Monday, September 9, 2013

What Home Improvements Provide the Lowest Return on Investment

Home Upgrades with the Lowest ROI



Published: August 26, 2013 by NAAR HouseLogic.com
File these six upgrades under wish fulfillment, not value investment.
Of course, home owning isn’t just about building wealth; it’s also about living well and making memories -- even if that means outclassing your neighborhood or turning off future buyers. So if any of these six upgrades is something you can’t be dissuaded from, enjoy! We won’t judge. But go in with your eyes wide open. Here’s why: 
1.  Outdoor Kitchen
The fantasy: You’re the man -- grilling steaks, blending margaritas, and washing highball glasses without ever leaving your pimped-out patio kitchen.
The reality: For what it costs -- on average $12,000-$15,000 -- are you really gonna use it? Despite our penchant for eating alfresco, families spend most leisure time in front of some screen and almost no leisure time outdoors, no matter how much they spend on amenities, according to UCLA’s Life At Home study. And the National Association of Home Builders' 2013 What Home Buyers Really Want report says 35% of mid-range buyers don’t want an outdoor kitchen.
The bottom-line: Instead, buy a tricked out gas grill, which will do just fine when you need to char something. If you’re dying for an outdoor upgrade, install exterior lighting -- only 1% of buyers don’t want that.
Related: How to Buy a Gas Grill
2.  In-Ground Swimming Pool
The fantasy: Floating aimlessly, sipping umbrella drinks, staying cool in the dog days of summer.
The reality: Pools are money pits that you’ll spend $17,000-$45,000-plus to install (concrete), and thousands more to insure, secure, and maintain. Plus, you won’t use them as much as you think, and when you’re ready to sell, buyers will call your pool a maintenance pain.
The bottom-line: If your idea of making it includes a backyard swimming pool, go for it. But, get real about:
  • How many days per year you’ll actually swim.
  • How much your energy bills will climb to heat the water ($760-$1,845 depending on location and temperature).
  • What you’ll pay to clean and chemically treat the pool ($20-$100/month in-season if you do it yourself; $75-$165/month for a pool service).
  • The fact that you'll likely need to invest in a pool fence. In fact, some insurance carriers require it.
Related:
Less expensive option: an above-ground pool
Lower maintenance option: natural pools
If you do put in a pool, you can save money by installing a solar heater.
3.  In-Ground Spa
The fantasy: Soothing aching muscles and sipping chardonnay with friends while being surrounded by warm water and bubbles.
The reality: In-ground spas are nearly as expensive ($15,000-$20,000) as pools and cost about $1 a day for electricity and chemicals. You’ll have to buy a cover ($50-$400) to keep children, pets, and leaves out. And, like in-ground pools, in-ground spas’ ROI depends solely on how much the next homeowner wants one.
The bottom-line: Unless you have a chronic condition that requires hydrotherapy, you probably won’t use your spa as much as you imagine. A portable hot tub will give you the same benefits for as little as $1,000-$2,500, and you can take it with you when you move.
Related: What You Need to Know About Installing a Spa
4.  Elevator
Your fantasy: No more climbing stairs for you or for your parents when they move in.
The reality: Elevators top the list of features buyers don’t want in the NAHB “What Buyers Really Want” report. They cost upwards of $25,000 to install, which requires sawing through floors, laying concrete, and crafting high-precision framing. And, at sales time, elevators can turn off some families, especially those with little kids who love to push buttons.
The bottom-line: If you truly need help climbing stairs, you can install a chair lift on a rail system ($1,000-$5,000). Best feature: It can be removed.
Related: 4 Easy-Living Tips for Aging in Place
5.  Backup Power Generator
Your fantasy: The power in your area goes kaput, but not for you. You were smart enough to install a backup power generator. While the neighbors eat cold hot dogs by a flashlight beam, you’re poaching salmon in your oven and pumping out Red Hot Chili Peppers tunes.
The reality: Power outages may seem to go on forever, but they don’t. Fifty dollars worth of batteries can power portable lights, radios, and TVs; a car adaptor will charge your cell phones and iPods; and some dry ice will keep freezer food cold for at least a couple of days.
The bottom-line: If you live in areas where power shortages are the rule, not the exception, spend the money for reliable backup power: Your still-frozen steaks, home office fax, and refrigerated medicine will thank you. But if the power goes out rarely, then installing a standby generator is overkill.
Nationwide, homeowners recouped 52.7% on their average $11,410 investment in a backup generator -- one of the lowest ROIs on the annual Cost vs. Value Report. If you need occasional emergency power, a gasoline-powered portable generator ($200-$650) probably will suffice.
Related: What I Learned About Portable Generators One Dark and Stormy Night
6.  New Windows

The fantasy: Brand new windows that don’t stick, and slash energy bills.
The reality: A $10,000 vinyl window replacement project will recoup about 70% of your investment at resale, and if they’re Energy Star-qualified, they can save you around $300 in energy bills per year.  So, plan to live in your house about another 10 years to recoup the cost of new windows.
The bottom-line: We get it -- new windows are sturdy, pretty energy savers. But unless old window frames are thoroughly rotten, most windows can be repaired for a fraction of replacement costs. And if you spend about $1,000 to update insulation, caulking, and weather-stripping, you’ll save 10%-20% on your energy bill.

New MN Law Changes in Contract for Deed


 Changes in Contract for Deed
Do you know about the new MN law changes for Contract for Deed Notice? You can learn about the new requirement in the link below: 

Tuesday, September 3, 2013

Do-IT-Yourselfers - Take a Look at This!

DIY Wish List: Function Trumps Form


Published: August 1, 2013 by NAAR HouseLogic.com
A new study examines which outdoor projects DIYers would love to do . . . but probably won’t.
When it comes to picking outdoor DIY projects, we found it interesting that homeowners opt for functionality over form — and even finances, according to a new survey of U.S. homeowners. That’s music to our pragmatic ears.

By a wide margin, homeowners say they prefer functional projects (57%) over those that just look good (28.3%) or have financial value (14.7%).
But just because DIYers desire a project, that doesn’t mean they’re going to strap on a tool belt and actually do it. The survey also reveals the most-wanted projects a DIYer is least likely to do: High-skill/high-effort projects, like building a deck or privacy fence, probably will never make it off the DIYer’s wish list.

The most-desirable projects promise to make outdoor time more fun; but the ones homeowners probably will do are the easiest, like planting a garden or spreading around some landscaping pebbles.

Take a look at these numbers crunched by the Home Projects Council, a group of home improvement experts that sponsored the online survey of 1,278 homeowners planning outdoor home improvement projects in 2013.

Top 5 Desirable Outdoor Projects

1. Plant a garden (49.1%): Anyone with a shovel and some seeds can try this project, though it’ll take some experience to grow temperamental veggies, like tomatoes.
2. Landscaping with pebbles, stones, or rocks (28.3%): Attractive landscaping adds value to your home by boosting curb appeal. And it doesn’t take much effort to spread pea gravel in garden paths to add color and texture.  
Tip: Edge your path to keep the gravel from spreading.
3. Build a deck (22.8%): A deck is a great way to create outdoor living space, especially when your yard is sloped. Deck maintenance is easy, too: A coat of sealer will keep it looking good.
4. Create a fire or BBQ pit (20.5%): This retro project evokes 1950s dads flipping burgers over a handmade brick pit. Today, you’re more likely to install a gas grill in the pit, which makes the stainless steel seem less industrial and more homey.
5. Build a patio or walkway with pavers or bricks (19.2%): These stone hardscapes are elegant, functional, and long-lasting.

Top 5 Projects DIYers Wouldn’t Do on a Bet

Hey, a guy can dream, and then hire a pro to:
  • Build an outdoor kitchen.
  • Pour concrete slabs for patios, steps, or sidewalks.
  • Install a garden pond.
  • Resurface a concrete driveway, sidewalk, or patio.
  • Build a deck.