Have you really thought long and hard about what kind of home you need? Sometimes buyers focus on one element of their dream house and forget that change is inevitable. Because we never know what to expect it's good to stay flexible and plan, as much as possible, for contingencies.

Williston Colonial

Location, Location, Location!

I'm sure you've heard this expression before! It is the most important piece of criteria for buyers when searching for a new home. It's also the most permanent characteristic of a property - meaning you can't move land and a home to another location. (Excluding mobile homes). Therefore, it's extremely important to figure out where you want to live first, then determine the other features that fit your needs. Make sure to take into account your commute to work, schools, shopping and other conveniences. Plus this "where" part if the equation can help determine how much you can afford, which is another major factor in the home-buying process.

House Vs. Condo

Another important factor is determining what type of home you want to live in and furthermore, what kind of financing is available for that type of home. A single-family house gives you more freedom and privacy, but you might not have to worry about mowing the grass of replacing a roof  if you live in a condo complex. Then there is the option of a multi-family building. You could owner-occupy one of the units and rent out the rest. This could be a great way to live cheaply, but financing can be trickier for these types of properties. Definitely visit a mortgage lender or bank to see what your financing options are for any type of property. Plus it's very important to get pre-approved for a mortgage before you start looking at houses - it shows sellers that your a motivated, credible buyer giving you an advantage over other buyers that aren't pre-approved.

Williston Colonial

How Many Bedrooms?

It's also important to determine how many bedrooms and bathrooms you'll need. For instance, right now you might have children in high school and need a house with lots of bedrooms. In a few years you might find yourself with an empty nest and suddenly realize that you'd rather spend your time traveling than gardening. If that's the case, think about the home you buy in terms of resale and consider financing options that make sense for your scenario. Keep in mind that the number of bedrooms in a home can notably affect its resale value. Or you might be just starting out and think that a one-bedroom condo is all you need. A more flexible plan might be to consider two-bedroom condos or small houses; you can rent a room to a roommate now and have room to grow if you start a family.

Other Important Features

Do you need a garage? Would you prefer a basement? How about acreage - is that important to you and your family? So as you sit down to discuss what kind of house you want and what features are important, think about your needs now and then think about what your needs might be in a few years. The answers might surprise you and they may come in handy in discussions with your real estate agent.

If you have any Vermont Real Estate questions or need guidance on the home-buying process, feel free to contact us for a FREE Buyer Consultation.

 

Ice Dam

 

What is an Ice Dam?

Thinking about remodeling, renovating, upgrading or building an addition to your home? Well before you do, it may be wise to check out the Remodeling Cost vs. Value Report for 2010-2011 online. You can download a report for free which gives specifics on how much the typical remodel of a certain room or home upgrade will cost you and how much money you can expect to recoup once you sell your home. The report provides area specific information and average costs for remodeling projects for each region of the country. It's a wealth of knowledge!

For example, in Burlington, Vermont, the report claims some of the remodeling projects which give the highest return on investment are:

Vinyl Window Replacement - Cost: $9,400; Resale Value: $8,000; Cost Recoup: 85.2%.

Attic Bedroom Remodel which can cost approximately $42,000 and in an ideal market, you could potentially recoup about 80% of your investment or roughly $33,500.

Some examples of projects giving the lowest ROI include:

Home Office Remodel which apparently can cost as much as $26,000 and the resale value will only get a homeowner $11,400, therefore a 43.6% cost recoup.

Bathroom Addition with a cost of approximately $33,700 and offer a resale value of $17,500, so 51.9% recoup in money spent.

Another popular renovation project is the Kitchen Remodel! The Cost vs. Value Report offers three different figures on a Kitchen Remodel: Midrange Minor Kitchen Remodel, Midrange Major and Upscale Major Remodel. All of which give cost recoups of 62%, 69.6%, and 62.1% respectively!  Check out the report for specifics.

Now, keep in mind that these figures are all just averages and estimates. Renovation project costs can certainly vary and resale values can definitely vary depending on the real estate market and economy. If you have a prior relationship with a good general contractor and/or handy person or can do some of the work yourself, your costs could potentially decrease a bit. However, you should always leave major structural work, plumbing and electrical work to the experts! Work done by unskilled people or sloppy handy work can decrease the value of your property and/or create problems for later home inspections or appraisals! Also, waiting a few years to sell your property or waiting to sell until your real estate market is booming, can also increase your chance of a higher ROI. Plus wouldn't it be nice to get a few years to enjoy and make use of your recently remodeled kitchen, master suite, deck or bath?!

Here's a cute and informative video from Forbes' Investopedia website on calculating ROI:

http://www.youtube.com/watch?v=4NQZfNgouLw