Deducting mortgage interest, as well as interest on home equity loans and HELOCs, can save money on taxes. Deducting mortgage interest is a great tax benefit that can make homeownership more affordable. Your first mortgage isn’t the only loan that qualifies, either. In many cases, you can also deduct interest on home equity loans, second mortgages, and home equity lines of credit, or HELOCs.
If you want to deduct all of your mortgage interest, there are limits on both how much money you can borrow and on what you do with the money you get. You also need to itemize your return to reap the benefits of these deductions. Calculations can be complicated, so consult a tax adviser.
Know your loan limits
A good place to check out what you can deduct before you borrow is the chart on page 3 of IRS Publication 936. It’ll walk you through the requirements you must meet to deduct all of your home loan interest. It’s an hour well spent.
The first hurdle you’ll run into is the total amount of your loan or loans. In general, individuals and couples filing jointly can deduct the interest on up to $1 million ($500,000 if you’re married and filing separately) in combined home loans, as long as the money was used for acquisition costs, that is the cost to buy, build, or substantially improve a home, explains Scott O’Sullivan, a certified public accountant with Margolin, Winer & Evens in Garden City, N.Y. Any interest paid on loan amounts above the $1 million threshold isn’t deductible.
The same $1 million limit applies whether you have one home or two. Buying a vacation home doesn’t double your loan limits. And two homes is the max; you can’t deduct a mortgage for a third home. If you have a mortgage you took out before Oct. 13, 1987, you have fewer restrictions on claiming a full deduction. The calculations for “grandfathered debt” can get complex, so get help from a tax professional or refer to IRS Publication 936.
Whatever you do, don’t forget that you can also deduct the points and fees associated with a first or second mortgage when you initially buy your home, says Jeff Rattiner, a CPA with JR Financial Group in Centennial, Colo. If you refinance the same house, you have to deduct those costs over the entire term of the loan. If you refinance again, you can deduct all the costs from the earlier refi in the year you take out the new loan.
Spend loan proceeds wisely
The other limitation on how much you can borrow and still get your deduction comes into play when you take out a home equity loan or HELOC that you don’t use to buy, build, or improve your home. In that case, you can deduct the interest you pay only on the first $100,000 ($50,000 if married filing separately). This loan limit also applies in a so-called cash-out refi, in which you refinance and take out part of the equity you’ve built up as cash, says John R. Lieberman, a CPA with Perelson Weiner in New York City.
That means if you decide to take out a $115,000 home equity loan to buy that Porsche, you can deduct the interest on the first $100,000 but not on the $15,000 that exceeds the limit. Use the same $115,000 to add a new bedroom, however, and the full amount is allowable under the $1 million cap. Keep in mind, though, that the $115,000 gets added into the pot of whatever else you owe on your other home loans. In many cases, points and loan origination costs for HELOCs are deductible.
Consider this simplified scenario: You borrow $250,000 against your home at 8% interest. That means you’ll pay $20,000 in interest the first year. Spend the $250,000 on home improvements, and all of the interest is deductible. Spend $150,000 on improvements and $100,000 on your kids’ college tuition, and all the interest is still deductible.
But spend $100,000 on improvements and $150,000 on tuition, and the improvement outlays are deductible but $50,000 of the tuition expense isn’t. That’ll cost you $4,000 in interest deductions. Preserve the $4,000 deduction by coming up with the extra money for tuition from another source, perhaps a low-interest student loan or by borrowing from a retirement plan. In 2009, lowering your taxable income by $4,000 to $96,000 would’ve cut your tax bill by $988.
Beware the dreaded AMT
Even if you’ve followed all the loan limit rules, you can still get stuck paying tax on mortgage interest. How come? It’s all thanks to the Alternative Minimum Tax. Congress created the AMT, which limits or eliminates many deductions, as a way to keep the wealthy from dodging their fair share of taxes.
Calculating the AMT can be complex, but if you make more than $75,000 and have several kids or other deductions, you might well be subject to it. Problem is, if you fall into the AMT group, you may not be able to deduct interest on a home equity loan, even if the loan falls within the $1 million/$100,000 limit. If you’re subject to the AMT and borrow money against the value of your home, you’ll have to use it to buy, build, or improve your place, or you may not have a chance to deduct the interest, says Rattiner, the Colorado CPA.
This article provides general information about tax laws and consequences, but is not intended to be relied upon by readers as tax or legal advice applicable to particular transactions or circumstances. Readers should consult a tax professional for such advice, and are reminded that tax laws may vary by jurisdiction.
Friday, June 25, 2010
Wednesday, June 16, 2010
Mortgage rates return to 2010 low
The low rates, combined with weakened housing prices, provide a great opportunity for homebuyers. Yet many markets are still far from a turnaround.
[Related content: homes, interest rates, mortgage, loans, financial planning]
By Bankrate.com
Mortgage rates have fallen to their lowest point for the year.
The benchmark 30-year fixed-rate mortgage fell 5 basis points over the past week, to an average of 5.07%, according to the Bankrate.com national survey of large lenders. (A basis point is one-hundredth of a percentage point.) That ties the 2010 low from the March 17 survey.
The mortgages in the latest survey had an average total of 0.42 discount and origination points. One year ago, the mortgage index was 5.21%; it was also 5.21% four weeks ago.
Check mortgage rates near historical lows
The benchmark 15-year fixed-rate mortgage slipped 4 basis points, to an average of 4.45%. The benchmark 5/1 adjustable-rate mortgage also dropped 4 basis points, to 4.27%.
Invisible fall
But if mortgage rates tumble across America and nobody sees the drop, does it really happen? $150 million home for sale
When the stock market suddenly plunged nearly 1,000 points in a few minutes May 6, mortgage rates also collapsed. By some accounts, rates fell to about 4.5% on the 30-year fixed and below 4% for some adjustable-rate mortgages.
But mortgage professionals say the rock-bottom borrowing costs didn't last long and went largely unnoticed by the public.
"I think it kinda sailed over everyone's heads because everyone was hypnotized by the crash in the stock market," says Jeff Lazerson, the president of Mortgage Grader in Laguna Niguel, Calif.
Chris Sipe, a senior loan officer at Embrace Home Loans in Frederick, Md., says that when rates fell, he experienced a "little pop" in refinance activity -- but mostly because he called clients to alert them to the unexpected opportunity.
[Related content: homes, interest rates, mortgage, loans, financial planning]
By Bankrate.com
Mortgage rates have fallen to their lowest point for the year.
The benchmark 30-year fixed-rate mortgage fell 5 basis points over the past week, to an average of 5.07%, according to the Bankrate.com national survey of large lenders. (A basis point is one-hundredth of a percentage point.) That ties the 2010 low from the March 17 survey.
The mortgages in the latest survey had an average total of 0.42 discount and origination points. One year ago, the mortgage index was 5.21%; it was also 5.21% four weeks ago.
Check mortgage rates near historical lows
The benchmark 15-year fixed-rate mortgage slipped 4 basis points, to an average of 4.45%. The benchmark 5/1 adjustable-rate mortgage also dropped 4 basis points, to 4.27%.
Invisible fall
But if mortgage rates tumble across America and nobody sees the drop, does it really happen? $150 million home for sale
When the stock market suddenly plunged nearly 1,000 points in a few minutes May 6, mortgage rates also collapsed. By some accounts, rates fell to about 4.5% on the 30-year fixed and below 4% for some adjustable-rate mortgages.
But mortgage professionals say the rock-bottom borrowing costs didn't last long and went largely unnoticed by the public.
"I think it kinda sailed over everyone's heads because everyone was hypnotized by the crash in the stock market," says Jeff Lazerson, the president of Mortgage Grader in Laguna Niguel, Calif.
Chris Sipe, a senior loan officer at Embrace Home Loans in Frederick, Md., says that when rates fell, he experienced a "little pop" in refinance activity -- but mostly because he called clients to alert them to the unexpected opportunity.
Tuesday, June 15, 2010
Tax Breaks on Capital Improvements to Your Home
Keeping track of the cost of capital improvements to your home can really pay off on your tax return when it comes time to sell. It’s no secret that finishing your basement will increase your home’s value. What you may not know is the money you spend on this type of so-called capital improvement could also help lower your tax bill when you sell your house.
Tax rules let you add capital improvement expenses to the cost basis of your home. Why is that a big deal? Because a higher cost basis lowers the total profit—capital gain, in IRS-speak—you’re required to pay taxes on.
The tax break doesn’t come into play for everyone. Most homeowners are exempted from paying taxes on the first $250,000 of profit for single filers ($500,000 for joint filers). If you move frequently, maybe it’s not worth the effort to track capital improvement expenses. But if you plan to live in your house a long time or make lots of upgrades, saving receipts is a smart move.
What counts as a capital improvement?
While you may consider all the work you do to your home an improvement, the IRS looks at things differently. A rule of thumb: A capital improvement increases your home’s value, while a non-eligible repair just returns something to its original condition. According to the IRS, capital improvements have to last for more than one year and add value to your home, prolong its life, or adapt it to new uses.
Capital improvements can include everything from a new bathroom or deck to a new water heater or furnace. Page 9 of IRS Publication 523 has a list of eligible improvements. There are limitations. The improvements must still be evident when you sell. So if you put in wall-to-wall carpeting 10 years ago and then replaced it with hardwood floors five years ago, you can’t count the carpeting as a capital improvement. Repairs, like painting your house or fixing sagging gutters, don’t count. The IRS describes repairs as things that are done to maintain a home’s good condition without adding value or prolonging its life.
There can be a fine line between a capital improvement and a repair, says Erik Lammert, tax research specialist at the National Association of Tax Professionals. For instance, if you replace a few shingles on your roof, it’s a repair. If you replace the entire roof, it’s a capital improvement. Same goes for windows. If you replace a broken window pane, repair. Put in a new window, capital improvement. One exception: If your home is damaged in a fire or natural disaster, everything you do to restore your home to its pre-loss condition counts as a capital improvement.
How capital improvements affect your gain
To figure out how improvements affect your tax bill, you first have to know your cost basis. The cost basis is the amount of money you spent to buy or build your home including all the costs you paid at the closing: fees to lawyers, survey charges, transfer taxes, and home inspection, to name a few. You should be able to find all those costs on the settlement statement you received at your closing.
Next, you’ll need to account for any subsequent capital improvements you made to your home. Let’s say you bought your home for $200,000 including all closing costs. That’s the initial cost basis. You then spent $25,000 to remodel your kitchen. Add those together and you get an adjusted cost basis of $225,000.
Now, suppose you’ve lived in your home as your main residence for at least two out of the last five years. Any profit you make on the sale will be taxed as a long-term capital gain. You sell your home for $475,000. That means you have a capital gain of $250,000 (the $475,000 sale price minus the $225,000 cost basis). You’re single, so you get an automatic exemption for the $250,000 profit. End of story.
Here’s where it gets interesting. Had you not factored in the money you spent on the kitchen remodel, you’d be facing a tax bill for that $25,000 gain that exceeded the automatic exemption. By keeping receipts and adjusting your basis, you’ve saved about $3,750 in taxes (based on the current 15% tax rate on capital gains). Well worth taking an hour a month to organize your home-improvement receipts, don’t you think?
Watch out for these basis-busters
Some situations can lower your basis, thus increasing your risk of facing a tax bill when you sell. Consult a tax advisor. One common one: If you take depreciation on a home office, you have to subtract those deductions from your basis. Any depreciation taken if you rented your house works the same way. You also have to subtract subsidies from utility companies for making energy-related home improvements or energy-efficiency tax credits you’ve received. If you bought your home using the federal tax credit for first-time homebuyers, you’ll have to deduct that from your basis too, says Mark Steber, chief tax officer at Jackson Hewitt Tax Services.
Tax rules let you add capital improvement expenses to the cost basis of your home. Why is that a big deal? Because a higher cost basis lowers the total profit—capital gain, in IRS-speak—you’re required to pay taxes on.
The tax break doesn’t come into play for everyone. Most homeowners are exempted from paying taxes on the first $250,000 of profit for single filers ($500,000 for joint filers). If you move frequently, maybe it’s not worth the effort to track capital improvement expenses. But if you plan to live in your house a long time or make lots of upgrades, saving receipts is a smart move.
What counts as a capital improvement?
While you may consider all the work you do to your home an improvement, the IRS looks at things differently. A rule of thumb: A capital improvement increases your home’s value, while a non-eligible repair just returns something to its original condition. According to the IRS, capital improvements have to last for more than one year and add value to your home, prolong its life, or adapt it to new uses.
Capital improvements can include everything from a new bathroom or deck to a new water heater or furnace. Page 9 of IRS Publication 523 has a list of eligible improvements. There are limitations. The improvements must still be evident when you sell. So if you put in wall-to-wall carpeting 10 years ago and then replaced it with hardwood floors five years ago, you can’t count the carpeting as a capital improvement. Repairs, like painting your house or fixing sagging gutters, don’t count. The IRS describes repairs as things that are done to maintain a home’s good condition without adding value or prolonging its life.
There can be a fine line between a capital improvement and a repair, says Erik Lammert, tax research specialist at the National Association of Tax Professionals. For instance, if you replace a few shingles on your roof, it’s a repair. If you replace the entire roof, it’s a capital improvement. Same goes for windows. If you replace a broken window pane, repair. Put in a new window, capital improvement. One exception: If your home is damaged in a fire or natural disaster, everything you do to restore your home to its pre-loss condition counts as a capital improvement.
How capital improvements affect your gain
To figure out how improvements affect your tax bill, you first have to know your cost basis. The cost basis is the amount of money you spent to buy or build your home including all the costs you paid at the closing: fees to lawyers, survey charges, transfer taxes, and home inspection, to name a few. You should be able to find all those costs on the settlement statement you received at your closing.
Next, you’ll need to account for any subsequent capital improvements you made to your home. Let’s say you bought your home for $200,000 including all closing costs. That’s the initial cost basis. You then spent $25,000 to remodel your kitchen. Add those together and you get an adjusted cost basis of $225,000.
Now, suppose you’ve lived in your home as your main residence for at least two out of the last five years. Any profit you make on the sale will be taxed as a long-term capital gain. You sell your home for $475,000. That means you have a capital gain of $250,000 (the $475,000 sale price minus the $225,000 cost basis). You’re single, so you get an automatic exemption for the $250,000 profit. End of story.
Here’s where it gets interesting. Had you not factored in the money you spent on the kitchen remodel, you’d be facing a tax bill for that $25,000 gain that exceeded the automatic exemption. By keeping receipts and adjusting your basis, you’ve saved about $3,750 in taxes (based on the current 15% tax rate on capital gains). Well worth taking an hour a month to organize your home-improvement receipts, don’t you think?
Watch out for these basis-busters
Some situations can lower your basis, thus increasing your risk of facing a tax bill when you sell. Consult a tax advisor. One common one: If you take depreciation on a home office, you have to subtract those deductions from your basis. Any depreciation taken if you rented your house works the same way. You also have to subtract subsidies from utility companies for making energy-related home improvements or energy-efficiency tax credits you’ve received. If you bought your home using the federal tax credit for first-time homebuyers, you’ll have to deduct that from your basis too, says Mark Steber, chief tax officer at Jackson Hewitt Tax Services.
Monday, June 14, 2010
More Time For Homebuyers
Homebuyers could get more time for tax credit
NEW YORK (CNNMoney.com) -- First-time homebuyers looking to land an $8,000 federal income tax credit may have a little more time to close on their purchases if a Senate amendment unveiled Thursday makes it into law.
As it stands now, homebuyers must have signed contracts by April 30 and must close the deal by June 30. They could be eligible for an $8,000 tax credit if they are first-time buyers or a $6,500 credit if they owned and lived in their previous home for five of the last eight years.
362diggEmail Print CommentThe closing deadline, however, could be pushed back to Sept. 30 under an amendment offered by Senate Majority Leader Harry Reid, D-Nev., Sen. Johnny Isakson, R-Ga., and Sen. Chris Dodd, D-Conn. The senators said they want to make sure banks have time to process the transactions -- especially short-sales, which is a more involved process.
"By extending the transaction deadline, we can ensure that everyone taking advantage of this credit can complete the purchase of their new home, Reid said.
It remains to be seen, however, whether the amendment will go anywhere. It's part of a controversial jobs and tax bill that may be radically changed before the Senate approves it. Lawmakers are not scheduled to vote on the bill until next week at the earliest.
NEW YORK (CNNMoney.com) -- First-time homebuyers looking to land an $8,000 federal income tax credit may have a little more time to close on their purchases if a Senate amendment unveiled Thursday makes it into law.
As it stands now, homebuyers must have signed contracts by April 30 and must close the deal by June 30. They could be eligible for an $8,000 tax credit if they are first-time buyers or a $6,500 credit if they owned and lived in their previous home for five of the last eight years.
362diggEmail Print CommentThe closing deadline, however, could be pushed back to Sept. 30 under an amendment offered by Senate Majority Leader Harry Reid, D-Nev., Sen. Johnny Isakson, R-Ga., and Sen. Chris Dodd, D-Conn. The senators said they want to make sure banks have time to process the transactions -- especially short-sales, which is a more involved process.
"By extending the transaction deadline, we can ensure that everyone taking advantage of this credit can complete the purchase of their new home, Reid said.
It remains to be seen, however, whether the amendment will go anywhere. It's part of a controversial jobs and tax bill that may be radically changed before the Senate approves it. Lawmakers are not scheduled to vote on the bill until next week at the earliest.
Tuesday, May 18, 2010
Rahway Hot Rods & Harley Day Success
Congrats goes out to all the agents in the CENTUTRY 21 JRS Realty Rahway office that helped make the annual Hot Rods & Harley Day a GREAT SUCCESS.
Sunday, April 18, 2010
Low-Maintenance Lawn Alternatives: Ground Cover
If you want a yard that demands less time, money, and water, consider ground cover rather than a traditional lawn. Americans have long had a soft spot for lawns. Turf grass covers nearly 47 million acres in the U.S., according to the Lawn Institute. But there’s plenty that’s not green about all that green. For starters, the average household dumps 60 gallons of water a day on conventional lawns. Toxic lawn herbicides and pesticides run off into lakes and streams. Gas-powered mowers spew pollution into the air. And then there’s all that time spent watering, weeding, seeding, sodding, thatching, and mulching.
If you’re looking for an alternative, consider replacing some or all of your high-maintenance turf with ground covers that form walkable “carpets,” and innovative grasses that require little or no water or mowing once established.
In turn, you’ll reduce the need for irrigation, stop washing harmful chemicals into the watershed, add depth and texture to your landscape, and spend your spare time enjoying your yard instead of manicuring it.
Creeping perennials, clover, and other ground covers
There’s a ground cover to meet most needs, whether you’re planting a pathway, a hedge, or a broad swath of green. They run the gamut of foliage textures and colors, and many have wonderful flowers. Some varieties are ground-hugging and feel delicious under bare feet. Others grow up to two feet tall, making them ideal as barriers or landscape punctuation.
Look for attributes that meet your needs: child-durable, deer-resistant, drought-tolerant, shade-loving. Mixing them up is not only aesthetically pleasing, it’s also good for the landscape: Diversity increases resistance to pests and disease and reduces the need for fertilizer and pesticides. Here are some popular choices.
Creeping perennials: Tight to the ground, these plants are especially good for cushy green carpets. They keep out weeds and allow air, water, and nutrients to get to plant roots. Many work equally well in rock gardens or in crevices between stepping stones, in full or partial sun. These include mat-forming New Zealand Brass Buttons (Cotula squalida) and Scotch or Irish Moss (Sagina subulata), which isn’t a moss at all but a perennial that forms a cushiony blooming carpet.
Some, like Blue Star Creeper (Laurentia fluviatilis), which has tiny green foliage, bear up to heavy foot traffic. Creeping Jenny (Convolvulus arvensis) has an extensive root system that makes it quick to spread and tough to kill. That’s a good thing if you’re looking for a tough turf alternative but a problem if it creeps into beds where you don’t want it.
Besides being good creepers, many ground-hugging perennial herbs are often nicely scented, hardy under foot traffic, and even edible. These include chamomile (Chamaemelum nobile), which has fern-like foliage and white flowers with yellow centers; Corsican mint (Mentha requienii), which thrives in shade, exudes a minty smell when trod upon, and is edible; and various thymes (Woolly, Red, Prostrate), which feature dainty flowers and work well between pavers or as a low mounding carpet.
Creeping perennials cost $6 to $10 per plant. A 15-by-20-foot area with plants 2 inches apart (for instant density) requires 300 plants. But if you’re patient enough to wait a year or so for them to spread, you can buy fewer plants and space them 12 inches apart.
Clover: Although clover has gotten a bad rap as a weed, it’s actually not a weed at all. In fact, a clover lawn (or, for high-traffic areas, a clover-grass mix) has many advantages. Sweet-scented, inexpensive, and quite durable, white clover (Trifolium repens) grows in any kind of soil, stays green even during low-water periods, and feels lovely underfoot.
Low-growing clover doesn’t need regular cutting, nor does it need fertilizer, but an occasional mow will encourage new growth and discourage bees. If you don’t mind the bees, consider letting your clover bloom, which benefits the bees and the environment. Clover is one of the least expensive groundcover options, costing about $4 to seed 4,000 square feet.
Laura Fisher Kaiser writes about architecture, design, and sustainability. She is in the process of letting clover, moss, and creeping jenny take over what’s left of her Washington, DC, lawn.
If you’re looking for an alternative, consider replacing some or all of your high-maintenance turf with ground covers that form walkable “carpets,” and innovative grasses that require little or no water or mowing once established.
In turn, you’ll reduce the need for irrigation, stop washing harmful chemicals into the watershed, add depth and texture to your landscape, and spend your spare time enjoying your yard instead of manicuring it.
Creeping perennials, clover, and other ground covers
There’s a ground cover to meet most needs, whether you’re planting a pathway, a hedge, or a broad swath of green. They run the gamut of foliage textures and colors, and many have wonderful flowers. Some varieties are ground-hugging and feel delicious under bare feet. Others grow up to two feet tall, making them ideal as barriers or landscape punctuation.
Look for attributes that meet your needs: child-durable, deer-resistant, drought-tolerant, shade-loving. Mixing them up is not only aesthetically pleasing, it’s also good for the landscape: Diversity increases resistance to pests and disease and reduces the need for fertilizer and pesticides. Here are some popular choices.
Creeping perennials: Tight to the ground, these plants are especially good for cushy green carpets. They keep out weeds and allow air, water, and nutrients to get to plant roots. Many work equally well in rock gardens or in crevices between stepping stones, in full or partial sun. These include mat-forming New Zealand Brass Buttons (Cotula squalida) and Scotch or Irish Moss (Sagina subulata), which isn’t a moss at all but a perennial that forms a cushiony blooming carpet.
Some, like Blue Star Creeper (Laurentia fluviatilis), which has tiny green foliage, bear up to heavy foot traffic. Creeping Jenny (Convolvulus arvensis) has an extensive root system that makes it quick to spread and tough to kill. That’s a good thing if you’re looking for a tough turf alternative but a problem if it creeps into beds where you don’t want it.
Besides being good creepers, many ground-hugging perennial herbs are often nicely scented, hardy under foot traffic, and even edible. These include chamomile (Chamaemelum nobile), which has fern-like foliage and white flowers with yellow centers; Corsican mint (Mentha requienii), which thrives in shade, exudes a minty smell when trod upon, and is edible; and various thymes (Woolly, Red, Prostrate), which feature dainty flowers and work well between pavers or as a low mounding carpet.
Creeping perennials cost $6 to $10 per plant. A 15-by-20-foot area with plants 2 inches apart (for instant density) requires 300 plants. But if you’re patient enough to wait a year or so for them to spread, you can buy fewer plants and space them 12 inches apart.
Clover: Although clover has gotten a bad rap as a weed, it’s actually not a weed at all. In fact, a clover lawn (or, for high-traffic areas, a clover-grass mix) has many advantages. Sweet-scented, inexpensive, and quite durable, white clover (Trifolium repens) grows in any kind of soil, stays green even during low-water periods, and feels lovely underfoot.
Low-growing clover doesn’t need regular cutting, nor does it need fertilizer, but an occasional mow will encourage new growth and discourage bees. If you don’t mind the bees, consider letting your clover bloom, which benefits the bees and the environment. Clover is one of the least expensive groundcover options, costing about $4 to seed 4,000 square feet.
Laura Fisher Kaiser writes about architecture, design, and sustainability. She is in the process of letting clover, moss, and creeping jenny take over what’s left of her Washington, DC, lawn.
Wednesday, March 17, 2010
7 Smart Strategies for Kitchen Remodeling
When planning a kitchen remodel, keep the same footprint, add storage, and design adequate lighting so you preserve value and keep costs on track.
Value Added High $16,100 - $43,000
Effort High 6-12 mos (including planning)
Investment High $21,400 - $57,200
If you’re contemplating a kitchen remodel, you’re also weighing a considerable investment. But a significant portion of the upfront costs may be recovered by the value the project brings to your home. Kitchen remodels in the $50,000 range recouped 76% of the initial project cost at the home’s resale, according to recent data from Remodeling Magazine’s Cost vs. Value Report. To make sure you maximize your return, consider these seven smart kitchen remodeling strategies.
1. Establish your priorities
Simple enough? Not so fast. The National Kitchen and Bath Association (NKBA) recommends spending at least six months planning before beginning the work. That way, you can thoroughly evaluate your priorities and won’t be tempted to change your mind during construction. Contractors often have clauses in their contracts that specify additional costs for amendments to original plans. Planning points to consider include:
•Avoid traffic jams. A walkway through the kitchen should be at least 36 inches wide, according to the NKBA. Work aisles for one cook should be a minimum of 42 inches wide and at least 48 inches wide for households with multiple cooks.
•Consider children. Avoid sharp, square corners on countertops, and make sure microwave ovens are installed at the heights recommended by the NKBA—3 inches below the shoulder of the principle user but not more than 54 inches from the floor.
•Access to the outside. If you want to easily reach entertaining areas, such as a deck or a patio, factor a new exterior door into your plans.
Because planning a kitchen is complex, consider hiring a professional designer. A pro can help make style decisions and foresee potential problems, so you can avoid costly mistakes. In addition, a pro makes sure contractors and installers are sequenced properly so that workflow is cost-effective. Expect fees around $50 to $150 per hour, or 5% to 15% of the total cost of the project.
2. Keep the same footprint
No matter the size and scope of your planned kitchen, you can save major expense by not rearranging walls, and by locating any new plumbing fixtures near existing plumbing pipes. Not only will you save on demolition and reconstruction, you’ll greatly reduce the amount of dust and debris your project generates.
3. Match appliances to your skill level
A six-burner commercial-grade range and luxury-brand refrigerator might make eye-catching centerpieces, but be sure they fit your lifestyle, says Molly Erin McCabe, owner of A Kitchen That Works design firm in Bainbridge Island, Wash. “It’s probably the part of a kitchen project where people tend to overspend the most.”
The high price is only worth the investment if you’re an exceptional cook. Otherwise, save thousands with trusted brands that receive high marks at consumer review websites, like www.ePinions.com and www.amazon.com, and resources such as Consumer Reports.
4. Create a well-designed lighting scheme
Some guidelines:
• Install task lighting, such as recessed or track lights, over sinks and food prep areas; assign at least two fixtures per task to eliminate shadows. Under-cabinet lights illuminate clean-up and are great for reading cookbooks. Pendant lights over counters bring the light source close to work surfaces.
• Ambient lighting includes flush-mounted ceiling fixtures, wall sconces, and track lights. Consider dimmer switches with ambient lighting to control intensity and mood.
5. Focus on durability
“People are putting more emphasis on functionality and durability in the kitchen,” says McCabe. That may mean resisting bargain prices and focusing on products that combine low-maintenance with long warranty periods. “Solid-surface countertops [Corian, Silestone] are a perfect example,” adds McCabe. “They may cost a little more, but they’re going to look as good in 10 years as they did the day they were installed.”
If you’re not planning to stay in your house that long, products with substantial warranties can become a selling point. “Individual upgrades don’t necessarily give you a 100% return,” says Frank Gregoire, a real estate appraiser in St. Petersburg, Fla. “But they can give you an edge when it comes time to market your home for sale” if other for-sale homes have similar features.
6. Add storage, not space
To add storage without bumping out walls:
• Specify upper cabinets that reach the ceiling. They may cost a bit more, but you’ll gain valuable storage space. In addition, you won’t have to worry about dusting the tops.
• Hang it up. Install small shelving units on unused wall areas, and add narrow spice racks and shelves on the insides of cabinet doors. Use a ceiling-mounted pot rack to keep bulkier pots and pans from cluttering cabinets. Add hooks to the backs of closet doors for aprons, brooms, and mops.
7. Communicate effectively—and often
Having a good rapport with your project manager or construction team is essential for staying on budget. “Poor communication is a leading cause of kitchen projects going sour,” says McCabe. To keep the sweetness in your project:
•Drop by the project during work hours as often as possible. Your presence assures subcontractors and other workers of your commitment to getting good results.
•Establish a communication routine. Hang a message board on-site where you and the project manager can leave each other daily communiques. Give your email address and cell phone number to subs and team leaders.
•Set house rules. Be clear about smoking, boom box noise levels, which bathroom is available, and where workers should park their vehicles.
Consumers spend more money on kitchen remodeling than any other home improvement project, according to the Home Improvement Research Institute, and with good reason. They’re the hub of home life, and a source of pride. With a little strategizing, you can ensure your new kitchen gives you years of satisfaction.
John Riha has written six books on home improvement and hundreds of articles on home-related topics. He’s been a residential builder, the editorial director of the Black & Decker Home Improvement Library, and the executive editor of Better Homes and Gardens magazine. His standard 1968 suburban house has been an ongoing source of maintenance experience.
Value Added High $16,100 - $43,000
Effort High 6-12 mos (including planning)
Investment High $21,400 - $57,200
If you’re contemplating a kitchen remodel, you’re also weighing a considerable investment. But a significant portion of the upfront costs may be recovered by the value the project brings to your home. Kitchen remodels in the $50,000 range recouped 76% of the initial project cost at the home’s resale, according to recent data from Remodeling Magazine’s Cost vs. Value Report. To make sure you maximize your return, consider these seven smart kitchen remodeling strategies.
1. Establish your priorities
Simple enough? Not so fast. The National Kitchen and Bath Association (NKBA) recommends spending at least six months planning before beginning the work. That way, you can thoroughly evaluate your priorities and won’t be tempted to change your mind during construction. Contractors often have clauses in their contracts that specify additional costs for amendments to original plans. Planning points to consider include:
•Avoid traffic jams. A walkway through the kitchen should be at least 36 inches wide, according to the NKBA. Work aisles for one cook should be a minimum of 42 inches wide and at least 48 inches wide for households with multiple cooks.
•Consider children. Avoid sharp, square corners on countertops, and make sure microwave ovens are installed at the heights recommended by the NKBA—3 inches below the shoulder of the principle user but not more than 54 inches from the floor.
•Access to the outside. If you want to easily reach entertaining areas, such as a deck or a patio, factor a new exterior door into your plans.
Because planning a kitchen is complex, consider hiring a professional designer. A pro can help make style decisions and foresee potential problems, so you can avoid costly mistakes. In addition, a pro makes sure contractors and installers are sequenced properly so that workflow is cost-effective. Expect fees around $50 to $150 per hour, or 5% to 15% of the total cost of the project.
2. Keep the same footprint
No matter the size and scope of your planned kitchen, you can save major expense by not rearranging walls, and by locating any new plumbing fixtures near existing plumbing pipes. Not only will you save on demolition and reconstruction, you’ll greatly reduce the amount of dust and debris your project generates.
3. Match appliances to your skill level
A six-burner commercial-grade range and luxury-brand refrigerator might make eye-catching centerpieces, but be sure they fit your lifestyle, says Molly Erin McCabe, owner of A Kitchen That Works design firm in Bainbridge Island, Wash. “It’s probably the part of a kitchen project where people tend to overspend the most.”
The high price is only worth the investment if you’re an exceptional cook. Otherwise, save thousands with trusted brands that receive high marks at consumer review websites, like www.ePinions.com and www.amazon.com, and resources such as Consumer Reports.
4. Create a well-designed lighting scheme
Some guidelines:
• Install task lighting, such as recessed or track lights, over sinks and food prep areas; assign at least two fixtures per task to eliminate shadows. Under-cabinet lights illuminate clean-up and are great for reading cookbooks. Pendant lights over counters bring the light source close to work surfaces.
• Ambient lighting includes flush-mounted ceiling fixtures, wall sconces, and track lights. Consider dimmer switches with ambient lighting to control intensity and mood.
5. Focus on durability
“People are putting more emphasis on functionality and durability in the kitchen,” says McCabe. That may mean resisting bargain prices and focusing on products that combine low-maintenance with long warranty periods. “Solid-surface countertops [Corian, Silestone] are a perfect example,” adds McCabe. “They may cost a little more, but they’re going to look as good in 10 years as they did the day they were installed.”
If you’re not planning to stay in your house that long, products with substantial warranties can become a selling point. “Individual upgrades don’t necessarily give you a 100% return,” says Frank Gregoire, a real estate appraiser in St. Petersburg, Fla. “But they can give you an edge when it comes time to market your home for sale” if other for-sale homes have similar features.
6. Add storage, not space
To add storage without bumping out walls:
• Specify upper cabinets that reach the ceiling. They may cost a bit more, but you’ll gain valuable storage space. In addition, you won’t have to worry about dusting the tops.
• Hang it up. Install small shelving units on unused wall areas, and add narrow spice racks and shelves on the insides of cabinet doors. Use a ceiling-mounted pot rack to keep bulkier pots and pans from cluttering cabinets. Add hooks to the backs of closet doors for aprons, brooms, and mops.
7. Communicate effectively—and often
Having a good rapport with your project manager or construction team is essential for staying on budget. “Poor communication is a leading cause of kitchen projects going sour,” says McCabe. To keep the sweetness in your project:
•Drop by the project during work hours as often as possible. Your presence assures subcontractors and other workers of your commitment to getting good results.
•Establish a communication routine. Hang a message board on-site where you and the project manager can leave each other daily communiques. Give your email address and cell phone number to subs and team leaders.
•Set house rules. Be clear about smoking, boom box noise levels, which bathroom is available, and where workers should park their vehicles.
Consumers spend more money on kitchen remodeling than any other home improvement project, according to the Home Improvement Research Institute, and with good reason. They’re the hub of home life, and a source of pride. With a little strategizing, you can ensure your new kitchen gives you years of satisfaction.
John Riha has written six books on home improvement and hundreds of articles on home-related topics. He’s been a residential builder, the editorial director of the Black & Decker Home Improvement Library, and the executive editor of Better Homes and Gardens magazine. His standard 1968 suburban house has been an ongoing source of maintenance experience.
Thursday, March 4, 2010
Best Affordable Suburbs in America 2010
Life with children is expensive, but in some places a dollar goes a lot further. Bloomberg BusinessWeek evaluated information provided by community data company OnBoard Informatics to determine the best affordable suburb in each state.While many of the places on this year's list are near amenities such as country clubs and golf courses, the focus is not luxury, but rather communities where families can live well for less and enjoy good schools, low crime, and reasonable commutes. The selected suburbs were limited to towns within 25 miles of the most populated city in the state, with populations of 5,000 to 60,000, median family incomes of $51,000 to $120,000, and lower-than-average crime rates. We weighted a variety of factors including livability (short commutes, low pollution, green space), education (well-educated residents, high test scores), crime (low personal and property crime), economy (high job growth, low unemployment rate, high family income), and affordability (median household income, cost of expenditures). Affordability was most heavily weighted in our calculations. We penalized places with bad weather, a lack of racial diversity, high divorce rates, and few children.
The results range from established high-income neighborhoods to growing middle-income communities. For example, the smallest town on the list, Cave Creek, Ariz., has a population of about 5,000 and a median family income of $108,546, while Moore, Okla., one of the largest, has more than 51,000 residents and a median income of $63,309, according to OnBoard's estimates. Despite their differences, all these places offer young families an attractive location to raise children and remain close to employment opportunities
10. Clark, N.J.
Nearest major city: Newark
Population: 13,862
Median family income: $97,668
Median home price: $380,500
Unemployment rate: 9.7%
Violent crime index: 4
Formerly a farm community, Clark has grown into a popular suburb at nearly full capacity of occupied land, according to the town Web site. Its school district has a preschool, two elementary schools, a middle school, and a high school. Clark is near several medical centers in neighboring communities. Amenities include a golf complex, community pool, tennis courts, and parks. A new ranking by Monmouth University's Polling Institute named Clark one of the state's best places to live, according to a report on njtoday.net.
The results range from established high-income neighborhoods to growing middle-income communities. For example, the smallest town on the list, Cave Creek, Ariz., has a population of about 5,000 and a median family income of $108,546, while Moore, Okla., one of the largest, has more than 51,000 residents and a median income of $63,309, according to OnBoard's estimates. Despite their differences, all these places offer young families an attractive location to raise children and remain close to employment opportunities
10. Clark, N.J.
Nearest major city: Newark
Population: 13,862
Median family income: $97,668
Median home price: $380,500
Unemployment rate: 9.7%
Violent crime index: 4
Formerly a farm community, Clark has grown into a popular suburb at nearly full capacity of occupied land, according to the town Web site. Its school district has a preschool, two elementary schools, a middle school, and a high school. Clark is near several medical centers in neighboring communities. Amenities include a golf complex, community pool, tennis courts, and parks. A new ranking by Monmouth University's Polling Institute named Clark one of the state's best places to live, according to a report on njtoday.net.
Tuesday, February 9, 2010
Evaluate Your House for a Home Office
When planning a home office remodel, consider the specific needs of your profession for space, light, storage, technology, and security.If you’re looking for a remodeling project that will make your house more salable in the future, a home office may well be it. When the National Association of Home Builders asked builders, architects, manufacturers, and marketing experts to predict the features that will be important to buyers of upscale properties in 2015, 94% said a home office would be “critical” or “very critical.”
That said, while an office may make your home more attractive to potential buyers, it won’t add significantly to value. According to Remodeling Magazine’s Cost vs. Value Report, converting a 12-by-12-foot bedroom into an office costs a national average of around $28,000 and recoups slightly less than half the investment. But if you’re among the more than 20% of Americans who do some or all of their job at home, a comfortable, functional work space is a must-have.
Where to put a home office
A spare bedroom is the most common place for an office, but it’s not the only adaptable space in the house. The formal living rooms and dining rooms in many older homes often don’t get a lot of use and make great offices, says Lisa Kanarek, founder of WorkingNaked.net, a service for people “stripped of the support” of the corporate office. “They’re spacious, have good light, and are easy to close off,” Kanarek says.
Architect Sarah Susanka, author of “Not So Big Remodeling,” converted her formal living room into an office for her therapist husband. It’s close to the front door and has easy access to the powder room, both important considerations if your business brings visitors into the home. Attics, basements, dens, sunrooms, garages, even laundry rooms are similarly convertible.
One important question is whether you’ll be taking the home office deduction on your taxes. If so, your work area can’t be used for any other purpose; the IRS bases the deduction on square footage used “exclusively and regularly” for business activities. Consult your accountant about whether the deduction makes sense for you.
What to spend on a home office
The home office in the Cost vs. Value report cost just over $28,000 to set up, a figure that includes custom cabinetry, 20 linear feet of laminate desktop, wall-mounted storage, upgraded electrical and data wiring, and new woodwork, paint, and flooring.
Of course, you don’t have to spend that much. By using off-the-shelf products and materials and doing some of the work, such as painting, yourself, you can transform an existing room into a home office for a lot less money. At minimum, though, budget $3,000 to $5,000 for paint, flooring, lighting, office furniture, and equipment.
Consider the needs of your profession
When evaluating space, start by making a list of the needs of your profession. An architect, for example, might want natural light and ample counter space for rolling out blueprints, while a vendor needs easily accessed storage for shipping supplies. In general, every office requires a work surface, storage, place for a computer and other electronics, and adequate lighting. Consider also your needs for the following:
Power, phone, and data wiring. A bedroom may already have enough outlets and at least one phone or cable jack, but if you’re taking over a formal dining room, you’ll likely need new wiring. It’s a relatively easy job for an electrician to add outlets (typically $100 to $250 per receptacle, depending on whether you also need to run new circuits). Internet connections can often be handled wirelessly, but for maximum reliability and security, ask your phone or cable company about installing additional lines.
Privacy. Susanka says the biggest mistake her clients make is putting their office in the middle of their home’s hustle and bustle. “The environment for work needs to be off the main living area,” she says. That doesn’t mean you need to hide out in the basement, but you’re better off out of the major traffic zones, especially with children at home.
Security. If your work involves financial or other confidential records, think about how you’ll keep them secure. “I have client credit card numbers in my office,” says Paige Rien, designer for the HGTV show “Hidden Potential.” “I close the door and lock it.” (For more on keeping important documents safe, take our home office security checkup.)
When dedicated space isn’t an option
Not everyone has a spare room to devote to an office. In that case, you need to find creative ways to carve out space. Offices can often be tucked into little-used locations, such as under stairs, in dormers, and on second-floor landings. One of Kanarek’s clients set up in a walk-in closet. “She lined the walls with counters and put in mirrors to make the space feel bigger,” Kanarek says.
Closets offer a good compromise because you can close the doors on your job at the end of the day. Another option is a computer armoire; starting at around $500, you can get one with shelves for a computer and peripherals, a slide-out keyboard tray, organizers for files, even built-in cork boards. If that’s out of your budget, set off a corner of the living room or family room with a room divider, bookcases, or a folding screen.
Whatever you do, Kanarek advises, try working in the space for a few weeks before investing any money in remodeling. “I have clients who spend thousands of dollars on built-ins,” she says, “and then sit on their bed or at the kitchen table to work because they like the light there better.”
Pat Curry is a contributing editor to HousingZone.com, a former senior editor at BUILDER, the official magazine of the National Association of Home Builders, and a frequent contributor to real estate and home-building publications.
That said, while an office may make your home more attractive to potential buyers, it won’t add significantly to value. According to Remodeling Magazine’s Cost vs. Value Report, converting a 12-by-12-foot bedroom into an office costs a national average of around $28,000 and recoups slightly less than half the investment. But if you’re among the more than 20% of Americans who do some or all of their job at home, a comfortable, functional work space is a must-have.
Where to put a home office
A spare bedroom is the most common place for an office, but it’s not the only adaptable space in the house. The formal living rooms and dining rooms in many older homes often don’t get a lot of use and make great offices, says Lisa Kanarek, founder of WorkingNaked.net, a service for people “stripped of the support” of the corporate office. “They’re spacious, have good light, and are easy to close off,” Kanarek says.
Architect Sarah Susanka, author of “Not So Big Remodeling,” converted her formal living room into an office for her therapist husband. It’s close to the front door and has easy access to the powder room, both important considerations if your business brings visitors into the home. Attics, basements, dens, sunrooms, garages, even laundry rooms are similarly convertible.
One important question is whether you’ll be taking the home office deduction on your taxes. If so, your work area can’t be used for any other purpose; the IRS bases the deduction on square footage used “exclusively and regularly” for business activities. Consult your accountant about whether the deduction makes sense for you.
What to spend on a home office
The home office in the Cost vs. Value report cost just over $28,000 to set up, a figure that includes custom cabinetry, 20 linear feet of laminate desktop, wall-mounted storage, upgraded electrical and data wiring, and new woodwork, paint, and flooring.
Of course, you don’t have to spend that much. By using off-the-shelf products and materials and doing some of the work, such as painting, yourself, you can transform an existing room into a home office for a lot less money. At minimum, though, budget $3,000 to $5,000 for paint, flooring, lighting, office furniture, and equipment.
Consider the needs of your profession
When evaluating space, start by making a list of the needs of your profession. An architect, for example, might want natural light and ample counter space for rolling out blueprints, while a vendor needs easily accessed storage for shipping supplies. In general, every office requires a work surface, storage, place for a computer and other electronics, and adequate lighting. Consider also your needs for the following:
Power, phone, and data wiring. A bedroom may already have enough outlets and at least one phone or cable jack, but if you’re taking over a formal dining room, you’ll likely need new wiring. It’s a relatively easy job for an electrician to add outlets (typically $100 to $250 per receptacle, depending on whether you also need to run new circuits). Internet connections can often be handled wirelessly, but for maximum reliability and security, ask your phone or cable company about installing additional lines.
Privacy. Susanka says the biggest mistake her clients make is putting their office in the middle of their home’s hustle and bustle. “The environment for work needs to be off the main living area,” she says. That doesn’t mean you need to hide out in the basement, but you’re better off out of the major traffic zones, especially with children at home.
Security. If your work involves financial or other confidential records, think about how you’ll keep them secure. “I have client credit card numbers in my office,” says Paige Rien, designer for the HGTV show “Hidden Potential.” “I close the door and lock it.” (For more on keeping important documents safe, take our home office security checkup.)
When dedicated space isn’t an option
Not everyone has a spare room to devote to an office. In that case, you need to find creative ways to carve out space. Offices can often be tucked into little-used locations, such as under stairs, in dormers, and on second-floor landings. One of Kanarek’s clients set up in a walk-in closet. “She lined the walls with counters and put in mirrors to make the space feel bigger,” Kanarek says.
Closets offer a good compromise because you can close the doors on your job at the end of the day. Another option is a computer armoire; starting at around $500, you can get one with shelves for a computer and peripherals, a slide-out keyboard tray, organizers for files, even built-in cork boards. If that’s out of your budget, set off a corner of the living room or family room with a room divider, bookcases, or a folding screen.
Whatever you do, Kanarek advises, try working in the space for a few weeks before investing any money in remodeling. “I have clients who spend thousands of dollars on built-ins,” she says, “and then sit on their bed or at the kitchen table to work because they like the light there better.”
Pat Curry is a contributing editor to HousingZone.com, a former senior editor at BUILDER, the official magazine of the National Association of Home Builders, and a frequent contributor to real estate and home-building publications.
Home Office: Return on Investment
A home office adds to comfort, convenience, and salability, but isn’t among the top projects for adding home value.
If you’re one of the more than 20% of Americans who do some or all of their work at home, a comfortable, functional home office is a must-have. And it’s a feature that’s growing in popularity: When the National Association of Home Builders asked builders, manufacturers, and marketing experts what features would be important to future home buyers, 94% said a home office would be “critical” or “very critical.”
Still, when it comes to adding value, a home office ranks last among the 21 midrange projects analyzed in Remodeling Magazine’s annual Cost vs. Value report. Converting a 12-by-12-foot bedroom into an office costs a national average of $28,375 and recoups $13,648 at resale, for a 48% return on investment, according to the 2009-2010 report. Construction costs include custom cabinetry and work surface, wall-mounted storage, a wiring upgrade, and new floor and wall finishes.
Regionally, returns varied only slightly, with the highest rate of return, 56%, in the Pacific region, and the lowest, 41%, in the upper Midwest.
National average cost to convert an existing 12 x 12 room into a home office:
Job cost: $28,375
Resale value: $13,648
Cost recoup: 48.1%
If you’re one of the more than 20% of Americans who do some or all of their work at home, a comfortable, functional home office is a must-have. And it’s a feature that’s growing in popularity: When the National Association of Home Builders asked builders, manufacturers, and marketing experts what features would be important to future home buyers, 94% said a home office would be “critical” or “very critical.”
Still, when it comes to adding value, a home office ranks last among the 21 midrange projects analyzed in Remodeling Magazine’s annual Cost vs. Value report. Converting a 12-by-12-foot bedroom into an office costs a national average of $28,375 and recoups $13,648 at resale, for a 48% return on investment, according to the 2009-2010 report. Construction costs include custom cabinetry and work surface, wall-mounted storage, a wiring upgrade, and new floor and wall finishes.
Regionally, returns varied only slightly, with the highest rate of return, 56%, in the Pacific region, and the lowest, 41%, in the upper Midwest.
National average cost to convert an existing 12 x 12 room into a home office:
Job cost: $28,375
Resale value: $13,648
Cost recoup: 48.1%
Friday, January 22, 2010
Create a Marketing Plan
Create a Personal Marketing Plan
Now that you’ve embarked on your new real estate career, one of the most important things to do is to let people know about it. Personal marketing is the process of getting your name “out there,” so that people think of you when they need to buy or sell a home.
How do you do that? The first step is to develop a Personal Marketing Plan, a written document that describes your business goals and how you plan to achieve them. The plan should include:
Objectives and goals. Clearly state what you want to accomplish for yourself in your new career—is it letting all of your family and friends know that you’re in real estate, attaining 10 listings in your first year, or achieving name recognition in 50 percent of your target market area? Be sure to quantify your goals so you can measure your accomplishments.
Audience. Who is your target market? Is it everyone within a particular geographic area? Is it certain type of homes or a particular group of like-minded people? You shouldn’t try to be all things to all people. It’s a good idea to select one or two groups to target with your marketing efforts.
Differentiation. What makes you unique? Setting yourself apart from other salespeople is essential in a crowded marketplace. Decide how you’ll approach real estate sales to set yourself apart from others in your market. Also determine whom you will appeal to, and tailor your message to this audience.
Media. Determine which media—print advertising, brochures, Web site, in-person marketing, community involvement—you’ll use to get the word out about your services. Focus on two or three media initially to control marketing costs and determine effectiveness.
Action plan and schedule. Establish a detailed to-do list to execute your marketing plan. You need to be consistent in your marketing and stick to a marketing approach for at least six months. Repetition is the key to having prospects remember you. For a sample action plan for a salesperson with limited marketing funds, click here .
Budget. Once you have a marketing plan, establish a budget. It may be tough to think about spending money when you may not have made much, or any, money in real estate yet. But most veteran practitioners agree that setting a marketing budget from the beginning of your career to promote yourself and your services is essential to achieving success in real estate. (See the following section, Develop Marketing Materials , for a list of the marketing materials—business cards, brochures, and so on—you’ll need.)
Determine how much you need to spend to acquire the basic marketing materials by getting estimates from vendors. To get started, you can spend a small amount to have your business cards and personal brochures made now and then allocate, say, 10 percent of your commission in the first few years to develop other marketing materials.
Once you have a marketing plan and budget in place, be sure to re-evaluate it each year. It’s important to determine if you’ve met your goals for the year, and if you haven’t, decide what you need to do differently the following year to accomplish your goals. You also should increase your goals or set new priorities each year to ensure that you continue to grow your success.
Now that you’ve embarked on your new real estate career, one of the most important things to do is to let people know about it. Personal marketing is the process of getting your name “out there,” so that people think of you when they need to buy or sell a home.
How do you do that? The first step is to develop a Personal Marketing Plan, a written document that describes your business goals and how you plan to achieve them. The plan should include:
Objectives and goals. Clearly state what you want to accomplish for yourself in your new career—is it letting all of your family and friends know that you’re in real estate, attaining 10 listings in your first year, or achieving name recognition in 50 percent of your target market area? Be sure to quantify your goals so you can measure your accomplishments.
Audience. Who is your target market? Is it everyone within a particular geographic area? Is it certain type of homes or a particular group of like-minded people? You shouldn’t try to be all things to all people. It’s a good idea to select one or two groups to target with your marketing efforts.
Differentiation. What makes you unique? Setting yourself apart from other salespeople is essential in a crowded marketplace. Decide how you’ll approach real estate sales to set yourself apart from others in your market. Also determine whom you will appeal to, and tailor your message to this audience.
Media. Determine which media—print advertising, brochures, Web site, in-person marketing, community involvement—you’ll use to get the word out about your services. Focus on two or three media initially to control marketing costs and determine effectiveness.
Action plan and schedule. Establish a detailed to-do list to execute your marketing plan. You need to be consistent in your marketing and stick to a marketing approach for at least six months. Repetition is the key to having prospects remember you. For a sample action plan for a salesperson with limited marketing funds, click here .
Budget. Once you have a marketing plan, establish a budget. It may be tough to think about spending money when you may not have made much, or any, money in real estate yet. But most veteran practitioners agree that setting a marketing budget from the beginning of your career to promote yourself and your services is essential to achieving success in real estate. (See the following section, Develop Marketing Materials , for a list of the marketing materials—business cards, brochures, and so on—you’ll need.)
Determine how much you need to spend to acquire the basic marketing materials by getting estimates from vendors. To get started, you can spend a small amount to have your business cards and personal brochures made now and then allocate, say, 10 percent of your commission in the first few years to develop other marketing materials.
Once you have a marketing plan and budget in place, be sure to re-evaluate it each year. It’s important to determine if you’ve met your goals for the year, and if you haven’t, decide what you need to do differently the following year to accomplish your goals. You also should increase your goals or set new priorities each year to ensure that you continue to grow your success.
Thursday, December 17, 2009
What Your Remodeling Contract Should Say
Review your remodeling contract carefully and adjust it to make sure it protects you in terms of payments, work schedules, and project specifications.
Even if you never intend to pick up a hammer for your remodeling project, there's one tool that's absolutely essential-a solid contract. But just having one often isn't enough. That's because the document a contractor gives you is designed to protect him. It's up to you to add in some basic protections for yourself. Here's what you need to know to make sure the remodeling contract you sign includes solid legal protection for you and your home.
Hiring a lawyer to review and make changes to a contract is a safe bet, especially since each state has its own construction-contract statutes. But not many homeowners are willing to shell out $500 for an attorney review, plus $1,000 to $1,500 additional fees to make wholesale revisions to a flawed contract. However, you can hand-write changes and additions in plain English and make sure both you and the contractor initial each change to the document, says Tampa, Fla., attorney George Meyer, who is chair-elect of the American Bar Association's Forum on the Construction Industry. Here's what you want to add (and subtract).
Project specs
Start by reviewing your contract, a process that should take several hours. The most important element of a contract is a thorough and complete description of the project, and the materials and the products that will be used. "It should say that the contractor will secure all necessary permits and approvals as well as what walls are being moved where, what type of countertops are going in, what type of sink, what type of faucet, and so forth," says Meyer. "You can't rely on everyone's memory because if there's a problem later, people may remember different things." The contract needn't contain these specs on its pages, it can simply refer to the contractor's attached itemized bid. Avoid allowances, which are pools of money set aside for work to be determined later, and which often lead to cost overruns.
Payment schedule
The contract should also state the total price for the job, and that it's a fixed price-not an estimate. It should provide a schedule of how the payments will be made by linking them to milestones in the work-such as when the foundation, rough plumbing, and electricity will be completed-so you're paying for work only after it's done. "You should always have enough money left to hire someone else to finish the work if need be," says Meyer. In general, the first payment should be no more than 10% of the total job and the final payment should be at least a few thousand dollars to ensure that it's a big enough incentive to get the contractor back for the final niggling details. If you're unsure whether the payment schedule is proportional to the milestones your contractor suggests, ask a friend who's familiar with construction process or consult a construction attorney.
Start and end dates
A contractor's boilerplate contract rarely includes dates for when he will begin work and when he will complete the job, so make sure those details are included. It's not that he'll be penalized if it runs late, only that if you ever have a major problem and need to sue him-or defend yourself from a suit he brings-showing that the contractor is, say, two months behind schedule will help you make your case. The dates needn't be too exacting. If he says it's a six to eight week job, eight or even nine weeks is fine for the contract, says Meyer.
Statement about change orders
Make sure the contract contains a line stating that any changes that will affect the cost of the job must be priced in writing and countersigned by both the contractor and homeowner before that work commences. That ensures that an offhand discussion about a possible change to the project won't result in a huge unforeseen additional cost. It also helps you, as the homeowner, keep track of exactly how much you've added to the bottom line, so you can avoid the very common urge to keep expanding the job.
Binding arbitration
Many contractors include a line that says that rather than going through the courts, disputes will be resolved by an arbitrator. Some legal experts feel that this is a quicker and lower-cost solution to problems, so a binding arbitration clause isn't necessarily a problem. What can be trouble is if the contract requires a specific arbitrator. "There are some big, national, well-respected arbitrators, like the American Arbitration Association," says Meyer. "And there are other questionable arbitrators that always side with the contractor. If a particular arbitrator is specified, I'd do some internet research about the agency to make sure it's legit."
Warranty
Having the contractor's warranty in the contract seems like a good thing, right? Well including it is often actually a technique for limiting how much liability the contractor has. "It's usually loaded up with exclusions and time limits," says Meyer, "and you're actually better off with no mention of warranty at all because then the only limits on his warranty are what's in the state statutes." In other words, keeping the contractor's warranty language in the contract will likely mean you're agreeing to less than what state law provides. For example, state law may specify a longer warranty term than what the contractor's warranty offers. So, unless you're having a lawyer review the contract, strike the warranty clause.
Technicalities
There are numerous state-by-state requirements for construction contracts. He may have to include his contractor's license number, for example, and he may have to include a clause saying you have the right to rescind the contract within a certain time period after signing. And unless you and the contractor sign the document, it doesn't matter what it says-it's not a valid contract.
A former carpenter and newspaper reporter, Oliver Marks has been writing about home improvements for 16 years. He's currently restoring his second fixer-upper with a mix of big hired projects and small do-it-himself jobs.
Even if you never intend to pick up a hammer for your remodeling project, there's one tool that's absolutely essential-a solid contract. But just having one often isn't enough. That's because the document a contractor gives you is designed to protect him. It's up to you to add in some basic protections for yourself. Here's what you need to know to make sure the remodeling contract you sign includes solid legal protection for you and your home.
Hiring a lawyer to review and make changes to a contract is a safe bet, especially since each state has its own construction-contract statutes. But not many homeowners are willing to shell out $500 for an attorney review, plus $1,000 to $1,500 additional fees to make wholesale revisions to a flawed contract. However, you can hand-write changes and additions in plain English and make sure both you and the contractor initial each change to the document, says Tampa, Fla., attorney George Meyer, who is chair-elect of the American Bar Association's Forum on the Construction Industry. Here's what you want to add (and subtract).
Project specs
Start by reviewing your contract, a process that should take several hours. The most important element of a contract is a thorough and complete description of the project, and the materials and the products that will be used. "It should say that the contractor will secure all necessary permits and approvals as well as what walls are being moved where, what type of countertops are going in, what type of sink, what type of faucet, and so forth," says Meyer. "You can't rely on everyone's memory because if there's a problem later, people may remember different things." The contract needn't contain these specs on its pages, it can simply refer to the contractor's attached itemized bid. Avoid allowances, which are pools of money set aside for work to be determined later, and which often lead to cost overruns.
Payment schedule
The contract should also state the total price for the job, and that it's a fixed price-not an estimate. It should provide a schedule of how the payments will be made by linking them to milestones in the work-such as when the foundation, rough plumbing, and electricity will be completed-so you're paying for work only after it's done. "You should always have enough money left to hire someone else to finish the work if need be," says Meyer. In general, the first payment should be no more than 10% of the total job and the final payment should be at least a few thousand dollars to ensure that it's a big enough incentive to get the contractor back for the final niggling details. If you're unsure whether the payment schedule is proportional to the milestones your contractor suggests, ask a friend who's familiar with construction process or consult a construction attorney.
Start and end dates
A contractor's boilerplate contract rarely includes dates for when he will begin work and when he will complete the job, so make sure those details are included. It's not that he'll be penalized if it runs late, only that if you ever have a major problem and need to sue him-or defend yourself from a suit he brings-showing that the contractor is, say, two months behind schedule will help you make your case. The dates needn't be too exacting. If he says it's a six to eight week job, eight or even nine weeks is fine for the contract, says Meyer.
Statement about change orders
Make sure the contract contains a line stating that any changes that will affect the cost of the job must be priced in writing and countersigned by both the contractor and homeowner before that work commences. That ensures that an offhand discussion about a possible change to the project won't result in a huge unforeseen additional cost. It also helps you, as the homeowner, keep track of exactly how much you've added to the bottom line, so you can avoid the very common urge to keep expanding the job.
Binding arbitration
Many contractors include a line that says that rather than going through the courts, disputes will be resolved by an arbitrator. Some legal experts feel that this is a quicker and lower-cost solution to problems, so a binding arbitration clause isn't necessarily a problem. What can be trouble is if the contract requires a specific arbitrator. "There are some big, national, well-respected arbitrators, like the American Arbitration Association," says Meyer. "And there are other questionable arbitrators that always side with the contractor. If a particular arbitrator is specified, I'd do some internet research about the agency to make sure it's legit."
Warranty
Having the contractor's warranty in the contract seems like a good thing, right? Well including it is often actually a technique for limiting how much liability the contractor has. "It's usually loaded up with exclusions and time limits," says Meyer, "and you're actually better off with no mention of warranty at all because then the only limits on his warranty are what's in the state statutes." In other words, keeping the contractor's warranty language in the contract will likely mean you're agreeing to less than what state law provides. For example, state law may specify a longer warranty term than what the contractor's warranty offers. So, unless you're having a lawyer review the contract, strike the warranty clause.
Technicalities
There are numerous state-by-state requirements for construction contracts. He may have to include his contractor's license number, for example, and he may have to include a clause saying you have the right to rescind the contract within a certain time period after signing. And unless you and the contractor sign the document, it doesn't matter what it says-it's not a valid contract.
A former carpenter and newspaper reporter, Oliver Marks has been writing about home improvements for 16 years. He's currently restoring his second fixer-upper with a mix of big hired projects and small do-it-himself jobs.
When It Pays to Do It Yourself
Doing home-improvement jobs yourself can be a smart way to save money, but choose the right DIY projects or you'll end up paying dearly.
Why pay someone big bucks to do something you can just as easily do yourself? That's the thinking that has gotten more Americans than ever swinging their own hammers. In a recent Time magazine poll, nearly a quarter of people said they were taking on more home-improvement projects themselves-understandably so, when you consider that it usually means a 50% to 75% discount, since all you pay for is materials.
But sometimes doing it yourself costs more than it saves, like when you decide to replace the toilet, end up flooding the basement, and have to pay a pro to fix your mistakes. Or, worse, if you become one of the more than 100,000 people injured each year doing home-improvement jobs. Here are some guidelines for deciding when DIY can save you money and when it could cost you.
Stick to routine maintenance for savings and safety
Seasonal home maintenance is ideal work for the DIY weekend warrior, since you can plan tasks in advance and get to them when your schedule allows. Because these are repeat projects, your savings will add up to big bucks over the years. Just by mowing your own lawn, for example, you can save $55 to $65 a week for a half-acre lawn during the growing season. The bigger the lot, the bigger the savings: with two acres, you'll pocket around $150 per week.
When It Pays: Look for maintenance jobs that are relatively easy and need to be done regularly, so you can hone your skills over time. In addition to mowing, other good ones are snow removal, pruning shrubs, washing windows, sealing the deck, painting fences, fertilizing the lawn, and replacing air conditioner filters.
When It Doesn't: Unless you have skill and experience on your side, stay off of any ladder taller than six feet; according to the U.S. Consumer Product Safety Commission, more than 164,000 people end up in emergency rooms every year because of ladder injuries. The same goes for operating power saws or attempting any major electrical work-it's simply too risky if you don't have the experience.
Act as your own GC on small jobs
If you're more comfortable operating an iPhone than a circular saw, you may be able to act as your own general contractor on a home-improvement project and hire the carpenters, plumbers, and other tradesmen yourself. You'll save 10% to 20% of the job cost, which is the contractor's typical fee.
When it Pays: If it's a small job that requires only two or three different tradesmen, and you have good existing relationships with top-quality professionals in those fields, consider DIY contracting.
When It Doesn't: Unless you have an established network of contacts who will show up as promised, the time to spend on oversight, enough construction experience to spot potential problems, and the skill to negotiate disputes between the various subcontractors, trying to manage your own project can quickly send the schedule and budget off the rails.
Pitch in with sweat equity on big jobs
Contributing your own labor on a big job being handled by a professional crew can cut hundreds or even thousands of dollars off the contractor's bill. Tear the cabinets and appliances out of your old kitchen before the contractor gets started, say, and you might knock $800 off the cost of your remodel, says Dean Bennett, a design/build contractor in Castle Rock, Colorado.
When it Pays: Grunt work-jobs that are labor intensive but require relatively little skill-makes the best homeowner contribution. Offer to do minor interior demolition like removing cabinets and pulling up old flooring, daily jobsite cleanup, product assembly, and simple landscaping like planting foundation shrubs and grass seed around your new addition.
When It Doesn't: If you get in the crew's way, you may slow them down far more than you help. Make your contributions when the workers aren't around, such as in the morning before they arrive, or on nights and weekends after they've left.
Put on some of the finishing touches
Unlike the early phases of a construction job, which require skilled labor to frame walls, install plumbing pipes, and run wiring, many of the finishing touches on a project are comparatively simple and DIY-friendly. If you do the painting yourself for a new basement rec room, for instance, you can easily save $1,800, Bennett says.
When it Pays: If you have the skill-or a patient temperament and an experienced friend to teach you-finish work like setting tile, laying flooring, painting walls, and installing trim are all good DIY jobs.
When It Doesn't: The downside to attempting your own finish work is that the results are very visible. Hammer dents in woodwork, for example, or sander ruts in your hardwood floors may cause you aggravation every time you see them. So unless you have a sure eye and a steady hand, it may not pay to embark on these tasks.
A former carpenter and newspaper reporter, Oliver Marks has been writing about home improvements for 16 years. He's currently restoring his second fixer-upper with a mix of big hired projects and small do-it-himself jobs.
Why pay someone big bucks to do something you can just as easily do yourself? That's the thinking that has gotten more Americans than ever swinging their own hammers. In a recent Time magazine poll, nearly a quarter of people said they were taking on more home-improvement projects themselves-understandably so, when you consider that it usually means a 50% to 75% discount, since all you pay for is materials.
But sometimes doing it yourself costs more than it saves, like when you decide to replace the toilet, end up flooding the basement, and have to pay a pro to fix your mistakes. Or, worse, if you become one of the more than 100,000 people injured each year doing home-improvement jobs. Here are some guidelines for deciding when DIY can save you money and when it could cost you.
Stick to routine maintenance for savings and safety
Seasonal home maintenance is ideal work for the DIY weekend warrior, since you can plan tasks in advance and get to them when your schedule allows. Because these are repeat projects, your savings will add up to big bucks over the years. Just by mowing your own lawn, for example, you can save $55 to $65 a week for a half-acre lawn during the growing season. The bigger the lot, the bigger the savings: with two acres, you'll pocket around $150 per week.
When It Pays: Look for maintenance jobs that are relatively easy and need to be done regularly, so you can hone your skills over time. In addition to mowing, other good ones are snow removal, pruning shrubs, washing windows, sealing the deck, painting fences, fertilizing the lawn, and replacing air conditioner filters.
When It Doesn't: Unless you have skill and experience on your side, stay off of any ladder taller than six feet; according to the U.S. Consumer Product Safety Commission, more than 164,000 people end up in emergency rooms every year because of ladder injuries. The same goes for operating power saws or attempting any major electrical work-it's simply too risky if you don't have the experience.
Act as your own GC on small jobs
If you're more comfortable operating an iPhone than a circular saw, you may be able to act as your own general contractor on a home-improvement project and hire the carpenters, plumbers, and other tradesmen yourself. You'll save 10% to 20% of the job cost, which is the contractor's typical fee.
When it Pays: If it's a small job that requires only two or three different tradesmen, and you have good existing relationships with top-quality professionals in those fields, consider DIY contracting.
When It Doesn't: Unless you have an established network of contacts who will show up as promised, the time to spend on oversight, enough construction experience to spot potential problems, and the skill to negotiate disputes between the various subcontractors, trying to manage your own project can quickly send the schedule and budget off the rails.
Pitch in with sweat equity on big jobs
Contributing your own labor on a big job being handled by a professional crew can cut hundreds or even thousands of dollars off the contractor's bill. Tear the cabinets and appliances out of your old kitchen before the contractor gets started, say, and you might knock $800 off the cost of your remodel, says Dean Bennett, a design/build contractor in Castle Rock, Colorado.
When it Pays: Grunt work-jobs that are labor intensive but require relatively little skill-makes the best homeowner contribution. Offer to do minor interior demolition like removing cabinets and pulling up old flooring, daily jobsite cleanup, product assembly, and simple landscaping like planting foundation shrubs and grass seed around your new addition.
When It Doesn't: If you get in the crew's way, you may slow them down far more than you help. Make your contributions when the workers aren't around, such as in the morning before they arrive, or on nights and weekends after they've left.
Put on some of the finishing touches
Unlike the early phases of a construction job, which require skilled labor to frame walls, install plumbing pipes, and run wiring, many of the finishing touches on a project are comparatively simple and DIY-friendly. If you do the painting yourself for a new basement rec room, for instance, you can easily save $1,800, Bennett says.
When it Pays: If you have the skill-or a patient temperament and an experienced friend to teach you-finish work like setting tile, laying flooring, painting walls, and installing trim are all good DIY jobs.
When It Doesn't: The downside to attempting your own finish work is that the results are very visible. Hammer dents in woodwork, for example, or sander ruts in your hardwood floors may cause you aggravation every time you see them. So unless you have a sure eye and a steady hand, it may not pay to embark on these tasks.
A former carpenter and newspaper reporter, Oliver Marks has been writing about home improvements for 16 years. He's currently restoring his second fixer-upper with a mix of big hired projects and small do-it-himself jobs.
Wednesday, December 16, 2009
CENTURY 21 JRS Realty Christmas Party
CENTURY 21 JRS Realty had a great Holiday Party last night at Bistro 1051 in Clark NJ. CENTURY 21 JRS Realty agents had a great time eating Sushi and other sea food dishes prepared by the wonderful chief at the Bistro. Congratulations to Joe Piizzi and Eddie Kefalas for the awards they earned as the number 1 and #2 agents in CENTURY 21 JRS Realty for 2009.
Thursday, December 10, 2009
7 Smart Strategies for Remodeling Your Kitchen
When planning a kitchen remodeling project, keep the same footprint, add storage, and design adequate lighting to preserve value and keep costs on track.
If you're contemplating a kitchen remodel, you're also weighing a considerable investment. But a significant portion of the upfront costs may be recovered by the value the project brings to your home. Kitchen remodels in the $50,000 range recouped 76% of the initial project cost at the home's resale, according to recent data from Remodeling magazine's Cost vs. Value Report. To make sure you maximize your return, consider these seven smart kitchen remodeling strategies.
1. Establish your priorities
Simple enough? Not so fast. The National Kitchen and Bath Association (NKBA) recommends spending at least six months planning before beginning the work. That way, you can thoroughly evaluate your priorities and won't be tempted to change your mind during construction. Contractors often have clauses in their contracts that specify additional costs for amendments to original plans. Planning points to consider include:
Avoid traffic jams. A walkway through the kitchen should be at least 36 inches wide, according to the NKBA. Work aisles for one cook should be a minimum of 42 inches wide and at least 48 inches wide for households with multiple cooks.
Consider children. Avoid sharp, square corners on countertops, and make sure microwave ovens are installed at the heights recommended by the NKBA-3 inches below the shoulder of the principle user but not more than 54 inches from the floor.
Access to the outside. If you want to easily reach entertaining areas, such as a deck or a patio, factor a new exterior door into your plans.
Because planning a kitchen is complex, consider hiring a professional designer. A pro can help make style decisions and foresee potential problems, so you can avoid costly mistakes. In addition, a pro makes sure contractors and installers are sequenced properly so that workflow is cost-effective. Expect fees around $50 to $150 per hour, or 5% to 15% of the total cost of the project.
2. Keep the same footprint
No matter the size and scope of your planned kitchen, you can save major expense by not rearranging walls, and by locating any new plumbing fixtures near existing plumbing pipes. Not only will you save on demolition and reconstruction, you'll greatly reduce the amount of dust and debris your project generates.
3. Match appliances to your skill level
A six-burner commercial-grade range and luxury-brand refrigerator might make eye-catching centerpieces, but be sure they fit your lifestyle, says Molly Erin McCabe, owner of A Kitchen That Works design firm in Bainbridge Island, Wash. "It's probably the part of a kitchen project where people tend to overspend the most."
The high price is only worth the investment if you're an exceptional cook. Otherwise, save thousands with trusted brands that receive high marks at consumer review websites, like www.ePinions.com and amazon.com, and resources such as Consumer Reports.
4. Create a well-designed lighting scheme
Some guidelines:
· Install task lighting, such as recessed or track lights, over sinks and food prep areas; assign at least two fixtures per task to eliminate shadows. Under-cabinet lights illuminate clean-up and are great for reading cookbooks. Pendant lights over counters bring the light source close to work surfaces.
• Ambient lighting includes flush-mounted ceiling fixtures, wall sconces, and track lights. Consider dimmer switches with ambient lighting to control intensity and mood.
5. Focus on durability
"People are putting more emphasis on functionality and durability in the kitchen," says McCabe. That may mean resisting bargain prices and focusing on products that combine low-maintenance with long warranty periods. "Solid-surface countertops [Corian, Silestone] are a perfect example," adds McCabe. "They may cost a little more, but they're going to look as good in 10 years as they did the day they were installed."
If you're not planning to stay in your house that long, products with substantial warranties can become a selling point. "Individual upgrades don't necessarily give you a 100% return," says Frank Gregoire, a real estate appraiser in St. Petersburg, Fla. "But they can give you an edge when it comes time to market your home for sale" if other for-sale homes have similar features.
6. Add storage, not space
To add storage without bumping out walls:
· Specify upper cabinets that reach the ceiling. They may cost a bit more, but you'll gain valuable storage space. In addition, you won't have to worry about dusting the tops.
• Hang it up. Install small shelving units on unused wall areas, and add narrow spice racks and shelves on the insides of cabinet doors. Use a ceiling-mounted pot rack to keep bulkier pots and pans from cluttering cabinets. Add hooks to the backs of closet doors for aprons, brooms, and mops.
7. Communicate effectively-and often
Having a good rapport with your project manager or construction team is essential for staying on budget. "Poor communication is a leading cause of kitchen projects going sour," says McCabe. To keep the sweetness in your project:
Drop by the project during work hours as often as possible. Your presence assures subcontractors and other workers of your commitment to getting good results.
Establish a communication routine. Hang a message board on-site where you and the project manager can leave each other daily communiques. Give your email address and cell phone number to subs and team leaders.
Set house rules. Be clear about smoking, boom box noise levels, which bathroom is available, and where workers should park their vehicles.
Consumers spend more money on kitchen remodeling than any other home improvement project, according to the Home Improvement Research Institute, and with good reason. They're the hub of home life, and a source of pride. With a little strategizing, you can ensure your new kitchen gives you years of satisfaction.
John Riha has written six books on home improvement and hundreds of articles on home-related topics. He's been a residential builder, the editorial director of the Black & Decker Home Improvement Library, and the executive editor of Better Homes and Gardens magazine. His standard 1968 suburban house has been an ongoing source of maintenance experience.
If you're contemplating a kitchen remodel, you're also weighing a considerable investment. But a significant portion of the upfront costs may be recovered by the value the project brings to your home. Kitchen remodels in the $50,000 range recouped 76% of the initial project cost at the home's resale, according to recent data from Remodeling magazine's Cost vs. Value Report. To make sure you maximize your return, consider these seven smart kitchen remodeling strategies.
1. Establish your priorities
Simple enough? Not so fast. The National Kitchen and Bath Association (NKBA) recommends spending at least six months planning before beginning the work. That way, you can thoroughly evaluate your priorities and won't be tempted to change your mind during construction. Contractors often have clauses in their contracts that specify additional costs for amendments to original plans. Planning points to consider include:
Avoid traffic jams. A walkway through the kitchen should be at least 36 inches wide, according to the NKBA. Work aisles for one cook should be a minimum of 42 inches wide and at least 48 inches wide for households with multiple cooks.
Consider children. Avoid sharp, square corners on countertops, and make sure microwave ovens are installed at the heights recommended by the NKBA-3 inches below the shoulder of the principle user but not more than 54 inches from the floor.
Access to the outside. If you want to easily reach entertaining areas, such as a deck or a patio, factor a new exterior door into your plans.
Because planning a kitchen is complex, consider hiring a professional designer. A pro can help make style decisions and foresee potential problems, so you can avoid costly mistakes. In addition, a pro makes sure contractors and installers are sequenced properly so that workflow is cost-effective. Expect fees around $50 to $150 per hour, or 5% to 15% of the total cost of the project.
2. Keep the same footprint
No matter the size and scope of your planned kitchen, you can save major expense by not rearranging walls, and by locating any new plumbing fixtures near existing plumbing pipes. Not only will you save on demolition and reconstruction, you'll greatly reduce the amount of dust and debris your project generates.
3. Match appliances to your skill level
A six-burner commercial-grade range and luxury-brand refrigerator might make eye-catching centerpieces, but be sure they fit your lifestyle, says Molly Erin McCabe, owner of A Kitchen That Works design firm in Bainbridge Island, Wash. "It's probably the part of a kitchen project where people tend to overspend the most."
The high price is only worth the investment if you're an exceptional cook. Otherwise, save thousands with trusted brands that receive high marks at consumer review websites, like www.ePinions.com and amazon.com, and resources such as Consumer Reports.
4. Create a well-designed lighting scheme
Some guidelines:
· Install task lighting, such as recessed or track lights, over sinks and food prep areas; assign at least two fixtures per task to eliminate shadows. Under-cabinet lights illuminate clean-up and are great for reading cookbooks. Pendant lights over counters bring the light source close to work surfaces.
• Ambient lighting includes flush-mounted ceiling fixtures, wall sconces, and track lights. Consider dimmer switches with ambient lighting to control intensity and mood.
5. Focus on durability
"People are putting more emphasis on functionality and durability in the kitchen," says McCabe. That may mean resisting bargain prices and focusing on products that combine low-maintenance with long warranty periods. "Solid-surface countertops [Corian, Silestone] are a perfect example," adds McCabe. "They may cost a little more, but they're going to look as good in 10 years as they did the day they were installed."
If you're not planning to stay in your house that long, products with substantial warranties can become a selling point. "Individual upgrades don't necessarily give you a 100% return," says Frank Gregoire, a real estate appraiser in St. Petersburg, Fla. "But they can give you an edge when it comes time to market your home for sale" if other for-sale homes have similar features.
6. Add storage, not space
To add storage without bumping out walls:
· Specify upper cabinets that reach the ceiling. They may cost a bit more, but you'll gain valuable storage space. In addition, you won't have to worry about dusting the tops.
• Hang it up. Install small shelving units on unused wall areas, and add narrow spice racks and shelves on the insides of cabinet doors. Use a ceiling-mounted pot rack to keep bulkier pots and pans from cluttering cabinets. Add hooks to the backs of closet doors for aprons, brooms, and mops.
7. Communicate effectively-and often
Having a good rapport with your project manager or construction team is essential for staying on budget. "Poor communication is a leading cause of kitchen projects going sour," says McCabe. To keep the sweetness in your project:
Drop by the project during work hours as often as possible. Your presence assures subcontractors and other workers of your commitment to getting good results.
Establish a communication routine. Hang a message board on-site where you and the project manager can leave each other daily communiques. Give your email address and cell phone number to subs and team leaders.
Set house rules. Be clear about smoking, boom box noise levels, which bathroom is available, and where workers should park their vehicles.
Consumers spend more money on kitchen remodeling than any other home improvement project, according to the Home Improvement Research Institute, and with good reason. They're the hub of home life, and a source of pride. With a little strategizing, you can ensure your new kitchen gives you years of satisfaction.
John Riha has written six books on home improvement and hundreds of articles on home-related topics. He's been a residential builder, the editorial director of the Black & Decker Home Improvement Library, and the executive editor of Better Homes and Gardens magazine. His standard 1968 suburban house has been an ongoing source of maintenance experience.
Should You Convert from Oil to Gas Heat?
If you're replacing your old oil-burning heating equipment, you may want to crunch the numbers on switching to cheaper, cleaner gas.
Last winter, heating a house with oil cost an average of $1,700, while natural gas averaged less than $900, according to the US Energy Information Administration. The year before, when oil prices peaked, oil heat cost an average of $2,000; natural gas was again around $900. Since 2002, oil heat has averaged 30% to 50% more than gas every year. So, if it's time to replace your old oil-burning system, you might be wondering if it makes sense to switch. Here's how to crunch the numbers.
What fuel types are available in your area?
About half of the country uses natural gas already, and only about 8% uses oil. Most of the rest use costlier heating-electricity accounts for 34%, propane 6%-typically because that's what is available locally. The vast majority of oil-burners are concentrated in the Northeast, where they account for 31% of residential heating systems. That's largely because of the region's proximity to the ports where oil barges deliver their loads and the fact that oil was a cheaper option back when these houses were built.
Unlike oil, which gets delivered by truck, natural gas gets piped right into your house by a utility company. So making the switch requires having a gas main under your street. Even in oil-dominated neighborhoods of the Northeast, most urban and suburban areas have gas lines. If yours doesn't, you may be able to convince the local utility to install a gas main if enough neighbors band together to make the request.
How much will the equipment cost?
Gas-fired equipment costs less than oil-fired gear. For a basic furnace (for a forced air heating system) or boiler (for hot-water heat), you'll pay around $1,500 to $3,000 for gas and $2,000 to as much as $8,000 for oil, says Ellis Guiles of TAG Mechanical in Syracuse, New York. If you select a high efficiency system, you'll pay $3,500 to $5,500 for gas, compared with $4,500 to $10,000 for oil. A high-efficiency unit of either kind may be eligible for a 30% tax credit, up to $1,500, as well as local incentives.
How much will the hookup cost?
There are two aspects to the connection process for gas: outside the house and inside. The utility company will run an underground pipe from the gas main to your house, where it will install a meter. This requires using a backhoe to dig a trench from the road to the house and typically costs $1,000 to $1,500, according to Jim Ranfone, managing director of the American Gas Association, a trade group. But it's possible that the utility will waive or reduce that charge as an inducement to add you to its customer rolls. Your contractor will handle the second part of the job, piping the gas from the meter to your heating plant, typically at a cost of $500 to $1,000.
What other expenses are involved?
Switching to gas may require you to line your chimney ($750 to $2,000), because the moisture in gas exhaust can damage the masonry. A liner isn't necessary with a high-efficiency gas system, which, combined with tax incentives, explains why nearly all of Guiles' conversion customers choose high-efficiency equipment. Although it's probably not required, you'll likely choose to remove your oil tank for another $750 or so if it's above ground to $3,000 if it's buried.
The bottom line
So is it worth spending potentially a few grand in conversion costs to switch to gas? Well, at last year's prices, your fuel-cost savings alone would pay you back in less than five years. But as the stock-market caveat goes, past performance is no guarantee of future results. Most natural gas is mined in North America, so some say its pricing less volatile than oil, which is a global commodity. But the truth is, there's no way to know for sure if gas will continue its substantial price advantage. The decision usually comes down to how complicated the conversion will be for your house-and how good the incentives are that the utilities and state agencies are offering, says Mark Wolfe, executive director of the National Energy Assistance Directors' Association, a trade group of state officials who help homeowners cut their energy costs.
Still, there are reasons other than money to make the switch. Gas has lower carbon emissions than oil, so it's better for the environment. Plus, once you have a gas line, you can get that commercial-style, six-burner stove you've always wanted.
A former carpenter and newspaper reporter, Oliver Marks has been writing about home improvements for 16 years. He's currently restoring his second fixer-upper with a mix of big hired projects and small do-it-himself jobs.
Last winter, heating a house with oil cost an average of $1,700, while natural gas averaged less than $900, according to the US Energy Information Administration. The year before, when oil prices peaked, oil heat cost an average of $2,000; natural gas was again around $900. Since 2002, oil heat has averaged 30% to 50% more than gas every year. So, if it's time to replace your old oil-burning system, you might be wondering if it makes sense to switch. Here's how to crunch the numbers.
What fuel types are available in your area?
About half of the country uses natural gas already, and only about 8% uses oil. Most of the rest use costlier heating-electricity accounts for 34%, propane 6%-typically because that's what is available locally. The vast majority of oil-burners are concentrated in the Northeast, where they account for 31% of residential heating systems. That's largely because of the region's proximity to the ports where oil barges deliver their loads and the fact that oil was a cheaper option back when these houses were built.
Unlike oil, which gets delivered by truck, natural gas gets piped right into your house by a utility company. So making the switch requires having a gas main under your street. Even in oil-dominated neighborhoods of the Northeast, most urban and suburban areas have gas lines. If yours doesn't, you may be able to convince the local utility to install a gas main if enough neighbors band together to make the request.
How much will the equipment cost?
Gas-fired equipment costs less than oil-fired gear. For a basic furnace (for a forced air heating system) or boiler (for hot-water heat), you'll pay around $1,500 to $3,000 for gas and $2,000 to as much as $8,000 for oil, says Ellis Guiles of TAG Mechanical in Syracuse, New York. If you select a high efficiency system, you'll pay $3,500 to $5,500 for gas, compared with $4,500 to $10,000 for oil. A high-efficiency unit of either kind may be eligible for a 30% tax credit, up to $1,500, as well as local incentives.
How much will the hookup cost?
There are two aspects to the connection process for gas: outside the house and inside. The utility company will run an underground pipe from the gas main to your house, where it will install a meter. This requires using a backhoe to dig a trench from the road to the house and typically costs $1,000 to $1,500, according to Jim Ranfone, managing director of the American Gas Association, a trade group. But it's possible that the utility will waive or reduce that charge as an inducement to add you to its customer rolls. Your contractor will handle the second part of the job, piping the gas from the meter to your heating plant, typically at a cost of $500 to $1,000.
What other expenses are involved?
Switching to gas may require you to line your chimney ($750 to $2,000), because the moisture in gas exhaust can damage the masonry. A liner isn't necessary with a high-efficiency gas system, which, combined with tax incentives, explains why nearly all of Guiles' conversion customers choose high-efficiency equipment. Although it's probably not required, you'll likely choose to remove your oil tank for another $750 or so if it's above ground to $3,000 if it's buried.
The bottom line
So is it worth spending potentially a few grand in conversion costs to switch to gas? Well, at last year's prices, your fuel-cost savings alone would pay you back in less than five years. But as the stock-market caveat goes, past performance is no guarantee of future results. Most natural gas is mined in North America, so some say its pricing less volatile than oil, which is a global commodity. But the truth is, there's no way to know for sure if gas will continue its substantial price advantage. The decision usually comes down to how complicated the conversion will be for your house-and how good the incentives are that the utilities and state agencies are offering, says Mark Wolfe, executive director of the National Energy Assistance Directors' Association, a trade group of state officials who help homeowners cut their energy costs.
Still, there are reasons other than money to make the switch. Gas has lower carbon emissions than oil, so it's better for the environment. Plus, once you have a gas line, you can get that commercial-style, six-burner stove you've always wanted.
A former carpenter and newspaper reporter, Oliver Marks has been writing about home improvements for 16 years. He's currently restoring his second fixer-upper with a mix of big hired projects and small do-it-himself jobs.
Tuesday, December 8, 2009
Best Ways to Green Up Your Kitchen Remodel
If you're ready to remodel your kitchen and want to go green, here's how to create the healthy, energy-efficient, eco-friendly kitchen of your dreams.
Going green with your kitchen remodeling project means making choices based on your lifestyle and your budget. The decisions aren't always simple. For example, a certain green product may outlast and use less energy but cost more than a similar product that performs equally well. Fortunately, an expanding marketplace for smart, stylish green products is helping to lower costs-making it easier to have a green kitchen and love it, too.
If products you'd like to add to your project aren't readily available, schedule visits to showrooms or green home improvement expos to examine materials first-hand before making decisions. To help you plan, here are key products, ideas, and tips to put the green in your kitchen.
Major components
are made from wood and wood products certified by the Forest Stewardship Council to be produced using sustainable forest management practices. They feature formaldehyde-free glues and finishes with low volatile organic compounds that give off little or no toxic fumes. Check product literature closely to ensure the cabinets you choose meet these criteria.
· Sustainable kitchen cabinets
When shopping for cabinets, ask if the cabinet boxes are built with wheat board or straw board. These products are made from agricultural waste, such as the chaff left over from farmers' wheat crops. As a rule, they feature formaldehyde-free binders. They're strong and rated to exceed the standards set by the American National Standards Institute for medium density particleboard-the material commonly used to make cabinet boxes.
· Green countertops
offer variety but all share similar characteristics: recycled or sustainable content, low-toxicity binders, and eco-friendly manufacturing processes. In addition, they're highly durable. Examples: Squak Mountain Stone is made from recycled paper, recycled glass, reclaimed fly ash, and cement. The finished countertop slabs resemble limestone and soapstone. Eco-top counters consist of renewable bamboo fiber, post-consumer recycled paper, and water-based resin glue. Vetrazzo makes countertops that are 85% recycled glass-almost all the glass comes from curbside recycling programs. Craft-Art includes a line of wood countertops made of reclaimed wood from older barns, warehouses, and commercial buildings.
· Eco-friendly flooring
includes linoleum and cork. Both are made with renewable resources that make them sustainable choices. They're good-looking and durable, but require periodic maintenance.
Linoleum is made from renewable, biodegradable materials including linseed oil and cork. It produces no harmful vapors and comes in many patterns and colors. Linoleum stands up well to traffic and offers some cushioning underfoot. It's resistant to moisture but susceptible to staining, so some manufacturers add a coating to protect against spills and scratches. Without this protection, linoleum must be cleaned and polished every two years. Cost: $2 to $4 per sq.ft.; installation adds $5 to $7 per sq.ft.
Cork is a sustainable flooring product made from tree bark; the bark grows back and can be harvested repeatedly. Harvesting practices are carefully regulated to ensure future supplies, reducing environmental impact. Cork is waterproof and slightly soft underfoot, which makes it both moisture-resistant and comfortable. It's made in 12x12-inch tiles and 1x3-foot planks, each with a distinctive grain pattern. The surface is slightly textured and slip-resistant.
Treat cork flooring with a sealant every 3 to 4 years to prevent scratches and stop moisture from penetrating seams between tiles. Natural wax and water-based polyurethane work well. Cost: $2-$6 per sq.ft.; installation, $5-$10 per sq.ft.
Appliances
reduces energy consumption and saves utility costs. Energy Star appliances are tested and rated to be the most energy-efficient models in any product category. In addition, some states and regional utility companies offer rebates for buying Energy Star appliances.
· Choosing Energy Star products
· Dishwashers go green
when they feature an energy-saving or quick-wash cycle. These cycles operate for shorter periods of time, saving water and energy. Also, look for dishwashers that include an air-dry option, which dries dishes with circulation fans rather than energy-draining heating elements. Or, simply open up the dishwasher door when the wash cycle is complete and let dishes air dry.
Energy Star models are 25% more energy efficient than the federal standards for energy consumption. If you replace your pre-1994 dishwasher with an Energy Star model, you'll save as much as $40 a year on energy costs.
· Buy a new refrigerator
and you'll save on energy costs. That's because manufacturers are constantly improving technology and insulating techniques. In fact, today's new models are 75% more energy efficient than those manufactured just 20 years ago, saving about $100 per year on energy costs. An Energy Star-rated model will save an additional $20-$30 per year.
Choose models featuring the freezer on top and use 10% to 25% less energy than a same-sized model with a side-by-side configuration.
Green essentials
cleans water of contaminants before it reaches the kitchen tap; it has about 10 times the filtering capacity of a faucet-mounted purifier. A model with a top-quality activated carbon filter will remove heavy metals, bacteria, and pesticides. In addition, it removes odors and bad tastes. Expect to pay $150-$200 for an activated charcoal purifier with a replaceable cartridge.
· An under-the-counter water purifier
• Energy-efficient lighting includes fluorescent and compact fluorescent lamps that use 50% to 90% less energy than comparable incandescent lamps. In fact, according to EnergyStar.gov, a single compact fluorescent bulb will save $30-$40 during its expected lifespan of 10,000 hours over conventional incandescent bulbs of similar luminosity. However, consider the correct quality of light, such as an efficient halogen and LED lighting sources, for task areas.
• Being an active recycler is one way to ensure your kitchen is green. Most cabinet manufacturers offer options for lower cabinets that include pull-out recycling bins that keep contents organized and out of sight. In some instances, these bins are designed to be positioned conveniently beneath holes in countertops so that you can sweep food scraps into them. You can also retrofit existing cabinets with recycling bins-rotating lazy Susan-type recycling centers feature multiple bins and are designed to fit in lower corner cabinets.
John Riha has written six books on home improvement and hundreds of articles on home-related topics. He's been a residential builder, the editorial director of the Black & Decker Home Improvement Library, and the executive editor of Better Homes and Gardens magazine. His standard 1968 suburban house has been an ongoing source of maintenance experience.
Going green with your kitchen remodeling project means making choices based on your lifestyle and your budget. The decisions aren't always simple. For example, a certain green product may outlast and use less energy but cost more than a similar product that performs equally well. Fortunately, an expanding marketplace for smart, stylish green products is helping to lower costs-making it easier to have a green kitchen and love it, too.
If products you'd like to add to your project aren't readily available, schedule visits to showrooms or green home improvement expos to examine materials first-hand before making decisions. To help you plan, here are key products, ideas, and tips to put the green in your kitchen.
Major components
are made from wood and wood products certified by the Forest Stewardship Council to be produced using sustainable forest management practices. They feature formaldehyde-free glues and finishes with low volatile organic compounds that give off little or no toxic fumes. Check product literature closely to ensure the cabinets you choose meet these criteria.
· Sustainable kitchen cabinets
When shopping for cabinets, ask if the cabinet boxes are built with wheat board or straw board. These products are made from agricultural waste, such as the chaff left over from farmers' wheat crops. As a rule, they feature formaldehyde-free binders. They're strong and rated to exceed the standards set by the American National Standards Institute for medium density particleboard-the material commonly used to make cabinet boxes.
· Green countertops
offer variety but all share similar characteristics: recycled or sustainable content, low-toxicity binders, and eco-friendly manufacturing processes. In addition, they're highly durable. Examples: Squak Mountain Stone is made from recycled paper, recycled glass, reclaimed fly ash, and cement. The finished countertop slabs resemble limestone and soapstone. Eco-top counters consist of renewable bamboo fiber, post-consumer recycled paper, and water-based resin glue. Vetrazzo makes countertops that are 85% recycled glass-almost all the glass comes from curbside recycling programs. Craft-Art includes a line of wood countertops made of reclaimed wood from older barns, warehouses, and commercial buildings.
· Eco-friendly flooring
includes linoleum and cork. Both are made with renewable resources that make them sustainable choices. They're good-looking and durable, but require periodic maintenance.
Linoleum is made from renewable, biodegradable materials including linseed oil and cork. It produces no harmful vapors and comes in many patterns and colors. Linoleum stands up well to traffic and offers some cushioning underfoot. It's resistant to moisture but susceptible to staining, so some manufacturers add a coating to protect against spills and scratches. Without this protection, linoleum must be cleaned and polished every two years. Cost: $2 to $4 per sq.ft.; installation adds $5 to $7 per sq.ft.
Cork is a sustainable flooring product made from tree bark; the bark grows back and can be harvested repeatedly. Harvesting practices are carefully regulated to ensure future supplies, reducing environmental impact. Cork is waterproof and slightly soft underfoot, which makes it both moisture-resistant and comfortable. It's made in 12x12-inch tiles and 1x3-foot planks, each with a distinctive grain pattern. The surface is slightly textured and slip-resistant.
Treat cork flooring with a sealant every 3 to 4 years to prevent scratches and stop moisture from penetrating seams between tiles. Natural wax and water-based polyurethane work well. Cost: $2-$6 per sq.ft.; installation, $5-$10 per sq.ft.
Appliances
reduces energy consumption and saves utility costs. Energy Star appliances are tested and rated to be the most energy-efficient models in any product category. In addition, some states and regional utility companies offer rebates for buying Energy Star appliances.
· Choosing Energy Star products
· Dishwashers go green
when they feature an energy-saving or quick-wash cycle. These cycles operate for shorter periods of time, saving water and energy. Also, look for dishwashers that include an air-dry option, which dries dishes with circulation fans rather than energy-draining heating elements. Or, simply open up the dishwasher door when the wash cycle is complete and let dishes air dry.
Energy Star models are 25% more energy efficient than the federal standards for energy consumption. If you replace your pre-1994 dishwasher with an Energy Star model, you'll save as much as $40 a year on energy costs.
· Buy a new refrigerator
and you'll save on energy costs. That's because manufacturers are constantly improving technology and insulating techniques. In fact, today's new models are 75% more energy efficient than those manufactured just 20 years ago, saving about $100 per year on energy costs. An Energy Star-rated model will save an additional $20-$30 per year.
Choose models featuring the freezer on top and use 10% to 25% less energy than a same-sized model with a side-by-side configuration.
Green essentials
cleans water of contaminants before it reaches the kitchen tap; it has about 10 times the filtering capacity of a faucet-mounted purifier. A model with a top-quality activated carbon filter will remove heavy metals, bacteria, and pesticides. In addition, it removes odors and bad tastes. Expect to pay $150-$200 for an activated charcoal purifier with a replaceable cartridge.
· An under-the-counter water purifier
• Energy-efficient lighting includes fluorescent and compact fluorescent lamps that use 50% to 90% less energy than comparable incandescent lamps. In fact, according to EnergyStar.gov, a single compact fluorescent bulb will save $30-$40 during its expected lifespan of 10,000 hours over conventional incandescent bulbs of similar luminosity. However, consider the correct quality of light, such as an efficient halogen and LED lighting sources, for task areas.
• Being an active recycler is one way to ensure your kitchen is green. Most cabinet manufacturers offer options for lower cabinets that include pull-out recycling bins that keep contents organized and out of sight. In some instances, these bins are designed to be positioned conveniently beneath holes in countertops so that you can sweep food scraps into them. You can also retrofit existing cabinets with recycling bins-rotating lazy Susan-type recycling centers feature multiple bins and are designed to fit in lower corner cabinets.
John Riha has written six books on home improvement and hundreds of articles on home-related topics. He's been a residential builder, the editorial director of the Black & Decker Home Improvement Library, and the executive editor of Better Homes and Gardens magazine. His standard 1968 suburban house has been an ongoing source of maintenance experience.
Saturday, November 28, 2009
5 Essential Questions to ask before hiring a Contractor
You're ready to remodel but you want to make sure you get the best contractor for the job. Here's what to ask the candidates before you decide.
For all of the excitement of choosing plumbing fixtures, cabinets, and tiles for a remodeling project, the most important decision you make won't involve color swatches or glossy brochures. It's the contractor you pick that makes or breaks the job. That choice will determine the quality of the craftsmanship, the timeliness of the work, and the amount of emotional and financial stress the process puts on you. To make sure you're getting the best contractor for the job, here are five questions to ask the candidates.
1. Would you please itemize your bid?
Many contractors prefer to give you a single, bottom-line price for your project, but this puts you in the dark about what they're charging for each aspect of the job. For example, let's say the original plan calls for beadboard wainscot in your bathroom, but you decide not to install it after all. How much should you be credited for eliminating that work? With a single bottom-line price, you have no way to know.
On the other hand, if you get an itemized bid, it'll show the costs for all of the various elements of the job-demolition, framing, plumbing, electrical, tile, fixtures, and so forth. That makes it easier to compare different contractors' prices and see where the discrepancies are. If you need to cut the project costs, you can easily assess your options. Plus, an itemized bid becomes valuable documentation about the exact scope of the project, which may eliminate disputes later.
The contractor shouldn't give you a hard time about itemizing his bid. He has to figure out his total price line by line anyway, so you're not asking him to do more work, only to share the details. If he resists, it means he wants to withhold important information about his bid-a red flag for sure.
2. Is your bid an estimate or a fixed price?
Homeowners generally assume that the bid they're seeing is a fixed price, but some contractors treat their proposals as estimates, meaning bills could wind up being higher in the end. If he calls it an estimate, request a fixed price bid instead. If he says he can't offer a fixed price because there are too many unknowns about the job, then eliminate the unknowns.
"Have him open up a wall to check the structure he's unsure about or go back to your architect and solidify the design plans," says Tampa, Fla., attorney George Meyer, who is chair-elect of the American Bar Association's Forum on the Construction Industry. If you simply cannot resolve the unknowns he's concerned about, have the project specs describe what he expects to do-and if he needs to do additional work later, you can do a change order (a written mini-bid for new work).
3. How long have you been doing business in this town?
A contractor who's been plying his trade locally for 5 or 10 years has an established network of subcontractors and suppliers in the area and a local reputation to uphold. That makes him a safer bet than a contractor who's either new to the business or new to the area-or who's planning to commute to your job from 50 miles away.
You want to see a nearby address (not a PO box) on his business card-and should ask him to include one or two of his earliest clients on your list of references. This will help you verify that he hasn't just recently hung his shingle-and will give you perspective from a homeowner who has lived with the contractor's work for years. After all, the test of a quality job, whether it's a bluestone patio or a family room addition, is how well it stands the test of time.
4. Who are your main suppliers?
You've found a few potential contractors, you've talked to the happy former clients on each of their reference lists, now it's time for one additional bit of homework: talking to their primary suppliers. There's no better reference for a tile setter, for example, than his preferred tile shop; for a general contractor than his favorite lumberyard or home center pro desk; for a plumber than the kitchen and bath showroom where he's on a first name basis.
The proprietors of these shops know a contractor's professional reputation, whether he has left a trail of unhappy customers in his wake, if he's reliable about paying his bills-and whether he's someone you'll want to hire. The contractor should have absolutely no qualms about telling you where he gets his materials, as long as he's an upstanding customer.
5. I'd like to meet the job foreman-can you take me to a project he's running?
Many contractors don't actually swing hammers. They spend their days bidding new work and managing their various jobs and workers. In some cases, the contractor you hire may not visit the jobsite every day-or may not even show himself again after you've signed the contract. So the job foreman-the one who's working on your project every day-is actually the most important member of your team.
Meeting him in person and seeing a job that he's running should give you a feel for whether he's someone you want managing your project. Plus, it gives the general contractor an incentive to assign you one of his better crews since you're more likely to hire him if you see his A Team. If the contractor says he'll be running the job himself, ask whether he'll be there every day. Again, he'll want to give you a positive response-something you can hold him to later on.
It's not only the answers to these questions that will help you judge potential contractors-it's the way they answer them. Were they easy to talk to and forthcoming with details or did they hem and haw and make you ask more than once? Difficulty communicating now means difficulty communicating on the job later. But clear, timely and thoughtful responses-combined with terrific references, great completed work that you've seen, and a smart take on your project-may mean you've found the right pro for your job.
A former carpenter and newspaper reporter, Oliver Marks has been writing about home improvements for 16 years. He's currently restoring his second fixer-upper with a mix of big hired projects and small do-it-himself jobs.
For all of the excitement of choosing plumbing fixtures, cabinets, and tiles for a remodeling project, the most important decision you make won't involve color swatches or glossy brochures. It's the contractor you pick that makes or breaks the job. That choice will determine the quality of the craftsmanship, the timeliness of the work, and the amount of emotional and financial stress the process puts on you. To make sure you're getting the best contractor for the job, here are five questions to ask the candidates.
1. Would you please itemize your bid?
Many contractors prefer to give you a single, bottom-line price for your project, but this puts you in the dark about what they're charging for each aspect of the job. For example, let's say the original plan calls for beadboard wainscot in your bathroom, but you decide not to install it after all. How much should you be credited for eliminating that work? With a single bottom-line price, you have no way to know.
On the other hand, if you get an itemized bid, it'll show the costs for all of the various elements of the job-demolition, framing, plumbing, electrical, tile, fixtures, and so forth. That makes it easier to compare different contractors' prices and see where the discrepancies are. If you need to cut the project costs, you can easily assess your options. Plus, an itemized bid becomes valuable documentation about the exact scope of the project, which may eliminate disputes later.
The contractor shouldn't give you a hard time about itemizing his bid. He has to figure out his total price line by line anyway, so you're not asking him to do more work, only to share the details. If he resists, it means he wants to withhold important information about his bid-a red flag for sure.
2. Is your bid an estimate or a fixed price?
Homeowners generally assume that the bid they're seeing is a fixed price, but some contractors treat their proposals as estimates, meaning bills could wind up being higher in the end. If he calls it an estimate, request a fixed price bid instead. If he says he can't offer a fixed price because there are too many unknowns about the job, then eliminate the unknowns.
"Have him open up a wall to check the structure he's unsure about or go back to your architect and solidify the design plans," says Tampa, Fla., attorney George Meyer, who is chair-elect of the American Bar Association's Forum on the Construction Industry. If you simply cannot resolve the unknowns he's concerned about, have the project specs describe what he expects to do-and if he needs to do additional work later, you can do a change order (a written mini-bid for new work).
3. How long have you been doing business in this town?
A contractor who's been plying his trade locally for 5 or 10 years has an established network of subcontractors and suppliers in the area and a local reputation to uphold. That makes him a safer bet than a contractor who's either new to the business or new to the area-or who's planning to commute to your job from 50 miles away.
You want to see a nearby address (not a PO box) on his business card-and should ask him to include one or two of his earliest clients on your list of references. This will help you verify that he hasn't just recently hung his shingle-and will give you perspective from a homeowner who has lived with the contractor's work for years. After all, the test of a quality job, whether it's a bluestone patio or a family room addition, is how well it stands the test of time.
4. Who are your main suppliers?
You've found a few potential contractors, you've talked to the happy former clients on each of their reference lists, now it's time for one additional bit of homework: talking to their primary suppliers. There's no better reference for a tile setter, for example, than his preferred tile shop; for a general contractor than his favorite lumberyard or home center pro desk; for a plumber than the kitchen and bath showroom where he's on a first name basis.
The proprietors of these shops know a contractor's professional reputation, whether he has left a trail of unhappy customers in his wake, if he's reliable about paying his bills-and whether he's someone you'll want to hire. The contractor should have absolutely no qualms about telling you where he gets his materials, as long as he's an upstanding customer.
5. I'd like to meet the job foreman-can you take me to a project he's running?
Many contractors don't actually swing hammers. They spend their days bidding new work and managing their various jobs and workers. In some cases, the contractor you hire may not visit the jobsite every day-or may not even show himself again after you've signed the contract. So the job foreman-the one who's working on your project every day-is actually the most important member of your team.
Meeting him in person and seeing a job that he's running should give you a feel for whether he's someone you want managing your project. Plus, it gives the general contractor an incentive to assign you one of his better crews since you're more likely to hire him if you see his A Team. If the contractor says he'll be running the job himself, ask whether he'll be there every day. Again, he'll want to give you a positive response-something you can hold him to later on.
It's not only the answers to these questions that will help you judge potential contractors-it's the way they answer them. Were they easy to talk to and forthcoming with details or did they hem and haw and make you ask more than once? Difficulty communicating now means difficulty communicating on the job later. But clear, timely and thoughtful responses-combined with terrific references, great completed work that you've seen, and a smart take on your project-may mean you've found the right pro for your job.
A former carpenter and newspaper reporter, Oliver Marks has been writing about home improvements for 16 years. He's currently restoring his second fixer-upper with a mix of big hired projects and small do-it-himself jobs.
Tuesday, November 24, 2009
Remodeling a Bathroom the Green Way
If you want to make sure your bathroom remodeling project is as green as possible, here's how to save energy, conserve resources, and protect your budget.
You care about the environment. You also happen to have a bathroom badly in need of remodeling. How do you get the job done with minimal impact on both our fragile planet and your precious budget? Thankfully, the growth of the green building movement has given rise to many eco-responsible products and resources that allow you to create the water-conserving, healthy, energy-wise bath you've always wanted-all without busting your bottom line. Here's what you need to know.
It's all about the water
Thinking about greening your bathroom means considering how you use water in terms of consumption and energy. According to the American Water Works Association, your humble toilets are the thirstiest water users in the house, accounting for 27% of consumption. This fact inspired conservation schemes like placing something hefty in the toilet tank to reduce flushing capacity, and those low-flow toilets that too often didn't flush what needed flushing.
A more successful approach is the dual-flush toilet. It has two flush buttons, one for light work, one for heavy. Long a mainstay in Europe, dual-flush toilets are available in the U.S. for $250-$400, a price in line with top-quality conventional toilets. A dual flush toilet can save 17,000 gallons of water a year-about $50 off your water bill. If you wish to keep your old toilet (a very green decision), you can retrofit it with a dual flush mechanism costing only $70.
The shower is another squanderer of water. Showers use 16% to 20% of a home's water, most of it heated. The flow rate of a typical shower head is 2.5 gallons per minute. Switching it out with a low-flow head of 1.5 to 2 gallons per minute still offers adequate cleansing power with a substantial savings in water usage. (If you cherish a really forceful blast of hot water, consider a full-flow shower head with a lever that lets you shut it off while you lather.)
In addition to conserving water, you'll want to take a close look at the way your water is heated. Second only to the kitchen, the bathroom is your home's most intensive energy user, with most of that energy going towards those nice hot showers and baths. Curbing wasted energy can be as simple as adding an insulating blanket to your tank-type heater (reducing energy use by 4% to 9%) and insulating all accessible hot water pipes. In addition, most water heaters are set to 140 degrees; you can turn down the water heater temperature setting to a still-toasty 120 degrees and save up to $60 per year on energy costs.
If your old water heater is nearing the end of its 15-year life cycle and you're considering investing in a new water heater, you can achieve some handsome energy savings. One smart option is a condensing storage water heater. Using technology similar to that of high-efficiency furnaces, the condensing heater puts nearly every possible BTU into the water instead of sending it up the flue. Currently, a 50-gallon gas unit costs $1,700 (versus $380 for a standard tank-type heater), a price that is expected to drop as demand takes hold. Installation costs are around $400, slightly higher than that of standard units. Those higher costs are offset by a $300 tax credit and an EPA estimated annual fuel savings of more than $100.
A tankless water heater heats water only as it is needed, avoiding the heat loss that occurs with a conventional tank. A unit costs about $2,000 installed, and your annual energy savings will be $70 a year. Be aware that these units take some getting used to; expect a shot of cold water before the hot kicks in.
Move that air
A bathroom remodel is an excellent time to consider installing a new exhaust ventilator fan to remove odors, moisture, and mold spores. Many bathroom fans only vent to the space between ceiling joists, creating an environment for mold and dampness that can damage walls and ceilings. Make sure your new fan vents completely to the outside of your house.
Unfortunately, even properly installed fans that push the moist outdoors can carry away a lot of heated air as well. A clever solution to this problem is a heat-exchange ventilator that uses outgoing air to warm the cold incoming air. Such units cost about $250 uninstalled, twice the price of a standard fan. Whatever fan you have, avoid an on-off switch; it's too easy to forget to turn it off. Replace it with a timer switch or, better yet, buy a new fan unit with a motion- or humidity-sensing switch.
Selecting green materials
A green bathroom remodel need not stint on style. Classic ceramic tile comes in limitless colors and patterns, and is a green choice due to its low maintenance, durability, and low toxicological impact. Some tiles have high recycled content; recycled glass tiles are a lovely way to do the right ecological thing. Not buying something new can be good green idea too. Consider refinishing your old tub or sink. Use the pros for the best results. Expect to pay $500 for a tub, $300 for a sink. You'll save as much on installation costs.
LED illumination now produces pleasing light quality in fixtures that sip only 2 to 15 watts, emit little heat, and have a life span of 15-20 years. They cost about three times as much as conventional fixtures but use so little electricity that the payback can be as short as a year.
Paint and vinyl coverings often come loaded with VOCs (volatile organic compounds) that threaten indoor air quality. Look for building materials with Green Seal certification. Green Seal is a non-profit, independent organization that certifies products claiming to be environmentally friendly. Low-VOC options in paints and adhesives can be found at your local home center.
Waste not
Much of our landfill (estimates range from 22% to 40%) comes from construction debris. Any steps that reduce landfill potentially reduce the chance of ground water pollution, the odor and unsightliness of a local landfill, and in some cases the high cost of shipping waste elsewhere. Much of the debris that comes from a remodeling tear-out is not salvageable, but old toilets, sinks, light fixtures, medicine cabinets, and vanities can be donated to an organization like Habitat for Humanity's ReStore. In fact, it may be just what someone is seeking for their own green remodeling.
Dave Toht has written or edited more than 60 books on home repair and remodeling, including titles for The Home Depot, Lowe's, Better Homes & Gardens, Sunset, and Reader's Digest. A former contractor with decades of hands-on experience, Dave was editor of Remodeling Ideas magazine and continues to contribute to numerous how-to publications. He is currently putting the finishing touches on a green addition to his Olympia, Wash., home.
You care about the environment. You also happen to have a bathroom badly in need of remodeling. How do you get the job done with minimal impact on both our fragile planet and your precious budget? Thankfully, the growth of the green building movement has given rise to many eco-responsible products and resources that allow you to create the water-conserving, healthy, energy-wise bath you've always wanted-all without busting your bottom line. Here's what you need to know.
It's all about the water
Thinking about greening your bathroom means considering how you use water in terms of consumption and energy. According to the American Water Works Association, your humble toilets are the thirstiest water users in the house, accounting for 27% of consumption. This fact inspired conservation schemes like placing something hefty in the toilet tank to reduce flushing capacity, and those low-flow toilets that too often didn't flush what needed flushing.
A more successful approach is the dual-flush toilet. It has two flush buttons, one for light work, one for heavy. Long a mainstay in Europe, dual-flush toilets are available in the U.S. for $250-$400, a price in line with top-quality conventional toilets. A dual flush toilet can save 17,000 gallons of water a year-about $50 off your water bill. If you wish to keep your old toilet (a very green decision), you can retrofit it with a dual flush mechanism costing only $70.
The shower is another squanderer of water. Showers use 16% to 20% of a home's water, most of it heated. The flow rate of a typical shower head is 2.5 gallons per minute. Switching it out with a low-flow head of 1.5 to 2 gallons per minute still offers adequate cleansing power with a substantial savings in water usage. (If you cherish a really forceful blast of hot water, consider a full-flow shower head with a lever that lets you shut it off while you lather.)
In addition to conserving water, you'll want to take a close look at the way your water is heated. Second only to the kitchen, the bathroom is your home's most intensive energy user, with most of that energy going towards those nice hot showers and baths. Curbing wasted energy can be as simple as adding an insulating blanket to your tank-type heater (reducing energy use by 4% to 9%) and insulating all accessible hot water pipes. In addition, most water heaters are set to 140 degrees; you can turn down the water heater temperature setting to a still-toasty 120 degrees and save up to $60 per year on energy costs.
If your old water heater is nearing the end of its 15-year life cycle and you're considering investing in a new water heater, you can achieve some handsome energy savings. One smart option is a condensing storage water heater. Using technology similar to that of high-efficiency furnaces, the condensing heater puts nearly every possible BTU into the water instead of sending it up the flue. Currently, a 50-gallon gas unit costs $1,700 (versus $380 for a standard tank-type heater), a price that is expected to drop as demand takes hold. Installation costs are around $400, slightly higher than that of standard units. Those higher costs are offset by a $300 tax credit and an EPA estimated annual fuel savings of more than $100.
A tankless water heater heats water only as it is needed, avoiding the heat loss that occurs with a conventional tank. A unit costs about $2,000 installed, and your annual energy savings will be $70 a year. Be aware that these units take some getting used to; expect a shot of cold water before the hot kicks in.
Move that air
A bathroom remodel is an excellent time to consider installing a new exhaust ventilator fan to remove odors, moisture, and mold spores. Many bathroom fans only vent to the space between ceiling joists, creating an environment for mold and dampness that can damage walls and ceilings. Make sure your new fan vents completely to the outside of your house.
Unfortunately, even properly installed fans that push the moist outdoors can carry away a lot of heated air as well. A clever solution to this problem is a heat-exchange ventilator that uses outgoing air to warm the cold incoming air. Such units cost about $250 uninstalled, twice the price of a standard fan. Whatever fan you have, avoid an on-off switch; it's too easy to forget to turn it off. Replace it with a timer switch or, better yet, buy a new fan unit with a motion- or humidity-sensing switch.
Selecting green materials
A green bathroom remodel need not stint on style. Classic ceramic tile comes in limitless colors and patterns, and is a green choice due to its low maintenance, durability, and low toxicological impact. Some tiles have high recycled content; recycled glass tiles are a lovely way to do the right ecological thing. Not buying something new can be good green idea too. Consider refinishing your old tub or sink. Use the pros for the best results. Expect to pay $500 for a tub, $300 for a sink. You'll save as much on installation costs.
LED illumination now produces pleasing light quality in fixtures that sip only 2 to 15 watts, emit little heat, and have a life span of 15-20 years. They cost about three times as much as conventional fixtures but use so little electricity that the payback can be as short as a year.
Paint and vinyl coverings often come loaded with VOCs (volatile organic compounds) that threaten indoor air quality. Look for building materials with Green Seal certification. Green Seal is a non-profit, independent organization that certifies products claiming to be environmentally friendly. Low-VOC options in paints and adhesives can be found at your local home center.
Waste not
Much of our landfill (estimates range from 22% to 40%) comes from construction debris. Any steps that reduce landfill potentially reduce the chance of ground water pollution, the odor and unsightliness of a local landfill, and in some cases the high cost of shipping waste elsewhere. Much of the debris that comes from a remodeling tear-out is not salvageable, but old toilets, sinks, light fixtures, medicine cabinets, and vanities can be donated to an organization like Habitat for Humanity's ReStore. In fact, it may be just what someone is seeking for their own green remodeling.
Dave Toht has written or edited more than 60 books on home repair and remodeling, including titles for The Home Depot, Lowe's, Better Homes & Gardens, Sunset, and Reader's Digest. A former contractor with decades of hands-on experience, Dave was editor of Remodeling Ideas magazine and continues to contribute to numerous how-to publications. He is currently putting the finishing touches on a green addition to his Olympia, Wash., home.
Friday, November 20, 2009
Congrats to Jessie Hoff-Agent fo the MONTH
Congratulations to Jessie Hoff for earning the CENTURY 21 JRS Realty Agent of the Month for October 2009. Jessie has worked hard all your and finally put the right pieces together in the same month. In October Jessie had multiple listings and a sale as well. This is the second time Jessie has earned the Agent of the Month Trophy. CENTURY 21 JRS Realty is very proud to have and agent of Jessies caliber working in the company. Jessie has been a top agent for many years and will continue to help buyers and sellers reach their goals. Congratulations again to Jessie Hoff.
Saturday, November 7, 2009
Bergen Catholic rolls over St. Joseph (Mont.)
Bergen Catholic
(5 - 2 - 0) November 7th, 2009
2 p.m.
St. Joseph (Mont.)
Montvale, NJ
St. Joseph (Mont.)
(6 - 2 - 0)
28 7
Bergen Catholic 28, St. Joseph (Mont.) 7 (High school Football scores and results)
The Star Ledger, November 07, 2009 7:36 p.m.
There were many outstanding performers on defense for Bergen Catholic yesterday, but none better than senior linebackers Brendan McGovern and Sam Shirak.
McGovern scored the first touchdown and Shirak was all over the field, especially in the opponent's backfield, when Bergen Catholic, No. 6 in The Star-Ledger top 20, scored early and then coasted to a 28-7 victory over its rival, ninth-ranked St. Joseph, in Montvale.
Both powers will now prepare for the state playoffs that open this coming weekend. Bergen Catholic has qualified in Non-Public, Group 4 and St. Joseph will play in the Non-Public, Group 3 field.
St. Joseph quarterback Devin O'Connor was harassed and hurried all afternoon and sacked seven times. Shirak collected two and a half sacks and eight tackles, McGovern collected eight tackles and a sack, linebacker Doug Rigg and end Chris Bush collected one and a half sacks and lineman Hunter Kiselick recorded a sack and an interception.
``They have a great team. And every time we play St. Joe's we have to prepare for a battle,'' McGovern said. ``We had to shut down their skilled players (runner Kamal) Hogan and O'Connor. We did a lot of blitzing and didn't let O'Connor get comfortable in the backfield.''
O'Connor was sacked for minus 51 yards and passed for 130 yards and Hogan rushed for 103 of his team's 113 yards. He also had a touchdown.
On St. Joseph's first drive, it moved to the Bergen Catholic 31 but fumbled and McGovern scooped it up in stride and dashed 65 yards for the touchdown with 6:33 left in the first period. Mike Halligan kicked the extra point.
On Bergen Catholic's first drive, it moved 80 yards in just six plays. Spencer Kulcsar caught a 25-yard pass from Mike Halligan before Rigg raced for a 44-yard score.
The defenses dominated in the second period. The team from Oradell grabbed a 21-0 advantage on its initial push in the second half as it marched 63 yards in eight maneuvers. Three passes by Halligan totaling 25 yards helped advance the ball to the 36. From there, Kulcsar motored around the left side for a score.
But St. Joseph responded with a touchdown after Hogan returned the kickoff to the 34 and a 15-yard horse collar penalty brought the ball to the 49. Hogan churned out all the yardage on four carries including the final 15 to the end zone. Jason Checke followed with the kick.
The Montvale team made things interesting in the fourth quarter as it went 45 yards to the 13. But Shirak sacked O'Connor for a 9-yard loss and Rigg and Chris Bush combined to bring down the quarterback for a 5-yard loss on fourth down.
St. Joseph got the ball back but not for long as Kiselick intercepted a pass at the middle of the field and brought it back 22 yards for a score.
``We have a lot of quickness on defense and didn't let them get to the outside,'' Shirak said. ``We worked hard to prepare for this game and this put us back in the big three (with Don Bosco Prep and St. Peter's Prep). I can't wait for the state playoffs to start.''
1st 2nd 3rd 4th Final
St. Joseph (Mont.) (6-2) 0 0 7 0 7
Bergen Catholic (7-2) 14 0 7 7 28First Quarter
Bergen Catholic: Brendan McGovern 65 fumble return (Mike Halligan kick)
Bergen Catholic: Doug Rigg 44 run (Mike Halligan kick)
Third Quarter
Bergen Catholic: Spencer Kulcsar 36 run (Mike Halligan kick)
St. Joseph (Mont.): Kamal Hogan 15 run (Jason Checke kick)
Fourth Quarter
Bergen Catholic: Hunter Kiselick 22 interception return (Mike Halligan kick)
(5 - 2 - 0) November 7th, 2009
2 p.m.
St. Joseph (Mont.)
Montvale, NJ
St. Joseph (Mont.)
(6 - 2 - 0)
28 7
Bergen Catholic 28, St. Joseph (Mont.) 7 (High school Football scores and results)
The Star Ledger, November 07, 2009 7:36 p.m.
There were many outstanding performers on defense for Bergen Catholic yesterday, but none better than senior linebackers Brendan McGovern and Sam Shirak.
McGovern scored the first touchdown and Shirak was all over the field, especially in the opponent's backfield, when Bergen Catholic, No. 6 in The Star-Ledger top 20, scored early and then coasted to a 28-7 victory over its rival, ninth-ranked St. Joseph, in Montvale.
Both powers will now prepare for the state playoffs that open this coming weekend. Bergen Catholic has qualified in Non-Public, Group 4 and St. Joseph will play in the Non-Public, Group 3 field.
St. Joseph quarterback Devin O'Connor was harassed and hurried all afternoon and sacked seven times. Shirak collected two and a half sacks and eight tackles, McGovern collected eight tackles and a sack, linebacker Doug Rigg and end Chris Bush collected one and a half sacks and lineman Hunter Kiselick recorded a sack and an interception.
``They have a great team. And every time we play St. Joe's we have to prepare for a battle,'' McGovern said. ``We had to shut down their skilled players (runner Kamal) Hogan and O'Connor. We did a lot of blitzing and didn't let O'Connor get comfortable in the backfield.''
O'Connor was sacked for minus 51 yards and passed for 130 yards and Hogan rushed for 103 of his team's 113 yards. He also had a touchdown.
On St. Joseph's first drive, it moved to the Bergen Catholic 31 but fumbled and McGovern scooped it up in stride and dashed 65 yards for the touchdown with 6:33 left in the first period. Mike Halligan kicked the extra point.
On Bergen Catholic's first drive, it moved 80 yards in just six plays. Spencer Kulcsar caught a 25-yard pass from Mike Halligan before Rigg raced for a 44-yard score.
The defenses dominated in the second period. The team from Oradell grabbed a 21-0 advantage on its initial push in the second half as it marched 63 yards in eight maneuvers. Three passes by Halligan totaling 25 yards helped advance the ball to the 36. From there, Kulcsar motored around the left side for a score.
But St. Joseph responded with a touchdown after Hogan returned the kickoff to the 34 and a 15-yard horse collar penalty brought the ball to the 49. Hogan churned out all the yardage on four carries including the final 15 to the end zone. Jason Checke followed with the kick.
The Montvale team made things interesting in the fourth quarter as it went 45 yards to the 13. But Shirak sacked O'Connor for a 9-yard loss and Rigg and Chris Bush combined to bring down the quarterback for a 5-yard loss on fourth down.
St. Joseph got the ball back but not for long as Kiselick intercepted a pass at the middle of the field and brought it back 22 yards for a score.
``We have a lot of quickness on defense and didn't let them get to the outside,'' Shirak said. ``We worked hard to prepare for this game and this put us back in the big three (with Don Bosco Prep and St. Peter's Prep). I can't wait for the state playoffs to start.''
1st 2nd 3rd 4th Final
St. Joseph (Mont.) (6-2) 0 0 7 0 7
Bergen Catholic (7-2) 14 0 7 7 28First Quarter
Bergen Catholic: Brendan McGovern 65 fumble return (Mike Halligan kick)
Bergen Catholic: Doug Rigg 44 run (Mike Halligan kick)
Third Quarter
Bergen Catholic: Spencer Kulcsar 36 run (Mike Halligan kick)
St. Joseph (Mont.): Kamal Hogan 15 run (Jason Checke kick)
Fourth Quarter
Bergen Catholic: Hunter Kiselick 22 interception return (Mike Halligan kick)
Saturday, October 31, 2009
Top 7 Strategies for Real Estate Sales Success
Top 7 Strategies for Real Estate Sales Success
With over 2 million real estate agents according to the National Association of Realtors (NAR), becoming a successful real estate agent takes more than just a license and a knowledge of current laws and regulations. The first year drop out range estimated to be from 40% to 80% demonstrates that many real estate agents are not as successful as they could be and research suggests that 90% give up after 3 years. The following 7 tips may help you avoid becoming one of these statistics.
First and Foremost YOU are a business!
Real estate agents work for a broker, but are independent, commissioned sales people. This means that you are a small business and must run your practice as a business. Again, remember you are a small business owner.
Embrace a Planning Attitude
If you don’t have a plan, then you are on some else’s plan – usually the successful real estate agent. Most people place more value in planning a trip to the grocery store or a vacation than planning their lives either professionally or personally.
Research Your Market Plan
Since you as the real estate agent are responsible for your own expenses, do your research specific to your marketing plan within your strategic plan. Time spent in constructing your marketing plan is definitely well spent. NOTE: Remember a business plan usually is data driven, while a strategic plan identifies who does what by when.
Establish Sales Goals
Using your strategic plan, establish sales goals. If you are new to this industry, it may take 6 months before the first sale. HINT: Use the W.H.Y. S.M.A.R.T. criteria for goal setting.
Create a Financial Budget
Budgeting is critical given the up and down of this volatile market place. Your financial budget should plan for your marketing costs, any additional costs such as education and your forecasted income.
Make Managing Yourself a Priority
Building a business is not easy. You must learn how to manage yourself especially in the area of time management, ongoing real estate sales training (continuing education units), real estate coaching and personal life balance. Real estate is said to be a 24/7 business much like any small business. However, it is important not to lose sight of your personal life including family, friends, physical health, etc.
Find a Mentor or Real Estate Coach
Going it alone is not easy. Take the time to find a mentor who can help you steer through some of the known obstacles and help you during the “peaks and valleys.” If you have the resources, you may wish to hire a real estate coach, small business coach or an executive coach who specializes in small business help.
With over 2 million real estate agents according to the National Association of Realtors (NAR), becoming a successful real estate agent takes more than just a license and a knowledge of current laws and regulations. The first year drop out range estimated to be from 40% to 80% demonstrates that many real estate agents are not as successful as they could be and research suggests that 90% give up after 3 years. The following 7 tips may help you avoid becoming one of these statistics.
First and Foremost YOU are a business!
Real estate agents work for a broker, but are independent, commissioned sales people. This means that you are a small business and must run your practice as a business. Again, remember you are a small business owner.
Embrace a Planning Attitude
If you don’t have a plan, then you are on some else’s plan – usually the successful real estate agent. Most people place more value in planning a trip to the grocery store or a vacation than planning their lives either professionally or personally.
Research Your Market Plan
Since you as the real estate agent are responsible for your own expenses, do your research specific to your marketing plan within your strategic plan. Time spent in constructing your marketing plan is definitely well spent. NOTE: Remember a business plan usually is data driven, while a strategic plan identifies who does what by when.
Establish Sales Goals
Using your strategic plan, establish sales goals. If you are new to this industry, it may take 6 months before the first sale. HINT: Use the W.H.Y. S.M.A.R.T. criteria for goal setting.
Create a Financial Budget
Budgeting is critical given the up and down of this volatile market place. Your financial budget should plan for your marketing costs, any additional costs such as education and your forecasted income.
Make Managing Yourself a Priority
Building a business is not easy. You must learn how to manage yourself especially in the area of time management, ongoing real estate sales training (continuing education units), real estate coaching and personal life balance. Real estate is said to be a 24/7 business much like any small business. However, it is important not to lose sight of your personal life including family, friends, physical health, etc.
Find a Mentor or Real Estate Coach
Going it alone is not easy. Take the time to find a mentor who can help you steer through some of the known obstacles and help you during the “peaks and valleys.” If you have the resources, you may wish to hire a real estate coach, small business coach or an executive coach who specializes in small business help.
Read this today to have Sales Success Tomorrow
Creating Daily Success in Real Estate
The journey to a successful life should be enjoyed. True success comes from accomplishing the activities daily that will lead you to your ultimate goals in life. Failing or neglecting to accomplish the daily disciplines will lead you down the path of lost opportunities and lost income. If the penalty for not accomplishing your daily activities or disciplines was implemented or assessed today, we would look at neglecting them differently. The truth is that the penalty for neglect is more visible in the future than it is today. The person who eats fried foods does not pay the penalty at 35, he pays at 55. The person who fails to save 10% of his income for retirement is not penalized at 40, but at 60. The prospecting we fail to do today does not hurt our income today, but 90 to 120 days from now.
If we were zapped today from neglecting the daily disciplines rather than in the future, our daily disciplines would change. We need to associate pain today with not doing our daily disciplines in the real estate business. We have to make the neglect more painful than the activity pain. The truth is we have a tendency to move away from pain and towards pleasure.
There are three disciplines that must be done daily in real estate for success. They are working on growth, administration, and working ON your business. Let’s look at each individual area comprehensively.
Growth:
Growth is the part of the business that brings in the revenue for your business. The more time you spend of your day in growth, the more income that you will make. Most agents focus little time on growth activities daily. They work on growth activities at the last minute, when they are running short on funds. The problem is that is too late. To have a steady business income you need a steady approach to growth.
Growth is the prospecting that you do daily. It is the listing appointments that you have for the day. It is the lead follow-up that you are doing on the people who want to buy or sell. It is the meeting with your lender to work on your competitive advantage in the marketplace.
Growth is the critical part to any business. Without growth a business will fail. I know a lot of agents who are highly skilled in growth and poorly skilled in administration and working on their business who earn large amounts of money. I know of very few successful agents who are not highly skilled at growth. You can have huge deficiencies in administration and working on your business but still win the game. You can not be deficient in growth and win. My focus is to help our clients achieve a high level of skill in all three areas. Growth is the engine that powers the train; you must first pay attention to growth.
Growth demands a minimum of three hours daily in the activities of growth: prospecting, appointments, lead follow-up, and meeting with affiliates. Prospecting should comprise 65% of the growth time daily. If the prospecting does not happen, the other growth areas will wither. Remember the higher the hours spent on growth, the higher the income and profit.
Administration:
These are the activities that complete the income stream:
Processing the listing so agents can find it in the MLS
Processing the sold property through escrow
Communicating with your clients on a regular basis
Directing your staff and monitoring their progress
These activities done well will enable you to turn clients into fans who will look for new business for you. You will need one to two hours daily for administration. If you create a good system and have a highly trained and skilled staff, your time spent in this area will be reduced. In the perfect system administration gets done well, but the agent spends little of his personal time on it.
On your business:
This is the time that most people neglect. This working on your business really separates long-term success and growth from just running faster on the treadmill of life. Long-term financial success lies in this section of your day. The ability to earn more profit is also located here.
We are all really employees of our own little real estate business. We are the ones who bring in the business and make the system go. The more time we plan, read, strategize, practice, role play, and implement our ideas, the more ownership we gain. Becoming the owner of your real estate business only happens through diligent work on your business. Instead of being the employee who works to draw a salary and pay the bills, why not become the one who orchestrates the company? Be the one who has something to sell when he wants to try something else and/or retire.
Working on your business is truly taking a step back from the daily rat race and to look at your growth and administration areas for ways to improve them. Look at your productivity and profitability then evaluate your progress. You cannot make meaningful change without evaluation as an owner, rather than as an employee on a tread mill.
Working on your business is critical to helping you move to the next level of production, or to decrease time worked without reducing income, or finding where to cut expenses by 10%. Working on your business will help you create economies of scale in administration and new ways to produce growth and income in your business. You need one hour per day of working on time. For every minute you plan you will save ten minutes in implementation.
What do you think your business would look like in 90 days or even six months if you were to implement the below daily routine?
Growth: 3 hours
Administration: 1 to 2 hours
Business: 1 hour
Time block these activities into your daily routine. You will be amazed at the results you will achieve, even in one week. Do not allow the distractions to overtake you and your new daily focus. Do not neglect to do the things that will lead you to success. Do them daily without fail.
The journey to a successful life should be enjoyed. True success comes from accomplishing the activities daily that will lead you to your ultimate goals in life. Failing or neglecting to accomplish the daily disciplines will lead you down the path of lost opportunities and lost income. If the penalty for not accomplishing your daily activities or disciplines was implemented or assessed today, we would look at neglecting them differently. The truth is that the penalty for neglect is more visible in the future than it is today. The person who eats fried foods does not pay the penalty at 35, he pays at 55. The person who fails to save 10% of his income for retirement is not penalized at 40, but at 60. The prospecting we fail to do today does not hurt our income today, but 90 to 120 days from now.
If we were zapped today from neglecting the daily disciplines rather than in the future, our daily disciplines would change. We need to associate pain today with not doing our daily disciplines in the real estate business. We have to make the neglect more painful than the activity pain. The truth is we have a tendency to move away from pain and towards pleasure.
There are three disciplines that must be done daily in real estate for success. They are working on growth, administration, and working ON your business. Let’s look at each individual area comprehensively.
Growth:
Growth is the part of the business that brings in the revenue for your business. The more time you spend of your day in growth, the more income that you will make. Most agents focus little time on growth activities daily. They work on growth activities at the last minute, when they are running short on funds. The problem is that is too late. To have a steady business income you need a steady approach to growth.
Growth is the prospecting that you do daily. It is the listing appointments that you have for the day. It is the lead follow-up that you are doing on the people who want to buy or sell. It is the meeting with your lender to work on your competitive advantage in the marketplace.
Growth is the critical part to any business. Without growth a business will fail. I know a lot of agents who are highly skilled in growth and poorly skilled in administration and working on their business who earn large amounts of money. I know of very few successful agents who are not highly skilled at growth. You can have huge deficiencies in administration and working on your business but still win the game. You can not be deficient in growth and win. My focus is to help our clients achieve a high level of skill in all three areas. Growth is the engine that powers the train; you must first pay attention to growth.
Growth demands a minimum of three hours daily in the activities of growth: prospecting, appointments, lead follow-up, and meeting with affiliates. Prospecting should comprise 65% of the growth time daily. If the prospecting does not happen, the other growth areas will wither. Remember the higher the hours spent on growth, the higher the income and profit.
Administration:
These are the activities that complete the income stream:
Processing the listing so agents can find it in the MLS
Processing the sold property through escrow
Communicating with your clients on a regular basis
Directing your staff and monitoring their progress
These activities done well will enable you to turn clients into fans who will look for new business for you. You will need one to two hours daily for administration. If you create a good system and have a highly trained and skilled staff, your time spent in this area will be reduced. In the perfect system administration gets done well, but the agent spends little of his personal time on it.
On your business:
This is the time that most people neglect. This working on your business really separates long-term success and growth from just running faster on the treadmill of life. Long-term financial success lies in this section of your day. The ability to earn more profit is also located here.
We are all really employees of our own little real estate business. We are the ones who bring in the business and make the system go. The more time we plan, read, strategize, practice, role play, and implement our ideas, the more ownership we gain. Becoming the owner of your real estate business only happens through diligent work on your business. Instead of being the employee who works to draw a salary and pay the bills, why not become the one who orchestrates the company? Be the one who has something to sell when he wants to try something else and/or retire.
Working on your business is truly taking a step back from the daily rat race and to look at your growth and administration areas for ways to improve them. Look at your productivity and profitability then evaluate your progress. You cannot make meaningful change without evaluation as an owner, rather than as an employee on a tread mill.
Working on your business is critical to helping you move to the next level of production, or to decrease time worked without reducing income, or finding where to cut expenses by 10%. Working on your business will help you create economies of scale in administration and new ways to produce growth and income in your business. You need one hour per day of working on time. For every minute you plan you will save ten minutes in implementation.
What do you think your business would look like in 90 days or even six months if you were to implement the below daily routine?
Growth: 3 hours
Administration: 1 to 2 hours
Business: 1 hour
Time block these activities into your daily routine. You will be amazed at the results you will achieve, even in one week. Do not allow the distractions to overtake you and your new daily focus. Do not neglect to do the things that will lead you to success. Do them daily without fail.
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