Archive for Homeowners

PODS Discount to Coldwell Banker customers

PODS, Moving and Storage

PODS Discount–

For Coldwell Banker customers who book a long-distance move with PODS before January 31, 2012, they will receive 15% off-triple the regular discount!
 Contact Dava for details about the offer.

To Remodel or Not to Remodel, That is the Question…

I am often asked by my customers “is there a formula for determining how much I can expect to get out of a remodel?” (or how much can I spend on a certain improvement and still be safe?)


It doesn’t matter if you are a homeowner in Corvallis, Albany, Philomath or elsewhere in the Mid-Willamette Valley, homeowners all over the country  want to know “is it worth it to remodel?” and “will I get my investment back?”

Luckily, some guidance is available. Annually the National Association of REATLORS® and REATLTOR® Magazine and Remodeling Magazine survey and compile information about resale values and home improvement projects and publish a document called the Remodeling Cost vs. Value Report (2010-2011). This report is full of information about home improvement projects and their regional return on value.  

However, that question is not as straight forward as it may appear on the surface. The information in the report is helpful, but should not be the only resource or reasoning behind the decision making process. Each set of circumstances and each individual household needs to evaluate and decide on an individual basis.
There are other factors to consider. You might want to think about some of the following…

  • The location of the home (can you replicate the setting, neighborhood, lot amenities if you choose to sell vs. remodel?)
  •  Are replacement homes available that meet your needs?
  • Is it something you would need to address to sell anyway?
  • Can you handle the effort associated with a move?
  • Can you handle the effort associated with a remodel?
  • If you remodel will you get what you need out of the project and live with it long enough to reap the intrinsic value which may be more than the monetary value?
  • Is the project a bona-fide improvement, a cosmetic face-lift or decorating?
  • Would the footprint of the improvement (eg. room addition) take up so much lot space that the remaining yard area is inadequate or atypical for the neighborhood? 
  • Is the improvement very specific to your needs/tastes (hobbies often drive these kinds of remodels) or is it something that is easily resold, appealing to a broad market segment?
  • Are you interested in being more “green” and are making energy saving improvements? Energy costs can sometimes help offset remodeling costs, but it often takes years to fully recoup.  Are there tax credits available for the type of improvement you are considering?
  • Is there a medical reason for making the changes? If the improvement enhances your (and/or your households) ability to fully enjoy the property…
  • Is what you are changing already so functionally obsolete that it would not appeal to a large segment of the homebuying market and/or is it unsafe?
  • Are you using existing space that would sacrifice the function of another room?
  • Are you relatively sure that your housing needs are stable?

Sometimes the amount of money spent on a remodel will generate a strong, nearly dollar for dollar because of the nature of the project or because the existing space is so bad it has an adverse affect on the value of the home.  So there is really no question that the project can be left ”as is”, the only question is the depth of the remodel (very dated kitchens and baths often fall into this category). 

Conversely, it is possible to become involved in remodel projects that don’t generate a good fiscal return because they are very specific and/or high cost materials have been used in a location/neighborhood that doesn’t return high-cost (also known as an over-improvement.)

It is possible with careful shopping, realistic planning and the right project to make improvements that will return positive results that meet your goals.

To some degree, the timing and the current market conditions will have some influence on the return of expense on a remodel project.

There is no “right answer” to any of these questions.  Each project should be evaluated on a case-by-case basis and in light of the needs of the homeowner in question.  It’s a matter of balance and personal preference. 

I’d be happy to visit with you to discuss your project and needs. I’d be happy to provide your with information about what’s typcial for your neighborhood, current trends and price ranges for similar homes.

Temporary Refinance Programs Extended–Home Affordable Refinance Program

The administration has extended the Home Affordable Refinance Program until June, 2011.  It was set to expire June, 2010. 

HARP benefits a borrower who has demonstrated acceptable payment history on their mortgage and needs an expanded Loan-To-Value ratio or potential relief from Morgage Insurance requirements for FNMA (Fannie Mae) & FHLMC (Freddie Mac) loans.  for more information call your current servicer for details.  This may be a way to lower your payment, allowing you to benefit from lower interest rates, even if your house has not gone up (or has gone down) in value.