Thinking about doing some remodeling to your home? Make sure you’re investing your time and money in the right areas. According to Remodeling magazine’s annual “Cost vs. Value Report”, exterior and replacement projects bring in the biggest return. For instance, adding a wooden deck not only adds aesthetic value to the exterior of your home, it also has one of the highest percentages of costs recouped at 85%. Other projects that consistantly rank high include replacing the siding and windows of your home.

The kitchen is the best room to invest your money in with in the home. Replacing dated appliances with energy efficient or high-end stainless steel appliances is one of the best investments. Outfitting your kitchen with new countertops is another smart option. If you are looking at remodeling on a smaller scale, a fresh coat of paint, new hardware and refinishing cabinetry can do the trick. Other rooms to invest your remodeling dollars in include master suites and garages. The worst places to invest your money in are home offices and sunrooms. Not everyone has a need for an office or sunroom. It’s better to leave it the way it is with maybe a few minor adjustments.

If you are thinking about remodeling your home, the best course of action would be to start with a consultation by a local remodeler or contractor. They will be able to give you estimates on the cost of construction and a time frame. Also, pay attention to current market conditions and comps for your area. For this you may need the assistance of your favorite local realtor.

We’ve all heard it in the news lately - mortgage companies filing for bankruptcy, subprime lending becoming extinct. With the everchanging going ons in the lending world, here are a couple of things to know before applying for a home loan.

Credit Score:Having a good credit score is key in getting approved for a home loan. A credit score of around 680 will satisfy most lenders, but a score of 720 will qualify most people for a prime mortgage at the lowest rates. The average credit score in Texas is 665 according to experian.com.

Down Payment:The days of zero down are few and far between. If you have a strong credit score you may be able to get by with putting down a minimum of 10%. The bigger the down payment you are able to put down, the more likely you are to obtain a loan with lower rates. If your credit score is sub-par be prepared to put down 20 - 25%.

Verifiable Income:If you are self employed, be prepared to have a strong credit score or sizable down payment. Home loans are still attainable but may be harder to come by.

 Other Compensating Factors: Two other important factors in being approved for a loan are your savings and debt to income ratio. The more money you have in the bank, the better. As for your debt to income ratio, your mortgage payment should be less than 28% of your gross income.

 If you’re thinking about buying a house, don’t let the hype deter you from achieving your dream. There are still plenty of lenders out there who are willing to work with you to help that dream come true. Just do your homework before you go out there!

With in the past year, property values in Travis County have jumped 13% due in part to new construction activity and a higher level of interest from buyers for the Austin market. To read more from this article log on to Austin Business Journal’s website:Â
Austin Business Journal

Here is a great real estate tip pertaining to bargain homes….

Most buyers want a home that is in tip-top condition and ready for them to occupy, but many homes sell for bargain prices because they need work. Buyers love “fixer-uppers” for the obvious reasons: the affordable price and the satisfaction of remodeling the house to accommodate your tastes and needs.

Whether you are buying the property for yourself or as an investment, choose a house that is in a good location and structurally sound. It should be priced enough below market value (usually 25%) to allow plenty of room for a profitable re-sale after the work is completed.

It is important to educate yourself before taking on a fixer-upper project. Inexpensive cosmetic improvements often give the greatest return on your investment– paint will increase the value three times for every dollar invested. Landscaping, carpeting, and light fixtures are also relatively inexpensive improvements. Try to avoid purchasing a house that needs expensive structural improvements such as a new roof, plumbing, wiring, or foundation repairs.

Remodeling a kitchen will rarely add more than the cost of the upgrade, but new appliances usually give a fine return. An extra bathroom is the best renovation from an investment point of view, often giving twice its cost in added value.

One of the biggest challenges many homeowners face is making smaller rooms look larger and more inviting. Here are five ways to achieve that goal:

 1. Paint Color - Lighter colors such as creams, icy blues and greens make the best color combinations. Light colors tend to reflect light making the room brighter there by more open. Darker shades of wall color absorb the light giving the room a cave-like feeling. If you want to add darker colors to the room, use them on trim or borders. Another trick is painting the ceiling a few shades lighter than the wall. This creates the illusion of higher ceilings.

2. Furniture - Stage the room using furniture that is proportionate to the size of the room. Use furniture that has clean lines and place it at an angle or against the wall. Choosing a couple of pieces that are the same or close to the same color as the walls helps it to blend in and widen the room. Avoid blocking pathways with pieces of furniture.

3. Light - Natural light is the best form of light. Not only does it bring the outdoors in, but it also helps brighten and enlarge the room. If you don’t have a lot of natural light streaming in, add recessed lighting, floor lamps, etc.

4. Remove the clutter - The less clutter the better. Keeping the room clean and organized will help make it look larger. Hanging one large painting or photograph instead of a multitude of wall hangings creates a cleaner look. Create a focal point and lastly don’t over accessorize.

5. Reflections - Mirrors are a great way to double the size of a room. One large mirror angled towards the focal point can add a significant amount of depth to a room. They reflect light there by making the space look larger.