Low-Cost Kitchen Improvements for Any Home

Not every home owner can splurge on a total upscale kitchen redo, now pegged on average at $111,000, according to the latest Cost vs. Value Report from Remodeling magazine. Many home owners don’t even have the funds for a minor kitchen remodeling project, which is placed at around $20,000.

But a lack of funds isn’t necessarily the only issue. Even home owners with fat wallets and a love of congregating and cooking in a stylish kitchen may not want to invest so much, given the up-and-down nature of today’s housing market.

Specifically, two factors are holding back home owners from taking on kitchen redos:

▪ There’s no guarantee that prospective buyers will like, say, the sellers’ tangerine-painted walls — even if orange is oh-so-chic these days — or that a restaurant-style range will win them over, especially if they’re better at calling for reservations or take-out.

▪ The dollars invested may never be recouped, no matter how long home owners stay put. An upscale overhaul will return only about 57 percent of the money spent on the project, and a mid-range redo about 66 percent, according to the Cost vs. Value Report.

But the good news for those who still feel their current kitchen won’t do is that there’s loads of inspiration to appeal and borrow ideas from — those handsome rooms shown in the background of Food Network programs and other TV shows and movies, for example, or glossy home and design magazines.

The kitchen remains an important gathering space for many home owners — and one of the first places would-be-buyers look to decide if they’re interested in a purchase. Because of that, it should be a goal to make the kitchen as nice as possible with the funds at hand. Even if a seller or real estate agent has $20,000, $10,000, or just $5,000 to spend, those dollars can deliver a lot to make the kitchen look and function better.

Here are a dozen low-cost ideas you and your clients can use to improve this critical room:

▪ Paint remains the least expensive change agent. Home owners should take their cue from other colors in the room that are likely to stay — the “nonperishables,” says Chicago-based designer Mary Lou Kalmus. It might come from the backsplash or floor tile, or if the entire room is swathed in neutrals, it could be colors in the rest of the house, such as in an adjacent family room. Because the kitchen gets heavy use, it’s best if they use at least an eggshell rather than a flat finish.

▪ Backsplash tiles can be replaced, but Kalmus suggests home owners do so from the base of the upper cabinets down to the countertop — a full 18 inches is recommended. Top on her list of favorite choices are glass or newer-looking metallic tiles. She also suggests running them vertically rather than horizontally for a less-expected look.

▪ Replacing a countertop or two can help a room make an instant, fresh impression. And if money’s tight, home owners can go with a laminate rather than granite. To prevent laminate from scratching or showing burn marks, a textured choice is best.

▪ Tell clients to go with decor icons such as stainless steel that tend to appeal universally, says design expert and author Christopher Lowell, based in Santa Fe, N.M. They can start by replacing some dated and dysfunctional appliances with purchases at places like Sears or Costco, which offer professional-style models that bring a restaurant look at affordable prices. Once home owners introduce stainless options, they may want to run with the idea throughout — e.g., paper towel holders, trash cans, and cookware, Lowell says.

▪ If all the older appliances can’t be replaced, home owners might be wise to focus on one or two, which can still make a difference. Because the refrigerator may be the largest item in the room, Kalmus suggests changing it first if it’s old or small and considering a model with French doors, which offers the plus of storing larger items inside both the refrigerator and freezer sections and having a freezer on the bottom. For highly efficient cooking, plus the advantage of having instant on-off heat, an induction cooktop is another wise new appliance choice, though the newer technology often costs more. And even a new hood that’s more updated or visually interesting can provide a good focal point, says Los Angeles–area designer Christoper Grubb, president of Arch-Interiors Design Group.

▪ Betterlighting can make a huge difference in how much time home owners want to spend in their kitchen and how well it shows to buyers. The best spaces incorporate three essential layers: recessed lighting for an overall effect, with 4-inch rather than 6-inch cans for a less obtrusive look; undercabinet lights to perform tasks, with efficient LEDs or xenon bulbs for quality and energy efficiency; and a decorative fixture or two for mood-making such as pendants, sconces, or a chandelier. Bulbs should depend on manufacturers’ recommendations, but now often are halogens or incandescents. “The decorative choices can add a new design vocabulary to the room,” says San Francisco architect Christian Dauer.

▪ Small 8-inch floor tiles can quickly date a room, as can busy patterns. So replacing them with 16- to 22-inch porcelain floor tiles may make good economic and design sense, as well as decrease maintenance. A bigger budget may permit natural stone. Dauer is keen on wood floors since they’re easy on feet and favors bamboo and cork or a repeat of a wood used elsewhere in the home.

▪ Top on the “get-rid-of list” for many home owners are dark, dated cabinets. But since cabinetry represents 60 percent of many kitchen remodeling budgets, it’s often not possible to replace it totally. Several possibilities exist: Replace the doors or take a less expensive route and repaint them, suggests Kalmus, who also offers some caveats. Be sure the interiors still offer enough room and work well, or else the solution is just a temporary Band-Aid she says, and be sure the paint will cover well since sometimes it won’t if they’re very dark. “Full-overlay doors, for example, usually can be refaced, but the sides may first need sanding and prepping,” Dauer says. For a different punch, Lowell suggests replacing one or two doors in frosted glass within stainless steel frames, while Grubb throws out the idea of removing the fronts completely for a European look. In most cases, new spiffy knobs can make a huge improvement.

▪ For those without sufficient storagea common complaint of older or poorly arranged kitchens — try finding a closet even if not right in the kitchen but in an adjacent space. The best pantries are equipped with shelves of different heights to arrange a variety of canned goods and with pull-out drawers to make reaching to the back easier.

▪ Because open layouts are high on many buyers’ wish lists, taking down a wall or part of one between a kitchen and adjacent space should be considered if the kitchen is small and closed in and the wall isn’t a load-bearing, supporting one. Be careful that vents aren’t running through it, or be prepared to replace them, Kalmus says. If this isn’t possible, home owners might change out windows or doors for better light, views, and insulation. A new greenhouse-style window can become a spot to grow herbs and small plants.

▪ If home owners have room for an island, but are tight on funds, they might buy a gleaming, stainless-steel, counter-height table from a local restaurant supply store with a shelf underneath, add a few chopping boards from the same supply, and create a professional-looking center they can take with them, says Lowell. This addition also helps free other countertops of clutter.

▪ If the ultimate goal still is to gain a brand new kitchen when dollars permit, a better use of limited funds may be to hire an architect or designer skilled in kitchen planning to draw up a detailed layout that can be bid out later. Many design pros charge a flat fee or hourly rate. Dauer says the price will vary depending on the part of the country, size of the room, wish list, and extent of the remodeling work — if plumbing or HVAC systems need to be changed or walls taken down. His best guess is from $135 on up per hour. Chicago architect Allan J. Grant pegs it at between $90 and $150, depending on the person’s experience, plus reimbursable expenses.

 

Article by: Barbara Ballinger from RealtorMag.realtor.org

South Minneapolis Gem!

We met Kristy and Jess through a good friend of ours, Emily. Kristy and Jess were tired of renting and wanted a place to make their home in. They are a delightful pair and we set off to find them the home of their dreams. We started off looking at some major fixer uppers, considering and weighing the cost of fixing up versus buying a house that was ready to go, and as structural issues arose, that house got nixed.

Finally, an updated home with an open kitchen and great floor plan came on the market, in the highly desirable Field neighborhood in South Minneapolis. Just a block away from wonderful restaurants, shops and bars, this location was ideal for them. We moved quickly and made an offer, negotiating all brand-new windows and other items into the purchase agreement.

 

Kristy and Jess, we were so glad to be a part of helping you find your home and very much look forward to seeing you enjoy the home over the next years.

Congratulations on your home ownership!

Twin Cities Market Update – May 15, 2012

If only there were a system of grand, colorful lights for tracking residential real estate. Green for rising market, yellow for a transitional market and red for declining market. Let’s see if we can try to determine today’s market without the ease of well-known signals. Prices are bottoming and starting to rise. Buyer activity is showing year-over-year gains. Homes are selling faster and closer to list price. Multiple offers are becoming commonplace. Inventory levels are leaning toward the seller. Green means go.

In the Twin Cities region, for the week ending May 5:

• New Listings decreased 6.6% to 1,643
• Pending Sales increased 41.9% to 1,232
• Inventory decreased 28.3% to 17,579

For the month of April:

• Median Sales Price increased 12.1% to $162,500
• Days on Market decreased 15.1% to 135
• Percent of Original List Price Received increased 3.6% to 93.4%
• Months Supply of Inventory decreased 43.1% to 4.7

 

Local Market Updates:

Minneapolis Homes:
There are 65 ACTIVE LISTINGS. There were 5 NEW LISTINGS, 3 PENDING & NO SOLD last week.

Maple Grove Townhomes:
There are 24 ACTIVE LISTINGS. There were 5 NEW LISTINGS, 2 PENDING & 2 SOLD last week.

City of Plymouth:
356 Active homes and 16 Sold homes last week.

City of Wayzata:
61 Active homes and 2 Sold homes last week.

City of St. Louis Park:
256 Active homes and 4 Sold homes last week.

Looking for active/sold homes in your local community? Email office@kerbyandcristina.com and we’ll feature your area next week!

 

For full local update information, visit The Skinny

Bob’s Bottom Line Mortgage Update – May 14, 2012

Mortgage bond prices continue to show record strength this week . Bonds have pushed up against the all-time highs and these frothy prices in bonds have translated to record low mortgage rates. Mortgage rates in the mid to upper 3’s for a fixed rate may be here for a while as we watch a combination of weak economic data on the employment front, eurodrama with Greece threatening to leave the EU, and stocks taking a hit with JPMorgan Chase’s announcement of a $1B trading loss driving funds into the safe haven of US bonds. We could see mortgage rates in the short term reverse a bit, either way, now is the time to lock, whether refinancing or purchasing.

Mortgage Rates as of Friday May 11, 2012 ( purchase transactions )

30 day rate locks, subject to credit score and loan to value edits

FHA

30 year fixed 3.75% 0% origination fee

3.50% .50 origination fee

Conventional

30 year fixed rate 3.625% ( 30 day lock )

15 year fixed rate 2.875%

5/1 ARM 2.50%

7/1 ARM 2.875%

Are You a Buyer Looking to Purchase a Short Sale?

It seems that there is a significant amount of confusion when it comes to purchasing a short sale. There are many misconceptions when it comes to this type of transaction, so below I have provided some information to potential buyers of short sales. If you are looking to purchase a short sale, understand that it is not the same as a normal sale and the approach is very different.  There could be several parties involved and issues that are unknown to the buyer and buyer’s agent that can affect the transaction. If you are looking to purchase a short sale here is some helpful information.

1. On average, to get a short sale approval, it can take 60-90 days.

There could be mortgage insurance and an end investor on the loan as well as the servicer, which means it has to go through three different processes. Bank of America could be the servicer on the loan but they do not actually own the loan, so, the short sale has to pass their guidelines, then go to the mortgage insurer if there is one, then to the end investor like Fannie Mae and Freddie Mac. If you are a buyer and can’t wait at least 60-90 days for an approval and then another 30 days to go to closing, then you need to look at other houses. The worst thing you can do is tie up a house that is in a short sale with no intention of being patient while waiting for a short sale approval. Approvals can come sooner than 60 days, but industry standard is at least 60 days to get an approval or denial.

2. There is a general assumption that you can purchase a short sale for 40-50% under its listed price. In a short sale the bank comes out and does a valuation of the property and will expect a slight discount, but will not accept a huge amount under the market value.

Hopefully, if the agent who is handling the sale is experienced, they will have already gotten an approved list price from the bank by the time you are interested in making an offer. The bank will usually be willing to negotiate on that price, but will not, in almost every case, take 40-50% off of that price. To that point, you may be able to get a reasonable deal on a short sale, though it will not be, in most cases, as much of a deal as you may be able to get on an REO (foreclosed property). Also to that point, most short sales will be in better condition than an REO. When you look at the potential repairs a comparable REO needs and the time and expense it can take to do those improvements vs. a short sale being sold at a slight market discount with improvements already made, the investment could even out. There are REO properties that can be picked up for a huge discount, but require massive repairs that a comparable short sale may not require.

3. Short sales are a very difficult process and it takes a qualified person to handle this type of transaction.

With this type of transaction it takes a very experienced agent on the listing side as well as the buying side. Make sure before you move forward on the transaction that the listing agent has ample experience dealing with these types of transactions, or you could be tied up in a contract for months that never goes to settlement. There are several different types of short sale processes and each bank’s process is somewhat different; it takes a professional who has had experience with all of these different types of short sales to help facilitate a successful transaction.

4. In most short sale transactions the properties are sold “as-is” and no repairs will be made.

Although there are some exceptions to this rule, speaking in general, short sales are sold “as-is” and no repairs will be made even if they are found during a home inspection. In most short sale transactions the bank will require both the buyer and the seller to sign an addendum that states the property is being sold “As-is” and no repairs will be made.

These are just a few short pointers for buyers who are looking to purchase a short sale as they are a reality in every market, and if you have the patience you may be able to get the home you are looking for at a discount!

By the KCM Crew on May 8, 2012