Brian Vanderhoff's North Fulton Real Estate Blog

Now is definitely the time to be a homebuyer. Potential new homeowners have a lot of bargaining power in the current market, and can choose from a slew of different house types, including fixer uppers and move-in ready homes. Deciding which type of home makes the most sense for you depends on your temperament, remodeling know-how and move-in time frame, experts say.
“If you know what it will cost to fix up the house then you are in a wonderful position,” says David Lupberger, the home improvement expert for ServiceMagic. “Unfortunately, people underestimate the cost of the fix up.”
The housing meltdown flooded the market with foreclosed properties and a record number of short sales, which have created bargain prices, but many of the houses require a lot of updating and renovations. At the same time, there’s also a large inventory of move-in-ready houses.
“Most fixer uppers tend to be short sales and foreclosures,” says Doug Azarian, sales associate at Kinlin Grover Real Estate. “In foreclosures and short sales situations, the sellers don’t have the money to make the mortgage payment--let alone pay for maintenance.”
Before choosing whether to go with the fixer upper or a home that requires zero to little work, real estate experts advise considering your lifestyle and temperament. If you are working long hours, raising a family or have little spare time, a move-in ready home may be more ideal. But if you have the free time and the patience to deal with the stress associated with a renovation, a fixer up could be the way to go.
“If you enjoy working on homes and putting your unique stamp on them, or have the patience and budget to hire someone, a fixer-upper might be for you,” says Angie Hicks, founder of Angie’s List. “If you’re not handy, don’t like dealing with the minutia of a home improvement project, you should buy a move-in ready home – or one that doesn’t have major repair issues.”
When going the move-in ready route it’s imperative to ensure you’re not overpaying for the house. Buyers get swept up by updated kitchens, neutral wall colors and beautiful hardwood floors, but some upgrades aren’t worth the asking price. According to Lupberger, you have to know the market and the cost per square foot in a given neighborhood. Working with a knowledgeable realtor will ensure you aren’t over paying.
According to Hicks, most buyers are looking for turnkey homes or ones with fresh paint and bathrooms and kitchens that don’t need repairs because they don’t have the money to put into fixing up a home.
According to Azarian, when trying to find the ideal fixer-upper, location is everything. “If you buy in a better location at a discount and can be patient about fix ups, it’s worth it.” He lists new floors, kitchen and bath renovations and even roof replacement as repair worth doing if the price tag is low enough.
Calculating the cost of repairs is no easy task. Lupberger suggests adding 20% to your estimated costs because there are always unwanted surprises along the way. For example, if the house has lead paint or asbestos, expect to pay 30% to 40% more on the repairs, says Lupberger.
“There’s a lot of downside if you don’t know exactly what you are doing,” says Lupberger. If you have no home improvement skills, bring along someone that does to check out the house—including the foundation, heating and cooling systems, windows and the roof.
“Be aware of cosmetic or superficial fixes that a homeowner has made to get the house through the sale,” adds Hicks. She says hiring a home inspector is important because a good one can spot cover up or cosmetic fixes that won’t last long.
A home inspector “may cost you a few hundred dollars, but it will be money well spent, especially if a costly repair is revealed,” she says.

Labels: home fuyers, home inspections, Home Remodeling, Home Sales, homes

Homeowners are ready to make 2012 a banner year for remodeling and the latest cost-for-value research suggests that getting the most bang for every buck is more important than ever.
The Remodeling Market Index (RMI) hit a five-year high at the end of 2011, indicating that residential remodeling should continue to grow in 2012, according to panelists at a press conference at NAHB’s International Builders’ Show. After a slow start, home improvement spending is expected to trend up later this year, according to the Leading Indicator of Remodeling Activity (LIRA) released by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University. If this momentum continues to build during the second half of the year, remodeling activity is on course to end 2012 on a positive note.
However, consumers want to get the most for their money. A recent survey by Better Homes and Gardens released last week at the Home Builders Show found that consumers find it more important than ever to get the most value out of every dollar (61 percent in 2011, up from 56 percent in 2010), and will spend more time looking for bargains and deals in order to get the most value for their money (Up to 54 percent in 2011, from 52 percent in 2010).
Living space and the way it’s utilized also continues to be top of mind for consumers. In this latest survey, conducted in December 2011, consumers wished for a median square footage of 1,791 sq. feet, down from 1,846 sq. feet the year prior. There’s more attention given towards the aesthetic and function of a space, rather than the amount of space. They’re not as willing to invest in the bigger, but instead investing in what’s better. Affordability and efficiency - both in space and energy - rank topmost.
In terms of remodeling priorities for consumers, baths are outpacing kitchens. Bathroom remodeling stayed constant in 2011 and 2010 (31 percent) and kitchen remodeling was stable at 25 percent in 2011, compared to 24 percent in 2010.
Remodeling Magazine’s annual Cost vs. Value report for 2011-2012 found that the trend right now is replacement over remodeling-swapping out the old for the new rather than doing a total gut job, which can be much more costly. Exterior replacement projects-such as new garage doors and a new entry door-offer some of the best returns at resale, allowing home owners to recoup close to 70 percent or more of the costs of the project at times of resale.
The following are the top, mid-range projects from this year’s report, based on what home owners stand to recoup at time of resale:
1. Replacing the entry door to steel
Estimated cost: $1,238
Cost recouped at resale: 73 percent
2. Attic bedroom (converting unfinished attic space into a bedroom with bathroom and shower)
Estimated cost: $50,148
Cost recouped at resale: 72.5 percent
3. Minor kitchen remodel (including new cabinets and drawers, countertops, hardware, and appliances)
Estimated cost: $19,588
Cost recouped at resale: 72.1 percent
4. Garage door replacement
Estimated cost: $1,512
Cost recouped at resale: 71.9 percent
5. Deck addition (wood)
Estimated cost: $10,350
Cost recouped at resale: 70.1 percent
6. Siding replacement (vinyl)
Estimated cost: $11,729
Cost recouped at resale: 69.5 percent

Labels: Foreclosures, Home Remodeling, Home Sales, home sales report, home selling, Homeowners