Abby Waltz

I found this great article on Yahoo this morning concerning things that people usually think add value to their home but really don't in the end. I think it is something that all sellers should read and understand because I completely agree with it! It may save you a mortgage payment or two in the end by selling your home quicker in some cases but these things wont actually add any value to your home. I know real estate is forever changing and different across the nation so I wanted to repost it and see what your thoughts were on this! Please read the article below and let me know if you agree.

6 Things You Think Add Value to Your Home -- But Really Don't

Every homeowner must pay for routine home maintenance, such as replacing worn-out plumbing components or staining the deck, but some choose to make improvements with the intention of increasing the home's value. Certain projects, such as adding a well thought-out family room -- or other functional space -- can be a wise investment, as they do add to the value of the home. Other projects, however, allow little opportunity to recover the costs when it's time to sell.

Even though the current homeowner may greatly appreciate the improvement, a buyer could be unimpressed and unwilling to factor the upgrade into the purchase price. Homeowners, therefore, need to be careful with how they choose to spend their money if they are expecting the investment to pay off. Here are six things you think add value to your home, but really don't:

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1. Swimming Pools
Swimming pools are one of those things that may be nice to enjoy at your friend's or neighbor's house, but that can be a hassle to have at your own home. Many potential homebuyers view swimming pools as dangerous, expensive to maintain and a lawsuit waiting to happen. Families with young children in particular may turn down an otherwise perfect house because of the pool (and the fear of a child going in the pool unsupervised). In fact, a would-be buyer's offer may be contingent on the home seller dismantling an above-ground pool or filling in an in-ground pool.

An in-ground pool costs anywhere from $10,000 to more than $100,000, and additional yearly maintenance expenses need to be considered. That's a significant amount of money that might never be recouped if and when the house is sold.

2. Overbuilding for the Neighborhood
Homeowners may, in an attempt to increase the value of a home, make improvements to the property that unintentionally make the home fall outside of the norm for the neighborhood. While a large, expensive remodel, such as adding a second story with two bedrooms and a full bath, might make the home more appealing, it will not add significantly to the resale value if the house is in the midst of a neighborhood of small, one-story homes. (Overbuilding might be anticipating your neighborhood's next move.)

In general, homebuyers do not want to pay $250,000 for a house that sits in a neighborhood with an average sales price of $150,000; the house will seem overpriced even if it is more desirable than the surrounding properties. The buyer will instead look to spend the $250,000 in a $250,000 neighborhood. The house might be beautiful, but any money spent on overbuilding might be difficult to recover unless the other homes in the neighborhood follow suit.

3. Extensive Landscaping
Homebuyers may appreciate well-maintained or mature landscaping, but don't expect the home's value to increase because of it. A beautiful yard may encourage potential buyers to take a closer look at the property, but will probably not add to the selling price. If a buyer is unable or unwilling to put in the effort to maintain a garden, it will quickly become an eyesore, or the new homeowner might need to pay a qualified gardener to take charge. Either way, many buyers view elaborate landscaping as a burden (even though it might be attractive) and, as a result, are not likely to consider it when placing value on the home.

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4. High-End Upgrades
Putting stainless steel appliances in your kitchen or imported tiles in your entryway may do little to increase the value of your home if the bathrooms are still vinyl-floored and the shag carpeting in the bedrooms is leftover from the '60s. Upgrades should be consistent to maintain a similar style and quality throughout the home. A home that has a beautifully remodeled and modern kitchen can be viewed as a work in project if the bathrooms remain functionally obsolete. The remodel, therefore, might not fetch as high a return as if the rest of the home were brought up to the same level. High-quality upgrades generally increase the value of high-end homes, but not necessarily mid-range houses where the upgrade may be inconsistent with the rest of the home.

In addition, specific high-end features such as media rooms with specialized audio, visual or gaming equipment may be appealing to a few prospective buyers, but many potential homebuyers would not consider paying more for the home simply because of this additional feature. Chances are that the room would be re-tasked to a more generic living space.

5. Wall-to-Wall Carpeting
While real estate listings may still boast "new carpeting throughout" as a selling point, potential homebuyers today may cringe at the idea of having wall-to-wall carpeting. Carpeting is expensive to purchase and install. In addition, there is growing concern over the healthfulness of carpeting due to the amount of chemicals used in its processing and the potential for allergens (a serious concern for families with children). Add to that the probability that the carpet style and color that you thought was absolutely perfect might not be what someone else had in mind.

Because of these hurdles, wall-to-wall carpet is something on which it's difficult to recoup the costs. Removing carpeting and restoring wood floors is usually a more profitable investment.

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6. Invisible Improvements
Invisible improvements are those costly projects that you know make your house a better place to live in, but that nobody else would notice -- or likely care about. A new plumbing system or HVAC unit (heating, venting and air conditioning) might be necessary, but don't expect it to recover these costs when it comes time to sell. Many homebuyers simply expect these systems to be in good working order and will not pay extra just because you recently installed a new heater. It may be better to think of these improvements in terms of regular maintenance, and not an investment in your home's value.

The Bottom Line
It is difficult to imagine spending thousands of dollars on a home-improvement project that will not be reflected in the home's value when it comes time to sell. There is no simple equation for determining which projects will garner the highest return, or the most bang for your buck. Some of this depends on the local market and even the age and style of the house. Homeowners frequently must choose between an improvement that they would really love to have (the in-ground swimming pool) and one that would prove to be a better investment. A bit of research, or the advice of a qualified real estate professional, can help homeowners avoid costly projects that don't really add value to a home.

For more go to: http://finance.yahoo.com/real-estate/article/110874/things-that-dont-add-value-to-your-home?mod=realestate-homeimprove

Here is a fantastic article about what some military home buyers don't realize when selecting what type of loan they'd like to use to finance their home from one of my favorite websites!

No PMI with VA Loans

No private mortgage insurance is just one of the many benefits of the VA Home Loan Program. The U.S. Department of Veterans Affairs sets guidelines so that VA-approved lenders can offer attractive loan features to qualified VA borrowers. ...VA borrowers are not required to pay a monthly Private Mortgage Insurance (PMI) premium...

One of the unique features of VA loans is that they don't require private mortgage insurance (PMI). PMI is insurance on a conventional mortgage with more than an 80% loan-to-value (LTV) ratio. (FHA also has a mortgage insurance premium ("MIP") on most of its loans regardless of LTV.) The insurance helps cover lender losses in case a borrower defaults on the loan and the property goes into foreclosure. Because 25% of each VA loan mortgage amount is guaranteed by the federal government, VA-approved lenders consider the guaranty in lieu of PMI. Therefore, VA borrowers are not required to pay a monthly PMI premium.

Not having a monthly PMI payment can translate into big savings for the VA borrower. Typical PMI premiums on a conventional loan of $200,000 can run about $120 per month or $1,400 per year. Some borrowers end up paying PMI on non-VA loans even after their principal amounts dip below 80% LTV.

In some cases, an appraisal is necessary before PMI is canceled. Most appraisals cost between $300 and $400. Not having to pay for another appraisal is just another savings VA borrowers may experience by not having PMI associated with their loans.

People in the market for a mortgage may find that some conventional loans may be marketed as no-PMI loans. It's important to be aware that some loans advertised as "no PMI required" may be lender-paid PMI loans with higher interest rates. With some such loans, the borrower may end up paying for the PMI indirectly through higher monthly mortgage payments.

Understanding PMI is just one step in realizing the savings for VA borrowers with a no-PMI loan. In addition to no PMI, there are many advantages in using your VA home loan benefits. Other VA loan advantages include:

• No down payment
• Relaxed qualifying standards
• Competitive interest rates
• No penalties for mortgage pre-payment
• Cash-out and debt consolidation
• Streamline rate reduction

For more information about military home services check out this great resource: http://www.military.com/finance/homebuying/no-pmi-with-va-loans.html

With PCS season in full swing for the military I have been getting lots of questions from my fellow military members here at Scott Air Force Base, IL about the Homeownes Assistance Program (HAP) available to them. HAP is intended to help offset the decrease in home values for military personnel being forced to sell their home due to official military orders to move. Here is a great outline of the program as well as a website that should be able to answer all of your questions.

The American Recovery and Reinvestment Act (ARRA) opened up a Department of Defense initiative known as the Homeowners Assistance Program, or HAP, which was created by Congress in 1966 to aid military families, surviving spouses and federal civilian employees affected by a base realignment or closure, which, in military lingo, is called BRAC.

Under ARRA, the BRAC requirement is waived. Now, help is available merely if eligible personnel are under mandatory orders to transfer on a permanent basis.

"Like many Americans, DoD families feel the economic downturn's impact as they cope with the unique challenges of military life," says Ilse Merryman, who manages HAP. "They often don't get to choose when they move and may be forced to sell their homes when they don't want to. Often, service members are ordered to change duty stations and establish new homes, sometimes every two to three years."

There are numerous rules and eligibility requirements, but here's a brief rundown of the expanded HAP program, which is run by the Army Corps of Engineers on behalf of all the branches of the military:

• Applications for aid will be processed according to eligibility in this order:

1. Owners who were injured, wounded or became ill in the line of duty while deployed since Sept. 11, 2001 and are relocating for further medical treatment. Covered here are service members, including the Coast Guard, and civilian employees of the Defense Department.

2. Spouses of the fallen who relocate within two after the death of their mates.

3. Owners affected by the 2005 round of base closings, without the need to prove the closure caused local housing prices to decline.

4. Servicemen owners who receive permanent duty station changes between Feb. 1, 2006 and Sept. 30, 2010.

5. Benefits are based on the prior fair market value of the property, which under the expanded HAP is the purchase price as evidenced by the HUD-1 settlement sheet. But the amount may not exceed the 2009 conforming loan limits, which range from $729,500 in high-cost areas to no less than $417,000 everywhere else.

6. As long as your home meets fair market value guidelines supported by comps and the internal desk appraisal done by HAP there is no specific time you need to market your home for.

7. When a home is sold at less than what it was purchased for, there are 2 options for sellers to choose from once the home is under contract, one pays 95% plus closing costs and the other pay 90% plus improvements and closing costs.

8. The government will not make up past payments, nor will it pay outstanding judgments, personal encumbrances or junior liens. But it will pay all legally enforceable liabilities, and for title services necessary to close the sale as well as any other allowable closing costs

9. For further information, contact the Corps field office nearest you -- Savannah, Ga., Fort Worth, Texas, or Sacramento, Calif. -- or got to the HAP Web site, www.usace.army.mil.

If you have additional questions or would like more information about HAP please don't hesitate to contact me, Abby Noble at (618)444-6188 or via email at abby.noble@gmail.com.

Your Scott Air Force Base Specialist and EXCLUSIVE Homes for Heroes Affiliate.

Home Buyer Tax Credit: Military Extension

Congress has acknowledged the unique circumstances affecting members of the military, the foreign service and the intelligence community due to deployments and other circumstances by making the following exceptions that apply to both the $8,000 tax credit for first-time home buyers and the $6,500 tax credit for repeat home buyers.

Here are the additional benefits:

• Members of the military and certain other federal employees serving outside the U.S. have an extra year to buy a principal residence in the U.S. and qualify for the credit.
• A sales contract must be written by April 30, 2011 and settlement must take place on or prior to June 30, 2011.
• This extension applies to any individual (and, if married, the individual's spouse) who serves on qualified official extended duty service outside of the United States for at least 90 days during the period beginning after Dec. 31, 2008, and ending before May 1, 2010.
• Extended duty is defined as any period of duty pursuant to a call or order to such duty for a period in excess of 90 days or for an indefinite period.

Home buyer credits and rebates that never expire...

April 30th marked the last day to buy a home and get the federal tax credit. Homes for Heroes discounts and credits never expire! In fact, through the Friends of Heroes program, the discounts continue far after the closing.

Scott AFB, IL. - May 3, 2010 - Homes for Heroes® offers large savings to local heroes when buying or selling a home. With the Spring housing market here, Homes for Heroes is gearing up to serve as many heroes as possible. Homes for Heroes aims to help close the gap between the cost of housing and buyers in the following groups: military personnel, police officers, firefighters, teachers, first responders and others who serve our community and nation.

Homes for Heroes is celebrating its ninth year of bringing big savings to everyday heroes. Inspired by the hometown heroes who serve and protect their communities and our country, a partnership of Realtors, mortgage lenders, title companies and appraisers created Homes for Heroes, Incorporated. The sole purpose of this collaboration of real estate professionals is to offer savings when buying or selling a home. With the May launch of sister program, Friends of Heroes, community vendors outside of the real estate related profession can offer discounts to heroes for savings beyond the closing. This offers local businesses the opportunity to show its community that they are proud of your local and national Heroes and set their company apart from the competition.

See our videos!

http://www.youtube.com/watch?v=YAQ2tONxJs8

http://www.youtube.com/watch?v=eMAvbG4rW4k

Police Officer, soldier, and Homes for Heroes spokesperson Katie Blackwell returned from serving alongside her husband, Steve, in Iraq with the National Guard. Through her efforts in distributing information about the program to fellow soldiers, Homes for Heroes has been able to assist soldiers returning home, matching them to enthusiastic real estate affiliates eager to support our troops by way of great benefits offered by the program. We are ramping up quickly to align with the debriefing and reintegration initiatives at several military bases in anticipation of the large amount of returning troops.

Ruth Johnson is one of the founding members who started Homes For Heroes, Inc. in 2001. "We all share an admiration for the people who serve our community and our nation selflessly and we wanted to recognize and show our appreciation in a meaningful way, "said Johnson.

While the program's genesis and primary concentration originally was intended to serve the Minnesota real estate market, word of the Homes For Heroes benefits spread throughout the country. With the far-reaching power of the Internet, this originally local-only effort spiraled into a growing nationwide program. Homes for Heroes is now in 25 states and hopes to be in all 50 by the end of the year.

If you would like more information about Homes For Heroes or to schedule an interview with Abby Noble, please call 618-444-6188 or email Abby at abby.noble@gmail.com

www.homesforheroes.com

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