Tagged: Home Improvement

How to Know if That Fixer-Upper Is a Money Pit

So, you’ve finally found your dream house. Sure, it may need a little work — okay, a lot of work — but you’re confident it will all be worth it in the end. That is, until your home renovation projects start to go down the toilet (or worse, the toilet starts falling through the floor). Here’s how to know if the home you are considering could be a great investment, or just a great way to empty your wallet. Is A Fixer-Upper the Right Choice For You? The right fixer-upper can be a great investment and a lot of fun. The rise of seemingly simple, yet stylish home renovation television shows has made many homeowners eager to transform rough diamonds into neighborhood jewels. Couple this with the improved job market and an upswing in home values, and you have a tidal wave of homeowners willing to invest in fixer-upper dwellings. In 2018, homeowners reported an average of $7,560 or more on major home improvements, up 17% over the previous year. But that doesn’t mean that these projects always go as planned — not everything gets wrapped up as quickly and neatly as it does on television. The same Home Advisor study shows an average of $416 on emergency spending. What many homeowners believe to be a simple “fixer-upper” can quickly turn into a “money pit,” transforming a dream project into an expensive nightmare. Denise Krogman is a general contractor, designer and co-owner with her husband Rob, at RDK Design and Build, LLC. Krogman knows that whether you’re looking to buy a fixer-upper in the near future or remodel your current home, it’s worth paying attention to what separates a fixer-upper from an endless money pit. The right fixer-upper can be a great investment and a lot of fun. But with every remodel there will be the unplanned, unforeseen incidentals that arise. If it needs more than a little ‘fixing up,’ you could find yourself in the midst of a complete remodel or a total scrap. Fixer-Uppers vs. Money Pits The first step to understanding what makes a home a fixer-upper is defining the term. Generally speaking, a fixer-upper is a house that doesn’t have serious problems and can be quickly and inexpensively refreshed, says Thomas Baker, building technology editor at This Old House. Homeowners who have a big budget, a high level of DIY skills, and plenty of free time may reasonably see any house in deplorable condition as a “fixer-upper.” However, even these skilled, experienced homeowners who are initially excited about a big project may fail to properly plan for a remodel. Without thorough research and planning, many homeowners are likely to exceed their spending limit and wind up with a money pit. Baker separates remodel-ready homeowners into two personas: the visionary and the accountant. A visionary homeowner is someone who is emotionally invested in their property and can tolerate higher expenditures in order to execute their ‘vision.’ He or she isn’t worried about the resale value. An accountant weighs each cost of improvement against the likelihood of getting a return on investment at the time of sale. Ideally, homeowners should strike a balance between these two extremes, taking care not to risk their financial futures with unsustainable expenditures on improvements, but also acting as a steward, putting something back into the house so that future generations can enjoy what it has to offer. A professional home builder, general contractor, or home inspector can help a homeowner assess the condition of the home before breaking ground and help keep a project in line once it’s begun. Having that person come aboard your planning process is a great step to take. But what should they, and you, be looking for when it comes to fixer-upper warning signs? Looking to get started with your dream home project? Check out our guide to the financial documentation and other paperwork you’ll need to begin the home loan process. Fixer-Upper Red Flags If you are committed to buying a home with a few imperfections, how do you know when those imperfections go from fixable to serious deal-breakers? When purchasing a fixer-upper, a homeowner should always look beyond the surface, says Sarah Boardman-Miller, an interior designer and construction consultant. It’s important to distinguish between a home with a lot of “cosmetic” needs, as opposed to those that need major (think structural) overhauls. Depending on the ‘fix-up’ budget, one can look past a dated or poorly laid out kitchen or bath. I like a house that has not been touched. It might be dated and original everything, but these are usually good houses. Do your homework. Was the previous owner there for 40 years? Is it clean? Well-kept? When most people watch the [TV] shows, so much of the process is cosmetic … from new cabinets, to counter tops, lighting and tile. Often homes are simply outdated, are decorated in poor taste, or just in need of a little TLC. Cosmetic fixes can be quick and cost-effective, and completely change the look of the house. That being said, homeowners should stay on the lookout for any red flags. Both Krogman and Boardman-Miller say foundational issues, roofing repairs or replacement, and electrical or plumbing problems may require “gutting,” which can send a home remodeling project into an expensive tailspin. Krogman adds that her team is careful about homes that need footprint changes, such as the removal or addition of walls or entire rooms. It’s best if the changes are minor. To avoid any surprises, it’s important to invest in a thorough home inspection, says Krogman. Always request an inspection from a highly reputable company. It’s worth the extra expense. Be sure to ask a lot of questions and get documentation. When was the roof last replaced? Have there been any electrical or plumbing fixes? If there was any previous remodeling done, was it done by a reputable general contractor? And look for cracks in the foundation, sinking sidewalks, water spots or damages in the drywall. Those fixes or changes are rarely minor and can become quite costly. Frank Lesh, an experienced home inspector who works for the certifying agency American Society of Home Inspectors, has two potential problems he wants homeowners to check for within their possible fixer-upper. First, he says, examine the exterior. Take a look at the big picture. If it’s sitting in a valley, the home may be at risk for water problems. Then I look at the general maintenance of the house exterior. Not whether there’s new paint, or flowers, but if the gutters and downspouts are in good condition and directed away from the house and if the roof is in reasonable shape. Next, inspect for insects. Termites and carpenter ants can gnaw away at the bones of a home. It takes an expert insect inspection to discover the extent of the damage, to check behind finished walls and ceilings and to see if bugs are in the walls and subfloors. A house is made of wood, and that’s what they eat. A good pest inspector can hear them or use infrared to see if they’re giving off heat behind the walls. Manage Your Remodeling Expectations One of the biggest dilemmas homeowners face when dealing with a fixer-upper is managing their expectations. Even when a home remodel is expertly planned, problems may still arise, Boardman-Miller says. It is all about expectations and the ability to roll with what is happening. You have to focus on what needs to be done and cut out the extras that you may have been planning. Be realistic and stay on budget. If you do your homework, you could end up with a fair amount of equity in the finished house and get what you really want. Baker says one of the most important things homeowners can do to avoid these costly issues is research, first into the home purchase process, then into contractors, home designers, and home improvement costs. Find a contractor/carpenter who loves to work on houses and whom you can trust to make good decisions on your behalf. Without trust, these projects can become a nightmare. Take your time. Watch home TV shows, read magazines, talk to contractors, and go to the web to become an expert on the topic [of remodeling]. When homeowners embark on a home renovation the risks are great, but the rewards are even sweeter when everything is well planned and executed, Krogman says. One man’s junk is always another’s treasure, so not only can you benefit financially, but you can give back by creating a beautiful home for your own family, or for someone else. CHECKLIST: Tricks for Separating Fixer-Uppers from the Money Pits Get a thorough home inspection Determine whether improvements are structural or cosmetic Do your research on what you’d specifically like done Talk to your contractor/designer and get a plan in writing Financially prepare for unforeseen issues Manage your expectations and stay on budget How do you know a home’s true value? Get a fast, no-obligation home estimate using our free tool. Getting From ‘Before’ to ‘After’ Without Going Broke At the end of a well-planned remodeling project, you can end up with the home features you want for a lower cost than the amount of equity you gained. It’s also possible that a lack of insight into your process and potential costs could leave you with an underwater (and maybe even unfinished) home, so it’s essential to make sure you know the facts before you swing a single hammer. But don’t let those potential pitfalls scare you away from a great opportunity for a smart investment. Just make sure you follow the checklist above and do the necessary homework to give yourself the best chance to come out ahead of the game. Have you done your research and know of a great home you can benefit from investing in? If you are ready to explore buying your own fixer-upper, take the first step and get pre-approved online or contact a PennyMac Loan Officer today to discuss your options. The views, information, or opinions expressed in this blog do not necessarily represent those of PennyMac Loan Services, LLC and its employees. The inclusion of links to third party sites is not intended to assign importance to those sites or to the information contained therein, nor is it intended to endorse, recommend, or favor any views expressed, or commercial products or services offered on these third party sites, or the vendors sponsoring the sites.

Best Personal Loans for Good Credit for 2021

A personal loan can be used for any number of things in life, from building an addition on your house to consolidating your debt. When you have good credit, doors open even more widely compared…

The post Best Personal Loans for Good Credit for 2021 appeared first on Crediful.

How to Transition Your Kids’ Rooms

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Understanding How Mortgage Interest Rates Work

Question: What do home mortgage loans (including second mortgage loans), retail installment loans, automobile loans, home improvement loans, and mobile home loans, have in common — aside from being loans to consumers?

Answer: The interest charge sometimes is calculated monthly and sometimes daily. With a monthly interest rate the borrower is charged for each month, whereas with a daily interest rate the borrower is charged for each day.

Why is this distinction important? Because daily rates are a potential trap for unwary borrowers, countless numbers of whom have found themselves permanently, usually with no understanding of how it happened. The problem has been entirely overlooked by regulators, including the Consumer Financial Protection Bureau.


Mortgage Loan Purpose Types Overview

The loan purpose type specifies the purpose for which the loan proceeds will be used. The loan purpose may be to purchase a home or to refinance an existing mortgage to obtain a lower interest rate or to get cash. Mortgage industry investors track and report the distribution of loan purpose types in their portfolio in order to mitigate the risk associated with various loan purpose types. In general, buying a home represents less of a risk than refinancing an existing mortgage. Refinance transactions in which the borrower takes out little or no equity (cash) represents less risk than ……

20 Kitchen Items You Should Never Pay For

Substitute egg separator

When you need to separate the egg white from the egg yolk, here's an incredibly simple way to do it. Crack the egg into a bowl and grab an empty plastic water bottle. Rest the mouth of the bottle on the yolk and squeeze the middle of the bottle like a turkey baster. The yolk will be sucked right into the bottle. Watch a video of this here.

Make your own turkey baster

Speaking of turkey baster, you can make your own with a water balloon, a straw, and a utility knife. (Read this article from eHow.com for step-by-step instructions.) MacGyver would be proud.

Free trussing twine!

If you want to truss your turkey—i.e., tie the wings and legs of a bird down for more even cooking—you don't need to buy trussing twine. Use dental floss! Not only does it come in a small container, it’s very strong and won’t burn in high heat.

DIY trivet

If you have extra ceramic tiles left over from a home improvement project, you can use them as trivets. Protect tables and countertops from hot pots and dishes by affixing peel-and-stick felt corners underneath each tile. 

SEE MORE: Domestic CEO's How to Stock a Kitchen

Cooling rack stand-in

Keep your cool during holiday baking days. When you’re covered with flour, have no idea where the kitchen table used to be, and just pulled the fifth blisteringly hot tray of gingerbread men out of the oven, simply flip over cardboard egg trays (you’ll need two, spaced a little bit apart) and set the baking pan on top.

You can also use butter knives for cooling racks: Place them in rows on your counter, alternating directions. They'll keep hot baked goods elevated.

DIY bowl scraper

Have you ever seen those bowl scrapers in kitchen stores that sell for $3 to $10? These circular, plastic tools are easy to make at home. Simply take the lid of a round take-out container, cut it in half, then remove the rim. Instant savings!

Substitute rolling pin

If you're in need of a rolling pin, look no further than that bottle of vodka you have in your freezer. The chilled glass will result in a flakier pastry. Even a wine bottle will do.

Who needs cookie cutters?

Rather than buying a biscuit cutter or cookie cutter, use a wine glass or a clean, empty aluminum can. If you're making donuts, use the mouth of an empty water or soda bottle to cut out the center hole.

A simple flour sifter

Julia Child probably used a flour sifter while preparing fine pastries, but you can keep things simple by putting a mesh colander over your mixing bowl, filling it with the needed amount of flour, and gently tapping or shaking it until the flour sifts through. You can use this for powdered sugar as well.

RELATED: Nutrition Diva's Keep Your Kitchen Germ Free

Replacement pastry brush

An unused toothbrush is the perfect substitute for a pastry brush. A paper towel will also work in a pinch!

Easily make a funnel

If you have aluminum foil in your kitchen, you don’t need a funnel. Simply fold a sheet of foil in half width-wise and roll into the shape of a funnel.

You can also use an “egg shell with a hole pierced in it” for a funnel, according to the book Thrift for Troubled Times, published in 1917 by Britain's "National Training School for Cookery"!

Tenderize meat without a mallet

An unopened can of beans or vegetables makes a great meat tenderizer. Cover the bottom with plastic wrap and pound away on the meat just as you would use a mallet.

Substitute jar opener

You’ve seen those nifty, colorful jar openers in cool houseware shops, but you might not realize you’ve got a bunch of tools that are just as effective lying around your garage or basement. Using an X-Acto knife, slice open an old tennis ball and you’ve got two handy openers—game, set, match! Now pass the olives.

Handy stem remover

Hate grapefruit, and wondering what to do with those grapefruit spoons that came with your set of silver? Use their serrated edges to carve the stems out of tomatoes and strawberries.

CHECK OUT: Who Knew's 5 Essential Tips to Prevent Kitchen Disasters

Make your own juicer

Instead of purchasing a handheld juicer (also known as a reamer) for fruit, simply use one blade from a hand mixer instead. Halve the fruit and twist the blade into it for easy juicing.

Homemade potato masher

The only thing better than homemade mashed potatoes is a homemade potato masher. Interlace the tines of two forks together (the forks should be facing each other) and mash away.

DIY garlic press

The tines of a fork can also be useful for mashing garlic. Just place the tines flat against a cutting board and rub a whole, peeled garlic clove against them.

Replacement martini shaker

Who needs a martini shaker? Instead of buying this expensive bar tool, simply use a stainless steel thermos with a screw-in lid. If there’s no way to close the sipping hole on the top, cover it with your thumb while you shake!

Easy bag clip

Kitchen supply stores sell bag clips to keep your half-empty bags of snacks and cereals more airtight. What's cheaper, and available at the 99¢ store? Clothespins! Or use binder clips.

How to make a utensil holder

If you need a kitchen caddy to hold the utensils you do have, read how this intrepid blogger made homemade utensil holders with plastic Beanie Baby boxes. Who knew?

For more second uses for everyday items, follow our Clever Second Uses Pinterest board! For more great kitchen tips, check out our eBook, Cooking Made Easy, available for Kindle and Nook.