Tag Archives: Expectations

Price Your Home Right at the Start

Price-It-Right“Marketing your home properly is important.  Pricing your home properly is part of Marketing.  Price it right to start with.”

Denise Buck & Ed Johnson – DC Metro Realty Team

 

In today’s market, where demand is outpacing supply in many regions of the country, pricing a house is one of the biggest challenges real estate professionals face. Sellers often want to price their home higher than recommended, and many agents go along with the idea to keep their clients happy. However, the best agents realize that telling the homeowner the truth is more important than getting the seller to like them.

There is no “later.”

Sellers sometimes think, “If the home doesn’t sell for this price, I can always lower it later.” However, research proves that homes that experience a listing price reduction sit on the market longer, ultimately selling for less than similar homes.

John Knight, recipient of the University Distinguished Faculty Award from the Eberhardt School of Business at the University of the Pacific, actually did research on the cost (in both time and money) to a seller who priced high at the beginning and then lowered the their price. In his article, Listing Price, Time on Market and Ultimate Selling Price published in Real Estate Economics revealed:

“Homes that underwent a price revision sold for less, and the greater the revision, the lower the selling price. Also, the longer the home remains on the market, the lower its ultimate selling price.”

Additionally, the “I’ll lower the price later” approach can paint a negative image in buyers’ minds. Each time a price reduction occurs, buyers can naturally think, “Something must be wrong with that house.” Then when a buyer does make an offer, they low-ball the price because they see the seller as “highly motivated.” Pricing it right from the start eliminates these challenges.

Don’t build “negotiation room” into the price.

Many sellers say that they want to price their home high in order to have “negotiation room.” But, what this actually does is lower the number of potential buyers that see the house. And we know that limiting demand like this will negatively impact the sales price of the house.

Not sure about this? Think of it this way: when a buyer is looking for a home online (as they are doing more and more often), they put in their desired price range. If your seller is looking to sell their house for $400,000, but lists it at $425,000 to build in “negotiation room,” any potential buyers that search in the $350k-$400k range won’t even know your listing is available, let alone come see it!

A better strategy would be to price it properly from the beginning and bring in multiple offers. This forces these buyers to compete against each other for the “right” to purchase your house.

Look at it this way: if you only receive one offer, you are set up in an adversarial position against the prospective buyer. If, however, you have multiple offers, you have two or more buyers fighting to please you. Which will result in a better selling situation?

The Price is Right

Great pricing comes down to truly understanding the real estate dynamics in your neighborhood. Look for an agent that will take the time to simply and effectively explain what is happening in the housing market and how it applies to your home. You need an agent that will tell you what you need to know rather than what you want to hear. This will put you in the best possible position.

Buying a Home in the Right Neighborhood

Small Front Yard“How do you know when you’re in a great neighborhood for you?  There are several tips that can help you know when you’ve found the right one.”

Denise Buck & Ed Johnson – DC Metro Realty Team

 

A great neighborhood sells a home, real estate agents say. It also helps your home hold value and makes it easy to sell when you decide to move on.

With all the pressure and excitement of home shopping, how can you know if a neighborhood is truly great?

Here are 20 clues that help you determine if you have the right neighborhood.

1. It meets your specs

Make a list of what you want and don’t want in a neighborhood and shop for those qualities.

Describing his ideal neighborhood, Jay Walljasper, author of “The Great Neighborhood Book: A Do-it-Yourself Guide to Placemaking,” says he looks for “the invincible spirit of neighborliness (that’s) apparent even to a casual visitor.”

But what is ideal varies. Your ideal could be a close-knit community with trees, playgrounds and great schools. Mine might be a downtown block of clubs, shops and condos.

2. You like what you hear

Become an expert on the neighborhood that interests you. Get a feel for it by attending open houses, walking the neighborhood’s blocks, spending time in restaurants and coffee shops, and looking for community gardens.

Have a home in mind? Knock on doors and chat with neighbors on that street. Ask everyone who’ll talk with you about the crime, noise, traffic, neighborhood issues, and general pros and cons.

3. You can get a latte

Upscale chain and independent retailers are signs a neighborhood is well-established or on the way up. These businesses signal a degree of affluence. Also, they’ve typically done market research to assure themselves the neighborhood is stable and worth the investment.

4. You see home improvements

Especially in the warm months, look for activity that shows owners are keeping up or investing in their properties. Improvements like new gutters, painting, re-roofing, gardening and landscaping, replacement windows, new fences and decks tell you they have pride in their homes.

5. Neighbors are organized

Block watches and neighborhood meetings are signs of a tight community. If you find a neighborhood group, attend a meeting or two to meet people and ask questions. Subscribe to any neighborhood newsletters.

Dennis P. Rosenbaum, director of the Center for Research in Law and Justice at the University of Illinois at Chicago, told MSN Real Estate:

“Crime is lower where people say they feel more attached to the neighborhood, more social connectedness, more responsibility for what goes on around them and a greater willingness to intervene when they suspect criminal activity.”

6. People are out on the streets

People on sidewalks and children walking to school and playing in parks tells you they feel safe. An article at Veterans United asks:

Are there people sitting on their porches? Walking dogs? Taking their kids on a walk? If residents are willing to get out and walk around the neighborhood, that’s a good sign of its vitality and safety.

7. It passes muster after dark

Don’t think you know a place if you’ve only seen it in the middle of a weekday. Return repeatedly, at night and on weekends, to get a realistic picture.

8. Crime numbers are low

Don’t buy into a neighborhood without checking its crime statistics. City police department websites often publish them. In Chicago, for example, weekly crime statistics are reported by police district.

9. School scores are strong

Where school test scores are strong, home prices are high. Search GreatSchools.org for the schools’ scores in the neighborhood you’re considering. Ratings are based on performance on state standardized tests. (GreatSchools’ rating system is explained here.)

10. It’s walkable

Do cars dominate? Or do sidewalks and streets encourage pedestrians and bicyclists? Sidewalks wide enough for outdoor cafes, benches and strolling give a place a neighborly feel.

Put an address or ZIP code into Walkscore.com to obtain a “walkability rating” for neighborhoods or cities. Scores, ranging from zero (“car dependent”) to 100 (“walker’s paradise”), reflect the ease of life without a car.

11. Bus stops abound

Can you easily find buses? And subways? And rail lines? Homes with easy access to public transit fetch higher prices than similar homes without it, says a 2013 study commissioned by the American Public Transportation Association and the National Association of Realtors. Homes within a half mile of “high-frequency” public transit were worth 41 percent more, on average.

But don’t get too close. Locations adjacent to rail lines and bus stops lose value, Portland real estate broker Rob Levy told Bankrate.

12. It’ll work for you for five to seven years

So, a hip, edgy, gentrifying downtown district is your dream location right now? But will it work later, if you want children? Or if you change jobs? Don’t count on being able to sell and move quickly.

I remember talking during the recession with a young couple who’d bought a condo in what they hoped was an up-and-coming neighborhood. After a while, though, they grew tired of hearing gunshots at night. When she became pregnant, they felt stranded. They wanted to move but could not because their home was worth less than they had paid.

The lesson: Make sure the neighborhood suits your needs for at least five years.

13. Ownership is high

Neighborhoods with high homeownership rates are more stable. However, there are exceptions. For example, you can expect renters to outnumber buyers in expensive cities like New York and San Francisco.

Typically, renters are more mobile than homeowners. Longtime residents watch out for each other, making for a safer community.

Statistics on homeownership in neighborhoods can be hard to find, although some real estate agents may have them. You can get a sense, though, by asking agents and locals about the renter-owner balance. Also, watch for apartment complexes that dominate a neighborhood, or large numbers of “for rent” signs.

14. Homes sell quickly

Fast turnaround of homes for sale indicates a neighborhood in hot demand. A real estate agent can run “comps” (comparative home analyses) to tell you how quickly homes are selling.

Other clues to a neighborhood in demand include employers moving in with new jobs, a growing population, and a limited supply of homes for sale.

15. Homes hold value

In the housing crash, home values held up better in some neighborhoods than others. You can find historical sale prices in your county’s property tax records. Many counties put these online. (NETRonline, a title company, has links to online county property tax records.) Or ask your real estate agent for neighborhood sales trends.

If you’re considering a bargain home in a neighborhood of foreclosures, consider whether home buyers will want this neighborhood when you are ready to sell. Even if you don’t care about school quality or how many playgrounds are nearby, the next buyers of your home probably will.

16. The commute is not bad

Homes located close to major employers and in city centers are in high demand.

“The Driving Boom — a six-decade-long period of steady increases in per-capita driving in the United States — is over,” says a 2013 transportation report by the nonprofit advocacy group U.S. PIRG.

A New York Times article adds: “Younger people are less likely to drive — or even to have driver’s licenses — than past generations for whom driving was a birthright and the open road a symbol of freedom.”

17. City services are good

Is the trash picked up? Are streets paved and well-maintained? Beware of broken streetlights, cracked sidewalks, and lots of vacant homes with cracked windows and an overgrowth of weeds.

18. You see plenty of churches

You don’t have to be religious to appreciate that churches, mosques and synagogues are signs of community strength, and evidence that residents are connected and invested.

19. It’s got police and fire stations

Find the nearest fire and police stations and fire hydrants. Nearby public safety services add to a sense of neighborhood security. Also, a firehouse nearby might mean lower homeowners insurance premiums.

20. (Good) change is coming

Major economic development can change neighborhoods dramatically. According to Trulia:

“From Google and Microsoft building cloud storage data centers in Des Moines to a new light rail station going live in Denver, one large-scale employer or infrastructure development can be a very early, very strong sign that an area will see its real estate fortunes rise.”

Guest Rooms that Work

“Guest Rooms are nice to have, but have you thought about how often it will be used, or who will be using it?  Here are several interesting ideas to consider.”
Denise Buck & Ed Johnson – DC Metro Realty Team
The guest room can be one of the most underused spaces in the house. It’s wonderful to have one when you need it, but when guests are nowhere in sight, it can feel like wasted space or a drop zone for odds and ends. Here’s how to make the most of the guest room, from beds and layout to storage and more.

Hardworking space: The guest room.
The challenge: Guest rooms come in all shapes and sizes, and there are just as many options for guest beds. Whether you frequently host groups of family and friends, or rarely have overnight guests, these tips will help you choose the right bed and layout for your space.
Good to know: Sometimes rethinking your space will help you discover new solutions — like subdividing a guest room into two smaller spaces.
Farmhouse Kids by Sullivan Building & Design Group
Sullivan Building & Design Group
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Design idea: Carve one room into two.

Why: If you have a single guest room but wish you were able to accommodate another guest, dividing the room in two can be a smart way to sneak in more sleeping space.

How: To transform your guest room into guest rooms, you may need to add a non-load-bearing wall. Hire a contractor to do the work. If you want to add electrical work (outlets, light switches) to the new wall, you may need permits. If no electrical work is involved, homeowners with some building experience may be able to tackle this project themselves.

Layout tips: In a smaller space, a centrally positioned wall may not allow enough room for a bed on each side. In that case a wall positioned off center (as shown here) may allow you to place a twin bed on one side and a larger bed on the other.

Also consider whether a partial wall will do (so the two spaces can share a door) or if you want to fully divide the space, which would mean adding or repositioning doors (also adding to the cost).

Beach Style Bedroom by SPG Architects
SPG Architects
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DIY or hire a pro? A non-load-bearing wall can be built by homeowners with some building experience. Having a helper is essential for this project (there is some seriously heavy lifting and positioning involved), so do not attempt it on your own.

If any electrical work is involved (for instance, you want the wall to be wired with a light switch or outlets), go with a pro for safety’s sake.

Cost: For professional installation, a licensed contractor should be able to complete the job for around $800 to $2,500, depending on rates in your region and the size of the wall. The cost will be higher if electrical work and permits are required.

Materials for a DIY non-load-bearing wall can cost between $200 and $500 and up, depending on the region. Plan to spend more if you do not already own the tools needed to complete the job.

Contemporary Bedroom by Gelling & Judd Inc.
Gelling & Judd Inc.
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Design idea: Murphy bed.

Why: When quarters are tight, nothing beats a Murphy bed for maximizing space. This type of bed folds up into the wall when not in use, opening up the floor space for another purpose.

How: Murphy beds can be found ready made, or you can have one custom designed to fit your space, in sizes from twin on up. If you go with a ready-made version, ask about delivery and installation services before you purchase— it can bring peace of mind to know your Murphy bed has been safely and properly installed.

Cost: Ready-made Murphy beds can be purchased for $1,000 to $3,000, depending on quality of construction, design and size. Expect to pay more for a custom designed and built Murphy bed, particularly if it includes storage or other custom features.

How to Add a Murphy Bed

Contemporary Home Office by Tamalpais Construction Company
Tamalpais Construction Company
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Design idea: Daybed with trundle.

Why: A daybed’s compact footprint makes it a good choice for a small guest room; a pullout trundle underneath doubles your sleeping accommodations for guests. This is a good choice if you would like to use your guest room for another purpose (office, den) between visitors.

How: Daybeds are widely available in a range of prices. With a trundle, look for one on high-quality casters that moves easily. If you would like to be able to transform a twin daybed into a full-size bed, search for a daybed with a pop-up trundle. Custom daybeds can also be built in place to fit your space perfectly and incorporate storage features.

Cost: Around $400 to $1,000 and up, depending on materials, design and quality of construction. If you are looking to save, search for used daybeds locally — you may be able to find one for significantly less.Custom built-in daybeds can cost from $1,000 to $3,000 and up.

Browse daybeds and trundles in the Houzz Shop

Transitional Bedroom by Marcel Page Photography
Marcel Page Photography
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Alternate idea: If having a trundle is not important to you, consider instead a plush, comfortable sofa-style daybed, similar to the one shown here. This type of daybed can be used as a couch for movie watching; simply make it up with sheets when a guest is visiting.

Daybed: Restoration Hardware Baby & Child

Beach Style Bedroom by Beach Dwellings
Beach Dwellings
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Design idea: Custom bunks over bed.

Why: If you would like to be able to fit more guests and have a guest room large enough to handle it, this is a smart way to sneak in extra beds and storage in one design move.

How: Work with a contractor or designer to come up with a plan that makes the most of your space. In a smaller room, you may go with a single bunk over a double bed; a larger room may be able to handle a pair of double bunk beds over a queen- or king-size bed at ground level. If you decide to add lighting or outlets, you will also likely need to get permits for the work (and an electrician).

Cost: The final price tag on a custom project of this scope can vary widely depending on your needs, the size of your space and regional rates, but expect to pay at least $2,000 to $10,000 or more.

DIY option: Position a purchased upper bunk bed over your existing guest bed to squeeze in more sleeping space. To customize the look, paint the bunk and bed to match the wall color and coordinate the bedding on the upper and lower beds.

Traditional Bedroom by Thorp Design
Thorp Design
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Bunk room layout tip: If you are considering adding multiple bunk beds to your guest room, the size and shape of your space will influence the positioning of the bunks.

In a long, narrow room, try placing bunks on either side, with a walkway down the middle. In a square room, positioning the bunks in one corner, as shown here, can free up more room for storage.

Traditional Bedroom by Tamara Mack Design
Tamara Mack Design
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Design idea: Pair of beds.

Why: A pair of beds can make more sense than one larger bed. Twin beds can be pushed together if a couple comes to stay or left separate for a pair of kids. If you have the space, why not use two full-size beds? In a hardworking guest room, there’s no reason to leave a lot of space open when it could be put to use, and if your visitors tend to be older relatives, they may appreciate having a traditional bed rather than a bunk or Murphy bed.

Budget tip: If you are looking for beds on a budget, consider skipping headboards. A basic metal mattress frame can be found for under $100. Pair it with crisp linens, a bed skirt and a few plump pillows, and no one will care about the lack of a headboard.

How to get a high-end headboard look for less

Transitional Bedroom by Sasha Meredith Designs
Sasha Meredith Designs
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Layout tip: If your guest room has a sloped ceiling or another challenging architectural feature, consider tucking the bed in there. What could have been an unusable area will be a charmingly cozy spot in which to slumber.

Browse more photos of attic bedrooms

Transitional Bedroom by Thorp Design
Thorp Design
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Small-space layout tip: If you have a compact guest room, it’s important to position the bed properly for optimal flow. One easy way to do this is by marking out the area where the bed will go on the floor using painter’s tape. Try opening the door and walking all around the bed area to check if there is enough space to move freely. It’s OK to tuck a small bedside table behind the door if you are tight on space (as shown here), but ideally nothing should impede the door swing and the path around the bed. If you simply can’t make the layout work using your painter’s tape mock-up, that could be a sign you need to use a smaller bed.

See 10 tips to make a small bedroom look great

Rustic Bedroom by Jodi Fleming / Fleming Distinctive Homes
Jodi Fleming / Fleming Distinctive Homes
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Guest room checklist: Once you have your guest bed(s) chosen and the layout right, it’s time to stock up for visitors. Here are some things to make your guests’ stay a pleasant one:

  • Fresh bedding, including a mattress topper or pad for comfort
  • An assortment of pillows, from soft to firm
  • Bedside lighting and an alarm clock
  • A door that closes and latches
  • A place for luggage
  • Window coverings that provide privacy
  • Fresh towels and extra toiletries
  • A card with your home’s Wi-Fi password and a power strip for charging devices
  • A small table and chair
  • A notepad and pens
  • A carafe or bottle of water
  • A chocolate bar and some nuts for late-night snacking

Originally published on HOUZZ, by Laura Gaskill

How to Prepare for a Power Loss

“If you haven’t already had power go out this Summer, than you probably need a little reminder of what to have in preparation for a big storm.  Much of this you can do anytime of the year, but it will really come in handy in the Winter when you have more warning.”
Denise Buck & Ed Johnson – DC Metro Realty Team
You probably know the ominous feeling: As a storm or hurricane sweeps through your community, you’re huddled safe at home or in a nearby shelter … and without warning, the lights all flicker and die. You’ve lost power, and experience says it could be a while before you get it back. What do you do now?

If you’re one of the lucky folks who has a generator, the going won’t be so bad, and you can live in relative comfort until the power’s back on. But generators can be expensive, beyond the reach of many of us. If a storm is coming and you could be facing days or even weeks without electricity, these steps can help you make it through.

Eclectic Kitchen by Westborough Design Center, Inc.
Westborough Design Center, Inc.
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Plan early. When a big storm is bearing down, there’ll be a run on water, propane, portable lanterns and other essentials at local stores. Keep as many of these items as possible on standby so that you don’t get caught in the crush or, worse, face a shortage.

Stock the pantry. Have on hand nonperishable goods that offer plenty of protein and other nutrients and can be eaten cold: peanut butter, whole-grain crackers, energy bars, beef jerky, dried and canned fruit and so on. Make sure you have food, litter and other supplies on hand for pets as well.

Don’t forget to keep a manual can opener nearby. And stockpile plenty of bottled water or water in jugs for drinking.

Make or buy extra ice. When you know there’s a storm headed your way, load up on bagged ice from the supermarket or fill zip-top plastic bags with water and freeze them to create cold packs. Use them in the fridge, the freezer and coolers to keep milk, meat and other perishables at a safe temperature as long as you can.

Get prescriptions filled. If you’re running low on medication and the power is out at your local pharmacy, you could be in a bind. Get your next refill and keep it handy.

Eclectic Outdoor Grills by Crate&Barrel
Crate&Barrel
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Weber Performer Grill – $349.95
Get your grill ready. If you can’t use your stove, you’ll want an alternate way to cook. For gas grills, have extra propane tanks on hand; if the grill is connected to a natural gas line that may be affected by the storm, it’s worth buying or borrowing a charcoal model. Lay in a supply of charcoal, in watertight containers to keep it dry if necessary.

Remember to grill outdoors only; don’t be tempted to bring the grill inside, no matter how cold or wet the weather is. In a pinch you can channel your scout days and fashion a makeshift oven. Use the oven outside, away from any flammable surfaces, and extinguish the coals promptly after cooking.

Know where your lanterns and flashlights are. It’s a good idea to keep at least one or two in an easy-to-reach spot on every floor of the house. Consider flashlights that are powered by winding or another nonbattery method.

Charge your phone and other electronic gadgets in advance. Then use them as sparingly as possible; power them down or off when you don’t need them. If you have car chargers, you can top off the charge periodically when necessary. And while we’re talking about cars, fill your gas tank well before the storm hits.

More ways to stay charged and connected when the power goes out

Electric Fans by Bed Bath & Beyond
Bed Bath & Beyond
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O2-Cool Battery-Operated Fan, Black – $29.99
Get laundry done. Your washer and dryer won’t work while the electricity is out. Wash as many loads as you can before the storm so you won’t run out of clean clothes while the power crews do their thing.

If necessary, have a portable heating or cooling source. In hot climates or in the middle of summer, you may not have air conditioning; in winter, you could be without heat for a while. Buy a few inexpensive battery-operated fans (and plenty of extra batteries) and/or propane heaters. If you have a wood-burning fireplace, be sure there’s plenty of firewood to fill it.

With propane heaters, safety is key — they’re not designed for small or poorly ventilated spaces. Use them in your largest room and don’t run them continuously; use them only to keep the room warm enough to avoid compromising your health. Stay bundled up in sweaters, hats, gloves, extra socks and blankets.

Also, know when to cut and run. If you’re not able to keep the house cool or warm enough for all family members to stay safe, go to a nearby hotel or shelter, or travel to a friend or family member’s home in an area not affected by the storm.

Traditional Bathroom by Jones Design Build
Jones Design Build
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Conserve water. Fun fact: A typical family of four goes through almost 300 gallons of water a day, much of it hot. A gas water heater may work even when the power’s out. An electric one obviously won’t. Use hot water sparingly to make it last as long as you can, but without a heat source, it will begin to cool fairly soon. If you have to, you also could heat water on the grill or over the fire.

With well water, you’ll lose pressure if the pump switch won’t work. If you don’t have a supplemental storage tank built into your system or a portable generator that powers the pump, fill big tubs or your bathtub with water that you can dip into for flushing toilets or sponging off. Never drink well water during or after a power outage until you’re certain it’s not contaminated.

If you have a generator, offer to help. Do what you can to make life easier for others in your community. Let neighbors charge phones or take a warm shower, or prepare hot food to deliver to elderly residents or families with young kids. Should you have Internet access, you can even use the power of social media to spread the word about people in your area who may be in need of immediate assistance.

Originally published on HOUZZ by Lisa Frederick, HOUZZ Contributor

Making the Most of Your Hallway

“Hallways comprise the most under utilized square footage in many homes.  Here are some interesting ideas of how to get more use out of this space.”
Denise Buck & Ed Johnson – DC Metro Realty Team
How hard does your hallway work? If it does little more than provide a way to get from point A to point B, consider if you could use your hall for something more. From simple DIY wall-mounted storage to custom bookshelves and built-in workstations, here’s how to get the hardworking hallway your home deserves.

Hardworking space: The hallway
The challenge: Hallways connect rooms but often lack a dedicated function of their own. In a hardworking home, every inch of space counts. Make sure your hall does its part by incorporating smart storage features that fit your home and your budget.
Good to know: When weighing options for modifying your hallway, keep in mind that it’s important not to shrink your hallway to less than 36 inches wide, for accessibility and comfort.

Transitional Hall by Maison Fine Homes & Interior Design
Maison Fine Homes & Interior Design
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Design idea: Add wall-mounted cabinets.

Why: Add storage with slim cabinets without building into the wall. Unlike ceiling-height storage, wall-mounted cabinets allow room to hang artwork on the wall above and allow a bit more breathing space in a narrow passageway.

How: Off-the-shelf versions can be purchased from local home improvement stores or Ikea, for DIY or pro installation. For tricky spaces or to achieve a specific look, hire a cabinetmaker to design and install custom units.

Cost: Prefabricated cabinets for DIY installation can cost $200 to $500 and up. You can expect to hire a handyperson for two to four hours of work for a small to medium-size hall, at a rate of $30 to $125 per hour, depending on rates in your region and the person’s experience and qualifications. Custom cabinetry can cost $400 and up per linear foot, including installation.

DIY tip: Before purchasing cabinets, carefully measure your space, taking into account the door swing needed for the cabinets to open.

Contemporary Hall by nARCHITECTS
nARCHITECTS
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Design idea: Make a hallway library.

Why: Siting a book collection in the hall makes for great storage possibilities and easy perusing. From simple ready-made shelves to a custom design solution, bookshelves are one of the most versatile yet straightforward hallway upgrades.

How: For a custom built-in like the one shown here, hire a carpenter or cabinetry professional to craft bookcases that fit your hall (and your book collection) exactly.

Cost: Custom bookcases for a hall can cost $2,000 to $4,000 and more, depending on the size of your hall, local rates and the choice of materials.

Eclectic Hall by HBF plus Design
HBF plus Design
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More custom options: If your hall has windows, consider using the space below for built-in window seats, with or without hidden storage. Slender bookcases between the windows can be outfitted with sconces to provide light, making the hall an inviting reading spot. Note that if you will be adding or moving electrical work, you will probably need a permit.
Transitional Hall by Lindsey Runyon Design
Lindsey Runyon Design
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DIY solution: For a fast, budget-friendly hallway upgrade, add wall-mounted floating or bracket shelves. Shelves are available in different widths.

How: Use a stud finder to locate the wall studs and mark them with a pencil. Using a level and pencil, mark where you want each shelf to be before you begin. Try to attach at least one shelf support on each shelf to a stud— if you can’t get fasteners into a stud, get appropriate anchors for your wall type (ask at a hardware store).

Cost: Floating or bracket shelves can cost as little as $5 apiece and up to $100 or more, depending on the size and material. For a semi-DIY option, you can purchase the shelves and then hire a handyperson to install them, at a rate of $30 to $125 per hour. An experienced pro should be able to install a simple set of shelves in about an hour.

8 Beautiful Ideas for Floating Shelves

Shabby chic Hall by Rikki Snyder
Rikki Snyder
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Design idea: Platter storage and display.

Why: A wall-mounted plate rack can provide overflow storage for dishes and platters, and can take the place of wall art.

How: Plate racks can be purchased ready made or built from scratch by a carpenter or handyperson. If you’re installing plate racks yourself, locate a wall stud and attach the plate rack to a stud in at least one place if possible. If you cannot attach it to a stud, ask a staffer at a local hardware store to advise you about the best anchor for your walls.

Cost: Plate racks cost from $50 to $200 and up. Expect to pay a carpenter from $250 to $400 and up to design and construct a custom plate rack for your hall.

Traditional Home Office by Legacy Custom Homes, Inc.
Legacy Custom Homes, Inc.
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Design idea: Add a recessed workspace.

How: You may not be able to add a recessed desk to a typical hall wall, unless the wall already contains a closet, in which case there could be some hidden space there. Have a contractor take a look to find out what your options are. If your hall is wide enough, you may still be able to add a built-in desk, even if it can’t be fully recessed.

Transitional Hall by Anthony Wilder Design/Build, Inc.
Anthony Wilder Design/Build, Inc.
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Where this works: Entry halls and other passages that get a lot of traffic are not the best choice for a workspace, unless the hall is exceptionally wide. A better spot is a hall located off the kitchen, or in a rear area of the house with lower traffic. In this hall a small workstation is tucked beside a hall closet around the corner from the kitchen, providing a convenient workspace and storage above.

Cost: The cost of adding a hallway workspace is similar to that for custom bookcases — from $1,200 to $4,000 and up, depending on the size of your hall, local rates and the choice of materials.

Traditional Closet by Dijeau Poage Construction
Dijeau Poage Construction
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Design idea: Boost clothes storage.

Why: Whether you have limited bedroom closet space or have a large collection of clothes or shoes overflowing from your regular closets, customizing a hallway to accommodate wardrobe needs can be a big help.

How: Depending on the size of your hallway and your storage needs, the clothes storage zone can be as simple as a few valet rods or as complex as a fully custom storage system. If you will be outfitting the space yourself, look for components that look good on display.

Cost: Individual closet components for DIY installation can cost between $50 and $300 per piece. Custom storage varies in cost depending on the materials used and the pro’s experience and location, but can run $1,200 to $5,000 or more.

Contemporary Hall by aamodt / plumb architects
aamodt / plumb architects
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Design quandary: Open or closed storage?Open storage (as in the last photo) has the advantage of being easy to access and a boon for visual organizers. If your hall is in an area with lower traffic, open storage can be a good choice. For areas that get more foot traffic, consider closed storage because it has a neater, sleeker look. The hall shown here got a major storage boost with closed closets, while a full-length mirror provides a convenient outfit-checking spot.
Modern Hall by Sigmar
Sigmar
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Design idea: Wine storage niche.

How: Install a wine rack in an existing hall niche to house a growing collection of bottles, or have a new niche made specifically for the purpose. If you’re using an existing niche, measure carefully. Depending on the dimensions of your niche, you may be able to use ready-made wine racks; otherwise hire a carpenter or handyperson to craft a wine rack to fit your space.

Cost: Ready-made wine racks can be purchased for $20 to $100 and up per piece. If you need to have a new niche created, expect to pay a carpenter $300 to $500 and up.

Bathroom Designs that are Trending in 2015

“Beautiful Bathrooms are hot right now.  Seems that everyone wants something more than just the builder grade basics.  Here are some interesting ideas that are trending for 2015.”
Denise Buck & Ed Johnson – DC Metro Realty Team
If you’ve been thinking about giving your bathroom an overhaul but aren’t sure how, one way to start is to look to the latest design trends for inspiration. We’ve made it our mission to find out what design ideas are expected to make a splash in 2015 to help make planning your bathroom makeover project a little bit easier. To compile our list, we enlisted the help of four award-winning designers, who share here their predictions for the looks, finishes and features they think will be on everyone’s radar next year. They also reveal how they would work these ideas into their own projects.
Contemporary Bathroom by Roselind Wilson Design
Roselind Wilson Design
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1. Feature floor tiles. Statement-making floor tiles proved popular in 2014, and this striking look doesn’t appear to be leaving in a hurry, says interior designer Jasmine McClelland. “I have done a couple of feature floor bathrooms this year. They are stunning and provide a great design opportunity when working with challenging bathrooms that have no clear walls for a feature wall,” she says.

“In smaller bathrooms a feature floor tile adds style without overwhelming the space, and when used in a larger bathroom, the effect is elegant,” McClelland says. “I love the space when the freestanding bath hits the feature tile … beautiful!”

Contemporary Bathroom by Mark Brand Architecture
Mark Brand Architecture
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2. Natural beauty. Want a bathing area that’s welcoming and serene? Then drawing design inspiration from nature is a great way to warm a typically very hard room of the house and infuse the space with a calming vibe. It’s one of the key bathroom trends of 2015, according to designers Simona Castagna and Darren Genner of Minosa.

An easy way to incorporate this trend into a bathroom design, Castagna and Genner say, is to introduce earthy materials like natural stone or wood-look tiles. The luxe bath seen here features marble floors and an onyx countertop, as well as a walnut-plank feature wall.

Contemporary Bathroom by Janet Paik
Janet Paik
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3. Plant life. “I know some of us have been scared off indoor plants … but it’s time to reclaim the idea of indoor plants with cascading creepers that can dress any bathroom,” McClelland says.

If you’re eager to try this trend in your bathroom but want a more sophisticated and design-savvy alternative to potted plants (hanging or not), a vertical garden may be the way to go, McClelland says.

“I love them for the interest and feel they bring to a bathroom and can’t wait to use them more in my designs for 2015,” the designer says. Another benefit of green or living walls is that they are good for the environment (as well as your health and well-being), she says.

Modern Bathroom by MINOSA
MINOSA
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4. The master suite retreat. Is your master bathroom cramped, not particularly inviting and tucked away out of sight? Then you may be more than happy to try this design trend when renovating your home.

Castagna and Genner say people want bigger bathrooms that are connected to the bedroom or closet, or even more open to the bedroom. People want to see their beautiful basins, custom vanities and freestanding baths from the bedroom, say the designers, who were the team behind the luxe, open-plan bedroom and en suite pictured here. They’re also using bigger sliding doors so people can open up or close off a space.

Contemporary Bathroom by Jordan Smith
Jordan Smith
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5. Clever water control. Say goodbye to basic shower and basin faucets, and hello to smart, user-friendly fixtures (such as thermostatic mixers; mixers that control multiple water sources, like the one used in this shower; and touchscreen-operated showers) that give users more control over the flow, mix and temperature of water, says Adelaide, Australia, interior designer Jordan Smith of Brilliant.

“Double showers would be a good place to use this, as multiple people can use the shower at the same time, with individual settings for their own shower,” Smith suggests when explaining how she’d incorporate this trend into one of her designs. “One mixer can control both multiple showers or a combination shower-bath.”

Contemporary Bathroom by Jasmine McClelland Design
Jasmine McClelland Design
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6. Freestanding bathtubs. According to McClelland, our love affair with freestanding baths isn’t over just yet, and not just because they make striking, sculptural design features, but because they help set the mood for rest and relaxation too. “The freestanding bath is more than aesthetic — it is emotive,” the designer says. “Clients connect with the possibility of a bathroom that symbolizes their own space or downtime, and a freestanding bath inspires this feeling of self-indulgence in the midst of a busy life.”

When choosing a freestanding bath, consider how the design of the tub will shape the look of your space. “The curve of a bath can bring softness to an angular bathroom, or an angular bath can offset soft colors or add to a highly structured bathroom,” says McClelland, who designed the Asian-inspired bathing area here.

Tub: Haven, Apaiser

Traditional Bathroom by Austin Patterson Disston Architects
Austin Patterson Disston Architects
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If you want the look of a freestanding bath but the benefits of a built-in tub (such as a ledge for stowing bath essentials like soap and shampoo), consider incorporating a semi-inset stand-alone bath, says designer Owen Barnes of Bubbles Bathrooms in Melbourne, who predicts this setup will prove popular with homeowners in the year ahead.

According to Barnes, this crafty configuration also allows freestanding tubs to be used in compact bathing areas (as you can see here), which may otherwise be too small to fit a stand-alone bath. And you can pair them with a wider range of fixtures too.

Tub: Astonian Luxor in Periwinkle, Aston Matthews

Modern Bathroom by MINOSA
MINOSA
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7. Custom vanities. People now want custom vanities — made for them and their needs, rather than mass produced, say Castagna and Genner, who designed this bathing zone. The glam space features a floating vanity custom made to suit the aesthetics of the sleek, contemporary design scheme, provide plenty of storage and enhance the illusion of spaciousness.

“The good old shaving cupboard is also making a resurgence,” the designers add. “We’re also using a lot of drawers and smart technology, such as doors that lift up and move out of way, which make good use of storage.” As you can see here, these design elements have also been incorporated into the design of this elegant bath.

Double sink: Corian, Minosa; tile: Swarovski crystal/glass mosaic in White, Bisazza

Contemporary Powder Room by Jasmine McClelland Design
Jasmine McClelland Design
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8. Geometric tiles. Another major design trend for the bathroom is geometric tiles, according to McClelland. While the designer has already used geometric tiles in a few projects she’s worked on this year, she predicts the eye-catching look will become even more popular in 2015.

According to the designer, geometric tiles are a great design solution for those who wish to add depth and visual interest to a plain, neutral space, but without the use of bright, arresting tones. And for those who aren’t color shy?

“For clients who are prepared to venture out, there are no limits to color combinations or random color placement to really showcase and lift a bathroom,” says McClelland, who designed this attention-grabbing powder room. Take note of how the bold red geometric tiles infuse this room with a hearty dose of high-impact drama, energy and tactile appeal.

Modern Bathroom by DeForest Architects
DeForest Architects
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9. Bigger showers. Is bigger better? According to Castagna and Genner, that’s certainly the current school of thought when it comes to the shower, and they believe the trend will become even more popular in 2015. They’re seeing more walk-in showers with oversize panes of glass or solid walls that completely enclose the space, rather than bathrooms with tiny cubicles.

Why do they think there’s a move away from more compact showering areas to ones that are more generous in size? Larger showers are spaces for rejuvenation and wellness, they say.

Contemporary Bathroom by Roth Architecture
Roth Architecture
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If you’d prefer a shower that’s large but offers more privacy than a fully open walk-in shower or one with a partial glass screen, look to the fresh, fun bathroom here for design inspiration. Note how the lowered walls help create a private, intimate pocket where the homeowners can shower in peace, but don’t make the bath zone feel too closed in or take away from the room’s airy, spacious vibe.
Contemporary Bathroom by Dane Cronin Photography
Dane Cronin Photography
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10. Sustainable style. Barnes is also seeing more recycled, reclaimed and upcycled materials and products being used in the bathroom, a design idea that he predicts will become even more popular in 2015. Why? “It follows the general trend in building globally, and it looks really good when done properly,” the designer says, adding that the growing awareness surrounding sustainable living is another reason this trend will continue to rise.

Interested in incorporating this trend into your new bathroom? Consider using reclaimed wood in your design (for example, this eclectic-meets-rustic bathing zone features a reclaimed-wood feature wall); recycling materials from your existing bathroom that still hold up in terms of functionality and style; or upcycling an antique dresser or cabinet by transforming it into a vanity.

Modern Bathroom by James Dawson Interiors
James Dawson Interiors
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11. Bathrooms that reflect the rest of the home. A design trend that Smith predicts will be big over the coming year and beyond is a move toward bathing zones that are designed in a way that makes them look and feel like an extension of the living room, rather than a traditional bathroom.

“The bathroom seems like it’s becoming more of a feature of the house,” Smith says. Integrating freestanding baths, unconventional fixtures and vanities that resemble furniture (such as a dresser, like the leggy, custom-designed vanity seen in this elegant bathroom) are just a few ways to work this trend into your bathroom design.

Transitional Bathroom by Snake River Interiors
Snake River Interiors
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Adding living room furniture and decor to your bathroom will also allow you to achieve this look and personalize your space. The welcoming bath area here shows how it’s done — the patterned floor runner, well-loved leather lounge, wall art, side table and elegant light fittings (including a chandelier and wall sconces) are key to this bathroom’s warm, calm and inviting living room–like vibe.
Contemporary Bathroom by Bubbles Bathrooms
Bubbles Bathrooms
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12. Gray tones. Gray has been a popular color choice for the bathroom in 2014, and it’s a trend that is sticking around, according to Barnes. If you’re worried a gray palette will make your bathroom feel flat and lifeless, introduce slicks of white to cut through the moody hue and create a sophisticated look. Or take design cues from this shower area and energize the design by adding a splash of bold, eye-popping color, which takes shape here in an earthy orange-bronze mosaic tile feature wall.
Contemporary Bathroom by MINOSA
MINOSA
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13. Engaging lighting. Castagna and Genner predict that the use of smart, intuitive and engaging lights in the bathroom will become a key trend for 2015. “Bathrooms and kitchens are fixed and fitted — once you screw something to a wall or tile a floor, they’ll be there for a very long time, so it’s important to be not too trendy,” the designers say. “Be smart about your decisions and layer things well — for example, with good lighting.”

What smart lighting solutions do Castagna and Genner recommend for the bathroom? “People want bathrooms that engage them, so they may want an accent light, a feature light or a sensor light that lights up their vanity or shaving cabinet once someone walks in,” they say.

Sink fixtures: Gessi Goccia, Retreat Design; wall covering and Antonio Lupi shower base system: Corian; flooring: engineered oak,Salvage

Modern by Brilliant SA
Brilliant SA
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For a more dynamic look, consider introducing colored LED lighting. This contemporary bathroom features a color-changing backlit vanity that instantly lifts the look and mood of this space, as well as an LED rainfall showerhead.

Countertop: Concetto in Gray Agate, Caesarstone

Transitional Bathroom by Stacey Kouros Design
Stacey Kouros Design
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14. Grout as a design feature. “Grout is no longer purely a mundane, if essential, element of pulling a bathroom together,” says McClellend. “People are seeing the possibility of using grout creatively in their bathrooms to show off the pattern of how a tile is laid, highlight specific tile types and use contrasting grout as a great modern spin on the traditional subway tile.”

While McClelland loves the striking pairing of black grout and white tiles (as seen in this space), she predicts that colored grout alongside geometric shapes will become popular in 2015.

The Perils of Retirement at 65

65 Candles

“When to retire?  It’s a question we ask ourselves, and have probably come up with several different answers over the years.   Here are some things to think about when making that decision.”

Denise Buck & Ed Johnson – DC Metro Realty Team

Age 65 is the year we traditionally associate with retirement, but this age is declining in significance. Only one major retirement benefit still kicks in at this age, and plenty of people aspire to retire at both earlier and younger ages. Here’s a look at why age 65 no longer resonates as a target retirement age:

[See: 10 Numbers Everyone Should Know About Social Security.]

You won’t qualify for full Social Security benefits. While you can begin Social Security payments as early as age 62, you won’t get the full amount you have earned unless you sign up at your full retirement age. The full retirement age used to be 65 for people born in 1937 or earlier, but has since been increased to 66 for most baby boomers and 67 for everyone born in 1960 or later. If you claim your Social Security benefit at age 65 you will get a reduced monthly payment compared to waiting until your full retirement age. For example, a worker born in 1965 will get 13.3 percent smaller monthly payments if he signs up at age 65 instead of waiting until his full retirement age of 67. Spousal benefits are also reduced if you claim them at age 65. While spouses are entitled to 50 percent of the higher earner’s benefit payment if it’s more than they can get based on their own work record, if you begin receiving spousal payments at age 65 you will get only 41.7 percent of the higher earner’s payments.

You have a small window in which to sign up for Medicare. Perhaps the most compelling reason to retire at age 65 is Medicare eligibility. Once you turn 65 you no longer need to hold on to a job for the health insurance coverage. You can sign up for Medicare beginning three months before your 65th birthday and start coverage the month you turn 65. It’s important to sign up during the seven-month window around your 65th birthday, because your Medicare Part B and D premiums can be increased if you enroll later. Beginning the month you turn 65 there is also a six-month Medigap enrollment period during which you can buy any Medigap policy sold in your state. If you don’t sign up then you could potentially be charged significantly higher premiums or even denied coverage. If you are still working at age 65 and have a group health plan through your or a spouse’s job, you should sign up for Medicare within eight months of leaving the position or health plan to avoid the higher premiums.

[See: 10 Ways to Make the Most of Medicare.]

You can start retirement account withdrawals, but aren’t forced too. At age 65 you are old enough to avoid the early withdrawal penalty on 401(k) and IRA distributions. The 10 percent penalty is typically no longer applied to retirement account withdrawals once you turn age 59 1/2. However, you will have to pay income tax on your withdrawals from traditional 401(k)s and IRAs. But 65-year-olds are not yet required to withdraw money from their traditional retirement accounts. They can continue to defer income tax on their savings and let the money grow for another five years. Distributions from traditional IRAs and 401(k)s become required after age 70 1/2, and a 50 percent penalty is applied to missed distributions.

The length of retirement. If you retire at age 65 and live until 90, you will be retired for 25 years. It can be incredibly difficult to save up enough to pay for over two decades of leisure time. You will also need to manage your money so that it will last throughout that entire period of time, which could include inflation, stock market volatility and health problems or other emergencies that require you to dip into the principal. Working even a year or two past age 65 gives you more time to save, your investments more time to grow, increases your monthly Social Security benefits due to delayed claiming and shortens the period of retirement you need to pay for.

[See: 9 Important Ages for Retirement Planning.]

If you’re working primarily for the health insurance you get through your job, retiring at age 65 when Medicare eligibility kicks in can make sense. But if you’re interested in timing your retirement closer to the year you max out your Social Security benefit or are required to take retirement account withdrawals, you’ll probably need to pick an alternative retirement age.

By Emily Brandon, originally appearing in US News and World Report

Make Your Concrete Patio Beautiful

Concrete Patio
“You’ve got a nice backyard, but you’ve also got a concrete patio outback that is plain and boring  and you really don’t know what to do with it.    Several of these ideas are very simple enhancements that can be used to transform a concrete patio.  With just a little planning and creativity you can create a comfortable and inviting outdoor living space.”
Denise Buck & Ed Johnson – DC Metro Realty Team
Removing concrete can be expensive, because it has to be broken up (labor cost) and then hauled away (disposal fee). Instead of starting entirely from scratch, try to work with what you’ve got on hand to change how your concrete patio looks.

If your patio simply can’t be refurbished because it is severely cracked or is not sloped well for drainage, learn how to tear down a concrete patio.

Rustic Exterior by Tile & Stone Pro
Tile & Stone Pro
1. Refinish the surface. Shown here is a concrete patio and walkway in the process of receiving an acid-wash stain. There are multiple ways to refinish a concrete surface through stains, scoring and additional paving. Stains can be a DIY project if you are handy at home improvement. Scoring and adding pavers should be done by a professional.

The surface treatments here are for concrete that has already been fully cured.

  • Stain: Stains for concrete work by breaking into the surface of the paving and altering the color and/or texture. Essentially, they weaken the surface and require a sealant over the stain so that the paving doesn’t degrade.
  • Scoring pattern: Scoring patterns are made simply by cutting into the concrete about ¼ inch. The cuts make a pattern across the paving that give the field of concrete a visual rhythm. Popular scoring patterns include grids, diamonds and repeating lines.
  • Paving veneer: It is possible to add pavers over your existing concrete, so long as the finished height of the paving does not pose any hazards with drainage or walking. The construction detail uses the concrete as a foundation, and the pavers are mortared to the concrete base. Pay attention to how the paving’s added thickness affects the edges of your patio so that all of your stairs and walkways match up at the proper height.

A safety note about finishes: When choosing a stain or sealant, you want to maintain a nonslip surface outdoors. Therefore, most interior concrete finishes are not suitable for a landscape patio, because they become too slippery after a rain. If you are going the DIY route with stains and finishes, be sure to use only what’s formulated for outdoor use.

Contemporary Patio by Mary Prince Photography
Mary Prince Photography
2. Add walls. Creating a low wall around a patio changes the space into its own contained outdoor room. It’s a different feeling from a wide-open patio. In the space seen here, the patio feels more like a lookout to the lower terrain in the background. The wall, which looks to be a veneer over concrete, acts as an intermediate visual frame between the private patio space and the exposed landscape beyond.

Don’t want to commit to building a wall? Try a trellis with vines or an outdoor screen to create an enclosure and privacy.

Contemporary Patio by Hart Wright Architects, AIA
Hart Wright Architects, AIA
3. Change the light. This patio is framed by a stunning house and a gorgeous landscape, but look at how the concrete patio comes to life as dappled shade dances on the surface.

Think about how you can change the natural light, or add downcast lights to give your patio a different character at night. Create shade to make a patio that’s blinded by full sun feel more inviting. Brighten a dark, gloomy patio by bringing in more natural light or adding low-glow lights for nighttime.

Contemporary Patio by Huettl Landscape Architecture
Huettl Landscape Architecture
4. Frame it out with a pergola. Similar to changing the space with a wall, a pergola or another overhead structure can help to enclose the space. People enjoy being in nooks that feel cozy and private.

Look at your patio and see how it can be framed overhead. This will also work to your advantage in changing the natural light. An overhead trellis creates its own pattern of light and offers the opportunity to support flowering vines, lights, a ceiling fan, speakers for music and more.

Contemporary Patio by Leslie Glazier @ Properties
Leslie Glazier @ Properties
5. Change the edge. The edge of this precast concrete paver patio has been cut to be curvy. Concrete that’s in good shape and has no major cracks can be cut with a circular saw to change the edge. This means that you would have just a portion of it removed to create a different geometry. A changed edge, combined with a new type of planting, like added flower beds or new trees, will make the concrete patio feel like a new space.
Contemporary Patio by Goforth Gill Architects
Goforth Gill Architects
Bonus: Add friends and family. What’s so special about the patio pictured here? It has a few basic elements: a grid scoring pattern, a low seat wall and a minimalist sunken fire pit. Other than that, it has some really basic movable outdoor furniture and a nice view.

A great outdoor patio is a place for people to gather and spend time in. So, the simplest tweak is to bring out the lawn chairs and the grill and have a party. You’ll love your patio then.

By Falon Muhalic, Houzz Contributor, Landscape architect

Originally appearing in HOUZZ

New Homeowners – Don’t Spend Money Here

Moneydowndrain

“We love helping our buyers, but especially our first-time buyers.  We want to get them started on the right path so they get the most for their 1st big purchase. Here are some things to try and ‘NOT’ spend money on when you are a New Homeowner.”

Denise Buck & Ed Johnson – DC Metro Realty Team

 

You’ve just moved into your first home. For the first time in your life, it’s all yours – no more landlord, no more renting, no more leases.

It’s an exciting time, but it’s also a time filled with a lot of sneaky expenses new homeowners often aren’t prepared for. Add those new expenses to the expensive monthly cost of a mortgage, insurance, property taxes, homeowners association fees, and so on, and it’s not hard to see a budget pushed to the breaking point.

Here are six expenses new homeowners often face that can easily be reduced or eliminated with some smart choices.

Expensive home furnishings. Often, a person’s first home is much larger than the places they’ve lived in before. For example, my wife and I moved from a tiny two-bedroom apartment to a three-bedroom house with twice the square footage, and it seemed enormous.

That leaves a person with a lot of empty space and the tendency is to fill that space with new furnishings. Many homeowners follow their first day in a new home with a day at the local furniture store, often buying more new furniture than they can afford.

If you’re considering new furnishings, give it some time first. Buy low-end items if you really want to fill the space, and then gradually replace them as your savings allows. Don’t fill up your credit card with expenses from the local furniture store.

Private mortgage insurance. Many first-time homebuyers are saddled with this terrible expense that comes from buying a home without a 20 percent down payment. Often, this adds $100 or more to your monthly mortgage payment with nothing in return.

Get rid of this as soon as you can. The best possible time to make a few extra mortgage payments is in the first few years of the mortgage. You’ll not only get rid of that PMI early, you’ll also greatly reduce the lifetime interest you pay on your mortgage.

Appliance insurance. Many new homeowners are offered a “deal” on appliance insurance, in which they pay some insurance company a certain amount each month to “insure” their appliances against natural failure.

Why is this a bad deal? It’s far more expensive than just saving that same amount in a savings account. Rather than buying an unnecessary insurance policy, simply put an amount equal to the monthly premium into a savings account. Within a year, that savings account will cover any necessary appliance replacements.

Lawn care services. The idea of a lush lawn outside of your beautiful new house sounds appealing, and lawn care services know that. They’ll hit you hard right after you move in, showing you gorgeous images of what your lawn might look like.

In essence, they’re just charging you a lot for what you could easily do yourself with a bit of fertilizer, a bit of natural herbicide and a simple dispenser. It costs far less per year to care for your lawn yourself, and it doesn’t take much time, either.

You may decide later that you do want the service because it will serve your lawn better than what you can provide. That’s fine, but find out what you can actually do first. You’ll probably find you can handle it well on your own.

Energy inefficiency. Like it or not, energy inefficiency is a real expense for new homeowners, and it’s often one they overlook. Newly purchased homes often come with cheap, inefficient light bulbs in the sockets. They also often come with older windows and walls that offer poor insulation. On top of that, homes that aren’t air sealed allow warm air to escape in winter and cool air to escape in summer.

One of the most important things you can do to curb your future expenses as a new homeowner is to perform an energy audit on your home. There are many guides to performing do-it-yourself energy audits online, like this one from the Department of Energy. Finding areas where your home is energy inefficient, and fixing those issues sooner rather than later can save you a lot of cash.

Insurance. In the rush to buy a home, many homeowners fail to adequately shop around for homeowners insurance. Instead, they just get a policy from the group recommended by their real estate agent, who is often just helping an insurance salesperson who happens to be a friend.

As soon as you’re settled, take some time to shop around for homeowners insurance. If you spend that time effectively, you can usually knock as much as 30 percent off your insurance premium, which is a lot of cash back in your pocket.

Taking some smart steps when you first move into your home can cut your bills and minimize your expenses for the time you own that house. Make these smart moves now, and your wallet will be happy.

Originally published on Yahoo! by Trent Hamm

How to measure Returns on Investment Property

Calculator“Buying a rental property can be a great way of getting a strong return on investment (ROI).  What you may not realize is that you don’t have to be an ‘All Cash’ investor to get a good return on your money.  In fact, if you finance your purchase the ROI is even greater because you are leveraging your investment.  Here are a few things know when considering how to invest.”

Denise Buck & Ed Johnson – DC Metro Realty Team

 

Appreciation and tax savings are legitimate contributors to an overall rate of return on rental real estate but what if you didn’t consider them at all. If you only looked at one or two, very conservative measurements, you might decide to invest especially knowing that there are more benefits that will accrue to your investment.

If we bought a property for cash, collected the rent and paid the expenses, the amount left would be called Net Operating Income. In the example below, if would generate $7,200 a year which would be a 7.02% cash on cash rate of return which is considerably higher than the current 10 year treasury rate of around 2.3%.

If we place a mortgage on that property, the rate of return actually increases due to leverage. After the principal and interest are paid, the net operating income obviously decreases but the cash on cash rate of return increases to 9.10% because the borrowed funds means less cash invested.

Another contribution to the investment’s rate of return occurs with the mortgage due to amortization: the principal reduces with each payment made which increase the investor’s equity. In this example, the equity build-up divided by the initial investment yields a 5.25% rate of return in the first year.

Single family homes for rental purposes offer the investor high loan-to-value mortgages at fixed interest rates for long terms on appreciating assets with tax benefits, reasonable control and an opportunity to earn higher than normal rates of return. Call if you’d like to talk about what kind of rental opportunities are available.

Equity buildup.png