Showing posts with label real estate. Show all posts
Showing posts with label real estate. Show all posts

Tuesday, September 8, 2015

Stock Market Got You Down? Good News: Home Prices Are Up!

After a slow start in the beginning of 2015, home sales have grown significantly throughout the summer season. This summer, and the next few months, will be a seller’s market. A surge in home sales driven by low rates have led to tighter inventory and price gains. In 2014, the median home price for 2014 was $208,500. In June 2015, on the other hand, the median monthly home price was $236,400.

So if the stock market’s got you down these past few months, look at the silver lining—home prices are up and a seller’s dream has emerged. Learn more about the state of the real estate market in this recent article from Keller Williams.

If you’d like a report on the value of your home, contact me right away.

Monday, February 10, 2014

The Numbers Are In! 2014’s Remodeling Projects With the Highest Cost Recouped in Kansas City

Last year, I published a blog titled The Top 10 Remodeling Projects with the Highest Cost Recouped in Kansas City that covered the home remodeling projects that gave homeowners the highest rate of return in 2013. Now that 2013 has come and gone, it’s time to see which remodeling projects will give you the best return on investment in 2014!

According to Remodeling, the top 10 remodeling projects with the highest cost recouped in Kansas City this year are:

     1.  Garage Door Replacement:

Remove and dispose of existing 16x7-foot garage door and tracks. Install new 4-section garage door on new galvanized steel tracks; reuse existing motorized opener. New door is uninsulated, single-layer, embossed steel with two coats of baked-on paint, galvanized steel hinges, and nylon rollers. 10-year limited warranty.

Cost: $1,604
Resale value: $1,233
Cost recouped: 77.0%

2.  Minor Kitchen Remodel:

In a functional but dated 200-square-foot kitchen with 30 linear feet of cabinetry and countertops, leave cabinet boxes in place but replace fronts with new raised-panel wood doors and drawers, including new hardware. Replace wall oven and cooktop with new energy-efficient models. Replace laminate countertops; install midpriced sink and faucet. Repaint trim, add wall covering, and remove and replace resilient flooring.

Cost: $19,854
 Resale value: $14,941
Cost recouped: 75.3%

3.  Entry Door Replacement (Steel):

Remove existing 3-0/6-8 entry door and jambs and replace with new 20-gauge steel unit, including clear dual-pane half-glass panel, jambs, and aluminum threshold with composite stop. Door is factory finished with same color both sides. Exterior brick-mold and 2.5-inch interior colonial or ranch casings in poplar or equal prefinished to match door color. Replace existing lockset with new bored-lock in brass or antique-brass finish.

Cost: $1,240
Resale value: $837
Cost recouped: 67.5%

4.  Deck Addition (Wood):

Add a 16-by-20-foot deck using pressure-treated joists supported by 4x4 posts anchored to concrete piers. Install pressure-treated deck boards in a simple linear pattern. Include a built-in bench and planter of the same decking material. Include stairs, assuming three steps to grade. Provide a complete railing system using pressure-treated wood posts, railings, and balusters.

Cost: $10,311
Resale value: $6,926
Cost recouped: 67.2%

5.  Bathroom Remodel:

Update an existing 5-by-7-foot bathroom. Replace all fixtures to include 30-by-60-inch porcelain-on-steel tub with 4-by-4-inch ceramic tile surround; new single-lever temperature and pressure-balanced shower control; standard white toilet; solid-surface vanity counter with integral sink; recessed medicine cabinet with light; ceramic tile floor; vinyl wallpaper.

Cost: $17,439
Resale value: $11,444
Cost recouped: 65.6%

6.  Two-story Addition:

Add a first-floor family room and a second-floor bedroom with full bathroom in a 24-by-16-foot two-story wing over a crawlspace. Add new HVAC system to handle addition; electrical wiring to code.

Family room: Include a prefabricated gas fireplace; 11 3-by-5-foot double-hung insulated clad-wood windows; an atrium-style exterior door; carpeted floors; painted drywall on walls and ceiling; and painted trim.

Bathroom: 5 by 8 feet. Include a one-piece fiberglass tub/shower unit; standard white toilet; wood vanity with solid-surface countertop; resilient vinyl flooring; and mirrored medicine cabinet with built-in light strip; papered walls; and painted trim; exhaust fan. Bedroom: Include walk-in closet/dressing area; carpet; painted walls, ceiling, and trim; general and spot lighting.

Cost: $165,580
Resale value: $106,054
Cost recouped: 64.1%

7.  Deck Addition (Composite):

Add a 16-by-20-foot deck using pressure-treated joists supported by 4x4 posts anchored to concrete piers. Install composite deck material in a simple linear pattern. Include a built-in bench and planter of the same decking material. Include stairs, assuming three steps to grade. Provide a complete railing using a matching system made of the same composite as the decking material.

Cost: $16,291
Resale value: $10,297
Cost recouped: 63.2%

8.  Siding Replacement (Vinyl):

Replace 1,250 square feet of existing siding with new vinyl siding, including all trim.

Cost: $12,411
Resale value: $7,803
Cost recouped: 62.9%

9.  Major Kitchen Remodel:

Update an outmoded 200-square-foot kitchen with a functional layout of 30 linear feet of semi-custom wood cabinets, including a 3-by-5-foot island; laminate countertops; and standard double-tub stainless-steel sink with standard single-lever faucet. Include energy-efficient wall oven, cooktop, ventilation system, built-in microwave, dishwasher, garbage disposal, and custom lighting. Add new resilient flooring. Finish with painted walls, trim, and ceiling.

Cost: $57,520
Resale value: $36,044
Cost recouped: 62.7%

10.  Attic Bedroom:

Convert unfinished attic space to a 15-by-15-foot bedroom and a 5-by-7-foot bathroom with shower. Include a 15-foot shed dormer, four new windows, and closet space under the eaves. Insulate and finish ceiling and walls. Carpet floor. Extend existing HVAC to new space; provide electrical wiring and lighting to code. Retain existing stairs, but add rail and baluster around stairwell.

Cost: $53,696
Resale value: $32,371
Cost recouped: 60.3%

Want to learn more about buying or selling a home in the Kansas City and Overland Park areas? Check out my Facebook page.

Wednesday, January 9, 2013

Top 4 Things Homeowners Need to Know About The Fiscal Cliff


The fiscal cliff.  You may have heard of it and you may know what it is.  But how does the fiscal cliff affect homeowners and the real estate industry?  I have narrowed down the top 4 things homeowners need to know about the fiscal cliff in 2013:

1.  It’s all about the dates. 
There are some important dates that will affect you as a homeowner.  But what day is important and what day isn’t?  Here’s what you really need to remember:

  • The bill was signed into law by President Obama on January 2, 2013. 
  • Mortgage Cancellation Relief is extended for one year to January 1, 2014.
  • Deduction for Mortgage Insurance Premiums for filers making below $110,000 is extended through 2013 and made retroactive to cover 2012.  
  • 15-year straight-line cost recovery for qualified leasehold improvements on commercial properties is extended through 2013 and made retroactive to cover 2012.
  • 10 percent tax credit (up to $500) for homeowners for energy improvements to existing homes is extended through 2013 and made retroactive to cover 2012.

2.  Pease Limitations
Pease Limitations reduce the value of itemized deductions and are permanently repealed for most taxpayers.  These will, however, be reinstituted for high income filers (individuals earning more than $250,000 and joint filers earning above $300,000).  The amount of adjusted gross income above the threshold is multiplied by 3 percent, however, the total amount of reduction cannot exceed 80% of the filer’s itemized deductions.

3.  Capital Gains
Capital Gains rate stays at 15% for those in the top rate of $400,000 (individual) and $450,000 (joint) return.  After that, any gains above those amounts will be taxed at 20%.  The $250,000/$500,000 exclusion for sale of principal residence remains in place.

4.  Estate Tax
The first $5 million dollars in individual estates and $10 million for family estates are now exempted from the estate tax.  After that the rate will be 40 percent, up from 35 percent.  The exemption amounts are indexed for inflation.

To learn more about the fiscal cliff, be sure to visit the following resources:


Monday, November 5, 2012

The Impact of Natural Disasters on the Real Estate Market


The United States, and more specifically the Northeast states, are experiencing one of the largest hurricanes of all time.  At about the same size as the state of Texas, Hurricane Sandy has blown through the Northeast coast, leaving many New Yorkers in complete tragedy throughout the last few days of October 2012.  Sandy has threatened an estimated 284,000 homes and has caused approximately $87 billion in damages, according to CoreLogic.  Massapequa, located on the South Shore or Long Island, has more than $4.6 billion in total structure value at risk alone.

The impact of what is now being referred to as “Superstorm Sandy” does not only affect many families in the New York area, but Inman News has also reported that natural disasters, much like this one, can have a “chilling” effect on the real estate market. 

How so?

When natural disasters occur in certain areas, home buyer confidence greatly decreases.  In addition, these catastrophes have been proven to stall mortgage operations, hurt home sales and have even more dire consequences when combined with the current economic factors that our nation is experiencing. 
Take one of the nation’s most famous hurricanes of all time, for example—Hurricane Katrina.  Hurricane Katrina did more than kill more than 1,800 people and displace 750,000 households.  In addition, the number of homes sold in New Orleans dropped approximately 23% in just one year (May 2008-May 2009). 

The same exact outcome was reported in the real estate market after the 1989 and 1994 earthquakes in San Francisco.  Even after the massive oil spill on the Gulf Coast (although it was a man-made catastrophe rather than a natural disaster), the market crashed.  In fact, the Gulf Coast oil spill impacted the real estate industry so much that $60 million of BP’s $20 billion Claims Fund was set aside for real estate professionals. 

But that’s not to say that all catastrophes have a negative impact on the real estate market.  One of the biggest surges in the New York market happened immediately after 9/11.  After the terrorist attack, many home buyers took a stand against terrorism by purchasing even more homes in the beginning of 2002. 

Our homes mean everything to us—not only do they keep us safe and provide us with shelter, but they also hold a some of our favorite memories.  However, if you or your home ever undergoes a natural disaster, there are a few steps to take to alleviate the problem:
  • First and foremost, take safety precautions.  Keep in mind that the water flowing into your home may be contaminated and should not be used until advised so.  Be mindful of trees and other structures that could be unstable around your house.
  • Secondly, seek medical attention if needed.  Make sure that emergency services are able to get to your house or provide them with a safe alternate route in order to get there.  Always keep in mind where power lines and bridges are located. 
  • Next, safeguard your property.  Assemble your most prized possessions and find a safe place for them.
  • Contact your insurance company.  Take the time to fully understand what your homeowners or renters insurance policy does and does not cover. 
  • Next, contact your creditors.  Make sure that your creditors are fully aware of what has happened and provide them with a temporary address if possible. 
  • Finally, it’s time to do one of two things—repair or relocate. 

Natural disasters are an absolute tragedy and cannot be avoided.  From hurricanes to tornadoes, floods to fires, earthquakes to eruptions, we never know what to expect from Mother Nature.  The best thing to do during a time of natural disaster is to remain calm and stay safe. 

Team Ohlde would personally send our condolences to those affected by Hurricane Sandy.  We know that your home is an important part of your life and that the uncontrollability of natural disasters can weigh heavy on our hearts.  Thinking and praying for all of those on the Northeast coast.