Real Estate Guide - November 2010

2 - Roanoke-Chowan Real Estate Guide

Roanoke-Chowan Real Estate Guide - 3















In this economic climatemany homeowners are opt-ing to stay put rather thantrying to sell their homes ina buyer's market. In turn,they're looking for ways toimprove upon their homeinvestment. Renovations toproperties are continuingdespite slow growth in thehousing market.

Renovations may bringabout a return on moneyspent if done right, but theydo require a preliminaryinvestment of funds. Thekey is finding the best wayto finance home renova-tions.

Cash

Cash is the most economi-cal way to finance improve-ments, provided you haveenough discretionary moneyin accounts to cover costs.You do not incur any financ-ing charges or interest, andwill not be penalized forpast-due credit payments.

It is a good idea to keepall of the receipts for pur-chases made toward homeimprovements. Thoughhome improvements are typ-ically not tax-deductible,certain improvements, suchas purchasing energy con-serving appliances and otherenvironmentally friendlyrenovations, may be eligiblefor a tax credit. Youraccountant or another taxprofessional may be able toprovide further informationregarding tax credits.

Personal Loans

If you do not have cash onhand, you may want to takeout a loan to finance the

costs of improvements. Justweigh the advantages anddisadvantages of the loan.Will the investment be worththe interest you will have topay on the agreement overthe life of the loan?

Sit down with a loan offi-cer at your local bank to goover options with reasonableterms before committing tothe renovations.

Credit Cards

Paying for a renovation ona credit card can be a viableoption for quick funds, pro-vided that you are of themind of paying off the bal-ance when the bill comes,and not carrying it over frommonth to month. Otherwise,high finance charges on cer-tain cards could end up cost-ing you a great deal. Checkthe terms of your creditcard. You may find incentivedeals for using your card athome-improvement retail-ers. Some cards also offerdiscounts on purchases ifyou make your purchasethrough their site with oneof their partners. This couldsave you a percentage on thepurchase and be well worthusing plastic to pay.

Home EquityLoans/Refinancing

If you have been consider-ing refinancing your hometo take advantage of lowerinterest rates, you may wantto use a portion of yourequity to fund homeimprovement projects. Forhomeowners who are plan-ning to stay in their homesfor several years and do notmind starting from thebeginning again on a loan,

home equity loans can be away to free up cash now, andalso benefit from lowerinterest rates.

Not all lenders have thesame rates and terms regard-ing home equity loans andthe refinancing process.Request quotes from severallenders to find a deal thatworks for your situation.Also, keep in mind that clos-ing costs may be required ifyou are refinancing, becauseessentially you are closingon a home, again. You willneed to factor these costsinto your loan.

Title I PropertyImprovement Loan

Program

According to the U.S.

Department of Housing andUrban Development (HUD),if the equity in your home islimited, the answer may bean FHA Title I loan. Banksand other qualified lendersmake these loans from theirown funds, and FHA insuresthe lender against a possibleloss. This loan insuranceprogram is authorized byTitle I of the NationalHousing Act. FHA-insuredTitle I loans may be used forany improvements that willmake your home basicallymore livable and useful. Youcan use them even for dish-washers, refrigerators,freezers, and ovens that arebuilt into the house and notfree-standing. You cannotuse them for certain luxury-type items such as swim-ming pools or outdoor fire-

How to Finance Home Improvements


Tough economic times call for eventougher measures -- and for many home-owners this means getting hands-on withhome improvement projects. AlthoughDIY projects can save money in theory,they also may result in a trip to the hos-pital if safety precautions aren't fol-lowed.

According to recent statistics, 85 per-cent of homeowners are tackling projectsaround the house rather than hiring out-side contractors. In this difficult econo-my, emergency rooms are seeing aninflux of people coming in with injuriesranging from lacerations to puncturewounds from nail guns.

John and Jane Do-It-Yourselfer haseasy access to home-improvement sup-plies and tools at the local home center.He or she also may be inspired by any ofthe myriad shows on television instruct-ing individuals to give renovations a try.However, many homeowners are notschooled in proper safety procedures or

do not know how to use tools correctly.This is a recipe for injury.

Common injuries include:

* falls from ladders or scaffolding

* hand and finger injuries -- includingamputation -- from power saws andgrinder/sanders

* nail gun injuries; since 1991, theseinjuries have increased by 200 percent

* eye injuries and breathing difficul-ties

Homeowners should consider therisks of improvements before beginning.They should also take precautions to doimprovements in the safest manner pos-sible.

* Always read the manufacturers'safety information and usage guidelinesfor any tools before the are put to use.

* Turn off electrical current to roomsand outlets prior to doing any electricalrepairs.

* Wear proper safety equipment,including goggles, dust masks or respira-tors, boots, and gloves.

* Store chemicals in a locked cabinetor on a high shelf out of reach of childrenand pets.

* Be cautious of power cords. Alwaysunplug tools and turn off the switcheswhen the item is not in use.

* Do not climb past the top rung ofladders. Do not use furniture or stackeditems as a ladder.

* Jobs such as electrical work, roofwork, gas projects, or major plumbingissues are better left to a skilled contrac-tor.

* Make sure drill bits and saw bladesare sharp. Dull tools can result ininjuries.

* Keep fire extinguishers and a goodfirst aid kit readily available at all times.

There is no cost savings that makerisking a disability worth it. If a project isbeyond an individual's scope of ability,hire a professional instead.

How to Avoid Do-It-Yourself Project Injuries

When working on the home, homeown-ers should always err on the side of cau-tion to reduce their risk of injury.





Checklist for House HuntersUse this checklist when you go house hunting. It will help you keep track of prices, qualities andspecial features of each house you look at. You’ll find this checklist will remind you to ask aboutimportant items that are easily forgotten.

House #1Address

Age Price

Realtor®

Terms

Monthly Payment

#of Square Feet

Lot Size

School District

Average Utility Payments

House #2Address

Age Price

Realtor®

Terms

Monthly Payment

#of Square Feet

Lot Size

School District


House #3Address

Age Price

Realtor®

Terms

Monthly Payment

#of Square Feet

Lot Size

School District


House #4Address

Age Price

Realtor®

Terms

Monthly Payment

#of Square Feet

Lot Size

School District




Documents

Real Estate Guide - November 2010