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We’re remodeling our home ~ how much should be done in the kitchen?

by Allison Simson & Joyce Nenninger
Question: We’re remodeling our home and are in need of suggestions as to how much to do in the kitchen. Do you have any sources?
 
Answer: While planning to remodel her kitchen, Elizabeth Grudzinski writes in a special to the Miami Herald that she went online in search of related sites after visiting kitchen centers, looking through magazines, and calling architects, contractors, and designers. Because she still needed to make decisions about products such as cabinets and countertops, Grudzinski found the large number of kitchen remodeling sites on the Internet to be very helpful. "At its best, the Net will educate and help you make intelligent choices," writes Grudzinski. "Running from store to store is eliminated and you'll get a detailed picture of products in the market." Among the Web sites Grudzinski visited while remodeling her home were the Dacor site (www.dacor-appl.com), Trimline Design Center (www.trimlinedesign.com), and the National Kitchen and Bath Association (www.nkba.org). ÓInformation Inc. 2009
 
 
For answers to your real estate questions, call Allison at 970-468-6800. Email - [email protected]. Allison is a long time local in Summit County. Summit Real Estate – The Simson/Nenninger Team is located at the Dillon Ridge Marketplace. Allison’s long-time residency and years of real estate experience can help you make the most of any buying or selling situation. She’s a Certified Residential Specialist (CRS), the highest designation awarded to a Realtor in the residential sales field. Her philosophy is simple, whether buying or selling, she understands that the most important real estate transaction is yours.  Want to know the value of your Summit County property? Visit www.SummitHomeValue.com   

Should we re-carpet our home before putting on the market?

by Allison Simson & Joyce Nenninger
Question: We’ve been advised by our Realtor to re-carpet our home before putting it on the market. This comes as something of a surprise as we thought that the new owners would rather choose their own carpet. Allison, what do you suggest?
 
Answer: The more luxurious the flooring in a residence the better when it comes time to put a home on the market, according to Los Angeles-based real estate broker Robert Irwin, author of "Buy Right, Sell High."

In the case of carpeting, a replacement could increase the value of the home by much more than a few thousand dollars, which is about how much the project will cost. Wall-to-wall carpeting that is older than five years most likely will look worn to any prospective buyer of the home.  You don’t get a second chance to make a first impression…so the dollars you spend on flooring could very well be the difference between getting an offer or not.

When it comes to hardwood floors, home sellers should keep in mind that they should be able to withstand sanding and refinishing. For these reasons, homeowners should make sure the hardwood floors are thick enough. Also, owners of homes with tile floors should have replacement tiles available.
 
It is critical in today’s market that your property look as good as it can from the start. We often think that buyers want to choose the carpet, but the truth is that they want a place that already has great carpeting! You need to be “Parade Ready!”

For answers to your real estate questions, call Allison at 970-468-6800. Email - [email protected]. Allison is a long time local in Summit County. Summit Real Estate – The Simson/Nenninger Team is located at the Dillon Ridge Marketplace. Allison’s long-time residency and years of real estate experience can help you make the most of any buying or selling situation. She’s a Certified Residential Specialist (CRS), the highest designation awarded to a Realtor in the residential sales field. Her philosophy is simple, whether buying or selling, she understands that the most important real estate transaction is yours.  Want to know the value of your Summit County property? Visit www.SummitHomeValue.com   

Converting home to rental?

by Allison Simson & Joyce Nenninger
Converting home to rental?
 
Question: Allison,a friend of mine, whose two daughters are grown and gone, would like to remodel a home in the neighborhood, sell his present residence, and then move in to the remodel. Given the present conditions, he doesn't feel he can do either. He's uncomfortable with investing a ton of dollars on the remodel that he may otherwise need for day-to-day expenses, and he's afraid there's already too much inventory now on the market to list his home for sale "The remodel may be closer," he said. "There are a lot of people out there now willing to work for a lot less than they were two years ago. If the drop in labor costs reaches a point that it equals what some of my investments have lost, it's close to a wash. I might as well do it.” How would you suggest he proceed?
Answer: Good question. Borrowers who currently own their home typically have three options when they decide to purchase a new principal residence. They can sell the current residence and pay off the outstanding mortgage, make the property into a second home, or convert the property to an investment property. In the past two years, more and more people have been unable to sell and have been forced to consider the two other options.
Lenders do have some leeway in the case of a second-home conversion. Lenders may consider reducing reserves of no fewer than two months for both properties if there is documented equity of at least 30 percent in the existing property. The value can be derived from an appraisal, automated valuation model (AVM), or broker price opinion (BPO), minus outstanding liens. The previous guidelines did not include a required equity percentage.
If the owner wishes to convert the primary residence to a second home, the current and the proposed mortgage payments must be used to qualify the borrower for the new transaction.
If the current residence is converted to an investment property, Fannie Mae will continue to permit up to 75 percent of the rental income to be used to offset the mortgage payment. Again, the new twist is the needed documented equity of at least 30 percent in the existing property. The rental income must be documented with a copy of the fully executed lease agreement, and the receipt of a security deposit from the tenant and deposit into the borrower's account. If the 30 percent equity in the property cannot be documented, rental income may not be used to offset the mortgage payment.
If the current principal residence is a pending sale, but the transaction will not be closed (with title transfer to a new owner) prior to the new transaction, both the current and the proposed mortgage payments must be used to qualify the borrower for the new transaction. This sometimes occurs unexpectedly when an escrow is delayed or when an employee is transferred to a new location and buys a new home before the previous home sells.
Who can afford to pay cash for an additional home without first selling their primary residence? Surprisingly, more than four out of 10 investment buyers and more than three in 10 vacation-home buyers paid cash for their properties, with large percentages indicating that portfolio diversification was a factor in their purchase decision, according to recent study by the National Association of Realtors.
All cash for real estate -- proof that somebody thinks it's a good idea.
 
For answers to your real estate questions, call Allison at 970-468-6800. Email - [email protected]. Allison is a long time local in Summit County. Summit Real Estate – The Simson/Nenninger Team is located at the Dillon Ridge Marketplace. Allison’s long-time residency and years of real estate experience can help you make the most of any buying or selling situation. She’s a Certified Residential Specialist (CRS), the highest designation awarded to a Realtor in the residential sales field. Her philosophy is simple, whether buying or selling, she understands that the most important real estate transaction is yours.  Want to know the value of your Summit County property? Visit www.SummitHomeValue.com   

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Summit Real Estate
The Bright Choice
330 Dillon Ridge Way, Suite 10
Dillon CO 80435
970-468-6800
800-262-8442
Fax: 970-468-2195

Allison Simson, Owner/Broker, is a licensed Colorado Real Estate Broker