have a feature that will show the properties that will go into default. During that time there is a brief window to negotiate directly with the property owner which is your chance to get the property before it even hits a public foreclosure auction.
3. First thing you should do is to get in touch with the default property’s owner. If they have a lawyer, feel free to contact them as well. Your goal here is to ask the owner if there is any way to negotiate a purchase of their property before it goes into auction. Remember, DO NOT only negotiate with the lawyer because he basically has no interest to work out a deal before the property goes into foreclosure.
4. If the owner is willing to work out a deal then the next step is to negotiate the price and terms. There are a few occasions when the owner might want to partner up with you. How does it work? Well, you can start by paying the mortgage-backed payments to get the loan out of default. Once you fix up the house and sell it, you give the owner a check for a portion of the profit.

Of course, there are many other way to get a foreclosure property and the amount of websites that offer these kind of properties are increasing every day, but the above points should be a good starting point for you.

There are many upgrades that will simplify your life and boost the saleability of your home but most of the time the simple things are just overlooked. Here are some tips on how to maximize the space in your house and make more more room.

1. Closet organizers - Canvas sorters

The simplest way to expand closet space is to buy sweater cubbies that hang from the closet rod, back-of the-door shoe compartments and storage boxes for the shelf and floor.

Price: $100 to $400 (for an eight-foot-wide closet)

Where to buy: $12 to $22 canvas bags from StacksandStacks.com

2. Closet organizers - Wood system

This setup looks professional, but be ready for a major project. You must first assemble boards into shelves and then hang them on the closet wall. For strength, go with boards that are three-quarters of an inch thick, not five-eighths of an inch, and a wood veneer or at least melamine (white laminate) finish instead of painted particleboard

Price: $400 to $1,000 for melamine and $800 to $1,600 for wood veneer

Where: EasyClosets.com

3. Closet organizers - Metal system

You can arrange these metal shelves and baskets in nearendless ways. European makes like Elfa (sold only at the Container Store) are higher quality than domestic products but pricier.
Metal shelves are easier to install than wood systems. Still, buy an electronic stud finder ($10 to $30) to ensure that your screws hit pay dirt, because the whole heavy array hangs from a single horizontal track

Price: $500 to $2,000

4. Cabinet organizers - Rollout trays

Install one and you’ll never have a hard time reaching the back of a low cabinet.
Look for a wood or chrome-plated steel tray with full-extension glides (so that it pulls out all the way) and at least four screws to hold it in place.

Price: $40 to $100 each

Where: organize.com

5. Cabinet organizers - Drawer inserts

Make all your silverware and odds and ends neat and easy to get to. With adjustable drawer inserts, you can move the dividers around to fit your needs.
Custom drawer inserts cost more but deliver a lot more too. The drawer insert and the dividers are sized to order, so you can accommodate odd-size drawers and supplies.

Price: $10 to $15 and $70 to $250 for a custom divider

Where: KitchenSource.com

6. Cabinet organizers - Corner Susans

This add-on will make that impossible-to-access cornercabinet usable.
Be careful to get the right configuration - full round, pie cut or half moon - for your cabinet’s shape

Price: $150 to $250

Where: Revashelf.com

This is a great time for buyers to invest in second homes. Chicago has an abundance of great condos at good prices with great rental and appreciation potential. Besides appreciation and rental income, second homeowners can add to their income with great tax deductions.

Mortgage, taxes and insurance

• Property taxes
• Property insurance
• Flood insurance
• Liability insurance
• Mortgage interest
• Private mortgage insurance (PMI)
• Refinance and closing fees

Homeowner’s association

• Monthly assessments
• Special assessments Read Full Article ->
  

Ahhh, the green craze!! Some of you probably don’t know, but western European countries have recycled for decades. We, as a nation are running behind, but it is never too late to start. And I am thrilled that developments are competing for the best environmental friendly condo project. I hope people understand that this is not the next “venti - skim - no sugar vanilla - no foam - iced - chai Latte” fad. To be environmentally conscious is almost mandatory. Green is good and it is even better when it increases the value of your home. I am talking about your yard!

After 5 years of hauling sod from Home Depot and planting seeds, and still harboring a mud pit (having a Labrador doesn’t help), I gave up and finally hired a professional to pave my yard. My reaction, the first time I saw it paved was: “Wow, I didn’t realize that my yard is this big.” I spent about $2000 to pave a 400sq ft yard with two-tone pavers, plant climbing ivy to cover the back wall and plant two magnolia bushes. This improvement has just increased the value of my home. The potential buyer will now recognize that my city duplex comes with great outdoor space for entertaining and relaxation, instead of my lab’s paradise mud pit.

As the housing market continues to weaken sellers are starting to make improvements outside the house to give their home a nice curb appeal. Read Full Article ->

I think we all know by now that updating a kitchen or bath can add about 20% value to our home. The word “update” automatically makes us think of granite and stainless steel appliances, right? for all of us who are tired to hear about granite, 1 1/4 inch or not, here is a list of “hot” countertops worth remodeling and showing off with.

• Concrete - many love it because it can be molded in various shapes and cast in large sizes without seams. Cracks and stains easily and it is more expensive.
• Corian - is an acrylic rather than a natural material and it is available in many colors and patterns. It can be fused in large expanses. Stain resistant and cheap Read Full Article ->
  

How quiet is your Condo? When purchasing a condo in a high-rise, we emphasize location, view and amenities. One very important element we tend to ignore is the noise level. It is usually after closing that we find out at 2:00am that the next door neighbor is taking electric guitar lessons, again. According to Tom Corbett, president of Tomacor Home Inspection, there are ways to protect yourself and your neighbors from excessive noise when purchasing a high-rise condo.

1) Confirm in writing that the developer has installed a sound-deadening assembly of materials. To inhibit sound from passing from the floor above, builders should install a “Z” channel in the ceiling. The “Z” channel is a piece of sheet metal shaped like the letter “Z” that has soft material in the middle that absorbs sound.

2) The builder should leave a gap of about an eighth of an inch between the drywall of ceilings and walls and fill the gap with caulk which absorbs sound vibrations. Read Full Article ->

In a previous article, I have talked about interviewing a realtor and the questions a customer should ask before choosing a real estate agent. Today, I am going to cover the issue that most of the people are having when trying to sell their house: hiring the perfect real estate agent.

Here are some good questions that you should ask all the real estate agents when interviewing them.

1. What is your commission? ( This is probably the most important question)

A very important factor in choosing a real estate agent is the commission that he/she will take from the sale. Most of the time, the commission falls between 5-6% but remember, this is negotiable and you can always try to get it lowered.

2. What’s your sales volume for this year and last year?

This is also important to know because it could tell you how successful and how good of a marketer the realtor is. Remember that even if he/she sold properties with a total amount over 3-4mil, there is a possibility that the realtor did not sell other listings that could have been worth 6 mil or more. Find out why did he have a hard time selling those and ask for specifics.

3. How is my property going to be advertised?

A good brokerage will advertise your property not just on MLS( Multiple Listing Services) but also newspapers, neighborhood postcards, full size brochures. Also, the property should be listed on their own website as well, and if the agents is part of a team, all the team members should advertise that property on their websites. Open houses are a must and the realtor should host them at least 2 times a month. Many large brokerages with good marketing programs will use mass mailings or emails to attract more traffic to your property and increase the number of showings.

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Realtor.org has an interesting article on consumers’ interest in being green. The latest environmentally friendly home features aren’t just good for the planet — they look great and are a huge draw for conscientious buyers, too.

Whether or not you specialize in selling green homes, you’re likely to meet clients who are interested in living a more sustainable lifestyle. Here’s a look at the green housing trends you ought to know as you navigate today’s market.

Choosing a realtor is not always as simple as it seems, you are basically going to rely on the real estate agent’s expertise and honesty in order to find your dream house. In the Chicago Real Estate area, there are around 10,000 realtors, and choosing one will take time, patience and research.

In my opinion, the client should select candidates from referrals, realtors that you met during open houses and realtors that have websites and show a lot of interest in marketing (this applies usually to sellers that would like to have their house sold fast and at a good price).

Always remember that the realtor’s commission is paid by the seller, so it is important that they have the patience to work with you rather than just try to make a quick purchase for you while spending the least amount of time. Below there are some good questions that you can incorporate into your interview and based on them, you can make a decision on hiring the real estate agent. Read Full Article ->