Should You Buy Now?

Housing may never be this affordable again. Over the past few months, the market has created a unique opportunity for first-time home buyers. If you are renting, you should act now to take advantage. Here are a few reasons renters should take a serious look at buying now:


IMPROVE YOUR LIFESTYLE
Homeownership is the best way to improve your lifestyle. The ability to choose your own home, be your own landlord and start saving for the future is a great opportunity. Maybe your family needs a yard, a garden, room to grow, new schools or just a fresh start.

TAKE ADVANTAGE OF GREAT PRICING
Housing in Utah is affordable again. More than ever before, the market is offering great pricing and incentives. It is a buyer's market and this means you can find great deals on your new home. Take advantage of today's pricing before it's too late.

RECEIVE SIGNIFICANT TAX BENEFITS
There are two great tax benefits available for first-time homebuyers. First, the new $7,500 first-time home buyer tax credit in only available for a few months. Purchase before the July 1, 2009, deadline and the amount will come as a refund when you file your 2008 or 2009 tax returns. In addition to this temporary benefit, each year homeowners can deduct their mortgage interest and property taxes. This keeps more money in your pocket right away and each year that you own your home.

AVOID RISING RENTAL RATES
Rental rates in Utah have been rising.In Salt Lake County, they increased 9.2 percent over the past year. Become your own landlord and stop flushing your money down the toilet.

LOCK IN GREAT INTEREST RATES
Interest rates are one of the biggest factors influencing the affordability of your monthly payment. Right now, interest rates are near 30-year lows.This helps make your first home more affordable and keeps money in your pocket. For example, if you wait to buy and interest rates increase 1 percent, your payment will increase by $165 on a $250,000 loan. In other words, you lose $27,417 in purchasing power. Act now before rates increase further.

GET THE BEST HOME AND LOCATION
There are currently a large number of homes on the market. The best options for homes and locations in each community always move first. Move quickly to make sure you are the one who gets the best option.

Taken from utahhousingfacts.com, November 17, 2008

Remodeling...what boosts value?

Ever wondered how to increase the value of you home? Take a look at this.

2007 Cost vs. Value Report

Remodeling magazine's annual "Cost vs. Value Report" shows exterior and replacement projects bring the biggest return.
December 2007

Home rehabbers who are considering a move in the not-too-distant future should focus mostly on exterior upgrades. That’s the message from REALTORS® who participated in Remodeling magazine’s 20th annual "Cost vs. Value Report," done in cooperation with REALTOR® Magazine.

REALTORS® in 65 markets were given construction specs and costs on 29 upscale and midrange projects and asked to estimate the percentage return at resale.

Of projects that saw national cost recovery rates of more than 80 percent in 2007, only one — a minor kitchen remodel, with 83 percent of cost recovered — was a strictly interior job. The others were an upscale siding replacement using fiber cement materials (88.1 percent), a wood deck addition (85.4 percent), midrange vinyl siding replacement (83.2 percent), and upscale vinyl and midrange wood window replacements (81 percent and 81.2 percent, respectively).

On most projects, the value of remodeling trended down in 2007 compared with 2006. No project exceeded an 88 percent return. The likely culprits for the year-to-year drop: rising remodeling costs and slowing home appreciation brought on by the lackluster housing market in many areas.

The story was somewhat different in the Pacific region, however, where REALTORS® estimated cost recovery of more than 100 percent for six projects: a wood deck addition, a minor kitchen remodel, fiber-cement siding replacement, wood window replacement, and an upscale wood and vinyl window replacement.

Nationally, projects at the bottom of the cost-recovery ladder included home office remodels (57 percent), installing a back-up power generator (58 percent), and adding a mid-range sunroom (59.1 percent).

Put Costs and Values in Context

Looked at over a number of years, some projects appear to recoup considerably less than others. Home office remodels, for instance, have been at or near the bottom of the national averages since 2005 when the project was added to the survey. People investing in a home office typically do so to fill a specific need, such as to start a home-based business or telecommute. A prospective buyer with different space needs won’t see the value, regardless of the cost.

On the other hand, since minor kitchen remodels were added to the report in 2004, they’ve consistently ranked among the highest-value projects, according to practitioners surveyed.

When looking at cost estimates for individual projects, remember that averaging tends to have a leveling effect on job cost data. Also, seemingly small differences in project size and scope, or in the quality of finishes, can dramatically affect final project cost.

It’s also important to consider whether a remodeled space reduces the perceived number of rooms or available square footage. For example, carving a half-bath out of unused storage space under a staircase is an obvious gain in usable space. But converting an existing bedroom into a master bath, while a positive development in many respects, may reduce the number of bedrooms below the minimum expectation of some prospective buyers.

Similarly, the cost recouped on a given remodeling project depends on a wide variety of factors. These include the condition of the rest of a house, the value of similar homes nearby, and the rate at which property values are changing in the surrounding area. A home’s urban, suburban, or rural setting also affects its value, as does the availability and cost of new and existing homes in the immediate vicinity.

Finally, there can be wide regional swings. A midrange bathroom remodel recovers 85 percent of its cost in the South but only 63 percent in the Midwest.

Where resale value is a major factor in a home owner’s decision to remodel, the best course of action is to consult with a local remodeler about construction cost — and look closely at the comps and market conditions.
http://www.realtor.org/archives/2007costvsvalue 11/10/2008