News

Projects that turn unused space you already have in the basement and attic into a finished room and those that boost curb appeal give you some of the biggest bangs for your remodeling bucks, according to the newly released 2013 Cost vs. Value report from the National Association of Realtors® and Remodeling Magazine.

Complete data from the Remodeling 2013–14 Cost vs. Value Report can be downloaded free at www.costvsvalue.com.

The very highest pay-back nationally came from replacing your front entry door, which returns 96.6% of its $1,162 cost when you sell your home. “Low initial cost combined with the positive effect on curb appeal is likely responsible for the high ranking,” the magazine said.

Kitchen remodels are among the most popular upgrades homeowners tackle. Doing a minor kitchen remodel (new appliances and countertops and refacing your existing cabinets) returned 82.7% and cost $18,856 on average.

Turning unfinished space into finished space also had good returns. Adding an attic bedroom cost just under $49,438 and returned 84.3%, while remodeling the basement cost $62,834 and returned 77.6%.

Local Vs. National

While the national figures tell you what the median returns were for homeowners across the nation, you can also look at the data for 120 cities and nine regions. That will tell you what’s going on in the local market.

But to get the best possible return on remodeling, your project has to fit the neighborhood and your home. You wouldn’t expect to recoup the cost of putting gold-plated faucets in an entry-level home and peel-and-stick tile isn’t the best flooring choice for a luxury condo.

If you’re considering an upgrade, click Email Me and we can discuss ways to make sure your project is a good fit so you maximize your home’s future value.

Whether it’s learning your heating and cooling habits, or sensing that you’re not home, home automation systems are increasingly able to think for you. It’s a trend that’s sure to grow in 2014, says Matt McGovren, a brand manager for Nexia Home Intelligence, a home automation system being sold at Home Depot.

How can home automation think for you? If your phone knows where you are, it can tell your thermostat to turn on the air conditioning so your house is cool when you get home or tell the oven to turn on and start cooking your dinner.

It can also ease your mind. “A garage door opener is the number one request we’ve had from customers,” McGovren said. It would give you an answer when you’re driving to work and suddenly think to yourself Is the garage door open? Did I remember to lock the front door?

With a home automation system, you can use your smartphone to check and then take an action if the garage door is open or the front door is unlocked.

“That’s where this next generation of technology is – you’re changing things in your environment rather than just monitoring what’s happening,” he said.

Nexia is also working with two heating system manufacturers, Trane and American Standard, to offer thermostats that will let your HVAC dealer log in from his office and see what’s happening with your furnace or air conditioner.

That ability to monitor home systems from a distance can be a great benefit for owners of second homes. If you’re in Arizona and the heating system isn’t functioning properly in your cabin in Minnesota, a smart home system could send you a text saying your house is too cold. Then, you can let the repair person in by remotely unlocking the door, so he can repair the furnace before your pipes freeze and burst, flooding your home.

“We also want to add intelligence to thermostats,” McGovren said.For example if your thermostat has weather data and knows you’re usually home at 6 p.m., but it’s extra hot today, it will turn itself on earlier so it’s cool when you get home.

What does McGovren recommend for a homeowner who wants to dip a toe into smart home technology but isn’t comfortable installing a complex system?

Get a starter kit and add a front door lock and light kit so you can know when your kids get home from school and you can make the lights turn on when you unlock the front door after dark.

Once you’ve got those installed and running, you can move on to add a smart thermostat and door and window security sensors.

Good News for Homeowners

Experts predict the housing market will continue to improve in 2014, although housing prices might not rise quite as much as they did in 2013.  The National Association of Realtors® estimated home prices would finish 2013 up 11.3 percent from 2012 levels.

Homeowners Continue Building Equity

Despite the Great Recession, real estate continues to be an effective way to build wealth.  If you bought the median-priced home in 2004 with a 30-year mortgage, you’d now have $28,114 in equity on average.  If you bought the median-priced home in 2012, you’d have more than $23,000 in equity.

Even those who purchased at the market peak in 2006 would have seen his home decline in value and by 2012, he would have owed about $28,200 more than his home was worth on average.  But, by the end of 2013, he would be only $4,700 underwater, NAR says.

Most homeowners who bought their homes after 2007 have positive equity.

Staying abreast of the latest rends in home decor helps you extend the life span of your next remodeling project.  Here are some of the top trends for 2014 in home remodeling and redecorating:

Kitchen Trends

Kitchens featuring black countertops, open shelves or glass-front cabinets and darker paint tones are popular with homeowners, according to Zillow Digs’ Home Design Trend Report for 2014.

Elle Decor predicts jewel tones and rich colors will dominate kitchen design in the year ahead.

If you can afford to update again in a few years, you can take the risk of putting in trendy countertops that look like malachite, agate or other stones.

But, if you’re going to have to live with your kitchen for many years or you plan to sell in a few years and don’t want to have to remodel again, stick with neutrals for countertops, walls, flooring and cabinetry.  Save the bolder patterns for easily replaced accents like curtains, rugs and pillows.

Industrial Accents

Sophisticated industrial revolution accents will remain strong next year, according to the Delta Faucet design team.  This trend includes unique materials that look like they came from an architectural salvage yard.

To build this look on a budget keep the accents in their simplest form.  Light fixtures stripped down to nothing more than sockets and wires, open metal shelving stacked with cast iron cookware and reclaimed wood elements can easily reinforce this look with minimal cost.

Navy Blue or Radiant Orchid?

House Beautiful says  the most popular color for home décor in 2014 is blue. “From rich, saturated colors like navy and indigo to bright, vibrant shades like peacock blue and cobalt, blue will continue to reign supreme in the coming year,” design blogger Paloma Contreras told the magazine.

The color experts at Pantone disagree and choose Radiant Orchid  as the official color of the year. Can’t make up your mind which you like? Get them both with York Wallpaper’s Martini print.

USB Sockets
With so many devices to charge, homeowners are replacing a few of their home’s traditional electric outlets with outlets that pair one regular outlet and two USB ports to power cell phones, gaming devices and computers, say the design experts at Neil Kelly Remodeling in Portland.

Swapping a regular electric outlet for a USB outlet (get them at any hardware store) is simple for a do-it-yourselfer who understands home electric wiring. Neil Kelly recommends looking for a socket that has a smart sensor to shut off the power when your device is fully charged.

Small, Efficient Bathrooms

The downsizing trend isn’t just influencing homes, it’s also showing up in the bathrooms inside those homes, says Remodeling blogger Lauren Hunter. Manufacturers have responded to the desire to right-size homes by coming out with smaller-scale bathroom fixtures.

Green living has inspired water-saving fixtures that don’t sacrifice performance. And an increasing number of multigenerational families are fueling a trend toward ageless bathroom design to ensure everyone can use a bathroom for years to come.

If your New Year’s resolutions include saving money, we’ve got four great ways for you to achieve your goals:

Refinance

If you haven’t yet refinanced your mortgage or home equity loan to take advantage of today’s low interest rates, there’s still time to lock in a great deal.  Jay Brinkmann, chief economist for the Mortgage Bankers Association, expects mortgage rates to rise above 5 percent in 2014 and to 5.5 percent by the end of 2015.

If your current mortgages exceed your home’s value, you may still be able to refinance using one of the federal government’s Home Affordable Refinance Program (http://http://www.makinghomeaffordable.gov/programs/fallen-value-help/Pages/default.aspx).

Change your Furnace Filters

New Year’s resolutions don’t get much easier than vowing to change your HVAC filter once a month in 2014 to increase your furnace’s life span.

To make this task easy, buy 12 filters and store them in the furnace room so they’re at hand when you need them.  Put a reminder on your calendar or tie this chore to another monthly chore, like paying your household bills, so you remember to do it each month.

Seal Those Home Air Leaks

Sealing the air leaks in your home is one of the most cost-effective ways to cut your utility bills.  Check to make sure your winders are caulked around the outside of the trim on the inside and outside of your home.  Use foam to fill large gaps where the plumbing, electric or cable comes in the house.

Shop Your Insurance Policies

Yes, it’s a bother to shop for insurance, but if you haven’t checked what’s out there lately, you may be overpaying.  The easiest way to get this chore done is to delegate.  Copy the declarations pages from your current home, auto, life and umbrella policies and ask an independent insurance agent to look for a better overall deal for you.  You can also visit your current agent or call your insurance company and ask for an annual review to make sure you’ve got the right coverage and are getting all the discounts for which you qualify.