Construction Deal Update

Spring is here! As we're slowly crawling out from under the heavy blanket of winter, we'll soon want to prepare our homes for the warmer weather of Spring and Summer. Summer heat usually means cranking up the air conditioner to keep your rooms cool and comfortable. And... that means higher utility bills.

Not only does your HVAC unit put a dent in your wallet, it can also harm the environment. The more energy your home consumes, the more oil or coal has to be burned to provide you with the electricity. Going green is on the tip of everyone's tongue these days and for good reason. Would you like a tip on how to not only save money on your electric bill but also cut down on the amount of electricity you use?

The California Energy Commission states that 40% of all the heat that comes in to your home is moving through the glass of your windows. My suggestion is not to board up your windows. You want to let in natural light, of course, to keep you from needing electricity to power your lights!

Seriously, you can make a difference. And it's the same technology you use on your car. Adding window tint can dramatically reduce the amount of heat transfer while still letting in sunlight. There are different window films to choose from. Some add a darkening tint, similar to your sunglasses to cut down on heat and light. Another type of tint has a reflective surface to push heat and light away from the windows. There are also clear window films that do not prevent as much heat gain as the others but will still allow the same amount of natural light into the room.

You can vary the window tint around your house based on which windows have more or less direct sunlight. Window tinting can be a do-it-yourself process or you can bring in a professional for a quality installation. The California Energy Commission says that the DIY kits may not last as long as the installed kits, but are more affordable. Depending on the variety, the window films can cut the amount of heat entering through windows by 15% to nearly 40%! This can lead to lower utility bills because your air conditioner won't have to work as hard to cool your home. If you're building a new home, it could also mean the installation of a smaller or more efficient a/c unit for the house.

Everyone wants to do more for the environment. It's the only one we've got and we need to start doing every thing we can to protect it. Adding fluorescent light bulbs to every light fixture, replacing old appliances with energy-efficient ones, and tinting your home windows are just a few steps you can take to improve your environmental footprint and help your bank account.

RELATED POSTS:
Time to Rethink the Ceiling Fan
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Hot Modular Homes with Green Construction in Mind

We've added a Window Tinting category to our residential home improvement section soon. If you'd like to find a window tint specialist for your home, post it today and we'll find you a local company to help save you money. It's a free service to all homeowners.

Labels: Energy Efficiency, Saving Money

The real estate boom peaked in 2005 and the housing bubble has been slowly deflating ever since. Economists say that risky lending practices and speculative real estate investing purchases pushed the home prices high and now we're in the midst of a correction.

But that doesn't stop people from wanting to flip homes for a profit. Interest is still high to buy a bargain home, fix it up, and sell it for a high price.

Is it too late to start flipping homes as an investment strategy?

The short answer is... it depends. America is faced with a supply and demand issue. Home builders built too many homes, other real estate investors gobbled up property only to flood the market, and people are losing their homes to foreclosure. All of those issues have increased the supply of homes for sale in the market.

And, demand is down. Despite the fact that interest rates are good and the job market is strong, potential buyers are worried that the market has not hit bottom. Buyers don't want to purchase a home that they think they could have gotten for less in 6 months time.

Another problem is that too many subprime, risky mortgage loans were made to people who couldn't afford those homes or who had shaky credit. As their payments rise, more and more homes will go back on the market, at low prices, in the foreclosure process. And because lenders will be tightening their credit policies, fewer people will be eligible to buy homes - - keeping the excess inventory of homes high.

What does this all mean to a potential House Flipper?

If the goal is to buy low, renovate, and sell high then this market could be a real problem for a real estate investor. One advantage you'll have in a situation like this -- there are a lot of homes for sale. Homes that can be bought "low".

The problem comes when you compare the term "low." Home prices are dropping and, in most areas, should continue to drop across the country for the rest of this year and perhaps into next year. You could get a great deal on a house compared to 2005 prices. But, if prices really drop in your area of interest, your great bargain might end up being too expensive before you do any renovations.

So, it's all bad news?

Not necessarily. Some areas will still be in high demand and housing supplies are not excessive everywhere across the country. A wise investor who knows the real estate market in their area can still flip homes. Or, if you don't know your investment area, it would really pay to partner with someone who does. A quality realtor knows how to find the diamond in the rough.

The trick to real estate investment in a shaky market like this one is to find the ugliest house in prettiest neighborhood and (here's the key) make sure it's still a neighborhood that people want to buy in to.

What steps are needed to flip a house?

Many people are going to make the mistake of scooping up properties, sight-unseen, that have gone into foreclosure. They may feel that any bargain is a wise investment. They will most likely be wrong.

Many homes will fall into foreclosure in 2007. Many: "The percentage of mortgages that started the foreclosure process in the final quarter of last year rose to 0.54 percent, a record high. The previous high, 0.50 percent, occurred in the second quarter of 2002 as the economy was recovering from the blows of the 2001 recession."

Bloomberg says as many as 2.2 million homes with subprime mortgages may be at risk. It's going to be important that investors not focus on getting a great deal on a foreclosure. As with all real estate decisions, it's still about "Location, location, location." You still want to make sure the home is in a desirable location (the ugliest house in the prettiest neighborhood, remember?)

Next, you want to partner with a contractor who can be available for fast and quality remodeling projects. The renovation process cannot take too long. The home needs to be purchased, remodeled, and sold as quickly as possible. Every mortgage payment cuts into the bottom line.

Make sure you have the home inspected, if possible, before you buy. You cannot afford to put money into needed repairs that are not visible to a potential buyer. Replacing electrical wiring, air conditioners, faulty subfloors, and repairing mold damage eats away at your budget and does nothing to impress anyone during a showing.

When it comes to your renovation plans, less can be more. Remodel the home with aesthetic details in mind (Read: How to Beat the Housing Bubble.) Start with fixing and improving what can be seen. Get the house to appeal to the emotions of a potential home buyer. Sometimes a home can be flipped by just painting the interiors and laying new carpeting. Many times, to realize a true profit, you'll need to go farther.

Start with the Kitchen. Kitchen remodeling is the heart of every home. And the emotional attraction for homebuyers (Read: Budget Kitchen Remodeling.) Kitchen renovations bring in the great return on investment, statistically (if it's done right.) Fix up bathrooms next. They also provide good returns. Flooring and paint are also big parts of any renovation for a flip. Don't go with wild or extreme colors or fixtures or materials - just because you like it doesn't mean the buyer will like it. But don't go with boring white colors or cheesy laminates. Safe, neutral materials and earth tone colors are the best (Read: Paint Color Trends.) Go with stainless steel appliances, granite counters, and hardwood floors. But do not go with the top of the line brand in any product or material you buy. Keep your budget in mind.

Outside, make sure the curb appeal of the house is up to date (Read: Top 6 Landscaping Tips) It's the first thing the potential buyer sees and first impressions really are everything. Cut back overgrowth of bushes and trees. Sod the yard. Fix broken shutters. Paint the house or fix the stucco or siding. Make it as inviting as possible.

What about selling the investment property?

After you've completed your property renovation, you'll need to put the house on the market. Don't try to skimp on selling your house. Many get greedy and try to save money by not working with a good real estate professional at this point. They foolishly believe that they can sell the house on their own. A quality realtor can spread the word in all the right places to make sure you garner attention to your property.

Also, pricing the house too high for the area - in this market - can kill your prospects. With so many choices out there, and so many comparably priced new homes that are still for sale, it's suicide to be greedy on your selling price. Make a splash by having a newly remodeled home at a good price and you may end up with more than one interested party who will give you more than your asking price.

Finally, be prepared for the worse case scenario. You may renovate a house and have it sit on the market for longer than you expect. If the economy tanks and people start losing jobs, you could be stuck with your investment. Remember that there are people who would love to buy the house but cannot sell their's. And that there are many homes to choose from so you've really got to have a great house in a hot neighborhood. And, there are now fewer potential buyers with the risky loans and tightened credit policies (very few will offer people 100% financing anymore.)

If you can live in the property while you're flipping it, you may curb some of the dangers of being stuck with a 2nd or 3rd mortgage. If the house doesn't sell immediately, you'll be able to live in it and hang on through a tough market.

RELATED POSTS:
How Not to Beat the Bursting Housing Bubble
Ways to Improve Your Home Value
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When you're ready to renovate - post all your remodeling projects on the Construction Deal.com website. It's a fast, free and easy way to get multiple bids on your jobs. Just post the project and wait for quality pros to contact you. It's also a great way to make sure you have a backup contractor in case one you've chosen is not available fast enough.

Producers of the show "Flip This House" use Construction Deal find contractors. What more of an endorsement do you need?

Labels: House Flipping, Housing Bubble, Real Estate, Real Estate Investment

Believe it or not but many homeowners are choosing to replace their current bathtub/shower with only a shower. It could be called the latest trend in bathroom remodeling, but many people still want to have a good old fashioned bath tub installed in the room. Do you have pets or kids? It's hard to not have a tub in your house and many forget that when they switch to a shower-only home.

If you still look forward to soaking in a stress-relieving tub full of steaming hot water, you'll probably already have refurbishing or replacing the bathtub on your list of "must-haves" for the renovation project. Your next step will be to decide on a bath tub style.

The Comfort Factor
Many homes had simple drop-in tubs thrown in during new construction and the only requirement was that the tub fit in the room. When you're considering your next bathtub purchase, you need to make sure you not only fit in the tub or that it fits the room but you also need to make sure it's right for you. Some tubs have added padding inside to protect you from the typical hard surface while you soak.

The Style Factor
Your choice of tub styles is wide and varied, but you'll be somewhat constrained by the size of the room and the overall style after the renovation. If you're going for an antique or class or retro look in the room, with old world fixtures, you'll be better served by adding a claw foot or other free-standing tub. Putting a modern whirlpool or a sleek "over-flow" tub in a room with that older style will make it look out of place.

Some Choices Include:

• Tub & Shower
• Pedestal Tubs
• Whirlpool Spas
• Claw-foot or Solid Leg Tubs
• Corner Tubs
• Soaking Baths
• Over-flow Tubs
  
• Drop-in or Alcove Tubs

Your Choice of Materials and Colors
Your head will spin when you realize there are so many styles, colors, and bathtub materials to choose from. Style should help narrow your choices down.

Some Choices Include:

• Porcelain on Steel
• Cast Iron
• Acrylic
• Natural Stone (Marble)
• Fiberglass
• Wood (Teak)
• Solid Surface

Colors for these materials go way beyond the standard white that has been installed in nearly every bathroom for the past two centuries. White is still the most popular color choice, but tubs can come in tan, green, pink, blue, off-white, black, and just about any color you need to match your style and color choices in the rest of the room.

The Size Factor
Standard five foot long tubs, usually with a 15" to 17" depth, are also not your only choices. There are longer and deeper styles available. Consider whether your tub will be a one person, two person, handicapped or senior-accessible tub, and also whether larger or smaller people will be using it. Kids and pets can also effect what size tub you choose. There are special order tubs for smaller and larger sizes, of course, but most tubs are in the 5 to 6 foot range.

RELATED POSTS:
Budget Bathroom Remodeling Ideas
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If you're looking to find a local bathtub or bath remodeling company, don't forget about Construction Deal.com. On our site, you can post your project in minutes and sit back to wait for bathroom renovators to call you. It saves you time. And, having multiple bids from several companies could save you money, too. Give us a call if you have any questions! Toll Free: 866-663-4711

Labels: Bath Renovation, Bathroom Remodeling