One of the most stressful times during a real estate transaction can come after the inspection. Even if the inspector uncovers only minor issues, sometimes buyers and sellers can let their egos and emotions get in the way over costs and responsibility for repairs. The important thing to remember is to keep it in perspective. Is a squabble over a few hundred dollars really worth risking not getting the home you want or losing a good buyer? Probably not.
You can do things to your home to make it more unique and fun to live in, but some improvements have more impact on its value than others. Updating a bathroom? Yes. Adding a red accent wall? Not so much. Realty Times lists six ways to increase your home’s value, including big impact improvements in the kitchen, bathroom, and energy efficiency.
This article from the Milwaukee Journal Sentinel talks about the importance of home inspections for both sellers and home buyers:
[A] professional home inspector will be able to point out issues that might go unnoticed by someone who doesn’t know the ins and outs of inspecting. Today’s buyers are quick to point out flaws uncovered by the home inspectors they bring with them, particularly if the flaws could compromise health or safety. Buyers can use problems as bargaining chips, causing previously agreed upon prices to be lowered or even the cancellation of a deal. Inspections help uncover imperfections that often can be fixed easily and inexpensively, so it’s worth it to get your home inspected before you list it.
In Chicago at least, standard practice is for the buyer to hire an inspector once they have already signed a contract to buy a home. At that point though, an inspection can turn up issues that sellers may not have known about, and could have fixed for much less money and fewer headaches. It may be worth it to hire an inspector and resolve any issues before you even list your home.
You may not want to think about it yet, but winter is coming, along with all the ways it can wreak havoc on your home. These 10 tips for winterizing your home show you easy ways to protect your house from the cold and save money from both utilities and costly repairs.
Cut Your Energy Bills Now, a new book by engineer Bruce Harley, details 150 ways you can save energy at home and reduce your utility bills. From buying compact fluorescent light bulbs to making your heating and cooling systems more efficient, Harley’s book helps you make a greener home.
The nitty gritty on cleaning floor-tile grout — chicagotribune.com
Cleaning floor-tile grout can be one of the most frustrating chores in a home. The stuff just doesn’t want to come clean. Tim Carter’s latest Ask the Contractor column puts this tricky cleaning task to the test, and he says you should use a product called “oxygen bleach powder” to scrub that grout. But be wary of cheap knockoffs stuffed with filler. Apparently you get what you pay for when it comes to this cleaning solution.
Is it worth it to redo kitchen? — chicagotribune.com
One of the most common questions sellers ask us is whether or not they should remodel their home before putting it on the market. The kitchen is an obvious target because it has the most features that are susceptible to changes in style and taste. Trends come and go for stone countertops, finishes on cabinets, and the look and features of appliances, and after a few years sellers may be afraid that their choices will limit market appeal.
The article linked above refers to a 2007 report from Remodeling magazine that compares the cost of remodeling projects to the amount they add to a home’s resale value. On average, mid-range kitchen remodels add 83 percent of their cost to market value, while major remodeling jobs add 77 percent.
We always tell people to consider how much they will enjoy a particular upgrade while living there, and for how long. If you are planning to move soon, you may be better off saving the money. But if you’ll be able to live in the house and enjoy a new kitchen for a few years, the cost may be worth it.
Remodel on the cheap – CNNMoney.com
You don’t have to spend a fortune to remodel a kitchen or bathroom, if you’re willing to buy used. Second-hand appliances and kitchen fixtures, floor models, and antiques can fit your style and budget. Check out the Building Materials Reuse Association and Habitat for Humanity’s ReStore directories for tips on where to find used materials for your project.
Talk about useful: the Tribune has posted a checklist of home maintenance tasks broken down month by month for the entire year.
The Historic Chicago Bungalow Association’s annual Green Home Expo returns to the Merchandise Mart this Saturday, October 27, from 10:00 a.m. to 4:00 p.m. The event will feature 150 vendors and 15 seminars about green building and restoration technology, including how to finance a green restoration and navigating Chicago’s building permit process.
The 2007 Historic Chicago Bungalow and Green Home Expo is coming to the Merchandise Mart on October 27. That somewhat cumbersome name refers to an expo where homeowners can visit 150 vendors and attend 15 seminars focued on historic renovation and green technology. The show isn’t just limited to historic bungalow owners though, there will be numberous exhibitors on hand to discuss window replacement, wiring and plumbing upgrades, and environmentally-friendly home improvements. For more information, visit the Chicago Bungalow Association’s website.
Making your home greener isn’t just the right thing to do for the environment, it can save you money too. This recent article in the Sun-Times includes a number of steps for updating your heating and cooling systems and modifying your water usage to make them more environmentally friendly, like installing a programmable thermostat, new Energy Star appliances, and compact fluorescent light bulbs.
Despite valiant attempts by the Illinois House of Representatives to reinstate the freeze on electricity rates from ComEd, Chicagoans should be bracing for at least a 25 percent hike in their bills this month. The House passed a measure to freeze ComEd’s rates another three years, after the utility company held an auction late last year to set the price for electricity after a previous 10-year ban expired. But the bill still needs to pass the Senate, where it faces stiff opposition and isn’t likely to even come to a vote.
One widespread suggestion to help homeowner save on energy is to replace standard incandescent light bulbs with new, more efficient compact fluorescent bulbs. Compact fluorscents are those funky corkscrew-shaped bulbs, but despite their strange looks, they use 75 percent less energy, can last up to 10 years, and on average save you $30 over the life of the bulb.
These new bulbs are pricey–they cost around $5 each–but it’s the right thing to do, both to save you money and do your share to conserve energy. Matt has been on a mission to replace all the bulbs in his and Debbie’s townhome, and we wanted to share some of the results:
Buyers commonly request home warranties in today’s market, as a way of squeezing one more concession out of eager sellers. But not every warranty is the same, so you need to read the fine print before assuming that your expenses will be covered for the first year in your new home.
Warranties on existing homes are different than new construction, and usually cover only specified equipment. Also, most existing home warranties only cover repairs, not replacement. In the case of such repairs, much like make auto insurance claims or finding a provider in your healthcare network, you should call the warranty company first to find an approved maintenance contractor.
Warranties typically cost $300 to $500, with the more expensive ones obviously being more comprehensive. If you are interested in purchasing one, just make sure you understand exactly what it covers so you won’t be left holding the bag if something does break after you’ve moved into your new home.
CNN is reporting this year’s list of most profitable home renovation projects. The top two, outdoor siding replacements, may not have much relevance for Chicago buyers in the condo market, but it’s a good option for those with single-family homes. Siding replacements recouped an average of 87-88% of their cost. Window replacements and bathroom remodeling also scored high, rounding out the top five.
The bad news however, is that remodeling costs jumped in 2006 while the amount such jobs added to resale value remained the same. The average kitchen remodel jumped almost 20% this year while returning 80% of that cost. Part of this disparity has to do with the overall decline in housing prices as of late. The trend emphasizes the important point that remodeling jobs should be thought of less as money makers and more as projects done for your own enjoyment, while you still own the home.
