If you’ve inherited or converted even a small slice of space to a standalone living unit that could be rented, you’ve substantially boosted the value of the whole property.
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Category: Money Matters Monday
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- A Little Income Adds a Lot of Value
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- Will 2013 Values Support Improvements?
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2013 is likely to see home values stabilizing—but not because of sale prices. A strengthening labor market is the rising tide that will lift property values, says Abbe Will, research analyst with the Harvard Joint Center on Housing.
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- 3 Top Ways to Capture Value in 2013
While analysts argue whether 2012 was in fact the turnaround year for home sales, it’s clear that home remodeling is gaining traction.
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The Harvard Joint Center on Housing’s Leading Indicator of Remodeling Activity projects steadily rising home maintenance and improvement spending in 2013. Here’s how to concentrate your money and effort on the projects most likely to deliver a quick return:
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- Two Regulatory Trends That Could Trim Your Cash Flow
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That sacred cow, the home mortgage deduction, is likely headed for the slaughterhouse. As Congress explores ways to raise revenue, analysts agree that the deduction is likely to be trimmed.
If so, property values could erode as much as 15%, warns the National Association of Realtors (though others believe the effect could be muted).
Get ahead before a reduced deduction becomes a reality by refinancing now, especially if you want to extract equity to finance improvements. Appraisers will have to take into consideration the ripple effect of any change in the deduction on home values, and that could undermine your future ability to get the financing package you need.
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- Home Buyers Seek Low Carrying Costs
Price is the number one factor for home buyers, according to the annual Profile of Home Buyers and Sellers recently released by the National Association of Realtors (NAR).
No surprise there—except total purchase price isn’t the overriding factor; more important to buyers is how that price breaks down into monthly carrying costs.
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- What “By Owner” Services Won’t Tell You
For the DIY-minded, it makes perfect sense. If you’ve fixed up the house on your own, why shouldn’t you sell it on your own too?
Like starry-eyed television shows that portray renovation almost as a heat-and-serve proposition, selling ‘by owner’ usually involves fees that popular websites don’t mention.
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Here’s the breakdown on how you can capture the greatest ROI for selling DIY:
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- Remodeling Heats Up
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Brace for a remodeling revival in 2013. The Harvard Joint Center on Housing is predicting double-digit growth for home remodeling next year, citing stabilizing home values and continued low home financing costs as the magic factors.
Here’s what this means for dedicated do-it-yourselfers:
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- The Case for Flood Insurance
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Nothing underlines the importance of flood insurance like a Major Weather Event.
The damage inflicted by Sandy—the hurricane turned “post-tropical cyclone”—has thrust flood insurance back into the news. Considering the unexpected swath of wreckage delivered by Hurricane Irene in August 2011, it’s smart to review the implications of not having flood insurance for your property.
If you live in a flood-prone area and have a mortgage, chances are that your lender already requires you to have the right coverage. Be aware, though, that standard homeowners’ and renters’ insurance does not usually cover flood damage.
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- How To: Calculate the True Cost of Homeownership
Homeownership is widely considered to be a bedrock of family financial stability, but as aftershocks continue to reverberate through the real estate market, it’s important to know exactly how well your house is performing as an investment.
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Here are two ways to understand the operating value of your home. By knowing both your net equity and the rental equivalent, you can determine the true cost of owning your home, and you will be prepared to make smart decisions on investing for the best return.
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- Estimating Home Value: Whose Price Is Right?
Hooray! The housing market is bouncing back from the depths! No, wait, prices are going sideways—in some markets. Who to believe? We’ll sort it out right here.
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