Best Bet Home Improvements - Get the Most Renovation Bang for Your Buck!

Best Bet
If you're looking to improve the appearance of your home for resale, or you just want an updated look for your own enjoyment, there are a few things you must consider before beginning any costly project.

Sure, you can spend a lot on something purely for the personal pleasure of having it - like that outdoor Jacuzzi under the attached gazebo - or you can go the practical route and make an improvement that will increase your home's market value, such as installing energy-efficient air-conditioning or repairing those shabby shingles. Be forewarned, however, and don't expect to recoup your costs on both counts. Many real-estate brokers agree that just because you put $25,000 worth of improvements into your home doesn't mean that your house is worth $25,000 more!

Exactly how much of your investment you'll recoup depends on a number of factors, such as the "big picture" housing market, the value of the homes in your neighborhood, when you plan to sell and the exact nature of the improvement. Also, consider that the longer you live in your home after a project is completed, the less likely you are to recoup its value. Just try to convince a potential buyer that Harvest Gold is cutting edge.

Below are some examples of a few improvements that usually pay off - and some that rarely make a difference (no matter how much you paid for them) when it comes time to sell your home.

Painting
If you're planning to sell your home in a year or two, a fresh coat of a neutral-toned paint could make the sale easier. A professional exterior paint job may also recoup close to 75% of its cost. Let's face it - we all like things fresh-looking.

Kitchen
With just a few basic improvements, your kitchen can practically pay you back with interest! New paint, wallpaper and flooring are always appreciated; plus, you might even consider sanding, staining or painting worn-looking cabinets. Replacing old cabinet hardware is a low-cost improvement that makes a big difference in appearance. According to Remodeling magazine, the average spent on major kitchen-remodeling is around $39,000; refinishing an outdated one averaged $15,000. The full kitchen remodeling recouped 80% of its cost, the more moderate remodeling was valued at 87%.

Area Conversions
Generally speaking, increasing the functional space of your home holds its value longer than remodeling just to make a house look better. It's also much less expensive than adding an addition to your home. Converting attic space into a bedroom, for example, usually costs around $30,000 and returns about 73% of its cost, according to Remodeling magazine. Turning your basement into extra living space costs, on average, $40,000, with a recoup average of about 69% of your costs.


Extra Bathroom
You usually can't go wrong by adding an extra bathroom. At an average cost of $14,200, a new full bath can recoup 81% of its total cost!


Deck
Adding a deck is a very cost-efficient way to add square footage to your house. Decks cost around $6,000 and generally recoup 75% of their value. Compared to other outdoor improvements (except painting), that's an excellent return.


New Windows
Your utility bill savings may make up for the iffy resale value, however, a good set of standard windows should get you around 68% back. If you start getting too fancy with custom shapes and sizes, though, don't expect to get as much in return.


Swimming Pool
In a word - don't! Unless you're putting it in for you and your family to enjoy, it's commonly agreed that a swimming pool has no resale value at all. Reason #1? Sure, they sound nice, but pools are very expensive to maintain. Running a close second is the fear of pool accidents - that's something nobody wants to experience.


Picture-Perfect Gardens
Another nicety, but who's going to spend all that time - and money? If the potential buyer is not horticulturally inclined, chances are your floral handiwork won't add to the offering price. The same can be said for expensive fences and stone walls - they look nice, but buyers don't pay up for them.


Basic Is Better
It may not sound very exciting, but it's the basic improvements you make to your home that may have the greatest return on its value: a beautiful new bathroom won't make up for a leaky roof. So if you're thinking of selling your house in the next year or so, be sure to address any problems the home may have before you, say, install those sunken gardens you've always dreamed of.

New Construction vs. Existing Home?

by Cristina Callegari Kanellopoulos

New houses offer many advantages over existing homes. They are designed to accommodate the wishes and needs of today's homeowners as opposed to features that were popular many years ago. They will include the most requested features, such as Central Air Conditioning, Walk-in Closets, Open Living Space, Family Rooms, more Bathrooms and larger Bedrooms, for example. New homes are more energy efficient than older homes, and since everything is new (and usually under warranty), in the short-term there is less of a chance that the home buyers will spend money on costly repairs.

However, the quality and character of higher-end older homes simply cannot be compared to new construction. The craftsmanship, architectural details and materials that were used is superior to that of new/current construction.

Potential home buyers who prefer the idea of a new home, but do not have the time or budget for custom building, can satisfy their needs by purchasing a home built by a developer with a pre-determined design and specifications. Designs and specs are based on the developer's choices (not the buyer's). Depending on the developer the buyer may have some flexibility when selecting finishes, and cabinetry, etc.

In many parts of the country developers build large scale communities, in New York, however, this is extremely rare as there is very little undeveloped land left in the 5 boroughs (NYC, Queens, Brooklyn, Bronx and Nassau). In Queens and Nassau counties, for example, builders will often times buy homes in poor condition, tear them down, and re-build, or remodel and expand an existing home to the point where it is no longer recognizable.

Home buyers should not make the mistake of assuming that new construction is sound construction. You should do your homework, just as you would when buying a previously owned home. Investigate the builder, evaluate the location, get a through inspection, and negotiate for upgrades. Home buyers should feel comfortable with the builder before committing to a purchase. Whether through referrals, or personal research, the reputation of the builder should be checked carefully. A smart home buyer will visit other homes built by the same builder and should interview the homeowners, as durability of construction and homeowner satisfaction are extremely important.

From time to time you will find a group of homes, or a small-scale development in New York. However, they are often built on the developing edge of a neighborhood, so it is warranted to check the future plans for the community. Local zoning and planning departments may have a master development plan for the future development of an area. You should verify the school district and find out the general tax rate of the neighborhood.

It is also important to note that most new homes come with minimal landscaping, and it can cost the homeowner thousands of dollars to landscape. Most new homes also come with a basic level of finishes for carpeting, cabinetry and window treatments - do your research, sometimes it is cheaper to upgrade these features directly with the builder.

If you are considering a new home purchase give me a call today at 917-921-5397!

Tax, Mortgage and Credit Card Fraud - Oh My!

by Cristina Callegari Kanellopoulos

According to a press release from the Queens district attorney's office, former Queens resident Rafael Vascones plead guilty to charges of tax, mortgage and credit card fraud. He was sentenced to six months in jail AND more than $400,000 in restitution and penalties.

Vascones, who is 54, was operating two businesses, Integrated Business Communications and NA Networking Group from Queens and was simultaneously maintaining false identities, forging documents, and evading taxes, among other crimes.

Queens District Attorney, Richard Brown, said that Vascones falsified documents in applying to refinance his property in Whitestone with Washington Mutual in order to receive cash payouts from the loan. After serving his jail time, he will serve five years probation.

New York to Offer Federal Income Tax Credit to First-Time Homebuyers!

Governor David A. Paterson announced that New York will offer a federal income tax credit to first-time homebuyers to encourage home sales in New York State. The New York State Mortgage Credit Certificate Program (MCC) will enable first-time homebuyers to claim a tax credit equal to 20 percent of their annual mortgage interest costs, which could save the average homebuyer around $1,500 a year. This program expands the $8,000 First-Time Homebuyer Credit, which expires on November 30, 2009.

"We applaud Governor Paterson for his vision in creating the Mortgage Credit Certificate program and for recognizing the importance of housing as a primary driver of the Empire State's economy," said Daniel J. Hartnett, president of the New York State Association of REALTORS. "The past four months of increasing home sales across the state have proven the value of buyer incentives. We expect, when coupled with the federal first-time buyer credit of $8,000, the MCC will bring additional buyers back to the market and further boost the recovery of both the state's housing market and economy." The New York State MCC can be used to reduce a homebuyer's tax burden for every year the mortgage loan remains outstanding. With an MCC, 20 percent of the amount paid in mortgage interest becomes a tax credit that can be deducted, dollar for dollar, from a homeowner's federal income tax liability. The remaining 80 percent of the mortgage interest continues to qualify as an itemized tax deduction, as long as there is sufficient federal tax liability. To read the entire State of New York press release, click here.

Finding a New York Apartment that Allows Dogs

by Cristina Callegari Kanellopoulos

I am often asked by fellow dog owners why it is so difficult to find a rental apartment in New York that will allow dogs. The truth of the matter is simple - Money.

Facts:

• Homeowners insurance premiums increase if the landlord allows dogs, especially large-breed dogs, or breeds deemed "dangerous" by the Insurance underwriters. Their thinking is these breeds are more likely to bite someone, and force a lawsuit on the homeowner, thus resulting in a homeowners claim.
• Co-ops and Condos can not afford to allow pets as a general policy, not only because of the increased overall insurance costs, but because it will increase property maintenance costs as well. They claim that their experience has shown them that not all pet owners are responsible at properly curbing their dogs. Additionally, the Co-op and Condo boards fear that if a badly-trained dog lives in the building the barking will disturb the neighbors. Therefore, decreasing the overall property value. As such Co-op and Condo boards generally have blanket policies of No Dogs Allowed.
• Also Landlords and Co-op/Condo Boards alike fear that poorly trained dogs will wreck the apartment, by urinating in the apartment, and public halls, and by chewing on baseboard moldings, etc.

There is hope in sight though. As small breed dogs have become more and more fashionable, landlords and Co-op/Condo Boards recognize that they need to cater to us in the dog loving community. And, many buildings that were previously not dog-friendly, have changed their rules to allow dogs below 20 pounds with board approval.

Unfortunately, for those with large breed dogs, or, more than one dog - it will be extremely difficult to find an apartment that will accomodate you and your pets.

If you need help finding an apartment in Northeastern Queens, or Western Nassau that allows dogs call me at 917.921.5397.