Bob and Sue Whigham

Home Depot's business is booming - and all the other

home improvement centers aren't complaining, either.

What's going on?

It's very simple. HOME IMPROVEMENT is on the rise!

Today I am going to give you information that is not

easily accessible.

==> To remodel or not to remodel?

==> To add a room or not to add a room?

These are very important questions and they cost

money.

As a homeowner you are interested in the resale

value of any improvements you make to your home -

especially, the RETURN on your Investment (ROI)!

I am now going to give you some statistics based

on the national averages. This information is not

easily accessible, but may help you make a more

informed decision. These numbers come from a

homebuilder's newsletter.

* Minor Kitchen Remodel

Estimated Cost: $9,088

Estimated Resale Value: $5,429

Estimated Return on Investment: 81%

* Bathroom Addition

Estimated Cost: $14,614

Estimated Resale Value: $5,135

Estimated Return on Investment: 72%

* Bathroom Remodel

Estimated Cost: $9,592

Estimated Resale Value: $3,432

Estimated Return on Investment: 71%

* Family Room Addition

Estimated Cost: $32,508

Estimated Resale Value: $16,251

Estimated Return on Investment: 71%

* Major Kitchen Remodel

Estimated Cost: $32,645

Estimated Resale Value: $13,593

Estimated Return on Investment: 70%

* Master Suite Addition

Estimated Cost: $44,967

Estimated Resale Value: $23,161

Estimated Return on Investment: 68%

* Two Story Addition

Estimated Cost: $77,231

Estimated Resale Value: $39,631

Estimated Return on Investment: 62%

* Window Replacement

Estimated Cost: $7,908

Estimated Resale Value: $2,194

Estimated Return on Investment: 56%

* Deck

Estimated Cost: $8,423

Estimated Resale Value: $2,281

Estimated Return on Investment: 54%

* Home Office

Estimated Cost: $8,774

Estimated Resale Value: $2,789

Estimated Return on Investment: 50%

Always remember that over-all improvements can put

you out of reality when you want to sell your home.

The cost of the improvements could make the price

of the house too high for your neighborhood.

When you sell your home, you will have to have it

appraised. Keep in mind that an appraisal is an

OPINION OF VALUE and is very subjective.

In general, the appraiser will look at the last 3

sales in your neighborhood that are within 1/4 -

1/2 mile of your home. He will compare those homes

with yours and come up with his opinion of the value

of your home.

Of course, you will be reminding the appraiser a

hundred times over about the improvements you did

to the house and how much money you put into it.

Sometimes the appraiser just won't listen!!

What can you do? A solution to this problem is to

find a FRIENDLY appraiser and have him or her do a

FRIENDLY appraisal.

This may cost you a few hundred dollars extra, but

it will force the future buyer's lender's appraiser

to come in close to your "friendly" appraisal. This

could save you THOUSANDS of dollars!

The value of an average $150,000 home could easily

fluctuate 7% - 10% which translates into $10,000 -

$15,000 !

One of the reasons for this fluctuation is that a

neighbor may have lost his job or there was a divorce.

These types of situations could force the owner to

sell the home fast - often at a loss. Then BOOM!

The value of your home drops.

It is to your ADVANTAGE to stay on top of the real

estate market in your neighborhood. Be prepared

BEFORE you put your house on the market!

Why? At this point the real estate market has reached
a milestone - like never before.

==> Interest rates cannot drop much more, so it is very
possible rates will begin to rise in the not too
distant future.

==> Prices of both new homes and resales may be affected
by inflation.

In other words, conditions cannot get much better than
they are RIGHT NOW! Therefore, it is an ideal time for
sellers to sell and buyers to buy.

Since every home seller is also a buyer of another home,
the time is excellent for homeowners to make their move
NOW.

Very seldom do you have a real estate market that is
good for both buyers and sellers like you have right now.
Don't expect to see much in the way of changes for the
next few months, July and August. But this doesn't mean
that these excellent market conditions will last forever.

So, if you are thinking about making a move, take
advantage of this opportunity.

If you currently have a home to sell, this is the perfect
time to spruce up the house so you get the highest
possible price - ever. And have buyers who can qualify
to buy your property.

It's and ideal time for real estate. An ideal time to
both buy and sell.

If the latest technology or entertainment options are important in your new home, add the following questions to your buyer's checklist.

• Are there enough jacks in every room for cable TV and high-speed Internet hookups?
• Are there enough telephone extensions or jacks?
• Is the home prewired for a home theater or multi-room audio and video?
• Does the home have a local area network for linking computers?
• Does the home already have wiring for DSL or other high-speed Internet connection?
• Does the home have multizoning heating and cooling controls with programmable thermostats?
• Does the home have multi-room lighting controls, window-covering controls, or other home automation features?
• Is the home wired with multi-purpose in-wall wiring that allows for reconfigurations to update services as technology changes?

Visit the Consumer Electronics Association (www.ce.org/techhomerating) for a complete Tech Home (tm) Rating Checklist.

Answer these questions to help you decide whether moving up makes sense.

How much equity do you have in your home? Look at your annual mortgage statement or call your lender to find out. Usually, you don't build up much equity in the first few years of paying a mortgage, but if you've owned your home for a number of years, you may have significant unrealized gains.

Has your income increased enough to cover the extra mortgage costs and the costs of moving?

Does your neighborhood still meet your needs? For example, if you've had children, the quality of the schools may be more of a concern now than when you first purchased.

Can you add on or remodel? If you have a large yard, there might be room to expand your home. If not, your options may be limited. Also, do you want to undertake the headaches of remodeling?

How is the home market? If it's good, you may get top dollar for your home.

How are interest rates? A low rate not only helps you buy more home, but also makes it easier to find a buyer.

How are interest rates? A low rate not only helps you buy more home, but also makes it easier to find a buyer.

I'm new to blogging. I would consider myself a somewhat high-end user so I hope to improve this with this new communication technique while learning new tricks. Anybody out there thats new also or remembers when they got started I'd appreciate some advice.