When remodeling your home or condo, examining your budget is a key element, going hand-in-hand with the physical aspects of the job.  Remodeling and basic improvements can add value to your real estate and approaching the work with fiscal responsibility will help maximize your profit. When making changes to your home it is easy to get carried away, adding features and altering products as you go along.  Depending on the scope of your project, hiring a contractor that will design the project and a budget could be the wisest step to make keeping someone financially in charge of the work at hand. You should interview several contractos to figure out who might be best suited for the job. 

A kitchen remodel can run from $10,000 to over $50,000.  The difference in budget can be related to fixtures, the scope of work, finishes chosen, appliances, and more.  There is high-end and low-end and everywhere in between.  To do a high-end remodel at a low-end price takes a lot of homework and shopping around to find appliances and finishes at discount prices.

After determining your plans and finances what can affect your remodeling budget?

• Where you buy your supplies
• Who you hire to do the work
• Changes to work orders

Cutting corners to save money should be examined at the onset of a project.  Maybe you will decide that you want a Sub Zero refrigerator more than granite counter tops.  Where you add in one area, you can subtract in another.  Just remember that your end result will affect the overall value and appeal of your home.

If you need help in determining what buyers like and dislike or to get a feel where there is a high percentage in recouping your improvements, please give me a ring. It’s good to get a perspective from and agent who has a pulse on what buyers are looking for. I work in Virginia, Maryland and Washington DC in all locations in and outside of U Street.

The question, “Is real estate a good investment in Washington DC?” is one which many have wondered over the course of our recession.  In most situations the answer is yes, especially for the long term.  Those buying real estate with the intent to live in a home or own a property for a long period of time are making an investment.  Historically speaking real estate has displayed a return that outpaces inflation by at least one percent if not higher.  In fact, regardless of the recent bursting of the housing bubble, many parts of the country have shown more than a 50% increase in property values since 1990.  While huge jumps in home values are not expected to occur any time in the near future, the subtle rise in values in most home prices will make long-term real estate values grow at consistent levels.

Now could be a great time to buy a home for the following reasons:

• Mortgage rates are hovering above historic lows and have nowhere to go but up.
• Home values appear to be stabilizing and even increasing in some markets. U Street is one of the markets.
• With the rates low, getting a renter to pay close or more to what you pay for monthly is quiet possibly feasable.
• Home affordability levels are at all time highs.
• Sellers are motivated.

There is no doubt that many people got caught up in the housing bubble, gambling on the huge returns that were occurring for real estate investors.  Unfortunately those that bought at the height of the market, as well as those who bought beyond their means, gambled and lost.  In today’s market buying a primary residence or rental property seems to make a lot more sense than it did at the height of the market, after all buying low and selling high is much better for your wallet than buying high and selling low.

Anyone selling a home in this DC real estate market gets excited with the anticipation of receiving an offer, how to approach it can be another story. When a realtor calls you with an offer and sends it your way it is important to peruse the contract with a discriminating eye. Look over every detail and try to keep the following in mind:

• Take the emotion out. It is understandable that you are attached to your home, you might think it is worth every penny you are asking for it, or you might disagree with inspection items. You decided to sell your home, take your attachment away from it and sell it from a real estate perspective.
• Prioritize. What is most important to you as the seller? Closing quickly? Price? Inclusions? Financing?
• What are the buyer’s priorities? If closing quickly is key then maybe you can get closer to your asking price by offering to move up the closing date.

Listening to your a realtor can be extremely helpful and important during the selling process, from pricing your home to walking through a contract. Look over the details of the contract you receive, make notes, examine the contingencies and ask questions. Having experience and knowledge on your side make selling a home a much easier experience. If you are looking to sell your property, I would be more than happy to visit your home and see what the market might be willing to pay for your property. It’s a buyer’s market when the seller is scared of tomorrow. It’s a sellers market when there is competition amongst the buyers. Almost 40% of the homes in the U Street neighborhood are selling within 0-6 days.

There are a number of smart decisions home owners can make to live greener during the holidays, choices that will not only make people lessen their impact on the environment but also add a little zip to your holiday spirit. The holidays breed good will toward men and the spirit of giving, and there is no need to ignore the environment in the process.

Wrapping paper. Wrapping paper no doubt creates the most garbage during the holiday season and choosing recycled or reusable materials is easier on the landfills. Fabric makes a great wrapping and can be used again for further wrapping or to make something out of.

Christmas trees. Christmas tree farms grow trees strictly for Christmas time, lessening the effects that could come from chopping a tree down in a forest, its natural environment. Choosing a farmed tree is kinder than cutting one down.

Recycle your tree. Most neighborhoods have areas designated as Christmas tree drop-off sites. Dropping your tree off will enable it to be turned into mulch or returned to the environment in a different way.

These are just a few ways to lessen the burden we make on the environment during the holiday season. We live in a consumer society, something we are all guilty of, and the holidays represent a time of greatest impact. It might just lift our spirits to do our part toward easing the impact during this busy time of year. Happy Holidays U Street and DC!

When considering renovating a home it is important to think about bathrooms. Bathrooms and kitchens have traditionally been important features when it comes to real estate and should not be overlooked when remodeling a home. From green fixtures like energy efficient shower-heads and low flow toilets, to environmental flooring options like bamboo, updating a bathroom can become an environmental issue as well as a design issue.

When remodeling a bathroom it is important to consider what is current in trends and design, especially if selling your property is in the future. That said, here are some features that can make a great bathroom. In Washington DC it is a beauty contest among sellers.

Light. Of course light is important in every room of a house, a bathroom should not be overlooked. From adding a skylight to a large picture window, the ability to shed natural light in a bathroom is key.

Cabinets. When choosing cabinet space or a vanity for your bathroom consider what kind of storage the room has or needs. For example, a powder room needs storage for what? Toilet paper, soap, hand towels. A pedestal sink can work in a powder room if you have a shelf or basket for toilet paper and a rod for hand towels. If a master bathroom has a linen closet in it then a simple, sleek vanity is possible if lots of storage isn’t necessary in the vanity. If storage is need the choose a vanity with a lot of space.

Design. Is your home modern in feel? Classic? Choose fixtures, shelving, vanities and other items that fit in with the feel of your home. If your home has an old-time Victorian feel, don’t add a trendy, modern vessel sink that doesn’t fit the style of your home.

Bathrooms are fun to design and remodel. The best part of a new bathroom is a fresh, clean start, and considering the ease of cleaning it should be at the forefront of your decisions.

For tiling your bathroom or kitchen try The Tile Shop in Rockville Md., or in Springfield Va. Also the Greatindoors in Rockville is a great way to shop around for fixtures and upgrades.

Are you ready to buy a home in the Washington DC area?  Home ownership is a big step and if there is one thing people have learned from the recent burst of the housing bubble it is that you need to be prepared to become a home buyer.  If you are ready to take advantage of the low mortgage rates that are available as well as the higher than normal inventories and home prices that must be near or at the bottom here are some points to be familiar with before jumping into real estate ownership.

• Know the market in your area.  Be aware of what homes are selling for and what you should expect to pay.
• Be prepared to acquire financing.  Interview lenders, clean up your credit and get pre-approved for a loan.
• Once you know what you should expect to pay make sure that you have money saved for the down payment, typically between 10% and 20%, although it can be as low as 3%. 
• Have enough income and money set aside not just for your monthly mortgage payments but also for insurance, association fees, possible repairs that may arise and more.

In a nutshell buying a home in this market is a big step, facing it responsibly will prepare you for your new venture.  Owning real estate can be the best investment of your lifetime, jumping into a property you can’t afford can be a huge mistake.  A helpful tool could be sitting down with with me, and I can fill you in on the DC market, recommend a reliable lender and educate you on the process of buying a home.  If you know what you are doing everything is more likely to work out in your best interest.

When buying real estate in Washington DC there is a lot involved.  Knowing the art of negotiation when it comes to buying a home is important.  Purchasing a property is a large investment and doing it right is of the utmost importance.  When the ideal property is located the negotiation process begins, typically with a contract.  Price, dates, fixtures, and more can all be items of negotiation.

When it comes down to it, negotiating the terms of buying or selling a home can become emotional, with both sides feeling strongly about price, the closing date or what may or may not come with the home.  However, it is important to help guide the negotiation, not stand so firmly that “take it or leave it takes control”.

Certain things come into play in a real estate deal, the motivation of the seller and the motivation of the buyer being key elements.  In any situation an experienced Realtor who has done over 100 transactions can be extremely helpful in negotiating a real estate contract.  The ins and outs of seeing a contract to fruition can be complicated and when a property is at the top of a buyers list, success is important. Knowing the inventory is very important and whether or not you can find a better house at a lower price. In my 30+ transactions this year nearly 75% of them have been in multiple offers. Being able to capitalize on a house that you want but protecting you the same time comes with experience and knowledge of the contracts and negotiation tactics.

If you are selling your home in Washington DC you may want to think about what it smells like.  We are all graced with the same five senses and smell can be an important one.  The smell of a home can be warm and inviting or assaulting, which reaction are you trying to achieve? 

First off if your home smells like cigarette smoke you are at a huge disadvantage these days.  Until the smell can be professionally removed it would be hard to consider having it available for showings.  If cigarette smoke is not an issue, consider what your home does smell like. 

While you do not want an overwhelming perfumey smell in your house, you do want a fresh, natural scent.  Air your home out before an open house or before a showing.  Pay attention to where your cat litter, garbage can, or recycle bin is located.  Having fresh baked cookies in the oven or something simmering on the stove can emit a pleasing aroma and add to the comfort level that one feels in a home.

Every home has a smell, good or bad, and smell can add to the ambience of a home.  Think about improving your home’s smell and you just might reel in the buyer you have been waiting for.

The current super low mortgage rates have many people in DC are wondering whether or not now is the time to refinance.  For 23 weeks rates have been under 5%, last week headlines touted that the average rate for a 30 year fixed rate mortgage was 4.19%, the lowest recorded since mortgage rates began being recorded.  With such history how could now not be the time to refinance?  Oddly enough, now might not be the right time for you. 

Here are some things to keep in mind to determine whether refinancing is right for you:

• Do you have equity in your home?  If you are underwater on your mortgage you will have a hard time refinancing.
• Costs of refinancing.  How much is it going to cost to refinance and how many months will it take to recoup the cost?  Will you be in your home that long?
• Taxes.  Mortgage insurance is a write-off come tax time.  Is lowering the interest in your best interest?

These are just a few points to think about when considering refinancing you real estate.  If you have plenty of equity, good credit and overall financial stability this could be the best time.  There are a lot of things to think about when refinancing, for example, if you have less than 20% equity you will have to have prime mortgage insurance (PMI) which will add to your monthly costs.  Take time to evaluate your financial and real estate picture.  The historically low rates are eye-catching and are great for buying a home but they may not be ideal for refinancing your home.

If you need to speak to a lender about refinancing, Patrick Gardner with First Savings is DC area lender and can be reached at 703-883-9010

If you are buying a home in Washington, there are some important things to think about.  While there are people out there who do not believe that a person’s primary residence should be looked at as an investment, the reality is that a home is probably one of the most expensive purchases in a person’s lifetime and, as such, is a very important investment.  That being said, buying real estate is a big deal and should be approached with thought and caution.

There are two main factors when buying a home, one being financial, the other being physical.  Financially it is of the utmost importance to buy within your means.  Know your budget, what you can afford now, and do not go beyond it.  Before even looking for a home go through the pre-qualification process of acquiring a mortgage.  Lastly, remember that you are your own best advocate, do your research and know what expenses will be coming at you upon closing so that you are not caught off guard and forking over extra, unexpected money that you cannot afford.

When it comes to the physical attributes of your home search, it is a good idea to look at everything available in your price range in the area that you want to move to.  Realize that there is a good chance that you will be attracted to real estate that is above your price range but remember to be realistic, you need to stay within your budget.

When it comes to real estate it is a great time to be a buyer. Interest rates are hovering around 4.6% and the dog days of summer can leave a seller with a lot of motivation. If you are looking to buy, please contact me and I’ll be more than happy to discuss the current market conditions and any questions you may have.

Click here to read a recent article from Investopedia titled “10 Worst First-Time Homebuyer Mistakes 2010”.