Budgeting for a large remodeling project presents a bit of a chicken-and-egg problem: Homeowners won’t have a feel for the cost until they get bids from contractors. But, unless the homeowner give the contractors a ballpark figure from the start, the contractors will have to guess at what to include in their bids — and they’ll come back with a huge range of prices for very different plans.
To solve this problem, homeowners should start by finding the average costs. When insurance companies need to pinpoint construction costs, they multiply the length by the width of the space and then multiply that by the project’s typical cost per square foot. Estimators who provide such data to claims adjusters and contractors use the following averages for cost-per-square foot: kitchen, $174; powder room, $133; master bathroom, $160; and family room, $92.
Next, homeowners should tweak the costs to fit the scope of the project. The numbers above are for complete remodels, meaning the room is demolished right down to the framing and rebuilt. With a less involved project, reduce the number
by about 30 percent. For a cosmetic update, as in fresh paint on the cabinets plus new lighting and hardware, reduce it by about 60 percent.
Jeff
Good homes, good living!
http://www.SanJoseRealEstateSource.com
http://www.SanJoseShortSales.com
Jeff Spoelstra is a California residential real estate agent and REALTOR with years of experience making buying or selling property as easy and painless as possible. It’s my mission to provide the information you want and the help you need to get the home you’ll love.
The Apartment Owners Association is warning of a company called Successful Rent run by a lady named Sunny who is scamming rental property owners.
Sunny calls owners who have vacancies and claims she has prospective tenants
from out of the country looking for homes. She then sends someone over
who fills out the rental application and gives the owner or manager a fake
cashier’s check to hold the apartment. She also says that she will run the
credit report for the owner for free.
On the day of move-in, she calls the owner and says the tenant found another
place and they would like their money back. The owner then writes a check
for the deposit amount and a week or two later, gets a letter from their bank
saying the original cashier’s check was fraudulent.
A word to the wise…
Jeff
Good homes, good living!
http://www.SanJoseRealEstateSource.com
http://www.SanJoseShortSales.com
Jeff Spoelstra is a California residential real estate agent and REALTOR with years of experience making buying or selling property as easy and painless as possible. It’s my mission to provide the information you want and the help you need to get the home you’ll love.
From toilets that double as sound systems to water-conserving spa experiences, here’s what’s trendy for bathroom improvements for 2012.
Trend #1: Conservation rules
All around the country, water reserves are stressed. In response, regional governments are implementing conservation measures. As a result, there are likely to be new regulations that’ll affect your construction or remodeling plans. Here’s what to watch for:
Your new toilet will have a lower flush-per-gallon rating than the one that’s in there now. Consider a dual-flush version, or any low-flow toilet coming on the market that meets your style preferences. At the very least, your next commode is likely to feature a 1.28 gallon-per-flush rating — better than even the most-recent 1.6 GPF offerings.You’ll find them at home improvement centers from $100 to luxury showroom models for thousands more.
The WaterSense label, launched in 2006 by the Environmental Protection Agency to promote water conservation by plumbing manufacturers and home owners, will become as well-known as Energy Star. You’ll be shopping for low-flow shower heads and faucets with the WaterSense symbol on the box. Just as with Energy Star appliances, there is no cost premium associated with WaterSense savings — there are faucets in every price range. WaterSense shower heads are newer on the market, with a more limited selection today — mostly at more affordable prices.
You’ll start seeing more shower heads — especially rain shower models — using Venturi principles that deliver strong water pressure by adding air, not water, to the mix. They’re available in every price range, from ultra-affordable standard heads to luxury rain showers.
Trend #2: Technology advances
You may not think of your bathroom as a high-tech space, but that’s about to change. Here are some of the trends that can benefit your home:
You’ll be able to create a custom showering experience more affordably than ever. For $300 for simple controllers to $3,500 or more for a complete luxury installation, programmable showers let you digitally set your preferred water temperature, volume, and even massage settings before you step in. To achieve a personalized showering experience, you’ll need a 120-volt power source, and a thermostatic valve and controller in addition to your standard shower head or heads. Luxury models may include a steam system, a wi-fi source for music, multiple body spray outlets, tankless water heater, and a secondary controller to start the system from another room.
Dock your iPhone or MP3 player directly with your speaker-equipped, high-tech toilet so you can entertain yourself on the commode. While you’re not likely to invest $4,000 to $6,000 for a Kohler Numi toilet using this technology today, start looking for competitive models later in the year with lower prices.
Catch up on news and weather while you brush your teeth. Television screens are being integrated into medicine cabinets and vanity mirrors. Cost? Early entries to the market command a premium $2,200 to $2,400 price tag.
Plug your smart phone or MP3 player into your medicine cabinet so you won’t miss a call or song while getting ready for work or bed. A built-in jack keeps your unit charged (and away from wet countertops) and linked into a built-in speaker system.
Trend #3: Aging demographics emphasize safety
It’s not just high-tech that’s bringing an “experience” to the bathroom. Trends in universal design features add comfort, convenience, and safety. But that doesn’t mean your bathroom has to look institutional. Here are some universal design innovations that can factor helpfully (and stylishly) into your 2012 bath remodeling plans:
Sleek, low-profile linear drains are ideal for creating safe, zero-threshold shower designs. Unlike standard round drain covers that are typically mounted near the front end of a shower, these long, straight drains can be installed in different locations to minimize the slope of the shower floor. One popular location is at the outside edge of the shower, creating a wheelchair-friendly curbless shower. More offerings in more finishes — including nearly invisible tile-in channel models that are largely covered by shower floor tile — are becoming the standard for upscale spaces. You’ll spend $500 to $900 for a quality linear drain.
The rapidly-expanding selection of porcelain, glass, and ceramic tiles makes it easy to find slip-resistant, low-maintenance floors that don’t skimp on style. Expect to see faux wood, linen, and uniquely-textured looks for tiled bathroom floors and walls in 2012. The texture adds both visual impact and better traction for wet feet.
The accessible tub is no longer limited to the high-walled, narrow-door format that dominated the market in the last decade. Newer models, such as Kohler’s Elevance ($5,100), employ rising panels in front that give more of a traditional tub look with easier entry and exit. Others use standard hinged, sealed doors, but are increasing door width by several inches for better accessibility and appearance.
Original article by Jamie Goldberg. Republished here with permission.
Jeff
Good homes, good living!
http://www.SanJoseRealEstateSource.com
http://www.SanJoseShortSales.com
Jeff Spoelstra is a California residential real estate agent and REALTOR with years of experience making buying or selling property as easy and painless as possible. It’s my mission to provide the information you want and the help you need to get the home you’ll love.
Mulling a kitchen remodel but want to keep costs low? You’re au courant with today’s trends that emphasize options and high-tech wizardry at affordable prices.
Trend #1: Remodeling scales back
A new focus on moderation and value has entered the remodeling mind-set. Trends that are likely to show up in your kitchen next year include:
You’ll repair your existing appliances instead of replacing them, extending their life with good maintenance and care. If you’re replacing cabinets, you’re likely to build around your current appliances rather than choosing new models.
You’re scaling back your cabinetry purchases, with an increased emphasis on kitchen storage and functionality over elaborate decoration. For example, rather than stacked crown moldings throughout the kitchen, you’ll put your money into practical roll-out trays and drawer organizers.
Small-scale kitchen projects are big news. Changing out cabinet hardware, replacing a faucet, and refacing your cabinets upgrades your kitchen without major expense.
Trend #2: Simpler, warmer styles dominate
Fussiness and excess have faded away in favor of pared-back looks that present a more timeless, value-conscious style.
Cabinet decoration continues to streamline. For example, massive corbels, once fashionable as undercounter supports, will give way to sleeker countertop supports and cantelivered countertop edges. Stacked moldings will pare back or disappear entirely. Elaborately glazed finishes will yield to simpler paints and stains.
Kitchen finishes will continue to get warmer and darker, and feature natural and stained woods. Walnut especially is growing in popularity.
Laminate countertops will continue to surge in popularity, especially in contemporary design. The latest European-inspired laminates offer more textured and naturalistic finishes than ever before. While exotic wood kitchen cabinets are out of reach for most home owners, glossy, look-alike laminate versions can be had for about one-third the price.
Trend #3: Technology expands its kitchen presence
Many of the techno products and trends that relate to your smartphones and tablets have just started making their way into your local showrooms and home centers.
Appliances will be equipped with USB ports and digital screens so you can display your family photographs and kids’ artwork.
Smart, induction built-in cooktops ($500-$3,000) remember your temperature settings as you move your pans across their entire surface.
One light finger touch is all it takes to open the electronically controlled sliding doors of your kitchen cabinets — a boon to people with limited mobilities. You’ll pay 40% to 70% more for cabinets with electronically controlled doors than standard models.
You’ll be able to use your smart phones and tablets to control lights and appliance settings from anywhere you have a wi-fi connection, as well as to shop for appliances from major manufacturers.
You’ll be opting for LEDs for your recessed lights, under-cabinet task lighting and color-changing accent lighting. You’ll see more LED-powered pendants and chandeliers from major manufacturers as inefficient incandescent bulbs continue their march toward extinction.
A wide selection of affordable microwave ovens with convection and even steam features gives owners of smaller kitchen spaces more high-end cooking power.
Original article by Jamie Goldberg. Republished here with permission.
Jeff
Good homes, good living!
http://www.SanJoseRealEstateSource.com
http://www.SanJoseShortSales.com
Jeff Spoelstra is a California residential real estate agent and REALTOR with years of experience making buying or selling property as easy and painless as possible. It’s my mission to provide the information you want and the help you need to get the home you’ll love.
Don’t rouse the IRS or pay more taxes than necessary — know the score on each home tax deduction and credit.
Sin #1: Deducting the wrong year for property taxes
You take a tax deduction for property taxes in the year you (or the holder of your escrow account) actually paid them. Some taxing authorities work a year behind — that is, you’re not billed for 2011 property taxes until 2012. But that’s irrelevant to the feds.
Enter on your federal forms whatever amount you actually paid in 2011, no matter what the date is on your tax bill. Dave Hampton, CPA, tax manager at the Cincinnati accounting firm of Burke & Schindler, has seen home owners confuse payments for different years and claim the incorrect amount.
Sin #2: Confusing escrow amount for actual taxes paid
If your lender escrows funds to pay your property taxes, don’t just deduct the amount escrowed, says Bob Meighan, CPA and vice president at TurboTax in San Diego. The regular amount you pay into your escrow account each month to cover property taxes is probably a little more or a little less than your property tax bill. Your lender will adjust the amount every year or so to realign the two.
For example, your tax bill might be $1,200, but your lender may have collected $1,100 or $1,300 in escrow over the year. Deduct only $1,200. Your lender will send you an official statement listing the actual taxes paid. Use that. Don’t just add up 12 months of escrow property tax payments.
Sin #3: Deducting points paid to refinance
Deduct points you paid your lender to secure your mortgage in full for the year you bought your home. However, when you refinance, says Meighan, you must deduct points over the life of your new loan. If you paid $2,000 in points to refinance into a 15-year mortgage, your tax deduction is $133 per year.
Sin #4: Failing to deduct private mortgage insurance
Lenders require home buyers with a down payment of less than 20% to purchase private mortgage insurance (PMI). Avoid the common mistake of forgetting to deduct your PMI payments. However, note the deduction begins to phase out once your adjusted gross income reaches $100,000 and disappears entirely when your AGI surpasses $109,000. Also, unless Congress acts to extend the PMI deduction again, 2011 is the last tax year for which you can take this deduction.
Sin #5: Misjudging the home office tax deduction
This deduction may not be as good as it seems. It’s complicated, often doesn’t amount to much of a deduction, has to be recaptured if you turn a profit when you sell your home, and can pique the IRS’s interest in your return. Hampton’s advice: Claim it only if it’s worth those drawbacks. If so, here’s what to know about what you can write off.
Sin #6: Missing the first-time home buyer tax credit
While the original home buyer tax credit deadline passed in April 2010 (and isn’t available in 2012), military families and some government workers on assignment outside the U.S. were given an extension until April 30, 2011, to get a home under contract and take advantage of up to $8,000 in tax credits for first-time buyers and $6,500 in credits for repeat buyers.
It applies to any individual (and, if married, the individual’s spouse) who serves on qualified official extended duty service outside of the United States for at least 90 days during the period beginning after Dec. 31, 2008, and ending before May 1, 2010.
Sin #7: Failing to track home-related expenses
If the IRS comes a-knockin’, don’t be scrambling to compile your records. Many people forget to track home office and home maintenance and repair expenses, says Meighan. File away documents as you go. For example, save each manufacturer’s certification statement for energy tax credits, insurance company statements for PMI, and lender or government statements to confirm property taxes paid.
Sin #8: Forgetting to keep track of capital gains
If you sold your main home last year, don’t forget to pay capital gains taxes on any profit. However, you can exclude $250,000 (or $500,000 if you’re a married couple) of any profits from taxes. So if you bought a home for $100,000 and sold it for $400,000, your capital gains are $300,000. If you’re single, you owe taxes on $50,000 of gains. However, there are minimum time limits for holding property to take advantage of the exclusions, and other details. Consult IRS Publication 523.
Sin #9: Filing incorrectly for energy tax credits
If you made any eligible improvement, fill out Form 5695. Part I, which covers the 30%/$1,500 credit for such items as insulation and windows, is fairly straightforward. But Part II, which covers the 30%/no-limit items such as geothermal heat pumps, can be incredibly complex and involves crosschecking with half a dozen other IRS forms. Read the instructions carefully.
Sin #10: Claiming too much for the mortgage interest tax deduction
You can deduct mortgage interest only up to $1 million of mortgage debt, says Meighan. If you have $1.2 million in mortgage debt, for example, deduct only the mortgage interest attributable to the first $1 million.
Original article by G. M. Filisko. Republished here with permission.
This article provides general information about tax laws and consequences, but shouldn’t be relied upon by readers as tax or legal advice applicable to particular transactions or circumstances. Consult a tax professional for such advice; tax laws may vary by jurisdiction.
Jeff
Good homes, good living!
http://www.SanJoseRealEstateSource.com
http://www.SanJoseShortSales.com
Jeff Spoelstra is a California residential real estate agent and REALTOR with years of experience making buying or selling property as easy and painless as possible. It’s my mission to provide the information you want and the help you need to get the home you’ll love.
My friend Jim Thielmann, a loan broker with Plaza Loans, has published an interesting set of charts. One shows loan rates going back 30 years. A second chart shows 200 years of loan rates.
The 30-year chart clearly shows loan rates steadily falling since 1981. The most interesting fact is on the 200-year chart, though, which shows that loan rates haven’t been as low as they are presently since the early-1960s.
To put that in perspective, if you were thinking of buying a home in 1965, say, and you decided to wait to buy a home until loan rates went down, you would still be waiting.
Are you still waiting for loan rates to come down before buying? Are you willing to gamble another 47 years that they will?
Jeff
Good homes, good living!
http://www.SanJoseRealEstateSource.com
http://www.SanJoseShortSales.com
Jeff Spoelstra is a California residential real estate agent and REALTOR with years of experience making buying or selling property as easy and painless as possible. It’s my mission to provide the information you want and the help you need to get the home you’ll love.