How to Find the Perfect Apartment for Rent – 10-Step Process

By Jacqueline Curtis | Money Crashers

http://www.moneycrashers.com/how-to-find-cheap-apartments-for-rent-guide/

Tips to Find a New Home to Rent

1. Determine Affordability

The U.S. Census Bureau suggests that your monthly rent should not exceed 20% of your monthly income – 30% at the most. For instance, if you bring home $4,000 each month, you should cap your search at around $1,200. Taking the time to update and polish your personal budget before you start looking for apartments can not only help you figure out your price range, it can also help you identify areas in your personal finances where you can cut back if you want to spend more on a pricier apartment. After scrutinizing the numbers, you may decide to drop that costly TV subscription to allow you more wiggle room in your budget for the right place.

Create your budget with a simple spreadsheet or an online service like Mint or PearBudget. Detail your income and expenses down to the penny, from fixed obligations such as phone bills, student loans, and car payments, to variable month-to-month costs such as groceries, entertainment, and clothing. You can lower your food bills by clipping coupons, and save money on your cable, smartphone, and Internet by bundling all three services under one provider. These small moves can really add up, giving you the funds you need for your future housing.

2. Lower Rental Costs

There are several things you can do to find a lower monthly rent:

• Look Outside an Urban Area. While living in the city center may seem like a priority, it doesn’t mean much if you can’t afford the rent. Instead, check out apartments in the suburbs within a conveniently commutable distance to work.
• Consider Transportation Costs. Urban areas generally require a smaller transportation budget, since you can likely take public buses or subways to get around. However, you still need to take transportation costs into consideration, whether it’s a bus pass or gas money, if you choose to live away from the city center.
• Get a Roommate. You can slash the price of any apartment in half simply by sharing it with someone. You need a landlord’s approval before doing so, but having a roommate can significantly reduce the financial pressures of renting. Just make sure you have a written agreement with your roommate laying out all obligations.
• Check for Subsidies. The U.S. Department of Housing and Urban Development (HUD) routinely offers subsidies for those with lower-income jobs who may not be able to afford rent. Search the HUD website to find affordable housing or see if you qualify for subsidies.
• Think Small. Square footage comes at a premium in an apartment, particularly in the number of rooms. Going for a studio or one-bedroom may mean missing out on some space, but you make up for it with big month-to-month savings. Assess how much space you really need based on your lifestyle, visitors, pets, and storage. You may find that you’re happier paying less for a smaller place.
• Negotiate. Unless you’re apartment hunting in a popular area with little renter turnaround, many landlords are amenable to negotiating. Check out the rates for comparable apartments with similar amenities in the area and bring your research with you to strike a better deal. You can also offer to pay rent for a longer chunk at a time (a landlord may lower the rate if you pay three or six months at a time) or choose to sign a longer lease to score a better deal overall.

3. Add Renters Insurance

For some, renters insurance is a choice, but for the vast majority, it’s required by a landlord. In either case, you should add it to your budget. It covers losses in case you suffer a break-in, and it also helps cover your landlord if you do damage to the property. A landlord insures the building, but renters insurance covers what’s actually inside it.

Luckily, it’s pretty affordable. Rates depend on geographical location, amount of coverage, and amount of rent paid, but, on average, you can expect to pay around $500 per year on $25,000 worth of coverage – about $12 to $15 per month.

4. Run a Credit Check

Many landlords run credit checks to see if there are any glaring issues with potential tenants, such as unpaid bills or bankruptcy. You can also expect a background check. Although landlords run these checks prior to approving you, it’s actually a good idea to request your own free credit reporton your own. That way, you can comb through to check for any potential roadblocks and contest any errors you may find.

All three credit reporting agencies (Equifax, TransUnion, and Experian) are required by the FTC to offer one free credit report each year. It’s no cost to you and won’t affect your score if you request it, but you do need around three weeks to actually receive the report.

5. Start Hunting

Don’t leave apartment hunting for the last minute. In a perfect world, it should start around three months before your “must move” date. Many current tenants have to let their landlords know of vacancies in advance – the majority of areas require renters to give at least 30 days’ notice, but plenty give more.

While the features you want in an apartment are specific to you and your lifestyle, there are a several basic things you need to look for:

• Price. Avoid looking at apartments outside of your budget. Landlords are unlikely to discount the rent, and you could end up either overspending or being disappointed when you can’t afford the apartment of your dreams. Instead, set a firm number and only look for places that fall within your budget.
• Transportation. If you’re currently without a car, check every potential apartment’s proximity to public transportation. An apartment may be well-priced and in a great neighborhood, but if you have to spend most of your time walking or calling taxis, it might not be so attractive. What’s more, you need to factor the cost of transportation into your budget for a realistic picture of how much an apartment really costs.
• Convenience. Choosing an apartment that is conveniently located can make your life a lot easier. Look for a place that’s close to work, shopping, transportation, and amenities such as laundry.
• Safety. Not only should an apartment be in a safe neighborhood, landlords should make an effort to ensure their tenants feel safe inside. Proper locks on each door, private entrances, and security should all make you feel better about renting.

6. Gather Your Down Payment

Many landlords require a down payment, which usually includes the first and last month’s rent, along with a security deposit equal to one month’s rent. Therefore, if you’re forking over $800 per month for a new place, you need $2,400 ready to go when you actually sign your lease. Your first and last month’s rent is obviously retained by the landlord, but your security deposit is generally returned if you leave the property in the condition you found it. Otherwise, it can be applied to maintenance, repairs, and cleaning.

While you won’t need to give a landlord a security deposit until you sign the lease, it’s always a good idea to have the amount saved up in your bank account. That way, you won’t lose out on a potentially perfect apartment to a better-prepared renter simply because you didn’t have the money.

7. Prepare Documentation

Landlords take a substantial financial risk if they don’t thoroughly check out each applicant, so in addition to credit and background checks, some may require extra documentation. Gather the following papers and keep them on file in advance of your search:

• Letter of Employment. A landlord needs to know you’re gainfully employed and able to make monthly payments based on your salary. This letter should be printed on company letterhead and include an affirmation that you work there, the duration of your employment to date, and your monthly or yearly salary. It should be signed by a supervisor.
• Pay Stubs. These corroborate the information in the letter of employment.
• Tax Returns. If you’re self-employed, tax returns from the last couple of years should suffice in place of pay stubs. You may need to offer extra explanation as to what you do for work and the amount you make annually.
• Reference Letters. A landlord wants to know that you’re a great tenant. If you’ve rented before, ask for reference letters from past landlords explaining that you paid your rent on time and cared for the property. If you’ve never rented before, ask for letters from previous employers or acquaintances who can confirm that you’re responsible and honest. Just make sure they’re from people not related to you – glowing recommendations from your mom won’t do the trick.

8. Talk to Tenants

While you want to make a good impression on the landlord, you also need the landlord to make a good impression on you. The best way to find out if you really want to live in a certain property is to talk to past and current tenants. In general, you want a landlord who is courteous and safe, and who takes care of maintenance issues promptly. Ask about tenant turnover, infrastructure issues, and response times to complaints.

This is also the ideal time to ask about living expenses in the area, especially if you’re moving to a new neighborhood. Current tenants can give you a rundown of what they spend on transportation,utilities, and entertainment, as well as information about the neighborhood, such as where to eat, the location of specific school districts, and the best local amenities.

9. Do a Walk-Through

Don’t sign that lease just yet. After everything checks out and you’re happy with the apartment, location, and landlord, you should do a final walk-through before signing on the dotted line. Because previous tenants may have caused damage or maintenance issues, you need to be sure that you won’t be responsible for any issues that weren’t your fault.

Come prepared and check for the following:

1. Turn on lights and faucets, and flush toilets throughout the apartment to make sure they all function properly.
2. Check for rodent or insect infestation, particularly in cupboards and storage spaces. Chew marks or droppings are a major red flag.
3. Bring along a cell phone charger and plug it into the outlets to make sure they all work.
4. Check smoke alarms and look for fire safety equipment, such as an extinguisher in the kitchen.
5. Open and close and lock and unlock doors and windows.
6. Turn on all included appliances to make sure they’re working.
7. Examine floors and walls for any type of damage. Carpet, hardwood, linoleum, drywall, and tiles should all be inspected.
8. Take pictures of any problem areas with a digital camera and show them to the landlord. Save the file so if there are any discrepancies with maintenance or problems getting your security deposit back when you move, you have evidence to prove you didn’t cause the damage.

10. Read Over and Sign the Lease

Lease agreements vary depending on time frame and contract terms.

• Periodic Leases Work Best for Shorter Durations. With a periodic lease, the landlord acknowledges that your situation could change from month to month, allowing you to pay and renew your lease monthly. However, these leases can be more expensive, and because you have to renew each month, the landlord reserves the right to raise the rent at any time. You need to give your landlord 30 days notice before vacating the apartment, so this arrangement is best only if you truly need short-term living space.
• A Fixed-Term Lease Is Most Common. Contract with your landlord to stay in the apartment for a specific period of time – three months, six months, a year, even two years. In many cases, if you choose to move out, you’re still responsible to pay for the time left on your lease, whether you live in the apartment or not. This can mean locking in a lower rate, though, which is ideal for longer-term living situations. Occasionally, landlords let renters out of their lease if a penalty is paid, so be sure to discuss contingencies before you sign.
• Subleases Are Three-Party Lease Agreements. They often occur when a renter needs to vacate an apartment, but is still in a lease with the landlord and responsible for the rent. With a sublease, the original renter finds another resident to take over lease payments until the term is up. The renter then pays the landlord for the duration of the contract. Subleases must be approved by the landlord, so if someone offers you a great deal on the down-low, it could be suspect.

http://www.moneycrashers.com/how-to-find-cheap-apartments-for-rent-guide/

This Month in Real Estate- March

Millennials: How to Sell to Today’s Youngest Homebuyers

Posted by RE-Insider  • Categorized as Industry News

As with any generation, the Millennials have their own unique likes and dislikes – ranging anywhere from music to food – and one trend which seems to be significantly different from any of their predecessors is their preference in real estate.

In 2013, Generation Y accounted for roughly one third of all home sale, a number which will only rise as time goes on. While this can be a great thing for younger agents and brokers who can relate to these new homebuyers, this transition may not be the easiest for many of the seasoned veterans working in today’s market. The truth is that the median age of realtors today is 57 years old, a substantial difference from the median age of first-time buyers which is currently 31.

So to help adapt to this changing market, here are a few tips to use when finding the right property for the youngest of homebuyers:

1. The best things come in small packages
Keeping up with the Joneses – a race to prove cultural and socio-economic superiority through the purchase of material goods – was a common theme in the lives of many baby boomers, and as a result many of them have sought after a big home with a big price tag. While this behavior may not be a problem for some, it has caused numerous problems for Generation Y. Over 50% of Gen Y kids come from divorced homes. Why? Communication between family members and money problems are the most cited reasons, and many believe these problems stemmed directly from having a big house. As a result, the Millennials want smaller houses on smaller lots. This puts less financial strain on those with tighter budgets and also promotes more interaction between family members.

2. Diversity is key, so jump into the melting pot
Many members of Generation Y have been exposed to more culturally diverse areas, and as a result they look for similar diversity. Urban centers offer a buzz and culture which cannot be found in many suburbs – people from all over the world as well as the music, food and arts they bring with them – and the Millennials actively seek out these differences.

3. Look for a greener living
It has been reported 57% of all members of Generation Y prefer products that are environmentally friendly, and this number is expected to keep going up. Builders are responding to this trend by providing homes with energy-saving appliances, as well as insulation made from soy or other natural products, so keep these “bonuses” in mind when trying to sell a home.

4. A short walk can go a long way
One trend which has surfaced lately in the Millennial community is their interest in walkability. Many members of Generation Y would prefer to walk or ride a bike as opposed to driving to work, so keep in mind the different businesses, restaurants, bars, parks, or anything else that is in walking distance when trying to sell a home. Not only does walking or riding a bike encourage a healthier lifestyle, but it further supports the Millennials’ interest in an eco-sensitive living.

Have you noticed these changing trends in buyers today? What are your thoughts?

Chinese Real Estate Investors Predicted to Flood U.S.

China and US ‘to top cross-border property investment’

 Asia, Investment, Lifestyle & Leisure Properties, Market Trends, News, News By Region, News By Topic, North America,Shows and events, World News1 Comment

 By Adrian Bishop, Editor, OPP Connect

By 2016, Chinese cross-border real estate funds flowing in to the United States will be the highest in the world, beating the current US$1.3 billion from Singapore to the UK, say private equity experts

Within the next two years, the world’s leading cross-border property market will be between China and the United States, experts predict.

As interest from Chinese investors continues to build, the US property market is set to become the world’s top recipient of cross-border real estate funds from a single country, private equity investors believe.

According to 70% of investors polled on at the annual Private Equity Real Estate conference, PERE Summit: Asia 2014, held in Hong Kong, which ended yesterday (Thursday) the United States will become the world leading recipient of real estate funds from China sometime before 2016, the Wall Steet Journal blog has reported.

In the last two years, the biggest cross-border property investment has been from Singapore, which put US$1.3billion into the UK market. Chinese investment into the US is currently in fifth place, but PERE Summit delegates  say it is set to rise to the top.

Hing Yin Lee, Senior Executive Director of the real estate investment department at Ping An Trust, says, “Liquidity is really abundant in China, there’s a lot of hidden liquidity in institutions that they need to deploy capital. Cap rates have been compressed to very low levels they need to look for yield and opportunity.”

Among leading targets for High Net Worth Investors, commercial investors and developers are the gateway cities of New York, Los Angeles and San Francisco, say sector experts.

Chinese investment in overseas property is set to at least double in 2014, according to the Asia Forecast 2014, published by Colliers International.

“Given that Asia is currently in a very different property cycle than the US and Europe, its investors will become more active in outbound investment, focusing on key gateway cities, such as London, New York and Chicago.

“Chinese investors, in particular, are expected to look for overseas real estate opportunities with better yields and the strategic benefits of portfolio diversification.”

Other countries are also desperate to pick up Chinese foreign property investment and are forming new partnerships.

RE/MAX Australia New Zealand says it wants to make sure its properties are effectively marketed to the Chinese and it has just signed a deal with leading Chinese-language overseas property portal, Juwai.com.

Michael Davoren, managing director of RE/MAX Australia and New Zealand says, “Our agents have asked for this. Our vendors have asked for this. Everyone wants to make sure their properties are marketed in China.”

According to Juwai.com data, Australia and New Zealand are favourite destinations for Chinese homebuyers, thanks to their relative proximity to China, good education opportunities, protected natural environment and stable real estate markets and economy.

While Chinese buyers favour Auckland as the top destination in New Zealand, places like Kerikeri, Dunedin, Taupo and Northland are also popular hot spots.

*OPP has just appointed Sophia Liu, who has extensive business development, sales and marketing experience, as its new Commercial Director in China. She aims to expand the OPP business in the region, including developing OPPLive China and OPP China magazine (see http://www.opp-connect.com/28/02/2014/opp-appoints-new-commercial-director-in-china/).

OPP has also recently opened an office in Singapore, headed by Managing Director, Harlow Russell and Commercial Director, Cedric De Souza.

For the full WSJ blog story, go to: http://on.wsj.com/1jFMcUF

By Adrian Bishop, Editor, OPP Connect

READ MORE HERE:

http://www.opp-connect.com/28/02/2014/china-and-us-to-top-cross-border-property-investment/

4 Ways You Can Get More Services From Your Real Estate Agent

4 Ways You Can Get More Services From Your Real Estate Agent

By Heather Levin | MoneyCrashers

Even with rock-bottom interest rates and a glut of bargain-priced homes on the market, qualified buyers are still in short supply. This is primarily because it’s hard to getapproved for a mortgage loan unless you have stellar credit and a hefty down payment. But even when buyers do qualify, they often feel skittish about investing in a home. After all, the economy hasn’t yet fully recovered, and the prospect of losing a job while responsible for a mortgage is enough to scare many people away.

One effect is that real estate agents are feeling the pinch, and therefore are willing to jump through hoops for buyers and sellers alike. In other words, a variety of extra services are to be had often at no charge and simply by asking.

How to Get More Out of Your Real Estate Agent

1. Home Staging
Home staging is the preparation of a home to make it appear as visually and aesthetically appealing as possible, therefore setting it up to be sold more quickly and for a higher amount. Done properly, home staging can transform a property into a welcoming, attractive place that makes the prospective buyer yearn to own it.

Back in the real estate market’s hey-day, home staging was typically an extra service that sellers had to pay for. However, some real estate agents now offer free home staging simply if you list with them. Sometimes, they do the home staging themselves, or they outsource it to a professional stager with whom they work regularly. In fact, last time I listed my home, my real estate agent offered this service for free, which saved me several hundred dollars.

If your real estate agent doesn’t currently offer this service, ask if they’d be willing to provide it free of charge – many will in order to keep your business.

2. Professional Virtual Tours
A virtual tour of your home is the new standard among real estate companies – at least, it should be. Instead of simply displaying static photos of your home online, a virtual tour utilizes new digital technology to take viewers through your home and property using videos, 360-degree panoramic images, and seamlessly stitched photographs, often also incorporating sound effects, music, narration, and text.

Unfortunately, many real estate agents, especially those in rural areas, still don’t offer this service to sellers. When you’re shopping around for an agent, look for one that offers this service as it alone can attract potential buyers who would rather take a “tour” than simply look at pictures. Ideally, your home should be photographed by a professional photographer and then submitted to major sites, such as YouTube, Trulia, and Zillow. If your current real estate agent doesn’t offer this service, request it anyway. If they still can’t provide it, you may want to consider going with an agent who can.

3. Neighborhood Analysis
If you’re shopping for homes in an unfamiliar area, you might feel overwhelmed by the number of neighborhoods. After all, neighborhoods are just like people; they can have very different characteristics, even within a few blocks. Some might be quiet and reserved, others might be funky and artistic, and yet others may be a mecca for young families.

Finding the right neighborhood can be vital to making sure you’re happy long-term, so create a list of priorities, and search accordingly. What is most important to you – proximity to work or proximity to stores? Do you prefer to live in an area with lots of parks, trails, and bike paths, or do you prefer a more urban environment? If you have children, it is especially important to consider the local schools and the crime rate. Remember, it’s much easier to update or remodel a house than it is to change an entire neighborhood.

While most real estate agents can give you an overview of each neighborhood you’re considering, few will provide an in-depth neighborhood analysis that includes detailed information about local schools, area parks, and crime rates. Other factors that may be included in a neighborhood analysis include land uses, such as whether the neighborhood is primarily residential or mixed use (residential and commercial), and property types, such as single-family homes, apartment complexes, and condominiums. However, agents are prohibited from providing specific demographic information – but they can give you an overview of the kinds of families they’ve seen living in and moving into an area. This insightful information can be invaluable for buyers looking for the best fit.

4. Relevant Discounts
In order to market themselves more effectively, many real estate agents establish relationships with other home-related businesses that can benefit their clients. For example, they may coordinate with the local hardware store to offer discounts to clients, or even with contracting professionals, such as roofers, plumbers, electricians, and painters, to provide services at a discounted rate. Other agents may even offer free services from an interior designer or landscaping company if you buy or sell through them.

When you’re shopping for a real estate agent, look for those who can offer discounts on other professional services. They’ll probably tout these discounts on their marketing materials, so it’s usually a perk you don’t have to request.

Additionally, you may be able to take the opposite approach and ask if your agent is willing to accept a smaller commission for fewer services. With the housing market still struggling, agents are more willing to compromise in order to get your business....

CONTINUE READING HERE...

http://www.moneycrashers.com/more-services-real-estate-agent/

Who should foot the bill for L.A.'s sidewalk repairs?

It's time for the city to finish the work it promised to do, then return the responsibility of long-term care to property owners.

By The Times Editorial board | LA TIMES

Is there a better symbol of Los Angeles' mismanagement than its miles and miles of sidewalks broken, buckled and twisted by tree roots? These concrete chasms and mini-mountains have made many of L.A.'s walkways nearly impassable for people in wheelchairs or those pushing strollers or those who are less sure-footed. Yet the mayor and City Council have consistently punted on long-term, politically difficult decisions required to address the problem, and their inaction costs taxpayers about $4 million a year to settle trip-and-fall lawsuits.

Now, it looks like the city is finally moving forward. There are an estimated 4,600 miles of sidewalk that need repair, and the city set aside $10 million this year for sidewalk reconstruction; officials anticipate spending the same amount in future years. That is a return to pre-recession funding levels. In addition, Councilmen Mitch Englander and Joe Buscaino are considering putting a $4.5-billion bond measure on the November ballot to pave streets and fix most of the damaged sidewalks...

Continue Article Here:

http://articles.latimes.com/2014/feb/23/opinion/la-ed-sidewalks-20140223

Seismic Work Finance Change Sought

L.A. building owners can pass on only 50% of the costs of seismic upgrades, but Councilman Bernard C. Parks wants to increase that to 100%.

By Rong-Gong Lin II and Rosanna Xia | LA TIMES

A Los Angeles City Council member wants to allow owners who seismically retrofit apartment buildings to pass on the costs to tenants.

Councilman Bernard C. Parks said he wants the city to explore exempting these apartment owners from the city's rent-control law as part of a larger effort by city officials to strengthen thousands of buildings vulnerable to collapse during a major earthquake.

Under existing laws, only 50% of the cost of major apartment rehabilitation projects can be passed through to tenants, Parks said. Parks wants city staff to evaluate passing through all the costs to tenants but do it "over a reasonable period of time."

The idea marks a new front in the decades-long debate in Los Angeles and elsewhere about who should pay for retrofitting dangerous buildings. Twenty years ago, the upper floors of the Northridge Meadows apartment complex collapsed during the Northridge earthquake, killing 16 residents on the lower floor.

Los Angeles officials have known about the dangers of older concrete and wooden apartment buildings for years, but concerns about costs killed earlier efforts to require retrofits of privately owned buildings. Many owners say they shouldn't have to pay for expensive fixes on their own.

The council is already looking into a state bond measure that would help owners pay to seismically retrofit their buildings. But Parks said the city should first consider other options....

CONTINUE ARTICLE HERE...

http://articles.latimes.com/2014/feb/23/local/la-me-quake-renters-20140224

New high-rise on Broadway would be one of tallest in Southland

The apartment and retail complex, called Broadway @ 4th, would house 450 units and fill in a key block in gentrifying downtown L.A., developer Izek Shomof said.

By Roger Vincent | LA TIMES

It's been generations since a high-rise building had its debut on Broadway in downtown Los Angeles, but the skyline is finally in for a dramatic change.

A local developer hopes to transform a homely corner of the city's famed commercial corridor early next year by leveling a drab one-story retail center at 4th Street and Broadway. In its place would be a 34-story apartment skyscraper more than twice as tall as most other buildings in the historic core of downtown L.A.

To be built at a cost of nearly $150 million, the apartment and retail complex called Broadway @ 4th would house 450 units and fill in a key block in gentrifying downtown L.A., developer Izek Shomof said.

To market observers who saw the city's former elite streets of Broadway, Spring and Main become run-down and plagued by drugs and crime during the latter decades of the 20th century, it's remarkable that an extravagant upscale apartment tower would even be built in the neighborhood, much less one that would stand taller than City Hall.

"It's a new day for Broadway that large-scale construction is even proposed," said property preservationist Adrian Scott Fine, director of advocacy for the Los Angeles Conservancy. "It wouldn't have even been on anyone's mind 10 years ago."

Most buildings in the historic core date to the early 20th century. The most recent high-rise was an office tower completed at Spring and 6th streets in 1961. Soon after that, Fine said, many businesses began leaving the city's historic downtown blocks for newer office buildings on Bunker Hill and other blocks near the Harbor Freeway.

But developer Shomof has enjoyed success in recent years renovating old office buildings on nearby Spring Street and turning them into apartments served by hip restaurants, bars, nightclubs and shops.

"I have over 2,000 units with no vacancy," he said of his properties around 7th and 8th streets. "Why not go for another 450?"

Shomof recently submitted plans for Broadway @ 4th to city officials and hopes to get the go-ahead to start construction early next year. The developer and his architect face the challenge of coming up with an appropriate design for a new building in an old part of the city.

The site lies in several overlapping city land use zones where development is restricted, property consultant Hamid Behdad said. Among the zones are the Broadway Theater and Entertainment District, the Bringing Back Broadway Corridor and the Historic Preservation Review Area.

Assigned the challenge of designing a new building for a classic old neighborhood was architect Douglas Hanson, president of HansonLA. Among the city requirements: The first 10 stories or so had to be flush with the sidewalk to preserve sight lines along Broadway. The next 14 stories are to be set back 30 feet from the street.

"These are really strict guidelines that we are the first to test," Hanson said. "Nowhere else in L.A. do people have these kinds of restrictions to make something."

The goal for his firm was to design a building that would look appropriate on Broadway but wasn't an imitation of a historic building in the way that some baseball parks, for example, are made to look as if they were built in an earlier era.

"We weren't interested in making it feel historical," Hanson said. Instead, they used some historic architectural traits such as deep-set windows and other indentations intended to create shadows and texture.

Unlike many historic structures, the new building would have parking spaces both underground and set behind apartments on floors two through six...

CONTINUE Article HERE:

http://www.latimes.com/business/realestate/la-fi-property-report-20140227,0,1145329.story#ixzz2uZOP8vAn

7 Home Improvement & Remodeling Ideas that Increase Home Value (And What to Avoid)

By Heather Levin | MoneyCrashers

7 Projects That Add Value to Your Home

Many projects do add value to your home, and improve your family’s quality of life. By working on these projects now, you can enjoy the benefits and updates. If you make green upgrades, then you can also start recouping your investment in these green energy technologies once you complete the projects.

1. Remodeling the Kitchen

Most people consider the kitchen to be the heart of the home, and because of this, updates in this room pay off. According to HGTV, you can expect to recoup 60%-120% of your investment on a kitchen remodel, as long as you don’t go overboard. You should never make your kitchen fancier than the rest of the house, or the neighborhood.

Why You Shouldn't Invest in a Deluxe Kitchen
For example, a historic home in my neighborhood has been on the market for more than two years. During the owner’s last open house, I went in to check it out, and immediately saw why the house hasn’t sold. The quaint Arts and Crafts style home was built in 1900 and has a lot of charm. Unfortunately, the homeowners had invested over $60,000 upgrading the kitchen.

The enormous kitchen, easily the size of the living room, features appliances and countertops that might look more at home in a fancy restaurant kitchen. The style, size, and quality of the kitchen don’t fit in with the rest of the house, or the neighborhood. If you plan on selling your home within the next five years, keep potential buyers in mind before you start on any major remodel; many people won’t pay for a fancy, deluxe kitchen.

A Little Paint Goes a Long Way
When it comes to how much you spend on a kitchen remodel, prices can run the gamut, from $5,000 to $75,000, or more. Get the biggest bang for your buck on a kitchen remodel by looking at color. Fresh paint, in modern colors, can go a long way towards updating the look of your kitchen. Plus, paint is relatively cheap.

You might want to consider using low-VOC paint; this makes your kitchen more eco-friendly, and helps your family avoid breathing in dangerous chemicals, like benzene, that off-gas from regular fresh paint.

Energy-Efficient Appliances
Replace old appliances with energy-efficient models. Energy Star-rated appliances are better for the environment, and they also help you save money, because they use less energy. Potential buyers often look for ways to save money when shopping for a new home.

If you’re looking upgrade your appliances to save energy, learn more about the the best time of year to buy large appliances.

2. Bathroom Addition

If your home only has one bathroom, you can recoup a large chunk of your investment by adding another one. HGTV estimates that you can recoup 80%-130% of whatever you spend adding a bathroom.

When it comes to finding room in your house for an extra bathroom, take a look at any extra rooms or underutilized spaces. Consider other spaces, such as closets or areas under the stairs, too. If you want a half-bath you need at least 18 square feet. If you want a full bath, including a stand-up shower, you need at least 30 square feet. If you want a bathtub, make sure you have at least 35 square feet to work with for a bathroom addition. See these bathroom design and remodeling ideas to get you started.

  

Like any project, the cost of adding a bathroom depends largely on the types of additions and accessories you want to use, and the cost of each of these items. You can save money by frequently checking Lowe’s and Home Depot; they often drastically reduce prices on sinks and toilets that have been floor models. You can also find great prices on tubs, doors, toilets, and fixtures if you shop at a Habitat for Humanity ReStore.

3. Reinventing a Room

Adding more square footage to your home with a new room can be an incredibly expensive project. Although you can recoup some of your investment, anywhere from 50%-83%, this project’s costs can quickly spin wildly out of control. Just turn on any of those home remodeling TV shows; projects that start off with a $15,000 budget quickly turn into $30,000 or more when homeowners and contractors run into unexpected problems.

Reinvent the existing space in your home to save money. Finish a basement, or convert the attic to a bedroom. Many homeowners can also add small apartments in, or over, their garages – which they can then rent out as a room.

Before you demolish walls and rafters, try to think about the ways that you, and potential buyers, can use the space:

• Versatile rooms have greater appeal to potential buyers.
• Basements frequently work well as second living rooms, or game rooms. Many people also turn this space into a small apartment for an aging relative or a tenant.
• Attic spaces often work well for craft rooms and game rooms, especially if they have high ceilings. If you have kids, you can add swings to the rafters, and create a cool play room just for them.

According to Remodeling Magazine’s annual Cost vs. Value report, an average basement remodel, with the addition of a wet bar, costs $64,000. You can save a significant portion of this by doing the work yourself, but even then, adding a new room can be expensive.

g Energy-Efficient Windows

These days, buyers shop for homes with energy efficiency in mind. Old, drafty single-pane windows are a major turn off. Energy Star claims that adding Energy Star-rated windows can save you up to $500 a year in heating and cooling costs by making your home more energy efficient.

According to HGTV, you can expect to recoup 60%-90% of your costs when you invest in energy-efficient windows. You can also receive a green energy tax credit of 10% for this upgrade, as long as you install Energy Star-rated windows. You might also qualify for additional credits from your state, or even your utility company.

Learn more about available offers and rebates in your area by visiting the Energy Star Rebate Finder. They have a searchable database that gives you specific information for your state. Just make sure you check “windows” so you get product-specific information. I searched for energy-efficient rebates in my zip code and discovered that my utility company, DTE, offers rebates to customers who install Energy Star windows.

Energy Star estimates that the average cost of window replacement in an average-sized home costs $7,500-$10,000, or more. If the new windows save you several hundred dollars a year, and you recoup a tax credit, you can eventually recoup your investment.

5. Deck Addition

Adding a deck increases the value of your home. Outdoor living spaces have become more desirable, especially since more people stay home for vacation (i.e. referred to as a staycation). If you make your deck and your backyard more appealing, your house will be more appealing to prospective buyers when you decide to sell. HGTV claims that homeowners recoup 65%-90% of their investment by adding a deck.

The cost of adding a deck to your home varies widely. Everything depends on its size, and how many bells and whistles you want added, like built-in seating, multiple stairs, built-in flower pots, and the size of the deck. Decks can cost anywhere from $1,200 to $10,000, or more. Again, it all depends on the design and materials used.

As you might guess, you can save a huge chunk of the cost, usually half, by doing the work yourself. Keep in mind, however, that deck construction isn’t easy. You need specific tools, such as a bandsaw, and the cost of the tools can be very expensive, especially if you don’t plan to use them again.

If you decide to hire a contractor, shop around before you choose someone to work with. Make sure you get at least three quotes, with specifics, from the contractors you interview. Thoroughly check references for the contractors before you agree to a contract or work order, and watch out for home improvement repair scams. Sites like Angie’s List can ensure you hire a contractor you can trust.

 

6. Energy-Efficient Insulation

If your home lacks basic insulation, and has old doors that let in plenty of hot and cold air, home inspectors working with potential buyers will include this in their reports. Homes that haven’t been modified with energy efficiency in mind cost more to live in and maintain.

Updating your home to save energy doesn’t have to cost a lot of money and can make your home more appealing to potential buyers. You can save $2,500 or more each year just by making some changes. For example, you can add extra insulation to your attic for $200 or less, and this small change can save you hundreds each year on your utility bill.

Seal cracks around the house to save even more money on energy costs, and to make your home more appealing to buyers. The U.S. Department of Energy (USDE) estimates that the average house has enough leaks to equal a 3×3 foot hole in the wall. You can find leaks in your home during the winter. Anytime you feel a draft or cold spot, you’re in an area that leaks air. You can purchase a thermal leak detector for $40 or less (e.g. Black & Decker TLD100 Thermal Leak Detector). These handheld devices alert you to temperature differences around your home. This then allows you to add caulk or insulation where you need it the most.

You can often discover leaks, and areas that need more insulation, in these areas:

• Around doors and windows
• Around electrical sockets and light switches
• In recessed lighting
• Around the attic hatch
• In the basement
• Anywhere ducts or wires go outside the house

Another easy retrofit is to use CFL light bulbs in all light fixtures. CFL bulbs use 75% less energy than traditional bulbs and each one saves, on average, $40 in energy over the course of its lifetime. You also save on cooling costs because CFLs emit 75% less heat than traditional bulbs. You can easily calculate how much you can save simply by counting the number of lights you have in your home.

You can also install a programmable thermostat. Most buyers expect to see programmable thermostats these days, and they can save you money. Energy Star estimates that installing a programmable thermostat will save the average homeowner $180 per year in heating and cooling costs.

If you need to replace your hot water heater, consider spending a bit extra to purchase a high-efficiency water heater. Savvy home buyers know these water heaters can really trim energy bills. If you use less than 41 gallons of water each day in your household, a tankless water heater saves you 24%-34% on your water heating costs. If you use more, count on a savings of 8%-14%.

7. Basic Updates

Basic updates add the most value to your home. Keep the paint fresh, fix the roof when it leaks, replace wood that rots, and get rid of any mold that you find. These types of chores keep your home from deteriorating over time. Buyers want a healthy, solid, safe home, and they look carefully for signs of routine maintenance.

I’ve replaced the electric wiring in my home, repainted the outside, replaced the plumbing, and repainted the interior. These projects keep my home in tip-top shape so that when I do decide to try and sell again, buyers will see a well-cared-for home.

10 Home Improvement Projects to Avoid

If you plan on moving in two to three years, don’t invest money in home improvement projects that won’t increase the resale value of your home.

Some of these low-value home improvement projects include:

1. In-Ground Swimming Pools

In-ground swimming pools cost $30,000-$75,000, depending on the type of pool installed. While installing a pool may seem like a good idea, a swimming pool makes your house more difficult to sell. Many people, especially families with small children, do not want to buy a house with a pool. Eliminating families with small children drastically reduces the number of people willing to buy your home. In addition, installing a pool increases your energy costs, and raises your homeowners insurance. A swimming pool also requires a lot of maintenance, and usually costs around $1,000-$2,000 or more to operate.

If you live in Southern California, the Deep South, or in the sunny Southwest, a swimming pool may positively impact your home’s value. You may recoup, at most, 30%-50% of your investment in a pool. If you live anywhere else, however, installing a pool may decrease the value of your home, due to the significant operating costs.

Invest in a pool if you plan to stay in your home for several years and use it often. Otherwise, a new pool can cause some significant financial headaches.

 

2. Gourmet Kitchens with High-End Accessories

While you may love your $10,000 commercial stove, and top-of-the-line Tuscan tiles, these costly additions don’t pay off when you list your home for sale. If you plan on moving within the next 3-5 years, and you want to remodel your kitchen, invest in quality, serviceable appliances that appeal to many people. In general, too much customization in a home turns buyers away.

Stay on par with your neighbors; too many high-end additions and you will own the most expensive home on the block. You can recoup a fair amount of money on a kitchen remodel, but expensive, fancy gourmet kitchens don’t help you attract that perfect buyer.

Of course, if you have a high-end home in an upscale neighborhood, then upgrading your kitchen to “gourmet” status may increase its value, since buyers expect to see a gourmet kitchen in a high-end home. But even in a high-end home, you may not recoup your entire investment in an expensive kitchen remodel when you sell your home.

3. Whirlpool Baths

It may sound fun and relaxing to take a hot bath after a long workday, but potential buyers will not pay extra for a newly installed whirlpool bath. In addition, the costs for installing a whirlpool tub can be prohibitive. Many homeowners install luxury bathtubs, only to discover they need to invest in a larger hot water tank for the tub to work properly. Furthermore, installing a tub may result in high energy bills, and additional monthly maintenance costs.

Think twice before installing a whirlpool bath. This project can cost you thousands of dollars, and if you run into problems, the costs climb even higher.

4. Sunrooms

This home improvement project goes straight to my heart; I really want a sunroom. Unfortunately, this expensive project adds very little to a home’s value. A sunroom only recoups $486 for every $1,000 spent on construction, or 49%-59% of the initial investment. In addition, glass doesn’t provide insulation, so a sunroom also raises energy costs in the winter and summer.

We ultimately decided not to add a sunroom to our home, since we know it won’t add to the value of our house. However, if you live in the South, or on the beach, where many homes have sunrooms, adding one to your home may actually help you stay competitive when and if you decide to sell. Plus, adding a sunroom to your home may make your house more attractive to a specific group of buyers, but you probably won’t recoup construction costs.

5. Expensive Landscaping

Landscaping can transform the way your house looks, especially to potential buyers. However, going over the top to create a backyard paradise, while nice, won’t add to your asking price. If you plan to stay in your home for a while, this project can improve your quality of life, especially in the warmer months. If you plan to sell your home, you won’t recoup the cost of expensive landscaping in the sale.

Instead of investing in expensive landscaping, make changes to your lawn to add curb appeal to your home. “Wow” potential buyers with a well-kept lawn, and some well-laced shrubbery or small trees. The Cost vs. Value report states that projects that boost the “wow” value of the front of the house recoup a decent percentage, depending on the changes made. Go for classy, subtle changes to the landscaping to really make your home shine.

6. Room Additions

Adding a room to your home can easily cost thousands of dollars. If you build a new master suite, you might see a 66% return on your investment. If add a family room, expect a 62% or less return on your investment. Many budget-minded buyers don’t want to heat and cool a huge house.

However, adding another bedroom to your home is the only exception to this rule. An extra bedroom makes your house appealing to a whole new group of buyers. Save money on renovations by dividing a large space with a wall, in order to form an extra room. In order to qualify as another bedroom, the room will need some other additions, including a window and a closet. You can also consider bedroom interior design ideas on a budget.

Your builder can help you navigate complicated building codes to determine the requirements for building a bedroom. If the room doesn’t qualify as a bedroom for the real estate listing, list the new space as a bonus room instead.

7. Home Office Remodeling

Most people don’t need luxury home offices. The average home office renovation costs around $28,000. You will receive about a 46% return on investment for this pricey remodel. Technology quickly becomes outdated, so investing in new wiring, and other home office components, won’t generate additional income at the time of the sale.

Most people only need good lighting, and room for home office furniture like a desk and a chair. Unless you work at home full-time, you may want to skip this upgrade.

8. Roof Replacement

We replaced our roof last year. When we listed our house, I thought we could raise the asking price by $6,500, to include the cost of the new roof. It hurt when our realtor told us we couldn’t raise our asking price to cover the cost of the new roof. A brand new roof was another feature we could add to our listing, but raising the sale price of our home was out of the question.

Roofs do need replacing eventually, and the consequences of waiting could be very costly, including ruined walls, mold, and mildew stains. Most experts say you only receive 55%-60% of the cost to replace a roof when you sell your home. Conversely, a damaged roof or an old roof may turn prospective buyers away. A new roof can make your home look crisp to prospective buyers, and help you stay competitive in the market.

9. Garage Additions

According to the Cost vs. Value report, homeowners who build a garage see a 62% return on investment. A garage addition can cost tens of thousands of dollars. Knowing that you only recoup a fraction of your investment, don’t build a new garage to increase the value of your home.

If you plan on staying in your home for a while, then a garage can greatly contribute to your quality of life. After all, you’d have someplace to park your car, and store your lawn and sports equipment. If you currently store these items under a carport or in a shed, a garage might sound like a great investment.

10. Necessities

According to real estate experts, some necessities, including a new septic system and new plumbing, do not generate more income when you sell your home. Buyers want to know that the sinks and toilets work, but most of them don’t concern themselves with the specifics.

A costly backup power generator might interest to buyers living in an area fraught with tornadoes or hurricanes. Otherwise, a new generator does not add value to your home.

Did any upgrades you made to your house pay off when it came time to sell? What home improvement projects will you work on this year?